Fondul Proprietatea released its financial results for the first quarter ended March 31, 2022. The Fund’s share price showed a strong performance in the first three months to reach a price of RON 2.11 as of March 31, 2022, a record value that implied a trading discount. 4.26%, based on the last NAV available on the calculation date.
The profit made by Fondul Proprietatea in the first three months of 2022 was RON 826.1 million. The main contributor to the profit recorded in the first quarter of 2022 was the net gain from equity instruments at fair value through profit or loss of RON 821.2 million, generated by the update of the valuation of Hidroelectrica, net of the negative evolution of the share price of the listed holdings of the Fund (mainly coming from OMV Petrom SA).
The adjusted NAV per share as of March 31, 2022 was 3.73% higher than the NAV per share as of December 31, 2021 of RON 2.2624.
The sharp increase in cash at March 31, 2022 compared to December 31, 2021 is due to cash inflows from the partial disposal of the Fund’s stake in OMV Petrom SA (978.3 million RON) and from the Ministry of Finance on 1 February 2022, as payment for the unpaid shares held by the Romanian State in Fondul Proprietatea (189.2 million RON), net of the cash outflow related to the distribution of the dividend paid to shareholders in February 2022 (320.6 million RON ).
The net increase in equity investments of RON 821.2 million in the first 3 months of 2022 is mainly due to the increase in the value of unlisted equity investments by RON 883.5 million following the upgrading process. Valuation date of Hidroelectrica SA during the quarter, net of negative share price evolution of OMV Petrom SA (only for the participation classified as equity securities), with a total impact of 49.0 million RON, share price decline of -5.8%.
Other liabilities decreased by 78.2% compared to December 31, 2021 following payments made for the third exceptional dividend distributions approved on December 15, 2021 with a payment date of February 18, 2022.
Statement of financial position
| million RON | March 31, 2022 | Dec 31 2021 | March 31, 2022 c.
Dec 31 2021 (%) |
| Unaudited |
Checked |
||
| Cash and current accounts | 87.7 | 68.2 | |
| Deposits with banks | 636.2 | 347.4 | |
| goods of treasure | 93.4 | – | |
| Government bonds | 228.3 | 77.1 | |
| Equity investments | 13,398.9 | 12,577.7 | |
| Non-current assets held for sale | – | 1,135.2 | |
| other assets | 207.1 | 0.3 | |
| Total assets | 14,651.6 | 14,205.9 | 3.1% |
| Debts | 26.5 | 38.8 | |
| Other liabilities | 89.2 | 409.6 | |
| Total responsibilities | 115.7 | 448.4 | -74.2% |
| Total equity | 14,535.9 | 13,757.5 | 5.7% |
| Total Liabilities and Equity | 14,651.6 | 14,205.9 | 3.1% |
Source: IFRS financial statements
Statement of comprehensive income
| million RON | Q1 2022
Unaudited |
Q1 2021
Unaudited |
| Unrealized loss on equity investments at fair value through profit or loss | (62.3) | (5.3) |
| Unrealized appreciation on equity investments at fair value through profit or loss | 883.5 | 723.0 |
| Net gain from other financial assets at fair value through profit or loss | 188.7 | (2.4) |
| Net realized loss on non-current assets held for sale | (157.0) | |
| interest income | 6.9 | 6.0 |
| Other income/(expense), net* | – | 1.3 |
| Net operating income | 859.8 | 722.6 |
| Administration costs recognized in profit or loss | (20.8) | (16.3) |
| Other operating expenses | (12.9) | (4.9) |
| Operating Expenses | (33.7) | (21.2) |
| Financial expenses | – | – |
| Profit before income tax | 826.1 | 701.4 |
| Income tax | – | – |
| Profit for the period | 826.1 | 701.4 |
| The other extended result | – | – |
| Total overall result for the period | 826.1 | 701.4 |
