Fondul Proprietatea posts net profit of 3bln lei in first 9 months

Fondul Proprietatea reported a net profit of 3.097 billion lei in the first nine months of 2021, compared to a loss of 726.4 million lei in the same period last year, shows a company report submitted to the Bucharest Stock Exchange (BVB), agerpres reports.

In the third quarter, FP achieved a profit of 1.296 billion lei, compared to 122.2 million lei in the same period in 2020.

"The main factor that contributed to the profit recorded in the first nine months of 2021 was the unrealized net gain related to the Fund's equity investments at fair value through profit or loss, amounting to 2.620 billion lei, generated by OMV Petrom SA as a result of the positive evolution of the company's share price in the first nine months of 2021 (an increase of 370.6 million lei, the share price going up by 25.7%), as well as of the increase in the value of unlisted companies as a result of their valuation process (mainly as a result of the valuation of Hidroelectrica SA, which registered an increase of 2.104 billion lei)," the report states.

During the first nine months ending on September 30, 2021, the Fund mentions that it repurchased a total of 155,634,558 of its own shares under the twelfth repurchase program (of which 114,491,408 ordinary shares and 41,143,150 ordinary shares corresponding to GDR, Global Depository Receipts), accounting for 2.2% of the total shares issued on September 30, 2021, for a total acquisition value, excluding transaction costs, of 258.314 million lei.

As of September 30, 2021, the total number of own shares held by the Fund (including the shares related to GDR) is 953,595,845, with a total nominal value of 495.869 million lei (0.52 lei per share). During 2021, the Fund converted 790,014 GDR into 39,500,700 ordinary shares. As of September 30, 2021, the Fund held 25,951 GDR.

Fondul Proprietatea was established on December 28, 2005 as a joint stock company, operating as a closed-end investment company.