The year 2013 could go down in history as the year of energy companies due to the public offerings conducted by Transgaz (TGN.RO) in April, Nuclearelectrica (SNNRO1.RO) in September and now Romgaz (SNG.RO). The large supply of energy stocks has dragged the energy sector index down, causing it to lose 1.16% since the beginning of the year.
In comparison, the BET index, the main index of the Bucharest Stock Exchange, which includes the shares of Fondul Proprietatea, BRD and Banca Transilvania (TLV.RO) and of three energy companies, OMV Petrom (SNP.RO), Transgaz and Transelectrica (TEL.RO), has gone up 15%.
BET-FI, which includes Fondul Proprietatea and the five regional investment funds (SIF) has increased by 4.35%, while the BET-C, which includes all the companies on the stock market has gained 11% since the beginning of 2013.
An explanation for the gap between the BET-NG and BET trends comes from Andrei Radulescu, brokerage firm Broker Cluj analyst:
“Fondul Proprietatea shares have been the main attraction for investors on the Bucharest Stock Exchange this year. The fund’s shares have surged and made a decisive impact on the indices that include them. Moreover, once investors bought into the fund, which owns stocks in the largest energy companies, they did not invest in the shares of the energy companies themselves (…).”
Fondul Proprietatea shares have gained 42% this year because of the share buy-back program and the cash disbursement to shareholders. The fund owns minority interests in Petrom, Transgaz, Transelectrica, Romgaz and Nuclearelectrica.
BET-NG tracks eleven companies in the energy sector. The most important of them are oil and gas producer Petrom, gas transmission company Transgaz, national grid company Transelectrica, pipeline system operator Conpet (COTE.RO) and Rompetrol Rafinare (RRC.RO).
Petrom shares have increased by 1% this year, Transgaz lost 16% and Transelectrica was flat. After moving from RASDAQ, Conpet’s shares rose by 10%. Rompetrol Rafinare and Rompetrol Well Services (PTR.RO) performed better, going up more than 33% in 2013.
“The modest energy stock performance is due to the decline in power consumption,” the analyst added.
Power consumption fell about 6% in 2013 because of a milder winter and a summer with plenty of rainfall. Industrial consumers used less power, too, due to a decline in production.
BET-NG will be expanded to include Nuclearelectrica, as well. The company that operates the reactors of the nuclear power plant in Cernavoda conducted an IPO in September and raised EUR60 million from investors. Its allotment rights are now trading on the market and have gone down below the IPO price of 11.2 lei (EUR2.52) per share.
Romgaz will be included in the index, too, if its own IPO of 15% of its shares is successful.
BET-NG may end the year higher than it started if the international circumstances are favorable and Romgaz is listed at a price close to the minimum price in the IPO, Broker Cluj analyst says.
(English version by Loredana Fratila-Cristescu)