The total amount to be paid reaches RON562.15 million (EUR127.7 million), about 99% of the preliminary net profit for 2012. The fund posted net profit of RON567 million, 4.2% higher than in 2011, according to its preliminary financial report.
Proprietatea’s revenue rose 41% last year to RON871.8 million. The fund’s costs more than quadrupled to RON304.8 million, from RON72.3 million in 2011.
Most of revenue came from dividend income earned from the portfolio companies, including RON353.1 million from OMV Petrom (SNP.RO), RON140.6 million from Romgaz and RON52.5 million from Transgaz, the fund said in its report.
Also, the fund reported revenue from disposal of financial assets of RON208.1 million, much higher than in 2011, following the sale of its stake in Azomures in a takeover bid and part of its holdings in Erste Group Bank (EBS.RO) and Raiffeisen Bank International.
The vast majority of cost increase was due to a significant rise in expenses from disposal of financial assets (RON195.1 million in 2012 versus RON4.6 million in 2011), which “represent the cost or carrying value that these investments were held at prior to disposal,” Proprietatea said in its report. Also, the fund had to book higher provisions, following Hidroelectrica’s insolvency in June.
At the end of 2012, Proprietatea’s net asset value stood at RON14.97 billion, up 3.6% on the year.
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism. However, foreign institutional investors now hold about 54% of the fund’s shares, while Romanian private individuals control just 28%.
On the Bucharest stock market Thursday morning, Proprietatea traded up 0.2% at RON0.579 per share. (EUR1=RON4.387)