Expenses were down 65%, from RON30.6 million in the first quarter of 2011 to RON10.48 million (EUR2.4 million).
SIF Transilvania was the most profitable of the five regional investment funds (SIF) in the first quarter, posting net profit of RON67.8 million. According to its draft budget, the fund’s net profit should drop this year to RON89 million (EUR20.4 million), from a record-high RON207.7 million (EUR47.5 million) profit last year, owing to the sale of a stake in lender BCR to Austrian group Erste.
For this year, SIF Transilvania has budgeted investments of RON75 million (EUR17.1 million), 23% higher than the RON61 million last year. The fund is interested in companies in the energy and utilities sector (Petrom, Transgaz, Transelectrica), pharmaceuticals (Antibiotice, Biofarm, Azomures), industry (Alro, Electromagnetica, Compa, Prospectiuni) and other firms in the food and textile industry. SIF Transilvania will also monitor companies in the finance-banking sector, such as BRD, Banca Transilvania and Erste.
The fund’s management says SIF Transilvania could take part in the state’s planned offerings, buying stock in companies like Petrom, Romgaz, Transgaz, Transelectrica, Hidroelectrica, Nuclearelectrica, and in gas suppliers GDF Suez and EON Gaz Distribuție. Other companies on the SIF’s list are CEC Bank, Posta Romana, Romaero, Tarom, Romtelecom and CFR.
SIF Transilvania’s net assets stood at RON1.418 billion at the end of March, up 6.5% from RON1.331 billion in December last year.
On Wednesday, SIF3 traded up 3.86% at RON0.727 in Bucharest. (EUR1=RON4.3757)