Thursday, February 11, 2010

Romanian Proprietatea Fund Sees Eightfold Fall In 2010 Profit Mediafax

BUCHAREST -(Dow Jones)- Romanian investment fund Fondul Proprietatea on Wednesday estimated its net profit will fall eightfold to 91.16 million lei ($ 30.57 million) in 2010, on substantial lower revenue, envisaged at RON154.6 million, news agency Mediafax reports.

The fund, set up in 2005 to compensate Romanians whose properties were seized during communism, reported net profit of RON730.13 million in 2009 and total revenue of RON1.32 billion.

Fondul Proprietatea said 76% of its net earnings in 2009 came from selling its stakes in three Romanian units of Czech energy group CEZ (BAACEZ.PR), in airplane fuel supplier Petrom Aviation, and in drugstore network operator Centrofarm (CEOF.RO).

"There are no foreseeable stake sales this year," the fund said.

According to the company's revenue and expenditure budget for 2010, earnings from dividends are expected to reach RON60.4 million, while the revenue from interests are predicted at RON89.27 million. Net earnings from rate exchange differences are seen at RON4.7 million.

Fondul Proprietatea aims to cut expenditure by 88.13% to RON57.6 million in 2010, due to the "limitations" Romania's economy is still experiencing, the fund said.

Romania's Finance Ministry holds about 60% of Fondul Proprietatea's shares, while the remaining shares are distributed among private stockholders. The fund owns shares in nearly 90 companies, including Transgaz, Transelectrica, Alro, Romgaz and several power distributors.

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