Fondul Proprietatea's nine-month profit ups 50% on equity offload

Fondul Proprietatea reported net profit of 646.47 million lei (€152.83 million), 50% higher than year-ago period, after selling its equity positions in Petrom Aviation, CEZ Distribution, CEZ Vanzare and CEZ Services. The fund reported for the three quarters ended in September 2008 an after-tax profit of 424.8 million lei (€117 million), profit lifted by revenues from dividends. Jan-Jun 2009 unaudited financial report shows dividends had a lower share in this year's net, namely 117.26 million lei. However, gross revenues driven by the sale of Fondul Proprietatea's equity positions in Petrom Aviation, CEZ Distribution, CEZ Vanzare and CEZ Services accounted for 73% of the fund's profit before tax and amortization, of 745.51 million lei.

The state-owned fund was initially expecting a net profit of 212.4 million lei for this year. The sellout has helped the fund beat its estimates and brought it around 547.41mln lei.Fondul Proprietatea's assets totaled 11.68 bln lei at the end of September, the biggest share consisting in stakes worth a total 9bln lei. The fund still holds 2.04 bln lei in liquidities and another 83 million lei in the form of state securities. The accounts receivable regarding the unpaid capital stood at 519.39 million lei, and dividends to collect worth 60.14 million lei, for the period under review.