Transelectrica - GSM called to approve 2012 revised budget, unchanged from previous version
Transelectrica called a GSM for March 14 asking shareholders to approve the 2012 revised budget which sees a net profit of RON 31.2 mn in 2012. The budget has already been approved by the shareholders end-December but in the meantime it was also approved by the majority shareholder through a government decision. Legally the company must ask again the shareholders' approval on the budget approved by the state. So this is just a formal step of the process, so we see the news as neutral for Transelectrica.
Bucharest Stock Exchange reports weak 4Q 2012 results
The Bucharest Stock Exchange (BVB) reported its 4Q 2012 results with the turnover down 27% yoy to RON 3.5 mn, slightly in line with consensus, on lower traded volumes of shares (-17% yoy). Labor expenses decreased by 5% yoy to RON 2 mn, while third parties costs adjusted downwards by 1% yoy to RON 1.4 mn. However, BVB reported an operational loss of RON 0.7 mn, slightly lower than the RON 0.4 mn operational loss reported for 4Q 11. The appreciation of the national currency against the main foreign currencies during the last part of 2012 led to Fx losses of RON 0.7 mn, thus financial gains barely influenced the bottom line, and BVB reported a net loss of RON 0.5 mn, after seven consecutive quarters with net profit. Consensus was projecting a net profit for the quarter of RON 1.4 mn.
Over 2012, turnover decreased by 19% yoy to RON 17.5 mn, on lower traded volumes (daily average turnover for shares down 27% yoy to EUR 6.7 mn). Net profit almost halved yoy to RON 9 mn, as dividends received from the Central Depository were thinner.
We expect the payout ratio to continue to stand close to 100%, thus DPS should stand close to RON 1.14, which implies a dividend yield of 5.3% taking into consideration the last closing price of RON 21.45.
