BRD-GSG - 4Q 2012 net loss widens (negative)
BRD-GSG has reported a significant larger unconsolidated net loss for 4Q 12 due to higher risk costs, as coverage ratio improved. The reported loss was wider than our forecast and consensus estimate which expected a tiny profit. NIM contracted a bit to 3.78%, from 3.85% in 3Q 12, after a hike in the previous quarter. The main reason for the huge risk costs of 866 bps, was the hike of the coverage ratio. NPLs increased only slightly above our expectation, from 20.14% in 3Q 12 to 21.3% while coverage ratio jumped from 47.0% to 51.9%. C/I for the quarter stood at 48.9%, deteriorating from 45.7% in 3Q 12. All in all, BRD-GSG net loss for 4Q 12 amounted to RON 342 mn, while FY 2012 net loss was RON 332 mn. For the moment, we confirm our "reduce" rating for BRD-GSG and our 12m TP of RON 7.09.
Dafora 2012 stand-alone IFRS results
The drilling services provider Dafora reported its 2012 preliminary stand-alone figures under IFRS with the annotation that final audited figures might suffer modifications. We do not have comparable quarterly figures so we focus on the annual comparison. Revenues in 2012 stood at RON 214.7 mn, 32% higher yoy. Raw materials expenses more than doubled yoy reaching RON 49.1 mn, salaries climbed by 6% yoy while the largest cost item, third parties expenses, surged by 50% to RON 84 mn. As a result, the company recorded an operating loss of RON 2.7 bn, versus a net profit of RON 11.9 mn in 2011. Financial losses climbed to RON 15.9 mn from RON 12.9 mn. Thus Dafora reported a net loss for 2012 of RON 15.7 mn, from a net loss of RON 1.4 mn in 2011. The loss was expected after Dafora reported for 1-3Q 2012 under RAS revenues of RON 135 mn and a net loss of RON 11.94 mn.
