New government decision for Hidroelectrica listing drafted
According to the media, a draft government decision was published setting the details for the listing of a 10% stake in Hidroelectrica through a share capital increase. Fondul Proprietatea would be granted preemptive rights and if exercised further shares could be issued accounting for a participation of 2.49% in Hidroelectrica. The draft decision replaces the former government decision annulled in Court after it was contested by Hidroelectrica union, Hidrosind. We see this more as a formality as the government continuously stated it intends to pursue the listing after the insolvency procedure ends. We rate the news as neutral.
Mecanica Ceahlau - FY 2012 results
The maker of agricultural tools Mecanica Ceahlau (MECF) has reported its FY 2012, for the first time under IFRS, making the comparison of quarterly figures difficult. FY 2012 sales amounted to RON 29.5 mn, down 7% yoy while 4Q 12 sales have most likely dropped more, around 17% yoy. Annual raw material expenses stood under IFRS at RON 10.1 mn, up 4% while salaries expenses for the year amounted to RON 6.93, up 15% yoy. Quarterly personnel costs were RON 1.7 mn, down 1% yoy. Operating profit for the year came in at RON 8.3 mn, up 4%. FY 2012 bottom line was a net profit of RON 7.5 mn, up 8% yoy. Over 1-3Q the profit under RAS came at RON 5.7 mn. The shareholders have also approved the budget for 2013 with sales of RON 29.7 mn and a gross profit of RON 4.3 mn.
