Bogdan Tudorache

Listing Hidroelectrica is not possible this year, but next year, says Johan Meyer, CEO of Franklin Templeton Investments and Portfolio Manager of Fondul Proprietatea (FP).

“We maintain the opinion that the listing of Hidroelectrica is not possible this year, but next year. The company continues to take the necessary steps to select consultants to prepare for the IPO. Of course, a longer restriction period will accentuate the potential for a postponement of the listing. But, as we assess the situation at the moment, we do not anticipate a major postponement, later than the first or second quarter of next year. We are encouraged to see that the company’s management takes measures to achieve this goal and we believe that the majority shareholder, the Romanian state, continues to support the listing of the company,” says Meyer.

“The order requiring energy companies to submit 5-year investment plans makes sense in theory, but in practice it is extremely difficult for them to make detailed plans in a very short time and in such an unpredictable environment. We do not expect them to be able to make major infrastructure commitments, for example. Any plan must have economic objectives, so it must make sense from the perspective of the company and its shareholders,” he added.

This year, FP approved in the GSM of April 28 a dividend of 0.0642 RON/ share (equivalent to a yield of 5.68%).

The Net Asset Value (NAV) target was reached: in 2019, the cumulative performance of NAV/ share increased by 31.23%, while the average annual discount stood at 29.38%, FP also announced.