Sidex stake cuts SIF losses

Financial investment company SIF Moldova posted record profit worth 70.3 billion ROL ($2.1 million) last month, after selling its stake in steel mill Sidex Galati. But profit fails to fully cover the losses reported by SIF Moldova this year, as it lost lawsuits against Bankcoop and the Banking Assets Resolution Authority (AVAB).

However, it does exceed the amount that had to be paid by the company, namely the $3.6 million taken over by Bankcoop and recorded as losses by the financial investment company. The sale of the Sidex stake was the only significant transaction logged by SIF Moldova last month.

The financial investment company lost several lawsuits against AVAB and Bankcoop this year and had to pay part of the sum for which the former Private Ownership Fund (FPP) Moldova had granted warranties.

The lawsuits against AVAB also meant losses worth $1 million, after the company reached a debt clearing agreement with the Authority. SIF Moldova is to gradually pay $2.25 million to AVAB. Out of this amount, $1.2 million had been logged as losses since 2002.

The profit reported in nine months this year was worth 230 billion ROL, accounting for 80% of the early year budgetary estimates and close to the profit logged by SIF Oltenia, which posted 255 billion ROL in the same interval.

If the company uses, as it did last year, part of the profit amassed from the past years to pay out dividends, the accumulated profit worth 287 billion ROL might cover the 490 ROL/share dividend stipulated in the budget.

The steel mill’s shares were registered in the company’s portfolio at a lower value than their actual face value, because Sidex had distributed free shares along the years.

The financial investment company’s net asset per share increased over 8% last month and scored 9,038 ROL/share.

The good results logged by SIF Moldova occurred as the assets of the five financial investment companies took an upward trend on the Bucharest Stock Exchange. SIF Moldova was quoted 12% higher in the last seven transaction sessions and closed at 2,800ROL/share on Monday. vlad.nicolaescu@zf.ro