Daily Economic Briefing – August 7, 2013

Average monthly earning of employees stalled in June, at just over RON 1,600

Average salary gain decreased in June, from the previous month, by RON 5 (0.3%), to the net amount of RON 1,606, the largest gains being recorded in oil and natural gas extraction (RON 4,049) and the lowest – in hotels and restaurants – RON 880, according to data announced by the National Institute of Statistics (INS) on Tuesday.

UniCredit Tiriac Bank reported profits of RON 202.9mln in H1/2013

UniCredit Tiriac Bank reported a net profit of RON 202.9mln (EUR 46.2mln) in the first half of the year, over 2.5 times higher than in the similar period last year, the bank’s assets growing by 7.7% compared to June 30^th 2012. The bank’s incomes totaled RON 693.5mln (EUR 157.9mln) in the first six months of the year, up 17.3% compared to the similar period of 2012, especially due to large receipts from commissions and gains from trading operations, according to a press release submitted by the bank. In the first half of the year, operating expenses stood at RON 320.7mln (EUR 73mlkn), up 2.5% compared to H1/2012. The increase was determined by variable business costs and the depreciation of capital investments. Thus, the gross operating profit reached RON 373mln, up 34% versus the similar period of the previous year.

RBS Romania: We will continue to be a corporate bank

After mid-September, RBS Romania will continue to grant loans only to legal persons and institutions, the bank officials announced, specifying that the transfer of the retail business and of Royal Preferred Banking of RBS to UniCredit Tiriac Bank SA and UniCredit Consumer Financing IFN SA has been successfully completed. “We will continue to serve our clients as best as possible during the transition period, which will end on September 15^th. Regarding the business strategy that RBS will follow in Romania, we will continue to be a bank dedicated to corporate clients, providing competitive and innovative products of banking transactions and treasury to the segment we focus on, top international and national companies of large sizes and institutional clients”, Henk Paardekooper, President and CEO of RBS Romania, stated in a communique.

The fate of Remin Baia Mare to be decided this fall

If last year it was on the verge of collapse, currently the National Company of Precious and Nonferrous Metals Remin Baia Mare is in the center of attention of state authorities and private companies that have shown interest to revive the mining activity in the area. The reorganization plan of the mining company Remin Baia Mare, insolvent since 2009, will be presented to the general meeting of creditors this autumn, after concluding all the feasibility studies currently carried out by the company with various investors interested in reviving the mining activity in Maramures. Recently, the mining company, one of the largest in the country, has launched an announcement to attract investors which would contribute, under various forms, to the reopening of mines owned by Remin. Following this announcement, six investors have shown interest, according to Adrian Volintiru, President of the Authority for State Assets Administration (the largest creditor of Remin Baia Mare).

The administrator of SIF Muntenia (BSE: SIF4) to reduce its staff by a third, before its takeover by SIF Banat-Crisana (BSE: SIF1)

SAI Muntenia Invest, administrator of SIF Muntenia Bucharest, will reduce its number of employees by 36%, from 70 to 45, before the investment administration company is taken over by SIF Banat – Crisana. Although the number of positions will be reduced, Muntenia Invest will continue to have the same organizational chart and internal regulations, according to a decision of the General Meeting of Shareholders, quoted by Mediafax. The investment administration company is part of the Muntenia Financial Group, which owns over 99.9% of the shares, and will be acquired by SIF Banat-Crisana. Muntenia Invest acquisition is the most important move of SIF Banat-Crisana this year, the financial investment company thus following to own the indirect control over SIF Muntenia.

UCM Resita (BSE: UCM) posted net losses of more than RON 27.3mln in H1/2013

Romanian hydro power equipment producer UCM Resita posted in the first half of this year net losses of over RON 27.3mln, according to a press release posted on the website of the Bucharest Stock Exchange (BSE). “In the first half of 2013, the turnover of UCM Resita was RON 26,454,531, down 61.37% compared to the same period of 2012. This decline is due to the fact that approximately 85% of the turnover is made in the hydro energy sector, UCM Resita SA being the only Romanian company specializing in the manufacturing and commissioning of hydropower plants, and its main client, Hidroelectrica, was in insolvency proceedings during this period. Also, the value of all deliveries from the second half of 2012 and until 26.07.2013 to all Hidroelectrica and Hidroserv branches was diminished by 5%”, the document shows.

SIF Oltenia (BSE: SIF5) incomes increased by 2.2 times in the first half of 2013

SIF Oltenia revenues increased by 2.2 fold in H1/2013, to RON 189.92ml (EUR 43.2mln), while the expenses increased by 2.9 times, to RON 84.26mln, following the increase in costs with disposed investments. In the same period of 2012, the company posted total revenues of RON 86.66mln and expenses of RON 28.68mln. Expenses with the disposed financial investments (the negative difference between the book value of titles or the acquisition cost and their sale price) increased by 3.4 times, to RON 77.57mln, while incomes from disposed financial investments were three times higher, of RON 152.28mln.

Pipe manufacturer TMK Artrom (BSE: ART) is back on black in Q2/2013

Pipe producer TMK Artrom Slatina returned to profits in Q2 and ended the first six months with profits of RON 1.9mln (EUR 430,000), but the gain is much below that posted in the similar period last year, of RON 33.9mln. In the first three months of this year, the company posted losses of RON 1.2mln, while during April – June it posted profits of RON 3.1mln. The turnover increased slightly in the first six months of this year, to RON 464.3mln (EUR 105.7mln), compared to RON 463.5mln in the similar period last year, according to information submitted on Tuesday by the company to the Bucharest Stock Exchange (BSE).