The Proprietatea Fund estimates a dividend of 0.0156 lei

The management of the Proprietatea Fund (symbol: FP) expects that the Fund will pay a dividend of 0.0156 lei/share in 2011, according to a report sent to the Bucharest Stock Exchange. The management added that the Proprietatea Fund said that the final dividend payable to shareholder may be different, since the Fund has only announced the preliminary results pertaining to last year and the financial statements will be audited and approved in the General Shareholder Assembly.

The representatives of the Proprietatea Fund have mentioned that the proposed dividend is based on the Fund"s policy when it comes to dividends, which is stipulated in the listing prospectus, according to which "in the absence of extraordinary circumstances or market conditions, shareholders are advised to distribute 100% of the distributable profit each year, which is generally defined as the gross income from dividends earned on investments, as well as interest on the cash deposits, minus expenses and taxes, according to the fiscal and legislative provisions in effect".

Last year, the Proprietatea Fund made a net profit of 456.2 million lei, down compared to 2009, when the net profit was 730.1 million lei.

The Fund reported current operating revenues of 576.6 million lei, compared to 2009, when it had revenues of 1.32 billion lei. In 2009, the Proprietatea Fund earned about 970 million lei from the sale of its stakes in "CEZ Distribuţie" and "CEZ Vânzare", whereas last year it didn"t sell any major stake in its portfolio. In 2010, the Fund earned 179 million lei in dividends from the companies in its portfolio, as compared to 2009, when dividends amounted only to 118.2 million lei. Interest revenue decreased last year 142.5 million lei in 2009 to 131.5 million. In 2010, the Fund reported income from the adjustments for the depreciation of assets and provisions of 217.4 million lei, whereas in 2009, they only amounted to 31.6 million lei.

The officials of the Proprietatea Fund said: "An important fluctuation which impacted the year"s earnings was that of the revenues from adjustments for asset depreciation and provisions, most of that being related to the reversal of the amount of 216.6 million lei of 2010 of the adjustment for the loss of value of the investment in Hidroelectrica, which was initially recorded in 2006 and 2007".

Last year, current operating expenses of the Fund amounted to 109.2 million lei, significantly lower than they were in 2009, when they amounted to 486 million lei.