Transgaz 2009 IFRS results

Revenues reached RON 1,214 mn, in line with our estimates. EBIT reached RON 307 mn, up 7% upon our forecast, as the company recorded some gains from the revaluation of current assets and changes in inventory of RON 19.3 mn. The net profit came in at RON 191 mn, 23% lower than our estimate, as the company recorded a deferred tax of RON 70.4 mn. The company performed a revaluation of property, plant and equipment at the end of 2008 under Romanian Accounting Standards, which brought the fixed assets values closer to IFRS amounts. Thus the company recorded in 2008 IFRS financials a negative deferred tax of RON 94 mn. The operation had to be reversed in 2009, following a change in tax legislation in 2009, mentioning that certain revaluation amounts were considered non-deductible for tax purposes.

The differences between the released results and our estimates bear no material impact on our projections for the next years and moreover the items in question are non-cash. We remind that we value the company using the dividend discount model, and dividends are paid from the net profit under Romanian Accounting Standards. Therefore we view the results as neutral and keep our 12-month target price of RON 230 and the 'hold' recommendation.

Articole similare