ENR Russia Invest SA / ENR RUSSIA INVEST SA ANNOUNCES 2016 UNAUDITED
INTERIM RESULTS AND 30 JUNE 2016 NET ASSET VALUE . Processed and
transmitted by Nasdaq Corporate Solutions. The issuer is solely
responsible for the content of this announcement.
Press Release
Geneva, 26 August 2016
ENR RUSSIA INVEST SA ANNOUNCES 2016 UNAUDITED INTERIM RESULTS AND 30
JUNE 2016 NET ASSET VALUE
For the half year ended 30 June 2016 ENR Russia Invest SA ("ENR") and
its subsidiaries made a consolidated net profit of CHF 3.17 million
(consolidated net profit of CHF 0.70 million for the 2015 half year). At
30 June 2016 ENR's consolidated net asset value ("NAV") was CHF 44.21
million (CHF 42.18 million at 31 December 2015).
During the reporting period ENR acquired fixed income instruments issued
by Russian corporates for an aggregate value of CHF 15.19 million. ENR
also generated CHF 5.07 million via the sale of and the repayment of
fixed income instruments during this period.
Early in 2016 there have been signs of an improvement in the Russian
economy. Gross domestic product ("GDP") has contracted by less than what
was expected and estimates are that GDP growth will be -0.5% in 2016,
better than the -2.5% range estimates from earlier in the year. The
weaker ruble should help increase export competitiveness and this will
boost net exports and accumulate reserves (in particular for
export-oriented industries such as oil and gas, metals and mining and
the chemical industry). Other domestic-oriented producers should also
benefit where the positive effect of import substitution should be
visible over time. The federal budget deficit was 4.3% of GDP in the
first half of 2016 (compared to the 2016 3% target) and the deficit is
financed primarily from the Reserve Fund.
Headline inflation has dropped from 12.9% in December 2015 to 7.5% in
the second quarter of 2016, which allowed the Central Bank of Russia
("CBR") to cut the key rate by 50 basis points to 10.5% in June 2016
(after holding it flat at 11% for almost ten months). The CBR expects
inflation to decline to a 5% - 6% range by year-end 2016, allowing for
further possible rate cuts.
Domestic demand and consumption remain weak and manufacturing growth and
construction output and fixed investment is contracting. Oil and gas
prices continue to be key factors to the prospects of the Russian
economy where low global energy prices have a negative impact on the
economy. The strong correlation between these prices and the value of
the ruble remains.
ENR continues to evaluate investment opportunities, especially those at
potential lower entry valuations. Potential investment opportunities
relate to export orientated and import substitution businesses;
companies operating in non-cyclical sectors (for example, low cost food
retail and discounters, healthcare and pharmaceutical) and situations
where owners invested substantial capital and current asset values are
materially undervalued.
ENR's interim report for the six months ended 30 June 2016 is available
from today on ENR's web site at www.enr.ch.
Contact person: Ben de Bruyn, ENR Russia Invest SA, tel: +41 22 510 2626
ENR Russia Invest SA is an investment company listed on the SIX Swiss
Exchange. It specialises in the management of equities and equity-like
investments, real estate as well as fixed income instruments in Russia,
other members of the Commonwealth of Independent States and the Baltic
States. Additional information on ENR Russia Invest SA is available on
the company website www.enr.ch
Media release (PDF): http://hugin.info/143040/R/2037522/759211.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: ENR Russia Invest SA via Globenewswire
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ENR Russia Invest SA
2--4 Place du Molard Geneva Switzerland
ISIN: CH0034476XXX;
http://www.enr.ch/Home/
(END) Dow Jones Newswires
August 26, 2016 12:30 ET (16:30 GMT)
© 2016 Dow Jones News
