The 20 companies in the main BET index of the Bucharest Stock Exchange (BVB) reported a cumulative net profit of RON25.4bn (over €5bn) in 2022, 66% more compared to 2021, according to Ziarul Financiar daily.
Out of the 20, 15 reported higher earnings or switched to profit. At the same time, the blue chips’ combined revenues increased by 67.5%, to RON131.4bn.
"Such a big increase is good news normally, except that many firms in BET have majority foreign shareholders and can repatriate profits. The direct impact on the Romanian economy may be limited as a result, but there is also an indirect impact. Because these companies that are acting in Romania have more money and at least a part of them give it to employees or make investments in Romania or buy services from other Romanian companies, a multiplier effect occurs and this generates higher turnover and profit for the entire economy," said economic analyst Dragos Cabat.
OMV Petrom, the only local oil and gas producer, made a major contribution to the overall result of the 20 blue chips.
The company made the largest contribution to the aggregate profit, as the company's net profit increased by RON7.4bn or 260% y/y to RON10.3bn in 2022.
Excluding OMV Petrom from the calculation, the cumulated net profit of the other 19 companies increased by only 21.3% y/y, and revenues by 33.5%, according to calculations by the brokerage company Goldring.