News

EEII recorded a loss of CHF 0,5 Mio. (HY 2017: loss of CHF 0,88 Mio.) for the first half of 2018. During the reporting period, the fair value of all investments decreased by 5.3 % or CHF 0,311 Mio. The intrinsic value (NAV) contracted by 9.3 % from CHF 3,54 to CHF 3,21 per share during the first six months of 2018.

Despite a mildly positive backdrop in EEII’s investment markets, the value of the Company’s portfolio investments could not benefit from the prevalent trends, i.e. high energy prices and generally speaking improved economic fundamentals both in Russia and Ukraine.

Due to further tightening international sanctions, Russia’s economy managed to grow only modestly at a 1.8% p.a. pace. High oil prices which support the all-important energy sector and buoyant World Cup related spending were not enough to compensate for the economic drag caused by the sanctions. In Ukraine meanwhile, the tentative recovery continued during H1 2018, after growth had picked up somewhat at the outset of the year. The willingness for decisive reforms has not been a trademark of the current government. In fact, the unpredictable and unreliable nature of the political system in Ukraine and its negative impact on the corporate sector has unfortunately become once again the critical liability for one of EEII’s key investments, Ukrnafta.

The renewed tax dispute with the State Fiscal Service caused a severe rerating of Ukrnafta’s shares, (-20% in value in H1 2018), which had a negative impact on EEII’s bottom line of CHF 0.3 Mio (CHF 0.2 per share). EEII’s operating expenses remained stable at a low CHF 0.2 Mio. All in all, these two components reflect the loss of CHF 0.5 Mio. in the first half year of 2018.

To consult the full half-year report 2018, please refer to the information published on the website www.eeii.ch using the link – http:www.eeii.ch/reports/2018.html – for downloads.

For further information please contact:

Marcus H. Bühler, (Tel. + 41 44 552 43 41)

EEII is quoted at the Swiss Stock Exchange (SIX) (Bloomberg: EEII SW Equity)