ad hoc EEII AG: Half-Year Results per 06-30-2020

EEII recorded a loss of CHF 2.6 Mio. for the half year 2020 (H1 2019: Profit of CHF 2.2 Mio.). The Covid-19 related distortions in financial markets, particularly in the first quarter 2020, lead to an aggravated price reduction in its investment in Gazprom shares, (- CHF 2.1 Mio. ytd) moreover influenced by dramatically low crude oil notations. Despite that the global equity markets knew an unexpected, robust recovery, the second quarter lead to slight easing only, due to the company’s investment focus in the energy sector. The net asset value (NAV) amounted to CHF 3.26 by the end of June 2020, henceforth a loss of 34.1% compared to the end of 2019.

The year 2020 is held hostage by the Covid-19 pandemic. For EEII, with its investment focus in energy and commodity assets in Eastern Europe, it resulted in the wipe out of all its investment and recovery efforts achieved over the last two years. On the one hand, due to a massive share price reduction in its most prominent holding, Gazprom. On the other hand, because of the lackluster investment climate in Ukraine, with a somewhat faltering dynamism of President Wolodimir Selensky’s government reform efforts.

The outlook for EEII, considering the aforementioned framework remained uncertain at best, whereas any timid expectations for a sustainable recovery of the Ukraine exposure must be judged more and more unrealistic. In the scope of the Board of Director’s efforts to reposition the company an agreement with a new anchor investor was entered into. As published in the ad-hoc communication dated, August 3, 2020, a conventional agreement signed by NACALA WORLDWIDE AG to purchase the entire equity holdings of the current majority stake-holder, Gehold SA, was signed.

The Board of Directors is convinced that such transformation will open new opportunities for the public share-holders offering access to an encouraging investment universe with an amended strategic and geographical orientation. Further details shall be revealed in due course.

The entire half year results 2020 are at disposal under using the web-link – for a data down-load.

For further information please contact:

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

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

EEII AG  -  Alpenstrasse 15  -  P.O. Box 4853  -  6304 Zug  -  Switzerland
Phone +41 41 729 42 80  -  Fax +41 41 729 42 29