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EEII AG reports the annual results 2016
The higher market value of the Company’s investment portfolio paired with lower operating costs were the main contributors towards a slightly improved end-year result for 2016, compared to a net loss for 2015 of CHF 3.25 Mio. The net asset value (NAV) of CHF 3.49 per share remained resilient (2015: CHF 3.48). EEII completed the financial year with a net profit amounting to CHF 14,108.
After a rather weak start into the year, global commodity prices recovered and allowed for the major investment holdings in EEII’s portfolio to substantially improve in value. Gazprom, e.g., increased by 44 % year-to-date, and the share price of the copper mining company KAZ Minerals sharply advanced from a year-low of GBP 1 to GBP 3.65. This satisfying share price development helped to offset the continuously difficult market environment of the Ukrainian stock market. Ukrnafta, another important equity holding of the Company, decreased in value once more, putting a further strain on the Company’s NAV by losing 46% of its value or CHF 1 Mio, resp. While the result of the previous year had been significantly affected by currency losses, currencies in the foreign exchange markets relevant for EEII proved to be at par and well balanced overall. The Ukrainian Hryvna devalued by 10 % in 2016 (2015: - 34%); on the other hand, the Russian Ruble gained 20 % versus the CHF (2015: -29%).
Further developments of the Company’s Net Asset Value will, in the short term, be largely dependent on the value of the underlying commodities. For a long term and sustainable improvement of the investment environment in EEII’s target markets, a fundamental political stabilization and resolution of the conflict in Eastern Ukraine is a critical requirement.
The full annual report for 2016 is available under www.eeii.ch using the link – http://www.eeii.ch/reports/2016.html .
EEII AG’s Annual General Meeting will take place April 12, 2017, at 11.00h at the Parkhotel in Zug.
For comprehensive information about the AGM, please refer to:
For further information, please contact:
Marcus H. Bühler, CEO (Tel: +41-44-552 43 43).
EEII is quoted on the Swiss Exchange (SIX) (Bloomberg: EEII SW Equity).