Romania: Higher dividends proposed at Romgaz for 2020

, SEE Energy News

Proposed dividend is slightly higher compared to 2019, when it amounted to 0.33 euros/share, but it is significantly lower compared to previous years. Romanian natural gas producer Romgaz proposed a gross dividend of 0.37 euros/share from 2020 net profit and retained earnings from previous years. The total payout will amount to 141 million euros, of which 129 million from last year’s net profit and the remaining 12 million euros from retained earnings. Based on the current values of shares, it represents a 5.3 % yield.

Romgaz recorded a net profit in the amount of 257 million euros in 2020, which is a 15 % year-on-year increase. The company’s revenues decreased by 20 % to 835 million euros in 2020. Revenues from natural gas sales dropped by 25 %, while revenues from underground gas storage operations rose by 13 %, as well as revenues from electricity sales, which increased by 30 % in 2020. In 2020, Romgaz produced 4.519 billion cubic meters of natural gas, which is 14 % less than in 2019. On the other hand, electricity production almost doubled in 2020, reaching 937 GWh. The Ministry of Energy is the largest shareholder in the company with 70 % stake.