Romania, Romgaz and Nuclearelectrica could pay lower dividends

, SEE Energy News

State Secretary at the Ministry of Finance Mihai Calin Precup said that natural gas producer Romgaz and electricity producer Nuclearelectrica could benefit from a decrease in the level of dividend distribution, from 90 % to 50 %, with the resulting funds will being used for investments.

He said that, as in the previous two years, the two companies will most likely be exempted from mandatory 90 % dividend distribution in order to provide additional financial sources for investments by the two strategic companies.

Therefore, Romgaz will be able to benefit from additional 93 million euros for investments, while Nuclearelectrica will receive additional 62 million euros for the same purpose.

Romgaz recorded a net profit in the amount of 391 million euros in 2021, which is by 52 % higher compared to 2020. Natural gas production in 2021 was 5.028 billion cubic meters, which is by 508.8 million cubic meters or 11.3 % higher than the production in the previous year. The company’s revenues rose by 43.6 % in 2021 reaching 1.19 billion euros.

Nuclearelectrica, the operator of the country’s sole nuclear power plant Cernavoda, recorded a net profit in the amount of 206 million euros in 2021, which is by 45.5 % higher compared to the previous year. The company’s operating profit rose by 32.5 % year-on-year to 355 million euros in 2021, mainly due to an increase of operating revenues by 2 8% to more than 650 million euros. At the same time, operating expenses rose by 23.3 % to almost 300 million euros.