Romania: Romgaz shareholders seek higher dividends

, SEE Energy News

Calculated at the current prices of the company’s shares (which has plunged with the rest of the market amid the coronavirus epidemic), the proposed gross dividend would bring investors a yield of 5.5 %.

Some of the shareholders of Romanian state-controlled natural gas producer Romgaz are unhappy with the dividend proposed by the company’s management of 0.33 euros/share.

According to investment fund SIF Moldova, a shareholder with almost 2 % stake in Romgaz, taking into account the company’s fundamentals and the dividends paid in the past, minority shareholders aks the company to review its initial proposal for dividends for 2019, so that it is at least at the level of the previous year.

In response, Romgaz officials said that the dividend proposed is prudent and leaves the company enough funds for investments, adding that although some investments may be delayed, it does not mean that they are cancelled.

Romgaz recorded a net profit in the amount of 298 million euros, which is by 4.55 % higher compared to the previous year. The company’s revenues increased by 1.52 % in 2019 to 1.05 billion euros, following an increase of sales of gas from both domestic production and from gas purchased for resale. The increase also results from a 4.4 % rise of revenues from sales of gas produced by Romgaz and of gas purchased for resale, as well as gas from joint ventures, an increase by 11 % of revenues from storage services and an increase by 115.7 % of revenues from gas condensate sales. According to Romgaz’ data, Romania’s natural gas consumption dropped by 8.7 % in 2019. This managed to offset a decreased revenues from electricity sales by 50.95 %. Electricity sales decreased as production decreased by an annual 49.4 % due to investment works carried out at an power plants. Romanian state is the largest shareholder in the company, with 70 % stake.

error: Content is protected !!