Romania: Transgaz and Transelectrica expected to distribute 90 % of 2020 profit as dividend

, SEE Energy News

According to memos sent by the Romanian Government, state-owned companies, Romanian electricity and natural gas transmission system operators Transelectrica and Transgaz are expected to distribute at least 90 % of their profit recorded in 2020 in form of dividends or other payments to the state budget.

In March, Transgaz said it plans to distribute gross dividend in the amount of 1.66 euros/share from last year’s net profit. The total payout will amount to 19.6 million euros, which is about 55 % of the company’s net profit recorded in the previous year. Transgaz recorded a net profit in the amount of 46 million euros in 2020, which is by 34 % less compared to the previous year.The company’s operating revenues fell by 15 % to 273.2 million euros in 2020, while operating costs fell by 11 % year-on-year to 225.5 million euros.

Also in March, Transelectrica proposed to distribute only 26 % of its last year’s profit as dividends, namely 8 million euros in total. However, the company will also distribute additional 4.2 million euros worth of dividends from reserves. Thus, the total amount paid to shareholders as dividends will reach 12.2 million euros. Transelectrica recorded a net profit in the amount of 23.3 million euros in 2020, which is by 18.3 % higher compared to the previous year. The increase in profit was mainly due to reduced operational expenses, including depreciation, as well as to an efficient management of available resources.