Romania’s biggest aluminum producer Alro Slatina will pay a gross dividend of RON 0.53523 per share from last year’s net profit and the company’s reserves, according to a proposal by the company’s board of directors.

The proposed dividend represents 15.8% of Alro’s current share price, one of the highest yields on the local capital market. The total cash dividends will amount to RON 382 million (EUR 82 million), which is more than the company’s preliminary net profit for 2017.

Alro recorded a net profit of RON 318 million last year, up from EUR 67 million in 2016, as the company’s sales increased by 16%, to RON 2.47 billion.

Dutch-based Vimetco group owns 84% of Alro’s shares. The group is controlled by Russian investor Vitaliy Machitski. Fondul Proprietatea also owns a 10.2% minority stake.

Alro is listed on the Bucharest Stock Echange and has a market capitalization of EUR 594 million.

editor@romania-insider.com