Romanian automotive producer Compa Sibiu (CMP) plans to pay dividends worth RON 2.8 mln (EUR 575,000) from its 2020 net profit, according to a proposal made by the company’s management to the shareholders.

Compa recorded a net profit of almost RON14 mln (EUR 2.87 mln) in 2020, 55% lower compared to 2019, as its revenues also dropped by 27%, to RON 558 mln (EUR 114.5 mln), amid the pandemic and the crisis that hit the international car industry.

The management wants the company to keep most of its profit, but has also proposed the distribution of dividends for the first time since 2004.

The dividend yield is little over 2% based on the current share price of RON 0.608. Compa’s shares are down 21% in the last 12 months but up 6.7% since the beginning of this year.

Compa’s top managers Ioan Deac (CEO) and Ioan Miclea (CFO) own 19% of the company’s shares each. The company currently has a market capitalization of RON 133 mln (EUR 27 mln).

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andrei@romania-insider.com