State-owned company Transgaz Medias, which holds the monopoly for natural gas transport in Romania, reported a net profit of RON 596 million (EUR 132.5 million) last year, up 22% over the previous year, according to the preliminary financial report sent to the Bucharest Stock Exchange. The company's shares jumped 7% after the report.

The operating income amounted to EUR 414.6 million last year, up 12% over the previous year, as the revenues from the domestic gas transmission activity as well as those from the international transmission activity were higher than in 2015.

The higher profit will translate into higher dividends for Transgaz’s shareholders given that state-controlled companies may be forced to distribute 90% of their profits. The total dividends may thus amount to over RON 500 million, resulting in a gross dividend per share of around RON 45 and a dividend yield of over 13% (the values may differ based on the final audited financial results).

Transgaz shares, which are trading on the Bucharest Stock Exchange with the ticker TGN, went up by 7% on Thursday morning, February 16, after the company announced its preliminary result, reaching an all-time high of RON 350. At this price, the company is valued at over EUR 900 million or 7 times its 2016 net profit.

Transgaz is controlled by the state via the Economy Ministry, which holds a stake of 58.5%.

editor@romania-insider.com