Romanian state-owned gas producer Romgaz plans to distribute 93.6% of its 2016 net profit as dividends, according to a decision of the company’s Board of Directors that needs to be validated by the shareholders.

The amount that should be distributed as dividends amounts to RON 959.7 million (EUR 210.6 million).

A Government memorandum from January imposed that state-owned companies should distribute as dividends minimum 90% of their 2016 net profits. Romgaz thus plans to distribute an even higher share than the one provided by the Government memorandum. However, the higher the dividends’ share is, the lower are the amounts destined for investments.

Transgaz came up with the proposal to distribute 90% of its profit as dividends whereas Transelectrica considers two option: either distributing 90% or 75%, as the shareholders approved last year.

The Romgaz General Shareholders Meeting will take place at the end of April. The state holds a 70% stake in the company via the Energy Ministry.

editor@romania-insider.com