State-owned gas transporter Transgaz will pay its shareholders a gross dividend of RON 45.38 per share instead of RON 25.22 per share as the company’s board of directors proposed.

The total dividends will thus amount to RON 534 million (EUR 115 million), representing 90% of the company’s net profit from 2017.

The Transgaz management argued that distributing 90% of its profit would make it difficult for it to finance the big investment program it has for the next years, which includes building the Romanian section of the BRUA gas pipeline. However, the Economy Ministry refused to make an exception from the Government decision that forced all state-controlled companies to distribute 90% of their net profits for dividends.

The Economy Ministry controls 58.5% of Transgaz with the remaining 41.5% held by private investors.

editor@romania-insider.com