The shareholders of Romanian state-controlled gas producer Romgaz (SNG) approved the distribution of RON 690 million (EUR 140 mln) as dividends, an amount financed from last year's profit and the retained earnings account, according to a company's note to investors.

The dividend payout ratio is not much higher than 50%, which leaves resources in the company's reserves account in the view of ambitious investments related to Neptun Deep offshore project, among others.

In 2020, Romgaz reported a preliminary net profit of RON 1.25 bln, 15.1% higher than in 2019, given that its expenditures fell faster than the revenues. The dividend per share was thus set at RON 1.79, which resulted in a gross yield of about 5.5%, based on the closing price on April 28 (RON 32.55 per share).

To receive dividends, investors must hold Romgaz shares on June 8, with payments due June 30.

The Romanian state, through the Energy Ministry, owns 70% of the gas producer, which means that the gross amount due to the state from the dividends approved by the shareholders is almost RON 483 mln (nearly EUR 100 mln).

The market capitalization of the natural gas producer amounts to about RON 12.5 bln (EUR 2.5 bln). Romgaz's shares are up 15.8% this year, in line with the BET index's 16.2% growth.

andrei@romania-insider.com

(Photo source: Facebook/Romgaz)