Romanian gas transporter Transgaz Medias (stock ticker: TGN) will distribute over half of its net profit to shareholders. The dividend yield is close to 8%.

Transgaz Medias will pay dividends worth a total RON 257 million (EUR 58 million) representing 51% of the net profit it made last year, the company announced on Tuesday, March 24.

The state-controlled gas transporter increased its net profit by 50% in 2014, to RON 502 million (EUR 113 million), on higher gas transport fees. The company reduced the dividend payout ratio, as it wants to keep more money for investments.

Transgaz will pay a gross dividend of RON 21.8 (some EUR 4.9) per share, which is 24% higher than last year’s dividend.

The potential dividend yield (the value of the dividend divided by the share price) is 7.9%, taking into account the closing price on Monday, which was RON 275.75 (EUR 62) per share.

Transgaz was one of the local market’s top gainers in the past year. Its share has increased by 42% in the last 12 months, fuelled by higher profits. Transgaz now has a market capitalization of EUR 730 million (as of March 24).

The company in controlled by the Romanian stat via the Ministry of Economy, which holds 58.5% of its shares. The remaining 41.5% are trading on the Bucharest Stock Exchange.

Andrei Chirileasa, andrei@romania-insider.com