Romanian state-owned gas transporter Transgaz Medias plans to distribute 90% 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 proposed gross dividend per share is RON 46.3 (EUR 10.1), according to a press release sent yesterday to the Bucharest Stock Exchange.

The dividend represents 12.6% of the Transgaz share price, which is one of the highest yields offered by a company listed on the Bucharest Stock Exchange this year.

One day earlier, the Board of Directors made a proposal to distribute only 50% of the net profit. However, the Government has asked its representatives in state-controlled companies to push for the distribution of 90% of their profits as dividends, to get more money to the state budget. Thus, the new proposal will likely be approved by the General Meeting of Shareholders that will take place at the end of April as the state holds 58% of Transgaz. The Economy Ministry will thus get about RON 316 million (EUR 69.3 million).

The total dividends will amount to RON 545.4 (EUR 119.7 mln) as Transgaz recorded a net profit of RON 594.5 million (EUR 130.5 mln) in 2016. The dividends will be paid starting July 18.

editor@romania-insider.com