The Romanian state hasn’t been happy with the dividends suggested by the management of the gas carrier Transgaz.

The suggested gross dividend per share amounted to RON 21.24 (EUR 4.7), but the state, which has a stake of 58% in the company, has asked for a dividend of RON 27.61 (EUR 6.2) per share. The required dividend is 30% higher compared to the initial proposal.

Transgaz posted a net profit of over EUR 109 million in the 2015 financial year. Based on the first proposal of the Transgaz management, the dividends granted to shareholders amount to EUR 56 million. This is equivalent to a distribution rate of 51% and a yield of 7.9%.

The state wants the company to distribute some EUR 73 million, or 66% of its profit. Thus, the state will receive some EUR 42.2 million instead of EUR 32.4 million.

The Government recently said it would use the dividends from state companies to cover the salary increases in the public sector.

editor@romania-insider.com