Enel’s Romanian subsidiaries pay EUR 625 mln dividends

The three regional electricity distribution companies controlled by Italian utilities group Enel in Romania decided to distribute nearly RON 3 bln (EUR 625 mln) as extraordinary dividends, out of which the Romanian state and investment fund Fondul Proprietatea will receive over EUR 100 mln each, Economica.net reported.

Enel said the decision reflects the “new regulations” and the companies’ robust financial positions.

Enel is currently seeking a partner to sell part of its stakes in the three Romanian regional electricity distribution firms. The three companies privatised in 2005 (Electrica Dobrogea and Electrica Banat) and 2007 (Electrica Muntenia), are among the most profitable in Romania, but have never paid dividends to their shareholders. E-Distributie Muntenia, for example, recorded total profits of over RON 1.8 bln from 2008 until 2017. E-Distributie Banat made net profits of almost RON 1.5 bln in the same period while E-Distributie Dobrogea earned over RON 0.9 bln.

The Romanian state, a minority owner in each of the three companies, went to court against the Italian group, in 2016, to recover the dividends related to the profits obtained by the three companies after privatization but failed to get a firm ruling in the Paris arbitrage court (ICC).

The dividends were paid upon negotiations among parties, acting economy and energy minister Virgil Popescu announced. SAPE, the state holding firm that owns minority stakes in the three companies, has already cashed in most of the dividends (RON 502 mln in total), with the rest to be paid by August.

Fondul Proprietatea also received RON 523 mln in dividends related to its stakes in the three companies controlled by Enel.

(Photo source: the company)