RO Govt. avoids squeezing cash out of state energy companies

The representatives of the Romanian Government voted against the distribution of special dividends from the cash reserves of hydropower company Hidroelectrica and confirmed that they would do the same in the case of nuclear power producer Nuclarelectrica, Bursa reported.

Investment fund Fondul Proprietatea, a significant minority shareholder in each of the two state-controlled companies, holding 20% of Hidroelectrica and 9% of Nuclearelectrica), had previously asked Hidroelectrica to distribute additional dividends worth RON 1.25 bln (EIR 260 mln) from the reserves.

In Nuclearelectrica’s case, the fund asked for RON 512 mln (EUR 106 mln) worth of extra dividends.

The two companies have already paid dividends from the 2018 profits, in amount of RON 713 mln (Hidroelectrica) and RON 380 mln (Nuclearelectrica).

The managers of the two energy companies argued against the request filed by Fondul, explaining that their companies need resources for important investment projects.

The Government would have received about RON 1.4 bln (EUR 290 mln) from the two companies if it voted for the additional dividend distributions.

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