Romanian power producer Nuclearelectrica turns down fund’s request for extra dividends

The management of Romanian nuclear power producer Nuclearelectrica, which operates the country’s sole nuclear plant - Cernavoda, rejected the request expressed by Fondul Proprietatea (FP, which holds a 7.5% stake) for disbursing supplementary dividends to shareholders, local Economica.net reported.

In this case, however, as in the case of Hidroelectrica - where FP asked for supplementary dividends as well - the final word belongs to the Economy Ministry, which holds the majority stakes in these companies and is under pressure to generate cash for avoiding excessive fiscal slippage. Minister Virgil Popescu said that a decision in both cases would be taken after discussions with the management of the two energy companies.

FP has asked Nuclearelectrica to pay RON 500 million (EUR 105 mln) worth of extra dividends and called for a shareholder meeting with this topic on the agenda. Nuclearelectrica management explained that it needs RON 1.1 bln (EUR 231 mln) per year during 2019-2026 for refurbishing one of its two nuclear reactors and it holds RON 1.6 bln (EUR 336 mln) in its reserves account. The company should finance at least 45% of the annual RON 1.1 bln investment programme from own resources.

From Hidroelectrica, where it holds a 20% stake, FP asked RON 1.25 bln (EUR 260 mln) worth of extra dividends.

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