Romanian state-owned gas producer Romgaz proposes 5.4% dividend yield

Romanian state-controlled gas producer Romgaz (SNG) proposes a gross dividend per share of RON 1.79 from last year’s net profit and retained earnings from previous years.

The estimated dividend yield is 5.4%, based on the closing price of RON 32.75 per share on Tuesday, March 23. Romgaz’s shares are up 16.5% since the beginning of this year.

The company wants to pay total dividends worth RON 690 mln (EUR 141 mln), of which RON 628 mln from the 2020 net profit (RON 1.25 bln in total) and RON 61.7 mln from retained earnings. The bulk of the dividends will go to the state, which owns 70% of the company through the Energy Ministry.

The dividend proposed by Romgaz is slightly higher than last year (RON 1.61 per share), but significantly lower than in previous years. For example, in 2019, the company paid a dividend of RON 4.17 per share.

Starting last year, the Government has been less demanding with state-controlled companies, which have reduced their dividend payout ratios.

Another example is gas transporter Transgaz (TGN), which plans to distribute only 55% of its 2020 net profit to the shareholders (RON 96 mln out of RON 175 mln). The dividend per share at Transgaz is RON 8.14, 48% lower compared to last year (RON 15.47). The dividend yield in this case is 2.8%.

Transgaz’s shares went down 1.7% on Tuesday after the company announced the dividend proposal.

(Photo source: Facebook/Romgaz)