RO construction materials producer TeraPlast wants to pay dividends at a 6.2% yield

TeraPlast, one of the leading producers of construction materials in Romania, wants to distribute a gross dividend of RON 0.026 per share for the nine months ended on September 30, 2020.

This will result in a gross dividend yield of 6.2%, considering the current share price of RON 0.431.

The total value of the dividends is RON 45.3 million (EUR 8.9 mln). Shareholders will discuss the dividend proposal in the November 27 general meeting.

The payment of dividends should take place on December 24, 2020. TeraPlast Group reported a 46% increase in EBITDA in the first nine months of this year compared to the same period of 2019, to RON 99 mln (EUR 20.4 mln). The group’s turnover went up 14% year-on-year, to RON 816 mln (EUR 168 mln).

Romanian entrepreneur Dorel Goia owns 46.8% of TeraPlast Bistrita, local pension funds managed by NN Pensii hold 11%, and investment fund KJK Balkan Holding holds a 10% stake.

The company has a market capitalization of RON 744 mln (EUR 150 mln), and the price of its shares rose by 95% since the beginning of the year.

Shares worth RON 110 mln (EUR 22 mln) changed hands in the year-to-date period, making TeraPlast one of the most liquid small-caps on the Bucharest Stock Exchange.

(Photo courtesy of the company)