Romanian TeraPlast’s shares jump to new high as shareholders approve special dividends

The shares of Romanian industrial group TeraPlast (TRP) went up by 9.26% on Friday and closed at an all-time high of RON 0.92 as the company’s shareholders approved the distribution of cash dividends worth RON 0.13 per share and stock dividends (one new share for every four existing shares). The cash dividend yield is 14.1%, considering Friday’s closing price.

The total value of the dividends is RON 226,6 million (EUR 46 mln), and the size of the share capital increase will be RON 43,6 million (EUR 8.86 mln), the company said.

The distributed profit comes from the sale of TeraPlast’s Steel division to the Irish group Kingspan, which was closed in the first quarter of this year.

TeraPlast has ongoing investments of over RON 160 million (EUR 32.5 mln) in increasing by 50% its production capacity for the Installation business line, doubling the processing capacity of the rigid recycling factory, and in the new business segment of biodegradable packaging.

For 2021, the group has budgeted a turnover of RON 636,2 million and an EBITDA of RON 89,1 mln, both up over 60% compared to 2020. It is also actively studying other acquisition opportunities both in Romania and abroad as it plans to return to the RON 130 million EBITDA it had before the recent transaction within two years.

TeraPlast has been one of the most profitable investments on the Bucharest Stock Exchange this year as its shares have more than doubled year-to-date. In the last 12 months, TeraPlast’s shares have gained 290%.

The group’s capitalization is currently RON 1.6 bln (EUR 325 mln).

(Photo source: Facebook/TeraPlast)