Fund asks Romanian Nuclearelectrica to pay higher dividends

Romanian investment fund Fondul Proprietatea, the minority stakeholder in Nuclearelectrica, the only producer of nuclear energy in Romania, wants the producer to distribute dividends worth RON 107.2 million (EUR 23.7 million), representing 99% of last year’s net profit. The fund has also asked Nuclearelectrica to distribute special dividends worth another RON 452 million (EUR 100 million) from the profits made in the previous years, which haven’t been distributed to shareholders. The board of directors of Nuclearelectrica had proposed dividends worth RON 99.5 million (EUR 22 million) from the net profit made in 2016. The company’s shareholders will decide on the dividend value at the end of April. Nuclearelectrica recorded a net profit of RON 108.6 million (EUR 24 million) last year, down 27% year-on-year. The company had some RON 1.5 billion (EUR 330 million) worth of cash and bank deposits at the end of December 2016. The Energy Ministry is the Nuclearelectrica’s main shareholder, holding 82.5% of its shares. Earlier this year the Government asked the state-owned companies to allocate at least 90% of their 2016 net profit as dividends. Moreover, the Government also wants some state-controlled companies to pay special dividends from their cash reserves. Thus, Fondul Proprietatea’s proposals may get a favorable vote in the general shareholders’ meeting. Fondul Proprietatea holds close to 9% of the company’s shares. Nuclearelectrica’s shares have gained almost 50% since the beginning of this year. The company currently has a market value of over EUR 470 million. editor@romania-insider.com