Romania’s Energy Ministry proposed that gas transporter Transgaz distributes dividends worth RON 534 million (EUR 115 million), representing over 90% of last year’s net profit.

The company’s management proposed earlier this year that it distributes only half of last year’s net profit as dividends, namely close to RON 300 million.

Transgaz suggested that complying with the Government’s request to distribute 90% of its net profit would leave the company insufficient resources to carry out its investment plan for this year, which includes the strategic BRUA gas pipeline. The company recently started work on three gas compressor stations that are part of the BRUA project.

The shareholders will vote on the two dividend proposals on April 26.

The Energy Ministry holds 58.5% of the company’s shares. It will likely vote for the higher dividend proposal, which would bring it EUR 67 million worth of dividends, compared to EUR 48 million at a 50% payout rate. The dividend per share asked by the state is RON 45.38, representing 10.8% of the current share price.

editor@romania-insider.com