The company has a distributable net profit of RON102 million, of which it wanted RON52 million paid to investors as dividends. The Romanian government rejected the plan in the General Meeting of Shareholders on Thursday (April 27), asking for 90% of the profit instead.
“The National Power Grid Company Transelectrica informs the shareholders and the investing public that it maintains its position by applying a ‘distribution rate’ of 50% calculated at distributable profit related to the financial year 2022.”
To support its argument, the company presented its investment plans for the coming years – RON465 million in 2023, RON780 million in 2024 and RON713 million in 2025.
Were it to comply with the request of the government via the Finance Ministry and use 90% of the distributable profit for dividends, the cash available would be negative, the company said, minus RON7 million in 2023, minus $225 million in 2024 and minus $290 million in 2025. With a distribution rate of only 50% this year, the cash would be positive this year, RON74 million, minus RON144 million in 2024 and minus RON209 million in 2025.
“Lack of cash will create vulnerabilities and may jeopardize the Company’s financial security. The decrease in liquidity will attract signals from rating agencies, market analysts and financiers with whom CNTEE “Transelectrica” S.A. has credit agreements in progress or with financiers with whom the Company intends to attract additional credits for the investment obligations already assumed.”
(English version by Loredana Fratila-Cristescu)