The Romanian state, through the Energy Ministry, as a majority shareholder – proposes that Transgaz should grant a gross dividend of RON45.38 per share for the financial year 2017, after the company’s Executive Board had proposed in March 2018 the granting of a gross dividend of RON25.22 per share, as per a report published Tuesday on the website of the Bucharest Stock Exchange.
„According to the laws on reporting to the capital market institutions, SNTGN TRANSGAZ SA notifies all those concerned that the major shareholder, the Romanian state by the Ministry of Economy, sent the draft proposal for the article 5 and article 8 of the draft Resolution no 3, published on the company’s website, as follows:
“Article 5: Approves/does not approve the gross dividend per share in the amount of 45.38 lei/share for the financial year 2017, the date of 16 July 2018 as a deadline for the dividend pay-out initiation”
“Article 8: Approves/does not approve the distribution of the net profit for the financial year 2017, as follows: 1. the distribution of the net profit as follows: dividends to the shareholders (RON534,297,040.72), net profit for the establishment of own financing sources (RON47,764,002.28) 2. employees’ participation in the profit according to article 141 of the applicable Collective Labour Contract concluded by SNTGN TRANSGAZ SA, in the amount of RON11,579,208.00.”
On March 22, Transgaz proposed the payment of a gross dividend of RON25.22 per share, totalling RON296.936 million, from its 2017 net profit of RON582.061 million.
Early February 2018, the Romanian government decided to mandate the representatives of the state within the General Assemblies of Shareholders and the Executive Boards to decide on the distribution of a quota of at least 90% of the 2017 net profit under the form of dividends or transfers to the state budget.
In the case of Transgaz, the profit quota distributed to dividends nears 50%. The company said in a statement that applying a 90% quota makes it impossible to fund strategic development projects.
The Romanian state owns 58.5% of Transgaz shares.