The Romanian state to collect dividends of RON 728mln from Romgaz

Romgaz Medias, the largest local gas producer, decided to grant a gross dividend for last year of RON 2.7/share, the total amount of dividends granted exceeding RON 1bn. Dividend yield for Romgaz shares will be 10% related to yesterday’s closing price of RON 27.1/share. On average, a bank deposit for 2015 had an interest of 1.3%, which means that Romgaz shares are by 7.7 times more profitable than gains by placing cash with banks. The largest beneficiary of the profit obtained by Romgaz is the Romanian state, which through the Ministry of Energy owns a 70% stake in the gas producer and will thus collect about RON 730mln. Another important shareholder of Romgaz is Fondul Proprietatea, which, with a stake of 5.8%, will collect about RON 60mln. Romgaz ended 2015 with a net profit of RON 1.18bn, down 16% compared to the result reported for the previous year, which was a historically high. Decrease in Romgaz profit took place in the context in which higher temperatures during winter and lower demand from the chemical industry reduced gas supplies. Company’s turnover plunged 9.8%, to RON 4.05bn. The decrease in turnover was caused by the reduction by 10% in gas amounts supplied, to a total of 5.125bcm, and by the reduction in consumption demand, in conditions of higher average supply price.