Prime Transaction: "Unlike past years, hopes for special dividends from state issuers are minimal"

The state has frequently demanded special dividends from reserves from companies it controls in recent years, but the chances of that happening again this year are slim, according to an analysis report by Prime Transaction.

"Unlike in past years, hopes for special dividends or increased distribution rates from state issuers are minimal. Even though we are in an election year, the modest financial results of some and the investment plans of others mean that the potential to produce such surprises has diminished considerably," the report states.

Hidroelectrica (H2O) has not yet announced its dividend proposal, but being a state-controlled issuer it is plausible to assume a distribution rate of 90% of the profit. "Considering the history of the company and the lack of large-scale investment projects, we expect the distribution rate to be high again, and it is even possible to have a positive surprise from this point of view", say those from Prime Transaction.

The unit dividend estimated by the brokerage house amounts to 12.6796 lei, which, compared to the price of the H2O share on March 21, 127.8 lei, is equivalent to a gross return of 9.9%.

Conpet proposed a dividend of 6.5553972 lei per share, equivalent to a yield of 7.4% (compared to the share price on March 21), while the proposal of the Electrica management is 0.1178 lei per share, respectively a yield of 0.9%. Nuclearelectrica wants to give 3.71601052 lei per share, equivalent to a yield of 7.5%, and Transgaz proposed to shareholders a dividend of 0.35 lei, with a yield of 1.8%.

The management of Romgaz came before the investors with two dividend proposals. One according to O.G. no. 64/2001 which provides the amount of 1.37 billion lei, respectively a unitary dividend of 0.3561 lei, of which 0.3397 lei/share related to the result of 2023 and 0.0164 lei/share related to the carried-over result. The other is the proposal recommended by the administrative and executive management and provides for the allocation of 550 million lei, respectively a unitary dividend of 0.1425 lei, of which 0.1359 lei/share related to the result of 2023 and 0.0066 lei/share related to the carried-over result.

"In order to ensure a sustainable development of the company and a healthy level of indebtedness from a financial point of view, the administrative and executive management propose that the distribution rate of the distributable profit be 20%", it is stated in the Romgaz report, adding that the proposal takes into account the company's high level of investment.

The registration date for dividends is after the ex-date of the capital increase with free allocation that the company carries out, when usually the price is massively corrected.

OMV Petrom proposed a dividend of 0.0413 lei, equivalent to a yield of 6.3% compared to the share price on March 21, plus the intention to propose an additional dividend.