Transelectrica wants to distribute a quarter of last year's profit as dividends

The Transelectrica board convened shareholders for the balance sheet meeting on April 29, with the proposal that from last year's profit of 585.9 million lei, the amount of 155.4 million lei be allocated as dividends, according to the electricity transporter's report published yesterday on the Bucharest Stock Exchange (BVB) website.

This is an allocation of about a quarter of the 2024 result, which represents a unit dividend of 2.12 lei, equivalent to a net yield of 4.5% compared to the company's share price yesterday, at mid-trading session, of 43.5 lei. To benefit from dividends, investors must hold Transelectrica shares on June 6, with payments to be made starting June 26, if the proposal receives the green light from shareholders.

The Romanian State, through the General Secretariat of the Government, owns 58.7% of the electricity carrier, which means that the gross amount that it receives from the dividends that the company is likely to pay is 91.2 million lei.

Last week, the International Rating Agency Moody's Investors Service revised the outlook of the company's credit rating from "stable" to "negative", a change that is a direct consequence of the change in the outlook of Romania's sovereign rating by Moody's, dated March 14, 2025, according to the issuer. "Transelectrica's long-term credit rating was maintained at Baa3, and the basic credit assessment (BCA) was confirmed at ba1", the company's report also states.

For the past year, Transelectrica reported operating income from activities with permitted profit of 2.34 billion lei, 12% more than in the previous year, given that the tariffed quantity was 51.82 TWh, 3% more than in 2023, while the average transmission tariff achieved was 31.25 lei/MWh, 2% higher than in the previous year. Operating profit amounted to 531 million lei, 42% more than in 2023, while net profit of 586 million lei was 174% higher than in the previous year.

The stock market valuation of the electricity transporter amounts to about 3.2 billion lei.