Transgaz Calls New Shareholder Meeting, Proposes Same Dividend

05.02.2011 By Andrei Circhelan

The managing board of state-owned gas transporter Transgaz (TGN.RO) called a shareholder meeting for June 9, proposing the same value of dividend rejected Friday by the Economy Ministry, which holds majority.

The ministry asked the company's managing board to reanalyze several aspects of its report for 2010 and reconsider the dividend it proposes, citing a possible rating downgrade by Standard & Poor's.

"Transgaz has been asked to reanalyze paying out dividends from 2010 profit, considering the resources necessary to finance its projects, to which Romania has already committed," Transgaz said Friday in a statement.

The board decided to call a new shareholder meeting, on June 9, using the same agenda as the one for Friday's meeting.

In January, Standard & Poor's said in a report that Transgaz's rating could be downgraded if the government reduced its support to the Nabucco pipeline project. In addition, paying dividends equal to 90% of last year's profit could endanger Transgaz's projects, the ratings agency said.

S&P has affirmed Transgaz's ratings at BB+ for foreign currency loans and at BBB- for loans in Romanian lei, with stable outlooks.

Transgaz had proposed a gross dividend of 28.77 lei (EUR7.04) a share from the 2010 profit, more than double on the year. Total dividend would have amounted to RON338.7 million (EUR83.3 million).

The company reported a net profit of RON376.3 million in 2010.

Transgaz was listed on the Bucharest Stock Exchange at the beginning of 2008. The Economy Ministry owns a 73.5% stake, investment fund Fondul Proprietatea has almost 15% of its shares and the rest is distributed among minority shareholders.

Romanian authorities recently announced plans to list an additional 15% stake in Bucharest by year-end. (EUR1=RON4.086)