SIF Moldova (SIF2), a shareholder with investments of 267 million lei in Romgaz, considers that the dividend of 1.61 lei per share that the state company will propose to the shareholders on April 22, 2020 is one “unjustifiably small compared to the money available and compared to the estimates regarding the operational cash-flows of 2020 and outside the company practice approved by the shareholders in previous years.”

At the current trading prices of a SNG stock, the yield of this dividend is 5.5%, according to zf.ro.

“Therefore, considering that we are in the assent of your shareholders, who have invested in the Romgaz shares taking into account the company’s prospects and the history of dividends, we ask you to review the proposal for dividends for 2019, so that it is at least at the level of the previous year,” is shown in a note of SIF Moldova, a shareholder with almost 2% in Romgaz. Thus, as SIF Moldova does not own at least 5% of the company’s share capital, it cannot propose to the shareholders of Romgaz another variant of the dividend.

In response to SIF Moldova, Romgaz says it will keep the proposal submitted to the shareholders, of 1.61 lei per share.

“This proposal is based on the legislation that regulates this aspect. We specify that although some investment projects may be delayed, this does not mean canceling them. In addition, given the uncertainty that governs the business, economic, fiscal environment as a result of the current context generated by Covid-19, the executive management is of the opinion that the proposed level of the dividend is a prudent one that will provide the necessary funds to carry out in good conditions the company’s operations in the future,” Romgaz says.