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BUCHAREST (Romania), December 4 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said it has approved the distribution of 12.5 million lei ($3.05 million/ 2.7 million euro) of dividend from TeraSteel, its subsidiary for thermal insulation panels and galvanized structural profiles.
The decision was made on the basis of "remarkable financial results recorded during the first nine months of the current year" by TeraSteel , the group said in a statement on Monday.
The majority shareholder of TeraSteel is TeraPlast, with 97.95% equity participation.
TeraSteel has distributed 21 million lei in dividend in 2018.
“Considering the new regulations, TeraPlast can register this amount as additional profit and will be able to distribute it to its shareholders. Thus, TeraPlast's shareholders will be able to benefit from the profit achieved by the Group’s subsidiaries during the tax year 2018, following the General Meeting to be held on April 2019," Dorel Goia, chairman of TeraPlast board of directors, said in the statement.
"Although it has not developed a formal dividend policy yet, TeraPlast has been offering a stable dividend scheme ever since 2016,” Goia added.
TeraSteel Romania's turnover grew by 43% in the first nine months of the year. The entire steel division of the group, composed of TeraSteel Serbia, TeraSteel Romania and Depaco, has tripled its revenue year-on-year in January-September to 350 million lei. Moreover, the division’s EBITDA has doubled on the year to RON 31.7 million.
Based on the constant investment, product diversification and external market sales that are currently over 40% of total production, the upward trend of the steel division is going to continue in the following period, TeraPlast estimated.
In November, TeraPlast received government financing in the amount of 6.8 million euro ($7.6 million) for three investment projects worth a total of 15 million euro.
TeraPlast Group's consolidated net profit rose by 40% on the year to 22.2 million lei in the first nine months of 2018.
The good results were possible due to steady organic growth of all business lines and due to the group's strategy which focused on developing the distribution network, increasing its presence on European markets as well as developing new products, TeraPlast said.
In January, Teraplast took control of local roof tiles producer Depaco by increasing its stake in the company to 67% and said it targeted 100% ownership. In October last year, TeraPlast opened its TeraSteel sandwich panels factory in Serbia, and received the approval of Romania's anti-trust regulator for the takeover of plastic products manufacturer Politub.
Teraplast shares traded 2.29% higher at 0.3570 lei on the BVB by 1038 CET on Tuesday.
(1 euro=4.6566 lei)