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Romania's Transgaz plans to invest 1.6 bln euro in 10 years

Romania's Transgaz plans to invest 1.6 bln euro in 10 years Transgaz. Author ( License: all rights reserved.

BUCHAREST (Romania), February 7 (SeeNews) - Romanian gas transmission company Transgaz [BSE:TGN] plans to invest 1.62 billion euro ($2 billion euro) in various projects in the next 10 years.

Once completed, the projects will make Transgaz one of the top four energy companies in Europe, Transgaz said in a filing to the Bucharest Stock Exchange (BVB) on Tuesday summing up the company's performance ten years after its IPO.

"Transgaz is currently involved in seven major gas pipeline projects and two other strategic projects that will make us turn into a multinational company at the European level," Transgaz's general manager Ion Sterian said.

According to the president of the National Regulatory Authority for Energy (ANRE), these projects can make Romania a centre of energy stability in the region.

"The BRUA project and the interconnection with the Republic of Moldova can be a guarantee that Romania is a pole of stability in the energy field and a provider of economic and social development. I want the Black Sea gas to be used mainly in Romania, as it represents an opportunity for development and it brings added value as it is also consumed by industrial clients," ANRE president Dumitru Chirita said.

The value of dividends paid to Transgaz shareholders exceeded 545 million lei in the financial year 2016, while the gross dividend per share reached 46.33 lei which is almost five times higher than in 2007, the year before the listing of the company on the main market of the BVB.

"If we also consider the dividends, an investor who bought Transgaz shares in 2008, when the company went public, would have had today a return of over 140%. If the investors had chosen to reinvest the dividends gained from TGN shares, the return would have increased by about 290%," BVB CEO Adrian Tanase said.

In January, Transgaz's shareholders endorsed a proposal to join forces with Spain's Regasificadora del Noroeste in order to take part in the second stage of a process for the procurement of a 66% stake in Greek gas transport operator DESFA.

Transgaz's shares traded 0.75% higher at 401 lei on the BVB at 1002 CET on Wednesday.

($=0.8063 euro)