Romanian Nuclearelectrica says dividend will affect investment plans

The state-controlled nuclear power generator Nuclearelectrica says that granting additional dividend this year will affect its investment plan and severely jeopardize upgrade potential of the first nuclear reactor in the Cernavoda plant, according to a company’s release. Such demands from shareholders might lead to hindering the company’s financing resources and affect its long-term development. In addition, failing to upgrade the first nuclear reactor will increase risks on Romania’s energy security and stability, the release also said.

Asking for additional dividends from profitable energy companies has been a measure implemented by the state since 2017, used for covering to ease pressure on budget deficits with one-off measures. Yet, it was the minority shareholder, the Property Fund, which asked for more divided this time. The Fund called a shareholders’ meeting on Dec 19, demanding the approval of RON513m additional dividend from Nuclearelectrica’s net profit and reserves.

As recalled, the PSD-led cabinet enforced a bill that forces state-controlled companies to distribute 90% of net profits and 35% of reserves as dividend. Although the bill was initially meant to apply only in 2017, it was extended in 2018 and 2019 due to tight budgetary constraints. Nuclearelectrica increased its net profit by nearly 30% y/y to RON416m in January-September.

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