The Ministry of Energy, who holds 80% shares in Hidroelectrica, decided to pay only 90% of the 2017 net profit as dividends, declining the proposal to distribute the whole net profit, plus RON1B from reserves.
The decision was made on May 17, during the general meeting of the shareholders.
According the sources familiar with the matter, the proposal to pay 100% of the net profit plus RON 1 billion, came from Fondul Proprietatea, which holds 20% of Hidroelectrica’s shares.
Hidroelectrica is Romania’s largest energy producer, accounting for around 35% of the country’s total power production. The company registered RON1.36B net profit in 2017 and is expecting a net profit of RON935M in 2018.
Fondul Proprietatea is controlled by The Bank of New York Mellon, who owns 30.7% of the fund’s shares.