Romania: Without Nabucco, Better Chances for Higher Pay-Out for Transgaz

BusinessEconomy ♦ Published: August 20, 2013; 18:27 ♦ (Vindobona)

This year's tariffs revisions are better suited to protect the company for the drop in gas consumption, thus RBI sees lower risk of unrealized revenues.

Romania: Without Nabucco, Better Chances for Higher Pay-Out for Transgaz / Picture: © Vindobona.org

In the medium term, RBI expects transit revenues would contribute with ca. RON 180 mn annually to the company' EBIT. Based on the 2013 budget RBI kept the pay-out at 52% in 2013. Going forward, with Nabucco no longer in the equation, RBI believes an 85% pay-out would be easily attainable. RBI reinitiate coverage with a Buy recommendation and a 12-month target price of RON…