Brokers: investing in energy companies can yield 3-5 times more than bank interests


The top six energy companies listed on the Bucharest Stock Exchange (BVB) have important gain potential, 3-5 times more than bank interests, the stock broking firm Tradeville asserts.

The high earning potential is especially due to expected dividends, which are among the most attractive on the market, Tradeville brokers say.

As bank deposit interest keep their downtrend, and in some cases already plunged below 3 percent per year, more investors are turning to the capital market, where energy company shares are some of the most sound and tempting investment instruments.

‘For the state-owned companies in the energy industry, the main theme in the coming months is the clear prospective of dividends, as they are required by law to distribute at least 50 percent of their profits to shareholders. This will be all the more visible for those companies that recently reported profit increases for the half year, and have good perspectives for the coming quarters, too,’ says Tradeville analyst Georgiana Androne.

All six energy companies listed at BVB are included in the main index BET; five of them are state-owned, namely Romgaz (SNG), Electrica (EL), Transelectrica (TEL), Transgaz (TGN) and Nuclearelectrica (SNN). The sixth is OMV Petrom (SNP) with private majority stockholders.