Lietuvos Dujos Utility Jumps on Record Dividend Proposal

Lietuvos Dujos AB (LDJ1L), the Lithuanian gas utility controlled by OAO Gazprom and EON SE, climbed to the highest level in almost two years after proposing a record dividend.

The shares rose as much as 7.1 percent and traded up 5.4 percent at 0.738 euro at 10:31 a.m. in Vilnius, rising to the highest since May 2011 and valuing the company at 346 million euros ($106 million). Volume of 127,788 shares was six times the three-month daily average, according to data compiled by Bloomberg.

Management proposed to pay out 62.8 million euros, or 0.134 euro a share, the company said in a regulatory statement yesterday. Shareholders are scheduled to vote on the proposal on April 25. Last year it paid a dividend of 0.044 euro a share. Its profit was 22 million euros in 2012.

Lietuvos Dujos shares have surged 26 percent since March 7, when the company said it plans to transfer its transmission business to AB Amber Grid, a new company that will apply for permission to trade its shares on the stock exchange in Vilnius.

Lithuania is splitting ownership of gas sales and transmission activities as part of a European Union drive to force dominant energy companies to improve access for competitors.

Russia’s Gazprom owns 39 percent of Lietuvos Dujos, while EON of Germany owns 37 percent, according to data compiled by Bloomberg. Lithuania’s Energy Ministry owns 18 percent.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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