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PannErgy meets targets in 2011

Geothermal energy company PannErgy met its business targets in 2011 and its projects are on schedule, CEO Denes Gyimothy told journalists on Wednesday.

PannErgy’s 2011 business plans showed the company breaking even on consolidated revenue of HUF 12.6bn and EBITDA of HUF 1.6bn, Mr Gyimothy said. Net financial profits lifted PannErgy’s bottom line over HUF 1bn in 2011, he added.

The sale of PanErgy’s plastics unit PannUnion generated revenue of more than HUF 5bn, which the company is using to finance geothermal energy projects.

PannErgy will call down a €100m credit line from the European Investment Bank (EIB) for the first time this year, borrowing €10m, Mr Gyimothy said. About 70% of the company’s project financing is denominated in euro, he added.

This year, with PannUnion sold, PannErgy targets revenue of HUF 900m, he said. He did not reveal a profit target.

Applications for HUF 10bn-20bn in grant money from the Environmental Protection Operative Programme can be submitted in April, chairman Balazs Bokorovics said. This amount would be enough for ongoing projects as well as those under preparation, he added.

He said the company also hopes to get HUF 5bn-6bn in support for new projects.

PannErgy generally covers 20% of the cost of its geothermal energy projects from its own resources. Between 30% and 40% comes from various grants and the rest comes from loans.

PannErgy chairman Balazs Bokorovics said he did not expect Hungary’s EU Cohesion Fund payments to be suspended, but he said such an action would not affect ongoing projects anyway.