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PannErgy to stoke growth with over HUF 9 bln in liquid assets

Geothermal energy company PannErgy could have between HUF 9.1 billion and HUF 9.9 billion of liquid assets to support growth in the coming years, chairman Balázs Bokorovics told shareholders at an extraordinary general meeting on Friday.

These liquid assets work out to HUF 430-470 a share, Bokorovics said, presenting the company's five-year strategy. The company has an additional HUF 800 million in illiquid assets, he added.

PannErgy expects to grow significantly in the future and it plans to continue following a conservative investment path, on which the first step was the sale of plastics unit Pannunion, he said.

Bokorovics laid out two scenarios for growth, one organic and one dynamic, depending on project financing. Under the organic scenario, PannErgy would add another seven projects to its portfolio. Under the dynamic one, it would add ten.

PannErgy is expanding in Romania and Serbia, making contracts with municipalities mainly for district heating.

PannErgy plans to borrow €110-120 million in the period until 2017. It expects to get €45-50 million in European Union support in the period until 2016.

PannErgy, formerly called Pannonplast, announced plans in 2007 to change its profile to focus on geothermal energy projects. It spun off its plastic businesses into Pannunion, which it listed on the Budapest Stock Exchange.