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RFV unit wins contract adding HUF 1.2 billion to parent company's yearly EBIDTA

Hungarian energy-efficiency company RFV's 100%-owned unit RFV Mures Energy SA has won a contract to update and operate the district-heating system in Targu Mures, Romania. Calculating with 15,000 retail consumers, the project will add an annual HUF 1.2 billion to the parent company's EBIDTA, RFV reported on Thursday.

The district-heating system serves around 12,000 retail and 32 institutional consumers at present, down from  a respective 31,000 and 40 earlier. RFV expects former consumers to reconnect to the system as it improves.

RFV said RVF Mures Energy would spend HUF 6.5 billion on the renovation and update project, which is expected to be completed in 2015, of which HUF 3.8 billion will be spent in the first twelve months. RFV will provide district-heating in Targu Mures for a period of 25 years under the contract. The concession fee will be EUR 130,000 annually.

The company will finance 70% of the project through loans and 30% through its own resources and the issue of corporate bonds. Signing of the contract is expected to take another 30 days, RFV. The project is the third won by RFV in Romania.

The Budapest Stock Exchange resumed trading of RFV shares on 1:30 p.m. on Thursday after suspending trade on the shares on Wednesday afternoon pending the announcement of the contract. RFV trades in the A-category at the Budapest Stock Exchange. (HUF 100 = EUR 0.3487) (MTI Econews)