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RFV says profit could well exceed forecast

Hungarian energy saving company RFV on Friday said that this year's profit could significantly exceed expectations and could favorably affect further growth in 2010.

RFV expects net profit of HUF 810 million on sales of HUF 4.3 billion this year. The company projects Q1-Q3 net profit of HUF 450 million on sales of HUF 2.3 billion. EBITDA is seen reaching HUF 860 million in Q1-Q3 and HUF 1.52 billion for the full year.

The company projects net profit of HUF 280 million for Q1 2010 and of HUF 650 million for H1 2010, while sales in the respective periods are seen reaching HUF 1.2 billion and 2.7 billion. It forecasts EBITDA of HUF 450 million in Q1 2010 and HUF 920 million in H1 2010.

According to the company's preliminary H1 report, net profit fell 43% to HUF 152 million in H1 and sales fell 18% to HUF 1.21 billion. Last year, RFV's net profit rose 67% to HUF 474 million and revenue rose 61% to HUF 3.02 billion.

RFV said Friday that a share issue closed in July provided the company with the fresh capital which helped it to return to the growth path followed prior the financial crisis.

At the end of June RFV chairman-CEO Csaba Soós said the company would use the HUF 1.1 billion proceeds of the issue for heating modernization projects this year.

RFV hopes that its new Romanian acquisition will expand quickly next year, will help as a reference to get new projects, and will become an engine for the group's growth, the announcement said.

RFV announced earlier this week that it acquired a 100% stake in Termoenergy, the district heating company of the Romanian city of Gheorgheni. RFV did not reveal the transaction price. The company said in August that it will start a €8.4 million renovation of the town's district heating infrastructure through the newly acquired unit, and a 25-year contract to be signed will generate an annual HUF 700 million-800 million for RFV.

RFV also said its plan to expand in several countries of the region will require a new organizational structure, to be established by a new CEO, with the existing CEO and chairman focusing on strategic issues. (MTI-ECONEWS)