According to media, Petrol on Tuesday signed cooperation contracts in Russia for projects that will focus on optimization of district heating. This is in line with company’s business plan that projects its’s EBITDA from sales of energy and environmental solutions to reach EUR 28m by 2022.

According to media, on Tuesday Petrol signed cooperation contracts with Russia’s T Plus Grupa and Schneider Electric at a Slovenian-Russian business meeting held in Moscow as a part of Slovenia Prime Minister’s visit to the country. These projects are part of Petrol’s business segment energy and environmental solutions and Petrol will cooperate with the two Russian companies in energy efficiency. According to media article, Petrol will set up specialized software and provide IT support in order reduce energy use and optimize operative costs in Russian cities of Izhevsk and Yekaterinburg.

According to Petrol’s CEO Tomaž Berločnik, the two projects are worth “a few million euro” and potentially tens of million in the future. This is in line with the company’s business plan that projects Petrol to realize app. EUR 28m in 2022 in EBITDA from sales of energy and environmental solutions. In 2018 EBITDA from this segment has amounted to app. EUR 21m and it had share of 12% in total EBITDA. There is no exact detail given on the projects, but district heating systems are one of the most reliable and acceptable systems for supplying heat to end customers, in terms of the environment and costs. This could allow potentially for Petrol to become heat distributor in this geographical area where heat supply contracts are concluded with end customers. This is part of Petrol’s strategy as it was announced in Annual Report for 2018 that in 2019 Petrol plans to expand these services also to Montenegro and Russia.

To read more about Petrol’s H1 2019 results and company update from LJSE Webcast see the following link.