Eltel Wins Two Major Power Transmission Contracts in Poland at a Value of Approximately EUR 26 Million

Regulatory News:

Eltel (STO:ELTEL) Networks Energetyka S.A., a Polish subsidiary of Eltel AB, has signed a power transmission contract for an overhead transmission line project with the Polish transmission grid operator, PSE S.A.. In addition, Eltel has won a turnkey contract for a substation upgrade at Czerwonak for the same customer. The total value of these contracts is approximately EUR 46 million of which Eltel’s share is approximately EUR 26 million.

The contract for the overhead transmission line is a turnkey project is to build a double circuit 400 kV line from the Pasikurowice substation to Czarna substation. The total length of the line is approximately 60 kilometres. In addition to the construction of the new line, the contract includes dismantling of an existing overhead line and modernization of the optical fibre truck between Pasikurowice and Czarna substations. Eltel is the leader of the consortium with Elfeko Gdynia Co as its partner. The total value of this contract is EUR 40 million of which Eltel’s share is approximately EUR 20 million. The project is expected to start in the first quarter of 2016 and is estimated to be delivered in the second quarter of 2021. The new line will secure power supplies to consumers in the south-western part of Poland.

The second contract is a turnkey project at Czerwonak for a reconstruction and upgrading of an existing 220/110 kV substation to a 400 kV level. The value of this contract is approximately EUR 6 million. The project is estimated to be completed in March 2017.

Axel Hjärne, CEO of Eltel comments:

"Winning of these contracts further strengthens Eltel’s position in the Polish power transmission market, both in overhead lines and substations. We are happy to continue the development of the Polish transmission system in collaboration with PSE S.A.”.

About Eltel

Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. The current number of employees is approximately 9 300. In 2014 Eltel’s net sales amounted to EUR 1 242 million. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.

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