UPDATE 2-Unipetrol profit doubles, beats market forecast

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By Jan Korselt

Net profit at Czech oil group Unipetrol doubled in the first quarter, beating market expectations thanks to strong demand, a mild winter and lack of shutdowns which hampered last year's results.

The company said on Tuesday net profit attributable to shareholders rose to 1.56 billion crowns ($74.8 million) from 0.79 billion a year earlier, exceeding the average forecast of 1.13 billion from six analysts polled by Reuters.

In the first quarter of last year, Unipetrol's earnings were depressed by an unplanned refinery shutdown which cost an estimated 300 million crowns. This year analysts had expected Unipetrol to profit from increased margins and good demand.

Revenue of the subsidiary of Polish refiner PKN Orlen grew 2 percent to 20.63 billion crowns, lagging the 23.80 billion forecast.

"Margins have been very stable from February, March, and we expect this to continue," Chief Executive Francois Vleugels said.

"We do not expect any huge fluctuations. Overall, we expect the following quarter to be very similar to the first quarter (in terms of operating results)," he said.

Earnings before interest and taxes (EBIT) more than doubled to 2.32 billion crowns, against the 1.58 billion estimate.

The stock rose 1.3 percent after the results to 250.5 crowns by 1000 GMT, the highest since May 18 last year and beating the Prague blue-chip PX index which was down 0.7 percent.

Unipetrol said refinery businesses swung to a 0.49 billion crown profit from a loss in the first quarter of last year.

Chemical production posted a 29 percent rise in profit to 1.78 billion crowns and retail results also improved.

"For me a positive surprise was the good refining performance," said Erste Bank analyst Tamas Pletser.

"The shares should get a lift ... we must see a clearer picture for the second half when the company will have maintenance shutdowns, but I see some potential for the stock price," he said.

The company confirmed its majority-owned refining subsidiary, Ceska Rafinerska, would shut down for eight weeks in September through October.

Smaller refinery Paramo will shut for up to three weeks in September, while chemicals unit Chemopetrol will close its ethylene unit for up to six weeks and polyolefins unit for up to four weeks at the same time. ($1=20.87 Czech Crown)

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Keywords: UNIPETROL RESULTS/

[PRAGUE/Reuters/Finance.cz]