UPDATE 2-Unipetrol H1 net rises 45 pct,in line with f'cast

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By Jan Korselt

Czech oil group Unipetrol posted a 45 percent increase in first-half net profit, fuelled by favourable conditions in both the petrochemical and refining markets.

The Czech unit of Polish refiner PKN Orlen said net profit before minorities rose to 3.07 billion crowns ($149.6 million) in January-June from 2.11 billion crowns in the same period a year ago.

This puts second-quarter earnings at 1.5 billion crowns, up from 1.26 billion in the second quarter last year and exactly in line with the average estimate in a Reuters poll of six analysts.

Revenue grew 1 percent year-on-year in the first half to 45.47 billion crowns.

"(The results) are in line with the revised consensus and somewhat better that I was expecting," said Bram Buring, analyst at Wood & Company.

"I would consider these to be a very nice set of results, driven primarily by the petrochemical business," he added.

Unipetrol Chief Executive Francois Vleugels said he expected full-year operating profit (EBIT) to reach 6.6 billion crowns, thanks to a fresh recovery in refinery margins.

This would come despite a number of modernisation shutdowns planned in the autumn this year, which Unipetrol said would reduce earnings before interest, tax, depreciation and amortisation (EBITDA) by 2 billion crowns.

"If you had asked me two weeks ago, I would be much more pessimistic," Vleugels told reporters.

"But thanks to the recovery in refinery margins... we still believe we can achieve that number despite the shutdowns and the exclusion of (sold unit) Kaucuk ," he said.

Oil refiners in Europe and the U.S. benefited from strong crude processing margins in the second quarter as refinery outages in the U.S. reduced global capacity.

Unipetrol's parent PKN reported a sharper-than-expected 28 percent rise in second-quarter profits, and the integrated oil majors reported bumper earnings at their refining divisions in the quarter.

Unipetrol shares rose 2.7 percent by 0900 GMT to 284.6 crowns, outpacing the blue-chip PX index which gained 1.2 percent.

The stock has been trading at more than 9 times next year's projected earnings, around one percentage point below parent PKN. Most Euro refiners trade within a range of 9-13 times 2008 earnings.

For story on PKN Orlen's results, click on [ID:nL12462052]

(Additional reporting by Marek Petrus) ($1=20.52 Czech Crown)

Keywords: UNIPETROL RESULTS/

[PRAGUE/Reuters/Finance.cz]