UPDATE 1-Unipetrol slips into bigger Q3 loss than expected

13.11.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

(Adds shutdown impact, share price, comment)...

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Czech oil group Unipetrol reported a slightly bigger-than-expected third-quarter loss on Tuesday due to one-off charges related to shutdowns and asset sales.

The downstream oil company posted a 1.267 billion crown ($69.39 million) loss for July-September, slightly wider than the average forecast of a 1.209 billion loss in a Reuters survey of four analysts.

Unipetrol, controlled by Polish refiner PKN Orlen , slipped into the red after a 722 million crown net profit in the third quarter of last year, mainly because of impairment charges of 2.471 billion crowns related to selling stakes in two non-core subsidiaries, Agrobohemie and Synthesia.

An additional 1.2 billion crown loss came from a maintenance shutdown, which started in September and lasted longer than planned, into November, due to equipment failures.

"Although all necessary measures to address this inconvenience were taken immediately, the negative impact of the shutdowns on 2007 EBIT will exceed the original estimates and will go up to the level of 2.5 billion crowns," the company said in a statement. Unipetrol had originally forecast an impact of 2 billion.

The stock slid 0.9 percent to 323.50 crowns by 0950 GMT, faster than Prague's blue-chip PX index which lost 0.8 percent.

"The impact of both things (impairment and shutdown) was worse than we had expected, which is negative news in the short term," said Jakub Zidon, an analyst at Ceska Sporitelna.

"But considering these are one-off items, which should bring positive effect in the future -- raising capacity, extending the maintenance cycle -- we remain positive," he said.

Analysts at Erste Bank group, of which Sporitelna is a member, have a 'buy' rating on the stock with 367 crown target price.

Third-quarter operating profit (EBIT) reached 1.013 billion crowns, versus the average forecast of a 752 million profit.

Sales reached 22.156 billion crowns, a touch below 22.407 forecast in the Reuters poll. (Reporting by Marek Petrus, Jan Korselt and Jan Lopatka; Editing by Quentin Bryar) ($1=18.26 Czech Crown)

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Keywords: UNIPETROL RESULTS/

[PRAGUE/Reuters/Finance.cz]

Autor článku

Jan Korselt  

Články ze sekce: Zpravodajství ČTK