UPDATE 4-Unipetrol posts weaker Q3 net, one-off charge

(updates share price, adds outlook)

By Marek Petrus

PRAGUE, Nov 9 (Reuters) - Czech oil refiner Unipetrol <UNPEsp.PR> posted a less than expected 54-percent rise in third-quarter net profits on Thursday, but buoyant investor sentiment towards oil companies helped support its share price.

Net profit attributable to shareholders rose to 0.85 billion crowns ($38.79 million) in July-September from 0.55 billion in the year-ago period, lagging the 1.23 billion average forecast in a Reuters survey of seven analysts.

Operating profit was up 63 percent to 1.68 billion crowns, undershooting the 1.79 billion forecast. Unipetrol is involved in crude oil refining, petrochemicals and fuels distribution.

"The company took an impairment charge on assets for sale, which lowered the net income and operating income growth," said Lukas Dufek, analyst at Komercni Banka in Prague. "Results show solid development of the company."

Unipetrol, majority owned by Poland's PKN Orlen <PKNA.WA>, had an overall net profit of 2.91 billion crowns in the nine months to end-September, up from 2.29 billion a year earlier.

A rally in PKN shares following an unexpected rise in the Polish group's third-quarter net profit sparked a buying wave across shares in oil companies, helping draw investors into Unipetrol's stock despite the lower headline profit figure.

Unipetrol rose 0.81 percent to 210.8 crowns, just ahead of a 0.57 percent gain in the Prague blue-chip PX index <.PX>.

ONE-OFF DIVESTMENT LOSS

The company suffered a bigger than expected one-off loss of 387.2 million crowns on the sale of the Spolana chemicals plant.

The divestment was completed in October, which previously led analysts not to expect the charge to enter the books until the fourth quarter.

Financial director Petr Sosik told journalists the firm would also be hit by a 324 million crown tax charge related to investment incentives, but that 2006 full year EBIT and net profit should be near the previous year when the one-off effects are excluded.

"All signals indicate that in a standard environment, the company should reach, both at the level of EBIT and net profit, close to those levels of last year and also the (management) plan for 2006," he said.

Unipetrol posted a 3.46 billion crown net profit in 2005 on an operational profit (EBIT) of 5.27 billion.

Bram Buring, equity analyst at Wood & Company, said net of the one-offs, the results appeared as strong as forecast.

He said operating profit from petrochemicals rose in line with his estimate by 90 percent and the refining business showed a surprisingly strong result.

Analysts generally expected an improvement in Unipetrol's profitability, as petrochemical margins widened following a 20 percent decline in crude oil prices from record highs in August.

Unipetrol shares are trading at about 11 times next year's projected earnings, above a prospective price to earnings multiple of eight on shares in parent PKN, according to Reuters Estimates.

For a separate story on PKN third-quarter earnings, please click inside square brackets: [ID:nL086791]

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((Editing by Paul Bolding;

Reuters Messaging: marek.petrus.reuters.com@reuters.net;

e-mail: prague.newsroom@reuters.com/marek.petrus@reuters.com;

tel: +420 602 317 651))

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($1=21.91 Czech Crown)

Keywords: ENERGY CZECH UNIPETROL