UPDATE 1-Unipetrol 2006 profit beats forecast, shares gain

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PRAGUE, March 1 (Reuters) - Czech oil group Unipetrol posted a smaller-than-expected drop in 2006 net profit on Thursday, as the company beat market expectations with 17 percent year-on-year growth in revenue.

Unipetrol, 63 percent-owned by Polish refiner PKN Orlen , said that excluding minority interests, net profit reached 1.62 billion crowns ($75.8 million), less than half the 3.43 billion crowns for 2005.

Six analysts surveyed by Reuters gave an average profit estimate of 1.52 billion crowns for Unipetrol, which is involved in crude oil refining, petrochemicals and fuel distribution.

Revenue rose to 94.59 billion crowns, versus the average consensus forecast of 92.37 billion crowns.

But earnings before interest and tax (EBIT) shrunk by a third to 3.57 billion crowns, lagging the 4.23 billion estimate.

Analysts said last year's weak profitability -- due to various one-off items -- had been discounted by the share price before the results were released.

Unipetrol shares gained 2 percent to 225.20 crowns by 0845 GMT, outperforming a 1.6 percent rise in the Prague blue-chip PX index .

Last year, Unipetrol booked impairment charges worth a total of 2.1 billion crowns on the sale of its subsidiaries Kaucuk and Spolana, as well as an extra 324 million crown tax charge, which hurt the bottom line.

Its profits also fell due to a 17.6 million euro ($23.3 million) fine levied by the European Commission last year on Kaucuk. Refinery shutdowns cost the company an additional 400 million crowns, Unipetrol already said before the results.