UPDATE 2-Unipetrol 2006 profit beats forecast, shares gain

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By Jan Korselt

PRAGUE, March 1 (Reuters) - Czech oil group Unipetrol posted a smaller-than-expected drop in net profit and stronger-than-expected revenue growth for 2006 on Thursday, boosting its share price.

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 jumped 17 percent year-on-year to 94.59 billion crowns, versus the average consensus forecast of 92.37 billion.

Unipetrol shares gained 4 percent to 230 crowns by 1030 GMT, outperforming all but one blue chip stocks on the Prague bourse. The blue-chip PX index rose 1.4 percent.

"I think that the market had already calculated very bad performance for the fouth quarter because the stock price went down in the past couple days," said Peter Tordai, analyst at KBC Securities in Budapest.

"Because it is mostly due to one offs, I am not sure if we should be so negative on the company," he added.

But earnings before interest and tax (EBIT) disappointed many analysts, shrinking by a third to 3.57 billion crowns, lagging the 4.23 billion estimate given by the Reuters survey.

The company holds a news conference at 1100 GMT.

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 333 million crown charge booked against a fine levied by the European Commission last year on Kaucuk. Refinery shutdowns cost the company another 400 million crowns, Unipetrol already said before the results.