News Parkiet

Banking

Polish banks see tougher future ahead

Earnings at major Polish banks may soon slow down on narrowing spread between interest rates and loans, despite strong first-half earnings. Their revenues were largely flat, however, one analyst notes and most of the earnings growth came from reversal of bad debt provisions and successful cost-cutting measures. The growth of loan portfolios was limited to borrowing by individual clients, who took out more home loans and used their credit cards a bit more often.

Building materials

Barlinek to go public next month

Floorboard and parquet flooring manufacturer Barlinek SA said it plans to sell shares to the public in about three weeks. The company, now controlled by Polish businessman Michał Sołowow, plans to sell about 8 million new shares. Mr. Sołowow will sell an additional 14 million shares. Barlinek said it plans to raise approximately 53 million from the IPO, indicating that the shares will be priced at around 6.6 zloty each. If the offering sells, based on last year?s earnings of PLN 26 million ($8 million), Barlinek would have a price-earnings ratio of around 22.

Petrochemicals

PKN Orlen quarterly up

PKN Orlen oil refinery said its second quarter profit was up 27 percent to PLN 698 million zloty despite one-time charges totaling PLN 376 million. Płock-based company said the provisions were related to previous contracts to sell certain assets of Orlen?s most recent acquisition, Unipetrol from the Czech Republic. Orlen would have reported a record quarterly profit without those charges, one analyst said commenting on the results.

Six-month sales at the company, excluding Unipetrol and its subsidiaries, totaled 10.15 billion zloty, up 18 percent from last year.