News Parkiet

Privatization

PGNiG unlikely list on the WSE next month

Government natural gas monopoly Polish Oil and Gas Company (PGNiG) is unlikely to list its shares on the Warsaw bourse as scheduled sometime next month. Instead, the country?s Treasury Ministry may decide to sell a small stake in the company, possibly just one share, in a move that would trigger employee stock ownership program and the transfer of a 15 percent stake in the company to employees. PGNiG said initially it planned to raise PLN 1.5 billion selling new shares along with privatization IPO.

Power industry

Elektrim drops after losing ZE PAK, 2Q loss

Shares of Elektrim power and telecoms group plunged nearly 20 percent at the opening on Friday on news of a huge second-quarter loss accompanied by the seizure of key asset by its main shareholder. The stock recovered somewhat in mid-afternoon trading, closing at 5.2 zloty, down 9.6 percent.

Warsaw-based Elektrim said Thursday evening it has lost 575 million zloty ($169 million) in the second quarter alone. Although the company didn?t say exactly how it managed to lose so much money, it did explain the loss was related to the stake in ZE PAK power plant controlled by Elektrim. The day before Elektrim admitted that Polish businessman Zygmunt Solorz, himself a major shareholder of the company, took over a unit that owned most of Elektrim?s 42 percent stake in ZE PAK. Separately, trade unions at the power plant have threatened they?ll go on strike if PAK goes ahead with the plan to sell off two non-core units.

Building materials

Decora posts record earnings

Skirting boards manufacturer Decora S.A. reported earlier this week its second-quarter profit surged to as much as 5.3 million zloty, or 0.48 zloty a share. Sales margins totaled as much as 44.3 percent. Środa Wielkopolska, Western Poland-based company said its sales were up almost 20 percent to PLN 29.4 million.

Decora, which went public just weeks ago in a 62 million zloty IPO said it would public consolidated earnings figures that include profits made by two recent acquisitions August 16.

Information technology

Prokom cuts management costs

Prokom Software information technology group has cut the number of senior executives on its board from ten to nine in yet another attempt to reduce bloated payroll and other expenses. One of the two board members to lose their seats is Beata Stelmach, responsible for investor relations at Prokom. Prokom?s top legal counsel Grzegorz Maciąg joined the board after working fourteen years in non-executive jobs.

Food industry

CEDC cleared to buy Bols, announces earnings

US alcohol distributor Central European Distribution Corporation said earlier this week that Polish anti-trust authorities have cleared its bid to buy Bols vodka distillery. The company, which does business almost exclusively in Poland, also said it has successfully raised about 116 million dollars selling 3.36 million new shares to pay for Bols acquisition as well as its bid to buy 61 percent stake in Polmos Białystok, a major vodka maker that was privatized earlier this year by the Polish government. CEDC has agreed to pay as much as 1.06 billion zloty ($310 million) for 61 percent of Białystok, the maker of bison grass-brand vodka.

Separately CEDC said its preliminary second-quarter earnings were up by a quarter to 5.6 million dollars, or 33 cents a share. Sales were up 23 percent to $164 million.

Next year CEDC is expecting up to 900 million dollars in sales, including Bols and Białystok revenues.

Banking

Pekao?s 2Q earnings up 18 pct. on consumer lending

Poland?s second biggest lender, Unicredito Italiano-controlled Bank Pekao S.A. said on Friday its quarterly profit rose almost 18 percent on stronger demand for consumer and mortgage loans. Pekao said its earnings were up 7 percent to PLN 395 million, somPekao said it sold 689 million zloty worth of new consumer loans in the first six months of this year, up three-fold from last year, led by key consumer loan product Pożyczka Ekspresowa. Somewhat surprisingly for a bank that has long been plagued by poor customer service and expensive loan rates, Pekao said its share of home loans in Polish zlotys was up 1.5 percent to 34.6 percent.

Assets under management by Pekao?s mutual fund unit rose to 16.4 billion zloty from last year?s PLN 11.27 billion.

Shares of Pekao, one of Poland?s key stocks and part of WIG20 blue-chip index, rose 1.95 percent to close at 157 zloty on Friday, a new all-time high.