News Parkiet

Power industry

Distributors fined for below-target clean

energy purchases

Polish electricity distributors paid 4.5 million zloty in fines because of lower than planned purchases of renewable energy despite shortages of clean energy on the local market. By law, next year some 3.6 percent of electricity purchased by power distribution firms has to come from wind farms, hydroelectric plants and similar sources.

Privatization

Russia's audit chamber wants court probe

of government asset sales

Russia's Audit Chamber said courts should probe sales of state assets made in the last decade yesterday. The watchdog, which has not executive powers, also said the government should take back control over companies sold 'improperly'. It also called for limits on foreign ownership of raw material producers and defense companies.

Footwear

CCC expects profits on IPO

Shoe manufacturer and retailer CCC may start trading at 10.5 zloty, some 10 percent above its IPO price of 9.5 zloty, senior executive Mariusz Gnych told PARKIET before today's market debut. The company, which sold 8 million new and existing shares in a 76-million zloty IPO last month will be listed on the main market of the Warsaw Stock Exchange.

'I believe our investors will make money on this IPO. Honestly though, I would be more comfortable with the question of how much CCC may be worth two years from now. I believe that by that time our shares will double from the IPO price', Gnych said.

The two brokers who cover CCC, BDM PKO BP and CA IB Securities say the stock is worth 8.6 zloty and 11.1 zloty respectively

Based on this year's profit estimate, at 9.5 zloty CCC has price-earnings ratio of 15.86.

Airlines

LOT to develop e-ticket reservation system

Polish national carrier PLL LOT is planning to develop an electronic ticket reservation system and a new text message flight information system in an attempt to cut operating costs. State-controlled airline says it hopes to report a small profit this year thanks in part to new cost-cutting measures.

Formerly part of Swissair group, LOT lost PLN 111 million in 2003.

Airlines

Wizz Air woes may hurt industry image,

competitors say

Low cost carriers SkyEurope and easy Jet say that apparent liquidity problems of their local competitor, Wizz Air, could hurt industry prospects across Central Europe. UK-based easy Jet called on Wizz Air to disclose the number of flights it has called off in recent months, stranding passengers. Meanwhile, EBRD-backed SkyEurope points out that Wizz Air has failed to secure additional 40 million euro investment financing to expand its operations.

Food industry

Atlanta sees 80% profit increase

Net earnings of Atlanta Poland, one of the country's biggest importers of dried fruit and nuts, may increase by up to 80 percent compared with last year, the company said in a statement to the Stock Exchange yesterday. Atlanta, which is planning an IPO later this month, estimates that 2004 sales will grow by 20 percent to 120 million zloty, rising to as much as 150 million zloty next year.

Atlanta's IPO is worth just 10 to 12.5 million zloty.

Equity markets

Śląski to launch brokerage services

ING Bank Śląski will start offering brokerage services from up to 300 outlets across Poland sometime next year, senior executive at Polish ING unit said yesterday. The group hopes to attract new retail investors without the costly expansion of ING Securities stock brokerage unit.

Retailing

Eurocash IPO to raise PLN 150 million

Eurocash S.A., Poland's biggest discount cash and carry chain, says it plans to raise as much as 150 million zloty in an IPO scheduled later this month. Chief executive Luis Amaral plans to sell almost 45 million shares representing 35 percent of outstanding stock. The sale is mEurocash operates 83 cash & carry outlets across Poland, as well as franchise chain of more than 1800 'abc' grocery stores. Sales are set to rise to PLN 1.5 billion this year, with 1.4 percent net margins.