News Parkiet

Petrochemicals

PKN down on rumors Kulczyk sells shares

Warsaw Stock Exchange was swept by rumors that Kulczyk Holding, an investment company controlled by top Polish businessman Jan Kulczyk, sold part of its stake in PKN Orlen refinery. Shares of the country?s no. 1 oil company fell 1.9 percent in very heavy trading.

Kulczyk Holding said previously it owns 5.6 percent of PKN Orlen, but Polish SEC was investigating media reports it actually had twice as many shares.

PKN Orlen rose about 70 percent since Kulczyk bought 24 million shares in 2001 and 2002.

Equity markets

PKO BP at least ten times oversubscribed

Privatization sale of PKO BP, the no. 1 retail bank in Poland, will be oversubscribed by ten to twenty times. PARKIET estimates retail investors have signed up for 20 million zloty worth of shares The government is offering just 19.2 million shares at 19.7 zloty each, but the number may be increased to as many as 86.2 million shares at the expense of institutional investors.

Local brokers say the number of new accounts grew by 7 to 20 percent in October alone because of huge publicity surrounding PKO BP stock sale.

Friday is the last day for retail orders with a 5 percent discount from PKO BP?s initial price of 17.5 to 20.5 zloty. The IPO will close on November 6 and the stock is expected to start trading two days later.

Telecommunications

Telekomunikacja?s 3Q net jumps 34 pct.

Telekomunikacja Polska, Poland?s national phone company, said its third-quarter profit rose 34 percent on lower expenses to service foreign debt. Group income was up to PLN 596 million ($175 million) from PLN 445 million last year based on International Accounting Standards . The company, which is 47.5 percent controlled by France Telecom, said its sales, including revenue from Centertel mobile arm, were up 2.5 percent to PLN 4.68 million. Broadband access services doubled to PLN 159 million.

Brokers surveyed by PARKIET estimated that 3Q sales would be up by an average of just 0.27 percent.

Information Technology

Optimus in talks with German customers

Optimus SA is reportedly negotiating new deliveries to sell PC?s, laptops and other hardware to unnamed customers in Germany. Poland?s no. 3 computer manufacturer will report flat third-quarter sales of 45 to 50 million zloty, deputy chief executive Małgorzata Walczak told PARKIET yesterday. Unlike last year, Optimus is likely to report a modest profit thanks to heavy spending on advertising.

Fourth-quarter sales could reach 110 million zloty, Ms. Walczak said.

Nowy Sącz based company, one of the first tech stocks to trade on the Warsaw bourse, expects to triple its notebook sales to PLN 50 million in 2005.

Information Technology

Prokom signs new contract with ZUS

Shares of Prokom Software, Poland?s no. 1 IT company, fell 4.2 percent to close at 125.5 zloty despite early morning news of yet another public contract with ZUS social security administration. Ryszard Krauze?s firm said it has signed a 65 million zloty ($19.1 million) deal to upgrade and expand ZUS backoffice system by the end of 2006.

Prokom has annual sales of approximately one billion zloty.

Food processing

Elstar Oils to raise forecast

Elstar Oil Canola oil maker reported nine-month, unaudited earnings of 6.6 million zloty on sales of PLN 95 million, putting the company well within reach to exceed this year?s target of PLN 7.5 million. Olsztyn-based firm, which went public in an IPO in June said its sales in the three months to October were up 84 percent. thanks in part to stronger demand since May 1st EU entry.

Elstar invested just 5 million zloty of the 45 million it raised in an IPO on new equipment. It plans to build a new rapeseed oil extraction plant next year. Elstar has already secured 8.6 million zloty EU grant to finance the project.Petrochemicals

Grupa Lotos reports record earnings

Poland?s second largest refinery, Gdańsk-based Grupa Lotos (formerly Rafineria Gdańska), reported nine month earnings of PLN 400 million ($133 million) thanks to skyrocketing oil prices and recent restructuring program.

By May of 2005 Lotos will increase its output from 4.5 million to 6 million tons, chief executive Paweł Olechnowicz said.