News Parkiet

Chemicals

Ciech announces new forecast

after filing for IPO

State-owned Ciech SA chemicals trading group could get in trouble with the Polish Securities and Exchanges Commission after its spokesman has disclosed new earnings forecast during the quiet period, just days after filing for IPO. The company has originally said it expects net earnings of approximately 14.6 million zloty. However, on Wednesday Ciech spokesman Marek Klat said the company expects as much as 68.6 million zloty in profits. Ciech then refused to either publish a new forecast or call off its previous projection. ?We will publish our first-half financial results in a few days?, Klat promised in a telephone interview.

Ciech has filed its IPO prospectus on June 30. By law, IPO applicants must notify the SEC about all material changes in their filing documents.

Civil engineering

Contractor demanding PLN 190 million

from Mostotal Płock

Mostostal Płock engineering group is facing a huge zloty claim by PPRM bridge-builder after a contract dispute over a major bridge on the Vistula river. Publicly traded Mostostal, a subsidiary of Spain?s Acciona was supposed to deliver 36 million zloty worth of steel components for the bridge at Płock. It then tried to renegotiate the contract after steel prices went up. PPRM hit back with a 190-million zloty claim for compensation and penalty fees over the delays.

Mostostal, which has net assets of some 53 million zloty counters by saying it is on track to complete its part of the job by the end of November, as scheduled.

Media

Broker FM will post 2Q profit despite

weaker sales

Broker FM, Poland?s largest commercial radio broadcaster expects higher second quarter margins despite weaker sales in the quarter ending June 30, deputy CEO Marek Dworak told PARKIET on Friday. He gave no specific figures because the company, owner of RMF FM pop radio station is reexamining its policy on deferred income tax provisions. The broadcaster has raised an estimated 103 million zloty in a semi-successful IPO last month. Broker FM will start trading on the WSE this Wednesday.

Telecommunications

3G operators chasing profits

Polish mobile phone companies are unlikely to see meaningful returns on their investment in 3G mobile networks anytime soon. PTC, Centertel and Era, the three wireless firms will spend an estimated 16 billion zloty ($178 million) to roll out their 3G systems, including 650 million euros they each paid for government licenses. The telcos have until 2006 complete deployment of their 3G networks.

Hotels

Orbis to launch low-price hotel chain,

new CEO says

Orbis hotel group has plans to start a new, low-cost hotel chain, new chief executive Jean-Philippe Savoye told PARKIET in an interview last week. Accor subsidiary may build up to 25 one-star Etap Hotel facilities to complement its network of higher-end hotels. Turning east, Orbis has plans to build one or two hotels in each of the three Baltic states. By next year or in 2006 sales at Orbis, which is 35 percent owned by France?s Accor, could hit one billion zloty for the first time ever, Jean-Philippe Savoye said.

Petrochemicals

Former PM to testify in Orlen case

Former Polish prime minister Leszek Miller has been called as a witness by local prosecutor in Katowice in a criminal investigation on the dismissal of former CEO of PKN Orlen, Poland?s largest oil refinery. The DA is looking into allegations that top Polish government officials broke the law by telling secret police to detain Andrzej Modrzejewski over insider trading as a prelude to his dismissal. Criminal investigators in Katowice say they?ll ?collaborate closely? with a special parliamentary commission working on the case.

Mining

KGHM workers receive production bonuses

KGHM Polish Copper mining group has agreed to pay oMedia

Agora gains despite huge stock overhang

Shares of Agora newspaper publisher rose 1.7 percent in very heavy trading after 4.28 million shares awarded to company employees hit the market on Friday. The company has about 57 million shares outstanding.