News Parkiet

Privatization policy

Nafta Polska will fight for control over Orlen,

CEO says

Polish authorities will push for statutory changes that would help the government retain its influence over PKN Orlen, the country?s largest oil refinery, CEO of oil industry privatization agency Nafta Polska told PARKIET yesterday. Mr. Żyndul, former fertilizer plant manager appointed days ago after a surprise dismissal of Maciej Gierej, Nafta?s previous CEO, suggested there will be no changes among senior executives running state-owned chemical and oil companies.

The government together with Nafta owns approximately 27 percent of PKN?s voting stock.

Żyndul reiterated plans to combine government fertilizer plants into Azoty Polskie, floating the company on the Warsaw Stock Exchange as early as next year.

Equity market

Koelner plans fourth-quarter IPO

Wrocław-based construction mounting equipment maker Koelner S.A. announced plans to lists its stock on the WSE in the fourth quarter of this year. Sources at the family-owned company said Koelner would try to sell new stock worth between 50 and 70 million zloty. Existing shareholders, the Koelner family would like to retain 75 percent stake in the company after the IPO. Proceeds are to be used to build a new logistical and distribution center, as well as local subsidiaries in Eastern and Western Europe.

Last year Koelner had sales of 109 million zloty, with net margins at just under 10 percent. Koelner has a staff of about 150 employees.

Monetary policy

MPC keeps rates steady

Poland?s rate-setting Monetary Policy Council left interest rates unchanged after a meeting yesterday despite yet another announcement it could change its bias to ?restrictive? next month.

Economists and market watchers don?t expect interest rate hike anytime soon, but say MPC?s announcement serves as a warning for Polish politicians of what might happen if they stop working on planned cuts in public spending.

Airlines

Another low-cost carrier begins operations

in Poland

Central Europe?s largest low-cost carrier, Slovakia?s SkyEurope has announced plans to launch operations in Poland from its first base in Warsaw. The company plans to invest as much as 20 million euros in its Polish business with financial support from ABN Amro and the EBRD.

?Our goal is to carry 200.000 Polish travelers this year?, SkyEurope chairman Alain Skowronek said yesterday. The carrier will start by offering direct low-cost connections between Warsaw, Bratislava and Budapest, adding flights to London, Paris and Rome at a later date.

Home appliances

Amica sees strong 1Q sales

Amica Wronki fridge-maker is expecting ?significantly higher? first-quarter sales because Poles are buying more home appliances in anticipation of higher VAT taxes, Chief Executive Officer Jacek Rutkowski told PARKIET in a recent interview. The company says domestic sales alone are 30 million zloty higher than last year.

Amica posted sales of 188 million zloty in the first quarter of 2003.

Sales of Amica?s second main product, gas-fired stoves are going through the roof right now because VAT taxes on these appliances will rise from 7 to 22 percent after May 1st. Export sales to Scandinavia and elsewhere in Europe are also up, Rutkowski said. Mr. Rutkowski says exports to Western Europe will make up for lower local demand after tax incentive dries up in the second half of 2004.

Rutkowski also criticized international competitors who are demanding public subsidies before starting operations in Poland. Both Whirlpool and Bosch announced recently they could open new production plants in Poland.

Taxes

Poles looking for tax deductions turning

to charityNew tax code change is encouraging Poles to support local charities by allowing tax deductions on money given to selected organizations for the first time ever. Deductions are limited to one percent of personal income tax and only about five percent of all taxpayers are expected to take advantage of the new law.