News Parkiet

Petrochemicals

Private gas stations headed for extinction after EU accession

Independent, family-owned gas stations across Poland may turn into an endangered species after the country?s accession into the European Union triggers new environmental regulations in early 2005.?The very existence of independent gas stations is at risk, mainly because of stiff competition by Polish and Western chains, which often offer additional services and customer loyalty programs?, says Maciej Powroźnik, the head of Polish Chamber of Liquid Fuel Distributors.

Over half of Poland?s 6000 plus gas stations are independently owned, with most of the remainder controlled by PKN Orlen, Grupa Lotos and several Western oil majors.

Chemical industry

POGC privatization scheduled for October 2004

Shares of Polish Oil and Gas Company (PGNiG) will be floated on the Warsaw bourse, deputy Treasury Minister Ignacy Bochenek told the media after a parliamentary hearing yesterday. The group, which imports most of Poland?s natural gas will receive as much as 2 billion zloty ($500 million) in state financing before the IPO. Polish government decided to spin off part of PGNiG, which operates the country?s natural gas pipeline network in order to retain control over this strategic asset.

Equity markets

DGA offering postponed until late February

DGA privatization consulting firm has decided to postpone its Initial Public Offering until the turn of February and March 2004. Poznań-based firm expects Polish SEC to approve the sale by mid-January. DGA wants to sell between 350.000 and 560.000 shares. IPO price range will be announced at a later date.

Information Technology

I&B System reiterates forecast for 2004

Invar & Biurosystem IT group has confirmed preliminary forecast to double its earnings in 2004, CEO Henryk Kruszek said during a web chat with potential investors yesterday. The firm, which seeks 6.9 million zloty in a secondary offering that ends on December 15 said earlier it would post group earnings of 4 million zloty ($1 million).

Personal savings

Banking bonds? yields lower

than market rates

Returns on tax-exempt bonds issued by major Polish banks are lower than yields offered by T-bills and government bonds. Four large Polish banks are selling 4.5 billion zloty worth of special, tax-sheltered commercial paper, offering rates slightly lower than benchmark yields on government bonds while avoiding 19 percent capital gains tax. However, banking bonds offered by Bank Zachodni WBK, BPH-PBK, Millennium and Pekao typically carry front-end commissions and offer no premium for higher investment risk.

Telecommunications

Szeptel owes PLN 4.1 mln in back taxes and fines, UKS says

Publicly traded alternative fixed-line operator Szeptel S.A. said Białystok tax authorities are demanding 3.2 million zloty in VAT taxes after the company shut down some of its investment projects related to these claims. Additionally, UKS tax office is now demanding 953.000 zloty fine.

Szeptel has already said it would appeal UKS decision, citing previous legal disputes in which Polish courts rejected similar claims by tax inspectors.

Despite these attempts to calm investors, shares of the company fell 2.1 percent to close at 2.72 zloty.

Szeptel is listed on Warsaw bourse?s small cap market.

Telecommunications

Netia makes new bid for Tel-Energo

Poland?s second largest fixed-line phone company Netia S.A. has made another bid for Tel-Energo data carrier, its main shareholder said on Wednesday. Netia?s new offer reportedly includes cash injection to finance Tel-Energo?s expansion and an option to buy out future minority shareholder, sources close to the deal said yesterday.

Netia and Tel-Energo?s owner, PSE power grid operator said they would not comment on the transaction.