Tupras reported its tax base P&L statement yesterday evening after the market. Net income came in at US$ 295.3m (+60.8% y/y, +396.3% q/q). EBIT amounted to US$ 300.0m (+30.4% y/y, +595.7% q/q). The company also reported that its gross refining margin averaged at 9.17 US$/bbl, which exceeded the Urals-Med refining margin by 1.96US$/bbl.
Our view: The company will report its P&L in accordance with Capital Market Board Regulations at the beginning of September. Since the figures reported for tax purposes proved to show high correlation with the CMBR P&L, it indicates for us that the actual net result might be above our estimate of US$ 214.5m for net income in 2Q07. Please note that tax purpose report does not include the profits coming from OPET, the retailer 40% owned by Tupras. We expect the positive market reaction to the report as it seems that Tupras could fully realize the favorable refining margin environment in the first two months of the second quarter.