(44 PLN, -1,04%) plans to present its FY 2007 earnings targets in the second half of September, the company’s CEO told on a press conference yesterday. Mr Olechnowicz also revealed that plans to begin extraction at the B8 oil field on the Baltic Sea in 4Q07 and that it is in talks to extend production to the North and Norwegian seas. The CEO expects to make a significant step in this regard in October and reiterated that plans to modify its upstream strategy by June 2008.
Our view: We have already calculated with the production on the B8 field for 4Q07, as the company indicated earlier that the restart is likely in 4Q07 or in 1Q08. Also, we have reported in our daily a month ago that plans to expand production to the North Sea, however, time horizon of this investment was unknown that time. Now, it seems to us that accelerated talks given the persistently high crude price environment. We can also imagine that management aimed to demonstrate successful strategy to the politicians in order to keep the company independent from (56 PLN, 0,36%) Orlen.