(326 CZK, -0,21%) AS Chief Executive Francois Vleugels said the costs of a shutdown at the Litvinov refinery may increase by about 10 percent, or CZK 200m ($10.4million), because its restart was delayed. The shutdown will reduce the company's EBIT in 2H07 by combined CZK 2.2bn versus company’s previous estimate of CZK 2bn. Also may book a “substantial charge” in its earnings this year from selling two chemical-company holdings.
According to our forecast the financial impact from shutdowns could amount to CZK1.8bn. We feel some downward pressure on our figures after the management announcement. We also expect to see somewhat negative sentiment on the stock in the next days.