In its new investment plan, (50 PLN, 0,00%) Orlen confirmed that it aims to boost its retail market share to 20% in the Czech Republic by 2012. plans building new gas stations but also looks for acquisition of existing networks.
Our view:
PKN’s Czech subsidiary, (325 CZK, -2,46%) has less than 10% share on the Czech motorfuel market currently. We believe that 20% market share target is not realistic on the organic way, given the aggressive market policy of major competitor, (50 EUR, 0,00%). However, we do not see major networks up for sale at the moment, which can make PKN's strategy overly ambitions. The news, however, is just a confirmation of PKN’s earlier plans, and therefore we do not see any market reaction to that.