has the potential to increase EBIT by more than CZK 3bn by 2012 compared to an EBIT of CZK 3.78bn in 2006, CEO Francois Vleugels told a conference on Tuesday. According to the CEO the growth could be achieved organically, admitting, however, that global margin environment highly depends on the US.
Our view: We forecast Unipetrol's EBIT at CZK 5.941bn for 2012, up 57% from 2006. Although we assume significant efficiency gains for the 2007-2012 period we also expect global petchem margin environment to worsen in the coming years after peaking in 2006-07. Calculating with unchanged petchem macro conditions for 2012, we think CZK 6.8bn EBIT Unipetrol's CEO visions for 2012 is definitely achievable. We consider the news as neutral for the share price.