PKN Orlen net earnings are scheduled to be announced on May 12 would come at close to PLN 500m, below PLN 630m reported in 1Q05, according to a information leak from unnamed sources close to the company, cited by today’s ‘Parkiet’ daily. We do not view the news as surprising, taking into account the drop in the Ural/Brent price differential in 1Q06. We believe that the prospect for relatively weak 1Q06 results has already been priced in. We reiterate our Buy rating for PKN Orlen with PLN 70.5 fair value estimate, based on expectation of the rebound in refining margins, taking into account company’s high downstream exposure.