The supervisory board of Ceska rafinerska (CeR), Unipetrol's largest subsidiary, has decided to legally review the CeR board of directors' decision to suspend supplies to Chemopetrol (Unipetrol's second-largest subsidiary) in May. Separately, CeR reportedly incurred a loss of CZK 800 mil. in H1 2002, which is worse than we expected. However, clarifying relationships among the Unipetrol holding members, including the sale of CeR to an IOC consortium (Agip, Shell, Conoco), has more relevance to the company and its stock than the higer than expected H1 loss of CeR.
(Jan Hajek)