Polish president Mr. Kaczynski will pay an official visit to Lithuania in mid-March, which creates opportunity to talk once again on the tender Mazeikiu refinery. The tender should had been won by PKN Orlen, but Lithuanian cabinet cancelled it a few days ago. However, it is still not certain, whether the talks would touch the tender on Mazeikiu refinery.
We reiterate our Buy rating for the stock with PLN 67.1 fair value estimate. We continue to see upside potential, based on PKN Orlen’s restructuring potential and an expected increase in the profit contribution of the petrochemical segment, becoming more visible in 2006.