Lotos reported very impressive 2Q06 figures this morning, beating market consensus on both EBIT and net profit lines by far. IFRS consolidated net income came in at PLN 276m for 2Q06, up 211.6% y/y and 168.0% q/q. The figure exceeds consensus forecast of PLN 223m by 23.8% (estimates ranged between PLN 145m–313m according to Reuters) but fell short of our own estimate by a moderate 3.6%. We expect to see a moderate positive market reaction as 1H06 net profit of PLN 379m stands at 61.5% of FY06 net profit consensus on Bloomberg.