PGNiG reported 2Q06 net profit of PLN 105.8m up 438 % y/y, and 22 % below the consensus estimate. The figure fell under our forecast almost by 30 % as we have underestimated the negative impact of rising natural gas import prices on PGNiG's gas utility business. As operating performance of the company was 8.7 % worse-than-consensus, we see a moderate negative reaction to the results. The company will hold a conference call for analysts/investors today at 15pm.