PKN announced yesterday that it has shut down its hydrotreatment plant to replace worn elements. The maintenance shut down would last for 12 days, according to plans. The company assess that the stoppage of the unit will lower 4Q06 EBIT by PLN 56m.
Our view: The maintenance shutdown was originally scheduled for 2Q06, but due to excellent market conditions in the early summer PKN decided to delay it. When commenting the 2Q results in August, the management has already indicated that the shutdown would likely take place in October, what we have already factored into our model. Neutral market reaction expected.