Lotos: 3Q06 net profit comes slightly above consensus

Lotos reported 3Q06 figures in line with expectations. IFRS consolidated net income came in at PLN 199.6m for 3Q06, down 47.6% y/y and 27.7% q/q. The figure exceeds consensus forecast of PLN 192m by 4.0% (estimates ranged between PLN 150m–241m according to Polish Press Agency) and exceeded our own estimate of PLN 193m by 3.4%. We expect to see a slightly negative market reaction on the report as speculation on a similar earnings surprise than we have seen from PKN did not prove to be true.