26 June 2007

ZA Puławy’s Earnings Higher than Forecast

ZA Puławy raised its profit forecast for the financial year ending in June 2007 by over 13%. The increase was possible thanks to enhanced efficiency of the Company’s operations and a favourable situation in the industry.

- We were encouraged to raise the forecast by the Company’s performance over the first eleven months of the financial year and good prospects for June. Our results are constantly improving. By adopting a new long-term business strategy we intend to continue building the Company’s value – says Krzysztof Lewicki, President of ZA Puławy.

Investors appreciate the good news coming from ZA Puławy. Since the end of Q1 2007, the price of the Company stock has gained nearly 109%. In the recent days it has reached its all time high of PLN 137.5.

Relative to the previous year, this year’s revenue will be PLN 166m higher, and the net profit will increase by nearly PLN 5m. Sales revenue is to reach a record-breaking amount of nearly PLN 2.2bn. Net profit will be PLN 131m, which is over 13% more than forecast in April.
 
The revised forecast provides for a 17.4% increase in the average annual price of natural gas relative to the actual price in the financial year 2005/2006. As concerns currency exchange rates, the following estimates have been adopted for June 2007: USD 1 = PLN 2.8066, EUR 1= PLN 3.8007.

Current forecast of ZA Puławy for the financial year 2006/2007 ending on June 30th:

(PLNm)	Current forecast (Current Report No. 19/2007 – June 26th 2007)	Previous forecast  (Current Report No. 13/2007 – April 29th 2007)	% change
Sales revenue	2 196,0	2 172,1	1,1
EBIDTA	255,5	235,3	8,5
EBIT	155,8	136,2	14,4
Net profit	131,0	115,7	13,2