Orlen and Lotos discuss plans for profits carve-up

The proposals will be discussed at the general shareholders meetings of both companies, which are scheduled for later this month. According to market analysts, the boards' proposals are sensible. "The long-term benefits for investors should exceed their negative reaction to the lack of dividends," stated Grzegorz Litynski, an analyst with KBC Securities. PKN Orlen, which is about to pay USD 2.3 billion for the Mozejki refinery, wants to allocate almost all of its zl.2.5 billion profit as reserve capital. However, the board declares that if it does not buy Mozejki by March 31 2007, it will propose paying a dividend of zl.1.92 billion. Meanwhile, the board of Grupa Lotos suggested allocating all of the company's 2005 net profit of zl.523.3 million as reserve capital. "The funds will be used to execute our comprehensive technical improvements program, " stated Lotos spokesperson Marcin Zachowicz. (Puls Biznesu, pp. 1, 5) E.B.