Petrolina target raised to EUR 0.95 by Marfin Egnatia

Marfin Egnatia have increased their price target on Petrolina (Holdings) Pcl to EUR 0.95 per share after the company posted a strong set of FY07 results with net profit increasing by 59.8% to EUR 12.36 mln.

The improved profitability is primarily attributed to the higher volumes sold via PHL’s filing stations, the significant improvement in gross profit margins for both petroleum and LPG products as a result of improved global market conditions and better management of the PHL’s logistics chain which relate to the pricing charged to each shipment of stock.

Total Company sales exhibited a marginal growth of +2.3% YoY to EUR 293.7 mln, where sales to filing stations and other trading customers rose to EUR 268.6 mln (+10.8%). This was the result of favourable market conditions prevailing both locally and internationally.

According to official data issued by the Statistical Service of Cyprus, total sales of petroleum products from filling stations in the local market for 2007, increased by 4.8% yoy.

Operating profit (EBIT) surged by 49.2% yoy to EUR 16.1 mln on the back of lower cost of sales and an improved operating performance. PHL’s associate company PPT Aviation burdened bottom line profitability by EUR 208k vs. a gain of EUR 123k recorded in FY06. EPS reached EUR 0.1413. Based on the stock’s latest closing price PHL trades at a 2007 P/E ratio of 5.5x.

In another development, the Company’s BoD approved a second interim dividend payment of EUR 0.0299 per share to all shareholders registered as at 7 March 2008. The ex-dividend date is set on 11 March 2008. The total dividend for 2007 stands at EUR 0.05233 per share.