In June 2016, LOTOS reported a model refining margin of USD 7.09 per barrel, nearly 14% increase on the previous month.

In Q2 2016, the Company’s model refining margin was USD 6.49 per barrel, flat on Q1 2016 (USD 6.51 per barrel).

The margin calculation was built around the presented yield structure, with the following price indices assigned:

• ·14.14% gasoline (PRM UNL 10 ppm ARA)
• ·4.24% naphtha (Naphtha CIF NWE)
• ·4.53% LPG (50% Propane FOB NWE, 50% Butane FOB NWE)
• ·49.57% diesel oil (ULSD 10 ppm CIF NWE)
• ·5.34% jet fuel (Jet CIF NWE)
• ·18.11% heavy fuel oil (HFO 3.5%S ARA)
• ·4.07% refinery’s own consumption.

In the calculation, the margin was reduced by the estimated model cost of natural gas used per model barrel of crude processed, calculated as the product of 0.075 and the gas index quoted on the Day-Ahead Market of the Polish Power Exchange (TGEgasDA index), converted into USD/MWh (based on YTD 2016 data).

Communications Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, tel. (+48) 58 308 87 31, (+48) 58 308 83 88, e-mail: media@grupalotos.pl