In December 2016, LOTOS reported a model refining margin of USD 6.96 per barrel, while the Q4 2016 margin has been estimated at USD 8.18 per barrel.

The model refining margin rose by 56% between December 2015 and December 2016 and by 32% between Q4 2015 and Q4 2016.

The margin calculation is 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 is 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).

Communication Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, tel. (+48) 58 308 87 31, (+48) 58 308 83 88, (+48) 58 308 83 55, e-mail: media@grupalotos.pl