In April 2017, LOTOS reported a model refining margin of USD 8.03 per barrel, while the Q1 2017 margin has been estimated at USD 7.34 per barrel.

The model refining margin in April rose 9% month on month and 32% year on year.

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 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).

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