The key plant constructed as part of the Grupa LOTOS EFRA Project, namely the Coker Complex consisting of the Delayed Coking Unit (DCU) and auxiliary installations, has reached the Ready For Start-Up (RFSU) status.
The TETRA critical communication system, implemented and successfully used at the Energa Group, has also been tested in sea and medical rescue operations in the Pomerania region. This most advanced radio communication system in Europe will now also be used by LOTOS Petrobaltic. Offered by Enspirion, the critical communication service will ensure reliable communication both in emergency situations and in day-to-day operations.
LOTOS E&P NORGE will participate in the 30th International Conference DRILLING-OIL-GAS AGH 2019 organised by The University of Science and Technology in Krakow, one of the leading technical universities in Poland.
On April 26th 2019, the Supervisory Board of LOTOS Asfalt appointed Olgierd Buchocki as Member of the Management Board (with effect from May 6th 2019).
Deliveries of crude oil by sea and the release of mandatory stocks ensure stable supplies of oil to Grupa LOTOS in the upcoming weeks. The Gdańsk refinery operates uninterruptedly at full capacity. At the same time, the Grupa LOTOS representatives, other refineries and PERN (negotiations leader) are working towards solving the issue of contaminated oil, both in the technical and commercial aspects.
Clean LIFO-based EBITDA reported by the LOTOS Group for the first quarter of 2019 is PLN 632m, a 17% increase year on year. The LOTOS refinery in Gdańsk operated at full capacity during the first three months of the year.
Due to the deterioration of REBCO quality parameters, the Ministry of Energy decided to halt its supplies at the Adamowo connection point. Grupa LOTOS S.A.’s existing stocks of crude oil allow it to maintain continuity of production at the Gdańsk refinery. The situation has no impact on the quality of fuels sold at LOTOS service stations.
Between March 13th and March 18th 2019, Grupa LOTOS and PGNiG completed two LNG commercial bunkering operations for seagoing ships. These were the first such operations carried out at the sea ports of Gdańsk and Gdynia. LOTOS and PGNiG are set to continue cooperation in LNG bunkering as this will enhance the competitiveness of Polish ports and promote the use of LNG, as an environmentally friendly fuel, in the Baltic Sea.
The financial performance of the LOTOS Group in 2018 confirms its robust condition. The Group delivered a consolidated net profit of PLN 1.6bn and adjusted LIFO-based EBITDA of PLN 3.1bn, the highest figure on record. Revenue came in at PLN 30.1bn, up 24.5% on 2017, and CAPEX spending was PLN 1bn. The refinery processed the largest amount of crude oil in its history – 10.8 million tonnes. At the end of 2018, the LOTOS share price on the Warsaw Stock Exchange came close to PLN 90 per share. For the second year in a row, the Company paid dividend.
Grupa LOTOS and Microsoft have signed an agreement paving the way for the development of joint projects and solutions based on artificial intelligence and state-of-the-art information technology. Their collaborative partnership will commence with the establishment of the Competence Centre for Artificial Intelligence, Digital Innovation and Advanced Data Analytics. The expected synergy gains from up-to-date technology solutions are estimated to exceed EUR 10m.
LOTOS has reached an agreement with KT-Kinetics Technology, the main contractor on the EFRA Project. According to a draft annex, the delayed coking unit (DCU) is to reach the RFSU (ready for start up) status by May 31st 2019. The target economic and financial effects of the EFRA facilities are expected to show in the Group’s consolidated financial results for Q4 2019.
The Grupa LOTOS refinery operated at full capacity in the third quarter of 2018. The Group considerably improved its operating and financial performance and significantly reduced its debt during the period.