In late March 2020, Grupa LOTOS, LOTOS Paliwa and Remontowa LNG Systems signed an agreement to build a pilot LNG docking station, to be sited at the LOTOS service station located in Gdańsk-Osowa on the ring road bypassing the Gdańsk-Gdynia-Sopot metropolitan area (on the road to Gdynia). Its commercial operation is slated to start in mid 2021.
The financial performance recorded by the LOTOS Group in 2019 confirms its stable condition. Despite a challenging market environment, adjusted LIFO-based EBITDA was PLN 2.9bn. With 10.7 million tonnes of processed crude oil, the refinery fully utilised its production capacity. Sales of fuels in Poland were record-high at 8 million tonnes.
In Q3 YTD 2019, LOTOS delivered cumulative LIFO-based EBITDA of PLN 2.3bn, including PLN 0.86bn in Q3 alone. This confirms that the Group’s complementary business segments make LOTOS resilient to the significant changes in the market environment. In Q3, LOTOS Group paid a record-high dividend of PLN 555m, or PLN 3 per share, for 2018. Production from the Utgard field was launched ahead of schedule. The LOTOS refinery operated at full capacity in that period. Start-up of the key EFRA units commenced.
PGNiG Supply & Trading (PST), a member of the Polish Oil and Gas Company Group (PGNiG), becomes the exclusive recipient of natural gas produced in Norway by LOTOS Exploration & Production Norge (LOTOS Norge), a LOTOS Group company engaged in exploration and production activities on the Norwegian Continental Shelf.
Production from Norway’s Utgard field was launched on September 16th 2019. The project had been completed about three months ahead of schedule with about 25% savings compared to the assumed budget. LOTOS Exploration & Production Norge (LOTOS Norge) is a partner in the licence, operated by Equinor. The field is an important part of the LOTOS strategy in exploration & production.
Supporting talented Polish athletes has been a vital part of Grupa LOTOS’ activities for years. In August 2019, the company signed an agreement that made it the Main Partner of Hubert Hurkacz, ranked among the most promising Polish tennis players of the young generation. The agreement is valid until the end of 2022.
Having performed a periodic credit rating review, the EuroRating agency maintained Grupa LOTOS’ rating at BBB- with a positive outlook. According to the agency’s classification, which is also commonly used by international rating agencies, the maintained level of credit risk indicates Grupa LOTOS has high creditworthiness and a sufficient capacity to meet its financial commitments in the long term.
Adjusted LIFO-based EBITDA reported by the LOTOS Group for the second quarter of 2019 was PLN 783.3m, an almost 24% increase quarter on quarter. From April to June 2019, the Gdańsk refinery ran at 105% of its nameplate capacity.
LOTOS has launched a new image-building campaign, which is a continuation of “The BEST doesn’t come from nowhere” series. From this week on, a 30-second spot being an extension of the outdoor campaign launched in July, will be run on the Internet and television. The campaign is designed to support customer touchpoints – LOTOS service stations and the entire range of fuel and non-fuel products.
Drilling operations in licence PL442 in the NOAKA area in the North Sea discovered recoverable oil resources estimated at 80–200 mboe (barrels of oil equivalent). Aker BP operates the licence (90.26%) in partnership with LOTOS Exploration & Production Norge (9.74%).
LOTOS Oil showcased its products at an international automotive fair held from July 4th to July 6th 2019 in Chennai, India. India has joined the group of 68 countries where customers can buy a wide range of high-tech oils manufactured by LOTOS.
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.