The Grupa LOTOS Management Board has recommended the payment of a dividend of PLN 1 per share for 2019. The recommendation demonstrates the Company is in a strong financial position and continues to deliver on its business strategy, in which the company declared it would maintain its dividend payment capacity. But the recommendation is also a rational decision aimed at securing funding for the company’s capex projects and providing liquidity in a difficult time of recession caused by the coronavirus pandemic.
Grupa LOTOS boasts a stable financial position, with a low level of debt and a healthy liquidity position enabling effective implementation of day-to-day processes and planned investments. Capital expenditure planned for 2020 totals approximately PLN 1.4bn, with PLN 500m secured for the Polimery Police project. The ongoing capex projects include the construction of a pilot LNG docking station and a new railway loading station. The latter, once completed, will help to remove bottlenecks in the dispatch of fuels, particularly diesel oil, to customers in Poland. This in turn will help the Company to increase the security of supply to customers at service stations in Poland, by reducing reliance of imports. Also, a final investment decision is to be made in respect of the project to build a hydrocracking oil unit and a transhipment terminal on the Martwa Wisła river in 2020.
‘LOTOS again delivered solid performance last year, which is why we have recommended the General Meeting that the company share its profit with shareholders. But guided by a sense of responsibility for the business, we must bear in mind its financial security as well. Further investments will drive Company growth in the long term, but they will also provide a major boost to the country’s economy as it recovers from the pandemic and will be a guarantee of new contracts for many of our stakeholders. We are of the view that a dividend payment in the proposed amount is a reasonable and optimal decision under the current circumstances,’ explained Paweł Jan Majewski, President of the Grupa LOTOS Management Board.
The Grupa LOTOS Management Board resolved to recommend that ca. PLN 185m be allocated for a dividend payment and the balance of ca. PLN 650m be contributed to statutory reserve funds. The resolution will be put forward as a proposal to the Annual General Meeting, the body competent to make the final decision on the allocation of profit for 2019.