According to financial performance estimates, in Q4 2012 LOTOS earned net profit of just under PLN 936m. This represents a 44% year-on-year growth. The Company expects revenue to reach PLN 33.1bn, which is up by 13% on the prior year.

The Q4 2012 estimates suggest that in the reporting period the Company generated revenue of more than PLN 8.3bn, operating profit of approximately PLN 173m and net profit of almost PLN 242m. The performance was driven by factors including record-high crude oil throughput at the Gdańsk refinery of almost 9.7 million tonnes in 2012 (up by 5.6% relative to the prior year), and the resultant increase in sales of liquid fuels and other petroleum products, further supported by a
 15.1% year-on-year rise in oil production, which amounted to 262 thousand tonnes as at the end of Q4 2012.

"Looking at the estimates of last year's performance, the positive impact of the 10+ Programme is clear, says Paweł Olechnowicz, Grupa LOTOS CEO. "If it were not for the newly added process units, our refinery would be unable to match the ever-fiercer competition. This is clear evidence that a sound foundation is there to aggressively pursue our strategy.

In 2012, LOTOS was consistent in implementing its investment and development programme. LOTOS Optima, the chain of budget service stations, doubled its presence and was Poland's fastest-growing retail network.  At the beginning of the year, a total of 401 service stations operated under the LOTOS brand, including 101 LOTOS Optima stations.

The Company became party to several agreements important to its growth. One such agreement was signed with the Azoty Group in November. The two companies resolved to cooperate in the drafting of a feasibility study for two projects: steam cracker and polyethylene production unit and aromatics complex. If the results of the feasibility study prove positive, work on the chosen option will commence. The Azoty Group is to be the key customer for products made by the new units.

Also, a deal to take full control over Manifoldas by LOTOS Geonafta was consummated in November. Following the acquisition, LOTOS Geonafta will increase its oil production in Lithuania.

In September, LOTOS and PGNiG signed an agreement on cooperation in exploration and production of conventional and unconventional oil and gas and on commercial cooperation.
 In 2013, the two companies will pursue joint operations on four selected licences on the Polish coast. The agreement permits LOTOS to acquire shares in any of the licences.

In October 2012, LOTOS Petrobaltic i CalEnergy Resources Poland agreed on the rules of cooperation in developing the B4 and B6 gas fields on the Baltic Sea. A total of up to 4 billion cubic metres of natural gas may be recovered from the fields.  The agreement provides for joint operations of LOTOS Petrobaltic S.A. and CalEnergy Resources to be carried out through a special purpose vehicle, whose costs and profits will be shared between its owners in the following proportion: LOTOS Petrobaltic - 51%, CalEnergy Resources - 49%.

"In this past year, LOTOS launched several interesting business projects. Some of them will enter the implementation phase within the next twelve months," says CEO Paweł Olechnowicz "Our priority continues to be the fast growth in the upstream segment. In pursuit of this goal, we have struck alliances with selected business partners and are in talks over further projects that will be announced soon.

As of January 1st 2013, LOTOS Tank has been a direct supplier of aviation fuel to carriers operating from the Chopin airport in Warsaw. 

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