The second stage of the refinery’s overhaul and the spiking prices of crude oil, natural gas and petroleum products in the wake of the war in Ukraine - these factors had the greatest impact on the LOTOS Group’s performance in the first quarter of 2022. Results posted by the LOTOS Group for the quarter include an operating profit of PLN 1.89bn, adjusted LIFO-based EBITDA of PLN 1.33bn, and consolidated net profit of PLN 1.22bn.
Despite the volatile macroeconomic environment driven by the pandemic, the LOTOS Group was able to maintain a strong balance sheet and generate high operating cash flow. Grupa LOTOS effectively optimised the operation of its plant, both in terms of the selection of feedstock and energy carriers and the yield structure.
Durable and highly modified MODBIT HiMA bitumen will be used on one of the city's main streets. The use of this modern technology on the renovated Kartuska Street will extend the road's lifetime and improve its acoustic comfort. Drivers and residents will benefit from a durable road that is quieter by 2-5 decibels. The investment is in the final stage and is scheduled for completion in mid-December this year.
At the end of October, the A.C.B. Latvia completed reconstruction of runways at the Palanga airport in the western part of Lithuania. The modernisation was intended to increase the carrying capacity and improve the safety of the runway at the airport. As part of the construction works, 83,000 tonnes of mineral and bitumen mixtures were laid. The surface works at the airport required fast pace, mobilisation of the contractor and reliability of deliveries. The high-quality bitumen was supplied by LOTOS Asfalt.
The launch of production from the Yme field on the Norwegian Continental Shelf is one of the key investment projects of the Gdańsk-based group. Its implementation will contribute to a major increase in LOTOS Group’s hydrocarbon production in Norway. Average production over the next five years will be approximately 5,000 barrels per day.
The project intended to equip the LOTOS refinery in Gdańsk with capacities to produce high quality lubricating base oils by 2025 is entering the execution phase. On September 28th 2021, LOTOS signed a contract for the construction of a Hydrocracked Base Oil (HBO) facility. The main contractor is KT - Kinetics Technology S.p.A., with which LOTOS collaborated in the past on the EFRA Project. The value of the HBO Project totals over PLN 1.4bn.
The focus of LOTOS Exploration and Production Norge’s activities in September has been on the submission of bids in the APA 2021 licensing round and unification of the NOAKA project interests. Thanks to these and other projects under development, LOTOS is optimising its Norwegian asset portfolio so it can be leveraged to maximum advantage with future potential secured.
LOTOS ended the second quarter of 2021 with success. Having flexibly managed its product slate and sales directions and having leveraged market opportunities that came its way, LOTOS delivered a net profit of PLN 1.06bn. The Gdańsk refinery operated at full capacity.
Modernisation works on the taxiways at the Warsaw Chopin Airport lasted over a month and were completed in the second half of June. As part of the works, the wearing course of the airport surface and navigation lighting were replaced. As part of the project, MODBIT polymer-modified bitumen was used, whose properties made it possible to achieve a durable and rough surface that meets the highest standards of safety.
LOTOS competence centres within the newly formed multi-utility group, summary of the status of key capital investment projects and the research agenda until 2030 were the topics of the event held on July 15th at the company’s registered office in Gdańsk. The event was attended by representatives of the LOTOS Group and members of the academic community.
On June 18th 2021, LOTOS Petrobaltic and Baltic Trade and Invest (BTI) signed a letter of intent to collaborate on offshore wind farm projects. BTI is a subsidiary of Germany’s RWE Renewables (RWER), the world’s second largest offshore wind farm developer and operator.
Grupa LOTOS has announced its financial results for the first quarter of 2021. The company reported operating profit for the period of PLN 664.3m. Despite challenging conditions triggered by the pandemic, the company safely completed the main part of the refinery maintenance shutdown and flexibly managed its product mix.