April 13th 2016 The Supervisory Board of Grupa LOTOS S.A. has resolved to remove Paweł Olechnowicz, President of the Management Board, Zbigniew Paszkowicz and Marek Sokołowski, Vice-Presidents, from their positions on the Management Board. Maciej Szozda and Mariusz Machajewski will continue to serve on the Management Board.

Another SUBWAY restaurant is scheduled to open on April 7th at a LOTOS service station in Poznań, with over ten more outlets under the US brand planned for launch in the course of 2016.

Earthworks related to the construction of the main EFRA Project units have started in the Gdańsk refinery. Ground improvements, i.e. piling for the Hydrogen Generation Unit (HGU) as well as work on the construction site for the coking complex that will house the Delayed Coking Unit (DCU) and Coking Naphtha Hydrotreating Unit (CNHT), have commenced.

In the first quarter of 2016, LOTOS produced over 2.5 million barrels (ca. 350 thousand tonnes) of oil equivalent (boe), which translates into a daily production volume of almost 30 thousand boe. To compare, production in the first three months of 2015 amounted to some 1 million boe. Three-fourths of the volumes come from fields in Norway, while the balance was produced in the Baltic Sea and in Lithuania.

The LOTOS Group may start construction of a Delayed Coking Unit (DCU) and Coker Naphtha Hydrotreating Unit (CNHT), key elements of the EFRA Project designed to increase the efficiency of the Gdańsk refinery. The relevant permit was issued by the Municipal Office of Gdańsk on March 7th. Site preparation for the DCU should start in late March or early April. The permitting process for the EFRA Project is progressing as planned.

The session of March 18th will see Grupa LOTOS return to the WIG20 index, which groups the largest and most liquid stocks traded on the Warsaw Stock Exchange (WSE).

2015 normalised LIFO-based EBITDA (operating profit plus depreciation/amortisation) was PLN 2,156m (2014: PLN 1,391m), the best result in the history of LOTOS.

Shell Polska and LOTOS Paliwa have put the finishing touches on a deal that will see cross-acceptance of euroShell and LOTOS Biznes car fleet cards at LOTOS and Shell Polska service stations. 

In February 2016, total production of crude oil by LOTOS Petrobaltic, LOTOS Norge and LOTOS Geonafta, which operate in Poland, Norway and Lithuania, crossed the mark of one million barrels. 

Thanks to the implementation of the EFRA Project, the LOTOS Group will discontinue production of heavy fuel oil, a fraction obtained from petroleum distillation. Once the new installations are put in operation, instead of fuel oil the Gdańsk refinery will produce more engine fuels meeting all applicable environmental standards, and coke. In the planned coking installation, some unique, rarely used environmentally friendly solutions will be applied. They will ensure maximum safety of coke production for the natural environment.

Grupa LOTOS has engaged an owner’s representative to provide comprehensive supervision over the work to be performed under its EFRA Project. On Friday, January 29th 2016, the Company signed an agreement with a reputable partner, Tebodin Poland. The contractor will act as the owner’s representative, supervising the key project areas and the construction/installation work to be performed under the EFRA Project implemented at the Gdańsk refinery. The owner’s representative will provide its services until the end of August 2018.

The Extraordinary General Meeting of Grupa LOTOS S.A. held on January 27th 2016, acting at the request of the Ministry of State Treasury, changed the composition of the Company’s Supervisory Board of the 9th term.