More than 10 years of Grupa LOTOS’ presence on the WSE
Fluctuations in financial performance due to changing macroeconomic environment; 2012−2015 average: PLN 1,666m.
Stable levels of cash generated from operating activities; 2012−2015 average: PLN 1,408m.
Improving ability to service the existing debt.
The Company shares have been listed on the Warsaw Stock Exchange (WSE) since June 2005, and are included in the WIG20 index of WSE’s 20 blue chips., as well as in WIG-Paliwa and RESPECT Index.
Grupa LOTOS stock performance since IPO
Share price (PLN) and trading volume (number of shares) since first listing on the WSE
In 2015, the Grupa LOTOS stock traded within the target price, as estimated by brokers, of PLN 22.90–33.50. Actually it belonged to the range of PLN 23.53 – 33.24. The lowest closing price was PLN 23.83, and the highest – PLN 33.15. The company closed the year at PLN 27.00.
Factors affecting the price, including key events at Grupa LOTOS:
Despite the brokers’ estimation medians above PLN 30.00 per one share of the LOTOS Group, the price of its shares did not react to the positive news communicated in H2 2015, including the launch of oil production from the B-8 field and the agreement with Exxon Mobil for acquisition of the Sleipner assets, and it decreased, which was indirectly evidenced by the muffled growth potential by opening short positions on the LOTOS securities in H2 2015.
Structure of broker recommendations on Grupa LOTOS shares in 2015
The target price of Grupa LOTOS shares in brokers’ research reports ranged from PLN 22.90 to PLN 33.50, compared with PLN 25.80 to PLN 54.07 in 2014. The average target price in 2015 was PLN 30.47 (2014: PLN 37.90).
Grupa LOTOS share price performance vs WIG, WIG20/WIG30, WIG Paliwa and RESPECT Index [%]
In 2015, Grupa LOTOS shares outperformed the market. The index of all companies listed on the Main Market, WIG, dropped 9.6%, and WIG20 dipped by -19.7%. Looking at stock performance by sector, WIG-Paliwa gained 32.5% while WIG-Energetyka went down by 31.4% The RESPECT corporate social responsibility index lost over 15.1% during 2015.
Dividend policy at Grupa LOTOS
Increased dividend distributions under the strategy for 2011−2015 resulted from the optimization of the financing structure of the LOTOS Group. Grupa LOTOS’ financial strategy provided for potential distribution of up to 30% of net profit as dividend.
Dividends and dividend yields in 2006−2015 (PLN)
| Financial year | Dividend | Dividend per share | Share price at year end when the dividend was distributed | Dividend yield* |
|---|---|---|---|---|
| 2005 | 0.0 | 0.0 | 44.2 | - |
| 2006 | 40,932,000.0 | 0.4 | 49.3 | 0.7 |
| 2007 | 0.0 | 0.0 | 44.5 | - |
| 2008 | 0.0 | 0.0 | 12.0 | - |
| 2009 | 0.0 | 0.0 | 31.8 | - |
| 2010 | 0.0 | 0.0 | 36.4 | - |
| 2011 | 0.0 | 0.0 | 23.3 | - |
| 2012 | 0.0 | 0.0 | 41.2 | - |
| 2013 | 0.0 | 0.0 | 35.5 | - |
| 2014 | 0.0 | 0.0 | 27.0 | - |
| 2015 | 0.0 | 0.0 | - | - |
* Dividend yield – dividend per share to price per share
Historical dividend per share (PLN)
| Financial year | Dividend per share | % of net profit | Dividend record date | Dividend payment date |
|---|---|---|---|---|
| 2005 | 0.0 | 0.0 | - | - |
| 2006 | 0.4 | 10.1 | Jun 11 2007 | not later than Jul 31 2007 |
| 2007 | 0.0 | 0.0 | - | - |
| 2008 | 0.0 | 0.0 | - | - |
| 2009 | 0.0 | 0.0 | - | - |
| 2010 | 0.0 | 0.0 | - | - |
| 2011 | 0.0 | 0.0 | - | - |
| 2012 | 0.0 | 0.0 | - | - |
| 2013 | 0.0 | 0.0 | - | - |
| 2014 | 0.0 | 0.0 | - | - |
| 2015 | 0.0 | 0.0 | - | - |
* Dividend record date – the date as at which the list of shareholders entitled to receive dividend for a given financial year is determined
* Dividend payment date – the date on which dividend is paid to the Company’s shareholders
The Board of Grupa LOTOS has no knowledge of any agreements which may give rise to future changes in the number of shares held by the existing shareholders and bondholders.
The responsible ones awarded with inclusion in the RESPECT index
In 2015, for the ninth time Grupa LOTOS shares became a constituent of the WSE’s RESPECT Index – Central and Eastern Europe’s first index of socially responsible companies. It comprises stocks of companies that show commitment to best management standards in corporate and information governance, as well as investor relations, and that act responsibly on environmental, social, and labour issues.
Grupa LOTOS has been present in the RESPECT Index since its inception in 2009. To date, the WSE has announced nine editions of the RESPECT Index. The latest comprises 23 companies and will be valid until December 21st 2015.
More information on the RESPECT Index
What does it mean to us to be included in the RESPECT Index?
For Grupa LOTOS, each of the values represented by the letters making up the word ‘RESPECT’ is reflected in its everyday business practices, and as a constituent of the RESPECT Index, we see them as central to our understanding of social responsibility on the capital market.
