Value growth of the LOTOS Group in 2015
2015 was a landmark year in the nearly 40-year history of the LOTOS Group. We were able to achieve the key strategic goals for the years 2011−2015 in our entire value chain. We are stronger while entering a new stage of growth, and we aim to achieve significant growth of the company value, further enhance Poland’s security in the field of energy and help with the industrialization of the national economy. Our work towards implementation of these plans will be based on innovation, further development, improved efficiency and activities which support our business environment.
Effects of strategy implementation in 2015
maximized integrated margin → increased production capacities and better operational efficiency → good operating results
* EV (Enterprise Value) − market capitalization plus debt, non-controlling interests, and preferred shares, minus cash and cash equivalents
Grupa LOTOS - basic data*
| FINANCIAL DETAILS | Unit |
For year finished 31 December 2015 |
For year finished 31 December 2014 |
|---|---|---|---|
| Revenue | thousand PLN | 20,482,298 | 26,243,106 |
| Operating loss | thousand PLN | 183,757 | (1,294,183) |
| Loss before tax | thousand PLN | -20,713 | (1,545,869) |
| Net loss | thousand PLN | -37,102 | (1,285,910) |
| Total income/(loss) | thousand PLN | -325,41 | (1,726,097) |
| Net cash flows from operating activities | thousand PLN | 653,963 | 561,327 |
| Net cash flows from investment activities | thousand PLN | -689,725 | -137,277 |
| Net cash flows from financial activities | thousand PLN | 192,758 | -329,823 |
| Total net cash flows | thousand PLN | 156,996 | 31,227 |
| Net basic profit per one share | PLN | -0.2 | -8.87 |
| Donations for social purposes | thousand PLN | 1,066 | 705 |
| Eco-friendly investments | thousand PLN | 72,211 | 16,040 |
| FINANCIAL DETAILS | Unit | As at 31 December 2015 | As at 31 December 2014 |
|---|---|---|---|
| Total shares | thousand PLN | 13,909,915 | 14,339,743 |
| Equity | thousand PLN | 6,020,050 | 6,346,776 |
| OTHER DETAILS | Unit |
For year finished 31 December 2015 |
For year finished 31 December 2014 (comparative data) |
|---|---|---|---|
| Employees1/ | 1.351 | 1,343 | |
| Employee turnover 2/ | % | 11.10 | 9.55 |
| LTIF incidence rate (per 1 million hours worked) 3/ | - | 6.0 | 0.9 |
| Total water intake | m3 | 3,707,329 | 3,610,693 |
| CO2 emission | Thousand tonnes/year | 1,903 | 1,820 |
LOTOS Group – basic consolidated data**
| FINANCIAL DETAILS | Unit |
For year finished 31 December 2015 |
For year finished 31 December 2014 |
|---|---|---|---|
| Revenue | Thousand PLN | 22,709,442 | 28,501,887 |
| Operating profit/(loss) | Thousand PLN | 423,398 | (1,393,008) |
| Loss before tax | Thousand PLN | -195,274 | (2,123,715) |
| Net profit/(loss) | Thousand PLN | -263,3 | (1,466,372) |
| Net profit/(loss) allocated to the shareholders of the Parent Company | Thousand PLN | -263,263 | (1,466,326) |
| Net profit/(loss) allocated to non-controlling interest | Thousand PLN | -37 | -46 |
| Total income/(loss) | Thousand PLN | -544,925 | (1,902,137) |
| Total income/(loss) allocated to the shareholders of the Parent company | Thousand PLN | -544,888 | (1,902,096) |
| Total income allocated to non-controlling interest | Thousand PLN | -37 | -41 |
| Net cash flows on operating activities | Thousand PLN | 1,488,069 | 1,380,488 |
| Net cash flows on investment activities | Thousand PLN | (1,161,975) | -958,338 |
| Net cash flows on financial activities | Thousand PLN | 114,719 | -597,271 |
| Net total cash flows | Thousand PLN | 440,813 | -175,121 |
| Net basic profit/(loss) per one share | PLN | -1.42 | -10.11 |
| Donations for social purposes | Thousand PLN | 1,866 | 1,169 |
| FINANCIAL DETAILS | Unit | As at 31 December 2015 | As at 31 December 2014 |
|---|---|---|---|
| Total shares | Thousand PLN | 19,169,332 | 18,947,157 |
| Equity allocated to shareholders of the Parent Company | Thousand PLN | 7,712,060 | 8,258,288 |
| Non-controlling interest | Thousand PLN | 138 | 175 |
| Total equity | Thousand PLN | 7,712,198 | 8,258,463 |
| OTHER DETAILS | Unit of measure |
For year finished 31 December 2015 |
For year finished 31 December 2014 |
|---|---|---|---|
| Employees 1/ | 4,965 | 5,024 | |
| LTIF Incidence rate (per 1 million hours worked) 3/ | - | 3.4 | 2.3 |
| Share in fuel market | % | 31.2 | 33.1 |
| Crude oil production 4/ | Thousand tonnes | 542,2 | 305.2 |
| Gas production 4/ | Million m3 | 999,6 | 239.2 |
* For information on Grupa LOTOS’ financial performance, please see our financial statements. (See more)
** For information on the LOTOS Group’s financial performance, please see the LOTOS Group’s financial statements. (See more)
1/ Average annual headcount.
2/ The ratio of the sum of the number of employees and workers made redundant in the year to the average employment in persons.
3/ LTIF – number of occurrences resulting in inability to work x 106 / number of hours worked, for the average annual headcount.
4/ Including annual production of Sleipner assets.
Key projects of the LOTOS Group
Acquisition of Sleipner assets in Norway
- Project cost: PLN 583.4m
- 2.5-times increase in hydrocarbons production per day
- Daily production volumes at the end of 2015: 16 thousand boe
Development of the B8 field on the Baltic Sea
- The largest crude oil resources in the Polish zone of the Baltic Sea: 3.5 million tonnes of crude oil, i.e. 28 million bbl (2P reserves)
- Estimated test production in 2016: 3 thousand bbl per day
- Estimated full-scale production as of autumn 2017: 5 to 6 thousand bbl per day
- Market position: the third largest oil production facility in Poland
Development of the B4/B6 fields on the Baltic Sea, a joint project with CalEnergy
- Proved reserves: 4.3 bcm of natural gas (2C resources)
- Estimated production: 350 mcm per year (ca. 6 thousand boe per day)
- Scheduled launch of production: 2019
EFRA project– Delayed Coking Unit (DCU)
- Estimated capex: PLN 2.3bn
- Increase in refining margin of USD 2 per barrel* thanks to higher share of middle distillates in product mix
- Production: 900,000 tonnes more of incremental volumes of high-margin products per year (primarily diesel oil and aviation fuel)
- Scheduled completion date: 2018
- Market position: the Gdańsk plant is going to be one of the most advanced refineries in the world.
Expansion of the LOTOS service station chain
- 10.5% share in Poland’s retail market (in terms of sales volume) at the end of 2015
- Number of service stations at the end of 2015: 476
- By the end of 2016, the number of LOTOS service stations is planned to exceed 500
