Grupa LOTOS SA

04/30/2019 | Press release | Distributed by Public on 04/30/2019 02:52

LOTOS posts strong first-quarter results

Clean LIFO-based EBITDA reported by the LOTOS Group for the first quarter of 2019 is PLN 632m, a 17% increase year on year. The LOTOS refinery in Gdańsk operated at full capacity during the first three months of the year.

  • Revenue: PLN 6.7bn
  • Net profit: PLN 172.5m
  • Clean LIFO-based EBITDA: PLN 632m
  • Crude oil and natural gas production: 1.85 mboe
  • 2P reserves: 88 mboe
  • Crude throughput: 2.61m tonnes
  • Volume of products sold in the downstream segment: 2.7m tonnes
  • Cash flows from operating activities: PLN 494.5m

The Group's performance in the first quarter of 2019 was most influenced by conditions in the commodity markets, namely falling oil and gas prices and changes in crack spreads for core petroleum products (a 75.1% yoy drop for gasoline, a 16.3% yoy increase for diesel oil, a 64.6% yoy rise for heavy fuel oil), and a stronger US dollar.

UPSTREAM SEGMENT

Clean EBITDA in upstream was PLN 205.6m, with clean EBIT at PLN 153.1m. Hydrocarbon sales increased 4.2% year on year.

In the first quarter of 2019, LOTOS Petrobaltic S.A. continued to produce oil and gas from the B3 field in the Baltic Sea at an average rate of 1,686 bbl/d.

Daily oil production in Norway, Poland and Lithuania amounted to ca. 20,500 boe in the first quarter. In the entire quarter, LOTOS produced almost 1.85 mboe in total.

DOWNSTREAM SEGMENT

In the first quarter of 2019, the LOTOS refinery in Gdańsk maintained stable operation and ran at maximum capacity, maintaining oil throughput at 2,610,500 tonnes (up 2% year on year). Clean LIFO-based EBITDA for the first quarter of 2019 was PLN 433.3m (up 33.9% year on year).

As at March 31st 2019, the progress of design, procurement, construction and assembly work under the EFRA Project was 99.6%. In the first quarter of 2019, construction and commissioning work continued on the individual facilities, involving also auxiliary systems and facilities as well as general infrastructure.

Total gasoline sales by the LOTOS Group fell 4.5% year on year as a result of production optimisation measures taken with a view to maximising refining margin. Considering the growing demand for diesel oil, the Group increased domestic sales of diesel by 11% year on year in the first quarter.

Sales at CODO stations grew 11% year on year. In the first three months of 2019, retail posted clean EBITDA of PLN 63.5m. As at the end of the first quarter of 2019, the LOTOS chain comprised 493 service stations (including 307 owned stations and 186 partner stations).

INNOVATION

In early 2019 Grupa LOTOS S.A. signed another forward contract for the supply of US crude oil, to be delivered by sea through Naftoport.

Grupa LOTOS and PGNiG completed two LNG commercial bunkering operations for seagoing ships. These were the first such operations carried out at sea ports in Gdańsk and Gdynia.

Grupa LOTOS will also work with the Gdańsk University of Technology on research and development projects in the area of low-emission energy transport and storage. The company's plans include the development of equipment prototypes that could be implemented on an industrial scale.

For more information on the LOTOS Group's financial results for the first quarter of 2019, visit www.inwestor.lotos.pl.

External Communication Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, phone: (+48) 58 308 72 29, (+48) 58 308 70 44, email: [email protected]