LOTOS Group releases 2018 financial report
Published by Tom Mostyn,
Editorial Assistant
Hydrocarbon Engineering,
The financial performance of the LOTOS Group in 2018 confirms its robust condition. The company delivered a consolidated net profit of PLN 1.6 billion and adjusted LIFO-based EBITDA of PLN 3.1 billion, the highest figure on record. Revenue came in at PLN 30.1 billion, up 24.5% on 2017, and CAPEX spending was PLN 1 billion. The refinery processed the largest amount of crude oil in its history – 10.8 million t. At the end of 2018, the LOTOS share price on the Warsaw Stock Exchange came close to PLN 90 per share. For the second year in a row, the company paid dividend.
The total volume of petroleum products, merchandise and materials sold in 2018 by the LOTOS Group increased by approximately 5.7% on 2017. The strongest growth was reported for diesel oils and heavy petroleum products (bitumens and heavy fuel oil).
The downstream segment benefited from the high model refining margin, which amounted to US$7.41/bbl for the entire 2018.
In 2018, the Grupa LOTOS refinery operated at full capacity and processed 10.8 million t of crude oil, achieving a record throughput. The volume of processed oil was 12% higher than the year before. As in previous years, Russian Urals (REBCO) was the main type of crude oil processed by the LOTOS Group.
The volume of products sold by the LOTOS Group in the downstream segment in 2018 totalled 11.69 million t, which is the highest sales volume ever recorded by the group.
Like in the previous years, diesel oil had the largest share in the total sales volume. The LOTOS Group sold 5.47 million t of diesel oil, which accounted for 46.8% of total sales. The second largest item in the sales structure was gasolines, with a 14.3% share. The company sold 1.67 million t of gasoline, up 7.2% year-on-year. The last product group accounting for more than 10% of the LOTOS Group’s total sales volume was heavy products. The company sold 2.11 million t of heavy products in 2018, up 11.5% on 2017.
In 2018, the LOTOS Group’s downstream segment sold 8.61 million t of products in Poland (2017: 8.37 million t) and exported 3.08 million t (2017: 2.56 million t). Domestic sales rose 3%.
2018 was also another year of growth in the domestic sales of aviation fuel, driven by higher sales posted by the joint venture LOTOS-Air BP at Polish airports. In 2018, the company significantly increased its operating scale in Poland, and reported a 16% rise in sales of aviation fuel.
Export sales rose 20% compared with 2017, chiefly on the back of higher oil processing volumes. In 2018, the LOTOS Group’s share in the domestic fuel market was 31.4%.
Read the article online at: https://www.hydrocarbonengineering.com/refining/19032019/lotos-group-releases-2018-financial-report/
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