The past year ushered in a series of challenges for the companies in the fuel sector. The decisions made by us have demonstrated that we are able to take rapid steps to adapt to a demanding environment and ensure the desired profitability for our projects.
The segmental management model we have implemented enhances management efficiency, delivering cost and revenue synergies across the organization.
2014 ushered in a series of challenges for the companies in the fuel sector. The decisions made by the LOTOS Group have demonstrated that we are able to take rapid steps to adapt to a demanding environment and ensure the desired profitability for our projects.
The key factor that had a strong impact on both the global and Polish petroleum markets in 2014, with significant consequences for the LOTOS Group’s performance, was the price of crude oil, which also determined the price of petroleum products.
The LOTOS Group’s Strategy is designed to strengthen our position as a strong, innovative and efficient business which plays a major role in ensuring national energy security.
Our operations consist in crude oil production and processing, as well as wholesale and retail sale of petroleum products, among which are: fuels (unleaded gasoline, diesel oil and light fuel oil), heavy fuel oil, bitumens, aviation fuel, naphtha, propane-butane LPG and base oils.
At the LOTOS Group, we identify a range of diverse risks, which may affect all areas of our business. The key risks in terms of their impact on our operations are the financial risks as well as risks affecting the exploration and production area. In the analysis of the risks, we also factor in issues related to sustainable development.
With revenue of ca. PLN 28.5bn in 2014, we rank fourth in the group of 500 largest businesses in Poland.
The downstream segment’s key growth-oriented task is the EFRA Project, which provides for the construction of a delayed coking unit (DCU) with auxiliary infrastructure. Following the project’s completion, crude processing efficiency will be enhanced and the annual output of high-margin products will grow by 900 thousand tonnes.
2014 was yet another record year for the Grupa LOTOS refinery in terms of the amount of crude oil processed (8,702.6 thousand tonnes – 2013; 9,544.3 thousand tonnes – 2014)
The latest addition to the LOTOS Group’s product portfolio, Warm Mix Asphalts, or WMAs, used in construction of durable and environmentally-friendly road surfaces, are an innovative family of products which produce measurable financial and environmental benefits
Exploration and Production achievements
In 2014, the LOTOS Group’s hydrocarbon production volumes doubled. We produce crude oil from under the Baltic Sea bed, as well as from the onshore deposits in Lithuania and in the Norwegian Continental Shelf.
2014 was another consecutive year in which our share in the wholesale fuel market exceeded the strategic target of 30%. We are a key fuel supplier for most international service station chains operating in Poland.
One of the fastest growing service station chains in Poland operates under the LOTOS brand
Strengthened presence on the retail market by an increase in our share from 8.5% in 2013 to 9% at the end of 2014
The LOTOS brand among the 10 most valuable Polish brands
In 2014, we put particular focus on giving the LOTOS Group appropriate foundations for delivering its growth objectives. The Company’s share capital was increased by almost PLN 1bn through a rights issue of shares.
Grupa LOTOS at the very top of the list of 500 largest companies in Poland in terms of sales revenue generated in 2014
According to the Grand Jury of the Best Annual Report competition, the Integrated Annual Reports of Grupa LOTOS exemplify publications which can serve as a basis for investment decisions at a relatively minimal risk
awarded to Grupa LOTOS for the highest share offering value in 2014
High competences and commitment of employees build our strength, and employee potential is reflected in the Company’s development. At LOTOS, our concern for professional advancement and improvement of employees’ skills and expertise goes hand in hand with our efforts to foster a good working atmosphere and friendly relations between colleagues.
The ‘Friendly Recruitment Zone’ award for LOTOS as an Employee recruiting staff in compliance with the Code of Good Recruitment Practices
The 10th anniversary of the ‘LOTOS Academy’ employee training and development project implemented to build a modern and competitive organization was marked in 2014
In 2014, Grupa LOTOS signed the UN Global Compact’s new initiative aimed to prevent all forms of corruption
Through mitigation of our environmental impact, implementation of solutions reducing consumption of resources, cooperation with academic centres and open dialogue with all groups of stakeholders, we have been fulfilling the obligations resulting from the Declaration of Polish Businesses for Sustainable Development signed by LOTOS.
Reduction of carbon emissions from Grupa LOTOS’ production facilities and its CHP plant by more than the target set under the strategic objective. (actual emission at 30.0 kg CO2/CWT against the target of 33.6 CO2/CWT)
The voluntary environmental survey on the premises of the Company’s refinery in Gdańsk and its surroundings is one of the first projects on such a scale to be completed in Poland
The LOTOS Group’s pro-environmental investment brings measurable benefits to people and the natural environment.
In 2014, we ran a number of initiatives to support local communities and entrepreneurship in close vicinity of the LOTOS Group’s plants. Organized in the form of programmes implemented consistently for several years and compatible with our competence areas defined in consultation with stakeholders, they can make a real contribution to improving some aspects of life vital to the local communities.
2014 was an outstanding year for Grupa LOTOS in terms of the number of CSR programmes and activities undertaken under the cross-sectoral cooperation model
4,000 people trained under the ‘LOTOS Safety Belt Champions’ programme on how to properly fasten their seatbelts and how to select a child safety seat
Products and services at LOTOS service stations offered at more affordable prices to almost 630,000 Polish families with many children