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Financial information
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.
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Segment performance
The segmental management model we have implemented enhances management efficiency, delivering cost and revenue synergies across the organization.
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Letter from the Vice-President of the Board
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.
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Business environment
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.
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Strategic objectives
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.
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Business model
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.
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Risk and opportunities
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.
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Key data 2014
With revenue of ca. PLN 28.5bn in 2014, we rank fourth in the group of 500 largest businesses in Poland.
Employees
STATEMENT
High competences and commitment of employees build our strength, and employee potential is reflected in the Company’s development.
Joanna Tyszka
Human Resources Office Director, Grupa LOTOS, CSR Strategy Leader in the Investment in Human Resources area
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. We value open communication, teamwork and partnership between the management and employees.
Employees are a company’s most important asset. Therefore, effective human resources management involves due care for the advancement of their skills and qualifications and creation of opportunities for the employees to support the values crucial to our corporate culture. The Code of Ethics, which has been in place since 2013, reflects this approach.
As provided for in our CSR strategy for 2012−2015, the objective of the LOTOS Group’s HR policy is to ensure the availability and development of highly qualified staff required for successful implementation of the LOTOS Group’s business strategy and enhancement of the corporate culture based on adopted values. We seek to ensure growth of our organization through continuous development and use of our employees’ potential.
In our human resources policy, we are guided by the principles of accessibility for employees, consistency across systems and solutions, flexibility in relation to business needs, and above all responsibility for work results. Our HR policy is long-term in nature and is based on good practices and best HR standards and tools, such as employer branding, responsible recruitment and employment, quick adaptation to the working environment, continuous improvement of employee training and professional advancement systems, creation of an engaging workplace, fair assessment, and appropriate motivation and rewarding of employees.
One of the key skill-raising tools are our in-house training programmes dedicated to specific employee groups, designed as part of the LOTOS Academy initiative, which has been carried out for 10 years. Our training and skill-raising activities are designed to improve the various competencies of our employees, identify talent across the organization, disseminate expert knowledge and foster increased involvement and job satisfaction.
Our staff education methods, techniques and tools include a broad range of open and closed training courses, both in hard and soft skills, which are run based on annual schedules in the form of conferences, seminars, workshops, symposia and forums. We rely on advanced education techniques and technologies, such as simulation games or e-learning.
Since accessibility is one of the main features of our training policy, the target groups of our training opportunities include senior and middle management, as well as supervisors, coordinators and specialists. Additionally, among the solutions applied are those based on coaching and mentoring, the latter chiefly in the production area, where skill learning is the longest process, requiring many years of experience. Our coaches and mentors are experienced instructors from the operating training team, who − by direct interaction − pass on their knowledge to younger colleagues working as equipment operators. Our employees are also familiar with knowledge sharing workshops, at which they can share knowledge relating to the organization’s various operational areas. In addition, at least twice a year, we hold seminars dedicated to management staff, to acquaint them with the most recent solutions in management by attractively integrating theory with practice.
To ensure the continuity of management in key positions at the LOTOS Group, we train successors within the framework of the Succession Programme, the Managers Academy and the Master Programme. In 2015, we intend to continue the initiatives already in place and develop objectives for a new advancement programme dedicated to employees with 3-5 years of service. We are going to promote the e-learning formula given the increasing percentage of employees aged 25-35, who prefer to use modern IT tools. Fostering of knowledge-sharing culture and age management will become essential components of our employee training policy.
The initiatives we carry out have earned us reputation of a reliable and highly valued employer propagating the principles of corporate social responsibility, as confirmed by the Friendly Recruitment Zone certificate awarded to Grupa LOTOS. The certificate is granted to employers recruiting their staff in compliance with the standards of the Code of Good Recruitment Practices. What is more, having audited our recruitment practices, the Polish Human Resources Management Association awarded us the Top Quality Human Resources Certificate, thus acknowledging the top quality standards of our human resources management processes.
Workforce of the LOTOS Group companies
Company | Dec 31 2012 | Dec 31 2013 | Dec 31 2014 |
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Grupa LOTOS − parent | 1,349 | 1,345 | 1,350 |
LOTOS Asfalt | 254 | 202 | 208 |
LOTOS Terminale 1 and its subsidiaries | 236 | 245 | 169 |
LOTOS Gaz in liquidation | 1 | 1 | 1 |
LOTOS Infrastruktura 2 and its subsidiaries | 75 | 75 | 152 |
LOTOS Kolej | 812 | 833 | 874 |
LOTOS Lab | 153 | 156 | 160 |
LOTOS Ochrona | 161 | 162 | 160 |
LOTOS Oil | 338 | 317 | 318 |
LOTOS Paliwa | 270 | 272 | 272 |
LOTOS Park Technologiczny | 1 | 1 | 1 |
LOTOS Petrobaltic and its subsidiaries | 553 | 557 | 624 |
LOTOS Serwis | 697 | 684 | 678 |
LOTOS Straż | 89 | 89 | 89 |
LOTOS-Air BP 3 | 26 | 44 | 50 |
1 Before 2013 LOTOS Czechowice.
2 Before 2013 LOTOS Jasło.
3 Before 2013 LOTOS Tank.
The LOTOS Group’s workforce by type of employment contract (2014) 4 − men
Company | Fixed-term contracts: full-time employees | Fixed-term contracts: part-time employees | Open-ended contracts: full-time employees | Open-ended contracts: part-time employees |
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Grupa LOTOS | 123 | 2 | 792 | 13 |
LOTOS Asfalt | 14 | 0 | 148 | 0 |
LOTOS Kolej | 156 | 9 | 621 | 1 |
LOTOS Oil | 22 | 0 | 203 | 1 |
LOTOS Paliwa | 22 | 0 | 111 | 0 |
LOTOS Petrobaltic and its subsidiaries | 121 | 3 | 365 | 2 |
LOTOS-Air BP | 32 | 0 | 10 | 0 |
4 Thanks to the implementation of the SAP HCM system across the LOTOS Group in 2013, we are gradually extending the scope of reported HR data. We intend to report HR data for all companies as of 2015.
The LOTOS Group’s workforce by type of employment contract (2014) – women
Company | Fixed-term contracts: full-time employees | Fixed-term contracts: part-time employees | Open-ended contracts: full-time employees | Open-ended contracts: part-time employees |
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Grupa LOTOS | 63 | 1 | 351 | 5 |
LOTOS Asfalt | 9 | 0 | 37 | 0 |
LOTOS Kolej | 23 | 1 | 63 | 0 |
LOTOS Oil | 9 | 0 | 83 | 0 |
LOTOS Paliwa | 34 | 0 | 102 | 3 |
LOTOS Petrobaltic and its subsidiaries | 32 | 1 | 76 | 1 |
LOTOS-Air BP | 4 | 0 | 4 | 0 |
The LOTOS Group’s workforce by type of employment contract (2014) – total number of employees
Company | Fixed-term contracts | Open-ended contracts |
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Grupa LOTOS | 189 | 1,161 |
LOTOS Asfalt | 23 | 185 |
LOTOS Kolej | 189 | 685 |
LOTOS Oil | 31 | 287 |
LOTOS Paliwa | 56 | 216 |
LOTOS Petrobaltic and its subsidiaries | 157 | 444 |
LOTOS-Air BP | 36 | 14 |