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.
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.
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.
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.
Key data 2014
With revenue of ca. PLN 28.5bn in 2014, we rank fourth in the group of 500 largest businesses in Poland.
Integrated Annual Report 2014
Consolidated statement of financial position
Consolidated statement of financial position for 2014
|PLN ’000||Note||Dec 31 2014||Dec 31 2013||Jan 1 2013|
|Property, plant and equipment||13||9,485,654||10,009,073||9,644,600|
|Other intangible assets||15||553,687||658,797||496,386|
|Equity-accounted joint ventures||16||99,599||129,798||85,214|
|Deferred tax assets||10.3||1,488,901||924,534||1,121,314|
|Other non-current assets||18||107,288||210,981||107,232|
|Total non-current assets||11,781,817||11,979,871||11,501,434|
|- including mandatory stocks||19.2||2,243,655||4,250,530||4,353,207|
|Current tax assets||59,596||76,711||90,566|
|Derivative financial instruments||28||4,430||73,935||121,334|
|Other current assets||18||1,419,034||337,071||434,400|
|Cash and cash equivalents||20||348,215||495,839||266,104|
|Total current assets||7,154,905||8,304,089||8,501,146|
|Non-current assets held for sale (or disposal groups)||17||10,435||794||2,428|
|EQUITY AND LIABILITIES|
|Cash flow hedging reserve||23||(412,535)||61,019||(36,801)|
|Exchange differences on translating foreign operations||25||65,335||20,234||33,878|
|Equity attributable to owners of the Parent||8,258,288||9,189,307||9,065,725|
|Borrowings, other debt instruments and finance lease liabilities||27||4,495,562||4,496,190||4,462,098|
|Derivative financial instruments||28||62,626||52,876||88,325|
|Deferred tax liabilities||10.3||55,527||275,823||313,716|
|Employee benefit obligations||29||185,451||151,425||129,862|
|Other liabilities and provisions||30||657,563||705,688||405,687|
|Total non-current liabilities||5,456,729||5,682,002||5,399,688|
|Borrowings, other debt instruments and finance lease liabilities||27||2,168,106||1,715,196||2,094,602|
|Derivative financial instruments||28||135,917||21,277||91,000|
|Current tax payables||4,667||8,823||5,752|
|Employee benefit obligations||29||84,038||103,973||109,971|
|Other liabilities and provisions||30||1,137,310||1,168,650||1,068,163|
|Total current liabilities||5,222,877||5,413,156||5,538,896|
|Liabilities directly associated with non-current assets (or disposal groups) held for sale||17; 29.1||9,088||-||-|
|Total equity and liabilities||18,947,157||20,284,754||20,005,008|
The Notes to the consolidated financial statements are an integral part of the statements.
(This is a translation of a document originally issued in Polish)
- Financial highlights - consolidated the LOTOS Group
- Consolidated Financial Statements for 2014
- Auditor’s opinion
- Auditor’s report
- Management's discussion and analysis
- Interactive LOTOS Databook