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.
17. Non-current assets (or disposal groups) held for sale
|PLN ’000||Dec 31 2014||Dec 31 2013|
As at December 31st 2014, two helicopters were classified as non-current assets held for sale. As at December 31st 2013, non-current assets held for sale comprised two residential units with the attached interest in land, which were sold by the Group in H1 2014. Cash proceeds from the sale of the residential units in 2014 amounted to PLN 1,805 thousand and were presented in the statement of cash flows under Sale of property, plant and equipment and other intangible assets.
As at December 31st 2014, disposal groups comprised the Jasło and Czechowice-Dziedzice Branches, operating as separate, organised parts of business, offering services in the area of maintenance of mechanical and electrical operations and controlling devices, overhaul and repair services, and technical tests and analyses. The Group’s liabilities related to these assets, amounting to PLN 9,088 thousand (see Note 29.1), were recognised in the statement of financial position under Liabilities directly associated with non-current assets (or disposal groups) held for sale. The planned sale of the assets follows from the 2013−2015 Efficiency and Growth Programme.
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