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 Organization
and its Report
- Ethics and corporate
- Risks and opportunities
- Business strategy
Evaluation of the system
We evaluate the ERM system’s effectiveness every year, as part of our organizational maturity assessment, the conclusions and recommendations of which are used to further improve the system. A final assessment score, expressed as a percentage, reflects:
- the degree to which the system designed for the Company complies with best practices,
- compliance with planned functions.
ERM evaluation as part of the annual organizational maturity assessment
|Year||‘Planned’ score [%]||‘Compliance with planned’ score [%]||Total score* [%]|
* The total is the product of the ‘planned’ and ‘compliance with planned’ scores.