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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.
Key data 2014
GRUPA LOTOS – selected information*
| FINANCIALS | Unit | For the year ended Dec 31 2014 |
For the year ended Dec 31 2013 |
Change |
|---|---|---|---|---|
| (restated) | ||||
| Revenue | PLN ‘000 | 26,243,106 | 26,697,179 | -2% |
| Operating profit/(loss) | PLN ‘000 | (1,294,183) | (352,799) | - |
| Pre-tax profit/(loss) | PLN ‘000 | (1,545,869) | (77,525) | - |
| Net profit/(loss) | PLN ‘000 | (1,285,910) | (14,774) | - |
| Total comprehensive income/(loss) | PLN ‘000 | (1,762,097) | 83,242 | -2,217% |
| Net cash from operating activities | PLN ‘000 | 561,327 | 733,621 | -23% |
| Net cash from investing activities | PLN ‘000 | (137,277) | 51,026 | -369% |
| Net cash from financing activities | PLN ‘000 | (392,823) | (597,916) | - |
| Total net cash flow | PLN ‘000 | 31,227 | 186,731 | -83% |
| Basic earnings/(loss) per share | PLN | (8.87) | (0.10) | - |
| Charitable donations | PLN ‘000 | 705 | 1,811 | -61% |
| Pro-environmental investment | PLN ‘000 | 16,040 | 63,012 | -74.5% |
| FINANCIALS | Unit | As at Dec 31 2014 |
As at Dec 31 2013 |
Change |
| Total assets | PLN ‘000 | 14,339,743 | 15,559,412 | -8% |
| Equity | PLN ‘000 | 6,346,776 | 7,135,595 | -11% |
| NON-FINANCIAL DATA | Unit | Year ended Dec 31 2014 |
Year ended Dec 31 2013 |
Change |
| (comparative data) | ||||
| Employees 1/ | Number of employees | 1,343 | 1,334 | 0.7% |
| Employee turnover | % | 9.55 | 11.8 | -2.25 pp. |
| Lost Time Injury Frequency LTIF index (per 1 million hours worked) 2/ | 0.9 | 4.5 | - | |
| Total water consumption | m3 | 3,610,693 | 3,737,302 | -3.4% |
| CO2 emissions | thousand tonnes per year | 1,820 | 1,689 | 7.8% |
THE LOTOS GROUP – selected consolidated data**
| FINANCIALS | Unit | For the year ended Dec 31 2014 |
For the year ended Dec 31 2013 |
Change |
|---|---|---|---|---|
| (restated) | ||||
| Revenue | PLN ‘000 | 28,501,887 | 28,559,165 | 0% |
| Operating profit/(loss) | PLN ‘000 | (1,393,008) | 166,600 | -936% |
| Pre-tax profit/(loss) | PLN ‘000 | (2,123,715) | (58,676) | - |
| Net profit/(loss) | PLN ‘000 | (1,466,372) | 39,428 | -3,819% |
| Net profit/(loss) attributable to owners of the Parent | PLN ‘000 | (1,466,326) | 39,415 | -3,820% |
| Net profit/(loss) attributable to non-controlling interests | PLN ‘000 | (46) | 13 | -454% |
| Total comprehensive income/(loss) | PLN ‘000 | (1,902,137) | 123,450 | -1,641% |
| Total comprehensive income/(loss) attributable to owners of the Parent | PLN ‘000 | (1,902,096) | 123,439 | -1,641% |
| Total comprehensive income attributable to non-controlling interests | PLN ‘000 | (41) | 11 | -473% |
| Net cash from operating activities | PLN ‘000 | 1,380,488 | 1,416,277 | -3% |
| Net cash from investing activities | PLN ‘000 | (958,338) | (931,051) | - |
| Net cash from financing activities | PLN ‘000 | (597,271) | (243,864) | - |
| Total net cash flow | PLN ‘000 | (175,121) | 241.362 | -173% |
| Basic earnings/(loss) per share | PLN | (10.11) | 0.28 | -3,711% |
| Charitable donations | PLN ‘000 | 1,169 | 2,131 | -45% |
| Pro-environmental investment | PLN ‘000 | 17,665 | 66,348 | -73% |
| FINANCIALS | Unit | As at Dec 31st 2014 |
As at Dec 31st 2013 |
Change |
| Total assets | PLN ‘000 | 18,947,157 | 20,284,754 | -7% |
| Equity attributable to owners of the Parent | PLN ‘000 | 8,258,288 | 9,189,307 | -10% |
| Non-controlling interests | PLN ‘000 | 175 | 289 | -39% |
| Total equity | PLN ‘000 | 8,258,463 | 9,189,596 | -10% |
| NON-FINANCIAL DATA | Unit | Year ended Dec 31 2014 |
Year ended Dec 31 2013 |
Change |
| (comparative data) | ||||
| Employees 1/ | Number of employees | 4,789 | 4,773 | 0.33% |
| Lost Time Injury Frequency LTIF index (per 1 million hours worked) 2/ | 2.3 | 4.4 | - | |
| Share in the fuel market | % | 33.1 | 33.2 | 0.1 pp |
| Crude oil production | thousand tonnes | 305.2 | 219.1 | 39.3% |
| Natural gas production | million Nm3 | 239.2 | 16.8 | 1,324% |
* For information on Grupa LOTOS’ financial performance, please see our financial statements. (See more)
** For information on the LOTOS Group’s financial performance, please see the LOTOS Group’s financial statements. (See more)
1/ Average annual headcount.
2/ LTIF – number of occurrences resulting in inability to work x 106 / number of hours worked, for the average annual headcount.
