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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.

Membership in organizations
We are a member of Polish and international trade, business and specialist associations. Through these memberships, we can create a platform for cooperation between energy sector companies, both in Poland and in Europe, actively participate in legislation processes in Poland and in the European Union as well engage in the work on promoting best CSR practices.
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Trade associations
Central Europe Energy Partners, CEEP
We are a founding member of CEEP, an international non-profit organization with a regional coverage, registered in 2010 in Belgium, with offices in Brussels and Berlin. CEEP represents energy-intensive companies and the wider energy sector (including oil, gas, coal, power, power networks, renewable energy sources, nuclear energy, etc.) from Central Europe. CEEP’s stated mission is to promote the integration of Central Europe’s energy and energy-intensive sectors within the framework of the common EU energy and security policy applicable to these sectors. The association brings together 25 members from Poland, Lithuania, the Czech Republic, Romania, Croatia and Ukraine. At the end of 2014, CEEP members had a total headcount of around 300,000 employees and total turnover of close to EUR 50bn. CEEP is in advanced talks with potential new members from other Central European countries.
Grupa LOTOS CEO Paweł Olechnowicz serves as Chairman of the CEEP Board of Directors.
European Petroleum Refiners Association, AISBL – FuelsEurope - CONCAWE
In order to improve the EU refining industry’s efficiency and cut operating costs of two large European industry associations CONCAWE and EUROPIA, a single entity was founded with common administration and with two separate yet complementary divisions:
- FuelsEurope, which since June 2014 has been the new name of the European Petroleum Refiners Association (EUROPIA), registered in 1989 in Brussels, which represents pure-play oil refiners from the EU in dealings with EU institutions,
- CONCAWE (Conservation of Clean Air and Water in Europe), founded in 1963 by leading oil companies to carry out detailed and specialist research on environmental, health and safety issues relevant to the oil industry. CONCAWE is currently involved in research related to REACH legislation.
The members of European Petroleum Refiners Association are all the 42 refinery operators located within the European Economic Area. Its mission is to promote economically and environmentally sustainable refining, supply and use of petroleum products in the EU, by providing input and expert advice to EU institutions, Member State governments and the wider community, thus contributing in a constructive way to development and implementation of stable EU policies and regulations.
Polska Organizacja Przemysłu i Handlu Naftowego, POPiHN (Polish Organization of Oil Industry and Trade)
We have been the founding member of the Polish Organization of Oil Industry and Trade since 2003. One of the key objectives of our activity within POPIHN is the sustainable creation and development of a competitive fuel market in Poland, which we achieve by promoting business standards compliant with EU law and equal rights for all participants in the Polish fuel market. These objectives are pursued by initiating own draft bills, as well as providing opinions and comments on draft bills submitted by Polish legislative bodies and on legal acts implementing EU law. Our POPiHN membership allows us to present our stance on various issues directly to members of the parliament, government and government agencies.
Grupa LOTOS has its representatives on the POPiHN management board.
Stowarzyszenie Naukowo-Techniczne Inżynierów i Techników Przemysłu Naftowego i Gazownictwa, SITPNiG (Polish Association of the Oil and Gas Industry Engineers and Technicians)
Through our subsidiaries LOTOS Petrobaltic and LOTOS Terminale we are a supporting member of SITPNiG, an association which furthers the interests of the oil and gas industry and of its members by promoting social value in public projects. The association inspires scientific, technical and organizational projects that benefit the national economy and help deliver environmental protection and sustainable development goals. SITPNiG’s aim is to raise the professional qualifications of its members, advance knowledge, technical culture and environmental awareness, and educate the public on the tradition and history of the oil and gas industry.
Windsor Energy Group, WEG
Windsor Energy Group, which we joined in 2009, is an independent think-tank based in London that addresses issues related to the building of security and order within the international energy sector, with a particular focus on the oil and gas and alternative energy subsectors. WEG consists of former policy makers, ambassadors to oil-producing countries, government advisers, and CEOs of oil exploration and production companies. Our membership in WEG is a vital part of our activities in supporting the development of the European energy sector and advocating the position of energy companies from Central Europe in the EU arena.
Paweł Olechnowicz, President of the Grupa LOTOS Board, is a member of WEG’s International Advisory Panel.
World Petroleum Council – Polish National Committee
We are part of the Polish National Committee. Formed in 1933, the World Petroleum Council is the only international organization which represents all branches of the oil industry. Its main purpose is to facilitate dialogue amongst internal and external stakeholders aimed at seeking solutions to key technical, social, environmental and management challenges. WPC includes 60 member countries, which account for 95% of oil and gas produced and consumed worldwide.
Organizacja Polskiego Przemysłu Poszukiwawczo-Wydobywczego, OPPPW (Polish Exploration and Production Industries Organization)
We are a founding member of the Polish Exploration and Production Industries Organization, whose focus is on representing the Polish upstream industry in the public dialogue on issues concerning the oil and gas sector. OPPPW actively participates in the social dialogue and provides a platform for sharing knowledge and experiences between national and international experts on conventional and unconventional hydrocarbons resources. The organization was established in 2010.
Atlantic Council
Since 2013, we have been a member of Atlantic Council, a US-based organization promoting constructive leadership and engagement in international affairs in the areas of energy, environment, global economy and economics, as well as cooperation within the Atlantic Community. Through the papers it writes, the programmes it runs and the communities it builds, the Council shapes policy choices and strategies to create a more secure and prosperous world. The Atlantic Council is among the most recognised think-tanks in Washington, known for its extensive experience in the field of transatlantic cooperation, but first and foremost for its effective advocacy policies serving to influence key decision makers.
- Business associations
- CSR advocacy groups
- Specialist associations