Grupa LOTOS intends to continue the investment projects envisioned in the ‘Efficiency and Growth 2013-2015’ programme. The projects, which may be modified to take into account the challenging market conditions, will be financed with proceeds from last year's share offering. The programme will improve the Company's competitiveness and strengthen its position on the market, thereby benefiting the Grupa LOTOS shareholders and the entire Polish economy.

Grupa LOTOS was able to raise close to PLN 1bn in 2014 in what was the year's largest public offering on the WSE.

The LOTOS offering was carried out amid plummeting oil prices, which shrank to their five-year low, and the appreciation of the US dollar against the Polish złoty. Not only were all of the offered shares subscribed for, but the demand was nearly twice the supply.

The State Treasury, the largest shareholder of Grupa LOTOS S.A., acquired shares with a value of PLN 529.5m, retaining its equity interest of 53.19%. The purchase was financed from the Entrepreneurs’ Restructuring Fund.

The successful public offering and sound financial standing of Grupa LOTOS, one of the mainstays of Poland's energy security, is good news for the country's economy. The development programme implemented by the Company will also benefit the Province of Gdańsk, improving its budget and supporting the local job market by bringing new shipbuilding and industrial construction contracts.

- The condition of Grupa LOTOS is of key importance to the economy of the Gdańsk Province, which is why we are happy to see the Company pursue new projects there. We will strive to make the region as attractive as possible for investment - said Tadeusz Aziewicz, chairman of the Polish Parliament's State Treasury Committee. - The latest equity issue clearly demonstrates that our management strategy is an effective one.

 - We are proud that the public offering, whose value came close to PLN 1bn and which was the largest transaction of this type on the WSE in 2014, was a complete success. This is a sign of support for the Company's strategy and Management Board and an indication that our shareholders share our vision of dynamic growth for the Company - said Paweł Olechnowicz, President of the Grupa LOTOS Management Board.

The issue proceeds will be applied towards co-financing of the EFRA Project (i.e. construction of a delayed coking unit with auxiliary infrastructure at the refinery in Gdańsk).

The facility will intensify the processing of crude oil and improve the Company's refining margin by some USD 2/bbl. Grupa LOTOS estimates the total cost of the EFRA Project, including costs to service the project's financing during the construction stage and costs to maintain reserve deposits required by the banks, at ca. PLN 2.34bn. The issue proceeds are expected to contribute PLN 530m−650m to the project's financing. The EFRA Project is to be completed in the first quarter of 2018.

The second objective of the issue is to co-finance the development of the B4/B6 gas fields in the Baltic Sea, which hold approximately 4 bcm of natural gas. Grupa LOTOS total expenditure on the development of the fields is estimated at ca. PLN 800m, given the Company's interest in the project of 51%. The Company intends to apply PLN 350m−470m from the issue proceeds towards co-financing of the project. Production from the B4/B6 fields is planned to commence at the end of 2017 or the beginning of 2018.

- The Management Board of Grupa LOTOS intends to extend the value chain and increase its product margins, which has prompted its decision to allocate some of the issue proceeds to construction of a delayed coking unit under the EFRA project -  Krzysztof Walenczak, Managing Director at Société Générale Polska. - During Grupa LOTOS roadshow, we met with several dozen investors from Poland and other European countries, who all agreed that the Company's investment plans for the refining area were the right step and an economically viable one - he added.

- The success of Grupa LOTOS's public offering proves that a well-designed investment programme is certain to win the support of investors, both institutional and individual. Given the challenging market environment, the success is all the more commendable - said Filip Paszke, head of Dom Maklerski PKO BP.

Communications Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, tel. (+48) 58 308 87 31, (+48) 58 308 83 88, e-mail: media@grupalotos.pl