With a view to updating the information published by Grupa LOTOS S.A. (the “Company”) in Current Report No. 2/2018 of January 12th 2018, the Company Management Board announces that talks are being held between LOTOS Asfalt Sp. z o.o. (“LOTOS Asfalt”, a subsidiary), the Company and KT - Kinetics Technology S.p.A. (“KT”, main contractor of the EFRA project) to set the deadline for the DCU (Delayed Coking Unit) to reach the RFSU (Ready for Start Up) status.
The Company Management Board estimates that the target economic and financial effects of all the EFRA project facilities (as announced in Current Report No. 24/2015 and the Company’s subsequent public announcements) will not fully show in the Company’s consolidated results until the second quarter of 2019.
This conclusion follows from the current arrangements concerning the EFRA project, made between LOTOS Asfalt, the Company and KT, as well as from the Company’s own analysis. The Company also announces that as at June 30th 2018, the percentage of the EFRA project’s completion was 95.5% (December 31st 2017: 89.8%), with two of the three key project units, i.e. HGU (Hydrogen Generation Unit) and HVDU (Hydrowax Vacuum Distillation Unit), having reached the RFSU status.
The Company Management Board emphasises that the delays in the EFRA project are not caused by the Company or LOTOS Asfalt.
The Company will promptly disclose any significant matters affecting the project in current reports.
Legal basis: Article 17(1) of MAR – Inside information.