By way of update to the information published by Grupa LOTOS S.A. (the “Company”) in Current Report No. 21/2018 of July 13th 2018, the Company’s Management Board announces that:
- negotiations have been concluded as a result of which the parties have agreed on the wording of a draft annex to the contract for engineering, procurement and construction (EPC) of key EFRA units (see Current Report No. 24/2015) between the Company’s subsidiary, LOTOS Asfalt Sp. z o.o. and KT-Kinetics Technology S.p.A. (“KT”);
- the Company has received KT’s proposal sent to LOTOS Asfalt Sp. z o.o. via electronic transmission to execute the annex on the terms and conditions agreed upon by the parties.
The Company’s Management Board also points out that the execution of the annex by LOTOS Asfalt Sp. z o.o. is conditional on obtaining the required approvals from the syndicate of institutions financing the EFRA Project (the Company reported on the execution of an agreement with the syndicate in Current Report No. 20/2015).
In the course of the negotiations, the parties to the annex agreed on a new Ready-For-Start-Up (“RFSU”) date and stated that the Delayed Coking Unit (DCU) should reach the RFSU status by May 31st 2019. The total budget of the project, announced by the Company in Current Report No. 24/2015, remains unchanged.
Assuming that the RFSU deadline referred to above is met, the Company’s Management Board estimates that the target economic and financial effects of all of the EFRA project facilities (as announced in Current Report No. 24/2015 and the Company’s subsequent public announcements) will fully show in the Company’s consolidated financial results in the fourth quarter of 2019.
The Company will promptly publish information on the execution of the annex by both parties and will promptly disclose any significant matters affecting the project in current reports.
Legal basis: Article 17(1) of MAR – Inside information.