As an update of the information published by Grupa LOTOS S.A. (the “Company”) in Current Report No. 31/2018 of October 31st 2018, the Company announces that its subsidiary LOTOS Asfalt Sp. z o.o. and the General Contractor for the EFRA Project, Kinetics Technology S.p. A. (“KT”) signed an annex to the agreement for the engineering design, delivery and construction of a delayed coker unit (DCU with auxiliary facilities) and a hydrogen generation unit (HGU), whose execution was originally announced by the Company in Current Report No. 24/2015 of July 14th 2015. Pursuant to the annex, the Ready-For-Start-Up (RFSU) date for the last of the EFRA Project units (DCU with auxiliary facilities) is postponed until June 30th 2019, that is by 30 (thirty) days from the deadline envisaged before the annex was signed.
The main reason for the postponement is that LOTOS Asfalt Sp. z o.o. seeks to ensure unquestionable technical readiness of the DCU for start-up and commissioning. The Company would like to note that the start-up of the facilities comprising the CDU, as in the case of the other Project units which are already on stream (HGU and HVDU), is the responsibility of the LOTOS Group companies and not KT.
Furthermore, the Company announces that the postponement of the RFSU date for the DCU with auxiliary facilities will not delay the full planned economic and financial effects of the operation of all EFRA Project units. The Company reaffirms its estimates, published in Current Report No. 24/2015 of July 14th 2015 and in subsequent public announcements, that the target economic and financial effects will fully show in the Company’s consolidated financial results in the fourth quarter of 2019.
Neither will the change affect the total budget of the project, as announced by the Company in Current Report No. 24/2015.
Legal basis: Article 17(1) of MAR – Inside information