Scheduled maintenance shutdown and its estimated effect on Grupa LOTOS’ consolidated operating results in 2021
Report no. 7/20212021-02-24

Grupa LOTOS S.A. (the “Company”) announces that a scheduled routine maintenance shutdown will commence at the Grupa LOTOS S.A. refinery on February 26th 2021.

For the first time the maintenance project will be performed in the form of a partial shutdown (its second part will take place in spring 2022). In accordance with the plans, the shutdown in 2021 will not involve a stoppage of the entire refinery. Since only some of the production units will be stopped, the refinery will continue to process crude oil and the Company will continue to dispatch and sell products throughout the maintenance period.

Based on the schedule, 19 out of over 60 units will be shut down in 2021, most of which will resume operation in early April. The second and last phase of the shutdown will be maintenance of three systems of the oil unit (starting from April 7th). All maintenance work will be completed on May 1st 2021.

The shutdown will reduce the refinery's throughput capacity in 2021, which will translate into a lower refining margin. The Company estimates that the maximum throughput reduction attributable directly to the shutdown will be 5% on an annual basis, but it is taking operational measures to minimise it. The size of the decline in the refining margin as a result of the lower throughput will depend on the prices of petroleum products on global markets, so it cannot be estimated as at the date of this report.

The estimated direct costs associated with the maintenance shutdown, which will reduce the Group's consolidated operating profit for 2021, are approximately PLN 0.13bn. No capital expenditure will be incurred by the Company as part of the maintenance shutdown.

It is assumed that the maintenance project should not affect the Company's ability to meet its trading obligations.

Legal basis: Article 17(1) of MAR – Inside information.