Estimates of LOTOS Group’s Q1 2021 consolidated operating results
Report no. 13/2021 2021-04-19

Grupa LOTOS S.A. (the “Company”) hereby publishes estimates of the Company’s operating results for the three months ended March 31st 2021:

  1. Estimated consolidated revenue: PLN 5.9bn
  2. Estimated consolidated normalised LIFO-based EBITDA: PLN 0.62bn, including:
  3. Estimated consolidated net profit: PLN 0.35bn.
    • Estimated normalised LIFO-based EBITDA of the refining and marketing segment: PLN 0.45bn
    • Estimated normalised LIFO-based EBITDA of the exploration and production segment: PLN 0.17bn.

The Company further announces that:

  1. Fluctuations in its oil inventories and differences between the volumes purchased and processed during Q1 2021 resulted in the cost of crude oil processed, based on the LIFO (First in First out) inventory method, being calculated at a lower unit cost than the currently prevailing price, as the effect of ‘cheap crude inventories’ (calculated at a materially lower unit cost) occurred.
  2. This effect reflects a shortcoming of the adopted inventory measurement model, which – in the context of significant fluctuations in crude oil prices – distorted the Group’s LIFO-based result for the period, without affecting its cash flows from operating activities.
  3. The Company estimates the above-mentioned positive effect on its LIFO-based result at PLN ~0.09bn, i.e. normalised LIFO-based EBITDA is higher by PLN ~0.09bn. This effect is opposite to the effect of ‘expensive crude inventories’ seen in Q2 2020, which reduced normalised LIFO-based by PLN ~0.37bn (as reported by the Company in Current Report No. 22/2020 of July 24th 2020).

The presented figures are initial estimates, subject to revision. The final amounts will be published in the Q1 2021 report, due to be issued on April 28th 2021. 

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