Grupa LOTOS S.A. (the “Company”) announces that on March 9th 2022 it will commence the shutdown of refining units as part of the LOTOS refinery maintenance project.
The maintenance project will be performed as a partial shutdown between March 23rd and April 1st 2022 (its first part having taken place in the spring of 2021).
Based on the schedule, 50 out of over 65 units will be shut down for maintenance. Their gradual restart will be completed on April 16th 2022. The last stage of the project will involve maintenance of the hydrogen generation unit (insular maintenance), to be performed between April 17th and May 14th 2022.
The shutdown will reduce the refinery's throughput capacity in 2022, which will translate into a lower refining margin. The Company estimates that the maximum throughput reduction attributable directly to the shutdown will be approximately 7% 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 2022, are approximately PLN 0.2bn. 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.