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Another milestone in Grupa LOTOS SA's strategic programme for southern refineries development
Report no. 96/20052005-09-22

The investment programme for Czechowice Refinery, described in Grupa LOTOS SA's Issue Prospectus, is based mostly on the strategy of transforming the refinery into a fuel storage and distribution centre. The management of Grupa LOTOS SA informed that during the meeting of 22 September 2005 the Supervisory Board of Czechowice Refinery S.A. approved the Company's "Long term Strategy" and the resolution of the Management Board of 6 September 2005 under which Czechowice Refinery S.A. (controlled by Grupa LOTOS SA in 80, 01%) will cease to process oil as of 31 March 2006. In line with the restructuring plan for southern refineries, Czechowice Refinery S.A. will become a key member (next to Jasło Refinery S.A.) of the LOTOS Capital Group to implement the plan of increasing the Group's share in the fuel market in southern Poland following the expansion of its fuel storage and distribution base. The aim of the base expansion is to increase fuel deliveries, improve service quality and meet legal requirements relating to storage. The investment will enable Czechowice Refinery to reduce costs. LOTOS Investment Group anticipates the increase of its revenues and sales margin by relying on its logistics base to expand the fuel distribution network in southern Poland and entering new market segments.