To facilitate an assessment of the impact of changes in global raw material and product prices on the refinery’s profitability, Grupa LOTOS S.A.  resumed publishing the model refining margin and provided an updated margin calculation model.

 Grupa LOTOS S.A. model margin on a monthly basis

The refinery of Grupa LOTOS on a weekly basis optimizes the selection of utilities for processing processes in relation to the price conditions on the market of raw materials and petroleum products, strongly limiting the use of natural gas in an environment of high prices. During the fourth quarter of 2021, the reduction of the volume of natural gas consumption by the Company, resulting directly from the increase in the price of this raw material, was even up to 70%.

The revised model margin calculation methodology is as follows:

The mathematical formula for Grupa LOTOS S.A.’s model margin is as follows:

Model refining margin [USD/bbl] = revenue (products from 94% of crude processed = 23% gasoline + 63% diesel oil + 8% heavy fuel oil) - costs (100% of crude processed + cost of natural gas used)


The model is based on simplified assumptions, i.e.: