Integrated Annual Report 2020

Implementation of the strategy in 2020

Strategy outlook for 2019–2022, key strategic metrics and performance against the metrics:

*Actual – 2019-2020 average; additionally: affected by fluctuations in the oil inventories and differences between the volumes purchased and processed during Q2 2020, which resulted in the cost of crude oil processed, based on the LIFO (Last in First out) inventory method, being calculated at a higher unit cost than the currently prevailing price, as the effect of old (significantly more expensive) oil inventories. This effect reflects a shortcoming of the adopted inventory valuation model and does not affect the generated flows. This negative effect on the LIFO-based result for 2020 is estimated at approximately PLN 370 million. As a result, average EBITDA for 2019–2020 was reduced by PLN 0.2 billion.

Source: the Company.

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