Our capital

Management in the LOTOS Group is a strategic plan based on key efficiency indicators

Grupa LOTOS is aware of its impact on its surroundings and the environment, therefore as a socially responsible company it applies ethical principles in its operations and follows international standards, such as ISO 26000, in the area of organizational governance, human rights, labor practices, environment, fair operating practices, consumer issues, social engagement and local community development. The Company supports the achievement of the Sustainable Development Goals (SDGs) and adheres to the UN Global Compact Principles.

In the process of creating common value, great weight is attached to effective management of the owned capitals and proper use of their potential and opportunities in individual segments of the group’s business. LOTOS has managed all six capital types in a consistent manner, since only such an integrated approach can bring the best effects, for both the company and its environment.

Robust management and building of financial capital allows the LOTOS Group to invest in non-financial resources, which over time generate further profits. For years, the company has been consistently investing in the improvements of production and refining processes, employee development, building the innovation culture within the organization and development of innovative products and implementation of new ideas in cooperation with partners. The Company has been continuously improving its solutions aimed at reducing its environmental footprint. LOTOS also strives to exert a positive social impact through its charity and sponsorship activities.

Environmental capital

LOTOS has been committed to investments in low-emission technologies, such as replacement of heating oil in the cogeneration plant with natural gas and modern hydrogen production technologies, which allow its carbon dioxide emissions to be maintained at a fixed and relatively low level. Grupa LOTOS is aware how important the transformation of the operating model to a “greener” one is for the climate and the environment.

One of the elements of this transformation is the 12 charging stations for electric vehicles. Grupa LOTOS also implements the Pure H2 project, which aims at selling very high purity (99.999%) hydrogen for transport purposes, as well as the Green H2 project of building a large-scale plant consisting of electrolyzers, hydrogen storage facilities and fuel cells or hydrogen turbines. Constant monitoring is a very significant factor, which has been achieved by building a continuous emissions monitoring system (CEMS). LOTOS is also involved in internal climate improvement initiatives, such as the “Cooperation Agreement for the development of the biogas and biomethane in Poland” or creation of the Pomeranian Hydrogen Vallen.

Details of the capital Management of the capital Effects achieved Change
10,197,000 t
Total consumption of crude oil
The company’s refining and production activities are conducted in accordance with environmental protection requirements. High-quality products are manufactured on the basis of minimizing the negative impact on the environment, also at the stage of their production. The development plans of the LOTOS Group include innovative technological projects that provide for rational utilization of natural resources. 9,914,000 t
Total consumption of crude oil
Decrease by 2.8% in the volume of crude oil processing
11,138,626 t
Production volume
Half-overhaul shutdown in March 2021 (the second half of the overhaul took place in March-April 2022), where 2020 was a year of full oil processing. 11,004,753 t
Production volume
A decrease in the production volume by
133 873 t
9,650,144.07 Mwh Total energy consumption 23 optimizations were identified and implemented in 2021. The effect of implementing 22 optimizations in 2020 was maintained. 9,042,362.72 MWh Reduction of energy consumption 607 781,35 MWh
2,090,948 t CO2e
Total direct greenhouse gas emissions
There were two factors that affected CO₂ emissions in 2021:
  • partial shutdown of the refinery for overhaul (reduced emissions)
  • considerable increase in natural gas prices and the resulting shift of the refinery to the use of more emission-intensive products from own processing (increased emissions)
2 052 426 t CO2e Down by 1.8%
1.18 MWh/t
primary energy consumption per ton of product
The decrease in the energy intensity indicators was influenced in 2021 by the half-overhaul, which covered installations of the 10+ Program, as well as current projects optimizing consumption of utilities by the process. 1.1 MWh/t
primary energy consumption per ton of product
Down by 5.9%
0.22 Mg CO2e /Mg
greenhouse gas emissions per ton of oil processed
There were two factors that affected CO₂ emissions in 2021:
  • partial shutdown of the refinery for overhaul (reduced emissions)
  • considerable increase in natural gas prices and the resulting shift of the refinery to the use of more emission-intensive products from own processing (increased emissions)
0.219 Mg CO2e /Mg
greenhouse gas emissions per ton of oil processed
Down by 0.5%

Production capital

The LOTOS Group has one of the most modern and youngest refineries in Europe, located in Gdańsk.

In 2021, the refinery processed approximately 9.9 million tons of crude oil and produced 11 million tons of refinery products. It is also worth noting that once again the LOTOS Group refinery was ranked among the most energy efficient refineries in the region according to the Solomon Associates ranking.

This ranking lists refineries around the world and evaluates their performance in many aspects such as technology, and costs of energy and operations.

In 2021, diesel fuel had the largest share in the production structure.  About 6 million tons of this product were produced, 3.8% more than in the previous year. The products obtained as a result of crude oil processing are sold in Poland and abroad, in the wholesale channel and to retail customers through the Group’s own network of service stations.

Details of the capital Management of the capital Effects achieved Change
service stations
  • Sales focused on the group of strategic clients.
  • Effective implementation of the pricing policy
service stations
Up by 1.4%
Service Areas (MOPs)
  • Cooperation an external partner – the Subway restaurant chain
30 Miejsc Obsługi Podróżnych Up by 23%
share in the domestic fuel market
  • The levels of domestic premiums observed on the market for the large part of 2021 caused imports to be very appealing and generated increased volatility of market parameters, also in the relationship between margins and the market share.
share in the overall domestic fuel market.
Down by 1,4 %.
20.3 thous. boe /day
Crude oil and natural gas production volume
  • Decrease in daily oil and gas production levels caused mainly by the exhaustion of productive deposits.
17.3 thous. boe /day
Crude oil and natural gas production volume
Down by 14.6%

Financial capital

In spite of the volatile external conditions caused by the COVID-19 pandemic, all material financial indicators remained at safe levels in 2021 and liabilities were paid on an ongoing basis. Cash flows generated from operating activities allow the Group to cover its investment needs and repay part of its financial debt. Liquidity in the LOTOS Group is at safe levels and, as at the date of publication of the report, the Company has not identified any significant risks that could change this situation for the worse.

In 2021, the LOTOS Group generated operating profit plus depreciation and amortization net of one-off events (so-called Clean EBITDA LIFE) at PLN 4,229.1 million, compared to PLN 1,356.6 million in 2020 (up by 211.7%).

Details of the capital Management of the capital Effects achieved Change
PLN 20,908.6 million
Total revenue 
The increased revenue was driven mainly by significant increase in quoted prices of oil products on global markets. PLN 33,123.6 million
Total revenue
Up by 58.4%
PLN 1,466.9 million
Consolidated gross profit
The increased revenue was driven mainly by significant increase in quoted prices of oil products on global markets. PLN 6,348.5 million
Consolidated gross profit
An increase by PLN 4,881.6 million
PLN -1,396.8 million
Operating result
The increase in the operating result was driven primarily by growing gross profit due to the upward trend of oil prices and high cracks for oil products, as well as a positive result on other operating activities related mainly with the reversal of impairment allowances in the Exploration & Production segment. PLN 4,477.9 million
Operating result
Up by PLN 5,874.7 million
PLN 11,573.8 million
Level of equity
The increase in equity was driven by: an increase in retained earnings by PLN 3,217.2 million, a revaluation reserve of PLN -10.0 million, as well as a PLN 41.8 million increase in the positive translation reserve and the negative foreign exchange differences recognized in the cash flow hedge reserve adjusted for the tax effect in the amount of PLN -28.9 million. PLN 14,793.9 million
Level of equity
An increase by 27.8%
PLN 457.4 million
Capital expenditures in the Refining & Marketing segment
The increase in capital expenditures in the Refining & Marketing segment was driven mainly by increased capex levels in the following projects: development of the service station network, rolling stock, spare parts, catalysts, Oil Hydrocrackers, fuel depot, redevelopment of the Claus unit.  

PLN 645.3 million
Capital expenditures in the Refining & Marketing segment


Up by PLN 187.9 million
in the Refining & Marketing Segment

PLN 384.8 million
Capital expenditures in the Exploration & Production segment
The increase in capital expenditures in the Exploration & Production segment is an effect of changes primarily related to the projects: Norway Heimdal, Norway Sleipner, Norway YME and deposit B3 and deposit B8.  

PLN 402.6 million
Capital expenditures in the Exploration & Production segment

Up by PLN 17.8 million
in the Exploration & Production segment

Human capital

It is the people, the Company’s stakeholders that influence how its economic as well as social and environmental value is produced. Within the organization and in contacts with business partners or customers, the LOTOS Group cares about the safety and respect for human dignity. This applies both to LOTOS employees and those with whom the concern cooperates in operational and communication activities.

Details of the capital Management of the capital Effects achieved Change
Total number of employees
The number of employees was maintained at the fixed level as a result of:
  • discussions with the trade unions and the Workers’ Council,
  • regular measurement of job satisfaction among the employees
Total number of employees
Constant number of employees maintained
Percentage of new employees across the group
The Company implements the principles of diversity management and equal treatment policy, with respect for a diverse, multicultural society and places special emphasis on equal treatment. 5%
Percentage of new employees across the group
Employee turnover reduced by 6%
Average hours of training per employee 
In 2021, the organization developed among its employees both industry-specific competencies – specific for the oil&gas industry, specialized ones – required for a given position, managerial, linguistic, as well as soft skills, enabling and catalyzing the use of hard competencies. 13
Average hours of training per employee
Average hours of training up by 3.39%
Number of accidents involving employees
All accidents were individual accidents. Most had to do with operating machinery and equipment and walking. 47
Number of accidents involving employees 
Number of accidents among employees up by 10

Social capital

As a socially engaged company, in 2021, Grupa LOTOS continued sponsorship cooperation in social and sports projects addressed to children and youths. They included, for example, "Football Future with LOTOS" and LOTOS Griffin Cup, winter sports - the program "LOTOS Looking for the Champion's Successors" with LOTOS Cup competitions.

As part of the cooperation with the Polish Tennis Association, the LOTOS Rackets National Tennis Popularization Program. Overall, nearly 8000 children and youths took part in all the programs, which marks an increase of nearly 1000 children relative to the previous year. In 2021, Grupa LOTOS became a partner of the PolSKI Mistrz (Polish Champion) Program, which has been supporting the development of downhill skiing and snowboarding in Poland for three seasons.  Grupa LOTOS also continued its cooperation with 8 independent, promising athletes who have already achieved numerous successes. Among the Grupa LOTOS athletes was Karolina Naja – kayaker, Olympic medalist, who won two medals at the 2021 Summer Olympics. Projects related to training children and youths are investments in young, ambitious and talented athletes who will be the future strength of the Polish sport.

Grupa LOTOS is socially conscious and responsible and is aware how important is to shape the attitudes of current and future generations. The sponsorship activities undertaken not only support professional sports at the adult level, but also projects designed to develop children and youths. The awareness of the potential effects of activities dedicated to the youngest sports enthusiasts contributes to a positive perception of the company as responsible for the development of not only Polish sport, but also our society.

Key social programs implemented in 2021:
  • “Champions on the Road” is a multi-faceted program designed to educate and engage young drivers in efforts to improve road safety. The program has been implemented since 2020. Additionally, as regards road safety, in 2021 the LOTOS Group launched a new program "LOTOS - Academyu of Safety", aimed at school children and youth from Pomerania.

  • since 2008 the LOTOS Group has been implementing the "Direction Baltic" program with its partners: University of Gdańsk Development Foundation and the University of Gdańsk Marine Station in Hel. The Program carries out activities related to the protection of the Baltic Sea’s biodiversity. In addition, a strong emphasis is placed on environmental education and dissemination of knowledge about the problem of plastic and microplastics in the Baltic Sea.

  • since 2013, the LOTOS Group has been a patron of the E(x)plory Program - Poland's largest initiative supporting talented young people in the implementation of innovative scientific projects and promoting their achievements in the international arena. It is a space that brings together young people, scientific authorities, start-ups and experienced companies, NGOs, media, Polish schools and the best universities, big cities and small towns. The main goal of the program is to popularize science among children and youth.

2021 was another year of the coronavirus pandemic. The Company allocated a total of over PLN 12 million to fight the pandemic and acquired and donated such personal protective equipment as: 500 thousand protective suits, 300 thousand visors and 100 thousand shoe protectors and a temporary hospital was organized in the exhibition halls of the AMBEREXPO in Gdansk.

Details of the capital Management of the capital Effects achieved Change
Number of social action projects
Through active communication with our stakeholders, we seek to mitigate the risks and nuisances associated with the company’s day-to-day operations and actively respond to the needs of our stakeholders. 22
social and environmental action projects.
Up by 57%
Number of subsidies awarded by the LOTOS Foundation
148 No change
PLN 13.3 million
The amount of aid contributed by the Foundation
The LOTOS Foundation provided subsidies in the amount of PLN 13,307,415.88, of which half supported the fight with COVID-19. PLN 5.4 million Down by 38%
PLN 764 million
Taxes paid
PLN 762.11 million Down by 1,9 mln PLN

Intellectual capital

In 2021, Grupa LOTOS continued its initiatives in the fuel of the future area, i.e. it took action to promote hydrogen-based technologies and was actively involved in the implementation of the Clean Transport Package aimed at strengthening Poland’s energy security and reducing pollution in transport. Grupa LOTOS representatives have been regularly participating in working meetings with regional municipal transport authorities and operators and supporting them in their preparations for the hydrogen transition of urban transportation.

Grupa LOTOS has been actively contributing to projects associated with the new generation of alternative fuel, including those related to hydrogen and LNG/CNG. The Pure H2 project and the Feasibility Study on the Construction of a small scale LNG Terminal in Gdańsk and Innovative LNG Bunkering Facilities received EU funding as part of the Connecting Europe Facility (CEF).

In 2021, Grupa LOTOS prepared and adopted documents on the Strategic directions for innovation and the Strategic Research Agenda.

Details of the capital Management of the capital Effects achieved Change
Number of undertakings producing effects in the Efficiency Improvement Program 
Project workshops: Carried out with the management of GL Group companies and involved individuals who wanted to improve efficiency of their activities and reduce costs in the organization.


Training path: Lean Six Sigma Yellow Belt accredited and certified training path – each certificate issued represents a cost-reducing solution to an actual problem within the organization.

So far, 11 certificates have been issued to 36 individuals who underwent the training; the projects have brought savings of PLN 600 thousand. In Q2 2022, savings of PLN 1 million are planned from the training alone.



Number of undertakings producing effects in the Efficiency Improvement Program
+ 49%

PLN 52.9 million
Cost optimization projects (114 projects)

PLN 257.4 million
Sum of pro-efficiency projects (195 projects producing effects in 2021)
+ 110%
PLN 52.9 million
Including cost optimization projects (114 projects)
PLN 91.8 million
Including cost optimization projects (176 projects)
+ 74%

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