almost
9.4 PLN billion
Planned investment value for 2017 - 2022
Implementation of the strategy in 2021
In 2021, capital expenditures amounted to approx. PLN 1.1 billion.
The Management Board implemented the investment plans in 2021 using own funds and external financing. In 2020, the Net Debt/EBITDA LIFO ratio was 0.16x, which was below the level set forth in the development strategy and at a level safe for the implementation of the Company's investment plans, including equity investments.
In 2021, the fulfillment of key strategic indicators was under strong pressure from external events related to COVID-19 waves, growing inflation trend and increasingly strict climate policy. Overall EBITDA LIFE for 12M 2021 was PLN 4.3 billion (vs. PLN 1.36 billion in the previous year). The result was driven by higher prices of crude oil and natural gas for the Upstream segment and high margins in the Downstream area, while production remained efficient and flexible.
Average daily production of crude oil and natural gas was 17.3 thousand boe in 2021. The company acquired 3 new exploration and production licenses in the North Sea (NOAKA and Sleipner areas).Production in the Yme field was launched in the second half of the year.
The production volume for the whole of 2021 was at 9.9 million tons despite the half-overhaul shutdown and nearly 100% of the production capacity was used.
At year-end, there were 520 stations in the LOTOS service station network.
Key investments in 2021 included the commencement of the Oil Hydrocracker (HBO) project and launch of the VETNI research and development project (for the development and construction of a pilot of the solid oxide electrolyzer system for hydrogen production).
In 2021, the Net Debt/EBITDA LIFO ratio was 0.16x, which was below the level set forth in the development strategy and at a level safe for the implementation of the Company’s investment plans, including equity investments.
GRAFIKA
Initiatives supporting implementation of the group’s strategy in 2022
The key factors important for the development of Grupa LOTOS S.A. include decisions on allocation of capital expenditure to selected projects, and proactive approach to business opportunities in the Exploration & Production segment.
In addition, the Company’s development in 2022 will be affected by the progress of work on acquisition of Grupa LOTOS S.A. by PKN ORLEN S.A., including implementation of the remedies and integration processes.
In 2017–2022, Grupa LOTOS S.A. plans to allocate approximately PLN 9.4 billion to capital expenditure, of which approximately PLN 4.6 billion was spent in 2017–2021.
