Key performance factors

When analyzing the economic and financial position of the Lotos Group, it is impossible not to factor in the events that have already transpired in 2022. In the reported period we observed with great tension the pressure exerted by constant oversupply on the European medium fraction market, which has strongly affected the capacity of our refinery business to generate the expected margin levels. At the same time, the record-breaking natural gas prices unambiguously point to the priorities in the form of the operational maximalization of extracting the commodity from within the Group and minimizing its consumption in the production process by utilizing the flexibility in the refinery assets we have. In these circumstances the most important objective of the economic staff members was to ensure financing for strategic development projects. The project of building the Hydrocracking Oil Block has entered the path of execution in this area. In turn, the production of hydrocarbons from the Yme deposit was launched on the Norwegian continental shelf. At the same time, by reducing net debt by PLN 1.2 billion the Lotos Group functioned safely in the very turbulent and demanding first half of 2022.