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The Lotos Group had PLN 7.5 million net loss, PLN 20.8 million EBITDA LIFO in the 4th quarter.
Author:Mariusz Dasiewicz
Lotos Group recorded PLN 7.5 million of consolidated net loss in Q4 2020 compared to PLN 354 million of profit a year earlier, the company reported in the report.
The operating profit amounted to PLN 17.4 million versus PLN 452.4 million profit the year before.
"The Lotos Group showed in Q4 2020 operating profit of PLN 17.4 million, which consisted of operating profit of the production and trade segment of PLN 46.5 million, operating loss of the extractive segment - PLN 29.3 million and consolidation adjustments of PLN +0.2 million" – the Management Board comments on the results.
The EBITDA result amounted to PLN 300.1 million compared to PLN 709.1 million a year earlier (purified EBITDA LIFO – respectively: PLN 200.8 million versus PLN 590.1 million).
Consolidated sales revenues reached PLN 5,203.6 million in Q4 2020 compared to PLN 7,212.5 million the year before.
Throughout 2020, the company had PLN 1 146.2 million of consolidated net loss compared to PLN 152.9 million of profit the year before, with sales revenues of PLN 20,908.6 million compared to PLN 24,493.3 million the year before.
"The Lotos Group's refinery reworked 10.2 million tonnes of oil last year and produced 11 million tonnes of products. Despite the pandemic, which resulted in the most difficult operating conditions in many years, the Gdańsk company closed the year with strong (+35%) cash flows from operating activity, lower (22%) operating costs and higher (+7) fuel station network. At the same time, the company has been involved in COVID-19-related aid operations throughout the year" – we read in a communication on results.
At the end of 2020, the capital group owned 513 fuel stations on its network.
"The cleared result of EBITDA LIFO of the Lotos Group for 2020 amounted to PLN 1.4 billion. The decline (-52.6% y/y) is historically justified by the longest lasting deterioration in the market for raw materials and oil products, high volatility of quotations, economic recession and imbalance in supply and demand relations in the COVID-19 pandemic. The significant decline in oil and gas prices hit the mining segment, while the low margins for key products (gases and diesel) significantly affected the reduced output of the production and trade segment" - the release continues.
The stable financial situation is confirmed by the net debt/EBITDA LIFO ratio, which at the end of 2020 was at 1.42x, i.e. below the strategic objective. There were also high cash flows from operating activity, i.e. PLN 2.87 billion in 2020 compared to PLN 2.13 billion in 2019 (+34.7%), also emphasized.
"In 2020, investment expenditure amounted to approximately PLN 0.8 billion. Last year the installation of the Hydrogen Recovery Node (WOW) was launched, which, according to the design assumptions, will allow the production of an additional pool: 70,000 tons of LPG, 43 thousand tons of raw petrol, 39 thousand tons of light petrol and almost 9,000 tons of hydrogen per year. In 2020, work was also finalised on a project to build a fourth railway tincture, to increase efficiency and cost-effectiveness of production processes, as well as reducing environmental nuisance and improving logistics. 2.2 million tons of fuel per year, will provide LOTOS Group with the opportunity to deliver more diesel and petrol to the domestic market" - it was also written.
In individual terms, the net loss in 2020 amounted to PLN 881.4 million compared to PLN 834.3 million in profit the year before.
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