Vision of development Progress in achieving strategic goals

Progress in achieving strategic goals

The LOTOS Group achieved the goals presented in the business strategy for sales and operational areas in 2009. However, in the exploration-exploitation area, given the considerable changes in the oil exploitation market, the goals were not achieved. Consequently, a different time horizon regarding the aforementioned is currently under consideration. Finally, as regards basic financial and economic ratios, values budgeted for 2009 were not achieved. Deviations to the values contained in the LOTOS Group’s strategy by 2012 were caused by a number of factors, such as low oil prices, the extremely low refinery margin, the low Brent/Ural differential, as well as the fluctuating exchange rate.

At present, work is underway on another revision of the strategy until 2014 and a definition of the directions for development until 2022. Given the major changes resulting from the global financial crisis the following provisions of the strategy shall be revised:

  • optimum use of manufacturing capabilities resulting from the 10+ Programme being completed, 
  • the most favourable use of the heavy residue,
  • active use of changes in the petroleum product markets,
  • improvement in the competitive position of Grupa LOTOS.

 

The LOTOS Group will continue to focus on activities aimed at increasing value for the shareholders. The key role is the development of the exploration and exploitation segment and strengthening of the market position. The technological processes being implemented as well as other technical solutions will be as innovative as possible. Decisions on the development activities shall  be based on the analysis of economic effectiveness and their implementation shall  depend on the financial capabilities of the Capital Group. Capital arrangements or the use of a joint-venture formula with a strategic partner will be acceptable.

The implementation of the strategy will enhance the position of the LOTOS Group as a strong, innovative and effectively developing entity, which plays a major role in ensuring the energy security of the state operating in compliance with the concept of corporate social responsibility.