Integrated Annual Report of LOTOS Capital Group 2016

Key information about the organisation

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The LOTOS Group is one of Central and Eastern Europe’s major and most efficient oil companies and the second largest producer of fuels in Poland. The coastal location of our plants ensures direct access to the sea, resulting in greater flexibility of feedstock supply and reduced costs of logistics in maritime transport.

The LOTOS Group is the only producer in Poland with access to hydrocarbons in Poland’s Exclusive Economic Zone of the Baltic Sea. Other regions where we are engaged in petroleum production include the Norwegian Continental Shelf and Lithuania (onshore). As a vertically-integrated organisation, the LOTOS Group operates based on two reporting segments: Upstream and Downstream.

As at December 31st 2016, the LOTOS Group comprised Grupa LOTOS S.A. as the Parent, and 35 production, trading, and service companies, including: 

• 13 direct subsidiaries of Grupa LOTOS,
• 21 indirect subsidiaries of Grupa LOTOS,
• and one foundation.

Key markets for our refined petroleum products include Poland and European countries such as Germany, the Netherlands, Belgium, Sweden, the United Kingdom, France, Estonia, Denmark and the Czech Republic.

Most of our associated natural gas produced from the Baltic Sea fields is sold to the LOTOS Group companies. Natural gas produced in Norway is marketed to the United Kingdom and Continental Europe, and the entire condensate volume is exported to the UK.

We have established a presence on 82 markets.

Grupa LOTOS is a joint-stock company with the State Treasury as the majority shareholder (53.2% interest). For more information on the Grupa LOTOS shareholding structure, see the Consolidated Annual Report of the LOTOS Group for 2016.