Ambitious targets − twofold growth of EBITDA
Presentation of the growth strategy for 2017−2022 (EBITDA to double in 2019−2022)
One of the objectives of the LOTOS Group’s strategy for 2017−2022 is to stabilise the LOTOS Group’s performance on the difficult oil market, and to maintain stable and sustainable growth in the following key business areas:
- Exploration and production,
- Manufacturing highest-quality fuels,
- Maintaining emergency stocks to build Poland’s energy security,
- Technological advancement of the refinery and implementation of innovations.
In 2019−2022, we intend to double our LIFO-based EBITDA, from about PLN 2bn in 2015−2017 to some PLN 4bn. We plan to allocate PLN 9.4bn to capital expenditure until 2022.
Capital expenditure will be made in line with a detailed action plan, which for the next two years (2017−2018) provides for focusing on the development of the B8 field and the completion of the EFRA Project. We will also put emphasis on supporting innovation implementation processes.
Our strategy − five objectives
The LOTOS Group’s strategic objectives for 2017−2022 are:
Effective use of assets along the value chain.
Meaning: use of production licences, further optimisation of refining technologies, new products and alternative fuels.
- 1.1. New, safer concept for developing a balanced upstream portfolio
- 1.2. Competitive edge with innovative technologies and new products
- 1.3. LOTOS Energy Hub in retail and care to ensure high standards in quality
Processes which guarantee stability.
Meaning: consistent and repeatable reduction of operating expenses and optimisation of margins along the value chain
- 2.1. Increased resilience to adverse external conditions thanks to low costs
- 2.2. Excellence in integrated margin management and diversification of feedstock sources
Readiness to embrace innovation.
Supported by: dedicated funds, a new model of collaboration with research centres, and real use of our employees’ potential.
- 3.1. Setting up a fund to finance implementation of growth projects
- 3.2. Use of own experts and infrastructure to create a new research and development model in partnership with research institutions
Active opportunity and risk management.
Meaning: greater flexibility in responding to risks and faster identification of business opportunities.
- 4.1. Strong culture of open dialogue and early response to risk symptoms
- 4.2. Risk management to optimise value for stakeholders
Strong team, coherent CSR story and safety.
Meaning: greater responsibility for the wider environment. Building national energy security, diversifying supplies of raw materials and fuels, OHS, cyber security and social responsibility.
- 5.1. Talent development as a key source of competitive advantage
- 5.2. Integrated CSR policy
- 5.3. Robust safety culture
Chapter 1.3. Corporate Social Responsibility
Chapter 2.4. Corporate social responsibility strategy