Lotos Group has announced its financial results for Q2 2021. Thanks to the effective the Company reported a net profit of PLN 1.06 bn. The Gdańsk refinery has used up 100% of its processing capacity.
Lotos’s adjusted LIFO-based EBITDA () for Q2 2012 was PLN 0.98bn. One of the elements that positively influenced such a result was the so-called “cheap oil” effect. The company estimates that the aforementioned index was thus higher by ca. PLN 0.09 bn. Sales revenues of PLN 7.4 bn (+75% y/y) should also be noted.
The company’s stable financial position is confirmed by the net debt/EBITDA LIFO-based ratio, which at the end of Q2 2021 was at a level of 0.8x (significantly above the strategic target), i.e., indicating its ability to repay its debts. The performance of the company and the sector is largely a reflection of global market conditions.
In Q2 of 2021 the profitability of naval raw petrol exports was maintained, therefore Lotos, thanks to the location of the refinery by the Baltic Sea, reacted quickly and flexibly to increased demand and market opportunities in exports. In addition, the quarter was a period of revival in the road construction industry, associated with the beginning of the infrastructure work season and favorable weather conditions with the persistence of attractive asphalt prices.
At the same time, consumption levels in the domestic fuel market have steadily recovered from the COVID-19 pandemic restrictions since early 2021.