Consolidated LIFO-based EBITDA, normalised to remove one-off items, reached almost PLN 2.6bn in 2016, 20% up on 2015. Consolidated LIFO-based EBIT soared 175% year on year, to PLN 1.9bn. Consolidated net profit for the year exceeded PLN 1bn, the best ever result delivered by the Group. To compare, in 2015 LOTOS reported a net loss of PLN 0.3bn. In 2016, LOTOS processed a record high volume of almost 10.4 million tonnes of crude oil, with the refinery’s capacity utilisation rate of 99%. The average daily output from the fields in Norway, Poland, and Lithuania was more than 26.6 thousand boe. LOTOS posted its record high results despite the challenging macroeconomic conditions. The average price of Brent oil in 2016 fell by 17% year on year, to USD 43.58/bbl. An even steeper decline was recorded in the average annual price of gas, which fell by as much as 29% (at the National Balancing Point), to USD 25.84/boe. Cash flows up, debt down In 2016, LOTOS generated operating cash flows in excess of PLN 2.7bn (compared with just under PLN 1.5bn in 2015), which is the best proof of the Company’s improving financial health. Net debt as at the end of 2016 was PLN 4.8bn, down PLN 0.9bn year on year. Net debt to normalised LIFO-based EBITDA was 1.8x (vs 2.6x in 2015). Higher reserves in Norway In 2016, 2P recoverable reserves attributable to LOTOS increased to 72.7 million boe (+9% year on year), following a major increase (by 8.5 million boe year on year) of the hydrocarbon potential in Norway due to reclassification of the Utgard field’s reserves. LOTOS Petrobaltic’s total [...]
Cristina Dascălu (CD): What are be the priorities you will advocate in Brussels, as Vice- Chairman of the Board of Directors of CEEP, representing the energy-intensive industry? Robert Pietryszyn: One of the most important drivers for the further development of the EU, and its position with respect to the biggest world economies, i.e. the USA, China, Japan, Russia and India, is competitiveness. In my opinion, increasing it, and witnessing the catch-up between the EU-15 and Central European countries, is one of the main problems of the EU. We can observe that from 2004, up till now, the GDP gap between the two parts of the EU has not got closer, and is even widening, showing the ratio as 3 to 1 (Euro 33.000 for the EU-15, to Euro 11.000 for Central Europe). Another great problem concerns the different approach to climate issues. In general, Central Europe outpaces the EU15 in terms of climate policy and CO2 decreases. Unfortunately, this is not a commonly known fact. By the way, the EU as a whole, already reached a 20% CO2 decrease in 2013. Again, this fact has not been publicised enough. Why is this? The policy concerning the Emission Trading System (ETS), shows that lower prices for EAU stimulated more investments and technological progress leading to the CO2 decreases in Central Europe, and the whole philosophy concerning backloading and the Market Stability Reserve (MSR), is not necessary at all for EU countries. Central Europe should invest in new technologies and the development of their industries within the frame of the general EU policy. This also means that each country should have [...]
On Friday, October the 9th, the United States House of Representatives voted to end the forty-year old ban on the export of crude oil from the United States. The vote on H.R. 702, “an act to adjust to changing crude oil market conditions,” is an important milestone in the effort to lift the export ban. However, the bill faces an uncertain future in the United States Senate, along with the threat of a presidential veto. The House voted 261-159, with 235 Republicans joined by 26 Democrats supporting H.R. 702. Congressman Joe Barton, a Republican from Texas, introduced the bill last February. It is one of several initiatives to end the export ban that has been introduced in recent years, in both chambers of the United States Congress. The export ban was put in place in the 1970s after the Organisation of Petroleum Exporting Countries (OPEC) imposed an oil embargo on the United States and other countries, in retaliation for supporting Israel in the 1973 Arab-Israeli War. The embargo drove the price of gasoline in the United States skyward, forcing its government to impose gasoline rationing. In response, Congress passed the Energy Policy and Conservation Act of 1975. Section 103 of the Act authorises the President to restrict exports of coal, petroleum products, natural gas, and petrochemical feed-stocks. H.R. 702 would repeal Section 103. Advocates of the bill assert that lifting the ban will stimulate more petroleum production, increase American exports, generate jobs, provide international allies and partners with a reliable source of energy, and “dilute the market share of unfriendly countries.” Those who want to keep the oil export [...]
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We represent the widely understood Central Europe energy sector (electricity generation, distribution and transmission, renewables, gas, oil, heat generation and distribution, chemical industries, etc.), universities and scientific institutions.