Supply sources
As its main feedstock, Grupa LOTOS S.A. relies on Russian REBCO (Russian Export Blend Crude Oil). Compared with the global Brent oil benchmark, REBCO is a blend of heavier crude grades with higher sulfur content, and yields more middle distillates (diesel oil, aviation fuel). The Grupa LOTOS refinery also processed crude oil produced domestically (from the Lubiatów and Rozewie fields) and from Lithuanian assets. The balance of the feedstock was sourced from other directions.
Crude oil throughput at Grupa LOTOS S.A. (thousand tonnes)
Source: the Company.
In its refining production, the Company uses crude oil, intermediate products, chemicals and petroleum materials with a consolidated value shown in the table below.
Breakdown of LOTOS Group’s purchases of feedstocks, intermediate products, chemicals and petroleum materials
| 2020 | 2019 | |||
|---|---|---|---|---|
| (PLNm) | share (%) | (PLNm) | share (%) | |
| Crude oil | 11,450.10 | 82.10% | 18,705.20 | 86.40% |
| Gasoline components: MTBE/ETBE | 120,4 | 0.90% | 186.6 | 0.80% |
| FAME | 1,161.90 | 8.30% | 1,114.20 | 5.20% |
| Gasolines | 31.1 | 0.20% | – | 0.00% |
| Ethyl alcohol | 214.4 | 1.50% | 232.6 | 1.10% |
| Additives | 104.1 | 0.70% | 87.4 | 0.40% |
| Diesel oil components | 99.7 | 0.70% | 371.6 | 1.70% |
| Natural gas | 325.1 | 2.30% | 492.4 | 2.30% |
| Bitumens, bitumen components and additives | 44.5 | 0.30% | 58.6 | 0.30% |
| Feedstock for FAME production | 398.3 | 2.90% | 374.5 | 1.70% |
| Other | 12.2 | 0.10% | 16.2 | 0.10% |
| Total | 13,961.80 | 100.00% | 21,639.30 | 100.00% |
Source: the Company.
Suppliers
In 2020, the key suppliers to the LOTOS Group whose supplies accounted for more than 10% of the Group’s total procurement costs were: Tatneft – Europe AG of Switzerland, VITOL SA of Switzerland, Rosneft Oil Company of Russia. Their shares in the LOTOS Group’s purchases were respectively 17.1%, 16.5% and 14.9%. To the best of the Company’s knowledge, there were no formal links with the Company that would be relevant to the key suppliers.
Customers
In 2019–2020, there were no customers with a share in excess of 10% of the LOTOS Group’s total revenue.
LOTOS Paliwa Sp. z o.o. (wholly owned by Grupa LOTOS S.A.) was Grupa LOTOS S.A.’s largest customer, accounting for over 50% of the Company’s total revenue in 2020 and 2019. In both periods, there were no other customers whose share in the Company’s total revenue would exceed 10%.