Investment in the pipeline
As the subscription for shares in Grupa Lotos gathered pace last week, its chief executive, Paweł Olechnowicz, revealed the extent of the investment he believes the concern requires.
Lotos' investment plans call for total outlays of zł.3 billion over the next five years - compared with around zł.1.7 billion a year at its main domestic rival, PKN Orlen, which is about four times bigger.
"Market trends show that further transformation will be needed, and there is no sign of them changing. If we want to participate in the market's dynamic growth there's no alternative to joining forces," Olechnowicz said.
The government has said it plans to look for a strategic investor in the company. Lotos' total value according to the IPO price range is zł.3-4 billion.
Olechnowicz said that although Lotos is smaller than most of its rivals in the region, by some financial measures it was in the same league. "Our financial results are comparable to those of European companies such as ... [Hungary's] MOL or PKN Orlen," Olechnowicz added, pointing out the company's 28.3 percent 2004 return capital was higher than either MOL's or PKN's.
Lotos is predicting a net profit this year of almost zł.315 million on revenues of zł.6.9 billion.
Individual investors have until May 25 while financial institutions have until May 30 to subscribe for shares for the 49-percent stake that will be floated on the bourse. (Reuters)
Lotos' investment plans call for total outlays of zł.3 billion over the next five years - compared with around zł.1.7 billion a year at its main domestic rival, PKN Orlen, which is about four times bigger.
"Market trends show that further transformation will be needed, and there is no sign of them changing. If we want to participate in the market's dynamic growth there's no alternative to joining forces," Olechnowicz said.
The government has said it plans to look for a strategic investor in the company. Lotos' total value according to the IPO price range is zł.3-4 billion.
Olechnowicz said that although Lotos is smaller than most of its rivals in the region, by some financial measures it was in the same league. "Our financial results are comparable to those of European companies such as ... [Hungary's] MOL or PKN Orlen," Olechnowicz added, pointing out the company's 28.3 percent 2004 return capital was higher than either MOL's or PKN's.
Lotos is predicting a net profit this year of almost zł.315 million on revenues of zł.6.9 billion.
Individual investors have until May 25 while financial institutions have until May 30 to subscribe for shares for the 49-percent stake that will be floated on the bourse. (Reuters)
