Lotos' 2005 results meet expectations, but future sources of oil remain a problem

The company posted a 2005 net profit of zł. 930.3 million, zł.387.5 million more than in 2004. The result was relatively close to market expectations, and helped slow down the recent slide in the value of the company's shares on the Warsaw bourse. The poor Q4 results were, according to some analysts, caused by the lack of Lotos' own sources of fossil fuels. By 2010 the company plans to extract roughly 50% of its oil from its own sources, or ones belonging to companies whose shares are possessed by Lotos. The Group promised to publish its strategy on how it will secure new sources of fossil fuels at the beginning of July. However, this is rather a long-term concern, while presently the Group is working on IGCC (an oil waste utility system), consolidating recently taken over ESSO and Slovnaft fuel stations and launching biofuels production in its Jasło and Czechowice refineries, which will trigger substantial personnel transfers. (Parkiet, p. 6; Puls Biznesu p. 9) J.L.