Lotos announces PLN 10 bln CAPEX
14:10
One of the country’s largest energy companies Lotos is changing its funding strategy for capital projects it carries out, the company stated in a press release on Thursday. Under the new plan, there will be two time frames – during the first (2017 and 2018), the company will concentrate on cash flow stability and debt reduction (as well as executing projects that are currently under way), while under the second (2019 to 2022), it will carry out further development that will be based on its new portfolio of investment projects. The total amount of investment was said to be PLN 9.4 billion.
Of that PLN 9.4 billion, the company said PLN 3 billion will be invested in developing mining portfolios, 2.7 billion in Norwegian gas fields, 2.5 billion in production, 1.2 billion in modernization of infrastructure and 0.3 billion in prospecting hydrocarbons in the Baltic Sea, and in conjunction with PGNiG on land. The company will also spend another 3.3 billion on “business areas by the end of 2018.”
Lotos said that the changes to its allocation of funding for capital projects will result in savings of up to PLN 300 million per year. “As part of the process to ensure financial stability and operational company plans to reduce costs, which will strengthen [our] resilience to adverse macroeconomic conditions, centralized purchasing will be implemented. The aim of the company is the active management of domestic demand and the consolidation of orders through closer collaboration with suppliers to improve efficiency,” the statement read. A key strategy for Lotos, the company has said, is maintaining its technological edge in the CEE region, at the same time becoming more innovative.
