Lotos plans some 55m rights issue to finance investments
August 14, 2014
Fuel group Lotos will have its shareholders vote on a rights issue of up to 55 million shares, hoping to raise around PLN 1 billion, the firm said in draft resolutions for the September 8 EGM and a press release.
Lotos wants to use the means from the prospective issue for investments "aimed at increasing the comprehensiveness of the refinery and increasing own output of hydrocarbons," the firm said.
Lotos' plans by end-2015 include launching crude oil production from the B8 deposit on the Baltic Sea at 250,000 tons p.a. By end-2017 the company plans to launch extraction of natural gas from B4 and B6 deposits and achieve an annual output of 250 million cubic meters.
Investments into two new installations at the Gdansk refinery, in turn, are aimed at increasing annual motor fuel production by 900,000 tons and raising the refining margin by around USD 2 per barrel as well as increasing annual LPG output by 100,000 tons and gasoline output by 25,000 tons.