Poland’s fuel giant Lotos lost PLN 528.87m in the second quarter of 2012, a steep plunge from the PLN 269.94m profit it reported for the same period of 2011. Market speculation hints that the surprise could be the impact of revaluations of liabilities denominated in foreign currencies, along with an expected write-off on the value of the Yme project.
The forecast for the second half of the year is similarly negative. “It was thought that the extraction on YME deposits could begin in the third quarter of 2015, and according to this data, the write-off was made for a total amount of PLN 934.6m,” the company wrote in a statement on its Q2 figures. Lotos’s operating profit, according to LIFO, rose in the second quarter of the year to PLN 277.8m, roughly matching market expectations.
