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Poland's Lotos Group reports that it achieved record results in 2016 with a net profit exceeding PLN 1 billion (US$245 million), compared to the previous year's net loss of PLN 0.3 billion.

Consolidated LIFO-based earnings before interest, taxes, depreciation, and amortization (EBITDA), normalised to remove one-off items, reached almost PLN 2.6 billion ($638 million) in 2016, up 20 percent on 2015.

Consolidated LIFO-based earnings before interest and taxes (EBIT) soared 175 percent year-on-year to PLN 1.9 billion ($466 million).

In 2016, Lotos processed a record volume of almost 10.4 million tonnes of crude oil, compared to 10.2 milllion tonnes in 2015, with a refinery capacity utilisation rate of 99 percent.

Lotos sold in total more than 11 million tonnes of oil products, merchandise and materials. Sales on the domestic market were up 5 percent year-on-year. Production and sales rose on strong refining margins throughout most of 2016.

Lotos noted that the results were achieved despite challenging macroeconomic conditions: the average price of Brent crude fell by 17 percent year-on-year in 2016, to USD 43.58 per barrel. An even steeper decline was recorded in the average annual price of gas, which fell by as much as 29 percent (at the National Balancing Point) to $25.84/boe.

Last year, in September, Bunker Index reported that Lotos was involved in the delivery of 120,000 litres of liquefied natural gas (LNG) as bunker fuel to the platform supply vessel (PSV) Siem Harmony during sea trials of the vessel at the Remontowa Shipbuilding shipyard in Gdansk.

Lotos collaborated with Polish Oil & Gas Company (PGNiG SA) in the transportation of the gas by tank cars from the Lech Kaczynski LNG Terminal in Swinoujscie to Gdansk, which the companies described as being "the very first logistic [sic] project of this kind in Poland".

Speaking at the time, Piotr Przyborowski, President of the Management Board of Lotos Asfalt, said: "This is a completely new and innovative direction in our business. What we are doing is communicate to the market that our product mix has been extended to include LNG bunker fuel with delivery to all ports in Poland."