12. Dividends


On June 28th 2013, the General Meeting of Grupa LOTOS S.A. passed a resolution on distribution of the Company’s net profit earned in 2012. The General Meeting resolved not to distribute the Company’s net profit for 2012, totalling PLN 836,431 thousand, to the Company shareholders, and to allocate the profit as follows:

  • PLN 834,931 thousand to the Company’s statutory reserve funds,
  • PLN 1,500 thousand to the Special Account designated for financing corporate social responsibility (CSR) projects.

In these consolidated financial statements, the distributed 2012 net profit is presented under Retained earnings.

As at the date of publication of these consolidated financial statements, the Company's Management Board has not yet passed a resolution on coverage of the net loss for 2013.

As at December 31st 2013 and December 31st 2012, Grupa LOTOS S.A. was restricted in its ability to distribute funds in the form of dividends. The restrictions follow from the credit facility agreement executed on June 27th 2008 for the financing of the 10+ Programme, whereby dividend amounts are subject to certain conditions, including generation of sufficient free cash and achievement of certain levels of financial ratios.