Grupa LOTOS S.A. - Integrated Annual Report 2012
Grupa LOTOS on the stock exchange
PAGE CONTENTS
The world's key markets closed out the year 2012 on a bullish note. London's S&P100, New York's NASDAQ Composite and France's CAC40 indices all posted gains of more than a dozen per cent, and the Warsaw Stock Exchange also saw an uptrend. The annual increase on the WIG (all-caps index of the main market) was 26.2%, while the WIG-20 rose by slightly over 20%. WIG-PALIWA (the index of fuel companies) advanced by 39.0%. Against the background of the economic deceleration in Europe, debt crisis in the eurozone and economic problems in the US, investor sentiment was improved by the decisions of bodies responsible for monetary policy (the Monetary Policy Council, European Central Bank and the US Federal Reserve).
Two major trends were observed in Grupa LOTOS stock price dynamics in 2012. In the first half of the year, there was a horizontal movement in the stock price, amid increased trading volumes. The strong price rebound in early June provided the catalyst for a strong uptrend: over the year, the price of Grupa LOTOS stock went up by 76.8%. This price reached a low on January 11st 2012 (PLN 21.33 per share) and peaked on December 11th 2012 (PLN 43.00 per share).
In 2012, the uptrend in Grupa LOTOS share price was stronger than in the WIG, WIG20 and WIG-PALIWA (fuel sector index) exchange indices; the price growth had significantly overtaken the market. Over 2012, the RESPECT index of socially responsible companies grew by 29.2%.
In the period under review, the number of the Company’s shares which changed hands in an average trading session was 282,163, down by 25% relative to the previous period. The total value of trading on the Company’s shares was PLN 2,013m, representing 1.07% of the total trading value on the WSE.
Grupa LOTOS’ market capitalisation as at the end of 2012 was PLN 5,351bn.
At the end of 2012, the closing price was PLN 41.20 per Company’s share. The rate of return for the year was 76.82%.
All-year low and high closing prices of Grupa LOTOS shares and closing prices on the WSE
End of year, December 31 | |||
---|---|---|---|
Low (PLN) | High (PLN) | Closing price (PLN) | |
2009 | 7.21 | 32.80 | 31.80 |
2010 | 25.05 | 37.85 | 36.35 |
2011 | 22.26 | 49.50 | 23.30 |
2012 | 21.30 | 43.78 | 41.20 |
Source: In-house analysis based on WSE data.
Months, 2012 | |||
---|---|---|---|
Month | Low (PLN) | High (PLN) | Closing price (PLN) |
January | 21.30 | 26.37 | 26.10 |
February | 25.72 | 28.98 | 28.00 |
March | 24.36 | 28.19 | 27.23 |
April | 27.33 | 31.90 | 28.35 |
May | 23.30 | 28.92 | 23.30 |
June | 22.66 | 29.57 | 27.90 |
July | 24.02 | 29.49 | 26.19 |
August | 25.55 | 27.65 | 26.48 |
September | 26.60 | 32.00 | 31.40 |
October | 29.50 | 33.98 | 33.65 |
November | 32.27 | 38.55 | 37.75 |
December | 37.81 | 43.78 | 41.20 |
Source: In-house analysis based on WSE data.
Rate of return
End of year, December 31st | |||
---|---|---|---|
Year | Rate of return at end of period (%) | Rate of return from beginning of year (%) | |
2009 | 166.11 | 166.11 | |
2010 | 14.31 | 14.31 | |
2011 | -35.90 | -35.90 | |
2012 | 76.82 | 76.82 |
Source: In-house analysis based on WSE data.
Months, 2012 | |||
---|---|---|---|
Month | Rate of return at end of period (%) | Rate of return from beginning of year (%) | |
January | 12.02 | 12.02 | |
February | 10.28 | 20.17 | |
March | -2.02 | 16.87 | |
April | 4.11 | 21.67 | |
May | -17.81 | 0.00 | |
June | 17.67 | 19.74 | |
July | -6.13 | 12.40 | |
August | 5.00 | 13.65 | |
September | 18.58 | 34.76 | |
October | 7.17 | 44.42 | |
November | 12.18 | 62.02 | |
December | 9.14 | 76.82 |
Source: In-house analysis based on WSE data.
Volume
According to data furnished by the WSE, the total value of trading on Company’s shares - that is, the aggregate value of all transactions on Grupa LOTOS securities concluded in 2012 - was PLN 2,013.15m. 54.10% of Company’s shares were traded in 2012. The average daily trading volume was 282,000 shares per session.
As at the end of the year | ||||
---|---|---|---|---|
Year | Trading value (PLN m) | Share in trade on the WSE (%) | Turnover rate (%) * | Average trading volume per session |
2009 | 3,642.56 | 1.11 | 173.00 | 381,938 |
2010 | 3,684.33 | 0.88 | 53.40 | 234,464 |
2011 | 3,299.07 | 1.31 | 73.10 | 377,048 |
2012 | 2,013.15 | 1.07 | 54.10 | 282,163 |
Source: In-house analysis based on WSE data.
* Turnover rate – the ratio of annualised trade for a current period to market capitalisation at end of period.
Months, 2012 | ||||
---|---|---|---|---|
Month | Trading value (PLN m) | Share in trade (%) | Turnover rate (%) | Average trading volume per session |
January | 189.46 | 1.06 | 6.10 | 379,430 |
February | 225.38 | 1.25 | 6.40 | 397,127 |
March | 214.68 | 1.11 | 6.20 | 368,315 |
April | 187.20 | 1.48 | 5.00 | 338,203 |
May | 150.55 | 1.05 | 4.60 | 281,384 |
June | 170.11 | 1.10 | 5.00 | 321,139 |
July | 116.84 | 0.74 | 3.40 | 201,949 |
August | 82.41 | 0.57 | 2.40 | 140,576 |
September | 148.96 | 0.99 | 3.90 | 252,139 |
October | 116.61 | 0.73 | 2.80 | 158,500 |
November | 193.81 | 1.29 | 4.30 | 266,366 |
December | 217.14 | 1.50 | 4.10 | 310,169 |
Source: In-house analysis based on WSE data.
Stock market ratios
End of year, December 31st | ||||||
---|---|---|---|---|---|---|
Year | Number of shares | Capitalisation at year end (PLN m) | Book value (PLN m) | Earnings per share (PLN) | P/E ** | P/BV ** |
2009 | 129.87 | 4,130 | 6,489.76 | 7.44 | 4.60 | 0.61 |
2010 | 129.87 | 4,721 | 7,266.09 | 5.23 | 7.00 | 0.63 |
2011 | 129.87 | 3,026 | 7,829.99 | 5.03 | 4.63 | 0.38 |
2012 | 129.87 | 5,351 |
Source: In-house analysis based on WSE and Company data.
** Based on the year-end price.
Dividend Policy
Distributions of dividend for the years covered by the current strategy, i.e. for 2011–2015, are subject to the optimisation of LOTOS Group financing. Grupa LOTOS' financial strategy provides for distribution of up to 30% of net profit as dividend.
The Company’s Board recommended that no part of the 2011 net profit be distributed among the Company’s shareholders.
On June 28th 2012, acting upon the Board's recommendation, the General Meeting resolved to distribute the 2011 profit as follows:
- PLN 306,169,935.90 was transferred to statutory reserve funds,
- PLN 1,500,000.00 was transferred to the Special Account designated for financing corporate social responsibility (CSR) projects.
Dividend and dividend yield
Financial year | Dividend per share (PLN) | Dividend per share (PLN) | Share price at the year end (PLN) | Dividend yield* (%) |
---|---|---|---|---|
2005 | 0.00 | 0.00 | 44.20 | |
2006 | 40,932,000.00 | 0.36 | 49.30 | 0.73 |
2007 | 0.00 | 0.00 | 44.50 | |
2008 | 0.00 | 0.00 | 11.95 | |
2009 | 0.00 | 0.00 | 31.80 | |
2010 | 0.00 | 0.00 | 36.35 | |
2011 | 0.00 | 0.00 | 23.30 |
* Dividend yield – dividend per share to price per share.
Historical dividend per share
Financial year | Dividend per share (PLN) | % of net profit | Dividend record date* | Dividend payment date** |
---|---|---|---|---|
2005 | 0.00 | 0.00 | ||
2006 | 0.36 | 10.06 | June 11 2007 | not later than July 31 2007 |
2007 | 0.00 | 0.00 | ||
2008 | 0.00 | 0.00 | ||
2009 | 0.00 | 0.00 | ||
2010 | 0.00 | 0.00 | ||
2011 | 0.00 | 0.00 |
* Dividend record date – date on which the list of shareholders entitled to receive dividend for a given financial year is determined.
** Dividend payment date – date on which dividend is paid to the Company's shareholders.
Brokers' recommendations
According to the Company’s knowledge, in 2012 brokers issued 24 recommendations (including also updates to recommendations), as follows:
- 1 recommendation “Buy”,
- 3 recommendations “Accumulate”,
- 6 recommendations “Hold”,
- 1 recommendation “Reduce”,
- 13 recommendations “Sell”.
According to the brokers, the target price of Grupa LOTOS shares fluctuated from PLN 19.40 to PLN 38.90. The average price of Grupa LOTOS shares was PLN 26.58 in 2012.
The market value of Grupa LOTOS shares fluctuated from PLN 21.30 to PLN 43.78. At the end of 2012, the price stood at PLN 41.20.