Grupa Lotos SA, Poland’s second-largest oil refiner, headed for the lowest level this month after posting its biggest quarterly loss in two years.
The shares retreated as much as 3.2 percent, and traded 1.8 percent lower at 26.17 zloty as of 10:48 a.m. in Warsaw, set for the weakest close since July 30.
Lotos reported a net loss of 528.8 million zloty ($161 million) for the three months ended June 30, compared with a 270 million-zloty profit a year earlier, it said in a regulatory statement today. The mean estimate of four analysts surveyed by Bloomberg was for a loss of 67 million zloty.
“We still see very few reasons to be excited about this stock,” Bram Buring and Robert Rethy, Prague-based analysts at Wood & Co., wrote in a note today. “It does not appear to be cheap enough to justify the very high associated risks.”
Gdansk, northern Poland-based Lotos wrote down 934.6 million zloty from the value of its 20 percent stake in the Yme oil field off the coast of Norway, saying production will start in the third quarter of 2015, compared with an earlier plan of starting in January next year.
The refiner had spent about 1.5 billion zloty on the project which was originally set to produce about 100,000 tons of oil quarterly for Lotos since 2010.
Lotos will be able to give more precise information on when production will begin at the field in October or November, Deputy Chief Executive Officer Zbigniew Paszkowicz said at a conference call today. A start in 2015 is a “conservative” forecast, he said.