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Lotos to stick to investment plan

Poland's second-largest refiner Lotos will go ahead with its investment plans through to 2012, Chief Executive Pawel Olechnowicz was quoted as saying.

He also said the 2009 results of the company could be seriously “burdened.”

“The amount of 5.1 billion zlotys (of investment) is still valid. We will continue projects that have already been started and which require continuation,” Olechnowicz told daily Parkiet in an interview.

“But undertakings, which would mean an increase of the 5.1 billion zlotys amount, could be realized later, like in 2011,” he added.

In December, Olechnowicz told Reuters Lotos may need to cut costs and readjust its strategy to adapt to worsening economic conditions as the Polish economy slowed sharply.

Lotos, which made a 238 million zloty net loss in the third quarter and has already signaled the fourth quarter may be even worse due to one-off costs, expects the situation to improve in 2009.

Olechnowicz told Parkiet the company would need to collect more oil stocks in 2009, which would entail higher costs and an additional “very big” burden on the balance sheet. (Reuters)