Talisman has told Petroleum Safety Authority Norway that the Yme platform off Norway could collapse if cracks in the structure are not repaired before winter, Teknisk Ukeblad reports. Our view: Although Lotos impaired the majority (roughly PLN 1.18bn or 79% of the book value) of the asset, the collapse of the platform and the subsequent delay of production could leave Lotos facing a further loss, perhaps to an amount that will virtually wipe out the current carrying value of the asset. While at this stage the news would seem to be a warning rather than a reflection of reality, it suggests that repair works may not be progressing with the desired speed. In our view, Lotos’ current share price (PLN 32.7 per share) and valuation (2012-2013F EV/EBITDA of 8.2x and 6.8x; some 50% and 40% above peers) does not discount the negative developments at Yme. In fact, it seems that (temporarily) strong refining margins have made investors overlook Lotos’ inability to show near-term (and maybe even medium-term) organic growth.