Lotos held its EGM yesterday, where majority owner Polish Treasury substantially reshuffled the supervisory board of the company dismissing seven out of nine of its members and elected five new ones. According to our information, the two members who kept their posts are representatives of the employees. Ex-Treasury Minister Mikosz said that he sees no reason to change the management of Lotos. PM Marcinkiewicz, also acting as Treasury Minister of Poland, appears to have given in to pressure from his party and removed the supervisory board, which was appointed by the previous government. In light of this, we would expect changes to the BoD too. The complete change of the top management however, could delay the PKRT project, and would therefore see it as a risk factor to the share price. At the moment we maintain our Buy recommendation on Lotos, with our target price of PLN 56.