The management boards of both PKN Orlen and Grupa Lotos will propose to withhold dividend payouts at their general shareholder meetings scheduled for June. In the case of PKN Orlen, the financing needs of the Mazeikiu acquisition, while at Lotos, the ongoing heavy investment program justify the ruling. Both decisions were in line with our expectations and also in accordance with market forecasts. We retain our Buy ratings on both companies, with a target price of PLN 59.1 for Lotos and PLN 63.2 for PKN Orlen.