REPORT ON THE OPERATIONS
OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA
IN THE FIRST THREE MONTHS OF 2024
Public
TABLE OF CONTENTS | PUBLIC |
CONTENTS | ||
INTRODUCTION | 4 | |
1. | Statement of the Management's Responsibility | 4 |
2. | Introductory notes | 5 |
3. | Business highlights of the Petrol Group | 5 |
4. | Alternative performance measures | 8 |
5. | The Petrol Group in the region | 9 |
6. | Strategic orientation | 10 |
BUSINESS REPORT | 11 | |
7. | Business performance analysis | 11 |
8. | Operations by product groups | 22 |
9. | Investments | 32 |
10. | Risk management | 33 |
11. | Share and ownership structure | 37 |
SUSTAINABLE DEVELOPMENT | 41 | |
12. | Responsibility towards the natural environment | 41 |
13. | Employees | 41 |
14. | Quality control | 42 |
15. | Social responsibility | 43 |
OTHER INFORMATION | 45 | |
16. | General Meeting of Petrol d.d., Ljubljana | 45 |
17. | Management Board and Supervisory Board of Petrol d.d., Ljubljana | 45 |
18. | Credit rating | 45 |
19. | Events after the end of the accounting period | 45 |
FINANCIAL REPORT | 46 | |
20. | Financial performance of the Petrol Group and Petrol d.d., Ljubljana | 46 |
21. | Notes to the financial statements | 54 |
22. | Segment reporting | 55 |
23. | Notes to individual items in the financial statements | 58 |
24. | Financial instruments and risks | 72 |
25. | Related party transactions | 86 |
26. | Contingent liabilities | 88 |
27. | Events after the reporting date | 88 |
Appendix 1: Organisational structure of the Petrol Group | 89 |
PETROL REPORT ON THE OPERATIONS OF THE PETROL GROUP AND THE COMPANY PETROL D.D., LJUBLJANA IN THE FIRST THREE MONTHS OF 2024 | 3 |
PUBLIC
INTRODUCTION
1. Statement of the Management's Responsibility
Members of the Management Board of Petrol d.d., Ljubljana, which comprises Sašo Berger, President of the Management Board, Drago Kavšek, Member of the Management Board, Marko Ninčević, Member of the Management Board, Jože Smolič, Member of the Management Board, Metod Podkrižnik, Member of the Management Board and Zoran Gračner, Member of the Management Board and Worker Director, declare that to their best knowledge:
- the financial report of the Petrol Group and Petrol d.d., Ljubljana, for the first three months of 2024 has been drawn up in accordance with International Financial Reporting Standards as adopted by the EU and gives a true and fair view of the assets and liabilities, financial position, financial performance and comprehensive income of Petrol d.d., Ljubljana, and other consolidated companies as a whole;
- the business report of the Petrol Group and Petrol d.d., Ljubljana, for the first three months of 2024 gives a fair view of the development and results of the Company's operations and its financial position, including the description of material risks that Petrol d.d., Ljubljana, and other consolidated companies are exposed to as a whole;
- the report of the Petrol Group and Petrol d.d., Ljubljana, for the first three months of 2024 contains a fair presentation of significant transactions with related entities, which has been prepared in accordance with International Financial Reporting Standards.
Sašo Berger | Drago Kavšek | Marko Ninčević |
President of the | Member of the | Member of the |
Management Board | Management Board | Management Board |
Metod Podkrižnik | Jože Smolič | Zoran Gračner |
Member of the | Member of the | Member of the Management |
Management Board | Management Board | Board and Worker Director |
Ljubljana, 9 May 2024
PETROL REPORT ON THE OPERATIONS OF THE PETROL GROUP AND THE COMPANY PETROL D.D., LJUBLJANA IN THE FIRST THREE MONTHS OF 2024 | 4 |
INTRODUCTION | PUBLIC |
2. Introductory notes
The report on the operations of the Petrol Group and Petrol, d.d., Ljubljana, Dunajska 50, in the first three months of 2024 has been published in accordance with the Market in Financial Instruments Act, the Ljubljana Stock Exchange Rules, Guidelines on Disclosure for Listed Companies and other relevant legislation.
The figures and notes regarding the operations have been prepared based on the unaudited consolidated financial statements of the Petrol Group and the unaudited financial statements of Petrol d.d., Ljubljana, for the first three months of 2024, in compliance with the Companies Act and IAS 34 - Interim Financial Reporting.
Subsidiaries are included in the consolidated financial statements, which have been prepared in accordance with IFRS, on the basis of the full consolidation method, while jointly controlled entities and associates are included on the basis of the equity method.
In accordance with IFRS, investments in subsidiaries, jointly controlled entities and associates are carried at historical cost in the separate financial statements.
The report on the operations in the first three months of 2024 has been published on the website of Petrol d.d., Ljubljana, (www.petrol.eu, www.petrol.si), and is available on demand at the registered office of Petrol d.d., Lju- bljana, Dunajska cesta 50, 1000 Ljubljana, every working day between 8 am and 3 pm.
The Company's Supervisory Board discussed the report on the operations of the Petrol Group and Petrol d.d., Ljubljana, in the first three months of 2024 at its meeting held on 16 May 2024.
PROFILE OF THE PARENT COMPANY, PETROL D.D., LJUBLJANA, AS AT 31 MARCH 2024
Company name | Petrol, slovenska energetska družba, d.d., Ljubljana |
Abbreviated company name | Petrol d.d., Ljubljana |
Registered office | Dunajska cesta 50, 1000 Ljubljana |
Telephone | +386 (0)1 47 14 234 |
Website | www.petrol.eu, www.petrol.si |
Activity code | 47.301 |
Company registration number | 5025796000 |
Tax number | SI 80267432 |
Share capital | EUR 52.24 million |
Number of shares | 41,726,020 |
President of the Management Board | Sašo Berger |
Members of the Management Board | Drago Kavšek, Marko Ninčević, Jože Smolič, Metod Podkrižnik, Zoran Gračner (Worker Director) |
President of the Supervisory Board | Janez Žlak |
3. Business highlights of the Petrol Group
In the first quarter of 2024, the Petrol Group's operations were in line with the set plans, yet still under a negative influence of the energy price regulation. At the end of 2023, which ended with energy price stabilisation, we were faced with further tightening of the regulatory framework for petroleum products in Slovenia and the still unresolved issue regarding the compensation for the damage due to the natural gas price regulation on the Croatian market.
According to international institutions, GDP in Slovenia's main trading partners will strengthen in 2024 compared to 2023, although not as much as projected in the autumn. Higher economic growth is also forecast for Petrol's two largest markets, that is, Slovenia and Croatia.
Despite the challenging situation, the Petrol Group generated good business results in the first three months of 2024. The EBITDA amounted to EUR 49.2 million; due to the stricter regulation of prices on key markets, it is
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INTRODUCTION | PUBLIC |
lower compared to the same period last year but due to the additional activities in the field of cost management, we nevertheless achieved a result which is slightly above the plan.
For 2024, the Petrol Group projects sales revenue of EUR 5.8 billion, a gross profit of EUR 705.6 million, the EBITDA of EUR 304.6 million and the net profit of EUR 156.5 million. Unforeseen interventions in the price policy by regulators can cause deviations from the set targets, but we nonetheless believe that if the business situation normalises and regulation becomes more moderate, we could achieve the set year-end targets.
As set out in our business plan, our aim was to earmark EUR 130.0 million for investments, of which 44 percent for energy transition projects. However, the current margins, which are too low, make it impossible to cover all costs and have affected the Petrol Group's investment capacity, especially with regard to the energy transition projects which are vital in making a transition to green fuels. The energy price regulatory framework should take into account the additional costs arising from the energy transition, such as biofuel blending, CO2 tax and potential fines for failing to meet environmental targets. This is the key reason why our anticipated investments are behind the dynamic of our plan.
THE PETROL GROUP | Index | Index | |||||
Unit | 1-3 2022 | 1-3 2023 | 1-3 2024 | 2024/2023 | 2024/2022 | ||
Revenue from contracts with customers | EUR | million | 1,936.8 | 1,826.5 | 1,472.4 | 81 | 76 |
Gross profit1 | EUR | million | 162.2 | 145.7 | 147.0 | 101 | 91 |
Gross profit + Net Derivative Financial Instruments for Commodities1 | EUR | million | 143.1 | 158.9 | 149.1 | 94 | 104 |
Operating profit | EUR | million | 38.9 | 34.0 | 24.1 | 71 | 62 |
Net profit | EUR | million | 32.4 | 24.8 | 15.0 | 60 | 46 |
Equity3 | EUR | million | 860.2 | 923.0 | 964.7 | 105 | 112 |
Total assets3 | EUR | million | 2,740.6 | 2,635.3 | 2,513.5 | 95 | 92 |
EBITDA1, 2 | EUR | million | 65.6 | 59.1 | 49.2 | 83 | 75 |
EBITDA/Gross profit1 | % | 40.4 | 40.6 | 33.5 | 82 | 83 | |
EBITDA / (Gross profit + Net Derivative Financial Instruments for | % | 45.8 | 37.2 | 33.0 | 89 | 72 | |
Commodities)1 | |||||||
Operating costs/Gross profit1 | % | 73.5 | 89.6 | 87.9 | 98 | 120 | |
Operating costs / (Gross profit + Net Derivative Financial Insruments for | % | 83.3 | 82.2 | 86.7 | 105 | 104 | |
Commodities)1 | |||||||
Net debt/Equity1, 3 | 0.6 | 0.5 | 0.5 | 95 | 82 | ||
Net debt/EBITDA1, 3, 4 | 5.4 | 1.7 | 1.5 | 91 | 29 | ||
Added value per employee1 | EUR thousand | 16.8 | 16.6 | 16.2 | 98 | 97 | |
Earnings per share attributable to owners of the controlling company | EUR | 0.7 | 0.6 | 0.4 | 64 | 55 | |
Net investments1 | EUR million | 8.2 | 18.3 | 16.2 | 89 | 199 | |
Volume of fuels and petroleum products sold | thousand tons | 906.4 | 884.1 | 855.7 | 97 | 94 | |
Volume of natural gas sold | TWh | 5.7 | 4.6 | 5.7 | 124 | 100 | |
Volume of electricity sold | TWh | 2.9 | 2.6 | 3.1 | 120 | 107 | |
Revenue from the sales of merchandise and services | EUR million | 101.5 | 118.3 | 138.0 | 117 | 136 |
- Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
- EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
- Data for 2022 and 2023 as at 31 December, data for 2023 as at 31 March.
- For 2022 and 2023, calculated at the annual level. EBITDA for 2024 is the annually planned one.
THE PETROL GROUP | 31 December | 31 December | 31 March | Index | Index | |
Unit | 2022 | 2023 | 2024 | 2024/2023 | 2024/2022 | |
Number of employees | 6,224 | 5,945 | 5,963 | 100 | 96 | |
Number of service stations | 594 | 594 | 594 | 100 | 100 | |
Number of e-charging points operated by the Petrol Group | 417 | 495 | 509 | 103 | 122 | |
Number of electricity customers | thousand | 226 | 224 | 222 | 99 | 98 |
Number of natural gas customers (data for the Geoplin Group are | thousand | 60 | 61 | 62 | 101 | 102 |
not included) | ||||||
PETROL REPORT ON THE OPERATIONS OF THE PETROL GROUP AND THE COMPANY PETROL D.D., LJUBLJANA IN THE FIRST THREE MONTHS OF 2024 | 6 |
INTRODUCTION | PUBLIC |
EBITDA, IN EUR MILLION | NET PROFIT OR LOSS, IN EUR MILLION | ||||||||
1-3 2021 | 54.0 | 1-3 2021 | 27.8 | ||||||
1-3 2022 | 65.6 | 1-3 2022 | 32.4 | ||||||
1-3 2023 | 59.1 | 1-3 2023 | 24.8 | ||||||
15.0 | |||||||||
1-3 2024 | 49.2 | 1-3 2024 |
THE NUMBER OF SERVICE STATIONS | VOLUME OF PETROLEUM PRODUCTS SOLD, IN MILLION TONS | ||||||||
31. 12. 2021 | 593 | 1-3 2021 | 0.64 | ||||||
31. 12. 2022 | 594 | 1-3 2022 | 0.91 | ||||||
31. 12. 2023 | 594 | 1-3 2023 | 0.88 | ||||||
594 | 0.86 | ||||||||
31. 3. 2024 | 1-3 2024 |
NUMBER OF EMPLOYEES
31. 12. 2022 | 2,155 | 3,059 | 1,010 | ||||||
31. 12. | 2023 | 2,252 | 2,837 | 856 | |||||
31. 3. | 2024 | 2,428 | 2,836 | 699 | |||||
Third-party managed service stations in Slovenia
Subsidiaries
Petrol d.d., Ljubljana
STRUCTURE OF INVESTED ASSETS, IN % | ||||
Fuels and petroleum products, merchandise and services − retail | ||||
Energy transition and digitalization | ||||
21.0 | ||||
Fuels and petroleum products − logistics | ||||
4.9 | ||||
Other | ||||
9.3 | ||||
6,224
5,945
5,963
64.8
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INTRODUCTION | PUBLIC |
4. Alternative performance measures
To present its business performance, the Petrol Group also uses alternative performance measures (APMs) as defined by ESMA (The European Securities and Market Authority). The APMs we have chosen provide additional information about the Petrol Group's performance.
LIST OF ALTERNATIVE PERFORMANCE MEASURES
Alternative performance | ||
measures | Calculation information | Reasons for choosing the measure |
Gross profit | Gross profit = Revenue from the sale of merchandise and services - | The Petrol Group has no direct influence over global energy prices, |
Cost of goods sold | which makes the gross profit more appropriate to monitor business | |
performance. | ||
Gross profit + Net DFI for | Gross profit + Net Derivative Financial Instruments for Commodities | Net derivative financial instruments for commodities are intended for |
Commodities | hedging price and volumetric risks and, hence, the amount of sales | |
revenue and the cost of goods sold. In terms of comparison with the | ||
previous period, the ratio is more appropriate than merely the gross | ||
profit. |
EBITDA | EBITDA = Operating profit + Net Allowances for operating receivables |
+ Depreciation and amortisation charge. | |
EBITDA/Gross profit | Ratio = EBITDA/Gross profit |
EBITDA indicates business performance and is the primary source for ensuring returns to shareholders.
The ratio is a good approximation of the share of free cash flows from operating activities in gross profit.
EBITDA / (Gross profit + Net | EBITDA / (Gross profit + Net Derivative Financial Instruments for |
DFI for Commodities) | Commodities) |
Operating costs | Operating costs = Costs of materials + Costs of services + Labour |
costs + Depreciation and amortisation + Other costs | |
Operating costs/Gross profit | Ratio = Operating costs/Gross profit |
Operating costs / (Gross profit | Operating costs / (Gross profit + Net Derivative Financial Instruments |
+ Net DFI for Commodities) | for Commodities) |
Net debt/Equity | Net debt = Current and non-current financial liabilities + Current and |
non-current lease liabilities - Cash and cash equivalents; Ratio = Net | |
debt/Equity |
The share of EBITDA in the gross profit, increased by the net derivative financial instruments for commodities is a good approximation to
the share of free cash flow in the gross profit, increased by the net derivatives and ensures better comparability to the previous period and the plan.
The criterion is important in terms of the cost-effectiveness of operations.
The ratio is relevant because it concerns the cost-effectiveness of operations.
The ratio is relevant in terms of the operational cost efficiency and ensures better comparability to the previous period and the plan.
The ratio reflects the relation between debt and equity and is, as such, relevant for monitoring the Company's capital adequacy.
Net debt/EBITDA | Ratio = Net debt/EBITDA | The ratio expresses the Petrol Group's ability to settle its financial |
obligations, indicating in how many years financial debt can be settled | ||
using existing liquidity and cash flows from operating activities. |
Added value/Employee | Added value per employee = (EBITDA + Integral labour costs)/Average |
number of employees. Integral labour costs = Labour costs relating to | |
Petrol Group employees + Labour costs relating to third-party managed | |
service stations, which stood at EUR 5.2 million in the period from | |
January to March 2024 and EUR 6.9 million in the period from January | |
to March 2023. | |
Working capital | Working capital = Operating receivables + Contract assets + |
Inventories - Current operating liabilities - Contract liabilities |
This productivity ratio indicates average newly created value per Petrol Group employee.
The ratio reflects operational liquidity of the Petrol Group.
Net investments | Net investments = Investments in fixed assets (EUR 17.5 million in the |
period from January to March 2024) - Disposal of fixed assets and | |
reimbursements (EUR 1.3 million in the period from January to March | |
2024). |
The information about investments reflects the direction of the Petrol Group's development.
Book value per share | Book value per share = equity/total number of issued shares | Book value per share reflects the value of a public limited company's |
total equity per share. |
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INTRODUCTION | PUBLIC |
5. The Petrol Group in the region
AUSTRIA | ROMANIA |
SLOVENIA
CROATIA
BOSNIA AND | SERBIA |
HERZEGOVINA |
MONTE-
NEGRO KOSOVO
NORTH
MACEDONIA
The Petrol Group has companies in the following countries:
- Slovenia
- Croatia
- Bosnia and Herzegovina
- Serbia
- Montenegro
- Kosovo
- North Macedonia
- Austria
- Romania
The Group also operates in other countries.
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INTRODUCTION | PUBLIC |
6. Strategic orientation
Our mission
Through a broad range of energy commodities, comprehensive energy solutions and digital approach, we put the user at the centre of our attention. We want to become the first choice for shopping on the go. Together with our partners, we create solutions for a simpler transition to cleaner energy sources. We are building a green energy future in a decisive and active manner, increasing the value for our customers, shareholders and society over the long term.
Our promise
Through the energy transition, we are creating a green future and making a significant contribution to protecting our environment.
Our vision
To become an integrated partner in the energy transition, offering an excellent customer experience.
Our values
- Respect: We respect fellow human beings and the environment.
- Trust: We build partnerships through fairness.
- Excellence: We want to be the best at all we do.
- Creativity: We use our own ideas to make progress.
- Courage: We work with enthusiasm and heart.
At Petrol, we feel a strong sense of responsibility towards our employees, customers, suppliers, business partners, shareholders and the society as a whole. We meet their expectations with the help of motivated and business-oriented employees, we adhere to the fundamental legal and moral standards in all markets where we operate, and we protect the environment.
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PETROL dd published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 06:42:02 UTC.