Ljubljana, 15 November (STA) - Slovenia's largest energy group Petrol reported on Friday revenues of EUR 4.5 billion for the first nine months, a 13% decline compared to the same period last year. Despite the lower revenue, fuel sales volumes increased and the group's net profit rose by 30% to EUR 123.6 million.
Petrol's earnings before interest, taxes, depreciation, and amortisation or EBITDA was EUR 242 million, up 20% year-on-year. The company attributes this to strong performance in the merchandise and services sector, as well as prudent cost management.
Petrol said in its press release that stable and successful operations were maintained despite the period being affected by regulated fuel prices and geopolitical uncertainty. According to chairman Sašo Berger, the results reflect Petrol's adaptability and careful operational management and confirm that the strategy of diversifying the business has been successful.
He added however that "the existing regulatory framework in Slovenia still does not allow us to cover all operating costs and therefore does not provide the conditions for long-term growth, especially in the face of increasing environmental requirements, which we have to finance from the sale of petroleum products".
Fuel sales in Slovenia remain challenging due to low profit margins, even with a margin increase in July, with Petrol saying this margin is still the lowest in Europe. The company faces regulatory restrictions on other markets as well, although these are reportedly less stringent than in Slovenia.
In the first nine months, the Petrol group, which employs 5,936 people, sold 2.9 million tonnes of fuel, marking a 1% increase. Growth was primarily driven by expanded sales in SE Europe, while sales in Slovenia remained stable but pressured by price regulation. The slight decline in EU market sales reflects an extraordinary spike last year due to fuel shortages following the Russian import ban.
In the merchandise and services segment, Petrol saw 13% revenue growth to EUR 484.2 million, expanded its electric charging stations to 555, and sold 14.6 TWh of natural gas and 8.4 TWh of electricity. While business customer sales declined slightly due to weak macroeconomic conditions, residential electricity and gas customers increased.
The core company's revenue fell from nearly EUR 4 billion last year to EUR 3.3 billion, with an operating profit of EUR 74.6 million and a net profit of just under EUR 93 million.
Petrol's annual plan had allocated EUR 130 million for investment, 44% of which for energy transition projects. However, low profit margins forced the company to scale back spending, limiting investments to EUR 41.7 million by Q3, with plans to accelerate in the final quarter.
"Low regulated margins in Slovenia prevent adequate financing of additional legally mandated steps in the energy transition, such as costs for biofuel blending, CO2 levies, and expenses related to ensuring energy savings for end consumers," the group moreover said, calling for adjustments to the regulatory framework.
