Ljubljana, 23 August (STA) - Slovenia's largest energy group Petrol reported on Friday a net profit of EUR 52.1 million for the first half of the year, a 1% decrease year-on-year, as sales revenue fell by 14% to 2.9 billion. The management said the company responded well to a challenging market situation, including to the continuing petroleum product price regulation.
Petrol, which operates 318 service stations in Slovenia and another 261 in the remaining former Yugoslav republics, said the decrease in revenue was mainly due to the lower prices of energy commodities on spot and futures markets.
The management and supervisory board said operations in the first half of the year were in line with plans, despite the negative performance from the sale of petroleum products at most Slovenian outlets due to price regulation.
They note that in addition to Slovenia, Petrol is also facing price regulation of petroleum products on the Croatian and Serbian markets, which, they added, is significantly less restrictive.
According to the business report, the group sold 1.86 million tonnes of fuels and petroleum products, 1.5% less than in the first half of 2023.
Sales on the Slovenian market increased slightly and growth was significantly higher on the markets of SE Europe, while Petrol recorded a decline on the EU markets as a result of last year's exceptional sales due to the shortage of petroleum products caused by the embargo on imports from Russia.
Petrol generated revenue of EUR 305.9 million from the sale of commercial goods and services at the group level, which is 16.5% more than in the same period last year.
Petrol is also increasing the use and number of e-vehicle charging stations. At the end of June, there were 514 in Petrol's entire network. In the first six months, the group also sold 10.2 terawatt-hours of natural gas, 5.8 terawatt-hours of electricity, and 77,500 megawatt-hours of thermal energy.
With a gross operating profit, including net financial instruments for goods, of EUR 335.5 million, which is 1% lower than in the same period last year, earnings before interest, taxes, depreciation, and amortisation (EBITDA) amounted to EUR 123.7 million, an increase of 6%.
According to the business plan, Petrol intends to allocate EUR 130 million for investments at the group level, of which 44% for energy transition projects. However, the company warns that the low regulated margins in Slovenia, which do not cover all operational costs of fuel distribution and sales, negatively impact the group's investment capacity, especially for energy transition projects crucial for the sustainable transition to green fuels.
"If the petroleum product price regulation eventually provides for a sufficient margin, we will be able to speed up the investment cycle and ensure a stable capital structure," the company wrote.
For the entire year, the Petrol group plans sales revenues of EUR 5.8 billion, a gross operating profit of EUR 705.6 million, EBITDA of EUR 304.6 million, and a net profit of EUR 156.5 million.
Given that the government restored the maximum allowed margin for diesel and 95-octane petrol to 2023 levels in mid-July, Petrol anticipates achieving its set goals by year-end.
Despite the recent margin increase, they estimate that it is still not at a level that would ensure sustainable long-term growth in oil derivative sales, especially in light of increasing environmental requirements that Petrol must finance from this activity.
Comparatively, margins in Slovenia are by far the lowest in Europe, according to the company, which ended 2023 with EUR 7 billion in sales revenue and a net profit of EUR 136.6 million.
