The Supervisory Board Approves the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2016

Ljubljana, 17 February 2017At its 37th meeting held on 17 February 2017, the Supervisory Board of Petrol d.d., Ljubljana discussed and approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2016. The Group delivered a successful performance.

The Petrol Group's operations in 2016 were still strongly affected by price movements in the oil market and the US dollar exchange rate. In 2016 Petrol witnessed intense activity in the oil markets. The average price of crude oil stood at USD 43.7 per barrel in 2016, down 17 percent year-on-year. Other important factors included the economic situation in the sales markets and measures taken by governments to regulate prices and the energy market. Slovenia and Croatia, Petrol's main sales markets, saw their economies grow in 2016, while the conditions in other SE Europe markets remained difficult. In Slovenia, the prices of extra light heating oil and of the 98-octane and higher-octane petrol have been liberalised and determined by the market since 9 April 2016. Likewise, the prices of petrol and diesel fuel at motorway and expressway service stations have been liberalised and determined by the market since 9 November 2016, while the prices of petrol and diesel fuel at other service stations remained regulated.

In 2016 the Petrol Group generated EUR 3.9 billion in net sales revenue, up 1 percent from 2015. Its operating profit totalled EUR 99.6 million, which was 10 percent more than in the previous year. The Group’s EBITDA amounted to EUR 143.8 million, an increase of 6 percent on 2015, and its net profit to EUR 72.7 million, up 11 percent year-on-year.

The Petrol Group sold 3.2 million tons of petroleum products in 2016, a year-on-year increase of 12 percent. Revenue from merchandise sales totalled EUR 505.2 million or 4 percent more than in 2015. The number of service stations at the end of 2016 stood at 487, of which 316 in Slovenia, 105 in Croatia, 36 in Bosnia and Herzegovina, 9 in Serbia, 10 in Montenegro and 11 in Kosovo. In 2016 the Petrol Group also sold 123.0 million m3 of natural gas, 141.6 thousand tons of liquefied petroleum gas, 17.6 TWh of electricity and 129.5 thousand MWh of heat, exceeding the previous year's sales figures in all areas.

In 2016 the Petrol Group adopted the Strategic Business Plan 2016–2020. By laying down the new strategic goals and the strategies to achieve them, the Petrol Group follows up on all the developmental steps taken as part of the transition to an integrated energy company, but first and foremost defines the mechanisms, ways and methods that will provide the Group with an important impetus also in the future. Achieving these goals strengthens the long-term financial stability of the Petrol Group. Through a stable dividend policy, Petrol will ensure a balanced dividend yield for shareholders and the use of free cash flows to finance the Group’s investment plans. This will allow for long-term growth and development of the Petrol Group, maximising its value for the owners. Strong operating performance in 2016 shows that the Petrol Group is on the right track.




Tomaž Kuntarič
President of the Supervisory Board

Tomaž Berločnik
President of the Management Board

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