Petrol d.d. Ljubljana

The main activities of the parent company are the trading of petroleum products, other merchandise, electricity, supply and sale of gas and heat and the sale of services.

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Basic information

Responsible person

Nada Drobne Popović

Activities of the company

Petrol d.d., Ljubljana was formally established on 5 June 1945 as a subsidiary of the state-owned company Jugopetrol. Before being transformed into a private joint-stock company in 1997, Petrol had operated under a variety of different organisational forms. Petrol d.d., Ljubljana's predominant activity is to sell petroleum products and other energy products (liquefied petroleum gas, natural gas and electricity) as well as merchandise and services. In addition, the Company is engaged in environmental and energy solutions projects.

With its 318 service stations, it has a 56-percent share of the Slovene retail market in petroleum products.

It generates the greater part of the Petrol Group's revenue and profits.

In 2019 the company Petrol d.d., Ljubljana generated EUR 3.5 billion in sales revenue, remaining at the level of 2018.

Previously, revenue from the sale of goods also comprised excise duties charged when making a sale and these used to be part of the cost of goods sold. After re-examining this method of presentation, it was determined that it is more appropriate to present revenue from the sale of goods and the cost of goods sold without excise duties. The main reason underlying this change was to ensure better comparability of the financial statements with other companies and the industry, which do not present excise duty as part of revenue. This allows for better analyses and comparisons. In the above examination, other factors determining the nature of the duty and appropriateness of its presentation were also considered: examination of the basis for calculations, the point when the duty is paid, possible changes in the selling prices if the duty changes, risks related to the value of goods inventories. Based on all of the above indicators and an analysis of presentation methods in comparable companies, it was determined that it is appropriate to present revenue from the sale of goods and the cost of goods sold without excise duties (for more details, see pages 170 through 172 of the Financial Report).

In 2019 the accounting policy for recognising realised commodity forward contracts for electricity sales was changed. In accordance with an IFRIC clarification, which became effective in March 2019, these contracts shall be recognised at fair value, whereas they used to recognised at nominal amount before 2019 (for more details, see pages 170 through 172 of the Financial Report).

Petrol d.d., Ljubljana's sales revenue was generated through the sale of:

  • 3.4 million tons of petroleum products,
  • 36.3 thousand tons of LPG,
  • 1.0 TWh of natural gas,
  • merchandise and related services totalling EUR 398.1 million,
  • electricity and energy and environmental solutions.

Adjusted gross profit stood at EUR 348.0 million, which was on a par with the previous year.

Operating costs totalled EUR 267.1 million or 4 percent more than in 2018. The costs of materials totalled EUR 24.5 million and were 2 percent lower than in 2018. The costs of services stood at EUR 120.6 million, an increase of 1 percent over the year before. Labour costs totalled EUR 75.3 million or 13 percent more than in 2018. The increase was the result of new recruitments at the points of sale and in the area of energy solutions, which was expanded. The depreciation and amortisation charge totalled EUR 44.3 million, which was 18 percent more than in 2018. This was mainly due to the depreciation of right-of-use assets (IFRS 16). Other costs totalled EUR 2.3 million and were 73 percent lower than in 2018 owing to the reversal of provisions.

The Petrol Group uses derivative financial instruments (forward contracts and commodity swaps) when purchasing petroleum products and natural gas and trading in electricity. Before 2019, the effects of derivatives had been presented as part of other finance income or expense. In 2019, however, the company Petrol d.d., Ljubljana changed the way it recognises the effects of those transactions; they are now recorded as other revenue or expenses, as part of operating profit or loss. To ensure comparability, the figures for 2018 were also adjusted.

The change was made due to the fact that the above derivatives are an inherent part of operations and need to be considered together with the effects of commodity swaps, i.e. as part of operating profit or loss, as this constitutes one of the activities of Petrol d.d, Ljubljana. The change of presentation is expected to improve the representability of information and the comparability of the Petrol Group’s financial statements with those of other companies. The changes are specified on pages 170 through 172 of the Financial Report.

Other operating revenue stood at EUR 81.5 million, which was EUR 20.7 million more than in 2018. Gain on derivatives totalled EUR 77.1 million or 33 percent more than in 2018. Other operating expenses, the bulk of which is attributable to loss on derivatives, stood at EUR 84.6 million, which was EUR 37.5 million more than in 2018.

Operating profit totalled EUR 77.9 million or 25 percent less than in 2018.

Finance income from dividends of subsidiaries, associates and jointly controlled entities stood at EUR 2.2 million, a decrease of EUR 31.8 million relative to 2018 (IGES d.o.o. dividends for 2018 stood at EUR 30.2 million). Net cash flow stood at EUR -6.8 million, an improvement of EUR 13.8 million compared to 2018. In 2019 Petrol d.d., Ljubljana's allowances for operating and financial receivables were down by EUR 2.3 million relative to the previous year, with its gain on derivatives increasing by EUR 4.6 million. Net foreign exchange differences were negative in 2019 and as such down EUR 0.6 million compared to 2018. Finance expenses decreased by EUR 7.4 million, which was the result of the impairment of investments and goodwill.

Pre-tax profit totalled EUR 73.3 million or 37 percent less than in 2018. Net profit of Petrol d.d., Ljubljana for the year 2019 stood at EUR 60.2 million, down 40 percent relative to 2018.

Total assets of Petrol d.d., Ljubljana as at 31 December 2019 equalled EUR 1.5 billion, which was 2 percent more than at the end of 2018. Non-current assets accounted for EUR 1.0 billion of the above figure, which was 10 percent more than on 31 December 2018, with current assets amounting to EUR 502.0 million, down 12 percent as compared to 31 December 2018. This was mostly the result of a decrease in operating receivables.

The equity of Petrol d.d., Ljubljana as at 31 December 2019 equalled EUR 601.9 million, which was 3 percent more than at the end of 2018.

Contact

PETROL, Slovenska energetska družba, d.d., Ljubljana

Dunajska cesta 50, 1000 Ljubljana