THE SUPERVISORY BOARD APPROVES THE ANNUAL REPORT OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA 2020
Ljubljana, 18 March 2021 – At its 59th meeting held today, the Supervisory Board of Petrol d.d., Ljubljana, discussed and approved the Annual Report of the Petrol Group and Petrol d.d., Ljubljana, for the year 2020.
In 2020 the world was faced with the Covid-19 pandemic which also had a significant impact on the operations of the Petrol Group. In January and February 2020, the Petrol Group operated without any disruption and according to plan in all of its markets. In March 2020, however, the business environment deteriorated considerably with the onset of the pandemic. Measures through which governments restricted movement between countries and local communities in order to contain the pandemic gave rise to traffic restrictions which depressed the sales of petroleum products significantly. Petrol Group companies have been closely monitoring the situation since the outbreak of the epidemic and have implemented the necessary measures to contain the spread of the virus and ensure uninterrupted energy-product supply. When developing measures and putting them into practice, the Petrol Group complied fully with instructions issued by authorities in all of its markets. In the second wave of the pandemic, the Petrol Group's primary focus was still on measures aimed at protecting the health of Petrol's customers and employees. There was no disruption in the energy-product supply.
The Petrol Group responded to the crisis caused by the epidemic in a comprehensive manner. Initially, activities were focused on ensuring the continuity of operations in the changed circumstances and on identifying and managing risks. Further activities, however, had a long-term focus so that the Petrol Group could operate without interruption in a very different business environment.
Due to the natural disaster (the pandemic) and the resulting economic crisis, the 2020 business plan could not be achieved. Because it was uncertain how the situation would develop following the outbreak of the epidemic, the Petrol Group prepared different scenarios for operations in 2020, estimating that the Petrol Group's EBITDA for 2020 could amount to between 73 and 79 percent of the 2019 EBITDA. The Petrol Group responded quickly to changed market conditions by adjusting its product range and streamlining and optimising costs, thus achieving results in 2020 that were better than foreseen in the above scenarios. In 2020 the benefits of having diversified its activities was also observed as non-petroleum activities had an additional positive impact on the Petrol Group's performance.
The Petrol Group's adjusted gross profit for 2020 stood at EUR 426.9 million, a year-on-year decrease of 10 percent. This was due to a drop in petroleum product sales resulting from movement restrictions introduced by governments to contain the pandemic and from the economic downturn the pandemic had caused. EBITDA totalled EUR 166.6 million, which was 15 percent less than in 2019 but still better compared to main competitors in the region. The Petrol Group generated 44 percent of its EBITDA through petroleum product sales, 23 percent through the sale of other energy products (natural gas, electricity, LPG), 18 percent through merchandise sales, 12 percent through the sale of energy and environmental systems, and 3 percent through renewable electricity production. The Petrol Group's net profit stood at EUR 72.3 million, down 31 percent relative to the same period of the previous year.
In 2020 the Petrol Group sold 3.0 million tons of petroleum products, down 19 percent year-on-year (mostly due to a decrease in retail sales arising from the pandemic). The sales of liquefied petroleum gas totalled 148.8 thousand tons, which was 16 percent less than in the same period of the previous year. Electricity sales stood at 19.9 TWh in 2020 and natural gas sales at 27.2 TWh. In 2020 the Petrol Group generated EUR 446.9 million in revenue from the sale of merchandise, a decrease of 3 percent compared to the same period of the previous year. Among other factors, this was the result of a decrease in the number of stops at service stations and the suspension of certain activities as a result of the epidemic. At the end of 2020, the Petrol Group operated 500 service stations, of which 318 in Slovenia, 110 in Croatia, 42 in Bosnia and Herzegovina, 15 in Serbia and 15 in Montenegro.
Considering that the Company has performed better than its main competitors in the region in terms of EBITDA dynamic while maintaining the BBB- credit rating with a stable outlook, the Supervisory Board of Petrol d.d., Ljubljana is of the opinion that the Management Board of Petrol d.d., Ljubljana responded appropriately to the pandemic and had control of the situation in the given circumstances. The Supervisory Board considers the Management Board's work and the results it has achieved as very successful given the difficult situation in 2020.
President of the Supervisory Board
Nada Drobne Popović
President of the Management Board