The Supervisory Board discusses the Petrol Group s business results in the first quarter of 2022 and assesses its performance in the current turbulent situation as successful
Ljubljana, 19 May 2022 – At its 11th meeting, the Supervisory Board of Petrol d.d., Ljubljana, took note of the Report on the Operations of the Petrol Group and Petrol d.d., Ljubljana, in the First Three Months of 2022. The Petrol Group has performed successfully in the challenging business situation caused by the energy crisis and the situation in Ukraine. The Management Board of the Company has properly responded to recent developments. The Petrol Group’s key performance indicators increased compared to the same period in the previous year. In the first three months of 2022, EBITDA amounted to EUR 65.6 million, which was significantly affected by the integration of Crodux derivati dva d.o.o. into the Petrol Group.
Turbulent business environment
In the first three months of 2022, the Petrol Group, the same as all other companies, was faced with turbulent developments in global economic and energy markets. The situation in the business environment was strongly affected by the continued Covid-19 epidemic, the increasingly challenging situation on energy markets influenced by the war in Ukraine, and the related measures taken by countries to mitigate the effect of the energy crisis on the population and companies. Economic growth was stable, but it was accompanied by high prices of fuels and energy products. All these factors have affected the operations of the Petrol Group in the first quarter of 2022.
In all markets where it operates, the Petrol Group consistently followed the instructions given by competent institutions, both as regards the implementation of measures to contain the spread of the Covid-19 epidemic and the setting of petroleum product prices. In the first quarter of 2022, the Petrol Group continued its efforts to optimise costs, streamline operations and tailor its offer to the current situation, the same as it had previously done in 2021.
Business results in the first quarter of 2022
In the first three months of 2022, the Petrol Group’s adjusted gross profit stood at EUR 162.2 million, an increase of 18 percent year-on-year largely because of the integration of Crodux derivati dva d.o.o. into the Petrol Group. The Petrol Group’s EBITDA amounted to EUR 65.6 million in the first three months of 2022, which is 21 percent more than in the first three months of 2021. The growth was mainly a result of the integration of Crodux derivati dva d.o.o. into the Petrol Group and a good result in the field of electricity trading. In the EBITDA structure, 37 percent is accounted for by fuels and fuel products, 13 percent by merchandise and services, 47 percent by energy and solutions, and 3 percent by other revenue. Net profit of the Petrol Group for the first three months of 2022 totalled EUR 32.4 million, a year-on-year increase of 17 percent.
In the first three months of 2022, the Petrol Group sold 906.4 thousand tons of fuels and fuel products, a year-on-year increase of 41 percent. The integration of Crodux derivati dva d.o.o. into the Petrol Group had the greatest impact on the growth in the sales of fuels and fuel products. As result of the same integration, the share of sales in Slovenia in the structure of fuels and fuel product sales decreased, whereas the share of sales to SEE markets increased.
In addition to the energy crisis, the sales of fuels and fuel products were affected by the government measures adopted in individual markets. In Slovenia, the price of extra light heating oil has been regulated since 20 October 2021, and the prices of NMB-95 petrol and diesel since 15 March 2022. In the mentioned period, prices of fuels were quite lower in Slovenia than in the majority of its neighbouring countries, which has resulted in significantly increased volumes sold, but it has also negatively affected the adjusted gross profit. In Croatia, prices have been regulated since 7 February 2022 and in Serbia since 12 February 2022. All of this has resulted in the adjusted gross profit from sales of petroleum products being lower than that in the same period of last year.
In the first three months of 2022, the Petrol Group generated a revenue of EUR 101.5 million from the sales of merchandise and services, a decrease of 21 percent year-on-year. The main reason for the drop is the Motorway Company of the Republic of Slovenia’s (DARS) switch to the electronic tolling system and, as result, the recording of net revenue from the sale of motorway vignettes as the difference between the selling price and the cost. Compared to the same period last year, revenue from the sales of food products and warm beverages, which reached record-high values in the first quarter of 2021, decreased because of the required fulfilment of the RVT rule in order to enter points of sale.
In the energy and solutions segment, which includes sales of energy solutions (systems of energy and environmental management of buildings, water supply systems, efficient lighting systems, district energy systems, water treatment, industry solutions), sales of heat systems, distribution of natural gas, energy products (electricity sales and trading, natural gas sales and trading), mobility, and energy generation, the Petrol Group sold 5.7 TWh of natural gas, 2.9 TWh of electricity, and 83.7 thousand MWh of heat in the first quarter of 2022.
Pursuant to the Price Control Act which instructs the government to reimburse the economic loss and the lost profit as result of fuel price limitation, Petrol, d.d., Ljubljana, submitted a claim to the Government of the Republic of Slovenia in the amount of EUR 51.3 million for the period between 15 March and 30 April 2022. The part of the claim referring to the period of January–March 2022 has amounted to EUR 18.4 million. This claim is not included in the financial statements of Petrol d.d., Ljubljana, for the period of January–March 2022.
Wide retail network and stable financial position
At the end of March 2022, the Petrol Group had 6,162 employees, 593 service stations and 323 EV charging stations in management. The Petrol Group’s retail network includes 318 service stations in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 16 in Serbia, and 15 in Montenegro.
The Petrol Group’s stability is also affirmed by its long-term BBB- credit rating with a stable outlook, which was confirmed by Standard & Poor’s in April 2021.
The Supervisory Board of Petrol d.d., Ljubljana, believes that in the first quarter of 2022, the Management Board of the Company continued to successfully manage the Petrol Group’s operations in the current market situation, which is reflected in the good business results achieved in the first quarter of 2022.