The Supervisory Board discusses the business results in the first three months of 2025
Ljubljana, 15 May 2025 – At its 2nd meeting, the Supervisory Board of Petrol d.d., Ljubljana, discussed the Report on the Operations of the Petrol Group and Petrol d.d., Ljubljana in the First Three Months of 2025. In the period concerned, the Petrol Group recorded growth in all key indicators compared to the same period last year. The operations in the period were exposed to uncertainty associated with the too low sales margins on fuels and the rising geostrategic and environmental risks. Nevertheless, with its comprehensive energy solutions, the Petrol Group has stayed a reliable partner to households, companies, local communities and the public sector in their daily energy requirements and their sustainable energy transition in 2025, the year of Petrol’s 80th anniversary.
In the first three months of 2025, the Petrol Group pursued its ambitious annual business targets. Compared to the same period last year, the Group operated under slightly easier business conditions in the period concerned because the maximum permitted sales margin on petroleum products in Slovenia was increased in July 2024, and the capped sales margin on fuels was also higher in Croatia. In Slovenia, the regulation of natural gas prices ended at the end of April 2024 and in Croatia at the end of March 2024. In Slovenia, the prices of electricity were deregulated on 1 March 2025. Despite the modest increase of the capped sales margin on fuels in July 2024 in Slovenia, the margin has remained the lowest in Europe and, alongside the rising environmental requirements, it has stayed the main risk factor. The prices of energy have generally stabilised although high geopolitical uncertainty still exists and could have a strong influence on further price fluctuations on international energy markets.
“Petrol has been driving development, connecting generations and providing energy on the go, at home, in companies and in local communities for eight decades. In the jubilee year 2025, we have continued implementing our portfolio diversification, operational streamlining and efficient risk management strategy. We continue adjusting to the regulatory changes on all markets and consolidating the foundations for a long-term growth by staying focused on the energy transition, digitalisation and sustainable operations. In doing this, we pursue our commitment to stay a reliable partner to households, companies, local communities and the public sector in their daily energy requirements and sustainable energy transition with our comprehensive energy solutions,” stressed President of Petrol’s Management Board Sašo Berger on the conclusion of the first quarter of 2025 in which Petrol celebrates its 80th anniversary.
Uncertain international business environment
In the first quarter of 2025, the economic conditions stabilised, but forecasts about weak economic recovery among Slovenia’s trading partners are creating growing uncertainty, especially with regard to the impact of US tariff measures. For Slovenia, the IMAD forecasts higher GDP growth in 2025 (2.1 percent) than in the year before, while the IMF projects lower, 1.8 percent, GDP growth. In Croatia, GDP growth is expected to slightly decrease (to 3.1 percent), while the GDP growth in the euro area is projected at 0.8 percent.
Uncertainty associated with the too low sales margins on fuels and rising geostrategic and environmental risks has influenced the dynamic of investments, especially in energy transition projects.
Encouraging business results and stable financial standing
In the first three months of 2025, the Petrol Group generated sales revenue of EUR 1.5 billion, a year-on-year increase of 4 percent. In addition to the sales volumes, the revenue was mostly impacted by the changes of prices on energy markets which, however, is out of Petrol’s control. In the first three months of 2025, the Petrol Group sold 912.2 thousand tons of fuels and petroleum products, a year-on-year increase of 7 percent. Sales volumes of fuels and petroleum products were higher in all key markets of the Petrol Group. Sales of merchandise and services amounted to EUR 141.0 million, a year-on-year increase of 2 percent. In the period concerned, the Petrol Group sold 6.2 TWh of natural gas, 3.0 TWh of electricity and 60.8 thousand MWh of heat.
The Petrol Group’s gross profit with closed net commodity derivative financial instruments amounted to EUR 158.6 million in the first three months of 2025, which is 6 percent more than in the same period of 2024. The amount of the gross profit was influenced most by the regulation of the prices of certain petroleum products.
Operating costs of the Petrol Group amounted to EUR 131.8 million in the period concerned, an increase of 2 percent compared to the same period of 2024. A big part of the increase was due to the higher labour costs in Slovenia and on other markets due to wage indexation as a result of regulatory interventions into minimum wage systems. Operating costs to gross profit ratio with closed net commodity derivatives amounted to 83.1 percent in the period concerned, which is materially lower than in the comparable period of 2024 when it amounted to 86.7 percent.
In the first three months of 2025, the Petrol Group’s EBITDA amounted to EUR 67.0 million, an increase of EUR 15.3 million or 29 percent compared to the same period last year and on a par with the plan. In the EBITDA structure by product groups, the majority share is accounted for by fuels and petroleum products with 46 percent, followed by energy and solutions with 28 percent and merchandise and services with 24 percent.
Net profit of the Petrol Group in the first three months of 2025 amounted to EUR 31.0 million, an increase of EUR 16.0 million or 107 percent year-on-year and on a par with the plan for the period.
The stable financial standing of the Petrol Group is also attested by credit ratings. On 13 February 2025, S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s long-term BBB- and short-term A-3 rating with a stable outlook.
At the end of March 2025, the Petrol Group’s retail network included 593 service stations, of which 316 in Slovenia, 203 in Croatia, 42 in Bosnia and Herzegovina, 18 in Serbia and 14 in Montenegro. At the end of March 2025, the Petrol Group operated a network of 587 e-charging stations.
First sustainability report in accordance with the European ESRS standards
In the first three months of this year, the Petrol Group successfully completed the preparation of the first audited sustainability report for the Petrol Group, which was prepared in accordance with the complex European Sustainability Reporting Standards (ESRS). With this milestone, we have laid solid foundations for transparent and comprehensive sustainability reporting in the future and enhanced the Petrol Group’s commitment to responsible operations. The sustainability report was published on 9 April 2025 as part of the Annual Report of the Petrol Group and Petrol for 2024.
Appeal for regulation change
The Petrol Group plans to generate sales revenue of EUR 6.1 billion, gross profit of EUR 789 million, EBITDA of EUR 339 million and net profit of EUR 177.8 million in 2025. Regulators’ interventions in the price policy may cause a deviation of the year-end business results from the set annual targets.
The current Decree determining the prices of certain petroleum products in Slovenia is in effect until 18 June 2025. On announcing the business results for the first trimester of 2025, Petrol draws attention to the inadequate regulatory framework concerning the sales of petroleum products. In Slovenia, sales margins on fuels are capped at an extremely low level and are the lowest compared to the other EU countries. The margin on petrol equals only around a half of the average margin in the EU and on diesel less than a third of the average margin in the EU. In addition, sellers’ margin accounts for only 7 percent in the structure of the final fuel price, while taxes and duties account for more than 58 percent of the final price of diesel and 60 percent of the final price of petrol.
The maximum permitted margin is not enough to cover the rising operating costs associated with fuels and petroleum products, such as labour costs, lease payments, transportation costs and storage charges. Additionally, regulatory requirements in the field of biocomponent blending and the achievement of energy savings are tightening. Without considering the market situation and the current and future costs of the energy transition, the continuation of the current fuel price regulation severely hampers the company’s ability to achieve the strategic targets, make investments in development projects of the energy transition and adjust to the requirements of the European Green Deal. Prior to the government’s decision regarding the continuation of margin and fuel price regulation, Petrol and other fuel sellers in Slovenia will again present our position regarding the inadequacy of the current price regulation and proposed solutions in the context of the Price Council.
Petrol proposes that the government should change the regulation in a way that it takes into account the changes of operating costs, the achievement of compliance with the requirements regarding the share of renewable energy sources in transport and, consequently, the fulfilment of the green transition obligations and objectives from the National Energy and Climate Plan.
Supervisory Board’s opinion
According to the new Supervisory Board of Petrol d.d., Ljubljana, which had its first meeting on 24 April 2025, the Management Board successfully pursued the targets and managed business risks of the Petrol Group. President of the Supervisory Board Mladen Kaliterna explained: “The Supervisory Board supports the Management Board in its endeavours for a sustainable growth, digitalisation and energy transition and in its efforts to have the regulatory framework adjusted to that it would enable more sustainable, competitive and development-oriented operations. At the same time, the Supervisory Board supports and guides the Management Board in preparing the new business strategy of the company and the Petrol Group until 2030 for an even more ambitious future, by taking into consideration the consolidation of the Petrol Group’s role as the leading energy group in the region.”