Ljubljana, 27 August 2026 – At its 19th meeting, the Supervisory Board of Petrol d.d., Ljubljana, reviewed the Report on the Operations of the Petrol Group and Petrol d.d., Ljubljana, in the First Half of 2026. The Petrol Group’s results were significantly affected by geopolitical turbulence, energy price volatility and an inadequate regulatory framework governing petroleum product pricing in Slovenia. Although performance in the second quarter improved significantly compared with the same period in 2025, the adverse effects of the conditions in the field of fuel and petroleum product sales in Slovenia in March could not be offset by this improvement, good results in other business segments and optimisation measures. Consequently, the first half-year results remained below those recorded in the same period in 2025.

Impact of inadequate regulation and market conditions on first-half performance

The adverse effects of the inadequate regulatory framework were particularly evident in March, when escalating geopolitical tensions in the Middle East, a surge in energy prices and the announced fuel price increases triggered a sharp increase in demand, resulting in a loss of EUR 27.5 million from petroleum product sales in Slovenia. The regulatory framework remains inadequate. Alongside Croatia, Slovenia is the only country in the EU where petroleum product prices are regulated, while the estimated average margin earned by petroleum product retailers in the EU is approximately twice as high as in Slovenia, that is, more than 24 cents. Moreover, petroleum product price regulation does not allow responding appropriately or adopting an appropriate pricing policy amid volatile global market conditions.

Sašo Berger, President of the Management Board of Petrol d.d., Ljubljana, commented on the results: “The inadequate regulatory framework had a significant impact on our performance, and its shortcomings became particularly evident in the conditions seen in March. We mitigated the adverse effects through additional cost optimisation measures but were unable to offset them over the first half of the year. Our performance improved in the second quarter; nevertheless, we are not satisfied with the results achieved in the first half of the year. The regulatory framework remains unsustainable which, amid exceptionally volatile conditions in the crude oil and petroleum product markets, may also affect the security of fuel supply. It must therefore be abolished as a matter of urgency, and the market of petroleum product prices must be liberalised.”

Vesna Južna, President of the Supervisory Board of Petrol d.d., Ljubljana, emphasised: “We have been drawing attention to the systemic shortcomings of petroleum product price regulation for some time, and the conditions seen in March conclusively exposed them. The only acceptable model is the liberalisation of petroleum product prices. During sudden market disruptions, regulated retail prices fail to reflect actual procurement and logistics costs. The methodology used to determine the retail margin is not transparent, while the prescribed margin does not cover all costs associated with ensuring supply. The regulated margin in Slovenia remains among the lowest in the European Union. Such a system is not sustainable in the long term and limits the options for investment in infrastructure, logistics and other capacities required to ensure reliable supply. A systemic change to pricing is therefore essential and price regulation needs to be abolished, as the Company cannot sell fuel below its purchase price. In this context, the Supervisory Board also discussed a draft protocol for implementing measures where service station operations are financially unsustainable, including restrictions on fuel sales or even the closure of service stations.”

Key performance indicators

In the first half of 2026, the Petrol Group generated EUR 3.3 billion in revenue from contracts with customers, a year-on-year increase of 12 percent, primarily due to higher revenue from the sale of fuels and petroleum products, which was also affected by higher energy prices. Despite increased sales volumes in the main activity, that is, sales of fuels and petroleum products, gross profit in Slovenia decreased materially compared with 2025 due to the inadequate regulatory framework.

The Petrol Group’s gross profit together with closed net derivatives amounted to EUR 344.9 million in the first half of 2026, up 1 percent year-on-year.

The Petrol Group’s EBITDA amounted to EUR 131.8 million in the first half of the year, which is EUR 13.6 million less than in the same period in 2025. Despite slightly better performance in the second quarter when EBITDA reached EUR 90.8 million, which is EUR 12.4 million more than in the same period in 2025, the operating profit amounted to EUR 79.2 million in the first half of the year, a year-on-year decrease of EUR 16.9 million, net profit stood at EUR 57.4 million, EUR 17.8 million less than in the same period in 2025.

Operating expenses amounted to EUR 268.8 million, a year-on-year increase of EUR 9.5 million and more than planned, primarily due to higher logistics costs and wage indexation.

Sales and performance of other business segments

The Petrol Group sold 2.03 million tonnes of fuels and petroleum products, an increase of 4 percent year-on-year. Sales rose by 6 percent in Slovenia and by 7 percent in the markets of South-East Europe, while they declined by 6 percent in EU markets.

Revenue from the sale of merchandise and services amounted to EUR 345.0 million, up 9 percent year-on-year. The Group sold 12.3 TWh of natural gas, 9 percent more than the year before, and 4.5 TWh of electricity, 24 percent less than the year before, primarily due to lower trading volumes. Despite the lower volume of electricity sold, the Petrol Group achieved better results in this area than in the same period in 2025. Results also improved in energy solutions, mobility, natural gas distribution, the sale of heating systems, and the sale of merchandise and services.

Investments and financial stability

In the first half of the year, the Petrol Group invested a net EUR 58.2 million, which is 43 percent less than planned due to the regulatory framework on the domestic market which is limiting the Company’s development potential. Energy transition projects accounted for 44 percent of total investment expenditure. The Petrol Group continued to upgrade its retail network, expand its EV-charging network, and develop energy, mobility, and digital solutions.

At the end of June, total assets amounted to EUR 2.6 billion, 6 percent more than at the end of 2025. Equity amounted to EUR 1,017.9 million, compared with EUR 1,044.4 million at the end of 2025, while net debt stood at EUR 428.4 million, EUR 16.4 million more than at the end of 2025.

In March, S&P Global Ratings affirmed Petrol’s long-term ‘BBB-’ rating and short-term ‘A-3’ rating and upgraded the rating outlook from stable to positive.

Proceedings relating to price regulation

Petrol has continued to take steps to protect its legal and economic interests in connection with losses arising from the regulation of petroleum product prices. It has filed two claims for damages against the Republic of Slovenia: the first, amounting to EUR 106.9 million, relates to losses incurred during two periods of price regulation in 2022 up to June, while the second, amounting to EUR 70.3 million, relates to the regulatory period from June 2022 to June 2024. Petrol will also pursue its claims in respect of subsequent periods.

Outlook

In the second half of the year, operations will continue to be affected by geopolitical risks, high energy price volatility in global markets and a regulatory framework that is not suited to highly volatile market conditions. The Petrol Group will continue to implement measures aimed at strengthening operational and cost efficiency and will continue its efforts to achieve the liberalisation of petroleum product prices.

 

Vesna Južna
President of the Supervisory Board

Sašo Berger
President of the Management Board