Annual Report (ESEF) • Mar 21, 2022
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Download Source FilePetrol, Slovenska energetska družba, d.d., Ljubljana
Dunajska cesta 50, 1000 Ljubljana
Registration number: 5025796000
Companies Register entry: District Court of Ljubljana, entry number: 1/05773/00
Share capital: EUR 52,240,977.04
VAT ID: SI80267432
Telephone: +386 (0)1 47 14 232
www.petrol.eu, https://www.petrol.si/
| Petrol Group Unit | 2021 | 2020 | Index 2021/2020 |
|---|---|---|---|
| Sales revenue | EUR million 4,960.1 | 3,079.4 | 161 |
| Adjusted gross profit1 | EUR million 543.4 | 426.9 | 127 |
| Operating profit | EUR million 159.0 | 91.6 | 174 |
| Net profit | EUR million 124.5 | 72.3 | 172 |
| Equity | EUR million 908.7 | 826.7 | 110 |
| Total assets | EUR million 2,383.5 | 1,792.1 | 133 |
| EBITDA1 | EUR million 238.1 | 166.6 | 143 |
| EBITDA/Adjusted gross profit1 | % 43.8 | 39.0 | 112 |
| Operating costs/Adjusted gross profit |
| Net debt/Equity | %78.285.891 | |||||
|---|---|---|---|---|---|---|
| Net debt/EBITDA | 0.560.40140 | |||||
| ROE | 2.1 | 2.0 | 108 | |||
| ROCE | %14.38.8162 | |||||
| Added value per employee | EUR thousand | 70.1 | 56.8 | 124 | ||
| Earnings per share | EUR | 60.6 | 35.2 | 172 | ||
| Share price as at last trading day of the year | EUR | 508.0 | 325.0 | 156 | ||
| Net investments | EUR million | 233.2 | 85.4 | 273 | ||
| Volume of petroleum products sold | thousand tons | 3,143.7 | 3,012.7 | 104 | ||
| Volume of liquefied petroleum gas sold | thousand tons | 141.2 | 148.8 | 95 | ||
| Volume of natural gas sold | TWh | 36.0 | 27.2 | 133 | ||
| Volume of electricity sold | TWh | 15.1 | 19.9 | 76 | ||
| - of which sale of electricity to end customers | TWh | 3.6 | 1.7 | 210 | ||
| Revenue from merchandise sales | EUR million | 487.2 | 446.9 | 109 |
Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
| 31 December 2021 | 31 December 2020 | Index 2021/2020 | |||
|---|---|---|---|---|---|
| Number of employees | 6,237 | 5,157 | 121 | ||
| Number of service stations | 593 | 500 | 119 | ||
| Number of e-charging points operated by the Petrol Group | 296 | 184 | 161 | ||
| Number of electricity customers | thousand | 224.6 | 92.1 | 244 | |
| Number of natural gas customers (data for Geoplin d.o.o., Ljubljana are not included) | thousand | 47.4 | 50.1 | 94 |
Dear shareholders, business partners and co-workers,
2021 was a time in which our perseverance, readiness for change and confidence in the future were put to the test. Petrol successfully adapted its operations to fit the measures to mitigate the pandemic, faced emergencies in global energy markets and, despite the challenges posed throughout the year, confidently followed the set strategic and annual business goals. As one of the largest and most ambitious energy companies in the region, we are building the future through partnerships with the economy, the public sector, households and other stakeholders through an integrated sustainable offer.
The business environment was anything but peaceful and supportive in 2021. Among the external circumstances that co-created the conditions of our operations are the continuation of the COVID-19 epidemic and the state's measures to mitigate its consequences. They were less restrictive in 2021 than in the year before. Another factor that has directly affected all energy companies, and indirectly many industries and other subsystems of society, is the energy crisis. In 2021, it manifested through a high and unpredictable rise in the prices of fuels and energy products, especially electricity and natural gas, which reached historical price levels. Price shocks demanded interventions by the state, such as a temporary restriction on the price of the heating oil in Slovenia and fuel prices in Croatia, and even led to the withdrawal of some providers from the market. Nonetheless, energy transition remains high on the business community's agenda by finding a way to transition to a low-carbon society in which the Petrol Group is already playing an active role. Stable economic growth in Slovenia also had an encouraging effect on our operations in 2021.
In January 2021, we completed the acquisition of E 3, d.o.o., which, as one of the largest electricity sellers in Slovenia, makes an important contribution to strengthening the Petrol Group in the sale of electricity. Including E 3, d.o.o., the Petrol Group is the second-largest provider of electricity to end-users in Slovenia with a total market share of 22.6 percent and a total of over 210,000 customers.
We have also not forgotten our commitment to supply the market with quality petroleum products, so in the spring of 2021, we introduced a new generation of Q max fuels. They bring lower consumption, greater energy efficiency and lower emissions, and therefore represent another step towards low-carbon mobility. To strengthen market competitiveness and customer satisfaction, we continued to adjust and diversify our offer. We introduced innovative approaches to customers, developed new services and sustainable models. We devoted a lot of attention in sales to upgrading the “Na Poti”, OneCharge and mBills digital services, the faster processing of complaints, the introduction of payment counters without entering the point of sale. With the idea of durability and limiting infections in mind, we offered customers the option of pouring Coffee-to-go into their own cups for a lower price.
In 2021, we also left a strong mark on the region. At the end of July 2021, we proudly launched the Ljubač wind power plant in Croatia, providing green electricity for more than 30,000 households, which is the second wind farm for the Petrol Group. In October, we successfully completed the acquisition of Crodux Derivati Dva d.o.o. This is the largest acquisition of Petrol d.d., Ljubljana, in the last ten years, which significantly contributes to the expansion of the Petrol Group beyond the borders of Slovenia. This consolidated our position as the second-largest supplier of petroleum products in Croatia and increased our market share in Croatia to 23 percent. With this combination of two strong brands, the Petrol Group has increased its team to more than 6,000 employees. Through a strong sales network on the Croatian market, we will expand our customer portfolio in the field of energy products and energy transition services.
Among the key internal efforts, the reorganisation of the Petrol Group is worth highlighting. It will contribute to the achievement of the strategic goals of 2021 – 2025 through more efficient processes, the unification and optimisation of the operation of support functions, customer focus and a unified presence on the markets in subsidiaries.
Regarding the energy crisis in 2021, it should be pointed out that the Petrol Group has successfully mitigated the consequences of negative trends in the energy market through a comprehensive energy offer and effective adaptation to the aggravated market conditions. Through an efficient procurement process, we ensured a stable and reliable supply of fuels and energy products and comprehensive support for our customers, and through the loyalty programme, additional benefits to mitigate the consequences of negative trends in the energy market. In our opinion, given the trends in the global energy market in 2021, insisting on low energy prices posed greater risks to the operations of energy companies and energy customers than the adjustment of energy prices, so we raised electricity and natural gas prices for households as of 1 December 2021.
Regardless of the uncertain circumstances of the Petrol Group's operations, we are proud to report that in 2021, we achieved ambitious annual targets and also longer-term ones for the strategic period until 2025, despite the fact that not all the assumptions of our annual plan for 2021 have been met. For example, the pandemic was not contained in the first half of 2021. We managed to mitigate the negative effects of the pandemic and energy crisis on our operation by responding effectively to changing market conditions, adjusting and diversifying supply, cost optimisation and rationalisation of operations. What's more, we have even exceeded our ambitious goals. In 2021, the Petrol Group generated EUR 5.0 billion in sales revenue or 13 percent more than in the pre-pandemic year 2019 and 61 percent more than in 2020. The adjusted gross profit totalled EUR 543.4 million, which is 15 percent more than in 2019 and 27 percent more than in 2020. The achieved EBITDA in the amount of EUR 238.1 million is 43 percent higher than in 2020, and the net profit in the amount of EUR 124.5 million exceeded the same indicator from the previous year by 72 percent. In 2021, the Petrol Group allocated EUR 233.2 million for investments in property, plant and equipment, intangible assets and long-term investments.
We are also proud of our regional indicators, which show the strengthening of the Petrol Group's strength in the region of SE Europe. In 2021, we generated 28 percent of operating profit and 31 percent of the EBITDA in the region. According to the number of employees, as many as 47 percent come from the region. In 2022, we intend to further strengthen these regional indicators (with the exception being the number of employees).
The solid operational and financial position of the Petrol Group was also confirmed by Standard & Poor's with the reassignment of the long-term BBB- credit rating with a stable outlook.
A shareholder policy based on a long-term maximisation of returns for shareholders is one of the cornerstones of Petrol’s development strategy. The Management Board advocates a stable long-term dividend policy, which best fits the Petrol Group’s long-term development targets. Petrol d.d., Ljubljana paid the same dividend for 2020 as for 2019, namely EUR 22.0 gross per share.
In the Petrol Group, sustainable development is an important part of strategic management. We pay special attention to sustainable reporting, which is why the Petrol Group issued the Sustainability Report of the Petrol Group for 2020 in July 2021. We received the award of the Finance newspaper for the best annual report among companies that are public interest entities, and the award for the best annual report in sustainable development for 2020. We are also proud of our recognised efforts in caring for employees. In 2021, as the most distinguished employer in the energy sector, we were the recipient of the Distinguished Employer 2020 award in the Energy, Utilities, Water and Gas Supply sector. This also places us in the TOP 10 list of the most reputable employers in Slovenia. The fact that we have been among the most reputable and desirable employers among job seekers for many years is also reflected in the high level of internal climate, satisfaction, agility and commitment of employees. At the same time, it is worth highlighting our primary concern for the health of employees and customers under the circumstances of the epidemic. Through good organisation, we ensured that the points of sale operated smoothly and that the employees performed their work efficiently even while working remotely.
that plays a critical role in the mission of transitioning to a low-carbon society. One of the greatest fundamental transformations of the industry imaginable is unfolding before our eyes. Experts say that the energy demand will only increase, and the energy landscape will change more in the coming decade than in the last 100 years.
The Petrol Group already feels a part of this exciting global transformation, in which the future of energy will be closely linked to new technologies for clean energy production. This is why we are persistently developing state-of-the-art low-emission fuels, enabling more environmentally friendly mobility, co-creating energy-efficient cities, businesses and homes, building renewable energy sources for green electricity… As an energy company, we are already influencing the transformation of individuals, local communities, companies, the entire economy and contributing to the achievement of the binding environmental goals of our country within the European Union.
The Petrol Group is looking at 2022 with cautious optimism. We are thankful to our customers for always returning to Petrol for fuel, energy and advanced energy and environmental solutions, shareholders for their trust even in uncertain situations, the entire team of employees for endurance and dedication, and business partners for their support and cooperation. We look forward to a joint journey into the energy of the future.
Nada Drobne Popović
President of the Management Board
Pursuant to Article 60a of the Companies Act, members of the Management Board and the Supervisory Board of Petrol d.d., Ljubljana state that the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for the year 2021, including the corporate governance statement and the non-financial statement, has been prepared and published in accordance with the Companies Act, the Financial Instruments Market Act and the International Financial Reporting Standards as adopted by the EU.
As provided in Article 110 of the Financial Instruments Market Act, members of the Management Board of Petrol d.d., Ljubljana comprising Nada Drobne Popović, President of the Management Board, Matija Bitenc, Member of the Management Board, Jože Bajuk, Member of the Management Board, Jože Smolič, Member of the Management Board, and Zoran Gračner, Member of the Management Board and Worker Director, declare that to their best knowledge and belief:
Nada Drobne Popović
President of the Management Board
Matija Bitenc
Member of the Management Board
Jože Bajuk
Member of the Management Board
Jože Smolič
Member of the Management Board
Zoran Gračner
Member of the Management Board and Worker Director
Ljubljana, 10 March 2022
On the same day, the Supervisory Board held a constituent meeting, at which the members elected Janez Žlak President of the Supervisory Board and Borut Vrviščar Deputy President of the Supervisory Board. The Supervisory Board appointed two committees, namely the Audit Committee, comprising the President of the Committee Alenka Urnaut Ropoša and Members Aleksander Zupančič, Mladen Kaliterna, Robert Ravnikar and External Member Janez Pušnik, and the Human Resources and Management Board Evaluation Committee, comprising the President of the Committee Borut Vrviščar and Members Janez Žlak, Mário Selecký, Marko Šavli and Alen Mihelčič. Both the previous and the new composition of the Supervisory Board in 2021 was such that its members complemented each other in terms of their expertise and competencies. The composition was also diverse regarding education, work experience and personality traits, all of which allowed for an effective exchange of views and opinions.
In 2021 the Supervisory Board and Management Board of Petrol d.d., Ljubljana focused on substantive matters falling within their remit. The members of the Supervisory Board carried out their work professionally, focusing on the effective performance of their functions, including in the committees. Supervisory Board members thoroughly prepared themselves for the topics discussed, gave constructive proposals based on verbal and written information obtained from the Management Board, and adopted decisions competently in line with the Rules of Procedure, internal regulations and legal powers. The work of the Supervisory Board was effectively supported by the proposals of Supervisory Board committees and their substantive input. In accordance with the law and internal rules, the Supervisory Board kept the stakeholders informed about key decisions and information with a significant impact on the Company's operations. In compliance with the Slovenian Corporate Governance Code for Listed Companies, the Supervisory Board states in this report that all the costs incurred in connection with its work are disclosed in this annual report and in the Report on Remuneration to the Management and Supervisory Bodies of Petrol d.d., Ljubljana in the 2021 business year.
In 2021 the Supervisory Board met ten times. The year 2021 was undoubtedly marked by the historic acquisition of a Petrol Group company - Crodux Derivati Dva d.o.o. The main focus of the Supervisory Board was thus on monitoring the procedures for the successful integration of this company. After fulfilling the suspensive conditions, Petrol d.d. Ljubljana completed the acquisition of a 100 percent interest in the Croatian company Crodux Derivati Dva d.o.o. The Petrol Group is thus consolidating its position as the second-largest supplier of petroleum products in Croatia. The acquisition of Crodux Derivati Dva d.o.o. is the largest acquisition of Petrol d.d., Ljubljana in the past 10 years and represents the most significant one-time increase in the number of points of sale in the Petrol Group's history. With this acquisition, the Petrol Group acquired 93 new points of sale. With a total of 204 points of sale, the Petrol Group's market share in Croatia grew from 13 percent to 23 percent. With the merger of Crodux Derivati Dva d.o.o. with Petrol d.o.o., Zagreb, the Company's Management Board successfully and significantly pursues its strategic goal, which envisages the expansion of operations outside the borders of Slovenia. Through a strong sales network on the Croatian market, the Company is successfully expanding its customer portfolio in the field of energy products and energy transition services.
The focus of the Supervisory Board meetings in 2021 was on new projects and the identification and management of business risks, which is important for the successful future of the Company and the Petrol Group. The COVID-19 pandemic still received a great deal of attention, and in 2021, it dictated adjustments to operations in key areas, mainly through various measures to mitigate it. By adjusting and diversifying the offer and by cost rationalisation and optimisation, the Management Board managed its operations successfully and, despite the limitations, exceeded the plan and created excellent annual results.
The first meeting, which took place in January (58th meeting of the Supervisory Board of the previous composition), was aimed at the final coordination and approval of the new business strategy of the Company and the Petrol Group for the period from 2021 to 2025. The new, very ambitious business strategy was adopted as a result of the set goals, orientations and vision of the new administration appointed in 2020 and its response to the energy transition to a low-carbon society and the development of new technologies that transform sustainable energy production, sales and use.
At the meeting of 18 March 2021, which was scheduled in the financial calendar, the Supervisory Board approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2020, the proposed allocation of accumulated profit and the convening of the 33rd General Meeting.
The next meeting by correspondence of the Supervisory Board in early April was aimed at adopting amendments to the financial calendar, which included silent periods in the financial calendar in connection with the Company's securities trading rules and changed the date of the constitutive meeting of the Supervisory Board.
On 22 April 2021, the constituent meeting of the new Supervisory Board was held, at which the Supervisory Board appointed a president and deputy president from among its members, established the Audit Committee and the Human Resources and Management Board Evaluation Committee and appointed their members.
The next meeting in May was held as scheduled in the financial calendar for 2021 and primarily addressed the quarterly report on the operations of the Petrol Group and Petrol d.d., Ljubljana. The successful adjustment of sales to market conditions and efficient cost management was reflected in a 16 percent growth in EBITDA compared to the same period in 2020. The net profit of EUR 27.8 million recorded a 27 percent increase compared to the same period in 2020. The EBITDA (+46 percent) and net profit (+52 percent) in the first three months of 2021, despite strict restrictive measures, were also better compared to the results of the first three months of 2019 (pre-pandemic period). Due to the successfully renewed systematisation and organisation of the Company, which enables the transparency of operations and the establishment of a functional system of responsibility, the Supervisory Board also discussed new delimitations of work areas and competencies between members of the Management Board.
In accordance with the financial calendar, the next meeting of the Supervisory Board was held on 26 August 2021 and was intended primarily to discuss the Report on the Operations of the Petrol Group and Petrol d.d., Ljubljana in the first half of 2021 and to revise or adopt some key internal regulations, including the Rules of Procedure of the Supervisory Board and the internal regulations of both committees of the Supervisory Board. In the second quarter, the Petrol Group again successfully pursued the set goals for 2021. Successful adjustment of sales to market conditions and efficient cost management in the first half of 2021 was reflected in 59 percent growth in the EBITDA compared to the same period in 2020. The adjusted gross profit, EBITDA and net profit were also better in the first half of 2021 compared to the pre-pandemic results.
At the October meeting, in addition to discussing strategic issues, the Supervisory Board was informed about the activities related to the acquisition of the company and the completion of the transaction of Crodux Derivati Dva d.o.o., further steps and structured integration procedures. The Supervisory Board also discussed the current situation on the electricity and natural gas market and the Company's response to them, in connection with which the Supervisory Board did not detect any irregularities.
At the November meeting scheduled in the financial calendar, the Supervisory Board discussed the Reports on the operations of the Petrol Group and Petrol d.d., Ljubljana, in the first nine months of 2021, and determined the contents and terms of work of the Supervisory Board by adopting the financial calendar for 2022. The successful adjustment of sales to the market conditions and efficient cost management in the first nine months of 2021 was reflected in a 54 percent growth in EBITDA compared to the same period in 2020.
At its last meeting in 2021, the Supervisory Board discussed and approved the Business Plan of Petrol d.d., Ljubljana and the Petrol Group for 2022, which is optimistic and pursues ambitious goals from the Petrol Group's strategy until 2025, in which the Company committed to green energy. At this meeting, the Supervisory Board carried out a number of activities related to good practices in corporate governance, including the identification, disclosure, management and elimination of conflicts of interest.
The Supervisory Board, acting within its powers, took responsible decisions and was briefed on a number of other matters:
In 2021 the Supervisory Board's Audit Committee met ten times. The first four meetings in the financial year were devoted to preparing a basis for the Supervisory Board's approval of the annual report, which was done, among others, following a discussion with external auditors. The Committee discussed the approval of the 2020 Internal Audit report, the audited annual report and submitted a proposal for its approval to the Supervisory Board. It also dealt with topics related to the Supervisory Board and the annual General Meeting.
At the other meetings, the Audit Committee discussed the quarterly reports on the operations of the Petrol Group and Petrol d.d., Ljubljana (in May, August and November) and discussed standard and other matters such as:
a candidate for the audit of the 2022–2024 Annual Report to be proposed to the General Meeting for approval;
it carried out an interview with the Head of Internal Audit;
it discussed other topics falling within the competence of the Audit Committee.
met four times in 2021. The topics discussed were related to determining the performance of the Management Board in 2020 and setting goals and criteria for determining the performance of the Management Board in the next financial year (2022).
The Supervisory Board monitored the work of its committees based on their continuous reporting to the Supervisory Board. Considering the implementation of all committee resolutions, the review of their work and reports on the work of both committees presented at the December meeting, the Supervisory Board deemed the work of both committees and the Management Board to have been very good.
The Petrol Group is a leading company in Slovenia and also plays a prominent role in the wider region. Its operations are focused on achieving long-term growth and the ensuing stable return for shareholders. In 2021, despite the ongoing pandemic, we witnessed stable economic growth, which was accompanied by high growth in the prices of energy products. Measures to contain the pandemic have become less restrictive on mobility and the economy, but as the epidemiological situation worsened, the RVT condition for the performance of most activities resulted in fewer visits to our points of sale and thus a decrease in the sale of merchandise.
The Petrol Group's sales revenue stood at EUR 5.0 billion in 2021, up 61 percent on the year before. Adjusted gross profit stood at EUR 543.4 million, which was 27 percent more than in 2020. EBITDA totalled EUR 238.1 million and was 43 percent more than in 2020. Net profit stood at EUR 124.5 million, which was 72 percent more than in 2020.
At its 9th meeting of 17 March 2022, the Supervisory Board discussed the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2021. Having verified the Annual Report, the financial statements and notes thereto, the Management Board's proposal on the allocation of accumulated profit, and the certified auditor’s report, the Supervisory Board approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2021.
As part of the adoption of the Annual Report, the Supervisory Board also put forward its position regarding the corporate governance statement and the statement of compliance with the applicable code that have been included in the business section of the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2021, concluding the actual state of corporate governance in 2021.
Dr Janez Žlak
President of the Supervisory Board
Ljubljana, 17 March 2022
Through a broad range of energy products, comprehensive energy solutions and a digital approach, we are putting the user at the centre of our attention. We want to become the first choice for shopping on the go. Together with our partners, we create solutions for a simpler transition to cleaner energy sources. We are building a green energy future in a decisive and active manner, increasing the value for our customers, shareholders and society over the long term.
Through energy transition, we create a green future and make a significant contribution to protecting our environment.
At Petrol, we feel a strong sense of responsibility towards our employees, customers, suppliers, business partners, shareholders and society as a whole. We meet their expectations with the help of motivated and business-oriented staff, we adhere to the fundamental legal and moral standards in all the markets where we operate, and we protect the environment.
On 28 January 2021, the Supervisory Board of Petrol d.d., Ljubljana approved the Strategy of the Petrol Group for the 2021 – 2025 period. Ensuring business growth and increasing the profitability of operations while maintaining the commitment to sustainable development are the main principles underpinning the preparation and implementation of the strategic plan. The Petrol Group's strategy for the 2021 – 2025 period is an overarching development document defining the path to a successful future based on the Group's vision, goals and strategic business plan.
The environment in which the Petrol Group operates is facing important changes. The energy transition towards a low-carbon company and the development of new technologies are transforming the established ways how energy products are produced, sold and used. Petrol is committed to making a transition to green energy and is making significant investments to achieve it. While co-creating opportunities brought about by the energy transition we will also continue to supply the market with hydrocarbons.
The new strategy of the Petrol Group defines clear targets for implementing our vision to become an integrated partner in the energy transition, offering an excellent user experience. This helps us focus on our principal activity, which is to supply energy products, as it is this area where we still see great potential in connection with the energy transformation.
An important pillar of our operation is gaining and retaining customers, so we will continue to strengthen our sales network in the region. Thanks to new digital channels, a broader range of energy products and a personalised offer, we will be even closer to our customers, helping them make a transition from traditional energy sources to cleaner renewable energy.
Our aim is to become a key link in a broader ecosystem by offering energy sources that are adapted to and co-shape the market. For this reason, we will strengthen operational efficiency to free up additional funds for investments in renewable energy production.
The Petrol Group recognises the importance of sustainable development. The transition to a low-carbon energy company, partnership with employees and the social environment, and the circular economy constitute the Petrol Group's business commitments in this strategic period. As a partner to industry, public sector and households, Petrol is assuming a leading role in achieving the environmental goals.
Through the continuous development of fuels, we will actively contribute to reducing emissions. At the same time, we will help reduce the carbon footprint of both the Petrol Group and our customers by pursuing clear sustainable policies.
Thanks to improved internal processes, new competencies and empowered employees, we will be even more proactive in addressing the current and future needs of our customers in energy supply and adapt our operations to the user, who is at the centre of our attention. At the same time, we want to become the first choice for shopping on the go in our traditional segment of oil products and merchandise and services.
In this strategic period, we will remain present in all markets, focusing on:
We will work to remain the first choice for energy transition projects in the region by offering integrated services with high added value. We will develop and strengthen our presence in the supply and sale of natural gas and electricity, in the sale of liquefied petroleum gas and in energy efficiency projects. Renewable electricity production, where we will position ourselves to become a major supplier in SE Europe, plays a particular role in the energy transition.
The development of new solutions in the field of electromobility and mobility services represents an important pillar of Petrol’s sustainable and innovative business. In the mobility segment, the Petrol Group focuses on charging infrastructure (the establishment, management and maintenance of charging infrastructure for electric vehicles and the provision of charging services) and mobility services (e.g. operating leasing, fleet electrification and fleet management services).
In the light of the changes brought by the new Petrol Group Strategy 2021 – 2025, the Management Board of Petrol adopted a new organisation of the Company and the Petrol Group on 1 June 2021. We undertook the reorganisation to achieve the strategic goals and place it in the context of a broader energy transition in line with the new vision of the Company. The central transformation of the organisation was reflected in the way it operates, which has since taken place through unified and centralised work processes and procedures according to the principle of functional responsibility from the parent company. With the new organisation, we introduced clearly defined processes, administrators and roles for effective operation, strengthened cooperation and enabled greater flexibility and agility. With clearly defined responsibilities, processes are more efficient, work procedures are unified and more centralised, and thus specialisation is increased.
By focusing on processes, we strengthen the connections and cooperation between organisational units. By unifying and centralising the operation of support functions, we want to ensure a high level of service and productivity. In the management of subsidiaries, we strengthen our cooperation in the Group, with the aim of ensuring a uniform presence in the markets and a positive impact on our business performance.
By separating sales from products, we strengthen the focus of sales on the customer, who is placed at the centre of our operations. An excellent user experience is ensured by product managers who are focused on ensuring product profitability.
Petrol meets its targets while complying with applicable regulations and the Corporate Integrity Guidelines. In the pursuit of our work, we abide by high standards of business ethics and build a corporate culture promoting lawful, transparent and ethical conduct and decision-making by all staff. We raise and consolidate the awareness of how important compliance is among employees and business partners. We apply the zero-tolerance principle to the unlawful and unethical conduct of employees and business partners.
In 2021, despite the continuation of the epidemic, we witnessed stable economic growth, which was accompanied by high growth in the prices of energy products. Countries have tried to ease the pressure on sales prices through various regulatory measures. Measures to contain the pandemic have become less restrictive on mobility and the economy. However, given the deteriorating epidemiological situation, the enforcement of the RVT condition for the performance of most activities has resulted in fewer visits to our points of sale and thus a decrease in the sale of merchandise.
The environment in which the Petrol Group operates is facing important changes. The energy transition towards a low-carbon company and the development of new technologies are transforming the established ways how energy products are produced, sold and used. On the one hand, they have to deal with an extremely difficult systemic transition to renewable supply sources, while on the other, a considerable shift can be observed in the behaviour of end-customers, who are becoming increasingly engaged and environmentally conscious. As one of the main energy companies in Slovenia and in SE Europe, the Petrol Group took on an active role in increasing energy independence, energy efficiency and the share of renewables and will continue its efforts to reduce its carbon footprint in 2022.
The sales of merchandise and services make up an important part of the Group's revenue, which is why the situation in the trade sector has a major impact on operations. The digitalisation of operations is changing the expectations and purchasing patterns of consumers and sales channels. The pandemic has further highlighted the need to reduce and control costs and to optimise supply and sales chains, thereby ensuring point-of-sale profitability.
Providing a full range of customer-focused products and services together with an excellent shopping experience is at the heart of Petrol's operations. As we try to approach our customers in innovative ways, we also change and enhance our internal operating processes which enable us to develop new services and sustainable models.
In our annual business planning, we take into account the sustainable orientation of the Petrol Group, which is built in three directions:
carwash water and re-use of industrial wastewater. Particular attention is paid to reducing or replacing raw materials used in packaging with recycled and biodegradable materials.
At the beginning of 2021, the Petrol Group adopted a new strategy for the 2021 – 2025 period, in which we committed ourselves to the transition to green energy and devoted a large share of our investments to this. While co-creating opportunities brought about by the energy transition we continue to supply the market with hydrocarbons. The new strategy of the Petrol Group defines clear targets for implementing our vision to become an integrated partner in the energy transition, offering an excellent user experience. This helps us focus on our principal activity, which is to supply energy products, as it is this area where we still see great potential in connection with the energy transformation.
Meeting the strategic goals also led to the preparation of the 2022 plan. It is set with cautious optimism. Despite the development of the vaccine, there is still much uncertainty about the further course of the pandemic. We assume that measures to mitigate the pandemic in 2022 will no longer restrict mobility and that consumer behaviour will return to normal after the abolition of the RVT condition. In 2021 we witnessed stable economic growth in all Petrol Group markets, but the year was accompanied by a high growth in the prices of energy products and the related re-regulation of the prices of certain petroleum products in Slovenia and Croatia, which are the main sales markets of the Petrol Group. In the 2022 plan, we anticipate that the growth of prices of energy products will decline and that countries will stimulate economic activity and consumption levels through various measures.
The acquisition of Crodux Derivati Dva d.o.o. in October 2021, which is the largest transaction of Petrol d.d., Ljubljana in the past 10 years, represents the most significant one-time increase in the number of points of sale in the Petrol Group's history. The successful integration of the company and the realisation of the set synergies in 2022 will significantly contribute to the future growth of the Petrol Group in the markets of SE Europe.
In the Petrol Group, we realise that despite careful preparation, informed business decisions, a rapid response to changes and an efficient risk management system, external factors may arise in the business environment that are beyond our control and that may pose a risk or a threat when it comes to meeting our targets. We are witnessing this during the COVID-19 pandemic.
The main risk to achieving the set plan in 2022 is the negative effects of the energy crisis on inflation and consequently on the growth of costs of living and the management of higher operating costs.
The Petrol Group's main business targets for 2022 are:
The Group's investment policy for 2022 will be focused on expanding the business in the area of renewable electricity production, on consolidating its position and strengthening energy product sales and on expanding its operations in the area of energy and environmental solutions. We will allocate up to EUR 100 million in 2022 for further development, of which more than half will be for energy transition projects.
The Petrol Group was in a very good business and financial condition before the pandemic. In 2022, we will continue to meet high standards of operation as recognised in the ratings from Standard & Poor's Rating Services. Despite the difficult business conditions, the Group will continue to pursue its objective of ensuring stable operations, thus delivering a consistent return for shareholders.
Pursuant to Article 70(5) of the Companies Act (ZGD-1), Petrol d.d., Ljubljana hereby issues its Corporate governance statement.
December 2016, 29 December 2017, 31 December 2018, 31 December 2019, 24 February 2021 and 18 February 2022 via the Ljubljana Stock Exchange SEOnet information system. The latest valid version is available at Corporate Governance Policy of 17 February 2022. It is also available, in Slovene and English, on the website of Petrol d.d., Ljubljana (https://www.petrol.si/).
The Company conducts its operations in compliance with the Code, i.e. both with its guiding principles and recommendations. Any deviations or partial deviations from the Code are listed and explained below:
The Company's management is responsible for the keeping of proper books of account, setting up and ensuring the functioning of internal controls and internal accounting control, selecting and applying accounting policies and safeguarding the Company's assets. The establishment of the internal control system, which is based on the three lines of defence model, pursues the following three objectives:
The Company's management aims to establish a control system that is both as efficient as possible at the prevention of undesired events and acceptable in terms of cost. It is aware that every internal control system, regardless of how well it functions, has its limitations and cannot fully prevent errors or frauds. Nevertheless, it must be configured so that it flags them as soon as possible and provides management with suitable assurance about the achievement of objectives.
Petrol, therefore, keeps and further improves:
reporting in accordance with International Financial Reporting Standards, including all disclosures and notes that are required;
regular internal and external audits of business processes and operations.
The Risk Management chapter of this business report presents risk management and control mechanisms relating to the assessment of specific types of risk in greater detail. It is our opinion that in 2021 the existing internal control system of Petrol d.d., Ljubljana and of the Petrol Group allowed for the efficient and successful achievement of business objectives, operation in compliance with the law, and fair and transparent reporting in all material respects.
As a company bound by the Takeovers Act, Petrol d.d., Ljubljana hereby provides information on the situation as at the last day of the financial year and all the necessary explanations, in accordance with Article 70(6) of the Companies Act:
The Company has issued only ordinary registered no-par value shares, the holders of which have the right to participate in the management of the Company, the right to profit participation (dividends) and the right to a corresponding share in other assets in the event of the liquidation or bankruptcy of the Company. All shares belong to a single class and are issued in book-entry form.
All shares are fully transferable.
Pursuant to Article 77(1) of the Takeovers Act (acquiring a qualifying holding), the following information is provided (valid as at 31 December 2021):
The Company did not issue any securities carrying special control rights.
The Company has no employee share schemes.
There are no restrictions on voting rights.
The Company is not aware of such agreements.
The president and other members of the Management Board are appointed and discharged by the Supervisory Board. Apart from the worker director, the Supervisory Board appoints Management Board members on the proposal of the president of the Management Board.
| Shareholder | Address | Number of shares | Holding in % |
|---|---|---|---|
| Clearstream Banking SA - fiduciary account | 42 Avenue J. F. Kennedy, L-1855, Luxembourg | 287,012 | 13.76% |
| Slovene Sovereign Holding, d.d. | Mala ulica 5, 1000 Ljubljana | 264,516 | 12.68% |
| Republic of Slovenia | Gregorčičeva ulica 20, 1000 Ljubljana | 225,699 | 10.82% |
| Kapitalska družba, d.d. | Dunajska cesta 119, 1000 Ljubljana | 172,639 | 8.27% |
| OTP banka d.d. - Client account - fiduciary | Domovinskog rata 61, 21000 Split, Croatia | 142,159 | 6.81% |
| Vizija Holding, d.o.o. | Dunajska cesta 156, 1000 Ljubljana | 71,676 | 3.44% |
| Vizija Holding Ena, d.o.o. | Dunajska cesta 156, 1000 Ljubljana | 66,572 | 3.19% |
| Perspektiva FT d.o.o. | Dunajska cesta 156, 1000 Ljubljana | 36,262 | 1.74% |
| Unicredit Bank Hungary ZRT. - fiduciary | Szabadsag Ter 5 - 6, 1054 Budapest, Hungary | 30,989 | 1.49% |
| Nova KBM d.d. | Ulica Vita Kraigherja 4, 2000 Maribor | 25,985 | 1.25% |
The Human Resources and Management Board Evaluation Committee proposes to the Supervisory Board which method or a combination of methods to apply in order to find candidates for the president of the Management Board (personal invitations, job vacancy postings) and determines whether it is necessary to engage an external headhunting expert. The Human Resources and Management Board Evaluation Committee carefully checks the fulfilment of general and specific conditions required for the post of Management Board president or member and other conditions laid down in the Company's Articles of Association. The Committee also verifies the references stated in candidates’ CVs, and conducts interviews. It then puts together a selection of candidates for the president of the Management Board, conducts selection interviews and ranks them. Short-listed candidate or candidates for the president of the Management Board propose other Management Board members, with the Committee then checking the conditions and references of the proposed candidates. The Committee thereupon proceeds with the evaluation of the entire Management Board and negotiates with candidates the basic elements of their contracts. The candidate or candidates for the president of the Management Board and the proposed Management Board members together present the vision of the Company's development at a Supervisory Board meeting. The Supervisory Board conducts selection interviews with them. The Supervisory Board selects and appoints the president and members of the Management Board. If the Supervisory Board finds the candidates proposed by the candidate for the president of the Management Board (the proposed Management Board as a whole) unsuitable, the procedure is repeated.
The Supervisory Board may reappoint the Management Board within one year before the term of office has expired, but it is customary for the reappointment to take place not later than three months before the expiry. If the Company’s General Meeting passes a vote of no confidence in the Management Board, the Supervisory Board, convening immediately after the General Meeting, states its opinion concerning the recall of a Management Board member. If the General Meeting does not grant the Management Board and/or Supervisory Board discharge from liability, the Supervisory Board is required to convene as soon as possible to identify the reasons for the discharge of liability not being granted. Without prejudice to the above, the Supervisory Board may recall the Management Board, for reasons stipulated by law, on its own discretion. The Supervisory Board is required to immediately notify the Management Board not fully fulfilling the tasks falling under its mandate of its findings and opinions and to set the shortest deadline possible to eliminate the identified shortcomings. If the Management Board fails to achieve the expected results by the set deadline, the Supervisory Board decides whether to recall individual members of the Management Board. The Supervisory Board may appoint one of its members as a temporary Management Board member to replace a missing or absent member of the Management Board for a period of not more than a year. Reappointment or extension of the term of office is permitted if the entire term of office is not extended by more than one year.
The Supervisory Board of the Company comprises nine members, of which six are elected by the Company’s General Meeting with a majority vote of shareholders present and three by the Company Workers’ Council. They are elected for a term of four years and may be re-elected when their term of office expires. A resolution on an early recall of the Supervisory Board members representing shareholders shall be adopted with a three-quarters majority of votes present at the General Meeting, while the conditions for the recall of the Supervisory Board members representing employees shall be determined by the Workers’ Council in a general act.
At its 21st meeting of 13 December 2018, the Supervisory Board adopted the Diversity Policy Regarding Representation in the Company's Management and Supervisory Bodies. On 31 December 2018, it was published in Slovene and English on the Company's website (the full text of the Diversity Policy, including its goals and method of implementation, is available at Politika raznolikosti in Slovene and at The Diversity Policy).
The aim of the Diversity Policy is to ensure the composition of the Management Board and the Supervisory Board in such a way that each body is provided with a suitable set of skills, expertise and experience to ensure a good understanding of current events and long-term risks and opportunities related to the Company's operations and thus ensure the long-term successful and sustainable operation of the Company. According to the analysis of the long-term trends in energy and trade and related services (taking into account political-legal, economic, socio-cultural and demographic, technological and natural and industry forces), the following aspects of diversity are essential for efficient and sustainable operations: professional diversity, professional experience, diversity of competences, as well as gender diversity, age diversity and ensuring continuity.
Complementarity and diversity must be achieved through the composition of the Management Board and the Supervisory Board, which is reflected in:
With its Diversity Policy, the Company has set itself, in particular, the following goals:
The Diversity Policy is adequately implemented through the process of the recruitment and selection of candidates for members of the Supervisory Board and Management Board. The policy administrator is the Human Resources and Management Board Evaluation Committee of the Management Board, which monitors its implementation and reports to the Supervisory Board. It is used mainly in activities such as the pooling, selection and proposal of candidates for the Supervisory Board to the General Meeting, when appointing members of the Management Board and committees of the Supervisory Board and when conducting self-assessment of the Supervisory Board.
For the most part, policy objectives have been adequately achieved, in particular those relating to the diversity of education, occupation, experience and age. However, the diversity goals related to gender diversity have been partially achieved. On 25 October 2019, the current President of the Supervisory Board, Nada Drobne Popović, took over the management of the Management Board, and on that day the gender differences in both the Supervisory Board and the Management Board changed significantly. The Management Board was initially headed by three women and the Supervisory Board by men. Throughout 2020, both the composition of the Management Board and of the Supervisory Board were marked by considerable dynamics. Since then, the Management Board throughout 2020 comprised three women, then two women and two men, later three men and two women, and at the end of the year, when the Management Board was complete, it comprised one woman out of five members. In 2021, there were no changes in the composition of the Management Board and it thus comprises a president and four male members of the Management Board. However, only men (7 or 8 men) sat on the Supervisory Board in various compositions. At the end of 2020, the Supervisory Board carried out the personnel process to select candidates for members of the Supervisory Board but did not propose to the General Meeting to nominate any women, which is not in line with the Diversity Policy of the Management Board and the Supervisory Board of Petrol d.d., Ljubljana, which stipulates gender diversity as one of the six important aspects of diversity, but this is due to the fact that a significantly lower number of women applied for the position of members of the Supervisory Board. In addition, at the end of 2020, no female workers’ representatives were appointed by the Workers’ Council to the Supervisory Board for the terms of office beginning in 2021. The Workers’ Council also proposed to the Supervisory Board the appointment of a male Worker Director, whose term of office started on 11 December 2020. In the energy sector, women’s representation in management positions is found to be low.
At the 32nd General Meeting, it was voted – based on a counter-proposal – that after 11 April 2021, the Supervisory Board membership will comprise eight men and one woman. After the resignation of one of the elected members, another man was elected as a new member of the Supervisory Board at the 33rd General Meeting. Following the new composition, the Supervisory Board comprises eight men and one woman. In 2019, the Supervisory Board joined the initiative to achieve voluntary 40/30 gender diversity by 2026 as proposed by the Slovenian Directors’ Association. Among other partners, the initiative was also supported by the Slovenian Sovereign Holding and the Ljubljana Stock Exchange. The initiative contains the following commitment to achieve the voluntary gender diversity target by the end of 2026: 40 percent of members of supervisory boards and, jointly, 33 percent of members of the supervisory and management boards of listed companies and publicly owned companies shall be of the less represented gender. However, the core commitments given in said initiative were not fulfilled and only one woman was nominated for appointment. Given that the members of the Supervisory Board have been appointed for a four-year term and the members of the Management Board for a five-year term in 2020, no major changes in gender diversity are expected in the coming years.
The General Meeting decides on amendments to the Articles of Association with a majority of three-quarters of the share capital represented in the voting.
The Management Board has not been authorised by the General Meeting to acquire own shares.
The Company is not aware of such agreements.
In the event of resignation, Management Board members are not entitled to compensation, but they are entitled to it if the Company recalls them or terminates their employment contract without cause.
Company’s shareholders who collectively represent at least five percent of the Company’s share capital. The beneficiary requesting the convening of the General Meeting must enclose the agenda, a proposal for a resolution for each proposed agenda item to be decided by the General Meeting or, if the General Meeting does not adopt a decision on an individual agenda item, the reasoning of the agenda item. Notwithstanding, the General Meeting of the Company with the content required by regulations may also be convened by registered letter to all shareholders if their names and addresses can be established from the valid share register. In this case, the day on which the letter was sent shall be considered as the date of publication of the General Meeting.
The Management Board calls a General Meeting of the Company's shareholders 30 days before the meeting takes place by publishing a notice via the Ljubljana Stock Exchange SEOnet information system, the AJPES website and the Company's website. In the notice of the General Meeting, the Management Board specifies the time and place of the meeting, the bodies conducting the meeting, the agenda and proposed resolutions of the General Meeting and other information required by applicable law.
At the 33rd General Meeting held on 22 April 2021 (33rd General Meeting), the Company’s shareholders were presented with the Annual report and the Supervisory Board’s report on the verification of the Annual report for the financial year 2020, as well as with the remuneration of the members of the management and supervisory bodies. They discussed and adopted a resolution on the allocation of accumulated profit and the granting of discharge from liability to the Management Board and the Supervisory Board for the year 2020. They were briefed on the report of the Management Board on the activities carried out in connection with the findings of the report to the shareholders on the special audit, based on Resolution No. 2.3., adopted at the 32nd General Meeting on 28 December 2020. They adopted a resolution on the remuneration of members of the Supervisory Board and got acquainted with the new members of the Supervisory Board - employee representatives and the resignation statement of Branko Braček dated 25 March 2021 on irrevocable resignation from the position of a member of the Supervisory Board of Petrol d.d. and elected a new member of the Supervisory Board of Petrol d.d., Ljubljana, Janez Žlak, with the beginning of the term of office on 22 April 2021.
Petrol d.d., Ljubljana is managed using a two-tier system. The Company is led by the Management Board, which is supervised by the Supervisory Board. The management of Petrol d.d., Ljubljana is conducted in conformity with the law, the Articles of Association as the Company’s fundamental legal act, internal regulations, and established and generally accepted good business practices.
The Management Board of Petrol d.d., Ljubljana manages the Company independently and on its own responsibility. The Management Board represents and acts on behalf of the Company. According to the Company's Articles of Association, the Management Board comprises the president of the Management Board and other members of the Management Board. The total number of members of the Management Board shall be a minimum of three and a maximum of six. The exact number of Management Board members, their sphere of duties and their powers are determined by a resolution adopted by the Supervisory Board at the proposal of the president of the Management Board. One of the Management Board members is always a worker director, who only participates in decisions relating to human resources and social policy matters. From 27 August 2020, the Management Board functions with five members. The Management Board discussed matters falling within its competence at 80 meetings in 2021. All decisions were adopted unanimously. In addition to holding formal meetings, the Management Board exercised the powers and responsibilities pertaining to its daily activities and to the General Meeting, as stipulated by the Companies Act and the Articles of Association. The activities concerning the Supervisory Board were carried out in accordance with the provisions of the Supervisory Board Rules of Procedure and the Articles of Association. The Management Board regularly reported to the Supervisory Board on the Company’s operations and consulted it in connection with the Company’s strategy, business development and risk management. Some of the Management Board’s activities were also focused on collaboration with the Workers’ Council and the representative trade union.
Management Board members are appointed for a five-year term of office and may be re-appointed. The Company is represented jointly by the president and a member of the Management Board. If a power of procuration is granted by the Company, the holder can represent the Company only together with the president of the Management Board. The Company's Management Board is required to seek the consent of the Supervisory Board for the conclusion of the following transactions:
Company from the same lender or granted by the Company to the same borrower shall be considered as a single loan, whereby related companies in the sense of the provision of Article 527 of the Companies Act shall also be considered the same lender or borrower;
x individual purchases or sales of the non-current intangible, tangible fixed assets and investment property of the Company, for the amount exceeding EUR 5,000,000.00. For the avoidance of doubt, a set of several interconnected transactions shall also be considered as a single transaction, in particular insofar as they represent a single investment or are part of a single investment programme;
x transactions on the basis of which the Company (a) establishes a mortgage, building right or any other encumbrance on immovable property owned by the Company, with the exception of transactions establishing (quasi or true) real easements (i) to the benefit of public and private operators for the purpose of servicing the Company’s immovable property or (ii) to the benefit of the state or a municipality or of a public service operator; or (b) establishes a lien or otherwise encumbers other fixed assets or intangible assets of the Company;
x granting a power of procuration;
x other transactions, if so decided by the Supervisory Board of the Company by a decision.
The above also applies, mutatis mutandis, to transactions entered into by subsidiaries in the course of their operations and in respect of which the consent of the Company's Management Board must be obtained prior to the conclusion. For most of the above transactions, the Management Board must seek prior consent from the Supervisory Board before granting any consent requested by the management of any of its subsidiaries.
In 2021 there were no changes in the composition of the Management Board of Petrol d.d., Ljubljana.
In the period from 25 October 2019 to 10 February 2020, she managed Petrol d.d., Ljubljana as the President of the Management Board ad interim (after being appointed from among Supervisory Board members). On 11 February 2020, she was appointed by the Supervisory Board as the President of the Management Board for a five-year term of office. Born in 1975, she holds a Master of Science degree from the School of Government and European Studies, Brdo pri Kranju.
From 18 December 2020 to 20 May 2021:
From 21 May 2021 onwards:
On 11 March 2020, he was appointed as a Member of the Management Board for a five-year term of office. Born in 1980, he holds a master's degree in economics.
From 28 August 2020 to 20 May 2021:
From 21 May 2021 onwards:
On 11 March 2020, he was appointed as a Member of the Management Board for a five-year term of office. Born in 1974, he holds a master's degree in sociology and a bachelor's degree in law.
From 18 December 2020 to 20 May 2021:
He was appointed as a Member of the Management Board for a five-year term of office starting on 28 August 2020. Born in 1967, he holds a master’s degree in entrepreneurial management.
On 11 December 2020, he was appointed by the Supervisory Board as a Member of the Management Board and Worker Director for a five-year term of office. Born in 1970, he holds a master's degree in business administration and a bachelor's degree in mechanical engineering. In accordance with the Articles of Association of Petrol d.d., Ljubljana, the Worker Director participates in decision-making in connection with issues relating to the formulation of personnel and social policy.
In the two-tier management system, the Supervisory Board of Petrol d.d., Ljubljana performs the tasks of supervising the conduct of the Company's operations (including the selection and appointment of the Management Board), tasks related to the powers of the General Meeting and other statutory tasks.
Under the Company's Articles of Association, the Supervisory Board of Petrol d.d., Ljubljana comprises nine members. They are elected for a term of four years and may be re-elected when their term of office expires. The Supervisory Board elects its president and deputy president from among its members. The president and deputy president of the Supervisory Board are always shareholder representatives. The president of the Supervisory Board represents the Company in relation to the Management Board, and the Supervisory Board in relation to the Management Board and third parties, unless specifically determined otherwise. The president of the Supervisory Board represents the Company in concluding the contract with the auditor of the annual report and the consolidated annual report and in relation to the members of the Supervisory Board.
President of the Supervisory Board until 10 April 2021. President of the Management Board of S&T Slovenia, d.d. He was appointed for a four-year term of office beginning on 11 April 2017 at the 27th General Meeting of 10 April 2017. He served as Deputy President of the Supervisory Board from the constituent meeting of 22 April 2017 until 10 February 2020. On 11 February 2020, he became President of the Supervisory Board. At the end of his four-year term, which expired on 10 April 2021, he ceased to hold office on the Company's Supervisory Board.
Member of the Supervisory Board until 10 April 2021. Member of the Management Board of Hranilnica LON d.d., Kranj. He was appointed for a four-year term of office beginning on 7 April 2013 at the 23rd General Meeting of 4 April 2013, and reappointed at the 27th General Meeting of 10 April 2017, with his four-year term of office beginning on 11 April 2017. On 11 February 2020, he became Deputy President of the Supervisory Board. At the end of his four-year term, which expired on 10 April 2021, he ceased to hold office on the Company's Supervisory Board.
Member of the Supervisory Board until 10 April 2021. Member of the Management Board of Luka Koper d.d. He was appointed for a four-year term of office beginning on 11 April 2017 at the 27th General Meeting of 10 April 2017. At the end of his four-year term, which expired on 10 April 2021, he ceased to hold office on the Company's Supervisory Board.
Member of the Supervisory Board until 10 April 2021. Independent attorney. He was appointed for a four-year term of office beginning on 11 April 2017 at the 27th General Meeting of 10 April 2017. At the end of his four-year term, which expired on 10 April 2021, he ceased to hold office on the Company's Supervisory Board.
He was appointed at the 31st General Meeting of 24 July 2020 for the period from 24 July 2020 to 10 April 2021. At the end of that period, he ceased to be a member of the Supervisory Board. As of April 22, 2021, he is an external member of the Audit Committee.
President of the Supervisory Board from 22 April 2021 onwards. President of the Management Board of the Slovenian Sovereign Holding. He was appointed for a four-year term of office beginning on 22 April 2021 at the 33rd General Meeting of 22 April 2021. He has been serving as President of the Supervisory Board from the constituent meeting of 22 April 2021.
Deputy President of the Supervisory Board from 22 April 2021 onwards (SB member from 11 April 2021). General Manager of Kuehne + Nagel, AG, Schindellegi, CH. He was appointed for a four-year term of office beginning on 11 April 2021 as a Supervisory Board member at the 32nd General Meeting of 28 December 2020. He has been serving as Deputy President of the Supervisory Board from the constituent meeting of 22 April 2021.
Member of the Supervisory Board. Executive Director of Perspektiva FT d.o.o. Ljubljana. He was appointed for a four-year term of office beginning on 16 July 2013 at the 23rd General Meeting of 4 April 2013, and reappointed at the 27th General Meeting of 10 April 2017, with his four-year term of office beginning on 16 July 2017. He served as Supervisory Board President between 11 April and 21 April 2021. He was reappointed at the 32nd General Meeting of 28 December 2020, with his four-year term of office beginning on 16 July 2021.
Member of the Supervisory Board from 11 April 2021 onwards. Managing Director and founder of Renova real d.o.o. She was appointed for a four-year term of office beginning on 11 April 2021 at the 32nd General Meeting of 28 December 2020.
Member of the Supervisory Board from 11 April 2021 onwards. Representative of JT Banka, a.s. She was appointed for a four-year term of office beginning on 11 April 2021 at the 32nd General Meeting of 28 December 2020.
Member of the Supervisory Board from 11 April 2021 onwards. Head of the Cabinet of the Minister of the Republic of Slovenia, Ministry of the Environment and Spatial Planning. She was appointed for a four-year term of office beginning on 11 April 2021 at the 32nd General Meeting of 28 December 2020.
Member of the Supervisory Board. Petrol d.d., Ljubljana, Oil Products Sales and Management Director. He was appointed for a four-year term of office beginning on 22 February 2017 at the 3rd Workers’ Council meeting of 27 January 2017. He was reappointed at the 44th Workers’ Council meeting of 4 December 2020, with his four-year term of office beginning on 23 February 2021.
Member of the Supervisory Board. Petrol d.d., Ljubljana, Head of Ljubljana – Kranj Retail regional unit. He was appointed for a four-year term of office beginning on 22 February 2017 at the 3rd Workers’ Council meeting of 27 January 2017. He was reappointed at the 44th Workers’ Council meeting of 4 December 2020, with his four-year term of office beginning on 23 February 2021.
His term of office began on 11 December 2020. At the same meeting, he was also appointed for a four-year term, which he took on 23 February 2021 after the end of his term as a substitute member.
The Supervisory Board had two standing committees in 2021: the statutory Audit Committee and the Human Resources and Management Board Evaluation Committee.
The Audit Committee was composed of the following members in 2021:
Until 10 April 2021:
The Audit Committee worked in a limited composition in the period from 11 to 16 April 2021 because the term of office of some members ended:
The constituent meeting of the new Supervisory Board was held on 22 April 2021, at which new members of the Audit Committee were appointed.
In the period from 22 April 2021 onwards, the Audit Committee has the following composition:
The Human Resources and Management Board Evaluation Committee was composed of the following members in 2021:
Until 10 April 2021:
The constituent meeting of the new Supervisory Board in its new composition was held on 22 April 2021, at which new members of the Human Resources and Management Board Evaluation Committee were appointed.
In the period from 22 April 2021 onwards, the Human Resources and Management Board Evaluation Committee has the following composition:
Remuneration policy for members of management and supervisory bodies
In accordance with the provision of Article 294a of the Companies Act-1, the Company has established a remuneration policy for management and supervisory bodies, which will be submitted to the General Meeting for approval at the Company’s 34th General Meeting. This report discloses nominal amounts received in the financial year 2021 by each Management Board member and each Supervisory Board member, and they are defined in more detail in the Report on the Remuneration of Management and Supervisory Bodies of Petrol d.d., Ljubljana in the financial year 2021, in accordance with the provision of Article 294b of the Companies Act-1. The information on fixed and variable remuneration and other payments to the Management Board, as well as the criteria and methods used to determine compliance with these criteria, are also disclosed for the members of the Management Board. The remuneration policy in the part relating to the members of the Management Board is proposed by the Supervisory Board, while the remuneration policy for the Management Board member who is also the worker director and the legal representative authorised to represent the Company only together with the president of the Management Board and, in accordance with a Supervisory Board's resolution, is set in the Workers’ Participation in Management Agreement concluded by the Management Board and the Workers’ Council on 7 October 1997.
The variable part of the remuneration of the member of the Management Board who is also the worker director is adjusted to the applicable multiple of the monthly salary that is determined by the Supervisory Board for the other members of the Management Board, meaning that the worker director is paid the same multiple of the average monthly gross salary of Company employees.
In accordance with the proposal of the Remuneration Policy of the Management and Supervisory Bodies of Petrol d.d., Ljubljana, other members of the Management Board are entitled to the following remuneration:
Management Board, determined by the employment contract and expressed in a gross amount. To determine the basic salary, the level of complexity and responsibility of work is considered, taking into account the size of the company (number of employees, value of assets and generated net sales revenue) and complexity of operations (organisation, internationalisation, requirements of the direct economic environment, complexity of key products, regulation of activities).
x Variable remuneration is based on the performance of the Petrol Group and the Management Board as a whole. Performance criteria follow transparency, flexibility and strict adherence. Variable remuneration comprises remuneration according to the fulfilment of financial and non-financial criteria, which contribute to both the short-term and long-term performance of the Company. The variable part of remuneration is determined based on criteria that contribute to the promotion of business strategy, long-term development and sustainability of the Company. The criteria are known in advance and their fulfilment is verified by predefined methods. The Management Board also submits a report to the Supervisory Board on the work of the Management Board no later than when adopting the audited annual report for the financial year, which, taking into account these Rules, provides all the necessary bases on which the Supervisory Board can assess the performance of the Management Board in the financial year and consequently determine the appropriate amount of variable remuneration.
x Members of the Management Board are also entitled to certain other remuneration:
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
x A member of the Management Board is also entitled to severance pay under the conditions determined by law, the remuneration policy and the employment contract.
The remuneration of the Supervisory Board is determined by the General Meeting of the Company. At the 33rd General Meeting, which was held on 22 April 2021, a resolution was adopted that laid down the remuneration of Supervisory Board members. The full text of the resolution is set out in the announcement of the General Meeting resolutions, available at: 33rd General Meeting of the Company. The full document of the Remuneration Policy of the Management and Supervisory Bodies of Petrol d.d., Ljubljana is approved by the General Meeting.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
| Name and Surname | Function (president, member) | Area of work in the Management Board | First appointment to the office | Termination of office/mandate | Gender | Nationality | Year of birth | Education | Professional profile | Membership of supervisory bodies of non-related companies |
|---|---|---|---|---|---|---|---|---|---|---|
| Nada Drobne Popović | From 18 December 2020 to 20 May 2021: | • Human resources, processes and general administration | • Petroleum products and logistics | • Procurement |
11 February 2020
25 October 2019 (ad interim)
10 February 2025
Female Slovene 1975
Master of Science, School of Government and European Studies, Brdo pri Kranju
All-round management competences, including management of equity investments
From 21 May 2021 onwards:
Member of the Management Board
From 28 August 2020 to 20 May 2021:
11 March 2020
10 March 2025
Male Slovene 1980
Master of Economics
From 21 May 2021 onwards:
Member of the Management Board
11 March 2020
10 March 2025
Male Slovene 1974
Master of Sociology, Bachelor of Law
28 August 2020
27 August 2025
Male Slovene 1967
Master of Entrepreneurial Management
Competences in the area of trade, marketing, sales promotions, retail sales, development of new sales networks and markets, development of new point-of-sale types and concepts
Member of the Management Board and Worker Director
Worker Director, is not responsible for any area of work. Co-decides on issues related to the formulation of personnel and social policy.
11 December 2020
10 December 2025
Male Slovene 1970
Master of Business Administration, Bachelor of Mechanical Engineering
Competences in the area of energy
Competences in the area of law, corporate governance, energy (especially renewables), electricity trading and ESCO projects
Competences in the area of corporate finance, risk management, business intelligence and information technology
| Name and Surname | Function (president, deputy president, member) | First appointment to the office | Termination of office/mandate | Shareholder/employee representative | Attendance at SB meetings according to the total number of meetings | Gender | Nationality | Year of birth | Education |
|---|---|---|---|---|---|---|---|---|---|
| Sašo Berger | President of the Supervisory Board until 10 April 2021 | 11 April 2017 (Member of the Supervisory Board), from 10 February 2020 onwards Chairman of the Supervisory Board | 10 April 2021 | Shareholder representative | Three meetings (out of three during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1966 | Bachelor of Economics |
| Igo Gruden | Deputy President of the Supervisory Board until 10 April 2021 | 4 April 2013 (Member of the Supervisory Board), from 11 February 2020 onwards Deputy President of the Supervisory Board | 10 April 2021 | Shareholder representative | Three meetings (out of three during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1972 | Bachelor of |
| Name | Position | Term | Shareholder Representative | Meetings Attended | Gender | Nationality | Year of Birth | Education |
|---|---|---|---|---|---|---|---|---|
| Podkrižnik | Member of the Supervisory Board | until 10 April 2021 | 10 April 2017 - 10 April 2021 | Three meetings (out of three during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1971 | Master of Economics |
| Sergij Goriup | Member of the Supervisory Board | until 10 April 2021 | 10 April 2017 - 10 April 2021 | Three meetings (out of three during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1955 | Bachelor of Law |
| Janez Pušnik | Member of the Supervisory Board | until 21 April 2021 | 24 July 2020 - 10 April 2021 | Three meetings (out of three during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1970 | Master of Management and Organisation |
| Janez Žlak | President of the Supervisory Board | from 22 April 2021 onwards | 22 April 2021 - 21 April 2025 | Seven meetings (out of seven during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1965 | PhD |
| Borut Vrviščar | Deputy President of the Supervisory Board | from 22 April 2021 onwards (from 11 April 2021 onwards Member of the Supervisory Board) | 28 December 2020 - 10 April 2025 | Seven meetings (out of seven during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1969 | Bachelor of Electronics Engineering, Leadership and strategic |
| Name | Position | Term Start | Term End | Type | Meetings Attended | Gender | Nationality | Year of Birth | Education |
|---|---|---|---|---|---|---|---|---|---|
| Aleksander Zupančič | Member of the Supervisory Board | 11 April 2021 | 10 April 2025 | Shareholder representative | Seven meetings (out of seven during his term) and out of a total of ten meetings in 2021 | Male | Slovene | 1979 | Bachelor of Law |
| Mladen Kaliterna | Member of the Supervisory Board | 4 April 2013 | 15 July 2025 | Shareholder representative | All ten meetings of the Supervisory Board in 2021 | Male | Slovene | 1967 | Master of Management and Organisation |
| Alenka Urnaut Ropoša | Member of the Supervisory Board | 28 December 2021 | 10 April 2025 | Shareholder representative | Seven meetings (out of seven during her term) and out of a total of ten meetings in 2021 | Female | Slovene | 1975 | MBA, University graduate in economic engineering |
| Mário Selecký | Member of the Supervisory Board | 28 December 2021 | 10 April 2025 | Shareholder representative | Six meetings (out of seven during his term) and out of a total of ten in 2021 | Male | Slovak | 1975 | Master of Law |
| Alen Mihelčič | Member of the Supervisory Board | 27 January 2017 | 22 February 2025 | Employee representative | All ten meetings in 2021 | Male | Slovene | 1975 | Bachelor of Economics |
| Robert Ravnikar | Member of the |
27 January 2017
22 February 2025
All ten meetings in 2021
Male Slovene 1979
Bachelor of Economics
Member of the Supervisory Board
11 December 2020
22 February 2025
All ten meetings in 2021
Male Slovene 1973
Utility Engineer
| Name and Surname | Professional profile | Independence according to Article 23 of the Code (YES/NO) | Existence of a conflict of interest in the financial year (YES/NO) | Membership of supervisory bodies of other companies | Membership of committees (audit, HR, remuneration, etc.) | President/member | Attendance at committee meetings according to the total number of committee meetings |
|---|---|---|---|---|---|---|---|
| Sašo Berger | Monetary matters, finance, IT | YES | NO | / | Human Resources and Management Board Evaluation Committee | Member of the committee until 10 April 2021 | One meeting (out of one meeting during his term) and out of a total of four committee meetings in 2021 |
| Igo Gruden | Banking and asset management | YES | NO | / | Audit Committee, Human Resources and Management Board Evaluation Committee | Member of the committees until 10 April 2021 | One meeting of the Committee on Human Resources and Management Board Evaluation Committee (out of one meeting during his term) and out of a total of four meetings of the Committee in 2021, and four meetings of the Audit Committee (out of four meetings during his term) and out of a total of ten meetings of the Audit Committee in 2021 |
| Metod Podkrižnik | Energy, logistics, |
| Member of the committee | Until | Meetings attended | Total meetings |
|---|---|---|---|
| Sergij Goriup | 10 April 2021 | 4 (out of 4) | 10 |
| Janez Pušnik | 10 April 2021 | 1 (out of 1) | 4 |
| Janez Žlak | 21 April 2021 | 4 (out of 4) | 10 |
| Borut Vrviščar | 22 April 2021 onwards | 3 (out of 3) | 4 |
| Aleksander Zupančič | 22 April 2021 onwards | 6 (out of 6) | 10 |
| Name | Expertise | Committee | Position | Meetings Attended |
|---|---|---|---|---|
| Mladen Kaliterna | Investment and management | Audit Committee | President of the committee until 16 April 2021 | All ten meetings of the Audit Committee in 2021 |
| Alenka Urnaut Ropoša | Real estate appraisal | Audit Committee | President of the committee from 22 April 2021 onwards | Six meetings of the Audit Committee (out of six meetings during her term) and out of a total of ten meetings of the Audit Committee in 2021 |
| Mário Selecký | Banking, organisation and management | Human Resources and Management Board Evaluation Committee | Member of the committee from 22 April 2021 onwards | Two meetings (out of three meetings during his term) and out of a total of four meetings of the Commission in 2021 |
| Alen Mihelčič | Commercial operations | Human Resources and Management Board Evaluation Committee | Member of the committee in 2021 | All four meetings of the Human Resources and Management Board Evaluation Committee in 2021 |
| Robert Ravnikar | Sales | Human Resources and Management Board Evaluation Committee | Member of the Human Resources and Management Board Evaluation Committee until 10 April 2021; from 22 April 2021 onwards, a member of the Audit Committee | One meeting of the Human Resources and Management Board Evaluation Committee (out of one meeting during his term) and out of a total of four meetings of the Committee in 2021, and six meetings of the Audit Committee (out of six meetings during his term) and out of a total of ten meetings of the Audit Committee |
| Marko Šavli | Safety, compliance | Audit Committee, Human Resources and Management Board Evaluation Committee | Member of the Audit Committee until 16 April 2021 and member of the Human Resources and Management Board |
Three meetings of the Human Resources and Management Board Evaluation Committee (out of three meetings during his term) and out of a total of four meetings of the Commission in 2021, and four meetings of the Audit Committee (out of four meetings during his term) and out of a total of ten meetings of the Audit Committee.
Appendices C.3 and C.4 are included in the financial section of the annual report.
Nada Drobne Popović
President of the Management Board
Matija Bitenc
Member of the Management Board
Jože Bajuk
Member of the Management Board
Jože Smolič
Member of the Management Board
Zoran Gračner
Member of the Management Board and Worker Director
Ljubljana, 10 March 2022
| Name and Surname | Committee | Attendance at committee meetings according to the total number of committee meetings | Gender | Nationality | Education | Year of birth | Professional profile | Membership of supervisory bodies of non-related companies |
|---|---|---|---|---|---|---|---|---|
| Janez Pušnik | Audit Committee | Six out of six meetings of the Audit Committee as external member | Male | Slovene | Master of Business Administration | 1970 | Court expert witness for economics, specifically business valuation and accounting, certified appraiser | / |
| Christoph Geymayer | Audit Committee | Four out of ten meetings of the Audit Committee as external member | Male | Austrian | Master of Law | 1967 | Controlling and reporting, tax compliance, national and international tax planning models, corporate income tax, income tax, corporate finance, corporate law, labour law | / |
Pursuant to Articles 56(12) and 70 c of the Companies Act (ZGD-1), Petrol d.d., Ljubljana hereby issues the Non-financial statement of the Petrol Group and Petrol d.d., Ljubljana.
one (see Sales of Petroleum Products for more information). Petrol's development activities are focused on the introduction of new energy activities (see Energy and Solutions for more information) and on the production of renewable electricity (see Generation of electricity from renewable energy sources for more information). The operations of the parent company and some of its subsidiaries encompass multiple areas, from sales to energy and environmental systems, with other companies focusing on a narrower range of business operations (see The Petrol Group for more information). Petrol Group companies are located in several European countries (see The Petrol Group in its region for a map).
The sustainable development of the Petrol Group is based on respect for the natural environment and partnership relations with the wider community (see Sustainable development for more information). In June 2021, the Petrol Group published the Sustainability Report of the Petrol Group that was prepared in accordance with GRI standards (the latest sustainability report is available at Sustainability Report of the Petrol Group 2020.
The situation in the area of transport and the resulting sales of petroleum products together with the overall economic situation in the markets where the Group operates are the main factors affecting its operations. Transport is a sector that was hit the hardest by the outbreak of the COVID-19 pandemic with countries taking numerous measures to contain the pandemic, restricting movement between and within countries. Petrol d.d., Ljubljana responded to the pandemic as soon as it had occurred, informing the public on the measures it had taken and how the pandemic was impacting the Petrol Group's operations (see Petrol Public Announcements).
The policies defining the environmental impact of the Petrol Group are: the framework safety and security policy, the energy policy and the quality and environmental management policy. Being an integral part of all processes at Petrol, all three policies overlap as we conduct our business.
The quality and environmental management policy lays down our environmental protection efforts. Environmental protection is integrated into all levels of operations of Petrol d.d., Ljubljana. Petrol’s environmental management system complies with the requirements of the international standard ISO 14001 and is an integral part of Petrol’s development plan (see Quality control for a list of certificates by company). All Petrol’s employees are responsible to ensure consistent compliance with the requirements, while the Company's Management Board guarantees that these requirements can actually be met and that our fundamental environmental goals can be achieved.
Petrol recognises the importance of sustainable development and environmental protection. The transition to a low-carbon energy company, partnership with employees and the social environment, and the circular economy constitute the Petrol Group's business commitments in this strategic period. Through the continuous development of fuels, we will actively contribute to reducing emissions. At the same time, we will help reduce the carbon footprint of both the Petrol Group and our customers by pursuing clear sustainable policies. Thanks to improved internal processes, new competencies and empowered employees, we will be even more proactive in addressing the current and future needs of our customers and adapt our operations to the user, who is at the centre of our attention.
In the field of environmental management, the Petrol Group has committed itself to four fundamental goals:
Depending on the activities taking place at different sites, Petrol d.d., Ljubljana has obtained several environmental permits. It has valid environmental permits for all SEVESO plants and IEDs. It also consistently implements all the provisions defined in environmental permits.
The energy policy obliges Petrol to establish control over the use of energy and water that are necessary for the provision of its services. At Petrol, we are committed to continuously optimising our business efficiency and reducing energy and water consumption, while also reducing our environmental impact and, consequently, greenhouse gas emissions. Through its energy policy, Petrol aims for responsible and efficient energy use and water saving in connection with all its property, plant and equipment, which is also reflected in a smaller environmental footprint. Energy management and operations, as well as water-saving, are given a prominent role, and we follow the example of the best and most cost-effective practices. Our aim is to reduce the costs of energy and water in comparison to the revenue generated. This way we want to obtain a competitive advantage in the sector. Petrol has maintained an energy management system certified to ISO 50001:2018 requirements for many years. Through this system, we aim to reduce energy consumption and CO2 emissions, while also improving energy management within Petrol and with our external users of energy and environmental solutions.
Due to the strategic importance of products related to oil and merchandise sales, ensuring the safety, security and continuity of business is one of the key principles of the Petrol Group’s business. This principle is implemented through setting up a functioning integrated safety and security system, meaning a comprehensive, all-encompassing safety and security system in which the synergy between individual safety and security areas needs to be ensured together with the synergy of safety and security areas (safety and security processes) with other business processes.
The framework safety and security policy includes the following areas:
Environmental due diligence is carried out as an integral part of the environmental management system. This includes the energy aspect and the safety and security aspect, as Petrol considers the environment in a very broad sense. In the scope of every process, an annual activity report is drawn up, including environmental content (monitoring results, inspection results, the execution of environmental projects, compliance). The Company's management reviews the reports and discusses them as part of the management review of integrated management systems. The management review also covers the environmental policy and addresses the results of internal audits. The management review leads to conclusions addressing changes in the environmental management system, the continuous improvement of the system and opportunities for the better integration of the environmental management system into the processes of the Company.
In the Petrol Group, risks related to environmental protection are managed through the Group's framework safety and security policy, the compliance system and the elementary (implementing) safety, security and environmental subpolicies/systems (e.g. the safety and security management system under the SEVESO Directive, which applies to all SEVESO establishments managed by the Petrol Group).
We are committed to developing a strategy to achieve and manage comprehensive key climate change risk. In connection with the National Energy and Climate Plan, which Slovenia will have to implement by 2030, and the latest guidelines on non-financial reporting on climate indicators and the recommendations for the sustainable operation of companies:
The key risks are also related to ensuring process safety, which implies the comprehensive protection of people, the environment and property in the narrow and broad sense when handling hazardous substances. Process safety defines the areas of occupational safety and health, environmental protection (air, water, soil, noise and radiation), safety culture, the handling and manipulation of hazardous and non-hazardous chemicals, fire protection, inspection supervision and other areas.
The above is provided:
High levels of competence and awareness among employees are of key importance for the successful implementation of the safety and security system. Therefore, the Petrol Group continuously carries out training in accordance with the training programme and plans. The training covers the following areas: occupational health and safety, hazardous chemicals handling, the transport of hazardous goods, fire safety, anti-explosion protection, environmental protection, the SEVESO plant safety management system, information security, etc.
to optimising the environmental footprint of the core business activity, we help our partners reduce their energy, carbon, water and material footprint with our business products.
Every two years, we prepare a standalone Sustainability report stating the indicators according to the GRI-4 Guidelines (in June 2021, Petrol d.d., Ljubljana published the 2020 Sustainability Report of the Petrol Group). The content of the sustainability report is determined on the basis of three criteria: relevance, the integrity of key indicators of sustainable development management and the sustainability context.
The sustainability report provides an analysis of the present and, where relevant, a comparison with past trends, while being forward-looking at the same time. We realise that sustainable development is not a goal but merely a path, so our path is carefully recorded and assessed in the three dimensions of time. Reporting is transparent and accurate as per the data currently available to the Petrol Group.
The environmental aspects of our sustainable development are measured and managed through indicators that reflect the environmental footprint of our own activities (service stations, storage facilities for petroleum products and liquefied petroleum gas (LPG), treatment plants, the biogas plant, office buildings, etc.), and through indicators that reflect the contribution of our activities towards a smaller environmental footprint of other parts of the wider society.
The assessment of environmental aspects is carried out by professionals from different fields within the Petrol Group. The assessment takes place at least every three years or when significant legislation or environmental policy changes occur, or when the opinion of the stakeholders has changed. We work closely with our suppliers and contractual partners in managing significant environmental aspects and indicators (for more information, see the Protection of the environment and the 2020 Sustainability Report of the Petrol Group that was published by Petrol d.d., Ljubljana in June 2021).
Caring for social and environmental issues and offering help in solving social problems is part of the Petrol Group’s operations and its wider social challenges. Our responsible social attitude is demonstrated through the support we provide to a number of sports, arts, humanitarian and environmental projects. We help wider social and local communities achieve a dynamic and healthier lifestyle and, through this, a better quality of life.
The Petrol Group is one of the biggest employers in Slovenia and in the region. The HR strategy is an important part of the Group's development strategy. Successful, motivated, committed and loyal employees are the heart of the Petrol Group and its future. The vision, with which we address several main challenges of modern society, and ambitious business plans require comprehensive human resources management. This includes a well-thought-out recruitment policy, caring for the development and training of staff, teamwork, an effective system of employee remuneration and promotion, monitoring satisfaction and commitment, and caring for the safety and health of employees.
Equal opportunities for all is the cornerstone of our work. We respect human rights that are recognised by internationally established principles and guidelines, including the European Convention for the Protection of Human Rights and Fundamental Freedoms and the United Nations Declaration on Human Rights. We comply with legal and human rights standards in all countries where we operate. This is what guides our business relationships with customers, suppliers and employees. We promote an ethical attitude towards employees and our wider environment. The Petrol Group also employs persons with rights recognised based on their disability. We are a family- and employee-friendly company. The rights and obligations of employees in Petrol d.d., Ljubljana, are regulated by a corporate collective agreement.
We are signatories of the Diversity Charter of Slovenia. We respect diversity in all the processes of recruitment, promotion and staff development, and provide equal opportunities for all, regardless of gender, age, nationality, race, religion or other cultural differences and characteristics. In staffing and staff development, we pay special attention to equal opportunities for both genders. In the field of diversity, our measures are also introduced through the Mentoring, Healthy at Petrol, Family-Friendly Company and Open Space programmes, where we strive to promote intergenerational cooperation and learning at the Company level, promote occupational health and the involvement of all employees. We also show care for our employees through the development and promotion of corporate integrity. Through these activities, we live and spread our value of respect.
or the trade union, in accordance with the applicable legislation and other general regulations. The Trade Union of the Petrol Group and the Service Station Workers’ Union include over 1300 employees in Slovenia. Employees in subsidiaries are also members of other trade unions.
The Workers’ Council of Petrol d.d., Ljubljana has three standing committees (Committee for Status and Personnel Matters, Committee for Occupational Safety and Health Matters and Trade Union Cooperation Committee) comprising 13 members representing all organisational units. The worker director, as a member of the Management Board, participates in decision-making in connection with issues relating to the formulation of personnel and social policy. The Supervisory Board of Petrol d.d., Ljubljana includes three employee representatives, who are elected by the Workers’ Council.
Preventive and periodical medical examinations are carried out within the scope of ensuring health and safety at work. We also regularly educate and provide technical training to staff to ensure they work safely. In addition, the project “Healthy at Petrol” comprises programmes designed for preventive and curative measures and health promotion in the workplace. We also ensure the safety of work and appropriate professional qualification of our external colleagues by carrying out various technical programmes designed for them in the area of occupational safety. We lay down procedures relating to violence committed by third parties and we inform employees occupying higher-risk workplaces thereof.
Good health is a precondition for quality and success in life and at work. Through our Healthy at Petrol programme, we enable our staff to take part in different activities. The programme is mainly aimed at providing for a safe and stimulating working environment, raising the awareness of staff about the importance of remaining healthy and disseminating knowledge about a safe and healthy lifestyle at work, which can then also be reflected in personal lifestyles. Promoting a healthy lifestyle for our staff and taking ownership of our own health can prevent various chronic illnesses that are usually the result of an individual’s lifestyle. It can also improve the quality of life in old age.
The year 2021 was, as the year before, particular due to COVID-19 epidemic-related changes in the economic and health situation in the region. This interfered significantly with the regular work processes and our activities related to the care for employees. These activities were mainly dedicated to safety at work, protective measures to maintain health, the adjustment of training content and regular communication with employees regarding changes that have affected our work and life.
Due to the epidemic, a considerable number of employees continued to work from home in 2021, which affected work processes, management methods and communication in organisational units, additionally encouraging us to better implement the updated Rules on Working from Home and Teleworking and the Organisation of Remote Management Training for Managers. The Rules cover the areas that are significant in terms of the organisation of work from home and introduce a revised procedure for approving work from home. Great attention is placed on ensuring safety and health at work. Employees who perform work at home on a larger scale have been provided with appropriate work equipment. However, all employees working from home are entitled to compensation for the use of their own resources.
We developed an information solution for monitoring work from home, enabling the generation of analytical reports, which help us make decisions.
As of December 2020, employees of Petrol d.d., Ljubljana and at third-party managed service stations have at their disposal free counselling (via telephone or in-person) in case of stress or problems in their professional or personal life. Mental health care is very important. By introducing this measure we want to equip employees with the resources necessary to successfully face more difficult challenges while removing the stigma attached to mental health care. We know that only healthy and satisfied employees can be completely committed and full of energy to achieve our goals. In 2021, we also provided counselling to family members of employees and students at points of sale.
No major risks are identified in terms of Petrol's relations with the wider social environment from the point of view of support to different stakeholders. Through perfected processes of cooperation and the allocation of funds to different stakeholder groups, we ensure that such cooperation with the wider society is congruent with the legislation and the ethical principles of the Petrol Group.
Risks related to human resources may arise in relation to the lack of required knowledge, skills, experience and motivation of employees, and the unwanted turnover of key personnel. In order to prevent, eliminate and manage cases of violence, mobbing, harassment and other forms of psychosocial risk at work, the Petrol Group adopted the Code of Conduct, which is handed to all employees, who thus become acquainted with Petrol's values and principles that commit us to respect ethical and professional standards. In the scope of the periodic organisational climate measurement and other internal surveys, the employees can express their opinion and draw attention to any irregularities.
Management risks can lead to risks related to managerial competencies, disruptions in communication with employees, improper authorisation and limitation, and the risks of unrealistic, subjective and infeasible benchmarks. Management risks are controlled through the regular measurement of organisational climate and employee satisfaction and commitment across the Petrol Group, the system of annual and quarterly interviews, the assessment of skills and leadership, the measurement of the quality of internal services and the adopted human resources strategy. We have introduced a system of mentoring and coaching, the main purpose of which is the transfer of good practices, knowledge, skills, values and experience.
incompatibility of the Company's operations with the law, Petrol's Code of Conduct, other rules, applicable recommendations, internal regulations, good business practices and ethical principles. The management of this risk includes the application of the compliance system (Rules on the Functioning of the Compliance Assurance System).
Petrol is exposed to a higher risk of fraud due to the nature of its operations, which include point-of-sale operations involving cash registers and sales of petroleum products. Pursuant to the Code of Conduct and internal regulations, a zero-tolerance policy to fraud has been adopted within the Petrol Group. In charge of the comprehensive management of the risk of fraud is a task force that has put together a fraud register, assessed the risk of certain acts of fraud being committed, catalogued existing preventive and remedial checks, and drew up actions for the containment of fraud. The responsibility to detect and investigate fraud within the Petrol Group is in the hands of Corporate Operations Control and Investigations, a professional service consisting of a qualified team of investigators. Risks related to the respect for human rights can emerge both within the Company and in its relations with external stakeholders. These risks are managed by adhering to applicable regulations.
Petrol has been successfully managing the smooth operation of all processes since the beginning of the SARS-COV-2 virus epidemic. At the beginning of the epidemic in 2020, many new challenges needed to be addressed to ensure the safety and health of all participants, especially in providing adequate protective equipment for employees, which was in short supply until the introduction of preventive measures in all workplaces, most of which are still in force today.
The revision of the risk assessment adopted in the first wave of the epidemic is still a cornerstone of the safety and health of all employees and others present. It is equally important to ensure the health of our customers and other users of our facilities. The essential measures that are carried out at points of sale are also regularly published and updated on the website www.petrol.si, as we want to raise awareness that the health and safety of our customers are of utmost importance to us.
An essential tool for the rapid management of the situation at individual workplaces was the introduction of an electronic registration form, which we continuously adapted and coordinated with the current findings of experts and the requirements of applicable regulations through the development of the epidemic.
The form is still used today, and in addition to updates, the automation of responses and the provision of information to key services for the fastest possible action and notification was introduced.
From the second wave onwards, we encountered frequent inspections, which increased dramatically with the introduction of the RVT condition in 2021. No major discrepancies were identified, most cases were closed during the on-site inspection, in other cases, additional explanations were provided to the competent inspectorate and the required measures were met.
In individual cases, we encountered the problem of providing adequate staff at points of sale, which was successfully resolved by the competent heads of the points of sale through redeployments or similar measures. In one case, it was also necessary to establish an emergency operation of a professional fire brigade at a fuel depot.
Today, we can say that Petrol is ready for similar challenges, and the measures we are implementing due to the virus that has been crippling society for almost two years make it possible to provide a healthy workplace for all participants as much as possible.
At Petrol, we measure progress, build relationships, ensure proper communication and provide for the management of employees in Slovenia through measuring organisational climate and employee satisfaction and commitment on a regular basis. We recognise our own strengths and areas where there is room for improvement.
In recent years, we have improved existing and introduced additional management and development systems, which helped us to improve greatly in this area. The Petrol Group systematically and routinely provides for the development and education of employees in all markets in which we operate. We provide various ways for employees to acquire expertise, skills and work experience. In the circumstances of the epidemic, we continued remote training by means of M 365 tools and creating own materials in the e-classroom. We offered employees a series of short e-courses in corporate compliance, information security, remote team management skills, communication, sales and coaching skills.
Fifty-eight percent of the Petrol Group employees are male and 42 percent are female. Over the years, the gender structure has gradually improved in favour of women, whose share has grown by an average of 1 percentage point per year since 2003. The gender balance differs across companies depending on the activity of each company.
Particular attention is given to expanding the culture of a family-friendly enterprise. We have been involved in the certification process in Slovenia for over ten years and we successfully passed a second final audit by an external audit council. We successfully implemented all the planned measures to facilitate the balance between work and private obligations.
In Note 6.6 Labour costs of the financial report, we have disclosed the receipts of the employees of the Petrol Group and Petrol d.d., Ljubljana. The receipts of employees at third-party managed service stations are included in the item Costs of service station managers under Note 6.5 Costs of services. Added value per employee in the Petrol Group is presented in the chapter Business highlights of 2021 (for more information, see chapters Responsibility towards Employees, Information technology, Risk management).
Petrol is a signatory and ambassador of the Slovenian Corporate Integrity Guidelines. In the pursuit of our work, we abide by high standards of business ethics and build corporate culture promoting lawful, transparent and ethical conduct and decision-making by all staff.
Company's Management Board, are independent in their work and report directly to the Management Board. They regularly inform the Management Board and the Audit Committee about their activities. Among other things, the officers provide professional assistance to employees and advise employees and the Management Board on further steps and measures in the field of integrity. The Company has established several lines for reporting violations, fraud and other irregularities, namely the possibility of reporting via e-mail [email protected]; [email protected], via the website Report an irregularity or telephone number 080 13 95. Special emphasis is on the protection of bona fide whistleblowers.
Petrol has the necessary internal regulations in place. Petrol's Code of Conduct contains provisions on fair and transparent operations and the prevention of bribery and corruption. Every employee receives the Code in physical form. The Code is also published on the Intranet and online. The Rules on Ensuring Compliance have been adopted, which set out the basic rules and system solutions for compliant operations, and the Rules on Preventing, Determining and Eliminating the Consequences of Mobbing, on the basis of which undesirable behavioural practices from the point of view of the inappropriate treatment of employees are detected, identified and prevented. The Company has adopted the Rules on the Prevention of Corruption, which set out measures and methods to prevent corruption, manage conflicts of interest, handle gifts and invitations, give and accept benefits and introduce other business practices that reduce the risk of using decision-making power contrary to external or internal regulations and ethical standards.
Given the Company's principal activity, the risks in the area of corruption and bribery could arise at all levels of Petrol's business, both among employees at the points of sale, as well as with executive and other staff in different areas of business. A Security College and a Risk Committee have been established at the level of the Petrol Group to mitigate risks. In order to ensure the transparency of operations, the prevention of non-compliant practices and the establishment of control mechanisms, key committees have been established for procurement, investment processes and for the management of development needs and projects. In addition, risk-mitigating control mechanisms have been embedded in processes, for instance, the publication of the Code of Conduct, regular communication about the Code and corporate integrity within Petrol, anti-corruption clauses in agreements with business partners, and assessments of the business partners’ acceptability.
The Company has also established an effective system for verifying the acceptability of business partners for the entire Group, which involves multi-stage verification by various professional stakeholders. Before concluding a (sales/purchase) transaction the Company obtains information from business partners using the updated and upgraded “Know Your Client” (KYC), on the basis of which it conducts due diligence of the business partner. Obtaining data that forms an integral part of the questionnaire is a requirement under the provisions of the Prevention of Money Laundering and Terrorist Financing Act.
Employees of the Petrol Group are also regularly trained in this field. All employees attend the Corporate Integrity training, which enhances the understanding and knowledge of how to act in an impartial, just, credible, responsible and trustworthy manner, adhere to high moral principles in accordance with Petrol’s Code of Conduct, and how to act properly in case of detected irregularities.
In the current business strategy of the Company and the Petrol Group, the management of the Petrol Group has made it a priority to mitigate corruption risks and promote ethical conduct among employees, and consequently also among business partners. In the event of identified irregularities in a suspected criminal offence, the Company reacts in accordance with the legislative possibilities regarding the reporting of irregularities and compensation for damage.
The Company has developed a model of security consulting, where signs of corruption risks are identified. The Company adopted the Rules on conducting operations control and investigations in the Petrol Group. The purpose of the Rules is to determine actions and steps to be taken in operations control and when conducting investigations, and to establish an effective system for ensuring the integrity of the Company. The procedures for controlling operations and conducting investigations are aimed at quickly identifying and detecting violations, as well as at establishing mechanisms for appropriate actions (sanctioning), enabling the Petrol Group to operate and conduct business in accordance with moral, legal and ethical principles. In the event of a suspected violation, procedures are initiated under a specific protocol. The implementation of supervision and investigation procedures in Petrol is carried out through the organisational unit Corporate Security and Control of Operations.
The Petrol Group has a zero-tolerance policy towards criminal offences committed with intent.
In accordance with the Taxonomy Regulation (Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088), which entered into force on 12 July 2020 and established a classification system for environmentally sustainable economic activities, we report the indicators for taxonomy-eligible economic activities for the financial year 2021.
The reporting covers the environmental objectives of climate change mitigation and adaptation for Petrol d.d. In February 2022, natural gas as a low-carbon gas was added to the list of eligible energy sources. The indicators are calculated on the basis of the definitions in the annex to Regulation 2020/852– Key performance indicators for non-financial undertakings. Sustainable economic activities and sustainable investments in Petrol d.d. pursue the strategic goals of a green future for the period 2021–2025 with an emphasis on improving energy efficiency, investing in production, developing sustainable mobility and smart energy management.
| Economic activities | Code |
|---|---|
| Energy | D35.2, D35.1, D35.30 | EUR 49,154,783 | 1.38% |
|---|---|---|---|
| Construction and real estate | M71.1, F41.10, F43.2, C33.12, S95.22 | EUR 16,110,706 | 0.45% |
| Water supply, wastewater and waste management, environmental remediation | E36.00 | EUR 2,964,141 | 0.08% |
| Information and communication | J62.0 | EUR 1,657,722 | 0.05% |
| Transport | F42.22, N77.11 | EUR 513,741 | 0.01% |
| Revenue from taxonomy-eligible activities (A) | / | EUR 70,401,093 | 1.98% |
| Revenue from taxonomy non-eligible activities (B) | / | EUR 3,486,618,697 | 98.02% |
|---|---|---|---|
| Total (A+B) | / | EUR 3,557,019,790 | 100% |
In 2021 revenue from taxonomy-eligible activities accounted for 1.98 percent of total revenue in Petrol d.d., Ljubljana.
Revenue from energy activities accounted for the majority of revenue from taxonomy-eligible activities, namely 1.38 percent or EUR 49,154,783. Energy activities include transmission and distribution networks for renewable and low carbon gases – natural gas concessions, bioenergy heat/cold generation – wood biomass, electricity transmission and distribution, district heating/cooling distribution, heat/cold cogeneration and electricity from bioenergy, heat/cold generation using waste heat, photovoltaic energy production and geothermal heat/cold generation. According to the NACE statistical classification of economic activities, Revision 2, we are referring to the activities of manufacturing gas, distribution of gaseous fuels through mains (D35.2), electric power generation, transmission and distribution (D35.1) and steam and air conditioning supply (D35.30).
Construction and real estate represent 0.45 percent of all revenue of Petrol d.d. Ljubljana in 2021 and include activities of installation, maintenance and repair of energy-efficient equipment related to the supply of energy solutions for home and industrial users and renovation of existing buildings in the energy renovation of buildings: architectural and engineering activities and related technical consultancy (M71.1), development of building projects (F41.10), electrical, plumbing and other construction installation activities (F43.2), repair of machinery (C33.12) and repair of household appliances and home and garden equipment (S95.22).
Activities in the field of water supply, wastewater and waste management, remediation activities (0.08 percent of revenue) relate to water collection, treatment and supply (E36.00), specifically treatment plants.
Revenue of the Information and Communication division (0.05 percent of revenue) represents activities of solutions based on data for the reduction of greenhouse gas emissions (J62.0) and computer programming, consultancy and related activities, as defined in the taxonomy. They include the development of software solutions for integrated energy management systems and the use of software for the management of water supply systems, district energy, heating systems and public lighting.
| Code | Absolute Investments in Fixed Assets | Share of Investments in Fixed Assets |
|---|---|---|
| A.) TAXONOMY-ELIGIBLE ACTIVITIES | ||
| Construction and real estate | EUR 10,134,771 | 39.49% |
| Energy | EUR 2,220,474 | 8.65% |
| Transport | EUR 2,055,094 | 8.01% |
| Water supply, wastewater and waste management, environmental remediation | EUR 242,996 | 0.95% |
| Information and communication | EUR 53,223 | 0.21% |
| Investments in fixed assets from taxonomy-eligible activities (A) | EUR 14,706,557 | 57.30% |
| B.) TAXONOMY NON-ELIGIBLE ACTIVITIES | ||
| Investments in fixed assets from taxonomy non-eligible activities (B) | EUR 10,958,933 | 42.70% |
| Total (A+B) | EUR 25,665,491 | 100% |
Total value of gross investments for Petrol d.d. Ljubljana in 2021, excluding M&A projects, amounted to EUR 25,665,491. Total investments in taxonomy-eligible activities amounted to EUR 14,706,557 or 57.30 percent.
The value of investments related to maintenance and repairs was EUR 126,939, while the value of investments in building renovations was EUR 5,658,135. Investments in maintenance and repairs related to the activities of water supply, wastewater management, environmental remediation and energy. Investments in building renovations are tied exclusively to construction and real estate activities.
The largest share among sustainable investments in fixed assets was represented by investments in construction and real estate (39.49 percent of all investments in fixed assets), the majority of which are two major projects, namely comprehensive energy renovation of public buildings at the Technical School Centre Maribor and complete and partial energy renovation of buildings in the City of Ljubljana (EOL-3).
8.65 percent of all investments in fixed assets represent investments in the energy sector, specifically investments in concessions for the distribution of natural gas, in district heating and cogeneration systems and sustainable energy solutions for industry.
Investments in fixed assets of transport activities or mobility amounted to 8.01 percent of all investments in fixed assets of Petrol d.d. in 2021. Investments in fixed assets were intended primarily for activities on EU projects Multi-E, Urban-E and Next-E and the establishment of a network of charging infrastructure, especially for electric vehicles.
Activities of water supply, wastewater management and waste management, environmental remediation recorded a share of investments in fixed assets in the amount of 0.95 percent. They relate mainly to investments in treatment plants and wastewater treatment.
Investments in fixed assets of information and communication activities (0.21 percent) were mainly intended for upgrading the IoT platform Tango.
These activities and investments are presented in more detail in Chapter 14.4 – Energy and Environmental Systems.
The Company has no significant investments in working capital in products or services related to taxonomy-compliant economic activities.
Nada Drobne Popović
President of the Management Board
Matija Bitenc
Member of the Management Board
Jože Bajuk
Member of the Management Board
Jože Smolič
Member of the Management Board
Zoran Gračner
Member of the Management Board and Worker Director
Ljubljana, 10 March 2022
In 2020, the world faced a pandemic that, combined with strict health and protection measures, also had an impact on 2021 and consequently the operations of the Petrol Group. The Petrol Group developed an integrated response to the crisis caused by the epidemic. Initially, activities were focused on ensuring the continuity of operations in the changed circumstances and on identifying and managing risks. Further activities had a long-term focus so that the Petrol Group could operate without interruption in a very different business environment.
The Petrol Group operates in two highly competitive industries – energy and trade. Besides trends in the area of energy and trade, the Group's operations are subject to several other and often interdependent factors, in particular changes in energy product prices and the US dollar exchange rate, which are a reflection of global economic trends. In addition, operations in the Petrol Group's markets are influenced to an important extent by local economic conditions (economic growth, inflation rate, growth in consumption and manufacturing) and measures taken by governments to regulate prices and the energy market.
The Petrol Group's operations are also affected by the measures taken by countries to contain the pandemic. The sectors most affected by the pandemic include aviation, public and individual transport, tourism and personal services.
In their forecasts at the beginning of February 2022, the International Monetary Fund and the European Commission assessed the impact of the pandemic on the global economy. After significant declines in economic activity in 2020, we witnessed an economic recovery in 2021, despite the continuation of the pandemic. The forecast of economic growth for Petrol's largest sales market Slovenia (6.9% GDP growth, previously 3.7%) and Croatia (10.5% GDP growth, previously 4.7%) has improved significantly. According to IMAD's forecasts in the Autumn Forecast of Economic Trends, Slovenia expects a 6.1 percent growth in 2021.
To mitigate the negative effects of the epidemic, comprehensive packages of measures were adopted at the national level and by the European Central Bank (ECB) and the European Commission aimed at alleviating the loss of revenue of the economy and the general population, providing liquidity and supporting economic recovery.
In addition to the continuation of the epidemic, stable economic growth in 2021 was accompanied by high growth in the prices of energy products. Reasons for the high prices of energy products include increased energy demand due to economic growth, high prices of carbon dioxide allowances in the European Union (closure of thermal power plants), limited supply of natural gas from Russia, lower production of electricity from renewable sources due to the weather conditions, and a long and cold winter.
Source: International Monetary Fund, World Economic Outlook, February 2022
The Petrol Group has strictly followed the instructions of the authorities when preparing and implementing measures in all markets where it operates. Its primary concern was oriented towards measures to protect the health of Petrol's customers and employees, and it also kept the public informed about all measures.
Depending on the course of the epidemic in 2021, various measures were in place in Slovenia to contain the epidemic, especially measures to restrict movement, namely a restriction of movement between municipalities, a restriction of movement of people between 9 pm and 6 am (in force until 11 April 2021), difficulty crossing national borders (required tests for SARS-CoV-2 infection, quarantine …). In the first half of the year, measures restricting movement had a negative impact on transport and mobility, and thus on lower sales of petroleum products. During summer, tourist flows mostly took place on the roads, which had a positive impact on our business.
The Government of the Republic of Slovenia declared an epidemic on 19 October 2020, and last extended it by 30 days on 16 May 2021. The epidemic in Slovenia ended on 15 June 2021. Due to a significant deterioration of the epidemiological situation, the Government of the Republic of Slovenia introduced the RVT condition for the performance of most activities on 15 September 2021, which again changed purchasing habits (decline in sales of merchandise). Similar measures have been adopted by countries in the region where the Petrol Group is present.
Source: Petrol, 2021
Source: Petrol, 2021
Earlier this year, the world faced another lockdown due to the COVID-19 pandemic. Nevertheless, crude oil prices in this period reached an all-time high since January last year. An important factor influencing the relatively high price growth is Saudi Arabia’s decision to limit daily production by one million barrels by April 2022. The decision of OPEC, which, as expected, did not increase the volume of production, also contributed to the growth. However, the impact of the relatively cold winter in the northern hemisphere, which has caused many outages and problems in energy distribution, and the aggravation of relations between the United States and Russia, cannot be ignored.
OPEC analysts have predicted that by the end of 2021, oil demand will rise sharply. Their words were supported by the global economic recovery. With the arrival of warmer months and the vaccination of the population, many strict “Covid” measures were limited or even shifted. The unexpectedly high decline in commercial crude oil inventories in the United States also contributed significantly to the positive changes in the oil markets. At the beginning of June 2021, we (for the first time in a year) reached the price of oil over USD 70 per barrel. The relatively high rise in prices has not been halted even by OPEC's announcement that they will abandon the policy of limiting production at the beginning of July.
Despite the forecasts, OPEC member states and Russia have failed to reach an agreement on regulating the level of crude oil pumped. In its report at the end of July, the IEA noted a stronger decline in oil stocks than originally anticipated. At the same time, the market was very optimistic about the recovery of the world economy, which led to a surplus on the demand side. If we add to this the strong tropical storms in the Gulf of Mexico (loss of production), a relatively high rise in the prices of energy products in the third quarter of 2021 was inevitable. Recent analyses of the world's largest traders in “black gold” predict that the energy crisis will continue. Increasing the price above USD 80 per barrel was thus only a matter of time. Brent exceeded the limit of USD 80 per barrel on 4 October 2021.
At the end of 2021, due to a new COVID-19 variant, we received a lot of speculation on the market and fear of another lockdown of both society and economic activities. All this negatively affected the price of oil. Even greater price drops were prevented by overhauls at many refineries and OPEC forecasts to adjust to original forecasts of increased production volumes.
In Slovenia, retail prices of all petroleum products in 2021 were formed freely according to market conditions. Due to high prices of energy products, on 20 October 2021, the Government of the Republic of Slovenia adopted the Decree on setting prices for certain petroleum products, which reintroduced state regulation of the prices of heating gas oil. The maximum margin allowed was EUR 0.0600 per litre. The Decree was in force for three months.
In Croatia, retail prices of petroleum products formed freely on market terms in the first nine months. On 14 October 2021, the Government of the Republic of Croatia adopted the Decree on setting the maximum retail prices of petroleum products (Uredba o utvrđivanju najviših maloprodajnih cijena naftnih derivata) limiting the retail prices of petrol to a maximum of HRK 11.10 per litre (EUR 1.48 per litre) and retail diesel prices up to a maximum of HRK 11.0 per litre (EUR 1.46 per litre). On 11 November 2021, the Government of the Republic of Croatia extended the limit on the maximum retail price of 95-octane petrol and the price of diesel for one month. It has released retail prices for other fuels. On 7 December 2021, Croatia then released retail prices for petrol and diesel as well.
In Serbia, retail prices of petroleum products are set freely under market conditions. In Bosnia and Herzegovina, from 3 April 2021, the retail calculation margin is limited to a maximum of EUR 0.128 per litre - before that, the retail prices of petroleum products were formed freely under market conditions. In Montenegro, the prices of petroleum products are set in accordance with the Regulation on the Method of Setting the Maximum Retail Prices of Petroleum Products, which has been in force since March 2021. The prices change fortnightly, provided that prices on the oil market (Platts European Marketscan) change and the euro and dollar exchange rates are rounded off. Before that, the prices of petroleum products were set in accordance with the Regulation on the Method of Setting the Maximum Retail Prices of Petroleum Products, which was in force from 1 January 2011.
The exchange rate between the US dollar and the euro in 2021 ranged between 1.12 and 1.23 USD per 1 euro. The average exchange rate of the US dollar according to the exchange rate of the European Central Bank in 2021 was 1.18 USD for 1 EUR.
Source: Petrol, 2021 Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
High electricity prices have been a challenge for both suppliers and customers. As a result, many suppliers adjusted their regular price list for household and small business customers (Petrol adjusted it as of 1 December 2021), and the increase in electricity prices had a special impact on the economy, which purchases energy in advance under futures products. Part of the economy, hoping for improvement, waited for the decision to purchase electricity until the end of the year, which only brought even higher, record prices.
2021 was extremely exciting in the natural gas market and one of the most unusual so far, as we witnessed a remarkable rise in the price of natural gas. Natural gas prices began to rise in early 2021, following the lowest levels in 2020.
The rise in prices was influenced by information and optimistic forecasts of economic growth, as vaccines against COVID-19 were developed. In order to revive the economy as soon as possible, all countries have consistently promised substantial aid. The rise in prices was further fuelled by the EU's commitments to the transition to carbon neutrality, which call for the closure of coal-fired power plants and encourage investment in renewable energy sources. As a result, the demand for natural gas for the production of electricity in thermal power plants increased, as the value of emission allowances increased from EUR 30 to around EUR 80. Prolonged cold weather, which lasted until the second half of May, also affected stocks in Europe's natural gas storage facilities, which fell to their lowest level in recent years.
At the beginning of 2021, the price of natural gas for the year ahead on the CEGH exchange was still around EUR 17.00 per MWh, which is at the lowest level of price movements in recent years. Throughout 2021, however, the price of natural gas has been steadily rising. At the end of June it reached a level of around EUR 25.00 per MWh, in August EUR 33.00 per MWh, in September, October and November it ranged between EUR 50.00 and EUR 55.00 per MWh, in December over EUR 90.00 per MWh and on 21 December 2021 reached a record EUR 139.00 per MWh.
Source: Petrol, 2021 Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
In 2021, the Petrol Group generated sales revenues in the amount of EUR 5 billion, which is 61 percent more than in 2020 and 13 percent more than in 2019 (pre-pandemic period). In 2021, we encountered various measures by countries to contain the epidemic, which restricted movement both between local communities and between countries. Revenues increased compared to the previous year, mainly due to higher sales of natural gas and higher prices of oil and other energy sources and also the incorporation of E 3, d.o.o. and Crodux Derivati Dva d.o.o. into the Petrol Group.
In 2021, the Petrol Group sold 3.1 million tons of petroleum products, which is 4 percent more than in the same period in 2020, of which 44 percent in retail and 56 percent in wholesale. The largest decline was recorded in the sale of fuels to EU markets, especially in Italy, where a large number of excise warehouses were closed, which prevented larger imports of petroleum products into the country. Retail was mainly affected by countries’ measures to restrict movement to contain the COVID-19 epidemic. In 2020, the lockdown was in mid-March, while in 2021 the biggest constraints were in the first months of the year. Thus, compared to 2020, we sold less motor fuels, especially in the first two months, while sales in the rest of the year were higher than in the same period of the previous year. In addition, in 2020 we sold significantly more extra light heating oil in the first half of 2020 than in 2021, and sales of extra light heating oil in the third half of the year were higher compared to the same period in 2020. In addition, due to the extremely low prices of petroleum products, we sold significantly more extra light heating oil in 2020 than in 2021, and we usually sell the most in the autumn months.
In 2021, we sold 1,420.7 thousand tons of petroleum products in Slovenia, which represents 45 percent of the Petrol Group's total sales. We sold 1,061.6 thousand tons of petroleum products to the markets of SE Europe, which represents 34 percent of the Petrol Group's total sales, and 666.0 thousand tons of petroleum products to the EU markets, which represents 21 percent of the Petrol Group's total sales.
At the end of June 2021, the Petrol Group managed over 593 service stations, of which 318 were in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 16 in Serbia and 15 in Montenegro.
In 2021, we generated EUR 487.2 million in revenues from the sale of merchandise, which is 9 percent more than in the same period in 2020. Since 15 September, due to the introduction of the RVT condition in Slovenia, we have seen a significant drop in sales in this segment. In 2021, we also sold 141.2 thousand tons of LPG, 36.0 TWh of natural gas, 15.1 TWh of electricity and 165.4 thousand MWh of heat.
sales on the Italian market. In the last weeks of March 2020, the impact of the COVID-19 epidemic was already present in these markets. As a result, the surplus of goods on the market led to a sharp drop in prices on the world market for petroleum products, which led to much worse financial results in 2020 than in 2021. The impact of the epidemic on the Petrol Group's operations was greatest in the second quarter of 2020 and in the first quarter of 2021, as countries adopted a series of measures to contain the epidemic, which restricted movement between countries and local communities. This led to lower sales of motor fuels, which are Petrol's main sales item. In early October, Petrol d.d., Ljubljana, completed the acquisition of a 100 percent interest in the Croatian company Crodux Derivati Dva d.o.o. after fulfilling the suspensive conditions, which affected the growth of gross profit in the last quarter of 2021.
Operating costs of the Petrol Group in 2021 amounted to EUR 425.1 million, which is EUR 59.1 million or 16 percent more than in 2020 and EUR 78.9 million or 23 percent more than in 2019.
The share of operating costs in adjusted gross profit in 2021 was 78.2 percent, which is more than in the period before the pandemic, mainly due to accrued costs for onerous contracts from previous years and onerous contracts for the sale of electricity. On the other hand, we recorded the growth of other operating revenues from the same title.
The costs of materials totalled EUR 29.3 million in 2021, which was EUR 1.4 million or 5 percent more than in 2020.
The costs of services in 2021 totalled EUR 147.7 million and were up EUR 14.4 million or 11 percent from 2020.
| The Petrol Group (EUR) | 2021 | 2020 | Index 2021/2020 |
|---|---|---|---|
| Cost of materials | 29,296,024 | 27,934,256 | 105 |
| Cost of services | 147,697,919 | 133,344,297 | 111 |
| Labour costs | 114,341,509 | 102,856,574 | 111 |
| Depreciation and amortisation | 79,091,758 | 74,994,167 | 105 |
| Other costs | 54,698,358 | 26,938,726 | 203 |
| Operating costs | 425,125,568 | 366,068,020 | 116 |
by EUR 1.8 million compared to 2020, when we reduced the volume of advertising to a minimum due to the COVID-19 epidemic.
Labour costs totalled EUR 114.3 million and were up 11 percent or EUR 11.5 million compared to 2020. In line with the measures taken by countries to contain the COVID-19 epidemic, the Petrol Group made use of measures relating to the reimbursement of labour costs of EUR 0.6 million, while in 2020 this amount amounted to EUR 4.8 million, these effects are recorded as a decrease in labour costs. Due to the expense of the merger of Crodux Derivati Dva d.o.o. and E 3, d.o.o., costs increased by EUR 6.3 million, and by EUR 2.7 million due to the transfer of service stations to the Company's management.
The depreciation and amortisation charge stood at EUR 79.1 million, an increase of 5 percent or EUR 4.1 million relative to 2020. They increased by EUR 5.2 million due to the merger of Crodux Derivati Dva d.o.o. and E 3, d.o.o. with the Petrol Group, but due to the lower volume of investments, they decreased in the parent company.
Other costs stood at EUR 54.7 million, which was EUR 27.8 million more than in 2020. Compared to the previous year, the costs of impairments and write-offs decreased by EUR 1.9 million, while accrued costs increased (onerous contracts for the sale of electricity (on the other hand, higher other operating revenues), liabilities for biogas plants – onerous contracts, accrued costs of non-compliance with obligations to ensure energy savings and accrued costs of renewable energy sources – biocomponent).
In 2021 we continued with the optimisation of costs and streamlining operations, which is already reflected in the operations of the Petrol Group.
Other operating revenue stood at EUR 277.3 million, which was EUR 171.6 million more than in 2020. Gain on derivatives totalled EUR 269.9 million or 169.8 million more than in 2020. Other operating expenses stood at EUR 236.6 million, which was EUR 161.6 million more than in 2020. Loss on derivatives totalled EUR 235.7 million or 161.3 million more than in 2020.
The Petrol Group is exposed to price and volumetric risks arising from trade in energy products (petroleum products, natural gas, electricity, LPG). The Petrol Group manages price and volumetric risks primarily by striving to harmonise purchases and sales of energy products, both in terms of volumes and purchase and sale conditions and thus protects the generated margin on energy products. Depending on the business model of the energy product, limits are set that limit the exposure to price and volumetric risks. To protect the price of petroleum products, the Petrol Group mainly uses derivative financial instruments. The partners are global financial institutions and banks or suppliers of goods, so the Petrol Group estimates that the risk of non-fulfilment of concluded contracts is minimal. In electricity trading, the Petrol Group also concludes derivative financial instruments with financial institutions where the risk of the non-performance of concluded contracts is minimal, taking into account the accepted market value limits. The value of financial transactions changes annually according to the movement of market prices and the need to protect our portfolio.
EBITDA of the Petrol Group broken down by activity
EBITDA in 2021 amounted to EUR 238.1 million, which is 43 percent more than in 2020 and 21 percent more than in 2019, which we managed to achieve by successfully adjusting sales to market conditions and efficient cost management.
Operating profit totalled EUR 159.0 million or 74 percent more than in 2020 and 28 percent more than in 2019.
Shares of investment income valued according to the equity method amounted to EUR 2.6 million, which is EUR 0.9 million or 26 percent less than in 2020 and 1 percent more than in the same period in 2019.
Net finance expenses of the Petrol Group stood at EUR 10.2 million, which was EUR 0.5 million more than in 2020 and EUR 6.7 million more than in 2019. In 2021 net loss on exchange rate differences were up EUR 7.5 million higher compared to the same period in 2020, and net revenues from derivative financial instruments in EUR 2021 were EUR 5.1 million higher than in 2020, whereas net interest income was up by EUR 6.2 million. In 2021, the value adjustment of operating receivables was up EUR 6.0 million compared to the previous year, while impairments of investments and goodwill were down EUR 2.8 million.
Operating profit before taxes in 2021 totalled EUR 151.4 million or 77 percent more than in 2020 and 19 percent more than in 2019. Net profit realised in 2021 amounted to EUR 124.5 million, which is 72 percent more than in 2020 and 18 percent more than in 2019.
The balance sheet total of the Petrol Group as at 31 December 2021 amounted to EUR 2.4 billion, which is 33 percent more than at the end of 2020. Non-current assets amounted to EUR 1.3 billion, which is 23 percent more than at the end of 2020, and current assets amounted to EUR 1.1 billion, which is 48 percent more than at the end of 2020. Compared to the end of 2020, current operating receivables increased by EUR 283.9 million. The growth of balance sheet items was mainly influenced by the incorporation of Crodux Derivati Dva d.o.o. and E 3, d.o.o. into the Petrol Group and rising energy prices.
Impact of government grants on labour costs, EBITDA and pre-tax profit
| 2021 | 2020 | 2021/2020 Index | |
|---|---|---|---|
| Adjusted gross profit | 543.4 | 426.9 | 127 |
| Labour costs, including government grants | 114.3 | 102.9 | 111 |
| Labour costs, excluding government grants | 115.0 | 107.6 | 107 |
| EBITDA, including government grants | 238.1 | 166.6 | 143 |
| EBITDA, excluding government grants | 238.7 | 161.8 | 148 |
| Pre-tax profit, including government grants | 151.4 | 85.5 | 177 |
| Pre-tax profit, excluding government grants | 152.1 | 80.7 | 188 |
| Adjusted* | 31 December 2020 | 2021/2020 Index | |
|---|---|---|---|
| Assets | |||
| Intangible assets, property, plant and equipment, investment property | 1,129,174,349 | 922,376,264 | 122 |
| Investments in jointly controlled entities and associates | 55,874,127 | 56,515,407 | 99 |
| Right-of-use assets | 102,621,512 | 62,401,606 | 164 |
| Other non-current assets | 24,733,320 | 27,680,805 | 89 |
| Non-current (long-term) assets | 1,312,403,308 | 1,068,974,082 | 123 |
| Inventories | 178,191,288 | 140,154,195 | 127 |
| Operating receivables | 650,343,180 | 366,441,439 | 177 |
| Cash and cash equivalents | 100,226,890 | 88,674,952 | 113 |
| Other current assets | 142,286,765 | 127,833,783 | 111 |
| Current assets | 1,071,048,123 | 723,104,369 | 148 |
| Total assets | 2,383,451,431 | 1,792,078,451 | 133 |
| Total equity | 908,698,005 | 826,669,437 | 110 |
|---|---|---|---|
| Financial liabilities | 433,812,995 | 303,431,060 | 143 |
| Lease liabilities | 92,991,633 | 54,397,111 | 171 |
| Operating liabilities | 5,661,782 | 727,182 | 779 |
| Other non-current liabilities | 79,870,672 | 78,184,574 | 102 |
| Non-current liabilities | 612,337,082 | 436,739,927 | 140 |
| Financial liabilities | 65,958,447 | 48,766,555 | 135 |
| Lease liabilities | 13,768,130 | 10,069,352 | 137 |
| Operating liabilities | 690,456,613 | 437,216,148 | 158 |
| Other current liabilities | 92,233,154 | 32,617,032 | 283 |
| Current liabilities | 862,416,344 | 528,669,087 | 163 |
| Total liabilities | 1,474,753,426 | 965,409,014 | 153 |
| Total equity and liabilities | 2,383,451,431 | 1,792,078,451 | 133 |
*After having newly analysed the contract of gas purchase in the subsidiary, we found that, in line with IFRS 15, goods were actually not purchased; hence it is more appropriate to disclose the transaction as a short-term loan. The Group thus decreased the value of inventory and increased the value of financial receivables on 31 December 2020.
The most important items in the non-current assets consisted of property, plant and equipment, intangible fixed assets and investment property, which totalled EUR 1.1 million and were EUR 206.8 million higher than at the end of 2020. Right-of-use assets totalled EUR 102.6 million at the end of 2021, which was 64 percent more than at the end of 2020. Non-current investments in jointly controlled entities and associates stood at EUR 55.9 million, which was EUR 0.6 million less than in 2020.
The management of current assets, which accounted for 45 percent of the Petrol Group’s total assets, is given particular attention. The amount of the current operating assets affects the amount of borrowing from suppliers and banking institutions. With short-term crediting ensured both at home and abroad, we are, however, able to respond quickly to changes in the amount of these assets. Compared to the end of 2020, the balance of operating receivables as at the last day of 2021 increased by 77 percent.
The value of inventories increased by 27 percent year-on-year. Oil prices were higher at the end of 2021 than at the end of 2020.
In the area of credit risk management, we closely follow all procedures of credit insurance companies. The Petrol Group has secured 78 percent of all receivables, which individually exceed a nominal value of EUR 100,000. We monitor customer payments on a daily basis and, where appropriate, adopt measures to reduce credit risk. Despite the negative impact on the economy, payment discipline has not significantly deteriorated so far.
As at the last day of the period, the Petrol Group had EUR 126.6 million in working capital or EUR 70.2 million more than at the end of 2020 when it had stood at EUR 56.4 million. Cash flows generated from operations amounted to EUR 177.0 million in 2021, which is EUR 39.7 million more than in 2020. The Petrol Group used own revenues for investment activities, the payment of dividends and repayment of loans while missing funds were secured from banks. The net financial liabilities to equity ratio (net D/E ratio) was 0.6 as at the last day of 2021, while at the end of 2020 it had stood at 0.40. The net debt to EBITDA ratio stood at 2.1 at the end of 2021 compared to 2.0 at the end of 2020. The financial leverage ratio stood at 36 percent at the end of 2021, up from 28 percent at the end of 2020.
The Petrol Group’s net investments in property, plant and equipment, intangible fixed asset and long-term investments of the Petrol Group totalled EUR 233.2 million in 2021, of which EUR 192.2 million for the acquisitions of companies Crodux Derivati Dva d.o.o. and E 3, d.o.o. In 2020, we allocated EUR 85.4 million for investments.
The Petrol Group was in a very good business and financial condition before the pandemic. Despite the difficult business conditions, it will continue to pursue its strategic objective of ensuring stable operations, including by maintaining an appropriate debt to EBITDA ratio. A shareholder policy that is based on the long-term maximisation of returns for shareholders is still one of the cornerstones of Petrol’s development strategy. The Management Board of Petrol d.d., Ljubljana advocates a stable long-term dividend policy, which best fits the Petrol Group’s long-term development targets.
Despite the pandemic, Petrol d.d., Ljubljana, paid out the dividend in 2021, amounting to EUR 22.0 per share, which is the same as in 2020, when the highest dividend to date was paid.
In 2021, Standard & Poor's Ratings Services reaffirmed Petrol d.d., Ljubljana's “BBB-” long-term credit rating, its “A-3” short-term credit rating and its “stable” credit rating outlook.
To present its business performance, the Petrol Group also uses alternative performance measures (APMs) as defined by ESMA. The APMs we have chosen provide additional information about the Petrol Group's performance.
| APM | Calculation information | Reasons for choosing the measure |
|---|---|---|
| Adjusted gross profit | Adjusted gross profit = Revenue from the sale of merchandise and services – Cost of goods sold | The Petrol Group has no direct influence over global energy prices, which makes the adjusted gross profit more appropriate to monitor business performance. |
| EBITDA | EBITDA = Operating profit without allowances for operating receivables and impairment of goodwill + Depreciation and amortisation charge. | Until the end of 2020, the depreciation of environmental fixed assets was excluded because long-term deferred revenue had been created for this purpose which was reallocated each year to other operating revenue at an amount corresponding to the depreciation of environmental fixed assets. In 2020, the depreciation of environmental fixed assets amounted to EUR 10.0 thousand. |
| EBITDA | EBITDA indicates business performance and is the primary source for ensuring returns to shareholders. | |
| EBITDA/Adjusted gross profit | Ratio = EBITDA/Adjusted gross profit | The ratio is a good approximation of the share of free cash flows from operating activities in adjusted gross profit. |
| Operating costs/Adjusted gross profit | Ratio = Operating costs/Adjusted gross profit | The ratio is relevant because it concerns the cost-effectiveness of operations. |
| Net debt/Equity | Net debt = Current and non-current financial liabilities + Current and non-current lease liabilities – Cash and cash equivalents; Ratio = Net debt/Equity | The ratio reflects the relation between debt and equity and is, as such, relevant for monitoring the Company's capital adequacy. |
| Net debt/EBITDA | Ratio = Net debt/EBITDA | The ratio expresses the Petrol Group’s ability to settle its financial obligations, indicating in how many years financial debt can be settled using existing liquidity and cash flows from operating activities. |
| ROE | ROE = Net profit/Average equity | The ratio indicates the Petrol Group's efficiency to generate net profit relative to equity. Return on equity also reflects management's performance in increasing the value of the Company for its owners. |
| ROCE | ROCE = Operating profit / (Total assets – Current |
At its 8th meeting on 17 February 2022, the Supervisory Board of Petrol d.d., Ljubljana took note of the operations relating to electricity production from renewable sources and gave its consent to the Management Board of Petrol d.d., Ljubljana to invest in solar power plants in Knin, Croatia. These are three large solar power plants with a total installed capacity of 22MW and with an expected electricity production of 29 GWh, the development of which was completed in 2021. The solar power plants, with a total investment value estimated at EUR 17 million, will start producing electricity in early 2023.
The Petrol Group’s operations are integrated into international energy flows. The war in Ukraine is also affecting the energy market, which is mainly reflected in rising energy prices, while energy supplies are currently uninterrupted.
The Petrol Group does not have its own companies or representative offices in Ukraine, the Russian Federation and Belarus. The share of sales revenue generated by the Petrol Group in these markets is negligible, and the purchase of energy products in these markets, except for natural gas, represents a small share in the Petrol Group’s purchasing portfolio. In 2021 and the first two months of 2022, Russia as a source of supply has accounted for less than 7 percent as regards Petrol d.d., Ljubljana’s middle distillates (diesel and extra light heating oil), and as for petrol, we do not import it from Russia.
The largest part of the Petrol Group’s operations with companies from the Russian Federation is the purchase of natural gas, which takes place through Geoplin d.o.o., Ljubljana. For the time being, deliveries from Russia are going smoothly and in accordance with contractual obligations. Geoplin d.o.o., Ljubljana has a diversified supply portfolio and will do everything in its power to ensure the uninterrupted supply of natural gas to its customers.
The Petrol Group closely monitors the situation in both the energy and financial markets. As a provider of essential services under the Information Security Act, we also carry out appropriate security measures and activities. For the time being, the Petrol Group’s operations are running smoothly, we are monitoring the situation through a risk identification and management system and taking appropriate measures to ensure an uninterrupted supply of energy.
After analysing the impact of the situation in Russia and Ukraine on our operations, we estimate that the situation known at the time of preparing the annual report does not affect the fulfilment of the Petrol Group’s plan for 2022.
The Petrol Group operates in two challenging business activities: trading and energy. Both are facing significant changes, which require a fresh perspective on the key business model concepts. In the energy segment, increasing importance is given to energy efficiency, to new uses of existing energy products and to the development of new ones. There is increasing awareness of sustainable development, accompanied by tightening regulations. In trading, we are noticing a shift in the behaviour of end-customers who are becoming more aware, engaged and digitally skilled.
The Petrol Group is aware of the changes and addresses them in the 2021 – 2025 strategy. We are addressing the trends in the energy industry with a comprehensive range of energy solutions. Thanks to new digital channels, a broader range of energy products and personalised offer, we will be even closer to our customers, helping them make a transition from traditional energy sources to cleaner renewable energy. The described changes in the business environment and related trends bring new risks and opportunities. In its 2021 – 2025 strategy, the Petrol Group has adjusted its business objectives according to its risk management policies and its risk appetite.
In October 2021, the acquisition of the Croatian company Crodux Derivati Dva d.o.o. was completed. In the last months of the year, integration procedures into the Petrol Group began. From the point of view of financial risks, we examined the customers of Crodux Derivati Dva d.o.o. The employees of this company learned about the rules of the Petrol Group in the field of credit risk management. In addition, we carried out procedures for the incorporation of the new company into the Petrol Group's credit insurance scheme as of 1 January 2022. In the area of liquidity risk management, we also paid additional attention to the incorporation of the new company into the Petrol Group.
In the last quarter of 2021, we witnessed an extraordinary rise in the prices of all energy products, including petroleum products, gas and electricity. Price growth has a significant impact on the management of price and volumetric risks in the Petrol Group, so in the last months of 2021, we paid a lot of attention to the management of these risks.
In 2021 the pandemic was an additional and significant risk management factor with a sweeping impact on the Petrol Group's operations. The Petrol Group responded to the pandemic crisis in a comprehensive manner as early as 2020; we continued in the same way in 2021. Part of the activities is focused on ensuring the health of customers and employees, uninterrupted operations in changed circumstances and identifying and managing risks. Other activities have a long-term focus so that the Petrol Group could operate without interruption in a very different business environment. A report on the impact of the COVID-19 pandemic on the Petrol Group's operations and risk management is also available in the chapter Performance analysis of the Petrol Group 2021.
In the second quarter of 2021, the Petrol Group again performed a risk assessment. According to the new results of the risk assessment, the following financial risks remain among the most relevant and most probable risks: credit, price and volumetric risks, as well as foreign exchange risk. In 2021, several activities were carried out in this area. The result is the adoption of updates to the methodology for assessing and monitoring risks, the active operation of committees and the improvement of processes that currently control and monitor risk management at a global level and contribute to reducing the Petrol Group's exposure to individual financial risks.
In connection with credit risks, we paid attention to our customers’ solvency and, by extension, the balance and quality of operating receivables. We have also continued to build on the solid foundations laid in recent years in terms of the collaterals we hold. As at 31 December 2021, 78 percent of Petrol's trade receivables individually exceeding EUR 100,000 were secured through insurance policies, bank guarantees and other appropriate insurance instruments. In 2019, credit risk management was upgraded as we switched to a new information system that monitors our partners’ credit risk and supports the process of setting credit limits. The system was deployed within the parent company in 2019 and at a subsidiary in 2020. Most other Group companies of major significance transitioned to the new system in 2021, as scheduled.
The Credit Committee continued to actively pursue its mandate. Realising that our partners, like us, will also face the financial consequences of the pandemic, much attention was paid to receivables management.
Liquidity of the Petrol Group companies was ensured through the central management and reconciliation of current cash flows and by managing the Petrol Group's debt. In ensuring the structural liquidity of the Petrol Group we follow the guidelines set out in connection with the rating assigned to us by Standard & Poor's Ratings Services. In 2021 our investment grade BBB- long-term credit rating, A-3 short-term credit rating and our stable credit rating outlook were reaffirmed by the agency. This continues to provide us with better access to financial resources and, at the same time, a stable financial position. In 2021 the Petrol Group's Management of Assets and Liabilities Board continued to monitor liquidity, foreign exchange and interest rate risks.
The Petrol Group plays an increasingly important role in electricity sales, distribution and trading and the sale of natural gas, which is why in 2021, a lot of attention was devoted to credit, price and volumetric risks. Most attention was paid to the sale of electricity to end-customers, where we completely overhauled the system of monitoring volumetric and price risks beyond quantity limits (by individual segments). Monitoring volumetric and price risks through quantity limits was also introduced in electricity production from own sources and in natural gas sales to end-customers, where we additionally introduced an improved system of monitoring the credit risks of wholesale partners. In electricity trading, the monitoring of volumetric and price risks underwent minor overhauls.
In risk management, the Petrol Group pursues a strategic direction of ensuring stable business growth while accepting moderate risks. We adjust the required rate of return to the expected risks.
The risks we are willing to take on are those arising from the Petrol Group's development strategy. It allows further stable business growth and the dynamic development of new business models. We tread carefully, however, when taking on risks arising from:
But we are not willing to take on the following risks:
In accordance with this overarching principle, the following strategic risk management orientations of the Petrol Group were defined:
Petrol’s risk model consists of an integrated set of 20 risk categories divided into two major groups: environment risks and performance risks.
The last risk assessment was carried out in 2021. According to the results of the assessment, the following financial risks remain among the most relevant and most probable risks: credit, price and volumetric risks, as well as foreign exchange risk. To control and manage these risks, the most rigorous control system possible is required. The Company uses such a system, which is described in more detail in sections dealing with individual financial risks. In addition to the main financial risks, the most relevant and probable risks include economic environment risks, business decision-making risks, financial environment risks, process risks, strategic decision-making risks, information systems risks and interest rate risks.
Distribution of the Petrol Group's risks according to the latest assessment
In 2021 individual risk categories were managed as follows:
The Petrol Group protects itself against external environment risks by systematically monitoring developments in the business environment and responding to them in a timely manner. The most relevant and frequent risks included in the group of external environment risks are economic environment risks. Although relevant, disaster risks, which also belong to this group, occur infrequently. Financial environment risks, legislation and regulation risks and political risks were also assessed as medium-relevance and lower-frequency risks and were classified into the second quadrant together with other environmental risks.
Economic environment risks are managed by constantly monitoring competitors and analysing the operations of electricity, oil and gas companies, as well as by means of market surveys, benchmark analyses, customer satisfaction measurement, etc.
We also try to identify the financial environment risks through financial planning and simulations, as well as through cooperation with the financial environment (banks, financial institutions, investors). These risks are taken into account when preparing a strategic business plan and are discussed at the Balance Sheet Management Board.
Legislation and regulation risks are managed by proactively engaging with institutions that are able to amend relevant laws and by analysing the impact of relevant legislative proposals and changes on the Petrol Group's operations.
Performance risks include operational risks, strategic risks, risks of fraud and other illegal acts, and financial risks.
Operational risks include human resources management and leadership risks, process risks, information system risks, security and safety risks, and risks of discontinued operations. According to the latest assessment, process risks, followed by information system risks are the most relevant and frequent of those risks.
Process risks refer to a potential loss resulting from incorrectly defined/set up organisational processes, their ineffective/inefficient execution and unresponsiveness to changes in the Company's external/internal environment. The Petrol Group therefore actively reviews all of its business processes. At the same time, we are developing a process architecture that will determine the owners and administrators of individual processes.
Nowadays, information infrastructure is also becoming increasingly important. The risk of information systems not being properly set up, not functioning correctly, not being sufficiently secure or being prone to interruptions, or of errors occurring in the collection and processing of data, or of the systems not being responsive to changes in the external and internal environment or to the needs of users, is extremely relevant, which is why we pay considerable attention to this field. The projects addressing this risk include the replacement of the Petrol Group's ERP system and the deployment of a new CRM system, which was implemented in 2019 in the parent company, in 2020 in a subsidiary in Croatia, while other major companies in the group transitioned to the new system in 2021, as scheduled. In 2022, some other subsidiaries will join the new system.
Human resources management and leadership risks are controlled through the regular measurement of organisational climate across the Petrol Group, the annual interview system and the assessment of management skills, the measurement of the quality of internal services and the adopted human resources strategy. The Petrol Group is increasingly aware of the importance of human resources, as they became more relevant in the last risk assessment.
Strategic risks are closely connected to operational risks. They include strategic decision-making risks, business decision-making risks and information risks, with the latter being the most relevant and frequent, according to the latest assessment. They are followed by strategic decision-making risks, while the risks of providing information were ranked lower.
The risk of fraud and other illegal acts is split into two subgroups, i.e. the risk of criminal offences/fraud and the corporate integrity risk. The risks of criminal offences/fraud include fraud committed by management, illegal acts, fraud, theft, abuse of employees and third parties, the unauthorised use of resources, intentional damage and violent illegal acts. The management of the risks of criminal offences/fraud requires constant supervision and control as they are assessed to be of high frequency and low relevance.
The risk of corporate integrity breach refers to the incompatibility of the Company's operations with the law, Petrol's Code of Conduct, other rules, applicable recommendations, internal regulations, good business practices and ethical principles. The management of this risk includes the application of the compliance system (Rules on the Functioning of the Compliance Assurance System).
Petrol is exposed to a higher risk of fraud due to the nature of its operations, which include point-of-sale operations involving cash registers and sales of petroleum products. Pursuant to the Code of Conduct and internal regulations, a zero-tolerance policy for fraud has been adopted within the Petrol Group.
In charge of the comprehensive management of the risk of fraud is a task force that has put together a fraud register, assessed the risk of certain acts of fraud being committed, catalogued existing preventive and remedial checks, and drew up actions for the containment of fraud.
The responsibility to detect and investigate fraud within the Petrol Group is in the hands of Corporate Security and Control of Operations, a professional service consisting of a qualified team of investigators.
According to the assessment of frequency and relevance, financial risks have the highest rankings. As a result, the Petrol Group focuses in particular on this risk category. This is evident from detailed risk management procedures including clearly specified systems of limits, appropriate monitoring levels and reporting on exposure to individual financial risks, as well as the active involvement of boards and committees tasked with monitoring and controlling individual financial risks. The financial risk management system is subject to continuous assessment and improvement. Specific activities in this area are presented below in sections dealing with individual risks.
The most relevant and probable financial risks include credit, price and volumetric risks, as well as foreign exchange risks, with liquidity and interest rate risks having a slightly less prominent profile. Detailed information about exposure to individual types of financial risk and disclosures about financial instruments and risks are provided in the notes on the financial statements, specifically in the financial instruments and risk management chapter.
The Petrol Group's business model includes energy products, such as petroleum products, natural gas, electricity and liquefied petroleum gas, exposing the Group to price and volumetric risks and to foreign exchange risks arising from the purchase and sale of these products.
The Petrol Group purchases petroleum products under international market conditions and pays for them mostly in US dollars, while sales take place in local currencies (mainly in EUR). This exposes the Petrol Group to both the price risk (changes in the prices of petroleum products) and the foreign exchange risk (changes in the EUR/USD exchange rate) while pursuing its core line of business. The Petrol Group manages volumetric and price risks to the largest extent possible by matching the suppliers’ terms of procurement with the terms of sale applying to customers. Any remaining open price or foreign exchange positions are closed through the use of derivative financial instruments, in particular commodity swaps in the case of price risks and forward contracts in the case of foreign exchange risks.
Trading in electricity exposes the Group to price and volumetric risks. In the last quarter of 2021, the price of electricity supplied in Hungary in 2022 increased by about 63 percent, and since the beginning of 2021 by more than 307 percent. The main reason for the high rise in prices is the high rise in natural gas prices and emission allowance prices, as well as the closure of nuclear power plants in Germany. Such a high increase in energy prices significantly increases the price risks managed by the Group through a set of limit systems defined according to the business partner, risk value and volumetric exposure, and through appropriate monitoring and control processes. In addition, the Group regularly monitors the adequacy of the limit systems used, which it renews and supplements if necessary.
In addition to the risks arising from changes in the EUR/USD exchange rate, the Petrol Group is exposed, to some degree, to the risk of changes in other currencies, which is linked to doing business in the region. The Group monitors open foreign exchange positions and decides how to manage them on a quarterly basis.
Credit risk was assessed as the most important among financial risks in 2021, which is also due to the impact of the pandemic. The Petrol Group was exposed to it in connection with the sale of products and services to natural and legal persons and manages it with the measures outlined below.
unit, as well as by credit risk assessment, level of insurance and individual customer. In addition, we introduced centralised control over credit insurance instruments received and centralised the collection process.
Due to the COVID-19 pandemic and the resulting significant drop in economic activity, companies were faced with liquidity shocks leading to our customers having a higher credit risk. In 2021, the Petrol Group continued to closely monitor indicators of increased risk and had intensive communication with its customers. At the operational level, all companies in the Petrol Group still closely monitor the balance of receivables on a daily basis and actively cooperate with customers.
Despite the above measures, the Petrol Group, too, is unable to fully avoid the consequences of bankruptcies, compulsory composition proceedings and personal bankruptcies. We consider that credit risks are satisfactorily managed within the Petrol Group. Our assessment is based on the nature of our products, our market share, our large customer base, the vast range of credit insurance instruments, a higher volume of secured receivables and a low level of overdue receivables. 68 percent of receivables from legal entities are secured, with credit insurance and offsetting against trade liabilities being the most widely used insurance instruments (together accounting for 90 percent).
The Petrol Group has been assigned a BBB- long-term international credit rating, an A-3 short-term credit rating and a stable credit rating outlook by Standard & Poor's Ratings Services, which reaffirmed the ratings on 9 April 2021. This investment-grade rating enables us to tap international financial markets more easily and at the same time represents an additional commitment towards successful operations and the deleveraging of the Petrol Group. We are following the relevant S&P methodology in the management of liquidity risks.
In 2021, the average petroleum product prices were higher year-on-year, meaning that slightly more working capital of the Petrol Group was needed. Despite the constant growth of energy prices, the liquidity position of the Petrol Group remained solid, both at the level of the Group and at the level of individual subsidiaries. With an appropriate structure and scope of long-term and short-term credit lines, we smoothly ensured the liquidity adequacy of the Petrol Group. Even in the event of a deterioration in the economic situation, the current volume of credit lines ensures uninterrupted operations and an adequate liquidity structure of the Petrol Group according to the criteria of the S&P credit rating agency.
Due to the continuation of the COVID-19 pandemic, we pay great attention and prudence to cash flow management, especially regarding the planning of cash inflows from layaway sales, this being the main source of credit risks and, consequently, liquidity risks. Upon the acquisition of Crodux Derivati Dva d.o.o., we paid additional attention to internal liquidity risk management and liquidity management within the companies in the Group.
Despite the decline in sales due to measures to contain the COVID-19 pandemic, the Petrol Group settles all its liabilities as they fall due. This is possible thanks to its relatively low debt levels and strong liquidity position.
The Petrol Group regularly monitors its exposure to the interest rate risk. 82 percent of the Group's non-current financial liabilities contain a variable interest rate that is linked to EURIBOR. The average values of EURIBORs in 2021 were lower than the average values in 2020. EURIBOR remains historically low (negative).
To hedge against exposure to the interest rate risk, a large portion of variable interest rates is transformed into a fixed interest rate using derivative financial instruments, thus protecting our net interest position. In 2021, in connection with a new long-term loan with a variable interest rate, we took out new interest rate insurance in the total amount of EUR 200 million with the same maturities as a long-term loan. The Petrol Group thus has all long-term financial liabilities with a variable interest rate secured by IRS collateral.
In 2021 the COVID-19 pandemic was again the most significant factor affecting the Petrol Group's operations in the field of petroleum product sales. To contain the pandemic, countries took a number of measures to restrict movement, which was negatively reflected in the sales of petroleum products.
In 2021, we sold 3.1 million tons of petroleum products, which is 4 percent more than in 2020 and also 4 percent more than planned. 45 percent of our sales were generated in Slovenia, 34 percent in EU markets, and 21 percent in the EU markets. Furthermore, 44 percent of the sales were generated in retail and 56 percent in wholesale operations.
At the end of 2021, the Petrol Group’s retail network comprised 592 service stations. 317 in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 16 in Serbia and 15 in Montenegro. Complementing the services provided at service stations are 156 car washes, over 200 bars and Fresh restaurants, charging points for electric vehicles and TIP STOP quick-service facilities.
20 percent market share in terms of the number of service stations. MOL has a 10 percent market share in Slovenia. In 2021, the acquisition of OMV points of sale by MOL took place, which means that it will become our second-largest competitor with a 29 percent share.
The COVID-19 pandemic also had a significant impact on the financial year. Various measures have led to the closure, partial closure or restriction of the provision of certain services. This was partly reflected in the operation of car washes and bars, as well as the supply of freshly prepared food. The effects of the pandemic varied according to the market. From the second half of September, visits to points of sale and sales on the Slovenian market were also influenced by the fulfilment of the RVT condition.
In accordance with the changed situation, various measures were taken to ensure user-friendly access to the offer of goods and services. The use of mobile shopping solutions has also increased, i.e. the “Na poti” mobile app. In order to adapt to the situation, control costs, access to the supply of goods and services, the opening hours have also been adjusted, and some methods of providing services have also changed.
With the merger of Crodux Derivati Dva d.o.o. we increased our market share in the Croatian market from 13 percent to 23 percent, thus consolidating the brand's presence and position in this market. INA remains our biggest competitor, followed by other companies such as Lukoil, Tifon and some smaller ones. We have started the implementation of the integration process, within which all the necessary procedures for the merger and unification of business processes will be carried out.
In Bosnia and Herzegovina, Petrol has almost a 4 percent market share in terms of the number of service stations. Its major retail competitors include Nestro Petrol, Energopetrol and the Nešković Group. In Montenegro, Petrol has nearly 13 percent of the market in terms of the number of service stations, its major competitors being Eko and Lukoil. In Serbia, the companies NIS, Lukoil, Knez Petrol and Mol have the largest retail networks. The reorganisation of the Petrol Group also had a more visible effect on the strengthening of retail operations, which is reflected in even stronger market integration, a regional approach and the standardisation of business processes.
Similar to 2020, 2021 was marked by the COVID-19 pandemic and measures to prevent the spread of the virus. In 2021, the “Na poti” application recorded the highest growth in monthly active users to date as they recognised the convenience and usefulness of the application in a period when reducing contacts was very important. In particular, the application proved to be an excellent alternative method of payment with the introduction of the RTV condition in September, which dictated special requirements for visiting retail space.
In January 2021, the application was upgraded with the 3D secure 2.0 protocol for additional payment authentication in accordance with the new EU directive. The development of the application in 2021 focused mainly on the Croatian market, where from June 2021 onwards, the application can be used to pay for Coffee-to-go. This was followed by the collection of Gold Nuggets and rewards in the form of free coffee in Croatia and Slovenia. The number of pick-up points in Slovenia where users can collect orders for Hip purchases has also increased, from 36 to 69.
In 2021, a total of 569,325 transactions were performed via the “Na poti” application in Slovenia and Croatia. Compared to 2020, the total number of transactions increased by more than 70 percent. Most transactions were made to pay for Coffee-to-go followed by payments for fuel, car wash and food payments for Fresh and HipShop products. In 2021, the application recorded over 65,000 monthly active users and more than 12,800 paying users per month, which together generated 119 percent more margin than the year before.
We also put the needs and wishes of our customers first when it comes to our business customers and the public sector, which is ultimately reflected in the operation of the entire organisation and the Company's operations. Concern for establishing and nurturing customer relationships is reflected in our day-to-day operations.
We consider cooperation based on understanding, flexibility and helpfulness as a fundamental principle. We are becoming a connecting link in the wider ecosystem of sales segments and industry. With a comprehensive offer of energy sources and solutions, we offer existing and new customers support in the transition from traditional energy sources (fossil fuels) to cleaner, environmentally and healthier, renewable energy sources. We design a personalised offer for existing and new customers according to their needs.
The high level of quality of the products, which is made possible by the broad network of sales representatives, appropriate technical and advisory support, and efficient logistics, is an important competitive advantage. Our organisation allows us to be fast, efficient and, above all, flexible in our operations, which is especially evident during the pandemic, which has greatly changed the shopping habits of our business customers.
We accept the results of measuring the satisfaction of our customers as an opportunity for improvement in the direction of providing an excellent user experience.
Sales of merchandise include sales of automotive materials, foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards, coffee on the go and other merchandise. In 2021, the Petrol Group generated EUR 487.2 million in revenues from the sale of merchandise, which is 9 percent more than in 2020.
In the Slovenian market in 2021, we generated EUR 394.3 million in revenues from the sale of merchandise, which is 6 percent more than in 2020. We achieved the best results in the sale of tobacco products, lotteries, coupons and cards, groceries and hot beverages (Coffee-to-go). The offer at Petrol's points of sale is constantly changing and being supplemented, as we want to follow the needs of visitors by quickly adjusting our sales range.
merchandise in 2021, which is 21 percent more than in 2020 and 24 percent more than planned. Revenues are 14 percentage points higher due to the acquisition of Crodux Derivati Dva d.o.o. We achieved the best results in the sale of tobacco products, food products and products from the Fresh offer.
Following the publication of the revamped websites petrol.si and Moj Petrol, which we have been upgrading since 2019, we focused mainly on the development of the eShop online store in 2021. It will join Petrol's digital ecosystem in 2022. The development took place entirely with internal resources, which enabled the development to be completely tailored to the needs of the Company. The revamped store will offer a modern user experience of online shopping and round off Petrol's websites.
As part of the Tokyo 2020 Summer Olympics, which took place in the summer of 2021 due to the pandemic, a campaign was held to collect Gold Points, which were converted into funds for young promising athletes. The collection of Gold Points took place at physical points of sale and through digital channels - the petrol.si website and the “Na poti” application. For this purpose, an adder of collected points and a form for submitting Gold Points were developed. Thanks to our management and optimal execution of procurement and sales processes, as well as the management of the selling space for all sales channels, we are in a position to offer customers the products of their choice at the right time and in the right place. In conducting our business, we comply with all legal provisions.
Services include revenues from the storage and transhipment of petroleum products, rents for business premises and catering facilities, transportation, car wash services, revenues from Petrol Club cards and other services. In 2021 the Petrol Group generated EUR 44.8 million in revenue from the services related to oil and merchandise sales, which is 8 percent more than in 2020.
In the 2020/2021 season, we upgraded the system and added Axess cards, thus enabling cooperation with all major ski centres in Slovenia and abroad. Last season was again partly marked by the lockdown of the state and closure of borders; thus, skiing was only allowed within the countries and only partly in December, February and part of March. Nevertheless, including December, we recorded record sales results, namely:
The offer at Petrol's points of sale is regularly changed and supplemented, as we want to follow the needs of visitors by quickly adjusting our sales range.
Liquefied petroleum gas (LPG) is considered a top-quality and one of the cleanest fossil fuels. It is characterised by economical consumption and low costs, and it also helps mitigate negative environmental impacts. LPG can be used for vehicle propulsion, heating, industrial use, in gas bottles for home use and for electricity generation. In EU Directive 2014/94, it has been declared an energy product of the future for transport purposes.
The Petrol Group is engaged both in the LPG supply and in the construction and management of LPG distribution networks. LPG operations include: gas sales through networks and gas storage tanks, autogas sales and bottled gas sales. In 2021, autogas was sold at 231 service stations and also wholesale.
The selling prices of liquefied petroleum gas are set freely in Slovenia. The same is true for Croatia, where they follow a formula that is based on Platts Mediterranean LPG prices. In Serbia, too, LPG prices are set freely. The predominant basis is the Argus daf Brest prices, with other price sources also currently being considered in the pricing.
LPG sales are becoming increasingly important for the Petrol Group, seeing that regional infrastructure, which is a basis for establishing presence in the wider SE Europe region, is now being built.
The COVID-19 pandemic also had a major impact on LPG sales in 2021. As a result of measures related to the containment of the virus, the demand for autogas has fallen sharply, while sales through gas storage facilities for heating and industrial consumption have not changed significantly due to the pandemic. The price of LPG rose sharply in the last part of 2021, more than the price of conventional fuels, but still significantly less than the price of natural gas and electricity. The acquisition of Crodux Derivati Dva d.o.o. in 2021 did not significantly affect LPG sales, as Petrol d.d. Ljubljana acquired Crodux Plin d.o.o. in 2019 and sold natural gas and cylinders for the needs of Crodux Derivati Dva d.o.o. through Petrol d.o.o. Zagreb.
2021 was a year of major substantive and organisational changes for Energy and Solutions and above all a confrontation with the exceptional rise in energy prices in the second half of the year.
At the beginning of the year, the Petrol Supervisory Board approved the new Petrol Group Strategy for the period 2020 – 2025, which outlined the path of the energy transition to a green future. A large part of this transition is assumed by Energy and Solutions with its products and team of experts. That is why the logical next step was related to the project of the new organisation of the Company, which will allow it to face the challenges of the energy transition and the market. One of the goals is the consolidation of this area, which opens up many opportunities for integration, synergies and the introduction of new, integrated solutions not only in the energy sector but also more broadly within Petrol.
The project of the new organisation started at the beginning of June 2021 and is based on the product as the holder of content work and EBITDA, and on the matrix system of cooperation and involvement of all support services. In this way, we want to ensure the highest level of professionalism, take advantage of the concentration of knowledge by individual services and increase business transparency.
An important substantive shift is also the extension of product management to the area of three strategic key Petrol markets: Slovenia, Croatia and Serbia. We are also continuing our activities in the management of small hydropower plants in BiH. More details are presented below in a comprehensive overview of all products, business indicators and business opportunities according to the potential of individual markets.
The second half of 2021 was marked by exceptional growth in electricity and natural gas prices, where some daily prices reached 6 to 8 times the previous long-term averages. As the operations are tied to stock exchange prices, and the models are mainly based on leases and different groups of customers, we recorded a strong impact on new contracts and the consequent public response. The changes also raised questions about the current way of working, risk-taking, leasing and various forms of partnerships. In particular, the rise in energy prices has sharply increased the demand in all customer segments (end-customers, business customers and the public sector) for renewable energy solutions (especially solar, surplus storage, potentially hydrogen).
In the last quarter of 2021, in addition to the challenges with energy prices, the DOM project should be highlighted, where together with our external consultants Horvath & Partnerji, we set a comprehensive strategy for the development of sales of energy solutions to end-customers. Our ambitions are great, and so are our commitments.
The Energy Efficiency Directive (2012/27/EU) establishes a number of measures in the field of energy efficiency, including the leading role of the energy renovation of public sector buildings, which is to serve as an example for other stakeholders. In this context, the Directive requires that, as from 1 January 2014, 3 percent of the total floor area of buildings owned and occupied by public sector entities shall be renovated each year. The Directive was transposed into Slovenian law by the Energy Act (Official Gazette of the Republic of Slovenia, No. 17/14).
Energy performance contracting is also one of the key measures under the Energy Efficiency Action Plan (AN-URE 2020) and the implementation of the Operational Programme for the Implementation of the EU Cohesion Policy in the 2014 – 2020 period. That way, private capital is included to a greater extent in the financing of energy efficiency measures, multiplying public investments and resulting in higher energy savings per unit of investment incentive.
In Slovenia, Petrol carries out energy performance contracting services for buildings in the narrow and wider public sector. Energy performance contracting is defined as a contractual reduction of energy costs. It is more than just a financing method. It is a contract model that, in addition to designing and implementing (construction and technological) actions, also covers the financing, the management and supervision of operation, servicing and maintenance, the elimination of defects, as well as the encouragement of consumers towards efficient energy use. Energy performance contracting is a method of contract-based reduction of energy costs in which the operator provides a range of measures necessary for the efficient use of energy on the client's premises, with the client undertaking to pay the agreed amount for these services (reduced energy consumption and the provision of comfort), taking into account contractual penalties, if any, in case the agreed results or savings are not achieved (no service - no payment). The basis is a contract, concluded for the agreed period between the owner (or manager) of the building, i.e. the client, and the contractor, i.e. energy service company (ESCO).
In 2021, despite the aggravated market conditions, we successfully carried out two major projects:
management assumed, while the others, which were implemented in 2021, will be completed in 2022.
In 2021 we carried out energy renovation and assumed the management of 7 buildings with a total area of 20.9 thousand m2.
In 2021 we implemented energy performance contracting services at 348 buildings with a total area of 1 million m2, which is equivalent to approximately 86 office buildings of Petrol at Dunajska 50 in Ljubljana.
In addition to the EOL-3 contract, further 14 buildings in Slovenia were prepared in 2021 for the performance of projects to be implemented in 2022. Projects that are going to be implemented on the Slovenian market in 2023 and 2024 are already in the pipeline.
Digital transformation has become a reality in our country and in the world. It changes the structure of national economies, affects macroeconomic categories and radically changes the conditions for the management and operation of companies. The key challenge for any decision-maker is to have all the information available at all times to make the right decision.
The need for a new management information concept follows from this challenge, which enables a comprehensive overview of the operation of infrastructure (water supply) systems of the urban water cycle and rapid, proactive action.
Digitalised management of the water supply system, together with the establishment of performance indicators, helps to improve operational energy and environmental performance, the effectiveness of managing non-revenue water (NRW) and water losses. Improved efficiency of the water supply system ensures greater operational safety and reduces the risks of ensuring the conformity and wholesomeness of drinking water channelled from the water source to the customer's point of consumption. Improved processes of providing drinking water and their management contribute towards decreasing greenhouse gas emissions while also supporting adaptation to the effects of climate change (for example by reducing water losses, integrating low-energy solutions, water reuse).
The challenges faced by critical infrastructure - water supply system operators in the new situation indicate an increasing need for the digitalisation of the operation and management of water supply systems. The processes carried out by the DISNet-WS Group at our customers have proven to be an effective measure and are recognised by customers as a key part of their management process.
In 2021, we successfully completed the project of expanding the digitalisation of the telemetry of the water supply system managed by Komunala Novo mesto from the originally completed one in the area of central Dolenjska, also in the area of Suha Krajina.
We also successfully continued working with all our strategic partners: JP VOKAS Ljubljana, KP Velenje, JP Mariborski vodovod and JP Komunala Kranj. Despite the restrictions on movement, in 2021 together with Petrol d.o.o. Croatia we successfully launched one of the largest digitalisation projects in the region, with a focus on reducing water losses, Vodovod Slavonski Brod, which is among the 10 largest in Croatia. At the end of the year, we were shortlisted for the cohesion project for the expansion of the water supply system in Pomurje.
In November 2021, together with our partner in Croatia, Međumurske vode Čakovec, we presented the successfully completed first project to establish a digital twin water supply system in Croatia at the international conference HGViK (Hrvatska grupacija vodovoda i kanalizacije).
We provide DISNet-WS services in 7 countries in the region (Slovenia, Italy, Croatia, Bulgaria, Romania, Montenegro and Bosnia and Herzegovina). We cooperate with 15 major drinking water supply systems (Ljubljana, Maribor, Kranj, Velenje, Murska Sobota, Novo mesto, Ptuj, Čakovec, Slavonski Brod, Novara, Arad, Sofia, Podgorica…), as well as some smaller ones.
We support our partners by digitalising services in real time, improving the efficiency of operation and management on almost 12 thousand km of water supply network, with more than 1.32 million users and more than 340 thousand water metres, which together produce and distribute more than 130 million m3 drinking water per year. In doing so, we maintain water losses at the achieved level, which we consider to be a great success. Based on our references, we joined the project at the end of 2021, with which we want to reduce water losses in one of the largest water supply systems in the region by approx. 1.7 million m3.
In modern times, a clean environment is becoming increasingly important, and wastewater, which can greatly pollute the environment when it is untreated, has a major impact. In the Petrol Group, we are aware of the significance of the technology used in wastewater treatment, which has to be environmentally friendly and cost-effective. We provide wastewater treatment services both for our own needs and for the market.
Yearly operational monitoring performed by authorised institutions indicates that all machinery in the Petrol Group has been operating in compliance with legislation and achieved cleaning efficiency.
In 2021 the Petrol Group operated four concessions for the public utility service of municipal wastewater treatment. The capacity of the treatment plant in Murska Sobota is 42,000 population equivalents (PE), in Sežana 6,000 PE, in Ig 5,000 PE and in Mežica 4,200 PE. Petrol also managed industrial waste treatment plants at Vevče Paper Mill and Paloma. As an important member of the company Aquasystems d.o.o., Petrol d.d., Ljubljana is also involved in the treatment of municipal wastewater in the municipality of Maribor, the capacity of which is 190,000 PE.
In 2021, after obtaining an environmental permit, we started the activities of making the Ihan Mud Dryer operational again. The dryer has an annual drying capacity of 8,000 tons of wet sludge. With its relaunch, we will be less dependent on waste collectors and other factors on the waste market and increase sludge treatment in Slovenia, thus reducing exports.
In 2021, a total of 3.6 million m3 of municipal wastewater was treated at four municipal wastewater treatment plants, and 1.6 million m3 of industrial wastewater was treated at two industrial wastewater treatment plants. At Petrol's points of sale, we operated 52 small treatment plants and pumping stations.
Representing a large market growing at 4 percent a year, district heating plays a vital role in achieving the transition to a low-carbon company. Many governments have committed themselves to using more sustainable energy sources to combat climate change. Heat production is one of the major energy consumers; therefore, improving efficiency in this area is one of the key goals.
In order to achieve the new ambitious EU energy and climate targets for 2030 laid down in the EU Clean Energy Package (Winter Package), which is aligned with the Paris Agreement and the EU’s long-term strategy of achieving carbon neutrality, the main pieces of the EU energy legislation had to be amended. With a 32 percent share of renewable energy and a 32.5 percent improvement in energy efficiency, EU aims to reduce greenhouse gas emissions by 43 percent. The European Green Deal of December 2019 and the EU Recovery Plan from the COVID-19 pandemic (priority green technology investments as part of the Economic Recovery Plan) classified district heating and cooling, and the development of energy production from renewable energy sources (RES) and RES-based heating/cooling among the most important areas.
Technology plays a crucial role in the management of district heating networks, in particular the Internet of Things (IoT), advanced analytical tools and machine learning models. Our services help customers optimise investments in the development and refurbishment of district energy systems and reduce operating costs. The key “operations” in the management and control of the operation of district energy systems and water supply systems are the forecasting of quantities and the optimisation of production capacities.
DISNet-DH services contribute to boosting energy and environmental performance in 9 countries in the region (Slovenia, Austria, Italy, Croatia, Bosnia and Herzegovina, Serbia, Bulgaria, Romania and Russia). We are partners with 27 major district energy systems (Ljubljana, Velenje, Maribor, Vienna, Bolzano, Zagreb, Osijek, Sisak, Tuzla, Belgrade, Novi Sad, Sofia, Plovdiv, Arad). We help our customers optimise the production, distribution and consumption of a total of more than 17 GW of thermal power in real-time.
In 2021, we completed the project of upgrading the thermo-hydraulic model for the analysis of the district heating system of the Serbian Kraljevo Heating Plant. The S&U project (maintenance and upgrade) for the Novi Sad Heating Plant has been completed. In the second quarter of 2021, we started the project of replacing the controller with our new TP04 controllers, improving ELTEC SCADA2 with the new Muvicon Petrol SCADA and updating Termis on the DH system of the public utility company Belgrade Power Plant in all seven heating areas. We expect a decision on the selection of a contractor for the new project by the public utility company Belgrade Power Plant and the start of public procurement for the support and modernisation of Termis by the public utility company Novi Sad Heating Plant.
In Slovenia and Croatia, we focus on providing support to our users.
The entire region in which Petrol is present is becoming increasingly aware of the importance of energy efficiency and light pollution of public lighting systems. Slovenia is one of the countries that have begun solving this problem through state-level regulation. In 2007, the Government of the Republic of Slovenia adopted the Decree on Limit Values due to Light Pollution. Binding for lighting operators, the Decree prescribes the method of lighting and the maximum consumption of electricity for public lighting systems per resident.
Similar guidelines are also followed by other countries in the region. In Croatia, the Act on the Protection From Light Pollution is in force, while Serbia has in place: the Energy Act, the Efficient Energy Consumption Act and Rules on Energy Performance Contracting laying down measures for improving energy efficiency in the public sector.
the active management of systems, we generate further savings in terms of electricity and the operational costs of public lighting systems. Modern energy-efficient public lighting systems represent the foundation for the digitalisation of lighting infrastructure, enabling synergies and the further development of services in the context of smart local communities.
In the past three years, we doubled the number of public lighting systems with upgraded energy performance through our own investments. Today we manage public lighting systems in fifteen Slovenian municipalities and cities, seven Croatian and six Serbian cities. We also provide energy-efficient lighting in public buildings, sports facilities and industry, where we have replaced over 250,000 energy-inefficient lamps.
In 2021, despite the COVID-19 epidemic, we managed to renovate public lighting systems with a total of over 16,000 lamps through successfully implemented projects of energy-efficient renovation of public lighting in Šentilj, Croatian towns Kraljevica, Sveti Ivan Zelina and Zabok and Serbian towns Šid and Zaječar and strengthen Petrol's position in the region of SE Europe.
In the region of SE Europe, the Petrol Group manages a total of 25 concessions or public lighting systems. Through the energy renovation of public lighting systems alone, we save over 23 thousand MWh of electricity per year and reduce CO2 emissions by more than 15 thousand tons annually.
Within the product group of the energy and environmental management of buildings, we continued to replace inefficient lighting in public buildings and in dedicated sports facilities.
Tango is the Petrol Group's own IoT platform, which solves the challenges of modern business and enables digital and green transformation. It focuses on building smart and pragmatic work processes, making smart decisions and creating new added value.
Among others, Tango offers its users:
Using Tango allows subscribers to:
In 2021, we used Tango in many Petrol products and areas, with which we are present in the markets of Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. In the energy sector, Tango is used in:
In addition to the above, Tango is used in energy management and energy bookkeeping for real estate owned by Petrol and in the dynamic management of fuel prices.
In the area of industry, we have developed various business models that are fully tailored to the needs of customers and their technological processes. The most interesting projects in Slovenia's industry in 2021 were: the use of green energy products (with an emphasis on green electricity and biogas), e-mobility, efficient lighting, photovoltaics, waste heat, industrial treatment plants, circular economy, energy management, compressed air, heating and cooling, electricity and heat storage, virtual power plant, etc.
For all these projects, Petrol is a reliable and professional partner that helps the industry achieve the goals of the NEPN. For management purposes, an integrated management centre has been established in Ravne na Koroškem, where we ensure the reliable and efficient functioning of our customers’ processes throughout the year.
In 2021, we implemented the following energy solutions in the industry:
of cooling water (the Ravne industrial zone).
In 2021, in the rounded economic area of Ravne, we installed small photovoltaic devices mFE Kisikarana (power 88.00 kWp) and MFE Energy building (power 174.80 kWp) on the roofs of our production facilities for the production of electricity using solar energy. The power plants will generate more than 6 million kilowatt-hours of electricity from renewable energy sources in twenty years. Petrol will use all of the generated energy for its own needs and reduce carbon dioxide emissions by 126 tons of CO2 per year.
In 2021, we included a 6-megawatt electric boiler in the existing district heating system. The main purpose of the electric boiler is to provide services to the transmission system operator (ELES) in connection with frequency control (mFRR). This is the first project of its kind in Slovenia and is part of a broader European project called X-FLEX.
In 2021 we continued searching for potential locations at industrial facilities for electricity production from RES and the installation of solar power plants (both in our facilities and at our customers). The first energy audit projects have been implemented, enabling the identification of opportunities for improving energy efficiency, reducing the carbon footprint and cutting energy costs in the long run.
District heat supply consists of heating systems where heat is produced in one or more boiler rooms and distributed to end-customers via a hot-water network. Heat distribution systems are now considered to be one of the most reliable and, in terms of the environment and costs, acceptable systems for supplying heat to end-customers. Buildings supplied via a district heating system do not require their own heating source, with the system itself providing the following supply advantages: greater energy efficiency, better environmental protection, easy operation and maintenance, reliability, comfort and convenience, lower investment costs and lower operating costs and investment maintenance costs.
Heat distributors must ensure that at least 50 percent of heat is produced from renewable energy sources (biomass, geothermal energy, etc.) or that a minimum of 75 percent is produced from the high-efficiency cogeneration of heat and power, or 50 percent as a combination of heat from the previous two sources.
At the end of 2021, the Petrol Group operated 29 district heating systems, of which 16 were organised as an optional public utility service (a concession) or concession agreements for their management were signed with municipalities. Ten district heating systems were organised as proprietary systems and three as market distribution systems.
In 2021 the Petrol Group sold 165.4 thousand MWh of heat, which was 21 percent more than in 2020 and 12 percent more than planned.
The Petrol Group distributes natural gas in Slovenia, Croatia and Serbia.
In Slovenia, Petrol d.d., Ljubljana either owned or managed 31 concessions in 2021 through which it operated more than 10,000 active connections and supplied over 17,000 end-users.
In 2021, Petrol d.d., Ljubljana, continued to build the distribution network in Idrija, Črešnjevci, Škocjan and Šentjernej and built additional connections on other concessions.
In Serbia, Petrol distributes natural gas through Beogas d.o.o. in the Belgrade area in three municipalities (Čukarica, Palilula, Voždovac) and in the municipalities of Pečinci and Bačka Topola. In 2021, more than 19 km of network and more than 800 new connections were newly built.
In Croatia, the Petrol Group distributes natural gas through Zagorski metalac d.o.o. It distributes natural gas in the areas of Zagreb County and Krapina-Zagorje County. The company has a broad gas distribution network (of approximately 830 km), through which it supplies gas to almost 18 thousand end-customers. The company is among the top 10 distributors in Croatia.
The Petrol Group distributed 1.4 TWh of natural gas in 2021, an increase of 13 percent from 2020 and 15 percent less than planned.
Renewable electricity production is an important pillar of the Petrol Group's development into a modern energy company. It helps us secure our long-term sources for the purpose of producing electricity, while keeping us prepared for new trends in the area of transport and industry. Petrol sees many opportunities for the development of renewable electricity production in SE Europe. By developing our own production capacity, we pursue the strategic orientation of becoming a visible regional provider of comprehensive energy and environmental solutions, and a partner in the development of the circular economy for transition to the low-carbon society.
The Petrol Group has been involved in electricity production since 2003. We produce hydroelectric power in Bosnia and Herzegovina and Serbia. In Bosnia and Herzegovina, we produce electricity in five small hydropower plants. In 2021, they produced a total of 29 GWh of electricity. In Serbia, in 2021, we completed the investment in a small 1 MW hydroelectric power plant Grajiči in cooperation with a business partner.
In Croatia, the Glunča wind power plant produced 46.5 GWh of electricity. Despite the pandemic, we successfully completed the investment in the construction of the Ljubač wind farm (30 MW). In addition, we are in the final phase of the development of three solar power plant projects with a total capacity of 20 MW on the Croatian market, the construction of which is planned for 2022 and the start of generation for the beginning of 2023.
The Petrol Group is accelerating the development and implementation of projects in the field of renewable energy sources, in which wind and solar power plants will play a very important role. The Petrol Group generated 130.7 thousand MWh of electricity in 2021, up by 51 percent compared to 2020.
Mobility is a right and freedom. Our mission is to identify opportunities for the green transition, listen to needs and work with individuals, businesses, agencies and governments to build partnerships to meet climate challenges, find solutions to overcome barriers and enable a mobility transformation system that is affordable for our customers, fair, environmentally friendly and profitable for investors.
In 2021, we successfully completed an investment in the construction of the Ljubač (30 MW) wind power plant in Croatia, which produced 30.5 GWh of electricity in 2021, and an investment in the construction of the Grajiči small hydropower plant (1 MW) in the Republic of Serbia.
The Petrol Group is developing new smart solutions that will be an important pillar of our sustainable and innovative operations in the markets of SE Europe in the long term. We focus on two key segments:
The development of charging infrastructure is based on key partnerships with the largest energy companies, municipalities and transport companies in Central and South-Eastern Europe in the framework of three projects co-financed by the European Commission. In 2021, we continued to manage the Urban-E and Multi-E projects, and completed the implementation of the Next-E project. The common denominator of all three projects that combine and influence both segments of mobility is the implementation of global guidelines for the transition to alternative fuels, decarbonisation and transport innovation. To this end, we are setting up a charging infrastructure network for alternative energy sources, primarily for electric vehicles, and developing smart mobility services.
As part of the Urban-E project, in 2021 we further expanded the charging infrastructure with 16 new conventional and 1 fast-charging station in Ljubljana and 11 conventional and 1 fast-charging station in Zagreb. Through the Multi-E project, we will further expand our market presence with new types of charging points in Slovenia and Croatia and enter the market of northern Italy. In 2021, we launched 15 conventional charging stations as part of this project.
As partners in the Next-E project, we boosted Petrol’s market share in charging infrastructure on motorways along the TENT-T corridor with 6 new fast and 4 ultra-fast-charging stations in Slovenia and with 7 new fast and 2 ultra-fast-charging stations in Croatia. In addition, a pilot installation of an electricity storage tank was carried out in Slovenia in connection with 1 fast and 1 ultra-fast-charging station, as well as the connection of the storage tank in the tertiary reserve system.
The electricity storage tank at Petrol's Kozina point of sale has a capacity of 210 kWh and its power is 300 kW.
With the support of the mentioned projects, we also completed the renovation of the back-end system for the management of electric chargers and the OneCharge application, thus enabling a simpler and better user experience for our users.
regions where the Petrol Group operates and allow us to expand to other new markets. In December 2021, in partnership with Supernova Qlandia and as part of the NEXT-E project, we opened a state-of-the-art charging centre for electric vehicles with e-chargers capable of charging up to 350 kW/h. It is the first centre of multi-standard charging infrastructure for electric vehicles in the Dolenjska region at the location of the Supernova Qlandia shopping centre in Novo Mesto.
Photo source: Petrol archive
In addition to the charging infrastructure within EU projects in 2021, we additionally set up or assumed the management of 35 conventional charging stations and 3 fast-charging stations in Slovenia. In 2021, we also expanded the charging infrastructure to Serbia, where we set up the first fast-charging station. In addition to our own investments, we increased the charging infrastructure by selling charging stations to private and business users both in Slovenia and on the Croatian market.
At the end of 2021, Petrol operated 296 charging stations for electric vehicles. The number of charges using our charging infrastructure increased by more than 69 percent in 2021 compared to 2020, and the amount of transmitted electricity by more than 62 percent, which, despite the measures and the consequent reduction in transit traffic due to the pandemic, is proof that the development of e-mobility is in full swing and that even demanding unexpected challenges cannot stop growth.
Petrol has included in the strategy for the development of sustainable mobility the services provided by the subsidiary Atet d.o.o. In this way, the Company expanded its range of services on the Slovenian market and added fleet management and maintenance to long-term vehicle rental, offering short-term vehicle rental, which is closely related to fleet optimisation.
As part of the fleet management service, companies, municipalities and other organisations are provided with continuous mobility owing to services such as long- and short-term leases and door-to-door services. At the same time, we reduce fleet costs with an optimised fleet vehicle structure and work towards fleet electrification, thereby reducing the carbon footprint.
In 2020, we carried out a pilot project on Petrol’s own fleet and we entered the market at the start of 2021. After a successful pilot project, Atet d.o.o. assumed the management of all vehicles in the Petrol fleet and thus established a single contact point to support users of company vehicles and began to ensure the uninterrupted mobility of employees. Pool vehicles have been optimised with a combination of permanent vehicles and short-term leases, so that permanent vehicles are fully utilised, while for additional needs for vehicles, Atet d.o.o. provides short-term leases. As a result, the number of vehicles has decreased, while employee mobility is constantly guaranteed.
In the light of the mobility trends, where, in addition to fleet electrification, various types of e-vehicle rental rather than purchase are involved, we continued to develop the service called Vehicle as a Service. It is an upgrade of a typical operating lease of electric vehicles for up to 5 years. At the end of 2021, we had 74 electric vehicles on long-term operating leases. This is just one of the products that complement our comprehensive mobility solutions. We also offer municipalities and companies the optimisation and management of their existing fleets.
In addition to financing, the Vehicle as a Service package covers all the operating costs incurred during the lease of a vehicle (insurance, regular and emergency repairs and maintenance, additional sets of summer and winter tyres, tyre replacement and storage, 24/7 customer assistance, vehicle replacement assistance, etc.).
2021 was extremely exciting in the natural gas market and one of the most unusual so far, as we witnessed a remarkable rise in the price of natural gas. Natural gas prices began to rise in early 2021, following the lowest levels in 2020. Natural gas suppliers have started adjusting their natural gas price lists for household and small business customers. Petrol adjusted the price list as of 1 December 2021.
In 2021, the Petrol Group supplied 26.5 TWh of natural gas, which is 43 percent more than in 2020 and 40 percent more than planned.
Electricity has become almost an indispensable part of our everyday lives and the increasingly dominant energy source with which we power our world. Electrification is happening in many areas, such as heating, where heat pumps are becoming increasingly popular, transport, which is increasingly powered by electric cars, bicycles and scooters, and business, where digitalisation requires more electricity.
These trends coincide with the EU's commitment to transition to a carbon-free society, to reducing CO2 emissions and to producing electricity from renewable energy sources. The EU aims to reduce greenhouse gas emissions by 55 percent by 2030 and aims to become carbon neutral by 2050. The Petrol Group also places great emphasis on the transition to a carbon-free society for a green and clean future.
becoming active customers with their own production of electricity, which they use for their home or business, and transmit surplus energy to the grid and are thus active users of the system. In 2021, Petrol purchased electricity from 228 small producers, which is 11 more than in 2020. In total, we put 126 GWh of energy from renewable sources into the network. Petrol is also expanding its activity of setting up solar power plants, as we are aware that this is a key step towards the decarbonisation of Slovenia and energy self-sufficiency.
In 2021, Petrol completed the acquisition of E 3, d.o.o., one of the largest electricity suppliers in Slovenia.
In 2021, the Petrol Group supplied 3.6 TWh of electricity, up by 110 percent year-on-year and 6 percent compared to the plan.
Source: Energy Agency, Petrol
Petrol is aware of the challenges and opportunities that the transition to a carbon-free society brings, so it is rapidly investing in solutions that will help make the transition faster and more efficient:
In our opinion, the key to market success is the development of new business models that enable the green transformation of energy and are resistant to changing conditions, such as the COVID-19 pandemic. We are developing new business models as part of development projects co-financed by the Republic of Slovenia and the European Union.
received the Gold Award of the Zasavje Chamber of Commerce and the Silver Innovation Award of the Chamber of Commerce and Industry of Slovenia.
Smart home of the future for a comfortable and healthy living and working environment. The primary goals of the project are to present the development and demonstration of a new concept of living in a home and to demonstrate products for the smart buildings of the future. The project combines individual newly developed and technologically advanced, but complementary solutions of renowned Slovenian companies into a new conceptually comprehensive solution for building and living in a sustainable, smart and connectable, user-friendly, advanced and healthy living environment. It is an integrative project of solutions for all four focus areas of SRIP Smart Buildings and Home with a Wood Chain.
As part of the CyberSEAS (Cyber Securing Energy dAta Services) project, Petrol is working with 25 partners from 10 countries to increase the resilience of energy supply chains and their protection against disruption. The key objectives of the project for Petrol are: to prevent cyber risks associated with attacks affecting electricity supply systems and to increase the security of the common energy data space. To achieve its goals, CyberSEAS offers an open and scalable ecosystem with 30 flexible security solutions. They provide effective support for key activities such as risk assessment, interaction with terminal equipment, safe development and deployment of new systems, ongoing security monitoring, certification, etc. The solutions are validated by experimental campaigns consisting of more than 100 attack scenarios tested in three laboratories. Petrol is a member of the Slovenian pilot project, which consists of partners, namely ELES, SI-CERT, ICS and INFORMATIKA.
The project aims to ensure the security of sensitive industrial plants and areas in Europe by improving their resilience (so that they can effectively defend against threats, physical and cyber threats) and to ensure the optimisation of investments to improve resilience and protection. The project has been approved under the Horizon 2020 European Research and Innovation Programme. We started the project in June 2019 and successfully completed it in September 2021. The consortium included 27 project partners from 11 countries (Italy, Greece, Portugal, Slovenia, Ireland, Israel, Germany, Poland, the Netherlands, Cyprus and France). Petrol participated in the preparation of user requirements and risk scenarios, in the analysis of cyber and physical risks and vulnerabilities, and in the testing and validation of the results of pilot activities of participating partners. It has also contributed to tasks related to the dissemination of project results. Besides Petrol, the Port of Koper, the Institute for Corporate Security Studies (ICS) and the Jožef Stefan Institute (JSI) also participated in the project. The benefits of the project for Petrol are primarily in improving the identification, anticipation and assessment of risks such as deliberate attacks, human threats and natural disasters. Petrol identified vulnerabilities in critical infrastructure (SEVESO plants) and used the acquired knowledge in procedures and systems to ensure corporate security and safety. We will use innovative solutions to increase infrastructure security, exchange knowledge between project partners, and at the same time increase security awareness and improve risk assessment tools.
In 2021, net investments in property, plant and equipment, intangible assets and long-term investments stood at net EUR 233.2 million, of which EUR 192.2 million for the acquisitions of companies Crodux Derivati Dva d.o.o. and E 3, d.o.o. In 2020, we allocated EUR 85.4 million for investments.
The main share of investments in energy sales is the acquisition of Crodux Derivati Dva d.o.o. in Croatia, with which we acquired 93 new points of sale. In Slovenia, a larger share of realised investments was allocated to investments in investment maintenance and obtaining documentation for the implementation of investments in the coming years. In Serbia, we completed the new construction of the Čačak point of sale and completed the McDonald's restaurant at the Ada Belgrade point of sale. Throughout the year, we carried out investment maintenance at points of sale in all markets.
At the beginning of the year, we completed the acquisition of a 100 percent interest in the company E 3, d.o.o., and made investments in the installation of smaller gas depots with customers and the installation of LPG gas stations for companies throughout the year.
In 2021, we implemented two major projects, namely the EUO Technical School Centre Maribor and the Energy Renovation Ljubljana 3 - EOL 3. On the project of TSC Maribor, two buildings were rehabilitated: the student dormitory and the main building. On the EOL 3 project, we implemented projects at eleven facilities. Of these, six facilities were rehabilitated completely and five technologically.
The renovation of public lighting in Šentilj, the renovation of the boiler room of the Brežice Health Centre, the construction of the heating source of the intergenerational home Bled (MGC) and PL Radlje ob Dravi, which is in the final phase, were carried out. We also started preparing a project for solar power plants in Croatia. The implementation of sales projects for the market took place, such as the sale and implementation of heating stations, CNS.
In the markets of SE Europe, we carried out the energy renovation of public lighting systems: PL Zaječar and PL Šid in Serbia, PL Zabok, PL Sveti Ivan Zelina and PL Kraljevica 2 in Croatia.
Renewable electricity production is undoubtedly one of the key areas for sustainable future development at the same time as the common societal goal of the transition to a low-carbon society. With this in mind, we are pursuing the production of electricity from renewable energy sources – wind, water, and solar. In 2021, despite the COVID-19 pandemic, we successfully completed the construction of the Ljubač (30 MW) wind power plant in Croatia, which produced 30.5 GWh of electricity in 2021. In addition, we are in the final phase of the development of three solar power plant projects with a total capacity of 20 MW on the Croatian market, the construction of which is expected in 2022. In Serbia, we completed the investment in the construction of a small hydroelectric power plant Grajiči (1 MW). The Petrol Group is accelerating the development and implementation of projects in the field of renewable energy sources, in which wind and solar power plants will play a very important role.
In mobility, investments in the expansion of charging infrastructure and investments in motor vehicles for the provision of mobility services took place in all markets.
Throughout 2021, we invested in the modernisation of information and other infrastructure and in ensuring security.
2021 was a successful year for investors on the Ljubljana Stock Exchange. After 2020, when the COVID-19 pandemic affected the developments on the Ljubljana Stock Exchange, share prices at the end of 2021 were on average higher than at the end of 2020. This was also reflected in the SBI TOP index, which gained 39.8 percent relative to the end of 2020, reaching 1,258.8 points at the end of 2021.
Petrol's shares are traded on the prime market of the Ljubljana Stock Exchange (LJSE) and have been listed there since 5 May 1997. Last year, Petrol's share was also one of the most traded shares on the Ljubljana Stock Exchange, and at the end of 2021, its price was 56.3 percent higher than at the end of 2020. The shares of Petrol d.d., Ljubljana, accounted for 20.92 percent of the index as of 20 December 2021. Despite the epidemic, Petrol d.d., Ljubljana, paid a dividend in the amount of EUR 22.0 gross per share for 2020.
After 2020, when the COVID-19 pandemic affected the developments on the Ljubljana Stock Exchange, share prices at the end of 2021 were on average higher than at the end of 2020. This was also reflected in the SBI TOP index, which gained 39.8 percent relative to the end of 2020, reaching 1,258.8 points at the end of 2021.
Sources of data in chapter “Share and ownership structure”: Ljubljanska borza d.d., website, share register of Petrol d.d. Ljubljana, statements of the Petrol Group for 2021 Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
The average price of Petrol’s shares, which stood at EUR 416.68 in 2021, was up 27.6 percent year-on-year. The closing shareprice ranged between EUR 325.00 and EUR 516.00 in 2021.
The volume of trading in Petrol's shares on the Ljubljana Stock Exchange amounted to EUR 56.3 million in 2021, including batch trading (EUR 29.6 million), and was up 9.4 percent from 2020 due to higher share prices, while in 2021 a smaller volume of Petrol shares (147,478 shares) was traded compared to 2020 (156,608 shares).
The trading in Petrol’s shares accounted for 14.8 percent of the Ljubljana Stock Exchange total trading volume, which stood at EUR 380.0 million, and also 14.8 percent of the stock market's share trading volume.
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Total shares outstanding | 2,086,301 | 2,086,301 | ||||
| Highest closing price for the year | 516 | 394 | ||||
| Lowest closing price for the year | 325 | 266 | ||||
| Average closing price for the year | 417 | 327 | ||||
| Closing price as at last trading day of the year | 508 | 325 | ||||
| Closing price increase/decrease (closing price as at last trading day of the year/closing price as at last trading day of the previous year) | 56.31% | -13.33% |
The shares of Petrol d.d., Ljubljana were ranked third on the Ljubljana Stock Exchange by trading volume. On average, the monthly volume of transactions involving Petrol’s shares totalled EUR 4.7 million.
The market capitalisation of Petrol d.d., Ljubljana as at the last trading day of 2021 totalled EUR 1,059.8 million, which accounted for 11.1 percent of the stock market’s total capitalisation. Petrol d.d., Ljubljana was ranked third in terms of market capitalisation as at the last trading day of 2021.
The Petrol Group's earnings per share (EPS) for the year stood at EUR 60.6 and its cash earnings per share (CEPS) at EUR 99.0. The return per share calculated by comparing the closing share price as at the end of 2021 and the closing share price as at the end of 2020 was positive and stood at 56.3 percent. Combined with the dividend yield of 6.8 percent, the total return per share stood at 63.1 percent in 2021.
The ratio between the shares’ market price and book value as at the end of 2021 – the latter amounting to EUR 435.6 in the case of the Petrol Group – was 1.17 (P/BV), which was higher than at the end of 2020. The ratio between the shares’ market price as at the end of 2021 and the Petrol Group's earnings per share stood at 8.39 (P/E).
The structure of Petrol d.d., Ljubljana, share capital did not change significantly in 2021 compared to the end of the previous year. The largest single shareholder is Clearstream Banking SA– client account with 287,012 shares. It is followed by the Slovenian Sovereign Holding with 264,516 shares, the Republic of Slovenia with 225,699 shares and Kapitalska družba d.d. with 172,639 shares. Other large single shareholders include OTP banka d.d. – client account, Vizija Holding d.o.o., Vizija holding ena d.o.o., Perspektiva FT d.o.o., Citibank N.A. – client account, UniCredit Bank Hungary ZRT. – client account and NKBM d.d.
| No. of Shares | in % | No. of Shares | in % | |
|---|---|---|---|---|
| Slovenski državni holding, d.d. | 264,516 | 12.7% | 264,516 | 12.7% |
| Kapitalska družba d.d. together with own funds | 182,543 | 8.7% | 183,181 | 8.8% |
| Republic of Slovenia | 225,699 | 10.8% | 225,699 | 10.8% |
| Other institutional investors - domestic | 218,818 | 10.5% | 227,660 | 10.9% |
| Banks - domestic | 28,415 | 1.4% | 27,920 | 1.3% |
| Insurers - domestic | 25,479 | 1.2% | 25,779 | 1.2% |
| Foreign legal entities (banks and other inst. inv.) | 568,942 | 27.3% | 565,270 | 27.1% |
| Private individuals (domestic and foreign) |
| Own shares | 30,723 | 1.5% |
|---|---|---|
| Others | 81,520 | 3.9% |
| Total | 2,086,301 | 100.0% |
At the end of 2021, 572,314 shares or 27.4 percent of all shares were held by foreign legal or natural persons. Compared to the end of 2020, the number of foreign shareholders increased by 0.2 percentage points, while the total number of shareholders decreased from 22,220 as at the end of 2020 to 21,730.
| Name and Surname | Position | Shares owned | Equity share |
|---|---|---|---|
| Marko Šavli | Member of the Supervisory Board | 88 | 0.0042% |
| Alen Mihelčič | Member of the Supervisory Board | 0 | 0.0000% |
| Robert Ravnikar | Member of the Supervisory Board | 0 | 0.0000% |
| Janez Žlak | President of the Supervisory Board | 0 | 0.0000% |
| Borut Vrviščar | Deputy President of the Supervisory Board | 0 | 0.0000% |
| Aleksander Zupančič | Member of the Supervisory Board | 0 | 0.0000% |
| Alenka Urnaut Ropoša | Member of the Supervisory Board | 0 | 0.0000% |
| Mladen Kaliterna | Member of the Supervisory Board | 0 | 0.0000% |
| Mário Selecký | Member of the Supervisory Board | 0 | 0.0000% |
| Name and Surname | Position | Shares owned | Equity share |
|---|---|---|---|
| Nada Drobne Popović | President of the Management Board | 4 | 0.0002% |
| Matija Bitenc | Member of the Management Board | 0 | 0.0000% |
| Jože Bajuk | Member of the Management Board | 0 | 0.0000% |
| Jože Smolič | Member of the Management Board | 0 | 0.0000% |
| Zoran Gračner | Member of the Management Board and Worker Director | 0 | 0.0000% |
Petrol d.d., Ljubljana did not repurchase its own shares in 2021. As at the last day of 2021, the number of own shares stood at 30,723, representing 1.5 percent of the share capital. This includes 24,703 own shares that were acquired by Petrol d.d., Ljubljana in the period from 1997 to 1999. Their total cost equalled EUR 2.6 million as at 31 December 2021 and was EUR 9.9 million lower than their market value on that date. The remaining 6,020 shares are the shares that are considered as own shares that were held by the subsidiary Geoplin d.o.o. Ljubljana at the time it was incorporated in the Petrol Group.
Own shares of Petrol d.d., Ljubljana, in total 36,142 (without the shares of Geoplin d.o.o. Ljubljana), were purchased between 1997 and 1999. The Company may acquire these own shares only for the purposes laid down in Article 247 of the Companies Act (ZGD-1) and as remuneration to the Management Board and the Supervisory Board. Own shares are used in accordance with the Company’s Articles of Association.
one of the cornerstones of Petrol’s development strategy. Petrol’s management advocates a stable long-term dividend payout. This fits best with the Company’s development needs as it delivers more predictable returns and the long-term stability of Petrol’s share price. In accordance with a resolution of the 33rd General Meeting of 22 April 2021, Petrol paid out in 2021 a gross dividend for 2020 of EUR 22.00 per share.
| Period | Gross dividend per share |
|---|---|
| 2015 | EUR 12.60 |
| 2016 | EUR 14.00 |
| 2017 | EUR 16.00 |
| 2018 | EUR 18.00 |
| 2019 | EUR 22.00 |
| 2020 | EUR 22.00 |
The accumulated profit of Petrol d.d., Ljubljana, as determined in accordance with the Companies Act, stood at EUR 61.85 million in 2021.
Regular participation in investors’ conferences and access to information Petrol d.d., Ljubljana has set up a programme of regular cooperation with domestic and foreign investors, which consists of public announcements, individual meetings and presentations, and public presentations. The Company also regularly attends investors’ conferences organised each year by stock exchanges, brokerage companies and banks. There were several individual meetings with investors and analysts in 2021. In March and August, we participated in the online conference of the Ljubljana Stock Exchange, and in May and December, at the “Slovenian and Croatian Investors’ Day” conferences, organised by the Ljubljana Stock Exchange in cooperation with the Zagreb Stock Exchange. In December, we also participated in the Winter Wonderland EME web conference organised by WOOD & Co. from Prague.
All information relevant to shareholders, including the financial calendar, is published on the Company’s website. The contact person responsible for investor relations is Ms Barbara Jama Živalič, who can be reached at [email protected].
Internal Audit has operated as an independent and autonomous support function within the organisational structure of the controlling company since 2002. Organisationally, it has a direct reporting line to the president of the Management Board, while functionally it reports to the Audit Committee and the Company's Supervisory Board. Internal Audit operates throughout the Petrol Group and adheres to the International Standards for the Professional Practice of Internal Auditing. The purpose of Internal Audit is to give objective assurance to the Management Board and the Audit Committee and provide advice at all levels about property protection, compliance with the law and internal regulations, as well as the improvement of the quality and efficiency of risk management, thus improving the Petrol Group's operations. By doing so, it helps to achieve strategic and business goals based on best practices.
Internal Audit operates in accordance with the Internal Audit Charter and the principles of independence, professional competence, objectivity and ethical principles as fundamental principles of the auditing profession. Internal Audit's annual work programmes and annual reports are approved by the Company's Management Board, they are presented to the Audit Committee for information, and the Company's Supervisory Board approves the plans and reports. Internal Audit provides regular reports on its work to the Management Board and reports at least quarterly to the Supervisory Board’s Audit Committee. In 2021 the Audit Committee received quarterly reports on all audits, significant findings and recommendations for improving the system of internal controls and risk management within the Petrol Group.
In accordance with the International Standards for the Professional Practice of Internal Auditing, an external assessment of the quality of Internal Audit should be conducted at least once every five years by an independent assessor or assessment team from outside the organisation. At Petrol, the external assessment of the quality of internal auditing was last performed in 2019, resulting in a report, which confirmed conformity with the International Standards for the Professional Practice of Internal Auditing. The external assessment was performed by an independent international audit firm, which also prepared a benchmarking analysis and determined that according to the eight elements of excellence, the Petrol Group's internal auditing significantly exceeds the average of 453 global companies and the average of 57 companies with revenues above USD 2 billion.
In 2021 Internal Audit continued to carry out certain procedures to improve the quality of work:
network was carried out by a dedicated team of qualified experts from the Corporate Security and Operations Control, which, in order to prevent and detect fraud, focus primarily on the monitoring of service station, logistics and storage facility operations from the perspective of goods and finance. In 2021, the internal audit performed 11 regular and extraordinary audit reviews of assurance (three reviews were in their final phase as at 31 December 2021). The objective of the internal audits was to verify the integrity of financial and business decision-making reporting, compliance with the law and internal regulations, the implementation of the Petrol Group's strategy and process effectiveness. In terms of their content, the audits were focused mainly on verifying the efficiency of processes that were either new or were not subjected to an audit during the past four years. For the processes that were audited, Internal Audit gave assurance that the audited units had in place a suitable internal control system that was operational on a regular basis. As there was still room for improvement, recommendations were provided, the implementation of which was checked on a regular basis. In 2021, in addition to the audits, Internal Audit regularly monitored the implementation of recommendations from previous and current years.
2021 was also marked by the COVID-19 epidemic and related measures to limit the consequences of the epidemic. As a result, the Internal Audit was faced with the limited availability of auditees and adjusted its activities accordingly. Due to measures taken to prevent COVID-19 infections, the activities of Internal Audit were adapted in accordance with the Company's guidelines in 2021 as well. This mainly involved working from home, introducing the electronic management of internal audit documents and having remote meetings with auditees.
Today, information and technology are key development and support functions in the Company. It is integrated into all parts of the business process and, as such, is a prerequisite for the successful operation of the organisation. The Petrol Group pays great attention to information technology. Digital transformation, continuous improvement, teamwork and collaboration with users are key to responding quickly and efficiently to everyday changes and challenges.
Below, main projects and activities in the field of information and technology in 2021 are presented.
We continued with the planned IT transformation and in May successfully introduced a new ERP in three subsidiaries in Serbia. In summer, we continued intensively with the preparation of the expansion of the ERP system to other countries and in October successfully introduced it in two more countries (Bosnia and Herzegovina, Montenegro) and two subsidiaries. This completed the first phase of expanding the use of central ERP in the Petrol Group companies and unified application support.
In the second half of the year, we started preparing the project of integrating the company E 3, d.o.o. into Petrol’s IT-support, which is expected to be realised in 2022. To support the purchasing process, a software solution was introduced – a special module with integration into the ERP-solution. We have also taken some important steps in using the CRM-platform in the direction of greater support for sales processes (B2C and B2B) and the greater digitalisation of processes. We have also successfully introduced support for the electronic certification and signing of documents. In support of energy trading, we introduced two companies (Geoplin d.o.o., E 3, d.o.o.) to the trading platform. In parallel with the above activities, we made some major functional upgrades in various areas of IT-support (e.g. support for intraday retail prices).
At the end of 2021, we completed the development of a new online shop (eShop B2C), developed on a modern technology platform, which brings many improvements to both business users in online store management processes and customers. The solution realises and upgrades the vision of Petrol's comprehensive digital ecosystem. It provides a unified user experience without switching between sites and provides the best combination of physical and online shopping. The solution came to life for internal users at the end of 2021, and at the beginning of 2022, we will enable its use to all customers.
In the autumn of 2021, we started the project of merging Crodux Derivati Dva d.o.o. to Petrol d.o.o, Zagreb. One of the important parts of the project and successful operation in the future is the migration of the information system of Crodux Derivati Dva d.o.o. into the Petrol information system. In 2021, we prepared a detailed analysis and plan for the execution of migration. We have also started upgrading Petrol's information system, which will provide quality support to the merged company's operations. The migration of 93 service stations of Crodux Derivati Dva d.o.o. into the Petrol information system will start in March 2022, and the migration of the company in its entirety is expected to be completed by the end of 2022.
In 2021, we introduced a new platform for the “codeless” automation of testing, which will ensure the quality and correct operation of e-commerce, web, mobile and desktop applications and IoT solutions. No special programming knowledge will be required for users.
We expanded the use of the Jira tool and through this solution supported many additional processes, including the process of managing development needs.
We upgraded the retail solutions that support the operation of Petrol service stations in all markets by supporting the tax certification of invoices in Montenegro, and we also supported the possibility of paying with Routex cards in Croatia, Bosnia and Herzegovina and Montenegro. We developed a closely integrated solution for the sale of e-vignettes for Slovenian motorways. In December, we enabled the purchase of e-vignettes at all Petrol service stations in Slovenia and Croatia.
clear and digitalised communication of prices to customers. Therefore, in 2021, we have developed support for integration with digital price lists to communicate fuel prices to customers at points of sale. We also participated in the selection of a platform for the digitalisation of the display of prices of goods in stores (electronic price lists). The integration of the platform into Petrol's information system will be carried out in 2022.
In the field of IoT platform development, in 2021 we and our team actively participated in the processes of the management, control and maintenance of the existing platform and began to analyse the possibilities for its technological modernisation in the future. This will ensure internal and external users (customers) even more reliable and stable operation and the more friendly use of the platform, which is gaining an increasingly important role within Petrol's strategic business goals.
We provide capacities and the high availability of the system and network infrastructure, with which we effectively support business processes. We are increasing the use of cloud services, so we have increased the availability of Internet connections from one to two providers. We set up a uniform call centre for the whole group.
We have modernised and upgraded many existing and added a number of new integrations, thus improving the communication and speed of internal processes and processes with our partners.
The described activities were carried out in all the markets of the Petrol Group.
Universal digitalisation and global connectivity increase the risks of information security, thus ensuring adequate information security is becoming an increasing challenge. With its wide range of information services, the Petrol Group plays an important role in providing key services for the preservation of essential social and economic activities, including energy and transport.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
Technological innovations such as artificial intelligence (AI), 5G, blockchain technology, smart cities and connected vehicles (IoT), and big data bring many benefits, as well as new threats to cyberspace. In 2021, we continued activities at the Petrol Group level to strengthen resistance to cyber-attacks, such as built-in security as a mandatory part of business processes, regularly raising the awareness of users through social engineering methods, mobile security management and security checks of exposed Petrol information system components. In ensuring an appropriate level of information security, we follow all regulatory requirements and good security practices (EU Cyber Security Strategy, PCI DSS, GDPR, zInfV), thus setting an example to other organisations in the region.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
We have been wondering, measuring and promoting to what extent the Petrol Group is fit for a green future since 2012, when we issued our first independent Sustainability report, even when the legislation did not require us to do so and we visionarily set out on a demanding sustainable path. Today, we are pursuing the EU Green Deal and commitments to achieve climate neutrality by 2050. We are pursuing an interim goal for the EU to reduce emissions by at least 55 percent by 2030, the regulation on green investments and taxonomy and high national energy and climate targets.
With its strategy until 2025, the Petrol Group has committed itself to a decisive energy transition, with which it is co-creating a green future and making an important contribution to protecting the environment we live in. It will invest EUR 244 million in the energy transition by 2025, reduce its carbon footprint by 40 percent, and have 164 MW of installed capacity of renewable energy sources.
Decarbonisation is carried out in four main areas:
cycle of the fuel per unit of energy. Such alternative fuels include liquefied petroleum gas and natural gas for vehicle propulsion.
Closed circular loops are an important approach to decarbonising the economy. Petrol is developing and managing water and material cycle management models. We successfully acquire and implement projects in the field of the digitalisation of water supply system management. We are digitalising real-time management for our customers, optimising the water supply network and thus reducing water losses.
Petrol manages four concessions for the treatment of municipal wastewater: in Murska Sobota, Mežica, Sežana and Ig. As an important member of the company Aquasystems d.o.o., Petrol d.d., Ljubljana is also involved in the treatment of municipal wastewater in the Municipality of Maribor. We also manage and treat wastewater at three industrial plants. We recycle and reuse wastewater in our own automatic car washes.
As a retailer of consumer products, we are aware of the importance of the most sustainable packaging and the responsible handling of packaging as possible throughout its lifecycle. We removed excess packaging and optimised packaging from composite materials in the supply of fresh food at Fresh outlets.
Integrated waste management is one of the important areas of sustainable development of the Petrol Group, as it not only affects the protection of the environment but also the economics of operations. We place great emphasis on waste prevention and efficient separation of waste at the source. The range of our activities and points of sale affects the diversity of waste we handle. At all Petrol locations, waste is separated at source, and the biggest challenge is motorway rest areas, used as a stopping point for passengers in transit.
People are at the very core of our operations, which is evident also during the COVID-19 epidemic. Health and safety at work come first, but we also offer customers custom, safe, quality and healthy services. We highlight the development of state-of-the-art digital solutions; the number of users of the “Na poti” mobile application, offering the possibility of contactless payment, is growing rapidly. In addition to paying for fuel and car washing without entering the sales area, we also added the purchase of a range of food products from the shelves of Petrol points of sale to the application. We also introduced the delivery of Fresh products, basic foodstuffs and other products to the home or workplace.
An important part of our digital story is e-learning. Due to the epidemic, the number of training hours decreased; however, the number of training participants has grown, as we replaced all-day live training courses with several different short training sessions in the form of e-courses followed by a final test. E-learning also positively affects the environment. We drove less due to remote learning and saved paper due to materials in electronic format.
Each point of sale received its own tablet, which allows entering into applications and archiving documentation, using all tools for remote work, participating in groups and facilitating communication. The introduction of the new solution at points of sale was completed in the last quarter of 2020 and the beginning of 2021.
As one of the largest companies in Slovenia, we understand our responsibility to society as a lasting commitment to work together with the environment in which we live and operate. Among the many important social responsibility projects, the humanitarian campaign Give energy for life is worth mentioning.
We conducted an electronic survey of all key stakeholder groups. Results were presented in a so-called materiality matrix in the last Sustainability report. Compared to the materiality matrix two years ago, we note that topics of sustainable development, in particular the contribution to low-carbon mobility and a low-carbon society, have become even more important in the eyes of our key stakeholders. This gives the Petrol Group an additional incentive to actively pursue our sustainability goals, including in terms of decarbonisation. In the light of the epidemic, we also understand the greater emphasis of key stakeholders on digitalisation and smart concepts, as with them, the Petrol Group facilitates purchases and, at the same time, provides customers with a higher level of security in terms of health risks through digital solutions. Compared to the previous measurement, strategic stakeholders felt that maximising returns and value for owners was less important than some other priority objectives.
At Petrol, we look to the future with inspiration, ambition and determination. We see it green. This is our promise to the next generation, which puts sustainable development among the top priorities.
There are many challenges ahead. The bar of goals at the level of the European Union, Slovenia and the economy is rising ambitiously. The new EU “Fit for 55” package includes a number of legislative proposals and policy initiatives that will have a direct impact on the Petrol Group's operations. It is a revision of the Renewable Energy Directive, the revision of the Energy Efficiency Directive, the revision of the Alternative Fuels Infrastructure Directive, the amendment of the Regulation on CO2 emission standards for cars and combined vehicles, the revision of the Energy Taxation Directive, and the establishment of a separate emissions trading scheme for road transport and buildings.
The new rules of the game put sustainable development at the heart of operations, and achieving sustainable goals is becoming a condition for competitiveness in the market. This is reflected in the great interest of banks and other stakeholders in our sustainable results. All employees are part of Petrol's commitment to remain competitive in the new conditions of transition to a greener future with a winning sustainable readiness.
The purpose of the Sustainability report is to present more detailed sustainable strategic orientations and challenges, goals, programmes, projects and results. Our activities are complex and diversified; therefore, we are constantly formulating a methodology for sustainable development, measurement, evaluation and reporting.
At the Petrol Group, we build a culture of mutual trust and respect, innovation and teamwork, while also striving to provide a friendly, stimulating and dynamic work environment, as well as opportunities for employee development.
The year 2021 continued in the light of the epidemic and restrictive measures in the wider region, which continued to dictate regular work processes and set new emphasis on our activities related to employee care.
At the end of 2021, there were 6,237 people employed within the Petrol Group and at third-party managed service stations, of whom 47 percent are abroad. The share of employees abroad increased by 12 percent compared to 2020. Namely, Petrol d.d., Ljubljana became the sole owner of the company Crodux Derivati Dva d.o.o., which at the end of 2021 had 1,166 employees.
Compared to the end of 2020, the number of employees in the Petrol Group increased by 1,080 or 21 percent.
At the end of 2021, the average age of employees was 40 years. 58 percent of employees were male and 42 percent female. The gender balance differs across companies depending on the activity of each company.
Because our core business is retail, the highest proportion of Petrol Group employees have level V education (secondary education).
Recruiting the right experts to the right posts is the key to achieving our business goals. Attracting top external experts, a diverse pool of in-house staff and scholarships constitute important components of the business growth plan.
During the selection and recruitment process, all candidates are given equal treatment irrespective of gender, age or other circumstances. Acquiring the right staff is becoming increasingly challenging, that is why we look for candidates through different channels. We engage external partners and look for new employees on social networks. We have set up our own recruitment database to find new staff quickly and efficiently. In recruitment and selection, we use different psychological tests and in-depth interviews.
Petrol's system of human resources development, continuous employee education and training also provide for a diverse selection of internal human resources. The high level of qualification enables our staff to quickly adapt to changes and also take advantage of internal vacancies to find challenges in new areas of work within the Petrol Group.
The Petrol Group's remuneration systems are aimed at motivating employees to perform even better and increasing satisfaction. Salaries consist of fixed and variable parts. Different groups of employees have different remuneration systems that are used as a basis for calculating the variable part of the salary. At the Petrol Group, most employees either have access to the point-of-sale remuneration system or to the remuneration system for corporate functions.
Point-of-sale employees receive the variable part of their salary in the form of a monthly performance bonus based on the productivity of a point of sale. They receive an additional bonus for maintaining or improving the quality of operations. Employees are also remunerated by taking into account the results of reward and sales promotion campaigns, especially regarding the sale of new products and services. We select and reward the best salespersons in each country, and we also reward employees at the best-performing points of sale.
In 2021, we upgraded the reward system for points of sale with the “Point of Sale Champions” system, in the framework of which the top 10 percent of Petrol Group points of sale in Slovenia were identified and additionally awarded.
The job performance of employees in corporate functions is monitored through quarterly interviews and is remunerated according to whether their goals have been achieved or surpassed.
Employees receive jubilee benefits in appreciation of their loyalty to the Company. At the end of the year, employees also receive a performance bonus, which is linked to the Company's performance.
At Petrol, the voluntary supplementary pension insurance of employees has been part of the salary policy since 2002. The scheme covers the employees of the parent company, subsidiaries and third-party managed service stations in Slovenia.
In 2021, we continued to meet the changes brought to labour law by the COVID-19 epidemic. Employees were provided with appropriate compensation for absence due to force majeure, quarantine and furlough, as well as benefits and compensation for short-term sick leave. We also kept the employees informed about their possibilities and rights under the law.
Knowledge ensures a successful integration of individuals into the business processes and creates long-term competitive advantages for an organisation. That is why we consider investments in employee training and development an investment for the future. Staff education and development are intertwined with numerous business and support activities, resulting in trained and committed staff that is motivated to achieve current and future goals. The Company's values are a common bond connecting the employees. They are strengthened and communicated through all internal communication tools and integrated into the general competencies model. To promote them even more among employees, we use different systemic measures.
There was a major shift in the way we do training, socialise and work in 2021. Where permitted by the work process, telework was introduced, requiring a series of adjustments, the rapid acquisition of new computer skills and new approaches to teamwork. It was only possible to conduct live training for a few months, and we organised distance training with the help of digital tools throughout most of the year. We also prepared several in-house electronic training materials, and our knowledge was tested with short quizzes.
Operations at points of sale were also digitalised, as the tablets purchased for each point of sale enabled interactive work via the online platform Teams by employees in the sales network for training purposes. Even more importantly, we digitalised the document system for managing operations at service stations.
In 2021, the Petrol Group conducted 88 thousand pedagogical hours of training and recorded 34 thousand participations. On average, each employee attended at least 6 different courses. We achieved 19 percent more participations than in 2020, and we also increased the number of hours by 19 percent compared to the previous year. We have still not reached the level of training from the period before the epidemic, but the trend is positive both in participation and the time we spend acquiring new knowledge.
We replaced all-day live training courses with several different short training sessions in the form of e-courses followed by a final test. The effectiveness of the training courses is checked by conducting regular surveys of participants after the end of the training, and the e-classroom offers analytics for the results of final knowledge quizzes. Recordings of training content and internal round tables are available online, and the number of views is increasing daily.
In 2021, we conducted training for SAP modules, deepened our knowledge of Excel, we provided language courses to our staff and organised all legally required training programmes for them. Unfortunately, we had to give up some programmes based on practical group exercises. For professional content, we looked for alternative options for self-learning, e.g. the Udemy learning platform. In 2021, the fourth Project Management Academy took place, which brought together 24 existing and future project managers working with 17 external and Petrol's in-house lecturers and experts. In the Petrol Group, particular attention is also given to the training of external staff and customers. In 2021, 811 external participants took part in our training courses.
Training in the Petrol Group is systematically arranged for many target groups in the sales and technical departments. Certain programmes are mandatory for all employees and are largely carried out in the form of distance self-learning (for example, on occupational safety, information security, and the security of card operations, food handling). With the number of products and services available to our customers increasing. With the introduction of the new generation of QMax fuels, we organised online presentations for managers, and prepared an e-course for employees, which was sent to all employees in retail in Slovenia and in subsidiaries in the markets of SE Europe. We empowered the point of sale managers with knowledge of business economics; we will continue the programme in 2022.
As part of Open Space, we organised 50 different online events, thematically related to occupational health, knowledge, skills, sustainability and current projects. The events were organised as live online presentations, and the recordings are available to all employees in the archive in the cloud.
Learning Centres in Zalog, Rače and Nova Gorica organised induction seminars for newly recruited sales personnel in 2021, but the number of participants was greatly restricted, as required by the epidemiological services. In a simulated shop environment, future and current employees are trained in sales skills. The sale personnel is trained by the network of internal coaches in Slovenia who all have the appropriate skills and knowledge to conduct training and workshops. The network of internal coaches in SEE markets comprises 12 coaches. Every year, we renew our internal certificates and we are committed to maintaining the quality of the coaching skills. The learning centre makes it possible to train new employees, to refresh or gain knowledge, to practice sales skills and to acquaint all sales personnel with major novelties. This way, we consolidate knowledge, strengthen the standard of sales skills, reduce the managers’ burden related to the induction of new employees, reduce stress upon onboarding, and decrease the risk of mistakes at work. We aim to transfer good practices in Slovenia to foreign markets, thus allowing for the systematic development of staff in all markets where we operate.
Micro-learning is a new way of learning that we have introduced in the retail network. We published A Minute for Sales videos on a weekly basis, in which an internal coach presented methods and techniques for improving sales skills and presented examples of appropriate customer relations.
We repeated the implementation of the Sales Academy for 48 new sales representatives and salespersons in the Petrol Group. Among them, we also identified potentials for internal coaches that will be included in additional training programmes. Coaching culture is already a recognised way of developing sales teams. The network of internal coaches ensures that the knowledge and skills acquired in classroom training are transferred into daily practice. Each sales channel has assigned coaches for whom we have prepared e-training that took place in an internal online classroom. Coaches use a coaching platform for their work, on which they monitor the implementation of coaching plans.
Petrol d.d., Ljubljana has a full Family Friendly Enterprise certificate. Within the programme linked to this certificate, a series of activities are carried out to maintain a balance between private and working life.
In 2021, we organised a Petrol Family Day at the Ljubljana Zoo with a rich programme, designed together with our partners, the Automobile and Motorcycle Association of Slovenia, the Traffic Safety Agency and the management of the Zoo. More than 600 Petrol volunteers and their family members responded to the invitation to Sunday's gathering at the Zoo.
During the fall holidays, we organised an Open-House event in the Petrol office building for the children of our employees, however, due to the COVID-19 situation we were unfortunately only able to accept 30 children.
Measures to facilitate the reconciliation of work and family responsibilities include a gift package for newborns, work at home, an adjusted working day when introducing a child to kindergarten, development plans, intergenerational cooperation through mentoring and many others. The traditional puppet show with gifts from Santa Claus took place remotely. We filled the households with laughter with a stand-up comedy show, we were visited by Petrol's Santa Claus, and we watched all this through our screens due to restrictive measures.
With corporate volunteering under the name We Give Back to Society, Employees in Slovenia have been supporting the socially responsible orientation of the Company and at the same time strengthening the interconnectedness of all those participating in individual campaigns for the tenth year in a row. Participants learn and deepen social skills in voluntary activities, and volunteer action coordinators also learn project management skills. Through corporate volunteering, Company loyalty grows, as well as the Company's reputation among recipients.
In 2021, as many as 70 Petrol volunteers landscaped in ten work campaigns across Slovenia, helped with household chores, painted walls, erected fences, prepared firewood and offered their help to the animal shelter. We dedicated more than 300 hours of work to these campaigns. We raised money for our colleagues in Petrinje whose homes were destroyed by an earthquake, swimming aids for holidays at sea for children from socially disadvantaged families, and in December we became Petrol's Santa Clauses and prepared 165 packages for children and delivered them to the Slovenian Association of Friends of Youth Ljubljana Moste - Polje. During the pre-Christmas period, Petrol employees handed out letters of good wishes to the elderly in a home in Bokalci.
Petrol ensures the health and well-being, physical and mental balance within the Healthy at Petrol programme. The basis for the implementation of this programme is the strategy for the 2020–2022 period, which is based on a six-year analysis of the sick leave of employees and occupational medicine reports received by the Company after medical examinations. In addition, a survey was conducted among employees, where we were able to give our suggestions and wishes related to psychophysical problems and needs at work.
Based on both analyses and research, three areas were identified as priorities for the planning of measures to promote employee health – physical health, healthy eating and mental health – while all three pillars are connected by topics of a seasonal nature (e.g.: the prevention of respiratory infections and other seasonal viral diseases, preparation for various sports activities).
At the end of 2021, we conducted an additional in-depth analysis of sick leave for the past two years. The data does not show deviations from the previous period or the set strategy (the exception is the COVID-19 viral conditions). Therefore, in 2022, we will continue with the planned activities of the Healthy at Petrol programme. As in the past two years, we will pay special attention to preventing the spread of COVID-19 infections and ensuring our maximum safety.
In 2021, the majority of the Healthy at Petrol programme took place via the online platforms Teams and Zoom. The most important activities in 2021 were:
As part of the Connected in Awareness programme, we conducted two major regional events that took place live throughout Slovenia:
The Petrol Tennis League was also held in summer, and in December we enabled employees and their family members to skate on three major professional ice rinks.
disinfection of hands and work surfaces, and regularly supplied disinfectants and cleaning supplies at all locations in Slovenia. We also transferred good practices to our companies abroad.
We regularly organised COVID-19 testing co-funded by the state. From January to June, 164 testing dates were organised at various locations across Slovenia. 4,605 tests were performed.
We measure the organisational climate survey every two years (most recently in 2020), and we are implementing action measures that we have adopted on the basis of measurements in 2020. The survey has been helping us to systematically identify our own strengths and areas for improvement since 2001.
All employees in ten Petrol Group companies are included in the survey. In 2020, 3,246 employees, or 70 percent, submitted their scores and comments. As in the previous years, we are pleased to say good results were achieved. The organisational climate remains stable. The comparison of the results with other companies in Slovenia shows that we are much more satisfied than the average employee of other Slovenian companies. We improved internal cooperation and employee relations; our employees are proud to be a part of Petrol and are committed to quality. Internal knowledge transfer is an important value of the Company. Since 2010 we have been monitoring the commitment of our employees, since 2017, their agility and, since 2018, the perception of equality. The share of actively non-committed employees has been declining for several years, and in 2020 it fell by an additional 3 percent. This has considerably improved the so-called macro-indicator of the organisation's internal stability.
Development and communication of a corporate culture of sustainability include the communication of work culture, organisational changes and the transformation of activities, and from the point of view of the desired employer, include the development and communication of workplace wellness programmes and programmes that build good communication and atmosphere in work environments (mentoring, Open space, We give back to society, You accept the challenge?).
In 2021, we carried out a year-round internal IDrive Q Max campaign, through which we strengthened our employees’ knowledge and confidence in the quality of fuels. During the year, we also constantly communicated the new Strategy of the Petrol Group 2021–2025. In support of the implementation of the strategy, we have formed a network of internal ambassadors of change, who receive information through workshops to facilitate understanding of the strategy and learn about the Company's strategic initiatives. This way, management obtains valuable feedback from employees, strengthens dialogue and gains a broader understanding of work areas. As part of internal communication in the area of employer branding, we presented the stories of our employees again in 2021 to consolidate the Company's organisational culture, showcase jobs, networking stories and the stories behind the different faces and accomplishments. We also shared tips on Q Max fuels and stories of creativity through staff profiles. Creativity was also boosted through internal contests, stories of courage and bringing people together. In internal journals, we presented managerial, organisational, process and business change in more detail. In 2021, we again intensively communicated all the changes brought about by the epidemic, from measures to prevent the spread of the virus to teleworking.
In the Petrol Group, we realise that occupational safety and health, in addition to their main purpose, also ensure the satisfaction of employees. That is why we strive constantly and systematically to reduce the level of risk arising from working processes by introducing appropriate organisational and security measures. Although the working environment is changing owing to the development and introduction of new technologies and procedures, Petrol successfully keeps up with the changes. We look for solutions that are healthier and safer for our employees.
All companies of the Petrol Group have adopted safety declarations with risk assessment. The latest findings in occupational safety and health are integrated into new processes and projects. In addition, we monitor the risks related to the occurrence of accidents and injuries. The risks are assessed periodically and, through safety measures, maintained at an acceptable level. A priority in the advancement of occupational safety and health is the reduction of risks at highly exposed workplaces and seeking links with other areas of safety, in particular fire safety, environmental protection and chemical safety.
The programme of preventive medical check-ups includes all staff in the Petrol Group. Particular attention is devoted to co-workers with reduced working capacity. Considerable attention is paid also to the theoretical and practical training of employees in occupational safety and health, workplace ergonomics, fire safety, environmental protection, the safe handling of chemicals, the safe transport of hazardous goods and first aid.
In the new strategy of the Petrol Group, we place great emphasis on continuously improving the user experience. We place the customer/user at the centre of our operation both in the development of new products and services and in the interaction with the customer at an individual point of contact.
excellent user experience. Establishing and caring for customer relationships is our priority, and with new digital channels, an expanded range of energy sources and a personalised offer, we will get even closer to our customers and thus provide them with an excellent user experience.
By providing an excellent experience, we develop customer relationships, increase loyalty, promote embassy, differentiate ourselves from the competition and, last but not least, improve business results.
At the heart of the user experience is the customer and understanding their needs, expectations, desires, motivators and behaviours. To achieve a great user experience, it is important to manage that user experience at all points of contact. New market conditions have greatly encouraged the digitalisation of users, so it is equally important to ensure an excellent user experience at digital points of contact. With the increase and complexity of contact points, managing the user experience is becoming increasingly demanding. In order to meet the expectations of our customers, it is extremely important to know their shopping routes, preferences, as well as the importance and intertwining of points of contact.
For years, Petrol has been applying various methods to monitor all phases of the purchasing process at individual points of contact with the customer. We regularly add new channels to the measurements. At regular intervals, we check the expectations and preferences of customers, both our existing ones and those of our competitors. We use the information obtained from customers to improve our offer and user experience on a regular basis.
One of the key indicators of monitoring the user experience is measuring user satisfaction. At Petrol, we monitor customer satisfaction at all important points of contact, as well as in comparison with the competition.
The most important elements that affect customer satisfaction and consumer experience, in addition to the price and quality of products and services, which is a key element in all categories/areas, are the following:
All the stated factors, if they meet and exceed customer expectations, are components of an excellent user experience, which is one of our strategic foundations and sources of future growth.
Important elements that have the greatest impact on satisfaction and user experience
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
An analysis of the results of the Petrol Satisfaction Survey for 2021 shows that Petrol's customers in Slovenia rated higher satisfaction at most points of contact. The highest satisfaction and at the same time the greatest growth in satisfaction is at the Contact Centre, which is one of the key contact points for customer care. This is followed by high satisfaction with digital contact points (applications, online store). Progress has also been made in the field of e-charging stations, where we achieved a 20 percent increase in satisfaction in the years from 2019 to 2021.
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
In 2021, for the first time, we measured the satisfaction of Petrol's customers and the customers of competitors in key areas on the Croatian market. The users of Petrol's mobile applications expressed the greatest satisfaction, while Petrol resolves complaints best of all the selected competitors.
In Serbia, too, in 2021, the satisfaction of Petrol service station customers and key competitors was measured for the first time. Petrol has the largest share of the most satisfied users among all the observed competitors, as well as the lowest share of detractors - i.e. those who would not recommend our experience and would speak ill of it in any way.
With the annual Brand Power study, which we conduct in all five markets (Slovenia, Croatia, Serbia, Bosnia and Herzegovina and Montenegro), we follow the image of Petrol and Petrol's brands in the general public, while observing how our competitors are positioned among customers. The selected data shows us the success of the progress in the activities we set ourselves last year, all with the aim of realising Petrol's vision: "To become an integrated partner in the energy transition with an excellent user experience."
Throughout the years of measurement, Petrol has been the strongest brand in terms of service stations, and it will maintain its leading position in terms of brand image in 2021. However, an excellent user experience proves to be our greatest advantage over the competition.
Source: Brand Strength Survey 2021, general public, Slovenia; n = 1,022
In the SEE markets, where Petrol is not the leading player, our strongest dimension remains the user experience, and by far the highest awareness among all the assessed attributes is achieved by our friendly employees.
The image of the brand in the service stations category is most significantly affected by high-quality fuel. It is with this awareness that we have further improved the quality of Q Max fuel in 2021 with the new innovative and even improved Dual Action Technology, developed by Afton Chemical from the United Kingdom. We supported the launch of the improved Q Max fuel formula in all markets where Petrol’s sales network is present with excellent communication, which was perceived by customers and expressed in the mentioned research.
All this is reflected in the growth of the power of the Q Max brand in all markets.
Source: Brand Strength Survey 2021, general public, Slovenia; n = 1,022
prefer to buy it at our service stations. Among all Petrol Coffee-to-go customers, as many as 96 percent are satisfied. In addition to its wide availability, it is largely attributed to its unique taste and quick and easy preparation.
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
The key focus is to consolidate the leading position of the energy company and the leading partner in the energy transition by developing and strengthening its presence in the supply and sale of natural gas and electricity, sales of liquefied petroleum gas and energy efficiency projects. Therefore, it is important to monitor customer responses and customer satisfaction in this activity as well. In 2021, we improved processes in Slovenia and exceeded customer expectations, especially in the transition process, as users praised the satisfaction with the simplicity and responsiveness in the process of changing their energy provider.
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
The highest growth in satisfaction in the Slovenian market was achieved in electric mobility, which is an important pillar of Petrol's sustainable and innovative operations. Users place great emphasis on the reliability of e-charging stations. Due to this, we focus our activities on expanding the network and controlling the operation of e-charging stations, which is also reflected in higher customer satisfaction in this area.
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
We have been measuring transaction satisfaction for four years using the internationally established NPS (Net Promoter Score) index. It enables us to monitor and respond to customer feedback on a daily basis on all key contact points of Petrol – the entire retail network, TipStop Vianor service workshops, the call centre and customer support, complaints, the Petrol Energy Centre and online shop, where customers give their score after purchase and after picking up a parcel at the service station. In 2021, we received more than 28,000 ratings and increased the response compared to 2020 by 13 percent. In 2022, we are expanding the measurement of transaction NPS to other Petrol contact points, as well as to other markets where we are present.
Customers come into contact with Petrol mostly at service stations, followed by the Contact Centre and customer support, eShop, complaints and TipStop Vianor service workshops. Petrol thus enables customers to immediately provide feedback on satisfaction with products, services or processes on a particular channel, and at the same time, it can respond quickly and eliminate any problems.
Our total TNPS-index (total estimate of all the measured contact points), calculated on the basis of received ratings, shows a positive trend, which means that customer satisfaction at contact points has been improving over the years.
2021 was special because of the epidemiological situation and related measures, such as checking the RVT condition and other measures that both businesses and consumers had to follow. By taking into account customer feedback, we have constantly upgraded and improved activities that have improved our customers’ shopping journey and experience at service stations, the Contact Centre and digital points. At the same time, user expectations were rising. At the end of the year, rising energy prices and the introduction of the RVT condition also reflected in declining customer satisfaction. Thus, growth in TNPS stopped in 2021 and amounts to 76, which is still above the level of 2019, but it decreased slightly compared to 2020.
Source: Transaction Satisfaction (TNPS), 2021, n = 28,320.
Regardless of the circumstances, more than 80 percent of the customers are our promoters, who express high satisfaction with the friendliness and helpfulness of employees at service stations.
Source: Transaction Satisfaction (TNPS), 2021, n = 28,320.
We listen to the users and get to know their wishes and needs in detail. Most improvements and development of new products and services happen in response to different or changing customer needs. Customers participate in many improvements by contributing to the co-creation of the offer in various ways. We invite them into focus groups, talk in-depth with them to really understand their wants and needs, explore pain and test ideas, prototypes at all stages of development of a process, service or product.
This kind of agile mindset and approaches to innovation and re-innovation have resulted in the modification and upgrade of more than 10 business models in 2021. Improvements have been made in the field of comprehensive complaint resolution, the purchase of Petrol solar power plants, we tasted Coffee-to-go and confirmed the scrumptiousness of our Fresh burger…
Members of the Petrol Research Panel are always invited to test and innovate, as they are our invaluable source of inspiration for important improvements.
various limits with the Petrol Club Payment Card, touched on energy solutions and talked to e-charging users about potential new locations. They helped to upgrade the “Na poti” application, shared their views on Sunday shopping and also chose a more likeable image for our points of sale.
Source: Petrol, 2021
Employee satisfaction is an important condition for providing an excellent user experience, as it is reflected in the quality of internal services and efficient teamwork. Measuring satisfaction with internal cooperation is an important contribution to business excellence, as the quality of the internal services provided consequently affects the satisfaction of external customers and business partners as well.
Just as we regularly monitor the satisfaction of our customers, in 2021, we introduced the annual (previously biennial) Satisfaction with Internal Cooperation survey with support services.
Around 1,800 Petrol Group employees were included in the survey, who assessed organisational units in reliability, competence, communication, relationships and commitment, and overall satisfaction.
Each support unit receives an insight into their operation in the internal market and information on where it can be improved from all units and companies in the group that supports them. We also ensured the respondents’ satisfaction and greatly shortened the assessment time by optimising the questionnaire. As a result, the response increased by 21 percent compared to the last measurement, which gave us a greater and more in-depth insight into the cooperation with support functions.
Continuing restrictions on the movement of people and epidemiological conditions, the net growth of new members of the Petrol Club in Slovenia remained on a par with the previous year. Gold Points remain the main currency of the Petrol Club and were accumulated on Petrol Cards by purchases or rewarded actions by 16 percent more than in 2020. The number of redeemed Gold Points also increased by 7 percent compared to last year. In 2021, 4 percent more members were active per month than in 2020.
The “Na poti” app has become user-friendly; in addition to simply paying for fuel without entering the service station, it also enables a friendly overview and use of the Petrol Club's benefits. With the Petrol Club members, the use of the “Na poti” application increased by as much as 56 percent.
In 2021, we issued five editions of the Petrol Club catalogue, offering an average of 200 products at affordable membership prices. Purchases with Gold Points represent on average 68 percent of sales revenue from products in the catalogue. In addition to the catalogue offer for Gold Points, members are interested in special discounts at points of sale, in the form of Gold Packages and products for EUR 0 or EUR 1, as well as offers on special occasions, such as so-called November Black Friday as part of the eShop or New Year's offer at service stations. We additionally reward the loyalty of our members with quarterly benefits, which are personalised and deposited on the Petrol Club card.
Prize games, which exclusively Petrol Club members can participate in, have become a constant. In 2021, we rewarded our loyal customers with prizes such as refunds to their cars, air conditioning or sports equipment, and last but not least, two lucky winners each with one Ford car and one lucky winner with a prefabricated house.
The summer of 2021 was marked by the Tokyo Olympics and the first Gold Points campaign to donate. With the help of Petrol Club members, we raised the planned number of Gold Points for the Sponsorship in sports project in less than three weeks. Petrol donated money in return. Because of their efficiency, we will continue all the listed campaigns next year as well.
Petrol’s Contact Centre: 080 22 66
Petrol’s customer support and Contact Centre are key points of contact between customers and Petrol in Slovenia. Here, the support and sales functions for different products and services are closely intertwined. We offer our customers all the key information about Petrol's offer in one place, be it fuel, energy, Petrol Cards, loyalty programme, Petrol eShop online store, mobility services, energy or environmental solutions. We are aware that customer feedback and opinions are of utmost importance, so we measure satisfaction with our services on all key communication channels. In 2021, we paid special attention to the changed situation, so we introduced additional digital communication channels: live chat with a consultant, a chat robot and a video call.
Petrol is committed to the highest standards of business ethics, we know the expectations of our customers and we strive to fully meet them. High-quality products and services are one of our principal business commitments, which is why we handle each case of customer dissatisfaction with great care. We are aware that the feedback we receive about our products and services directly from our customers is very important and that, based on them, we can improve and thus build a long-term relationship with customers. Claims and complaints are reviewed systematically and measures are introduced to improve the quality of our processes and user experience in practice. To ensure an excellent customer user experience, in 2021 we improved the unified system of capturing and managing customer claims and complaints in Slovenia in terms of process, information and organisation, and we plan to continue the project in 2022.
Caring for the environment is integrated into all aspects of the Petrol Group's operation, as demonstrated by our ISO 14001:2015 certificate for environmental management system. When developing business processes, along with new products and services, we always comply with all environmental regulations, introduce products and services that are friendlier on the environment and pay attention to efficient energy consumption. We use our compliance assurance system to monitor and implement regulations and get involved in their preparation. We identify the environmental aspects of our activities by taking into account the usual and extraordinary operating requirements, as well as exceptional circumstances, if such exist. In order to maintain the environmental management system and effectively manage environmental aspects, we are updating documentation in the field of environmental protection. The Petrol Group implements its processes in such a way that they affect the environment as little as possible.
In the Petrol Group, caring for the quality of air chiefly involves efforts to reduce the emissions of volatile hydrocarbons on an ongoing basis. It also stands for measures to reduce the emissions of ozone-depleting substances and fluorinated greenhouse gases and measures to reduce greenhouse gas emissions from heat and electricity production and distribution. The emissions of volatile hydrocarbons occur due to evaporation during the decanting and storage of fuel. At Petrol, the process of reducing volatile hydrocarbon emissions is part of all three key elements of the petroleum products distribution chain: storage, transport and sales. At service stations and fuel storage facilities, we have installed systems for the closed loading of storage tanks. In addition, we make sure to install state-of-the-art cooling, air conditioning and heating systems and devices. We ensure the efficiency of emission control by continuously upgrading equipment and installing new systems, in accordance with the guidelines for the best available techniques and regular inspections by authorised contractors. We have obtained environmental permits for all emissions to air that are regulated by law and we monitor them as legally required.
Petrol carries out operational monitoring and professional assessment of noise pollution in individual areas to be able to reduce the nuisance through noise and to implement certain measures for it to go down. These activities are carried out in accordance with the Decree on Limit Values for Environment Noise Indicators and by creating a 3D model that takes into account the characteristics of a site: its location, land development, landform and infrastructural characteristics, etc.
Petrol Group’s operations currently involve three categories of wastewater: rainwater, sewage water and industrial wastewater. Rainwater that comes into contact with functional circulation areas is collected separately and purified in oil and water separators. Sewage water is handled in three ways. In built-up areas, it is channelled into a local sewage network. Where connection to a sewage network is not available, small treatment plants are installed. Some sites, however, still use cesspits, which are maintained on a regular basis. At these sites, cesspits are being discontinued according to schedule in accordance with legal requirements. For small treatment plants to function efficiently, the choice of wastewater purification technology is vital, as is the regular professional monitoring of their operation and their management. Industrial wastewater is treated in state-of-the-art industrial treatment plants.
The results of analyses of the content and value of emissions from wastewater disposal show that the wastewater quality at Petrol's sites is at an appropriate level. Adequate wastewater status is ensured by the planned and systematic installation of appropriate modern treatment plants and technically appropriate and prescribed oil traps, and in parallel, we monitor the consumption of cleaning agents, draw attention to the care in the maintenance of cleaning devices and the need for awareness, control and supervision by employees. We have obtained environmental permits for all emissions to water that are regulated by law and we monitor them as legally required.
In order to ensure the better utilisation of substances and energy and the generation of less waste, thus reducing the negative impacts on soil, water, air and biodiversity, the Petrol Group operates in accordance with the principles of the circular economy. In waste management, we take into account legal and other requirements and environmental policy, which is part of our environmental management system. When establishing new and revising old processes, we take into account the hierarchy of waste management; we also pay special attention to waste that can be hazardous to the environment.
Integrated waste management is one of the important areas of the sustainable development of our Company, as it not only affects the protection of the environment but also the economics of operations. We place great emphasis on waste prevention and efficient separation of waste at the source. The diversity of our activities and points of sale affects the diversity of waste that we handle and manage.
When developing own-brand products, the aspect of final waste disposal and of the packaging and its environmental impact are also taken into account. We have prepared sustainability criteria for product procurement and guidelines for product design, which will be the basis for changing products into more sustainable ones, and will contribute to closing product life cycles in the long run and ensure the sustainable use of resources.
In addition to the rehabilitation of street lighting, the Petrol Group decided to dim the lighting of canopy borders, totem signs and pylons and to turn off all unnecessary street lighting and lights in stores, at all points of sale when the point of sale is closed. These measures further help reduce light pollution.
At Petrol, we are aware that excessive lighting of the environment is a serious problem. By choosing appropriate solutions and modern lamps, with which we directed the light where it is needed, we significantly reduced electricity consumption while significantly reducing light pollution.
Petrol d.d., Ljubljana operates seven facilities posing a minor or major risk to the environment (so-called SEVESO plants). In keeping with the Framework Safety and Security Policy, Major Accident Prevention Concept (Petrol's safety focus) and the Safety Management System, a number of activities laid down in environmental risk reduction concepts, safety reports and protection and rescue plans were carried out at the facilities in connection with major accident prevention and mitigation of their consequences. Our actions are chiefly geared towards ensuring that during the planning, construction, operation, maintenance, modification or shutdown of facilities, every possible step is taken to prevent security incidents and major accidents and to minimise their impact. Delivering these commitments requires ongoing coordination between organisational units and consistency between legal obligations (legislation on the protection of the environment and water, on construction, on fire safety, on the protection against natural and other disasters, critical infrastructure), documentation and environmental permits issued.
Fire safety and anti-explosion protection are very important aspects of safety. They are ensured through both statutory and preventive safety measures. These allow business continuity and the protection of persons, the environment and property. In accordance with protection and rescue plans, practical fire and evacuation drills were organised in October and November 2021, the month of fire safety, in Petrol's office buildings, at service stations and at fuel storage facilities.
In 2021, particular attention was given in Slovenia to the continued strengthening of the Company’s safety culture by organising training for employees, as well as by introducing safety monitoring when hazardous works are carried out.
More information about our environmental actions in 2021 will be presented in the next Sustainability Report of the Petrol Group in June 2023.
Quality and excellence are embedded in the Petrol Group's strategy for the 2021 – 2025 period, which is why we are constantly upgrading and expanding our quality management systems. Petrol has thus certified its quality management system (ISO 9001), environmental management system (ISO 14001) and energy management system (ISO 50001). In addition to the certified systems, the Company's comprehensive quality management system incorporates the requirements of the HACCP food safety management system, of the ISO 45001 occupational health and safety system and of the ISO 27001 information security system. Petrol has a Responsible Care Certificate for its activities relating to storage, logistics and the retail network of service stations in Slovenia, an FSC certificate for the sale of FSC-certified products, and an ISCC certificate for trading and storage of renewable energy sources.
In the Petrol Group, ensuring maximum quality is a fundamental principle of our operations. Thanks to our specialist services and support, we maintain the status of being a leading energy company in Slovenia, which has an important impact on the development and introduction of new technologically most advanced fuels to the Slovenian market. Petrol Laboratory, which is accredited to the SIST EN ISO/IEC 17025:2017 standard (General requirements for the competence of testing and calibration laboratories), has an important role in this process. In 2021, Petrol Laboratory expanded its range of accredited methods. At the end of the year, Petrol Laboratory had 55 accredited test methods for petroleum product testing.
Operating as part of Petrol is also an inspection body, which is accredited to the SIST EN ISO/IEC 17020:2012 standard (General criteria for the operation of various types of bodies performing inspection) and has 20 accredited test methods for the inspection of flow and tyre pressure measuring devices, of pressure equipment, of the tightness of fixed steel reservoirs, of the wall thickness of liquid fuel reservoirs, of the measurement of the dielectric strength of liquid fuel reservoir insulation and of the measurement of noise in the natural and living environment. Quality management systems are also maintained at our subsidiaries.
| Company | Quality management system | Environmental management system | Energy management system | Laboratory accreditations |
|---|---|---|---|---|
| Petrol Group | ISO 9001 | ISO 14001 | ISO 50001 | 55 accredited test methods |
| Inspection Body | ISO 17020:2012 | 20 accredited test methods |
| Petrol d.d., Ljubljana | ISO 9001:2015 | ISO 14001:2015 | ISO 50001:2018 |
|---|---|---|---|
| SIST EN ISO/IEC 17025:2017 | SIST EN ISO/IEC 17020:2012 | ISCC | AEO*** |
| RC,* | FSC** | ||
| Petrol, d. o. o. | ISO 9001:2015 | ISO 14001:2015 | |
| Petrol Geo, d. o. o. | ISO 9001:2015 | ||
| Beogas, d. o. o. | ISO 9001:2015 | ||
| Petrol, d. o. o., Beograd | ISO 9001:2015 | ISO 14001:2015 | ISO 45001:2018 |
*** The AEO certificate is issued by the Customs Administration of the Republic of Slovenia which also carries out control and inspects AEO certificate holders. The certificate allows for easier admittance to customs simplifications, fewer physical and document-based controls, priority treatment in case of control, a possibility to request a specific place for such controls and a possibility of prior notification. To obtain an AEO certificate, several conditions and criteria need to be met: compliance with security and safety standards, appropriate records to demonstrate compliance with customs requirements, a reliable system of keeping commercial and transport records for control purposes, and proof of financial solvency.
** Petrol d.d., Ljubljana is a holder of an FSC certificate for the production of wood chips used for heat generation. The FSC certificate, which is issued by an international NGO called the Forest Stewardship Council, promotes environmentally appropriate, socially beneficial and economically viable management of forests.
The Q Max brand has been the mainstay of Petrol's fuel quality for more than a decade. Petrol incorporates in its fuels all the innovations and requirements dictated by legislation, engine manufacturers and, in recent years, increasingly stringent restrictions related to the reduction of environmental impacts.
Q Max fuels are designed according to the latest guidelines required today by the technological development of internal combustion engines in combination with state-of-the-art exhaust cleaning systems. With advanced solutions in the field of fuel additives, Q Max fuels ensure that the interior of the engine parts are kept almost completely clean, which is a prerequisite for the processes in them to take place optimally. All this is reflected in reduced consumption, higher energy efficiency and very low emissions. With the new fuel versions (Q Max iQ diesel), flawless engine operation is possible even under the highest engine loads and in the most unfavourable climatic conditions (low temperatures).
The high quality of Q Max fuels is not only provided by the composition and technological advancement but also by a complex and professionally supported quality control system at the time of their use. Petrol fuel quality control procedures are included in all the key points of the supply and sales chain. The control system is also integrated with international standards of business quality and controls, which are based on accreditation prescribed and supervised procedures (internationally recognised accreditations). All this requires qualified and experienced staff united in the field of Sustainable Development, Quality Assurance and Business Security. The central part of this area is our own accredited oil laboratory, with which we can quickly and thoroughly control the quality of fuels and other products.
In 2021, in the field of Q Max fuel development, Petrol paid special attention to even better environmental acceptability by including modern sustainably produced ingredients, which reduce the negative effects of fuels on the environment and potential effects on global warming.
The Petrol Group pays special attention to social responsibility. In our business and social activities, we try to actively influence and help solve environmental, social and other challenges in the environment in which we live and operate. In 2021, we again supported a number of humanitarian, cultural, sports and environmental projects through sponsorships and donations.
The Petrol Group has been a major supporter of sport in Slovenia and in the region for a number of years. Through sponsorship, we contribute to the development of various sports disciplines and to the successes and development of athletes in Slovenia and Croatia. We sponsor individuals, clubs, associations and sports events at the national and international levels. By supporting sports and arts, we strengthen our reputation and make our brands more visible.
Petrol has a traditional presence in winter sports, where our support for the Ski Association of Slovenia and the Biathlon Association of Slovenia stand out. In both, we have been sponsoring all age categories of national teams for many years, as well as one of our best snowboarders. In the mentioned sports, we are personal sponsors of the best competitors, including Žan Kranjec, Jakov Fak, Žan Košir and the promising young biathlete Alex Cisar. We also traditionally support the men's alpine skiing competition, the Vitranc Cup, the Pokljuka biathlon world cup competition, and the Rogla snowboarding world cup competition.
supports the motocross rider Simon Marčič, triathlete Denis Šketak and young promising tennis player Maša Viriant. The presence in many sports is rounded out by the sponsorship of the Olympic Committee of Slovenia and the Croatian Olympic Committee.
In addition to sports sponsorships, the Petrol Group takes part in technical projects linked to various energy and environmental activities. As a sponsor, we continued to support conferences, symposiums and events on sustainable development, energy efficiency and e-mobility, management, marketing and public relations (SOZ Academy, PR Theater, Europe Reader, Bled Strategic Forum, 23rd SKOJ, MDLG, Euromar 2021, SZE International Conference 2021, Pantheon 2021, 10th Ljubljana Forum, Slovenian Car of the Year 2021 and others).
In the arts segment, we have been cooperating with the Ljubljana Festival and Lent Festival for many years, and we also support cultural events taking place in Ljubljana City Theatre, Cankarjev Dom (The Magnificent 7 season ticket) and Slovenia's other cultural institutions. In addition, we are involved in the area of entertainment shows, concerts and musicals, which were severely curtailed in 2021 due to the epidemic.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
In 2021, we were also active as a sponsor in other markets in the region; namely, in Croatia, we sponsored the Croatian Olympic Committee (COC), in Bosnia and Herzegovina we supported the “Udruženje Naš tim” ski club, and in Serbia last year we sponsored the Vrbas Handball club.
Part of our social footprint are corporate volunteering activities, which we have been nurturing for the tenth year and through which we give back to society through our volunteer work, knowledge and increasing material aid. In 2021, 70 employees from Slovenia took part in ten work campaigns in the Corporate Volunteering Week We Give Back To Society. Petrol contributed 140 work hours in these work campaigns, with volunteers contributing another 140 volunteer hours.
2021 marked the eleventh anniversary of the humanitarian campaign Donate Energy for Life, through which in cooperation with the Red Cross of Slovenia and the Transfusion Institute we raise awareness of the importance of blood donation throughout Slovenia, invite new blood donors and inform existing donors about healthcare needs.
In 2021, we also celebrated the eleventh anniversary of the Our Energy Connects project, in which funds earmarked for business gifts are given to charity. Each service station in Slovenia proposes a humanitarian project for which we allocate EUR 200. Through this project, we have supported a total of 145 different humanitarian projects implemented by non-profit organisations. As part of this project, we have donated a total of more than EUR 680,000 to local humanitarian projects in eleven years.
In 2021, we once again extended our helping hand to the Moste – Polje Association of Friends of Youth. In the Petrol Santa Claus campaign, employees from Slovenia raised as many as 165 New Year's presents for children from socially disadvantaged backgrounds.
In 2021, we also supported quite a few projects in the region with donations. With certainly the largest donation, Petrol d.d., Ljubljana, and Petrol d.o.o. Zagreb has responded to help employees affected by the earthquakes in Petrinja and Sisak. Together, they set up a special fund, to which they allocated EUR 50,000 each, a total of EUR 100,000.
In Serbia, we also donated to support the kindergarten in Šimanovci, helping with the project to illuminate the monument to Sava Šumanović in Šid, which will be realised in the spring of 2022. We also donated to the Slovenian Embassy in Serbia and Bosnia and Herzegovina.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
As at 31 December 2021, the Petrol Group diagram does not include inactive companies.
| The Petrol Group as at 31 December 2021 | Sales | Energy and environmental systems | Production of renewable electricity |
|---|---|---|---|
| The parent company | Petrol d.d., Ljubljana | zzz | |
| Subsidiaries | Petrol d.o.o. (100%) | zz | |
| Petrol javna rasvjeta d.o.o. (100%) | z | ||
| Adria-Plin d.o.o. (75%) | z | ||
| Crodux Derivati Dva d.o.o. (100%) | z | ||
| Petrol BH Oil Company d.o.o. Sarajevo (100%) | z | ||
| Petrol d.o.o. Beograd (100%) | zz | ||
| Petrol LUMENNIS PB JO d.o.o. Beograd (100%) | z | ||
| Petrol LUMENNIS VS d.o.o. Beograd (100%) | z |
PETROL, SLOVENSKA ENERGETSKA DRUŽBA, D.D., LJUBLJANA
Nada Drobne Popović, President of the Management Board,
Matija Bitenc, Member of the Management Board,
Jože Bajuk, Member of the Management Board,
Jože Smolič, Member of the Management Board,
and Zoran Gračner, Member of the Management Board.
E-mail: [email protected]
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 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 Slovenian retail market in petroleum products. It generates the greater part of the Petrol Group's revenue and profits.
In 2021, the company Petrol d.d., Ljubljana generated EUR 3.55 billion in sales revenue, which is 52 percent more than in 2020, mainly due to higher prices of oil, electricity and other energy.
| Petrol LUMENNIS ZA JO d.o.o. Beograd | (100%) |
|---|---|
| Petrol LUMENNIS ŠI JO d.o.o. Beograd | (100%) |
| Petrol KU 2021 d.o.o. Beograd | (100%) |
| Petrol Crna Gora MNE d.o.o. | (100%) |
| Petrol Trade Handelsges.m.b.H. | (100%) |
| Beogas d.o.o. Beograd | (100%) |
| Petrol LPG d.o.o. Beograd | (100%) |
| Tigar Petrol d.o.o. Beograd | (100%) |
| Petrol LPG HIB d.o.o. | (100%) |
| Petrol Power d.o.o. Sarajevo | (99.7518%) |
| Petrol-Energetika DOOEL Skopje | (100%) |
| Petrol Bucharest ROM S.R.L. | (100%) |
| Petrol Hidroenergija d.o.o. Teslić | (80%) |
| Vjetroelektrane Glunča d.o.o. | (100%) |
| IG Energetski Sistemi d.o.o. | (100%) |
| Petrol Geo d.o.o. | (100%) |
| EKOEN d.o.o. | (100%) |
| EKOEN GG d.o.o. | (100%) |
| EKOEN S d.o.o. | (100%) |
| Zagorski metalac d.o.o. | (75%) |
| Mbills d.o.o. | (100%) |
| Atet d.o.o. | (72.96%; 76% voting rights) |
| Vjetroelektrana Ljubač d.o.o. | (100%) |
| E 3, d.o.o. | (100%) |
| STH Energy d.o.o. Kraljevo | (80%) |
| Petrol - OTI - Terminal L.L.C. | (100%) |
| Geoplin d.o.o. Ljubljana | (74.28%) |
| Geocom d.o.o. | (100%) |
| Geoplin d.o.o., Zagreb | (100%) |
| Geoplin d.o.o. Beograd | (100%) |
| Zagorski metalac d.o.o. | (25%) |
| Geoenergo d.o.o. | (50%) |
|---|---|
| Soenergetika d.o.o. | (25%) |
| Plinhold d.o.o. | (29.6985%) |
|---|---|
| Aquasystems d.o.o. | (26%) |
| Knešca d.o.o. | (47.27% of the company is owned by E 3, d.o.o.) |
Petrol d.d., Ljubljana's sales revenue was generated through the sale of:
Operating costs totalled EUR 298.7 million or 10 percent more than in 2020. The costs of materials totalled EUR 23.8 million on a par with the previous year. The costs of services stood at EUR 114.2 million, an increase of 3 percent over the year before. The costs of work stood at EUR 78.3 million, an increase of 5 percent over the year before. In accordance with the Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy, Petrol d.d., Ljubljana benefited from measures to reimburse quarantine and force majeure compensation, crisis allowance compensation and short sick leave compensation of 80 percent in the total amount of EUR 0.4 million (in the amount of EUR 2.4 million in 2020) and recorded this exemption as a decrease in labour costs. Depreciation and amortisation amounted to EUR 46.7 million, which is 1 percent less than in 2020. Other costs amounted to EUR 35.7 million.
Other operating revenues stood at EUR 274.8 million, which was EUR 164 million more than in 2020. Gain on derivatives totalled EUR 269.8 million or 171 percent more than in 2020. Other operating expenses, the bulk of which is attributable to losses on derivatives, stood at EUR 236.3 million, which was EUR 210 million more than in 2020.
The operating profit amounted to EUR 100.3 million, which is 184 percent more than in 2020.
Finance income from dividends paid by subsidiaries, associates and jointly controlled entities stood at EUR 3.3 million, a decrease of EUR 0.3 million relative to 2020. Net finance expenses stood at EUR -20.2 million and was down EUR 12.9 million compared to 2020. In 2021 Petrol d.d., Ljubljana's net profit on derivatives was up by EUR 7.6 million and EUR 6.7 million higher loss from net exchange rate differences relative to 2020. The value adjustment of operating receivables totalled EUR 3.0 million. Due to impairments of investments and goodwill, financial expenses decreased by EUR 6.6 million. Net interest expenses were EUR 1.1 million higher than in 2020, while the elimination and recovered adjustments of receivables were EUR 0.6 million lower than in 2020. Net other financial expenses in EUR 2021 were EUR 2.4 million higher than in 2020.
Pre-tax profit totalled EUR 83.4 million or EUR 51.7 million more than in 2020. Net profit of Petrol d.d., Ljubljana for the year 2021 stood at EUR 66.5 million, up 37.6 million relative to 2020.
Total assets of Petrol d.d., Ljubljana as at 31 December 2021 equalled EUR 1.9 billion, which was 28 percent more in 2020. Of this, non-current assets amounted to EUR 1.2 billion, which is 19 percent more than on 31 December 2020. Current assets amounted to EUR 650.1 million, which is 48 percent more than on 31 December 2020, mainly due to lower operating receivables.
The equity of Petrol d.d., Ljubljana as at 31 December 2021 equalled EUR 609.9 million, which was 4 percent more than at the end of 2020.
| Petrol d.d., Ljubljana (EUR million) | 2021 | 2020 | 2021/2020 Index |
|---|---|---|---|
| Adjusted gross profit | 360.5 | 280.5 | 129 |
| Labour costs, including government grants | 78.3 | 74.7 | 105 |
| Labour costs, excluding government grants | 78.7 | 77.0 | 102 |
| EBITDA, including government grants | 147.0 | 82.6 | 178 |
| EBITDA, excluding government grants | 146.6 | 80.2 | 183 |
| Pre-tax profit, including government grants | 94.6 | 31.7 | 299 |
| Pre-tax profit, excluding government grants | 94.2 | 29.3 | 322 |
President of the management board: Boris Antolovič
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol d.o.o. is a 100 percent owner of Petrol javna rasvjeta d.o.o. and a 75 percent owner of Adria-Plin d.o.o., which was acquired through the purchase of the rights and assets of Crodux Plin d.o.o. In September 2019, the Petrol Zagreb Group acquired Crodux Plin d.o.o.’s LPG operations while in January 2020, it acquired its electricity-trading operations. The Petrol Zagreb Group sells oil, merchandise and services and supplies other energy products in Croatia. In 2021, it sold 726.0 thousand tons of petroleum products and LPG, up 7 percent from 2020. In 2021, the Petrol Zagreb Group generated a total of EUR 563.3 million in sales revenue, which is 48 percent more than in 2020. The Group generated EUR 502.5 million of sales revenue from the sale of petroleum products and LPG and EUR 60.8 million from the sale of merchandise and services. Its operating profit stood at EUR 29.7 million in 2021, an increase of EUR 2.4 million from the previous year. The group's net profit for 2021 totalled EUR 22.8 million, which was EUR 1.6 million more than in the previous year. The Petrol Zagreb Group operated 109 service stations at the end of 2021. The group's equity totalled EUR 208.3 million as at 31 December 2021.
President of the management board: Boris Antolović
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
General Manager: Gregor Žnidarši
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
The company's principal activity is selling petroleum products, merchandise and services in Bosnia and Herzegovina. In 2021, it sold 190.2 thousand tons of petroleum products and LPG, which was on par with the previous year. In 2021, Petrol BH Oil Company d.o.o. Sarajevo generated EUR 140.3 million in sales revenue, down 21 percent from 2020. In Bosnia and Herzegovina, petroleum product prices were set freely in the market until 3 April 2021, when gross motor fuel margins were limited due to the pandemic (the maximum retail margin was EUR 0.128 per litre and the maximum wholesale margin was EUR 0.031 per litre). The margin cap is still ongoing. The Group generated EUR 129.6 million of sales revenue from the sale of petroleum products and LPG and EUR 10.7 million from the sale of merchandise and services. Its operating profit stood at EUR 3.2 million in 2021, a decrease of EUR 2.1 million from the previous year. The company's net profit for 2021 totalled EUR 3.5 million, a decrease of EUR 1.6 million from 2020. Petrol BH Oil Company d.o.o. Sarajevo operated 42 service stations at the end of 2021.
The company's equity totalled EUR 69.1 million as at 31 December 2021.
General Managers: Uroš Bider, Miljko Vlačić
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In 2020, Petrol d.o.o., Beograd, became the sole owner of Petrol LUMENNIS PB JO d.o.o. Beograd and Petrol LUMENNIS VS d.o.o. Beograd and in 2021, the sole owner of Petrol LUMENNIS ZA JO d.o.o., Petrol LUMENNIS ŠI JO d.o.o. and Petrol KU 2021 d.o.o., which are engaged in public lighting projects in Serbia. The Petrol d.o.o company's principal activity is selling petroleum products, merchandise and services in Serbia. The volume of petroleum products and LPG sold in 2021 totalled 107.5 thousand tons, up 24 percent from the previous year. In 2021, the Petrol Beograd Group generated a total of EUR 73.5 million in sales revenue, which is 23 percent less than in 2020. The Group generated EUR 68.3 million of sales revenue from the sale of petroleum products and LPG and EUR 5.3 million from the sale of merchandise and services. Its operating profit stood at EUR 3.6 million in 2021, an increase of EUR 0.8 million from the previous year. The company's net profit for 2021 totalled EUR 3.2 million, a year-on-year increase of EUR 1.0 million. Petrol d.o.o. Beograd operated 16 service stations at the end of 2021.
The company's equity totalled EUR 32.3 million as at 31 December 2021.
Executive Director: Tadej Zorjan (from 1 June 2021), Jaka Hrastnik (until 24 May 2021)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
The company's principal activity is selling oil, merchandise and services in Montenegro. It was formed when Petrol Crna Gora d.o.o. Cetinje was legally and formally merged into Petrol Bonus d.o.o. in July 2012. The merger resulted in a new company called Petrol Crna Gora MNE d.o.o. In 2021, it sold 53.6 thousand tons of petroleum products and LPG, up 32 percent from 2020. In 2021, Petrol Crna Gora MNE d.o.o. generated EUR 40.4 million in sales revenue, up 68 percent from 2020. The company generated EUR 34.9 million of sales revenue from the sale of petroleum products and LPG and EUR 5.4 million from the sale of merchandise and services. Its operating profit stood at EUR 1.8 million in 2021, an increase of EUR 1.3 million from the previous year. The company's net profit for 2021 totalled EUR 1.2 million, an increase of EUR 0.8 million from 2020. Petrol Crna Gora MNE d.o.o. operated 15 service stations at the end of 2021.
The company's equity totalled EUR 21.5 million as at 31 December 2021.
General Manager: Vanja Lombar (since 3 January 2022), Jože Bajuk (since 26 March 2021), Boštjan Napast (until 31 August 2021)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 74.28%
The company has been engaged in energy operations, i.e. supplying, trading and acting as an agent and intermediary in the natural gas market, the company's principal activity, since mid-1978. Its operations in the area of natural gas supply and services also extend abroad. To be able to ensure reliable supply, it has appropriate and diversified procurement sources at its disposal, as well as transport and storage facilities. The Geoplin Group comprises the parent company Geoplin d.o.o. Ljubljana and its subsidiaries Geoplin d.o.o. in Zagreb, Geoplin d.o.o. Beograd and Geocom d.o.o., which are wholly owned by the parent company, as well as Zagorski metalac d.o.o., which is 25 percent owned by the parent company. In 2021, the company's focus was mainly on carrying out and developing its principal activity of marketing and trading in natural gas. To this end, the company developed trading infrastructure to support the optimisation of its procurement and sales portfolio, as well as its expansion to new markets. Together with efficient energy consumption and RES projects, it also continued to develop and market energy solutions. In 2021, the Geoplin Group sold 35.5 TWh of natural gas, generating EUR 753.2 million in sales revenue. The group's net profit for 2021 totalled EUR 18.0 million. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR 13.4 million. The group's equity totalled EUR 159.1 million as at 31 December 2021.
General Manager: Uroš Bider
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
General Managers: Miljko Vlačić, Uroš Bider
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol LPG d.o.o. was established in February 2013 and is the sole owner of TigarPetrol d.o.o. The companies sell liquefied petroleum gas in Serbia. In July 2016, Petrol LPG HIB d.o.o. was established, which is also fully owned by Petrol LPG d.o.o. The company sells liquefied petroleum gas in Bosnia and Herzegovina.
In 2021, the Petrol LPG Group sold 69.7 thousand tons of liquefied petroleum gas, down 11 percent on the previous year. In 2021, it generated EUR 42.4 million in sales revenue, a year-on-year decrease of 9 percent. The company's net profit for 2021 totalled EUR 0.2 million, a decrease of EUR 1.6 million from 2020. The group's net profit for 2021 totalled EUR 0.1 million, which was EUR 1.5 million less than in the previous year.
The group's equity totalled EUR 10.3 million as at 31 December 2021.
General Manager: Štefan Hozjan (from 8 July 2021), Matej Prkič (until 31 May 2021)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol Geo d.o.o. was established in July 2018. In October 2018, mining services consisting of the drilling and maintenance of gas and oil boreholes, including the extraction of natural gas and oil, were transferred from Petrol Geoterm d.o.o. to Petrol Geo d.o.o. In December 2018, Petrol Geoterm d.o.o. was merged into Petrol d.d., Ljubljana (the production of heat from geothermal boreholes; management and development of district heating systems based on geothermal boreholes).
Petrol Geo d.o.o. generated EUR 3.4 million in sales revenue in 2021, up 2.1 percent on the previous year. The company's operating profit stood at EUR 2.2 million in 2021, an increase of EUR 2.4 million from the previous year. The company's net profit for 2021 totalled EUR 1.3 million, a year-on-year increase of EUR 1.9 million.
The company's equity totalled EUR 2.2 million as at 31 December 2021.
Manager: Barbara Jama Živalič
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
The single most important investment of IG energetski sistemi d.o.o. (IGES) was a 25 percent interest in GEN-EL d.o.o. In accordance with the Petrol d.d., Ljubljana strategy, a contract was signed on 22 June 2016 to dispose of the 50 percent interest held by the subsidiary IGES d.o.o. in the company GEN-I, d.o.o. The interest was then acquired by the company GEN-EL d.o.o. for EUR 45.1 million. The transaction was carried out in two parts: the first part was completed in 2016 and the second part in May 2018.
General Manager: Marko Malgaj
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol-Trade Handelsgesellschaft m.b.H. sells petroleum products in Austria and in the neighbouring countries. In 2021, the company purchased and sold 102.4 thousand tons of petroleum products and LPG. In 2021, it generated EUR 59.0 million in sales revenue, up 34 percent from 2020. Its net profit for 2021 totalled EUR 438.8 thousand.
The company's equity totalled EUR 2.0 million as at 31 December 2021.
General Managers: Borut Bizjak (since 22 February 2021), Boris Antolovič
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In February 2016, Petrol d.d., Ljubljana became the sole owner of the Šibenik-based company Vjetroelektrane Glunča d.o.o. The company is engaged in electricity production. The company owns a 20.7 MW wind farm in the Šibenik area. In 2021, it generated EUR 5.2 million in sales revenue, its net profit totalling EUR 1.3 million.
The company's equity totalled EUR 11.8 million as at 31 December 2021.
General Manager: Gregor Žnidaršić
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 80%
In September 2015, the companies Petrol d.d., Ljubljana and Eling Inžinjering d.o.o. Teslić established the company Petrol Hidroenergija d.o.o. The company is engaged in electricity production. In 2021, the company generated EUR 979.7 thousand in sales revenue. Its net profit for 2021 totalled EUR 562.8 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR 450.3 thousand.
The company's equity totalled EUR 7.2 million as at 31 December 2021.
General Manager: Aleš Weiss
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 99.7518%
Intrade energija d.o.o. Sarajevo became a subsidiary of Petrol d.d., Ljubljana when the company IG Investicijski inženiring, d.o.o. was merged into Petrol d.d., Ljubljana. It was renamed Petrol Power d.o.o. in January 2020. The company produces and distributes electricity. In 2021, the group generated EUR 750.8 thousand in sales revenue. Its net loss for 2021 totalled EUR -202.3 thousand. The net loss attributable to Petrol d.d., Ljubljana amounted to EUR -201.8 thousand.
The company's equity totalled EUR -1.9 million as at 31 December 2021.
General Manager: Primož Zupan
E-mail: primož[email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
General Manager: Igor Jogan
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In November 2018, Petrol d.d., Ljubljana acquired a 100 percent interest in Ekoen d.o.o., which is the sole owner of Ekoen GG d.o.o. The company's principal activity is to produce and distribute heat from renewable sources. In 2021, the group generated EUR 517.0 thousand in sales revenue. Its net loss for 2021 stood at EUR -9.4 thousand. The group's equity totalled EUR 738.8 thousand as at 31 December 2021.
General Manager: Igor Jogan
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In December 2018, Petrol d.d., Ljubljana acquired a 100 percent interest in Ekoen S d.o.o. The company's principal activity is to produce and distribute heat from renewable sources. In 2021, the group generated EUR 50.7 thousand in sales revenue. Its net profit for 2021 totalled EUR 7.0 thousand. The company's equity totalled EUR 15.3 thousand as at 31 December 2021.
General Manager: Vladimir Sabo
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 75% Geoplin d.o.o. Ljubljana: 25%
The company is engaged in natural gas distribution and supply, as well as in distribution pipeline maintenance, design and construction. Zagorski metalac d.o.o. distributes natural gas in Zagreb County and in Krapina-Zagorje County. The company has a broad gas distribution network, through which it supplies gas to over 17,800 end-customers. In 2021, it sold 206.9 thousand kWh of natural gas and distributed 281.1 thousand kWh of natural gas. In 2021, the group generated EUR 8.0 million in sales revenue. Its net profit for 2021 totalled EUR 382.0 thousand. The company's equity totalled EUR 9.1 million as at 31 December 2021.
General Manager: Darko Pahor
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In January 2021, Petrol d.d., Ljubljana, after fulfilling the suspensive conditions, completed the acquisition of a 100 percent interest in the company E 3, d.o.o, which is a key supplier of electricity in the Primorska region. The main activities of the company are the supply of electricity, the production of electricity from renewable sources and cogeneration, activities related to efficient energy use and the supply of steam and hot water. In 2021, E 3, d.o.o. sold 1,694 GWh of electricity and 11.0 GWh of heat. In 2021, the group generated EUR 125.1 million in sales revenue. Its net profit for 2021 totalled EUR 579.3 thousand. The company's equity totalled EUR 15.8 million as at 31 December 2021.
General Manager: Aleš Zupančič
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In October 2010, Petrol d.d., Ljubljana established Petrol-Energetika DOOEL Skopje. The company has a valid electricity trading licence. The company has a valid license to operate in the electricity trade. In 2021, the company generated EUR 355.6 thousand in sales revenue. Its net profit for 2021 totalled EUR 1.7 thousand. The company's equity totalled EUR 111.1 thousand as at 31 December 2020.
General Manager: Aleš Zupančič
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In December 2014, Petrol d.d., Ljubljana established the company Petrol Bucharest ROM S.R.L., which is engaged in electricity trading, production, transport and distribution. In 2021, the company generated EUR 64.5 thousand in sales revenue. Its net profit for 2021 totalled EUR 3.3 thousand. The company's equity totalled EUR -84.8 thousand as at 31 December 2021.
General Managers: Borut Bizjak (since 22 February 2021), Boris Antolović, Slaven Tudić
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In January 2018, Petrol d.d., Ljubljana acquired a 50 percent interest in the Šibenik-based company Vjetroelektrana Ljubač d.o.o. In 2019, Petrol d.d., Ljubljana acquired a 100 percent interest in this company. The company is engaged in electricity production. In 2021, it generated sales revenues in the amount of EUR 1.7 million and net profit in the amount of EUR 0.5 million. The company's equity totalled EUR 7.9 million as at 31 December 2021.
General Managers: Matevž Kustec, Tadej Smogavec
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 72.96% (76% of voting rights)
In December 2019, Petrol d.d., Ljubljana, became the owner of a 72.96 percent interest in the company Atet d.o.o. The company's principal activity is the rental and leasing of cars and light motor vehicles (the short-term rental of vehicles, transport activities with a driver, and ancillary mobility services). In 2021, the group generated EUR 2.2 million in sales revenue. Its net profit for 2021 totalled EUR 288.8 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR 210.7 thousand. The company's equity totalled EUR 2.2 million as at 31 December 2021.
General Manager: Aleš Weiss
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 80%
General Manager: Anton Figek
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In December 2020, Petrol d.d., Ljubljana completed a transaction selling its share in the company Petrol OTI Slovenija L.L.C. to another company member, thus leaving the ownership structure of the company. Petrol d.d., Ljubljana, bought a 100 percent interest in Petrol-OTI-Terminal L.L.C. from Petrol Oti Slovenija L.L.C.
The company's equity totalled EUR 8.6 million as at 31 December 2021.
General Managers: Andrej Bergant (from 5 August 2021), Verena Zidar (from 2 April 2021), Borut Bizjak (until 28 February 2021)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 50%
The company holds concession rights for the extraction of mineral resources, crude oil, natural gas and gas condensate in the area of the Mura depression. Its net profit for 2021 totalled EUR 626.7 thousand. The net profit for 2021, which belongs to the Petrol Group, totalled EUR 313.3 thousand.
The company's equity totalled EUR 923.5 thousand as at 31 December 2021.
General Manager: Aleš Ažman
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 25%
The company’s principal activity is the production of electricity in the thermal power plants and nuclear power plants. Its net profit for 2021 totalled EUR 457.9 thousand. The net profit for 2021, which belongs to the Petrol Group, totalled EUR 114.5 thousand.
The company's equity totalled EUR 1.6 million as at 31 December 2021.
Ownership interest of Petrol d.d., Ljubljana: 26%
Activities: Construction and operation of industrial and municipal water treatment plants – the central waste treatment plant in Maribor
Ownership interest of Petrol d.d., Ljubljana: 29.6985%
Activities: Management of gas infrastructure
Ownership interest of E 3, d.o.o.: 47.27%
Activities: Production of electricity
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The Company's management is responsible for the preparation of the financial statements, together with accounting policies and notes, of the Petrol Group and the company Petrol d.d., Ljubljana for the year 2021, which give, to the best of its knowledge and belief, a fair view of the development and results of the Company’s operations and its financial position, including the description of material risks that the Company and any other companies included in the consolidated financial statements are exposed to as a whole.
The management confirms that appropriate accounting policies have been applied consistently in the preparation of the financial statements, that accounting estimates were prepared based on the principles of fair value, prudence and sound management and that the financial statements give a true and fair view of the Group's and the Company's financial position and the results of their operations in the year 2021.
The management is also responsible for appropriate accounting and for taking adequate measures to protect the Company's property and other assets, and confirms that the financial statements, together with the notes thereto, have been prepared on the going concern assumption and in accordance with applicable legislation and International Financial Reporting Standards as adopted by the European Union.
The Company's management accepts and approves the financial statements, together with accounting policies and notes, of the Petrol Group and the company Petrol d.d., Ljubljana for the year 2021.
The tax authorities may inspect the Company's operations at any time within the period of five years following the year in which the tax was due. This may result in additional tax liabilities, interest on late payment and penalties arising from the corporate income tax and other taxes and duties. The Company's management is not aware of any circumstances, which may give rise to any material liabilities in this regard.
Nada Drobne Popović
Matija Bitenc
President of the Management Board
Member of the Management Board
Jože Bajuk
Jože Smolič
Member of the Management Board
Member of the Management Board
Zoran Gračner
Member of the Management Board, Worker Director
Petrol d.d., Ljubljana, Dunajska cesta 50, 1527 Ljubljana, Slovenia
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| (in EUR) | Note | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|---|
| Sales revenue | 6.3 | 4,960,125,965 | 3,079,432,607 | 3,557,019,790 | 2,338,624,128 |
| Cost of goods sold | (4,416,701,515) | (2,652,558,643) | (3,196,529,739) | (2,058,105,400) | |
| Costs of materials | 6.4 | (29,296,024) | (27,934,256) | (23,818,764) | (23,786,116) |
| Costs of services | 6.5 | (147,697,919) | (133,344,297) | (114,204,989) | (110,403,782) |
| Labour costs | 6.6 | (114,341,509) | (102,856,574) | (78,318,991) | (74,674,139) |
| Depreciation and amortisation | 6.7 | (79,091,758) | (74,994,167) | (46,696,671) |
(47,201,227)
(425,125,568)(366,068,020)(298,702,764)(272,757,455)
277,348,633105,786,186274,789,421103,907,580
(236,604,627)(74,961,521)(236,292,875)(76,308,909)
159,042,88891,630,609100,283,83335,359,944
8,790
6783,287,054
32,172,83826,906,37523,508,62922,700,432
(42,351,470)(36,580,690)(43,682,173)(29,991,565)
(10,178,632)(9,674,315)(20,173,544)(7,291,133)
151,448,02785,465,08483,397,34331,669,489
(30,683,697)(14,373,778)(18,781,868)(2,843,435)
3,717,0311,238,7361,867,46767,462
(26,966,666)(13,135,042)(16,914,401)(2,775,973)
124,481,36172,330,04266,482,94228,893,516
| Owners of the controlling company | 119,079,575 |
|---|---|
| Non-controlling interest | 5,401,786 |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| (in EUR) | Note | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|---|
| Net profit for the year | 124,481,361 | 72,330,042 | 66,482,942 | 28,893,516 | |
| Effective portion of changes in the fair value of cash flow variability hedging | (073) | 6,144,109,730 | |||
| Change in deferred taxes | (772,591) | 21,805 | (623,957) | (23,698) | |
| Change in the fair value of financial assets through other comprehensive income | (61,866) | ||||
| Change in deferred taxes | 11,756 | ||||
| Foreign exchange differences | 496,086 | (3,102,776) | |||
| Other comprehensive income to be recognised in the statement of profit or loss in the future | ) | 3,783,115 | |||
| Attribution of changes in the equity of subsidiaries | - | - | - | - | |
| Change in deferred taxes | - | - | - | - | |
| Attribution of changes in the equity of associates | - | - | - | - | |
| Change in deferred taxes | - | - | - | - | |
| Total other comprehensive income to be recognised in the statement of profit or loss in the future | 3,783,115 | ||||
| Unrealised actuarial gains and losses | (5,406) | 141,101 | 12,995 | 306,530 | |
| Other comprehensive income not to be recognised in the statement of profit or loss in the future | 01 | (5,406) | |||
| Attribution of changes in the equity of subsidiaries | - | - | - | - | |
| Attribution of changes in the equity of associates | - | - | - | - | |
| Total other comprehensive income not to be recognised in the statement of profit or loss in the future | 101 | (5,406) | |||
| Total other comprehensive income after tax | 3,777,709 | (3,067,943) | 2,673,026 | 407,555 | |
| Total comprehensive income for the year | 128,259,070 | ||||
| Total comprehensive income attributable to: | Owners of the controlling company |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| (in EUR) | Note | 31 December 2021 | 31 December 2020 | Adjusted | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Non-current (long-term) assets | ||||||
| Intangible assets | 6.15 | 345,329,895 | 194,646,631 | 155,524,818 | 161,533,797 | |
| Right-of-use assets | 6.16 | 102,621,512 | 62,401,606 | 27,874,823 | ||
| Non-controlling interest | 5,386,133 | 3,407,905 |
| 30,716,648 | 6.17 | 767,704,711 | 710,207,621 | 366,262,157 | 379,425,104 |
|---|---|---|---|---|---|
| 16,139,743 | 6.18 | 17,522,012 | 12,335,994 | 13,551,882 | |
|---|---|---|---|---|---|
| - | 6.19 | ||||
|---|---|---|---|---|---|
553,970,331351,013,627704,501562,016210,000233,000
| 6.21 | 55,169,626 | 55,953,391 |
|---|---|---|
| 26,610,477 |
6.22 4,133,044
6.23 991,831
2,680,471
6.24 8,228,771
10,565,315
8,219,107
10,542,414
6.12 11,379,674
9,906,032
8,155,514
83,299,185
| 6.25 | 178,191,288 | 140,154,195 | 96,573,239 | 87,530,630 |
|---|---|---|---|---|
| 6.28 | 3,338,893 | 1,949,652 | 7,604,649 | 3,276,761 |
|---|---|---|---|---|
| 6.26 | 16,168,692 | 32,634,090 | 16,181,049 |
|---|---|---|---|
| Operating receivables | 22,247,726 | 6.27 | 650,343,180 | 366,441,439 | 385,829,891 | 237,718,876 |
|---|---|---|---|---|---|---|
| Corporate income tax assets | 6.12 | 616,729 | 3,426,549 | - | 6,317,590 | |
| Financial assets at fair value through profit or loss | 6.29 | 34,561,544 | 11,107,888 | 34,666,891 | ||
| Financial assets at fair value through other comprehensive income | 6.22 | 1,776,801 | ||||
| Prepayments and other assets | 6.30 | 85,718,759 | 78,506,510 | 50,728,784 |
| Cash and cash equivalents | 27,371,876 |
|---|---|
| 6.31 | |
| 100,226,890 | |
| 88,674,952 | |
| 57,567,397 | |
| 44,670,525 | |
| 1,071,048,123 | |
| 723,104,369 | |
| 650,146,999 | |
| 440,396,219 | |
| Total assets | 2,383,451,431 |
| 1,792,078,451 | |
| 1,894,727,319 | |
| 1,483,752,509 |
| Equity attributable to owners of the controlling company | |
|---|---|
| Called-up capital | 52,240,977 |
| 52,240,977 | |
| 52,240,977 |
| Capital surplus | 80,991,385 |
|---|---|
| Legal reserves | 61,987,955 |
| Reserves for own shares | 4,708,359 |
| Own shares | (4,708,359) |
| Year | Value |
|---|---|
| 2021 | 318,523,082 |
| 2020 | 316,057,569 |
| 2019 | 340,914,615 |
| 2018 | 338,449,102 |
| Year | Value |
|---|---|
| 2021 | (789,611) |
| 2020 | (753,447) |
| 2019 | 39,809,449 |
| 2018 | 39,796,454 |
| Year | Value |
|---|---|
| 2021 | (858,584) |
| 2020 | (4,195,723) |
| 2019 | (1,136,850) |
| 2018 | (3,796,881) |
| Year | Value |
|---|---|
| 2021 | (8,634,420) |
| 2020 | (9,126,807) |
| 2019 | - |
| 2018 | - |
362,184,854290,793,50833,241,47114,446,758865,645,638787,995,417609,914,620585,981,368
| 6.32 | 908,698,005 | 826,669,437 | 609,914,620 | 585,981,368 |
|---|---|---|---|---|
| Provisions for employee post-employment and other long-term benefits | 6.33 | 9,516,091 | |||
|---|---|---|---|---|---|
| Other provisions | 6.34 | 34,323,479 | 31,347,421 | 17,606,490 | 14,763,837 |
| Long-term deferred revenue | 6.35 | 34,447,444 | 33,412,476 | 29,459,071 | 28,419,773 |
| Financial liabilities | 6.36 | 433,812,995 | 303,431,060 | 404,555,761 | 282,866,603 |
| Lease liabilities | 6.37 | 92,991,633 | 54,397,111 | 26,735,533 |
| Current Liabilities | Financial Liabilities | Lease Liabilities | Operating Liabilities |
|---|---|---|---|
| 6.38 | 6.36 | 6.37 | 6.39 |
| 5,661,782 | 65,958,447 | 13,768,130 | 5,661,782 |
| 727,182 | 48,766,555 | 10,069,352 | 727,182 |
| 1,583,658 | 272,485,762 | 2,717,596 | - |
| 3,985,700 | 160,688,732 | 4,259,323 | - |
| 6.12 | 1,583,658 |
|---|---|
| 612,337,082 | 436,739,927 | 491,988,446 | 362,680,038 |
|---|---|---|---|
| Corporate income tax liabilities | 6.12 | 18,786,511 | 1,966,916 | 16,353,199 | - |
|---|---|---|---|---|---|
| Contract liabilities | 6.40 | 14,828,344 | 14,927,846 | 7,905,838 | 8,830,761 |
| Other liabilities | 6.41 | 58,618,299 | 15,722,270 | 50,853,926 | 12,479,455 |
| Total liabilities | 862,416,344 | ||||
| Total equity and liabilities | 2,383,451,431 |
1,474,753,426
965,409,014
1,284,812,699
897,771,141
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Legal reserves
As at 1 January 2020
| (4,708,359) | 314,675,779 | ||
|---|---|---|---|
| (894,548) | (4,089,455) | (5,994,856) | |
| 271,904,940 |
| 770,822,177 | ||
|---|---|---|
| 40,430,080 | ||
| 811,252,257 | ||
| (15,098,102) | ||
| (30,124,614) | ||
| (45,222,716) | ||
| (45,222,716) | ||
| Transfer of a portion of 2019 and 2020 net profit | 19,938,130 | (19,938,130) |
-
-
-
| (50,062,744) | (48,680,954) | (5,163,965) | (53,844,919) |
|---|---|---|---|
| 68,951,312 | 68,951,312 | 3,378,730 | 72,330,042 |
(3,097,118)
29,175
(3,067,943)
-
-
-
-
-
| As at 31 December 2020 | (106,268) | (3,131,951) | 68,951,312 | 65,854,194 | 3,407,905 | 69,262,099 |
|---|---|---|---|---|---|---|
| As at 1 January 2021 | 316,057,569 | (4,708,359) | 4,708,359 | 61,987,955 | 80,991,385 | 52,240,977 |
| 316,057,569 | (753,447) | (4,195,723) | (9,126,807) |
|---|---|---|---|
| 290,793,508 | 787,995,417 | 38,674,020 | 826,669,437 |
| (30,775,958) | (14,446,758) | (45,222,716) | (45,222,716) |
| Transfer of a portion of 2021 net profit | 33,241,471 | (33,241,471) | - |
| - | - | - | - |
| - | (1,007,786) | (1,007,786) |
|---|---|---|
-
-
-
-
2,465,513
-
-
-
(47,688,229)
(45,222,716)
| (46,230,502) | 119,079,575 |
|---|---|
| 5,401,786 | 124,481,361 |
| (36,164) | 3,337,139 |
|---|---|
492,3873,793,362(15,653)3,777,709
Total changes in total comprehensive income
(36,164)
| 492,387 | 119,079,575 | 122,872,937 | 5,386,133 | 128,259,070 |
|---|---|---|---|---|
| As at 31 December 2021 | 80,991,385 | 52,240,977 | ||
| Retained earnings | Equity |
att ribut able to
owners of the
controlling
company
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| As at 1 January 2020 | 80,991,385 | 52,240,977 | |||
|---|---|---|---|---|---|
| Dividend payments for 2019 |
| (15,098,102) | |||
|---|---|---|---|
| (30,124,614) | |||
| (45,222,716) | |||
| Transfer of a portion of 2020 net profit | 14,446,758 | (14,446,758) | - |
407,555
Total changes in total comprehensive income
-
-
-
-
-
306,530
| 80,991,385 | 52,240,977 |
|---|---|
| 80,991,385 | 52,240,977 |
|---|---|
| (30,775,958) | (14,446,758) | (45,222,716) |
|---|---|---|
| 33,241,471 | (33,241,471) | - |
|---|---|---|
| Net profit for the current year | 66,482,942 |
|---|---|
| Other changes in other comprehensive income |
12,995
2,660,031
2,673,026
-
-
-
-
| Called-up capital | Capital surplus | Revenue reserves | Fair value reserve | Hedging reserve | Retained |
|---|---|---|---|---|---|
| 12,995 | 2,660,031 | 66,482,942 | 69,155,968 | 84 | 80,991,385 |
| 52,240,977 | 847,940 | Accumulated profit for 2021 | 33,241,471 | 28,606,469 | (in EUR) |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| (in EUR) | Note | 2021 Adjusted | 2021 | 2020 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Net profit | 124,481,361 | 72,330,042 | 66,482,942 | |
| Adjustment for: | ||||
| Corporate income tax | 6.12 | 26,966,666 | 13,135,042 | 16,914,401 |
| Depreciation of property, plant and equipment, investment property and right-of-use assets | 6.7 | 765,861,834 | ||
| Amortisation of intangible assets | 6.7 | 13,229,924 | 11,934,808 | 9,676,444 |
| (Gain)/loss on disposal of property, plant and equipment | 6.3, 6.8 | 627,202 | 582,616 | 653,815 |
| Impairment, write-down/(reversed impairment) of assets | 6.8 | 14,259,583 | 16,207,510 | 2,705,061 |
| Revenue from assets under management | 6.36 | (65,414) | (65,414) | (65,414) |
| Net (decrease in)/creation of provisions for long-term employee benefits | 6.33 | (306,149) | ||
| Net (decrease in)/creation of other provisions and long-term deferred revenue | 6.34, 6.35 | 3,356,189 | ||
| Net goods surpluses | 6.8 | (2,696,235) | 520,368 | (1,476,726) |
| Net (decrease in)/creation of allowance for receivables | 6.11 | 7,571,039 | 1,703,513 | 2,660,018 |
| 6.11 | (657,814) | 4,392,056 | 7,431,554 | 3,982,897 |
|---|---|---|---|---|
| 6.11 | 873,366 | 3,641,563 | 11,193,296 | 4,584,965 |
|---|---|---|---|---|
| 6.10 | (300,040) | (124,978) | - | - |
|---|---|---|---|---|
| 6.10 | (2,283,731) | (3,383,812) |
|---|---|---|
(1,823,324)
6.10 -
| Amount | (1,328,236) |
|---|---|
| (1,328,680) | Cash flow from operating activities before changes in working capital |
| 250,917,781 | Net (decrease in)/creation of other liabilities |
| 6.41 | 36,963,249 |
| (466,635) | 38,374,470 |
| 1,505,407 | Net decrease in/(creation) of other assets |
| 6.30 | (18,616,569) |
| 184,008 | (13,287,076) |
| (812,780) | Change in inventories |
| 6.25 | (20,869,739) |
| 27,191,931 | (7,441,204) |
| 40,692,344 | Change in operating and other receivables and contract assets |
| 121,650 | 6.27, 6.28 |
| (209,709,855) | Change in operating and other liabilities and contract liabilities |
| 027,363 | 6.39, 6.40 |
| 138,301,308 | Cash generated from operating activities |
| 176,986,175 | 216,702,804 |
| 69,173,872 | 126,867,216 |
| Interest paid | 6.11 |
| (9,750,418) | (8,477,858) |
| Taxes paid | (7,157,264) | (7,033,413) | 6.12 | |
|---|---|---|---|---|
| Net cash from (used in) operating activities | (12,585,658) | (15,866,256) | 3,921,348 | (6,759,102) |
| Cash flows from investing activities | Payments for investments in subsidiaries | |||
| 154,650,099 | 192,358,690 | 65,937,956 | 113,074,701 |
| (196,650,000) | (12,741,490) |
|---|---|
| (204,150,000) | (13,208,987) |
| 6.19 | - | 116,875 | - | - |
|---|---|---|---|---|
| 6.21 | 2,575,000 | 753,977 | 2,575,000 | 753,977 |
|---|---|---|---|---|
| 6.15 | 412,459 | 203,276 | 407,294 | 203,229 |
|---|---|---|---|---|
| 6.15 | (7,276,610) | (10,596,165) |
|---|---|---|
| 6.17 | 5,385,276 | 4,375,850 | 687,619 | 1,818,714 |
|---|---|---|---|---|
| 6.17 | (57,030,318) | (79,630,464) | (28,496,285) | (41,221,462) |
|---|---|---|---|---|
6.18
| 241,532 | 241,530 | ||
|---|---|---|---|
6.22
6.23, 6.26
| 91,219,887 | 14,044,121 | 159,534,710 | 53,759,636 |
|---|---|---|---|
6.23, 6.26
| (39,367) | (40,334,584) | (178,542,919) | (96,208,419) | |||
|---|---|---|---|---|---|---|
| 6.11 | 17,028,503 | 3,504,458 | 2,529,225 | 2,915,144 |
|---|---|---|---|---|
| 6.10 | - | - | 1,823,324 | 2,099,062 |
|---|---|---|---|---|
| 6.10 | 135,495 | 172,934 | 135,495 | 172,934 |
|---|---|---|---|---|
| 6.10 | 1,403,355 | 1,328,681 | 1,328,236 | 1,328,681 |
|---|---|---|---|---|
| 6.10 | 177,148 | 139,321 | 67,148 | 29,321 |
|---|---|---|---|---|
| (142,659,172) | (118,002,066) |
|---|---|
| Payments for right-of-use assets | (12,056,039) |
|---|---|
| Proceeds from borrowings | 926,931,269 |
| Repayment of borrowings | (880,837,557) |
| (808,314,348) | (1,085,490,135) | (1,032,414,899) |
|---|---|---|
| 6.32 | (45,222,901) | (45,223,953) |
| (45,222,901) | (45,223,953) |
(11,185,228)
| At the beginning of the year | 88,674,952 | 41,730,269 | 44,670,525 | 17,680,102 |
|---|---|---|---|---|
| Foreign exchange differences | 62,968 | (138,742) | - | - |
| Cash acquired through acquisition of companies | 10,683,271 | 1,711 | - | - |
| Increase/(decrease) | 805,699 | 47,081,714 | 12,896,872 | 26,990,423 |
Petrol d.d., Ljubljana (hereinafter the “Company”) is a company domiciled in Slovenia. Its registered office is at Dunajska cesta 50, 1527 Ljubljana. Below we present consolidated financial statements of the Group for the year ended 31 December 2021 and separate financial statements of the company Petrol d.d., Ljubljana for the year ended 31 December 2021. The consolidated financial statements comprise the Company and its subsidiaries as well as the Group’s interests in associates and jointly controlled entities (together referred to as the “Group”). A more detailed overview of the Group’s structure is presented in chapter Companies in the Petrol Group of the business report.
The Company’s management approved the Company’s financial statements and the Group’s consolidated financial statements on 10 March 2022. The financial statements of Petrol d.d., Ljubljana and consolidated financial statements of the Petrol Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, the interpretations of the IFRS Interpretations Committee, also adopted by the EU, and the Companies Act.
The Group’s and the Company’s financial statements have been prepared on the historical cost basis except for the financial instruments that are carried at fair value or amortised cost.
These financial statements are presented in euros (EUR) without cents, the euro also being the Company’s functional currency. Due to rounding, some immaterial differences may arise as concerns the sums presented in the tables. The financial statements provide comparative information in respect of the previous period.
The preparation of the financial statements requires management to make estimates and judgements based on the assumptions used and reviewed that affect the reported amounts of assets, liabilities, revenue and expenses. How the estimates are produced and the related assumptions and uncertainties is disclosed in the notes to individual items. The estimates, judgements and assumptions are reviewed on a regular basis. Because estimates are subject to subjective judgement and a degree of uncertainty, actual results might differ from the estimates. Changes in accounting estimates, judgements and assumptions are recognised in the period in which the estimates are changed if the change affects that period only. If the change affects future periods, they are recognised in the period of the change and in any future periods.
The Group/Company applied the following accounting judgements that significantly affect the determination of the amount of right-of-use assets and lease liabilities:
The Group/Company applied the following accounting judgements that significantly affect the determination of the amount and recognition of revenue from contracts with customers:
charging it to the end customer when a sale is made. In the financial statements, excise duty is not carried as part of revenue or cost, in conformity with these accounting policies. The Group/Company used to carry excise duty as part of revenue. Following a reassessment exercise in 2019, the duty is no longer considered as part of revenue.
Revenue from the sale of goods and services is recognised by the Group/Company in full upon sale, except for instalment sales. As of the sale, the Group/Company no longer has control of the goods or services sold.
In instalment sales, the Group/Company recognises separately revenue from the sale of goods and finance income deferred over the entire financing period.
The Group/Company has concluded contracts on the sale of merchandise in the name and on behalf of suppliers. It provides customers goods delivery in the scope of these contracts. The Group/Company determined that it does not control the goods before they are transferred to customers, and it does not have the ability to direct their use or obtain any benefits. In addition, the Group/Company is not exposed to inventory risk before or after the goods have been transferred to the customer as it purchases equipment only upon approval of the customer and can return the unsold goods to the supplier.
The Group/Company has no discretion in establishing the price for the specified goods that it sells in the name and on behalf of third parties. The consideration it receives as an intermediary is agreed in advance as the difference between the final selling price and the cost, where both are negotiated with the supplier in advance.
The Group/Company operates a loyalty points programme, which includes all customers who are holders of the Petrol Club card. The Group/Company offers Petrol Club card holders certain discounts on their purchases at service stations or on the supply of gas and electricity, based on the points collected from their previous purchases. The Group/Company established that the points represent additional benefits for the customer which would not have existed if the customer had not had the Petrol Club card. As some of the discounts can be used in the following year, the Group/Company defers them to match its revenue with the expenses incurred to generate the revenue.
When the Group/Company uses property in part for the performance of own activities and partly to be leased out, and the part intended to be leased out can be sold separately or leased under a finance lease, then the part intended to be leased out is accounted for separately as investment property if its value exceeds 5 percent of the property value.
The Group/Company applied the following accounting judgements that significantly affect the recognition and measurement of effects of business combinations:
The Group/Company defines a business transaction as a business combination by assessing criteria the fulfilment of which proves that assets and liabilities acquired in a business transaction constitute a business, with the Group/Company controlling these assets once the transaction has been completed.
In its financial statements, the Group/Company recognises the assets and liabilities acquired in a business combination on the date when controlling influence is exercised over the acquired assets/liabilities. Since the completion of a transaction involving a business combination is subject to fulfilment of purchase and sale terms and conditions, the Group/Company assesses their fulfilment and its control over the business and cash flows of the acquired company as at reporting date.
The fair value of net asset value is measured as the difference between the fair values of assets and liabilities determined by the Group/Company using valuation techniques and market assumptions.
When estimating the lives of assets, the Group/Company takes into account the expected physical wear and tear, the technical and economic obsolescence as well as expected legal restrictions and other restrictions of use. In addition, the Group/Company checks the useful life of significant assets in case circumstances change and the useful life needs to be changed and depreciation charges revalued.
Information on significant uncertainty estimates and critical judgements that were prepared by the management in the process of accounting policy implementation and which affect the amounts in the financial statements the most was used in the estimation of the value of:
The Group/Company assesses the value of its assets by:
Fair value is used for financial assets measured at fair value through other comprehensive income, financial assets measured at fair value through profit or loss and for derivatives. All other items in the financial statements represent the cost or amortised cost.
In measuring the fair value of a non-financial asset, the Group/Company must take into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group/Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available, especially by applying appropriate market inputs and minimum non-market inputs.
All assets and liabilities measured and disclosed in the financial statements at fair value are classified within the fair value hierarchy based on the lowest level of input data that is significant to the fair value measurement as a whole:
For assets and liabilities disclosed in the financial statements in previous periods, the Group/Company determines at the end of each reporting period whether transfers have occurred between levels by re-assessing the classification of assets based on the lowest level input that is significant to the fair value measurement as a whole.
The fair value hierarchy of assets and liabilities of the Group/Company is presented in Note 7.7, whereas the guidelines for individual items in the financial statements are given in Point 3.p.
The Group/Company regularly checks if a change of influence has occurred in jointly controlled entities and associates, thus ensuring that the investments are appropriately treated in the financial statements. The existence of significant influence by an investor is evidenced particularly in one or more of the following ways:
There are several lawsuits that have been filed against Group companies, for which the potential need for provisions is estimated on an ongoing basis. Provisions are recognised if, as a result of a past event, companies have a present legal or constructive obligation that can be estimated reliably, and if it is probable that an outflow of economic benefits will be required to settle the obligation.
Contingent liabilities are not disclosed in the financial statements because their actual existence will only be confirmed by the occurrence or non-occurrence of events in unforeseeable future, which is beyond the control of Group companies. The management of a company regularly checks if an outflow of economic benefits is probable to settle contingent liabilities. If it becomes probable, the contingent liability is restated and provisions are created for it in the financial statements as soon as the level of probability changes. When assessing the existence and amount of contingent liabilities, the Group’s management relies on expert opinions provided by external lawyers who represent the Company in legal disputes and, where necessary, on opinions provided by international legal experts. Provisions for lawsuits contain a significant degree of uncertainty, and actual settlement can differ considerably from the current estimate.
The Group's/Company's other provisions include provisions for partial non-compliance in the area of renewables in transport (Decree on renewable energy sources in transport). The provisions were estimated by considering all relevant circumstances regarding conformity with the required standards and legal aspects, and represent the management's best estimate as to how likely is the outflow of economic benefits from the Group/Company.
Defined post-employment and other benefit obligations include the present value of post-employment benefits on retirement and jubilee benefits. They are recognised based on an actuarial calculation approved by the management. An actuarial calculation is based on the assumptions and estimates applicable at the time of the calculation, and these may differ from the actual assumptions due to future changes. This mainly refers to determining the discount rate, the estimate of staff turnover, the mortality estimation and the salary increase estimate. Defined benefit obligations are sensitive to changes in the said estimates because of the complexity of the actuarial calculation and the item’s long-term nature. The assumptions are detailed in Note 6.33.
Provisions for onerous contracts include:
The Group/Company did not change its accounting policies in 2021.
Statement of Financial Position and Statement of Cash Flows
In 2021, the Group changed the individual item presentation in the Statement of Financial Position and Statement of Cash Flows in order to ensure more relevant presentation. Upon reconsidering the gas purchase contract of the affiliated company from 2020, it was observed that the goods were not being purchased in line with IFRS 15; therefore, it is appropriate to present the transaction as a short-term loan. Consequently, in Statements of Financial Position as at 31 December 2020, the Group made an adjustment and reduced the value of inventories and increased the value of the financial receivables. The Group made an adjustment also in Statements of Cash Flows.
| (in EUR) | 31 December 2020 Published | Change of presentation | 31 December 2020 Adjusted | |
|---|---|---|---|---|
| ASSETS | ||||
| Current assets | Inventories | 169,933,758 | (29,779,563) | 140,154,195 |
| Financial receivables | 2,854,527 | 29,779,563 | 32,634,090 | |
| Total assets | 1,792,078,451 | - | 1,792,078,451 |
| (in EUR) | 2020 Published | Change of presentation | 2020 Adjusted |
|---|---|---|---|
| Change in inventories | (2,587,632) | 29,779,563 | 27,191,931 |
| Cash generated from operating activities | 186,923,241 | 29,779,563 | 216,702,804 |
| Payments for loans granted | (10,555,021) | (29,779,563) | (40,334,584) |
| Net cash from (used in) investing activities | (88,222,503) | (29,779,563) | (118,002,066) |
Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments)
In August 2020, the IASB published Interest Rate Benchmark Reform– Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). In particular, the amendments provide for a practical expedient when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, to require the effective interest rate to be adjusted, equivalent to a movement in a market rate of interest. Also, the amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. There are also amendments to IFRS 7 Financial Instruments: Disclosures to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy. While application is retrospective, an entity is not required to restate prior periods. The amendments did not have a material impact on the financial statements of the Group/Company.
The Group’s consolidated financial statements comprise the financial statements of the controlling company and of its subsidiaries.
Business combinations are accounted for using the acquisition method as at the date of the combination, which is the same as the acquisition date or the date on which control is transferred to the Group. Control is the power to govern financial and operating policies of a company so as to obtain benefits from its activities. In the consolidated financial statements, acquired assets and liabilities are recognised at fair value as at the acquisition date. The excess of the consideration over the net fair value of the acquired assets is presented as goodwill as part of intangible fixed assets.
Any contingent liabilities arising from business combinations are recognised at fair value as at
the acquisi
tion date. If a cont
ingent liability is classified as equity, thenit is not remeasured
and settleme
nt is accounted for within equity. Subsequent changes in the fair value of the
contingent lia
bility are recognised in profit or loss. A contingent liability which constitutesa
financial instrument andis classified as an assetor a liability is measured atfair value, and
changes in the fairvalue are rep
orted in profit or loss.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 197
Accounting for acquisitions of non-controlling interests
The Group accounts for acquisitions of non-controlling interests that do not in
volve the change
in control of a company as transactions with owners and therefore no goodwill is recognised.
Adjustments tonon-controlling interests arebased on a proportion
ate amount of the net asse
ts
of the subsidiary. Any surpluses or the difference between the costs of additional investments
and the carrying amount of assets are recognisedin equity.
Subsidiaries
Subsidiaries are entities controlledby the Group. Control exists when:
−an investor is exposed or has righ
ts to variable returns from its involvements withthe
investee;
−it has the ability to affect those returns through its power over that investee;
−there is a link between p
ower and returns.
The financia
l statements of subsidiaries areincluded in the Group’s consolidated financia
l
statements fromthe date that control commences until the date that control ceases. The
accounting policie
s of subsidiaries are aligned withthe Group’s policies.
The existence of control is determined wh
en an investment is acquired and when financial
statements areprepared. On the loss of control, the Group derecognises the assets and
liabilities o
f the subsidiary, anynon-controlling interests and othercomponents of equityrelated
to the subsidia
ry. Any surplus or deficit arising on the lossof control is recognised in profi
t or
loss. Ifthe Groupretains any interest inthe previous subsidiary, such interest is measured at
fair value atthe datethe control is lost. Subsequently, the interest is accounted for as an
investment in an associate (using the equity method) or as a financial asset available for sale
,
dependingon the level of influ
ence retained.Changes in the parent’s ownership interest in a
subsidiary that do not result in the loss of control are accounted for as equity transactions (i.e.
transactionswith owners) in other revenuereserves. If a Group-controlled company is
absorbed, thedifferencebetween the investment and the ne
t value of acquired assetsis
recognised in other revenue reserves, taking into account goodwill, if any.
Investments in as
sociates and jointly controlled entities
Associates are thoseentities in which theGroup has significant influence, but not control, over
their financial andoperating policies. Jointlycontrolled entities are those entities over whose
activities the Group has join
t control, established b
y contractual agreement and requiring
unanimous consentfor financial and operating decisions. Investments in associates and jointly
controlled entities are in
itially recognised at cost, b
ut are subsequently accounted for using the
equity method. The Group’s consolidatedfinancial statements include the Group’s share ofthe
profit and loss of equityaccounted jointly controlled entities, after adjustments to align the
accounting polic
ies, from the date that significant influence commences until the date that
significant influence ceases. When the Group’s share of losses of an associate or a jointly
controlled entity exceeds itsinterest insuch an entity, the carrying a
mount of the Group's
interest is reducedto zero and the recognition of further losses is discon
tinued.
Transactions e
liminated from consolidated financial statements
Intra-group balances and any gain
s and losses arising from in
tra-group transactions are
eliminated inpreparing the consolidatedfinancial statements. Unrealised gains arising from
transactionswith associates (accounted for using the equity method
) are eliminated to the
extent of the Group’s interest in the entity.Unrealised losses are eliminated using the same
method, provided there is no evidenceof impairment.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 198
b. Foreign currenc
y translation
Foreign cu
rrency transactions
Transactions in foreign cu
rrencies are translated to the respective functional currencies of
Group companies at exchange rates at the da
tes of the transactions. Monetary assets and
liabilities deno
minated in foreign currencies at the end of the reporting period are retranslated
to the functional currency at the e
xchange rate atthat date. Foreign exchang
e gains or losses
are thedifference between amortised cost in the functional currency at the beginning of the
period, adjusted for effective interest and payments du
ring the period, and the amortised cost
in foreigncurrency translated at the exchange rate at the endof the reporting period. Non-
monetary assets and liabilities d
enominated in foreign currencies that are measured at fair
value are retranslatedto the functional cu
rrency at the exchange rat
e at the date thatthe fair
value was de
termined. Non-monetary items denominated in a foreign currency and measured
at historical cost are translated to the func
tional currency using the exchange rate at the da
te
of the transaction. Foreign exchange diffe
rences are recognised in profit or loss.
Financial statements of Group companies
The Group’s consolid
ated financial statements are presented in euros. Line items of each
Group company that are included in the financial statements are translated, for the purpose of
preparing consolidatedfinancial statements, to the reporting curren
cy as follows:
−assets and liabilities fromeach statement of financial position presented, including goodwill,
are translated at the ECB exchange rate at the reporting date;
−revenue and exp
enses of foreign operations are converted to euros at exchangerates
applicable at the transactio
n date.
Foreign exchangedifferences are recognised inother comprehensive income and presented
under foreign exchangedifferences in equity. In the case of non-wholly-owned subsidiaries
abroad, therelevant proportion of the foreign exchange difference is allocated to non-
controlling interests. When a foreign operation is disposed of in such a way th
at control,
significant influ
ence or joint control is lost, the relevant cumulative amount in the translation
reserve is reclassified to profit o
r loss or as gain or loss ondisposal. When the Group disposes
of onlypart of its interest in a subsidiary that includes aforeign operation while retaining control,
the relevant proportionof the cumulativeamount is reattributed tonon-controlling interests.
When the Group disposes of only part of its investment in an associateor jointly controlled
entity thatincludes aforeign operation while retaining significant influence or joint control, the
relevant proportion of the cumulative amount is reclassified to profit or loss.
c. Financialassets
The Group’sfinancial assets includecash and cash equivalents, receivables a
nd loans, and
investments. TheGroup’s investments include investments in jointly controlled entities,
investments in a
ssociates and investments in financial instruments. The accounting policies
for investments injointly controlled entities and associates are presented in Point a
.
The Group initially recognises loans,receivables and deposits onthe date that theyare
originated. All other financial assetsare recognised initially on the trade date,which is the date
that the Group becomes a partyto the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire or when it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
Upon initial recognition, the Group’s financial instruments are classified into one of the following categories: financial assets measured at amortised cost, financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss. The classification depends on the selected asset management business model and on whether the Group’s contractual cash flows from financial instruments are solely payments of principal and interest on the principal amount outstanding. With the exception of operating receivables that do not have a significant financing component, the Group’s financial assets are upon initial recognition measured at fair value plus transaction costs. Operating receivables that do not have a significant financing component are measured at transaction price determined according to the provisions of IFRS 15. See Revenue from contracts with customers, Point m of the accounting policies.
The impairment of financial assets is detailed in Point j1.
Cash and cash equivalents comprise cash balances, bank deposits with maturities of three months or less, and other current and highly liquid investments with original maturities of three months or less.
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets at fair value through profit or loss and financial assets to be measured at fair value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives are classified as held for trading unless they are designated as effective hedging instruments.
Financial assets that generate cash flows and are not solely payments of principal and interest are classified and measured at fair value through profit or loss irrespective of the business model.
In the statement of financial position, financial assets at fair value through profit or loss are measured at fair value, including net changes therein which are recognised in profit or loss. This category also includes derivatives and listed equity investments which the Group had not irrevocably elected to classify at fair value through other comprehensive income. Dividends on listed equity investments are also recognised as other revenue in the statement of profit or loss when the Group’s right of payment has been established.
The Group’s financial assets measured at fair value through profit or loss mainly consist of unrealised derivative financial instruments assessed on the reporting date.
Financial assets at fair value through other comprehensive income that have the nature of a debt instrument are the financial assets held by the Group under its business model for collecting contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, and for sale.
The Group’s debt instruments at fair value through other comprehensive income comprise listed bond investments that are recognised under other non-current investments.
For debt instruments at fair value through other comprehensive income, interest income, foreign exchange differences and impairment losses or reversals are recognised in the statement of profit or loss and accounted for in the same manner as financial assets at amortised cost. The remaining fair value changes are recognised in the statement of other comprehensive income. Upon derecognition, the cumulative fair value change recognised in other comprehensive income is recycled to profit or loss.
Financial assets at fair value through other comprehensive income that have the nature of an equity instrument are the financial assets that meet the definition of equity under IAS 32 Financial Instruments for which the Group elected to classify them irrevocably as equity instruments designated at fair value through other comprehensive income and which are not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the Group’s right of payment has been established.
The Group elected to classify irrevocably its non-listed equity investments under this category.
The Group’s financial assets at amortised cost include financial assets held under its business model in order to collect contractual cash flows when the cash flows are solely payments of principal and interest on the principal amount outstanding. The Group’s financial assets at amortised cost include loans, receivables and non-listed debt securities. Depending on their maturity, they are classified as current financial assets (maturity of up to 12 months from the date of the statement of financial position) or noncurrent financial assets (maturity of more than 12 months from the date of the statement of financial position). Financial assets measured at amortised cost are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method, less any impairment losses. Gains and losses are recognised in profit or loss when reversed, changed or impaired.
The Group’s financial liabilities include liabilities arising from debt securities issued and loans received. Upon initial recognition, they are classified as financial liabilities at fair value through profit or loss, loans received or operating liabilities. The Group initially recognises debt securities issued on the date that they are originated. All other financial liabilities are recognised initially on the trade date, or when the Group becomes a party to the contractual provisions of the instrument. Except for the loans received, all financial liabilities are initially recognised at fair value. The loans received are measured at amortised cost using the effective interest rate method. Depending on their maturity, they are classified as current financial liabilities (maturity of up to 12 months from the date of the statement of financial position) or noncurrent financial liabilities (maturity of more than 12 months from the date of the statement of financial position). Upon the derecognition of a financial liability and amortisation using the effective interest rate method, all gains or losses are recognised in the statement of profit or loss.
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired.
Derivative financial instruments are initially recognised at fair value. Attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.
The Group has the following derivative financial instruments:
The Group purchases petroleum products in US dollars, but sells them primarily in euros. Because purchases and sales are made in different currencies, mismatches occur between purchase and selling prices that are hedged against using forward contracts. The fair value of outstanding forward contracts at the date of the statement of financial position is determined by means of publicly available information about the value of forward contracts in a regulated market on the reporting date for all outstanding contracts. Gains and losses are recognised in profit or loss as finance income or expenses.
When petroleum products, natural gas and electricity are purchased or sold, mismatches occur between purchase and selling prices that are hedged against using commodity derivatives. The Group uses commodity derivatives for trading, as laid down in its strategy and its electricity trading policy. The fair value of outstanding commodity derivatives as at the date of the statement of financial position is determined using publicly available information about the market value of commodity derivatives as at the date of the statement of financial position as issued by relevant institutions. Gains and losses are recognised in operating profit or loss as other income or expenses.
Interest rates on loans received are exposed to a risk of interest rate fluctuations which is hedged against using interest rate swaps and collars. The fair value of outstanding interest rate swaps and collars at the date of the statement of financial position is determined by discounting future cash flows arising as a result of a variable interest rate (interest proceeds from a swap) and a fixed interest rate (payment of interest on a swap). When an interest rate swap is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a recognised asset or liability or a forecast transaction, the effective portion of the gain or loss on the instrument is recognised directly in comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as other finance income or expense.
Under IFRS 9, commodity forward contracts the purpose of which is not physical purchase or delivery of goods, their fulfilment leading to physical settlement only, are treated as a financial instrument and are recognised and measured in accordance with IFRS 9. Forward purchase and sale transactions concluded to ensure physical settlement of goods are treated outside the scope of IFRS 9 when the contract comprising those transactions is treated as being part of the ordinary course of business to ensure physical delivery of goods, provided that the following conditions are met:
As commodity forward contracts do not meet the above conditions, the Group treats them as financial instruments. In the financial statements, revenue from the sale of goods and the cost of goods sold arising from commodity forward transactions are recognised at fair value. Outstanding commodity forward contracts are restated to fair value at each balance-sheet date, and the effects of their restatement to fair value are recognised in the statement of profit or loss as other operating revenue or expenses.
The called-up capital of the controlling company Petrol d.d. takes the form of share capital, the amount of which is defined in the Company’s articles of association. It is registered with the Court and paid up by owners. Dividends on ordinary shares are recognised as a liability in the period in which they were approved by the General Meeting.
Legal reserves comprise shares of profit from previous years that have been retained for a dedicated purpose, mainly for offsetting eventual future losses. When created, they are recognised by the body responsible for the preparation of the annual report or by means of a resolution of this body.
The fair value reserve comprises the effects of valuing financial assets at fair value through other comprehensive income and actuarial gains and losses related to the provisions for employee post-employment and other long-term benefits.
The hedging reserve comprises the effect of changes in the fair value of derivative financial instruments designated as effective in hedging against the variability in cash flows.
The Group’s goodwill is the result of business combinations. For the measurement of goodwill upon initial recognition, see Point a. Goodwill is measured at cost less any accumulated impairment losses. In the case of equity accounted investments, the carrying amount of goodwill is included in the carrying amount of the investment, but the impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity accounted investment. Subsequent to initial recognition, the Group checks annually for factors which could adversely affect the future cash flows of a cash-generating unit acquired in a business combination. In the financial statements, a decrease in the value of a cash-generating unit is recognised as the impairment of goodwill or of the assets of a cash-generating unit. It is charged to current profit or loss.
The Group recognises an intangible non-current asset arising from a service concession arrangement when it has a right to charge for usage of the concession infrastructure. An intangible non-current asset received as consideration for providing construction or upgrade services in a service concession arrangement is measured at fair value upon initial recognition. Subsequent to initial recognition, the intangible non-current asset is measured at cost less accumulated amortisation and any accumulated impairment losses. The life of the right is linked to the duration of the concession agreement.
Development of software solutions involves the design and production of new or substantially improved software applications. The Group capitalises the costs of developing software solutions to the extent that the following conditions are met: the costs can be measured reliably, the development of a software solution is technically and commercially feasible, future economic benefits are probable, the Group has sufficient resources to complete development and intends to use the software solution. The capitalised costs of developing software solutions include direct labour costs and other costs that are directly attributable to preparing the asset for its intended use.
Other intangible fixed assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the assets. Borrowing costs directly attributable to the acquisition or production of a qualifying asset are recognised as part of the cost of that asset. Intangible fixed assets are subsequently measured using the cost model. In addition to goodwill and rights arising from concessions for the construction of gas networks and distribution of natural gas, which are described below, the Group’s intangible fixed assets comprise mostly software. Other than goodwill, the Group does not have intangible assets with unidentifiable useful lives.
Subsequent expenditure relating to intangible assets is recognised in the carrying amount of that asset if it is probable that the future economic benefits embodied within the part of this asset will flow to the Group and the cost can be measured reliably. All other expenditure is recognised in profit or loss as incurred.
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, with the exception of land, which is measured at cost less accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the assets. Parts of an item of property, plant and equipment having different useful lives are accounted for as separate items of property, plant and equipment. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are recognised as part of the cost of that asset. Items of property, plant and equipment are subsequently measured using the cost model.
Subsequent expenditure relating to property, plant and equipment is recognised in the carrying amount of that asset if it is probable that the future economic benefits embodied within the part of this asset will flow to the Group and the cost can be measured reliably. All other expenditure (e.g. day-to-day servicing) is recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis, taking into account the useful life of each part (component) of an item of property, plant and equipment. Leased assets are depreciated by taking into account the lease term and their useful lives. Land is not depreciated. Depreciation begins when the asset is available for use. Construction work in progress is not depreciated.
| (in %) | 2021 | 2020 |
|---|---|---|
| Right to use concession infrastructure | 2.00-20.00 | 2.00-20.00 |
| Material and other rights | 10.00-33.33 | 10.00-33.33 |
| Contracts with customers | 20.00 | 20.00 |
| Other rights | 3.33-20.00 | 3.33-20.00 |
| (in %) | 2021 | 2020 |
|---|---|---|
| Buildings: | ||
| Buildings at service stations | 2.50-10.00 | 2.50-10.00 |
| Above-ground and underground reservoirs | 2.85-50.00 | 2.85-50.00 |
| Underground service paths at service stations | 5.00-14.30 | 5.00-14.30 |
| Other buildings | 1.43-50.00 | 1.43-50.00 |
| Equipment: | ||
| Mechanical and electronic equipment for maintenance of | 10.00-25.00 | 10.00-25.00 |
| Gas station equipment | 3.33-20.00 | 3.33-20.00 |
| Pumping equipment at service stations | 5.00-25.00 | 5.00-25.00 |
| Motor vehicles | 10.00-25.00 | 10.00-25.00 |
| Freight cars, rail tankers | 25.00 | 25.00 |
|---|---|---|
| Computer hardware | 15.00-25.00 | 15.00-25.00 |
| Office equipment, furniture | 6.70-16.10 | 6.70-16.10 |
| Small tools: | 33. | 33 |
| Environmental fixed assets: | 4.00-25.00 | 4.00-25.00 |
Residual values and useful lives of an asset are reviewed annually and adjusted if necessary. Gains and losses on disposal or elimination are determined by comparing the proceeds from disposal with the carrying amount. Gains and losses on disposal are recognised in profit or loss. Available-for-sale items of property, plant and equipment are presented separately from other assets and are not depreciated in the year of the disposal. The impairment of assets is detailed in Point j2.
Investment property is property held by the Group either to earn rental income or for capital appreciation or for both. It is measured at cost less accumulated depreciation and accumulated impairment losses. Investment property is measured using the cost model. The depreciation method and rates are the same as for other tangible assets. The impairment of assets is detailed in Point j2.
The Group considers as investment property all property held by the Group that is fully or partially leased out to third parties. The Group's consideration takes into account the intended use of the property and the long-term goals pursued.
The value of the property that is leased out as a whole is recognised as investment property based on separate records. The parts of the property that are leased out and constitute an integral part of the property used for the performance of core activities is recognised as investment property based on the proportion of leased out surface area if exceeding 5 percent of the property value.
The Group holds various items of business property (land, business premises and buildings), equipment and cars under a lease. Lease conditions are subject to negotiation on a case-by-case basis and vary depending on the term and type of a lease. The Group assesses at contract inception whether a contract is, or contains, a lease. That is the case if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Group determines the lease term based on the non-cancellable period of a lease, taking into account the period covered by an option to extend the lease and the period covered by an option to terminate the lease. The Group also assesses the probability of the above options. The term of a lease depends on the type of the leased asset and range:
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. With regard to the leases of low-value assets and short-term leases, the Group records lease payments as an expense for the period to which a lease relates.
For all other leases, the Group has recognised lease liabilities and right-of-use assets. The Group recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised initially, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.
The depreciation rates of right-of-use assets are as follows:
If ownership of the leased asset transfers to the Group at the end of the lease term or the Group exercises a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in Point k) Impairment of assets.
| 2021 | 2020 | |
|---|---|---|
| Rights of use: | Lands 3.33-20.00 | 3.33-20.00 |
| Buildings | 5.00-20.00 | 5.00-20.00 |
| Equipment | 10.00-100.00 |
|---|---|
| Motor vehicles | 16.67-33.33 |
The Group applies the exemption to short-term lease recognition (i.e. to leases that have a lease term of 12 months or less and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of assets that are considered to be low value. The Group recognises lease payments on short-term leases and leases of low-value assets as expense on a straight-line basis over the lease term.
Inventories of merchandise and materials are measured at the lower of cost and net realisable value. The cost is made up of the purchase price, import duties and direct costs of purchase. Any discounts are subtracted from the purchase price. Direct costs of purchase include transportation costs, costs of loading, transhipment and unloading, transport insurance costs, goods tracking costs, costs of agency arrangements, other similar costs incurred before initial storage and borne by the purchaser. Discounts on purchase prices include discounts indicated on invoices and subsequently obtained discounts relating to a specific purchase.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The Group checks the net realisable value of inventories at the statement of financial position date. When this value is lower than their carrying amount, inventories are impaired. Damaged, expired and unusable inventories are written off regularly during the year on an item by item basis. The moving average price method is used to assess the use of inventories.
In accordance with IFRS 9, the Group made a transition from the incurred loss model to the expected loss model based on which the Group recognises not only incurred losses but also expected future losses. A financial asset is impaired if objective evidence indicates that one or more loss events have occurred that had a negative effect on the estimated future cash flows of that asset and this can be measured reliably.
Objective evidence that financial assets are impaired includes default or delinquency by a debtor, restructuring of an amount due to the Group for which the Group granted its approval, indications that a debtor will enter bankruptcy, and the disappearance of an active market for an instrument. For an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.
The Group considers evidence of impairment for receivables individually or collectively. All significant receivables are assessed individually for specific impairment. If it is assessed that the carrying amount of receivables exceeds their fair value, i.e. the collectible amount, the receivables are impaired. Receivables for which it is assumed they will not be settled by the original date of payment or up to their full amount are deemed doubtful; should court proceedings be initiated, they are deemed disputed.
Impairment assessment is based on expected credit losses (ECLs) linked to a default on receivables and loans that is possible within the next 12 months, unless there has been a significant increase in credit risk since initial recognition. In such case, the impairment assessment is determined based on the probability of default over the lifetime of the financial asset (LECL). ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The expected cash flows will include cash flows from the sale of collateral.
Impairments for ECLs are assessed in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, impairments for ECLs are provided for credit losses that result from default events that are possible within the next 12 months. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, the Group recognises a loss allowance for losses expected over the remaining life of the exposure, irrespective of the timing of the default.
Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. Receivables are grouped together by age. In assessing collective impairment, the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.
The Group considers a financial asset to be in default when contractual payments are 60 days past due. However, in certain cases the Group may also consider the credit risk to be higher when information indicates that the Group is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering contractual cash flows.
According to the categorisation of the statement of profit or loss laid down by the Companies Act, the creation and reversal of loss allowances as well as written-off receivables subsequently collected fall under operating revenue or expenses. The Group deems the categorisation of these items as either finance income or expense to be more appropriate, since operating receivables are carried as non-derivative financial assets.
The Group evaluates evidence about the impairment of loans individually for each significant loan.
Impairment losses on financial assets at fair value through other comprehensive income are recognised by transferring any cumulative loss that has been previously recognised in other comprehensive income for the period and presented in the fair value reserve to profit or loss. Any subsequent increase in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income for the period or in the fair value reserve.
Debt instruments at fair value through other comprehensive income consist solely of listed sovereign bonds classified as low credit risk investments. Under the policy selected, the Group measures expected credit losses on such instruments on a yearly basis. When there has been a significant increase in credit risk since recognition, the Group recognises a loss allowance based on the lifetime expected credit losses.
The Group reviews at each reporting date the carrying amounts of significant non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
and its fair valueless costs to sell. In assessing the asset’s value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generate cash inflows from continuing use and are largely independent of the cash inflows of other assets or groups of assets (the “cash generating unit”).
The impairment of an asset or a cash generating unit is recognised if its carrying amount exceeds its recoverable amount. Impairment is recognised in profit or loss. Impairment losses recognised in respect of a cash generating unit are allocated so as to first reduce the carrying amount of any goodwill allocated to the unit, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
In the case of points of sale, the Group identified the point-of-sale network per country as a cash-generating unit and consequently also checks for indications of impairment at the level of the point-of-sale network rather than at the level of individual points of sale. Based on an analysis of interdependence of individual points of sale, the Group determined that identifying the point-of-sale network in an individual country as a cash-generating unit was the most appropriate approach.
An impairment loss on goodwill is not reversed. For other assets, impairment losses recognised in prior periods are assessed at the end of the reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed to the extent that the asset’s increased carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation if no impairment loss had been recognised in previous years.
Goodwill that forms part of the carrying amount of an equity accounted investment in an associate or jointly controlled entity is not recognised separately and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired.
Provisions are recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. The amount of the provisions is determined as the present value of payments that the Group will be expected to make based on the contracts it has concluded and applicable legislation. To determine the amount, the Group relies on actuarial methods and on opinions provided by legal experts.
Significant provisions include:
Pursuant to the law, the collective agreement and the internal rules, the Group is obligated to pay its employees jubilee benefits and post-employment benefits on retirement, for which it has established long-term provisions. Other obligations related to employee post-employment benefits do not exist.
The provisions amount to estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is made separately for each employee by taking into account the costs of post-employment benefits on retirement and the costs of all expected jubilee benefits until retirement. The calculation using the projected unit credit method is performed by a certified actuary. Post-employment benefits on retirement and jubilee benefits are charged against the provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas the adjustment of post-employment benefits or unrealised actuarial gains or losses arising from post-employment benefits are recognised in other comprehensive income.
The business cooperation agreements entered into by Group companies with service station managers stipulate that the rights of employees at third-party managed service stations to jubilee benefits and post-employment benefits on retirement are equal to the rights of Group company employees. The contractual obligation of Group companies to reimburse the costs arising from such rights to service station managers represents a basis for the recognition of long-term provisions. The provisions amount to estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The obligation is calculated separately for each employee at a third-party managed service station by estimating the costs of post-employment benefits on retirement and the costs of all expected jubilee benefits until retirement. The calculation using the projected unit credit method is performed by a certified actuary. Reimbursed costs arising from post-employment benefits on retirement and jubilee benefits are charged against the provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas the adjustment of post-employment benefits or unrealised actuarial gains or losses arising from post-employment benefits are recognised in other comprehensive income.
There are several lawsuits that have been filed against Group companies, for which the potential need for provisions is estimated on an ongoing basis. Provisions are recognised if, as a result of a past event, companies have a present legal or constructive obligation that can be estimated reliably, and if it is probable that an outflow of economic benefits will be required to settle the obligation. Contingent liabilities are not disclosed in the financial statements because their actual existence will only be confirmed by the occurrence or non-occurrence of events in unforeseeable future, which is beyond the control of Group companies. The management of a company regularly checks if an outflow of economic benefits is probable to settle contingent liabilities. If it becomes probable, the contingent liability is restated and provisions are created for it in the financial statements as soon as the level of probability changes.
Government and other subsidies received to cover costs are recognised as a decrease in corresponding costs. Subsidies received as a compensation for assets are recognised strictly as revenue over the periods in which the costs that they are intended to compensate are incurred. The revenue, or the decrease in costs, is recognised when it can be reasonably expected it will result in receipts or where it is sufficiently certain that no unfulfilled conditions exist.
Long-term deferred revenue comprises deferred revenue from funds granted for the environmental rehabilitation of service stations, road tankers and storage facilities. Environmental assets, presented as part of the Group’s property, plant and equipment items, were approved by means of a decision of the Ministry of the Environment and Spatial Planning as part of the ownership transformation of the company Petrol d.d., Ljubljana and were recognised as such in the opening financial statements of Petrol d.d., Ljubljana as at 1 January 1993 that were prepared in accordance with the regulations governing the ownership transformation of companies. Deferred revenue is restated under revenue in proportion to the depreciation of environmental fixed assets. A portion of deferred revenue attributable to the period under 12 months is moved to current deferred revenue.
Revenue from contracts with customers is recognised once control of goods or services is transferred to a customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for such goods or services. Revenue from contracts with customers is recognised at the fair value of the consideration received or receivable, net of returns and discounts, trade discounts and volume rebates. Revenue is recorded when the customer obtains control of the goods or benefits from the services rendered.
A sale of goods is recognised when the Group delivers goods to a customer, the customer accepts the goods, and the collectability of the related receivables is reasonably assured. As of the sale, the Group no longer has control of the goods or services sold. Revenue from the sale of goods does not include duties paid upon the purchase and duties paid upon the sale of the goods. Gains on commodity forward contracts are also recognised as revenue from the sale of goods.
A sale of services is recognised in the accounting period in which the services are rendered, by reference to the completion of the transaction assessed on the basis of the actual service provided as a proportion of total services to be provided. For long-term projects, the revenue from services rendered is recognised based on the stage of completion as at the balance sheet date. Under this method, the revenue is recognised in the accounting period in which the services are rendered.
The Group offers Petrol Club card holders certain discounts on their purchases at service stations or on the supply of gas and electricity, based on the points collected from their previous purchases. As some of the discounts can be used in the following year, the Group defers them to match its revenue with the expenses incurred to generate the revenue.
In instalment sales, the Group recognises separately revenue from the sale of goods and finance income deferred over the entire contract term. Finance income to total purchase price ratio is assessed based on discounted future cash flows flowing to the Group based on the sale.
The Group has entered into contracts with customers for the sale of merchandise in the name and on behalf of suppliers. Based on these contracts, the Group delivers goods to customers, receiving in exchange the difference between the final selling price and the cost negotiated in advance. The difference is recognised as sales revenue.
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. The Group’s contract assets include accrued revenue from goods and services delivered to customers.
A receivable is the Group’s right to an amount of consideration that is unconditional (i.e. only the passage of time is required before payment of the consideration is due). See accounting policies on the recognition of financial assets in the section Financial assets.
A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration. The Group’s contract liabilities include the liabilities from collaterals received, the loyalty scheme and granted discounts. Contract liabilities are recognised as revenue when the Group satisfies its performance obligation.
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration estimated by the Group at contract inception as constrained remains constrained until it is highly probable that a significant revenue reversal in the amount of revenue recognised will not occur. Variable consideration refers to volume rebates granted to customers.
The Group provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. To estimate the variable consideration for the expected future rebates, the Group applies the most likely amount method for contracts with the expected value method. The selected method that best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in the contract. The Group then applies the requirements on constraining estimates of variable consideration and recognises a refund liability for the expected future rebates.
Finance income comprises interest income on financial assets, gains on the disposal of financial assets at fair value through other comprehensive income, written-off or impaired receivables subsequently collected, changes in the fair value of financial assets at fair value through profit or loss, foreign exchange gains and gains on hedging instruments that are recognised in profit or loss. Interest income is recognised as it accrues using the effective interest method.
Taxes comprise current tax and deferred tax liabilities. Taxes are recognised in profit or loss except to the extent that they relate to business combinations or items recognised directly in other comprehensive income.
Current tax liabilities are based on the taxable profit for the year. Taxable profit differs from the net profit reported in the statement of profit or loss as it excludes revenue and expense items taxable or deductible in other years and other items that are never subject to taxation or deduction. The Group’s current tax liabilities are calculated using the tax rates effective on the reporting date.
Deferred tax is reported in its entirety using the statement of financial position liability method for temporary differences between the tax base of assets and liabilities and their carrying amounts in the separate financial statements of Group companies. Deferred tax is determined using the tax rates (and laws) that are expected to apply when a deferred tax asset is realised or a deferred tax liability is settled.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which they can be utilised in the future.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
A number of the Group’s accounting policies require the determination of fair value of both financial and non-financial assets and liabilities, either for measurement of individual assets (measurement method or business combination) or for additional fair value disclosure.
Fair value is the amount for which an asset could be sold or a liability exchanged between knowledgeable, willing parties in an arm’s length transaction. The Group determines the fair value of financial instruments by taking into account the following fair value hierarchy:
The Group uses quoted prices as the basis for the fair value of financial instruments. If a financial instrument is not quoted on a regulated market or the market is considered as inactive, the Group uses Level 2 and Level 3 inputs to determine the fair value of a financial instrument. Where applicable, further information about the assumptions made when determining fair values is disclosed in the notes specific to that asset or liability of the Group.
The fair value of intangible assets is based on the discounted cash flows expected to be derived from the use or eventual sale of the assets.
The fair value of property, plant and equipment is the same as their market value. The market value of property is the estimated amount for which a property could be sold on the date of valuation and after proper marketing. The market value of equipment is based on market prices for similar items.
The value of investment property is assessed by considering the aggregate of the estimated cash flows expected to be received from renting out the property. A yield that reflects the specific risks is included in the property valuation based on discounted net annual cash flows.
The fair value of inventories acquired in business combinations is determined based on their expected selling price in the ordinary course of business less the estimated costs of sale.
The fair value of financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income is determined by reference to the above fair value hierarchy for financial instruments.
The fair value of receivables and loans is calculated as the present value of future cash flows, discounted at the market rate of interest at the end of the reporting period. The estimate takes into account the credit risk associated with these financial assets.
For reporting purposes, fair value is calculated using the present value of future payments of the principal and interest, discounted at the market rate of interest at the end of the reporting period.
The Group presents basic and diluted earnings per share for its ordinary shares. Basic earnings per share are calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares during the period. Diluted earnings per share are calculated by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares during the period for the effects of all potential ordinary shares, which comprise convertible bonds and share options granted to employees. Because the Group has no convertible bonds or share options granted to employees, its basic earnings per share are the same as its diluted earnings per share.
An operating se
gment is a component of the Group thatengages in business a
ctivities from
which it earns revenueand incurs expenses that relate to transactions with anyof the Group’s
other components. Segments differfrom one another in terms o
f risks andreturns. Their results
are reviewed reg
ularly by the management to make decisions about resources to be allocated
to asegment and assess the Group’s performance.
The Group uses thefollowing segments in the preparation and presentation of its financial
statements:
−sales,
−energy and environmental solutions, and production.
t.Statement of cash flows
The section of the state
ment of cash flows referring to operating activities has been prepared
using the indirect me
thod based on data derived from the statement of financial position as at
31 December2020 and 31 December 2021 and data derived from the s
tatement of profit or
loss for the period January to December 2021. Default interest paid and received in connection
with operating receivables is all
ocated to cash flow
s from operating activities.Interest on loans,
and dividends paidand received are allocated to cash flows from financin
g activities.
4. Significant accounting policies of the Company
The Compan
y applied the accountingpolicies set outbelow consistently to all periods
presented in these financial statements.
a. Foreigncurrency translation
Transactions i
n foreign currencie
s are translatedto the functionalcurrency at the exchange
rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the e
nd of the reporting period are retranslated to the functional currency a
t the
exchange rate atthat date. Foreign exchange gains or losses are the d
ifference between
amortised cost inthe functional currency at the beginning of the period, adjusted for effective
interest and pay
ments during the period, and the amortised cost in foreigncurrency translated
at the exchangerate at the end of the reporting period. Non-monetary assets and liabilities
denominated inforeign currencies that are measured at fair value are retranslated to the
functional currencyat the exchangerate at the date that the fair value was determined.Non-
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 216
monetary items denominated in a foreign currency and measured at historical cost are
translatedto the functional currency using theexchange rate at the date of the transa
ction.
Foreign exchangedifferences are recognised in profitor loss.
b. Investments in s
ubsidiaries
In the Company’sfinancial statements, investments in subsidiaries are accountedfor at cost.
The Company recognises income from an investment only to the extent that it originates from
a distribution ofaccumulated profits of the investee arising after the date of acquisition.
The impairmentof financial assets is detailed in Point k1.
c.Investments in associates and jointly controlled entities
The Company measures investments i
n associates and jointly controlled entities at cost.
The impairmentof financial assets is detailed in Point k1.
d. Financial assets
The Company’sfinancial assets include cash and cash equivalents, receivables and loans,
and investments. The Company’s investments include investments in jointly controlledentities,
investments in a
ssociates and investments in financial instruments. The accounting policies
for investments in subsidiaries, jointly controlled entities and associates are presented in
Points b and c
.
The Company initially recognises loans, receivables and deposits on the date that they are
originated. All other financial assetsare recognised initially on the trade date,which is the date
that the Companybecomes a party to the contractual provisions of the instrument
.
The Company derecognises a financial asset when the contractual rights to the cash flows
from the assetexpire or when it transfers the rights to receive the contractualcash flows on
the financial asset in a transactio
n in which substantially all the risks and rewards of ownership
of the financial asset are transferred.
Upon initial reco
gnition, the Company’s financial instruments are classified into one the
following categories: financial assets measured atamortised cost, financial assets atfair value
through other comprehensive income and financial assetsat fair value through profit or loss.
The classi
fication depends on the selected asset management business model and on whether
the Company’s contractual cash flows fromfinancial instruments are solely payments of
principal andinterest on the principal amount outstanding. With the exception of operating
receivablesthat do not have a significant financin
g component, theCompany’s financial assets
are uponinitial recognition measured at fair value plus transaction costs.Operating receivables
that do not have a significant financing component are measured at transaction pric
e
determined according to theprovisions of IFRS 15. See Revenue from contracts with
customers, Po
int n of the accounting policies.
The impairmentof financial assets is detailed in Point k1.
d1. Cash and cashequivalents
Cash and cash equivalents comprise cash balances, bank depositswith maturities of three
months or less
, and other current andhighly liquid investments with original maturities of three
months or less.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 217
d2. Financial assets at fair value through profi
t or loss
Financial assets at fair valuethrough profit or loss include financial assets held for trading,
financial assets at fair value through profit or loss and financialassets to b
e measured at fair
value.
Financial assets are classified as held for trading i
f they are acquired for the purpose o
f selling
or repurchasing in the near term. Derivatives are classifiedas held for trading unless they are
designated as effective hedging instruments.
Financialassets that generate cash flo
ws and are not solely payments of principal and interest
are classified and measured at fairvalue through profit or loss irrespective ofthe business
model.
In the statement of financial position, financial assets at fair value throug
h profit or loss are
measured at fair valu
e, including net changes therein which are recognised in profit or loss.
This category also includes derivatives and listed equity investments which the Company had
not irrevocably e
lected to classify at fair value through other comprehensiv
e income. Dividends
on listed equity inves
tments are also recognised as other income in the statement of profit or
loss when the Company’s right of payment hasbeen established.
d3. Financialassets at fair value through other comprehensive income (debt
instruments)
Financialassets atfair value through othe
r comprehensive inco
me that have thenature of a
debt instrume
nt are the financial assetsheld by the Company under itsbusiness model for
collecting contractual cash flows that are solely payments of principal and interest on the
principal amountoutstanding, and for sale.
The Company’s debt instrumen
ts at fair value through other comprehensive income comprise
Financial assets at fair value through other comprehensive income that have the nature of an equity instrument are the financial assets that meet the definition of equity under IAS 32 Financial Instruments for which the Company elected to classify them irrevocably as equity instruments designated at fair value through other comprehensive income and which are not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the Company’s right of payment has been established.
The Company elected to classify irrevocably its non-listed equity investments under this category.
The Company’s financial assets at amortised cost include financial assets held under its business model in order to collect contractual cash flows when the cash flows are solely payments of principal and interest on the principal amount outstanding. The Company’s financial assets at amortised cost include loans, receivables and non-listed debt securities.
Depending on their maturity, they are classified as current financial assets (maturity of up to 12 months from the date of the statement of financial position) or non-current financial assets (maturity of more than 12 months from the date of the statement of financial position).
Financial assets measured at amortised cost are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method, less any impairment losses. Gains and losses are recognised in profit or loss when reversed, changed or impaired.
The Company’s financial liabilities include liabilities arising from debt securities issued and loans received. Upon initial recognition, they are classified as financial liabilities at fair value through profit or loss, loans received or operating liabilities. The Company initially recognises debt securities issued on the date that they are originated. All other financial liabilities are recognised initially on the trade date, or when the Company becomes a party to the contractual provisions of the instrument. Except for the loans received, all financial liabilities are initially recognised at fair value. The loans received are measured at amortised cost using the effective interest rate method. Depending on their maturity, they are classified as current financial liabilities (maturity of up to 12 months from the date of the statement of financial position) or non-current financial liabilities (maturity of more than 12 months from the date of the statement of financial position).
Upon the derecognition of a financial liability and amortisation using the effective interest rate method, all gains or losses are recognised in the statement of profit or loss. The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.
Derivative financial instruments are initially recognised at fair value. Attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.
When a derivative is designated as a hedging instrument in the hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income for the period and presented in the hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognised directly in profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting or the hedging instrument is sold, terminated or exercised, then the Company is expected to discontinue hedge accounting. The cumulative gain or loss recognised in other comprehensive income remains presented in the hedging reserve as long as the forecast transaction does not affect profit or loss. If the forecast transaction is no longer expected to occur, then the balance in other comprehensive income is recognised immediately in profit or loss. In other cases, the amount recognised in other comprehensive income is transferred to profit or loss in the same period in which the hedged item affects profit or loss.
The effects of other derivatives not designated as a hedging instrument in the hedge of the variability in cash flows or not attributable to a particular risk associated with a recognised asset or liability are recognised in profit or loss.
The Company uses the following derivative financial instruments:
The Company purchases petroleum products in US dollars but sells them primarily in euros. Because purchases and sales are made in different currencies, mismatches occur between purchase and selling prices that are hedged against using forward contracts. The fair value of forward contracts at the date of the statement of financial position is determined by means of publicly available information about the value of forward contracts in a regulated market on the reporting date for all outstanding contracts. Gains and losses are recognised in profit or loss as other income or expenses.
When petroleum products and electricity are purchased or sold, mismatches occur between purchase and selling prices that are hedged against using commodity derivatives. The fair value of outstanding commodity derivatives as at the date of the statement of financial position is determined using publicly available information about the market value of commodity derivatives as at the date of the statement of financial position as issued by relevant institutions. Gains and losses are recognised in profit or loss as other income or expenses.
The gain or loss on the instrument is recognised directly in comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as other finance income or expense.
Under IFRS 9, commodity forward contracts the purpose of which is not physical purchase or delivery of goods, their fulfilment leading to physical settlement only, are treated as a financial instrument and are recognised and measured in accordance with IFRS 9.
Forward purchase and sale transactions concluded to ensure physical settlement of goods are treated outside the scope of IFRS 9 when the contract comprising those transactions is treated as being part of the ordinary course of business to ensure physical delivery of goods, provided that the following conditions are met:
As commodity forward contracts do not meet the above conditions, the Company treats them as financial instruments. In the financial statements, revenue from the sale of goods and the cost of goods sold arising from commodity forward transactions are recognised at fair value. Outstanding commodity forward contracts are restated to fair value at each balance-sheet date, and the effects of their restatement to fair value are recognised in the statement of profit or loss as other operating revenue or expenses.
The called-up capital of the company Petrol d.d., Ljubljana takes the form of share capital, the amount of which is defined in the Company’s articles of association. It is registered with the Court and paid up by owners. Dividends on ordinary shares are recognised as a liability in the period in which they were approved by the General Meeting.
Legal reserves comprise shares of profit from previous years that have been retained for a dedicated purpose, mainly for offsetting eventual future losses.
The fair value reserve comprises the effect of the absorption of Instalacija d.o.o. in 2013, the effects of valuing financial assets at fair value through other comprehensive income and actuarial gains and losses related to the provisions for employee post-employment and other long-term benefits.
The hedging reserve comprises the effect of changes in the fair value of derivative financial instruments designated as effective in hedging against the variability in cash flows.
If the Company acquires an ownership interest, the amount paid, including transaction costs less tax, is deducted from total equity in the form of own shares until such shares are cancelled, reissued or sold. If own shares are later sold or reissued, the consideration received is included in capital surplus net of transaction costs and related tax effects.
Goodwill arising on the acquisition of a subsidiary by the Company is determined by adopting the value of goodwill that had been recognised at the Group level as a result of this business combination. As the acquisition takes place, the difference between the net assets of the acquired company plus goodwill recognised at the Group level and the investment in the acquiree is determined. The difference is recognised in equity in such a way that equity components which are not eliminated by the Group when consolidating the subsidiary but exist in its records before the business combination takes place are recognised in other revenue reserves, with the remaining difference being recognised in the fair value reserve.
Subsequent to initial recognition, the Company checks annually for factors which could adversely affect the future cash flows of a cash-generating unit acquired in a business combination. In the financial statements, a decrease in the value of a cash-generating unit is recognised as the impairment of goodwill or of the assets of a cash-generating unit. It is charged to current profit or loss. Goodwill is measured at cost less any accumulated impairment losses.
The Company recognises an intangible non-current asset arising from a service concession arrangement when it has a right to charge for usage of the concession infrastructure. An intangible non-current asset received as consideration for providing construction or upgrade services in a service concession arrangement is measured at fair value upon initial recognition. Subsequent to initial recognition, the intangible non-current asset is measured at cost less accumulated amortisation and any accumulated impairment losses. The life of the right is linked to the duration of the concession agreement.
Development of software solutions involves the design and production of new or substantially improved software applications. The Company capitalises the costs of developing software solutions to the extent that the following conditions are met: the costs can be measured reliably, the development of a software solution is technically and commercially feasible, future economic benefits are probable, the Company has sufficient resources to complete development and intends to use the software solution. The capitalised costs of developing software solutions include direct labour costs and other costs that are directly attributable to preparing the asset for its intended use.
Other intangible fixed assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the assets. Borrowing costs directly attributable to the acquisition or production of a qualifying asset are recognised as part of the cost of that asset. Intangible fixed assets are subsequently measured using the cost model. In addition to goodwill and rights arising from concessions for the construction of gas networks and distribution of natural gas, which are described below, intangible fixed assets comprise mostly software.
Subsequent expenditure relating to intangible assets is recognised in the carrying amount of that asset if it is probable that the future economic benefits embodied within the part of this asset will flow to the Company and the cost can be measured reliably. All other expenditure is recognised in profit or loss as incurred.
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, with the exception of land, which is measured at cost less accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the assets. Parts of an item of property, plant and equipment having different useful lives are accounted for as separate items of property, plant and equipment. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are recognised as part of the cost of that asset. Items of property, plant and equipment are subsequently measured using the cost model.
| (in %) | 2021 | 2020 |
|---|---|---|
| Right to use concession infrastructure | 2.00-20.00 | 2.00-20.00 |
| Material and other rights | 10.00-33.33 | 10.00-33.33 |
| Contracts with customers | 20.00 | 20.00 |
| Other rights | 3.33-20.00 | 3.33-20.00 |
Subsequent expenditure relating to property, plant and equipment is recognised in the carrying amount of that asset if it is probable that the future economic benefits embodied within the part of this asset will flow to the Company and the cost can be measured reliably. All other expenditure (e.g. day-to-day servicing) is recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis, taking into account the useful life of each part (component) of an item of property, plant and equipment. Leased assets are depreciated by taking into account the lease term and their useful lives. Land is not depreciated. Depreciation begins when the asset is available for use. Construction work in progress is not depreciated.
| (in %) | 2021 | 2020 |
|---|---|---|
| Buildings: | ||
| Buildings at service stations | 2.50-10.00 | 2.50-10.00 |
| Above-ground and underground reservoirs | 2.85-50.00 | 2.85-50.00 |
| Underground service paths at service stations | 5.00-14.30 | 5.00-14.30 |
| Other buildings | 1.43-50.00 | 1.43-50.00 |
| Equipment: | ||
| Mechanical and electronic equipment for maintenance | 10.00-25.00 | 10.00-25.00 |
| Gas station equipment | 3.33-20.00 | 3.33-20.00 |
| Pumping equipment at service stations | 5.00-25.00 | 5.00-25.00 |
| Motor vehicles | 10.00-25.00 | 10.00-25.00 |
| Freight cars, rail tankers | 25.00 | 25.00 |
| Computer hardware | 15.00-25.00 | 15.00-25.00 |
| Office equipment, furniture | 6.70-16.10 | 6.70-16.10 |
| Small tools: | 33.33 | 33.33 |
| Environmental fixed assets | 4.00-25.00 | 4.00-25.00 |
Environmental tangible fixed assets acquired under the scheme for the creation and use of revenue deferred for the purpose of environmental rehabilitation are carried and presented separately. More information about deferred revenue relating to environmental fixed assets is available in Point m.
Investment property is property held by the Company either to earn rental income or for capital appreciation or for both. It is measured at cost less accumulated depreciation and accumulated impairment losses. Investment property is measured using the cost model. The depreciation method and rates are the same as for other tangible assets. The impairment of assets is detailed in Point k2.
| (in %) | 2021 | 2020 |
|---|---|---|
| Buildings: | ||
| Buildings at service stations | 2.50-10.00 | 2.50-10.00 |
| Above-ground and underground reservoirs | 2.85-50.00 | 2.85-50.00 |
| Underground service paths at service stations | 5.00-14.30 | 5.00-14.30 |
| Other buildings | 1.43-50.00 | 1.43-50.00 |
The Company considers as investment property all property held by the Group that is fully or partially leased out to third parties. The Group's consideration takes into account the intended use of the property and the long-term goals pursued.
The Company holds various items of business property (land, business premises and buildings), equipment and cars under a lease. Lease conditions are subject to negotiation on a case-by-case basis and vary depending on the term and type of a lease. The Company assesses at contract inception whether a contract is, or contains, a lease. That is the case if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company determines the lease term based on the noncancellable period of a lease, taking into account the period covered by an option to extend the lease and the period covered by an option to terminate the lease. The Company also assesses the probability of the above options. The term of a lease depends on the type of the leased asset and range:
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. With regards to the leases of low-value assets and short-term leases, the Company records lease payments as an expense for the period to which a lease relates.
For all other leases, the Company has recognised lease liabilities and right-of-use assets. The Company recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised initially, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.
| Asset Type | 2021 (%) | 2020 (%) |
|---|---|---|
| Rights of use: Lands | 3.33-20.00 | 3.33-20.00 |
| Buildings | 5.00-20.00 | 5.00-20.00 |
| Equipment | 10.00-100.00 | 10.00-100.00 |
| Motor vehicles | 16.67-33.33 | 16.67-33.33 |
If ownership of the leased asset transfers to the Company at the end of the lease term or the Company exercises a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in Point k) Impairment of assets.
Lease liabilities are recognised at the present value of lease payments to be made over the lease term, which corresponds to a discounted value of lease payments to be paid by the Company over the lease term under the lease contract while also taking into account the Group’s borrowing rate. The lease payments include fixed payments, less any lease incentives receivables, and variable lease payments. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
The Company has recognised its lease liabilities in item lease liabilities, as disclosed in Point e. At lease inception, lease liabilities correspond to the value of right-of-use assets and begin to decrease as lease payments are made, with the value of right-of-use assets decreasing in line with the depreciation charge over the lease term. Depreciation rates are estimated by taking into account the term of a lease. Interest expense is charged to finance expenses for the period.
The Company applies the exemption to short-term lease recognition (i.e. to leases that have a lease term of 12 months or less and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of assets that are considered to be low value. The Company recognises lease payments on short-term leases and leases of low-value assets as expense on a straight-line basis over the lease term.
Inventories of merchandise and materials are measured at the lower of cost and net realisable value. The cost is made up of the purchase price, import duties and direct costs of purchase. Any discounts are subtracted from the purchase price. Direct costs of purchase include transportation costs, costs of loading, transhipment and unloading, transport insurance costs, goods tracking costs, costs of agency arrangements, other similar costs incurred before initial storage and borne by the purchaser.
Discounts on purchase prices include discounts indicated on invoices and subsequently obtained discounts relating to a specific purchase. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The Company checks the net realisable value of inventories at the statement of financial position date. When this value is lower than their carrying amount, inventories are impaired. Damaged, expired and unusable inventories are written off regularly during the year on an item by item basis.
The moving average price method is used to assess the use of inventories.
In accordance with IFRS 9, the Company made a transition from the incurred loss model to the expected loss model based on which the Company recognises not only incurred losses but also expected future losses.
A financial asset is impaired if objective evidence indicates that one or more loss events have occurred that had a negative effect on the estimated future cash flows of that asset and this can be measured reliably. Objective evidence that financial assets are impaired include default or delinquency by a debtor, restructuring of an amount due to the Company for which the Company granted its approval, indications that a debtor will enter bankruptcy, and the disappearance of an active market for an instrument. For an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.
The Company considers evidence of impairment for receivables individually or collectively. All significant receivables are assessed individually for specific impairment. If it is assessed that the carrying amount of receivables exceeds their fair value, i.e. the collectible amount, the receivables are impaired. Receivables for which it is assumed they will not be settled by the original date of payment or up to their full amount are deemed doubtful; should court proceedings be initiated, they are deemed disputed.
receivables and loans that is possible within the next 12 months, unless there has been a significant increase in credit risk since initial recognition. In such case, the impairment assessment is determined based on the probability of default over the lifetime of the financial asset (LECL). ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive. The expected cash flows will include cash flows from the sale of collateral.
Impairments for ECLs are assessed in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, impairments for ECLs are provided for credit losses that result from default events that are possible within the next 12 months. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, the Company recognises an allowance for losses expected over the remaining life of the exposure, irrespective of the timing of the default.
Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. Receivables are grouped together by age. In assessing collective impairment, the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.
The Company considers a financial asset to be in default when contractual payments are 60 days past due. However, in certain cases the Company may also consider the credit risk to be higher when information indicates that the Company is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering contractual cash flows.
According to the categorisation of the statement of profit or loss laid down by the Companies Act, the creation and reversal of loss allowances as well as written-off receivables subsequently collected fall under operating revenue or expenses. The Company deems the categorisation of these items as either finance income or expense to be more appropriate, since operating receivables are carried as non-derivative financial assets.
The Company evaluates evidence about the impairment of loans individually for each significant loan.
Impairment losses on financial assets at fair value through other comprehensive income are recognised by transferring any cumulative loss that has been previously recognised in other comprehensive income for the period and presented in the fair value reserve to profit or loss. Any subsequent increase in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income for the period or in the fair value reserve.
Debt instruments at fair value through other comprehensive income consist solely of listed sovereign bonds classified as low credit risk investments. Under the policy selected, the Company measures expected credit losses on such instruments on a yearly basis. When there has been a significant increase in credit risk since recognition, the Company recognises a loss allowance based on the lifetime expected credit losses.
Based on internal and external sources of information, the Company verifies on a regular basis whether there is an indication that investments in subsidiaries may be impaired. If such indications exist, the Company performs an impairment test based on an estimated value to recognise the impairment of investments in subsidiaries. An impairment loss is measured as the difference between the estimated value and the carrying amount of the investment. The estimated values are calculated using valuation techniques and are based on the past operations of subsidiaries and most recent available financial results, the management’s expectations for the future and market assumptions.
The Company reviews at each reporting date the carrying amounts of significant non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing the asset’s value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generate cash inflows from continuing use and are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The impairment of an asset or a cash-generating unit is recognised if its carrying amount exceeds its recoverable amount. Impairment is recognised in profit or loss.
Impairment losses recognised in prior periods are assessed at the end of the reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed to the extent that the asset’s increased carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation if no impairment loss had been recognised in previous years.
In the case of points of sale, the Company identified the point-of-sale network per country as a cash-generating unit and consequently also checks for indications of impairment at the level of the point-of-sale network rather than at the level of individual points of sale. Based on an analysis of interdependence of individual points of sale, the Company determined that identifying the point-of-sale network in an individual country as a cash-generating unit was the most appropriate approach.
Provisions are recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. The amount of the provisions is determined as the present value of payments that the Company will be expected to make based on the contracts it has concluded and applicable legislation. To determine the amount, the Company relies on actuarial methods and on opinions provided by legal experts.
Significant provisions include:
Pursuant to the law, the collective agreement and internal rules, the Company is obligated to pay its employees jubilee benefits and post-employment benefits on retirement, for which it has established long-term provisions. Other obligations related to employee post-employment benefits do not exist.
calculation using the projected unit credit method is performed by a certified actuary.
Postemployment benefits on retirement and jubilee benefits are charged against the provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas the adjustment of postemployment benefits or unrealised actuarial gains or losses arising from post-employment benefits are recognised in other comprehensive income.
The business cooperation agreements entered into by the Company with service station managers stipulate that the rights of employees at third-party managed service stations to jubilee benefits and post-employment benefits on retirement are equal to the rights of the Company’s employees. The contractual obligation of the Company to reimburse the costs arising from such rights to employees at third-party managed service stations represents the basis for recognition of long-term provisions. The provisions amount to estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The obligation is calculated separately for each employee at a third-party managed service station by estimating the costs of post-employment benefits on retirement and the costs of all expected jubilee benefits until retirement. The calculation using the projected unit credit method is performed by a certified actuary. Reimbursed costs arising from post-employment benefits on retirement and jubilee benefits are charged against the provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas the adjustment of postemployment benefits or unrealised actuarial gains or losses arising from post-employment benefits are recognised in other comprehensive income.
There are several lawsuits that have been filed against the Company, for which the potential need for provisions is estimated on an ongoing basis. Provisions are recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and if it is probable that an outflow of economic benefits will be required to settle the obligation. Contingent liabilities are not disclosed in the financial statements because their actual existence will only be confirmed by the occurrence or non-occurrence of events in unforeseeable future, which is beyond the Company’s control. The Company’s management regularly checks if an outflow of economic benefits is probable to settle contingent liabilities. If it becomes probable, the contingent liability is restated and provisions are created for it in the financial statements as soon as the level of probability changes.
The Company creates provisions for onerous contracts when the market situation causes the costs of meeting contractual obligations to exceed the expected economic benefit of long-term contracts. The provisions are determined based on estimated purchasing and selling price levels and quantities, taking into account the costs to sell and general and administrative costs. The Company determines the amount of the provisions based on estimated economic benefits and the costs of services under long-term contracts for the leasing of capacities, taking into account the utilisation rate of transmission capacities. The provisions created by the Company for long-term contracts for the leasing of transmission and storage capacities cover the entire contract period.
Government and other subsidies received to cover costs are recognised as a decrease in corresponding costs. Subsidies received as a compensation for assets are recognised strictly as revenue over the periods in which the costs that they are intended to compensate are incurred. The revenue, or the decrease in costs, is recognised when it can be reasonably expected it will result in receipts or where it is sufficiently certain that no unfulfilled conditions exist.
Long-term deferred revenue comprises deferred revenue from funds granted for the environmental rehabilitation of service stations, road tankers and storage facilities. Environmental assets, presented as part of the Company’s property, plant and equipment items, were approved by means of a decision of the Ministry of the Environment and Spatial Planning as part of the ownership transformation of the company Petrol d.d., Ljubljana and were recognised as such in the opening financial statements of Petrol d.d., Ljubljana as at 1 January 1993 that were prepared in accordance with the regulations governing the ownership transformation of companies. Deferred revenue is restated under revenue in proportion to the depreciation of environmental fixed assets. A portion of deferred revenue attributable to the period under 12 months is moved to current deferred revenue.
Revenue from contracts with customers is recognised once control of goods or services is transferred to a customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for such goods or services. Revenue from contracts with customers is recognised at the fair value of the consideration received or receivable, net of returns and discounts, trade discounts and volume rebates. Revenue is recorded when the customer obtains control of the goods or benefits from the services rendered.
A sale of goods is recognised when the Company delivers goods to a customer, the customer accepts the goods, and the collectability of the related receivables is reasonably assured. As of the sale, the Company no longer has control of the goods or services sold. Revenue from the sale of goods does not include duties paid upon the purchase and duties paid upon the sale of goods. Gains on commodity forward contracts are also recognised as revenue from the sale of goods.
A sale of services is recognised in the accounting period in which the services are rendered, by reference to the completion of the transaction assessed on the basis of the actual service provided as a proportion of total services to be provided. For long-term projects, the revenue from services rendered is recognised based on the stage of completion as at the balance sheet date. Under this method, the revenue is recognised in the accounting period in which the services are rendered.
The Company offers Petrol Club card holders certain discounts on their purchases at service stations or on the supply of gas and electricity, based on the points collected from their previous purchases. As some of the discounts can be used in the following year, the Company defers them to match its revenue with the expenses incurred to generate the revenue.
The Company recognises separately revenue from the sale of goods and finance income deferred over the entire contract term. Finance income to total purchase price ratio is assessed based on discounted future cash flows flowing to the Company based on the sale.
The Group has entered into contracts with customers for the sale of merchandise in the name and on behalf of suppliers. Based on these contracts, the Company delivers goods to customers, receiving in exchange the difference between the final selling price and the cost negotiated in advance. The difference is recognised as sales revenue.
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. The Company’s contract assets include accrued revenue from goods and services delivered to customers.
A receivable is the Company’s right to an amount of consideration that is unconditional (i.e. only the passage of time is required before payment of the consideration is due). See accounting policies on the recognition of financial assets in the section Financial assets.
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration. The Company’s contract liabilities include the liabilities from collaterals received, the loyalty scheme and granted discounts. Contract liabilities are recognised as revenue when the Company satisfies its performance obligation.
If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration estimated by the Company at contract inception as constrained remains constrained until it is highly probable that a significant revenue reversal in the amount of revenue recognised will not occur. Variable consideration refers to volume rebates granted to customers.
The Company provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. To estimate the variable consideration for the expected future rebates, the Company applies the most likely amount method for contracts with the expected value method. The selected method that best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in the contract. The Company then applies the requirements on constraining estimates of variable consideration and recognises a refund liability for the expected future rebates.
Finance income comprises interest income on financial assets, gains on the disposal of financial assets at fair value through other comprehensive income, written-off or impaired receivables subsequently collected, changes in the fair value of financial assets at fair value through profit or loss, foreign exchange gains and gains on hedging instruments that are recognised in profit or loss. Interest income is recognised as it accrues using the effective interest method.
Dividend income is recognised in the Company’s statement of profit or loss on the date that a shareholder’s right to receive payment is established. If the fair value of the net assets acquired in a merger by absorption exceeds the carrying amount of the investment in the absorbed company, the difference is carried as finance income for the period in which the absorption took place.
Finance expenses comprise borrowing costs (unless capitalised), foreign exchange losses, changes in the fair value of financial assets at fair value through profit or loss, impairment losses recognised on financial assets, loss allowances for receivables and losses on hedging instruments that are recognised in profit or loss. Borrowing costs are recognised in profit or loss using the effective interest method.
Taxes comprise current tax and deferred tax liabilities. Taxes are recognised in profit or loss except to the extent that they relate to business combinations or items recognised directly in other comprehensive income.
Current tax liabilities are based on the taxable profit for the year. Taxable profit differs from the net profit reported in the statement of profit or loss as it excludes revenue and expense items taxable or deductible in other years and other items that are never subject to taxation or deduction. The Company’s current tax liabilities are calculated using the tax rates effective on the reporting date.
Deferred tax is accounted for in its entirety using the statement of financial position liability method for temporary differences between the tax base of assets and liabilities and their carrying amounts in the Company’s separate financial statements. Deferred tax is determined using the tax rates (and laws) that are expected to apply when a deferred tax asset is realised or a deferred tax liability is settled.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which they can be utilised in the future.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current corporate income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
A number of the Company’s accounting policies require the determination of the fair value of both financial and non-financial assets and liabilities, either for the measurement of individual assets (measurement method or business combination) or for additional fair value disclosure. Fair value is the amount for which an asset could be sold or a liability exchanged between knowledgeable, willing parties in an arm’s length transaction. The Company determines the fair value of financial instruments by taking into account the following fair value hierarchy:
Determining fair values is disclosed in the notes specific to that asset or liability of the Company. The methods of determining the fair values of individual groups of assets for measurement or reporting purposes are described below.
The fair value of intangible assets is based on the discounted cash flows that are expected to be derived from the use and eventual sale of the assets.
The fair value of property, plant and equipment recognised as a result of business combinations is the same as their market value. The market value of property is the estimated amount for which a property could be sold on the date of valuation and after proper marketing. The market value of equipment is based on the market prices for similar items.
The value of investment property is assessed by considering the aggregate of the estimated cash flows expected to be received from renting out the property. A yield that reflects the specific risks is included in the property valuation based on the discounted net annual cash flows.
The fair value of inventories acquired in business combinations is determined based on their expected selling price in the ordinary course of business less the estimated costs of sale.
The fair value of financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income is determined by reference to the above fair value hierarchy for financial instruments.
The fair value of investments in associates and jointly controlled entities is determined by reference to the above fair value hierarchy for financial instruments. The methods of determining the value of and input assumptions for each investment are specifically presented in the disclosures.
The fair value of the receivables and loans is calculated as the present value of future cash flows, discounted at the market rate of interest at the end of the reporting period. The estimate takes into account the credit risk associated with these financial assets.
For reporting purposes, fair value is calculated using the present value of future payments of the principal and interest, discounted at the market rate of interest at the end of the reporting period.
The Company presents basic and diluted earnings per share for its ordinary shares. The basic earnings per share are calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares during the period. Diluted earnings per share are calculated by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares during the period for the effects of all potential ordinary shares, which comprise convertible bonds and share options granted to employees. Because the Company has no convertible bonds or share options granted to employees, its basic earnings per share are the same as its diluted earnings per share.
The section of the statement of cash flows referring to operating activities has been prepared using the indirect method based on data derived from the statement of financial position as at 31 December 2020 and 31 December 2021 and data derived from the statement of profit or loss for the period January to December 2021. Default interest paid and received in connection with operating receivables is allocated to cash flows from operating activities. Interest on loans, and dividends paid and received are allocated to cash flows from financing activities.
The standards and interpretations disclosed below have been issued but were not yet effective up to the date of issuance of the consolidated/separate financial statements. The Group/Company intends to adopt these standards and interpretations, if applicable, in the preparation of its financial statements when they become effective. The Group/Company did not adopt any of the standards early.
The amendments address an acknowledged inconsistency between the requirements in the IFRS 10 and those in the IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. The amendments have not yet been endorsed by the EU. The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect the presentation of liabilities in the statement of financial position and do not change the existing requirements around the measurement or timing of the recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also, the amendments clarify the classification requirements for debt that may be settled by the company issuing own equity instruments.
In November 2021, the Board issued an exposure draft (ED), which clarifies how to treat liabilities that are subject to covenants to be complied with, at a date subsequent to the reporting period.
In particular, the Board proposes narrow scope amendments to the IAS 1 that effectively reverse the 2020 amendments requiring entities to classify as current, liabilities subject to covenants that must only be complied with within the next twelve months after the reporting period, if those covenants are not met at the end of the reporting period. Instead, the proposals would require entities to present separately all non-current liabilities subject to covenants to be complied with only within twelve months after the reporting period. Furthermore, if entities do not comply with such future covenants at the end of the reporting period, additional disclosures will be required.
The proposals will become effective for annual reporting periods beginning on or after 1 January 2024 and will need to be applied retrospectively in accordance with the IAS 8, with earlier application permitted. The Board has also proposed delaying the effective date of the 2020 amendments accordingly, so that entities will not be required to change current practice before the proposed amendments come into effect. These Amendments, including ED proposals, have not yet been endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
The amendments are effective for annual periods beginning on or after 1 January 2022 with earlier application permitted. The IASB has issued narrow-scope amendments to the IFRS Standards as follows:
These amendments are not expected to have any impact on the Group’s consolidated financial statements or the Company’s separate financial statements.
The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in financial statements not yet authorised for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in the IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modifications to rent concessions arising as a direct consequence of the COVID-19 pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met.
These amendments are not expected to have any impact on the Group’s consolidated financial statements or the Company’s separate financial statements.
The amendments are effective for annual periods beginning on or after 1 January 2023 with earlier application permitted. The amendments provide guidance on the application of materiality judgements to accounting policy disclosures. In particular, the amendments to the IAS 1 replace the requirement to disclose ‘significant’ accounting policies with a requirement to disclose ‘material’ accounting policies. Also, guidance and illustrative examples are added in the Practice Statement to assist in the application of the materiality concept when making judgements about accounting policy disclosures. The amendments have not yet been endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
The amendments become effective for annual reporting periods beginning on or after 1 January 2023 with earlier application permitted and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments introduce a new definition of accounting estimates, defined as monetary amounts in financial statements that are subject to measurement uncertainty. Also, the amendments clarify what changes in accounting estimates are and how these differ from changes in accounting policies and the correction of errors. The amendments have not yet been endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
In view of the fact that the financial report consists of the financial statements and accompanying notes of both the Group and the Company, only the Group’s operating segments are disclosed.
An operating segment is a component of the Group that engages in business activities from which it earns revenues and incurs expenses that relate to transactions with any of the Group’s other components. The results of operating segments are reviewed regularly by the management to make decisions about resources to be allocated to a segment and assess the Group's performance.
The management monitors information on two levels: on the micro-level, in which case individual units are monitored, and on the macro level, where only certain key information is monitored that can be used to make comparisons with similar companies in Europe. Given the substantial amount of information and their sensitivity on the micro-level, the Group only discloses macro-level information in the annual report.
The Group/Company uses the following segments in the preparation and presentation of the financial statements:
Sales consist of:
Energy and environmental solutions and production consist of:
| (in EUR) | Sales | Energy and environmental systems and production | Total Statement of profit or loss/Statement of financial position |
|---|---|---|---|
| Sales revenue | 3,356,224,733 | 70,273,776 | 3,426,498,509 |
| Revenue from subsidiaries | (346,974,551) | (91,351) | (347,065,902) |
| Sales revenue | 3,009,250,182 | 70,182,425 | 3,079,432,607 |
| Net profit for the year | 70,098,690 | 2,231,352 | 72,330,042 |
| Interest income* | 2,187,715 | 967,651 | 3,155,366 |
| Interest expense* | (5,887,101) | (2,603,932) | (8,491,033) |
| Depreciation of property, plant and equipment, depreciation of right-of-use assets, depreciation of investment property and amortisation of intangible assets | (55,370,129) | (19,624,038) | (74,994,167) |
| Share of profit or loss of equity accounted investees | - | 3,508,790 | 3,508,790 |
| Total assets |
| Sales | Energy and environmental systems and production | Total | |
|---|---|---|---|
| Sales revenue | 5,530,272,304 | 80,394,975 | 5,610,667,279 |
| Revenue from subsidiaries | (650,477,568) | (63,746) | (650,541,314) |
| Sales revenue | 4,879,794,736 | 80,331,229 | 4,960,125,965 |
| Net profit for the year | 115,740,186 | 8,741,175 | 124,481,361 |
| Interest income* | 7,564,188 | 2,501,647 | 10,065,835 |
| Interest expense* | (6,905,827) | (2,283,912) | (9,189,739) |
| Depreciation of property, plant and equipment, depreciation of right-of-use assets, depreciation of investment property and amortisation of intangible assets | (58,549,723) | (20,542,035) | (79,091,758) |
| Share of profit or loss of equity accounted investees | - | 2,583,771 | 2,583,771 |
| Total assets | 2,046,801,533 | 336,649,898 | 2,383,451,431 |
|---|---|---|---|
| Equity accounted investees | - | 55,874,127 | 55,874,127 |
| Property, plant and equipment, right-of-use assets, investment property and intangible assets | 967,647,334 | 264,148,527 | 1,231,795,861 |
| Other assets | 1,079,154,199 | 16,627,244 | 1,095,781,443 |
| Current and non-current operating and financial liabilities and lease liabilities | 1,118,657,240 | 183,992,360 | 1,302,649,600 |
For the purpose of presenting geographic areas, revenue generated in a particular area is determined based on the geographic location of customers, whereas the assets are determined based on the geographic location of assets. Unallocated assets refer mainly to deferred tax assets.
Under a contract for the sale and purchase of interests, which was concluded in 2021, following the fulfilment of the suspensive conditions, the Group acquired a 100-percent interest in Crodux derivati dva d.o.o., which is engaged in the sale of petroleum products in retail and wholesale on the Croatian market, in the sale of trade goods and services and in the catering offer.
The conditions for recognising assets in the Group's financial statements and for managing them were met on 6 October 2021.
In the Company's statement of financial position, Crodux derivati dvad.o.o was treated as a subsidiary as at 31 December 2021. The company's financial statements are included in the consolidated financial statements of the Group.
Goodwill arises mainly from the retail distribution network. Due to the fact that the business combination occurred in the last quarter of the year, the fair value of the assets could not be determined with certainty. Therefore, the acquired assets were recognised at provisional values and will be recognised retrospectively in 2022 on the basis of appropriate valuations, which will also affect the value of goodwill (IFRS 3.45). The Group recognised goodwill in the amount of EUR 148,894,359. The testing goodwill for impairment is disclosed in Note 6.15.
In the three months since the acquisition of the company, the Group generated revenues in the amount of EUR 174,491,268, while the net profit was negative in the amount of EUR 4,246,024. If control had been obtained on 1 January 2021, the Group's revenue would have been EUR 439,631,062 higher, its net profit EUR 16,220,825 higher and its EBITDA would have been EUR 37,044,553 higher.
| (in EUR) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|---|---|
| Slovenia | 2,318,794,060 | 1,463,688,924 | 1,385,093,355 | 1,176,860,845 | 37,883,262 | 50,864,036 |
| Croatia | 892,630,457 | 472,415,913 | 708,835,851 | 343,247,592 | 188,763,187 | 29,129,764 |
| Austria | 189,705,906 | 210,144,985 | 2,521,013 | 5,082,509 | - | - |
| Bosnia and Herzegovina | 157,179,446 | 101,021,218 | 84,410,027 | 76,402,639 | 158,544 | 137,349 |
| Serbia | 126,953,533 | 72,200,684 | 97,542,278 | 87,005,571 | 6,256,121 | 4,987,574 |
| Montenegro | 42,138,531 | 26,223,964 | 34,663,240 | 31,734,965 | 142,741 | 284,712 |
| Romania | 26,828,155 | 97,400,461 | 474,400 | 487,772 | - | - |
| Macedonia | 7,185,333 | 13,379,662 | 737,181 | 2,891,615 | - | - |
| Other countries | 1,198,710,544 | 622,956,796 | 1,920,285 | 1,943,504 | - | - |
| Total | 4,960,125,965 | 3,079,432,607 | 2,316,197,630 | 1,725,657,012 | - | - |
| Jointly controlled entities | 233,203,855 |
|---|---|
| 85,403,435 | |
| Associates | 704,501 |
| 562,016 | |
| Unallocated assets | 55,169,626 |
| 55,953,391 | |
| Total assets | 11,379,674 |
| 9,906,032 | |
| Total assets | 2,383,451,431 |
| 1,792,078,451 | |
| Sales revenue | |
| Total assets | |
| Net investments |
The statement of the acquired assets as at the day when the Group acquired controlling influence is presented in the table:
Under a contract for the sale and purchase of interests, which was concluded in February 2020, the Petrol Group acquired a 100-percent interest in E 3, d.o.o. from Elektro Primorska, d.d.
The conditions for recognising assets in the Group's financial statements and for managing them were met on 5 January 2021.
In the Company's statement of financial position, E 3, d.o.o. was treated as a subsidiary as at 31 December 2021. The company's financial statements are included in the consolidated financial statements of the Group.
Since the acquisition of the company, the Group generated revenues in 2021 in the amount of EUR 125,078,162, while the net profit was positive in the amount of EUR 579,292.
On acquiring the controlling influence over the company, the fair value of the acquired net assets was reviewed, based on which the Group was able to recognise the fair value of the assets in its consolidated financial statements. The fair value of assets was estimated on the basis of the return-based method using the discounted cash flow method.
| (in EUR) | Provisional fair value | Carrying amount |
|---|---|---|
| Cash and cash equivalents | 9,891,052 | 9,891,052 |
| Intangible assets | 5,328,030 | 5,328,030 |
| Right-of-use assets | 47,507,231 | 47,507,231 |
| Property, plant and equipment | 67,907,084 | 67,907,084 |
| Investment property | 120,243 | 120,243 |
| Deferred tax assets | 571,383 | 571,383 |
| Inventories | 21,581,519 | 21,581,519 |
| Contract assets | 128,366 | 128,366 |
| Financial receivables | 80,520,260 | 80,520,260 |
| Operating receivables | 51,589,121 | 51,589,121 |
| Prepayments and other assets | 822,789 | 822,789 |
| Assets | 285,967,078 | 285,967,078 |
| Other provisions | 33,049 | 33,049 |
| Financial liabilities | 106,555,345 | 106,555,345 |
| Lease liabilities | 49,056,309 | 49,056,309 |
| Operating liabilities | 79,154,648 | 79,154,648 |
| Corporate income tax liabilities | 2,008,426 | 2,008,426 |
| Contract liabilities | 1,055,690 | 1,055,690 |
| Other liabilities | 5,297,970 |
243,161,437
243,161,437
42,805,641
42,805,641
191,700,000
-
148,894,359
-
191,700,000
-
9,891,052
-
181,808,948
240
The statement of the acquired assets as at the day when the Group acquired controlling influence is presented in the table:
The Group recognised negative goodwill in the income statement for 2021 among other finance income.
In 2020, Petrol d.d., Ljubljana acquired the company Petrol-OTI-Terminal L.L.C.
Under a contract for the sale and purchase of interests, which was concluded in December 2020, the Petrol Group acquired a 100-percent interest in Petrol-OTI-Terminal L.L.C. from the jointly controlled entity Petrol OTI Slovenija L.L.C. Under the same contract for the sale and purchase of interests, the Petrol Group sold a 51-percent interest in the jointly controlled entity Petrol OTI Slovenija L.L.C. to the remaining company member of the jointly controlled entity Petrol OTI Slovenija L.L.C. The conditions for recognising the assets in the Group's financial statements and for their control were fulfilled on 31 December 2020.
In the Company's statement of financial position and the Group's consolidated statement of financial position, Petrol-OTI-Terminal L.L.C. was treated as a subsidiary as at 31 December 2020. The financial statements of Petrol-OTI-Terminal L.L.C. are included in the Group's consolidated financial statements.
On acquiring the controlling influence over Petrol-OTI-Terminal L.L.C., the fair value of the acquired net assets was reviewed, based on which the Group was able to recognise the fair value of the assets in its consolidated financial statements. The fair value of the assets was assessed based on the cost approach using the net asset value method.
| Fixed assets relate (in EUR) | Fair value | Carrying amount |
|---|---|---|
| Cash and cash equivalents | 792,219 | 792,219 |
| Intangible assets | 3,873,893 | 464,724 |
| Right-of-use assets | 119,368 | 119,368 |
| Property, plant and equipment | 5,095,587 | 7,741,407 |
| Investments in associates | 894,000 | 483,993 |
| Operating receivables | 27,072,213 | 27,072,213 |
| Contract assets | 1,694,130 | 1,694,130 |
| Deferred tax assets | 324,476 | 547,413 |
| Corporate income tax assets | 66,517 | 66,517 |
| Prepayments and other assets | 208,361 | 208,361 |
| Assets | 40,140,764 | 39,190,345 |
| Provisions for employee post-employment and other long-term benefits | 372,406 | 372,406 |
| Long-term deferred revenue | 598,039 | 598,039 |
| Financial liabilities | 3,232,001 | 3,232,001 |
| Lease liabilities | 120,462 | 120,462 |
| Operating liabilities | 18,341,741 | 18,341,741 |
| Contract liabilities | 726,625 |
|---|---|
| Other liabilities | 619,764 |
| Liabilities | 24,011,038 |
| Net assets upon acquisition | 16,129,726 |
| Amount paid | 14,950,000 |
| Negative goodwill | 1,179,726 |
| Cash and cash equivalents | 792,219 |
| Net payment | 14,157,781 |
to an assessed value of a business complex that actually represents a petroleum product storage facility.
The acquisition of the assets of Petrol-OTI-Terminal L.L.C. did not result in additional revenue for the Group. The company was dormant in 2020. If control had been obtained on 1 January 2020, the Group's net profit would have been lower by EUR 19,278.
Atet d.o.o.
Under a contract for the sale and purchase of interests, which was concluded in July 2019, Petrol d.d., Ljubljana acquired a 76-percent interest in Atet, podjetje za izposojo avtomobilov, d.o.o. The company is engaged in car rental activity. The conditions for exercising control over the company were fulfilled on 16 December 2019.
In the Company's statement of financial position and the Group's consolidated statement of financial position, Atet d.o.o. was treated as a subsidiary as at 31 December 2019. The financial statements of Atet d.o.o. are included in the Group's consolidated financial statements.
Because the business combination took place at the end of 2019 and the fair value of the assets as at 31 December 2019 could not be determined with certainty, the acquired assets as at 31 December 2019 were recognised at provisional values.
In 2020, the fair value of the acquired net assets was assessed, based on which the Group was able to recognise the fair value of the net assets in its consolidated financial statements, thus definitively allocating goodwill, which had been recognised only temporarily in 2019. The fair value of the property was assessed using the income capitalisation method whereas the fair value of the equipment was assessed using the replacement cost method.
| Fair value | Carrying amount | |
|---|---|---|
| Cash and cash equivalents | 1,711 | 1,711 |
| Property, plant and equipment | 1,910,082 | 8,663,712 |
| Operating receivables | 5,936 | 5,936 |
| Assets | 1,917,729 | 8,671,359 |
| Financial liabilities | 54,000 | 54,000 |
| Operating liabilities | 58,729 | 58,729 |
| Liabilities | 112,729 | 112,729 |
| Net assets upon acquisition | 1,805,000 | 8,558,630 |
| Amount paid | 1,805,000 | - |
| Goodwill | - | - |
| Cash and cash equivalents | 1,711 | - |
| Net payment | 1,803,289 | - |
In 2021, Petrol d.d.:
In 2021, Petrol d.o.o. Beograd established three subsidiaries: Petrol Lumennis ZAJO d.o.o. Beograd, Petrol Lumennis ŠI JO d.o.o. Beograd and Petrol KU 2021 d.o.o. Beograd that operate in the segment of energy and environmental solutions. Petrol d.o.o. Beograd is the sole owner of the two companies.
| (in EUR) | Restated fair value | Provisional fair value | Carrying amount |
|---|---|---|---|
| Cash and cash equivalents | 1,014,069 | 1,014,069 | 1,014,069 |
| Property, plant and equipment | 1,442,041 | 1,144,326 | 1,144,326 |
| Operating receivables | 265,299 | 265,299 | 265,299 |
| Corporate income tax assets | 39,897 | 39,897 | 39,897 |
| Prepayments and other assets | 15,559 | 15,559 | 15,559 |
| Assets | 2,776,865 | 2,479,150 | 2,479,150 |
| Financial liabilities | 303,080 | 303,080 | 303,080 |
| Operating liabilities | 290,422 | 290,422 | 290,422 |
| Deferred tax liabilities | 56,566 | - | - |
| Corporate income tax liabilities | 6,651 | 6,651 | 6,651 |
| Contract liabilities | 2,083 | 2,083 | 2,083 |
| Other liabilities | 400 | 400 | 400 |
| Liabilities | 659,202 | 602,636 | 602,636 |
| Net assets upon acquisition | 2,117,663 | 1,876,514 | 1,876,514 |
| Net assets upon acquisition of majority interest (76%) | 1,609,424 | 1,426,151 | 1,426,151 |
| Amount paid | 4,044,396 | 4,044,396 | - |
| Goodwill | 2,434,972 | 2,618,245 |
| (in EUR) | 2021 | 2020 |
|---|---|---|
| Revenue from the sale of merchandise | 4,852,186,450 | 2,981,937,390 |
| Revenue from the sale of services | 100,871,606 | 90,297,346 |
| Revenue from the sale of products | 7,067,909 | 7,197,871 |
| Total revenue | 4,960,125,965 | 3,079,432,607 |
| (in EUR) | The Petrol Group | Petrol d.d. | ||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| Domestic sales revenue | 2,318,794,060 | 1,463,688,924 | 2,307,448,117 | 1,180,983,411 |
| EU market sales revenue | 2,040,354,381 | 1,268,973,978 | 1,079,437,479 | 934,164,575 |
| Non-EU market sales revenue | 600,977,524 | 346,769,705 | 170,134,194 | 223,476,142 |
| Total revenue | 4,960,125,965 | 3,079,432,607 | 3,557,019,790 | 2,338,624,128 |
| (in EUR) | The Petrol Group | Petrol d.d. | ||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| Sale of merchandise | 4,879,794,736 |
| Energy and environmental solutions and production | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Total revenue | 4,960,125,965 | 3,079,432,607 | 3,557,019,790 | 2,338,624,128 |
| Other income | ||||
| Profit from derivative financial instruments should be considered in conjunction with the loss of derivative financial instruments disclosed under other expenses (Note 6.9) and the cost of provisions for onerous contracts with customers for the supply of electricity disclosed under other costs (Note 6.8). | ||||
| Accordingly, in 2021, the Group/Company had a net effect from derivative financial instruments and provisions for onerous contracts with customers for the supply of electricity in the amount of EUR 13,279,045 (2020: EUR 25,637,125) and EUR 12,589,044 (2020: EUR 23,474,808), respectively. |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Gain on derivatives | 269,931,980 | 100,106,658 | 269,846,734 | 99,748,455 |
| Compensation, lawsuits, contractual penalties received | 997,066 | 219,716 | 807,961 | 86,563 |
| Gain on disposal of fixed assets | 694,563 | 773,615 | 367,422 | 614,869 |
| Compensation received from insurance companies | 244,184 | 148,729 | 103,091 | 20,930 |
| Payment of court fees | 131,183 | 38,647 | 79,213 | 24,207 |
| Utilisation of environmental provisions | - | 10,772 | - | 10,772 |
| Other income | 5,349,657 | 4,488,049 | 3,585,000 | 3,401,784 |
| Total other income | 277,348,633 | 105,786,186 | 274,789,421 | 103,907,580 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Costs of energy | 21,471,005 | 19,897,486 | 18,411,758 | 17,509,877 |
| Costs of consumables | 6,867,875 | 7,061,792 | 4,908,925 | 5,631,831 |
| Write-off of small tools | 137,680 | 141,892 | 82,889 | 86,131 |
| Other costs of materials | 819,464 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Total costs of materials | 833,086 | 415,192 | 558,277 | |
| Costs of transport services | 33,146,816 | 29,076,879 | 25,813,408 | 24,589,796 |
| Costs of service station managers | 30,812,368 | 34,622,264 | 30,812,368 | 34,622,264 |
| Costs of fixed-asset maintenance services | 24,904,966 | 20,745,238 | 18,793,301 | 16,064,895 |
| Costs of payment transactions and bank services | 12,872,038 | 9,618,812 | 7,960,337 | 6,975,692 |
| Costs of professional services | 9,428,504 | 9,951,995 | 6,952,438 | 8,380,955 |
| Lease payments | 8,441,011 | 5,347,894 | 5,965,952 | 3,276,653 |
| Costs of fairs, advertising and entertainment | 6,705,784 | 4,855,914 | 4,274,674 | 2,882,820 |
| Costs of insurance premiums | 4,880,292 | 4,118,507 | 2,891,553 | 2,421,131 |
| Outsourcing costs | 4,034,087 | 4,228,791 | 3,734,872 | 3,626,778 |
| Costs of fire protection and physical and technical security | 2,289,964 | 2,158,306 | 1,763,982 | 1,770,958 |
| Costs of environmental protection services | 2,094,424 | 1,905,910 | 1,343,340 | 1,405,309 |
| Property management | 1,206,789 | 1,579,012 | 906,228 | 1,471,278 |
| Reimbursement of work-related costs to employees | 969,200 | 861,196 | 508,490 | 466,612 |
| Membership fees | 865,602 | 844,590 | 208,848 | 340,188 |
| Other costs of services | 5,046,074 | 3,428,989 | 2,275,198 | 2,108,453 |
| Total costs of services | 147,697,919 | 133,344,297 | 114,204,989 | 110,403,782 |
The costs of professional services include the cost of services performed by the auditors of the annual report of EUR 231,465 (2020: EUR 150,000). Auditing services comprise the fee for the auditing of the annual report of EUR 193,565 (2020: EUR 149,250). Other, non-auditing services stood at EUR 37,900 in 2021 (2020: EUR 750).
The costs of professional services include the cost of services performed by the auditors of the annual report of EUR 73,000 (2020: EUR 63,350). Auditing services comprise the fee for the auditing of the annual report of EUR 72,600 (2020: EUR 62,600). Other, non-auditing services stood at EUR 400 in 2021 (2020: EUR 750).
The Group's/Company's lease expenses include expenses for short-term leases, leases of low-value assets and leases with variable lease payments.
In line with the measures taken by countries to contain the coronavirus (COVID-19) epidemic, the Group made use of measures relating to the unconditional reimbursement of labour costs of EUR 613,261 recording their effects as a decrease in labour costs.
In line with the measures taken by the state to contain the coronavirus (COVID-19) epidemic, the Company made use of measures relating to the unconditional reimbursement of labour costs of EUR 357,311 recording it as a decrease in labour costs.
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Depreciation of right-of-use assets | 12,802,769 | 10,139,765 | 3,983,028 | 3,885,487 |
| Finance expenses | 2,425,310 | 2,676,699 | 1,291,951 | 1,508,731 |
| Lease expenses | 8,441,011 | 5,347,894 | 5,965,952 | 3,276,653 |
| Total recognised costs/expenses | 23,669,090 | 18,164,358 | 11,240,931 | 8,670,871 |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Salaries | 85,401,258 | 75,489,309 | 58,731,102 | 55,002,363 |
| Costs of other social insurance | 7,576,461 | 6,133,427 | 4,234,369 | 4,267,276 |
| Costs of pension insurance | 6,691,637 | 5,592,134 | 5,604,526 | 4,229,710 |
| Meal allowance | 3,479,550 | 2,903,033 | 2,669,093 | 2,297,807 |
| Transport allowance | 3,340,708 | 3,100,888 | 1,916,044 | 1,865,354 |
| Annual leave allowance | 2,816,497 | 3,096,768 | 2,343,077 | 2,540,271 |
| Supplementary pension insurance | 1,648,409 | 1,542,016 | 1,520,449 | 1,479,500 |
| Other allowances and reimbursements | 3,386,989 | 4,998,999 | 1,300,331 | 2,991,858 |
| Total labour costs |
On average, the Group and the Company had 5,387 and 2,122 employees in 2021, respectively (2020: 4,054 and 2,129).
| Level | Group employees | Employees at third-party managed service stations | Total | Company employees | Employees at third-party managed service stations | Total |
|---|---|---|---|---|---|---|
| Level I | 18 | - | 18 | 2 | - | 2 |
| Level II | 502 | 9 | 79 | 35 | 29 | 64 |
| Level III | 110 | 10 | 120 | 5 | 10 | 15 |
| Level IV | 905 | 273 | 1,178 | 356 | 273 | 629 |
| Level V | 1,749 | 635 | 2,384 | 892 | 635 | 1,527 |
| Level VI | 301 | 49 | 350 | 168 | 49 | 217 |
| Level VII | 556 | 59 | 615 | 349 | 59 | 408 |
| Level VII/2 | 379 | 17 | 396 | 375 | 17 | 392 |
| Level VIII | 17 | - | 17 | 11 | - | 11 |
| Total | 4,085 | 1,072 | 5,157 | 2,193 | 1,072 | 3,265 |
| 4324 | 67 | 29 | 2453 |
|---|---|---|---|
| 152 | 7 | 159 | 7 | 7 | 14 |
|---|---|---|---|---|---|
| 1,295 | 263 | 1,558 | 341 | 263 | 604 |
|---|---|---|---|---|---|
| 2,156 | 621 | 2,777 | 852 | 621 | 1,473 |
|---|---|---|---|---|---|
| 515 | 50 | 565 | 165 | 50215 |
|---|---|---|---|---|
| 576 | 56 | 632 | 346 | 56402 |
|---|---|---|---|---|
| 405 | 15 | 420 | 354 | 15369 |
|---|---|---|---|---|
| 19- | 19 | 7 | - | 7 |
|---|---|---|---|---|
| 5,200 | 1,037 | 6,237 | 2,106 | 1,037 | 3,143 |
|---|---|---|---|---|---|
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Depreciation of property, plant and equipment | 51,689,896 | 51,755,226 | 32,282,770 | 33,544,505 |
| Amortisation of intangible assets | 13,229,924 | 11,934,808 | 9,676,444 | 8,642,941 |
| Depreciation of right-of-use assets | 12,802,769 | 10,139,765 | 3,983,028 | 3,885,487 |
| Depreciation of investment property | 1,369,169 | 1,164,368 | 754,429 | 1,128,294 |
| Total depreciation and amortisation | 79,091,758 | 74,994,167 | 46,696,671 | 47,201,227 |
The Group's impairment of assets relates mostly to the impairment of fixed assets by EUR 6,726,152 (2020: EUR 5,084,330) and to the impairment of inventories by EUR 7,205,752 (2020: EUR 7,331,973) to match their net realisable value. The Company's impairment of assets relates mostly to the impairment of fixed assets by EUR 2,483,435 (2020: EUR 3,265,845).
Among the other costs of the Group/Company, EUR 20,924,453 (2020: 0 EUR) relates to the costs of recognising short-term provisions from onerous contracts with customers for the supply of electricity. This note should be read in conjunction with Notes 6.3, 6.9 and 6.41.
Shares of profit or loss of equity accounted investees of the Petrol Group
Finance income from dividends paid by subsidiaries, associates and jointly controlled entities of Petrol d.d., Ljubljana
| (in EUR) | 2021 | 2020 |
|---|---|---|
| Plinhold d.o.o. | 1,424,430 | 2,639,331 |
| Aquasystems d.o.o. | 814,857 | 765,316 |
| Knešca d.o.o. | 48,026 | - |
| Ivicom Energy d.o.o. | (3,582) | (20,835) |
| Total net profit of associates | 2,283,731 | 3,383,812 |
| Geoenergo d.o.o. | 187,370 | (11,385) |
| Soenergetika d.o.o. | 112,670 | 137,311 |
| Vjetroelektrana Dazlina d.o.o. | - | (948) |
| Total net profit of jointly controlled entities |
Accordingly, in 2021, the Group/Company had a net effect from derivative financial instruments and provisions for onerous contracts with customers for the supply of electricity in the amount of EUR 13,279,045 (2020: EUR 25,637,125) and EUR 12,589,044 (2020: EUR 23,474,808), respectively.
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Impairment/write-down of assets | 14,259,583 | 16,207,510 | 2,705,061 | 4,383,807 |
| Environmental charges and charges unrelated to operations | 6,534,253 | 6,512,808 | 4,099,121 | 4,692,994 |
| Sponsorships and donations | 2,034,138 | 1,517,038 | 1,581,268 | 1,333,585 |
| Loss on sale/disposal of property, plant and equipment | 1,321,765 | 1,356,231 | 1,021,237 | 1,324,266 |
| Other costs | 30,548,619 | 1,345,139 | 26,256,662 | 4,957,539 |
| Total other costs | 54,698,358 | 26,938,726 | 35,663,349 | 16,692,191 |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Loss on derivatives | 235,728,482 | 74,469,533 | 236,333,237 | 76,273,647 |
| Other expenses | 876,145 | 491,988 | (40,362) | 35,262 |
| Total other expenses | 236,604,627 | 74,961,521 | 236,292,875 | 76,308,909 |
| Total net finance income from interests | 2021 | 2020 |
|---|---|---|
| The Petrol Group (in EUR) | 300,040 | 124,978 |
| Geoplin d.o.o. Ljubljana | 958,260 | 958,260 |
| Petrol Hidroenergija d.o.o. | 713,159 | - |
| Petrol Trade Handelsgesellschaft m.b.H. | 151,905 | 1,140,803 |
| Total subsidiaries | 1,823,324 | 2,099,063 |
| Aquasystems d.o.o. | 763,964 | 764,409 |
| Plinhold d.o.o. | 564,272 | 564,272 |
| Total associates | 1,328,236 | 1,328,681 |
| Soenergetika d.o.o. | 135,495 | 172,934 |
| Total jointly controlled entities | 135,495 | 172,934 |
| Total finance income from interests | 3,287,054 | 3,600,678 |
The Group had EUR 616,729 (2020: EUR 3,426,549) and EUR 18,786,511 (2020: EUR 1,966,916) corporate income tax assets and liabilities, respectively, as at 31 December 2021. The Group does not offset the assets and liabilities, as they represent a receivable from or a liability to different tax administrations.
In Slovenia, the effective corporate income tax rate stood at 19 percent in 2021 (2020: 19 percent), whereas the Group's tax rates ranged from 9 to 25 percent.
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Foreign exchange differences | 15,516,194 | 19,625,423 | 12,635,432 | 15,444,180 |
| Interest income | 10,065,835 | 3,155,366 | 3,279,520 | 2,775,616 |
| Gain on derivatives | 4,525,059 | 2,101,828 | 7,093,905 | 2,101,828 |
| Loss allowances for receivables reversed and bad debt recovered | 682,431 | 534,782 | 363,486 | 981,353 |
| Other finance income | 1,383,319 | 1,488,976 | 136,286 | 1,397,455 |
| Total other finance income | 32,172,838 | 26,906,375 | 23,508,629 | 22,700,432 |
| Foreign exchange differences | (20,417,028) | (16,990,985) | (16,601,747) | (12,693,137) |
| Interest expense | (9,189,739) | (8,491,033) | (9,218,597) | (7,594,011) |
| Allowance for operating receivables | (8,253,470) | (2,238,295) | (3,023,504) | - |
| Loss on derivatives | (2,016,266) | (4,673,449) | (2,016,266) | (4,673,449) |
| Impairment of investments and of goodwill | (873,366) | (3,641,563) | (11,193,296) | (4,584,965) |
| Other finance expenses | (1,601,601) | (545,365) | (1,628,763) | (446,003) |
| Total other finance expenses | (42,351,470) | (36,580,690) | (43,682,173) | (29,991,565) |
| Net finance expense | (10,178,632) | (9,674,315) | (20,173,544) | (7,291,133) |
| The Petrol Group | Petrol d.d. | (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|---|---|
| Tax expense | (30,683,697) | (14,373,778) | (18,781,868) | (2,843,435) | ||
| Deferred tax | 3,717,031 | 1,238,736 | 1,867,467 | 67,462 |
| (26,966,666) | (13,135,042) | (16,914,401) | (2,775,973) | |
|---|---|---|---|---|
| The Petrol Group | Petrol d.d. | (in EUR) | 2021 | 2020 |
| Profit before tax | 151,448,027 | 85,465,084 | 83,397,343 | 31,669,489 |
| Tax effective tax rate | 28,775,125 | 16,238,366 | 15,845,495 | 6,017,203 |
| Tax effect of untaxed revenue | (3,009,646) | (2,977,999) | (2,278,094) | (2,263,228) |
| Tax effect of expenses not deducted on tax assessment | 1,794,663 | 2,822,523 | 3,347,000 | 1,466,486 |
| Increase in expenses by tax non-deductible revaluation expenses | - | (2,444,488) | - | (2,444,488) |
| Effect of higher/lower tax rates for companies abroad | (593,476) | (503,360) | - | - |
| Taxes | 26,966,666 | 13,135,042 | 16,914,401 | 2,775,973 |
| Effective tax rate | 17.81 % | 15.37 % | 20.28 % | 8.77 % |
| Deferred tax assets | Deferred tax liabilities | (in EUR) | |||||
|---|---|---|---|---|---|---|---|
| Investments | Provisions | Allowance for receivables | Inventories | Tax loss | Other | Total | |
| As at 1 January 2020 | 1,516,705 | 3,558,668 | 5,955,057 | 92,727 | 565,263 | 162,675 | 11,851,095 |
| Netting | (2,617,086) | ||||||
| Total net receivables as at 1 January 2020 | 9,234,009 | ||||||
| (Charged)/credited to the statement of profit or loss | 30,963 | (305,162) | 592,038 | 7,862 | - | 334,051 | 659,752 |
| (Charged)/credited to other comprehensive income | 21,805 | - | - | - | - | - | 21,805 |
| Foreign exchange differences | (703) | (10,777) | (6,249) | (90) | (7,301) | (127) | (25,247) |
| As at 31 December 2020 | 1,568,770 |
| As at 31 December 2020 | 9,906,032 |
|---|---|
| New acquisitions as a result of control obtained | 27,929 |
| 35,379 | |
| 1,460,779 | |
| - | |
| - | |
| 97,415 | |
| 1,621,502 | |
| (Charged)/credited to the statement of profit or loss | (126,722) |
| 2,346,117 | |
| 1,266,332 | |
| 13,768 | |
| 426,769 | |
| (283,366) | |
| 3,642,898 | |
| (Charged)/credited to other comprehensive income | (768,364) |
| - | |
| - | |
| - | |
| - | |
| (768,364) | |
| Foreign exchange differences | 197 |
| 2,543 | |
| 1,316 | |
| 63 | |
| 2,258 | |
| (41) | |
| 6,336 | |
| As at 31 December 2021 | 11,379,674 |
| As at 1 January 2020 | 2,841,976 |
|---|---|
| New acquisitions as a result of control obtained | - |
| 1,790,495 | |
| - | |
| 1,790,495 | |
| Charged/(credited) to the statement of profit or loss | - |
| (611,528) | |
| 32,544 | |
| (578,984) | |
| Foreign exchange differences | (116) |
| (83,384) | |
| - | |
| (83,500) | |
| As at 31 December 2020 | 6,587,073 |
| Deferred tax assets | Deferred tax liabilities |
|---|---|
| Charged/(credited) to the statement of profit or loss | (84,087) |
| 9,954 | (74,133) |
| Charged/(credited) to other comprehensive income | (7,529) |
| - | - |
| Foreign exchange differences | 29 |
| (17,322) | - |
| (17,293) | As at 31 December 2021 |
| 153,956 | 7,011,670 |
| 48,135 | 7,213,761 |
| Netting | (5,630,103) |
| Total net liabilities as at 31 December 2021 | 1,583,658 |
Basic earnings per share are calculated by dividing the owners’ net profit by the weighted average number of ordinary shares, excluding ordinary shares owned by the Company/Group.
| Provisions | Allowance for receivables | Other | Total |
|---|---|---|---|
| As at 1 January 2020 | 1,402,289 | 1,174,974 | 4,880,129 |
| 13,259 | 7,470,651 | Netting | (602,411) |
| Total net receivables as at 1 January 2020 | 6,868,241 | (Charged)/credited to the statement of profit or loss | 30,963 |
| 88,050 | (355,985) | 304,434 | |
| 67,462 | (Charged)/credited to other comprehensive income | (23,698) | |
| - | - | (23,698) | |
| As at 31 December 2020 | 1,409,555 | 1,263,024 | 4,524,144 |
| 317,693 | 7,514,416 | Netting | (602,411) |
| Total net receivables as at 31 December 2020 | 6,912,005 | (Charged)/credited to the statement of profit or loss | (146,961) |
| 1,918,231 | 243,338 | (147,141) | |
| 1,867,467 | (Charged)/credited to other comprehensive income | (619,733) | |
| - | - | (619,733) | |
| As at 31 December 2021 | 642,861 | 3,181,255 | 4,767,482 |
| 170,552 | 8,762,150 | Netting | (606,636) |
| Total net receivables as at 31 December 2021 | 8,155,514 | (in EUR) | Investments |
| Fixed assets | Total | Total net liabilities as at 1 January 2020 | - |
| - | - | - | - |
| Netting | (602,411) |
|---|---|
| Total net liabilities asat 31 December 2020 | |
| (Charged)/credited to other comprehensive income | 4,225 |
| 4,225 |
| Netting | (606,636) |
|---|---|
| Total net liabilities asat 31 December 2021 |
| Net profit (in EUR) | 124,481,361 | 72,330,042 | 66,482,942 | 28,893,516 |
|---|---|---|---|---|
| Number of shares issued | 2,086,301 | 2,086,301 | 2,086,301 | 2,086,301 |
| Number of own shares at the beginning of the year | 30,723 | 30,723 | 24,703 | 24,703 |
| Number of own shares at the end of the year | 30,723 | 30,723 | 24,703 | 24,703 |
| Weighted average number of ordinary shares issued | 2,055,578 | 2,055,578 | 2,061,598 | 2,061,598 |
| Diluted average number of ordinary shares | 2,055,578 | 2,055,578 | 2,061,598 | 2,061,598 |
| Basic and diluted earnings per share (EUR/share) | 60.56 | 35.19 | 32.25 | 14.02 |
The Petrol Group
Petrol d.d.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 252
The Group and the Company have no potential dilutive ordinary shares, meaning the basic and diluted earnings per share are identical.
The Petrol Group
The effective portion of changes in the fair value of the cash flow variability hedging instrument increased by EUR 4,109,730 (in 2020: decrease of EUR 128,073) and decreased by the deferred tax effect of EUR 772,591 (in 2020: increase of EUR 21,805). The change relates to interest rate swap hedging and decreases the hedging reserve.
Unrealised actuarial gains and losses relate to provisions for post-employment benefits on retirement.
Petrol d.d., Ljubljana
The effective portion of the changes in the fair value of the cash flow variability hedging instrument increased by EUR 3,283,988 (in 2020: an increase of EUR 124,723) and decreased by the deferred tax effect of EUR 623,957 (in 2020: a decrease of EUR 23,698). The change relates to interest rate swap hedging and decreases the hedging reserve.
Unrealised actuarial gains and losses relate to provisions for post-employment benefits on retirement.
| Material and other rights | Right to use concession infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total |
|---|---|---|---|---|---|
| As at 1 January 2020 | 43,386,512 | 117,831,441 | 107,629,738 |
| 629,828 | 35,235 | 1,350,678 | 9,591,541 | 339,561 | 11,946,843 |
|---|---|---|---|---|---|
| (5,584,264) | (120,756) | - | - | (198,517) | (5,903,537) |
|---|---|---|---|---|---|
| - | (551,705) | (2,662,470) | - | - | (3,214,175) |
|---|---|---|---|---|---|
| - | - | (183,273) | - | - | (183,273) |
|---|---|---|---|---|---|
| 600,161 | 768,616 | - | 100,977 | - | 1,469,754 |
|---|---|---|---|---|---|
| 5,819,718 | 4,272,936 | - | (10,092,654) | - | - |
|---|---|---|---|---|---|
| (95,962) | (118,621) | (239,517) | (1,001) | - | (455,101) |
|---|---|---|---|---|---|
| 44,755,993 | 122,117,146 | 105,895,156 | 7,005,570 | 364,959 | 280,138,824 |
|---|---|---|---|---|---|
| (24,490,228) | (54,248,690) | (8,847) | - | - | (78,747,765) |
|---|---|---|---|---|---|
| (6,801,644) | (5,128,356) | (4,808) | - | - | (11,934,808) |
|---|---|---|---|---|---|
| 5,580,429 | 119,832 | - | - | - | 5,700,261 |
|---|---|---|---|---|---|
| - | 300,486 | - | - | - | 300,486 |
|---|---|---|---|---|---|
| (323,106) | (547,425) | - | - | - | (870,531) |
|---|---|---|---|---|---|
| Net carrying amount as at 1 January 2020 | 18,896,284 | 63,582,751 | 107,620,891 | 7,406,707 | 223,915 | 197,730,548 |
|---|---|---|---|---|---|---|
| Net carrying amount as at 31 December 2020 | 18,732,988 | 62,661,494 | 105,881,620 | 7,005,570 | 364,959 | 194,646,631 |
All intangible assets presented herein are the property of the Group and are unpledged.
16.1 percent of all intangible assets in use on 31 December 2021 were fully amortised (compared to 13.1 percent as at 31 December 2020).
The intangible fixed assets as at 31 December 2021 were tested for impairment and it was determined that there is a need to impair the goodwill of Zagorski metalac d.o.o. by EUR 873,366.
Goodwill structure presented by business combination from which it originates is as follows:
In 2021, the Group recognised goodwill from the acquisition of Crodux derivati dva d.o.o, which as at 31 December 2021 amounted to EUR 148,574,769. The impact on the financial statements is presented in Note 6.1.
| (in EUR) | Material and other rights | Right to use concession infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total | |
|---|---|---|---|---|---|---|---|
| Cost | As at 1 January 2021 | 44,755,993 | 122,117,146 | 105,895,156 | 7,005,570 | 364,959 | 280,138,824 |
| New acquisitions as a result of control obtained | 8,015,053 | 12,253,336 | - | 97,923 | 18,950 | 20,385,262 | |
| New acquisitions | 448,882 | 76,570 | 148,894,359 | 6,363,213 | 387,945 | 156,170,969 | |
| Disposals | (347,753) | (7,183) | - | (47,110) | (279,602) | (681,648) | |
| Impairments | - | - | (873,366) | - | - | (873,366) | |
| Transfers between asset categories |
| 201,150 | - | - | 64,656 |
|---|---|---|---|
| (201,150) | 64,656 | Transfer from ongoing investments | 7,694,856 |
| 1,306,460 | - | (9,001,316) | - |
| Foreign exchange differences | 17,971 | 7,625 | (263,151) |
| 2,707 | - | (234,848) | As at 31 December 2021 |
| 60,786,152 | 135,753,954 | 253,652,998 | 4,485,643 |
| 291,102 | 454,969,849 | Accumulated amortisation | As at 1 January 2021 |
| (26,023,005) | (59,455,652) | (13,536) | - |
| - | (85,492,193) | New acquisitions as a result of control obtained | (3,334,813) |
| (7,848,526) | - | - | (11,183,339) |
| Amortisation | (7,892,334) | (5,332,338) | (5,252) |
| - | - | (13,229,924) | Disposals |
| 262,355 | 6,834 | - | - |
| - | 269,189 | Foreign exchange differences | (4,343) |
| 1,171 | (515) | - | - |
| (3,687) | As at 31 December 2021 | (36,992,140) | (72,628,511) |
| (19,303) | - | - | (109,639,954) |
| Net carrying amount as at 1 January 2021 | 18,732,988 | 62,661,494 | 105,881,620 |
| 7,005,570 | 364,959 | 194,646,631 | Net carrying amount as at 31 December 2021 |
| 23,794,012 | 63,125,443 | 253,633,695 | 4,485,643 |
| 291,102 | 345,329,895 | (in EUR) | 31 December 2021 |
| 31 December 2020 | Crodux derivati dva d.o.o. | 148,574,769 | - |
| Instalacija d.o.o., Koper | 1 | 85,266,022 | 85,266,022 |
| Euro-Petrol d.o.o. |
| Company | Goodwill | Impairment |
|---|---|---|
| Vjetroelektrana Ljubač d.o.o. | 12,652,682 | 2,584,691 |
| Atet d.o.o. | 12,610,999 | 2,576,176 |
| Petrol-Jadranplin d.o.o. | 2,434,972 | 2,434,972 |
| Vjetroelektrane Glunča d.o.o. | 748,569 | 746,103 |
| Crodux Plin d.o.o. | 280,768 | 279,843 |
| Petrol-Butan d.o.o. | 280,125 | 279,202 |
| MB ILLS d.o.o. | 245,250 | 245,250 |
| Adria-Plin d.o.o. | 207,137 | 212,159 |
| Zagorski metalac d.o.o. | - | 873,366 |
Total goodwill: 253,633,695
Total impairment: 105,881,620
The Petrol Group Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report
In accordance with the IAS 36, goodwill was tested for impairment as at 31 December 2021 and it was determined that there is a need to impair the goodwill of Zagorski metalac d.o.o.. Based on the assessed value of the assets of the cash-generating unit Zagorski metalac d.o.o., the Group recognised the impairment of assets of EUR 4,519,397, of which EUR 873,366 relates to the impairment of goodwill and EUR 3,646,031 to the impairment of tangible assets. Lower value estimates are mainly a reflection of lower expectations regarding future cash flows due to the need to increase investment in fixed assets in the forecast period.
The recoverable amount of the acquired assets was assessed at the aggregate level of the acquired companies, except for the company Instalacija d.o.o., where the recoverable amount was assessed at the level of the cash-generating unit directly related to the assets acquired during the acquisition of the companies.
Goodwill was tested for impairment using the method of the current value of expected free cash flows, which are based on the future financial plans of cash-generating units. The assumptions used in the calculation of net cash flows (long-term growth rate of cash flows, cash flow projection, projection period, discount rate) are based on past operations and reasonably expected operations in the future. Cash flow projection periods reflect the operations and investment activities of individual companies. Growth rates of free cash flows are based on expected price growth rates.
For Crodux derivati dva d.o.o, 4-year financial plans of the cash-generating unit, the required rate of return of 12 percent after taxes and the annual growth rate of the remaining free cash flows (the residual value) of 0.9 percent were used in testing goodwill for impairment.
For Instalacija d.o.o., 5-year financial plans of the cash-generating unit, the required rate of return of 8.29 percent before taxes (2020: 8 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 1.97 percent (2020: 1 percent) were used in testing goodwill for impairment.
For Petrol d.o.o., 5-year financial plans of the cash-generating unit, the required rate of return of 8.5 percent before taxes (2020: 10.9 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2020: 2 percent) were used in testing goodwill for impairment. The testing of Petrol d.o.o.’s goodwill comprises goodwill arising from the absorption of Euro-Petrol d.o.o., Petrol-Jadranplin d.o.o., Crodux Plin d.o.o., Petrol Butan d.o.o.
For Atet d.o.o., 5-year financial plans of the cash-generating unit, the required rate of return of 7.4 percent before taxes (2020: 6.9 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2020: 2 percent) were used in testing goodwill for impairment.
For MBills d.o.o., 5-year financial plans of the cash-generating unit, the average required rate of return of 24.01 percent (2020: 19.8 percent) after taxes and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2020: 2 percent) were used in testing goodwill for impairment. The cash flow projection period is based on plans for the development and growth of the company up to the period when the cash flows are expected to stabilize over the long term.
For Vjetroelektrane Glunča d.o.o., 21-year financial plans of the cash-generating unit and the required rate of return of 8.7 percent after taxes (2020: 9.5 percent) were used in testing goodwill for impairment. The value of the remaining cash flows was not taken into account in the calculation. The cash flow projection period corresponds to the life of the existing wind power plants and the concession agreement.
For Vjetroelektrana Ljubač d.o.o., the 25-year financial plans of the cash-generating unit and the average required rate of return of 8.5 percent after taxes (2020: 8.6 percent) were used in testing goodwill for impairment. The value of the remaining cash flows was not taken into account in the calculation. The cash flow projection period corresponds to the life of the existing wind power plants and the concession agreement.
For Adria-Plin d.o.o., 7-year financial plans of the cash-generating unit, the required rate of return of 8.4 percent after taxes (2020: 10.3 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2020: 1 percent) were used in testing goodwill for impairment.
Rate of return of 8 percent after taxes (2020: 10.3 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 0 percent (2020: 0 percent) were used in testing goodwill for impairment.
The effect of changes in the discount rate or the long-term growth rate of the remaining free cash flows on the estimated fair value of assets is presented below:
| Year | Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) + 0.5 | Long-term growth rate (g) - 0.5 |
|---|---|---|---|---|
| 2020 | (18) | (11) | (27) | (16) |
| 2021 | - 0.5 | + 0.5 | 18 | 11 |
| (714) | (611) | (1,215) | - | |
| - 0.5 | + 0.5 | 876 | 750 | |
| 1,832 | - | + 0.5 | - | |
| (849) | - | (849) | (849) | |
| - 0.5 | - | 883 | - | |
| + 0.5 | - 0.5 | (10,668) | (8,358) | |
| (18,094) | - | - 0.5 | + 0.5 | |
| 11,947 | 9,353 | 22,611 | - | |
| + 0.5 | - 0.25 | (11,000) | (4,400) | |
| (14,700) | - | - 0.5 | + 0.25 | |
| 12,700 | 4,600 | 18,200 | - | |
| + 0.5 | - 0.5 | (798) | (598) | |
| (1,317) | - | - 0.5 | + 0.5 | |
| (912) | 684 | 1,716 | - | |
| + 0.5 | - | (549) | - | |
| - 0.5 | - | 573 | - |
| Effect of change in the discount rate on the recoverable amount | Effect of change in the long-term growth rate on the recoverable amount | Effect of change in the discount rate and the long-term growth rate on the recoverable amount | Effect on impairment when key assumptions change |
|---|---|---|---|
| Discount rate (WACC) | Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) |
| 6.90% | + 0.5 | - 0.5 | (5) |
| EL-TEC Mulejd.o.o. | 7.50% | - | 10.90% |
| Instalacija d.o.o., Koper | 8.00% | 1% | - 0.5 |
| Euro - Petrol d.o.o. | 9.80% | - | 9.50% |
| Vjetroelektrane Glunča d.o.o. | 9.50% | - | - |
| MBills d.o.o. | 30.00% | - | 9.00% |
| Zagorski metalac d.o.o. | 10.30% | 0% | - |
| Vjetroelektrana Ljubač d.o.o. | 5.60% | - | - |
| + 0.5 | - 0.5 | (4) | (8) | (212) |
|---|---|---|---|---|
| - 0.5 | + 0.5 | 5 | 4 | 11 |
| - 0.5 | + 0.5 | (803) | (660) | (1,350) |
| - | - 0.5 | + 0.5 | 968 | - |
| 796 | 1,963 | - | + 0.5 | - 0.5 |
|---|---|---|---|---|
| (13,045) | (10,421) | (22,636) | - | - 0.5 |
| + 0.5 | 14,097 | 11,269 | 26,415 | - |
| + 0.5 | - 0.5 | (27,781) | 25,870 | (46,676) |
| - | - 0.5 | + 0.5 | 32,420 | (22,174) |
| 63,518 | - | + 0.5 | -0.5 | (13,167) |
| (10,469) | (22,051) | - | - 0.5 | +0.5 |
| 15,422 | 12,268 | 30,253 | - | + 0.5 |
| - 0.5 | (166) | (125) | (278) | - |
| - 0.5 | + 0.5 | 182 | 136 | 335 |
| - | + 0.5 | - | (544) | - |
| (544) | - | - 0.5 | - | 570 |
| - | 570 | - | + 0.5 | - |
| (1,413) | - | (1,413) | - | - 0.5 |
| - | 1,507 | - | 1,507 | - |
| 8.50% | 8.29% | 13.03% | 8.70% | 8.70% |
| 8.41% | 7.40% | 12.00% | 2% | 2% |
| 2% | -0.90% | 2% | 2% | - |
24.01%; 10.00%
All intangible assets presented herein are owned by the Company and are unpledged.
13.5 percent of all intangible assets in use on 31 December 2021 were fully amortised (compared to 8.9 percent as at 31 December 2020).
| Material and other rights | Right to use concession infrastructure | Ongoing investments | Long-term deferred costs | Total net carrying amount |
|---|---|---|---|---|
| Crodux derivati dva d.o.o. | 923,220 | 4,404,810 | - | 5,328,030 |
| E 3, d.o.o. | 3,757,020 | - | 97,923 | 3,873,893 |
| New acquisitions as a result of control obtained | 4,680,240 | 4,404,810 | 97,923 | 9,201,923 |
| Item | 31 December 2021 | 31 December 2020 |
|---|---|---|
| Right to use natural gas distribution infrastructure in the municipality of Domžale | 6,749,645 | 7,400,732 |
| SAP software rights | 5,119,767 | 4,727,058 |
| Contracts with customers (Crodux Plin d.o.o.) | 3,751,426 | 5,158,211 |
| Right to use natural gas distribution infrastructure in the municipality of Slovenske Konjice | 3,736,864 | 3,896,949 |
| Right to use natural gas distribution infrastructure in the municipality of Škofja Loka | 3,401,814 | 3,516,102 |
| Right to use natural gas distribution infrastructure in the municipality of Idrija | 3,340,181 | 3,486,323 |
| (in EUR) | Right to use concession | infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total Cost |
|---|---|---|---|---|---|---|
| As at 1 January 2020 | 34,712,923 | 107,489,063 | 87,712,518 | 6,731,484 | 223,915 | 236,869,903 |
| New acquisitions | - | - | - | 8,385,005 | 138,411 | 8,523,416 |
| Disposals | (5,592,402) | (48,402) | - | - | (198,517) | (5,839,321) |
| Impairments | - | (551,705) | (2,446,496) | - | - | (2,998,201) |
| Transfer between asset categories | - | 1,368,777 | - | 72,736 | - | 1,441,513 |
| Transfer from ongoing investments | 5,787,678 | 3,202,702 | - | (8,990,380) | - | - |
| As at 31 December 2020 | 34,908,199 | 111,460,435 | 85,266,022 | 6,198,845 | 163,809 | 237,997,310 |
| (in EUR) | Right to use concession | infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total |
|---|---|---|---|---|---|---|
| As at 1 January 2020 | (23,007,066) | (49,879,553) | - | - | - | (72,886,619) |
| Amortisation | (4,426,020) | (4,216,921) | - | - | - | (8,642,941) |
| Disposals | 5,588,642 | 47,450 | - | - | - | 5,636,092 |
| Impairments | - | 300,486 | - | - | - | 300,486 |
| Transfer between asset categories | - | (870,531) | - | - | - | (870,531) |
| As at 31 December 2020 |
| (21,844,444) | (54,619,069) | - | - | - | (76,463,513) |
|---|---|---|---|---|---|
| 11,705,857 | 57,609,510 | 87,712,518 | 6,731,484 | 223,915 | 163,983,284 |
| 13,063,755 | 56,841,366 | 85,266,022 | 6,198,845 | 163,809 | 161,533,797 |
|---|---|---|---|---|---|
| Material and other rights | Right to use concession infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total | ||
|---|---|---|---|---|---|---|---|
| Cost | As at 1 January 2021 | 34,908,199 | 111,460,435 | 85,266,022 | 6,198,845 | 163,809 | 237,997,310 |
| New acquisitions | - | 1,444 | - | 3,685,370 | 387,945 | 4,074,759 | |
| Disposals | (341,562) | (7,050) | - | (47,110) | (274,961) | (670,683) | |
| Transfer from ongoing investments | 7,367,395 | 589,998 | - | (7,957,393) | - | ||
| As at 31 December 2021 | 41,934,032 | 112,044,827 | 85,266,022 | 1,879,712 | 276,793 | 241,401,386 |
| As at 1 January 2021 | (21,844,444) | (54,619,069) | - | - | - | (76,463,513) |
|---|---|---|---|---|---|---|
| Amortisation | (5,470,352) | (4,206,092) | - | - | - | (9,676,444) |
| Disposals | 256,688 | 6,701 | - | - | - | 263,389 |
| As at 31 December 2021 | (27,058,108) | (58,818,460) | - | - | - | (85,876,568) |
| 13,063,755 | 56,841,366 |
|---|---|
Intangible fixed assets as at 31 December 2021 were tested for impairment and it was determined that there is no need for the impairment of intangible fixed assets.
In 2020, the Company tested intangible fixed assets for impairment and it was determined that there is a need to impair the goodwill of EL-TEC Mulej d.o.o. by 2,446,296 and the right to use the concession infrastructure by EUR 251,219.
As at 31 December 2021, the Company disclosed goodwill arising from the merger by absorption of Instalacija d.o.o..
In 2013, the merger by absorption of Instalacija d.o.o. resulted in goodwill in the amount of EUR 85,266,022. In 2013, the difference between the net asset value of the merged company, which also includes goodwill, and the investment in the amount of EUR 53,452,160 in the amount of EUR 12,938,309 was recognised in retained earnings, while the remaining difference in the amount of EUR 40,513,851 was recognised in the financial statements of Petrol d.d., Ljubljana as a fair value reserve.
In 2021, the Company tested goodwill for impairment. It was determined that there is no need for the impairment of goodwill.
The assumptions used in impairment testing and the effects recognised in the Company's financial statements have been explained as part of goodwill disclosure relating to the Group.
| Right-of-use assets of the Petrol Group | 31 December 2021 | 31 December 2020 |
|---|---|---|
| Right to use natural gas distribution infrastructure in the municipality of Domžale | 6,749,645 | 7,400,732 |
| SAP software rights | 5,119,767 | 4,727,058 |
| Right to use natural gas distribution infrastructure in the municipality of Slovenske Konjice | 3,736,864 | 3,896,949 |
| Right to use natural gas distribution infrastructure in the municipality of Škofja Loka | 3,401,814 | 3,516,102 |
| Right to use natural gas distribution infrastructure in the municipality of Idrija | 3,340,181 | 3,486,323 |
| Right to use land | Right to use buildings | Right to use equipment | Total | |
|---|---|---|---|---|
| Cost | ||||
| As at 1 January 2020 | 44,524,592 | 32,711,406 | 5,099,421 | 82,335,419 |
| New acquisitions | - | 5,533,630 | 922,450 | 6,456,080 |
| Disposals | (689,581) | (6,141,585) | (51,913) | (6,883,079) |
| Foreign exchange differences | (150,032) | (311,899) | (4,241) | (466,172) |
| As at 31 December 2020 | 43,684,979 | 31,791,552 | 5,965,717 | 81,442,248 |
| As at 1 January 2020 | (3,109,854) | (5,905,560) | (1,781,056) | (10,796,470) |
|---|---|---|---|---|
| Depreciation | (3,119,139) |
| Right to use | Cost |
|---|---|
| land | 43,684,979 |
| buildings | 31,791,552 |
| equipment | 5,965,717 |
| Total | 81,442,248 |
| New acquisitions as a result of control obtained | New acquisitions | Disposals | Foreign exchange differences | As at 31 December 2021 |
|---|---|---|---|---|
| 26,299,180 | 69,593 | (2,444,480) | (20,858) | 67,588,414 |
| 34,490,847 | 8,012,016 | (5,708,241) | 5,037 | 68,591,211 |
| 495,114 | 786,309 | (480,935) | 598 | 6,766,803 |
| Total | 61,285,141 | 8,867,918 | (8,633,656) | 142,946,428 |
| As at 1 January 2021 | New acquisitions as a result of control obtained | Depreciation | Disposals | Foreign exchange differences |
|---|---|---|---|---|
| (6,197,450) | (4,951,737) | (3,437,050) | 169,421 | 3,205 |
| (9,367,210) | (8,517,443) | (7,773,293) | 4,631,933 | (7,520) |
| (3,475,982) | (189,362) | (1,592,426) | 380,573 | (575) |
| Total | (19,040,642) | (13,658,542) | (12,802,769) | 5,181,927 |
| Right to use land | Right to use buildings | Right to use equipment | Total net carrying amount |
|---|---|---|---|
| 37,487,529 | 22,424,342 | 2,489,735 | 62,401,606 |
| 53,174,803 | 47,557,678 | 1,889,031 | 102,621,512 |
| Right to use land | Right to use buildings | Right to use equipment | Total |
|---|---|---|---|
| 21,347,443 | 25,936,450 | 223,338 | 47,507,231 |
| Right to use land | Right to use buildings | Right to use equipment | Total |
|---|---|---|---|
| - | 36,954 | 82,414 | 119,368 |
| Right to use land | Right to use buildings | Right to use equipment | Total |
|---|---|---|---|
| 21,347,443 | 25,973,404 | 305,752 | 47,626,599 |
| Right to use land | Right to use buildings | Right to use equipment | Total | |
|---|---|---|---|---|
| As at 1 January 2020 | 32,908,459 | 1,015,136 | 4,463,798 | 38,387,393 |
| New acquisitions | - | 4,377 | 922,450 | 926,827 |
| Disposals | (689,581) | (89,282) | (47,735) | (826,598) |
| As at 31 December 2020 | 32,218,878 | 930,231 | 5,338,513 | 38,487,622 |
| Right to use land | Right to use buildings | Right to use equipment | Total | |
|---|---|---|---|---|
| As at 1 January 2020 | (2,162,182) | (303,738) | (1,574,909) | (4,040,829) |
| Depreciation | (2,143,857) | (214,456) | (1,527,174) | (3,885,487) |
| Disposals | 18,325 | 89,282 | 47,735 | 155,342 |
| As at 31 December 2020 | (4,287,714) | (428,912) | (3,054,348) | (7,770,974) |
| Right to use land | Right to use buildings | Right to use equipment | Total | |
|---|---|---|---|---|
| As at 1 January 2020 | 30,746,277 | 711,398 | 2,888,889 | 34,346,564 |
| As at 31 December 2020 | 27,931,164 | 501,319 |
The Group holds land, buildings and various equipment under a lease. The term of a lease depends on the type of the leased asset. It can be:
The lessee's lease payment liabilities are not secured. The Group applies an exemption allowed by the standard to the recognition of liabilities arising from short-term leases and leases of low-value assets. Lease payments are fixed and stipulated in the contract.
Lease contracts can be terminated if the parties do not honour contractual obligations or if there is a mutual agreement to terminate the contract. Options to extend the contracts have not been provided for.
| Right to use land | Right to use buildings | Right to use equipment | Total | |
|---|---|---|---|---|
| Cost | ||||
| As at 1 January 2021 | 32,218,878 | 930,231 | 5,338,513 | 38,487,622 |
| New acquisitions | - | 947,901 | 193,304 | 1,141,205 |
| Disposals | - | - | (134,354) | (134,354) |
| As at 31 December 2021 | 32,218,878 | 1,878,132 | 5,397,463 | 39,494,473 |
| Accumulated depreciation | ||||
| As at 1 January 2021 | (4,287,714) | (428,912) | (3,054,348) | (7,770,974) |
| Depreciation | (2,122,086) | (537,906) | (1,323,036) | (3,983,028) |
| Disposals | - | - | 134,352 | 134,352 |
| As at 31 December 2021 | (6,409,800) | (966,818) | (4,243,032) | (11,619,650) |
| Net carrying amount as at 1 January 2021 | 27,931,164 | 501,319 | 2,284,165 | 30,716,648 |
| Net carrying amount as at 31 December 2021 | 25,809,078 | 911,314 | 1,154,431 | 27,874,823 |
| Land | Buildings | Machinery | Equipment | Ongoing investments | Total | |
|---|---|---|---|---|---|---|
| As at 1 January 2020 | 217,739,798 | 723,021,907 | 4,732,655 | 329,048,249 | 56,142,718 | 1,330,685,327 |
| New acquisitions as a result of control obtained | - | - | - | 1,910,082 | 1,910,082 | |
| New acquisitions | - | - | - | 68,400,698 | 68,400,698 | |
| Disposals | (350,211) | (1,995,224) | (29,908) | (9,997,674) | (158,364) | (12,531,381) |
| Impairments | (1,248,001) | (2,807,464) | (229,783) | (1,536,949) | - | (5,822,197) |
| Reallocation of goodwill | - | - | - | 297,715 | - | 297,715 |
| Transfer between asset categories | 719,507 | 7,815,086 | - | (2,798,881) | (987,699) | 4,748,013 |
| Transfer from ongoing investments | 2,329,818 | 36,509,476 | 487,137 | 33,908,747 | (73,235,178) | - |
| Transfer to investment property | - | (14,075,325) | - | - | (754,148) | (14,829,473) |
| Foreign exchange differences | (896,531) | (1,923,293) | (4,787) | (1,089,785) | (58,130) | (3,972,526) |
| As at 31 December 2020 | 218,294,380 | 746,545,163 | 4,955,314 | 347,831,422 |
| Accumulated depreciation | As at 1 January 2020 | (428,928,691) | (2,097,886) | (189,726,587) | - | (620,753,164) |
|---|---|---|---|---|---|---|
| Depreciation | - | (25,087,406) | (312,590) | (26,355,230) | - | (51,755,226) |
| Disposals | - | 909,188 | 2,585 | 6,661,142 | - | 7,572,915 |
| Impairments | - | 205,794 | - | 532,073 | - | 737,867 |
| Transfer between asset categories | - | (4,598,534) | - | 706,225 | - | (3,892,309) |
| Transfer to investment property | - | 7,964,325 | - | - | - | 7,964,325 |
| Foreign exchange differences | - | 875,742 | 4,231 | 566,982 | - | 1,446,955 |
| As at 31 December 2020 | - | (448,659,582) | (2,403,660) | (207,615,395) | - | (658,678,637) |
| Net carrying amount as at 1 January 2020 | 217,739,798 | 294,093,216 | 2,634,769 | 139,321,662 | 56,142,718 | 709,932,163 |
|---|---|---|---|---|---|---|
| Net carrying amount as at 31 December 2020 | 218,294,380 | 297,885,581 | 2,551,654 | 140,216,027 | 51,259,979 | 710,207,621 |
59 percent of all items of property, plant and equipment in use on 31 December 2021 were fully depreciated (compared to 55 percent as at 31 December 2020).
All items of property, plant and equipment of the Group are unpledged.
None of the Group’s assets are held under finance lease.
When testing asset impairment indicators, the Group determined that the carrying amount of the assets of the cash-generating unit Zagorski metalac d.o.o., cash-generating unit of biogas plants, certain land, buildings and certain investments in progress exceeded the fair value and value in use of these assets. Lower value estimates are mainly a reflection of the lower expectations regarding future cash flows. Therefore, the Group impaired the assets of the cash-generating units as at 31 December 2021 by EUR 6,726,152, based on independent appraisals and internal assessments.
The assumptions used in estimating the value of the cash-generating unit Zagorski metalac d.o.o. and the effects recognised in the Group's financial statements have been explained as part of the goodwill disclosure relating to the Group.
To assess the value of the fixed assets of the cash-generating unit of biogas plants, the 3-year financial plans of the cash-generating unit, showing negative cash flow, were used. Based on this, the Group impaired the total assets of the cash-generating unit of biogas plants by EUR 1,320,938.
To estimate the value of the land, buildings and investments in progress, the Group used the model of comparable market prices less the costs of the sale and impairment of land, buildings and investments in progress in the amount of EUR 1,759,183 based on independent appraiser estimates and internal estimates.
In 2020, when testing asset impairment indicators, the Group determined that the carrying amount of the assets of the cash-generating units El-Tec Mulej d.o.o., Ekoen d.o.o. and Petrol Montenegro MNE d.o.o. exceeded the fair value and value in use of these assets. Therefore, the Group impaired the assets of the cash-generating units by EUR 6,233,941.
| (in EUR) | Land | Buildings | Machinery | Equipment | Ongoing investments | Total | |
|---|---|---|---|---|---|---|---|
| Cost | As at 1 January 2021 | 218,294,380 | 746,545,163 | 4,955,314 | 347,831,422 | 51,259,979 | 1,368,886,258 |
| New acquisitions as a result of control obtained | 28,967,244 | 108,494,151 | 8,253,769 | 33,399,447 | 2,331,159 | 181,445,770 | |
| New acquisitions | - | 252,855 | 6,318 | 5,507,518 | 41,935,717 | 47,702,408 | |
| Disposals | (642,520) | (2,375,310) | (177,107) | (13,283,064) | (676,606) | (17,154,607) | |
| Impairments | (1,017,963) | (5,091,199) | - | (2,129,031) | (596,686) | (8,834,879) | |
| Transfer between asset categories | - | 307,567 | (306,624) | 926,878 | (80,909) | 846,912 | |
| Transfer from ongoing investments | 1,325,712 | 16,462,039 | 487,228 | 15,559,128 | (33,834,107) | - | |
| Transfer to investment property | (3,463) | (551,235) | - | - | - | (554,698) | |
| Transfer from investment property | - | 2,652,014 | - | - | - | 2,652,014 | |
| Foreign exchange differences | 172,854 | 266,719 | (2,792) | 208,887 | 98,617 | 744,285 | |
| As at 31 December 2021 | 247,096,244 | 866,962,764 | 13,216,106 | 388,021,185 | 60,437,164 | 1,575,733,463 |
| Accumulated depreciation | As at 1 January 2021 | - | (448,659,582) | (2,403,660) | (207,615,395) | - | (658,678,637) |
|---|---|---|---|---|---|---|---|
| New acquisitions as a result of control obtained | - | (74,088,161) | (5,960,151) | (28,394,787) | - | (108,443,099) | |
| Depreciation | - | (25,364,575) | (743,218) | (25,582,103) | - | (51,689,896) | |
| Disposals | - | 1,004,879 | 175,380 | 9,961,870 | - | 11,142,129 | |
| Impairments | - | 693,637 | - | 1,415,090 | - | 2,108,727 | |
| Transfer between asset categories | - | 1,984 | (2,408) | 424 | - | - | |
| Transfer to investment property | - | 119,521 | - | - | - | 119,521 | |
| Transfer from investment property | - | (2,388,194) | - | - | - | (2,388,194) | |
| Foreign exchange differences | - | (93,107) | 2,121 | (108,317) | - | (199,303) | |
| As at 31 December 2021 | - | (548,773,598) | (8,931,936) | - | - | - |
| (250,323,218) | (808,028,752) |
|---|---|
| 218,294,380 | 297,885,581 |
| 2,551,654 | 140,216,027 |
| 51,259,979 | 710,207,621 |
| 247,096,244 | 318,189,166 |
|---|---|
| 4,284,170 | 137,697,967 |
| 60,437,164 | 767,704,711 |
| Land | Buildings | Machinery | Equipment | Ongoing investments | Total net carrying amount | |
|---|---|---|---|---|---|---|
| Crodux derivati dvad.o.o. | 28,693,571 | 32,565,585 | 331,132 | 5,003,260 | 1,313,536 | 67,907,084 |
| E 3, d.o.o. | 273,673 | 1,840,405 | 1,962,486 | 1,4001,017,623 | 5,095,587 | |
| New acquisitions as a result of control obtained | 28,967,244 | 34,405,990 | 2,293,618 | 5,004,660 | 2,331,159 | 73,002,671 |
| Energymanagement of buildings | 10,060,984 |
|---|---|
| Investments in wind farms | 5,851,030 |
| Purchase of vehicles | 3,969,470 |
| Investments in third-party fixed assets (Zaječar Public Lightning) | 2,730,137 |
| Geoplin office building - technical tract | 2,446,671 |
| Investment in a storage facility | 2,373,940 |
| E 3 office building | 1,834,746 |
| Land | Buildings | Equipment | Ongoing investments | Total | |
|---|---|---|---|---|---|
| As at 1 January 2020 | 103,350,635 | 535,951,087 | 247,981,148 | 44,292,962 | 931,575,832 |
| New acquisitions | - | - | 30,548,494 | 30,548,494 | |
| Disposals | (350,211) | (1,957,394) | (7,016,822) | (158,364) | (9,482,791) |
| Impairments | - | (2,466,763) | (1,536,949) | - | (4,003,712) |
| Transfers between asset categories | (167,215) | 4,935,901 | 80,304 | (72,736) | 4,776,254 |
| Transfer from ongoing investments | 14,375 | 30,879,533 | 25,732,958 | (56,626,866) | - |
| Transfer to investment property | - | (30,442) | - | (754,148) | (784,590) |
| As at 31 December 2020 | 102,847,584 | 567,311,922 | 265,240,639 | 17,229,342 | 952,629,487 |
| As at 1 January 2020 | - | (381,759,290) | (161,585,211) | - | (543,344,501) |
|---|---|---|---|---|---|
| Depreciation | - | (16,048,512) | (17,495,993) | - | (33,544,505) |
| Disposals | - | 871,231 | 5,937,392 | - | 6,808,623 |
| Impairments | - | 205,794 | 532,073 | - | 737,867 |
| Transfers between asset categories | - | (3,899,012) | 6,703 | - | (3,892,309) |
| Transfer to investment property | - | 30,442 | - | - | 30,442 |
| As at 31 December 2020 | - | (400,599,347) | (172,605,036) | - | (573,204,383) |
| 103,350,635 | 154,191,797 | 86,395,937 | 44,292,962 | 388,231,331 |
|---|---|---|---|---|
| 102,847,584 | 166,712,575 | 92,635,603 | 17,229,342 |
|---|---|---|---|
| Land | Buildings | Equipment | Ongoing investments | Total Cost | |
|---|---|---|---|---|---|
| As at 1 January 2021 | 102,847,584 | 567,311,922 | 265,240,639 | 17,229,342 | 952,629,487 |
| New acquisitions | - | - | 21,901,672 | 21,901,672 | |
| Disposals | (360,494) | (935,220) | (8,119,724) | (676,606) | (10,092,044) |
| Impairments | (1,017,963) | (1,445,168) | (2,129,031) | - | (4,592,162) |
| Transfers between asset categories | - | 943 | 926,878 | (16,253) | 911,568 |
| Transfer from ongoing investments | 1,324,989 | 12,089,495 | 10,707,788 | (24,122,272) | - |
| Transfer from investment property | - | 353,455 | - | - | 353,455 |
| As at 31 December 2021 | 102,794,116 | 577,375,427 | 266,626,550 | 14,315,883 | 961,111,976 |
| Land | Buildings | Equipment | Ongoing investments | Total | |
|---|---|---|---|---|---|
| As at 1 January 2021 | - | (400,599,347) | (172,605,036) | - | (573,204,383) |
| Depreciation | - | (15,896,530) | (16,386,240) | - | (32,282,770) |
| Disposals | - | 881,829 | 7,868,781 | - | 8,750,610 |
| Impairments | - | 693,637 | 1,415,090 | - | 2,108,727 |
| Transfers between asset categories | - | (424) | 424 | - | - |
| Transfer from investment property | - | (222,003) | - | - | (222,003) |
| As at 31 December 2021 | - | (415,142,838) | (179,706,981) | - | (594,849,819) |
| Land | Buildings | Equipment | Ongoing investments | Total |
|---|---|---|---|---|
| 102,847,584 | 166,712,575 | 92,635,603 | 17,229,342 | 379,425,104 |
| Land | Buildings | Equipment | Ongoing investments | Total |
|---|---|---|---|---|
| 102,794,116 | 162,232,589 | 86,919,569 | 14,315,883 | 366,262,157 |
38.4 percent of all items of property, plant and equipment in use on 31 December 2021 were fully depreciated (compared to 34.2 percent as at 31 December 2020).
All items of property, plant and equipment of the Company are unpledged.
The Company has no property, plant and equipment under finance lease.
In accordance with the IAS 36 and based on external and internal sources of information and factors, the Company checked whether there was an indication that the assets may be impaired as at 31 December 2021. When testing asset impairment indicators, the Group determined that the carrying amount of the assets of the cash-generating unit of biogas plants, certain land, buildings and certain investments in progress exceeded the fair value and value in use of these assets.
To assess the value of the fixed assets of the cash-generating unit of biogas plants, the 3-year financial plans of the cash-generating unit, showing negative cash flow, were used. Based on this, the Company impaired the total assets of the cash-generating unit of biogas plants by EUR 1,320,938.
To estimate the value of the land, buildings and investments in progress, the Company used the model of comparable market prices less the costs of sale and impairment of land and buildings in the amount of EUR 1,162,497 based on independent appraiser estimates and internal estimates.
In 2020, when testing asset impairment indicators, the Group determined the need to impair the cash-generating unit EL-TEC Mulej by EUR 3,265,845.
| Investment | Cost (in EUR) |
|---|---|
| Energy management of buildings | 10,060,984 |
| Investment in a storage facility | 2,373,940 |
Investment property comprises buildings (storage facilities, car washes, bars) being leased out by the Group/Company.
The Petrol Group, after assessing the intended use of the property and the long-term goals pursued as at 31 December 2021, determined that certain property held by the Group meets the criteria to be classified as investment property. The Group transferred property of EUR 435,177 (2020: EUR 6,865,149 EUR) from fixed assets to investment property and EUR 263,820 from investment property to fixed assets as a result.
| Investment property | Cost |
|---|---|
| As at 1 January 2020 | 36,335,562 |
| Disposals | (241,532) |
| Cost | Investment property | Investment property |
|---|---|---|
| As at 1 January 2021 | 41,134,662 | 28,678,072 |
| New acquisitions as a result of control obtained | 120,243 | - |
| Impairments | (2,616,094) | (516,016) |
| Transfer between asset categories | 16,297 | 16,297 |
| Transfer to property, plant and equipment | (2,652,014) | (353,455) |
| Transfer from property, plant and equipment | 554,698 | - |
| Foreign exchange differences | 19,587 | - |
| As at 31 December 2021 | 36,577,379 | 27,824,898 |
| Accumulated depreciation | Investment property | Investment property |
|---|---|---|
| As at 1 January 2021 | (23,612,650) | (15,126,190) |
| Depreciation | (1,369,169) | (754,429) |
| Impairments | 2,288,415 | 169,712 |
| Transfer to property, plant and equipment | 2,388,194 | 222,003 |
| Transfer from property, plant and equipment | (119,521) | - |
| Foreign exchange differences | (12,905) | - |
| As at 31 December 2021 | (20,437,636) | (15,488,904) |
| Net carrying amount as at 1 January 2021 | 17,522,012 | 13,551,882 |
|---|---|---|
| Net carrying amount as at 31 December 2021 | 16,139,743 | 12,335,994 |
In 2021, revenue generated by the Group from investment property totalled EUR 3,664,417 (2020: EUR 2,936,604). The Group estimates that the fair value of investment property as at 31 December 2021 amounts to EUR 28,624,904 (31 December 2020: EUR 32,934,232). The Group assesses fair value using the standardised cash flows capitalisation method, whereby cash flows consist mainly of rents received from the lease of investment property.
To assess the fair value of investment property, the required rate of return from 8.95 to 11.95 percent after taxes (2020: from 8.95 to 11.95 percent) and the long-term growth rate of lease payments from 0.05 to 1 percent (2020: from 0.05 to 1 percent) were used.
In the process of testing investment property impairment indicators, the Group found that the carrying amount of individual investment property exceeded the fair value and value in use of these assets. Therefore, the Group impaired investment property as at 31 December 2021 by EUR 327,679 (31 December 2020: EUR 3,313,616), based on internal assessments.
Petrol d.d., Ljubljana
In 2021, revenue generated by the Company from investment property totalled EUR 3,060,974 (2020: EUR 2,336,056). The Company estimates that the fair value of investment property as at 31 December 2021 amounts to EUR 23,184,416 (31 December 2020: EUR 27,317,468). The Company assesses fair value using the standardised cash flows capitalisation method, whereby cash flows consist mainly of rents received from the lease of investment property. A 0.05 percent growth (2020: 0.05 percent) and a required rate of return of 8.95 percent (2020: 8.95 percent) are assumed.
In the process of testing investment property impairment indicators, the Company found that the carrying amount of individual investment property exceeded the fair value and value in use of these assets. Therefore, the Company impaired investment property as at 31 December 2021 by EUR 346,304 (31 December 2020: EUR 741,708), based on internal assessments.
The Petrol Group
The directly owned subsidiaries of Petrol d.d., Ljubljana are as follows:
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| IGES d.o.o. | Dunajska cesta 50, Ljubljana, Slovenia | 100% | 15,829,559 | 16,323 |
| Petrol Skladiščenje d.o.o. | Zaloška 259, Ljubljana Polje, Slovenia | 100% | 815,957 | (406) |
| Petrol GEO d.o.o. | Mlinska ulica 5d, Lendava, Slovenia | 100% | 2,187,429 | 1,319,361 |
| Ekoen d.o.o. | Luče 117A, Luče, Slovenia | 100% | 777,662 | 10,054 |
| Ekoen S d.o.o. | Ljubljanska cesta 35, Domžale, Slovenia | 100% | 15,330 | 7,015 |
| MBills d.o.o. | Tržaška cesta 118, Ljubljana, Slovenia | 100% | 4,545,214 | (1,125,601) |
| Geoplin d.o.o. Ljubljana | Cesta Ljubljanske brigade 11, Ljubljana, Slovenia | 74.28% | 157,991,783 | 17,507,250 |
| Atet d.o.o. | Devova ulica 6A, Ljubljana, Slovenia | 72.96% | 2,169,734 | 288,833 |
| E 3, d.o.o. | Prvomajska ulica 21, Nova Gorica, Slovenia | 100% | 15,760,804 | 579,292 |
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| Petrol d.o.o. | Oreškovićeva 6H, Zagreb, Croatia | 100% | 208,248,827 | 22,859,316 |
| Croduxderivati dva d.o.o. | Savska Opatovina 36, Zagreb, Croatia | 100% | 38,463,615 | 11,974,800 |
| Vjetroelektrane Glunča d.o.o. | Krapanjska cesta 8, Šibenik, Croatia | 100% | 11,796,227 | 1,311,943 |
| Vjetroelektrana Ljubač d.o.o. | Krapanjska cesta 8, Šibenik, Croatia | 100% | 7,899,024 | 523,514 |
| Zagorski metalac d.o.o. | Celine 2, Zabok, Croatia | 75% | 9,125,420 | 381,981 |
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| Petrol d.o.o. | Beograd Ulica Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 32,297,689 | 3,167,892 |
| Beogas d.o.o. | Beograd Ulica Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 21,447,355 | 2,044,124 |
| Petrol LPG d.o.o. | Ulica Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 10,756,386 | (117,091) |
| STH Energy d.o.o. | Kraljevo Miloša Velikog 52-2/14, Kraljevo, Serbia | 80% | 515,474 | (32,731) |
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| Petrol Crna Gora MNE d.o.o. | Josipa Broza Tita 19, Podgorica, Montenegro | 100% | 21,549,882 | 1,213,769 |
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| Petrol BH Oil Company d.o.o. | Sarajevo Tešanjska 24 a, Sarajevo, Bosnia and Herzegovina | 100% | 69,110,614 | 3,485,218 |
| Petrol Hidroenergija d.o.o. | Teslić Branka Radičevića 1, Teslić, Bosnia and Herzegovina | 80% | 7,195,384 | 562,821 |
| Petrol Power d.o.o. | Sarajevo Tešanjska 24 a, Sarajevo, Bosnia and Herzegovina | 99.75% | (1,945,272) | (202,272) |
| Petrol Trade Handelsgesellschaft m.b.H. | Elisabethstrasse 10 Top 4 u.5, Vienna, Austria | 100% | 1,999,904 | 438,820 |
| Petrol-Energetika DOOEL | Skopje Ul. Sv. Kiril i Metodij 20, Skopje, Macedonia | 100% | 111,118 | 1,661 |
| Petrol Bucharest ROM S.R.L. | B-dul Tudor Vladimirescu 22, Sector 5, Bucharest, Romania | 100% | (84,759) | 3,253 |
| Petrol-OTI-Terminal L.L.C. | Miradi e Epeme b.b., Kosovo Polje, Kosovo | 100% | 8,561,507 | 2,877 |
The companies Petrol LPG d.o.o. Beograd, Petrol d.o.o. Beograd, Petrol d.o.o., Geoplin d.o.o. and Ekoen d.o.o. are the controlling companies of the Petrol LPG Group, the Petrol Beograd Group, the IGES Group, the Petrol Zagreb Group, the Geoplin Group and the Ekoen Group, respectively. The subsidiaries from these groups are presented in the table below.
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| Tigar Petrol d.o.o. | Beograd Kosovska 17, Beograd (Stari Grad), Serbia | 100% | (324,190) | (111,421) |
| Petrol LPG HIB d.o.o. | Preduzetnička zona bb, Šamac, Bosnia and Herzegovina | 100% | (77,861) | 54,823 |
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) | Net profit or loss for 2021 (in EUR) |
|---|---|---|---|---|
| Petrol Lumennis PB JO d.o.o. | Beograd Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 1,155 | 996 |
| Petrol Lumennis VS d.o.o. | Beograd Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 1,117 | 858 |
| Petrol Lumennis ZA JO d.o.o. | Beograd Omladinskih brigada 88-90, Novi Beograd, Serbia | 100% | 685 | 684 |
| Petrol Lumennis ŠI JO d.o.o. | Beograd Omladinskih brigada 88-90, Novi Beograd, Serbia | 100% | 66 | 65 |
| Petrol Lumennis ŠI JO d.o.o. | Beograd Omladinskih brigada 88-90, Novi Beograd, Serbia | 100% | 1 |
| Naselje Ripač b.b., Bihać, Bosnia and Herzegovina | 100% | - | - |
|---|---|---|---|
| Petrol javna rasvjeta d.o.o. | Oreškovićeva 6h, Zagreb, Croatia | 100% | 71,388 | 29,213 |
|---|---|---|---|---|
| ADRIA-PLIN d.o.o. | Ulica Stinice 15, Kastel Gomilica, Croatia | 75% | 72,795 | (88,370) |
| Geocom d.o.o. | Cesta Ljubljanske brigade 11, Ljubljana, Slovenia | 100% | 432,226 | - |
|---|---|---|---|---|
| Geoplin d.o.o. | Radnička cesta 39, Zagreb, Croatia | 100% | 1,389,562 | 556,565 |
| Geoplin d.o.o. Beograd | Zelenogorska ulica broj 1g, 11070 Novi Beograd, Serbia | 100% | 37,994 | - |
| Ekoen GG d.o.o. | Luče 117a, Luče, Slovenia | 100% | (31,327) | (19,465) |
|---|---|---|---|---|
| Name of subsidiary | Ownership interest | Equity as at 31 December 2021 (in EUR) |
|---|---|---|
| Crodux derivati dva d.o.o. | 191,700,000 | |
| Petrol d.o.o. | 136,133,985 | |
| Geoplin d.o.o. Ljubljana | 56,901,637 | |
| Petrol BH Oil Company d.o.o. Sarajevo | 34,537,990 | |
| Petrol d.o.o. Beograd | 23,602,819 | |
| Petrol Crna Gora MNE d.o.o. | 19,396,000 | |
| IGES d.o.o. | 15,774,400 | |
| E 3, d.o.o. | 14,950,000 | |
| Beogas d.o.o. Beograd | 12,774,000 | |
| Vjetroelektrarna Ljubač d.o.o. | 9,056,761 | |
| Zagorski metalac d.o.o. | 7,600,316 | |
| Vjetroelektrane Glunča d.o.o. | 6,523,622 | |
| MBills d.o.o. | 5,955,122 | |
| Petrol Hidroenergija d.o.o. Teslić | 5,000,409 | |
| Petrol LPG d.o.o. | 4,770,601 | |
| Atet d.o.o. | 4,044,396 | |
| Petrol - OTI - Terminal L.L.C. | 1,805,000 | |
| Ekoen d.o.o. | 1,249,867 | |
| Petrol Skladiščenje d.o.o. | 794,951 | |
| Petrol GEO d.o.o. | 697,020 | |
| STH Energy d.o.o. Kraljevo | 467,868 | |
| Petrol Trade Handelsgesellschaft m.b.H. | 147,830 | |
| Ekoen S d.o.o. | 50,737 | |
| Petrol-Energetika DOOEL Skopje | 25,000 | |
| Petrol Bucharest ROM S.R.L. | 10,000 | |
| Petrol Praha CZ S.R.O. | - | |
| Petrol Trade Slovenija L.L.C. | - | |
| Petrol Power d.o.o. Sarajevo | -- |
| 553,970,331 | 351,013,627 |
|---|---|
| Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) | +0.5 | -0.5 |
|---|---|---|---|---|
| (6,879) | (8,016) | |||
| (17,348) | - | |||
| 7,687 | 8,960 | |||
| 21,669 | - | |||
| (2,700) | (2,100) | |||
| (500) | - | |||
| 3,000 | 2,400 | |||
| 5,500 | - | |||
| (1,300) | (1,000) | |||
| (2,200) | (896) | |||
| 1,400 | 1,000 | |||
| 2,600 | - | |||
| (512) | (439) | |||
| (872) | - | |||
| 629 | 538 | |||
| 1,315 | - | |||
| (234) | (151) | |||
| (368) | (368) | |||
| 257 | 166 | |||
| 445 | - | |||
| (109) | (86) | |||
| (180) | (180) | |||
| 133 | 106 | |||
| 268 | - | |||
| (798) | (598) | |||
| (1,317) | (1,161) | |||
| 912 | 684 | |||
| 1,716 | - | |||
| (3,252) | (2,370) | |||
| (5,302) | - | |||
| 3,711 | 2,709 | |||
| 6,898 | - | |||
| + 0.5 | - | |||
| (549) | - | |||
| - 0.5 | - | |||
| - 573 | - | |||
| + 0.5 | - | |||
| (1,444) | (1,444) | |||
| (692) | - | |||
| - 1,550 | - | |||
| + 0.5 | - | |||
| (175) | - |
| Discount rate (WACC) | 9.80% | 0% | 2% | 2% | 10.90% |
|---|---|---|---|---|---|
| 9.60% | 10.70% | 1% | 5.90% | 2.20% | |
| 1.70% | - | 9.50% | 6.90% | 9.00% | |
| 10.30% | 9.50% | 2.20% | - | - | |
| 8.50% |
Major new acquisitions of investments in subsidiaries were as follows in 2021:
In accordance with IAS 36, the Company performed a review of the investment impairment indicators and found that the carrying amount of investments of subsidiaries MBills d.o.o., Petrol LPG d.o.o. and Zagorski metalac d.o.o. exceeds their fair value or value in use. Due to this, the Company impaired the investments on the basis of valuations by EUR 11,182,338, specifically the investment in the subsidiary MBills d.o.o. by EUR 6,173,392, an investment in Petrol LPG d.o.o. by EUR 4,687,347 and an investment in Zagorski metalac d.o.o. by EUR 321,599 EUR. In 2021, the Company impaired two companies that were liquidated in 2021. Petrol Praha CZ S.R.O. was impaired by EUR 9,958 and Petrol Trade Slovenija L.L.C by EUR 1,000. In 2021, the Company impaired investments in subsidiaries by EUR 11,193,296.
For MBills d.o.o. an estimate of free cash flow for a 5-year period, after which normalised cash flow is taken into account, was used in testing goodwill for impairment. The cash flow forecast period takes into account the company's operations and investment activities. The required rate of return of 24.01 percent after taxes was used in the calculation (2020: 19.8 percent). The observed annual growth rate of the remaining free cash flow (the residual value) was 2 percent (2020: 2 percent). In 2020, the investment in MBills d.o.o. was not impaired.
| (in EUR thousand) | Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) |
|---|---|---|---|
| +0.5 | - 0.5 | (27,282) | (21,776) | (45,837) | ||
|---|---|---|---|---|---|---|
| - 0.5 | + 0.5 | 31,836 | 25,404 | 62,374 | ||
| +0.5 | - 0.5 | (10,420) | (13,045) | (22,636) | ||
| Croduxderivati dva d.o.o. | - 0.5 | + 0.5 | 11,269 | 14,097 | 26,415 | |
| +0.5 | - 0.5 | (6,137) | (3,726) | (9,278) | (5,855) | |
| - 0.5 | + 0.5 | 7,131 | 4,286 | 12,315 | ||
| +0.5 | - 0.5 | (1,255) | (548) | (1,734) | (1,297) | |
| - 0.5 | + 0.5 | 1,386 | 607 | 2,089 | ||
| +0.5 | - 0.5 | (1,220) | (7,037) | (2,193) | (3,220) | |
| E 3,d.o.o. | - 0.5 | + 0.5 | 1,422 | (4,599) | 2,976 | 395 |
| + 0.5 | - | (1,413) | - | (1,413) | ||
| - 0.5 | - | 1,507 | - | 1,507 | ||
| +0.5 | - 0.5 | (292) | (335) | (582) | (898) | |
| - 0.5 | + 0.5 | 345 | 397 | 817 | ||
| + 0.5 | - | (544) | - | (544) | ||
| - 0.5 | - | 570 | - | 570 | ||
| +0.5 | - 0.5 | (165) | (124) | (278) | (278) | |
| - 0.5 | + 0.5 | 183 | 137 | 335 | ||
| + 0.5 | - | (182) | - | (182) | ||
| - 0.5 | - | 194 | - | 194 | ||
| +0.5 | - 0.5 | (534) | (397) | (888) | (791) | |
| - 0.5 | + 0.5 | 593 | 440 | 1,091 | ||
| +0.5 | - 0.5 | (588) | (483) | (988) | (185) | |
| - 0.5 | + 0.5 | 708 | 582 | 1,437 |
11.70% 2%
Atet d.o.o. 7.40% 2%
Petrol LPG d.o.o. 11.20%
14.03% 2%
Petrol Hidroenergija d.o.o. Teslić 9.10% -
MBills d.o.o. 24.04%
8.00% 2%
Vjetroelektrana Glunča d.o.o. 8.70% -
Zagorski metalac d.o.o. 6.80%
1.90%
Vjetroelektrane Ljubač d.o.o. 8.70% -
8.50%
9.30% 2.20%
Petrol Crna Gora MNE d.o.o. 11.50% 1.70%
Petrol d.o.o. Beograd
Petrol d.o.o.
Discount rate (WACC)
8.50% 2%
10.00%
12.00% -0.90%
| (in EUR) | 2021 | 2020 |
|---|---|---|
| As at 1 January | 351,013,627 | 341,346,801 |
| New acquisitions | 214,150,000 | 10,826,202 |
| Impairment | (11,193,296) | (1,159,376) |
| As at 31 December | 553,970,331 | 351,013,627 |
For Petrol LPG d.o.o. an estimate of free cash flow for a 5-year period, after which normalised cash flow is taken into account, was used in testing goodwill for impairment. The cash flow forecast period takes into account the company's operations and investment activities. The required rate of return of 11.7 percent after taxes was used in the calculation. The observed annual growth rate of the remaining free cash flow (the residual value) was 2 percent. In 2020, the investment in Petrol LPG d.o.o. was not impaired.
Cash flow forecast period takes into account the company's operations and investment activities. The required rate of return of 8 percent after taxes was used in the calculation (2020: 10.3 percent). The observed annual growth rate of the remaining free cash flow (the residual value) was 0 percent (2020: 0 percent). In 2020, the investment in Zagorski metalac d.o.o. was impaired by EUR 492,750.
In 2020, when testing impairment indicators of investments in subsidiaries, the Company impaired them by EUR 1,159,376.
The agreement on the exchange of interests in Plinhold d.o.o. for interests in Geoplin entered into with the Republic of Slovenia on 29 December 2017 envisages a second stage of the exchange to take place following the fulfilment of suspensive conditions. During this second stage of exchanging the interests, Petrol d.d., Ljubljana will acquire a 25.01-percent interest in Geoplin d.o.o. in exchange for the 16.98-percent holding in Plinhold d.o.o. that it had disposed of.
If the second stage under the above agreement on the exchange of interests and the acquisition of interests from other stakeholders is carried out in full, it will cause the non-controlling interest in the equity of the Petrol Group to decrease by EUR 39,688,636.
In addition to a contract for the acquisition of a 76-percent interest in Atet d.o.o. of July 2019, an options contract was signed with the seller under which Petrol d.d., Ljubljana has an option to acquire the remaining interest in Atet d.o.o. in the period from 1 May 2022 to 30 July 2022. The seller, on the other hand, has a put option to sell the remaining interest in the period from 31 July 2022 to 31 October 2022.
A more detailed overview of the Group's structure is presented in chapter Companies in the Petrol Group of the business report.
After analysing the contracts of members of jointly controlled entities, the Group/Company established that it does not control those entities, disclosing them as investments in jointly controlled entities as a result.
In conformity with the equity method, the Group recorded attributable profit of EUR 300,040 in 2021 (2020: EUR 124,978). From this amount, dividends on retained earnings, which stood at EUR 135,495 (2020: EUR 172,934) were deducted.
In 2021, the Group sold its interest in the jointly controlled entity Vjetroelektrana Dazlina d.o.o. The Group increased the capital of the jointly controlled entity Petrol OTI Slovenija L.L.C. in 2020 by converting financial receivables to equity. The company was sold at the end of 2020.
| Ownership and voting rights | Name of jointly controlled entity | Address of jointly controlled entity | Business activities |
|---|---|---|---|
| 50% | Geoenergo d.o.o. | Mlinska ulica 5, Lendava, Slovenia | Extraction of natural gas, oil and gas condensate |
| 25% | Soenergetika d.o.o. | Stara cesta 3, Kranj, Slovenia | Electricity, gas and steam supply |
| - | Vjetroelektrana Dazlina d.o.o. | Krapanjska cesta 8, Šibenik, Croatia | Electricity production |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Soenergetika d.o.o. | 417,259 | 440,084 | 210,000 | 210,000 |
| Geoenergo d.o.o. | 287,242 | 99,872 | - | - |
| Vjetroelektrana Dazlina d.o.o. | - | 22,060 | - | 23,000 |
| Total investments in jointly controlled entities | 704,501 | 562,016 | 210,000 | 233,000 |
| 2021 | 2020 | |
|---|---|---|
| As at 1 January | 562,016 | 610,273 |
| Attributed profit/loss | 300,040 | 124,978 |
| Dividends received | (135,495) | (172,934) |
| Transfer to investments in jointly controlled entities | - | (915,000) |
| Disposals | (22,060) | (915,000) |
| Foreign exchange differences | - | (301) |
| As at 31 December | 704,501 | 562,016 |
Significant amounts from the financial statements of jointly controlled entities
| Entity | 2020 | 2021 |
|---|---|---|
| Petrol d.d., Ljubljana | Changes in investments in jointly controlled entities |
The decrease in the investment relates to Vjetroelektrana Dazlina d.o.o., which was sold by the Group in 2021.
The increase in investments in jointly controlled entities in 2020 relates to the capital increase of the jointly controlled entity Petrol OTI Slovenija L.L.C. by means of converting debt to capital.
The Company's financial receivables from Petrol OTI Slovenija L.L.C. were partially impaired. Petrol OTI Slovenija L.L.C. was sold at the end of 2020.
The annex to the business cooperation agreement in which the sale of the investment in the company Vjetroelektrana Dazlina d.o.o. is agreed contains a call option under which Petrol d.d., Ljubljana has an option to acquire a 50-percent interest in Vjetroelektrana Dazlina d.o.o. at a price of 23,000 EUR until 4 June 2022.
The original contract for the acquisition of a 50-percent interest in Vjetroelektrarna Dazlina d.o.o. from 2017 contains a call option under which Petrol d.d., Ljubljana has an option to acquire the remaining 50-percent interest in Vjetroelektrarna Dazlina d.o.o. at fair value. The option is enforceable subject to suspensive conditions.
| Entity | Assets | Liabilities (debt) | Revenue | Net profit or loss | Net profit or loss attributable to the Petrol Group |
|---|---|---|---|---|---|
| Soenergetika d.o.o. | 2,321,252 | 641,686 | 3,502,343 | 549,244 | 137,311 |
| Geoenergo d.o.o. | 743,621 | 446,800 | 660,704 | (22,770) | (11,385) |
| Vjetroelektrana Dazlina d.o.o. | 123,303 | 123,275 | - | (1,643) | (822) |
| Entity | Assets | Liabilities (debt) | Revenue | Net profit or loss | Net profit or loss attributable to the Petrol Group |
|---|---|---|---|---|---|
| Soenergetika d.o.o. | 2,106,340 | 518,068 | 3,324,841 | 457,950 | 114,487 |
| Geoenergo d.o.o. | 2,263,885 | 1,592,324 | 3,360,029 | 374,740 | 187,370 |
| 2021 | 2020 | |
|---|---|---|
| As at 1 January | 233,000 | 233,000 |
| Transfer to investments in jointly controlled entities | - | 1,070,000 |
| Disposals | (23,000) | (1,070,000) |
| As at 31 December | 210,000 | 233,000 |
A more detailed overview of the Group's structure is presented in chapter Companies in the Petrol Group of the business report.
| Name of Associate | Address of Associate | Business Activities | Ownership and Voting Rights |
|---|---|---|---|
| Plinhold d.o.o. | Mala ulica 5, Ljubljana, Slovenia | Management of gas infrastructure | 30% |
| Aquasystems d.o.o. | Dupleška cesta 330, Maribor, Slovenia | Construction and operation of industrial and municipal water treatment plants | 26% |
| Knešca d.o.o. | Kneža 78, Most na Soči, Slovenia | Electricity production | 47.27% |
| Ivicom Energy d.o.o. | Jug Bogdanova 2, Žagubica, Serbia | Electricity production | - |
| The Petrol Group | 2021 | 2020 | |
|---|---|---|---|
| Plinhold d.o.o. | 53,090,764 | 52,230,606 | |
| Aquasystems d.o.o. | 1,211,955 | 1,161,062 | |
| Knešca d.o.o. | 866,907 | - | |
| Ivicom Energy d.o.o. | - | 2,561,723 | |
| Total Investments in Associates | 55,169,626 | 55,953,391 |
| 2020 | 2021 |
|---|---|
| Petrol d.d., Ljubljana |
The decrease in investments in associates in 2021 is the result of the sale of Ivicom Energy d.o.o. at book value in accordance with the put option from the purchase agreement of a 25-percent interest in Ivicom Energy d.o.o. The decrease in 2020 refers to the reduction of share capital in Aquasystems d.o.o.
The agreement on the exchange of interests in Plinhold d.o.o. for interests in Geoplin d.o.o. Ljubljana entered into with the Republic of Slovenia on 29 December 2017 envisages a second stage of the exchange to take place following the fulfilment of suspensive conditions. During this second stage of exchanging the interests, Petrol d.d., Ljubljana will acquire a 25.01-percent interest in Geoplin d.o.o. in exchange for the 16.98-percent holding in Plinhold d.o.o. that it had disposed of.
| Assets | Liabilities (debt) | Revenue | Net profit or loss | Net profit or loss attributable to the Petrol Group | |
|---|---|---|---|---|---|
| Plinhold d.o.o. | 322,500,000 | 109,200,000 | 45,100,000 | 8,400,000 | 2,494,674 |
| Aquasystems d.o.o. | 9,464,133 | 5,141,692 | 7,873,217 | 2,938,298 | 763,957 |
| Ivicom Energy d.o.o. | 1,313,246 | 1,393,881 | 127 | (85,717) | (21,429) |
| Assets | Liabilities (debt) | Revenue | Net profit or loss | Net profit or loss attributable to the Petrol Group | |
|---|---|---|---|---|---|
| Plinhold d.o.o. | 328,700,000 | 112,900,000 | 58,800,000 | 4,500,000 | 1,336,433 |
| Aquasystems d.o.o. | 7,967,703 | 3,397,011 | 7,932,017 | 3,080,437 | 800,914 |
| Knešca d.o.o. | 1,438,741 | 109,072 | 297,124 | 101,598 | 48,026 |
| 2021 | 2020 | |
|---|---|---|
| As at 1 January | 29,185,477 | 29,939,454 |
| Decrease | (2,575,000) | (753,977) |
| As at 31 December | 26,610,477 | 29,185,477 |
Financial assets at fair value through other comprehensive income stand for investments in the shares and interests of companies and banks, as well as investments in mutual funds and bonds.
The Petrol Group and Petrol d.d., Ljubljana's financial assets at fair value through other comprehensive income are carried at fair value.
| (in EUR) | 31 December 2021 | 31 December 2020 | ||
|---|---|---|---|---|
| Current balance of financial assets at fair value through other comprehensive income | 1,420,486 | - | 1,078,208 | - |
| Bonds | 334,077 | - | ||
| Assets arising from commodity swaps | 22,238 | 209,094 | 22,238 | 209,094 |
| 1,776,801 | 209,094 | 1,100,446 | 209,094 |
| Shares of companies | Interests in companies | Bonds |
|---|---|---|
| 2,068,908 | 2,064,136 | - |
| 1,871,378 | 246,536 | 395,943 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| As at 1 January | 4,528,987 | 4,528,987 | 2,117,914 | 2,117,914 |
| Transfer of bonds to current assets | (334,077) | - | - | - |
| New acquisitions | - | 1,398,705 | - | 1,398,705 |
| Disposals | - | (419,612) | - | (419,612) |
| Impairment | (61,866) | (979,093) | - | (979,093) |
| As at 31 December | 4,133,044 | 4,528,987 | 2,117,914 | 2,117,914 |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Loans and other financial receivables | 991,831 | 2,680,471 | 83,299,185 | 58,124,422 |
| Total non-current financial receivables | 991,831 | 2,680,471 | 83,299,185 | 58,124,422 |
Non-current financial receivables of EUR 83,299,185 (31 December 2020: EUR 58,124,422) comprise non-current financial receivables from Group companies totalling EUR 83,233,789 (31 December 2020: EUR 56,492,385) and non-current financial receivables from others equalling EUR 65,396 (31 December 2020: EUR 1,632,037).
Non-current financial receivables from Group companies are presented in the table below.
| 2021 | 2020 | |
|---|---|---|
| As at 1 January | 2,680,471 | 5,017,649 |
| New acquisitions as a result of control obtained | 2,656 | - |
| New loans | 8,231 | 5,840,755 |
| Loans repaid | (1,602,313) | (6,552,298) |
| Transfer to current financial receivables | (100,259) | (1,625,976) |
| Foreign exchange differences | 3,045 | 341 |
| As at 31 December | 991,831 | 2,680,471 |
| 2021 | 2020 | |
|---|---|---|
| Non-current financial receivables from Group companies | ||
| Crodux derivati dva d.o.o. | 25,980,522 | - |
| Vjetroelektrarna Ljubač d.o.o. | 25,786,626 | 25,786,626 |
| Petrol d.o.o. Beograd | 16,200,000 | 17,200,000 |
| Petrol Crna Gora MNE d.o.o. | 7,500,000 | 7,500,000 |
| Petrol LPG d.o.o. | 6,000,000 | 4,205,918 |
| STH Energy d.o.o. Kraljevo | 1,402,492 | 1,402,492 |
| Ekoen d.o.o. | 266,400 | 299,600 |
| Ekoen S d.o.o. | 97,749 | 97,749 |
| Total | 83,233,789 | 56,492,385 |
| 2021 | 2020 | |
|---|---|---|
| As at 1 January | 58,124,422 | 31,876,297 |
The majority of non-current operating receivables consist of the receivables due to Petrol d.d., Ljubljana.
The Petrol Group and Petrol d.d., Ljubljana Non-current operating receivables from companies include EUR 1,214,651, which refers to receivables arising from assets allocated over the long term for the restructuring of the company Nafta Lendava, d.o.o. that Petrol d.d., Ljubljana was obliged to provide under an agreement concluded with the Government of the Republic of Slovenia. Because the repayment of the non-current operating receivables is contingent on the generation and distribution of profit of the company Geoenergo d.o.o., an allowance was made for the entire receivable.
Other receivables of the Group in the amount of EUR 8,226,580 (2020: EUR 10,516,196) refer to the non-current portion of receivables arising from selling solar power plants on instalment plans and likewise other receivables of the Company in the amount of EUR 8,218,927 (2020: EUR 10,502,758), and to other receivables.
The Petrol Group has no inventories that are pledged as security for liabilities.
After checking the value of goods inventories as at 31 December 2021, the Group determined that the carrying amount of certain products exceeded their recoverable amount. Consequently, the Group revalued the inventories with a net realisable value, i.e. the estimated selling price in the ordinary course of business less the estimated costs to sell, that was lower than their carrying amount by EUR 7,205,752 (2020: EUR 7,331,973) to match their net realisable value, taking into account the market prices as at the date of the financial statements.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Receivables from companies | 1,216,662 | 1,224,114 | 1,214,651 | 1,214,651 |
| Allowance for receivables from companies | (1,214,651) | (1,214,651) | (1,214,651) | (1,214,651) |
| Receivables from municipalities | 180 | 39,656 | 180 | 39,656 |
| Other receivables | 8,226,580 | 10,516,196 | 8,218,927 | 10,502,758 |
| Total non-current operating receivables | 8,228,771 | 10,565,315 | 8,219,107 | 10,542,414 |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Spare parts and materials | 9,990,768 | 2,430,425 | 2,393,989 | 2,152,317 |
| Merchandise: | 168,200,520 | 137,723,770 | 94,179,250 | 85,378,313 |
| - fuel | 109,844,027 | 71,457,024 | 64,589,822 | 56,735,413 |
| - other petroleum products | 98,160 | 525,972 | 95,334 | 118,045 |
| - other merchandise | 58,258,333 | 65,740,774 | 29,494,094 | 28,524,855 |
| Total inventories | 178,191,288 | 140,154,195 | 96,573,239 | 87,530,630 |
The Company has no inventories that are pledged as security for liabilities.
After checking the value of goods inventories as at 31 December 2021, the Company determined that the net realisable value of the inventories was higher than the cost of goods, which is why it did not impair their value in 2021. In 2020, the Company did not impair its inventories.
The Petrol Group In addition to the loans of EUR 2,040,672 granted by Petrol d.d., Ljubljana to others (for an explanation, see the disclosure relating to the Company), the loans granted include short-term loans of EUR 17,330,743 (EUR 31,269,343 as at 31 December 2020) granted to other companies, mainly in connection with the payment of goods delivered.
Due to a change in the estimated value of collaterals for loans granted, the Group reversed the adjustment to the value of the loans and interest by EUR 2,588,783 in 2021. In 2020, the value of the adjustment decreased by EUR 1,043,872 relative to the previous period.
include the short-term portion of loans to Group companies totalling EUR 14,387,178 (EUR 20,978,017 as at 31 December 2020) and short-term loans to others equalling EUR 2,040,672 (EUR 2,003,804 as at 31 December 2020). In 2020, loans to the jointly controlled entity Vjetroelektrarna Dazlina in the amount of EUR 68,800.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Loans granted | 19,371,415 | 33,341,947 | 16,427,850 | 23,050,622 |
| Adjustment to the value of loans granted | (3,751,210) | (1,330,433) | (1,285,380) | (1,285,380) |
| Time deposits with banks (3 months to 1 year) | 517,546 | 593,958 | -- | -- |
| Interest receivables | 293,088 | 122,759 | 5,424,514 | 5,000,553 |
| Allowance for interest receivables | (262,147) | (94,141) | (4,385,935) | (4,518,069) |
| Total current financial receivables | 16,168,692 | 32,634,090 | 16,181,049 | 22,247,726 |
Short-term loans to Group companies are presented below.
Short-term loans to others of EUR 2,040,627 refer to loans to companies for the payment of goods delivered of EUR 1,723,403 (EUR 1,679,335 as at 31 December 2020) and other loans of EUR 317,269 (EUR 324,469 as at 31 December 2020). The Company did not have loans arising from the sale of financial instruments as at 31 December 2021 nor did it have such loans as at 31 December 2020.
In 2021, the adjustment to the value of interest receivables in the amount of EUR 132,134 was eliminated and is the result of interest payments. In 2020, the decrease in the allowance for current receivables is the result of a loan granted to a jointly controlled entity and of the allowance being transferred to an investment in a jointly controlled entity that was sold at the end of 2020.
Other operating receivables are mainly receivables from banks from card operations. The changes in allowances are presented in Note 7.1.
Contract assets refer to short-term accrued revenue from merchandise. Accrued revenue as at 31 December 2021 stood at EUR 3,338,893 (2020: EUR 1,949,652) in the case of the Group and at EUR 7,604,649 (2020: EUR 3,276,761) in the case of Petrol d.d., Ljubljana. Contract assets were not impaired.
| (in EUR) | 31 December 2021 | 31 December 2020 |
|---|---|---|
| Loans to Group companies | ||
| E 3, d.o.o. | 7,600,000 | - |
| Petrol Power d.o.o. Sarajevo | 3,562,233 | 3,562,233 |
| Atet d.o.o. | 2,320,986 | 1,306,671 |
| Petrol Bucharest ROMS.R.L. | 583,234 | 687,300 |
| Vjetroelektrarna Ljubač d.o.o. | 258,500 | 258,500 |
| Ekoen d.o.o. | 33,200 | 33,200 |
| Ekoen Sd.o.o. | 19,550 | 19,550 |
| Petrol Oti Terminali d.o.o. | 9,475 | - |
| Geoplin d.o.o. Ljubljana | - | 15,000,000 |
| Petrol Praha CZ s.r.o. | - | 100,563 |
| Petrol Trade Slovenija L.L.C. | - | 10,000 |
| Total | 14,387,178 | 20,978,017 |
December 2021.
All of the above financial assets arising from derivative financial instruments should be considered in conjunction with outstanding contracts disclosed under financial liabilities in Note 6.36.
The Company’s share capital totals EUR 52,240,977 and is divided into 2,086,301 ordinary shares with a nominal value of EUR 25.04. All the shares have been paid up in full. All 2,086,301 ordinary shares (designated PETG) are listed on the Ljubljana Stock Exchange. The quoted share price as at 31 December 2021 was EUR 508.00 per share (EUR 325.00 as at 31 December 2020), and the book value per share of the Group as at 31 December 2021 was EUR 435.55 (EUR 396.24 as at 31 December 2020).
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Assets arising from commodity swaps | 34,337,157 | 11,105,252 | 34,231,810 | 11,050,505 |
| Assets arising from interest rate swaps | 329,734 | - | 329,734 | - |
| Assets arising from forward contracts | - | 2,636 | - | 2,636 |
| Total financial assets at fair value through profit or loss | 34,666,891 | 11,107,888 | 34,561,544 | 11,053,141 |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Prepayments and collaterals | 61,569,731 | 73,803,420 | 34,494,898 | 24,677,675 |
| Prepaid licences, subscriptions, specialised literature, etc. | 3,573,415 | 1,579,289 | 2,841,366 | 1,390,210 |
| Prepaid insurance premiums | 1,332,648 | 734,485 | 971,052 | 461,928 |
| Other deferred costs | 19,242,965 | 2,389,316 | 12,421,468 | 842,063 |
| Total prepayments and other assets | 85,718,759 | 78,506,510 | 50,728,784 | 27,371,876 |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Cash in banks | 91,918,939 | 79,888,438 | 53,148,173 | 39,282,462 |
| Cash | 8,293,516 | 6,987,005 | 4,419,224 | 5,010,879 |
| Short-term deposits (up to 3 months) | 14,435 | 1,799,509 | - | 377,184 |
| Total cash and cash equivalents | 100,226,890 | 88,674,952 | 57,567,397 | 44,670,525 |
Capital surplus may be used under conditions and for the purposes stipulated by law. The Group's capital surplus stood at EUR 80,991,385 as at 31 December 2021 and consists of the general equity revaluation adjustment of EUR 80,080,610, which was transferred to capital surplus on the transition to the IFRS, and the capital surplus of EUR 910,775 representing the excess of the disposal value over the carrying amount of own shares paid to the Company's Supervisory Board members as a bonus. The Company's capital surplus as at 31 December 2021 was the same as the Group's capital surplus. In 2021, there were no changes in capital surplus.
− Legal reserves and other revenue reserves
Legal and other revenue reserves comprise shares of profit from previous years that have been retained for a dedicated purpose, mainly for offsetting eventual future losses. Acting on the proposal from the Company's Management Board made upon the approval of the 2021 annual report, the Company's Supervisory Board used the net profit to create other revenue reserves of EUR 33,241,471, in accordance with Article 230 of the Companies Act.
− Own shares and reserves for own shares
If the parent company or its subsidiaries acquire an ownership interest in the parent company, the amount paid, including transaction costs less tax, is deducted from total equity in the form of own shares until such shares are cancelled, reissued or sold. If own shares are later sold or reissued, the consideration received is included in the equity net of transaction costs and related tax effects.
| Cost (in EUR)* | Total purchases 1997 − 1999 |
|---|---|
| 36,142 | 3,640,782 |
| Payment of bonuses in 1997 | (1,144) | (104,848) |
|---|---|---|
| Payment of bonuses in 1998 | (1,092) | (98,136) |
| Payment of bonuses in 1999 | (715) | (62,189) |
| Payment of bonuses in 2000 | (1,287) | (119,609) |
| Payment of bonuses in 2001 | (1,122) | (95,252) |
| Payment of bonuses in 2002 | (1,830) | (158,256) |
| Payment of bonuses in 2003 | (1,603) | (138,625) |
| Payment of bonuses in 2004 | (1,044) | (90,284) |
| Payment of bonuses in 2005 | (144) | (15,183) |
| Payment of bonuses in 2006 | (403) | (42,492) |
| Payment of bonuses in 2007 | (731) | (77,077) |
| Payment of bonuses in 2008 | (324) | (34,162) |
| Total disposals 1997 − 2008 | (11,439) | (1,036,113) |
| 24,703 | 2,604,669 |
|---|---|
The company Geoplin d.o.o. Ljubljana owned 6,020 shares of Petrol d.d., Ljubljana as at 31 December 2021, the market value of which on that date was EUR 3,058,160 (EUR 1,956,500 as at 31 December 2020). The Group held 30,723 own shares as at 31 December 2021. The market value of own shares was EUR 15,607,284 on the above date (EUR 9,984,975 31 December 2020).
Other reserves of the Group/Company consist of revaluation reserves, the fair value reserve and the hedging reserve. Changes in these reserves that took place in 2021 are explained in more detail in Note 6.14.
The Company's fair value reserve totalled EUR 39,809,449 as at 31 December 2021. The fair value reserve consists of the reserves of EUR 40,513,851 resulting from the absorption of Instalacija d.o.o. (see Note 6.15 for explanation) and the reserves of EUR 742,921 resulting from carrying financial assets at fair value through other comprehensive income. Its value was decreased by actuarial losses resulting from the actuarial calculation of post-employment benefits on retirement totalling EUR 1,306,168 and deferred taxes of EUR 141,155.
At the 33rd General Meeting of the joint-stock company Petrol d.d., Ljubljana held on 22 April 2021, the shareholders adopted the following resolution on the allocation of accumulated profit: As proposed by the Management Board and the Supervisory Board, the accumulated profit for the financial year 2020 of EUR 45,355,156 was to be allocated in accordance with the provisions of Articles 230, 282 and 293 of the Companies Act (ZGD-1) as the payment of gross dividends of EUR 22.00 per share or the total of EUR 45,222,716 (own shares excluded). The remaining accumulated profit of EUR 132,440 and any amounts linked to own shares arising on the date the dividends are paid and amounts resulting from rounding off dividend payments were to be transferred to other revenue reserves.
The dividends were paid out of the net profit for 2020. In 2021, the Company paid out dividends for the year 2020 of EUR 45,222,716 and dividends from the previous years of EUR 185.
| 31 December 2021 | 31 December 2020 | ||
|---|---|---|---|
| Compulsory allocation of net profit | Net profit | 66,482,942 | 28,893,516 |
| Net profit after compulsory allocation | 66,482,942 | 28,893,516 | |
| Creation of other revenue reserves | 33,241,471 | 14,446,758 | |
| Determination of accumulated profit | Net profit | 33,241,471 | 14,446,758 |
| Decrease by the amount of long-term deferred development costs on the balance sheet date | (96,363) | (267,376) | |
| Other revenue reserves | 28,702,832 | 31,175,774 | |
| Accumulated profit | 61,847,940 | 45,355,156 |
Provisions for employee post-employment and other long-term benefits comprise provisions for post-employment benefits on retirement and jubilee benefits. The provisions amount to estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is made separately for each employee by taking into account the costs of post-employment benefits on retirement and the costs of all expected jubilee benefits until retirement.
December 2020, is an appropriate basis for recognising provisions as at 31 December 2021. The calculation as at 31 December 2020 was adjusted only for the number of employees.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Post-employment benefits on retirement | 6,190,099 | 6,096,788 | 5,244,108 | 5,457,241 |
| Jubilee benefits | 3,325,992 | 3,342,189 | 2,725,701 | 2,836,480 |
| Total provisions | 9,516,091 | 9,438,977 | 7,969,809 | 8,293,721 |
The calculation of the provisions for employee post-employment and other long-term benefits is based on the actuarial calculation, which relied on the following assumptions:
For companies in Slovenia it is assumed that average salaries in the Republic of Slovenia will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage points. For companies abroad it is assumed that average salaries will increase at the following rates: Croatia 1 percentage point, Serbia 1 percentage point, the Federation of Bosnia and Herzegovina 1 percentage point, accompanied by a growth in individual salaries of 0.5 percentage point.
| (in EUR) | Post-employment benefits | Jubilee benefits | Total |
|---|---|---|---|
| As at 1 January 2020 | 5,853,143 | 3,036,568 | 8,889,711 |
| Current service cost | 657,457 | 488,601 | 1,146,058 |
| Costs of interest | 63,170 | 37,071 | 100,241 |
| Post-employment benefits paid | (140,129) | (282,301) | (422,430) |
| Actuarial surplus/deficit | (335,716) | 65,117 | (270,599) |
| Foreign exchange differences | (1,137) | (2,867) | (4,004) |
| As at 31 December 2020 | 6,096,788 | 3,342,189 | 9,438,977 |
| New acquisitions as a result of control obtained | 290,165 | 82,241 | 372,406 |
| Current service cost | 120,998 | 129,096 | 250,094 |
| Costs of interest | 2,259 | 935 | 3,194 |
| Post-employment benefits paid | (316,060) | (227,563) | (543,623) |
| Actuarial surplus/deficit | 9,323 | 4,263 | 13,586 |
| Reversal | (13,836) | (6,241) | (20,077) |
| Foreign exchange differences | 462 | 1,072 | 1,534 |
| As at 31 December 2021 | 6,190,099 | 3,325,992 | 9,516,091 |
| Change | 0.5 | -0.5 | 0.5 | -0.5 | 0.5 | -0.5 |
|---|---|---|---|---|---|---|
| Effect on the balance of provisions for employee post-employment and other long-term benefits (in EUR) | (561,306) | 621,070 | 608,543 | (556,225) | (514,926) | 571,335 |
The calculation of the provisions for employee post-employment and other long-term benefits is based on the actuarial calculation, which relied on the following assumptions:
| (in EUR) | Post-employment benefits | Jubilee benefits | Total |
|---|---|---|---|
| As at 1 January 2020 | 5,402,925 | 2,622,136 | 8,025,061 |
| Current service cost | 622,378 | 448,949 | 1,071,327 |
| Post-employment benefits paid | (132,033) | (234,605) | (366,638) |
| Actuarial surplus/deficit | (436,029) | - | (436,029) |
| As at 31 December 2020 | 5,457,241 | 2,836,480 | 8,293,721 |
| Current service cost | 47,021 | 89,669 | 136,690 |
| Post-employment benefits paid | (251,076) | (200,448) | (451,524) |
| Actuarial surplus/deficit | (9,078) | - | (9,078) |
| As at 31 December 2021 | 5,244,108 | 2,725,701 | 7,969,809 |
| Change in | Change by | 0.5 | -0.5 | 0.5 | -0.5 | 0.5 | -0.5 |
|---|---|---|---|---|---|---|---|
| Effect on the balance of provisions for employee post-employment and other long-term benefits (in EUR) | (495,018) | 547,804 | 535,713 | (489,673) | (507,490) | 557,168 |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Provisions for lawsuits | 956,347 | 600,602 | 493,383 | 420,849 |
| Provisions for employee post-employment and other long-term benefits at third-party managed service stations | 4,040,854 | 4,160,465 | 4,040,854 | 4,160,465 |
| Other provisions | 29,326,278 | 26,586,354 | 13,072,253 | 10,182,523 |
| Total provisions | 34,323,479 | 31,347,421 | 17,606,490 | 14,763,837 |
As at 31 December 2021, the Group had in place long-term contracts with suppliers to purchase natural gas and long-term contracts for the leasing of transmission and storage capacities. New EU rules governing the single European natural gas market have led to an expansion of short-term trading at gas hubs and make it possible to contract transport capacities on a per month and per day basis. As a result, a different kind of sales products appeared in the market, both as far as natural gas sales and the leasing of transmission and storage capacities are concerned. The Group was also compelled to provide similar products to local customers. Because the costs of meeting contractual obligations will exceed the expected economic benefits of the contracts, negative differences will arise.
As a result, the Group has created provisions for onerous contracts relating to the leasing of natural gas transmission and storage capacities totaling EUR 10,832,781 (2020: EUR 12,348,348). The amount was determined based on estimated economic benefits and the costs of services under long-term contracts for the leasing of capacities and by taking into account the utilisation of transmission capacities. The calculations were based on 8-year projections and a discount rate of 0.0 percent (2020: 0.0 percent), which reflects the yield on Republic of Slovenia bonds maturing in 2029.
The Group's/Company's other provisions include provisions for partial non-compliance in the area of renewables in transport (Decree on renewable energy sources in transport) amounting to EUR 12,953,253 as at 31 December 2021 (2020: EUR: 10,080,523). Considering its position, technical limitations and the legislative framework, the Company took a number of measures to step up compliance and will continue to strive for the best possible solutions for the environment, customers and its owners.
| As at 1 January 2020 | As at 31 December 2020 | As at 31 December 2021 | |
|---|---|---|---|
| Provisions for lawsuits | 979,447 | 600,602 | 956,347 |
| Other provisions | 20,923,226 | 26,586,354 | 29,326,278 |
| Creation of provisions | 196,318 | 666,566 | |
| Reversal | (572,423) | (289,082) | |
| Foreign exchange differences | (2,740) | 518 | |
| Utilisation | (55,306) | ||
| New acquisitions as a result of control obtained | 33,049 | ||
| Creation of provisions | 666,566 | ||
| Reversal | (289,082) |
The amount of the provisions for lawsuits is determined based on the amount of a claim or estimated based on the expected possible amount if the actual amount is not yet known. The Management Board determines the expected possible amount in consultation with external law firms and checks the amount of provisions for each ongoing lawsuit on an annual basis.
The Group’s management estimates that there is a possibility that some of these lawsuits will be lost. That is why the Group set aside long-term provisions for lawsuits and interest on overdue amounts arising from the claims. The provisions for lawsuits totalled EUR 867,712 as at 31 December 2021 (EUR 528,780 as at 31 December 2020) while the provisions for interest on overdue amounts arising from the claims stood at EUR 88,635 (EUR 17,822 as at 31 December 2020).
The Company's long-term provisions for lawsuits totalled EUR 404,748 as at 31 December 2021 (EUR 403,027 as at 31 December 2020), with the provisions for interest on overdue amounts arising from the claims amounting to EUR 88,635 (EUR 17,822 as at 31 December 2020). The provisions were created based on the lawyers' assessment of the matter.
Other provisions also include provisions for employee post-employment and other long-term benefits relating to employees at third-party-managed service stations of the Petrol Group. The provisions amount to estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is made separately for each employee by taking into account the costs of post-employment benefits on retirement and the costs of all expected jubilee benefits until retirement.
| Post-employment benefits | Jubilee benefits | Total | |
|---|---|---|---|
| As at 1 January 2020 | 2,031,713 | 1,774,582 | 3,806,295 |
| Current service cost | 205,837 | 252,809 | 458,646 |
| Post-employment benefits paid | (58,998) | (174,975) |
| As at 31 December 2020 | 2,308,050 | 1,852,416 | 4,160,466 | |
|---|---|---|---|---|
| New acquisitions as a result of merger by absorption | Current service cost | 18,560 | 61,104 | 79,664 |
| Post-employment benefits paid | (80,999) | (114,360) | (195,359) | |
| Actuarial surplus/deficit | (3,917) | - | (3,917) | |
| As at 31 December 2021 | 2,241,694 | 1,799,160 | 4,040,854 |
Petrol d.d.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 287
The calculation of the provisions for employee post-employment and other long-term benefits is based on the actuarial calculation, which relied on the following assumptions:
It is assumed that average salaries in the Republic of Slovenia will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage point.
The Petrol Group
Changes in deferred revenue
Long-term deferred revenue refers to funds received based on European projects and cohesion funding in the area of energy solutions.
| Change in | Change by | 0.5 | -0.5 | 0.5 | -0.5 | 0.5 | -0.5 |
|---|---|---|---|---|---|---|---|
| Effect on the balance of provisions for employee post-employment and other long-term benefits (in EUR) | (256,357) | 283,403 | 277,150 | (253,587) | 262,799 | 288,220 | |
| Percentage point | Percentage point | Percentage point |
| 31 December 2021 | 31 December 2020 | |||
|---|---|---|---|---|
| Long-term deferred revenue from grants | 985,177 | 1,051,894 | 14,408 | 22,100 |
| Other long-term deferred revenue | 33,462,267 | 32,360,582 | 29,444,663 | 28,397,673 |
| Total | 34,447,444 | 33,412,476 | 29,459,071 | 28,419,773 |
The Petrol Group
Petrol d.d. (in EUR)
| Long-term deferred revenue from environmental assets | Long-term deferred revenue from grants | Other long-term deferred revenue | Total | |
|---|---|---|---|---|
| As at 1 January 2020 | 10,771 | 1,011,997 | 24,004,477 | 25,027,245 |
| Increase | - | 102,839 | 14,291,448 | 14,394,287 |
| Decrease | (10,771) | (62,942) | (5,894,207) | (5,967,920) |
The Petrol Group
In 2021, the average interest rate on short-term and long-term sources of finance (including interest rate hedging) stood at 1.92 percent p. a. (2020: 1.68 percent p. a.).
Derivative financial instruments
Liabilities arising from forward contracts for the purchase of US dollars, which stood at EUR 287,484 represent the fair values of outstanding forward contracts as at 31 December 2021. The above financial liabilities arising from derivative financial instruments should be considered in conjunction with outstanding contracts disclosed under financial receivables in Note 6.29.
| (in EUR) | Long-term deferred revenue from environmental assets | Long-term deferred revenue from grants | Other long-term deferred revenue | Total |
|---|---|---|---|---|
| As at 1 January 2020 | 10,771 | 28,600 | 20,424,483 | 20,463,854 |
| Increase | - | - | 13,274,077 | 13,274,077 |
| Decrease | (10,771) | (6,500) | (5,300,887) | (5,318,158) |
| As at 31 December 2020 | - | 22,100 | 28,397,673 | 28,419,773 |
| Increase | - | - | 6,648,148 | 6,648,148 |
| Decrease | - | (7,692) | (5,601,158) | (5,608,850) |
| As at 31 December 2021 | - | 14,408 | 29,444,663 | 29,459,071 |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|---|
| Current financial liabilities | Bank loans | 61,575,727 | 36,621,251 | 61,575,727 | 36,620,014 |
| Liabilities to banks arising from interest rate swaps | 2,503,965 | 5,379,273 | 2,503,965 | 4,896,601 | |
| Liabilities to banks arising from forward contracts | 287,484 | 786,222 | 287,484 | 786,222 | |
| Bonds issued | 246,928 | 250,309 | 246,928 | 250,309 | |
| Liabilities arising from commodity swaps | 116,341 | 5,029,689 | 116,341 | 5,145,357 | |
| Other liabilities arising from financial instruments | - | - | - | - |
Foreign exchange differences - - (41,136) (41,136)
As at 31 December 2020 - 1,051,894 32,360,582 33,412,476
Increase - - 6,737,636 6,737,636
Decrease - (66,717) (5,647,671) (5,714,388)
Foreign exchange differences - - 11,720 11,720
As at 31 December 2021 - 985,177 33,462,267 34,447,444
| Other loans and financial liabilities | 1,228,002 | 699,811 | 207,755,317 | 110,421,383 | 65,958,447 | 48,766,555 | 272,485,762 | 160,688,732 | |
|---|---|---|---|---|---|---|---|---|---|
| Non-current financial liabilities | Bank loans | 389,623,422 | 259,249,424 | 339,746,359 | 209,427,879 | ||||
| Bonds issued | 43,809,402 | 43,801,874 | 43,809,402 | 43,801,874 | |||||
| Loans obtained from other companies | 380,171 | 379,762 | 21,000,000 | 29,636,850 | |||||
| Total financial liabilities | 499,771,442 | 352,197,615 | 677,041,523 | 443,555,335 |
Bond liabilities refer to the bonds issued by Petrol d.d., Ljubljana and listed on the Ljubljana Stock Exchange as PET4 and PET5 bonds.
On 22 February 2017, Petrol d.d., Ljubljana issued PET4 bonds at the total nominal amount of EUR 11,000,000. The bond maturity date is 22 February 2027 and the interest rate is 1.5 percent.
On 21 June 2017, Petrol d.d., Ljubljana issued PET5 bonds at the total nominal amount of EUR 32,828,000. The interest rate is 1.2 percent p.a. The bond maturity date is 21 June 2024.
In 2021, the average interest rate on short-term and long-term sources of finance (including interest rate hedging) stood at 1.89 percent p.a. (2020: 1.56 percent p.a.). The calculation of the average interest rate does not include interest rates on loans received by group companies.
The Company's liabilities arising from derivative financial instruments and bonds are explained in more detail in the note pertaining to the Group.
Other financial liabilities arising from financial instruments relate entirely to the put option granted to a subsidiary and were measured at fair value as at 31 December 2021.
Other loans obtained by the Company relate mainly to loans from Group companies amounting to EUR 221,277,769, as shown in the table below.
| 31 December 2021 | 31 December 2020 | |
|---|---|---|
| Geoplin d.o.o. Ljubljana | 86,950,000 | 29,636,849 |
| Petrol d.o.o. | 85,842,742 | 62,201,715 |
| Petrol BH Oil Company d.o.o. Sarajevo | 20,000,000 | 17,500,000 |
| IGES d.o.o. | 15,786,457 | 15,767,666 |
| Petrol Trade Handelsgesellschaft m.b.H. | 6,779,404 | 4,469,422 |
| MBills d.o.o. | 3,850,000 | 4,650,000 |
| Petrol Geo d.o.o. | 1,679,516 | - |
| Geoenergo d.o.o. | 300,000 | 300,000 |
| Petrol Skladiščenje d.o.o. | 89,650 | 89,616 |
| Petrol d.o.o. Beograd | - | 2,568,846 |
| Total | 221,277,769 | 137,184,114 |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| As at 1 January | 352,197,615 | 326,741,584 | 443,555,335 | 386,348,458 |
| New acquisitions as a result of control obtained | 109,787,346 | 54,000 | - | - |
| Proceeds from borrowings | 926,931,269 | 835,261,103 | 1,327,414,213 | 1,090,169,633 |
| Repayment of borrowings | (880,837,557) | (808,314,348) | (1,085,490,136) | (1,032,414,899) |
| Change in fair value of financial instruments | (8,287,394) | (845,045) | (10,489,236) | (899,899) |
| Changes in interest liabilities | (26,583) | 25,088 | 2,051,347 | 352,042 |
| Foreign exchange differences | 6,746 | (724,767) | - | - |
| As at 31 December | 499,771,442 | 352,197,615 | 677,041,523 | 443,555,335 |
The Group's lease liabilities include liabilities arising from contracts for the leased assets, the value of which was determined in accordance with IFRS 16.
All non-current operating liabilities include the liabilities of Petrol d.d., Ljubljana. The Petrol Group and Petrol d.d., Ljubljana's liabilities arising from assets received for administration relate largely to property, plant and equipment received for administration from municipalities under concession agreements. Liabilities are reduced in line with the depreciation of the assets received for administration.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Non-current lease liabilities | 92,991,633 | 54,397,111 | 26,735,533 | 27,608,922 |
| Current lease liabilities | 13,768,130 | 10,069,352 | 2,717,596 | 4,259,323 |
| Total lease liabilities | 106,759,763 | 64,466,463 | 29,453,129 | 31,868,245 |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| As at 1 January | 64,466,463 | 72,612,542 | 31,868,245 |
In 2021, the liabilities associated with the allocation of profit or loss increased based on the General Meeting resolution on the payment of dividends of EUR 45,222,716 (2020: EUR 45,222,716) and decreased based on the payment of the 2020 dividends of EUR 45,222,716 (2020: EUR 45,222,706) to shareholders and the payment of dividends from previous years totalling EUR 185 (2020: EUR 897).
Other accrued costs refer to short-term provisions for onerous contracts, accrued employee bonuses, accrued licence renewal costs, logistics costs, costs of services in connection with energy solutions, liabilities arising from commissions and other accrued costs.
As at 31 December 2021, the Group/Company has concluded contracts with customers for the supply of electricity for 2022. As part of the sold quantities of the Group/Company for 2022 is not purchased at relevant prices, compared to the contract prices in sales contracts, the costs.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Trade liabilities | 549,530,229 | 287,742,078 | 349,637,848 | 225,732,060 |
| Excise duty liabilities | 61,892,936 | 89,051,979 | 44,570,278 | 81,941,940 |
| Value added tax liabilities | 44,535,860 | 28,464,911 | 22,003,518 | 18,681,572 |
| Liabilities to employees | 9,130,848 | 12,264,510 | 5,709,649 | 9,700,069 |
| Liabilities for environmental charges and contributions | 8,503,921 | 7,074,616 | 8,476,548 | 6,574,164 |
| Liabilities arising from interests acquired | 6,597,693 | 1,423,471 | 6,100,000 | 1,199,650 |
| Other liabilities to the state and other state institutions | 3,758,297 | 3,898,273 | 1,181,150 | 1,986,390 |
| Social security contribution liabilities | 1,742,750 | 1,443,461 | 815,529 | 809,456 |
| Liabilities associated with the allocation of profit or loss | 775,812 | 775,997 | 775,812 | 775,997 |
| Import duty liabilities | 596,054 | 1,068,381 | ||
| Other liabilities | 3,392,213 | 4,008,471 | 3,237,600 | 1,431,534 |
| Total current operating and other liabilities | 690,456,613 | 437,216,148 | 442,507,932 | 348,832,832 |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Short-term prepayments and collaterals given | 12,053,171 | 13,019,932 | 5,973,801 | 7,351,829 |
| Deferred prepaid card revenue | 2,611,155 | 1,665,807 | 1,932,037 | 1,478,932 |
| Deferred revenue from rebates and discounts granted | 164,018 | 242,107 | - | - |
| Total contract liabilities | 14,828,344 | 14,927,846 | 7,905,838 | 8,830,761 |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Accrued annual leave expenses | 3,229,710 | 2,613,290 | 1,755,565 | 1,784,815 |
| Accrued motorway site lease payments | 592,868 | 73,747 | 592,868 | 73,747 |
| Accrued expenses for tanker demurrage | 502,794 | 387,983 | 502,794 | 387,983 |
| Accrued concession fee costs | 433,122 | 366,833 | 316,567 | 366,833 |
| Other accrued costs | 50,674,221 | 9,804,015 | 44,592,856 | 7,555,385 |
| Other deferred revenue | 3,185,584 | 2,476,402 | 3,093,276 | 2,310,692 |
| Total other liabilities | 58,618,299 | 15,722,270 | 50,853,926 | 12,479,455 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report
of fulfilling contractual commitments will exceed the expected economic benefits from the contracts. The Group/Company hedges this part of the onerous sales contracts for the supply of electricity with commodity financial instruments, valued at EUR 24,317,853 as at 31 December 2021. This means that in 2021, the Group/Company recorded other revenue from the valuation of commodity financial instruments in the amount of EUR 24,317,853 and other expenses from provisions for onerous contracts in the amount of EUR 20,924,453, which means a net positive effect on the income statement in the amount of EUR 3,393,400. Accordingly, the Group/Company has, among other accrued costs, formed provisions from onerous contracts for the supply of electricity in the amount of EUR 20,924,453 (2020: EUR 0). The amount was determined based on estimated economic benefits and the costs of services under contracts for the supply of electricity. The projected market prices of electricity for 2022 were used in the calculations.
This chapter presents disclosures about financial instruments and risks. Risk management is explained in the risk management section of the business report. A report on the impact of the COVID-19 pandemic on the Petrol Group's operations and risk management is also available in the chapter Analysis of the business performance of the Petrol Group's operations in 2021.
and to apply strict terms on which open account sales are approved, requiring an adequate range of high-quality collaterals and pursuing the active collection of receivables. The carrying amount of financial assets has maximum exposure to credit risks and was the following as at 31 December 2021:
The item that was most exposed to credit risk on the reporting date was the current operating receivables. Compared to the end of 2021, they decreased, in nominal terms, by 77 percent in the case of the Group and 62 percent in the case of the Company. Financial assets at fair value through profit or loss consist mainly of derivative financial instruments.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Financial assets at fair value through other comprehensive income | 5,909,845 | 4,738,081 | 3,218,360 | 2,327,008 |
| Non-current financial receivables | 991,831 | 2,680,471 | 83,299,185 | 58,124,422 |
| Non-current operating receivables | 8,228,771 | 10,565,315 | 8,219,107 | 10,542,414 |
| Contract assets | 3,338,893 | 1,949,652 | 7,604,649 | 3,276,761 |
| Current financial receivables | 16,168,692 | 32,634,090 | 16,181,049 | 22,247,726 |
| Current operating receivables (excluding rec. from the state) | 644,893,154 | 363,929,972 | 385,584,957 | 237,501,730 |
| Financial assets at fair value through profit or loss | 34,666,891 | 11,107,888 | 34,561,544 | 11,053,141 |
| Cash and cash equivalents | 100,226,890 | 88,674,952 | 57,567,397 | 44,670,525 |
| Total assets | 814,424,967 | 516,280,421 | 596,236,248 | 389,743,727 |
| (in EUR) | Not yet due | Up to 30 days overdue | Including 30 to 60 days overdue | Including 60 to 90 days overdue | More than 90 days overdue | Total |
|---|---|---|---|---|---|---|
| Trade receivables | 314,932,992 | 31,695,839 | 5,075,314 | 611,619 | 4,052,101 | 356,367,865 |
| Interest receivables | 37,856 | 16,889 | 8,111 | 1,968 | 59,919 | 124,743 |
| Other receivables (excluding receivables from the state) | 7,374,118 | 55,134 | 3,462 | 4,650 | - | 7,437,364 |
| Total as at 31 December 2020 | 322,344,966 | 31,767,862 | 5,086,887 | 618,237 | 4,112,020 | 363,929,972 |
| (in EUR) | Not yet due | Up to 30 days overdue | Including 30 to 60 days overdue | Including 60 to 90 days overdue | More than 90 days overdue | Total |
|---|---|---|---|---|---|---|
| Trade receivables | 572,251,531 | 51,421,340 | 7,287,064 | 1,296,628 | 2,727,703 | 634,984,266 |
| Interest receivables | 72,904 | 16,001 | 12,008 | 18,108 | 52,505 | 171,526 |
| Other receivables (excluding receivables from the state) | 9,234,027 | 371,413 | - | 131,922 | - | 9,737,362 |
| Total as at 31 December 2021 | 581,558,462 | 51,808,754 | 7,299,072 | 1,314,736 | 2,912,130 | 644,893,154 |
| Trade receivables | 201,953,228 | 9,636,626 | 9,019,494 | 961,715 | 10,009,841 | 231,580,904 |
|---|---|---|---|---|---|---|
| Interest receivables | 1,425,349 | |||||
| Other receivables (excluding receivables from the state) | 4,461,687 | 32,808,708 | - | 4,495,477 | ||
| Total as at 31 December 2020 | 206,414,915 | 9,669,434 | 9,020,202 | 961,989 | 11,435,190 | 237,501,730 |
| Not yet due | Up to 30 days overdue | Including 30 to 60 days overdue | Including 60 to 90 days overdue | More than 90 days overdue | Total | |
|---|---|---|---|---|---|---|
| Trade receivables | 342,546,756 | 20,534,767 | 3,623,504 | 814,462 | 10,717,483 | 378,236,972 |
| Interest receivables | 1,392,592 | |||||
| Other receivables (excluding receivables from the state) | 5,818,887 | 136,506 | - | - | - | 5,955,393 |
| Total as at 31 December 2021 | 348,365,643 | 20,671,273 | 3,623,504 | 814,462 | 12,110,075 | 385,584,957 |
| Allowance for current operating receivables | Allowance for current interest receivables | Total | |
|---|---|---|---|
| As at 1 January 2020 | (50,705,579) | (1,669,414) | (52,374,993) |
| Creation/reversal of allowances affecting profit or loss | (2,109,637) | (115,961) | (2,225,598) |
| Write-downs | 1,853,170 | 571,043 | 2,424,213 |
| Foreign exchange differences | 107,079 | 226 | 107,305 |
| As at 31 December 2020 | (50,854,967) | (1,214,106) | (52,069,073) |
Collateralisation of receivables: Only high-quality collaterals, such as bank or corporate guarantees, offsetting transactions (suppliers), credit insurance with insurance companies and mortgages, are included in the overview of collaterals. Bills of exchange, enforcement drafts and promissory notes are excluded because they have a lower level of collectability.
The receivable from the Group’s largest single customer stood at EUR 16,479,600 as at 31 December 2021 (the customer is a company), accounting for 2.4 percent of the Group's trade receivables. The receivable from the Company’s largest single customer stood at EUR.
| Allowance for current operating receivables | Allowance for current interest receivables | Total | |
|---|---|---|---|
| As at 1 January 2021 | (50,854,967) | (1,214,106) | (52,069,073) |
| New acquisitions as a result of control obtained | (3,498,022) | (150,989) | (3,649,011) |
| Creation/reversal of allowances affecting profit or loss | (7,966,732) | (65,643) | (8,032,375) |
| Changes in allowances not affecting profit or loss | 531,773 | 115,229 | 647,002 |
| Write-downs | 2,919,772 | 126,043 | 3,045,815 |
| Foreign exchange differences | (12,377) | (3,475) | (15,852) |
| As at 31 December 2021 | (58,880,553) | (1,192,941) |
| (in EUR) | Allowance for current operating receivables | Allowance for current interest receivables | Total |
|---|---|---|---|
| As at 1 January 2020 | (33,213,942) | (1,630,227) | (34,844,169) |
| Creation/reversal of allowances affecting profit or loss | 576,792 | - | 576,792 |
| Write-downs | 1,427,298 | 571,043 | 1,998,341 |
| As at 31 December 2020 | (31,209,852) | (1,059,184) | (32,269,036) |
| (in EUR) | Allowance for current operating receivables | Allowance for current interest receivables | Total |
|---|---|---|---|
| As at 1 January 2021 | (31,209,852) | (1,059,184) | (32,269,036) |
| Creation/reversal of allowances affecting profit or loss | (2,942,872) | - | (2,942,872) |
| Write-downs | 2,229,522 | 115,980 | 2,345,502 |
| As at 31 December 2021 | (31,923,202) | (943,204) | (32,866,406) |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Current trade receivables | 692,538,011 | 406,289,815 | 409,335,386 | 262,238,768 |
| Allowances | (57,553,745) | (49,921,950) | (31,098,414) | (30,657,864) |
| Current trade receivables including allowances | 634,984,266 | 356,367,865 | 378,236,972 | 231,580,904 |
| Overdue current trade receivables (gross amount) | 107,423,690 | 83,282,995 | 58,813,962 | 54,040,260 |
| Share of overdue receivables in outstanding receivables | 16 % | 20% | 14 % | 21 % |
| Current operating receivables over EUR 100,000 secured with high-quality collaterals | 379,692,734 | 196,754,738 | 189,939,857 | 116,887,621 |
The Petrol Group had 16,479,600 as at 31 December 2021 (the customer is a company), accounting for 4.0 percent of the Company's trade receivables. The receivables mainly relate to receivables from domestic and foreign customers arising from the wholesale of goods and services and the sale of goods to the holders (natural persons) of the Petrol Club card. The structure of wholesale and retail customers is diversified, meaning there is no significant exposure to a single customer. The Group had 40,919 active customers (legal persons) as at 31 December 2021. The Group/Company has in place an IT-based system of grades, ratings and blocks, enabling it to constantly monitor its customers. The Group/Company improves the system for the monitoring of credit risks on a steady basis. In 2021, the system of limits adopted at the Petrol Group level was applied consistently. The Group/Company measures the degree of receivables management in days’ sales outstanding. Commodity loans granted to buyers in order to reschedule the settlement of receivables are largely secured (usually through mortgages, but also through bank guarantees). The loans granted by the Company refer mainly to the loans to subsidiaries. The Company regularly assesses the possibility of the loans' repayment, the possibility of realizing the collateral or whether the value of the collateral is still adequate compared to the value of the investment. If the Company considers that a loan is not fully collectable, an allowance is made for the uncollectable amount. The Company systematically monitors the operations of Group companies, thus adequately limiting credit risk.
Due to uncertainty, we faced during the epidemic, the Petrol Group has put great emphasis on liquidity risk management. Our key goal remains, however, that the Group/Company can successfully manage liquidity risks according to Standard & Poor's guidelines. The Group/Company manages liquidity risks through:
Currently an extremely important tool:
| 2021 | 2020 | |
|---|---|---|
| Contract days | 36 | 49 |
| Overdue receivables in days | 4 | 5 |
| Total days sales outstanding | 40 | 54 |
Nearly half of the Group’s/Company’s total cash inflow is generated through its retail network in which cash and payment cards are used as the means of payment. This ensures regular daily inflows and mitigates liquidity risks.
In addition, the Group/Company has credit lines at its disposal both in Slovenia and abroad, the size of which enables the Group to meet all its due liabilities at any given moment.
Successful planning of cash flows or estimating how inflows could decrease as a result of the decline in sales, enabled us to forecast liquidity needs in a timely and effective manner and to ensure optimal cash flow management at the Group level. Our strong liquidity position also allows for the settlement of all liabilities as they fall due.
The majority of financial liabilities arising from long-term and short-term loans are held by the parent company, which also generates the majority of revenue.
| 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years | |
|---|---|---|---|---|
| Non-current financial liabilities | 303,431,060 | 310,959,169 | - | - |
| Non-current lease liabilities | 54,397,111 | 70,609,544 | - | - |
| Non-current operating liabilities (excluding other liabilities) | 24,000 | 24,000 | - | - |
| Current financial liabilities | 48,766,555 | 51,021,405 | 25,928,595 | 25,092,810 |
| Current lease liabilities | 10,069,352 | 11,024,294 | 5,638,689 | 5,385,605 |
| Liabilities arising from commodity forward contracts* | - | 366,543,618 | 165,388,450 | 156,287,654 |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | 293,950,017 | 293,950,017 | 293,550,768 | 399,249 |
As at 31 December 2020
Contractual cash flows (in EUR)
| Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
|---|---|---|---|---|
| Non-current financial liabilities | 433,812,995 | 449,991,568 | - | - |
| 193,267,964 | 256,723,604 | - | - | |
| Non-current lease liabilities | 92,991,633 | 102,794,713 | - | - |
| 50,827,716 | 51,966,997 | - | - | |
| Non-current operating liabilities (excluding other liabilities) | 5,024,000 | 5,024,000 | - | - |
| Current financial liabilities | 65,958,447 | 71,080,903 | 51,230,909 | 19,849,994 |
| Current lease liabilities | 13,768,130 | 19,086,349 | 9,565,561 | 9,520,788 |
| Liabilities arising from commodity forward contracts* | - | 694,778,063 | 362,868,525 | 280,035,717 |
| 51,873,821 | - | - | - | |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | 560,295,947 | 560,295,947 | 554,989,616 | 5,306,331 |
As at 31 December 2021
1,171,851,152
1,903,051,543
978,654,611
314,712,830
300,993,501
308,690,601
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 297
The Company’s liabilities by maturity
Current financial liabilities include derivative financial instruments totalling EUR 13,397,026.
** A maximum amount of contingent liabilities is allocated to the period in which the Company can be requested to make a payment.
Current financial liabilities include derivative financial instruments totalling EUR 2,907,790.
| Carrying amount of liabilities | Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
|---|---|---|---|---|---|
| Non-current financial liabilities | 404,555,761 | 419,129,334 | - | - | |
| 141,756,803 | 277,372,531 | - | - | ||
| Non-current lease liabilities | 26,735,533 | 36,574,884 | - | - | |
| 12,633,019 | 23,941,865 | - | - | ||
| Non-current operating liabilities (excluding other liabilities) | 5,024,000 | 5,024,000 | - | - |
| Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
|---|---|---|---|---|
| Current financial liabilities | 272,485,762 | 279,304,500 | 106,105,302 | 173,199,198 |
| Current lease liabilities | 2,717,596 | 3,901,293 | 2,111,294 | 1,789,999 |
| Liabilities arising from commodity forward contracts* | 692,870,222 | 360,984,978 | 280,011,423 | |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | 359,751,260 | 359,751,260 | 354,459,153 | 5,292,107 |
| Contingent liabilities for guarantees issued** | 317,210,161 | 317,210,161 | ||
| As at 31 December 2021 | 1,071,269,912 | 2,113,765,654 | 1,140,870,888 | 460,292,727 |
| Liability | Carrying amount of liabilities | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
|---|---|---|---|---|---|
| Non-current financial liabilities | 282,866,603 | 287,498,462 | 276,250,284 | ||
| Non-current lease liabilities | 27,608,922 | 39,824,872 | 15,965,169 | ||
| Non-current operating liabilities (excluding other liabilities) | 24,000 | 24,000 | 24,000 | ||
| Current financial liabilities | 160,688,732 | 164,278,181 | 33,525,671 | 130,752,510 | |
| Current lease liabilities | 4,259,323 | 4,294,274 | 2,212,789 | 2,081,485 | |
| Liabilities arising from commodity forward contracts* | 368,883,699 | 166,749,812 | 157,266,373 | 44,867,514 | |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | 229,139,241 | 229,139,241 | 228,889,303 | 249,938 | |
| Contingent liabilities for guarantees issued** | 168,698,903 |
| EUR | USD | HRK | BAM | RSD | MKD | RON | CHF | HUF | CZK | BGN | GBP | RUB | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 41,589,098 | 2,647,365 | 25,007,622 | 4,793,284 | 11,422,061 | 1,826,793 | 1,149,872 | 109,704 | 26,426 | 64,291 | 36,843 | 1,489 | 104 | 88,674,952 | |
| Current operating receivables (excluding rec. from the state) | 278,973,802 | 279,258 | 48,439,561 | 17,645,002 | 17,922,324 | 47,930 | 613,350 | - | 8,745 | - | - | - | 363,929,972 | ||
| Non-current operating receivables | 10,544,965 | - | 10,887 | 7,454 | 2,009 | - | - | - | - | - | - | - | 10,565,315 | ||
| Current financial receivables | 31,780,927 | - | 263,205 | 72,603 | - | 517,355 | - | - | - | - | - | - | 32,634,090 | ||
| Non-current financial receivables | 2,680,471 | - | - | - | - | - | - | - | - | - | - | - | 2,680,471 | ||
| Non-current operating liabilities (excluding other liabilities) | (24,000) | - | - | - | - | - | - | - | - | - | - | - | (24,000) | ||
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | (211,838,704) | (50,401,302) | (25,122,761) | (3,880,964) | (1,926,354) | (49,004) | (60,933) | - | (615,339) | - | (52,685) | (1,971) | (293,950,017) | ||
| Non-current financial liabilities | (303,051,298) | - | (29,002) | - | (350,760) | - | - | - | - | - | - | - | (303,431,060) | ||
| Non-current lease liabilities | (28,343,302) | - | (21,095,447) | (3,316,441) | (1,641,921) | - | - | - | - | - | - | - | (54,397,111) | ||
| Current financial liabilities | (43,699,888) | (5,029,689) | (8,282) | - | (28,696) | - | - | - | - | - | - | - | (48,766,555) | ||
| Current lease liabilities | (4,542,967) | - | (4,867,773) | (323,307) | - | (335,305) | - | - | - | - | - | - | (10,069,352) | ||
| Exposure of the statement of financial position | (225,930,896) | (52,504,368) | 22,598,010 | 14,997,631 | 25,063,358 | 2,343,074 | 1,702,289 | 109,704 | (580,168) | 64,291 | (15,842) | (482) | (212,153,295) | ||
| Nominal value of forward contracts | (43,412,918) | 42,652,825 | - | - | - | 760,093 | - | - | - | - | - | - | - | ||
| Net exposure of the statement of financial position | (269,343,814) | (9,851,543) | 22,598,010 | 14,997,631 | 25,063,358 | 2,343,074 | 2,462,382 | 109,704 | (580,168) | 64,291 | (15,842) | (482) | (212,153,295) | ||
| EUR | USD | HRK | BAM | RSD | MKD | RON | CHF | HUF | CZK | BGN | GBP | RUB | Total | ||
| Cash and cash equivalents | 61,013,124 | 1,156,764 | 29,756,999 | 2,417,531 | - | - | 2,101,401 | 92,091 | 3,375,162 | 49,639 | 7,795 | 226,188 | 30,151 | 45 | 100,226,890 |
| Current operating receivables (excluding rec. from the state) | 481,505,521 | 847,677 | 107,085,021 | 27,387,657 | 27,616,081 | - | 442,479 | - | 8,718 | - | - | - | 644,893,154 | ||
| Non-current operating receivables | 8,223,281 | - | 3,479 | - | 2,011 | - | - | - | - | - | - | - | 8,228,771 | ||
| Current financial receivables | 15,336,028 | - | 313,552 | 1,566 | - | 517,546 | - | - | - | - | - | - | 16,168,692 | ||
| Non-current financial receivables | 191,092 | - | 798,821 | - | - | 1,918 | - | - | - | - | - | - | 991,831 | ||
| Non-current operating liabilities (excluding other liabilities) | (5,024,000) | - | - | - | - | - | - | - | - | - | - | - | (5,024,000) | ||
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | (419,139,745) | (64,856,729) | (67,497,119) | (6,317,304) | (1,851,569) | (710) | (1,050) | - | (583,483) | - | (77) | (48,161) | (560,295,947) | ||
| Non-current financial liabilities | (433,432,824) | - | (29,098) | - | (351,073) | - | - | - | - | - | - | - | (433,812,995) | ||
| Non-current lease liabilities | (27,145,512) | - | (59,134,959) | (3,279,377) | (3,431,785) | - | - | - | - | - | - | - | (92,991,633) | ||
| Current financial liabilities | (65,750,505) | (116,341) | (58,967) | - | (32,634) | - | - | - | - | - | - | - | (65,958,447) | ||
| Current lease liabilities | (2,941,874) | - | (9,844,609) | (419,962) | (561,685) | - | - | - | - | - | - | - | (13,768,130) | ||
| Exposure of the statement of financial position | (387,165,414) | (62,968,629) | 1,393,120 | 19,790,111 | 23,490,747 | 608,927 | 3,818,509 | 49,639 | (566,970) | 226,188 | 30,074 | (48,116) | - | (401,341,814) | |
| Nominal value of forward contracts | (95,305,770) | 85,448,575 | - | - | - | 9,857,195 | - | - | - | - | - | - | - | ||
| Net exposure of the statement of financial position | (482,471,184) | 22,479,946 | - | - | - | - | - | - | - | - | - | - | - |
| (in EUR) | EUR | USD | HRK | BAM | RON | CHF | HUF | RSD | GBP | MKD | BGN | CZK | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 33,323,786 | 2,394,754 | 7,567,158 | 5 | 1,136,359 | 109,580 | 26,426 | 29,338 | 1,416 | 498 | 36,843 | 44,362 | 44,670,525 |
| Current operating receivables (excluding rec. from the state) | 236,869,822 | - | 9,814 | - | 613,349 | - | 8,745 | - | - | - | - | - | 237,501,730 |
| Non-current operating receivables | 10,542,414 | - | - | - | - | - | - | - | - | - | - | - | 10,542,414 |
| Current financial receivables | 22,247,726 | - | - | - | - | - | - | - | - | - | - | - | 22,247,726 |
| Non-current financial receivables | 58,124,422 | - | - | - | - | - | - | - | - | - | - | - | 58,124,422 |
| Non-current operating liabilities (excluding other liabilities) | (24,000) | - | - | - | - | - | - | - | - | - | - | - | (24,000) |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | (178,030,111) | (50,308,066) | (17,581) | - | (106,130) | - | (582,213) | (1,971) | (40,484) | (52,685) | - | - | (229,139,241) |
| Non-current financial liabilities | (282,866,603) | - | - | - | - | - | - | - | - | - | - | - | (282,866,603) |
| Non-current lease liabilities | (27,608,922) | - | - | - | - | - | - | - | - | - | - | - | (27,608,922) |
| Current financial liabilities | (155,543,374) | (5,145,358) | - | - | - | - | - | - | - | - | - | - | (160,688,732) |
| Current lease liabilities | (4,259,323) | - | - | - | - | - | - | - | - | - | - | - | (4,259,323) |
| Exposure of the statement of financial position | (287,224,163) | (53,058,670) | 7,559,391 | 5 | 1,643,578 | 109,580 | (547,042) | 29,338 | (555) | (39,986) | (15,842) | 44,362 | (331,500,004) |
| Nominal value of forward contracts | (43,412,918) | 42,652,825 | - | 760,093 | - | - | - | - | - | - | - | - | - |
| Net exposure of the statement of financial position | (330,637,081) | (10,405,845) | 7,559,391 | 5 | 2,403,671 | 109,580 | (547,042) | 29,338 | (555) | (39,986) | (15,842) | 44,362 | (331,500,004) |
As far as foreign exchange risks are concerned, the Group/Company is most exposed to the risk of changes in the EUR/USD exchange rate arising from the procurement of petroleum products as these are primarily purchased in US dollars and sold in the domestic or foreign markets in local currencies.
The Group hedges against the exposure to changes in the EUR/USD exchange rate by fixing the exchange rate in order to secure the margin. The hedging instruments used in this case are forward contracts entered into with banks. During the epidemic and with the prices of petroleum products decreasing, no changes to the foreign exchange risk hedging system were needed.
The effect of forward contracts should be considered together with foreign exchange differences arising on the purchase of oil and petroleum products. The total effect of forward contracts and foreign exchange differences was as follows:
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Revenue | EUR 2,721,775 | Expenses EUR 62,817 | EUR 1,787,256 | Expenses EUR 179,422 |
Given that forward contracts for hedging against foreign exchange risks are entered into with first-class Slovenian banks, the Group/Company considers the counterparty default risk minimal. The Group is also exposed to foreign exchange risks in doing business with its subsidiaries in SE Europe. Considering the low volatility of the exchange rates of local currencies in SE Europe markets and the relatively low exposure, the Group/Company believes it is not exposed to significant risks in this area. To control these risks, we rely on natural hedging to the largest possible extent.
In 2021, the Group/Company was also exposed to certain other currencies (RON, HUF), which was hedged using derivative financial instruments. Exposure to currencies in other markets in which the Group/Company is present through its companies is either smaller or the currencies are considerably less volatile compared to the euro. We estimate that a change in the exchange rate would not have a material impact on profit or loss.
| Per 1 euro | 31 December 2021 | 31 December 2020 |
|---|---|---|
| USD | 1.1334 | 1.2281 |
| HRK | 7.5211 | 7.5460 |
| BAM | 1.9558 | 1.9558 |
| RSD | 117.4400 | 117.5300 |
| CZK | 24.9170 | 26.2520 |
| RON | 4.9494 | 4.8681 |
| MKD | 61.5350 | 61.5590 |
| HUF | 370.1500 | 364.8800 |
| CHF | 1.0363 | 1.0857 |
| BGN | 1.9558 | 1.9558 |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Unrealised loss | (287,484) | (786,222) | (287,484) | (786,222) |
| Unrealised gain | - | 2,636 | - | 2,636 |
| Realised loss | (1,728,783) | (3,887,227) | (1,728,783) | (3,887,227) |
| Realised gain | 4,195,325 | 2,099,191 | 4,195,325 | 2,099,191 |
| Total effect of forward contracts | 2,179,058 | (2,571,622) | 2,179,058 | (2,571,622) |
The Group/Company regularly monitors its open currency position and sensitivity based on the VaR method for all currencies to which it is exposed.
An unfavourable change in any currency pair by 10 percent would decrease net profit by a maximum of EUR 3,161,421 (2020: EUR 2,451,284), with the EUR/BAM currency pair being treated as fixed.
The Group/Company is exposed to interest rate risks because it takes out loans with a floating interest rate, which are mostly EURIBOR-based. In 2021, the Group/Company continued to monitor exposure to changes in net interest expense in the case of interest rate changes. The exposure to interest rate risks is hedged using the following instruments:
The Group/Company uses “hedge accounting” on interest rate swaps. Hedged items and hedging instruments represent an effective hedging relationship, which is why interest rate risk hedging outcomes are recognised directly in equity.
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Unrealised loss | (116,341) | (5,029,689) | (116,341) | (5,145,357) |
| Unrealised gain | 34,337,157 | 11,105,252 | 34,231,810 | 11,050,505 |
| Realised loss | (235,612,141) | (69,439,844) | (236,216,896) | (71,128,290) |
| Realised gain | 235,594,823 | 89,001,406 | 235,614,924 | 88,697,950 |
| Total effect of commodity swaps | 34,203,498 | 25,637,125 | 33,513,497 | 23,474,808 |
| Interest rate swaps by maturity | Financial instruments with a fixed interest rate | Financial instruments with a variable interest rate |
|---|---|---|
| 6-month Euribor | Value as at 31/12/2020 (in percent) | (0.523) |
| Value as at 31/12/2021 (in percent) | (0.544) | |
| Change in interest rate (in percentage points) | (0.021) | |
| The lowest value in 2021 (in percent) | (0.554) | |
| The lowest value in 2020 (in percent) | (0.505) | |
| Change between the lowest and the highest interest rate (in percentage points) | 0.049 | |
| Average value in 2020 (in percent) | (0.367) | |
| Average value in 2021 (in percent) | (0.523) | |
| Change in average interest rate (in percentage points) | (0.156) |
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| 6 to 12 months | 74,000,000 | 24,000,000 | 74,000,000 | 24,000,000 |
| 1 to 5 years | 307,000,000 | 231,000,000 | 257,000,000 | 181,000,000 |
| Total interest rate swaps | 381,000,000 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Unrealised loss on effective transactions | 4,109,730 | (128,073) | 3,283,988 | 124,723 |
| Realised loss | (2,156,222) | (1,787,481) | (1,968,491) | (1,632,798) |
| Total effect of interest rate swaps | 1,953,508 | (1,915,554) | 1,315,497 | (1,508,075) |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Financial receivables | 1,788,799 | 2,433,594 | 95,847,532 | 78,258,364 |
| Financial liabilities | (144,855,441) | (44,966,831) | (316,133,210) | (179,582,099) |
| Net financial instruments with a fixed interest rate | (143,066,642) | (42,533,237) | (220,285,678) | (101,323,735) |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Financial receivables | 15,371,724 | 32,880,967 | 3,632,702 | 2,113,784 |
| Financial liabilities | (354,916,001) | (307,230,784) | (360,908,313) | (263,973,236) |
| Net financial instruments with a variable interest rate | (339,544,277) | (274,349,817) | (357,275,611) | (261,859,452) |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report
A change in the interest rate by 100 or 200 basis points on the reporting date would have increased (decreased) the net profit or loss by the amounts indicated below. Cash flow sensitivity analysis in the case of instruments with a variable interest rate assumes that all variables, in particular foreign exchange rates, remain unchanged. When performing the calculation, the value of receivables (liabilities) with variable interest rates is further decreased by the total amount of interest rate swaps. The analysis was prepared in the same manner for both years.
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Interest rate swaps | 381,000,000 | 255,000,000 | 331,000,000 | 205,000,000 |
| Total interest rate swaps | 381,000,000 | 255,000,000 | 331,000,000 | 205,000,000 |
| 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|---|
| Cash flow variability (net) – 100 bp | 414,557 | (193,498) | (262,756) | (568,595) |
| Cash flow variability (net) – 200 bp | 829,114 | (386,996) | (525,512) | (1,137,189) |
The main purpose of capital adequacy management is to ensure the best possible financial stability, long-term solvency and maximum shareholder value. The Group/Company also achieves this through a stable dividend pay-out policy. Testifying to our financial stability are the “BBB-” credit rating received from S&P at the end of June 2014 and the successful international issuance of eurobonds worth a total of EUR 265 million, which were fully repaid in 2019. On 9 April 2021, Standard & Poor's Ratings Services reaffirmed the “BBB-” long-term credit rating and the “A-3” short-term credit rating of Petrol d.d., Ljubljana, also reaffirming the “stable” credit rating outlook.
In 2021, despite the impact of the epidemic, the Petrol Group maintained the net debt to equity ratio at appropriate levels through good operating performance.
| (in EUR) | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Non-current financial liabilities | 433,812,995 | 303,431,060 | 404,555,761 | 282,866,603 |
| Non-current lease liabilities | 92,991,633 | 54,397,111 | 26,735,533 | 27,608,922 |
| Current financial liabilities | 65,958,447 | 48,766,555 | 272,485,762 | 160,688,732 |
| Current lease liabilities | 13,768,130 | 10,069,352 | 2,717,596 | 4,259,323 |
| Total financial liabilities | 606,531,205 | 416,664,078 | 706,494,652 | 475,423,580 |
| Total equity | 908,698,005 | 826,669,437 | 609,914,620 | 585,981,368 |
| Debt/Equity | 0.67 | 0.50 | 1.16 | 0.81 |
| Cash and cash equivalents | 100,226,890 | 88,674,952 | 57,567,397 | 44,670,525 |
| Net financial liabilities | 506,304,315 | 327,989,126 | 648,927,255 | 430,753,055 |
| Net debt/Equity | 0.56 | 0.40 | 1.06 | 0.74 |
The Petrol Group
Petrol d.d., Ljubljana
| (in EUR) | Carrying amount | Fair value | Carrying amount | Fair value | |
|---|---|---|---|---|---|
| Non-derivative financial assets at fair value | Financial assets at fair value through other comprehensive income | 5,909,845 | 5,909,845 | 4,738,081 | 4,738,081 |
| Non-derivative financial assets at amortised cost | Fin. receivables (excluding derivative financial instruments) | 17,160,523 | 17,160,523 | 35,314,561 |
| Carrying amount | Fair value | Carrying amount | Fair value |
|---|---|---|---|
| Operating receivables (excluding receivables from the state) | 653,121,925 | 653,121,925 | 374,495,287 |
| Contract assets | 3,338,893 | 3,338,893 | 1,949,652 |
| Cash and cash equivalents | 100,226,890 | 100,226,890 | 88,674,952 |
| Total non-derivative financial assets | 779,758,076 | 779,758,076 | 505,172,533 |
| Non-derivative financial liabilities at amortised cost | |||
| Bank loans and other financial liabilities (excluding derivative fin. instr.) | (496,863,652) | (496,863,652) | (341,002,431) |
| Lease liabilities | (106,759,763) | (106,759,763) | (64,466,463) |
| Operating liabilities (excluding other non-current liabilities and current liabilities to the state, employees and arising from advance payments) | (565,319,947) | (565,319,947) | (293,974,017) |
| Total non-derivative financial liabilities | (1,168,943,362) | (1,168,943,362) | (699,442,911) |
| Derivative financial instruments at fair value | |||
| Derivative financial instruments (assets) | 34,666,891 | 34,666,891 | 11,107,888 |
| Derivative financial instruments (liabilities) | (2,907,790) | (2,907,790) | (11,195,184) |
| Total derivative financial instruments | 31,759,101 | 31,759,101 | (87,296) |
| Non-derivative financial assets at fair value | |||
| Financial assets at fair value through other comprehensive income | 3,218,360 | 3,218,360 | 2,327,008 |
| Non-derivative financial assets at amortised cost | |||
| Fin. receivables (excluding derivative financial instruments) | 99,480,234 | 99,480,234 | 80,372,148 |
| Operating receivables (excluding receivables from the state) | 393,804,064 | 393,804,064 | 248,044,144 |
| Contract assets | 7,604,649 | 7,604,649 | 3,276,761 |
| Cash and cash equivalents | 57,567,397 | 57,567,397 | 44,670,525 |
| Total non-derivative financial assets | 561,674,704 | 561,674,704 | 378,690,586 |
| Non-derivative financial liabilities at amortised cost | |||
| Bank loans and other financial liabilities (excluding derivative fin. instr.) | (674,133,733) | (674,133,733) | (430,158,309) |
| Lease liabilities | (29,453,129) | (29,453,129) | (31,868,245) |
| Operating liabilities (excluding other non-current liabilities and current liabilities to the state, employees and arising from advance payments) | (364,775,260) | (364,775,260) | (229,163,241) |
| Total non-derivative financial liabilities | (1,068,362,122) | (1,068,362,122) | (691,189,795) |
| Derivative financial instruments at fair value | |||
| Derivative financial instruments (assets) | 34,561,544 | 34,561,544 | 11,053,141 |
| Derivative financial instruments (liabilities) | (2,907,790) | (2,907,790) | (13,397,026) |
| Total derivative financial instruments | 31,653,754 | 31,653,754 | (2,343,885) |
The fair value of financial assets at fair value through other comprehensive income was assessed using the income capitalisation method and the assumption of a 5.0-percent required rate of return before taxes and a 1.5-percent long-term growth rate. An increase in the above assumptions by 0.5 percentage point would have caused the fair value to increase by EUR 2,114,879. A decrease in the above assumptions by 0.5 percentage point would have caused the fair value to decrease by EUR 846,121.
The fair value of financial assets at fair value through other comprehensive income was assessed using the income capitalisation method and the assumption of a 5-percent required rate of return before taxes and a 1.5-percent long-term growth rate. An increase in the above assumptions by 0.5 percentage point would have caused the fair value to increase by EUR
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Financial assets at fair value through profit or loss | 34,666,891 | -- | -- | 34,666,891 | 11,107,888 | -- | -- | 11,107,888 | ||
| Financial assets at fair value through other comprehensive income | 1,442,724 | - | 4,467,121 | 5,909,845 | 209,094 | - | 4,528,987 | 4,738,081 | ||
| Total assets at fair value | 36,109,615 | - | 4,467,121 | 40,576,736 | 11,316,982 | - | 4,528,987 | 15,845,969 | ||
| Non-current financial receivables | -- | 991,831 | 991,831 | -- | - | 2,680,471 | 2,680,471 | |||
| Current financial receivables | - | - | 16,168,692 | 16,168,692 | - | - | 32,634,090 | 32,634,090 | ||
| Non-current operating receivables | -- | 8,228,771 | 8,228,771 | -- | - | 10,565,315 | 10,565,315 | |||
| Current operating receivables (excluding rec. from the state) | -- | - | 644,893,154 | 644,893,154 | -- | - | 363,929,972 | 363,929,972 | ||
| Contract assets | -- | 3,338,893 | 3,338,893 | -- | -- | 1,949,652 | 1,949,652 | |||
| Cash and cash equivalents | - | - | 100,226,890 | 100,226,890 | - | - | 88,674,952 | 88,674,952 | ||
| Total assets with fair value disclosure | - | - | 773,848,231 | 773,848,231 | - | - | 500,434,452 | 500,434,452 | ||
| Total assets | 36,109,615 | - | 778,315,352 | 814,424,967 | 11,316,982 | - | 504,963,439 | 516,280,421 |
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Financial liabilities at fair value through profit or loss | (2,907,790) | -- | -- | (2,907,790) | (11,195,184) | -- | -- | (11,195,184) | |
| Total liabilities at fair value | (2,907,790) | - | - | (2,907,790) | (11,195,184) | - | - | (11,195,184) | |
| Non-current financial liabilities | -- | (433,812,995) | (433,812,995) | -- | -- | (303,431,060) | (303,431,060) | ||
| Non-current lease liabilities | -- | (92,991,633) | (92,991,633) | -- | -- | (54,397,111) | (54,397,111) | ||
| Current financial liabilities (excluding liabilities at fair value) | -- | (63,050,657) | (63,050,657) | -- | -- | (37,571,371) | (37,571,371) | ||
| Current lease liabilities | -- | (13,768,130) | (13,768,130) | -- | -- | (10,069,352) | (10,069,352) | ||
| Non-current operating liabilities (excluding other liabilities) | - | - | (5,024,000) | (5,024,000) | -- | - | (24,000) | (24,000) | |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | -- | (560,295,947) | (560,295,947) | -- | -- | (293,950,017) | (293,950,017) | ||
| Total liabilities with fair value disclosure | - | - | (1,168,943,362) | (1,168,943,362) | - | - | (699,442,911) | (699,442,911) | |
| Total liabilities | (2,907,790) | - | (1,168,943,362) | (1,171,851,152) | (11,195,184) | - | (699,442,911) | (699,442,911) |
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|---|---|---|
| Financial assets at fair value through profit or loss | 34,561,544 | -- | -- | 34,561,544 | 11,053,141 | -- | -- | 11,053,141 |
| Financial assets at fair value through other comprehensive income | 1,100,446 | - | 2,117,914 | 3,218,360 | 209,094 | - | 2,117,914 | 2,327,008 |
| Total assets at fair value | 35,661,990 | - | 2,117,914 | 37,779,904 | 11,262,235 | - | 2,117,914 | 13,380,149 |
| Non-current financial receivables | -- | 83,299,185 | -- | 83,299,185 | -- | 58,124,422 | -- | 58,124,422 |
| Current financial receivables | -- | 16,181,049 | -- | 16,181,049 | -- | 22,247,726 | -- | 22,247,726 |
| Non-current operating receivables | -- | 8,219,107 | -- | 8,219,107 | -- | 10,542,414 | -- | 10,542,414 |
| Current operating receivables (excluding receivables from the state) | -- | 385,584,957 | -- | 385,584,957 | -- | 237,501,730 | -- | 237,501,730 |
| Contract assets | -- | 7,604,649 | -- | 7,604,649 | -- | 3,276,761 | -- | 3,276,761 |
| Cash and cash equivalents | -- | 57,567,397 | -- | 57,567,397 | -- | 44,670,525 | -- | 44,670,525 |
| Total assets with fair value disclosure | - | - | 558,456,344 | 558,456,344 | - | - | 376,363,578 | 376,363,578 |
| Total assets | 35,661,990 | - | 560,574,258 | 596,236,248 | 11,262,235 | - | 378,481,492 | 389,743,727 |
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|---|---|---|
| Financial liabilities at fair value through profit or loss | (2,907,790) | -- | -- | (2,907,790) | (10,828,180) | - | (2,568,846) | (13,397,026) |
| Total liabilities at fair value | (2,907,790) | - | - | (2,907,790) | (10,828,180) | - | (2,568,846) | (13,397,026) |
| Non-current financial liabilities | -- | (404,555,761) | -- | (404,555,761) | -- | (282,866,603) | -- | (282,866,603) |
| Non-current lease liabilities | -- | (26,735,533) | -- | (26,735,533) | -- | (27,608,922) | -- | (27,608,922) |
| Current financial liabilities (excluding liabilities at fair value) | -- | (269,577,972) | -- | (269,577,972) | -- | (147,291,706) | -- | (147,291,706) |
| Current lease liabilities | -- | (2,717,596) | -- | (2,717,596) | -- | (4,259,323) | -- | (4,259,323) |
| Non-current operating liabilities (excluding other liabilities) | - | - | (5,024,000) | (5,024,000) | -- | (24,000) | -- | (24,000) |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | -- | (359,751,260) | - | (359,751,260) | - | (229,139,241) | - | (229,139,241) |
| Total liabilities with fair value disclosure | - | - | (1,068,362,122) | (1,068,362,122) | - | - | (691,189,795) | (691,189,795) |
| Total liabilities | (2,907,790) | - | (1,068,362,122) | (1,071,269,912) | (10,828,180) | - | (693,758,641) | (704,586,821) |
| (in EUR) | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| As at 1 January | 4,528,987 | 4,528,987 | 2,117,914 | 2,117,914 |
| New acquisitions | - | 1,398,705 | - | 1,398,705 |
| Disposals | - | (419,612) | - | (419,612) |
| Total profit or losses recognised in the statement of comprehensive income | (61,866) | -- |
|---|---|---|
| Total profit or losses recognised in the statement of profit or loss | (979,093) | (979,093) |
| As at 31 December | 4,467,121 | 4,528,987 |
| 2,117,914 | 2,117,914 |
| Category | 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|---|
| Sales revenue: | Subsidiaries | -- | 415,270,782 | 206,991,780 | |
| Jointly controlled entities | 2,311,547 | 534,220 | 18,346 | 32,337 | |
| Associates | 29,528 | 23,110 | 29,528 | 23,110 | |
| Cost of goods sold: | Subsidiaries | -- | 83,445,895 | 43,752,057 | |
| Jointly controlled entities | 142,232 | 98,326 | -- | ||
| Costs of materials: | Subsidiaries | -- | 412,845 | 218,101 | |
| Jointly controlled entities | 2,509 | 1,976 | - | 902 | |
| Costs of services: | Subsidiaries | -- | 685,341 | 593,551 | |
| Jointly controlled entities | 1,380 | - | -- | ||
| Gain on derivatives: | Subsidiaries | -- | 2,568,846 | 1,143,174 | |
| Loss on derivatives: | Subsidiaries | -- | 934,626 | 1,726,045 | |
| Finance income from interests in Group companies: | Subsidiaries | -- | 1,823,324 | 2,099,063 | |
| Jointly controlled entities | 300,040 | 124,978 | 135,495 | 172,934 | |
| Associates | 2,283,731 | 3,383,812 | 1,328,236 | 1,328,681 | |
| Finance income from interest: | Subsidiaries | -- | 1,052,504 | 505,509 | |
| Jointly controlled entities | 317,456 | 317 | 456 | ||
| Other finance income: | Subsidiaries | 1,179,726 | - | 68,409 | 173,383 |
| Associates | 729 | 1,433 | 729 | 1,433 | |
| Finance expenses due to impairment of investments and goodwill: | Subsidiaries | 873,366 | 2,662,470 | 11,193,296 | 3,605,872 |
| Finance expenses for interest: | Subsidiaries | -- | 2,220,406 | 1,218,265 | |
| Jointly controlled entities | - | 224 | - | 224 | |
| Allowance for operating receivables: | Jointly controlled entities | - | 426,265 | - | 426,265 |
| Category | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Subsidiaries | -- | 553,970,331 | 351,013,627 | |
| Jointly controlled entities | 704,501 | 562,016 | 210,000 | 233,000 |
| Associates | 55,169,626 | 55,953,391 | 26,610,477 | 29,185,477 |
| Category | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| Subsidiaries | -- | 83,233,789 | 56,492,385 |
| Category | 31 December 2021 | 31 December 2020 | 31 December 2021 | 31 December 2020 |
|---|---|---|---|---|
| Subsidiaries | -- | 56,193,756 | 16,575,671 | |
| Jointly controlled entities | 684,743 | 125,748 | 3,900 | 2,301 |
| Associates | 842 | 1,244 | 842 | 1,244 |
| Category | 31 December 2021 | 31 December 2020 | ||
|---|---|---|---|---|
| Subsidiaries | -- | 14,741,616 | 20,778,358 | |
| Jointly controlled entities | - | 68,800 | - | 68,800 |
| Category | 31 December 2021 | 31 December 2020 |
|---|---|---|
| Subsidiaries | -- | 377,677 |
| Category | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| Subsidiaries | -- | 7,523,646 | 424,711 |
| Category | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| Subsidiaries | -- | 5,559,143 | 1,364,744 |
| Category | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| Subsidiaries | -- | 21,000,000 | 29,638,849 |
| Category | 31 December 2021 | 31 December 2020 | ||
|---|---|---|---|---|
| Subsidiaries | -- | 207,418,493 | 112,597,148 | |
| Jointly controlled entities | 300,000 | 300,025 | 300,000 | 300,025 |
| Category | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| Subsidiaries | -- | 17,420,542 | 6,438,681 |
| Jointly controlled entities | - | 9,867 | -- |
| Category | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| Subsidiaries | -- | 9,241 | 5,773 |
Member of the Supervisory Board from 11 April 2021.
President of the Supervisory Board from 11 April 2021 to 21 April 2021, extended four-year term of office from 16 July 2021.
Extended four-year term of office from 23 February 2021.
2020
2021
Travel expenses, costs of accommodation and subsistence allowance are not disclosed as by their nature they do not represent Management Board remuneration.
Fixed remuneration – gross comprises the basic salary and pay for annual leave.
Variable remuneration – gross comprises the annual bonus and the performance bonus.
Total remuneration paid in 2021 by the Company to members of the Workers’ Council stood at EUR 7,988.
The Company and the Group had no receivables from or liabilities to Supervisory Board members as at 31 December 2021.
| Function | Basic SB payment | Attendance fees | Travel expenses | Sum gross | Sum net |
|---|---|---|---|---|---|
| Janez Žlak | 18,156 | 2,585 | - | 20,741 | 15,085 |
| Borut Vrviščar* | 15,731 | 2,585 | - | 18,316 | 13,321 |
| Aleksander Zupančič | 13,397 | 3,201 | 848 | 17,445 | 12,688 |
| Alenka Urnaut Ropoša | 14,693 | 3,201 | - | 17,894 | 13,015 |
| Mário Selecký | 13,397 | 2,090 | - | 15,487 | 12,002 |
| Mladen Kaliterna** | 26,045 | 4,851 | - | 30,896 | 22,471 |
| Alen Mihelčič*** | 25,258 | 3,575 | - | 28,833 | 20,970 |
| Robert Ravnikar*** | 25,258 | 4,191 | - | 29,449 | 21,418 |
| Marko Šavli*** | 18,844 | 4,235 | - | 23,079 | 16,786 |
| Janez Pušnik | 11,053 | 2,926 | - | 13,979 | 10,167 |
| Sašo Berger | 17,306 | 990 | - | 18,296 | 13,306 |
| Igo Gruden | 12,483 | 1,870 | - | 14,353 | 10,438 |
| Metod Podkrižnik | 11,861 | 1,650 | - | 13,511 | 9,827 |
| Sergij Goriup | 12,347 | 990 | - | 13,337 | 9,700 |
| Christoph Geymayer | 1,413 | 880 | - | 2,293 | 1,668 |
| Zoran Gračner | 6,598 | - | - | 6,598 | 4,799 |
| Total: | 243,840 | 39,820 | 848 | 284,507 | 207,660 |
| (in EUR) | Based on quantitative criteria | Based on qualitative criteria | Total | Deferred remuneration | Termination payments | Benefits | Clawback | Sum gross | Sum net | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nada Drobne Popović, President of the Management Board | 192,341 | 670 | 330 | 1,000 | - | - | 10,873 | - | 204,214 | 84,902 | |
| Jože Bajuk, Member of the Management Board since 11 March 2020 | 130,650 | 517 | 254 | 771 | - | - | 6,579 | - | 138,000 | 62,747 | |
| Matija Bitenc, Member of the Management Board since 11 March 2020 | 130,650 | 517 | 254 | 771 | - | - | 10,387 | - | 141,808 | 61,471 | |
| Jože Smolič, Member of the Management Board since 28 August 2020 | 57,733 | 141 | 70 | 211 | - | - | 4,790 | - | 62,734 | 26,416 | |
| Danijela Ribarič Selaković, Member of the Management Board until 10 March 2020 | 32,332 | 151 | 742 | 25 | - | - | 572 | - | 33,129 | 15,379 | |
| Tomaž Berločnik, MSc, President of the Management Board until 24 October 2019 | - | 55,275 | 27,225 | 82,500 | - | - | - | 82,500 | 48,201 | ||
| Rok Vodnik, MSc, Member of the Management Board until 24 October 2019 | - | 46,900 | 23,100 | 70,000 | - | - | - | 70,000 | 40,898 | ||
| Igor Stebernak, Member of the Management Board until 24 October 2019 | - | 46,900 | 23,100 | 70,000 | - | - | - | 70,000 | 40,898 | ||
| Ika Krevzel Panić, Worker Director until 10 December 2020 | 82,073 | 15,020 | 7,398 | 22,418 | - | 3,020 | - | 107,511 | 56,499 | ||
| Zoran Gračner, Worker Director since 11 December 2020 | 5,787 | - | - | - | 223 | - | 6,010 | 3,265 | |||
| Total: | 631,566 | 166,091 | 81,805 | 247,896 | - | - | 36,444 | - | 915,906 | 440,676 |
| Fixed remuneration - gross** | Variable remuneration - gross*** | (in EUR) | Based on quantitative criteria | Based on qualitative criteria | Total | Deferred remuneration | Termination payments | Benefits | Clawback | Sum gross | Sum net |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nada Drobne Popović, President of the Management Board | 198,166 | 33,347 | 100,040 | 133,387 | - | - | 28,945 | - | 360,498 | 132,971 | |
| Jože Bajuk, Member of the Management Board | 169,100 | 22,980 | 68,941 | 91,921 | - | - | 27,742 | - | 288,763 | 108,205 | |
| Matija Bitenc, Member of the Management Board | 169,100 | 22,980 | 68,941 | 91,921 | - | - | 26,622 | - | 287,643 | 111,196 | |
| Jože Smolič, Member of the Management Board | 169,100 | 9,939 | 29,817 | 39,756 | - | - | 23,896 | - | 232,752 | 88,143 | |
| Zoran Gračner, Worker Director | 107,506 | 2,966 | 8,898 | 11,864 | - | - | 3,452 | - | 122,822 | 66,967 | |
| Total: | 812,972 |
The maximum contingent liabilities of Petrol d.d., Ljubljana for guarantees issued stood at EUR 217,624,992 as at 31 December 2021 (31 December 2020: EUR 158,227,285) and were as follows:
| (in EUR) | 31 December 2021 | 31 December 2020 | Guarantee amount used | ||
|---|---|---|---|---|---|
| Guarantee issued to: | Petrol d.o.o. | 139,287,883 | 99,171,455 | 79,389,205 | 67,990,968 |
| Vjetroelektrarna Ljubač d.o.o. | 23,792,130 | 23,792,130 | - | - | |
| Geoplin d.o.o. Ljubljana | 21,000,000 | 13,000,000 | - | 8,069,782 | |
| E 3, d.o.o. | 15,000,000 | - | 4,781,973 | - | |
| Petrol BH Oil Company d.o.o. Sarajevo | 4,466,135 | 4,193,616 | 67,104 | 2,634,186 | |
| Petrol d.o.o. Beograd | 3,500,000 | 7,625,489 | 80,749 | 833,397 | |
| Petrol Trade Handelsgesellschaft m.b.H. | 3,000,000 | 3,000,000 | 1,800,000 | 1,800,000 | |
| Petrol Crna Gora MNE d.o.o. | 420,000 | 480,000 | 189,941 | 124,856 | |
| Aquasystems d.o.o. | 373,318 | 373,318 | 373,318 | 373,318 | |
| Total | 210,839,466 | 151,636,008 | 86,682,290 | 81,826,507 |
Bills of exchange issued as security: 99,585,169 (10,471,618)
Other guarantees: 6,785,526 (6,591,277)
Total contingent liabilities for guarantees issued: 317,210,161 (168,698,903) (193,052,985) (98,889,402)
The total value of lawsuits against the Company as defendant and debtor totals EUR 919,435. Interest on overdue amounts arising from the claims stood at EUR 118,787 as at 31 December 2021. The Company’s management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Company set aside long-term provisions. See explanation in Note 6.34.
The total value of lawsuits against the Group as defendant and debtor totals EUR 1,465,113. Interest on overdue amounts arising from the claims stood at EUR 118,787 as at 31 December 2021. The Group’s management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Group set aside long-term provisions. See explanation in Note 6.34.
The Group’s and the Company’s inventories as at 31 December 2021 included commodity reserve stocks of the Republic of Slovenia totaling EUR 188,730,588 (EUR 107,592,089 as at 31 December 2020). The Company’s and the Group’s inventories as at 31 December 2021 also included goods delivered on consignment totaling EUR 9,963,690 (EUR 31,750,932 as at 31 December 2020) and EUR 12,606,606 (EUR 32,787,543 as at 31 December 2020), respectively. The goods delivered on consignment are carried at cost, while the commodity reserve stocks are carried at calculated prices.
The Petrol Group does not have its own companies or representative offices in Ukraine, the Russian Federation and Belarus. The share of sales revenue generated by the Petrol Group in these markets is negligible, and the purchase of energy products in these markets, except for natural gas, represents a small share in the Petrol Group’s purchasing portfolio. In 2021 and the first two months of 2022, Russia as a source of supply has accounted for less than 7% as regards Petrol d.d., Ljubljana’s middle distillates (diesel and extra light heating oil), and as for petrol, we do not import it from Russia.
The largest part of the Petrol Group’s operations with companies from the Russian Federation is the purchase of natural gas, which takes place through Geoplin d.o.o., Ljubljana. For the time being, deliveries from Russia are going smoothly and in accordance with contractual obligations. Geoplin d.o.o., Ljubljana has a diversified supply portfolio and will do everything in its power to ensure the uninterrupted supply of natural gas to its customers.
As of 31 December 2021, the Petrol Group had the following exposure in its balance sheet to companies from the Russian Federation, Ukraine, and Belarus:
The Petrol Group closely monitors the situation in both the energy and financial markets. As a provider of essential services under the Information Security Act, we also carry out appropriate security measures and activities. For the time being, the Petrol Group’s operations are running smoothly, we are monitoring the situation through a risk identification and management system and taking appropriate measures to ensure an uninterrupted supply of energy.
After analysing the impact of the situation in Russia and Ukraine on our operations, we estimate that the situation known at the time of preparing the annual report does not affect the fulfilment of the Petrol Group’s plan for 2022.
In 2022, energy prices continue their upward progress, to which governments respond with various regulatory measures in the markets, in which the Petrol Group is active. The effects of regulation are continuously being considered; however, due to ongoing changes during the drawing up of the annual report, we are not in a position to be able to precisely assess the potential impact on the realisation of the Petrol Group’s plan for 2022.
There were no other events after the reporting date that would significantly affect the presented financial statements for 2021.
The energy part comprises an overview of the financial statements that the Company is obliged to disclose in accordance with the Energy Act (Official Gazette of the RS No. 17/14, 81/15 and 43/19), which stipulates that undertakings performing energy activities in the field of electricity or natural gas or heat supply have to prepare, audit and publish annual financial statements in the manner prescribed by law for companies, irrespective of their legal form and ownership.
In accordance with Article 66 of the Services of General Economic Interest Act (Official Gazette of the RS, No. 32/93 and 30/98), the Company has to separately monitor all accounting records that enable the calculation of costs, expenses and revenue according to the principles applicable to companies.
According to the provisions of the Energy Act, the annual report shall also include the rules and criteria based on which assets, liabilities, revenue and expenses are allocated to individual energy activities.
In separating financial statements, the principles of prudence and accuracy were taken into account. The Company maintains separate accounting records for each activity, thus enabling the close monitoring of all forms of revenue and expenses. At the same time, the Company discloses in its books fixed assets separately for individual activities.
The Company prepares separate financial statements in the electricity segment for the following activities:
The Company prepares separate financial statements in the natural gas segment for the following activities:
The Company prepares separate financial statements in the heat segment for the following activities:
The Company also prepares separate financial statements in the municipal and wastewater treatment segment.
Among other activities, the Company discloses all other marketing activities.
Within the Company, two areas are organised in the energy segment - the area of Energy and Environmental Systems and the area of Energy Product and Electricity Management, where the listed energy activities are carried out. The areas are organised separately, each area having its own executive director and its own specifics of organisation.
under tasks or cost centres. Within an individual energy activity, the Company has open profit centres up to the level of an individual local community or individual energy system, so that we have recognised revenues and expenses directly on individual activities as much as possible. Each activity has a profit centre – general, where the total income and expenses for each individual activity are recorded. The sum of all the income at profit centres represents the direct revenues of an individual activity, and the sum of all expenses represents the direct costs of an individual activity.
Direct costs by activity, together with direct costs at the profit centre – general, are the basis for the division of indirect income and indirect costs and expenses.
The Energy and Environmental Systems organisational unit supports Energy and Environmental Systems, where general costs belonging to the entire area are carried. Within this area, we perform energy activities: production of electricity, distribution of electricity – closed distribution system, distribution of natural gas (as an open and closed distribution system), heat generation and heat distribution. In addition to these activities, we also perform the activity of municipal and wastewater treatment. We also perform other energy marketing activities, which the Company presents in separate financial statements among other activities.
Direct costs by individual activity, together with direct costs at the profit centre – general, represent the sum of individual activities performed in Energy and Environmental Systems and are the basis for the division of indirect costs and expenses carried under support of Energy and Environmental Systems - 1st coverage for Energy and Environmental Systems.
The Energy Product and Electricity Management organisational unit supports Energy Product and Electricity Management - general, where general costs belonging to the entire area are recorded. Within this area, we perform energy activities: supply of electricity, supply of natural gas (as open and closed distribution systems), heat generation, and heat distribution. We also perform other energy marketing activities, which the Company presents in separate financial statements among other activities.
Direct costs by individual activity, together with direct costs at the profit centre - general, represent the sum of individual activities performed in the area of Energy Product and Electricity Management and form the basis for the division of indirect costs and expenses recorded in Energy Product and Electricity Management - General - 1st coverage for the area of Energy Product and Electricity Management.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 315
The Company has organised support functions, which the Company defines as support functions of energy activities for the areas of Energy and Environmental Systems and Energy Product and Electricity Management:
They are recorded by individual cost centres and are first divided into the Energy and Environmental Systems and Energy Product and Electricity Management organisational units (and further by individual activity) according to the applied criteria 4 and 5.
Support functions, which the Company defines as support functions of Energy and Environmental Systems and related costs - 2nd coverage for Energy and Environmental Systems are in total:
Sum of costs - 2nd coverage for Energy and Environmental Systems represent indirect costs from the 2nd coverage. Direct costs by individual activity, together with direct costs at the profit centre – general, represent the sum of individual activities performed in Energy and Environmental Systems and are the basis for the division of the indirect costs and expenses carried under the support functions of Energy and Environmental Systems - 2nd coverage for Energy and Environmental Systems.
Support functions, which the Company defines as support functions of Energy Product and Electricity Management and related costs - 2nd coverage for Energy Product and Electricity Management are in total:
Sum of costs - 2nd coverage for Energy Product and Electricity Management represent indirect costs from the 2nd coverage. Direct costs by individual activity, together with direct costs at the profit centre – general, represent the sum of individual activities performed in the field of Energy Product and Electricity Management and are the basis for the division of indirect costs and expenses carried under the support functions of Energy Product and Electricity Management - 2nd coverage for Energy Product and Electricity Management.
All costs that belong to other support functions in the Company as a whole or in shares that are organised in the Company are shown among the other activities of the Company.
Financial expenses for interest on loans are calculated and attributed to an individual activity. The basis for calculating interest is 50 percent of the average value of the non-current assets of an individual activity at the beginning of the year and at the end of the year. The interest rate is calculated as the average annual interest rate applicable to the Company for long-term and short-term loans.
The statement of profit or loss was divided in the following steps:
The statement of financial position was divided in the following steps:
Current and non-current financial liabilities from loans are calculated and attributed to an individual activity. The basis for calculating the balance of loans is 50 percent of the average value of the non-current assets of an individual activity at the beginning of the year and at the end of the year. Of this calculated value of loans, we carry 80 percent of the value among non-current financial liabilities and 20 percent of the value among current financial liabilities.
| Activity | Sales revenue | Cost of goods sold | Costs of materials | Costs of services | Labour costs | Depreciation and amortisation |
|---|---|---|---|---|---|---|
| Natural gas distribution system operator | 13,171,390 | - | (2,375,165) | (847,487) | (1,174,637) | (2,802,293) |
| Natural gas supply | 38,496,323 | (44,509,086) | (147) | (68,555) | (83,035) | (7,736) |
| Closed natural gas distribution system | 663,259 | - | (395,381) | (23,906) | (103,255) | (30,479) |
| Heat generation | 3,797,189 | - | (2,244,255) | (528,776) | (903,407) | (551,019) |
| Heat distribution | 1,994,733 | 6,683 | (472,734) | (251,058) | (913,542) | (606,992) |
| Electricity production | 2,834,628 | - | (1,413,989) | (354,313) | (212,292) | (428,961) |
| Electricity supply | 229,672,272 | (232,854,336) | (1,082) | (1,003,527) | (305,403) | (44,265) |
| Closed electricity distribution system | 4,191,254 | - | (1,792,681) | (275,573) | (835,837) | (715,623) |
| Municipal wastewater and run-off rainwater treatment | 2,938,049 | (1,277) | (395,633) | (645,074) | (500,809) | - |
| Other activities | 3,259,260,693 | (2,919,171,723) | (14,727,697) | (110,206,720) | (73,286,774) | - |
| Total | 3,557,019,790 | (3,196,529,739) | (23,818,764) | (114,204,989) | (78,318,991) | - |
| (504,472) | (41,004,831) | (46,696,671) |
|---|---|---|
| Other costs | (846,148) | (297) |
| (4,501) | (178,438) | (41,438) |
| (168,312) | (20,926,707) | (112,007) |
| (77,421) | (13,308,080) | (35,663,349) |
| Operating costs | (8,045,730) | (159,770) |
| (557,522) | (4,405,895) | (2,285,764) |
| (2,577,867) | (22,280,984) | (3,731,721) |
| (2,123,409) | (252,534,102) | (298,702,764) |
| 67,481 | - | - |
|---|---|---|
| 16,575 | 36,261 | - |
| - | 1,527 | 3,725 |
| 274,663,852 | 274,789,421 |
| - | - | - |
|---|---|---|
| - | - | - |
| - | - | (236,292,875) |
| (236,292,875) |
| 5,193,141 | (6,172,533) | 105,737 |
|---|---|---|
| (592,131) | (248,087) | 256,761 |
| (25,463,048) | 461,060 | 817,088 |
| 125,925,845 | 100,283,833 |
| Finance income from dividends paid by subsidiaries, associates and jointly controlled entities | 3,287,054 | 3,287,054 |
|---|---|---|
| - | - | - |
|---|---|---|
| - | - | - |
| - | - | 23,508,629 |
| 23,508,629 |
| (396,788) | (64) | (3,070) |
|---|---|---|
| (42,314) | (87,444) | (24,866) |
| (397) | (115,742) | (40,011) |
| (42,971,477) | (43,682,173) |
| (396,788) | (64) | (3,070) |
|---|---|---|
| (42,314) | (87,444) | (24,866) |
| (397) |
| Activity | Natural gas distribution system operator | Natural gas supply | Closed natural gas distribution system | Heat generation | Heat distribution | Electricity production | Electricity supply | Closed electricity distribution system | Municipal wastewater and run-off rainwater treatment | Other activities | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | Non-current (long-term) assets | Intangible assets and right to use of leased assets | 39,761,740 | 3,789 | - | 1,823,301 | 5,768,532 | - | 21,644 | 19,299 | 3,860,245 | 132,141,091 | 183,399,641 |
| Property, plant and equipment | 469,912 | 449 | 309,417 | 2,496,690 |
4,796,353
(6,172,597)
102,667
(634,445)
(335,531)
231,895
(25,463,445)
345,318
777,077
109,750,051
83,397,343
(911,307)
1,172,793
(19,506)
120,546
63,751
(44,061)
4,838,054
(65,611)
(147,645)
(23,788,882)
(18,781,868)
-
-
-
-
-
-
-
-
-
1,867,467
1,867,467
(911,307)
1,172,793
(19,506)
120,546
63,751
(44,061)
4,838,054
(65,611)
(147,645)
(21,921,415)
(16,914,401)
3,885,046
(4,999,804)
83,161
(513,899)
(271,780)
187,834
(20,625,391)
279,707
629,432
87,828,636
| Investment property | 3,098,682 |
|---|---|
| 2,392,236 | |
| 6,188 | |
| 11,799,139 | |
| 33,271 | |
| 345,656,173 | |
| 366,262,157 | |
| Investments in subsidiaries | 553,970,331 |
| 553,970,331 | |
| Investments in jointly controlled entities | 210,000 |
| 210,000 | |
| Investments in associates | 26,610,477 |
| 26,610,477 | |
| Financial assets at fair value through other comprehensive income | 2,117,914 |
| 2,117,914 | |
| Financial receivables | 83,299,185 |
| 83,299,185 | |
| Operating receivables | 8,219,107 |
| 8,219,107 | |
| Deferred tax assets | 8,155,514 |
| 8,155,514 | |
| Total | 40,231,652 |
| 4,238 | |
| 309,417 |
| Inventories | 96,573,239 | 96,573,239 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Contract Assets | 7,604,649 | 7,604,649 | |||||||||
| Financial Receivables | 16,181,049 | 16,181,049 | |||||||||
| Operating Receivables | 27,832,956 | 53,592,205 | 807,990 | 5,532,442 | 2,457,790 | 154,231 | 151,216,645 | 11,458,212 | 624,164 | 132,153,256 | 385,829,891 |
| Corporate Income Tax Assets | - | - | |||||||||
| Financial Assets at Fair Value Through Profit or Loss | 34,561,544 | 34,561,544 | |||||||||
| Financial Assets at Fair Value Through Other Comprehensive Income | 1,100,446 | 1,100,446 | |||||||||
| Prepayments and Other Assets | - | - |
| Cash and cash equivalents | 50,728,784 |
|---|---|
| Total assets | 650,146,999 |
| Natural gas distribution system operator | 57,567,397 |
|---|---|
| Natural gas supply | 27,832,956 |
| Closed natural gas distribution system | 53,592,205 |
| Heat generation | 807,990 |
| Heat distribution | 5,532,442 |
| Electricity production | 2,457,790 |
| Electricity supply | 154,231 |
| Closed electricity distribution system | 151,216,645 |
| Municipal wastewater and run-off rainwater treatment | 11,458,212 |
| Other activities | 624,164 |
| 396,470,364 | |
| 1,569,155,924 | |
| 1,894,727,319 |
| Equity attributable to owners of the controlling company | 16,544,318 |
|---|---|
| Called-up capital | 2,569,303 |
| (2,474) | |
| 3,597,624 | |
| 1,000,013 | |
| (2,658,811) | |
| 5,794,600 | |
| 4,508,757 | |
| Total | 20,887,647 |
| 52,240,977 | |
| Capital surplus | 16,544,318 |
| 2,569,303 | |
| (2,474) | |
| 3,597,624 | |
| 1,000,013 | |
| (2,658,811) | |
| 5,794,600 | |
| 4,508,757 | |
| 49,638,055 | |
| 80,991,385 | |
| Legal reserves | |
| Reserves for own shares | 61,749 | 884 |
|---|---|---|
| Own shares | 4,708,359 | 4,708,359 |
| Other revenue reserves | 340,914,615 | 340,914,615 |
| Fair value reserve | 39,809 | 449 |
| Hedging reserve | (1,136,850) | (1,136,850) |
| Retained earnings | 33,241 | 471 |
| Net profit or loss for the year | 3,885,046 | (4,999,804) |
| 83,161 | (513,899) | |
| (271,780) | 187,834 | |
| (20,625,391) | 279,707 | |
| 629,432 | 21,345 | |
| Total equity | 36,973 | 682 |
| 138,802 | 78,213 |
| Non-current liabilities | Provisions for employee post-employment and other long-term benefits | - | - | - | - | - | 7,969,809 | 7,969,809 |
|---|---|---|---|---|---|---|---|---|
| Other provisions | - | - | - | - | - | - | 17,606,490 | 17,606,490 |
| Long-term deferred revenue | - | - | 107,422 | 253,431 | 119,000 | - | 2,034 | - |
| Total | 28,977,184 | 29,459,071 | ||||||
| Financial liabilities | 16,532,821 | 2,656 | 127,902 | 1,763,081 | 3,643,501 | 1,036,096 | 16,560 | 4,822,593 |
| Current liabilities | Financial liabilities | 4,133,205 | 664 | 31,976 | 440,770 | 910,875 | 259,024 | 4,140 |
| Lease liabilities | - | - | - | - | - | - | 5,024,000 | 5,661,782 |
| Current liabilities | 17,170,603 | 2,715 | 127,902 | 1,870,503 | 3,896,932 | 1,155,096 | 16,895 | 4,824,627 |
| Total | 461,256,054 | 491,988,446 |
| Operating liabilities | 2,717,596 | 2,717,596 |
|---|---|---|
| 9,184,573 | 46,494,196 | |
| 844,673 | 833,952 | |
| 4,680,466 | 6,169,113 | |
| 135,688,529 | 7,947,822 | |
| 1,799,431 | 228,865,177 | |
| 442,507,932 | Corporate income tax liabilities | |
| 16,353,199 | ||
| 16,353,199 | ||
| Contract liabilities | 6,803 | 16,829 |
| - | - | |
| 253 | - | |
| 168,793 | - | |
| 2,551 | 7,710,609 | |
| 7,905,838 | Other liabilities | |
| 595,742 | 6,943,237 | 34,643 |
| 56,085 | 108,232 | 93,022 |
| 24,402,311 | 1,332 | 2,367 |
| 18,616,955 | 50,853,926 | 13,920,323 |
| 53,454,926 | 911,292 | 1,330,807 |
| 5,699,826 | 6,521,159 | 160,263,773 |
| 9,154,802 | 2,221,129 | 539,346,216 |
| Total liabilities | 31,090,926 | 53,457,641 |
| 1,039,194 | 3,201,310 | 9,596,758 |
| 7,676,255 | 160,280,668 | 13,979,429 |
| 3,888,248 | 1,000,602,270 | 1,284,812,699 |
| Total equity and liabilities | 68,064,608 | 53,596,443 |
| 1,117,407 | 9,882,659 | 11,325,004 |
| 2,546,467 | 151,244,477 | 23,276,650 |
| 4,517,680 | 1,569,155,924 | 1,894,727,319 |
| Cash flows from operating activities | Net cash from (used in) operating activities | 998,280 | 2,998 | 12,870 | 478,932 | 211,929 | 57,819 | 17,524 | 355,275 | (4,077) | 63,806,406 | 65,937,956 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash flows from investing activities | Net cash from (used in) investing activities | (601,492) | (2,934) | (9,801) | (436,617) | (124,485) | (32,953) | (17,127) | (239,534) | 44,088 | (244,755,057) | (246,175,912) |
| Cash flows from financing activities | Net cash from (used in) financing activities | (396,788) | (64) | (3,069) | (42,315) | (87,444) | (24,866) | (397) | (115,741) | (40,011) | 193,845,523 | 193,134,828 |
| Increase/(decrease) in cash and cash equivalents | - | 12,896,872 | 12,896,872 | |||||||||
| Changes in cash and cash equivalents | At the beginning of the year | - | 44,670,525 | 44,670,525 | ||||||||
| Cash acquired through mergers by absorption | - |
| At the end of the year | 12,896,872 |
|---|---|
| 57,567,397 |
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