Annual Report (ESEF) • Apr 17, 2023
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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 | 2022 | 2021 | Index 2022/2021 |
|---|---|---|---|
| Sales revenue | EUR million 9,456.7 | EUR million 4,960.1 | 191 |
| Adjusted gross profit1 | EUR million 393.4 | EUR million 543.4 | 72 |
| Operating profit | EUR million -7.9 | EUR million 151.1 | - |
| Net profit | EUR million -2.7 | EUR million 124.5 | - |
| Equity | EUR million 860.2 | EUR million 908.7 | 95 |
| Total assets | EUR million 2,740.6 | EUR million 2,403.8 | 114 |
| EBITDA1, 2 | EUR million 96.3 | EUR million 238.1 | 40 |
| EBITDA/Adjusted gross profit1, 2 | % 24.5 | % 43.8 | 56 |
| Operating costs/Adjusted gross profit1 | % 118.9 | % 79.7 | 149 |
| Net debt/Equity1 | 0.60 | 0.56 | 108 |
| Net debt/EBITDA1, 2 | 5.4 | 2.1 | 252 |
| Return on equity (ROE)1 | % -0.3 | % 14.3 | - |
| Return on capital employed (ROCE)1 | % -0.5 | % 10.8 | - |
| Added value per employee1, 2 | EUR thousand 41.3 | EUR thousand 70.3 | 59 |
| Earnings per share attributable to owners of the controlling company3 | EUR 0.1 | EUR 2.9 | - |
| Share price as at last trading day of the year3 | EUR 20.0 | EUR 25.4 | 79 |
| Volume of fuels and petroleum products sold | thousand tons 4,095.2 | thousand tons 3,284.9 | 125 |
| Volume of natural gas sold | TWh 18.9 | TWh 35.4 | 54 |
| Volume of electricity sold | TWh 12.0 | TWh 13.8 | 87 |
| Revenue from the sales of merchandise and services | EUR million 520.1 | EUR million 469.5 | 111 |
1 2021 - recalculated by taking into account the share split.
| 31 December 2022 | 31 December 2021 | Index 2022/2021 | |||
|---|---|---|---|---|---|
| Number of employees | 6,224 | 6,237 | 100 | ||
| Number of service stations | 594 | 593 | 100 | ||
| Number of e-charging points operated by the Petrol Group | 417 | 296 | 141 | ||
| Number of electricity customers thousand | 225.7 | 224.6 | 101 | ||
| Number of natural gas customers (data for Geoplin d.o.o., Ljubljana are not included) thousand | 60.4 | 47.4 | 128 |
Dear shareholders, business partners and co-workers,
2022 was a special year in many respects. It was marked by extraordinary events in the geopolitical and economic environment, which could not have been foreseen and that left a strong mark on the European and Slovenian economies. The regulation of energy product prices to mitigate the effects of the energy crisis had a negative impact on the Petrol Group’s business performance. It deviates from the ambitious Petrol Group Business Plan 2022, as the business situation was significantly different from the assumptions made at the time of the annual planning.
Concentration of emergencies: energy crisis, energy transition and the price regulation of energy products
2022 has been a very challenging year for the economy. The heightened geopolitical situation due to the war in Ukraine, the energy crisis and rising inflation have created numerous and complex challenges. EU Member States have sought to reduce the burden of the extremely high energy product price increases on their populations and economies by regulating energy product prices, and have sought ways to replace Russian energy supplies, including by placing greater emphasis on the provision and use of renewable energy sources.
A well-established risk management system, enhanced cooperation with the Supervisory Board and a swift but measured response to extremely challenging business conditions have helped the Petrol Group mitigate the impact of negative developments in the business environment as much as possible. In the Petrol Group, 2022 will be remembered not only for the challenges posed by the crisis, but also for the successes that have strengthened us in these difficult circumstances.
The effective integration of Petrol Group companies
With the acquisition of Crodux derivati dva d.o.o. in 2021, Petrol has become the second largest supplier of petroleum products in Croatia with 202 points of sale. The legal merger of Petrol d.o.o. with the Croatian company Petrol d.o.o., one of the largest business acquisitions in the Petrol Group’s history, was completed at the beginning of November 2022, two months ahead of schedule. With more than 2,100 employees, Petrol d.o.o. is one of the largest Croatian companies and strengthens Petrol’s position as a comprehensive energy solutions provider in Croatia.
In 2021, the acquisition of E 3, d.o.o. strengthened our market share and expertise in the electricity market. In 2022, we enhanced the merger by integrating the entire business of E 3, d.o.o. into Petrol’s information system.
In 2022, we successfully completed the implementation of the SAP ERP system in all the key companies of the Petrol Group. By further introducing process organisation and functional management throughout the Petrol Group, we have strengthened synergies and pursued a more uniform approach in the markets of our subsidiaries.
We remain committed to the green transition, following our strategic vision to become an integrated partner in the energy transition with an excellent customer experience.
In February 2022, Petrol’s Supervisory Board approved an investment in solar power plants in Knin, Croatia. It consists of three large solar power plants with a total installed capacity of 22 MW and an expected electricity production of 29 GWh, which will be operational by summer 2023. In the Kraljevo region of Serbia, the Grajići small hydropower plant completed its test run and went into commercial operation at the beginning of the year. The plant has a capacity of 1.0 MW and is expected to produce around 3.2 GWh per year, enough to supply 1,000 households in Serbia. In May, together with Cinkarna Celje, we commissioned Slovenia’s largest solar power plant, which consists of 2,222 solar modules with a total rated output of 1 MW. It is expected to produce 1,160 MWh of electricity per year, enough to supply around 330 average households.
In Serbia, we and our partners successfully completed a project to renovate public lighting in the municipality of Kikinda in July 2022. This is the sixth project of its kind in Serbia and the 30th in Petrol’s portfolio of energy-efficient public lighting projects in the region. In 2022, the first phase of the Petrol Green project - the installation of solar power plants on the roofs of our points of sale and facilities - was launched. The aim is to gradually equip the entire Petrol network in Slovenia with solar power plants.
We launched a project to digitise the Oil & Gas supply chain for service stations, heating oil and gas deliveries and cylinder sales, which will be completed in spring 2024. It will automate, integrate and digitise logistics processes. The project will also have an important sustainability aspect - up to 10 percent fewer emissions per year.
At the point of sale, we also continued to build a quality and sustainable relationship with our customers. Q Max fuel was named Product of the Year for the third time in February 2022, and for the first time, the “Na Poti” app was also awarded this title. In June, we became one of the first energy companies in Europe to receive the European Quality Certification EQTM from the European Organisation for Quality (EOQ) for the Q Max family of fuels.
High energy prices and rising inflation have led to the government regulation of fuel, electricity and natural gas prices in all markets where the Group operates (in Slovenia alone, no less than 37 regulations were adopted for this purpose in 2022), which has had a significant impact on the Group’s business and thus on the achievement of the Petrol Group’s business plan for 2022. The performance of Geoplin d.o.o. Ljubljana, which was exposed to the non-delivery of Russian natural gas and the high volatility of natural gas prices, also had a significant negative impact on the Petrol Group’s business performance.
For 2022, the Petrol Group planned sales revenues of EUR 5.9 billion, with the total sales revenues reaching a record EUR 9.5 billion, an increase of 91 percent compared to 2021. In addition to the higher purchase and selling prices of fuels and energy products, the increase in sales revenues compared to the previous year was also driven by low-cost volume sales of fuels and petroleum products and the incorporation of Crodux derivati dva d.o.o. into the Petrol Group. The Petrol Group sold 4.1 million tons of fuels and petroleum products in 2022, an increase of 25 percent compared to the previous year. Due to the high purchase prices of all energy products and the impact of the regulation of motor fuels and other energy products, this increase in sales is not reflected in the adjusted gross profit. It amounted to EUR 393.4 million, down 28 percent year-on-year.
The Petrol Group’s EBITDA reached EUR 96.3 million in 2022, a decrease of 60 percent compared to 2021. The largest negative impact on this was due to the regulation of motor fuels in all markets, amounting to EUR 188.9 million, while the Petrol Group’s EBITDA was also affected by the damage caused to Geoplin d.o.o. Ljubljana due to the non-delivery of natural gas and the price regulation of other energy products in the Slovenian and Croatian markets.
The changed circumstances have also required the Petrol Group to adjust its investment funds. In 2022, investments amounted to EUR 59.8 million, of which 48 percent for energy transition projects, while the amount set aside for further development in the 2022 plan stood at EUR 100 million.
We are working to obtain compensation for the economic damage caused to Petrol by the regulation. Although we have been actively seeking an agreement, we have so far been unsuccessful and have had to take the legal route. In both Slovenia and Croatia, an out-of-court settlement has been submitted to the state attorney’s office, amounting to EUR 106.9 million in Slovenia and EUR 55.9 million in Croatia.
Against this background, it is encouraging that, despite the tight operating conditions, S&P Global Ratings has reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-term rating, its »A-3« short-term credit rating and its »stable« credit rating outlook in December 2022.
In an effort to make the Petrol share more attractive to smaller investors, a successful 1:20 split of the PETG share was carried out in November 2022. At the end of 2022, the Ljubljana Stock Exchange awarded Petrol d.d., Ljubljana the First Listing Share of the Year Award.
In 2022, despite the challenging environment, we paid our highest ever gross dividend of EUR 30 per share to shareholders for 2021.
In 2023, uncertainty about the supply and price of energy products has diminished, the outlook for economic growth has improved accordingly, and inflation is expected to moderate gradually, although it remains high in the early months of 2023.
Even though we are facing a challenging period ahead due to the still tight energy markets, we are cautiously optimistic about 2023. The Petrol Group’s business will continue to be significantly impacted by the regulation of fuel and energy product sales prices, tighter purchasing conditions and inflation, which will be addressed by adapting business processes and optimising costs. In addition, a number of factors in the international and domestic environment will also have an impact on business: the uncertain geopolitical and economic situation, the state of the global oil and energy markets, and movements in the US dollar.
In line with our strategy until 2025, we continue to pursue our core objectives of achieving business growth while remaining committed to sustainable development. Slovenia, Croatia and Serbia remain key markets for Petrol. In 2023, we plan to have a stable business and a positive result at the end of the year by meeting all our financial commitments.
We have long warned that regulation has a negative impact on the Petrol Group’s business and, consequently, on the Company’s stakeholders. We will work to deregulate or at least adapt regulation to models that are dynamic and take into account the rising operating costs. Margins that are too low jeopardise our business objectives such as productivity growth, sales and green transformation. Only with a sustainable pricing model can the Petrol Group compete in the market, invest in development, remain a supporter of socio-economic life, and at the same time provide stable returns to shareholders and secure employment for more than 6,000 employees and business cooperation for suppliers.
The year ahead will not be easy. Our goals are ambitious but achievable. I am confident that with the quality of our team at Petrol Group, we will be able to achieve our goals. We thank all our customers for continuing to choose Petrol to meet their energy needs, our shareholders for their confidence even in difficult circumstances, and our business partners and other stakeholders for their support and cooperation. As one of the largest energy companies in the region, we at the Petrol Group will continue to strive to provide strong support to households, businesses and the public sector, both in meeting the challenges of the energy crisis and in the transition to a zero carbon future.
Nada Drobne Popović
President of the Management Board
the adjusted gross profit.
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 2022, 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, 6 April 2023
The Supervisory Board of Petrol d.d., Ljubljana, in its current composition, has been functioning since 22 April 2021. In 2022, the Supervisory Board continued to be composed of the President, Janez Žlak, the Deputy President, Borut Vrviščar, and the Members Mladen Kaliterna, Alenka Urnaut, Mário Selecký, Aleksander Zupančič, Robert Ravnikar, Marko Šavli and Alen Mihelčič. The composition is diverse in terms of education, work experience and personality traits, all of which allow for an effective professional complementarity in the exchange of views and opinions.
In 2022, all the Supervisory Board members attended meetings regularly and virtually all decisions were taken unanimously. The Supervisory Board members thoroughly prepared themselves for the topics discussed, gave constructive proposals, and adopted decisions 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 both Supervisory Board committees and their substantive input. The Supervisory Board kept stakeholders informed on a regular basis.
scheduled for 2022 according to the financial calendar, it held a further 10 extraordinary meetings, virtually all of which were devoted to the emergency situation regarding energy product supply, the regulation of energy product prices and their impact on the business and operations of the subsidiary Geoplin d.o.o. Ljubljana.
Throughout the year, the Supervisory Board regularly monitored the Petrol Group’s operations and its development in a challenging global and economic environment, focusing on the identification and management of business risks that are important to the future success of the Group’s business.
In February 2022, the Supervisory Board held an extraordinary meeting, not included in the financial calendar, in order to receive presentations and decide on certain investments. At this meeting, the Board also took note of the report of the Works Council, and a new version of the Corporate Governance Policy of Petrol d.d., Ljubljana, was reviewed, amended and published.
In March 2022, the Supervisory Board approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021, discussed the proposal on the allocation of accumulated profit, the proposal on the Petrol share split, and approved the convening of the 34th Annual General Meeting. The Supervisory Board was also informed about the current energy product supply situation in connection with the consequences of the war in Ukraine and on the impact of the introduced price regulation of petroleum products on the Company’s operations, which, together with the reporting on the impact of the price regulation of other energy products, was an important topic at the Supervisory Board meetings throughout the year.
An unscheduled meeting was held again in April to provide an update on the digitalisation project and to report on the impact of the petroleum product price regulation on the business.
In May, the Supervisory Board discussed the Report on the performance of the Petrol Group and Petrol d.d., Ljubljana, in the first three months of 2022.
At extraordinary meetings held in June, July and August, the Supervisory Board was informed about the impact of the regulation of petroleum product prices on the Petrol Group’s business and on the implementation of the business plan and, as part of the measures to manage the risks arising from the impact of the regulation of petroleum product prices, approved the Company’s cash flow plan, taking into account the impact of the subsidiaries. In addition, at its regular meeting in August, the Supervisory Board discussed the Report on the business activities for the first half of 2022.
At four extraordinary meetings in September and October, the Supervisory Board discussed the impact of the price regulation of energy products on the Petrol Group’s operations in Slovenia and Croatia, took note of the report on the measures taken to secure the legal and financial position of the Petrol Group in the light of the regulatory provisions in the field of energy supply in both Slovenia and Croatia, and the preliminary results of the financial and legal audit of the operations of Geoplin d.o.o. Ljubljana, which mainly related to the breach of an agreement for the supply of natural gas by its business partner Gazprom, and, together with the Management Board, sought appropriate solutions and scenarios to manage the related negative effects on the business.
At its regular meeting in November, the Supervisory Board discussed the Report on the business of the Petrol Group and Petrol d.d., Ljubljana in the first nine months of 2022, took note of the measures to compensate for the damage caused by the regulation of energy product prices and the measures to manage the business of Geoplin d.o.o. Ljubljana and alternative sources of natural gas supply, and discussed the baselines for the preparation of the Petrol Group’s annual business plan.
The main topic of the December meeting was the discussion of scenarios for the Petrol Group’s 2023 business plan. 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. It also took note of the Audit Committee’s conclusions and carried out a self-assessment.
All the decisions taken at regular and extraordinary meetings of the Supervisory Board concerning the impact of price regulation on the operations of the Petrol Group companies were taken unanimously.
The Supervisory Board, acting within its powers, made responsible decisions and discussed a number of other matters within its terms of reference:
All the working procedures of the Supervisory Board are geared towards ensuring the basic rules that must apply in the effective operation of this body:
The Audit Committee of the Supervisory Board held 9 meetings in 2022 to discuss quarterly reports on the operations of the Petrol Group and Petrol d.d., Ljubljana, and discussed standard and other matters, such as:
The Committee also discussed the revised 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.
Committee held one meeting in 2022 to evaluate the work of the Management Board in 2021 and to make proposals to the Supervisory Board on the remuneration for its work in 2021. It also reviewed and approved the Remuneration Policy for the Management Board and the Supervisory Board, which was submitted to the General Meeting for adoption.
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 – in the context of self-assessing its performance – deemed the work of both committees to have been very good.
On 19 January 2023, the Supervisory Board of Petrol d.d., Ljubljana took note of the Petrol Group’s performance assessment for 2022. The Management Board prepared the performance assessment due to anticipated deviations from the Petrol Group Business Plan 2022. The estimated deviations are due to the tight operating conditions in the context of the ongoing energy crisis and the government’s measures to mitigate its impact. The information contained in the publication “Preliminary Unaudited Performance Assessment of the Petrol Group for 2022” is available on the website of Petrol d.d., Ljubljana.
At its 30th meeting of 16 March 2023, the Supervisory Board took note of and discussed the unaudited results of the Petrol Group for 2022.
The Petrol Group’s sales revenue stood at EUR 9.5 billion in 2022, up 91 percent on the year before. Adjusted gross profit stood at EUR 393.4 million, which was 28 percent less than in 2021. The EBITDA totalled EUR 96.3 million and was 60 percent lower than in 2021. The net profit for 2022 totalled EUR -2.7 million, a decrease of EUR 127.2 million from 2021.
At its 32nd meeting held on 13 April 2023, the Supervisory Board discussed the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2022. 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 2022.
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 2022, concluding the actual state of corporate governance in 2022.
Dr Janez Žlak
President of the Supervisory Board
Ljubljana, 13 April 2023
Our Mission
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 in the long term.
Our Promise
Through energy transition, we create a green future and make a significant contribution to protecting our environment.
Our Vision
To become an integrated partner in the energy transition, offering an excellent user experience.
Our Values
• Respect: We respect fellow human beings and the environment.
• Trust: We build partnerships through fairness.
• Excellence: We want to be the best at all we do.
• Creativity: We use our own ideas to make progress.
• Courage: We work with enthusiasm and heart.
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 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.
Petrol’s strategy sets clear goals for the realisation of our vision: “To become an integrated partner in the energy transition with an excellent customer 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, the public sector and households, Petrol is taking a leading role in achieving environmental goals.
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 the energy product supply segment 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).
The strategic objectives for 2025 are as follows:
By achieving the goals, we will strengthen the long-term financial stability of the Petrol Group. Through a stable dividend policy, we will ensure a balanced dividend yield for shareholders and the use of free cash flows to finance the Petrol Group’s investment plans. This will allow for the long-term growth and development of the Group, maximising its value for the owners. The dividend policy target for the 2021-2025 strategic period is 50 percent of the Group’s net profit, taking into account the investment cycle, Group indicators and the achieved objectives.
The turbulence in the energy markets, high inflation and the resulting regulatory intervention by governments in the pricing of energy products have severely impacted the Petrol Group’s business. The Petrol Group’s business model as a petroleum retailer does not allow it to cover all costs given the purchase prices which enable refineries to make their profits during the period of retail price regulation. The changed circumstances also required the Petrol Group to adjust its capital expenditure as early as 2022. Energy transition projects continue to account for the bulk of our investment funds. In the light of current developments in the energy markets, the Petrol Group will revise its business plan for the next five-year period in early 2024, if necessary.
In accordance with the Petrol Group Strategy for 2021-2025, in June 2021 the Management Board of Petrol adopted a new organisation of the Company and the Petrol Group, which was updated in 2022 in the course of the process of incorporation of Crodux derivati dva d.o.o. into Petrol d.o.o. on the Croatian market as of 1 October 2022.
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. With clearly defined responsibilities, processes are more efficient, work procedures are unified and more centralised, and thus specialisation is increased. 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.
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 quality 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. In 2022, with the merger of Crodux derivati dva d.o.o. into Petrol d.o.o., we introduced a functional organisation in the Croatian market, which will be implemented by the end of the strategic period in other subsidiaries in Slovenia and in companies in the markets of Bosnia and Herzegovina, Serbia and Montenegro.
Petrol meets its targets while complying with the applicable regulations and the 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. 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.
The Petrol Group’s Business Plan for 2023 has been drawn up in a context of great uncertainty, mainly related to the situation on the energy markets. Economic growth is slowing down. The embargo on Russian crude oil and petroleum products is tightening supply conditions and increasing the risk of a further deterioration in the economic outlook in countries that are important trading partners of Slovenia. Inadequate regulation of the prices of petroleum products and cost pressures due to high inflation in 2022 and expected inflation in 2023 require adjustments to business models and cost optimisation. 2022 was characterised by extreme price fluctuations for petroleum products and other energy products, as well as government regulation. As one of the key drivers of the energy transition in the region, the Petrol Group faces a shortage of funds for investments in the green transition, mainly due to the impact of regulation.
Based on economic forecasts, the Petrol Group plans to increase its sales of petroleum products in 2023 compared to the 2022 plan. In the area of merchandise and services, the Petrol Group will continue to ensure fast and convenient purchases for the consumer and an excellent customer experience. In electricity and natural gas sales, Petrol will maintain its market share in Slovenia. In 2023, the Petrol Group will increase the number of proprietary and non-proprietary EV charging stations. It will actively promote energy independence, efficiency and renewable energy in Slovenia and other Central European countries. The share of green energy generation from successful renewable energy projects in the region will increase. In the area of energy solutions, most activities will focus on the industrial and household segments. We will continue to focus on cost-efficiency. Through process optimisation and other measures, we aim to achieve a cost-to-adjusted gross profit ratio of 77 percent by 2023.
The Petrol Group recognises that despite careful preparation, informed business decisions, quick responses to changes and an efficient risk-management system external factors may arise in the business environment that are beyond our direct control. As a result, there is a risk that annual targets may not be met. We have already seen this with the COVID-19 pandemic, and even more so with the energy crisis in 2022.
For 2023, the Petrol Group projects sales revenues of EUR 10.2 billion and an adjusted gross profit of EUR 675.0 million. The Petrol Group will achieve its planned results for 2023 through the sale of 4.0 million tonnes of fuels and petroleum products, merchandise in the amount of EUR 544.8 million, 14.5 TWh of natural gas, 12.9 TWh of electricity (trading and sales to end customers), 154.6 thousand MWh of heat, the production of 188.4 thousand MWh of electricity, and the sale of energy and environmental solutions.
For 2023, the Petrol Group projects EBITDA of EUR 250.4 million and a net debt/EBITDA ratio of 1.7. The latest known energy product price regulations have been taken into account in the preparation of the business plan. Regulation of petroleum product margins continues to have a negative impact on the Petrol Group’s performance.
For 2023, the Petrol Group plans to generate a net profit of EUR 117.1 million.
The Group’s investment policy for 2023 will be focused on expanding the business in the area of renewable electricity production, digitising the supply chain, modernising its points of sale and expanding its operations in the area of energy and environmental solutions. Price regulation remains in place in 2023, and investment volumes have been adjusted accordingly.
In 2023, investments will amount to EUR 75.0 million, one-third of which will be spent on energy transition projects, while the 2023 Strategic Business Plan foresees investments of EUR 135.0 million.
Before the onset of the energy crisis and the resulting price regulation, the Petrol Group was in a very good business and financial shape. In 2022, the negative impact of energy price regulation on the Group’s business resulted in a significantly weaker finish than planned. We expect 2023 to be a challenging year, so we will focus a lot of attention on optimising business processes and, as a result, optimising costs. We will meet the high performance standards recognised by S&P Global Ratings. Despite the difficult business conditions, the Group will continue to pursue its goal of ensuring stable operations, thus delivering a reasonable return for shareholders.
Pursuant to Article 70(5) of the Companies Act (ZGD-1), Petrol d.d., Ljubljana hereby issues its corporate governance statement.
the framework of the above Code. In compliance with the recommendations of the applicable Code, the Supervisory Board and the Management Board drew up and, at the Supervisory Board meeting of 23 November 2010, adopted the Corporate Governance Policy of Petrol d.d., Ljubljana, which was published via the Ljubljana Stock Exchange SEOnet information system on 28 December 2010. The policy has since been updated several times at meetings of the Company’s Supervisory Board and published on SEOnet. 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. with both its guiding principles and recommendations. Any deviations or partial deviations from the Code are listed and explained below:
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 Board 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 fraud. 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.
The three defence lines of control: (1) operational management or risk owners, (2) control functions, including compliance, as risk managers, (3) internal audit tasked with providing independent assurance.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Petrol, therefore, keeps and further improves:
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 2022, the current internal control system was efficient and provided an appropriate environment for the achievement of the business objectives of Petrol d.d., Ljubljana and of the Petrol Group, as well as 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 only issued 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.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
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 2022):
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 - FIDUCIARNI RAČU | 42 Avenue J. F. Kennedy, L-1855, Luxemburg | 6,467,732 | 15.50% |
| SDH, D.D. | Mala ulica 5, 1000 Ljubljana | 5,299,220 | 12.70% |
| REPUBLIKA SLOVENIJA | Gregorčičeva ulica 20, 1000 Ljubljana | 4,513,980 | 10.82% |
| KAPITALSKA DRUŽBA, D.D. | Dunajska cesta 119, 1000 Ljubljana | 3,452,780 | 8.27% |
| OTP BANKA D.D. - CLIENT ACCOUNT - FIDUCI | Domovinskog rata 61, 21000 Split, Croatia | 2,849,061 | 6.83% |
| ERSTE GROUP BANK AG - PBZ CROATIA OSIGUR | Am Belvedere 1100 Wien, Austria | 1,667,370 | 4.00% |
| VIZIJA HOLDING, D.O.O. | Dunajska cesta 156, 1000 Ljubljana | 1,482,780 | 3.55% |
| VIZIJA HOLDING ENA, D.O.O. | Dunajska cesta 156, 1000 Ljubljana | 1,350,700 | 3.24% |
| PERSPEKTIVA FT D.O.O. | Dunajska cesta 156, 1000 Ljubljana | 725,240 | 1.74% |
| PETROL D.D., LJUBLJANA | Dunajska cesta 50, 1000 Ljubljana | 494,060 | 1.18% |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Management Board, present the vision of the Company’s development at the 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 no 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, at its own discretion. The Supervisory Board is required to immediately notify the Management Board if it is 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 no 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 Diversity Policy, 13 December 2018).
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 to 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 and 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:
• to ensure at least 30 percent representation of the underrepresented gender among the shareholder representatives on the Supervisory Board by 2022.
• efforts by all stakeholders in the HR processes to appoint the Management Board members in such a way as to achieve the greatest possible gender balance by creating an appropriate set of candidates that ensures the appropriate representation of the underrepresented gender.
• seeking not to change the overall membership of the Supervisory Board, with the aim of one-third continuity.
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, the 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. The Management Board comprises a president and four male members of the Management Board. The Supervisory Board comprises one female member and eight male members. In the energy sector, women’s representation in management positions is found to be low. In 2019, the Supervisory Board joined the initiative to achieve voluntary 40/33 gender diversity by 2026 as proposed by the Slovenian Directors’ Association. Among other partners, the initiative was supported by the Slovenian Sovereign Holding and the Ljubljana Stock Exchange. In 2022, a female representative was appointed as an external member of the Audit Committee.
At its 34th General Meeting, held on 21 April 2022, the General Meeting by a resolution under item 7, authorised the Management Board to purchase treasury shares for a period of 12 months from the date of the entry into force of the resolution. Under this authorisation, a maximum number of own shares may be acquired so that the total percentage of the shares acquired based on this authorisation does not exceed, together with other own shares already held by the Company, two percent of the Company’s share capital. The Company may acquire its own shares through transactions entered into on a regulated securities market, at the then prevailing market price. The Company may also acquire its own shares outside a regulated securities market. When acquiring shares on a regulated or unregulated securities market, the purchase price of the shares may not be less than 50 percent of the book value of the share, calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts. The purchase price of the shares may also not exceed 11 times the earnings per share (EPS) calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts. Pursuant to Article 381(3) and (4) of the Companies Act (ZGD-1), the Company may reduce the share capital (once or successively) by withdrawing own shares acquired pursuant to this authorisation (but not own shares acquired earlier) in a simplified procedure and against other profit reserves with the consent of the Supervisory Board. The Company may only use its own shares acquired pursuant to this authorisation in accordance with this resolution.
The Company is not aware of any such agreements.
supervisory bodies or employees that foresee compensation should such persons resign, be discharged without cause or have their employment relationship terminated due to a bid as defined in the Takeovers Act.
No early termination benefits are payable to a member of the Management Board in the cases provided for in the Companies Act. No severance payment is due to a member of the Management Board in the event of the regular termination of their term of office. Furthermore, a member of the Management Board is not entitled to severance pay if they terminate the employment agreement or if the employment contract is terminated early on the grounds of serious misconduct, incapacity or a vote of no confidence by the General Meeting (unless the vote of no confidence was passed for manifestly unfounded reasons).
Petrol d.d., Ljubljana has no subsidiaries falling within the scope of indent 4 of Article 70(3) of the Companies Act (ZGD-1).
The Petrol Group’s activities include an activity listed in Article 70 b of the Companies Act, specifically the commercial exploitation of mineral resources (geothermal source), but the payments to the Republic of Slovenia did not exceed the amount laid down in Paragraph 2 of Article 70 b in 2022.
As provided by the applicable legislation, specifically the Companies Act, the General Meeting is a body through which shareholders exercise their rights in respect of matters concerning the Company. The convening of General Meetings is governed by the Articles of Association, in conformity with the applicable legislation. The General Meeting is convened at the request of the Management Board, at the request of the Supervisory Board, or at the request of the 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 behind the agenda item. Notwithstanding, a 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 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 34th General Meeting held on 21 April 2022 (notice of the resolutions of the General Meeting is available at 34th Annual 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 2021 financial year, as well as with the report on the remuneration of the members of the management and supervisory bodies. They discussed and adopted a resolution on the allocation of the accumulated profit and the granting of a discharge from liability to the Management Board and Supervisory Board for the year 2021. The General Meeting considered the Remuneration Policy of the Management and Supervisory Bodies of Petrol d.d., Ljubljana, which has not yet been approved. Pursuant to Article 294a(3) of the ZGD-1, the vote of the shareholders at the General Meeting on the Remuneration Policy is advisory and will be resubmitted for vote and approval at the next General Meeting.
Company’s/Group’s operations and credit rating in 2022, as well as with an assessment of the impact of the regulation on the Company’s/Group’s operations in 2023. The shareholders were also presented with the report of the Supervisory Board and the Management Board of the Company on the operations of the subsidiary Geoplin d.o.o. Ljubljana in 2022 and with the report of the Supervisory Board and the Management Board of the Company on the impact of the regulation of the prices of petroleum products, gas and electricity on the Company’s/Group’s operations in 2022 and an assessment of the impact of the regulation of the prices of petroleum products, gas and electricity on the Company’s/Group’s operations in 2023.
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 28 August 2020, the Management Board functions with five members. The Management Board discussed matters falling within its competence at 90 meetings in 2022. Virtually 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 with 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 only represent the Company 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:
a single transaction, in particular insofar as they represent a single investment or are part of a single investment programme;
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 2022 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.
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.
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.
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.
• sales to business customers and the public sector (B2B and B2C)
• digital channels
• marketing and user experience management
• fuels and petroleum products
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 agreement with the auditor of the annual report and the consolidated annual report and in relation to the members of the Supervisory Board.
| Janez Žlak | President of the Supervisory Board, shareholder representative | Project Manager at HSE, d.o.o., Ljubljana. 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 since the constituent meeting of 22 April 2021. |
|---|---|---|
| Borut Vrviščar | Deputy President of the Supervisory Board, shareholder representative | General Manager of Kuehne+Nagel, AG, Schindellegi, CH. He was appointed for a four-year term of office as a Member of the Supervisory Board beginning on 11 April 2021 at the 32nd General Meeting of 28 December 2020. He has been serving as Deputy President of the Supervisory Board since the constituent meeting of 22 April 2021. |
| Mladen Kaliterna | Member of the Supervisory Board, shareholder representative | 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. From 11 April to 21 April 2021, he served as the President of the Supervisory Board. He was reappointed at the 32nd General Meeting of 28 December 2020, with his four-year term of office beginning on 16 July 2021. |
| Alenka Urnaut | Member of the Supervisory Board, shareholder representative | 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 |
Mário Selecký, Member of the Supervisory Board, shareholder representative
Representative of J&T Bank, a.s. He was appointed for a four-year term of office beginning on 11 April 2021 at the 32nd General Meeting of 28 December 2020.
Aleksander Zupančič, Member of the Supervisory Board, shareholder representative
He was appointed for a four-year term of office beginning on 11 April 2021 at the 32nd General Meeting of 28 December 2020.
Alen Mihelčič, Member of the Supervisory Board, employee representative
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.
Robert Ravnikar, Member of the Supervisory Board, employee representative
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.
Marko Šavli, Member of the Supervisory Board, employee representative
Petrol d.d., Ljubljana, assistant for health and safety at work and fire safety: When Member of the Supervisory Board Zoran Gračner resigned, Mr Šavli was appointed as a substitute member of the Supervisory Board (employee representative) at the 44th Workers’ Council meeting of 4 December 2020, in accordance with provision 10.13 of the Company’s Articles of Association. 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.
was composed of the following members in 2022:
Until 21 October 2022:
From 22 October 2022 onwards:
was composed of the following members in 2022:
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 was submitted to the General Meeting for approval at the Company’s 34th General Meeting. The nominal amounts received in the 2022 financial year by each Management Board member and each Supervisory Board member are indicated in the financial part of this report (chapter 8 Related party transactions) and in more detail in the Report on the Remuneration of the Management and Supervisory Bodies of Petrol d.d., Ljubljana in the 2022 financial year, 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:
reimbursement of travel expenses, and the reimbursement of expenses for meals during work;
A member of the Management Board is also entitled to severance pay under the conditions determined by law, the remuneration policy and the employment agreement.
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. Pursuant to Article 294a(3) of the ZGD-1, the Remuneration Policy will be resubmitted to the General Meeting for approval at its next meeting.
| 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 the supervisory bodies of non-related companies |
|---|---|---|---|---|---|---|---|---|---|---|
| Nada Drobne Popović | President of the Management Board | Procurement and trade of petroleum products and energy products; Procurement of |
| Matija Bitenc | Member of the Management Board | Finances; Accounting; Back office; Informatics; Controlling; Management of development needs and project; Risk management; Business intelligence | 11 March 2020 | 10 March 2025 | Male | Slovene | 1980 | Master of Economics | Competencies in the area of corporate |
|---|---|---|---|---|---|---|---|---|---|
| merchandise and products for internal supply; Human resources, processes and general administration; Cabinet of the Management Board; Strategy; Sustainable development, quality and safety; Legal affairs; Corporate security and control of operations; Internal audit | 11 February 2020 | 25 October 2019 (ad interim) | Female | Slovene | 1975 | Master of Science, School of Government and European Studies, Brdo near Kranj | All-round management competencies, including management of equity investments |
| Name | Position | Responsibilities | Term Start | Term End | Gender | Nationality | Year of Birth | Education | Competencies |
|---|---|---|---|---|---|---|---|---|---|
| Jože Bajuk | Member of the Management Board | Energy and solutions; Logistics; Operational Management | 11 March 2020 | 10 March 2025 | Male | Slovene | 1974 | Master of Sociology, Bachelor of Law | Competencies in the area of law, corporate governance, energy (especially renewables), electricity trading and ESCO projects |
| Jože Smolič | Member of the Management Board | Sales to end-customers (B2C); Sales to business customers and the public sector (B2B and B2C); Digital channels; Marketing and user experience management; Fuels and petroleum products | 28 August 2020 | 27 August 2025 | Male | Slovene | 1967 | Master of Entrepreneurial Management | Competencies in the area of |
| Name and Surname | Function (president, deputy, member of the Supervisory Board) | First appointment to the office | Termination of office |
|---|---|---|---|
| Zoran Gračner | Member of the Management Board and Worker Director | 11 December 2020 | 10 December 2025 |
Worker Director, is not responsible for any area of work. Co-decides on issues related to the formulation of personnel and social policy.
Male Slovene 1970
Master of Business Administration, Bachelor of Mechanical Engineering
| Shareholder/Employee Representative | Attendance at Supervisory Board meetings according to the total number of meetings | Gender | Nationality | Year of birth |
|---|---|---|---|---|
| Janez Žlak | All 17 meetings of the Supervisory Board in 2022 | Male | Slovene | 1965 |
| Borut Vrviščar | 15 out of 17 meetings of the Supervisory Board in 2022 | Male | Slovene | 1969 |
| Aleksander Zupančič | All 17 meetings of the Supervisory Board in 2022 | Male | Slovene | 1979 |
| Mladen Kaliterna | All 17 meetings of the Supervisory Board in 2022 |
| Name | Gender | Nationality | Year of Birth | Role | Start Date | End Date | Attendance |
|---|---|---|---|---|---|---|---|
| Alenka Urnaut | Female | Slovene | 1975 | Member of the Supervisory Board in 2022 | 28 December 2020 | 10 April 2025 | 16 out of 17 meetings of the Supervisory Board in 2022 |
| Mário Selecký | Male | Slovak | 1975 | Member of the Supervisory Board in 2022 | 28 December 2020 | 10 April 2025 | 14 out of 17 meetings of the Supervisory Board in 2022 |
| Alen Mihelčič | Male | Slovene | 1975 | Member of the Supervisory Board in 2022 | 27 January 2017 | 22 February 2025 | All 17 meetings of the Supervisory Board in 2022 |
| Robert Ravnikar | Male | Slovene | 1979 | Member of the Supervisory Board in 2022 | 27 January 2017 | 22 February 2025 | All 17 meetings of the Supervisory Board in 2022 |
| Marko Šavli | Male | Slovene | 1979 | Member of the Supervisory Board in 2022 | 11 December 2020 | 22 February |
| Name and Surname | Education | 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 the 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 |
|---|---|---|---|---|---|---|---|---|
| Janez Žlak | PhD | General management and leadership, government investment management | YES | NO | / | Human Resources and Management Board Evaluation Committee | Member of the committee in 2022 |
| Borut Vrviščar | Bachelor of Electronics Engineering | Leadership and strategic management | Top management | Logistics, organisation and management | YES | NO | / | Human Resources and Management | Board Evaluation Committee | President of the committee in 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Aleksander Zupančič | Bachelor of Law | Organisation and management | law | psychotherapy and coaching | YES | NO | / | Audit Committee | Member of the committee in 2022 | |
| Mladen Kaliterna | Master of Management and Organisation | Investment and management of Group companies | YES | NO | / | Audit Committee | Member of the committee in 2022 | |||
| Alenka Urnaut | MBA, University graduate in economic engineering | Real estate appraisal | YES | NO | / | Audit Committee |
| Name | Position | Expertise | Attendance | Committee |
|---|---|---|---|---|
| Mário Selecký | Master of Law | Banking, organisation and management | YES | Human Resources and Management Board Evaluation Committee |
| Alen Mihelčič | Economist | Commercial operations | YES | Human Resources and Management Board Evaluation Committee |
| Robert Ravnikar | Bachelor of Economics | Sales | YES | Audit Committee |
| Marko Šavli | Utility Engineer | Safety, compliance | YES | Human Resources and Management Board Evaluation 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, 6 April 2023
| 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 | 7 out of 9 meetings in 2022 | Male | Slovene | Master of Business Administration | 1970 | Court expert witness for economics, specifically business valuation and accounting, certified appraiser | / |
| Sabina Merhar | Audit Committee | 2 out of 9 meetings in 2022 | Female | Slovene | Master of Entrepreneurial Management | 1975 | Competencies in financial and accounting management, auditing | / |
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.
The Petrol Group is a business concern consisting of the parent company Petrol d.d., Ljubljana and its subsidiaries, jointly controlled entities and associates located in the countries of Central and South-Eastern Europe. The activities of the Group companies are dominated by the sale of fuels, derivatives, merchandise and services. Petrol’s core development activity is the development and upgrading of energy solutions and the generation of electricity from renewable energy sources (see Business by product group for more information on sales of individual products). The operations of the parent company and some of its subsidiaries encompass multiple areas, from sales of fuels and petroleum products, merchandise and services to the sale of energy and solutions, 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 more in The Petrol Group in its region).
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 2020 that was prepared in accordance with GRI (Global Reporting Initiative) standards. The new Sustainability Report 2022 is expected to be published in June 2023.
The situation in the area of transport and the resulting sales of petroleum products and other energy products together with the overall economic situation in the energy markets where the Group operates are the main factors affecting its operations. The Petrol Group’s operations in 2022 took place in the highly complex environment of a persistent energy crisis at the EU level and state interventions to mitigate its impact on both the population and economic operators. High energy prices and rising inflation have led to the government regulation of fuel, electricity and natural gas prices in the markets where the Group operates (in Slovenia alone, at least 37 regulatory acts were adopted in 2022), which has had a significant impact on the Group’s operations. Petrol d.d., Ljubljana, has transparently informed the public about the impact of the energy crisis and the regulation of energy prices on the Group’s operations on the Ljubljana Stock Exchange’s SEOnet website and on its own website (available at 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 the Petrol Group. 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 for ensuring 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.
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 holds valid environmental permits for all establishments operating under the SEVESO Directive and for installations operating under the Industrial Emissions Directive (IED). It also consistently implements all the provisions defined in the 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. We have set ourselves the goal of using natural resources efficiently and switching to renewable energy sources. Petrol d.d., Ljubljana 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.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Due to the strategic importance of products related to oil and merchandise sales and being aware of their vulnerability, ensuring the safety, security and continuity of business is one of the key principles of the Petrol Group’s business. This principle is implemented by 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. For each process, an annual activity report is drawn up, including environmental content (monitoring results, inspection results, the execution of environmental projects, and 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 quality and environmental management 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.
The preparation of a strategy for the management of environmental and climate risks with integration into the Petrol Group’s integrated risk management is underway, in line with the latest TCFD (Climate-related Financial Disclosures) guidelines. 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:
We are designing a new model for climate change risk management in the Petrol Group. The model will enable an understanding of vulnerability to current and future climate change, identifying, assessing and monitoring business risks and opportunities, and taking action to manage these risks and exploit opportunities. Climate change risks will subsequently be integrated into the overall risk management system of the Petrol Group.
The time of energy price increases has significantly increased the risk in the supply of energy products and energy for own use. In this area, we have implemented a number of timely and systematic measures to manage energy and energy product prices and to save energy and energy products. Special attention has also been paid to developing measures for the reliable supply of critical infrastructure with energy and energy products for own use.
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:
by ensuring safe and quality products and services. 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 chemical handling, the transport of hazardous goods, fire safety, anti-explosion protection, environmental protection, the SEVESO plant safety management system, information security, etc.
Petrol was the first energy company in Slovenia to commit itself to sustainable development. We perceive our role in fulfilling this strategic commitment as twofold. On the one hand, we pursue our core business with a high level of responsibility towards the natural and social environment and on the other hand, we are actively promoting the sustainable transformation of the wider society through our business programmes and products. In addition 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; a new report for 2022 is expected to be published in June 2023). The content of the sustainability report is determined on the basis of three criteria:
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.
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 the 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.
At Petrol, we are aware of the importance of social dialogue and cooperation with social partners. When adopting regulations governing the rights, obligations and responsibilities of employees, we organise joint consultations and co-decision-making with the Workers’ Council or the trade union, in accordance with the applicable legislation and other general regulations. Employees are united in the Trade Union of the Petrol Group and the Service Station Workers’ Union. 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.
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 2022 was still affected by 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.
Until March 2022, many employees continued to work from home, which has had an impact on work processes, management and communication across organisational units.
As of December 2020, employees of Petrol d.d., Ljubljana and 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, and we continued this support in 2022.
No major risks are identified in terms of Petrol Group’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 measurement of the quality of internal services and, in 2022, the measurement of organisational culture. 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. We have introduced two management training programmes, Strategy in Action, which supports the Company’s strategic initiatives and the professional development of managers, and a skills workshop programme for operational managers.
In 2022, with the merger of Crodux derivati dva d.o.o. into Petrol d.o.o., we introduced a functional organisation in the Croatian market, which will be implemented by the end of the strategic period in other subsidiaries in Slovenia and in companies in the markets of Bosnia and Herzegovina, Serbia and Montenegro. In this context, we are pursuing our strategy of building a common organisational culture and cooperation within the Petrol Group through various measures.
damage and violent illegal acts. The management of the risk of criminal offences/fraud requires constant supervision and control. 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 concerning 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 drawn 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. Risks related to 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.
To improve the health and safety of all employees, we ensure that all workplaces have adequate protective equipment and preventive measures in place. The risk assessment remains 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.eu, as we want to raise awareness that the health and safety of our customers are of utmost importance to us.
At Petrol, we measure progress, build relationships, ensure proper communication and provide for the management of employees in Slovenia through measuring the 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 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 our 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 forty-two 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. The added value per employee in the Petrol Group is presented in the chapter Business highlights of 2022 (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.
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 Irregularities or the 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 and with executive and other staff in various 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 involving a suspected criminal offence, the Company reacts in accordance with the legislative possibilities regarding the reporting of irregularities and compensation for damage.
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 or taxonomy-aligned economic activities for the 2022 financial year. Reporting for the 2022 financial year covers the currently defined environmental objectives of climate change mitigation and adaptation for the Petrol Group in Slovenia and Croatia.
For 2021, the controlling company Petrol d.d., Ljubljana was included in the reporting under the Taxonomy Regulation. In line with the first reporting obligations in 2021, taxonomy-eligible activities have been covered. Activities have been reported aggregated by NACE macro sectors (the classification of economic activities).
For 2022, in addition to eligibility, reporting also includes an assessment of the alignment of the activities with the EU taxonomy. In addition to Petrol d.d., Ljubljana, the analysis for 2022 includes direct subsidiaries in Slovenia and Croatia that are also included in the Petrol Group’s consolidated financial statements and that also reported operating activity (sales revenues or capital expenditure (CapEx)) in 2022. In Slovenia, these are Petrol Skladiščenje d.o.o., Petrol GEO d.o.o., Ekoen d.o.o., Ekoen S d.o.o., Mbills d.o.o., Geoplin d.o.o. Ljubljana, Atet d.o.o., E 3, d.o.o., and in Croatia Petrol d.o.o., Vjetroelektrane Glunča d.o.o, Vjetroelektrana Ljubač d.o.o and Zagorski metalac d.o.o. The group data is aggregated at the level of the individual taxonomy-defined activities.
The following taxonomy-eligible activities of the Petrol Group in Slovenia and Croatia have been identified within the five NACE macro sectors:
| 4.1 | Electricity generation using solar photovoltaic technology |
|---|---|
| 4.3 | Electricity generation from wind power |
| 4.8 | Electricity generation from bioenergy |
| 4.9 | Transmission and distribution of electricity |
| 4.14 | Transmission and distribution networks for renewable and low-carbon gases |
| 4.15 | District heating/cooling distribution |
| 4.16 | Installation and operation of electric heat pumps |
| 4.20 | Cogeneration of heat/cool and power from bioenergy |
| 4.24 | Production of heat/cool from bioenergy |
| 4.30 | High-efficiency co-generation of heat/cool and power from gaseous fossil fuels |
| 4.31 | Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system |
| 5.1 | Construction, extension and operation of water collection, treatment and supply systems |
|---|---|
| 5.2 | Renewal of water collection, treatment and supply systems |
| 5.3 | Construction, extension and operation of wastewater collection and treatment |
| 6.5 | Transport by motorbikes, passenger cars and light commercial vehicles |
|---|---|
| 6.15 | Infrastructure enabling low-carbon road transport and public transport |
| 7.3 | Installation, maintenance and repair of energy efficiency equipment |
|---|---|
All taxonomy-eligible activities are included in the climate change mitigation objective and are also aligned with the taxonomy (environmentally sustainable economic activities) after a review of the technical criteria.
The indicators are calculated in accordance with the definitions in the annex to Regulation 2020/852 – Key performance indicators for non-financial undertakings. Data at the company level is extracted from the financial statements, while data by activity is extracted from the information system.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Public Javno
| Economic activities | Codes | Absolute turnover in EUR | Taxonomy-aligned proportion of turnover, year 2022 (%) | Category enabling (E) or transitional (T) activity |
|---|---|---|---|---|
| A.) TAXONOMY - ELIGIBLE ACTIVITIES | ||||
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | ||||
| 7.3 Installation, maintenance and repair of energy efficiency equipment | F43, M71, S95.22, C33.12 | 26,088,879 | 0.28 | 31.30 E |
| 4.14 Transmission and distribution networks for renewable and low-carbon gases | D35.22, F42.21, H49.50 | 12,833,989 | 0.14 | 15.40 |
| 4.15 District heating/cooling distribution | D35.30 | 9,895,761 | 0.11 | 11.87 |
| 4.3 Electricity generation from wind power | D35.11, F42.22 | 8,906,436 | 0.10 | 10.68 |
| 4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel | D35.11, D35.30 | 7,358,141 | 0.08 | 8.83 T |
| 4.9 Transmission and distribution of electricity | D35.12, D35.13 | 3,141,003 | 0.03 | 3.77 E |
| 5.3 Construction, extension and operation of waste water collection and treatment | E37.00, F42.99 | 2,363,709 | 0.03 | 2.84 |
| 5.1 Construction, extension and operation of water collection, treatment and supply systems | E36.00, F42.99 | 2,312,603 | 0.03 | 2.77 |
| 4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system | D35.30 | 1,934,328 | 0.02 | 2.32 T |
| 5.2 Renewal of water collection, treatment and supply systems | E36.00, F42.99 | 1,851,408 | 0.02 | 2.22 |
| 4.20 Cogeneration of heat/cool and power from bioenergy | D35.11, D35.30 | 1,660,685 | 0.02 | 1.99 |
| 8.2 Data-driven solutions for GHG emissions reductions | J61, J62, J63.11 | 1,453,842 | 0.02 | 1.74 E |
| 4.24 Production of heat/cool from bioenergy | D35.30 | 1,145,658 | 0.01 | 1.37 |
| 4.1 Electricity generation using solar photovoltaic technology | D35.11, F42.22 | 1,125,537 | 0.01 | 1.35 |
| 6.15 Infrastructure enabling low-carbon road transport and public transport | F42.11, F71.1 | 736,244 | 0.01 | 0.88 E |
| 6.5 Transport by motorbikes, passenger cars and light commercial vehicles | H49.39, N77.11 | 524,815 | 0.01 | 0.63 T |
| 4.16 Installation and operation of electric heat pumps | F35.30, F43.22 | 12,763 | 0.00 | 0.02 |
| 4.8 Electricity generation from bioenergy | D35.11 | 10,064 | 0.00 | 0.01 |
| Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 83,355,863 | 0.90 | 100.00 | |
| A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | ||||
| Turnover of Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0 | 0.00 |
| Turnover of Taxonomy-non-eligible activities (B) | 9,127,733,363 | 99.10 |
|---|---|---|
| Total (A + B)* | 9,211,089,226 | 100 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Proportion of sales turnover from products or services associated with taxonomy-aligned economic activities – disclosure covering the Petrol Group (Slovenia and Croatia), year 2022, part 2
Taxonomy-aligned activities contributed 0.90 percent of the Petrol Group’s sales turnover from products or services or sales turnover in Slovenia and Croatia in 2022 (EUR 83,355,863 out of a total sales turnover of EUR 9,211,089,226).
Out of a total of 18 different taxonomy-aligned activities, the top six contributed 81.85 percent of the total taxonomy-aligned sales turnover:
The taxonomy-aligned proportion of sales turnover from enabling activities was 37.69 percent.
| Economic activities | Substantial contribution criteria | Climate change mitigation (%) | Minimum safeguards | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems |
|---|---|---|---|---|---|---|---|---|---|
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | 7.3 Installation, maintenance and repair of energy efficiency equipment | 100% | YES | YES | - | YES | - | YES | |
| 4.14 Transmission and distribution networks for renewable and low-carbon gases | 100% | YES | YES | YES | - | YES | YES | ||
| 4.15 District heating/cooling distribution | 100% | YES | YES | YES | - | YES | YES | ||
| 4.3 Electricity generation from wind power | 100% | YES | YES | YES | YES | - | YES | ||
| 4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel | 100% | YES | YES | YES | - | YES | YES |
100% YES YES - YES YES YES YES
100% YES YES YES - YES YES YES
100% YES YES YES - - YES YES
100% YES YES YES - YES YES YES
100% YES YES YES - - YES YES
100% YES YES YES - YES YES YES
100% YES YES - YES - - YES
100% YES YES YES - YES YES YES
100% YES YES - YES - YES YES
100% YES YES YES YES YES YES YES
100% YES YES - YES YES - YES
100% YES YES YES YES YES - YES
100% YES YES YES - YES YES YES
| Economic activities | Codes | Absolute turnover in EUR | Proportion in turnover of Petrol d.d., Ljubljana, in % | Taxonomy-aligned proportion of turnover, year 2022 (%) | Category enabling (E) or transitional (T) activity |
|---|---|---|---|---|---|
| A.) TAXONOMY - ELIGIBLE ACTIVITIES | |||||
| 7.3 Installation, maintenance and repair of energy efficiency equipment | F43, M71, S95.22, C33.12 | 25,669,651 | 0.35 | 37.21 | E |
| 4.14 Transmission and distribution networks for renewable and low-carbon gases | D35.22, F42.21, H49.50 | 12,833,989 | 0.18 | 18.60 | |
| 4.15 District heating/cooling distribution | D35.30 | 8,900,962 | 0.12 | 12.90 | |
| 4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel | D35.11, D35.30 | 4,295,538 | 0.06 | 6.23 | T |
| 4.9 Transmission and distribution of electricity | D35.12, D35.13 | 3,141,003 | 0.04 | 4.55 | E |
| 5.3 Construction, extension and operation of waste water collection and treatment | E37.00, F42.99 | 2,363,709 | 0.03 | 3.43 | |
| 5.1 Construction, extension and operation of water collection, treatment and supply systems | E36.00, F42.99 | 2,312,603 | 0.03 | 3.35 | |
| 5.2 Renewal of water collection, treatment and supply systems | E36.00, F42.99 | 1,851,408 | 0.03 | 2.68 | |
| 4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system | D35.30 | 1,657,045 | 0.02 | 2.40 | T |
| 4.20 Cogeneration of heat/cool and power from bioenergy | D35.11, D35.30 | 1,652,245 | 0.02 | 2.40 | |
| 8.2. Data-driven solutions for GHG emissions reductions | J61, J62, J63.11 | 1,453,842 | 0.02 | 2.11 | E |
| 4.24 Production of heat/cool from bioenergy | D35.30 | 1,120,131 | 0.02 | 1.62 | |
| 4.1 Electricity generation using solar photovoltaic technology | D35.11, F42.22 | 794,998 | 0.01 | 1.15 | |
| 6.15 Infrastructure enabling low-carbon road transport and public transport | F42.11, F71.1 | 646,414 | 0.01 | 0.94 | E |
| 6.5 Transport by motorbikes, passenger cars and light commercial vehicles | H49.39, N77.11 | 278,964 | 0.00 | 0.40 | T |
| 4.8 Electricity generation from bioenergy | D35.11 | 10,064 | 0.00 | 0.01 |
| Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 68,982,565 | 0.94 | 100.00 |
|---|---|---|---|
| Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0 | 0.00 | |
| Total (A.1 + A.2) | 68,982,565 | 0.94 | 100.00 |
| Turnover of Taxonomy-non-eligible activities (B) | 7,246,777,611 | 99.06 |
|---|---|---|
| Total (A + B) | 7,325,325,520 | 100 |
At Petrol d.d., Ljubljana, sales turnover from taxonomy-eligible activities stood at EUR 68,982,565 or 0.94 percent in 2022, accounting for 82.76 percent of taxonomy-aligned sales turnover of the Petrol Group in Slovenia and Croatia and 0.75 percent of total sales turnover of the Petrol Group in Slovenia and Croatia. In 2021, taxonomy-aligned (alignment assessed for the first time in 2022) turnover amounted to EUR 70,401,093 or 1.98 percent of total sales turnover of Petrol d.d., Ljubljana. The low proportion of taxonomy-aligned turnover in 2022 was affected by the situation in the energy market which contributed significantly to an increase in total turnover (EUR 7,325,325,520 in 2022 and EUR 3,486,618,697 in 2021). The taxonomy-aligned sales turnover from enabling activities accounted for 44.81 percent of all taxonomy-aligned sales turnover of Petrol d.d., Ljubljana.
| Substantial contribution criteria | Climate change mitigation (%) | Minimum safeguards | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| A.) TAXONOMY - ELIGIBLE ACTIVITIES | |||||||||||
| 7.3 Installation, maintenance and repair of energy efficiency equipment | 100% | YES | YES | - | YES | - | YES | ||||
| 4.14 Transmission and distribution networks for renewable and low-carbon gases | 100% | YES | YES | YES | - | YES | YES | YES | |||
| 4.15 District heating/cooling distribution | 100% | YES | YES | YES | - | YES | YES | YES | |||
| 4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel | 100% | YES | YES | YES | - | YES | YES | YES | |||
| 4.9 Transmission and distribution of electricity | 100% | YES | YES | - | YES | YES | YES | ||||
| 5.3 Construction, extension and operation of waste water collection and treatment | 100% | YES | YES | YES | - | YES | YES | YES | |||
| 5.1 Construction, extension and operation of water collection, treatment and supply systems | 100% | YES | YES | YES | - | - | YES | YES | |||
| 5.2 Renewal of water collection, treatment and supply systems | 100% | YES | YES | YES | - | - | YES | YES | |||
| 4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating |
| Economic activities | Codes | Absolute CapEx in EUR | Taxonomy-aligned proportion of CapEx, year 2022 (%) | Category enabling (E) or transitional (T) activity |
|---|---|---|---|---|
| A.) TAXONOMY-ELIGIBLE ACTIVITIES | ||||
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | ||||
| 4.1 Electricity generation using solar photovoltaic technology | D35.11, F42.22 | 11,780,356 | 21.11 | 38.97 |
| 7.3 Installation, maintenance and repair of energy efficiency equipment | F43, M71, S95.22, C33.12 | 10,331,729 | 18.51 | 34.17 E |
| 4.20 Cogeneration of heat/cool and power from bioenergy | D35.11, D35.30 | 2,146,368 | 3.85 | 7.10 |
| 4.3 Electricity generation from wind power | D35.11, F42.22 | 1,850,769 | 3.32 | 6.12 |
| 6.15 Infrastructure enabling low-carbon road transport and public transport | F42.11, F71.1 | 1,239,173 | 2.22 | 4.10 E |
| 4.15 District heating/cooling distribution | D35.30 | 1,014,583 | 1.82 | 3.36 |
| 4.9 Transmission and distribution of electricity | D35.12, D35.13 | 992,668 | 1.78 | 3.28 E |
| 6.5 Transport by motorbikes, passenger cars and light commercial vehicles | H49.39, N77.11 | 202,957 | 0.36 | 0.67 T |
| 4.8 Electricity generation from bioenergy | D35.11 | 198,018 | 0.35 | 0.65 |
| 4.14 Transmission and distribution networks for renewable and low-carbon gases | D35.22, F42.21, H49.50 | 181,261 | 0.32 | 0.60 |
| 5.1 Construction, extension and operation of water collection, treatment and supply systems | E36.00, F42.99 | 160,821 | 0.29 | 0.53 |
| 4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel | D35.11, D35.30 | 49,164 | 0.09 | 0.16 T |
| 8.2. Data-driven solutions for GHG emissions reductions | J61, J62, J63.11 | 42,297 | 0.08 | 0.14 E |
| 5.3 Construction, extension and operation of waste water collection and treatment | E37.00, F42.99 | 14,410 | 0.03 | 0.05 |
| 4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system | D35.30 | 13,758 | 0.02 | 0.05 T |
| 7.6 Installation, maintenance and repair of renewable energy technologies | F42, F43, M71 | 13,758 | 0.02 | 0.05 E |
| CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 30,232,090 | 54.17 | 100.00 | |
| A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | ||||
| CapEx of Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0 | 0.00 | ||
| Total (A.1 + A.2) | 30,232,090 | 54.17 | 100.00 | |
| B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES | ||||
| CapEx of Taxonomy-non-eligible activities (B) |
In the calculation of the indicators related to capital expenditure, the net amount of capital expenditure of the Petrol Group in Slovenia and Croatia is added to the subsidies received for energy-efficient renovation projects, which is taken into account in both the denominator and in the numerator of activity 7.3 Installation, maintenance and repair of energy efficiency equipment. Petrol d.d., Ljubljana’s capital expenditure for M&A projects amounting to EUR 2,499,482 are also taken into account and classified accordingly.
In 2022, the Petrol Group’s capital expenditure in Slovenia and Croatia amounted to EUR 55,809,556, of which 54.17 percent (EUR 30,232,090) was capital expenditure for taxonomy-aligned activities.
Of the 16 identified taxonomy-aligned activities, the first five represent 90.24 percent of the total capital expenditure of the Petrol Group in Slovenia and Croatia in 2022 for environmentally sustainable activities (aligned with taxonomy), namely:
| Substantital contribution criteria | Climate change mitigation (%) | Minimum safeguards | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems |
|---|---|---|---|---|---|---|---|---|
| A.) TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | ||||||||
| 4.1 Electricity generation using solar photovoltaic technology | 100% | YES | YES | - | YES | - | YES | YES |
| 7.3 Installation, maintenance and repair of energy efficiency equipment | 100% | YES | YES | - | - | YES | - | YES |
| 4.20 Cogeneration of heat/cool and power from bioenergy | 100% | YES | YES | YES | - | YES | YES | YES |
| 4.3 Electricity generation from wind power | 100% | YES | YES | YES | YES | - | YES | YES |
| 6.15 Infrastructure enabling low-carbon road transport and public transport | 100% | YES | YES | YES | YES | YES | YES | YES |
| 4.15 District heating/cooling distribution | 100% | YES | YES | YES | - | YES | YES | YES |
100% YES YES - YES YES YES YES
100% YES YES - YES YES - YES
100% YES YES YES - YES YES YES
100% YES YES YES - YES YES YES
100% YES YES YES - - YES YES
100% YES YES YES - YES YES YES
100% YES YES - YES - - YES
100% YES YES YES - YES YES YES
100% YES YES YES - YES YES YES
100% YES YES - - - - YES
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Javno
4.20 Cogeneration of heat/cool and power from bioenergy (wood biomass);
6.12 percent activity 4.3 Electricity generation from wind power;
4.10 percent activity 6.15 Infrastructure enabling low-carbon road transport and public transport (e-charging infrastructure in Slovenia and Croatia).
The taxonomy-aligned proportion of the capital expenditure for enabling activities was 41.74 percent.
| Economic activities Codes | Absolute CapEx in EUR | Proportion in CapEx of Petrol d.d., Ljubljana, in % | Taxonomy-aligned proportion of CapEx, year 2022 (%) | Category enabling (E) or transitional (T) activity |
|---|---|---|---|---|
| A.) TAXONOMY-ELIGIBLE ACTIVITIES | ||||
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | ||||
| 7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 | 10,033,039 | 25.28 | 58.57 | E |
| 4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 | 2,126,421 | 5.36 | 12.41 | |
| 4.15 District heating/cooling distribution D35.30 | 994,635 | 2.51 | 5.81 | |
| 4.9 Transmission and distribution of electricity D35.12, D35.13 | 887,865 | 2.24 | 5.18 | E |
| 4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50 | 871,987 | 2.20 | 5.09 | |
| 6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 | 735,261 | 1.85 | 4.29 | E |
| 4.3 Electricity generation from wind power D35.11, F42.22 | 680,882 | 1.72 | 3.97 | |
| 4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22 | 369,997 | 0.93 | 2.16 | |
| 4.8 Electricity generation from bioenergy D35.11 | 198,018 | 0.50 | 1.16 | |
| 5.1 Construction, extension and operation of water collection, treatment and supply systems E36.00, F42.99 | 160,821 | 0.41 | 0.94 | |
| 8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11 | 42,297 | 0.11 | 0.25 | E |
| 5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99 | 14,410 | 0.04 | 0.08 | |
| 7.6 Installation, maintenance and repair of renewable energy technologies F42, F43, M71 | 13,758 | 0.03 | 0.08 | E |
| CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 17,129,389 | 43.16 | 100.00 | |
| A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) |
At Petrol d.d., Ljubljana, capital expenditures for taxonomy-aligned activities stood at EUR 17,129,389 or 43.16 percent of total capital expenditures of the Company in (a total of EUR 39,690,597 of total capital expenditures, of which M&A projects amounted to EUR 2,499,482).
In 2021, the reported percentage of capital expenditures for in taxonomy-aligned activities (alignment assessed for the first time in 2022) of Petrol d.d., Ljubljana, amounted to 57.30 percent of total capital expenditures (a total of EUR 25,665,491 of total capital expenditures, excluding M&A projects). The share of taxonomy-aligned capital expenditures from enabling activities accounted for 68.37 percent.
The Petrol Group in Slovenia and Croatia has no significant operating expenses (OpEx) from products or services associated with taxonomy-eligible or taxonomy-aligned economic activities.
Sustainable economic activities and sustainable investments at Petrol Group follow the strategic objectives of the Energy Transition and Green Future 2021-2025, with a focus on improving energy efficiency, investing in production, developing sustainable mobility and smart energy management (see Section 14.3 Energy and Solutions for more details).
| Substantial contribution criteria | Climate change mitigation (%) | Minimum safeguards | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | ||
|---|---|---|---|---|---|---|---|---|---|---|
| A.) TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | ||||||||||
| 7.3 Installation, maintenance and repair of energy efficiency equipment | 100% | YES | YES | - | YES | - | YES | |||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 100% | YES | YES | YES | - | YES | YES | YES | ||
| 4.15 District heating/cooling distribution | 100% | YES | YES | YES | - | YES | YES | YES | ||
| 4.9 Transmission and distribution of electricity | 100% | YES | YES | - | YES | YES | YES | |||
| 4.14 Transmission and distribution networks for renewable and low-carbon gases | 100% | YES | YES | YES | - | YES | YES | YES | ||
| 6.15 Infrastructure enabling low-carbon road transport and public transport | 100% | YES | YES | YES | YES | YES | YES | |||
| 4.3 Electricity generation from wind power | 100% | YES | YES | YES | YES | - | YES | |||
| 4.1 Electricity generation using solar photovoltaic technology | 100% | YES | YES | - | YES | - | YES | |||
| 4.8 Electricity generation from bioenergy | 100% | YES | YES | YES | - | YES | YES | YES | ||
| 5.1 Construction, extension and operation of water collection, treatment and supply |
| 100% | YES | YES | - | YES | - | - | YES |
|---|---|---|---|---|---|---|---|
| 100% | YES | YES | YES | - | YES | YES | YES |
|---|---|---|---|---|---|---|---|
| 100% | YES | YES | - | - | - | - | YES |
|---|---|---|---|---|---|---|---|
The year 2022 began with an ongoing COVID-19 epidemic and stable economic growth, but also with high energy product prices fuelled by the war in Ukraine. The high prices of energy products and rising inflation led to fuel price regulation in the markets where we operate. Fuel price regulation was followed by natural gas and electricity price regulation, all of which have an impact on Petrol’s operations.
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 often interdependent factors, in particular changes in energy product prices and the US dollar exchange rate, which are a reflection of the global economic trends. In addition, operations in the Petrol Group’s markets are influenced to a significant 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. Another factor affecting business is the measures taken by countries to contain the pandemic, as shown when it first emerged.
In its World Economic Outlook, published in early October 2021, the IMF expected the economy to recover. With the start of the Russian invasion of Ukraine at the end of February 2022, the outlook has deteriorated significantly. In the autumn of 2021, when the 2022 business plan was being prepared, the IMF’s October forecast for 2022 was 4.6 percent GDP growth for Slovenia and 5.8 percent GDP growth for Croatia. In its Autumn Economic Outlook (2021) for Slovenia, the UMAR expected a GDP growth of 4.7 percent in 2022. Economic growth was expected to be mainly driven by domestic consumption.
In 2022, Slovenia’s GDP growth stood at 5.4 percent and the inflation rate averaged 8.8 percent. The annual inflation rate in December 2022 was 10.3 percent. According to Hrvatska narodna banka, the annual GDP growth rate in Croatia stood at 6.3 percent and inflation at 10.6 percent in December 2022.
Source: International Monetary Fund, IMAD
The Petrol Group strictly follows government instructions in preparing and implementing measures in all its markets. We have followed all the instructions regarding the implementation of measures to limit the spread of SARS-CoV-2 infection. For example, until 20 February 2022, access to the sales premises of service stations in Slovenia was only allowed with a valid RVT.
Public
Javno
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
certificate, but this condition has been abolished as of 21 February 2022. We also comply with all the regulations on the pricing of petroleum products and other energy products in all the markets in which we operate.
Oil and petroleum product prices have been increasing in value since the beginning of 2022. Following the Russian attack on Ukraine at the end of February 2022, we have seen huge price hikes for both oil and, by extension, all petroleum products. The price peaked on 8 March 2022 at USD 137.6 per gallon, up 74 percent since the beginning of the year. After the initial shock at the beginning of April, growth moderated, but in mid-May, prices started to rise again, reaching similar peaks in mid-June as in March. Prices then fell to the levels at the start of the war in Ukraine. At the beginning of November, prices had fallen to around USD 80 per barrel, i.e. to early 2022 prices.
The average price for a barrel of Brent Dated North Sea crude oil stood at USD 101.3 per barrel in 2022 and was up 43 percent year-on-year while the average price in euros was up 60 percent. Brent crude oil reached its highest value in the reviewed period on 8 March 2022, namely USD 137.6 per barrel, and the lowest value on 8 December 2022 of USD 76.4 per barrel.
The prices of petrol and middle distillates mostly followed the same trends as crude oil prices. The increase in the price of petrol was similar to that of crude oil, but lower than that of diesel, heating oil and kerosene. The price of diesel peaked on 21 June 2022 at USD 1,409.3 per metric tonne, up 104 percent compared to the beginning of 2022. As with crude oil, this was followed by a fall in prices of petroleum products to below USD 1,000 per metric tonne.
At the beginning of August, diesel, heating oil and kerosene prices started to rise again, while petrol prices remained at the same levels or started to fall. The difference between diesel and petrol rose to USD 300 per metric tonne at the end of August (the price of diesel was higher than the price of petrol). From September to the end of the year, the difference between the prices of the two fuels fluctuated between USD 100 and 300 per metric tonne, ending the year at a difference of USD 110 per metric tonne. The price of petrol at the end of 2022 was up 8 percent compared to the beginning of 2022, while the price of diesel was up 35 percent since the beginning of the year.
Going forward, the main influences on crude oil prices will be: the situation in Ukraine, the OPEC agreements on the volume of oil to be produced, and the impact of the global recession on lower oil demand.
Source: Petrol, 2022
Source: Petrol, 2022
In Slovenia, the retail prices of petrol NMB-95 and diesel were formed freely according to the market conditions until 14 March 2022, when the Government of the Republic of Slovenia adopted the Decree on setting prices for certain petroleum products, which set the maximum retail price of EUR 1.503 per litre for petrol NMB-95 and EUR 1.541 per litre for diesel. On 31 March 2022, the Decree on setting prices for certain petroleum products also set a maximum wholesale price of EUR 1.483 per litre for NMB-95 petrol and EUR 1.521 per litre for diesel. Both for retail and wholesale prices, the Decree applied up to and including 30 April 2022.
Prices were not regulated until 10 May 2022, until re-regulation with effect from 11 May to 10 August 2022. The Government of the Republic of Slovenia set the maximum retail price of NMB-95 at EUR 1,560 per litre and the maximum wholesale price at EUR 1,540 per litre. For diesel, it regulated the price at EUR 1.668 per litre retail and EUR 1.648 per litre wholesale. The Decree was in force until 20 June 2022.
these service stations and premium fuels are set freely by the market. The Government adopted a Decree and suspended the cap on maximum prices and limited the level of the seller’s margin to EUR 0.0591 per litre for diesel and EUR 0.0607 per litre for NMB-95, and after 17 August 2022 to EUR 0.0983 per litre for diesel and EUR 0.0994 per litre for NMB-95. The Decree shall apply from 21 June 2022 inclusive, for a period of one year. The Decree excludes the biocomponent markup from the formula for calculating the model price, although it still has to be added to the fossil fuels in accordance with the Decree on renewable energy sources in transport of 30 December 2021.
According to the new Decree adopted by the Government of the Republic of Slovenia on 2 December 2022, the biocomponent markup for NMB-95 and diesel is also considered in the calculation of the maximum retail prices. For the first calculation of the 14-day average selling price of the current period net of duties, the accounting period from 21 November 2022 to 2 December 2022 was taken into account.
Due to the 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, and on 20 January 2022, it was extended for another three months. The margin regulation of EUR 0.0600 per litre was extended by a new Decree of 21 April 2022 for another month and remained in force until 21 May, when the price regulation for heating gas oil also expired. On 9 October 2022, the Government of the Republic of Slovenia adopted the Decree amending the Decree on setting prices for certain petroleum products, which reintroduced the state regulation of the prices of heating gas oil. As from 13 September 2022, the maximum margin allowed is EUR 0.08 per litre.
In Croatia, on 7 February 2022, the Government of the Republic of Croatia adopted the Decree on setting maximum retail prices for petroleum products. The Decree set maximum prices for the following motor fuels for a period of 30 days: petrol (eurosuper 95) at HRK 11.37 per litre (EUR 1.51 per litre), diesel (eurodiesel) at HRK 11.29 per litre (EUR 1.49 per litre) and blue diesel (eurodiesel BS blue) at HRK 6.50 per litre (EUR 0.86 per litre).
On 7 March 2022, the Government of the Republic of Croatia adopted a new Decree on setting maximum retail prices for petroleum products with a validity of up to 90 days. The Decree set out the pricing model for petrol, diesel, and blue diesel and a maximum margin that could be charged by oil traders, namely for petrol (eurosuper 95) of HRK 0.75 per litre (EUR 0.099 per litre), diesel (eurodiesel) of HRK 0.75 per litre (EUR 0.099 per litre) and blue diesel of HRK 0.50 per litre (EUR 0.066 per litre).
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
On 17 March 2022, the Government of the Republic of Croatia adopted an addendum to the Decree, removing the biocomponent markup from the formula for calculating the maximum price. On 17 March 2022, the Government of the Republic of Croatia also adopted a new Decree to reduce the penalty for non-mixing in the biocomponent.
By Decree of 7 June 2022, the Government of the Republic of Croatia reduced the regulated margins of oil traders for petrol (eurosuper 95) and diesel (eurodiesel) to HRK 0.65 per litre (EUR 0.086 per litre) and for blue diesel to HRK 0.40 per litre (EUR 0.053 per litre) and changed the retail price calculation method by extending the accounting period to 14 days (previously 7 days).
In an amendment to the Decree of 20 June 2022, the Government of the Republic of Croatia separated the regulation of sales at motorway and other locations. For fuels not sold on motorways, it has set the following maximum retail prices: petrol (eurosuper 95) at HRK 13.50 per litre (EUR 1.794 per litre), diesel (eurodiesel) at HRK 13.08 per litre (EUR 1.738 per litre) and blue diesel (eurodiesel BS blue) at HRK 9.45 per litre (EUR 1.256 per litre). For fuels at motorway locations, the margin regulation was set at 0.65 per litre (EUR 0.0863 per litre) for petrol (eurosuper 95), HRK 0.65 per litre (EUR 0.0863 per litre) for diesel (eurodiesel) and HRK 0.40 per litre (EUR 0.0531 per litre) for blue diesel (EUR 0.40 per litre).
On 4 July 2022, the Government of the Republic of Croatia adopted a Decree, keeping in force the separation of regulation in the retail sector on motorways and other locations, as was already the case under the previously valid Decree adopted on 20 June 2022. Additionally, for the first time in Croatia, the wholesale price was regulated which, however, could not be higher than the retail price for off-motorway retail outlets.
Decree ended the separation of regulation between motorway and other locations. On 25 March 2022, the Government of the Republic of Croatia adopted an addendum to the Decree, regulating the sellers’ margin also for blue diesel at HRK 0.40 per litre (EUR 0.053 per litre). The addendum to the Decree was in force until 22 August 2022, when a new Decree reintroduced a maximum price of HRK 8.49 per litre (EUR 1.13 per litre).
On 12 September 2022, the Government of the Republic of Croatia passed a new Decree, effective for 14 days from the date of publication, to additionally regulate LPG, namely the margin for propane-butane blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716 per kg) and the maximum price for LPG cylinders (7.5 kg or more) at HRK 13.94 per kg (EUR 1.85 per kg). On 26 September, it extended the validity of the previous Decree by adopting a new Decree, which was in effect for 7 days after the date of publication.
On 4 October 2022, the Government of the Republic of Croatia passed a new Decree, effective for 14 days from the date of publishing, to extend the validity of the Decree adopted on 27 September 2022, with which it regulated LPG margin, namely the margin for propane-butane blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716 per kg) and the maximum price for LPG cylinders (7.5 kg or more) at HRK 13.94 per kg (EUR 1.85 per kg).
On 17 October 2022, the Government of the Republic of Croatia adopted a new Decree, which was in effect for seven days from the date of publication, regulating the maximum prices of the following energy products:
| Product | Price (HRK) | Price (EUR) |
|---|---|---|
| Petrol (eurosuper 95) | 10.72 | 1.42 |
| Diesel | 12.30 | 1.63 |
| Blue diesel | 8.49 | 1.13 |
| LPG cylinders | 13.94 | 1.85 |
| LPG tanks/gas storage tanks | 10.01 | 1.33 |
On 24 October 2022, the Government of the Republic of Croatia adopted a new Decree, reverting to the regulation of the margin, namely for petrol (eurosuper 95) at HRK 0.65 per litre (EUR 0.0863 per litre), for diesel (eurodiesel) at HRK 0.65 per litre (EUR 0.0863 per litre), for propane-butane blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716 per kg), for LPG cylinders (7.5 kg or more) at HRK 6.20 per kg (EUR 0.8229 per kg), while for blue diesel, the maximum retail price remained regulated at HRK 8.49 per litre (EUR 1.13 per litre). The Decree was in force for 14 days from the date of its publication.
On 7 November 2022, the Government of the Republic of Croatia adopted a new Decree on the regulation of the prices of petroleum products, effective for 14 days from the date of publication. The margins remained the same as in the previously valid Decree.
On 21 November 2022, the Government of the Republic of Croatia adopted a new Decree, setting the margins, namely for petrol (eurosuper 95) at HRK 0.65 per litre (EUR 0.0863 per litre), for diesel (eurodiesel) at HRK 0.65 per litre (EUR 0.0863 per litre), for propane-butane blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716 per kg), for LPG cylinders (7.5 kg or more) at HRK 6.20 per kg (EUR 0.8229 per kg), while for blue diesel, the maximum retail price remained regulated at HRK 8.49 per litre (EUR 1.13 per litre). The Decree was in force for 14 days from the date of its publication.
On 5 December 2022, the Government of the Republic of Croatia adopted a new Decree, valid until 21 December 2022, setting the margin for blue diesel at HRK 0.4 per litre (EUR 0.0531 per litre), while the margins for petrol, eurodiesel, propane-butane blend for large tanks or gas chambers and LPG cylinders remained unchanged compared to the previous Decree.
On 19 December 2022, the Government of the Republic of Croatia extended the validity of the previously adopted Decree until 2 January 2023, setting maximum margins of HRK 0.65 per litre (EUR 0.0863 per litre) for petrol (eurosuper 95), HRK 0.65 per litre (EUR 0.0863 per litre) for eurodiesel, HRK 0.4 per litre (EUR 0.0531 per litre) for blue diesel, HRK 2.80 per kg (EUR 0.3716 per kg) for large tanks or gas storage tanks, and HRK 6.20 per kg (EUR 0.8229 per kg) for LPG cylinders (7.5 kg or more).
In Serbia, the Government of the Republic of Serbia has adopted a Decree on the price capping of petroleum (non-additivated) products, which applies to eurodiesel and unleaded petrol and is in force as of 12 February 2022. The amended Decree of 11 March 2022 sets the maximum retail price with value-added tax for eurodiesel and unleaded petrol NMB 95 at the average wholesale price of petroleum products in Serbia, increased by RSD 6 per litre (EUR 0.05 per litre), and later (by amendment on 29 April 2022) increased by RSD 7 per litre (EUR 0.06 per litre). Before that, retail prices for petroleum products were formed freely according to the market conditions. The Government of the Republic of Serbia extends the validity of the Decree on a monthly basis.
In Bosnia and Herzegovina, from 3 April 2021, the retail calculation margin is limited to a maximum of BAM 0.25 per litre (EUR 0.128 per litre) and the wholesale margin to BAM 0.06 per litre (EUR 0.0307 per litre) - before that, the retail prices of petroleum products were formed freely according to the market conditions.
In Montenegro, the prices of petroleum products are set in accordance with the Decree 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 EUR and USD exchange rates are rounded off. Before that, the prices of petroleum products were set in accordance with the Decree in force from 1 January 2011.
In 2022, with electricity prices rising exponentially, we recorded the highest prices in the history of trading on 28 August 2022. The annual electricity base product on the Hungarian market for 2023 peaked at EUR 1,007 and the annual electricity base product on the Hungarian market for 2024 stood at EUR 476.7, while the spot price formed on the Slovenian market peaked at EUR 751.3. The rise in electricity prices that we have witnessed since the beginning of the year is a reflection of the high energy prices on the world exchanges, stock market speculation and the war in Ukraine, which has led the European Union to impose a number of economic sanctions against Russia in order to weaken the Kremlin’s ability to finance the war.
From the beginning of 2022 until the record price on 28 August 2022, the annual base electricity product on the Hungarian market for 2023 was 8 times the initial value, the annual base electricity product for 2024 was 3.8 times the initial value, while the spot price formed on the Slovenian market was 13.5 times the initial value.
The upward trend in stock market prices ceased at the end of August, when electricity and natural gas prices peaked. The reversal of the trend followed the announcement of a draft regulation by EU ministers reaching a political agreement on measures to tackle energy price rises, as well as favourable temperatures that have diverged from the historical averages across Europe. The EU’s actions and efforts to tackle the energy crisis have been matched by a high occupancy rate of EU gas storage facilities: pipeline-filled natural gas storage facilities reached 95 percent occupancy in the second half of November 2022, while tanker-filled natural gas storage facilities reached 73 percent occupancy. In addition, electricity generation from gas-fired power plants has largely decreased, while electricity generation from renewable energy sources has increased.
However, there are still a number of factors that could significantly tighten Europe’s energy balance: an extremely cold winter, a shortage of natural gas supplies to the EU due to increased global demand for natural gas, especially in Asia, the complete loss of currently existing Russian gas supplies, and others.
Source: Petrol, 2022
Source: Petrol, 2022
In Slovenia, on 5 March 2022, the Government of the Republic of Slovenia adopted the Act Determining Measures to Mitigate the Consequences of Energy Commodity Price Rise in Business and Agriculture, which equalized the conditions for the supply of natural gas for the common boiler rooms of floor owners with the prices of natural gas for household customers, with effect from 1 January 2022.
On 14 July 2022, the Government of the Republic of Slovenia adopted the Decree on the determination of electricity prices, which sets the maximum permissible retail electricity price for household and small business customers as defined by the Electricity Supply Act and for consumption in common areas of multi-apartment buildings and in common areas of mixed multi-apartment and mixed multi-business buildings.
gas from the gas system of the transport and distribution network for household customers, for final gas customers supplying heat to several households through a common heating installation owned or co-owned by these households, for basic social services as defined in the second indent of paragraph one of Article 117 of the Gas Supply Act and for customers who, on the date of entry into force of this Decree, are small business customers as defined in the Gas Supply Act. For households and common household customers, the maximum allowable tariff items for gas are EUR 0.07300 per kWh (excluding VAT). For small business customers and basic social services, the maximum allowable tariff for gas is EUR 0.07900 per kWh (excluding VAT).
Both Decrees set a maximum retail selling price for energy products from 1 September 2022 to 31 August 2023.
At the beginning of September 2022, the Government adopted the Act Amending the Gas Supply Act. The amendments, inter alia, update the definition of household gas customers to prevent abuse and ensure that all households have the right to a basic gas supply. The Act also guarantees a basic and substitute gas supply to all protected customers who are (would be) suddenly left without a supplier or the offer of a new supplier. The Act also broadened the definition of protected customers, including primary schools, kindergartens and health centres. The suppliers of the substitute natural gas supply are designated by the Energy Agency on the basis of the Act.
In September 2022, the Act on Measures for the Management of Crisis Conditions in the Field of Energy Supply was adopted. This has set the basis for the identification of temporary management measures in times of increased energy supply risk, as well as measures to ensure the security of the energy supply, to reduce import dependency and to reduce the pressure on energy prices due to the volatility of energy markets.
On 27 October 2022, an amendment to the Decree on setting gas prices from the system was adopted - the maximum retail price also applies to household customers of district heating, and the Decree also redefines the maximum retail price of gas for kindergartens, primary schools and health centres, as well as for the substitute and basic supply of natural gas for protected customers. The Decree applies from 1 November 2022 to 31 August 2023.
In December 2022, the Government also set a maximum retail price for natural gas from the system for certain public entities, such as public bodies, public economic institutions, public agencies, public funds and municipalities. The Decree on setting gas prices from the system sets the maximum permitted retail price of natural gas from the gas system of the transmission and distribution network for certain legal entities under public law, for providers of publicly valid education and training programmes, and for providers of social care services, social welfare programmes and family support programmes. The gas price is capped at EUR 0.095 per kWh for the period from 1 January 2023 to 31 December 2023.
In Croatia, on 8 September 2022, the Government of the Republic of Croatia adopted the Decree on the elimination of disturbances on the domestic energy market, setting the electricity price for household and business customers and for public institutions, effective from 1 October 2022 to 31 March 2023.
On 14 September 2022, the Government of the Republic of Croatia adopted a Decree supplementing and amending the previously valid Decree, which also laid down special measures for trade in natural gas.
On 19 September 2022, the Government of the Republic of Croatia adopted a Decision on the level of tariff rates for the guaranteed gas supply to non-household end customers of natural gas for the period from 1 October to 31 December 2022.
The exchange rate between the US dollar and the euro in 2022 ranged between 0.96 and 1.15 USD per 1 euro. The average exchange rate of the US dollar according to the exchange rate of the European Central Bank in 2022 was 1.05 USD for 1 EUR.
In June 2021, the Petrol Group adopted a new corporate structure for the Company and the Petrol Group. The reorganisation was carried out 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 reorganisation is reflected in stronger market integration, a regional approach and the standardisation of business processes. It brings more efficient processes, the unification and optimisation of the operation of support functions, customer focus and a unified presence on the markets in subsidiaries.
Product management focuses on product development and lifecycle management, group sales and profitability planning, ensuring a high customer experience and maximising the profitability of the group’s products.
Accordingly, we have started to report results by the following product groups from 2022 onwards:
We have also restated all the data for the 2021 comparative period and for the 2022 plan to reflect the new reporting method.
In 2022, the Petrol Group generated sales revenues in the amount of EUR 9.5 billion, which is 91 percent more than in 2021.
In 2022, the Petrol Group’s operations took place in a highly complex environment of energy crisis and government intervention to mitigate it. During January and most of February 2022, the Petrol Group’s operations continued to be impacted by pandemic mitigation measures. Until 20 February 2022, access to the sales premises of service stations in Slovenia was only allowed with a valid RVT certificate. The prices of all energy products have been rising since the end of 2021, and at the end of February 2022, with the start of the Russian invasion of Ukraine, the prices of all energy products rose sharply. Thus, in addition to the increased volume of sales revenues from fuels and petroleum products and merchandise due to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group, the growth of sales revenues compared to 2021 was also affected by the increase in the purchase and sales prices of energy products, as well as by the regulation of fuel prices, which for a certain period of time, limited the maximum retail and wholesale prices of the best-selling fuels - unleaded petrol NMB-95 and diesel fuel. The Petrol Group is not vertically integrated into the oil business (it does not have its own access to crude oil and does not have its own refinery) and is therefore completely dependent on fuel imports.
In 2022, the Petrol Group sold 4.1 million tons of fuels and petroleum products, which was 25 percent more than in 2021. The most significant impact on the growth in the sales of fuels and petroleum products was the incorporation of Crodux derivati dva d.o.o. into the Petrol Group. In Slovenia, strong growth was realised in the retail sector, largely driven by the regulation of fuel prices in Slovenia from 15 March 2022. As a result, between 15 March and 20 June 2022, when the maximum retail price was set by the decree, fuel prices were significantly lower than in neighbouring countries, which led to a significant increase in sales at border stations, especially along the border with Italy, to foreign truckers at service stations in the interior of the country and, during the tourist season, to foreign private individuals. On the Italian market, we gained new customers who also have storage facilities with the possibility of intra-community deliveries, and we have been able to increase our sales to Austria. In 2022, fuel prices were much higher than in the previous year.
have Slovenian vignettes in stock, we now only recognise the difference between the final sales price and the purchase price to which we are contractually entitled as sales revenue. Sales revenues from hot beverages in Slovenia also decreased compared to the previous year. In 2022, we also sold 18.9 TWh of natural gas, 12.0 TWh of electricity and 158.9 thousand MWh of heat. Although this is less than in 2021, the considerable increase in the price of energy products meant that sales revenues were higher than in 2022.
The adjusted gross profit for the period stood at EUR 393.4 million, which was 28 percent less than in 2021. The positive contribution of the incorporation of Crodux derivati dva d.o.o. into the Petrol Group to the growth of the adjusted gross profit was largely offset by the effect of the fuel price regulation in Croatia, as the regulated prices did not allow us to cover the operating costs for a significant part of the year.
In several countries, national governments have intervened in the market for petroleum products by restricting sales prices. In Slovenia, the price of extra light heating oil has been regulated from 20 October 2021, except for the period from 22 May to 12 September 2022. The prices of NMB-95 petrol and diesel are regulated from 15 March 2022, except for a short period between 1 and 10 May. The price cap was in place until 20 June, and from 21 June the decree sets the maximum margins for dealers. Fuel prices in Slovenia were therefore much lower than in most neighbouring countries at the time of the price cap regulation, which significantly increased sales, but the regulated selling prices were set lower than the purchase prices, which meant that we realised a negative margin during this period. In Croatia, prices are regulated from 7 February 2022. For the first month, the decree set the maximum sales prices below the purchase price of the regulated fuels, and from 7 March onwards, the decree set maximum margins that covered the purchase price but not all costs. The maximum selling prices were also imposed in the periods from 21 June to 18 July and from 18 October to 24 October. From 12 September, the Croatian government has also regulated the price of LPG - for propane-butane blends for large tanks and for cylinders. In Serbia, price regulation applies from 12 February 2022. All of this contributed to a lower adjusted gross profit on sales of fuels and petroleum products than in the same period last year.
In Slovenia, the retail prices of diesel and petrol stood below the cost most of the time between 15 March and 20 June 20. The Petrol Group estimates that as a result of the government’s measures on the fuel market it has suffered damage of EUR 106.9 million in Slovenia between 15 March and 20 June 2022 (a claim for compensation has been filed) and EUR 26.4 million from 21 June onwards. The damage caused by petroleum product price regulation in Croatia is estimated at EUR 55.9 million in 2022 (a claim for compensation has been filed).
In Slovenia, we recorded an additional shortfall of EUR 0.7 million in the adjusted gross profit due to the regulated electricity network charges between 1 February and 30 April 2022, EUR 2.4 million because of the equalisation of household consumers of natural gas and floor owners, and EUR 4.5 million because of the electricity price regulation decree. In Croatia, we recorded EUR 0.6 million of economic damage due to the regulation pursuant to the decree on the elimination of disruptions in the domestic energy market.
Regulation is also inappropriate in the field of biofuels. Pursuant to Decree on renewable energy sources in transport, the energy share of renewables in fuels and energy sold by fuel suppliers to end customers in the transport sector must amount to 10.1 percent in 2022 (10.3 percent in 2023). Between 21 June and 5 December 2022, the biofuel surcharge which is much more expensive than fossil fuel was not included in the petroleum product price calculation formula. In the time of maximum prices of biofuels, the cost of added biofuel was even higher than the margin determined by the relevant decree. From 6 December 2022 onwards, the biofuel surcharge is again included in the abovementioned formula, but not in an amount which would enable covering the costs incurred by fulfilling the requirements of the Decree on renewable energy sources in transport.
The supply of electricity to end-customers was below last year’s level due to the high increase in purchase prices. We achieved good results in electricity trading. Sales of natural gas were also below the previous year’s level due to the high purchase prices of this energy product. At Geoplin d.o.o. Ljubljana alone, we realised an economic loss of EUR 140.3 million from our business with Gazprom, namely EUR 43.2 million from the non-delivery in 2022 and the cost of purchasing replacement natural gas, and a loss of EUR 97.1 million from the non-delivery of fixed-price leased natural gas volumes from previous years. We increased our electricity production from renewable energy sources.
The Petrol Group’s operating costs totalled EUR 467.9 million in 2022, which was EUR 34.9 million or 8 percent more than in 2021. Operating costs exceeded the realised adjusted gross profit due to high losses on the sale of regulated energy products. The ratio of operating costs to adjusted gross profit was therefore 118.9 percent in 2022. If the claimed compensation was received from the Republic of Slovenia and the Republic of Croatia, the share of costs in the adjusted gross profit would be 84.1 percent.
The costs of materials totalled EUR 39.4 million in 2022, which was EUR 10.1 million or 35 percent more than in 2021.
The costs of services in 2022 totalled EUR 180.1 million and were up EUR 32.4 million or 22 percent from 2021.
| (in EUR) | 2022 | 2021 | Index 2022/2021 |
|---|---|---|---|
| Cost of materials | 39,423,844 | 29,296,024 | 135 |
| Cost of services | 180,137,325 | 147,697,919 | 122 |
| Labour costs | 135,562,309 | 114,341,509 | 119 |
| Depreciation and amortisation | 96,300,070 | 79,091,758 | 122 |
| Other costs | 16,476,159 | 62,612,453 | 26 |
| - of which net allowances for operating receivables | 7,930,749 | 7,914,095 | 100 |
| Operating costs | 467,899,707 | 433,039,663 | 108 |
compared to the previous year.
Labour costs totalled EUR 135.6 million and were up 19 percent or EUR 21.2 million compared to 2021. The incorporation of Crodux derivati dva d.o.o. into the Petrol Group increased costs by EUR 13.3 million. In Petrol d.o.o. Zagreb, costs increased by EUR 1.2 million, mainly due to salary increases for service station employees. In the parent company, costs increased by EUR 3.8 million, of which EUR 1.0 million was due to an increase in the number of employees (Energy & Solutions, Logistics), EUR 0.6 million due to the statutory harmonisation of salaries and the increase in the minimum wage. In areas where we are constantly faced with staff shortages, notably service stations, salary increases led to an increase in costs of EUR 1.1 million. In line with the actuarial calculation, reimbursements for severance payments, jubilee bonuses and unused leave were up EUR 1.1 million. Costs for pay for annual leave were EUR 1.1 million higher than the year before, while accrued gratuities were EUR 1.1 million lower. The increase in business volumes also led to an increase in costs at Petrol d.o.o. Belgrade, Petrol BH Oil Company d.o.o. and Atet d.o.o. 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 28 thousand, while in 2021 this amount amounted to EUR 0.6 million – these effects are recorded as a decrease in labour costs.
consequent reduction in capital expenditure, the parent company’s depreciation charges have decreased.
Other costs stood at EUR 16.5 million, which was EUR 46.1 million less than in 2021. Compared to the previous year, other costs decreased by EUR 20.8 million, especially because of the lower accrued costs, and costs related to asset impairments and write-offs decreased by EUR 8.1 million. Costs are EUR 18.2 million lower year-on-year because of the reversal of other provisions and liabilities in 2022; provisions and liabilities were not reversed in 2021.
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 the non-fulfilment of concluded agreements 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 agreements 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. Gain on derivatives totalled EUR 523.1 million or EUR 253.2 million more than in 2021. Loss on derivatives totalled EUR 558.7 million or EUR 323.0 million more than in 2021.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Other revenue stood at EUR 102.4 million, which was EUR 95.0 million more than in 2021. Of this, EUR 88.6 million refers to the revaluation of liabilities to Gazprom to the fair value based on valuation provided by an independent valuer. Other expenses stood at EUR 0.3 million, which was EUR 0.6 million less than in 2021.
The EBITDA for 2022 totalled EUR 96.3 million, a decrease of EUR 141.8 million from 2021.
The company’s net profit totalled EUR -7.9 million, a decrease of EUR 159.0 million from 2021. Shares of investment income valued according to the equity method amounted to EUR 3.3 million, which is EUR 0.7 million or 29 percent more than in 2021.
The net finance expenses of the Petrol Group stood at EUR 5.2 million in 2022, which was EUR 3.0 million more than the year before. In 2022, the net loss on exchange rate differences were down EUR 4.1 million compared to the same period in 2021, net revenues from derivative financial instruments were EUR 0.6 million higher than in 2021 and net interest expenses EUR 10.0 million higher (interest expenses were up by EUR 5.2 million due to higher borrowing and interest income was down by EUR 4.7 million because a one-off interest income of EUR 6.9 million was recognised at a subsidiary in 2021 as a result of categorising certain sales transactions as financing transactions). In 2022, reversal of allowance for financial receivables was EUR 0.3 million higher than in 2021. No impairment of investments and goodwill was recorded in 2022, while in 2021 it amounted to EUR 0.9 million. Other net finance income was EUR 1.1 million higher than in 2021.
The Profit before tax in 2022 totalled EUR -9.8 million, down EUR 161.3 million compared to the previous year. Net profit for 2022 totalled EUR -2.7 million, a decrease of EUR 127.2 million from 2021.
Mainly influenced by the rise in prices of energy products. 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 13.8 million lower than at the end of 2021. Right-of-use assets totalled EUR 131.6 million at the end of 2022, which was 8 percent more than at the end of 2021. Non-current investments in jointly controlled entities and associates stood at EUR 58.2 million, which was EUR 2.4 million more than in 2021.
The management of current assets, which accounted for 51 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 2021, the balance of operating receivables as at the last day of 2022 increased by 30 percent.
| (EUR million) | 2022 | 2021 | 2022/2021 Index |
|---|---|---|---|
| Adjusted gross profit | 393.4 | 543.4 | 72 |
| Labour costs, including government grants | 135.6 | 114.3 | 119 |
| Labour costs, excluding government grants | 135.6 | 115.0 | 118 |
| EBITDA, including government grants | 96.3 | 238.1 | 40 |
| EBITDA, excluding government grants | 96.3 | 237.5 | 41 |
| Pre-tax profit, including government grants | -9.8 | 151.4 | - |
| Pre-tax profit, excluding government grants | -9.8 | 150.8 | - |
The value of inventories increased by 47 percent year-on-year. Oil prices were higher at the end of 2022 than at the end of 2021.
In response to the steep growth of electricity and oil prices, the short-term operating liabilities increased by 57 percent year-on-year.
In the area of credit risk management, we closely follow all the procedures of credit insurance companies. The Petrol Group has secured 79 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 18.1 million in working capital or EUR 110.1 million less than at the end of 2021 when it stood at EUR 128.2 million. Cash flows generated from operations amounted to EUR 203.1 million in 2022, which is EUR 26.1 million more than in 2021. The Petrol Group used its own revenues for investment activities, the payment of dividends and the repayment of loans while missing funds were secured from banks. The net financial liabilities to equity ratio (net debt/equity ratio) was 0.6 as at the last day of 2022, and it also stood at 0.6 at the end of 2021. The net debt/EBITDA ratio stood at 5.4 at the end of 2022 compared to 2.1 at the end of 2021. The financial leverage ratio stood at 37 percent at the end of 2022, up from 36 percent at the end of 2021.
Due to the consequences of the energy crisis, we set a high priority in 2022 to ensuring an adequate liquidity structure. When determining the needs for additional potential debt, we took into account the appropriate net debt to EBITDA ratio.
impact of negative energy market developments to the maximum extent possible through a comprehensive energy offering and effective adaptation to the tight business environment, ensured a stable and reliable supply of fuels and energy products through an efficient procurement process, and provided comprehensive support to our customers. We stayed committed to our strategic guidance in the field of debt and kept the net debt at approximately the same level as at the end of 2021. The results of events in the wider business and social environment in the EU and uncertainty on energy markets from the past year are reflected in the Petrol Group’s operations, as seen in the deteriorated indicators compared to 2021. Nevertheless, all key indicators of the Petrol Group have remained at acceptable levels, providing the Group with financially sustainable bases for future operations.
The national approaches taken by the Republic of Slovenia and the Republic of Croatia to mitigate the effects of the energy crisis on citizens by capping fuel prices have affected the net debt-to-EBITDA ratio. The Petrol Group obtained consent from banks that the ratio can deviate from the agreed contractual values in 2022, which shows banks’ trust in the Group’s operations in the future.
We expect 2023 to be as challenging as 2022. Despite the difficult business conditions, we will continue to pursue our 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 energy crisis, Petrol d.d., Ljubljana paid out the dividend in 2022, amounting to EUR 30.00 gross per share, which is 36 percent more than in 2020 and 2021 when it amounted to EUR 22.00 per share.
On 20 July 2022, S&P Global Ratings announced on the Bloomberg website that Petrol d.d., Ljubljana, has been placed on »CreditWatch Negative« with respect to its long-term rating of »BBB-« and short-term rating of »A-3« due to the impact of the negative intervention in the motor fuel market, where sellers were forced to sell motor fuels below cost due to price regulation, uncertainties regarding the recovery of damages, and the risks associated with potential additional interventions in the energy markets.
S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-term rating, its »A-3« short-term credit rating and its »stable« credit rating outlook on 12 December 2022. With this, S&P Global Ratings has removed Petrol d.d., Ljubljana, with a long-term rating of »BBB-« and a short-term rating of »A-3«, from the »CreditWatch Negative« list, where it was placed on 20 July 2022.
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 = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
EBITDA indicates business performance and is the primary source for ensuring returns to shareholders.
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 = Costs of materials + Costs of services + Labour costs + Depreciation and amortisation + Other costs
The criterion is important in terms of the cost-effectiveness of operations.
Ratio = Operating costs/Adjusted gross profit
The ratio is relevant because it concerns the cost-effectiveness of operations.
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.
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 = 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 = Operating profit / (Total assets – Current liabilities)
The ratio shows how efficient the Petrol Group is in generating profits from its long-term sources of finance.
Added value per employee = (EBITDA + Integral labour costs)/Average number of employees. Integral labour costs = Labour costs relating to Petrol Group employees + Labour costs relating to third-party managed service stations, which stood at EUR 25.4 million in 2022 and EUR 25.2 million in 2021.
This productivity ratio indicates average newly created value per Petrol Group employee.
Working capital = Operating receivables + Contract assets + Inventories – Current operating liabilities – Contract liabilities
The ratio reflects operational liquidity of the Petrol Group.
On 2 January 2023, the Government of the Republic of Croatia adopted the Decree on setting maximum retail prices, determining the maximum margins for petrol (eurosuper 95) at EUR 0.0995 per litre, eurodiesel at EUR 0.0995 per litre, blue diesel at EUR 0.0531 per litre, propane-butane blend for large gas storage tanks at EUR 0.3716 per kg and LPG cylinders (7.5 kg or more) at EUR 0.8229 per kg. The Decree was in force from 3 January 2023. Croatia extended the validity of the Decree every two weeks, but it did not limit the validity date of the Decree of 27 February 2023.
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on determining compensation for natural gas suppliers. For supplies regulated by the decrees, suppliers are entitled to a monthly compensation for the difference between the average monthly purchase cost and the regulated retail price, taking into account the supplier’s cost of EUR 5 per MWh.
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on the determination of electricity prices. For supplies regulated by the decrees, suppliers are entitled to a monthly compensation for the difference between the average monthly purchase cost and the regulated retail price, taking into account the supplier’s cost of EUR 10 per MWh.
On 23 January 2023, the 36th General Meeting of Petrol was held, at which the shareholders considered the proposal to recall Aleksander Zupančič from the Supervisory Board. The motion for a resolution was not put to the vote. At the General Meeting, the shareholders were also presented with the Report of the Management Board of Petrol d.d., Ljubljana, on the operations of the subsidiary Geoplin d.o.o. Ljubljana in 2022 and the assessment of the operations of the subsidiary Geoplin d.o.o. Ljubljana in 2023, as well as the Report of the Supervisory Board and Management Board of Petrol d.d., Ljubljana, on the measures taken to obtain compensation for the damage caused by the regulated energy product prices in 2022, on the assessment of the operations of Petrol/Petrol Group in 2023, and on measures for the possible business restructuring of Petrol/Petrol Group as a result of the regulation of energy product prices in 2023.
On 24 January 2023, the Government of the Republic of Slovenia adopted the Decree on setting district heating price, determining the maximum tariff item for the variable part of the price of heat at EUR 98.70 per MWh for households which accept heat from the distribution system where the distributor carries out the public service, namely via the individual or common offtake point. The distributors whose pricelists for January 2023 include the tariff item for the variable part of the heat price that is below the indicated amount, cannot increase such price. The Decree applies to the heat supplied in the period from 1 January 2023 to 30 April 2023.
In Slovenia, the Decree amending the Decree on setting gas prices from the system was adopted on 27 January 2023 and entered into effect on 28 January 2023. It sets the maximum permitted retail price of natural gas needed for the production of heat for basic social services, kindergartens, primary schools and health centres at EUR 0.079 per kWh and applies to natural gas supplied in the period from 1 January 2023 to 31 August 2023.
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 that together will contribute to a successful energy transition. There is increasing awareness of sustainable development, accompanied by tightening regulations. In trading, we are seeing a notable change 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 a 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 but also new 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 the last quarter of 2022, the Croatian company Crodux derivati dva d.o.o. was merged into Petrol d.o.o., resulting, among other things, in consolidation and more efficient operational and control procedures. This was also ensured in the subsidiary E 3, d.o.o. by switching to the internal SAP information system. In particular, preparations for Croatia’s transition to the euro have progressed in the last quarter of the year, and a considerable amount of activity has been devoted to these processes.
In 2022, we saw a continuation of the extraordinary rise in the prices of all energy products, which had a major impact on the whole of Europe and on the Petrol Group’s operations. National governments have responded to the situation with various decrees and energy product price regulations. The Petrol Group was mainly affected by changes and restrictions in the pricing of petroleum products in the markets of Slovenia, Croatia and Serbia (retail and wholesale), as well as by regulated prices of electricity and natural gas. The details of the decrees by country are described in the section Analysis of the business performance of the Petrol Group’s operations in 2022 and in the subsection Business environment.
In 2022, the actions already taken in 2020 to manage the risks associated with the COVID-19 pandemic were continued, focusing on controlling and mitigating the negative effects of the pandemic. Measures continued to ensure the health and safety of employees and customers, and the uninterrupted supply of services to the economy. Additional focus remained on credit risk management, due to the expected increase in default risks from our customers at the level of the entire Petrol Group. 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 2022.
Cyberattack is the battlefield of the future, which can be evidenced by the significantly increased cyber risks in the last period. The Petrol Group must endeavour to step up its cyber resilience today to be ready for cyber threats in the future. More about cyber risks is presented in chapter 18.3 Information security put to the test.
The last risk assessment of the Petrol Group was carried out in 2021. According to the last risk assessment results, financial risks, especially credit, price, volumetric and foreign exchange risks remain among the most important and most probable risks. In 2022, 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.
instruments. As mentioned above, two more subsidiaries migrated to the Petrol Group’s information system in 2022, resulting in increased operational efficiency and control procedures through a unified information system.
The Credit Committee continued to actively pursue its mandate. A great deal of attention was paid to receivables management, realising that our partners, just like us, will face the financial consequences of high prices for all energy products, increased inflation and a tight macroeconomic environment, as well as the COVID-19 pandemic.
The liquidity of 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 S&P Global Ratings. In 2022, 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 despite the tight operating conditions. This continues to provide us with better access to financial resources and, at the same time, a stable financial position. In 2022 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 2022, a lot of attention was paid to credit, price and volumetric risks. Most attention was paid to the sale of electricity and natural gas to end-customers, where we completely overhauled the system of monitoring volumetric and price risks beyond quantity limits (by individual segments) and setting the required mark-ups for the assumed risks. Monitoring volumetric and price risks through quantity limits was also introduced in electricity production from own sources. In the area of electricity trading, the monitoring of credit risks has been even more detailed than in previous years due to the high price growth and increased volatility.
The above activities help us develop a risk-awareness culture to ensure better control over the risks and high-quality information for decision-making at all operational levels. Risk management concerns each Petrol Group employee who is, as a result of their decisions and actions, exposed to risks on a daily basis while carrying out their work assignments and responsibilities. The very fact that at the Petrol Group, risk management is integrated into all aspects of business enables us to generate added value for shareholders and maintain the “investment grade” credit rating.
In addition to the main financial risks, the most relevant risks include economic environmental risks, business decision-making risks, financial environmental risks, process risks, strategic decision-making risks, information systems risks and interest rate risks. All these risks were assessed higher in 2021 than in the previous assessment in 2019.
In risk management, the Petrol Group pursues the 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. This 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:
training while also monitoring the organisational climate.
Petrol’s risk model consists of an integrated set of 20 risk categories divided into two major groups: environmental 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: 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 Petrol Group uses such a system that 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 environmental risks, business decision-making risks, financial environmental risks, process risks, strategic decision-making risks, information systems risks and interest rate risks.
1 - the event can be realised less than once every three years;
2 - the event can be realised at least once every three years, but not more often than 2 times a year;
3 - the event can be realised more than 2 times a year, but not more often than once a month;
4 - the event can be realized more than once a month, but not more often than once a week;
5 - the event can be realised more often than once a week.
1 - potential damage to operations is less than EUR 50,000;
2 - potential damage to operations ranges from EUR 50,000 to EUR 250,000;
3 - potential damage to operations ranges from EUR 250,001 to EUR 1,000,000;
4 - potential damage to operations ranges from EUR 1,000,001 to EUR 5,000,000;
5 - potential damage to operations is greater than EUR 5,000,000.
The Petrol Group protects itself against external environmental 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 environmental risks are economic environmental risks. Although relevant, disaster risks, which also belong in this group, occur infrequently. Financial environmental 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 environmental 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 environmental risks through financial planning and simulations, as well as through cooperation with the financial environment (banks, financial institutions and investors). These risks are taken into account when preparing a strategic business plan and are discussed at the Balance Sheet Management Board.
Public
Javno
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. In 2022, energy product price regulations in various countries in response to the energy crisis had a key impact on the Petrol Group’s negative performance.
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 a lack of responsiveness to changes in the Company’s internal/external 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 (Enterprise Resource Planning) system and the deployment of a new CRM (Customer Relationship Management) system, which was implemented in 2019 in the parent company, in 2020 in a subsidiary in Croatia, while other companies in the group transitioned to the new system in 2021 and 2022, as scheduled.
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.
Business decision-making risks are managed by implementing and improving various organisational rules and by regularly monitoring operations and reporting to various stakeholders. Strategic decision-making risks are mitigated by means of a clearly defined strategy, by exercising control over its implementation and via annual conferences.
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 drawn 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 financial risks were credit, price and volumetric risks, as well as foreign exchange risks, while liquidity and interest rate risks were assessed as less significant. The tight economic environment, high energy price hikes and the consequent regulation of energy prices and higher interest rates have had an impact on the Company’s liquidity. 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.
Price and volumetric risks and foreign exchange risks
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 greatest 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. The war in Ukraine has brought uncertainty and some challenges to the supply of petroleum products. Despite the tightening situation, the supply of petroleum products has been secured, though some uncertainty about market developments remains with the full implementation of the diesel sanctions starting in February 2023. As a result, we have already secured, at an annual level, goods with an origin in line with the sanctions adopted for 2023, before the sanctions come into force.
Trading in electricity exposes the Group to price and volumetric risks. In the period from the beginning of 2022 until 26 August 2022, prices for electricity supplied in Hungary in 2023 have been increasing. On 26 August 2022, the price peaked at EUR 1,007 per MWh and then gradually decreased until the end of 2022. On 28 December 2022 (the last day of quotation of the annual price for 2023 delivery in Hungary on the EEX), the price was EUR 259.85 per MWh, up 104 percent compared to the beginning of the year when the price was EUR 127.18 per MWh. The main reason for the high rise in electricity prices is the high rise in natural gas prices as a result of the closure of nuclear power plants in Germany and the war in Ukraine. 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 Petrol 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.
The operating receivables management system provides us with efficient credit risk management. As part of the regular receivables management processes, we constantly and actively pursue the collection of receivables, a process that was even more intense since the beginning of the COVID-19 pandemic due to the exceptional economic situation. We refine procedures for approving the amount of exposure (limits) to individual buyers and, in these demanding times, try to maintain the range of first-class credit insurance instruments as a requirement to approve sales (receivables insurance with credit insurance companies, bank guarantees, collaterals, corporate guarantees, securities and pledges). In the previous year, this was a significant challenge. At the beginning of 2020, the Petrol Group introduced a new insurance scheme for keeping track of the Group’s needs in the field of credit risk insurance as the market conditions evolve. A great deal of work is put into the management of receivables from all customers in Slovenia, and significant attention is also devoted to the collection of receivables in the SE Europe markets, where the solvency and payment discipline of the business sector differs from that in Slovenia. Receivables are systematically monitored by portfolio, region and organisational 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, and high energy prices have also been an additional challenge in recent months. In 2022, the Petrol Group continued to closely monitor indicators of increased risk and had intensive communication with its customers. At the operational level, all the companies in the Petrol Group still closely monitor the balance of receivables on a daily basis and actively cooperate with customers.
This is particularly true for partners in the electricity and natural gas segments, where the forward price for 2023, as at 28 December 2022, is up year-on-year by 107 percent (electricity) and 187 percent (natural gas) - this compares to a 47 percent factor for the forward price of diesel next month. In order to limit both credit and price risks, an electricity and natural gas sales policy has recently been adopted that provides for a more rigorous way of entering into transactions in 2023. In addition, a methodology is being developed to systematically address the higher risks assumed through a higher contractual margin (risk/reward aspect).
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. 72 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 92 percent).
In the field of credit risk management, we strictly comply with all official procedures of credit insurers. 79 percent of the Petrol Group’s receivables that individually exceed the nominal value of EUR 100,000 are insured. Payments made by buyers are monitored on a daily basis and measures are taken to decrease credit risk, if necessary. Despite the negative effects on the economy, the payment discipline has not deteriorated significantly thus far.
Petrol’s strong position is confirmed by its long-term »BBB-« credit rating, which was reaffirmed by S&P Global Ratings in December 2022. 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 Global Ratings methodology in the management of liquidity risks. On 20 July 2022, S&P Global Ratings announced on the Bloomberg website that Petrol d.d., Ljubljana, has been placed on »CreditWatch Negative« with respect to its long-term rating of »BBB-« and short-term rating of »A-3« due to the impact of the negative intervention in the motor fuel market, where sellers were forced to sell motor fuels below cost due to price regulation, uncertainties regarding the recovery of damages, and the risks associated with potential additional interventions in the energy markets. Despite the tight operating conditions, S&P Global Ratings has reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-term rating, its »A-3« short-term credit rating and its »stable« credit rating outlook in December 2022.
In 2022, the average petroleum and energy product prices were significantly higher year-on-year, meaning that more working capital of the Petrol Group was needed. Despite the high volatility of energy prices and regulations by the countries where the Petrol Group operates, 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. In order to ensure the Group’s stable liquidity position, in the second half of 2022, we started activities to obtain additional credit lines to further strengthen the Group’s stable and solid liquidity position, which, in the event of a deterioration in the economic situation, will ensure smooth operations and an adequate liquidity structure according to the criteria of S&P Global Ratings.
The current business and wider societal environment in the EU and globally is strongly influenced by the war in Ukraine, the resulting tightening of the energy market (high prices and the uncertain supply of fuels and energy products), diverging national approaches to regulating fuel prices to mitigate the impact of the energy crisis on people and businesses, and high inflation. Therefore, we continue to intensify our activities and pay more attention and care to the management of the Petrol Group’s cash flows, especially in the area of deferred inflow planning, which represents an important source of liquidity risk and, consequently, credit risk. We continue to pay additional attention to internal liquidity management within the Petrol Group companies.
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.
EURIBOR in 2022 was higher than the value at the end of 2021.
The Petrol Group also manages interest rate risk by entering into traditional derivative financial instruments (interest rate swaps and forward interest rate agreements). The Petrol Group has derivative financial instruments for all entered into and drawn down long-term loans with variable interest rates, thus hedging the interest rate position. We did not take out any new interest rate insurance in 2022.
The risk of changes in interest rates on short-term funding sources is managed within the framework of the Petrol Group’s liquidity risks and policies.
In 2022, the Petrol Group generated sales revenues of EUR 4,375.2 million from the fuels and petroleum products product group, a year-on-year increase of 102 percent, as a result of the more volumes sold and the higher prices of fuels.
In 2022, the price regulation of certain petroleum products introduced by countries in response to the high energy product prices and rising inflation was the most significant factor affecting the Petrol Group’s operations in the field of petroleum product sales. While low fuel prices had a positive impact on the fuel sale volumes, especially in the Slovenian market, the maximum selling price was set below the purchase price of energy products for part of the regulated period.
On the Slovenian market, we sold 1,754.2 thousand tons of fuels and petroleum products in 2022, 21 percent more than in 2021 and 22 percent more than planned. We achieved good sales results in Slovenia, particularly in the sale of motor fuels. Between 15 March and 20 June 2022, when the maximum retail price was set by the decree, fuel prices were significantly lower than in neighbouring countries, which led to a significant increase in sales at border stations, especially along the border with Italy, to foreign truckers at service stations in the interior of the country and, during the tourist season, to foreign private individuals.
In the markets of SE Europe, we sold 1,480.2 thousand tons of fuels and petroleum products in 2022, 26 percent more than in 2021, mainly due to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group.
In the EU markets, we sold 860.7 thousand tons of fuels and petroleum products in 2022, 30 percent more than in 2021 and 28 percent more than planned, mainly due to the resumption of motor fuel sales in Italy and higher sales of middle distillates to the Austrian market.
Including the sales of Crodux derivati dva d.o.o., which was merged into the Petrol Group in September 2021, sales growth in the Slovenian market was almost as high as sales growth in the markets of SE Europe, resulting in no significant change in the sales structure by market compared to the previous year. Thus, in 2022, 43 percent of our fuels and petroleum products sales were generated in Slovenia, 36 percent in the markets of SE Europe, and 21 percent in the EU markets.
Wholesale sales increased by 21 percent compared to 2021 and by 12 percent compared to the plan, mainly due to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group, higher sales to EU markets and also due to the growth in wholesale sales in Slovenia.
At the end of June 2022, the Petrol Group managed 594 service stations, of which 318 were in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 17 in Serbia and 15 in Montenegro.
With its 318 service stations, the Petrol Group has a 56 percent share of the Slovenian market in terms of the number of service stations. Its competitive advantage consists of having a leading position in terms of transit routes, with a particular emphasis on motorway locations and key urban and border locations. Petrol’s main competitor is the company OMV Slovenia, which has a 20 percent market share in terms of the number of service stations. MOL has a 9 percent market share in Slovenia.
With the merger of Crodux derivati dva d.o.o. in 2021, we consolidated the brand’s presence and position in the Croatian market. Our market share in terms of the number of service stations was 23 percent at the end of 2022. INA remains our biggest competitor, followed by other companies such as Lukoil, Tifon and some smaller companies. In Bosnia and Herzegovina, Petrol has an almost 4 percent market share in terms of the number of service stations. Its major retail competitors include Nestro Petrol, Energopetrol, the Nešković Group, Ina and Hifa Petrol. In Serbia, the companies NIS, Lukoil, Knez Petrol and Mol have the largest retail networks. In Montenegro, Petrol has 12 percent of the market in terms of the number of service stations, its major competitors being Eko and Ina.
Among the fuels and petroleum products, LPG sales are becoming increasingly important for the Petrol Group, seeing that regional infrastructure, which is a basis for establishing a presence in the wider SE Europe region, is now being built. The Petrol Group is engaged in both LPG supply and the construction and management of LPG distribution networks.
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. We take them as an opportunity for improvement in the direction of providing an excellent user experience.
In 2022, the Petrol Group generated EUR 520.1 million in sales revenues from the sale of merchandise and services, which is 11 percent more than in 2021 and 1 percent less than planned.
In the Slovenian market in 2022, we generated EUR 362.2 million in sales revenues from the sale of merchandise and services, which is 7 percent less than in 2021. The main impact on the decrease in sales revenue from the sale of commercial goods and services was the transition of DARS to electronic tolling - As we no longer have Slovenian vignettes in stock, we now only recognise the difference between the final sales price and the purchase price to which we are contractually entitled as sales revenue. Sales of hot beverages and of haberdashery and appliances were lower, especially in the first months of the year, compared to the same period last year, when sales were significantly higher due to the restrictive measures in other activities. The strong sales performance was mainly driven by tobacco sales. In the service sector, car wash operations and entrances to sanitary facilities in Slovenia were the main areas of improvement on the previous year’s performance. We installed Lottery Slovenia’s digital displays in more than 150 points of sale in Slovenia. The range of products offered at Petrol points of sale is changing and being updated as we strive to keep up with the needs of service station visitors by quickly adapting our product range. Sales of merchandise and services in 2022 were in line with the plan.
In the markets of SE Europe, we generated sales revenues of EUR 157.9 million from the sale of merchandise and services in 2022, an increase of 93 percent compared to 2021, mainly due to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group. The good sales results of the other companies in the markets of SE Europe were mainly achieved in tobacco and foodstuffs, while the Croatian market in particular (excluding the impact of the incorporation of Crodux derivati dva d.o.o. into the Petrol Group) underperformed in the lottery, vouchers and cards and hot beverages. In Bosnia and Herzegovina, we introduced Loto-Bingo terminals at 16 additional locations, and in Serbia, we installed electronic toll payment machines at 5 facilities. Sales of merchandise and services were 3 percent lower than planned, mainly due to lower sales of foodstuffs.
The use of mobile shopping solutions has also increased, i.e. the “Na poti” mobile app. Thanks to our management and the 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 the legal provisions.
Turbulence in the economic environment had a significant impact on business in 2022. In order to mitigate the negative impact on the Group’s business, we further strengthened our customer focus.
We are strengthening the position of the distribution network by adapting the business models that we manage (bars, restaurants, car washes), digital solutions (digitalisation of forms, the new SmartSpotter Team process tracking tool, process for introducing eTickets at motorway locations, setting up new totems and price lists) and empowering our employees to provide services tailored to the customer. We integrated Crodux points of sale into the Petrol network, and we are also establishing uniform operating standards on the Croatian market.
Through various training activities, we are reinforcing the key skills of all employees in order to provide tailor-made services to customers (the reorganisation of the work processes of sales managers, expansion of the network of internal trainers, the revision of the protocols for the implementation of work processes at points of sale, the tidiness of the points of sale, the optimisation of the procedures for managing crowds, monitoring of the CEX indicator - Customer Experience).
We also monitor the quality of our sales processes through outsourced mystery shopping. Customer satisfaction is monitored through the Transaction Net Promoter Score questionnaire, where customers provide feedback on their satisfaction with the service at the point of sale. A strong emphasis is placed on keeping points of sale clean and tidy.
We also ensure cost optimisation by monitoring the costs of individual segments and proposing improvements to optimise operations and performance, as well as the use of technological equipment.
In the business-to-business segment, we place great emphasis on maintaining good relationships and working successfully with our customers, which has been particularly important at a time of significant changes in fuel input prices and the regulation of fuel retail prices or margins. We attract new customers and offer new products to existing customers. We provide adequate financial security. We appointed key administrators for all major customers to ensure that all our products are fully available to each customer.
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 range 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 range for existing and new customers according to their needs.
In the markets of SE Europe, at a time of the tight supply of petroleum products, we established cooperation with several private service stations, strengthened our cooperation with some major customers, concluded several new gas cylinder supply agreements and gained several new bitumen customers. Also, Crodux’s wholesale network was integrated into the wholesale processes.
By selling energy and solutions, the Petrol Group generated sales revenue of EUR 4,554.2 million in 2022, a year-on-year increase of 97 percent. The high growth is mainly a result of the growth of electricity and natural gas prices.
Energy and Solutions underwent a number of substantive and organisational changes in 2022. In the second half of the year especially, we were faced with unprecedented increases in the price of energy products and limited investment funds.
towards a green future. A large part of this transition is assumed by Energy and Solutions with its products and team of experts. A new organisational structure has been adopted at the Group level to better meet the challenges of the energy transition.
The new organisation is based on the product as the holder of content work and the 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.
Another important substantive shift is the extension of product management to the area of three strategic key Petrol markets: Slovenia, Croatia and Serbia. More details are presented below in a comprehensive overview of all products, business indicators and business opportunities according to the potential of individual markets.
2022 was marked by an extraordinary increase in electricity and natural gas prices. The price volatility of all energy products raises questions about current way of working, risk-taking, leasing and various forms of partnerships. In particular, the rise in prices of energy products has sharply increased the demand in all customer segments (end-customers, business customers and the public sector) for renewable energy solutions (solar and wind power plants, energy storages, hydrogen).
In 2022, we also launched the DOM project, which sets out a comprehensive strategy for developing the sale of energy solutions to end-customers.
We generated EUR 41.7 million in sales revenue from the energy solutions product. The Energy Efficiency Directive establishes a number of measures in the field of energy efficiency, including the leading role in the energy renovation of public sector buildings, which is to serve as an example for other stakeholders. In this context, the Directive requires that, from 1 January 2014, three percent of the total floor area of buildings owned and occupied by public sector entities be renovated each year. The Directive was transposed into Slovenian law by the Energy Act – EZ-1.
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, the Petrol Group 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, 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 for the 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 the contractual penalties, if any, in case the agreed results or savings are not achieved (no service - no payment).
In 2022, we successfully completed three major projects and implemented additional measures in one existing project:
additional measures on an existing project (three buildings with an area of 12 thousand m2);
• comprehensive and partial energy renovation of buildings in the Municipality of Ljubljana (EOL-3), comprising 19 buildings and an area of 52.5 thousand m2. In 2022, 12 buildings were completed, totalling 38 thousand m2.
In 2022 we carried out the energy renovation and assumed the management of 20 buildings with a total area of 59.4 thousand m2.
In 2022, we started the implementation of two more projects (EUO Ruše and EUO Ig), which will be completed in spring 2023.
In 2022 we implemented energy performance contracting services at 365 buildings with a total area of 1.1 million m2, which is comparable to the floor area of approximately 95 Petrol office buildings in Ljubljana.
The digital transformation, which has become a reality here and worldwide, is changing the structure of national economies, affecting macroeconomic categories and radically changing 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 and efficiency 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 to 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 digital transformation of the management of water supply systems. The processes carried out by the DISNet-WS Group for our service users have proven to be an effective measure and are recognised by critical infrastructure managers as a key part of their management process.
In 2022, we successfully completed negotiations for the maintenance service of the digitised telemetry of the water supply system managed by Komunala Novo mesto in the area of central Dolenjska and the area of Suha Krajina. In mid-2022, we completed the 10-year Technical and Economic Optimisation of the Kranj Water Supply System (TEOVS) project, which saved nearly 2 million m3 of drinking water per year. In December, we signed a framework agreement to continue our activities in the management of the Kranj water supply system for the next three years.
With DISNet-WS services, we support the management of more than 60 water supply systems in seven countries in the region. We cooperate with 17 major drinking water system operators (Ljubljana, Maribor, Kranj, Velenje, Murska Sobota, Novo mesto, Ptuj, Čakovec, Slavonski Brod, Novara, Arad, Sofia, Podgorica…), as well as some smaller ones in more than 80 municipalities.
We support our partners by digitalising services in real-time, improving the efficiency of operation and management on almost 15 thousand km of water supply network, with more than 1.3 million users and more than 420 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 below those before the measures, which we consider to be a great success. Based on our references, we joined the project in 2021, with which we want to reduce water losses in one of the largest water supply systems in the region by approximately 1.7 million m3 by the end of 2024.
In modern times, a clean environment is becoming increasingly important and wastewater, which can significantly 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 the treatment of both municipal and industrial wastewater, which has to be environmentally friendly and cost-effective. We provide wastewater treatment services both for our own needs and as a commercial activity.
Yearly operational monitoring performed by authorised institutions indicates that all the machinery in the Petrol Group has been operating in compliance with the legislation and achieved cleaning efficiency.
In 2022 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. We also operated industrial wastewater treatment plants in the companies Papirnica Vevče d.o.o. and Paloma d.d. 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. We also operate and maintain more than 50 small municipal wastewater treatment plants, ranging in size from 5 to 800 PE.
In 2022, after obtaining an environmental permit, we carried out a trial run of the Ihan Mud Dryer. 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 2022, a total of over 3.2 million m3 of municipal wastewater was treated at four municipal wastewater treatment plants, and 1.5 million m3 of industrial wastewater was treated at industrial wastewater treatment plants. At Petrol’s points of sale, we operated 52 small treatment plants and pumping stations.
Heat generation is one of the largest consumers of energy and an area where energy efficiency is a key objective. The main guidelines for the development of smart district heating systems are: reducing energy consumption and cost-efficiency, and measures to increase renewable energy sources through the simultaneous digitisation of the system. Through forecasting and mathematical modelling, we can determine the needs of district heating systems, providing a comprehensive and intuitive overview of the situation at all points in the network and the impact of system changes on the primary energy source. Through digitalisation, we ensure that heat losses are reduced and system operating costs are minimised, while maximising efficiency and supporting decarbonisation and ensuring network optimisation.
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.
With smart grids, we are developing district heating systems as part of the smart city infrastructure - smart heat generation, distribution and off-take.
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). In 2022, we have further strengthened our cooperation with major district energy systems (Ljubljana, Velenje, Maribor, Zagreb, Osijek, Sisak, Tuzla, Belgrade...).
We manage one of the largest district heating systems in the Balkans: the “Belgrade Power Plants” district heating network, which, with over 1,600 km of pipelines and instrumentation, connects the generating source to the end users with an average annual heat production of over 3,500 GWh.
The entire region in which the Petrol Group is present is becoming increasingly aware of the importance of the 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 of the environment. 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 Protection From Light Pollution is in force, while Serbia has in place: the Energy Act, the Efficient Energy Consumption Act and the Rules on Energy Performance Contracting laying down measures for improving energy efficiency in the public sector.
Legislative frameworks directly affect the potential or interest of local communities for the energy and eco-efficient renovation of public lighting systems. Petrol is running public-private partnership and energy performance contracting projects with the aim of reducing energy consumption, greenhouse gas emissions and light pollution, as well as to provide traffic and general safety and lighting comfort for the users of public spaces and public facilities in an energy-efficient way. By integrating systems in the Tango platform, through the digitalisation of energy accounting, we monitor and analyse the costs of public lighting systems. Through 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 2022, despite limited investment funds, we managed to implement energy-efficient public lighting renovation projects in Šentilj, the Croatian municipality of Oriovac, and the Serbian municipality of Kikinda. At the end of 2022, we started work on additional projects in Croatia: Trogir, Jastrebarsko and Molve. This will further strengthen Petrol’s position in the region of SE Europe.
In the region of SE Europe, the Petrol Group will thus manage a total of 31 concessions or public lighting systems. Through the energy renovation of public lighting systems, we save over 28 thousand MWh of electricity per year and reduce CO2 emissions by more than 17 thousand tons annually.
We are also continuing to replace inefficient lighting in public buildings and in dedicated sports facilities through energy and environmental management projects.
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.
Using Tango allows internal and external subscribers to:
In 2022, we used Tango in many Petrol products and areas, with which we are present in our key markets. 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 industrial solutions, we manage two closed economic areas located in Ravne and Štore, a virtual power plant integrated into the tertiary electricity supply and a boiler room in Trebnje.
In addition to managing solutions for steam and heat, natural gas, industrial gases and compressed air, water, waste heat, cooling systems and industrial wastewater treatment plants, as well as virtual power plants, we pay special attention to developing and providing integrated energy solutions for all our customers in these areas.
In 2022, our main focus was on finding solutions to provide renewable energy sources, mainly in the area of solar power plants and electricity storage. Several studies and proposals have been prepared but have not yet been implemented.
In the field of district heating, we generated EUR 23.5 million in sales revenue in 2022. 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, 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 2022, 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 are proprietary and three are market distribution systems.
In 2022, the Hrastnik Heating Plant completed an extensive reconstruction, which included the replacement of cogeneration with natural gas, the replacement of two natural gas boilers with a total capacity of 7 MW and the installation of a new biomass boiler with a capacity of 1 MW. In addition to reducing greenhouse gas emissions, the aim of the retrofit is to provide reliable heat production from a variety of energy sources, at the lowest possible cost, which is important at a time of unpredictability in the energy market.
The Petrol Group generated EUR 16.3 million in sales revenue from gas distribution in 2022.
At the end of December 2022, the Petrol Group operated 31 natural gas supply concessions in Slovenia, and in Serbia we supply natural gas to the municipalities of Bačka Topola and Pećinci, as well as three municipalities in Belgrade. Since the end of 2018, the Petrol Group has also been present on the Croatian market, where Zagorski metalac d.o.o. distributes natural gas in certain municipalities in the areas of Zagorje-Krapinje and Zagreb County.
In Slovenia, we completed the construction and expansion of the gas pipeline network in Idrija, started the construction of the gas pipeline in Vransko (in its final phase), completed the construction of the gas network interconnection in Črenšovci and Beltinci, and started the final phase of the construction of the gas pipeline in the municipality of Škocjan, which has been delayed until 2023 due to the simultaneous construction of a part of the pipeline with the sewerage network.
In Croatia, we mainly built small connections and carried out procurement procedures for works at four sites in the municipalities of Zabok and Veliko Trgovišće. We have completed all the planned investments.
In Serbia, network expansion took place mainly in Belgrade and in the municipality of Pećinci. Most of the connections were built in the municipality of Čukarica, and we have also agreed with Perutnina Ptuj to expand the network in the area of the chicken farms in Bačka Topola.
In 2022, the Petrol Group distributed 1,231.6 thousand MWh of natural gas, which is 10 percent less than in 2021 and 3 percent less than planned. The lower distribution was due to the tight energy situation and high natural gas prices.
The Petrol Group generated EUR 4,457.5 million in sales revenue from energy products in 2022.
While the world is still recovering from the COVID-19 epidemic, which had a major impact on the economy, especially in 2020 and 2021, Europe is already facing a new crisis in 2022, this time an energy crisis. The war in Ukraine has pushed the already high prices of energy products to record levels. Europe's sanctions against Russia, on which it has relied for years for cheap supplies of energy products, have also led to a reduction and phasing out of supplies. Europe has therefore been forced to look for alternative energy sources, notably LNG via the sea and natural gas from Norway and North Africa, and has placed a strong emphasis on investing in its own renewable energy production.
The upward trend, which started in 2021 with the rising price of emission allowances, gained momentum in early 2022. The declaration of martial law between Russia and Ukraine added an unimaginable premium to EU energy market prices, driving them to unimaginable levels in a panic to save companies’ financial positions.
While electricity prices hovered between EUR 20 and EUR 100 per MWh for most of the last decade, they peaked at EUR 1,000 per MWh in 2022. At the same time, the price of natural gas has risen from a long-standing range of between EUR 4 and EUR 33 per MWh to EUR 340 per MWh.
In 2022, Europe almost completely switched its natural gas imports from Russia for LNG originating mainly from the US, Qatar, and Nigeria and increased imports from other pipelines (Norway and Algeria).
The diversification of natural gas imports and favourable weather conditions have reduced fears of energy product shortages in the winter, and energy prices have moderated somewhat towards the end of 2022.
2022 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, and situations and events where we were even worried about the security of supply, which has never happened before.
At the Austrian CEGH gas hub, SPOT gas prices in 2021 for delivery in 2022 ranged from EUR 16 per MWh in the first half of 2022 to EUR 139 per MWh in November 2022. Natural gas suppliers have started to adjust their regular natural gas price lists for household and small business customers for deliveries in the last quarter of 2021 and in 2022, with natural gas supply prices for household customers already rising to EUR 80 per MWh and even EUR 125 per MWh as of 1 January 2022. Petrol d.d., Ljubljana adjusted its regular price list for natural gas applicable from 1 December 2021, then from 1 May 2022, 1 September 2022 and 1 October 2022.
unfavourable situation. Consumers in communal boiler rooms owned by floor owners and in large or small district heating systems that use natural gas as an energy source were particularly exposed to the high natural gas prices.
Successive governments have worked to tackle the high prices and ensure the security of the energy supply. Regulated prices did not reflect the world market prices. Measures in the area of natural gas pricing are described in more detail in the section Price regulation of other energy products.
The adoption of measures to regulate the retail prices of natural gas on the basis of the Price Control Act caused significant economic damage to Petrol d.d., Ljubljana in 2022, as the maximum permitted retail prices were below the market prices throughout the entire period of regulation.
The efforts of Petrol d.d., Ljubljana regarding compensation to be paid to natural gas suppliers were focused on preparing the content for the adoption of the appropriate regulatory framework for determining such compensation. This defined the method for determining and the procedure for paying appropriate compensation for the economic damage caused to natural gas suppliers as a result of the capped retail price for natural gas in accordance with the Decree on setting gas prices from the system.
On 12 July 2022, the Energy Agency, as the competent authority for ensuring the security of the natural gas supply, declared an Early Warning Level on the basis of the Gas Supply Act and the Legal Act on the emergency plan for natural gas supply.
The Agency urged natural gas consumers to use energy rationally and informed industrial consumers that in a situation requiring a declaration of a higher level of crisis, supply may be interrupted or they may be required to switch to alternative energy sources. Suppliers and industrial customers were invited to regularly monitor developments and the situation on the natural gas market and to consider alternative options that could help reduce consumption in the event of supply disruptions.
The Early Warning Level will remain in place in 2023 until it is lifted. The Agency monitors the security of the natural gas supply in Slovenia and other countries and will promptly inform the stakeholders and the public of any changes.
Due to the considerable uncertainty and unpredictability of the further development of the energy crisis in Europe and the development of natural gas prices, the natural gas supply activities of Komunalno podjetje Velenje, Komunalno podjetje Vrhnika, E.ON Ljubljana, Domplan Kranj and Energetika Celje were discontinued in 2022.
Despite the extremely challenging conditions, the Petrol Group has ensured a reliable supply of natural gas to all its customers, and has also taken on some new customers who were left without a supplier on the market. By adapting our business processes, we have ensured compliance with the new legislation in the natural gas market and with all the regulations designed to mitigate the impact of high natural gas prices.
In 2022, the Petrol Group sold 11.7 TWh of natural gas to end-customers, 55 percent less than in 2021 and 25 percent less than planned, mainly due to lower sales volumes in foreign markets (a drop in sales in Eastern European markets due to the tense geopolitical situation). In natural gas trading, the Petrol Group realised sales of 7.3 TWh.
Source: Energy Agency
High electricity prices have had a major impact on all consumers, who have been used to relatively low prices and a stable market over the past decade. Industry, which buys energy at market prices, has faced a huge increase in operating costs as a result. Household and small business customers, for whom we lease energy on a portfolio basis, have also seen their regular tariffs increase as a result of the exceptional price hikes on the market. Last but not least, this market shock has shaken electricity suppliers, who have been forced to adapt their processes, tools and working methods to the new market conditions in a very short time.
The cap on the maximum retail price of electricity was a positive and certainly one of the key measures for the majority of consumers, who would not have been able to accept full market prices. However, for suppliers, such a cap created an unsustainable situation, as they were forced to buy electricity at high market prices, while we were able to sell it at much lower regulated prices. A number of smaller suppliers have decided to go out of business due to the difficult market conditions, so the market has consolidated and customers have contracted with those suppliers that have remained in the market. The Petrol Group, together with other suppliers, has been campaigning all along for fair compensation for the commercial damage we have suffered as a result of the price regulation.
Despite the extremely challenging conditions, the Petrol Group has ensured a reliable supply of electricity to all its customers, and has also taken on some new customers who were left without a supplier on the market. By adapting our business processes, we have ensured compliance with the new legislation in the electricity market and with all regulations designed to mitigate the impact of high electricity prices.
In addition to the activities related to the energy crisis, in 2022 we completed the integration of E 3, d.o.o. into the Petrol Group, which today brings together not only the customers but also the know-how, experience and best practices of both companies under one roof. However, knowing that know-how alone is not enough and that data and information play an increasingly important role in the age of digitalisation, we have also started a complete overhaul of our portfolio management system in 2022, which will allow us to better control, manage and make decisions, while giving customers more efficient access to all relevant information and facilitating the implementation of activities related to the supply, purchase and production of electricity, as well as the management of dispersed resources.
The Petrol Group’s electricity sales to end-customers in 2022 stood at 3.4 TWh, which is 7 percent less than in 2021 and 9 percent less than planned. The underperformance is due to the current electricity market situation. The volumes sold on the trading market in 2022 were 8.7 TWh.
Source: Energy Agency
The Petrol Group 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:
carried out in 2022. Contacts are established with partners interested in long-term sales and customers interested in long-term energy leases. Based on the draft general terms and conditions and PPAs, we will be able to launch competitive PPA products in 2023 in the markets where we operate.
The Petrol Group generated EUR 10.7 million in sales revenue from electricity production in 2022.
Globally, 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. Renewable electricity production is also an important pillar of the Petrol Group’s development into a modern energy company. The developments and turmoil in the energy markets in 2022 are an important indicator of the importance of having our own long-term, secure sources of energy production.
The Petrol Group is therefore accelerating the development and implementation of renewable energy projects, in which wind and solar power plants will play a key role. By developing our own production capacity, we are pursuing the strategic objective of becoming a visible regional provider of comprehensive energy and environmental solutions, and a partner in the development of the circular economy for the transition to a low-carbon society.
The Petrol Group has been involved in electricity production since 2003. We produce hydroelectric power in Bosnia and Herzegovina and Serbia, where we generate electricity from hydropower in six small hydropower plants. In 2022, they produced almost 24 GWh of electricity.
The Petrol Group currently manages two wind power plants in Croatia (Glunča and Ljubač wind power plants), which are expected to produce 122.7 GWh of electricity in 2022. We are also in the final stages of developing a third wind farm.
In 2022, a project to build one of the largest solar power plants in the region, comprising three power plants (Suknovci, Vrbnik and Pliskovo) with a total capacity of 22 MW, was launched. Construction will be completed in early 2023.
As part of the Petrol Green project, in 2022, we were in the process of obtaining the necessary documentation for the installation of solar power plants on our own buildings. Over the next two years, solar power plants will be built on our facilities in Slovenia and Croatia.
The Petrol Group is accelerating the planning and development of new renewable energy projects, both in Slovenia and in the wider region.
In 2022, the Petrol Group produced a total of 166.8 thousand MWh of electricity, an increase of 28 percent compared to 2021, mainly due to the new wind power plant in Ljubač. However, due to the poor wind conditions in the cooler part of the year and low water levels in the summer months, electricity production was 15 percent lower than planned.
The Petrol Group generated EUR 4.5 million in sales revenue from mobility products and services.
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.
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:
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.
The URBAN-E project has officially ended with the installation of all 94 conventional (slow) and 18 fast charging stations in Ljubljana (47 AC and 9 DC) and Zagreb (47 AC and 9 DC2). A final financial and technical report will follow in 2023.
The URBAN-E project brings together three municipalities (Ljubljana, Zagreb and Bratislava) with companies that have experience in the field of charging infrastructure for electric vehicles in the cohesion countries (Petrol d.d. Ljubljana from Slovenia, Petrol d.o.o. Zagreb from Croatia and Západoslovenská energetika, a.s. from Slovakia), a railway company (Slovenske železnice - Potniški promet from Slovenia), and innovative B2C and B2B transport service providers (Go4 from Slovakia and GoOpti from Slovenia) to form a new strategic partnership for green urban transport. It was designed to promote e-mobility, intermodal travel and green transport services in the urban nodes of the core network, thus making an important contribution to the implementation of the European Strategy on Alternative Fuels.
The URBAN-E project, a study with pilot implementation, was carried out in the central urban centres of Ljubljana, Zagreb and Bratislava from March 2017 to December 2022. It included the testing of urban green transport between Ljubljana and Zagreb, the deployment of parking sensors to test parking management options and smart charging use cases. The project has installed a network of 167 charging stations, including 144 conventional (slow charging up to 22 kW) AC and 23 AC/DC fast charging stations. The charging infrastructure deployed focuses on intermodality and convenient integration with other transport modes and is integrated into municipal transport strategies focused on decarbonisation and contributes to the implementation of national sustainable mobility plans.
The adopted and integrated ICT systems for Charge Point Operator (CPO) and E-Mobility Service Provider (EMSP) services enable the management of the charging infrastructure, different urban use cases and ensure interoperability between urban charging networks and other long-distance charging infrastructures. The intermodal platform developed in the city of Bratislava with the “Po meste” app is an innovative intermodal solution that supports green transport services in Bratislava and is a key tool for citizens, city administrations and transport planners to make more informed decisions towards zero-emission cities.
URBAN-E is co-funded by the European Union’s Connecting Europe Facility for the 2017-2022 period.
A fast-charging station at the Rudnik West outlet in Ljubljana, part of the URBAN-E project
Source: Petrol archive
As part of the final step to obtain a grant from the NEXT-E project in Slovenia and Croatia, we hosted a representative from the European Climate, Infrastructure and Environment Executive Agency (CINEA). Following the on-site verification, we received positive confirmation of the achievement of the project’s objectives and the proper technical functioning of all the charging stations installed in the project. This makes 30 fast chargers and 6 ultra-fast chargers eligible for full funding.
Through the Multi-E project, we will further expand our market presence with new types of charging stations in Slovenia and Croatia and, when the opportunity arises, enter the market of northern Italy. In 2022, we signed contracts to further expand the public charging infrastructure at the following locations: Ljubljana Jože Pučnik Airport, Meksiko Parking House, Šentpeter Parking House (both in Ljubljana), Supernova Ljubljana Šiška Shopping Centre and Supernova Koper Shopping Centre. We also installed and commissioned 6 AC charging stations in Croatia at Lesnina Rijeka (Kukuljanovo), Lesnina Zagreb East and Lesnina Zagreb West, as well as 3 AC charging stations at Ljubljana Jože Pučnik Airport.
In the area of mobility services, we develop services related to new concepts and forms of mobility. With Atet d.o.o., we offer the market fleet management services and provide mobility through long-term and short-term vehicle leasing. In addition, we aim to be a partner to companies and municipalities in the green transition and in achieving their sustainability goals through fleet electrification.
Companies that are committed to operating more sustainably or optimising their business efficiency are increasingly turning to alternative forms of mobility, such as giving up their own vehicles and using experts to help them manage their own fleets. We offer integrated mobility solutions in fleet management, long-term corporate leasing, short-term vehicle rental, door-to-door services and fleet analysis and optimisation. Tailor-made services are also complemented by charging stations and charging solutions.
In mobility services, we realised a 60 percent increase in sales revenue in 2022 compared to 2021. Short-term rental sales revenue increased by 36 percent compared to 2021, driven by high rental sales prices. In the long-term or operating lease of vehicles, we have entered into contractual cooperation with some major partners, which has contributed positively to the positive results, with a more than fourfold increase in sales revenue compared to 2021. In 2022, we also see an increased demand for electric vehicles and charging needs, which is an excellent starting point for the efficient integration of Petrol Group services. This was also supported by a change in legislation, which has become more favourable to green forms of transport and offers certain benefits for electric company cars (0 percent benefit, VAT deduction).
We are actively continuing to market and integrate with other products, including energy solutions, as completely new patterns of mobility needs and the integration of different forms of mobility have emerged among users over the past two years. In September 2022, we confirmed the further development of a digital fleet management support solution. With advanced integrated solutions tailored to the customer’s needs, we aim to further strengthen our position in the market and to offer our partners integrated support in mobility and fleet management.
• Petrol’s new organisation will allow the Company to meet the challenges of the energy transition.
• The rise in energy product prices has dramatically increased the demand of all customer segments for renewable energy solutions.
• Petrol carries out energy performance contracting services for buildings in the narrow and wider public sector.
• We use remote energy systems to help increase energy and environmental efficiency in nine countries in the region.
• Today we manage public lighting systems in fifteen Slovenian municipalities and cities, seven Croatian and six Serbian cities.
• Tango is the Petrol Group’s own IoT platform, which solves the challenges of modern business and enables digital and green transformation.
• With its energy solutions, Petrol helps the industry achieve the goals of the NEPN.
• We are present in the markets of Croatia, Bosnia and Herzegovina and Serbia with the production of electricity from renewable energy sources.
• The development of charging infrastructure is based on partnerships with the largest energy companies, municipalities and transport companies in Central and South-Eastern Europe.
In 2022, we have earmarked the majority of our investment funds for the construction of solar power plants at Vjetroelektrane Glunča d.o.o. In accordance with the adopted strategy of the Petrol Group until 2025, the bulk of the investment budget was allocated to the energy transformation, specifically to expanding operations in energy and solutions in Slovenia and the markets of SE Europe and in expanding sales and upgrading and maintaining logistics capacities in Slovenia.
Due to the impact of current fuel and energy market regulations on the Group’s cash flow, we have invested less than planned in 2022. We have made the highest priority investments, as well as those that were legally and contractually required. This resulted in a lower-than-planned realisation of net investments.
In 2022, net investments in property, plant and equipment, intangible assets and long-term investments stood at net EUR 59.8 million, and in 2021 at EUR 233.2 million, of which EUR 181.7 million for the acquisition of Crodux derivati dva d.o.o.
In Slovenia, the majority of our investments were spent on the replacement of the Grosuplje service station, capital maintenance, the installation of totems at points of sale and meeting the legal requirements for the installation of central fuel filling cabinets at service stations.
Investment funds were also earmarked for obtaining documentation for investments to be made in the coming years.
We have carried out projects required by law and risk reduction projects at all Petrol storage facilities. At the Sermin petroleum products warehouse, we completed the second phase of the renovation of the hydrant network and the installation of an additional VRU to recover vapours from the gas storage tank.
In November, Crodux derivati dva d.o.o. was legally merged into Petrol d.o.o. In Croatia, we started the design of three new service stations, Dragalić S, St. Helena E and St. Helena W, and seven renovations of Crodux service stations.
Throughout the year, we carried out investment maintenance at points of sale in all markets.
Renewable electricity production is undoubtedly one of the key areas for sustainable future development as well as the common societal goal of the transition to a low-carbon society.
– wind, water and solar. In 2022, we started the construction of three solar power plants in the Croatian market, Suknovci, Pliskovo and Vrbnik, with a total capacity of 22 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. To this end, we have participated in Petrol Green calls for proposals to find ways to save money at Petrol points of sale in a sustainable way. To date, Petrol has been awarded EUR 0.7 million in grants to implement Petrol Green projects.
In the past year, we completed the Energy Management of Facilities (EMF) projects, namely the EMF Dom Franceta Bergelja Jesenice, the EMF MOL EOL 3 and the EMF Brezovica, the renovation of the EMF Ruše is underway, and the renovation of the EMF Ig is due to be completed in February 2023.
The implementation of sales projects for the market took place, such as the sale and implementation of heating stations, central control system and various project extensions. In the markets of SE Europe, energy renovations of public lighting systems in the municipality of Oriovac in Croatia and public lighting in the municipality of Kikinda in Serbia were carried out.
In mobility, investments in the expansion of charging infrastructure and investments in vehicles for the provision of mobility services took place in all markets.
The existing Hrastnik Heating Plant was completely reconstructed accommodating the boiler plants, cogeneration plants and other technical equipment necessary for the smooth operation of the district heating system.
After the acquisition of E 3, d.o.o. in 2021, in 2022, we successfully implemented a complete information system replacement (ERP, CRM, Portal, Webshop) and integrated it into Petrol’s systems, thus unifying the processes in the area of electricity supply and optimising and improving them with our combined knowledge.
In order to participate in the digital transformation of the economy, we participated in a public call for proposals from the Ministry of Economic Development and Technology and obtained approval for a grant of EUR 1.4 million for the implementation of the Digitisation of the Oil&Gas E2E Supply Chain project. The project will be a vital foundation for the next 20 years of the Petrol Group’s business. The project will digitise and upgrade the Company’s key core processes, from the procurement of petroleum products to their sale. There will be a particular focus on efficient and digitised logistics.
Throughout the year, we invested in the modernisation of information and other infrastructure and in ensuring security both in Slovenia and in the markets of South-Eastern Europe.
On 1 November 2022, Petrol d.d., Ljubljana, performed a split of the PETG share (in a ratio of 1:20) in accordance with the resolution of the 34th General Meeting following the entry into force of the resolution on the amendment of the Articles of Association, through the entry of the amendment of the Articles of Association in the court register, the corporate exchange act and the prescribed procedures in the Central Register of Securities at the KDD d.o.o. and the Ljubljana Stock Exchange.
The 34th General Meeting of Petrol d.d., Ljubljana, held on 21 April 2022, at the proposal of the Management Board and the Supervisory Board of Petrol d.d., Ljubljana, adopted a resolution on the PETG share split. The share capital of Petrol d.d., Ljubljana, in the amount of EUR 52,240,977.04 was divided into 2,086,301 ordinary registered no-par value shares. The General Meeting adopted a split ratio of 1:20, which means that the total number of PETG shares increased by a factor of 20 from 2,086,301 to 41,726,020 as a result of the amendment of the Articles of Association and the split. The share capital of Petrol d.d., Ljubljana, amounting to EUR 52,240,977.04 remained unchanged following the distribution of PETG shares.
After being on average higher at the end of 2021 than at the end of 2020, share prices mostly declined in 2022. Such share price movements on the Ljubljana Stock Exchange in 2022 were significantly affected by the escalation of tensions and the war in Ukraine, as well as by the energy crisis. This was also reflected in the SBI TOP index, which lost 16.9 percent relative to the end of 2021, reaching 1,046.1 points at the end of 2022.
After an initial rise in Petrol’s share price at the beginning of 2022, the share price declined later in the year. The share price reached EUR 20.0 at the end of 2022 and was 21.3 percent lower than at the end of 2021.
websites of the Ljubljana Stock Exchange, share register of Petrol d.d., Ljubljana, Petrol Group’s 2022 financial statements.
The average price of Petrol’s shares, which stood at EUR 23.89 in 2022, was up 14.7 percent year-on-year. The closing share price ranged between EUR 17.70 and EUR 28.10 in 2022.
| Closing price and the volume of trading in Petrol’s shares in 2022 | 2022 (recalculation according to the distribution of shares) | 2021 (recalculation according to the distribution of shares) | 2021 |
|---|---|---|---|
| Total shares outstanding | 41,726,020 | 41,726,020 | 2,086,301 |
| Highest closing price for the year | 28.10 | 25.80 | 516.00 |
| Lowest closing price for the year | 17.70 | 16.25 | 325.00 |
| Average closing price for the year | 23.89 | 20.83 | 416.68 |
The volume of trading in Petrol’s shares at the Ljubljana Stock Exchange amounted to EUR 52.3 million in 2022, including batch trading (totalling EUR 12.7 million), and was down 7.0 percent from 2021. The turnover of the Petrol share, excluding bundles, totalled EUR 39.5 million in 2022, which was 48 percent more than in 2021.
The trading in Petrol’s shares accounted for 12.1 percent of the Ljubljana Stock Exchange total trading volume, which stood at EUR 430.9 million, and also 12.1 percent of the stock market’s share trading volume.
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 4.4 million.
The market capitalisation of Petrol d.d., Ljubljana as at the last trading day of 2022 totalled EUR 834.5 million, which accounted for 10.9 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 2022.
In 2022, Petrol’s shares were again one of the most traded among those listed on the Ljubljana Stock Exchange.
The Petrol Group’s earnings per share (EPS) attributable to the owners of the parent company in 2022 stood at EUR 0.11 and its cash earnings per share (CEPS) at EUR 2.45. The return per share calculated by comparing the closing share price as at the end of 2022 and the closing share price as at the end of 2021 was negative and stood at -21.3 percent. Combined with the dividend yield of 5.9 percent, the total return per share stood at -15.4 percent in 2022.
The ratio between the shares’ market price and book value as at the end of 2022 – the latter amounting to EUR 20.61 in the case of the Petrol Group – was 0.97 (P/BV), which was lower than at the end of 2021. The ratio between the shares’ market price as at the end of 2022 and the Petrol Group's earnings per share stood at 181.9 (P/E).
The structure of Petrol d.d., Ljubljana share capital changed slightly in 2022 compared to the end of the previous year. The largest single shareholder is Clearstream Banking SA – client account with 6,467,732 shares. It is followed by the Slovenian Sovereign Holding with 5,299,220 shares, the Republic of Slovenia with 4,513,980 shares and Kapitalska družba d.d. with 3,452,780 shares. Other large single shareholders include OTP banka d.d. – client account, Erste Group Bank AG - PBZ Croatia OsigurVizija Holding, d.o.o., Vizija Holding Ena, d.o.o. and Perspektiva FT d.o.o.
At the end of 2022, 12,677,587 shares or 30.4 percent of all shares were held by foreign legal or natural persons. Compared to the end of 2021, the number of foreign shareholders increased by 3 percentage points, while in 2022, the total number of shareholders decreased from 21,730 as at the end of 2021 to 21,203.
| No. of Shares | in % | No. of Shares (recalculation according to the distribution of shares) | in % | |
|---|---|---|---|---|
| Slovenski državni holding, d.d. | 5,299,220 | 12.7% | 5,290,320 | 12.7% |
| Republic of Slovenia | 4,513,980 | 10.8% | 4,513,980 | 10.8% |
| Kapitalska družba d.d. together with own funds | 3,642,789 | 8.7% | 3,650,860 | 8.7% |
The prospectus of the company Petrol d.d., Ljubljana, which has been prepared for the purpose of listing its shares on the stock exchange, is published on the Company’s website. All changes to the prospectus are published in the Company’s strategy document, annual reports of Petrol d.d., Ljubljana and its public announcements available from the Company’s website http://www.petrol.si/ and the website of the Ljubljana Stock Exchange https://seonet.ljse.si/.
The General Meeting of Petrol d.d., Ljubljana did not adopt any resolutions in 2022 regarding the contingent increase in share capital.
Petrol d.d., Ljubljana did not repurchase its own shares in 2022. As at the last day of 2022, the number of own shares stood at 614,460, representing 1.5 percent of the share capital. This includes 494,060 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 2022 and was EUR 7.3 million lower than their market value on that date. The remaining 120,400 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 into the Petrol Group. Own shares of Petrol d.d., Ljubljana, in total 722,840 (without the shares of Geoplin d.o.o. Ljubljana), were purchased between 1997 and 1999 (this figure is recalculated to the number of shares after the split; the number of shares before the split was 36,142). 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.
In accordance with a resolution of the 34th General Meeting held on 21 April 2022, the Management Board of Petrol d.d., Ljubljana is authorised to acquire own shares within 12 months from the effective date of the resolution. Under this authorisation, a maximum number of own shares may be acquired so that the total percentage of the shares acquired based on this authorisation does not exceed, together with other own shares already held by the
| Category | 31. December 2022 | Percentage | 31 December 2021 | Percentage |
|---|---|---|---|---|
| Domestic institutional investors and other legal entities | 5,906,011 | 14.2% | 7,084,640 | 17.0% |
| Foreign legal entities | 12,628,247 | 30.3% | 11,378,840 | 27.3% |
| Private individuals (domestic and foreign) | 9,121,313 | 21.9% | 9,192,920 | 22.0% |
| Own shares | 614,460 | 1.5% | 614,460 | 1.5% |
| Total | 41,726,020 | 100.0% | 41,726,020 | 100.0% |
| Name and Surname | Position | Shares owned | Equity share |
|---|---|---|---|
| 1. Janez Žlak | President of the Supervisory Board | 0 | 0.0000% |
| 2. Borut Vrviščar | Deputy President of the Supervisory Board | 0 | 0.0000% |
| 3. Aleksander Zupančič | Member of the Supervisory Board | 0 | 0.0000% |
| 4. Alenka Urnaut | Member of the Supervisory Board | 0 | 0.0000% |
| 5. Mladen Kaliterna | Member of the Supervisory Board | 0 | 0.0000% |
| 6. Mário Selecký | Member of the Supervisory Board | 0 | 0.0000% |
| Internal members | 1,760 | 0.0042% | |
| 1. Marko Šavli | Member of the Supervisory Board | 1,760 | 0.0042% |
| 2. Alen Mihelčič | Member of the Supervisory Board | 0 | 0.0000% |
| 3. Robert Ravnikar | Member of the Supervisory Board | 0 | 0.0000% |
| Name and Surname | Position | Shares owned | Equity share |
|---|---|---|---|
| 1. Nada Drobne Popović | President of the Management Board | 80 | 0.0002% |
| 2. Matija Bitenc | Member of the Management Board | 0 | 0.0000% |
| 3. Jože Bajuk | Member of the Management Board | 0 | 0.0000% |
| 4. Jože Smolič | Member of the Management Board | 0 | 0.0000% |
| 5. Zoran Gračner | Member of the Management Board and Worker Director | 0 | 0.0000% |
Company, 2 percent of the Company’s share capital. The Company may acquire its own shares through transactions entered into on a regulated securities market, at the then prevailing market price. The Company may also acquire its own shares outside a regulated securities market. When acquiring shares on a regulated or unregulated securities market, the purchase price of the shares may not be less than 50 percent of the book value of the share, calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts. The purchase price of the shares may also not exceed 11 times the earnings per share (EPS) calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts. Pursuant to Article 381(3) and (4) of the Companies Act (ZGD-1), the Company may reduce the share capital (once or successively) by withdrawing own shares acquired pursuant to this authorisation (but not own shares acquired earlier) in a simplified procedure and against other profit reserves with the consent of the Supervisory Board. The Company may only use its own shares acquired pursuant to this authorisation in accordance with this resolution. The resolution entered into force on 30 November 2022.
A shareholder policy that is based on the long-term maximisation of returns for shareholders is one of the cornerstones of Petrol’s development strategy. Petrol’s management board 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. The dividend policy target for the 2021-2025 strategic period is 50 percent of the Group’s net profit, taking into account the investment cycle, Group indicators and the achieved objectives. In accordance with a resolution of the 34th General Meeting of 21 April 2022, Petrol paid out in 2022 a gross dividend of EUR 30.00 per share for 2021, taking into account the number of Petrol shares before the split.
| Period | Gross dividend per share |
|---|---|
| 2016 | EUR 14.00 |
| 2017 | EUR 16.00 |
| 2018 | EUR 18.00 |
| 2019 | EUR 22.00 |
| 2020 | EUR 22.00 |
| 2021 | EUR 30.00 |
The accumulated profit of Petrol d.d., Ljubljana, as determined in accordance with the Companies Act (ZGD-1), stood at EUR 61.85 million in 2022.
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 2022. In March and August, we participated in the online conference of the Ljubljana Stock Exchange, and in May and November 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. In May and October, we took part in the “Trade on the Stock Exchange” event organised by the Ljubljana Stock Exchange.
All information relevant to the 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].
highest turnover, price increase, turnover increase and number of days traded in 2022. The award was presented on behalf of Petrol d.d., Ljubljana to Matija Bitenc, Member of the Management Board of Petrol responsible for Finance, Information and Risk.
“This award is proof that we have successfully coped with the challenging economic circumstances in 2022 and that we have maintained investor confidence despite the energy crisis. At the same time, it is also a confirmation that the decision to split the PETG share to attract new investors and increase the share’s liquidity was the right one,” said Matija Bitenc, Member of the Management Board of Petrol, upon receiving the First Listing Share of the Year Award.
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 2022 the Audit Committee received quarterly reports on all the 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 that 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 sales revenues above USD 2 billion.
In 2022, Internal Audit continued to carry out certain procedures to improve the quality of work:
2022 was a year full of business challenges, from the acceleration of digitisation and process automation, to external influences (war in Ukraine, inflation, multiple regulatory requirements, etc.), which was also reflected in a tremendous increase in requests for changes and upgrades to information systems and IT solutions.
We have accelerated the pace of our planned IT transformation. Following the application to the call for tenders “Digital Transformation of the Economy” of the Ministry of Economic Development and Technology (under the “Recovery and Resilience Plan” national programme) in September 2022, the consortium of Petrol d.d., Ljubljana (as lead partner), Smart Cargo d.o.o. and Špica International d.o.o. has been awarded a grant to implement the “Digitisation of the Oil&Gas E2E Supply Chain” project. Together with our partners and the selected SAP solution implementation provider, we expect to lay an important foundation for the Petrol Group’s future operations in the next 14 months. The project will digitise and upgrade the Company’s key core processes, from the procurement of petroleum products to their distribution.
In parallel with other activities, Petrol d.o.o., Ljubljana issued a tender for the selection of a SAP Oil&Gas service provider in September 2022. The selection process is in its final stages.
At the beginning of 2022, following the preliminary work carried out in the last quarter of 2021, we started to work intensively on the IT integration of E 3, d.o.o. and the migration of IT support to the Petrol information system. E 3, d.o.o.’s operations were fully migrated to the Petrol information system in October 2022 (SAP, CRM, portal, document system).
In February 2022, we made it possible for customers to shop via a new online shop (eShop B2C), developed on a modern technology platform, which brings many improvements to both business users in the 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. During 2022, we have been upgrading the solution with new/additional functionalities.
In early 2022, we developed IT support to enable the migration of Crodux derivati dva d.o.o. service stations to the Petrol information system. The migration of 93 service stations of Crodux derivati dva d.o.o. into the Petrol information system was completed in October 2022. In November 2022, with the legal merger of the two companies, we completed the complex project of the acquisition of Crodux derivati dva d.o.o. by Petrol d.o.o. An important part of the project and of the future success of the business was the migration of Crodux derivati dva d.o.o.’s information system to Petrol’s information system. During 2022, we continued to develop and successfully upgraded Petrol’s information system with many new functionalities that enable quality support for the overall operations of the merged company.
We upgraded the retail solutions that support the operation of Petrol service stations in all markets by supporting the tax certification of invoices in Serbia.
We have also developed platforms that make it easier and more flexible to integrate new partner services into point-of-sale. As part of this, we offered customers the option to purchase AirCash prepaid cards and to pick up Express One parcels at points of sale in Slovenia. In 2023, we will build on the solutions and expand them to other Petrol markets.
In the first half of the year, we replaced the In-store mobile apps (technological and content overhaul). We have also developed a mobile checkout that enables new business models and new approaches to Petrol’s customers (both in-store and out-of-store).
To support 24/7 fuel delivery at service stations, a mobile app has been developed to enable out-of-hours fuel delivery.
The dynamics of changes in goods prices at service stations dictate the need for the clear and digitalised communication of prices to customers. In 2022, we implemented the integration of a platform for the digitalisation of the display of prices of goods in stores (electronic price tags). The solution is currently in use at 38 Petrol points of sale.
Changing fuel prices and adapting to the business environment requires adequate IT support. To this end, the Dynamic Pricing system has been integrated with Petrol’s IS for fuel price management.
At the beginning of the year, we introduced the SAP Ariba software solution to support our procurement processes, which was successfully integrated with our back-office systems.
In May, we successfully completed the upgrade of the entire SAP system to the latest version, which allows us to track the development and implementation of the next steps - SAP projects.
In the second half of 2022, there were an extraordinary number of regulatory requirements in the area of energy sales on the networks, especially in the area of electricity and gas sales (Slovenia, Croatia, Serbia), which we successfully implemented.
For the digitalisation of sustainability certification, the VTA Biofuels solution was implemented and integrated into the Petrol information system.
We have started a technological, design and content redesign of the “Na poti” mobile application. The redesign will continue in 2023. With the redesigned app, we aim to offer users an even better shopping experience at Petrol points of sale.
We expanded the use of the Jira tool and through this solution, supported many additional processes, including the process of managing development needs.
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.
We have modernised and upgraded many existing and added some new integrations, thus improving the communication and speed of internal processes and processes with our partners. At the end of 2022, we completed a major upgrade and replacement of our Application Programming Interface (API) management platform.
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.
Petrol recognises the importance and complexity of the energy transition. We are pursuing an interim goal for the European Union to reduce emissions by at least 55 percent by 2030, the Regulation on green investments or Taxonomy Regulation and the 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.
Our goals until 2025 are ambitious:
The Petrol Group has a three-fold sustainable orientation:
Decarbonisation is carried out in four main areas:
We are greening the energy mix by using alternatives to conventional petroleum energy sources, so we are actively looking for and introducing more environmentally friendly fuels for conventional motor drives. These include sustainable biofuels, natural gas and, in part, liquefied petroleum gas. Biofuels are the most widespread group of alternative fuels and are currently the key energy source. We are also continuing to add additives to make conventional fuels more environmentally friendly. This is proven by Petrol’s Q Max fuel family, especially the Q Max iQ diesel fuel, which reduces greenhouse gas (GHG) emissions by 26 percent compared to conventional diesel fuels.
With e-mobility and the use of fuels that have lower emissions compared to petroleum fuels, we mainly reduce the greenhouse gas emissions that occur during the entire life cycle of the fuel per unit of energy. Such alternative fuels include liquefied petroleum gas and natural gas for vehicle propulsion.
We care for the health and safety at work of employees and provide customers with 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. Thanks to new digital channels, a broader range of energy products and a personalised offer, we are also helping our customers make the transition from traditional energy sources to cleaner renewable energy.
An important part of our digital story is e-learning, which has an indirect positive impact on the environment. We drove less due to remote learning and saved paper due to materials in electronic format.
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. We run a number of social responsibility projects, such as humanitarian actions and sponsorships.
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 operates four concessions for municipal wastewater treatment and manages and treats 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 throughout its lifecycle. We are introducing the use of recycled packaging materials for our own-brand products.
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 the efficient separation of waste at the source. The range of our activities and points of sale affects the diversity of the waste we handle. At all Petrol locations, waste is separated at source; the biggest challenge is motorway rest areas, which are used as a stopping point for passengers in transit.
The 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. As a partner to industry, the public sector and households, Petrol is taking a leading role in achieving environmental goals. All employees are part of Petrol’s commitment to remain competitive in the new conditions of transition to a greener future with sustainable readiness.
Through our actions, we contribute to the achievement of the sustainability goals of the United Nations. Sustainable development is one of the priorities of the Petrol Group. Due to its importance, the Petrol Group has been publishing independent sustainability reports every two years since 2012. 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 measures to contain the epidemic were relaxed in 2022, which helped facilitate the implementation of regular work processes.
At the end of 2022, there were 6,224 people employed within the Petrol Group and at third-party managed service stations, of whom 47 percent are abroad. Compared to the end of 2021, the number of employees in 2022 remains almost the same (13 fewer employees in total at the end of 2022).
At the end of 2022, the average age of Petrol Group employees was 40 years. 52 percent of employees were male and 48 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 best experts is the key to achieving our business goals. Attracting new top external staff, a diverse pool of in-house staff and scholarships constitute important components of the business growth plan.
During the recruitment process, all candidates are given equal treatment irrespective of gender, age or other circumstances. Acquiring the right staff is becoming increasingly challenging, which is why we look for candidates through different channels. We have set up our own recruitment database to find new staff quickly and efficiently. In recruitment and selection, we use various 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 to 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.
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.
The voluntary supplementary pension insurance has been part of Petrol’s salary policy since 2002. The scheme covers the employees of the parent company.
In 2022, after almost a year of negotiations with a group of Croatian labour negotiators, trade union members and the Workers’ Council, we signed the new Petrol Company Collective Agreement in Croatia, which regulates the rights and duties of employees at Petrol d.o.o. The new collective agreement is the result of a successful dialogue and cooperation with the social partners.
Performance is monitored through a performance management system that provides periodic feedback between the manager and the employee, so that employees can improve their performance. In 2022, 535 employees took part in annual interviews and 1,048 in quarterly interviews. The system of quarterly periodic monitoring and evaluation of individual performance provides managers with a useful management tool to guide their employees towards strategic goals and enables employees to have direct influence and accountability on the achievement of individual objectives and thus on the level of individual performance rewards.
In the autumn, we invited all the employees of Petrol d.d., Ljubljana, with the exception of point-of-sale employees, to complete a personal development plan. The decision to draw up a career plan is the first and most important step in actively managing one’s own professional and career development. At the same time, it is an opportunity to strengthen the employee-manager relationship, provides opportunities for open communication and feedback, and helps build trust and respect. In this way, we identified highly motivated employees and recognised them as promising or key to their processes. Based on development plans, we support motivated employees in their career development, and actively create an environment in which employees can realise their development plan and their potential.
In 2022, the Petrol Group delivered almost 122 thousand teaching hours, an increase of 42 percent compared to the previous year. On average, each Petrol employee received more than 19 hours of training. The increase is due to the release of the COVID-19 epidemic control measures, which meant that we were again able to organise more face-to-face training. The number of participants is still very high or higher than in the pre-COVID-19 period, with 32,000 participants. This is due to the introduction of more short e-courses for staff and external collaborators. On average, each employee in the Petrol Group attended at least 5 different courses.
Strategy In Action is a training programme designed to enhance strategic management skills. In cooperation with the IEDC International School in Bled, we have developed a training programme for the top and middle management of the Petrol Group and delivered the first module in 2022. The programme will continue in 2023, with 130 employees. Supporting activities (group learning, coaching, etc.) further promote interdisciplinary cooperation, project work and potential development.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
Professional Development of Managers is a two-year programme involving all operational managers who manage colleagues, delivered through skills training.
2022 was also a special year for training due to the upstream merger of Crodux derivati dva d.o.o. into Petrol d.o.o. and the integration of E 3, d.o.o. into Petrol’s information system. The induction of employees in the Croatian retail network took place with the help of an in-house trainer, both technically and in terms of skills. We also built a common culture and relationships around change, with the help of external contractors, motivational speakers and renowned lecturers, in order to make the integration process as smooth as possible. We also launched an Open Space programme for our Croatian colleagues and started Croatian and Slovenian business courses for support and business functions in both companies.
We enhanced compliance training by training all the managers on how to switch on the document sensitivity function. Corporate Integrity and How We Communicate at Petrol are regular e-courses for all new employees, and a new e-course on the new Personal Data Protection Act is in preparation.
Petrol d.d., Ljubljana has a full Family Friendly Enterprise certificate, for which we received the decision to maintain full certification for the next three years in February 2022, following a successful audit. The programme associated with this certificate includes a range of activities designed to maintain a balance between personal and professional life.
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. To everyone’s delight, after two years of measures to combat the COVID-19 epidemic, the Christmas show for our employees' children with Santa Claus was performed live again. In December, we also organised ice-skating for Petrol employees and their families at three different ice-skating rinks in Slovenia.
In 2022, for the sixth year in a row, we organised the Petrol Family Day with a varied programme, this time in cooperation with the AMZS Safe Driving Centre in Vransko. Over 680 Petrol employees and their family members responded to the invitation to Sunday’s gathering. The children’s programme was dedicated to road safety and entertained both adults with skill drives on the obstacle course and children with learning about electric scooters and bicycles. We enjoyed a rich programme of activities and a presentation of the quality of Petrol fuels.
With corporate volunteering called 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 since 2014.
In 2022, we focused on a variety of topics in our Healthy at Petrol programmes. In the Open Space we discussed the impact of hormonal imbalances on our lives, touched on healthy eating during COVID-19, looked at how to properly support our immune systems and how to stay healthy with a spring detox. In March, we hosted doctors from the Oncology Institute to discuss the hidden dangers of cervical and ovarian cancer and the importance of early symptom detection. In the context of cardiovascular risk factors, which are the leading cause of morbidity and mortality in adults, we focused on high blood pressure, high blood sugar and high blood fats, and how to significantly reduce the risks. In October, we focused on breast cancer prevention in women and the importance of regular monthly self-examination. In Ljubljana, we conducted a fast walking test with individual consultations with experts. Due to the high level of interest, we have expanded the tests and launched them regionally throughout Slovenia as part of the Connected in Awareness programme.
As part of the Connected in Awareness programme, we conducted three more major regional events:
In 2022, we continued to promote short active work breaks which took place:
At the same time, employees also had constant access to an in-house e-library, where they could watch short 2-, 5-, 7- or 10-minute videos with exercises to relieve the stress on the spine, joints and muscles that are most stressed during work.
During the summer months, the Petrol Tennis League took place, and in December we also held a programme where we discussed relationships and their impact on health.
As in the past two years, we provided individual counselling sessions with mental health counsellors and psychological support for victims of violence at points of sale.
A large part of our activities in 2022 was dedicated to the preparation and communication of additional measures to prevent the spread of COVID-19 infections and other respiratory illnesses and to ensure the safety of our employees as much as possible, as infections were still occurring.
In 2022, after two years, we again measured the organisational climate, satisfaction and commitment of Petrol Group employees. The survey has been helping us to systematically identify our strengths and areas for improvement on which to build further development since 2001.
The survey covered 5,319 employees of the Petrol Group. 3,052 employees provided their answers to the questionnaire and comments, representing a 59 percent participation rate.
The organisational climate among Petrol Group employees in 2022 was slightly higher than the average rating of employees in other Slovenian organisations, while satisfaction was rated at the same level. The highest-rated categories of organisational climate were employee attitudes towards quality, innovation and initiative, internal relations and motivation, and employee commitment. Employee satisfaction is driven by job stability, colleagues, line managers and working hours. Opportunities for improvement were identified in the areas of remuneration and career development, which were among the lowest-scoring areas.
The results of the engagement measurement showed the same level of engagement as in other Slovenian organisations.
of the desired employer, include the development and communication of workplace wellness programmes and programmes that build good communication and atmosphere in work environments, which we run as part of our programmes The Energy of Our Growth, The Energy of Our Responsibility and Our Energy Connects.
In 2022, in support of the implementation of the strategy, we continued with activities to connect a network of internal change ambassadors, who deepened the understanding of the strategy through their involvement in strategic initiatives. This way, management also obtains valuable feedback from employees, strengthens dialogue and gains a broader understanding of work areas. As part of internal communication in the area of building a desired employer, we presented the stories of our employees again in 2022 to consolidate the Company’s organisational culture, showcase jobs, networking stories and the stories behind the different faces and accomplishments and stories of creativity through staff profiles. Creativity was also boosted through internal contests, stories of courage and bringing people together. A more visible linking campaign in the strengthening of functional organisation, which was introduced across the region in early 2022, is the sharing of information about Petrol’s regional presence with the slogan Energy is us, together.
In internal journals, we presented managerial, organisational, process and business changes in more detail. A large part of our activities was devoted to communicating the changes to employees in the Croatian market, where, during the integration process of Crodux derivati dva d.o.o. into Petrol d.o.o., we set up a communication portal page Energija smo mi, zajedno, which aims to engage and connect employees. We shared all the relevant information and news on integration on the portal and organised several discussions and training events. In 2022, we also published on this portal all information related to the COVID-19 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 is successfully keeping up with the changes. We look for solutions that are healthier and safer for our employees.
All the 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 for 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 the staff in the Petrol Group. Particular attention is devoted to co-workers with reduced working capacity. Considerable attention is also paid 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 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.
By providing an excellent experience, we develop customer relationships, increase loyalty, promote ambassadorship, 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, and the importance and intertwining of points of contact.
For years, the Petrol Group 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. In the Petrol Group, 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 are key elements in all categories/areas, are as follows:
All these 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.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
The market situation, both in energy products and fuels, where we faced high price increases and supply difficulties in 2022, and in energy solutions, where we faced high demand from all suppliers, is reflected in the changed expectations of our clients and customers.
The satisfaction survey is one of the key strategic research activities that we have been implementing at Petrol for a number of years in a row, which provides a deeper insight into the customer, their expectations and satisfaction, which in turn is an important source for defining activities to improve the customer experience and thus increase customer satisfaction.
Despite the difficult market conditions in 2022, we have maintained Petrol customer satisfaction at most points of contact at a high level.
The 2022 Customer Satisfaction Survey, conducted for the 4th year in a row, shows that price has the biggest impact on final customer satisfaction, with price increasing in importance in 2022. The rising prices of energy products and fuels and the general increase in prices that consumers and customers faced in 2022, even outside our business areas (general inflation), had an impact on poorer consumer sentiment, which in turn led to a widespread drop in satisfaction in other segments. The most noticeable drop in satisfaction was in the energy product segment, where there was also a drop in other providers, while the greatest stability and high level of satisfaction over time was achieved in the digital channels (apps, online shop) and in the contact centre, which is one of the key points of contact for customer care.
In 2022, we measured the satisfaction of Petrol’s customers and the customers of competitors in key areas of the Croatian market. The highest satisfaction in the Croatian market was expressed by users of the Petrol Contact Centre and Petrol e-charging stations, while Petrol is considered by customers to be the best among all the competitors at resolving complaints.
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 the Petrol Group’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 2022. Excellent user experience and emotional imprint are becoming increasingly important, with the 2022 measurement showing the highest growth in importance on these two dimensions. User experience has proven to be Petrol’s biggest advantage for many years. In 2022, we have strengthened it further.
Source: Brand Strength Survey 2022 and 2021, general public, Slovenia; n = 1,000.
In the SEE markets, where the Petrol Group is not the leading player, our strongest dimension remains our User Experience, and by far the highest awareness among all the assessed attributes is achieved by the friendliness of our employees.
In all markets (with the exception of Serbia), Petrol has significantly improved its preference rate, which generally reflects a good customer experience. Compared to 2021, 9 percent more of the general public in Slovenia, where we have held the leading position for many years, would choose Petrol over a competitor, given all the available service stations.
Source: Brand Strength Survey 2022 and 2021, general public Slovenia, Croatia, Serbia, Bosnia and Herzegovina and Montenegro; n => 1,000.
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 more 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 the Petrol Group’s sales network is present with excellent communication. As a result, we have increased awareness that Petrol has service stations with quality fuel by 8 percent in 2022.
We have been measuring transaction satisfaction for several years using the internationally established tNPS (Transactional Net Promoter Score) index. It enables us to monitor and respond to customer feedback on a daily basis on all the 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 2022 we received more than 26 thousand ratings. In 2023, we are expanding the measurement of tNPS 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. The Petrol Group 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.
of this has had the effect of increasing consumer sensitivity and concern, which is also evident in the responses we regularly monitor through the tNPS survey. As already shown in some areas in the Satisfaction Survey, the tNPS survey has shown a moderation in the growth in satisfaction, which has remained at a high level for the last two years.
Growth moderating over the last 2 years and satisfaction at a high level.
Regardless of the circumstances and the difficult market conditions, which were particularly evident in 2022, both in the fuel market and especially in the energy products market, more than 80 percent of the customers are our promoters, who express high levels of satisfaction with the friendliness and helpfulness of employees at service stations.
Source: Transaction Satisfaction (tNPS), 2022, n = 26,075.
We listen to the users and get to know their wishes and needs in detail. Most improvements and the 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 points and test ideas and prototypes at all stages of development of a process, service or product.
With this kind of agile mindset and approaches to innovation and re-innovation, we have laid the foundations for the renewal of our loyalty programme in 2022. In addition to end-customers, we also invited Petrol employees to co-create, both at service stations and in office buildings. Members of the Petrol Research Panel are always invited to test and innovate, as they are our invaluable source of inspiration for important improvements.
The Petrol’s Research Panel has been active in Slovenia since 2018. We have over 4,000 members in the community, with over 200 new members joining in the last year. They helped us decide on the new look of the service stations, described their driving habits, co-created the mobility package, evaluated the creative solutions in the pipeline and co-designed them according to their feelings and perception of communication. We learned about their lifestyle and values, and wanted to understand their ways of giving. One of the most important and in-depth surveys was dedicated to the redesign of the Petrol Club loyalty programme, where we also considered the opinions of our panellists.
Despite the change in people’s mobility behaviour due to the energy crisis and the increase in work from home, Petrol Club members remained active in 2022 in accessing and using the benefits available to them in the Petrol Club. Membership of the Petrol Club is growing year on year. Despite the widespread membership in Slovenia, the number of members of both Petrol Club payment card holders and Petrol Club loyalty card holders has increased by 4 percent per year compared to 2021.
Golden Points remain the main currency of the Petrol Club and were accumulated on Petrol Cards through purchases or rewarded actions by 16 percent more than in 2021. The share of Golden Points redeemed in 2022 decreased by 9 percentage points due to the discontinuation of the energy product rebates in the second half of the year, as a result of regulated sales prices that were lower than the purchase prices of energy products.
In order to offer members of our loyalty family the best possible user experience and to make it easy for them to understand what they can redeem their Golden Points for, in 2022 we continued with direct communication via email and SMS, joined by more content-rich messages via the Viber app and notifications in the “Na poti” mobile application. Indirect communication with our customers continued to take place through our and our partners’ social networks and advertising. We also continued publishing the Petrol Club catalogues, which have been enriched with new content, and we redesigned the Petrol Club website.
available for Golden Points in the online shop and in-store, we also send our members a message once a month, where they can find in one place all the benefits and discounts available to them in that month. We managed targeted emails more efficiently and segmented our messages more effectively in 2022, achieving an increase of more than 23 percent in the share of emails opened by users.
Our members can also always check the applicable discounts and benefits available to them at any given time on the updated www.petrol.si/petrol-klub website, whether concerning a purchase in the Petrol eShop or at selected points of sale or partners. It also lists the possibilities of donating Golden Points to a good cause and the benefits that are available to members on the Petrol Club card in a given period. The latest issue of the Petrol Club catalogue is also available on the website. Purchases with Golden Points represent on average 67 percent of the sale of goods and services from the Petrol Club catalogue.
2022 was marked by two strong donation campaigns. In the first one, at the beginning of 2022, together with members of the Petrol Club, we collected Golden Points for young athletes from socially disadvantaged backgrounds as part of the Beijing Winter Olympics and, thanks to the overwhelming response, the Botrstvo v športu programme was awarded a total of EUR 25,000. We continued collecting Golden Points for a good cause in December 2022, inviting Petrol Club members to help the clown doctors, the Red Noses. With the help of our customers, we have donated EUR 20,000 to inspire courage and joy in Slovenian hospitals and nursing homes.
The “Na poti” app has become even more user-friendly; in addition to simply paying for fuel without entering the service station, the biggest increase in usage has been in the donation of Golden Points. A quarter of all those who donated their Golden Points to the Red Noses did so via the “Na poti” app. At the end of 2022, 12 percent more Petrol Club members were using the “Na poti” app than the year before. In-app payments with the Petrol Club payment card are also on the rise. The number of users making payments with their card was 5 percent higher in 2022 than in 2021.
At Petrol’s Customer Support and Contact Centre, we take care of both retail and business customers. We are available to them through different communication channels all year round. The most popular communication channels are phone and email, but customers are increasingly contacting us via web chat, chatbots, mobile apps and video calls.
Meeting our customers’ expectations and satisfaction are key principles in our work, which is why we strive for simplicity and high-quality service. To this end, we regularly evaluate customer satisfaction through various surveys and methods. The goal in this area remains unchanged - to maintain a high level of customer satisfaction. We also have a system for capturing customer feedback (suggestions, comments, compliments) in place, which we regularly analyse and use to make improvements in all areas of our business. In 2022, significant attention was placed on process efficiency and making the best use of IT tools. We have therefore continued to make procedural and IT improvements to the handling of complaints. In addition, we have focused on unifying customer support processes and standards, as well as functional accountability across Petrol Group companies, to ensure a high level of service across the Group. We will continue to focus on these activities in 2023.
Caring for the environment is integrated into all aspects of the Petrol Group’s operation, as demonstrated by our ISO 14001:2015 certificate for our 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 to 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 they 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 the 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 into the air that are regulated by law and we monitor them as legally required.
Petrol carries out the operational monitoring and professional assessment of noise pollution in individual areas to reduce the nuisance of noise and to implement certain measures for its reduction. These activities are carried out in accordance with the Decree on limit values for environmental 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. When a 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 the schedule in accordance with the 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 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.
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 the 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 follow 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 2022, Petrol became the proud owner of a new eco-vehicle. It is a vacuum tanker designed to clean petroleum product tanks at Petrol’s storage facilities and points of sale, equipped with the latest technology to make our work safer, better and with a smaller carbon footprint. The vehicle, which cost almost half a million euros, consists of a Volvo chassis and bodywork manufactured entirely in Slovenia by Vozila Fluid d.o.o. from Ajdovščina, with Petrol experts involved in the design and production. They used their expertise to design the project, technical solutions and adaptations to the equipment, and to supervise production. The result of this collaboration is a unique vehicle, fully tailored to Petrol’s needs.
Built to ADR (Agreement concerning the International Carriage of Dangerous Goods by Road) specifications, the new eco-vehicle is suitable for pumping, cleaning, vacuuming and transporting hazardous liquids. At the same time, it is equipped with all the safety and technological equipment for refuelling at petroleum product storage facilities, which significantly facilitates and speeds up the commissioning of metering lines after construction, reconstruction or annual maintenance. The vehicle can also be used in the event of environmental accidents involving petroleum products.
An aspect of environmental pollution that the Petrol Group pays close attention to is light emissions into the environment. These include direct or indirect inputs of artificial light into the environment, which cause an increase in ambient light.
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 direct 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, the 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 protection against natural and other disasters, and critical infrastructure), documentation and environmental permits issued.
protection and rescue plans, practical fire and evacuation drills were organised in October and November 2022, the month of fire safety, in Petrol’s office buildings, at service stations and at fuel storage facilities.
In 2022, 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 2022 will be presented in the next Sustainability Report of the Petrol Group, which is expected to be released 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 d.d., Ljubljana 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 storing renewable energy sources.
In the Petrol Group, ensuring the maximum quality is a fundamental principle of our operations. Thanks to our specialist services and support, we maintain our status as a leading energy company in Slovenia, which has an important impact on the development and introduction of new technologically 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), plays an important role in this process. At the end of the year 2022, Petrol Laboratory had 52 accredited test methods for petroleum product testing.
Operating as part of Petrol d.d., Ljubljana 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 inspections) 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.
Petrol d.d., Ljubljana is one of the first energy companies in Europe to receive the European quality certificate (EQTM), awarded by the European Organization for Quality (EOQ), for the Q Max family of fuels. To obtain certification, specific requirements are needed, both for the product and for the Company.
| Company | Quality management system | Environmental |
|---|---|---|
| Company | ISO 9001:2015 | ISO 14001:2015 | ISO 50001:2018 | SIST EN ISO/IEC 17025:2017 | SIST EN ISO/IEC 17020:2012 | EQTM, ISCC, AEO*** | RC* | FSC** |
|---|---|---|---|---|---|---|---|---|
| Petrol d.d., Ljubljana | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Petrol d.o.o. | ✓ | ✓ | ||||||
| Petrol Geo d.o.o. | ✓ | |||||||
| Beogas d.o.o. | ✓ | |||||||
| Petrol d.o.o. Beograd | ✓ | ✓ | ✓ | ✓ |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022
** Petrol d.d., Ljubljana is a holder of an FSC certificate for FSC certified product sale. 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 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.
With advanced solutions in the field of fuel additives, Q Max ensures that the interiors 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 under the most unfavourable climatic conditions (low temperatures).
In 2022, in the field of Q Max fuel development, Petrol continued to adapt fuels to better environmental acceptability by selecting and including modern sustainably produced ingredients, which can further reduce the negative effects of fuels on the environment and potential effects on global warming.
In our business and social activities, we want to actively influence and help solve environmental, social and other challenges in the environment in which we live and operate. In 2022, 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 the region. We sponsor individuals, clubs, associations and sports events at the national and international levels. By supporting sports and the arts, we strengthen our reputation and make our brands more visible.
Slovenia and the Biathlon Association of Slovenia stands out. We have been sponsoring national teams of all ages for many years. We are also a personal sponsor of some of the best athletes in these winter sports, including Žan Kranjec, Jakov Fak, Žan Košir and the promising young biathletes Alex Cisar and Lena Repinc. In 2022, we also traditionally sponsored the Pokljuka biathlon world cup competition, and the Rogla snowboarding world cup competition, the New Year’s Eve Girls’ Ski-Jumping Tournament in Ljubno and the FIS Ski-Flying World Championship Finals in Planica.
The Petrol Group is no less present in summer sports. As one of the biggest sponsors, we support the Basketball Association of Slovenia, the Football Association of Slovenia, the Volleyball Association of Slovenia, the Tennis Association of Slovenia, the Gymnastics Association of Slovenia and many larger and smaller clubs, including the Cedevita Olimpija Basketball Club, the Jesenice Hockey and Skating Association, the Bravo Football club, the "Z`Dežele" Sankaku Celje Judo club, the Domžale Helios Suns Basketball club, the Branik Maribor Tennis club, the Ježica Women’s basketball club, the Dobovec Futsal club and other smaller sports teams.
As in the winter, we supported several major sporting events, including the biggest sporting event to be held in Slovenia in 2022 - the Men’s Volleyball World Championships. In addition, as the largest sponsor and thus also the name holder, we have supported the Petrol Q Max Petrol Ilirska Bistrica Mountain Speed Race, as well as several smaller sporting events such as the Triglav Run, Active Posočje 2022, the Four Bridges Run, and the Sporto Conference.
In addition to the above-mentioned winter athletes, the Petrol Group is a personal sponsor of the regular Dakar Rally participant and motocross rider Simon Marčič, triathlete Denis Šketak and promising young tennis player Maša Viriant. Our 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 (24th Energy Managers’ Days, 27th Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022, 166 Public Javno Slovene Marketing Conference, 24th Portorož Business Conference, 4th Local E-mobility Conference, Slotrib 22, GS1, 16th and 17th Slovenian Economy Summit, 13th International Conference “Corporate Security Days 2022”, 18th European Energy Market Conference, Energy and Environment 22, 24th SKOJ, 16th Strategic Trade Conference, BledCom 2022, 23rd Days of Conservation Science, Bled Strategic Forum 2022, 11th International Conference IIA Slovenia and others).
We were also active as a sponsor in the region in 2022. In Croatia, we sponsored the Croatian Olympic Committee (HOO), the Zadar Basketball Club and SOC - Supercars Owner Circle. In Bosnia and Herzegovina, we supported the “Naš Tim” ski club. In Serbia, we sponsored the “Lokomotiva” Tennis Club and the Arena Niš Football Club last year.
Part of our social footprint are corporate volunteering activities, which we have been nurturing since 2012 and through which we give back to society through our volunteer work, knowledge and increasing material aid. In 2022, 85 employees from Slovenia took part in nine work campaigns in the Corporate Volunteering Week We Give Back To Society. Petrol contributed 170 work hours in these work campaigns, with volunteers contributing another 170 of their own volunteer hours.
2022 marked the twelfth 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 about the importance of blood donation throughout Slovenia, invite new blood donors and inform existing donors about healthcare needs.
In 2022, we also celebrated the twelfth 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 200 euros. Through this project, we have supported a total of 129 different humanitarian projects implemented by non-profit organisations. As part of this project, we have donated a total of more than EUR 750,000 to local humanitarian projects in twelve years.
In 2022, we extended our helping hand to the Moste-Polje Association of Friends of Youth. As part of Petrol’s Santa Claus campaign, employees in Slovenia collected 208 New Year’s presents for children from disadvantaged backgrounds.
In 2022, we also supported several projects in the region with donations. In Slovenia, the Glassy Classy bottles project raised over EUR 1,700 for the Miroslav Cerar Foundation, which supports athletes from socially disadvantaged backgrounds. Through the collection of Golden Points, we have donated EUR 20,000 to the Red Noses and through the Ski Cents campaign, we raised over EUR 44,000 by the end of 2022, which we will donate to the Slovenian Ski Association for young ski hopefuls.
In Croatia and Serbia, a total of EUR 50,000 was donated to the Dubrava Clinical Hospital in Zagreb, the Biokovo Fire Brigade, the Dinara, Zagora and Arena Niš football clubs, the Sveti Ivan and Ogulin motorcycle clubs and the Spužvar Sailing Club.
As at 31 December 2022, the Petrol Group diagram does not include inactive companies.
| Fuels and petroleum products | Merchandise and services | Energy and solutions | Other | The parent company |
|---|---|---|---|---|
| Petrol d.o.o. | (100%) |
|---|---|
| Petrol javna rasvjeta d.o.o. | (100%) |
| Adria-Plin d.o.o. | (75%) |
| Petrol BH Oil Company d.o.o. Sarajevo | (100%) |
| Petrol d.o.o. Beograd | (100%) |
| Petrol Lumennis PB JO d.o.o. Beograd | (100%) |
| Petrol Lumennis VS d.o.o. Beograd | (100%) |
| 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 Lumennis KI JO 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 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, SLOVENSKA ENERGETSKA DRUŽBA, D.D., LJUBLJANA
President of the Management Board: Nada Drobne Popović; Members of the Management Board: Matija Bitenc, Jože Bajuk, Jože Smolič; Member of the Management Board and Worker Director: Zoran Gračner
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 principal activity is selling fuels and petroleum products, merchandise and services, and energy and solutions.
With its 318 service stations, it has a 56 percent share of the Slovenian retail market in petroleum products.
In 2022, the company Petrol d.d., Ljubljana generated EUR 7.3 billion in sales revenue, which is 106 percent more than in 2021, mainly due to the higher prices of oil, electricity and other energy products, as well as good sales of fuels and petroleum products.
Petrol d.d., Ljubljana’s sales revenue was generated through the sale of:
Depreciation totalled EUR 46.5 million, on a par with the previous year. Other costs amounted to EUR 8.1 million.
Other operating revenue stood at EUR 6.4 million, which was 29 percent more than in 2021. The gain on derivatives totalled EUR 525.1 million or 95 percent more than in 2021. Other operating expenses stood at EUR 0.03 million. Loss on derivatives totalled EUR 551.3 million or 133 percent more than in 2021.
The company’s net profit totalled EUR 17.9 million, a decrease of EUR 68.2 million from 2021.
Finance income from dividends paid by subsidiaries, associates and jointly controlled entities stood at EUR 1.7 million, a decrease of EUR 1.6 million relative to 2021. Net finance expenses stood at EUR -1.7 million.
In 2022 Petrol d.d., Ljubljana’s net profit on derivatives was down by EUR 2.0 million and EUR 3.4 million lower loss from net exchange rate differences relative to 2021. In 2022, there were no impairments of investments and goodwill. Net interest expenditure amounted to EUR 5.9 million, on a par with the previous year. Loss allowances for financial receivables reversed were EUR 0.3 million higher compared to 2021. Net other finance income was up EUR 2.6 million in 2022 compared to 2021.
Pre-tax profit totalled EUR 17.8 million or EUR 65.6 million less than in 2021. The net profit of Petrol d.d., Ljubljana for the year 2022 stood at EUR 19.4 million, down 47.1 million relative to 2021. The total assets of Petrol d.d., Ljubljana as at 31 December 2022 equalled EUR 2.1 billion, which was 13 percent more than on 31 December 2021. Of this, non-current assets amounted to EUR 1.2 billion, which is 3 percent less than on 31 December 2021. Current assets amounted to EUR 921.5 million, which is 42 percent less than on 31 December 2021, mainly due to higher operating receivables.
The equity of Petrol d.d., Ljubljana as at 31 December 2022 equalled EUR 598.0 million, which was 2 percent less than at the end of 2021.
| Petrol d.d., Ljubljana | (EUR million) | 2022 | 2021 | 2022/2021 Index |
|---|---|---|---|---|
| Adjusted gross profit | 339.1 | 360.5 | 94 | |
| Labour costs, including government grants | 82.1 | 78.3 | 105 | |
| Labour costs, excluding government grants | 82.2 | 78.7 | 104 | |
| EBITDA, including government grants | 67.4 | 147.0 | 46 | |
| EBITDA, excluding government grants | 67.4 | 146.6 | 46 | |
| Pre-tax profit, including government grants | 17.8 | 83.4 | 21 | |
| Pre-tax profit, excluding government grants | 17.8 | 83.0 | 21 |
THE PETROL ZAGREB GROUP
President of the parent company’s Management Board: Simona Kostrevc (since 1 December 2022), Boris Antolovič (until 30 November 2022); Members of the parent company’s Management Board: Vladimir Kuzmič, Niko Knez (since 1 December 2022); Procuration Holder of the parent company: Jože Smolič
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, Petrol d.o.o. purchased Crodux Plin d.o.o.’s LPG operations, while in January 2020, it acquired its electricity-trading operations. In October 2021, Petrol d.d., Ljubljana, after fulfilling the suspensive conditions, completed the acquisition of a 100 percent interest in the company Crodux derivati dva d.o.o. With the acquisition of Crodux derivati dva d.o.o., the Petrol Group acquired 93 service stations in Croatia. The Petrol Zagreb Group is active on the Croatian market in the sale of fuels and petroleum products, merchandise and services, and energy and solutions.
In 2022, the Petrol Zagreb Group sold 1,228.9 thousand tons of fuels and petroleum products, up 41 percent on the previous year. In 2022, the Petrol Zagreb Group generated a total of EUR 1,484.5 million in sales revenue, which is 102 percent more than in 2021. The Group generated EUR 1,507.9 million of sales revenue from the sale of fuels and petroleum products, EUR 136.4 million from the sale of merchandise and services and EUR 35.8 million from energy and solutions. Its operating profit stood at EUR 0.3 million in 2022, a decrease of EUR 30.3 million from the previous year. The Group’s net profit for 2022 totalled EUR -4.3 million, a decrease of EUR 24.8 million from 2021. The Petrol Zagreb Group operated 202 service stations at the end of 2022. The group’s equity totalled EUR 243.9 million as at 31 December 2022.
General Manager: Gregor Žnidaršič; Procuration Holder: Bojan Košir
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is selling fuels and petroleum products, merchandise and services in Bosnia and Herzegovina.
In 2022, the company sold 191.5 thousand tons of fuels and petroleum products, up 1 percent on the previous year. In 2022, Petrol BH Oil Company d.o.o. Sarajevo generated a total of EUR 236.0 million in sales revenue, which is 75 percent more than in 2021. The Group generated EUR 208.6 million of sales revenue from the sale of fuels and petroleum products and EUR 11.4 million from the sale of merchandise and services. Its operating profit stood at EUR 4.6 million in 2022, an increase of EUR 1.4 million from the previous year. The company’s net profit for 2022 totalled EUR 3.8 million, an increase of EUR 0.3 million from 2021. Petrol BH Oil Company d.o.o. Sarajevo operated 42 service stations at the end of 2022. The company’s equity totalled EUR 72.9 million as at 31 December 2022.
General Managers of the parent company: Uroš Bider, Miljko Vlačić; Procuration Holder: Aleš Zupančič
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., Petrol KU 2021 d.o.o. and Petrol Lumennis KI JO d.o.o., which are engaged in public lighting projects in Serbia. The Petrol d.o.o. company’s principal activity is selling fuels and petroleum products, merchandise and services in Serbia.
The volume of fuels and petroleum products sold in 2022 totalled 112.8 thousand tons, up 5 percent from the previous year. In 2022, the Petrol Beograd Group generated a total of EUR 132.5 million in sales revenue, which is 80 percent more than in 2021. The Group generated EUR 125.5 million of sales revenue from the sale of fuels and petroleum products and EUR 4.5 million from the sale of merchandise and services. Its operating profit stood at EUR 4.2 million in 2022, an increase of EUR 0.6 million from the previous year. The company’s net profit for 2022 totalled EUR 3.2 million, on a par with the previous year. Petrol d.o.o. Beograd operated 17 service stations at the end of 2022. The company’s equity totalled EUR 35.4 million as at 31 December 2022.
General Manager: Tadej Zorjan; Procuration Holder: Ignac Rupar
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is selling fuels and petroleum products, 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.
Director-General of the parent company: Matija Bitenc (since 21 October 2022), Aleš Zupančič (since 26 September 2022 until 20 October 2022), Vanja Lombar (since 3 January 2022 until 20 October 2022); General Manager of the parent company: Jože Bajuk (until 1 February 2022 and then since 21 October 2022); Procuration Holder of the parent company: David Štoka (since 26 September 2022)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 74.34%
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 1978. Its operations in the area of natural gas supply and services also extend abroad. To be able to ensure a 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 2022, 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 2022, the Geoplin Group sold 19.4 TWh of natural gas, generating EUR 1,350.2 million in sales revenue. The group’s net profit for 2022 totalled EUR -28.3 million. The net profit or loss attributable to Petrol d.d., Ljubljana amounted to EUR -21.1 million. The group’s equity totalled EUR 113.7 million as at 31 December 2022.
General Manager: Uroš Bider; Procuration Holder: Primož Kramer
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
Beogas d.o.o. Beograd is engaged in financing, designing and constructing distribution pipelines, but it also distributes natural gas in the Belgrade municipalities of Čukarica, Palilula and Voždovac, as well as in Pećinci since August 2015 and in Bačka Topola since June 2018. Beogas d.o.o. Beograd is the owner of 516.3 km of gas distribution network and 13,464 active gas connections.
In 2022, the company sold 362.6 thousand MWh of natural gas, up 1 percent on the previous year. In 2022, it generated EUR 13.6 million in sales revenue, up 6 percent on the previous year. The company’s operating profit stood at EUR 1.2 million in 2022, a decrease of EUR 1.2 million from the previous year. The company’s net profit for 2022 totalled EUR 1.1 million, a decrease of EUR 0.9 million from 2021. The company’s equity totalled EUR 22.5 million as at 31 December 2022.
General Managers of the parent company: 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 Tigar Petrol 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 2022, the Petrol LPG Group sold 61.9 thousand tons of liquefied petroleum gas, down 13 percent on the previous year. In 2022, it generated EUR 48.5 million in sales revenue, a year-on-year increase of 14 percent. The operating profit for 2022 totalled EUR 1.4 million, an increase of EUR 1.2 million from 2021. The group’s net profit for 2022 totalled EUR 1.1 million, which was EUR 1.3 million more than in the previous year. The group’s equity totalled EUR 11.7 million as at 31 December 2022.
Procuration Holder: Borut Bizjak
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; the management and development of district heating systems based on geothermal boreholes).
Petrol Geo d.o.o. generated EUR 4.0 million in sales revenue in 2022, up EUR 0.6 million on the previous year. The company’s operating profit stood at EUR 2.4 million in 2022, an increase of EUR 0.2 million from the previous year. The company’s net profit for 2022 totalled EUR 1.8 million, a year-on-year increase of EUR 0.5 million. The company’s equity totalled EUR 4.0 million as at 31 December 2022.
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, an agreement 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.
Procuration Holder: Tomaž Slavec (since 5 March 2022)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol Trade Handelsgesellschaft m.b.H sells petroleum products in Austria and neighbouring countries.
In 2022, the company sold 143.6 thousand tons of fuels and petroleum products. In 2022, it generated EUR 160.3 million in sales revenue, up EUR 101.3 million from 2021. Its net profit for 2022 totalled EUR 895.2 thousand. The company’s equity totalled EUR 2.5 million as at 31 December 2022.
E-mail: [email protected]; [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 2022, it generated EUR 4.7 million in sales revenue, its net profit totalling EUR 0.9 million. The company’s equity totalled EUR 12.7 million as at 31 December 2022.
Procuration Holder: Borut Bizjak (since 20 May 2022)
E-mail: [email protected]; [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 2022, the company generated EUR 735.6 thousand in sales revenue. Its net loss for 2022 totalled EUR 371 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR 297 thousand. The company’s equity totalled EUR 7.2 million as at 31 December 2022.
Procuration Holder: Borut Bizjak (since 18 January 2022)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 99.7518%
In 2022, the group generated EUR 824.8 thousand in sales revenue. Its net loss for 2022 totalled EUR -36.7 thousand. The net loss attributable to Petrol d.d., Ljubljana amounted to EUR -36.6 thousand. The company’s equity totalled EUR -1.9 million as at 31 December 2022.
General Manager: Leon Stare (since 30 June 2022), Primož Zupan (until 30 June 2022)
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In February 2018, Petrol d.d., Ljubljana became a 76 percent owner of MBILLS d.o.o. The company operates under the Petrol mBills brand, which stands for paperless and cashless payments. The app is an open mobile payment platform based on the mobile wallet. It can be used for paying bills at the cash desk, monthly bills, online shopping, money transfers and much more. In April 2020, Petrol d.d., Ljubljana increased its ownership interest in MBILLS d.o.o. from 91.04 percent to 100 percent.
In 2022, the company generated EUR 2.2 million in sales revenue. Its net loss for 2022 totalled EUR -1.1 million. The company’s equity totalled EUR 3.4 million as at 31 December 2022.
General Manager: Igor Jogan; Procuration Holder: Zoran Gračner
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. On 29 December 2022 Ekoen GG d.o.o. was merged into Ekoen d.o.o.
In 2022, EKOEN d.o.o. together with Ekoen GG d.o.o. generated EUR 557.1 thousand in sales revenue. Its net loss for 2022 totalled EUR -10.4 thousand. The company’s equity totalled EUR 728.4 thousand as at 31 December 2022.
General Manager: Igor Jogan; Procuration Holder: Zoran Gračner
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 2022, the company generated EUR 55.4 thousand in sales revenue. Its net loss for 2022 totalled EUR -4.9 thousand. The company’s equity totalled EUR 10.5 thousand as at 31 December 2022.
General Manager: Zdravko Čulig; Procuration Holder: Aleš Gruden
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 2022, it sold 198.1 million kWh of natural gas and distributed 248.6 million kWh of natural gas. In 2022, the group generated EUR 11.1 million in sales revenue. Its net loss for 2022 totalled EUR -264.0 thousand. The company’s equity totalled EUR 8.8 million as at 31 December 2022.
General Manager: Jože Smolič (since 30 November 2022), Darko Pahor (until 30 November 2022); Procuration Holder: Miha Vrbinc (since 3 January 2023)
E-mail: [email protected]; [email protected]
Ownership interest of Petrol d.d., Ljubljana: 100%
In 2022, E 3, d.o.o. sold 1,477 GWh of electricity and 7.4 GWh of heat. In 2022, the group generated EUR 211.8 million in sales revenue. Its net loss for 2022 totalled EUR -2.3 million. The company’s equity totalled EUR 12.2 million as at 31 December 2022.
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 2022, the company generated EUR 13.3 thousand in sales revenue. Its net profit for 2022 totalled EUR 7.1 thousand. The company’s equity totalled EUR 118.1 thousand as at 31 December 2022.
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 2022, the company generated EUR 66.8 thousand in sales revenue. Its net profit for 2022 totalled EUR 15.9 thousand. The company’s equity totalled EUR -69 thousand as at 31 December 2022.
General Managers: Borut Bizjak, Tomislav Benković, Slaven Tudić
Company Members: Petrol d.d., Ljubljana
E-mail: [email protected]; [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 2022, it generated sales revenues in the amount of EUR 4.2 million and net profit in the amount of EUR 0.8 million. The company’s equity totalled EUR 8.2 million as at 31 December 2022.
General Managers: Matevž Kustec (until 3 March 2023), Robert Surina (since 5 January 2023), Tomaž Novak (since 3 March 2023)
E-mail: [email protected], [email protected]
Ownership interest of Petrol d.d., Ljubljana for the 2022 financial year: 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. As of 12 January 2023, Petrol d.d., Ljubljana will acquire a further 23.04 percent interest in Atet d.o.o. and will become the 96 percent owner of Atet d.o.o. (100 percent of voting rights). 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 2022, the company generated EUR 3.5 million in sales revenue. Its net loss for 2022 totalled EUR 410.0 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR 299.2 thousand. The company’s equity totalled EUR 2.6 million as at 31 December 2022.
General Manager: Aleš Weiss
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 80%
In 2022, the company generated EUR 210.1 thousand in sales revenue. Its net profit for 2022 totalled EUR 65.2 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR 52.1 thousand. The company’s equity totalled EUR 581.4 thousand as at 31 December 2022.
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 2022.
General Managers: Verena Zidar, Mojca Logar (from 8 September 2022 until 8 March 2023), Peter Hrastar (since 8 March 2023)
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 2022 totalled EUR -299.4 thousand. The net profit for 2022, which belongs to the Petrol Group, totalled EUR -149.7 thousand. The company’s equity totalled EUR 178.2 thousand as at 31 December 2022.
General Manager: Aleš Ažman
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 25%
The company’s principal activity is cogeneration in thermal power plants and nuclear power plants. Its net loss for 2022 totalled EUR 3.7 million. The net profit for 2022, which belongs to the Petrol Group, totalled EUR 0.9 thousand. The company’s equity totalled EUR 4.9 million as at 31 December 2022.
Managers: Borut Bizjak, Slaven Tudić
E-mail: [email protected]
Ownership interest of Petrol d.d., Ljubljana: 50%
The company’s principal activity is electricity generation from wind. The company did not yet operate in 2022. At the end of 2022, the company’s equity totalled EUR -1.8 thousand.
Ownership interest of Petrol d.d., Ljubljana: 26%
Activities: The 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
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report
Statement of the Management Board’s Responsibility ........................................................ 185
…………………………………………………………………………………………...338
185
The Company’s Management Board is responsible for the preparation and fair presentation of the financial statements of the Petrol Group and Petrol d.d., Ljubljana, for the year ended 31 December 2022, including the related policies and notes, which, in its opinion, give a true and fair view of the development and results of operations and the financial position of the Company, together with a description of the principal risks to which the Company and other companies included in the consolidated financial statements, taken as a whole, are exposed.
The Management Board confirms that the appropriate accounting policies have been applied consistently in the preparation of the financial statements, that the accounting estimates have been made on the basis of fair value, prudence and good governance, and that the financial statements give a true and fair view of the state of affairs of the Group and the Company and the results of their operations for the year ended 31 December 2022.
The Management Board is also responsible for keeping proper accounting records, for taking reasonable precautions to safeguard property and other assets, and for certifying that the financial statements, including the notes thereto, have been prepared on a going concern basis and in accordance with the applicable law and International Financial Reporting Standards as adopted by the European Union.
The Management Board accepts and approves the financial statements of the Petrol Group and Petrol d.d., Ljubljana, including the related policies and notes, for the year ended 31 December 2022.
The tax authorities may audit the Company’s operations at any time within five years of the end of the year in which the tax was due. This may result in additional liabilities for tax, interest and penalties from corporate income tax (CIT) or other taxes and duties. The Company’s Management Board is not aware of any circumstances that could give rise to a material liability in this respect.
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 and Worker Director
Petrol d.d., Ljubljana, Dunajska cesta 50, 1000 Ljubljana, Slovenia
Ljubljana, 6 April 2023
PricewaterhouseCoopers d.o.o.
Cesta v Kleče 15, SI-1000 Ljubljana, Slovenija
T: +386 (1)5836 000, F:+386 (1) 5836 099, www.pwc.com/si
Matriculation No.: 5717159, VAT No.: SI35498161
The company is registered by District court in Ljubljana under the number 12156800 as well in to the register of the Auditing companies by Agency for Public Oversight of Auditing under the number RD-A-014/94. The amount of the registered share capital is EUR 34.802. The list of employed auditors is available at the registered office of the company.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
To the Shareholders of Petrol d.d., Ljubljana
In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of Petrol d.d., Ljubljana (the “Company”) and its subsidiaries (together - the “Group”) as at 31 December 2022, and the Group’s and the Company’s consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
Our opinion is consistent with our additional report to the Audit Committee dated 11 April 2023.
The Group’s and the Company’s consolidated and separate financial statements comprise:
We conducted our audit in accordance with International Standards on Auditing (ISAs) and Regulation (EU) No. 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities (the “Regulation”). Our responsibilities under those standards is further described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
We are independent of the Group and the Company in accordance with International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) and with the ethical requirements that are relevant to our audit of the consolidated and separate financial statements in Slovenia. We have fulfilled our other ethical responsibilities in accordance with those requirements and with the IESBA Code.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the Company and its subsidiaries are in accordance with the applicable law and regulations in Slovenia and that we have not provided non-audit services that are prohibited under Article 5(1) of the Regulation.
The non-audit services that we have provided to the Company and its subsidiaries in the period from 1 January 2022 to 31 December 2022 are disclosed in the note 6.5 to the consolidated and separate financial statements.
● We conducted audit work at 9 companies/groups of related companies in 4 countries.
● Our audit scope addressed 81% of the Group’s absolute value of underlying result.
● Impairment of investments in subsidiaries in the separate financial statements and impairment of goodwill in the consolidated financial statements.
● Measurement, derecognition, and recognition of liabilities due to the company Gazprom Export LLC (hereinafter: Gazprom) in the consolidated financial statements.
● Final business combination purchase price allocation (PPA) in the consolidated financial statements for 2022 arising from the acquisition of a controlling interest in the company Crodux derivati dva d.o.o. (hereafter: Crodux) in 2021.
● Recognising income and loss from derivatives in the consolidated and separate financial statements.
Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated and separate financial statements. In particular, we considered where Management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits we also addressed the risk of Management override of internal controls, including, among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated and separate financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group and the Company materiality for the consolidated and separate financial statements as a whole as set out in the table below. These, together with other qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, if any, both individually and in aggregate on the consolidated and separate financial statements as a whole.
| The Group: | EUR 7,420 thousand |
|---|---|
| The Company: | EUR 6,200 thousand |
The Company: approximately 2% of Gross profit (Sales revenue minus Cost of goods sold) of the Company.
We chose Gross profit (Sales revenue minus Cost of goods sold) as the benchmark because, in our view, it is the benchmark against which the performance of the Group and Company is most commonly measured by users and is a generally accepted benchmark. We chose the 2% threshold, which is within the range of acceptable quantitative materiality thresholds for this benchmark.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
Impairment of investments in subsidiaries in separate financial statements and impairment of goodwill in consolidated financial statements
See Note 4.b Significant accounting policies of the Company – Investments in subsidiaries, Note 4.k2 Significant accounting policies of the Company – Impairment of assets – Impairment of investments in subsidiaries and Note 3.e Significant accounting policies of the Group – Intangible assets – Goodwill.
The total value of investments in subsidiaries as at 31 December 2022 is disclosed in Note 6.19 in the financial statements – Investments in subsidiaries, and amounts to EUR 554,032,932; the total value of goodwill as at 31 December 2022 is disclosed in Note 6.15 in the consolidated financial statements – Intangible assets, and amounts to EUR 160,685,312.
Investments in subsidiaries and goodwill are subject to significant audit risk due to:
Our audit approach included significant audit procedures, including:
We also included an asset valuation expert in our audit team who helped us assess the methodology used and the use of discount rates.
Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
See Note 3.c 6 Significant accounting policies of the Group – Financial liabilities and Note 3.c 7 Operating liabilities and Note 3.p Significant accounting policies of the Group – Determination of fair value.
The total value of liabilities to Gazprom as at 31 December 2022 is disclosed in Note 6.39 in the financial statements – Current operating liabilities, and amounts to EUR 3,550,000. The total impact on profit or loss for 2022 from the derecognition and recognition of liabilities is the income recognition in the amount of EUR 88,592,000, which is disclosed in Note 6.3 Revenue – Other revenue.
Liabilities to Gazprom are subject to significant audit risk due to:
Our audit approach included significant audit procedures, including:
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
See Note 3.a
The purchase price allocation of the business combination in 2022 arising from the acquisition of a controlling interest in Crodux is disclosed in Note 6.1 in the financial statements – Business combinations. As disclosed in more detail in this Note, in 2021 Petrol Group made a purchase price allocation based on the provisional values of assets and liabilities, and in 2022 it made a final allocation based on the estimated fair value of the assets and liabilities of Crodux.
The business combination purchase price allocation in 2022 arising from the acquisition of a controlling interest in Crodux is subject to significant audit risk due to:
Our audit approach included significant audit procedures, including:
used in fair value determination; such as growth rates and EBITDA margins on which cash flows were based and assessing appropriateness of applied discount rates.
Assessing the appropriateness of disclosures in the consolidated financial statements related to the final purchase price allocation.
In our audit team, we also included an asset valuation expert who assisted in assessing the methodology used and the use of discount rates.
Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
See Note 3.c2 Significant accounting policies of the Group – Financial assets at fair value through profit or loss, and 4.d2 Significant accounting policies of the Company – Financial assets at fair value through profit or loss
The total value of Gain from derivatives in 2022 is disclosed in Note 6.9 Gain/(Loss) from derivatives and amounts to:
The total value of Loss from derivatives in 2022 is disclosed in Note 6.9 Gain/(Loss) from derivatives and amounts to:
Recognising gains and losses from derivatives is subject to significant audit risk due to:
financial statements and the related valuation of open positions as at 31 December 2022.
Our audit approach included significant audit procedures, including:
In our audit team, we also included an expert for IFRS 9 who assisted us with the accounting treatment of derivatives and the related valuation of open positions as at 31 December 2022.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
The Group engagement team carried out audit work on the Company’s separate financial statements. The Group engagement team determined Group audit materiality and issued audit instructions to component auditors and reviewed the work of component auditors.
The Management is responsible for the other information. The other information comprises “Introduction”, “Business Report”, “Sustainable Development” and “Petrol Group” (jointly referred to as: “Business Report”) (but does not include the consolidated and separate financial statements and our auditor’s report thereon).
Our opinion on the consolidated and separate financial statements does not cover the other information, including the Business Report and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the Business Report we also performed procedures required by the Slovenian Companies Act. These procedures include assessing whether the Business Report is consistent with the consolidated and separate financial statements and whether the Business Report was prepared in accordance with valid legal requirements.
Based on the work undertaken in the course of our audit, in our opinion:
In addition, in the light of knowledge and understanding of the Group and the Company and their environments obtained in the course of the audit, we are required to report if we have identified material misstatements in other information obtained before the date of this auditor’s report. We have nothing to report in this regard.
The Management is responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and for such internal control as the Management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.
Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
In preparing the consolidated and separate financial statements, the Management is responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and Company’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
● Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
10
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we comply with the relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
We were first appointed as auditors of the Company at the shareholders’ meeting of the Company on 21 April 2022 for the financial year ended 31 December 2022. The president of the supervisory board signed the audit contract on 1 August 2022. The contract was concluded for 3 years. Our uninterrupted period of appointment is one year.
The key audit partners on the audit resulting in this independent auditor’s report are Primož Kovačič and Dušan Hartman.
The Company Petrol d.d. disclosed financial statements by activities in Note 11 » Financial statements of Petrol d.d. by activities according to Gas Supply Act (ZOP), Electricity Supply Act (ZOEE) and Heat Supply from Distribution Systems Act (ZOTDS)«, which include Statement of financial position by activities as at 31 December 2022 and Statement of profit and loss by activities for the year then ended and the criteria for allocation of assets, liabilities, revenues and expenses by activities (the “Criteria”).
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
The Management is responsible for establishing the Criteria which are contained in the internal act “Pravilnik o računovodstvu” and comply with Gas Supply Act (ZOP), Electricity Supply Act (ZOEE) and Heat Supply from Distribution Systems Act (ZOTDS). Management is also responsible for keeping of separate accounting records and preparation of the financial statements by activities as at 31 December 2022 and for the year then ended.
Auditor’s responsibilities are examination of the adequacy and compliance with the requirements of ZOP, ZOEE, ZOTDS of the Criteria, correctness of application of the Criteria and related disclosures by activities as 31 December 2022 and for the year then ended.
Based on the procedures performed and evidence obtained during the audit of financial statements for the year ended 31 December 2022, we report that, in all material respects, the Company disclosed financial statements by activities, established the adequate Criteria and applied correctly these Criteria to prepare financial statement by activities in compliance with the requirements of ZOP, ZOEE, ZOTDS.
We have been engaged based our agreement by the Management of the Parent Company Petrol d.d. to conduct a reasonable assurance engagement for the verification of compliance with the applicable requirements of the presentation of the consolidated and separate financial statements of Petrol d.d. for the year ended 31 December 2022 (the “Presentation of the consolidated and separate financial statements”).
The Presentation of the consolidated and separate financial statements has been applied by the Management of the Company to comply with the requirements of art. 3 and 4 of the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (the “ESEF Regulation”). The applicable requirements regarding the Presentation of the consolidated and separate financial statements are contained in the ESEF Regulation.
The requirements described in the preceding sentence determine the basis for application of the Presentation of the consolidated and separate financial statements and, in our view, constitute appropriate criteria to form a reasonable assurance conclusion.
The Management of the Company is responsible for the Presentation of the consolidated and separate financial statements that complies with the requirements of the ESEF Regulation.
This responsibility includes the selection and application of appropriate markups in iXBRL using ESEF taxonomy and presenting, as well as designing, implementing and maintaining internal controls relevant for the preparation of the Presentation of the consolidated and separate financial statements which is free from material non-compliance with the requirements of the ESEF Regulation.
Those charged with governance are responsible for overseeing the financial reporting processes, which should also be understood as the preparation of consolidated and separate financial statements in accordance with the format resulting from the ESEF Regulation.
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
We conducted our engagement in accordance with the International Standard on Assurance Engagements 3000 (R) - ‘Assurance Engagements other than Audits and Reviews of Historical Financial Information’ (ISAE 3000(R)). This standard requires that we comply with ethical requirements, plan and perform procedures to obtain reasonable assurance whether the Presentation of the consolidated and separate financial statements complies, in all material aspects, with the applicable requirements. Reasonable assurance is a high level of assurance, but it does not guarantee that the service performed in accordance with ISAE 3000 (R) will always detect the existing material misstatement (significant non-compliance with the requirements).
We apply the provisions of the International Standard on Quality Control 1 and accordingly maintain a comprehensive system of quality control, including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
We comply with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
Our planned and performed procedures were aimed at obtaining reasonable assurance that the Presentation of the consolidated and separate financial statements complies, in all material aspects, with the applicable requirements and such compliance is free from material errors or omissions. Our procedures included in particular:
Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
In our opinion, based on the procedures performed, the Presentation of the consolidated and separate financial statements complies, in all material respects, with the ESEF Regulation.
For and on behalf of PricewaterhouseCoopers d.o.o.
Primož Kovačič
Dušan Hartman
Director, Certified auditor
Certified auditor
The Petrol Group
| Petrol d.d. | 2022 | 2021 | |||
| in EUR | in EUR | in EUR | in EUR | ||
| Sales revenue | 6.3 | 9,456,733,497 | 4,960,125,965 | 7,325,325,520 | 3,562,467,539 |
| Cost of goods sold | (9,063,284,948) | (4,416,701,515) | (6,986,267,630) | (3,201,977,488) | |
| Costs of materials | 6.4 | (39,423,844) | (29,296,024) | (28,590,381) | (23,818,764) |
| Costs of services | 6.5 | (180,137,325) | (147,697,919) | (136,071,228) | (114,204,989) |
| Labour costs | 6.6 | (135,562,309) | (114,341,509) | (82,129,297) | (78,318,991) |
| Depreciation and amortisation | 6.7 | (96,300,070) | (79,091,758) | (46,517,125) | (46,696,671) |
| Other costs | 6.8 | (16,476,159) | (62,612,453) | (8,082,795) | (49,859,719) |
| - of which net allowance for trade receivables | (7,930,749) | (7,914,095) | (2,990,233) | (3,003,074) | |
| Gain from derivatives | 6.9 | 523,094,819 | 269,931,980 |
| Loss from derivatives | 6.9 | (558,699,150) | (235,728,482) | (551,271,270) | (236,333,237) |
|---|---|---|---|---|---|
| Other income | 6.3 | 102,421,062 | 7,416,653 | 6,443,925 | 4,983,049 |
| Other expenses | (278,445) | (876,145) | (30,455) | - | |
| Operating profit or loss | (7,912,872) | 151,128,793 | 17,873,367 | 86,087,463 | |
| Share of profit or loss of equity accounted investees | 6.10 | 3,328,395 | 2,583,771 | - | - |
| Finance income from dividends paid by subsidiaries, associates and jointly controlled entities | 6.10 | - | 1,652,814 | 3,287,054 | |
| Finance income | 6.11 | 109,249,416 | 31,833,463 | 103,318,887 | 23,488,199 |
| Finance expenses | 6.11 | (114,478,291) | (34,098,000) | (105,021,002) | (29,465,373) |
| Net finance expense | (5,228,875) | (2,264,537) | (1,702,115) | (5,977,174) | |
| Profit/(loss) before tax | (9,813,352) | 151,448,027 | 17,824,066 | 83,397,343 | |
| Current tax expense | 6.12 | (4,258,179) | (30,683,697) | (786,831) |
| (18,781,868) | 6.12 | 11,385,725 | 3,717,031 | 2,346,643 | 1,867,467 |
|---|---|---|---|---|---|
| Income tax expense | 7,127,546 | (26,966,666) | 1,559,812 | (16,914,401) | |
| Net profit for the year | (2,685,806) | 124,481,361 | 19,383,878 | 66,482,942 | |
| Net profit for the year attributable to: | Owners of the controlling company | 4,520,125 | 119,079,575 | 19,383,878 | 66,482,942 |
| Non-controlling interest | (7,205,931) | 5,401,786 | - | - | |
| Basic and diluted earnings per share attributable to owners of the controlling company | 6.13 | 0.11 | 2.90 | 0.47 | 1.61 |
The Group/Company has changed the presentation of individual items in the statement of profit or loss in 2022. The changes are explained in Point 2.f.
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 200
| (in EUR) | Note | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|---|
| Net profit for the year | (2,685,806) | 124,481,361 | 19,383,878 | 66,482,942 | |
| Effective portion of changes in the fair value of cash flow variability hedging | 6.14 | 17,755,033 | 4,109,730 | 34,292,222 | 3,283,988 |
| Change in deferred taxes |
| (3,333,632) | (772,591) | (6,515,522) | (623,957) | |
|---|---|---|---|---|
| Change in the fair value of financial assets through other comprehensive income | - | (61,866) | - | |
| Change in deferred taxes | - | 11,756 | - | |
| Foreign exchange differences | (863,631) | 496,086 | - | |
| Other comprehensive income to be recognised in the statement of profit or loss in the future | 13,557,770 | 3,783,115 | 27,776,700 | 2,660,031 |
| Total other comprehensive income to be recognised in the statement of profit or loss in the future | 13,557,770 | 3,783,115 | 27,776,700 | 2,660,031 |
| Unrealised actuarial gains and losses | 2,405,390 | (5,406) | 2,583,114 | 12,995 |
| Other comprehensive income not to be recognised in the statement of profit or loss in the future | 2,405,390 | (5,406) | 2,583,114 | 12,995 |
| Total other comprehensive income not to be recognised in the statement of profit or loss in the future | 2,405,390 | (5,406) | 2,583,114 | 12,995 |
| Total other comprehensive income after tax | 15,963,160 | 3,777,709 | 30,359,814 | 2,673,026 |
| Total comprehensive income for the year | 13,277,354 | 128,259,070 | 49,743,692 | 69,155,968 |
| Total comprehensive income attributable to: | Owners of the controlling company | 24,749,798 |
Note
| 31 December 2022 | 31 December 2021 Restated* | 31 December 2022 | 31 December 2021 | ||
| ASSETS | |||||
| Non-current (long-term) assets | |||||
| Intangible assets | 6.15 | 245,289,473 | 254,911,455 | 151,972,471 | 155,524,818 |
| Right-of-use assets | 6.16 | 131,620,269 | 122,091,589 | 29,237,692 | 27,874,823 |
| Property, plant and equipment | 6.17 | 854,552,521 | 857,414,048 | 366,310,650 | 366,262,157 |
| Investment property | 6.18 | 14,777,108 | 16,139,743 | 11,490,836 | 12,335,994 |
| Investments in subsidiaries | 6.19 | - | - | 554,032,932 | 553,970,331 |
| Investments in jointly controlled entities | 6.20 | 1,277,748 | 704,501 | 233,000 | 210,000 |
Non-controlling interest
(11,472,444)
5,386,133
-
-
| 6.21 | 56,968,277 | 55,169,626 | 26,610,477 | 26,610,477 |
|---|---|---|---|---|
| 6.22 | 4,112,346 | 4,133,044 | 2,117,914 | 2,117,914 |
|---|---|---|---|---|
| 6.23 | 949,277 | 991,831 | 59,134,780 | 83,299,185 |
|---|---|---|---|---|
| 6.24 | 7,015,756 | 8,228,771 | 7,007,540 | 8,219,107 |
|---|---|---|---|---|
| 6.12 | 18,190,424 | 11,379,674 | 3,987,393 | 8,155,514 |
|---|---|---|---|---|
| 1,334,753,199 | 1,331,164,282 | 1,212,135,685 | 1,244,580,320 |
|---|---|---|---|
| 6.25 | 264,849,265 | 180,009,192 | 151,178,363 | 96,573,239 |
|---|---|---|---|---|
| 6.28 | 13,319,362 | 3,338,893 | 11,722,300 | 7,604,649 |
|---|---|---|---|---|
| 6.26 | 1,679,138 | 16,168,692 | 41,343,762 | 16,181,049 |
|---|---|---|---|---|
| 6.27 | 845,195,344 | 650,133,882 | 566,790,889 | 385,829,891 |
|---|---|---|---|---|
| 6.12 | 23,897,315 | 616,729 | 11,880,734 | |
|---|---|---|---|---|
| 6.29 | 2,646,334 | 34,666,891 | 2,525,437 | 34,561,544 |
|---|---|---|---|---|
| 6.22 | 38,034,066 | 1,776,801 | 33,376,691 | 1,100,446 |
|---|---|---|---|---|
| 6.30 | 115,267,863 | 85,718,759 | 51,468,197 | 50,728,784 |
|---|---|---|---|---|
| 6.31 | 100,962,531 | 100,226,890 | 51,203,361 | 57,567,397 |
|---|---|---|---|---|
| 1,405,851,218 | 1,072,656,729 | 921,489,734 | 650,146,999 | |
|---|---|---|---|---|
| Called-up capital | 52,240,977 | 52,240,977 | 52,240,977 | 52,240,977 |
|---|---|---|---|---|
| Capital surplus | 80,991,385 | 80,991,385 | 80,991,385 | 80,991,385 |
| Legal reserves | 61,987,955 | 61,987,955 | 61,749,884 | 61,749,884 |
| Reserves for own shares | 4,708,359 | 4,708,359 | 4,708,359 | 4,708,359 |
| Own shares | (4,708,359) | (4,708,359) | (2,604,670) | (2,604,670) |
| Other profit reserves | 299,826,206 | 318,523,082 | 322,180,686 |
| Fair value reserve | 340,914,615 | 1,810,718 | (789,611) |
|---|---|---|---|
| Hedging reserve | 42,539,491 | 39,809,449 | 17,827,312 |
| (858,584) | 26,639,848 | (1,136,850) | |
| Foreign exchange differences | (9,496,033) | (8,634,420) | - |
| Retained earnings | 323,576,627 | 362,184,854 | 9,545,011 |
| 33,241,471 | 828,765,147 | 865,645,638 | |
| Non-controlling interest | 597,990,971 | 609,914,620 | 31,401,474 |
| 43,052,367 | - | - | |
| Total equity | 6.32 | 860,166,621 | 908,698,005 |
| 597,990,971 | 609,914,620 |
| Provisions for employee post-employment and other long-term benefits | 6.33 | 7,836,685 | 9,516,091 |
|---|---|---|---|
| 5,898,618 | 7,969,809 | ||
| Other provisions | 6.34 | 18,210,763 | 34,323,479 |
| 13,381,922 | 17,606,490 | ||
| Long-term deferred income | 6.35 | 39,931,269 | 34,447,444 |
| 29,581,096 | 29,459,071 | ||
| Financial liabilities | 6.36 | 401,613,002 | 433,812,995 |
| 365,355,088 | 404,555,761 | ||
| Lease liabilities | 6.37 | 101,100,126 | 92,991,633 |
| Current Liabilities | 2022 | 2021 |
|---|---|---|
| Financial liabilities | 96,656,433 | 65,842,106 |
| Lease liabilities | 17,498,969 | 13,768,130 |
| Commodity derivative instruments | 29,872,456 | 116,341 |
| Corporate income tax liabilities | 1,062,768 | 18,786,511 |
| Contract liabilities | 23,153,575 | 14,828,344 |
| Other liabilities | 38,118,918 | 58,618,299 |
| Total Current Liabilities | 1,288,467,028 | 862,416,344 |
1,880,437,7961,495,123,0061,535,634,4481,284,812,699
2,740,604,4172,403,821,0112,133,625,4191,894,727,319
*The Group/Company has changed the presentation of individual items of the financial position in 2022. The changes are explained in Point 2.f. The accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| Called-up capital | Capital surplus | Profit reserves | Fair value reserve | Hedging reserve | Foreign exchange differences | Retained earnings | Equity attributable to owners of the controlling company | Non-controlling interest | Total | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 52,240,977 | 80,991,385 | 61,987,955 | 4,708,359 | (4,708,359) | 316,057,569 | (753,447) | (4,195,723) | (9,126,807) | 290,793,508 | 787,995,417 | 38,674,020 | 826,669,437 |
| Dividend payments for 2020 | ||||||||||||
| (30,775,958) | (14,446,758) | (45,222,716) | (45,222,716) |
| 33,241,471 | (33,241,471) | - | - | |||
|---|---|---|---|---|---|---|
| Increase/(decrease) in non-controlling interest | - | (1,007,786) | (1,007,786) | |||
| Transactions with owners | - | - | - | |||
| - | 2,465,513 | - | - | |||
| (47,688,229) | (45,222,716) | (1,007,786) | (46,230,502) | |||
| Net profit for the current year | 119,079,575 | 119,079,575 | 5,401,786 | 124,481,361 | ||
| Other comprehensive income | (36,164) | 3,337,139 | 492,387 | 3,793,362 | ||
| - | (15,653) | 3,777,709 | Total comprehensive income | |||
| - | - | - | - | |||
| (36,164) | 3,337,139 | 492,387 | 119,079,575 | 122,872,937 | 5,386,133 | 128,259,070 |
| 52,240,977 | 80,991,385 | 61,987,955 | 4,708,359 | (4,708,359) | 318,523,082 | |
|---|---|---|---|---|---|---|
| (789,611) | (858,584) | (8,634,420) | 362,184,854 | 865,645,638 | 43,052,367 | 908,698,005 |
| 52,240,977 | 80,991,385 |
|---|---|
| 61,987,955 | 4,708,359 | (4,708,359) | 318,523,082 | (789,611) | (858,584) | (8,634,420) | 362,184,854 | 865,645,638 | 43,052,367 | 908,698,005 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| (28,425,869) | (33,241,474) | (61,667,343) | (61,667,343) | Transfer of a portion of 2022 net profit | 9,691,939 | (9,691,939) | - | - | |||
| Increase/(decrease) in non-controlling interest | 37,054 | 37,054 | (178,449) | (141,395) | |||||||
| Transactions with owners | - | - | - | - | - | (18,696,876) | - | - | (42,933,413) | (61,630,289) | |
| (178,449) | (61,808,738) | Net profit for the current year | 4,520,125 | 4,520,125 | (7,205,931) | (2,685,806) | |||||
| Other comprehensive income | 2,600,329 | 18,685,896 | (861,613) | (194,939) | 20,229,673 | (4,266,513) | 15,963,160 | ||||
| Total comprehensive income | - | - | - | - | - | 2,600,329 | 18,685,896 | (861,613) | 4,325,186 | 24,749,798 | (11,472,444) |
| Called-up capital | Capital surplus | Profit reserves | Fair value reserve | Hedging reserve | Retained earnings | Total |
|---|---|---|---|---|---|---|
| As at 1 January 2021 | 52,240,977 | 80,991,385 | 61,749,884 | 4,708,359 | (2,604,670) | 338,449,102 |
| Legal reserves | Reserves for own shares | Own shares | Other profit reserves | |||
| 39,796,454 | (3,796,881) | 14,446,758 | 585,981,368 | |||
| Dividend payments for 2020 | (30,775,958) | (14,446,758) | (45,222,716) | |||
| Transfer of a portion of 2021 net profit | 33,241,471 | (33,241,471) | - | |||
| Transactions with owners | - | - | - |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| Net profit for the current year | 66,482,942 |
|---|---|
| Other comprehensive income | 12,995 |
| Total comprehensive income | 69,155,968 |
| 52,240,977 | 80,991,385 | 61,749,884 | 4,708,359 | (2,604,670) | 340,914,615 | 39,809,449 | (1,136,850) | 33,241,471 | 609,914,620 |
|---|---|---|---|---|---|---|---|---|---|
| 52,240,977 | 80,991,385 | 61,749,884 | 4,708,359 | (2,604,670) | 340,914,615 | 39,809,449 | (1,136,850) | 33,241,471 | 609,914,620 |
|---|---|---|---|---|---|---|---|---|---|
| (28,425,869) | (33,241,474) | (61,667,343) |
|---|---|---|
| 9,691,939 | (9,691,939) | - |
|---|---|---|
| (18,733,930) | - | (42,933,413) | (61,667,343) |
|---|---|---|---|
| Other comprehensive income | 2,730,042 | 27,776,700 | (146,928) | 30,359,814 |
|---|---|---|---|---|
| Total comprehensive income | 49,743,692 |
| 52,240,977 | 80,991,385 | 61,749,884 | 4,708,359 | (2,604,670) | 322,180,686 | 42,539,491 | 26,639,848 | 9,545,011 | 597,990,971 |
|---|---|---|---|---|---|---|---|---|---|
| 52,156,001 | 9,691,939 | 61,847,940 |
|---|---|---|
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
| Note | 2022 | *2021 Restated | 2022 | 2021 | ||
|---|---|---|---|---|---|---|
| Cash flows from operating activities | Net profit | (2,685,806) | 124,481,361 | 19,383,878 | 66,482,942 | |
| Adjustment for: | Corporate income tax | 6.12 | (7,127,546) | 26,966,666 | (1,559,812) | 16,914,401 |
| Depreciation of property, plant and equipment, investment property and right-of-use assets | 6.7 | 82,694,805 | 65,861,834 | 36,767,966 |
| 6.7 | 13,605,265 | 13,229,924 | 9,749,159 | 9,676,444 |
|---|---|---|---|---|
| 6.3, 6.8 | (2,308,698) | 627,202 | (496,493) | 653,815 |
|---|---|---|---|---|
| 6.8 | 6,194,071 | 14,259,583 | 7,024 | 2,705,061 |
|---|---|---|---|---|
| 6.36 | (65,414) | (65,414) | (65,414) | (65,414) |
|---|---|---|---|---|
| 6.33 | (176,863) | (306,149) | 305,793 | (310,918) |
|---|---|---|---|---|
| 6.34, 6.35 | (9,707,692) | 3,356,189 | (3,896,414) | 3,881,951 |
|---|---|---|---|---|
| 6.8 | (4,964,865) | (2,696,235) | (3,343,967) | (1,476,726) |
|---|---|---|---|---|
| 6.11 | 7,292,624 | 7,571,039 | 2,352,108 | 2,660,018 |
|---|---|---|---|---|
| 6.11 | 8,160,628 | (657,814) | 4,789,290 | 7,431,554 |
|---|---|---|---|---|
| 6.11 | - | 873,366 | - | 11,193,296 |
|---|---|---|---|---|
| Share of profit of associates | 6.10 | (2,662,912) | (2,283,731) | |||
|---|---|---|---|---|---|---|
| Finance income from dividends received from subsidiaries | 6.10 | - | - | |||
| Finance income from dividends received from jointly controlled entities | 6.10 | - | (723,160) | (1,823,324) | ||
| Finance income from dividends received from associates | 6.10 | - | (115,217) | (135,495) | ||
| Cash flow from operating activities before changes in working capital | 87,582,114 | 250,917,781 | 62,340,304 | 153,479,596 | ||
| Net (decrease in)/creation of other liabilities | 6.42 | (20,483,464) | 36,963,249 | (15,728,852) | 38,374,470 | |
| Net decrease in/(creation) of other assets | 6.30 | (4,126,645) | (18,616,569) | (1,568,792) | (13,287,076) | |
| Change in inventories | 6.25 | (86,164,815) | (20,869,739) | (51,268,181) | (7,441,204) | |
| Change in operating and other receivables and contract assets | 6.27, 6.28 | (180,638,456) | (209,709,855) | (147,757,061) | (182,227,918) | |
| Change in operating and other liabilities and contract liabilities | 6.39, 6.41 | 406,890,937 | 138,301,308 | 374,077,361 | 80,276,004 |
| 2023 | 2022 | 2021 | 2020 | ||
|---|---|---|---|---|---|
| Cash generated from operating activities | 203,059,671 | 176,986,175 | 220,094,779 | 69,173,872 | |
| Interest paid | 6.11 | (14,411,347) | (9,750,418) | (9,669,252) | (7,157,264) |
| Taxes paid | 6.12 | (44,996,685) | (12,585,658) | (28,964,937) | 3,921,348 |
| Net cash from (used in) operating activities | 143,651,639 | 154,650,099 | 181,460,590 | 65,937,956 |
| 2023 | 2022 | 2021 | 2020 | ||
|---|---|---|---|---|---|
| Payments for investments in subsidiaries, net of cash acquired | 6.19 | (3,720,482) | (185,966,729) | (3,720,482) | (204,150,000) |
| Receipts from investments in subsidiaries | 6.19 | 3,244,000 | - | 3,244,000 | - |
| Payments for investments in jointly controlled entities | 6.20 | (23,000) | - | (23,000) | - |
| Receipts from investments in associates | 6.21 | - | 2,575,000 | - | 2,575,000 |
| Receipts from sale of intangible assets | 6.15 | 294,638 | 412,459 | 289,265 | 407,294 |
| Payments for intangible assets | 6.15 | (8,710,587) | (7,276,610) | (6,298,800) | (4,074,759) |
| Receipts from sale of property, plant and equipment | 6.17 | 4,025,620 | 5,385,276 | 1,278,388 | 687,619 |
| 6.17 | (74,289,070) | (57,030,318) | (38,631,661) | (28,496,285) |
|---|---|---|---|---|
| 6.18 | 265,870 | - | 21,725 | - |
|---|---|---|---|---|
| (124,378) | - | - | - |
|---|---|---|---|
| 6.23, 6.26 | 16,086,323 | 91,219,887 | 251,765,872 | 159,534,710 |
|---|---|---|---|---|
| 6.23, 6.26 | (905,474) | (39,367) | (251,057,987) | (178,542,919) |
|---|---|---|---|---|
| 6.11 | 5,339,642 | 17,028,503 | 4,422,427 | 2,529,225 |
|---|---|---|---|---|
| 6.10 | - | - | 723,160 | 1,823,324 |
|---|---|---|---|---|
| 6.10 | 115,217 | 135,495 | 115,217 | 135,495 |
|---|---|---|---|---|
| 6.10 | 864,261 | 1,403,355 | 814,437 | 1,328,236 |
|---|---|---|---|---|
| 6.10 | 258,925 | 177,148 | 148,925 | 67,148 |
|---|---|---|---|---|
| (57,278,495) | (131,975,901) | (36,908,514) | (246,175,912) |
|---|---|---|---|
| (16,611,194) | (12,056,039) | (3,867,861) | (3,566,349) |
|---|---|---|---|
| 6.36 | 1,884,402,641 | 926,931,269 | 2,577,234,111 | 1,327,414,213 |
|---|---|---|---|---|
| 6.36 | (1,891,704,933) | (880,837,557) | (2,662,608,090) | (1,085,490,135) |
|---|---|---|---|---|
| 6.32 | (61,674,272) | (45,222,901) | (61,674,272) | (45,222,901) |
|---|---|---|---|---|
| (85,587,758) | (11,185,228) | (150,916,112) | 193,134,828 |
|---|---|---|---|
| 785,386 | 11,488,970 | (6,364,036) | 12,896,872 |
|---|---|---|---|
| 100,226,890 | 88,674,952 | 57,567,397 | 44,670,525 |
|---|---|---|---|
| (49,745) | 62,968 | - | - |
|---|---|---|---|
| 785,386 | 11,488,970 | (6,364,036) | 12,896,872 |
|---|---|---|---|
| 100,962,531 | 100,226,890 | 51,203,361 | 57,567,397 |
|---|---|---|---|
*The Group corrected an error from the previous year in 2022. The changes are explained in Point 2.g.
The accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 205
Javno
Public
Petrol d.d., Ljubljana (hereinafter the “Company”) is a company domiciled in Slovenia. Its registered office is at Dunajska cesta 50, 1000 Ljubljana. Below we present the consolidated financial statements of the Group for the year ended 31 December 2022 and separate financial statements of the company Petrol d.d., Ljubljana for the year ended 31 December 2022. 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 the chapter Companies in the Petrol Group of the business report.
The Company’s Management Board approved the Company’s financial statements and the Group’s consolidated financial statements on 6 April 2023. The financial statements of Petrol d.d., Ljubljana and the 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.
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 in 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 the 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 are disclosed in the notes on 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 only affects that period. If the change affects future periods, they are recognised in the period of the change and in any future periods.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 206
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:
The Group/Company accounts for excise duty when purchasing petroleum products, 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 assessment is based on indicators that determine the nature of the duty and the appropriateness of its presentation, such as: the assessment of the basis of calculation, the point when the duty is payable, the possibility of varying the selling price in the event of a change in the duty, and the risks associated with the value of the inventory of goods. Taking into account all the above indicators and after reviewing the presentation of comparable companies, the Group/Company concludes that it is appropriate to present the revenue from the sale of goods and the cost of goods net of excise duties. Among the above indicators, the most important indicator is the possibility of price variation, where we note that due to the importance of the excise duty in the final price, the variation of the excise duty has an impact on the final price, which demonstrates that we are selling in the name and on behalf of third parties.
In 2022, the Group's excise duties amount to EUR 1,130,616,855 (2021: EUR 1,040,980,981).
The Group/Company has concluded contracts on the sale of merchandise in the name and on behalf of suppliers. It provides customers with 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 only purchases equipment upon the 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.
When the Group/Company uses property in part for the performance of its 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 control is gained over the acquired assets/liabilities. Since the completion of a transaction involving a business combination is subject to the 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 the 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. A description of the methods and assumptions is disclosed in Note 6.1.
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 any 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 that affect the amounts in the financial statements the most was used in the estimation of the value of:
Parameters/assumptions applied in assessing asset values
The Group/Company assesses the value of its assets by:
using the market approach, which is based on the values of economic categories of comparable companies as at the value assessment date.
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.
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 the unforeseeable future, which is beyond the control of Group companies. The management of a company regularly checks whether 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 the relevant circumstances regarding conformity with the required standards and legal aspects, and represent the management’s best estimate of how likely the outflow of economic benefits from the Group/Company is.
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 recognises deferred tax assets in connection with provisions for jubilee benefits and postemployment benefits on retirement, impairment of financial assets, impairment of receivables and tax losses.
On the day the financial statements are completed, the Group/Company verifies the amount of disclosed deferred tax assets and liabilities. Deferred tax assets are recognised if it is probable that future taxable net profits will be available against which deferred tax assets can be utilised in the future. Deferred taxes are decreased by the amount for which it is no longer probable that tax breaks associated with the asset can be utilised.
In 2022, the Group changed the individual item presentation in the Statement of Financial Position and Statement of Profit or Loss in order to ensure a more relevant presentation. The change also includes a comprehensive adjustment of the items for the 2021 comparative period on an equal basis.
The Group/Company utilises commodity derivatives and commodity forward contracts for the purchase of petroleum products, natural gas and for electricity trading. The Group/Company recognises the effects of these derivatives in other income/expenses in profit or loss. Until 2022, the Group/Company reported the liabilities of commodity derivatives and commodity forward contracts as financial liabilities. In 2022, they were reclassified as a new line item commodity derivatives. The reason for the change in recognition is that those derivatives are an integral part of the operations and should be considered together with the effects of commodity derivatives and commodity forward contracts, as they are one of the Group’s/Company’s activities.
The Group/Company believes that the change in presentation will improve the presentability of the information and the comparability of the Group/Company’s financial statements with other companies in the market.
Because the business combination of the company took place at the end of 2021 and the fair value of the assets as at 31 December 2021 could not be determined with certainty, the acquired assets as at 31 December 2021 were recognised at provisional values. In 2022, 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 the purchase price and reflecting it in the 2021 financial statements.
| The Petrol Group | 31 December 2021 | ||
|---|---|---|---|
| Published | Change of presentation | Restated | |
| Change of presentation | 31 December 2021 | Adjusted | (in EUR) |
| Definitive allocation of goodwill | Commodity derivative instruments | 31 December 2021 | Published |
| Commodity derivative instruments | ASSETS | Non-current (long-term) assets | 1,312,403,308 |
| 18,760,974 | - | ||
| 1,331,164,282 | |||
| Petrol d.d. | 1,244,580,320 | - | 1,244,580,320 |
| Intangible assets | 345,329,895 |
| (90,418,440) | - | 254,911,455 | ||
|---|---|---|---|---|
| 155,524,818 | - | 155,524,818 | ||
| Right-of-use assets | 102,621,512 | 19,470,077 | - | 122,091,589 |
| 27,874,823 | - | 27,874,823 | ||
| Property, plant and equipment | 767,704,711 | 89,709,337 | - | 857,414,048 |
| 366,262,157 | - | 366,262,157 | ||
| Current assets | 1,071,048,123 | 1,608,606 | - | 1,072,656,729 |
| 650,146,999 | - | 650,146,999 | ||
| Inventories | 178,191,288 | 1,817,904 | - | 180,009,192 |
| 96,573,239 | - | 96,573,239 | ||
| Operating receivables | 650,343,180 | (209,298) | - | 650,133,882 |
| 385,829,891 | - | 385,829,891 | ||
| Total assets | 2,383,451,431 | 20,369,580 | - | 2,403,821,011 |
| 1,894,727,319 | - | 1,894,727,319 |
| Total equity | 908,698,005 | - | - | 908,698,005 |
|---|---|---|---|---|
| 609,914,620 | - | 609,914,620 | ||
| Non-current liabilities |
| 612,337,082 | 20,369,580 | - | 632,706,662 |
|---|---|---|---|
| 491,988,446 | - | 491,988,446 | Deferred tax liabilities |
| 1,583,658 | 20,369,580 | - | 21,953,238 |
| - | - | - | Current liabilities |
| 862,416,344 | - | - | 862,416,344 |
| 792,824,253 | - | 792,824,253 | Financial liabilities |
| 65,958,447 | - | (116,341) | 65,842,106 |
| 272,485,762 | (116,341) | 272,369,421 | Commodity derivative instruments |
| - | - | 116,341 | 116,341 |
| - | 116,341 | 116,341 | Total liabilities |
| 1,474,753,426 | 20,369,580 | - | 1,495,123,006 |
| 1,284,812,699 | - | 1,284,812,699 | Total equity and liabilities |
| 2,383,451,431 | 20,369,580 | - | 2,403,821,011 |
| 1,894,727,319 | - | 1,894,727,319 |
Until 2022, the Company carried the impairment of investments in subsidiaries as part of other financial expenses. On reconsideration of this presentation, the Company considered it more appropriate to present the impairment of investments as an operating expense.
In previous periods, the revenues from the sale of goods and their cost in electricity trading in a subsidiary were carried as part of the subsidiary's financial statements. On reconsideration of such presentation, the Company considered it more appropriate to present the revenue from the sale of goods and the cost of goods sold in the parent company because the subsidiary makes the sales in the name of and on behalf of the parent company. The change in presentation in the financial statements had no impact on the Group's financial statements.
| (in EUR) | 2021 Published | Change of presentation | 2021 Adjusted |
|---|---|---|---|
| Sales revenue | 4,960,125,965 | - | 4,960,125,965 |
| Cost of goods sold | (4,416,701,515) | - | (4,416,701,515) |
| Costs of materials | (29,296,024) | - | (29,296,024) |
| Costs of services | (147,697,919) | - | (147,697,919) |
| Labour costs | (114,341,509) | - | (114,341,509) |
| Depreciation and amortisation | (79,091,758) | - | (79,091,758) |
| Other costs | (54,698,358) | (7,914,095) | (62,612,453) | (35,663,349) | (14,196,370) | (49,859,719) |
|---|---|---|---|---|---|---|
| - of which net allowance for operating receivables | - | (7,914,095) | (7,914,095) | - | (3,003,074) | (3,003,074) |
| Gain from derivatives | - | 269,931,980 | 269,931,980 | - | 269,846,734 | 269,846,734 |
| Loss from derivatives | - | (235,728,482) | (235,728,482) | - | (236,333,237) | (236,333,237) |
| Other income | 277,348,633 | (269,931,980) | 7,416,653 | 274,789,421 | (269,806,372) | 4,983,049 |
| Other expenses | (236,604,627) | 235,728,482 | (876,145) | (236,292,875) | 236,292,875 | - |
| Operating profit or loss | 159,042,888 | (7,914,095) | 151,128,793 | 100,283,833 | (14,196,370) | 86,087,463 |
| Share of profit or loss of equity accounted investees | 2,583,771 | - | 2,583,771 | - | - | - |
| Finance income from dividends paid by subsidiaries, associates and jointly controlled entities | - | - | - | 3,287,054 | - | - |
32,172,838
(339,375)
31,833,463
23,508,629
(20,430)
23,488,199
(42,351,470)
8,253,470
(34,098,000)
(43,682,173)
14,216,800
(29,465,373)
(10,178,632)
7,914,095
(2,264,537)
(20,173,544)
14,196,370
(5,977,174)
151,448,027
-
151,448,027
83,397,343
-
83,397,343
The Group presented cash acquired from the acquisition of companies separately from cash flows from investing activities and therefore made an adjustment to the Statement of Cash Flows at 31 December 2021 to present cash acquired from the acquisition of a company as part of cash flows from investing activities in the line item Expenditure on investments in subsidiaries.
| The Petrol Group | (in EUR) | 2021 Published | Change of presentation | 2021 Adjusted |
|---|---|---|---|---|
| Payments for investments in subsidiaries | (196,650,000) | 10,683,271 | (185,966,729) | |
| Net cash from (used in) investing activities | (142,659,172) | 10,683,271 | (131,975,901) | |
| Increase/(decrease) in cash and cash equivalents | 805,699 | 10,683,271 | 11,488,970 | |
| Cash acquired through acquisition of companies | 10,683,271 |
The Group and Group companies applied the accounting policies set out below consistently to all the periods presented in these financial statements. Except for the newly adopted standards and interpretations specified below, the accounting policies used herein are the same as in the previous annual report.
Proceeds before intended use, Onerous contracts – cost of fulfilling a contract, Reference to the Conceptual Framework – narrow scope amendments to the IAS 16, IAS 37 and IFRS 3, and Annual Improvements to the IFRSs 2018-2020 – amendments to the IFRS 1, IFRS 9, IFRS 16 and IAS 41 (issued on 14 May 2020 and effective for annual periods beginning on or after 1 January 2022).
The amendment to the IAS 16 prohibits an entity from deducting from the cost of an item of property, plant and equipment any proceeds received from selling items produced while the entity is preparing the asset for its intended use. The proceeds from selling such items, together with the costs of producing them, are now recognised in profit or loss. An entity has to use the IAS 2 to measure the cost of those items. The cost does not include the depreciation of the asset being tested because it is not yet ready for its intended use. The amendment to the IAS 16 also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. An asset might therefore be capable of operating as intended by management and subject to depreciation before it has achieved the level of operating performance expected by management.
The amendment to the IAS 37 clarifies the meaning of ‘costs to fulfil a contract’. The amendment explains that the direct cost of fulfilling a contract comprises the incremental costs of fulfilling that contract; and an allocation of other costs that relate directly to fulfilment. The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognises any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.
The IFRS 3 was amended to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. Prior to the amendment, the IFRS 3 referred to the 2001 Conceptual Framework for Financial Reporting. In addition, a new exception in the IFRS 3 was added for liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying the IFRS 3 should instead refer to the IAS 37 or IFRIC 21, rather than the 2018 Conceptual Framework. Without this new exception, an entity would have recognised some liabilities in a business combination that it would not recognise under the IAS 37. Therefore, immediately after the acquisition, the entity would have had to derecognise such liabilities and recognise a gain that did not depict an economic gain. It was also clarified that the acquirer should not recognise contingent assets, as defined in the IAS 37, at the acquisition date.
The amendment to the IFRS 9 addresses which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, the costs or fees paid to third parties will not be included in the 10% test.
Illustrative Example 13 that accompanies the IFRS 16 was amended to remove the illustration of payments from the lessor relating to leasehold improvements. The reason for the amendment is to remove any potential confusion about the treatment of lease incentives.
also apply to associates and joint ventures that have taken the same IFRS 1 exemption. The requirement for entities to exclude cash flows for taxation when measuring fair value under the IAS 41 was removed. This amendment is intended to align with the requirement in the standard to discount cash flows on a post-tax basis. The amendments did not have a material impact on the financial statements of the Group/Company.
(issued on 31 March 2021 and effective for annual periods beginning on or after 1 April 2021).
In May 2020 an amendment to the IFRS 16 was issued that provided an optional practical expedient for lessees from assessing whether a rent concession related to COVID-19, resulting in a reduction in lease payments due on or before 30 June 2021, was a lease modification. An amendment issued on 31 March 2021 extended the date of the practical expedient from 30 June 2021 to 30 June 2022. 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 the 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.
The Group measures goodwill at the fair value of the consideration transferred plus the recognised amount of any noncontrolling interest in the acquiree, plus the fair value of any pre-existing equity interest in the acquiree (if the business combination is achieved in stages), less the net recognised amount of the assets acquired and liabilities assumed, all measured as at the acquisition date. Subsequent measurement of goodwill is specified in Point e. When the excess is negative, the effect is recognised immediately in profit or loss as a bargain purchase. Acquisition costs, other than those associated with the issue of equity or debt securities, incurred in connection with a business combination are expensed as incurred.
Any contingent liabilities arising from business combinations are recognised at fair value as at the acquisition date. If a contingent liability is classified as equity, then it is not remeasured and settlement is accounted for within equity. Subsequent changes in the fair value of the contingent liability are recognised in profit or loss by the Group. A contingent liability that constitutes a financial instrument and is classified as an asset or a liability is measured at fair value, and changes in the fair value are reported in profit or loss.
The Group accounts for acquisitions of non-controlling interests that do not involve a change in control of a company as transactions with owners and therefore no goodwill is recognised. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. Any surpluses or the difference between the costs of additional investments and the carrying amount of assets are recognised in equity.
Subsidiaries are entities controlled by the Group. Control exists when:
Associates are those entities in which the Group has significant influence, but not control, over their financial and operating policies. Jointly controlled entities are those entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for financial and operating decisions. Investments in associates and jointly controlled entities are initially recognised at cost, but are subsequently accounted for using the equity method. The Group’s consolidated financial statements include the Group’s share of the profit and loss of equity accounted jointly controlled entities, after adjustments to align the accounting policies, 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 its interest in such an entity, the carrying amount of the Group’s interest is reduced to zero and the recognition of further losses is discontinued.
Intra-group balances and any gains and losses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with 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 evidence of impairment.
Transactions in foreign currencies are translated to the respective functional currencies of Group companies at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are retranslated to the functional currency using the exchange rate at that date. Foreign exchange gains or losses are the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items denominated in a foreign currency and measured at historical cost are translated to the functional currency using the exchange rate at the date of the transaction. Foreign exchange differences are recognised in profit or loss.
The Group’s consolidated 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 consolidated financial statements, to the reporting currency as follows:
The Group’s financial assets include cash and cash equivalents, receivables and loans, and investments.
The Group initially recognises loans, receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the trade date, which is the date that the Group becomes a party to 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 the transaction price determined according to the provisions of the IFRS 15 less expected credit losses in accordance with the provisions of the IFRS 9. 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 that 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.
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 the 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 that 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 irrevocably classify 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 and receivables. 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 the amortised cost are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at the 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 the 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 depreciation 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, cancelled or expired.
Trade liabilities and other operating liabilities are stated at fair value upon initial recognition and at amortised cost after initial recognition.
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.
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 Group 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 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 by the Group. 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 a forward financial instrument 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 the comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as a finance income or expense.
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 by the Group. 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 a gain or loss on the derivative financial instruments.
When a commodity derivative financial instrument 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 the comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as a gain or loss on the derivative financial instruments.
Interest rates on loans received are exposed to a risk of interest rate fluctuations, which is hedged against using interest rate swaps and collars by the Group. 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 another finance income or expense.
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 the 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.
In accordance with the Companies Act, legal reserves may be used in excess to increase share capital from the assets of the company and to cover net and carried-forward losses, provided that profit reserves are not used at the same time to pay out profits to shareholders.
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 the 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 capital surplus net of transaction costs and related tax effects.
At the time of preparing the annual report, the Group may form other profit reserves up to 50% of the net profit or loss for the year. Other profit reserves may be used for any purpose in accordance with the Act, the Articles of Association, the operating policy and the resolutions of the General Meeting.
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.
The Group recognises an intangible non-current asset arising from a service concession arrangement when it has a right to charge for the usage of the concession infrastructure. An intangible non-current asset received as a 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 depreciation and any accumulated impairment losses. The duration of the right is linked to the duration of the concession agreement.
At the end of 2022, 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 are proprietary and three are market distribution systems.
At the end of December 2022, the Petrol Group operated 31 natural gas supply concessions in Slovenia, and in Serbia we supply natural gas to the municipalities of Bačka Topola and Pećinci, as well as three municipalities in Belgrade. Since the end of 2018, the Petrol Group has also been present on the Croatian market, where Zagorski metalac d.o.o. distributes natural gas in certain municipalities in the areas of Zagorje-Krapinje and Zagreb County.
In 2022 the Petrol Group operated four concessions for the public utility service of municipal wastewater treatment.
For more details, see Business report 14. Operations by product groups.
The 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 depreciation 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 the 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 mostly comprise 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.
Amortisation is calculated on a straight-line basis, taking into account the useful life of intangible fixed assets. Depreciation begins when the asset is available for use.
| (in %) | 2022 |
|---|---|
| 2.00-20.00 | 2.00-20.00 |
|---|---|
| 3.33-33.33 | 3.33-33.33 |
|---|---|
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
The impairment of assets is detailed in Point j2.
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 with 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 %) | 2022 | 2021 |
|---|---|---|
| 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 |
| Machinery: | ||
| Pumping equipment at service stations | 5.00-25.00 | 5.00-25.00 |
| Freight cars, rail tankers | 25.00 | 25.00 |
| Equipment: | ||
| Mechanical and electronic equipment for maintenance of other equipment | 10.00-25.00 | 10.00-25.00 |
| Gas station equipment | 3.33-20.00 | 3.33-20.00 |
| Motor vehicles | 10.00-25.00 | 10.00-25.00 |
| 15.00-25.00 | 15.00-25.00 |
|---|---|
| 6.70-16.10 | 6.70-16.10 |
|---|---|
| 33.33 | 33.33 |
|---|---|
| 4.00-25.00 | 4.00-25.00 |
|---|---|
The 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.
The impairment of assets is detailed in Point j2.
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 l. Environmental fixed assets are part of buildings and equipment.
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 plant, property and equipment. The impairment of assets is detailed in Point j2.
The Group considers as investment property all properties held by the Group that are 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 the 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 a consideration.
The Group 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 Group also assesses the probability of the above options.
The term of a lease depends on the type of the leased asset and the range:
EUR 4,300 (the value of the new asset being leased is taken into account). With regard to 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.
| (in %) | 2022 | 2021 |
|---|---|---|
| Lands | 3.33-20.00 | 3.33-20.00 |
| Buildings | 5.00-20.00 | 5.00-20.00 |
| Equipment: | ||
| Equipment | 10.00-100.00 | 10.00-100.00 |
| Motor vehicles | 16.67-33.33 | 16.67-33.33 |
If the 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.
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 Group 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 that is reasonably certain to be exercised by the Group and the 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 the lease payments, the Group 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 the lease liabilities is increased to reflect the accretion of interest and reduced by the lease payments made. In addition, the carrying amount of the 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 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 asset 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 expenses on a straight-line basis over the lease term.
Inventories of merchandise and materials are measured at the lower of the cost and net realisable values. 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.
The 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 weighted average price method for fuel stocks is used for the use of stocks in the cost of goods sold and the FIFO method for merchandise stocks.
In accordance with the IFRS 9, the Group uses the expected loss model based on which the Group not only recognises 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 has 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 impairments. If it is assessed that the carrying amount of receivables exceeds their fair value, i.e. the collectable 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 a 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, and the expected credit loss is also reduced by expected offsets of trade receivables against trade payables.
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.
On each reporting date, the Group reviews the carrying amounts of significant non-financial assets to determine whether there is any indication of impairment. If any such indication exists, 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 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 defined that it 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 the interdependence of individual points of sale, the Group determined that identifying the point-of-sale network in an individual country as a level at which to check for signs of impairment was the most appropriate approach. In case of indicators of impairment on the network, impairment is done on the level of individual point of sale.
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 after the deduction of depreciation write-off 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.
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.
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 the 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 the 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.
The Group 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.
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 income over the periods in which the costs that they are intended to compensate are incurred. The income, 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.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 229
Long-term deferred income comprises deferred income 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 income is restated under other income in proportion to the depreciation of environmental fixed assets. The portion of the deferred income attributable to the period under 12 months is moved to the current deferred income.
Revenue from contracts with customers is recognised once the control of goods or services is transferred to a customer in 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.
Fuels and petroleum products segment revenue includes sales of petroleum products, sales of LPG and other alternative energy (compressed natural gas), the transport, storage and handling of fuels, payment card revenues, and sales of biomass, tyres and tubes, and batteries. Merchandise and services segment revenue includes the sale of foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards, coffee on the go, Fresh products, car cosmetics and spare parts, as well as car wash services, sales promotion services and other services. Energy and solutions segment revenue includes the sale and trading of electricity and natural gas, the sale of energy solutions (energy and environmental management systems for buildings, water systems, efficient lighting systems, district energy, water treatment, industrial solutions), the sale of heating systems, natural gas distribution systems, mobility and energy product production. Other segment revenue includes mining services, maintenance services, rent from holiday accommodation.
Revenue is recognised as follows:
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, where there is an actual physical delivery of electricity. Transportation is not recognised in the revenue from the sale of goods as it is charged separately and recognised in the revenue from services.
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 the 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 separately recognises revenue from the sale of goods and finance income deferred over the entire contract term. The 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 mainly sells solar power plants on an instalment basis.
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, segment merchandise and services.
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 the payment of the consideration is due). See the 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 received prepayments, 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, 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 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 Group determines the fair value of assets 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 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 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 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. The basic earnings per share are calculated by dividing the profit or loss attributable to the owners of the controlling company 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 the owners of the controlling company 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 segment is a component of the Group that engages in business activities from which it earns revenue and incurs expenses that relate to transactions with any of the Group’s other components. Segments differ from one another in terms of risks and returns. Their results are reviewed regularly by the Management Board (Chief Operating Decision Maker) to make decisions about resources to be allocated to a segment and assess the Group’s performance. The Group uses the following segments in the preparation and presentation of its financial statements:
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 2021 and 31 December 2022 and data derived from the statement of profit or loss for the period January to December 2022. The default interest paid and received in connection with operating receivables and Interest on loans are allocated to cash flows from operating activities. The dividends paid are allocated to cash flows from financing activities, while dividends received are allocated to cash flows from investment activities.
The Company applied the accounting policies set out below consistently to all periods presented in these financial statements.
interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items denominated in a foreign currency and measured at historical cost are translated to the functional currency using the exchange rate at the date of the transaction. Foreign exchange differences are recognised in profit or loss.
Subsidiaries are entities controlled by the Company. Control exists when:
In the Company’s financial statements, investments in subsidiaries are accounted for at cost less impairment. The Company only recognises income from an investment to the extent that it originates from a distribution of accumulated profits of the investee arising after the date of acquisition. If a Group controlled company is merged, the difference between the investments and the net value of acquired assets is recognised in other profit reserves, taking into account goodwill, if any.
The impairment of assets is detailed in Point k2.
The Company measures investments in associates and jointly controlled entities at cost less impairment.
The Company’s financial assets include cash and cash equivalents, receivables and loans, and investments.
The Company initially recognises loans, receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the trade date, which is the date the Company becomes 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 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 Company’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 Company’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 Company’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 the IFRS 15 less expected credit losses in accordance with the provisions of the IFRS 9. See Revenue from contracts with customers, Point n of the accounting policies.
The impairment of financial assets is detailed in Point k1.
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 other comprehensive income that have the nature of a debt instrument are the financial assets held by the Company 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 Company’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 the 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 financial assets that meet the definition of equity under the 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 that 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 irrevocably classify 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 and receivables. 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 the amortised cost are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at the 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.
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 depreciation 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, cancelled or expire.
Trade liabilities and other operating liabilities are stated at fair value upon initial recognition and at amortised cost after initial recognition.
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 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 by the Company. 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 financial income or expenses.
When a forward financial instrument 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 the comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as a finance income or expense.
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 a gain or loss on the derivative financial instruments.
When a commodity derivative financial instrument 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 the comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as a gain or loss on the derivative financial instruments.
Interest rates on loans received are exposed to a risk of interest rate fluctuations that 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 another finance income or expense.
Under the IFRS 9, commodity forward contracts the purpose of which is not the 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 the IFRS 9.
Forward purchase and sale transactions concluded to ensure the physical settlement of goods are treated outside the scope of the IFRS 9 when the contract comprising those transactions is treated as being part of the ordinary course of business to ensure the physical delivery of goods, provided that the following conditions are met:
As commodity forward contracts in electricity trade 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 a gain/loss from derivatives. However, forward contracts for the supply of electricity meet the above conditions and are therefore treated outside the provisions of the IFRS 9.
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 the 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. In accordance with the Companies Act, legal reserves may be used in excess to increase share capital from the assets of the company and to cover net and carried-forward losses, provided that profit reserves are not used at the same time to pay out profits to shareholders.
If the Company acquires an ownership interest, the amount paid, including transaction costs less tax, is deducted from the 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 capital surplus net of transaction costs and related tax effects.
At the time of preparing the annual report, the Company may form other profit reserves up to 50% of the net profit or loss for the year. Other profit reserves may be used for any purpose in accordance with the Act, the Articles of Association, the operating policy and the resolutions of the General Meeting.
The fair value reserve comprises the effect of the upstream merger 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.
Goodwill arises on the upstream merger of a subsidiary. An upstream merger of a subsidiary to the controlling company is accounted for at the carrying amount from highest level of consolidation, in the case of any goodwill arising from a business combination, goodwill is recognised at the Group’s cost. Any difference between the net assets of the merged company plus goodwill and the investment in the merged company is recognised in other profit reserves. After the initial recognition, the Company performs a goodwill adequacy check once a year. 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 the 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 a 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 depreciation and any accumulated impairment losses. The duration of the right is linked to the duration of the concession agreement.
For more details, see Business report 14. Operations by product groups.
The 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 the 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 depreciation 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 the distribution of natural gas, which are described below, intangible fixed assets mostly comprise 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.
Amortisation is calculated on a straight-line basis, taking into account the useful life of intangible fixed assets. Depreciation begins when the asset is available for use.
| (in %) | 2022 | 2021 |
|---|---|---|
| Right to use concession infrastructure | 2.00-20.00 | 2.00-20.00 |
| Material and other rights |
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
The impairment of assets is detailed in Point k2.
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 with 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 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.
The depreciation rates based on the estimated useful lives for the current and comparative periods are as follows:
| (in %) | 2022 | 2021 |
|---|---|---|
| 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 |
| Machinery: | ||
| Pumping equipment at service stations | 5.00-25.00 | 5.00-25.00 |
| Freight cars, rail tankers | 25.00 | 25.00 |
| Equipment: | ||
| Mechanical and electronic equipment for maintenance of other equipment | 10.00-25.00 | 10.00-25.00 |
| Gas station equipment | 3.33-20.00 | 3.33-20.00 |
| Motor vehicles | 10.00-25.00 | 10.00-25.00 |
| Computer hardware | 15.00-25.00 | 15.00-25.00 |
| Office equipment, furniture | 6.70-16.10 |
| 33.33 | 33.33 |
|---|---|
| 4.00-25.00 | 4.00-25.00 |
|---|---|
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 241
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Public
The 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.
The impairment of assets is detailed in Point k2.
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. Environmental fixed assets are part of buildings and equipment.
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 plant, property and equipment. The impairment of assets is detailed in Point k2.
The Company considers as investment property all property held by the Group that is fully or partially leased out to third parties. The Company’s consideration takes into account the intended use of the property and the long-term goals pursued.
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 it exceeds 5 percent of the property value.
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 the 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 a 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 the range:
The Company applies a single recognition and measurement approach for all leases, except for short-term leases whose lease term expires earlier than 12 months from initial use 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 the lease relates. Low-value leases are leases of assets with an individual value of less than EUR 4,300 (the value of the new asset being leased is taken into account).
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 242
Javno
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.
| (in %) | 2022 | 2021 | |
|---|---|---|---|
| Lands | 3.33-20.00 | 3.33-20.00 | |
| Buildings | 5.00-20.00 | 5.00-20.00 | |
| Equipment: | Equipment | 10.00-100.00 | 10.00-100.00 |
| Motor vehicles | 16.67-33.33 | 16.67-33.33 |
If the 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 Company’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 Company 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 the lease liabilities is increased to reflect the accretion of interest and reduced by the lease payments made. In addition, the carrying amount of the 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 expenses are charged to finance expenses for the period.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 243
Javno
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 expenses on a straight-line basis over the lease term.
Inventories of merchandise and materials are measured at the lower of the cost and net realisable values.
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.
The 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 weighted average price method for fuel stocks is used for the use of stocks in the cost of goods sold and the FIFO method for merchandise stocks.
In accordance with the IFRS 9, the Company use 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 impairments. If it is assessed that the carrying amount of receivables exceeds their fair value, i.e. the collectable 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 a 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 and the expected credit loss is also reduced by expected offsets of trade receivables against trade payables.
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.
management board’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.
The Company recognises the creation, reversal of allowances and recoveries of written-off receivables as net allowances for operating receivables within operating expenses. The Company evaluates evidence about the impairment of loans individually for each significant loan.
On each reporting date, the Company reviews the carrying amounts of significant non-financial assets to determine whether there is any indication of impairment. If any such indication exists, 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 after the deduction of depreciation write-off if no impairment loss had been recognised in previous years.
In the case of points of sale, the Company defined that it 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 the interdependence of individual points of sale, the Company determined that identifying the point-of-sale network as a level at which to check for signs of impairment was the most appropriate approach. In case of indicators of impairment on the network, impairment is done on the level of individual point of sale.
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 the most recent available financial results, the management’s expectations for the future and market assumptions.
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.
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.
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 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 the 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.
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 the 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 the 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.
Long-term deferred income comprises deferred income 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 income is restated under other income in proportion to the depreciation of environmental fixed assets. The portion of the deferred income attributable to the period under 12 months is moved to the current deferred income.
Revenue from contracts with customers is recognised once the control of goods or services is transferred to a customer in 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 the goods. Gains on commodity forward contracts are also recognised as revenue from the sale of goods, where there is an actual physical delivery of electricity.
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 the 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.
In instalment sales, the Company separately recognises revenue from the sale of goods and finance income deferred over the entire contract term. The finance income to total purchase price ratio is assessed based on discounted future cash flows flowing to the Company based on the sale. The Company mainly sells solar power plants on an instalment basis.
The Company 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, segment merchandise and services.
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 the payment of the consideration is due). See the accounting policies on the recognition of financial assets in the section Financial assets.
A contract liability is an 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 received prepayments, 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, 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.
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 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.
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 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 assets by taking into account the following fair value hierarchy:
The Company 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 if the market is considered inactive, the Company 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 Company.
The methods of determining the fair values of individual groups of assets for measurement or reporting purposes are described below.
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.
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 the owners of the controlling company 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 the owners of the controlling company 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 2021 and 31 December 2022 and data derived from the statement of profit or loss for the period January to December 2022. The default interest paid and received in connection with operating receivables and interest on loans are allocated to cash flows from operating activities. The dividends paid are allocated to cash flows from financing activities and dividends received are allocated to the cash flows from investment activities.
The standards and interpretations disclosed below have been issued but were not yet effective as of 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.
them on the required effective date.
(issued on 12 February 2021 and effective for annual periods beginning on or after 1 January 2023).
The IAS 1 was amended to require companies to disclose their material accounting policy information rather than their significant accounting policies. The amendment provided the definition of material accounting policy information. The amendment also clarified that accounting policy information is expected to be material if, without it, the users of the financial statements would be unable to understand other material information in the financial statements. The amendment provided illustrative examples of accounting policy information that is likely to be considered material to the entity’s financial statements. Further, the amendment to the IAS 1 clarified that immaterial accounting policy information need not be disclosed. However, if it is disclosed, it should not obscure material accounting policy information. To support this amendment, the IFRS Practice Statement 2, ‘Making Materiality Judgements’ was also amended to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
(issued on 18 May 2017 and effective for annual periods beginning on or after 1 January 2023).
IFRS 17 replaces IFRS 4, which has given companies dispensation to carry on accounting for insurance contracts using existing practices. As a consequence, it was difficult for investors to compare and contrast the financial performance of otherwise similar insurance companies. IFRS 17 is a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. The standard requires recognition and measurement of groups of insurance contracts at: (i) a risk-adjusted present value of the future cash flows (the fulfilment cash flows) that incorporates all of the available information about the fulfilment cash flows in a way that is consistent with observable market information; plus (if this value is a liability) or minus (if this value is an asset) (ii) an amount representing the unearned profit in the group of contracts (the contractual service margin). Insurers will be recognising the profit from a group of insurance contracts over the period they provide insurance coverage, and as they are released from risk. If a group of contracts is or becomes loss-making, an entity will be recognising the loss immediately.
The amendments are not expected to have impact on the Group’s consolidated financial statements or the Company’s separate financial statements.
(issued on 25 June 2020 and effective for annual periods beginning on or after 1 January 2023).
The amendments include a number of clarifications intended to ease implementation of IFRS 17, simplify some requirements of the standard and transition. The amendments relate to eight areas of IFRS 17, and they are not intended to change the fundamental principles of the standard. The following amendments to IFRS 17 were made:
margin of a related group of reinsurance contracts held and recognise a gain on the reinsurance contracts held. The amount of the loss recovered from a reinsurance contract held is determined by multiplying the loss recognised on underlying insurance contracts and the percentage of claims on underlying insurance contracts that the entity expects to recover from the reinsurance contract held. This requirement would apply only when the reinsurance contract held is recognised before or at the same time as the loss is recognised on the underlying insurance contracts.
− Other amendments: Other amendments include scope exclusions for some credit card (or similar) contracts, and some loan contracts; presentation of insurance contract assets and liabilities in the statement of financial position in portfolios instead of groups; applicability of the risk mitigation option when mitigating financial risks using reinsurance contracts held and non-derivative financial instruments at fair value through profit or loss; an accounting policy choice to change the estimates made in previous interim financial statements when applying IFRS 17; inclusion of income tax payments and receipts that are specifically chargeable to the policyholder under the terms of an insurance contract in the fulfilment cash flows; and selected transition reliefs and other minor amendments.
The amendments are not expected to have impact on the Group’s consolidated financial statements or the Company’s separate financial statements.
(issued on 12 February 2021 and effective for annual periods beginning on or after 1 January 2023).
The amendment to the IAS 8 clarified how companies should distinguish changes in accounting policies from changes in accounting estimates.
The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
– Amendments to the IAS 12 (issued on 7 May 2021 and effective for annual periods beginning on or after 1 January 2023).
The amendments to the IAS 12 specify how to account for deferred tax on transactions such as leases and decommissioning obligations. In specified circumstances, entities are exempt from recognising deferred tax when they recognise assets or liabilities for the first time. Previously, there had been some uncertainty about whether the exemption applied to transactions such as leases and decommissioning obligations – transactions for which both an asset and a liability are recognised. The amendments clarify that the exemption does not apply and that entities are required to recognise deferred tax on such transactions. The amendments require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences.
The Group/Company is currently assessing the impact of the amendments and plans to adopt them on the required effective date.
Transition option to insurers applying IFRS 17 – Amendments to IFRS 17 (issued on 9 December 2021 and effective for annual periods beginning on or after 1 January 2023).
The amendment to the transition requirements in IFRS 17 provides insurers with an option aimed at improving the usefulness of information to investors on initial application of IFRS 17. The amendment relates to insurers’ transition to IFRS 17 only and does not affect any other requirements in IFRS 17. The transition requirements in IFRS 17 and IFRS 9 apply at different dates and will result in the following one-time classification differences in the comparative information presented on initial application of IFRS 17: accounting mismatches between insurance contract liabilities measured at current value and any related financial assets measured at amortised cost; and
fan entity chooses to restate comparative information for IFRS 9, classification differences between financial assets derecognised in the comparative period (to which IFRS 9 will not apply) and other financial assets (to which IFRS 9 will apply).
to that financial asset, but not require an entity to apply the impairment requirements of IFRS 9; and require an entity that applies the classification overlay to a financial asset to use reasonable and supportable information available at the transition date to determine how the entity expects that financial asset to be classified applying IFRS 9.
The amendments are not expected to have impact on the Group’s consolidated financial statements or the Company’s separate financial statements.
(issued on 22 September 2022 and effective for annual periods beginning on or after 1 January 2024).
The amendments relate to sale and leaseback transactions that satisfy the requirements in the IFRS 15 to be accounted for as a sale. The amendments require the seller-lessee to subsequently measure liabilities arising from the transaction and in such a way that it does not recognise any gain or loss related to the right of use that it retained. This means the deferral of such a gain even if the obligation is to make variable payments that do not depend on an index or a rate. 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.
(originally issued on 23 January 2020 and subsequently amended on 15 July 2020 and 31 October 2022, ultimately effective for annual periods beginning on or after 1 January 2024).
These amendments clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities are non-current if the entity has a substantive right, at the end of the reporting period, to defer settlement for at least twelve months. The guidance no longer requires such a right to be unconditional. The October 2022 amendment established that loan covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. The Management’s expectations of whether they will subsequently exercise the right to defer settlement do not affect the classification of liabilities. A liability is classified as current if a condition is breached at or before the reporting date even if a waiver of that condition is obtained from the lender after the end of the reporting period. Conversely, a loan is classified as non-current if a loan covenant is breached only after the reporting date. In addition, the amendments include clarifying the classification requirements for debt that a company might settle by converting it into equity. ‘Settlement’ is defined as the extinguishment of a liability with cash, other resources embodying economic benefits or an entity’s own equity instruments. There is an exception for convertible instruments that might be converted into equity, but only for those instruments where the conversion option is classified as an equity instrument as a separate component of a compound financial instrument. 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 Board (Chief Operating Decision Maker) to make decisions about resources to be allocated to a segment and assess the Group’s performance.
As of 1 January 2022, the Management Board monitors data at four segments. The Group uses the following segments both in the preparation and presentation of its financial statements:
The data for the comparative period has also been adjusted to the new method of reporting on segments.
| Segment | Statement of profit or loss | |||
|---|---|---|---|---|
| Sales revenue | Revenue from subsidiaries | |||
| Fuels and petroleum products | 2,676,612,412 | (507,079,552) | ||
| Merchandise and services | 470,372,591 | (858,794) | ||
| Energy and solutions | 2,453,988,995 | (139,173,375) | ||
| Other | 9,693,281 | (3,429,593) | ||
| Total | 5,610,667,279 | (650,541,314) |
| 2,169,532,860 | 469,513,797 | 2,314,815,620 | 6,263,688 | 4,960,125,965 | 4,960,125,965 | |
|---|---|---|---|---|---|---|
| Cost of goods sold | (1,858,167,801) | (352,318,850) | (2,206,051,719) | (163,145) | (4,416,701,515) | (4,416,701,515) |
| Adjusted gross profit | 311,365,060 | 117,194,947 | 108,763,901 | 6,100,543 | 543,424,450 | 543,424,450 |
| Operating profit or loss | 78,412,083 | 49,999,343 | 20,891,531 | 1,825,837 | 151,128,793 | 151,128,793 |
| Depreciation of property, plant and equipment, depreciation of right-of-use assets, depreciation of investment property and amortisation of intangible assets | (64,326,701) | 8,464,079 | (23,161,381) | (67,755) | (79,091,758) | (79,091,758) |
| EBITDA | 127,069,934 | 60,753,573 | 48,024,779 | 2,286,360 | 238,134,646 | 238,134,646 |
| Depreciation and amortisation | (79,091,758) | |||||
| Net allowance for trade receivables | (7,914,095) | |||||
| Share of profit or loss of equity accounted investees | 2,583,771 | |||||
| Net finance expense | (2,264,537) | |||||
| Profit/(loss) before tax | 151,448,027 |
EBITDA and adjusted gross profit are alternative performance measures.
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
| Segment | Fuels and petroleum products | Merchandise and services | Energy and solutions | Other | Total | |
|---|---|---|---|---|---|---|
| Statement of profit or loss | Sales revenue | 5,937,520,958 | 520,514,114 | 4,865,131,891 | 12,177,973 | 11,335,344,937 |
| Revenue from subsidiaries | (1,562,312,529) | (405,121) | (310,896,174) | (4,997,616) | (1,878,611,439) | |
| Sales revenue | 4,375,208,430 | 520,108,993 | 4,554,235,718 | 7,180,357 | 9,456,733,497 | |
| Cost of goods sold | (4,160,047,021) | (374,422,267) | (4,528,784,668) | (30,992) | (9,063,284,948) | |
| Adjusted gross profit | 215,161,408 | 145,686,726 | 25,451,050 | 7,149,365 | 393,448,549 | |
| Operating profit or loss | (59,732,637) | 59,836,856 | (13,837,601) | 5,820,510 | (7,912,872) | |
| Depreciation of property, plant and equipment, depreciation of right-of-use assets, depreciation of investment property and amortisation of intangible assets | (58,516,999) | (8,544,958) |
| (28,214,192) | (1,023,922) | (96,300,070) | (96,300,070) | |||
|---|---|---|---|---|---|---|
| EBITDA | 2,456,353 | 68,818,327 | 18,198,835 | 6,844,432 | 96,317,947 | 96,317,947 |
| Depreciation and amortisation | (96,300,070) | |||||
| Net allowance for trade receivables | (7,930,749) | |||||
| Share of profit or loss of equity accounted investees | 3,328,395 | |||||
| Net finance expense | (5,228,875) | |||||
| Profit/(loss) before tax | (9,813,352) |
EBITDA and adjusted gross profit are alternative performance measures.
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
Adjusted gross profit = Sale revenue – Cost of goods sold.
Assets and net investments are not disclosed by segment. They are reported by geographical area, as reviewed by the Management Board.
| Geographic Area | Sales Revenue (in EUR) | Total Assets (in EUR) | Net Investments (in EUR) | |||
|---|---|---|---|---|---|---|
| Slovenia | 4,017,985,870 | 2,318,794,060 | 1,674,869,418 | 1,385,093,355 | 35,563,085 | 37,883,262 |
| Croatia | 1,622,605,372 | 892,630,457 | 735,407,533 | 729,205,431 | 19,592,304 | 188,763,187 |
| Austria | 468,110,434 | 189,705,906 | 5,070,379 | 2,521,013 | - | - |
| Bosnia and Herzegovina | 355,988,228 |
| Serbia | 157,179,446 | 93,997,700 | 84,410,027 | 357,945 | 158,544 | |
|---|---|---|---|---|---|---|
| Montenegro | 233,284,499 | 126,953,533 | 116,865,024 | 97,542,278 | 4,046,258 | 6,256,121 |
| Macedonia | 83,258,002 | 42,138,531 | 35,279,180 | 34,663,240 | 227,712 | 142,741 |
| Romania | 6,457,655 | 7,185,333 | 228,555 | 737,181 | - | - |
| Other countries | 2,664,763,671 | 1,198,710,544 | 1,941,861 | 1,920,285 | 7,710 | - |
| Total assets | 9,456,733,497 | |||||
| Jointly controlled entities | 1,277,748 | |||||
| Associates | 704,501 | |||||
| Unallocated assets | 56,968,277 | |||||
| Unallocated assets | 55,169,626 | |||||
| Total assets | 18,190,424 | |||||
| Total assets | 2,740,604,417 | |||||
| Total assets | 2,403,821,011 |
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.
The Group did not acquire a new company in 2022.
Crodux derivati dva d.o.o. Under a contract for the sale and purchase of interests, which was concluded in 2021, 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 control 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 dva 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.
Because the business combination took place at the end of 2021 and the fair value of the assets as at 31 December 2021 could not be determined with certainty, the acquired assets as at 31 December 2021 were recognised at provisional values.
In 2022, 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 the purchase price. The fair value of property, plant and equipment and rights to use leased assets was estimated using the present value method of expected cash flows, which are based on the future financial plans of the Company.
The valuation applied the company's five-year financial plans, a required after-tax rate of return of 9.63% and an annual growth rate of residual free cash flow of 1.5%. Goodwill was assessed at the aggregate level of the acquired company as Crodux derivati dva d.o.o. is one cash-generating unit from the Group's perspective.
| (in EUR) | Restated fair value | Provisional fair value |
|---|---|---|
| Cash and cash equivalents | 9,891,052 | 9,891,052 |
| Intangible assets | 7,713,630 | 5,328,030 |
| Right-of-use assets | 67,053,363 | 47,507,231 |
| Property, plant and equipment | 157,966,847 | 67,907,084 |
| Investment property | 120,243 | 120,243 |
| Deferred tax assets | 571,383 | 571,383 |
| Inventories | 23,406,527 | 21,581,519 |
| Contract assets | 128,366 | 128,366 |
| Loans | 80,520,260 | 80,520,260 |
|---|---|---|
| Operating receivables | 51,379,005 | 51,589,121 |
| Prepayments and other assets | 822,789 | 822,789 |
| Assets | 399,573,465 | 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 |
| Deferred tax liabilities | 20,449,150 | - |
| Corporate income tax liabilities | 2,008,426 | 2,008,426 |
| Contract liabilities | 1,055,690 | 1,055,690 |
| Other liabilities | 5,297,970 | 5,297,970 |
| Liabilities | 263,610,587 | 243,161,437 |
| Net assets upon acquisition | 135,962,878 | 42,805,641 |
| Purchase price | 191,700,000 | 191,700,000 |
| Deferred payment | 10,000,000 | 10,000,000 |
| Goodwill | 55,737,122 | 148,894,359 |
| Amount paid | 181,700,000 | 181,700,000 |
| Cash and cash equivalents | 9,891,052 | 9,891,052 |
| Net payment | 171,808,948 | 171,808,948 |
In 2022, 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 the purchase price and reflecting it in the 2021 financial statements. For more details, see Note 2.f.
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 control 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 the day of gaining control 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) | 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 |
|---|---|
| Lease liabilities | 120,462 |
| Operating liabilities | 18,341,741 |
| Contract liabilities | 726,625 |
| Other liabilities | 619,764 |
| Liabilities | 24,011,038 |
| Net assets upon acquisition | 16,129,726 |
|---|---|
| 15,179,307 | |
| Purchase price | 14,950,000 |
| Bargain purchase | 1,179,726 |
| Amount paid | 14,950,000 |
| Cash and cash equivalents | 792,219 |
| Net payment | 14,157,781 |
The Group recognised the bargain purchase in other finance income in the 2021 income statement.
In 2022, Petrol d.d.:
Crodux derivati dva d.o.o. was merged into Petrol d.o.o., Zagreb in November 2022. The upstream merger had no impact on the Group’s financial statements as Petrol d.d. was the sole owner of Crodux derivati dva d.o.o.
In December 2022, Ekoen GG d.o.o. was merged into Ekoen d.o.o. with an effective date of 30 September 2022. The upstream merger had no impact on the Group’s financial statements as Ekoen d.o.o., a subsidiary of Petrol d.d., was its sole owner.
In 2021, Petrol d.d.:
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 261
Javno
− Liquidated Petrol Trade Slovenia L.L.C. and Petrol Praha CZ S.R.O. The impact on the Group’s financial statements is presented in Note 6.19;
− Sold a 50 percent interest in the jointly controlled entity Vjetroelektrana Dazlina d.o.o. In 2021, Petrol d.o.o. Beograd established three subsidiaries: Petrol Lumennis ZA JO d.o.o. Beograd, Petrol Lumennis ŠI JO d.o.o. Beograd and Petrol KU 2021 d.o.o. Beograd, which operate in the segment of energy and environmental solutions. Petrol d.o.o. Beograd is the sole owner of the two companies.
| The Petrol Group | Petrol d.d. | (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|---|---|
| Revenue from the sale of merchandise | 9,309,295,575 | 4,839,400,223 | 7,207,075,854 | 3,460,089,296 | ||
| Revenue from the sale of services | 123,382,883 | 100,885,679 | 100,767,046 | 89,574,535 | ||
| Revenue from the sale of products | 24,055,039 | 19,840,063 | 17,482,620 | 12,803,708 | ||
| Total revenue | 9,456,733,497 | 4,960,125,965 | 7,325,325,520 | 3,562,467,539 |
| The Petrol Group | Petrol d.d. | (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|---|---|
| EU market sales revenue | 4,168,513,223 | 2,318,794,060 | 3,093,819,919 | 2,307,448,117 | ||
| Domestic sales revenue | 4,017,985,870 | 2,040,354,381 | 3,595,285,373 | 1,079,437,479 | ||
| Non-EU market sales revenue | 1,270,234,404 | 600,977,524 | 636,220,228 | 175,581,943 | ||
| Total revenue | 9,456,733,497 | 4,960,125,965 | 7,325,325,520 | 3,562,467,539 |
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Fuels and petroleum products | 4,375,208,430 | 2,169,532,860 | 3,817,278,960 | 1,697,126,445 |
| Merchandise and services | 520,108,993 | 469,513,797 | 368,774,771 | 390,798,929 |
| Energy and solutions | 4,554,235,718 | 2,314,815,620 | 3,132,243,066 | 1,468,935,919 |
| Other | 7,180,357 | 6,263,688 | 7,028,723 | 5,606,246 |
| Total revenue | 9,456,733,497 | 4,960,125,965 | 7,325,325,520 | 3,562,467,539 |
The Group’s/Company’s sales revenue includes rental income. In 2022, the Group generated EUR 4,593,925 in rental income (2021: EUR 4,083,960) and the Company EUR 3,369,870 (2021: EUR 3,068,650).
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Gain on disposal of plan, property and equipment | 2,826,755 | 694,563 | 820,584 | 367,422 |
| Compensation received from insurance companies | 269,380 | 244,184 | 28,442 | 103,091 |
| Compensation, lawsuits, contractual penalties received | 129,603 | 997,066 | 54,275 | 807,961 |
| 123,884 | 131,183 | 100,978 | 79,213 |
|---|---|---|---|
| 99,071,440 | 5,349,657 | 5,439,646 | 3,625,362 | |
|---|---|---|---|---|
| Total other income | 102,421,062 | 7,416,653 | 6,443,925 | 4,983,049 |
In 2022, the subsidiary Geoplin d.o.o. recorded a negative operating result due to the non-delivery of natural gas under a long-term contract with Russia's Gazprom.
We have analysed the damages arising from our business with Gazprom and have identified the following realised damages up to the end of 2022, totalling EUR 140.3 million:
On 27 December 2022, we notified Gazprom of the realised damages and that our outstanding liability to Gazprom for natural gas delivered for the months of October and November 2022, totalling EUR 92.1 million, would be set off against a pro rata share of our claims for damages.
On 27 December 2022, we notified Gazprom of the termination of the contract due to the non-delivery of natural gas and to prevent further damage.
As a result of the above, we have derecognised the liabilities to Gazprom for natural gas delivered in the months of October and November 2022, totalling EUR 92,142 thousand, and have re-recognised and re-measured them at fair value as at 31 December 2022 in the amount of EUR 3,550 thousand.
Among other income, EUR 88,592 thousand relates to the revaluation of the liability to Gazprom to fair value based on an independent valuer’s valuation.
The valuation is based on a scenario method of different present values of the expected cash flows from the liability. The valuation of the liabilities takes into account the offsetting of our claims for damages arising from our business with Gazprom against Gazprom's liabilities. The claims for damages exceed our liabilities to Gazprom. The valuation used required rates of return ranging between 15 and 25 percent.
The fair value of the liability to Gazprom represents 4 percent of the historical cost. If the range of discount rates were increased or decreased, the fair value would decrease by EUR 90 thousand and increase by EUR 130 thousand, respectively. We estimate that a change in the remaining assumptions would not have a material effect on the fair value of these liabilities.
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Costs of energy | 30,102,486 | 21,471,005 | 23,082,756 | 18,411,758 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Costs of consumables | 8,132,585 | 6,867,875 | 4,954,424 | 4,908,925 |
| Write-off of small tools | 95,790 | 137,680 | 27,675 | 82,889 |
| Other costs of materials | 1,092,983 | 819,464 | 525,526 | 415,192 |
| Total costs of materials | 39,423,844 | 29,296,024 | 28,590,381 | 23,818,764 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Costs of transport services | 45,471,308 | 33,146,816 | 34,779,327 | 25,813,408 |
| Costs of service station managers | 32,639,895 | 30,812,368 | 32,639,895 | 30,812,368 |
| Costs of fixed-asset maintenance services | 28,743,771 | 24,904,966 | 19,723,393 | 18,793,301 |
| Costs of payment transactions and bank services | 15,959,548 | 12,872,038 | 10,044,627 | 7,960,337 |
| Costs of professional services | 11,889,278 | 9,428,504 | 8,008,946 | 6,952,438 |
| Lease payments | 9,577,561 | 8,441,011 | 8,898,635 | 5,965,952 |
| Costs of fairs, advertising and entertainment | 7,710,875 | 6,705,784 | 4,844,865 | 4,274,674 |
| Costs of insurance premiums | 6,922,009 |
| Outsourcing costs | 4,880,292 |
|---|---|
| 4,208,387 | |
| 2,891,553 | |
| Costs of environmental protection services | 5,304,401 |
| 4,034,087 | |
| 4,962,756 | |
| 3,734,872 | |
| Costs of fire protection and physical and technical security | 2,496,177 |
| 2,094,424 | |
| 1,507,812 | |
| 1,343,340 | |
| Membership fees | 2,316,803 |
| 2,289,964 | |
| 1,555,505 | |
| 1,763,982 | |
| Property management | 1,633,669 |
| 865,602 | |
| 245,944 | |
| 208,848 | |
| Reimbursement of work-related costs to employees | 1,601,807 |
| 1,206,789 | |
| 1,200,794 | |
| 906,228 | |
| Other costs of services | 1,463,794 |
| 969,200 | |
| 864,523 | |
| 508,490 | |
| Total costs of services | 6,406,429 |
| 5,046,074 | |
| 2,585,819 | |
| 2,275,198 | |
| 180,137,325 | |
| 147,697,919 | |
| 136,071,228 | |
| 114,204,989 |
The costs of professional services include the cost of services performed by the auditors of the annual report of EUR 308,150 (2021: EUR 231,465). Auditing services comprise the fee for the auditing of the annual report of EUR 300,150 (2021: EUR 193,565). Other, non-auditing services stood at EUR 8,000 in 2022 (2021: EUR 37,900).
The costs of professional services include the cost of services performed by the auditors of the annual report of EUR 93,000 (2021: EUR 73,000). Auditing services comprise the fee for the auditing of the annual report of EUR 88,000 (2021: EUR 72,600). Other, non-auditing services stood at EUR 5,000 in 2022 (2021: EUR 400).
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Salaries | 100,503,917 | 85,401,258 | 60,753,400 | 58,731,102 |
| Costs of other social insurance | 9,309,380 | 7,576,461 | 4,623,943 | 4,234,369 |
| Expense for define contribution plan | 6,842,468 | 6,691,637 | 5,393,248 | 5,604,526 |
| Transport allowance | 4,328,999 | 3,340,708 | 2,064,078 | 1,916,044 |
| Annual leave allowance | 4,038,516 | 2,816,497 | 3,398,196 | 2,343,077 |
| Meal allowance | 3,813,618 | 3,479,550 | 2,642,735 | 2,669,093 |
| Supplementary pension insurance | 1,928,255 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Depreciation of right-of-use assets | 21,260,001 | 12,802,769 | 4,347,502 | 3,983,028 |
| Finance expenses | 4,557,812 | 2,425,310 | 1,315,973 | 1,291,951 |
| Lease expenses | 9,577,561 | 8,441,011 | 8,898,635 | 5,965,952 |
| Total recognised costs/expenses | 35,395,374 | 23,669,090 | 14,562,110 | 11,240,931 |
| 1,648,409 | 1,800,820 | 1,520,449 |
|---|---|---|
| Other allowances and reimbursements | 4,797,156 | 3,386,989 |
| 1,452,877 | 1,300,331 | Total labour costs |
| 135,562,309 | 114,341,509 | 82,129,297 |
| 78,318,991 |
In line with the measures taken by countries to contain the COVID-19 epidemic, in 2022, the Group made use of measures relating to the unconditional reimbursement of labour costs of EUR 28,428 (2021: EUR 613,261) recording their effects as a decrease in labour costs.
In line with the measures taken by the state to contain the COVID-19 epidemic, in 2022, the Company made use of measures relating to the unconditional reimbursement of labour costs of EUR 28,428 (2021: EUR 357,311) recording this as a decrease in labour costs.
| The Petrol Group | Petrol d.d. | |||||
|---|---|---|---|---|---|---|
| Group employees | Employees at third-party managed service stations | |||||
| Total Company employees | Employees at third-party managed service stations | |||||
| Level I | 39 | 1 | 40 | 5 | 1 | 6 |
| Level II | 43 | 24 | 67 | 29 | 24 | 53 |
| Level III | 152 | 7 | 159 | 7 |
| Level | Employees | Employees at third-party managed service stations | Total Company employees |
|---|---|---|---|
| Level IV | 1,295 | 263 | 1,558 |
| Level V | 2,156 | 621 | 2,777 |
| Level VI | 515 | 50 | 565 |
| Level VII | 576 | 56 | 632 |
| Level VII/2 | 405 | 15 | 420 |
| Level VIII | 19 | - | 19 |
| Total | 5,200 | 1,037 | 6,237 |
| Total | Level I | Level II | Level III | Level IV | Level V | Level VI | Level VII | Level VII/2 | Level VIII |
|---|---|---|---|---|---|---|---|---|---|
| 38 | 5 | 43 | 14 | 5 | 19 | ||||
| 63 | 21 | 84 | 28 | 21 | 49 | ||||
| 100 | 7 | 107 | 10 | 7 | 17 | ||||
| 1,777 | 264 | 2,041 | 353 | 264 | 617 | ||||
| 1,836 | 589 | 2,425 | 858 | 589 | 1,447 | ||||
| 323 | 48 | 371 | 164 | 48 | 212 | ||||
| 662 | 60 | 722 | 378 | 60 | 438 | ||||
| 399 | 16 | 415 | 343 | 16 | 359 | ||||
| 16 | - | 16 |
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
| Depreciation of property, plant and equipment | 60,365,040 | 51,689,896 | 31,742,704 | 32,282,770 |
| Depreciation of right-of-use assets | 21,260,001 | 12,802,769 | 4,347,502 | 3,983,028 |
| Amortisation of intangible assets | 13,605,265 | 13,229,924 | 9,749,159 | 9,676,444 |
| Depreciation of investment property | 1,069,764 | 1,369,169 | 677,760 | 754,429 |
| Total depreciation and amortisation | 96,300,070 | 79,091,758 | 46,517,125 | 46,696,671 |
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
| Net allowance for trade receivables | 7,930,749 | 7,914,095 | 2,990,233 | 3,003,074 |
| Environmental charges and charges unrelated to |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| 7,891,323 | 6,534,253 | 3,567,023 | 4,099,121 | |
| Impairment of PPE, investment property and inventories | 6,194,071 | 14,259,583 | 7,024 | 2,705,061 |
| Sponsorships and donations | 2,404,579 | 2,034,138 | 1,788,066 | 1,581,268 |
| Loss on sale/disposal of property, plant and equipment | 518,057 | 1,321,765 | 324,091 | 1,021,237 |
| Impairment of investments | - | - | - | 11,193,296 |
| Other costs (reversal of other provisions and other liabilities) | (8,462,620) | 30,548,619 | (593,642) | 26,256,662 |
| Total other costs | 16,476,159 | 62,612,453 | 8,082,795 | 49,859,719 |
In 2022, the Group/Company reversed part of the long-term provisions. The value of the reversal of long-term provisions exceeds the value of the provisions made, which is reflected in the negative value of the reversal of other provisions and other liabilities.
The impairment of the Group’s assets relates to the impairment of inventories to the net realisable value of EUR 6,194,071 (2021: EUR 7,205,752).
Among other costs, EUR 20,924,453 in the Group/Company in 2021 relates to the costs of recognising short-term provisions from onerous contracts with customers for the supply of electricity, which were used up in 2022. This note should be read in conjunction with Notes 6.9 and 6.42.
| The Petrol Group | Petrol d.d. | (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|---|---|
| Gain from derivatives | 523,094,819 | 269,931,980 | 525,064,103 | 269,846,734 | ||
| Loss from derivatives | (558,699,150) | (235,728,482) | (551,271,270) | (236,333,237) | ||
| Gain/(Loss) from derivatives | (35,604,331) | 34,203,498 |
(26,207,167)
33,513,497
Gains and losses increased in 2022 compared to 2021 due to the higher market electricity prices and increased volatility of these prices.
| The Petrol Group | (in EUR) | 2022 | 2021 |
|---|---|---|---|
| Plinhold d.o.o. | 1,646,458 | 1,424,430 | |
| Aquasystems d.o.o. | 912,173 | 814,857 | |
| Knešca d.o.o. | 104,281 | 48,026 | |
| Ivicom Energy d.o.o. | - | (3,582) | |
| Total net profit of associates | 2,662,912 | 2,283,731 | |
| Geoenergo d.o.o. | (246,684) | 187,370 | |
| Soenergetika d.o.o. | 912,333 | 112,670 | |
| Vjetroelektrana Dazlina d.o.o. | (166) | - | |
| Total net profit of jointly controlled entities | 665,483 | 300,040 | |
| Total net finance income from interests | 3,328,395 | 2,583,771 |
| Petrol d.d. | (in EUR) | 2022 | 2021 |
|---|---|---|---|
| Geoplin d.o.o. Ljubljana | - | 958,260 | |
| Petrol Hidroenergija d.o.o. | 299,422 | 713,159 | |
| Petrol Trade Handelsgesellschaft m.b.H. | 423,738 | 151,905 | |
| Total subsidiaries | 723,160 | 1,823,324 | |
| Aquasystems d.o.o. | 814,437 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Foreign exchange differences | 80,079,268 | 15,516,194 | 74,011,689 | 12,635,432 |
| Gain on derivatives | 19,687,756 | 4,525,059 | 19,687,756 | 7,093,905 |
| Interest income | 5,337,485 | 10,065,835 | 5,455,669 | 3,279,520 |
| Loss allowances for financial receivables reversed | 638,125 | 343,056 | 638,125 | 343,056 |
| Other finance income | 3,506,782 | 1,383,319 | 3,525,648 | 136,286 |
| Total finance income | 109,249,416 | 31,833,463 | 103,318,887 | 23,488,199 |
| Foreign exchange differences | (80,848,842) | (20,417,028) | (74,625,841) | (16,601,747) |
| Loss on derivatives | (16,624,554) | (2,016,266) | (16,624,554) | (2,016,266) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | (14,427,380) | (9,189,739) |
| 2021 | (11,331,719) | (9,218,597) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | - | (873,366) |
| 2021 | - | - |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | (2,577,515) | (1,601,601) |
| 2021 | (2,438,888) | (1,628,763) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | (114,478,291) | (34,098,000) |
| 2021 | (105,021,002) | (29,465,373) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | (5,228,875) | (2,264,537) |
| 2021 | (1,702,115) | (5,977,174) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | (4,258,179) | (786,831) |
| 2021 | (30,683,697) | (18,781,868) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | 11,385,725 | 2,346,643 |
| 2021 | 3,717,031 | 1,867,467 |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | 7,127,546 | 1,559,812 |
| 2021 | (26,966,666) | (16,914,401) |
| The Petrol Group | Petrol d.d. | |
|---|---|---|
| 2022 | (9,813,352) | 17,824,066 |
| 2021 | 151,448,027 | 83,397,343 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 268
| 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|
| Tax at effective tax rate | (1,864,537) | 28,775,125 | 3,386,573 | 15,845,495 |
| Tax effect of untaxed revenue | (4,750,994) | (3,009,646) | (3,443,483) | (2,278,094) |
| Tax effect of expenses not deducted on tax assessment | 152,605 | 1,794,663 | (1,502,902) | 3,347,000 |
| Effect of higher/lower tax rates for companies abroad | (664,620) | (593,476) | - | - |
| Taxes | (7,127,546) | 26,966,666 | (1,559,812) | 16,914,401 |
| Effective tax rate | 72.63 % | 17.81 % | -8.75 % | 20.28 % |
As at 31 December 2022, the Group has a corporate income tax receivable of EUR 23,897,315 (2021: EUR 616,729) and EUR 1,062,768 in income tax liabilities (2021: EUR 18,786,511). 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 2022 (2021: 19 percent), whereas the Group’s tax rates ranged from 9 to 25 percent.
| Deferred tax assets | (in EUR) |
|---|---|
| Investments | 1,568,770 |
| Provisions | 3,242,729 |
| Allowance for receivables and impairment of assets | 6,540,846 |
| Inventories | 100,499 |
| Tax loss | 557,962 |
| Depreciation/amortisation | 42,093 |
| Other | 454,506 |
| Total | 12,507,405 |
| Netting | (2,601,373) |
| Total net receivables as at 1 January |
| New acquisitions as a result of control obtained | 9,906,032 | |||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 10,260 | (293,626) | 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 | 701,810 | 5,626,768 | 9,269,273 | 114,330 | 986,989 | 52,353 | 258,254 | 17,009,777 |
| Netting | (5,630,103) | |||||||
| Total net receivables as at 31 December 2021 | 11,379,674 | |||||||
| (Charged)/credited to the statement of profit or loss | (122,962) | (3,457,283) | (464,664) | 1,062,075 | 8,183,166 | 5,120,454 | (29,267) | 10,291,519 |
| (Charged)/credited to other |
| 3,003,714 | - | - | - | - | - | 3,003,714 |
|---|---|---|---|---|---|---|
| 216 | (17,203) | (3,802) | (274) | (2,011) | - | (1,139) | (24,213) |
|---|---|---|---|---|---|---|---|
| 3,582,778 | 2,152,282 | 8,800,807 | 1,176,131 | 9,168,144 | 5,172,807 | 227,848 | 30,280,797 |
|---|---|---|---|---|---|---|---|
(12,090,373)
18,190,424
| Investments | Fixed Assets | Other | Total | |
|---|---|---|---|---|
| As at 1 January 2021 | 161,456 | 6,387,436 | 38,181 | 6,587,073 |
| Netting | (2,601,373) | |||
| Total Net Liabilities as at 1 January 2021 | 3,985,700 | |||
| New Acquisitions as a Result of Control Obtained | - | 21,174,793 | - | 21,174,793 |
| (Charged)/Credited to the Statement of Profit or Loss | - | (84,087) | 9,954 | (74,133) |
| Charged/(Credited) to Other Comprehensive Income |
| (7,529) | - | (7,529) | ||
|---|---|---|---|---|
| 29 | (96,892) | - | (96,863) | |
| As at 31 December 2021 | 153,956 | 27,381,250 | 48,135 | 27,583,341 |
| Netting | (5,630,103) | Total net receivables as at 31 December 2021 | 21,953,238 | |
| (Charged)/credited to the statement of profit or loss | 293 | (1,146,350) | 51,094 | (1,094,963) |
| (Charged)/credited to other comprehensive income | 6,337,345 | - | - | 6,337,345 |
| Foreign exchange differences | (17) | (52,792) | - | (52,809) |
| As at 31 December 2022 | 6,491,577 | 26,182,108 | 99,229 | 32,772,914 |
| Netting | (12,090,373) | Total net liabilities as at 31 December 2022 | 20,682,541 |
| Deferred tax assets | (in EUR) | Investments | Provisions | Allowance for receivables | Depreciation/amortisation | Other | Total |
|---|---|---|---|---|---|---|---|
| As at 1 January 2021 | 1,409,555 | 1,263,024 | 4,524,144 | - | 317,693 | 7,514,416 | |
| Netting | (602,411) | Total net receivables as at 1 January 2021 | 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 |
| (Charged)/credited to the statement of profit or loss | (65,938) | (2,374,477) | (186,129) | 5,120,327 |
| (147,140) | 2,346,643 | (Charged)/credited to other comprehensive income | (177,418) | - |
| - | - | - | (177,418) | As at 31 December 2022 |
| 399,505 | 806,778 | 4,581,353 | 5,120,327 | 23,412 |
| 10,931,375 | Netting | (6,943,982) | Total net receivables as at 31 December 2022 | 3,987,393 |
The Group has deferred tax assets for depreciation and amortisation arising from the difference between tax and operating depreciation and amortisation.
| (in EUR) | Fixed assets | Total |
|---|---|---|
| Total net liabilities as at 1 January 2021 | - | - |
| As at 31 December 2021 | 145,380 | 606,636 |
| Netting | (606,636) | |
| Total net liabilities as at 31 December 2021 | - | |
| (Charged)/credited to other comprehensive income | 6,337,346 | 6,337,346 |
| As at 31 December 2022 | 6,482,726 | 6,943,982 |
| Netting | (6,943,982) | |
| Total net liabilities as at 31 December 2022 | - |
| The Petrol Group | Petrol d.d. | 2022 | 2021 | |
|---|---|---|---|---|
| Net profit attributable to owners of the controlling company (in EUR) | 4,520,125 | 119,079,575 | 19,383,878 | 66,482,942 |
| Number of shares issued | 41,726,020 | 41,726,020 | 41,726,020 | 41,726,020 |
| Number of own shares at the beginning of the year | 614,460 | 614,460 | 494,060 | 494,060 |
| Number of own shares at the end of the year | 614,460 | 614,460 | 494,060 | 494,060 |
| Weighted average number of ordinary shares issued | 41,111,560 | 41,111,560 | 41,231,960 | 41,231,960 |
| Diluted average number of ordinary shares | 41,111,560 | 41,111,560 |
0.11
2.90
0.47
1.61
Basic earnings per share are calculated by dividing the net profit attributable to owners of the parent company by the weighted average number of ordinary shares, excluding ordinary shares owned by the Company/Group. The Group and the Company have no potential dilutive ordinary shares, meaning the basic and diluted earnings per share are identical. Petrol's share is listed on the main board of the stock exchange under the ticker PETG. For both years, the number of shares after the 1: 20 split carried out in November 2022 is taken into account. The total number of PETG shares increased from 2,086,301 to 41,726,020.
The effective portion of the changes in the fair value of the cash flow variability hedging instrument increased by EUR 17,755,033 (in 2021: an increase of EUR 4,109,730) and decreased by the deferred tax effect of EUR 3,333,632 (in 2021: a decrease of EUR 772,591). Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 271
The change relates to interest rate swap hedging, commodity derivative financial instruments and forward contracts and increases the hedging reserve. The balance of the hedging reserve is explained in Note 6.32. Unrealised actuarial gains and losses relate to provisions for post-employment benefits on retirement.
The effective portion of the changes in the fair value of the cash flow variability hedging instrument increased by EUR 34,292,220 (in 2021: an increase of EUR 3,283,988) and decreased by the deferred tax effect of EUR 6,515,522 (in 2021: a decrease of EUR 623,957). The change relates to interest rate swap hedging, commodity derivative financial instruments and increases the hedging reserve. The balance of the hedging reserve is explained in Note 6.32. 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 | ||
|---|---|---|---|---|---|---|---|
| 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 | 4,680,240 | 6,790,410 |
| New acquisitions | 55,737,122 | 97,923 | 18,950 | 67,324,645 | ||
|---|---|---|---|---|---|---|
| Disposals | (347,753) | (7,183) | - | (47,110) | (279,602) | (681,648) |
| Impairments | - | - | (873,366) | - | - | (873,366) |
| Transfers between assets categories | 201,150 | - | - | - | (201,150) | - |
| Transfers between PPE and investment property | - | - | - | 64,656 | - | 64,656 |
| Transfer from ongoing investments | 7,694,856 | 1,306,460 | - | (9,001,316) | - | - |
| Foreign exchange differences | 22,453 | 15,188 | 99,329 | 2,707 | - | 139,677 |
| As at 31 December 2021 | 57,455,821 | 130,298,591 | 160,858,241 | 4,485,643 | 291,102 | 353,389,398 |
| Accumulated amortisation | As at 1 January 2021 | (26,023,005) | (59,455,652) | (13,536) | - | - |
| (85,492,193) | Amortisation | (7,892,334) | (5,337,590) | - | - | - | (13,229,924) |
|---|---|---|---|---|---|---|---|
| Disposals | 262,355 | 6,834 | - | - | - | 269,189 | |
| Foreign exchange differences | (8,825) | (10,423) | (5,767) | - | - | (25,015) | |
| As at 31 December 2021 | (33,661,809) | (64,796,831) | (19,303) | - | - | (98,477,943) | |
| 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 | 65,501,760 | 160,838,938 | 4,485,643 | 291,102 | 254,911,455 |
*The Group finalised the allocation of the purchase price of Crodux derivati dva d.o.o. in 2022. The changes are explained in Point 2.f.
| 57,455,821 | 130,298,591 | 160,858,241 | 4,485,643 | 291,102 | 353,389,398 |
|---|---|---|---|---|---|
| 695,909 | 25,989 | - | 6,975,101 | 1,013,588 | 8,710,587 |
|---|---|---|---|---|---|
| (398,911) | (270,036) | (19,268) | (3,115) | (119,824) | (811,154) |
|---|---|---|---|---|---|
| (57,863) | (5,477,567) | - | (955,289) | - | (6,490,719) |
|---|---|---|---|---|---|
| 2,717,411 | 1,930,526 | - | (4,647,937) | - | - |
|---|---|---|---|---|---|
| (16,979) | (34,498) | (153,661) | 2,202 | - | (202,936) |
|---|---|---|---|---|---|
| 60,395,388 | 126,473,005 | 160,685,312 | 5,856,605 | 1,184,866 | 354,595,176 |
|---|---|---|---|---|---|
| (33,661,809) | (64,796,831) | (19,303) | - | - | (98,477,943) |
|---|---|---|---|---|---|
| (8,035,813) | (5,569,452) | - | - | - | (13,605,265) |
|---|---|---|---|---|---|
| Disposals | 235,361 | 261,887 | 19,268 | - | - | 516,516 |
|---|---|---|---|---|---|---|
| Transfers between PPE and investment property | 13,033 | 2,229,123 | - | - | - | 2,242,156 |
| Foreign exchange differences | 7,964 | 10,834 | 35 | - | - | 18,833 |
| As at 31 December 2022 | (41,441,264) | (67,864,439) | - | - | - | (109,305,703) |
| Net carrying amount as at 1 January 2022 | 23,794,012 | 65,501,760 | 160,838,938 | 4,485,643 | 291,102 | 254,911,455 |
| Net carrying amount as at 31 December 2022 | 18,954,124 | 58,608,566 | 160,685,312 | 5,856,605 | 1,184,866 | 245,289,473 |
All the intangible assets presented herein are the property of the Group and are unpledged.
17.6 percent of all the intangible assets in use on 31 December 2022 were fully depreciated (compared to 16.1 percent as at 31 December 2021).
The Group’s intangible fixed assets were tested for impairment as at 31 December 2022 and no impairment of intangible fixed assets was identified.
In 2021, the Group impaired the goodwill of Zagorski metalac d.o.o. by EUR 873,366 on the basis of a review of indicators.
Goodwill structure presented by business combination from which it originates is as follows:
| The Petrol Group | (in EUR) | 31 December 2022 | 31 December 2021 |
|---|---|---|---|
| Instalacija d.o.o., Koper | 1 | 85,266,022 | 85,266,022 |
| Crodux derivati dva d.o.o. | 2 | 55,666,513 | 55,780,012 |
| Euro-Petrol d.o.o. | 3 | 12,626,888 |
| Company | Value 1 | Value 2 |
|---|---|---|
| Vjetroelektrana Ljubač d.o.o. | 12,652,682 | 2,579,423 |
| Atet d.o.o. | 2,584,691 | 2,434,972 |
| Petrol-Jadranplin d.o.o. | 747,045 | 748,569 |
| Vjetroelektrane Glunča d.o.o. | 357,979 | 358,710 |
| Crodux Plin d.o.o. | 264,429 | 280,768 |
| Petrol-Butan d.o.o. | 279,555 | 280,125 |
| MBills d.o.o. | 245,250 | 245,250 |
| Adria-Plin d.o.o. | 217,236 | 207,137 |
| Total goodwill | 160,685,312 | 160,838,938 |
In 2022, the Group recognised the assets of Crodux derivati dva d.o.o. at fair value in its consolidated financial statements, thus definitively allocating of purchase price, which had only been recognised temporarily in 2021. The impact on the financial statements is presented in Note 6.1.
Other changes in the value of goodwill are due to the translation of exchange rate differences.
In accordance with the IAS 36, goodwill was tested for impairment as at 31 December 2022. The test showed no need for impairment.
The impairment of goodwill is recognised if its carrying amount exceeds its recoverable amount. The recoverable amount of goodwill is the greater of its value in use and its fair value less costs to sell. The impairment test used the value in use, where expected future cash flows are discounted to their present value using a discount rate.
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.
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.
the 5-year financial plans of the cash-generating unit, the required rate of return of 9.03 percent before taxes (2021: 8.29 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 1.97 percent (2021: 1.97 percent) were used in testing goodwill for impairment.
the 5-year financial plans of the cash-generating unit, the required rate of return of 12.5 percent after taxes (2021: 8.5 percent) and the annual growth rate of the remaining free cash flows (the residual value) of -1 percent (2021: 2 percent) were used in testing goodwill for impairment. The testing of Petrol d.o.o.’s goodwill comprises goodwill arising from the upstream merger of Crodux derivati dva d.o.o., Euro-Petrol d.o.o., Petrol-Jadranplin d.o.o., Crodux Plin d.o.o. and Petrol-Butan d.o.o.
the 5-year financial plans of the cash-generating unit, the required rate of return of 7.8 percent after taxes (2021: 7.4 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2021: 2 percent) were used in testing goodwill for impairment.
the 5-year financial plans of the cash-generating unit, the required rate of return of 22.1 percent after taxes (2021: 24.01 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2021: 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 stabilise over the long term.
the 20-year financial plans of the cash-generating unit and the required rate of return of 10.9 percent after taxes (2021: 8.7 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.
the 24-year financial plans of the cash-generating unit and the average required rate of return of 10.9 percent after taxes (2021: 8.5 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.
4-year financial plans of the cash-generating unit, the required rate of return of 9 percent after taxes (2021: 8.4 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2021: 2 percent) were used in testing goodwill for impairment.
the 7-year financial plans of the cash-generating unit, the required rate of return of 6.59 percent after taxes (2021: 8 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2 percent (2021: 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:
| In 2021 | Key assumptions | Change in key assumptions | Effect of change in the discount rate on the recoverable amount | Effect of change in the long-term growth rate on the recoverable amount |
|---|---|---|---|---|
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 274
Javno
| Company | Discount Rate (WACC) | Long-Term Growth Rate (g) | Discount Rate (WACC) | Long-Term Growth Rate (g) |
|---|---|---|---|---|
| Adria-Plin d.o.o. | + 0.5 | - 0.5 | (5) | (4) |
| (8) | (212) | 8.41% | 2% | |
| - 0.5 | + 0.5 | 5 | 4 | |
| 11 | (193) | |||
| Atet d.o.o. | + 0.5 | - 0.5 | (803) | (660) |
| (1,350) | - | 7.40% | 2% | |
| - 0.5 | + 0.5 | 968 | 796 | |
| 1,963 | - | |||
| + 0.5 | - 0.5 | (13,045) | (10,421) | |
| (22,636) | - | Crodux derivati dva d.o.o. | ||
| 10.00% | ; | 12.00% | ||
| -0.90% | - 0.5 | + 0.5 |
| 14,097 | 11,269 | 26,415 | - | Euro - Petrol d.o.o. | + 0.5 | - 0.5 | (27,781) | 25,870 | (46,676) | - | 8.50% | 2% | - 0.5 | + 0.5 | 32,420 | (22,174) | 63,518 | - |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Instalacija d.o.o., Koper | + 0.5 | - 0.5 | (13,167) | (10,469) | (22,051) | - | 8.29% | 2% | - 0.5 | + 0.5 | 15,422 | 12,268 | 30,253 | - | ||||
| MBills d.o.o. | + 0.5 | - 0.5 | (166) | (125) | (278) | - | 24.01% | ; | 13.03% | 2% | - 0.5 | + 0.5 | 182 | 136 | 335 | - | ||
| Vjetroelektrane Glunča d.o.o. | + 0.5 | - | (544) | - | (544) | - | 8.70 | - | - 0.5 | - | 570 | - | 570 |
| + 0.5 | (1,413) | (1,413) | 8.70 | - 0.5 | 1,507 | 1,507 |
|---|---|---|---|---|---|---|
| Discount rate (WACC) | Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) | ||
|---|---|---|---|---|---|
| + 0.5 | - 0.5 | (15) | (16) | (29) |
9.00%
| 0.5 | + 0.5 | 17 | 18 | 38 | |
|---|---|---|---|---|---|
| - | + 0.5 | - 0.5 | (551) | (482) | (1,034) |
| - | 7.80% | 2% | - 0.5 | + 0.5 | |
| 651 | 582 | 1,233 | - | Petrol d.o.o. (Crodux derivati dva d.o.o.) | |
| + 0.5 | - 0.5 | (34,471) | (23,785) | (56,098) | |
| - | 12.50% | -1% | - 0.5 | + 0.5 | |
| 41,414 | 28,593 | 73,791 | - | Instalacija d.o.o., Koper | |
| + 0.5 | - 0.5 | (10,630) | (9,650) | (19,037) | |
| - | 9.03% | 2% | - 0.5 | + 0.5 | |
| 14,448 | 11,235 | 28,192 | - | MBills d.o.o. | |
| + 0.5 | - 0.5 | (225) | (133) | (346) | (169) |
| 22.10% | ; | 13.90% | 2% | - 0.5 | + 0.5 |
| 145 | 407 | - | Glunča d.o.o. | + 0.5 | - 0.5 | (1,181) | - | (1,181) | - | 10.90 | - | - 0.5 | + 0.5 | 1,245 | - | 1,245 | - |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Vjetroelektrana Ljubač | d.o.o. | + 0.5 | - | (1,569) | - | (1,569) | - | 10.90 | - | - 0.5 | - | 1,662 | - | 1,662 | - |
| Material and other rights | Right to use concession infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total | |
|---|---|---|---|---|---|---|
| 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 |
| As at 1 January 2021 | As at 31 December 2021 | |
|---|---|---|
| Assets | 41,934,032 | 112,044,827 |
| Liabilities | 85,266,022 | 1,879,712 |
| Equity | 276,793 | 241,401,386 |
| As at 1 January 2021 | As at 31 December 2021 | |
|---|---|---|
| Accumulated Amortisation | (21,844,444) | (27,058,108) |
| Amortisation | (5,470,352) | (9,676,444) |
| Disposals | 256,688 | 263,389 |
| Total | (76,463,513) | (85,876,568) |
| As at 1 January 2021 | As at 31 December 2021 | |
|---|---|---|
| Net Carrying Amount | 13,063,755 | 14,875,924 |
| Other Assets | 56,841,366 | 53,226,367 |
| Liabilities | 85,266,022 | 85,266,022 |
| Material and other rights | Right to use concession infrastructure | Goodwill | Ongoing investments | Long-term deferred costs | Total Cost | |
|---|---|---|---|---|---|---|
| (in EUR) | ||||||
| As at 1 January 2022 | 41,934,032 | 112,044,827 | 85,266,022 | 1,879,712 | 276,793 | 241,401,386 |
| New acquisitions | - | 1,406 | - | 5,286,334 | 1,011,058 | 6,298,798 |
| Disposals | (341,270) | (213,646) | - | (2,400) | (115,183) | (672,499) |
| Transfers between PPE and investment property | (12,656) | 543,746 | - | - | - | 531,090 |
| Transfer from ongoing investments | 2,699,324 | 766,933 | - | (3,466,257) | - | - |
| As at 31 December 2022 | 44,279,430 | 113,143,266 | 85,266,022 | 3,697,389 | 1,172,668 | 247,558,775 |
| As at 1 January 2022 | (27,058,108) | (58,818,460) | - | - | - | (85,876,568) |
|---|---|---|---|---|---|---|
| Amortisation | (5,547,972) | (4,201,187) | - | - | - | (9,749,159) |
|---|---|---|---|---|---|---|
| Disposals | 177,739 | 205,497 | - | - | - | 383,236 |
| Transfers between PPE and investment property | 8,669 | (352,482) | - | - | - | (343,813) |
| As at 31 December 2022 | (32,419,672) | (63,166,632) | - | - | - | (95,586,304) |
| Net carrying amount as at 1 January 2022 | 14,875,924 | 53,226,367 | 85,266,022 | 1,879,712 | 276,793 | 155,524,818 |
| Net carrying amount as at 31 December 2022 | 11,859,758 | 49,976,634 | 85,266,022 | 3,697,389 | 1,172,668 | 151,972,471 |
All the intangible assets presented herein are owned by the Company and are unpledged. 17.4 percent of all the intangible assets in use on 31 December 2022 were fully depreciated (compared to 13.5 percent as at 31 December 2021).
Intangible fixed assets as at 31 December 2022 were tested for impairment and it was determined that there is no need for the impairment of intangible fixed assets, the same as in 2021.
As at 31 December 2022, the Company disclosed goodwill arising from the upstream merger of Instalacija d.o.o. In 2013, the upstream merger of Instalacija d.o.o. resulted in goodwill in the amount of EUR 85,266,022. In 2022, 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 the goodwill disclosure relating to the Group.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 276
| Right to use | land | Right to use | buildings | Right to use | equipment | Total Cost |
|---|---|---|---|---|---|---|
| As at 1 January 2021 | 43,684,979 | 31,791,552 | 5,965,717 | 81,442,248 | ||
| New acquisitions as a result of control obtained | 36,259,696 | 30,607,283 | 305,752 | 67,172,731 | ||
| New acquisitions | 69,593 | 8,012,016 | 786,309 | 8,867,918 | ||
| Disposals | (2,444,480) | (5,708,241) | (480,935) | (8,633,656) | ||
| Foreign exchange differences | (68,253) | 5,203 | 924 | (62,126) | ||
| As at 31 December 2021 | 77,501,535 | 64,707,813 | 6,577,767 | 148,787,115 |
| Accumulated depreciation | As at 1 January 2021 | Depreciation | Disposals | Foreign exchange differences | As at 31 December 2021 |
|---|---|---|---|---|---|
| (6,197,450) | (3,437,050) | 169,421 | (7,424) | (9,472,503) | |
| (9,367,210) | (7,773,293) | 4,631,933 | (25,717) | (12,534,287) | |
| (3,475,982) | (1,592,426) | 380,573 | (901) | (4,688,736) | |
| (19,040,642) | (12,802,769) | 5,181,927 | (34,042) | (26,695,526) |
| Right to use land | Right to use buildings | Right to use equipment | Total | |
|---|---|---|---|---|
| Cost | ||||
| As at 1 January 2022 | 77,501,535 | 64,707,813 | 6,577,767 | 148,787,115 |
| New acquisitions | 23,256,763 | 53,430,756 | 19,888,157 | 96,575,676 |
| Disposals | (23,707,396) | (55,348,762) | (486,070) | (79,542,228) |
| Transfers between assets categories | 2,568,882 | (2,568,882) | - | - |
| Foreign exchange differences | (92,522) | (108,261) | (5,952) | (206,735) |
| As at 31 December 2022 | 79,527,262 | 60,112,664 | 25,973,902 | 165,613,828 |
| As at 1 January 2022 | (9,472,503) | (12,534,287) | (4,688,736) | (26,695,526) |
|---|---|---|---|---|
| Depreciation | (7,069,549) | (11,587,220) | (2,603,232) | (21,260,001) |
| Disposals | 6,525,251 | 7,153,465 |
*The Group finalised the allocation of the purchase price of Crodux derivati dva d.o.o. in 2022. The changes are explained in Point 2.f.
| 256,603 | 13,935,319 | |||
|---|---|---|---|---|
| (790,946) | 790,946 | |||
| - | - | |||
| Foreign exchange differences | 6,033 | 19,592 | 1,024 | 26,649 |
| (10,801,714) | (16,157,504) | (7,034,341) | (33,993,559) |
|---|---|---|---|
| 68,029,032 | 52,173,526 | 1,889,031 | 122,091,589 |
|---|---|---|---|
| 68,725,548 | 43,955,160 | 18,939,561 | 131,620,269 |
|---|---|---|---|
| Right to use | land | buildings | 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 |
| As at 1 January 2021 | (4,287,714) | (428,912) |
|---|---|---|
| (3,054,348) | (7,770,974) | (2,122,086) | (537,906) | (1,323,036) | (3,983,028) |
|---|---|---|---|---|---|
| Disposals/Impairments | - | - | 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 |
| Right to use | land | Right to use | buildings | Right to use | equipment | Total |
|---|---|---|---|---|---|---|
| Cost | As at 1 January 2022 | 32,218,878 | 1,878,132 | 5,397,463 | 39,494,473 | |
| New acquisitions | 1,259,241 | 1,329,656 | 3,148,387 | 5,737,284 | ||
| Disposals | - | (91,031) | (141,097) | (232,128) | ||
| As at 31 December 2022 | 33,478,119 | 3,116,757 | 8,404,753 | 44,999,629 |
| As at 1 January 2022 | (6,409,800) | (966,818) | (4,243,032) | (11,619,650) |
|---|---|---|---|---|
| Depreciation | (2,262,808) | (629,928) | (1,454,766) |
| Category | Cost |
|---|---|
| Land | 218,294,380 |
| Buildings | 746,545,163 |
| Machinery | 4,955,314 |
| Equipment | 347,831,422 |
| Ongoing investments | 51,259,979 |
| Total | 1,368,886,258 |
New acquisitions as a result of control obtained
| Category | Cost |
|---|---|
| Land | 108,318,946 |
| Buildings | 37,571,004 |
| Machinery | 2,293,618 |
| Equipment | 12,547,707 |
| Ongoing investments | 2,331,159 |
| Total | 163,062,434 |
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.
| Category | Amount |
|---|---|
| Disposals | 91,031 |
| 114,184 | |
| 205,215 |
As at 31 December 2022
| Category | Amount |
|---|---|
| (8,672,608) | |
| (1,505,715) | |
| (5,583,614) | |
| (15,761,937) |
Net carrying amount as at 1 January 2022
| Category | Amount |
|---|---|
| 25,809,078 | |
| 911,314 | |
| 1,154,431 | |
| 27,874,823 |
Net carrying amount as at 31 December 2022
| Category | Amount |
|---|---|
| 24,805,511 | |
| 1,611,042 | |
| 2,821,139 | |
| 29,237,692 |
| 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) | |
| Transfers between assets 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) | - | |
| Transfers between investment property | (3,463) | 2,100,779 | - | - | - | 2,097,316 | |
| Foreign exchange differences | (135,907) | 409,356 | 528 | 240,484 | 98,617 | 613,078 | |
| As at 31 December 2021 | 326,139,185 | 796,182,254 | 7,259,275 | 367,201,042 | 60,437,164 | 1,557,218,920 | |
| Accumulated depreciation | As at 1 January 2021 | - | (448,659,582) | (2,403,660) | (207,615,395) | - | (658,678,637) |
| 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 | Transfers between assets categories | ||
| 1,984 | (2,408) | 424 | |
| Transfers between investment property | |||
| (2,268,673) | |||
| (2,268,673) | Foreign exchange differences | ||
| (248,059) | (1,199) | (169,264) | |
| (418,522) | As at 31 December 2021 | ||
| (474,840,389) | (2,975,105) | (221,989,378) | |
| (699,804,872) | Net carrying amount as at 1 January 2021 | ||
| 218,294,380 | 297,885,581 | 2,551,654 | |
| 140,216,027 | 51,259,979 | 710,207,621 | |
| Net carrying amount as at 31 December 2021 | 326,139,185 | 321,341,865 | |
| 4,284,170 | 145,211,664 | 60,437,164 | |
| 857,414,048 |
The Group finalised the allocation of the purchase price of Crodux derivati dva d.o.o. in 2022. The changes are explained in Point 2.f.
In the prior year, value adjustments for new acquisitions due to control of the Company totalling EUR 108,443,099 were recognised, but are now included in the reduction of the cost of new acquisitions due to control of the Company.
(in EUR)
| Land | Buildings | Machinery | Equipment | Ongoing investments | Total | ||
| Cost | As at 1 January 2022 | 326,139,185 | 796,182,254 | 7,259,275 | 367,201,042 | 60,437,164 | 1,557,218,920 |
| New acquisitions | - | 218,339 | 70,076 | 5,694,408 | 58,462,957 | 64,445,780 | |
| Disposals | (417,828) | (1,888,551) | (10,539) | (10,588,891) | (34,401) | (12,940,210) | |
| Transfers between intangible assets | 106,699 | 10,227,604 | (2,617,822) | (2,159,341) | 146,109 | 5,703,249 | |
| Transfer to contract assets | - | - | - | (7,493,238) | - | (7,493,238) | |
| Transfer from ongoing investments | 746,662 | 21,390,024 | 66,729 | 50,278,031 | (72,481,446) | - | |
| Transfers between investment property | - | - | - | - | (29,461) | (29,461) |
| (341,186) | (293,352) | (1,035) | (179,477) | (61,460) | (876,510) |
|---|---|---|---|---|---|
| 326,233,532 | 825,836,318 | 4,766,684 | 402,752,534 | 46,439,462 | 1,606,028,530 |
|---|---|---|---|---|---|
| - | (474,840,389) | (2,975,105) | (221,989,378) | - | (699,804,872) |
|---|---|---|---|---|---|
| - | (28,820,561) | (303,483) | (31,240,996) | - | (60,365,040) |
|---|---|---|---|---|---|
| - | 1,607,439 | 10,539 | 7,296,612 | - | 8,914,590 |
|---|---|---|---|---|---|
| - | (5,188,946) | 420,951 | 3,488,442 | - | (1,279,553) |
|---|---|---|---|---|---|
| - | - | - | 824,274 | - | 824,274 |
|---|---|---|---|---|---|
| - | 129,594 | 742 | 104,256 | - | 234,592 |
|---|---|---|---|---|---|
| - | (507,112,863) | (2,846,356) | (241,516,790) | - | (751,476,009) |
|---|---|---|---|---|---|
| 326,139,185 | 321,341,865 | 4,284,170 | 145,211,664 | 60,437,164 | 857,414,048 |
|---|---|---|---|---|---|
Net carrying amount as at 31 December 2022
| 326,233,532 | 318,723,455 | 1,920,328 | 161,235,744 | 46,439,462 | 854,552,521 |
|---|---|---|---|---|---|
33.2 percent of all items of property, plant and equipment in use on 31 December 2022 were fully depreciated.
Items of property, plant and equipment pledged as security
All items of property, plant and equipment of the Group are unpledged.
The Group’s impairment review process has determined that no indicators of impairment exist for property, plant and equipment as at 31 December 2022. And it was determined that there is no need for the impairment of property, plant and equipment.
In 2021, 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., 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. Therefore, the Group impaired the assets of the cash-generating units by EUR 6,726,152.
| Items | Cost |
|---|---|
| Land | 102,847,584 |
| Buildings | 567,311,922 |
| Equipment | 265,240,639 |
| Ongoing investments | 17,229,342 |
| Total | 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) |
|---|---|---|---|---|
| 943 | 926,878 | (16,253) | 911,568 | ||
|---|---|---|---|---|---|
| Transfer from ongoing investments | 1,324,989 | 12,089,495 | 10,707,788 | (24,122,272) | |
| Transfers between 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 |
| 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 assets categories | (424) | 424 | |||
| Transfers between investment property | (222,003) | (222,003) | |||
| As at 31 December 2021 |
| (415,142,838) | (179,706,981) | |||||
|---|---|---|---|---|---|---|
| (594,849,819) | 102,847,584 | 166,712,575 | 92,635,603 | 17,229,342 | 379,425,104 |
| (415,142,838) | (179,706,981) | |||||
|---|---|---|---|---|---|---|
| (594,849,819) | 102,794,116 | 162,232,589 | 86,919,569 | 14,315,883 | 366,262,157 |
| Public (in EUR) | Land | Buildings | Equipment | Ongoing investments | Total |
|---|---|---|---|---|---|
| 102,794,116 | 577,375,427 | 266,626,550 | 14,315,883 | 961,111,976 | |
| New acquisitions | - | - | - | 32,614,695 | 32,614,695 |
| Disposals | (401,114) | (1,504,318) | (5,076,701) | (34,401) | (7,016,534) |
| Transfers between intangible assets | 193,874 | (237,878) | 583,674 | - | 539,670 |
| Transfer from ongoing investments | 126 | 8,983,729 | 14,474,671 | (23,458,526) | - |
| Transfers between investment property |
| Accumulated depreciation | ||||
|---|---|---|---|---|
| As at 1 January 2022 | (415,142,838) | (179,706,981) | ||
| Depreciation | (15,658,372) | (16,084,332) | ||
| Disposals | 1,323,457 | 4,911,183 | ||
| Transfers between intangible assets | (33,334) | (518,479) | ||
| As at 31 December 2022 | (429,511,087) | (191,398,609) | ||
| Net carrying amount as at 1 January 2022 | 102,794,116 | 162,232,589 | 86,919,569 | 14,315,883 |
| Net carrying amount as at 31 December 2022 | 102,587,002 | 155,105,873 | 85,209,585 | 23,408,190 |
43.8 percent of all items of property, plant and equipment in use on 31 December 2022 were fully depreciated.
All items of property, plant and equipment of the Company are unpledged.
Investment property comprises buildings (storage facilities, car washes, bars) being leased out by the Group/Company.
| Investment property | Petrol Group | Petrol d.d. | (in EUR) |
|---|---|---|---|
| Cost | 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) | |
| Transfers between intangible assets | 16,297 | 16,297 | |
| Transfers between property, plant and equipment | (2,097,316) | (353,455) | |
| Foreign exchange differences | 19,587 | - | |
| As at 31 December 2021 | 36,577,379 | 27,824,898 |
| Accumulated depreciation | Petrol Group | Petrol d.d. |
|---|---|---|
| As at 1 January 2021 | (23,612,650) | (15,126,190) |
| Depreciation | (1,369,169) | (754,429) |
| Impairments | 2,288,415 | 169,712 |
| Transfers between property, plant and equipment | 2,268,673 | 222,003 |
| Foreign exchange differences | (12,905) | - |
| As at 31 December 2021 | (20,437,636) | (15,488,904) |
| Net carrying amount | Petrol Group | Petrol d.d. |
|---|---|---|
| As at 1 January 2021 | 17,522,012 | 13,551,882 |
| As at 31 December 2021 | 16,139,743 |
| Investment property | Investment property | |
|---|---|---|
| Cost | ||
| As at 1 January 2022 | 36,577,379 | 27,824,898 |
| New acquisitions | 124,378 | - |
| Disposals | (265,870) | (21,725) |
| Transfers between intangible assets | (101,127) | (101,127) |
| Transfers between property, plant and equipment | 29,461 | 29,461 |
| Foreign exchange differences | (14,721) | - |
| As at 31 December 2022 | 36,349,500 | 27,731,507 |
| Accumulated depreciation | ||
|---|---|---|
| As at 1 January 2022 | (20,437,636) | (15,488,904) |
| Depreciation | (1,069,764) | (677,760) |
| Transfers between intangible assets | (74,007) | (74,007) |
| Foreign exchange differences | 9,015 | - |
| As at 31 December 2022 | (21,572,392) | (16,240,671) |
| Net carrying amount as at 1 January 2022 | 16,139,743 | 12,335,994 |
|---|---|---|
| Net carrying amount as at 31 December 2022 | 14,777,108 | 11,490,836 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 282
After assessing the intended use of the property and the long-term goals pursued as at 31 December 2022, the Group determined that certain property held by the Group meets the criteria to be classified as investment property. The Group transferred property of EUR 29,461 (2021: EUR 435,177) from plant, property and equipment to investment property.
31 December 2022 amounts to EUR 27,936,214 (EUR 28,624,904 as at 31 December 2021). 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 8.5 to 11.95 percent after taxes (2021: from 8.95 to 11.95 percent) and the long-term growth rate of lease payments from 0.05 to 1 percent (2021: from 0.05 to 1 percent) were used.
In 2022, the Group’s impairment review process has determined that no indicators of impairment exist for investment property as at 31 December 2022. It was determined that there is no need for the impairment of investment property. In 2021, 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.
In 2022, the revenue generated by the Company from investment property totalled EUR 2,576,791 (2021: EUR 3,060,974). The Company estimates that the fair value of investment property as at 31 December 2022 amounts to EUR 22,241,655 (31 December 2021: EUR 23,184,416). 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 (2021: 0.05 percent) and a required rate of return of 8.5 percent (2021: 8.95 percent) are assumed.
In 2022, the Company’s impairment review process has determined that no indicators of impairment exist for investment property as at 31 December 2022. It was determined that there is no need for the impairment of investment property. In 2021, 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.
In the preparation of the Group’s financial statements, investments in subsidiaries are eliminated on consolidation. A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report.
| Name of subsidiary | Address of subsidiary | Ownership interest | Equity as at 31 December 2022 (in EUR) | Net profit or loss for 2022 (in EUR) |
|---|---|---|---|---|
| IGES d.o.o. | Dunajska cesta 50, Ljubljana, Slovenia | 100% | 15,845,841 | 16,282 |
| Petrol Skladiščenje d.o.o. | Zaloška 259, Ljubljana Polje, Slovenia | 100% | 815,803 | (154) |
| Petrol GEO d.o.o. | Mlinska ulica 5d, Lendava, Slovenia | 100% | 4,001,327 |
| Company Name | Address | Country | Ownership | Revenue | Expenses |
|---|---|---|---|---|---|
| Ekoen d.o.o. | Luče 117a, Luče, Slovenia | Slovenia | 100% | 1,813,899 | (10,370) |
| Ekoen S d.o.o. | Ljubljanska cesta 35, Domžale, Slovenia | Slovenia | 100% | 728,431 | (4,890) |
| MBills d.o.o. | Tržaška cesta 118, Ljubljana, Slovenia | Slovenia | 100% | 3,423,040 | (1,094,420) |
| Geoplin d.o.o. Ljubljana | Cesta Ljubljanske brigade 11, Ljubljana, Slovenia | Slovenia | 74.34% | 112,325,789 | (28,619,727) |
| Atet d.o.o. | Devova ulica 6a, Ljubljana, Slovenia | Slovenia | 72.96% | 2,579,764 | 410,029 |
| E 3, d.o.o. | Prvomajska ulica 21, Nova Gorica, Slovenia | Slovenia | 100% | 12,240,655 | (2,345,898) |
| Petrol d.o.o. | Savska Opatovina 36, Zagreb, Croatia | Croatia | 100% | 242,932,611 | (2,846,379) |
| Vjetroelektrane Glunča d.o.o. | Savska Opatovina 36, Zagreb, Croatia | Croatia | 100% | 12,722,925 | 913,813 |
| Vjetroelektrana Ljubač d.o.o. | Krapanjska cesta 8, Šibenik, Croatia | Croatia | 100% | 8,179,063 | 805,584 |
| Zagorski metalac d.o.o. | Ulica Josipa Broza Tita 2F, Zabok, Croatia | Croatia | 75% | 8,778,575 | (263,970) |
| Petrol d.o.o. Beograd | Omladinskih brigada 88-90, Novi Beograd, Serbia | Serbia | 100% | 35,377,619 |
| Company | Address | Country | Revenue | Profit | |
|---|---|---|---|---|---|
| Beogas d.o.o. | Omladinskih brigada 88-90, Novi Beograd, Serbia | Serbia | 3,179,777 | 100% | |
| Petrol LPG d.o.o. | Ulica Patrijarha Dimitrija 12v, Beograd, Serbia | Serbia | 22,574,022 | 1,126,337 | |
| STH Energy d.o.o. | Miloša Velikog 52-2/14, Kraljevo, Serbia | Serbia | 12,388,930 | 1,381,292 | |
| Montenegro Petrol Crna Gora MNE d.o.o. | Ulica Slobode br. 2, Podgorica, Montenegro | Montenegro | 100% | 23,206,150 | 1,666,046 |
| Petrol BH Oil Company d.o.o. | Tešanjska 24a, Sarajevo, Bosnia and Herzegovina | Bosnia and Herzegovina | 100% | 72,931,492 | 3,831,613 |
| Petrol Hidroenergija d.o.o. | Branka Radičevića 1, Teslić, Bosnia and Herzegovina | Bosnia and Herzegovina | 80% | 7,172,943 | 370,823 |
| Petrol Power d.o.o. | Tešanjska 24a, Sarajevo, Bosnia and Herzegovina | Bosnia and Herzegovina | 99.75% | (1,982,136) | (36,731) |
| Petrol Trade Handelsgesellschaft m.b.H. | Elisabethstrasse 10/4, Dunaj, Austria | Austria | 100% | 2,456,304 | 895,221 |
| Petrol-Energetika DOOEL | Ul. Sv. Kiril i Metodij 20, Skopje, Macedonia | Macedonia | 100% | 118,136 | 7,146 |
| Petrol Bucharest ROM S.R.L. | B-dul Tudor Vladimirescu 22, Sector 5, |
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 2022 (in EUR) | Net profit or loss for 2022 (in EUR) |
|---|---|---|---|---|
| The Petrol LPG Group | Tigar Petrol d.o.o. Beograd Omladinskih brigada 88-90, Novi Beograd, Serbia | 100% | (353,623) | (28,445) |
| Petrol LPG HIB d.o.o. Preduzetnička zona bb, Šamac, Bosnia and Herzegovina | 100% | (281,680) | (203,821) | |
| The Petrol Beograd Group | Petrol Lumennis PB JO d.o.o. Ulica Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 2,144 | 988 |
| Petrol Lumennis VS d.o.o. Beograd Ulica Patrijarha Dimitrija 12v, Beograd, Serbia | 100% | 2,100 | 983 | |
| Petrol Lumennis ZA JO d.o.o. Beograd Omladinskih brigada 88‒90, Novi Beograd, Serbia | 100% |
| Petrol Lumennis ŠI JO d.o.o. | Beograd | Omladinskih brigada 88‒90, Novi Beograd, Serbia | 100% | 2,697 | 2,008 | |
|---|---|---|---|---|---|---|
| Petrol KU 2021 d.o.o. Beograd | Omladinskih brigada 88‒90, Novi Beograd, Serbia | 100% | 1,121 | 1,054 | ||
| Petrol Lumennis KI JO d.o.o. | Beograd | Omladinskih brigada 88‒90, Novi Beograd, Serbia | 100% | 39,545 | 39,517 | |
| The IGES Group | Vitales d.o.o. Bihać ‒ u stečaju | 1 | Naselje Ripač b.b., Bihać, Bosnia and Herzegovina | 100% | - | - |
| The Petrol Zagreb Group | Petrol javna rasvjeta d.o.o. | Savska Opatovina 36, Zagreb, Croatia | 100% | 95,096 | 23,859 | |
| Adria-Plin d.o.o. | Ulica Stinice 15, Kastel Gomilica, Croatia | 75% | 32,501 | (36,115) | ||
| The Geoplin Group | Geocom d.o.o. | Cesta Ljubljanske brigade 11, Ljubljana, Slovenia | 100% | 437,090 | - | |
| Geoplin d.o.o. | Radnička cesta 177, Zagreb, Croatia | 100% | 1,702,940 | 268,530 | ||
| Geoplin d.o.o. Beograd | Zelenogorska ulica broj 1g, 11070 Novi Beograd, Serbia | 100% | 36,611 | - |
| Company | 31 December 2022 (in EUR) | 31 December 2021 (in EUR) |
|---|---|---|
| Petrol d.o.o. | 327,833,986 | 136,133,985 |
| Geoplin d.o.o. Ljubljana | 56,964,237 | 56,901,637 |
| Petrol BH Oil Company d.o.o. Sarajevo | 34,537,990 | 34,537,990 |
| Petrol d.o.o. Beograd | 23,602,819 | 23,602,819 |
| Petrol Crna Gora MNE d.o.o. | 19,396,000 | 19,396,000 |
| IGES d.o.o. | 15,774,400 | 15,774,400 |
| E 3, d.o.o. | 14,950,000 | 14,950,000 |
| Beogas d.o.o. Beograd | 12,774,000 | 12,774,000 |
| Vjetroelektrarna Ljubač d.o.o. | 9,056,761 | 9,056,761 |
| Zagorski metalac d.o.o. | 7,600,316 | 7,600,316 |
| Vjetroelektrane Glunča d.o.o. | 6,523,622 | 6,523,622 |
| MBills d.o.o. | 5,955,122 | 5,955,122 |
| Petrol Hidroenergija d.o.o. Teslić | 5,000,409 | 5,000,409 |
| Petrol LPG d.o.o. | 4,770,601 | 4,770,601 |
| Atet d.o.o. | 4,044,396 | 4,044,396 |
| Petrol - OTI - Terminal L.L.C. | 1,805,000 | 1,805,000 |
| Ekoen d.o.o. | 1,249,867 | 1,249,867 |
| Petrol Skladiščenje d.o.o. | 794,951 | 794,951 |
| 697,020 | 697,020 |
|---|---|
| 467,868 | 467,868 |
|---|---|
| 147,830 | 147,830 |
|---|---|
| 50,737 | 50,737 |
|---|---|
| 25,000 | 25,000 |
|---|---|
| 10,000 | 10,000 |
|---|---|
| - | 191,700,000 |
|---|---|
| - | - |
|---|---|
| 554,032,932 | 553,970,331 |
|---|---|
| 2022 | 2021 | |
|---|---|---|
| As at 1 January | 553,970,331 | 351,013,627 |
| New acquisitions | 62,600 | 214,150,000 |
| Impairment | - | (11,193,296) |
| As at 31 December | 554,032,932 | 553,970,331 |
The Group acquired an additional 0.04 percent interest in Geoplin d.o.o., becoming a 74.34 percent owner of the company.
Major new acquisitions of investments in subsidiaries were as follows in 2021:
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 286
The Group/Company received a refund of the purchase consideration of EUR 3,244,000 in 2022 as a result of the final settlement of the purchase consideration, in accordance with the purchase agreement, and recognised the amount in finance income.
9,891,052 and E 3, d.o.o. of EUR 792,219.
In 2021, the Company's expenses on investments in subsidiaries of EUR 204,150,000 consisted of payments to Crodux derivati dva d.o.o. of EUR 181,700,000 and to E 3, d.o.o. of EUR 14,950,000 as well as the recapitalisation of Vjetroelektrana Ljubač d.o.o. of EUR 7,500,000.
In accordance with the IAS 36, the Company tested investment impairment indicators and determined that they do not exist for investments in subsidiaries as at 31 December 2022. It was determined that there is no need for the impairment of investments in subsidiaries.
In 2021, when testing impairment indicators of investments in subsidiaries, the Company impaired them by EUR 11,193,296.
An impairment of an investment in a subsidiary is recognised when its carrying amount exceeds its recoverable amount. The recoverable amount of an investment in a subsidiary is the higher of its value in use and its fair value less costs to sell. The impairment test used the value in use, where expected future cash flows are discounted to their present value using a discount rate.
| In 2021 | Key assumptions | Change in key assumptions | 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 (in EUR thousand) |
|---|---|---|---|---|---|---|
| Discount rate (WACC) | Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) | Petrol d.o.o. | + 0.5 | - 0.5 |
| (27,282) | (21,776) | (45,837) | - |
| Company | Percentage | Change | Values | Change Values | |||||
|---|---|---|---|---|---|---|---|---|---|
| Current | Previous | -0.5 | +0.5 | Value 1 | Value 2 | Value 3 | +0.5 | -0.5 | |
| Crodux derivati dva d.o.o. | 8.50% | 2% | - 0.5 | + 0.5 | 31,836 | 25,404 | 62,374 | - | - |
| Petrol d.o.o. Beograd | 10.00% | 12.00% | -0.90% | - 0.5 | 11,269 | 14,097 | 26,415 | + 0.5 | - 0.5 |
| Petrol Crna Gora MNE d.o.o. | 9.30% | 2.20% | - 0.5 | + 0.5 | 7,131 | 4,286 | 12,315 | + 0.5 | - 0.5 |
| E 3, d.o.o. | 8.50% | 1.90% | - 0.5 | + 0.5 |
| 1,422 | (4,599) | 2,976 | 395 | - | + 0.5 | - | (1,413) | - | (1,413) | - |
|---|---|---|---|---|---|---|---|---|---|---|
| Vjetroelektrane Ljubač d.o.o. | 8.70% | - 0.5 | - | 1,507 | - | 1,507 | - | + 0.5 | - 0.5 | |
| (292) | (335) | (582) | (898) | Zagorski metalac d.o.o. | 6.80% | ; | 8.00% | 2% | - 0.5 | |
| + 0.5 | 345 | 397 | 817 | - | Vjetroelektrana Glunča d.o.o. | - | + 0.5 | - | (544) | |
| - | (544) | - | 8.70% | - 0.5 | - | 570 | - | 570 | - | |
| MBills d.o.o. | + 0.5 | - 0.5 | (165) | (124) | (278) | (278) | 24.04% | ; | 14.03% | |
| 2% | - 0.5 | + 0.5 | 183 |
| Company | Change in key assumptions | Effect of change in the discount rate on the recoverable amount |
|---|---|---|
| Petrol Hidroenergija d.o.o. | + 0.5 | (182) |
| (182) | 9.10% | |
| Petrol LPG d.o.o. | + 0.5 | (534) |
| (397) | (888) | |
| (791) | 11.20% | |
| 11.70% | 2% | |
| - 0.5 | +0.5 | |
| 593 | 440 | |
| 1,091 | ||
| Atet d.o.o. | + 0.5 | (588) |
| (483) | (988) | |
| (185) | 7.40% | |
| 2% | - 0.5 | |
| +0.5 | 708 | |
| 582 | 1,437 |
| (in EUR thousand) | Discount rate (WACC) | Long-term growth rate (g) | Discount rate (WACC) | Long-term growth rate (g) |
|---|---|---|---|---|
| Petrol d.o.o. | + 0.5 | - 0.5 | (34,471) | (23,785) |
| (56,098) | - | |||
| 12.50% | -1% | - 0.5 | + 0.5 | |
| 41,414 | 28,593 | 73,791 | - | |
| + 0.5 | - 0.5 | (4,957) | (1,962) | |
| (6,677) | (5,855) | Petrol d.o.o. Beograd | ||
| 11.60% | 1% | - 0.5 | + 0.5 | |
| 5,498 | 2,147 | 7,984 | - | |
| + 0.5 | - 0.5 | (1,416) | (1,036) |
| Company | Percentage | Change | Value 1 | Value 2 | Value 3 | Change 1 | Change 2 | Value 4 | Value 5 | Value 6 |
|---|---|---|---|---|---|---|---|---|---|---|
| Petrol Crna Gora MNE d.o.o. | 11.80% | 2% | - 0.5 | + 0.5 | 1,761 | 1,115 | 3,097 | - | + 0.5 | - 0.5 |
| (693) | (171) | (844) | - | |||||||
| E 3, d.o.o. | 9.80% | 0% | - 0.5 | + 0.5 | 739 | 192 | 959 | - | + 0.5 | - |
| (1,569) | (1,569) | - | ||||||||
| Vjetroelektrane Ljubač d.o.o. | 10.90% | - | - 0.5 | - | 1,662 | - | 1,662 | - | + 0.5 | - 0.5 |
| (530) | (431) | (876) | - | |||||||
| Zagorski metalac d.o.o. | 6.59% | 2% | - 0.5 | + 0.5 | 661 | 535 | 1,360 | - | ||
| Vjetroelektrana Glunča d.o.o. | 10.90% | - | + 0.5 | - | (1,181) | - | (1,181) | - |
The financial data for each subsidiary with a non-controlling interest are summarised below. Data for Petrol Power d.o.o., Adria-Plin d.o.o., STH Energy d.o.o. Kraljevo are shown among others. Disclosures are made before the elimination of intercompany relationships.
| MBills d.o.o. | + 0.5 | - 0.5 | (225) | (133) | (346) | (169) | 22.10% | 13.90% | 2% | - 0.5 | +0.5 | 246 | 145 | 407 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Atet d.o.o. | + 0.5 | - 0.5 | (551) | (483) | (1,034) | (530) | 7.80% | 2% | - 0.5 | +0.5 | 651 | 582 | 1,233 |
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.
The second step of the exchange is subject to suspensive conditions that cannot be met by either party to the contract, and therefore we do not consider that the conditions for recognising the option in the Group's/Company's financial statements have been met.
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 29,367,274.
The Geoplin Group
| Category | Amount (in EUR) |
|---|---|
| Petrol | 761,070,984 |
| Hidroenergija d.o.o. Teslić | 8,348,470 |
| Others | 1,042,013 |
| Total | 773,052,073 |
| Category | Amount (in EUR) |
|---|---|
| Petrol | 21,369,435 |
| Hidroenergija d.o.o. Teslić | (2,844,025) |
| Others | 574,770 |
| Total | 18,932,010 |
| Category | Amount (in EUR) |
|---|---|
| Non-controlling interest | 5,496,219 |
| Hidroenergija d.o.o. Teslić | (182,871) |
| Others | 114,954 |
| Total | 5,401,786 |
| Category | Amount (in EUR) |
|---|---|
| Total | (29,386) |
| Category | Amount (in EUR) |
|---|---|
| Petrol | 21,297,393 |
| Hidroenergija d.o.o. Teslić | (2,802,202) |
| Others | 574,770 |
| Total | 18,902,624 |
| Category | Amount (in EUR) |
|---|---|
| Non-controlling interest | 5,477,689 |
| Hidroenergija d.o.o. Teslić | (180,182) |
| Others | 114,954 |
| Total | 5,386,133 |
| Category | Amount (in EUR) |
|---|---|
| Non-current (long-term) assets | 55,922,599 |
| Current assets | 274,863,201 |
| Category | Amount (in EUR) |
|---|---|
| Non-current liabilities |
| (10,971,781) | (3,738,340) | - | (1,755,239) | (16,465,360) | |||
|---|---|---|---|---|---|---|---|
| Current liabilities | (130,863,290) | (2,237,755) | (72,715) | (8,481,329) | (141,655,089) | ||
| Net assets | 158,691,076 | 10,697,377 | 7,195,384 | (3,918,486) | 172,665,351 | ||
| Net assets attributable to: | Non-controlling interest | 40,815,343 | 687,838 | 1,439,080 | 110,106 | 43,052,367 |
| (in EUR) | The Geoplin Group | Zagorski metalac d.o.o. | Petrol | Hidroenergija d.o.o. Teslić | Others | Total |
|---|---|---|---|---|---|---|
| Net cash from (used in) operating activities | 83,136,255 | 1,161,948 | 473,604 | 295,156 | 85,066,963 | |
| Net cash from (used in) investing activities | (66,429,283) | (2,214,424) | 49,112 | (243,437) | (68,838,032) | |
| Net cash from (used in) financing activities | (16,130,870) | (110,066) | (713,158) | (127,387) | (17,081,481) | |
| Increase/(decrease) in cash and cash equivalents | 576,102 | (1,162,542) | (190,442) | (75,668) | (852,550) | |
| Dividend payments to non-controlling interest | 331,803 | - | 178,290 | - | 510,093 |
| The Geoplin Group | Zagorski metalac d.o.o. | Petrol Hidroenergija d.o.o. Teslić | Others | Total | |
|---|---|---|---|---|---|
| Revenue | 1,450,642,390 | 11,606,837 | 783,914 | 2,851,477 | 1,465,884,618 |
| Net profit for the year | (28,260,761) | ||||
| Net profit for the year attributable to: | Non-controlling interest | Total other comprehensive income after tax | |||
| (7,250,924) | (32,578) | 74,310 | 3,261 | (7,205,931) | |
| Total other comprehensive income after tax | (16,623,899) | (21,686) | - | 534 | (16,645,051) |
| Total comprehensive income for the year | |||||
| Total comprehensive income attributable to: | Non-controlling interest | ||||
| (44,884,660) | (528,271) | 371,537 | 131,512 | (44,909,882) | |
| Total comprehensive income attributable to: | Non-controlling interest | ||||
| (11,516,147) | (33,968) | 74,307 | 3,364 | (11,472,444) |
| Others | Total | |||||
|---|---|---|---|---|---|---|
| Non-current (long-term) assets | 46,223,996 | 7,848,272 | 5,406,963 | 5,253,854 | 64,733,085 | |
| Current assets | 296,065,447 | 9,273,796 | 1,871,673 | 1,415,723 | 308,626,639 | |
| Non-current liabilities | (304,109) | (3,578,989) | - | (1,753,625) | (5,636,723) | |
| Current liabilities | (228,178,923) | (3,373,973) | (105,693) | (8,702,885) | (240,361,474) | |
| Net assets | 113,806,411 | 10,169,106 | 7,172,943 | (3,786,933) | 127,361,527 | |
| Net assets attributable to: | Non-controlling interest | 29,199,537 | 653,870 | 1,434,592 | 113,475 | 31,401,474 |
| Net cash from (used in) operating activities | (42,826,070) | (0) | 180,977 | 479,513 | 552,678 | (41,612,902) | |
|---|---|---|---|---|---|---|---|
| Net cash from (used in) investing activities | 41,804,495 | (946,833) | 41,911 | (53,154) | 40,846,419 | ||
| Net cash from (used in) financing activities |
A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report.
| Name of jointly controlled entity | Address of jointly controlled entity | Business activities | Ownership and voting rights | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|---|
| Geoenergo d.o.o. | Mlinska ulica 5, Lendava, Slovenia | Extraction of natural gas, oil and gas condensate | 50% | 50% | |
| Soenergetika d.o.o. | Stara cesta 3, Kranj, Slovenia | Electricity, gas and steam supply | 25% | 25% | |
| Vjetroelektrana Dazlina d.o.o. | Krapanjska cesta 8, Šibenik, Croatia | Electricity production | 50% |
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.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Soenergetika d.o.o. | 1,214,374 | 417,259 | 210,000 | 210,000 |
| Geoenergo d.o.o. | 40,558 | 287,242 | - | - |
| Vjetroelektrana Dazlina d.o.o. | 22,816 | - | 23,000 | - |
| Total investments in jointly controlled entities | 1,277,748 | 704,501 | 233,000 | 210,000 |
In conformity with the equity method, the Group recorded attributable profit of EUR 665,483 in 2022 (2021: EUR 300,040). From this amount, dividends on retained earnings, which stood at EUR 115,217 (2021: EUR 135,495).
In 2022, the Group reacquired a 50 percent interest in the jointly controlled entity Vjetroelektrana Dazlina d.o.o., which it sold in 2021.
The testing of investment impairment indicators applicable to investments in jointly controlled entities identified no need for impairment in 2022 and 2021.
| 2021 | (in EUR) | ||||
|---|---|---|---|---|---|
| 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 |
| As at 1 January | 2022 | 2021 |
|---|---|---|
| Attributed profit/loss | 665,483 | 300,040 |
| Dividends received | (115,217) | (135,495) |
| New acquisitions | 23,000 | - |
| Disposals | - | (22,060) |
| Foreign exchange differences | (19) | - |
| As at 31 December | 1,277,748 | 704,501 |
| Company | Assets | Liabilities (debt) | Revenue | Net profit or loss | Net profit or loss attributable to the Petrol Group |
|---|---|---|---|---|---|
| Soenergetika d.o.o. | 5,564,582 | 707,087 | 7,421,629 | 3,727,173 | 931,793 |
| Geoenergo d.o.o. | 3,107,184 | 2,928,991 | 5,863,181 | (299,384) | (149,692) |
| Vjetroelektrana Dazlina d.o.o. | 317,212 | 319,028 | 517 | (332) | (166) |
| Petrol d.d., Ljubljana | Changes in investments in jointly controlled entities |
A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report.
| Name of associate | Address of associate | Business activities | Ownership and voting rights | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|---|
| Plinhold d.o.o. | Mala ulica 5, Ljubljana, Slovenia | Management of gas infrastructure | 30% | 30% | |
| Aquasystems d.o.o. | Dupleška cesta 330, Maribor, Slovenia | Construction and operation of industrial and municipal water treatment plants | 26% | 26% | |
| Knešca d.o.o. | Kneža 78, Most na Soči, Slovenia | Electricity production | 47.27% |
The Petrol Group
Petrol d.d. (in EUR)
As at 1 January
210,000
233,000
New acquisitions
23,000
-
Disposals
-
(23,000)
As at 31 December
233,000
210,000
The increase in investment in 2022 and the decrease in 2021 relate to Vjetroelektrana Dazlina d.o.o.
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.
| Company | 31 December 2021 | 31 December 2022 | 31 December 2021 | 31 December 2022 |
|---|---|---|---|---|
| Plinhold d.o.o. | 54,737,222 | 53,090,764 | 26,273,425 | 26,273,425 |
| Aquasystems d.o.o. | 1,309,691 | 1,211,955 | 337,052 | 337,052 |
| Knešca d.o.o. | 921,364 | 866,907 | - | - |
| Total investments in associates | 56,968,277 | 55,169,626 | 26,610,477 | 26,610,477 |
| 2022 | 2021 | |
|---|---|---|
| As at 1 January | 55,169,626 | 55,953,391 |
| Attributed profit/loss | 2,662,912 | 2,283,731 |
| Dividends received | (864,261) | (1,403,355) |
| New acquisitions | - | 894,000 |
| Decrease | - | (2,558,141) |
| As at 31 December | 56,968,277 | 55,169,626 |
In 2022, in conformity with the equity method, the Group attributed the corresponding share of 2022 profits or losses to its investments, in total EUR 2,662,912 (2021: EUR 2,283,731 EUR), deducting from the investments the dividends received of EUR 864,261 (2021: EUR 1,403,355).
| 2021 | (in EUR) | Assets | Liabilities (debt) |
|---|---|---|---|
| Company | 2022 (in EUR) | 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 |
| Aquasystems d.o.o. | 7,967,703 | 3,397,011 | 7,932,017 |
| Knešca d.o.o. | 1,438,741 | 109,072 | 297,124 |
| Assets | Liabilities (debt) | Revenue | Net profit or loss | Net profit or loss attributable to the Petrol Group |
|---|---|---|---|---|
| Plinhold d.o.o. | 346,700,000 | 125,100,000 | 100,000,000 | 5,400,000 |
| Aquasystems d.o.o. | 7,428,079 | 2,419,467 | 8,329,270 | 3,456,249 |
| Knešca d.o.o. | 1,546,971 | 104,412 | 421,841 | 216,809 |
| Company | 2022 (in EUR) | 2021 (in EUR) |
|---|---|---|
| Petrol d.d. | 26,610,477 | 29,185,477 |
| Decrease |
(2,575,000) As at 31 December
26,610,477
26,610,477
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 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.
The second step of the exchange is subject to suspensive conditions which are not under control of any of the parties, and therefore we do not consider that the conditions for recognising the option in the Group's/Company's financial statements have been met.
Javno Public
Financial assets at fair value through other comprehensive income are investments in the shares and interests of companies and banks, as well as investments in mutual funds and bonds.
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
| Current balance of financial assets at fair value through other comprehensive income | 34,616,805 | 1,420,486 | 30,293,507 | 1,078,208 |
| Assets arising from interest rate swaps | 3,083,184 | 22,238 | 3,083,184 | 22,238 |
| Bonds | 334,077 | 334,077 | - | - |
| 38,034,066 | 1,776,801 | 33,376,691 | 1,100,446 | |
| Non-current balance of financial assets at fair value through other comprehensive income | Shares of companies | 2,048,210 | 2,068,908 | 1,871,378 |
| 1,871,378 | |
|---|---|
| 2,064,136 | |
| 246,536 | |
| 4,112,346 | |
| 4,133,044 | |
| 2,117,914 | |
| Total financial assets at fair value through other comprehensive income | 42,146,412 |
| 5,909,845 | |
| 35,494,605 | |
| 3,218,360 |
Interest rate swap assets increased due to the rise in market interest rates. The assets arising from interest rate swaps are fully designated for hedging and the effects are recognised in other comprehensive income and shown in the hedging reserve within equity.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| As at 1 January | 4,133,044 | 4,528,987 | 2,117,914 | 2,117,914 |
| Transfer of bonds to current assets | - | (334,077) | - | - |
| Disposals | (20,698) | - | - | - |
| Gain/loss recognised in the other comprehensive income | - | (61,866) | - | - |
| As at 31 December | 4,112,346 | 4,133,044 | 2,117,914 | 2,117,914 |
The Group’s/Company’s financial assets at fair value through other comprehensive income are carried at fair value.
| Year | As at 1 January | New acquisitions as a result of control obtained | New loans | Loans repaid | Reversal of allowances | Transfer from current loans | Transfer to current loans | Foreign exchange differences | As at 31 December |
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 991,831 | - | 178,621 | (1,355,624) | 638,125 | 498,189 | - | (1,865) | 949,277 |
| 2021 | 2,680,471 | 2,656 | 8,231 | (1,602,313) | - | - | (100,259) | 3,045 | 991,831 |
Non-current loans of EUR 59,134,780 (31 December 2021: EUR 83,299,185) comprise non-current loans from Group companies totalling EUR 59,087,634 (31 December 2021: EUR 83,233,789) and non-current loans from others equalling EUR 47,146 (31 December 2021: EUR 65,396).
| Subsidiary | 2022 | 2021 |
|---|---|---|
| Vjetroelektrarna Ljubač d.o.o. | 25,786,626 | 25,786,626 |
| Vjetroelektrarne Glunča d.o.o. | 13,308,291 |
| Company | 2022 (in EUR) | 2021 (in EUR) |
|---|---|---|
| Petrol d.o.o. Beograd | 10,000,000 | 16,200,000 |
| Petrol LPG d.o.o. | 6,000,000 | 6,000,000 |
| Petrol d.o.o., Zagreb | 2,338,826 | |
| STH Energy d.o.o. Kraljevo | 1,402,492 | 1,402,492 |
| Ekoen d.o.o. | 173,200 | 266,400 |
| Ekoen S d.o.o. | 78,199 | 97,749 |
| Crodux derivati dva d.o.o. | 25,980,522 | |
| Petrol Crna Gora MNE d.o.o. | 7,500,000 | |
| Total | 59,087,634 | 59,087,634 |
| Item | 2022 (in EUR) | 2021 (in EUR) |
|---|---|---|
| As at 1 January | 83,299,185 | 58,124,422 |
| New loans | 39,227,436 | 28,602,580 |
| Loans repaid | (54,932,091) | (3,673,270) |
| Reversal of impairment | - | 343,056 |
| Transfer to current loans | (8,441,500) | (97,603) |
| Foreign exchange differences | (18,250) | - |
| As at 31 December | 59,134,780 | 83,299,185 |
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Receivables from companies | 1,216,844 | 1,216,662 | 1,214,651 | 1,214,651 |
| Allowance for receivables from companies | (1,214,831) | (1,214,651) | (1,214,651) | (1,214,651) |
| Receivables from municipalities | 180 | 180 | 180 | 180 |
| Other receivables | 7,013,563 | 8,226,580 | 7,007,360 | 8,218,927 |
| Total non-current operating receivables | 7,015,756 | 8,228,771 | 7,007,540 | 8,219,107 |
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 the profit of the company Geoenergo d.o.o., an allowance was made for the entire receivable.
Other receivables of EUR 7,013,563 (2021: EUR 8,226,580) refer to the non-current portion of receivables arising from selling solar power plants on instalment plans of EUR 7,007,360 (2021: EUR 8,218,927) and other receivables.
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Spare parts and materials | 2,827,561 | 9,990,768 | 2,502,499 | 2,393,989 |
| Merchandise: | 262,021,704 | 170,018,424 | 148,675,864 |
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| - fuel | 94,179,250 | 205,210,206 | 109,844,027 | 105,874,708 |
| - other petroleum products | 64,589,822 | 146,102 | 98,160 | 123,081 |
| - other merchandise | 56,665,396 | 60,076,237 | 42,678,075 | 29,494,094 |
| Total inventories | 264,849,265 | 180,009,192 | 151,178,363 | 96,573,239 |
The Petrol Group has no inventories that are pledged as security for liabilities. After checking the value of goods inventories as at 31 December 2022, 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 6,194,071 (2021: EUR 7,205,752) taking into account the market prices as at the date of the financial statements.
Petrol d.d., Ljubljana has no inventories that are pledged as security for liabilities. After checking the value of goods inventories as at 31 December 2022, 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 2022. In 2021, the Company did not impair its inventories.
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Loans granted | 2,365,069 | 19,371,415 | 39,937,625 | 16,427,850 |
| Allowance to the value of loans granted | (779,400) | (3,751,210) | (718,115) | (1,285,380) |
| Time deposits with banks (3 months to 1 year) | 43,103 | 517,546 |
| Interest receivables | 26,869 |
|---|---|
| 73,654 | |
| 293,088 | |
| 6,616,330 | |
| 5,424,514 | |
| Allowance for interest receivables | (23,288) |
| (262,147) | |
| (4,518,947) | |
| (4,385,935) | |
| Total current loans | 1,679,138 |
| 16,168,692 | |
| 41,343,762 | |
| 16,181,049 |
In addition to the loans of EUR 1,284,433 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 1,080,636 (EUR 17,330,743 as at 31 December 2021) granted to other companies, mainly in connection with the payment of goods delivered.
Short-term loans to companies of EUR 39,937,625 (EUR 16,427,850 as at 31 December 2021) include the short-term portion of loans to Group companies totalling EUR 38,653,192 (EUR 14,387,178 as at 31 December 2021) and short-term loans to others equalling EUR 1,284,433 (EUR 2,040,672 as at 31 December 2021).
| Petrol d.d. | (in EUR) | 31 December 2022 | 31 December 2021 |
|---|---|---|---|
| Current loans to subsidiaries | Petrol d.o.o., Beograd | 16,200,000 | - |
| E 3, d.o.o. | 12,200,000 | 7,600,000 | |
| Atet d.o.o. | 3,490,000 | 2,320,986 | |
| Petrol Power d.o.o. Sarajevo | 3,562,233 | 3,562,233 | |
| Petrol Crna Gora MNE | 2,500,000 | - | |
| Petrol Bucharest ROM S.R.L. | 603,234 | 583,234 | |
| Petrol Oti Terminali d.o.o. | 44,975 | 9,475 | |
| Ekoen d.o.o. | 33,200 | 33,200 | |
| Ekoen S d.o.o. | 19,550 |
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
| Trade receivables | 883,095,961 | 692,538,011 | 585,600,764 | 409,335,386 |
| Allowance for trade receivables | (58,471,044) | (57,763,043) | (30,333,833) | (31,098,414) |
| Operating receivables from state and other institutions | 5,008,957 | 5,450,026 | - | 244,934 |
| Operating interest receivables | 1,362,471 | 1,364,467 | 2,232,069 | 2,335,796 |
| Allowance for interest receivables | (1,239,410) | (1,192,941) | (843,877) | (943,204) |
| Receivables from insurance companies (loss events) | 48,497 | 67,157 | 26,635 | 45,955 |
| Other operating receivables | 17,874,625 | 10,997,013 | 10,833,971 | 6,734,226 |
| Allowance for other receivables | (2,484,713) | (1,326,808) | (724,840) | (824,788) |
845,195,344650,133,882566,790,889385,829,891
Other operating receivables mainly represent card receivables from banks. The changes in allowances are presented in Note 7.1.
In Slovenia, the selling prices of diesel and petrol between 15 March and 20 June 2022 were below the purchase prices for most of the period. As a result of the State's measures on the motor fuel market, the Group estimates damages of EUR 106.9 million in Slovenia for the period from 15 March to 20 June 2022 (claim for damages submitted) and EUR 26.4 million from 21 June 2022 onwards. In Croatia, the Group estimates damages of EUR 55.9 million in 2022 due to the regulation of the prices of petroleum products (claim submitted). The claims for the reimbursement of damages arising from the regulation of the final sale are not recognised in the financial statements of Petrol d.d., Ljubljana, as they do not qualify for recognition as receivables or contingent assets under International Financial Reporting Standards.
The Petrol Group and Petrol d.d., Ljubljana
Contract assets refer to short-term accrued revenue from merchandise. Accrued revenue as at 31 December 2022 stood at EUR 13,319,362 (2021: EUR 3,338,893) in the Group and EUR 11,722,300 (2021: EUR 7,604,649) in the Company.
Contract assets were not impaired.
The Petrol Group
Petrol d.d.
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Assets arising from commodity swaps | 2,297,589 | 34,337,157 | 2,176,692 | 34,231,810 |
| Assets arising from forward contracts | 348,745 | - | 348,745 | - |
| Assets arising from interest rate swaps | - | 329,734 | - | 329,734 |
| Total financial assets at fair value through profit or loss | 2,646,334 | 34,666,891 | 2,525,437 | 34,561,544 |
The Petrol Group and Petrol d.d., Ljubljana
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.
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Prepayments and collaterals | 80,538,388 | 61,569,731 | 27,457,632 | 34,494,898 |
| Prepaid licences, subscriptions, specialised literature, etc. | 3,640,143 | 3,573,415 | 2,888,280 | 2,841,366 |
| Prepaid insurance premiums | 1,618,395 | 1,332,648 | 1,299,037 | 971,052 |
| Other deferred costs | 29,470,937 | 19,242,965 | 19,823,248 | 12,421,468 |
| Total prepayments and other assets | 115,267,863 | 85,718,759 | 51,468,197 | 50,728,784 |
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Cash in banks | 87,958,378 | 91,918,939 | 43,687,289 | 53,148,173 |
| Cash |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 300
Called-up capital
On 1 November 2022, Petrol d.d., Ljubljana, carried out a distribution of PETG shares (in the ratio of 1:20) in accordance with the resolution of the 34th General Meeting following the entry into force of the resolution on the amendment of the Articles of Association, through the entry of the amendment of the Articles of Association in the court register, the corporate exchange act and the prescribed procedures in the Central Register of Securities at the KDD d.o.o. and the Ljubljana Stock Exchange.
The 34th General Meeting of Petrol d.d., Ljubljana, held on 21 April 2022, on the proposal of the Management Board and the Supervisory Board of Petrol d.d., Ljubljana, adopted a resolution on the distribution of PETG shares. The General Meeting adopted a split ratio of 1:20, which means that the total number of PETG shares increased by a factor of 20 from 2,086,301 to 41,726,020 as a result of the amendment of the Articles of Association and the distribution. The share capital of Petrol d.d., Ljubljana, amounting to EUR 52,240,977.04 remained unchanged following the distribution of PETG shares.
Thus the Company’s share capital totals EUR 52,240,977 and is divided into 41,726,020 ordinary shares with a nominal value of EUR 1.25. All the shares have been paid up in full. 41,726,020 ordinary shares (designated PETG) are listed on the Ljubljana Stock Exchange. The quoted share price as at 30 December 2022 was EUR 20.00 per share (EUR 25.40 as at 31 December 2021). And the book value per share of the Group as at 31 December 2022 was EUR 20.47 (EUR 21.78 as at as at 31 December 2021).
Capital surplus
Capital surplus may be used under the conditions and for the purposes stipulated by law. The Group’s capital surplus stood at EUR 80,991,385 as at 31 December 2022 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 2022 was the same as the Group’s capital surplus. In 2022, there were no changes in capital surplus.
Profit reserves
Legal and other profit 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 Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 301 Javno Public proposal of 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 profit reserves of EUR 9,691,939, in accordance with Article 230 of the Companies Act.
| Number of shares | Cost (in EUR)* | ||
|---|---|---|---|
| Total purchases 1997 − 1999 | 722,840 | 3,640,782 | |
| Disposal by year | |||
| Payment of bonuses in 1997 | (22,880) | (104,848) | |
| Payment of bonuses in 1998 | (21,840) | (98,136) | |
| Payment of bonuses in 1999 | (14,300) | (62,189) | |
| Payment of bonuses in 2000 | (25,740) | (119,609) | |
| Payment of bonuses in 2001 | (22,440) | (95,252) | |
| Payment of bonuses in 2002 | (36,600) | (158,256) | |
| Payment of bonuses in 2003 | (32,060) | (138,625) | |
| Payment of bonuses in 2004 | (20,880) | (90,284) | |
| Payment of bonuses in 2005 | (2,880) | (15,183) | |
| Payment of bonuses in 2006 | (8,060) | (42,492) | |
| Payment of bonuses in 2007 | (14,620) | (77,077) | |
| Payment of bonuses in 2008 | (6,480) | (34,162) | |
| Total disposals 1997 − 2008 | (228,780) | (1,036,113) | |
| Own shares as at 31 December 2022 | 494,060 | 2,604,669 |
In 2022, the number of own shares remained unchanged. As at 31 December 2022, the Company held 494,060 own shares. The market value of repurchased own shares totalled EUR 9,881,200 on the above date (EUR 12,549,124 as at 31 December 2021). The Company did not change its reserves for own shares in 2022. For both years, the number of shares after the 1: 20 split carried out in November 2022 is taken into account.
Other reserves of the Group/Company consist of fair value reserve and the hedging reserve. Changes in these reserves that took place in 2022 are explained in more detail in Note 6.14.
The nature of other reserves (especially drawdown) must also take into account local legislation, which may be a matter of professional legal judgement.
The Company’s fair value reserve totalled EUR 42,539,491 as at 31 December 2022. The fair value reserve consists of the reserves of EUR 40,513,851 resulting from the upstream merger of Instalacija d.o.o. and the reserves of EUR 742,921 resulting from carrying financial assets at fair value through other comprehensive income. Its value was increased by actuarial gains resulting from the actuarial calculation of post-employment benefits on retirement totalling EUR 1,423,875 and deferred taxes of EUR 141,155.
The Group's hedging reserves as at 31 December 2022 amount to EUR 17,827,312 and relate to the positive valuation of interest rate swaps of EUR 28,081,756, the negative valuation of forward contracts of EUR 4,872,828, and the negative valuation of commodity derivative financial instruments of EUR 5,381,616.
The Company's hedging reserves as at 31 December 2022 amount to EUR 26,639,848 and relate to the positive valuation of interest rate swaps of EUR 24,537,741 and the positive valuation of commodity derivative financial instruments of EUR 2,102,107.
Interest rate swaps are designated as a hedging instrument against the variability of cash flows from bank borrowings. Forward contracts and commodity-derivative financial instruments are designated as hedging instruments against the variability of cash flows under a gas purchase agreement with a subsidiary, Geoplin d.o.o.
Because all the material characteristics of the hedged item and the hedging instrument are consistent (price, period, amount and quantity), we assess that the hedges are effective and that it is appropriate to record the effects of the hedges in other comprehensive income.
At the 34th General Meeting of the joint-stock company Petrol d.d., Ljubljana held on 21 April 2022, 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 2021 financial year of EUR 61,847,942 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 30.00 per share or the total of EUR 61,667,340 (own shares excluded). The remaining accumulated profit of EUR 180,600 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 profit reserves.
The dividends were paid out of the net profit for 2021. In 2022, the Company paid out dividends for the year 2021 of EUR 61,667,340 and dividends from the previous years of EUR 6,932.
| Petrol d.d. | (in EUR) | 31 December 2022 | 31 December 2021 |
|---|---|---|---|
| Compulsory allocation of net profit | 19,383,878 | 66,482,942 |
| 19,383,878 | 66,482,942 | ||
|---|---|---|---|
| Creation of other profit reserves | 9,691,939 | 33,241,471 | |
| Determination of accumulated profit | Net profit | 9,691,939 | 33,241,471 |
| Decrease by the amount of long-term deferred development costs on the balance sheet date | - | (96,363) | |
| Other profit reserves | 52,156,001 | 28,702,832 | |
| Accumulated profit | 61,847,940 | 61,847,940 |
Acting on the proposal of the Company’s Management Board made upon the approval of the annual report, the Company’s Supervisory Board used the net profit to create other profit reserves of EUR 9,691,939, in accordance with Article 230 of the Companies Act.
The final dividends for the year ended 31 December 2022 have not yet been proposed and confirmed by the owners at a General Meeting, which is why they have not been recorded as liabilities in these financial statements.
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 the estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is performed 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.
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Post-employment benefits on retirement | 5,003,701 | 6,190,099 | 3,789,738 | 5,244,108 |
| Jubilee benefits | 2,832,984 | 3,325,992 | 2,108,880 | 2,725,701 |
| Total provisions | 7,836,685 | 9,516,091 | 5,898,618 | 7,969,809 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 304
Javno
Public
| (in EUR) | Post-employment benefits | Jubilee benefits | Total |
|---|---|---|---|
| As at 1 January 2021 | 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 |
| Current service cost | 483,926 | 80,770 | 564,696 |
| Costs of interest | 9,833 | 9,308 | 19,141 |
| Post-employment benefits paid | (170,283) | (251,425) | (421,708) |
| Actuarial surplus/deficit | (1,501,561) | 76,801 | (1,424,760) |
| Reversal | (8,007) | (407,784) | (415,791) |
| Foreign exchange differences | (306) |
| 5,003,701 | 2,832,984 | 7,836,685 |
|---|---|---|
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 the average salaries 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 2 percentage points, Serbia 4 percentage points, the Federation of Bosnia and Herzegovina 3 percentage points, accompanied by a growth in individual salaries of 0.5 percentage point.
| Change in | Discount rate | Salary increase | Staff turnover |
|---|---|---|---|
| Percentage point | 1.0 | -1.0 | 1.0 |
| Percentage point | 1.0 | -1.0 | 1.0 |
| Effect on the balance of provisions for employee post-employment and other long-term benefits (in EUR) | (934,320) | 1,110,468 | 1,112,900 |
| (953,022) | (993,339) | 1,168,491 |
| Petrol d.d. | (in EUR) | Post-employment benefits | Jubilee benefits | Total |
|---|---|---|---|---|
| As at 1 January 2021 | 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 |
| Current service cost | 371,525 | - | 371,525 |
| Post-employment benefits paid | (146,611) | (218,304) | (364,915) |
| Actuarial surplus/deficit | (1,679,284) | (398,517) | (2,077,801) |
| As at 31 December 2022 | 3,789,738 | 2,108,880 | 5,898,618 |
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 the average salaries will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage point.
| Discount rate | Salary increase | Staff turnover | Change in | Percentage point | Percentage point | Percentage point | Change by |
|---|---|---|---|---|---|---|---|
| 1.0 | -1.0 | 1.0 | (545,927) | ||||
| 1.0 | -1.0 | 1.0 | 647,890 | ||||
| 1.0 | -1.0 | 1.0 | 648,058 | ||||
| 1.0 | -1.0 | 1.0 | (555,972) | ||||
| 1.0 | -1.0 | 1.0 | (579,096) | ||||
| 1.0 | -1.0 | 1.0 | 679,823 |
| Provisions | 31 December 2022 | 31 December 2021 |
|---|---|---|
| Provisions for lawsuits | 2,511,603 | 956,347 |
| Provisions for employee post-employment and other long-term benefits at third-party managed service stations | 2,576,650 | 4,040,854 |
| Other provisions* | 13,122,510 | 29,326,278 |
| Total provisions | 18,210,763 | 34,323,479 |
| Provisions | 31 December 2022 | 31 December 2021 |
|---|---|---|
| Provisions for lawsuits | 1,799,722 | 493,383 |
| Provisions for employee post-employment and other long-term benefits at third-party managed service stations | 2,576,650 | 4,040,854 |
| Other provisions* | 9,005,550 | 13,072,253 |
| Total provisions | 13,381,922 | 17,606,490 |
| Provisions for lawsuits | Other provisions | |
|---|---|---|
| As at 1 January 2021 | 600,602 | 26,586,354 |
| New acquisitions as a result of control obtained | 33,049 | 598,039 |
| Creation of provisions | 666,566 | 7,976,473 |
| Provisions for lawsuits | Other provisions | |
|---|---|---|
| As at 1 January 2021 | 420,849 | 10,182,523 |
| New acquisitions as a result of control obtained | - | - |
| Creation of provisions | 366,017 | 7,717,043 |
| 2021 | 2022 | |
|---|---|---|
| Reversal | (289,082) | (319,900) |
| (5,850,016) | (16,194,016) | |
| (238,177) | ||
| (4,827,313) | (4,066,703) | |
| Utilisation | (55,306) | (82,276) |
| - | - | |
| Foreign exchange differences | 518 | (407) |
| 15,428 | (9,752) | |
| - | - | |
| As at 31 December 2021 | 956,347 | 2,511,603 |
| 29,326,278 | 13,122,510 | |
| 493,383 | 1,799,722 | |
| 13,072,253 | 9,005,550 |
The Group’s other provisions include provisions for partial non-compliance in the area of renewables in transport amounting to EUR 12,986,510 as at 31 December 2022 (2021: EUR 17,819,686). Considering its position, technical limitations and the legislative framework, the Group 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. The Company has provisions of EUR 8,869,550 as at 31 December 2022 (2021: EUR 12,953,253) in respect of the same.
The provisions were estimated by considering all the relevant circumstances regarding conformity with the required standards and legal aspects, and represent the management’s best estimate of how likely the outflow of economic benefits from the Group/Company is. Because the legislation is recent, it is not possible to foresee the timeframe for the settlement of liabilities, which is why the provisions have not been discounted.
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 Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 307
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 2,295,570 as at 31 December 2022 (EUR 867,712 as at 31 December 2021) while the provisions for interest on overdue amounts arising from the claims stood at EUR 216,033 (EUR 88,635 as at 31 December 2021).
The Company’s long-term provisions for lawsuits totalled EUR 1,583,688 as at 31 December 2022 (EUR 404,748 as at 31 December 2021), with the provisions for interest on overdue amounts arising from the claims amounting to EUR 216,033 (EUR 88,635 as at 31 December 2021). 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 the estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is performed 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.
| Petrol d.d. | (in EUR) | Post-employment benefits | Jubilee benefits | Total |
|---|---|---|---|---|
| As at 1 January 2021 | 2,308,050 | 1,852,416 | 4,160,466 | |
| 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 | |
| As at 31 December 2022 | Current service cost | 127,960 | (533,352) | (405,392) |
| Post-employment benefits paid | (51,087) | (103,895) | (154,982) | |
| Actuarial surplus/deficit | (903,830) | - | (903,830) | |
| As at 31 December 2022 | 1,414,737 | 1,161,913 | 2,576,650 |
is based on the actuarial calculation, which relied on the following assumptions:
It is assumed that the average salaries will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage point.
| Change in | Discount rate | Salary increase | Staff turnover |
|---|---|---|---|
| Percentage point | 1.0 | 1.0 | 1.0 |
| -1.0 | -1.0 | -1.0 | |
| Effect on the balance of provisions for employee post-employment and other long-term benefits (in EUR) | (234,121) | 276,326 | 276,397 |
| (238,441) | (248,354) | 289,853 |
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Long-term deferred income from grants | 31,482,845 | 30,614,640 | 28,823,739 | 28,605,113 |
| Other long-term deferred income | 8,448,424 | 3,832,804 | 757,357 | 853,958 |
| Total | 39,931,269 | 34,447,444 |
| Long-term deferred income from grants | Other long-term deferred income | Total | |
|---|---|---|---|
| As at 1 January 2021 | 29,504,005 | 3,908,471 | 33,412,476 |
| Increase | 6,561,174 | 176,462 | 6,737,636 |
| Decrease | (5,450,539) | (263,849) | (5,714,388) |
| Foreign exchange differences | - | 11,720 | 11,720 |
| As at 31 December 2021 | 30,614,640 | 3,832,804 | 34,447,444 |
| Increase | 7,959,892 | 5,368,486 | 13,328,378 |
| Decrease | (7,091,475) | (745,868) | (7,837,343) |
| Foreign exchange differences | (212) | (6,998) | (7,210) |
| As at 31 December 2022 | 31,482,845 | 8,448,424 | 39,931,269 |
Long-term deferred income refers to funds received based on European projects and cohesion funding in the area of energy solutions.
The increase of EUR 7,959,892 (2021: EUR 6,561,174) in long-term deferred income from grants received relates to funds received under European projects and cohesion funds in the field of energy solutions, while the decrease of EUR 7,091,475 (2021: EUR 5,450,539) relates to costs incurred on projects for which we have received funds.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 309
Javno Public Petrol d.d., Ljubljana
| Other long-term deferred income | Total | ||
|---|---|---|---|
| As at 1 January 2021 | 27,522,894 | 896,879 | 28,419,773 |
| Increase | 6,471,686 | 176,462 | 6,648,148 |
| Decrease | (5,389,467) | (219,383) | (5,608,850) |
| As at 31 December 2021 | 28,605,113 | 853,958 | 29,459,071 |
| Increase | 7,363,508 | 172,244 | 7,535,752 |
| Decrease | (7,144,882) | (268,845) | (7,413,727) |
| As at 31 December 2022 | 28,823,739 | 757,357 | 29,581,096 |
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | ||
|---|---|---|---|---|---|
| Current financial liabilities | Bank loans | 85,954,276 | 61,575,727 | 59,493,518 | 61,575,727 |
| Bonds issued | 300,831 | 246,928 | 300,831 | 246,928 | |
| Liabilities to banks arising from interest rate swaps | - | 2,503,965 | - | 2,503,965 |
| Liabilities to banks arising from forward contracts | 8,837,601 |
|---|---|
| 287,484 | |
| 745,579 | |
| 287,484 |
| 1,563,725 | 1,228,002 | 165,271,773 | 207,755,317 | 96,656,433 | 65,842,106 | 225,811,701 | 272,369,421 |
|---|---|---|---|---|---|---|---|
| 357,416,530 | 389,623,422 | 300,538,159 | 339,746,359 |
|---|---|---|---|
| 43,816,929 | 43,809,402 | 43,816,929 | 43,809,402 |
|---|---|---|---|
| 379,543 | 380,171 | 21,000,000 | 21,000,000 |
|---|---|---|---|
| 498,269,435 | 499,655,101 | 591,166,789 | 676,925,182 |
|---|---|---|---|
In 2022, the average interest rate on short-term and long-term sources of finance (including interest rate hedging) stood at 1.91 percent p.a. (2021: 1.92 percent p.a.).
The lending banks require that the financial covenants defined in the loan agreements are maintained at the Petrol Group level. Failure to meet the prescribed covenant values may result in early maturity of the loans. In 2022, before the end of the financial year, the Group reached agreements with banks to change the net debt/EBITDA ratio from the agreed contractual value for 2022. The Group is thus in compliance with all the financial covenants, which demonstrates a healthy liquidity position and confirms the banks’ confidence in the Group’s continued operations.
Liabilities arising from forward contracts for the purchase of US dollars, which stood at EUR 8,837,601 represent the fair values of outstanding forward contracts as at 31 December 2022 (2021: EUR 287,484). The above financial liabilities arising from derivative financial instruments should be considered in conjunction with outstanding contracts disclosed under financial assets at fair value through profit or loss in Note 6.29.
Among the forward liabilities, a part of the liability in the amount of EUR 6,015,836 is earmarked for hedging and the effect of these forward contracts is recognised in other comprehensive income and shown in the hedging reserve within equity.
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 2022, the average interest rate on short-term and long-term sources of finance (including interest rate hedging) stood at 1.69 percent p.a. (2021: 1.89 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 loans obtained by the Company relate mainly to loans from subsidiaries amounting to EUR 177,154,655 (2021: EUR 221,277,769), as shown in the table below.
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| Petrol d.o.o. | 96,031,378 | 85,842,742 |
| Geoplin d.o.o. Ljubljana | 38,500,000 | 86,950,000 |
| IGES d.o.o. | 15,803,898 | 15,786,457 |
| Petrol BH Oil Company d.o.o. Sarajevo | 11,700,000 | 20,000,000 |
| Petrol Trade Handelsgesellschaft m.b.H. | 10,193,496 | 6,779,404 |
| Petrol Geo d.o.o. | 2,866,518 | 1,679,516 |
| MBills d.o.o. | 1,650,000 | 3,850,000 |
| Geoenergo d.o.o. | 300,000 | 300,000 |
| Petrol Skladiščenje d.o.o. | 109,365 | 89,650 |
| Petrol d.o.o. Beograd | - | - |
| Total | 177,154,655 | 221,277,769 |
Changes in financial liabilities
2022
2021
As at 1 January
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Total Assets | 499,655,101 | 347,167,926 | 676,925,182 | 438,409,978 |
| New acquisitions as a result of control obtained | - | 109,787,346 | - | - |
| Proceeds from borrowings | 1,884,402,641 | 926,931,269 | 2,577,234,111 | 1,327,414,213 |
| Repayment of borrowings | (1,891,704,933) | (880,837,557) | (2,662,608,090) | (1,085,490,135) |
| Change in fair value of financial instruments | 6,046,152 | (3,374,046) | (2,045,870) | (5,460,221) |
| Changes in interest liabilities | 16,239 | (26,583) | 1,661,456 | 2,051,347 |
| Foreign exchange differences | (145,765) | 6,746 | - | - |
| As at 31 December | 498,269,435 | 499,655,101 | 591,166,789 | 676,925,182 |
The Petrol Group
Petrol d.d.
(in EUR)
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Non-current lease liabilities | 101,100,126 | 92,991,633 | 27,331,350 | 26,735,533 |
| Current lease liabilities | 17,498,969 | 13,768,130 | 3,965,318 | 2,717,596 |
| Total lease liabilities | 118,599,095 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| As at 1 January | 106,759,763 | 64,466,463 | 29,453,129 | 31,868,245 |
| New acquisitions as a result of control obtained | - | 49,176,771 | - | - |
| Increase | 96,549,794 | 11,857,655 | 5,711,402 | 1,141,233 |
| Decrease | (67,938,761) | (6,664,393) | - | - |
| Interest | 4,557,812 | 2,425,310 | 1,315,973 | 1,291,951 |
| Lease payments | (21,169,006) | (14,481,349) | (5,183,836) | (4,848,300) |
| Foreign exchange differences | (160,507) | (20,694) | - | - |
| As at 31 December | 118,599,095 | 106,759,763 | 31,296,668 | 29,453,129 |
All non-current operating liabilities include the liabilities of Petrol d.d., Ljubljana.
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| 2,024,000 | 5,024,000 | 2,024,000 | 5,024,000 |
|---|---|---|---|
| 572,382 | 637,782 | 572,382 | 637,782 |
|---|---|---|---|
| 2,596,382 | 5,661,782 | 2,596,382 | 5,661,782 |
|---|---|---|---|
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 312
Javno
Public
The liabilities for shares in companies purchased are mainly liabilities for the payment of the purchase price of Crodux Derivati Dva d.o.o. amounting to EUR 2,000,000.
The Group’s/Company’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.
| Trade liabilities | 829,990,796 | 549,530,229 | 598,342,065 | 349,637,848 |
|---|---|---|---|---|
| Excise duty liabilities | 116,169,181 | 61,892,936 | 101,934,781 | 44,570,278 |
| Value added tax liabilities | 103,251,423 | 44,535,860 | 73,163,760 | 22,003,518 |
| Liabilities to employees | 10,274,352 | 9,130,848 | 6,529,867 | 5,709,649 |
| Other liabilities to the state and other state institutions | 4,815,981 | 3,758,297 | 1,720,853 |
| Liabilities arising from interests acquired | 1,181,150 | 3,947,693 | 6,597,693 | 3,450,000 | 6,100,000 |
|---|---|---|---|---|---|
| Liabilities for environmental charges and contributions | 4,486,633 | 8,503,921 | 1,886,975 | 8,476,548 | |
| Import duty liabilities | 2,946,580 | 596,054 | - | - | |
| Social security contribution liabilities | 1,945,001 | 1,742,750 | 952,677 | 815,529 | |
| Liabilities associated with the allocation of profit or loss | 768,880 | 775,812 | 768,880 | 775,812 | |
| Other liabilities | 3,507,389 | 3,392,213 | 3,463,423 | 3,237,600 | |
| Total current operating and other liabilities | 1,082,103,909 | 690,456,613 | 792,213,281 | 442,507,932 |
In 2022, the liabilities associated with the allocation of profit or loss increased based on the General Meeting resolution on the payment of dividends of EUR 61,667,340 (2021: EUR 45,222,716) and decreased based on the payment of the 2021 dividends of EUR 61,667,340 (2021: EUR 45,222,706) to shareholders and the payment of dividends from previous years totalling EUR 6,932 (2021: EUR 185).
Among trade liabilities there is liability to Gazprom measured at fair value in amount of EUR 3,550 thousand.
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Commodity derivative instruments | 29,872,456 | 116,341 | 16,007,602 | 116,341 |
| Total commodity derivative instruments | 29,872,456 | 116,341 | 16,007,602 | 116,341 |
| The Petrol Group | Petrol d.d. | (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|---|---|
| Short-term prepayments and securities given | 20,018,795 | 12,053,171 | 16,295,826 | 5,973,801 | ||
| Deferred prepaid card revenue | 3,016,958 | 2,611,155 | 2,071,191 | 1,932,037 | ||
| Deferred revenue from rebates and discounts granted | 86,523 | 164,018 | ||||
| Other | 31,299 | |||||
| Total contract liabilities | 23,153,575 | 14,828,344 | 18,367,017 | 7,905,838 |
Revenue related to advances received and securities received from customers is expected to be recognised in the financial statements within two months of the receipt of the advance or security.
| The Petrol Group | Petrol d.d. | (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|---|---|
| Accrued annual leave expenses | 3,964,599 | 3,229,710 | 2,279,179 | 1,755,565 | ||
| Accrued expenses for tanker demurrage |
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 2022.
| Accrued motorway site lease payments | 968,947 | 502,794 | 968,947 | 502,794 |
|---|---|---|---|---|
| Accrued concession fee costs | 531,993 | 592,868 | 531,993 | 592,868 |
| Short-term provisions for onerous contracts | 360,333 | 433,122 | 356,736 | 316,567 |
| Other accrued costs | 785,846 | 20,924,454 | - | 20,924,454 |
| Other accrued charges mainly represent accrued labour costs of EUR 3,883,773, accrued contractual penalties of EUR 2,933,191, accrued material costs of EUR 648,811, accrued payment card costs of EUR 472,236 and accrued intellectual services costs of EUR 301,793. | ||||
| Other deferred revenue | 26,736,957 | 29,749,767 | 26,345,012 | 23,668,402 |
| Total other liabilities | 4,770,243 | 3,185,584 | 4,643,206 | 3,093,276 |
Other costs include licence maintenance costs, logistics costs, costs of services provided to energy solutions, commissions payable and other accrued costs.
As at 31 December 2022, the Group/Company has concluded contracts with customers for the supply of electricity for 2023. As part of the sold quantities of the Group/Company for 2023 is not purchased at relevant prices, compared to the contract prices in sales contracts, the costs of fulfilling contractual commitments will exceed the expected economic benefits from the contracts.
Accordingly, the Group/Company has formed new provisions from short-term onerous contracts for the supply of electricity in the amount of EUR 785,846. The amount was determined based on the estimated economic benefits and the costs of services under contracts for the supply of electricity. The projected market prices of electricity for 2023 were used in the calculations. Provisions from 2021 in the amount of EUR 20,924,453 were used up in 2022.
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 expected credit loss (ECL) is calculated as the product of:
The carrying amount of financial assets has the maximum exposure to credit risks and was the following as at 31 December 2022:
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Financial assets at fair value through other comprehensive income | 42,146,412 | 5,909,845 | 35,494,605 | 3,218,360 |
| Non-current loans | 949,277 | 991,831 | 59,134,780 | 83,299,185 |
| Non-current operating receivables | 7,015,756 | 8,228,771 | 7,007,540 | 8,219,107 |
| Contract assets | 13,319,362 | 3,338,893 | 11,722,300 | 7,604,649 |
| Current loans | 1,679,138 | 16,168,692 | 41,343,762 | 16,181,049 |
| Current operating receivables (excluding rec. from the state) | 840,186,387 | 644,683,856 | 566,790,889 | 385,584,957 |
| Financial assets at fair value through profit or loss | 2,646,334 | 34,666,891 | 2,525,437 | 34,561,544 |
| Cash and cash equivalents | 100,962,531 | 100,226,890 | 51,203,361 | 57,567,397 |
| Total assets | 1,008,905,197 |
The item that was most exposed to credit risk on the reporting date was the current operating receivables. Compared to the end of 2022, they decreased, in nominal terms, by 30 percent in the case of the Group and 47 percent in the case of the Company.
Financial assets at fair value through profit or loss consist mainly of derivative financial instruments.
| 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 | 572,042,233 | 51,421,340 | 7,287,064 | 1,296,628 | 2,727,703 | 634,774,968 |
| 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 | 581,349,164 | 51,808,754 | 7,299,072 | 1,314,736 | 2,912,130 | 644,683,856 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 315
| Maturity | Amount (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 | |
| Trade receivables | 738,315,493 | 71,183,742 | 9,407,479 | 3,515,484 | 2,202,719 |
| Interest receivables | 6,188 | 1,933 | 33,538 | 16,781 | 64,621 |
| Other receivables (excluding receivables from the state) | 14,610,337 | 787,652 | 188 | 758 | 39,474 |
| Total as at 31 December 2022 | 752,932,018 | 71,973,327 | 9,441,205 | 3,533,023 | 2,306,814 |
| Maturity | Amount (in EUR) |
|---|---|
| Not yet due | 342,546,756 |
| Up to 30 days overdue | 20,534,767 |
| Including 30 to 60 days overdue | 3,623,504 |
| Including 60 to 90 days overdue | 814,462 |
| More than 90 days overdue | 10,717,483 |
| 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 |
| 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 | 513,737,535 | 27,798,258 | 4,482,811 | 1,589,324 | 7,659,003 | 555,266,931 |
| Interest receivables | - | - | - | - | 1,388,192 | 1,388,192 |
| Other receivables (excluding receivables from the state) | 9,531,621 | 563,655 | 188 | 758 | 39,544 | 10,135,766 |
| 523,269,156 | 28,361,913 | 4,482,999 | 1,590,082 | 9,086,739 | 566,790,889 |
|---|---|---|---|---|---|
| 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) |
| Creation/reversal of allowances affecting profit or loss | (7,966,732) | (65,643) | (8,032,375) |
| Changes in allowances not affecting profit or loss | (3,176,365) | (35,760) | (3,212,125) |
| Write-downs | 2,919,772 | 126,043 | 3,045,815 |
| Foreign exchange differences | (11,559) | (3,475) | (15,034) |
| As at 31 December 2021 | (59,089,851) | (1,192,941) | (60,282,792) |
316
| Allowance for current operating receivables | Allowance for current interest receivables | Total | |
|---|---|---|---|
| As at 1 January 2022 | (59,089,851) | (1,192,941) | (60,282,792) |
| Creation/reversal of allowances affecting profit or loss | (7,598,209) | (99,466) |
| (7,697,675) | 249,964 | (290,411) | (40,447) |
|---|---|---|---|
| Write-downs | 5,462,098 | 343,417 | 5,805,515 |
| Foreign exchange differences | 20,241 | (9) | 20,232 |
| (60,955,757) | (1,239,410) | (62,195,167) |
|---|---|---|
| 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) |
| As at 1 January 2022 | (31,923,202) | (943,204) | (32,866,406) |
| Creation/reversal of allowances affecting profit or loss | (2,734,572) | - | (2,734,572) |
| Changes in allowances not affecting profit or loss | - | (193,123) | (193,123) |
| 3,599,101 | 292,450 | 3,891,551 | |
|---|---|---|---|
| As at 31 December 2022 | (31,058,673) | (843,877) | (31,902,550) |
| (in EUR) | 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| Current trade receivables | 883,095,961 | 692,538,011 | 585,600,764 | 409,335,386 |
| Allowances | (58,471,044) | (57,763,043) | (30,333,833) | (31,098,414) |
| Current trade receivables including allowances | 824,624,917 | 634,774,968 | 555,266,931 | 378,236,972 |
| Overdue current trade receivables (gross amount) | 130,909,575 | 107,423,690 | 62,527,269 | 58,813,962 |
| Share of overdue receivables in outstanding receivables | 15 % | 16 % | 11 % | 14 % |
| Credit insurance | 283,079,740 | 214,325,348 | 126,186,073 | 97,047,976 |
|---|---|---|---|---|
| Supplier (offsetting transaction) | 210,720,716 | 122,394,599 | 166,740,382 | 78,178,182 |
| Bank guarantee | 12,705,138 | 17,283,712 | 3,162,336 | 2,882,496 |
| Lien | 10,151,491 | 10,034,391 | 5,666,766 |
| Received prepayments and collaterals | 3,222,076 |
|---|---|
| 9,353,964 | |
| 1,499,449 | |
| 9,181,402 | |
| 1,369,708 | |
| High-quality guarantee | 8,726,199 |
| 14,155,235 | |
| 7,923,843 | |
| 7,239,420 | |
| Total current operating receivables over EUR 100,000 secured with high-quality collaterals | 534,737,248 |
| 379,692,734 | |
| 318,860,802 | |
| 189,939,857 |
| Collateral coverage (v %) | 79 % |
|---|---|
| 79 % | |
| 84 % | |
| 81 % |
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 42,314,524 as at 31 December 2022 (the customer is a company), accounting for 4.8 percent of the Group’s trade receivables. The receivable from the Company’s largest single customer stood at EUR 42,314,524 as at 31 December 2022 (the customer is a company), accounting for 7.2 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 40,310 active customers (legal persons) as at 31 December 2022. 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 2022, 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.
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in days) | 2022 | 2021 | 2022 | 2021 |
| Days sales outstanding | 27 | 36 | 23 | 31 |
| Overdue receivables in days | 3 | 4 | 2 |
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 realising 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.
The business and wider societal environment in the EU and globally were strongly influenced by the war in Ukraine, the crisis situation in the energy markets (high prices and the uncertain supply of fuels and energy products), the resulting diverging national approaches to regulating fuel prices to mitigate the impact of the energy crisis on people and businesses, and high inflation. Therefore, the Petrol Group continues to intensify its activities and pay more attention and care to liquidity risk management.
Successfully managing the Group’s/Company’s liquidity risk in line with Standard & Poor’s guidelines remains a key objective despite the challenging circumstances.
The Group/Company manages liquidity risks through:
Despite the impact of the war in Ukraine, the crisis situation in the energy markets and the consequences of different national approaches to the regulation of energy prices in the domestic market and in the markets where the Group operates, which present additional uncertainties for the Group’s operations, we have optimised our cash flow planning and responded in a timely manner to all changes and challenges, ensuring optimal and strong liquidity for the Group. In order to ensure the Group’s stable liquidity position, in the third quarter, we started activities to obtain additional credit lines to further strengthen the Group’s stable and solid liquidity position. Our strong liquidity position also allows for the settlement of all liabilities as they fall due.
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. 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.
| Carrying amount of liabilities | Contractual cash flows (in EUR) | Liability | 0 to 6 months | 6 to 12 months |
|---|---|---|---|---|
| Liabilities | 1 to 5 months | More than 5 years | Non-current financial liabilities | Current financial liabilities | Current lease liabilities | Liabilities arising from commodity forward contracts* | Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | Commodity derivative instruments |
|---|---|---|---|---|---|---|---|---|
| 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 | - | - | 5,024,000 | - | ||
| Current financial liabilities | 65,842,106 | 70,964,562 | 51,114,568 | 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 | - | - | ||
| Commodity derivative instruments | 116,341 | 116,341 | 116,341 | - | - | - |
The current financial liabilities include derivative financial instruments totalling EUR 2,791,449.
| Carrying amount of liabilities | 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 | 401,613,002 | 433,536,129 | - | - | 372,631,738 | 60,904,391 |
| Non-current lease liabilities | 101,100,126 | 109,074,515 | - | - | 85,655,698 | 23,418,817 |
| Non-current operating liabilities (excluding other liabilities) | 2,024,000 | 2,024,000 | - | - | 2,024,000 | - |
| Current financial liabilities | 96,656,433 | 110,096,768 | 61,187,352 | 48,909,416 | - | - |
| Current lease liabilities | 17,498,969 | 21,007,713 | 11,041,027 | 9,966,686 | - | - |
| 1,636,926,610 | 756,687,613 | 622,733,589 | 257,505,408 |
|---|---|---|---|
| 838,214,758 | 838,214,758 | 837,450,259 | 764,499 |
|---|---|---|---|
| 29,872,456 | 29,872,456 | 29,872,456 | |
|---|---|---|---|
| 1,486,979,744 | 3,180,752,949 | 1,696,238,707 | 682,374,190 | 717,816,844 | 84,323,208 |
|---|---|---|---|---|---|
The current financial liabilities include derivative financial instruments totalling EUR 8,837,601.
| Carrying amount of liabilities | 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 | 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 | - | - | 5,024,000 | - | ||
|---|---|---|---|---|---|---|
| Current financial liabilities | 272,369,421 | 279,188,159 | 105,988,961 | 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 | 51,873,821 | |
| 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 | ||
| Commodity derivative instruments | 116,341 | 116,341 | 116,341 | - | - | |
| 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 | 211,287,643 | 301,314,396 |
The current financial liabilities include derivative financial instruments totalling EUR 2,791,449.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 320
| Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
|---|---|---|---|---|
| Non-current financial liabilities | 365,355,088 | 397,362,215 | - | - |
| 315,808,328 | 81,553,887 | - | - | |
| Non-current lease liabilities | 27,331,350 | 36,394,573 | - | - |
| 16,335,004 | 20,059,569 | - | - | |
| Non-current operating liabilities (excluding other liabilities) | 2,024,000 | 2,024,000 | - | - |
| 2,024,000 | - | - | - | |
| Current financial liabilities | 225,811,701 | 240,808,279 | 200,158,490 | 40,649,789 |
| Current lease liabilities | 3,965,318 | 5,162,635 | 2,691,072 | 2,471,563 |
| Liabilities arising from commodity forward contracts* | - | 1,625,382,552 | 748,075,117 | 619,802,027 |
| 257,505,408 | - | - | - | |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | - | - | - | - |
| Commodity derivative instruments | 606,024,368 |
|---|---|
| 606,024,367 | |
| 605,806,817 | |
| 217,550 | |
| - | |
| - | |
| Contingent liabilities for guarantees issued** | 16,007,602 |
| 16,007,602 | |
| 16,007,602 | |
| - | |
| - | |
| - | |
| 368,063,707 | |
| 368,063,707 | |
| - | |
| - | |
| - | |
| 1,246,519,427 | |
| 3,297,229,930 | |
| 1,940,802,805 | |
| 663,140,929 | |
| 591,672,740 | |
| 101,613,456 |
** A maximum amount of contingent liabilities is allocated to the period in which the Company can be requested to make a payment.
The current financial liabilities include derivative financial instruments totalling EUR 745,579.
| EUR | USD | HRK | BAM | RSD | RON | Other | Total | |
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 61,013,124 | 1,156,764 | 29,756,999 | 2,417,531 | 2,101,401 | 3,375,162 | 405,909 | 100,226,890 |
| Current operating receivables (excluding rec. from the state) | 481,505,521 |
| 847,677 | 106,875,723 | 27,387,657 | 27,616,081 | 442,479 | 8,718 | 644,683,856 | ||
|---|---|---|---|---|---|---|---|---|
| Non-current operating receivables | 8,223,281 | - | 3,479 | - | 2,011 | - | - | 8,228,771 |
| Current loans | 15,336,028 | - | 313,552 | 1,566 | - | - | 517,546 | 16,168,692 |
| Non-current loans | 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) | (1,050) | (632,431) | (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) | - | (58,967) | - | (32,634) | - | - | (65,842,106) |
| 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) | (62,852,288) | 1,183,822 | 19,790,111 | 23,490,747 | 3,818,509 | 299,742 | (401,434,771) |
| 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) | 22,596,287 | 1,183,822 | 19,790,111 | 23,490,747 | 13,675,704 | 299,742 | (401,434,771) |
| EUR | USD | HRK | BAM | RSD | RON | Other | Total |
|---|---|---|---|---|---|---|---|
| 54,580,906 | 7,933,042 | 19,251,321 | 3,514,250 |
| Current operating receivables (excluding rec. from the state) | 10,561,710 | 4,340,968 | 780,334 | 100,962,531 |
|---|---|---|---|---|
| 664,758,580 | 3,185,317 | 101,803,591 | 38,109,671 | |
| 31,832,732 | 442,479 | 54,017 | 840,186,387 | |
| Non-current operating receivables | 7,013,743 | - | - | - |
| 2,013 | - | - | 7,015,756 | |
| Current loans | 1,321,649 | - | 340,265 | 990 |
| - | - | 16,234 | 1,679,138 | |
| Non-current loans | 52,798 | - | 894,523 | - |
| - | 1,956 | - | 949,277 | |
| Non-current operating liabilities (excluding other liabilities) | (2,024,000) | - | - | - |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | (651,101,201) | (143,987,078) | (37,239,860) | (2,000,207) |
| (3,710,871) | - | (175,541) | (838,214,758) | |
| Non-current financial liabilities | (351,703,263) | - | (49,909,739) | - |
| - | - | - | - |
| (401,613,002) | Non-current lease liabilities | (94,209,290) |
|---|---|---|
| (2,930,085) | (3,960,751) | |
| (101,100,126) | Current financial liabilities | (96,375,479) |
| (280,954) | ||
| (96,656,433) | Current lease liabilities | (16,459,073) |
| (401,466) | (638,430) | |
| (17,498,969) | Exposure of the statement of financial position | (484,144,630) |
| (132,868,719) | 34,859,147 | 36,293,153 |
| 34,086,403 | 4,785,403 | 675,044 |
| (506,314,199) | Nominal value of forward contracts | (450,436,390) |
| 440,579,195 | ||
| 9,857,195 | ||
| (934,581,020) | Net exposure of the statement of financial position | 307,710,476 |
| 34,859,147 | 36,293,153 | 34,086,403 |
| 14,642,598 | 675,044 | (506,314,199) |
Javno
Public
| Item | EUR | USD | HRK | BAM | RSD | RON | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 53,486,780 | 351,048 | 19,083 | 55 | 29,358 | 3,366,757 | 314,316 | 57,567,397 |
| Current operating receivables (excluding rec. from the state) | 384,117,222 | - | 1,016,538 | - | - | 442,479 | 8,718 | 385,584,957 |
| Non-current operating receivables | 8,219,107 | - | - | - | - | - | - | 8,219,107 |
| Current loans | 16,181,049 | - | - | - | - | - | - | 16,181,049 |
| Non-current loans | 65,521,247 | - | 17,777,938 | - | - | - | - | 83,299,185 |
| Non-current operating liabilities (excluding other liabilities) | (5,024,000) | - | - | - | - | - | - | (5,024,000) |
| Current operating liabilities (excluding liabilities to the state, | - | - | - | - | - | - | - | - |
| Non-current financial liabilities | (404,555,761) |
|---|---|
| Non-current lease liabilities | (26,735,533) |
| Current financial liabilities | (254,572,408) |
| Current lease liabilities | (2,717,596) |
| (460,862,423) | (62,604,781) | (364,634) | 55 | 29,358 | 3,809,236 | (308,687) | (520,301,876) |
|---|---|---|---|---|---|---|---|
| (95,305,770) | 85,448,575 | - | - | - | 9,857,195 | - | - |
|---|---|---|---|---|---|---|---|
| (556,168,193) | 22,843,794 |
|---|---|
| EUR | USD | HRK | BAM | RSD | RON | Other | Total | |
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | 38,154,909 | 7,914,181 | 106,873 | - | 29,396 | 4,300,827 | 697,175 | 51,203,361 |
| Current operating receivables (excluding rec. from the state) | 564,992,018 | 898,973 | 403,841 | - | - | 442,479 | 53,578 | 566,790,889 |
| Non-current operating receivables | 7,007,540 | - | - | - | - | - | - | 7,007,540 |
| Current loans | 41,042,883 | - | 300,879 | - | - | - | - | 41,343,762 |
| Non-current loans | 56,795,954 | - | 2,338,826 | - | - | - | - | 59,134,780 |
| Non-current operating liabilities (excluding other liabilities) | (2,024,000) | - | - | - | - | - | - | (2,024,000) |
| Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) | (461,963,051) | (143,881,855) | (5,961) | - | - | - | (173,500) | (606,024,367) |
|---|---|---|---|---|---|---|---|---|
| Non-current financial liabilities | (365,355,088) | - | - | - | - | - | (365,355,088) | |
| Non-current lease liabilities | (27,331,350) | - | - | - | - | - | (27,331,350) | |
| Current financial liabilities | (225,449,533) | - | (362,168) | - | - | - | - | (225,811,701) |
| Current lease liabilities | (3,965,318) | - | - | - | - | - | (3,965,318) | |
| Exposure of the statement of financial position | (378,095,036) | (135,068,701) | 2,782,290 | - | 29,396 | 4,743,306 | 577,253 | (505,031,492) |
| Nominal value of forward contracts | (151,093,284) | 141,236,089 | - | - | - | - | - | - |
| 9,857,195 | - | - |
|---|---|---|
| (529,188,320) | 6,167,388 | 2,782,290 |
| - | 29,396 | 14,600,501 |
| 577,253 | (505,031,492) | - |
| Per 1 euro | 31 December 2022 | 31 December 2021 |
|---|---|---|
| USD | 1.0666 | 1.1334 |
| HRK | 7.5365 | 7.5211 |
| BAM | 1.9558 | 1.9558 |
| RSD | 117.2900 | 117.4400 |
| CZK | 24.1160 | 24.9170 |
| RON | 4.9495 | 4.9494 |
| MKD | 61.6000 | 61.5350 |
| HUF | 400.8700 | 370.1500 |
| CHF | 0.9847 | 1.0363 |
| BGN | 1.9558 | 1.9558 |
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 and natural gas 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 cash flows from purchase of oil and petroleum products. The hedging instruments used in this case are forward contracts entered into with banks.
The Petrol Group
The Group/Company is exposed to price and volumetric risks arising from energy operations. The Group/Company manages price and volumetric risks primarily by aiming to align the purchases and sales of energy products in terms of quantities, as well as purchase and sales conditions, thus securing its margin. Depending on the business model of the energy product, limits are set that limit the exposure to price and volumetric risks.
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Unrealised loss | (8,837,601) | (287,484) | (745,579) | (287,484) |
| Unrealised gain | 348,745 | - | 348,745 | - |
| Realised loss | (7,457,219) | (1,728,783) | (15,549,241) | (1,728,783) |
| Realised gain | 19,339,011 | 4,195,325 | 19,339,011 | 4,195,325 |
| Total effect of forward contracts | 3,392,936 | 2,179,058 | 3,392,936 | 2,179,058 |
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: revenue of EUR 2,622,222 (2021: expenses of EUR 2,721,775) for the Group and revenue of EUR 2,778,784 (2021: expenses of EUR 1,787,256) for the Company.
Given that forward contracts for hedging against foreign exchange risks are entered into with first-class European banks, the Group/Company considers that the counterparty default risk is 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 2022, the Group/Company was also exposed to certain other currencies (RON), 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.
The Group/Company regularly monitors its open currency position and sensitivity based on the VaR method for all currencies to which it is exposed.
To hedge petroleum product prices, the Group/Company uses mostly derivative financial instruments. From the beginning of 2022, the forward price of next month’s Diesel 10 ppm CIF Med H has increased from EUR 591.36 per MT to EUR 867.66 per MT, an increase of 47 percent. The price peaked in mid-June 2022, when it reached EUR 1,267.74 per MT. Such a high increase in energy product prices significantly increases the price risks managed by the Group through a set of limit systems defined according to the business partner and product, and through appropriate monitoring and control processes. The partners in this area include global financial institutions and banks or suppliers of goods, which is why the Group/Company considers the counterparty default risk as minimal.
As part of the management of volumetric and price risks, regular adjustments to retail and wholesale plans were made and appropriate financial hedging transactions were entered into. The changes to the regulations had no impact on the price and volumetric risk management system itself, but there was an impact on the sale of petroleum products. The State (Slovenia) is expected to make good the losses incurred during the period, as a result of the Decree limiting the selling prices of petroleum products.
Trading in electricity exposes the Group to price and volumetric risks. In the period from the beginning of 2022 until 26 August 2022, prices for electricity supplied in Hungary in 2023 have been increasing. On 26 August 2022, the price peaked at EUR 1,007 per MWh and then gradually decreased until the end of 2022. On 28 December 2022 (the last day of quotation of the annual price for 2023 delivery in Hungary on the EEX), the price was EUR 259.85 per MWh, up 104 percent compared to the beginning of the year when the price was EUR 127.18 per MWh. The main reason for the high rise in electricity prices is the high rise in natural gas prices as a result of the closure of nuclear power plants in Germany and the war in Ukraine.
The natural gas prices for delivery in 2022 in Austria (CEGH market) have increased since the beginning of 2022 from EUR 46.18 per MWh to EUR 88.37 per MWh (28 December 2022), i.e. by 91 percent, peaking on the same day as electricity (26 August 2022) at EUR 314.6 per MWh.
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 Petrol Group regularly monitors the adequacy of the limit systems used, which it renews and supplements if necessary.
| (in EUR) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Unrealised loss | (29,872,456) | (116,341) | (16,007,602) | (116,341) |
| Unrealised gain | 5,380,773 | 34,359,395 | 5,259,876 | 34,254,048 |
| Realised loss | (528,826,694) | (235,612,141) | (535,263,668) | (236,216,896) |
| Realised gain | 517,714,046 | 235,572,585 | 519,804,227 |
(35,604,331)
34,203,498
(26,207,167)
33,513,497
In the electricity trading segment, the effect of changes in electricity market prices on the market value of contracts is calculated (mark-to-market approach). A change in electricity market prices of ±3 percent as at 31 December 2022 would mean that the market value of the contracts would be EUR ±252,000. The calculation includes both physical and financial transactions.
In the case of petroleum products and natural gas, volumes are bought on the market with a view to selling to end-customers. In this case, there is no trading with petroleum products, which means that the key risk is not the price risk but the volumetric risk, which is managed by a limit system linked to the volumetric exposure.
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 2022, 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.
| 6-month Euribor | 3-month Euribor | 1-month Euribor | |
|---|---|---|---|
| Value as at 31/12/2021 (in percent) | (0.544) | (0.571) | (0.594) |
| Value as at 31/12/2022 (in percent) | 2.693 | 2.132 | 1.884 |
| Change in interest rate (in percentage points) | 3.237 | 2.703 | 2.478 |
| The lowest value in 2022 (in percent) | (0.539) | (0.576) | (0.576) |
| The highest value in 2022 (in percent) | 2.752 | 2.184 | 1.913 |
| Change between the lowest and the highest interest rate (in percentage points) | 3.291 | 2.76 | 2.489 |
(0.523)(0.549)(0.561)
0.6820.3480.094
1.2050.8970.656
| The Petrol Group | Petrol d.d. | (in EUR) | 31 December 2022 | 31 December 2021 |
|---|---|---|---|---|
| 6 to 12 months | 34,000,000 | 34,000,000 | 74,000,000 | 74,000,000 |
| 1 to 5 years | 323,000,000 | 273,000,000 | 307,000,000 | 257,000,000 |
| Total interest rate swaps | 357,000,000 | 307,000,000 | 381,000,000 | 331,000,000 |
| The Petrol Group | Petrol d.d. | (in EUR) | 2022 | 2021 |
|---|---|---|---|---|
| Unrealised loss on effective transactions | 35,701,883 | 31,719,264 | 4,109,730 | 3,283,988 |
| Realised loss | (329,734) | (329,734) | (2,156,222) | (1,968,491) |
| Total effect of interest rate swaps | 35,372,149 | 31,389,530 | 1,953,508 | 1,315,497 |
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Loans | 1,486,919 | 1,788,799 | 95,514,226 | 95,847,532 |
| Financial liabilities | (91,328,000) | (144,855,441) | (257,150,704) | (316,133,210) |
| Net financial instruments with a fixed interest rate | (89,841,081) | (143,066,642) | (161,636,478) | (220,285,678) |
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Loans | 1,141,496 | 15,371,724 | 4,964,316 | 3,632,702 |
| Financial liabilities | (406,941,435) | (354,799,660) | (334,016,085) | (360,791,972) |
| Net financial instruments with a variable interest rate | (405,799,939) | (339,427,936) | (329,051,769) | (357,159,270) |
| 31 December 2021 | 31 December 2022 | 31 December 2021 | 31 December 2022 | |
|---|---|---|---|---|
| Interest rate swaps | 357,000,000 | 381,000,000 | 307,000,000 | 331,000,000 |
| Total interest rate swaps | 357,000,000 | 381,000,000 | 307,000,000 | 331,000,000 |
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 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Cash flow variability (net)–100 bp | (487,999) | 415,721 | (220,518) | (261,593) |
| Cash flow variability (net)–200 bp | (975,999) | 831,441 | (441,035) | (523,185) |
| 31 December 2022 | 31 December 2021 | 31 December 2022 | 31 December 2021 | |
|---|---|---|---|---|
| Cash flow variability (net)–100 bp | 487,999 | (415,721) | 220,518 | 261,593 |
| Cash flow variability (net)–200 bp | 975,999 | (831,441) | 441,035 |
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. S&P’s Global Ratings placed the Company on CreditWatch Negative in July 2022 due to the impact of the negative intervention in the fuel market, but in December 2022 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 2022, the Petrol Group continued to implement its strategic direction in the area of indebtedness and maintained the net debt/equity ratio at acceptable levels that provide the Group with a stable position for future operations.
Despite the consequences of the negative intervention in the fuel market, the uncertainties regarding the reimbursement of the damage caused by the intervention and the risks associated with possible additional interventions in the energy markets in 2022, the Petrol Group continued to implement its strategic direction in the area of indebtedness and maintained the net debt/equity ratio at acceptable levels that provide the Group with a stable position for future operations. The Group obtained approval from the banks for the deviation of the Net Debt/EBITDA ratio from the agreed contractual value in 2022, which demonstrates the Group’s healthy liquidity position and confirms the banks’ confidence in the Group’s future performance.
| Effect of changes in interest rates on profit or loss | |
|---|---|
| -5,000,000 | -4,000,000 |
| -3,000,000 | -2,000,000 |
| -1,000,000 | 0 |
| 1,000,000 | 2,000,000 |
| 3,000,000 | 4,000,000 |
| 5,000,000 | |
| -2 % | -1 % |
| 0 % | 1 % |
| 2 % |
| (in EUR) | 31 December 2022 | 31 December 2021 |
|---|---|---|
| Category | 31 December 2022 | 31 December 2021 |
|---|---|---|
| Non-current financial liabilities | 401,613,002 | 433,812,995 |
| Non-current lease liabilities | 101,100,126 | 92,991,633 |
| Current financial liabilities | 96,656,433 | 65,842,106 |
| Current lease liabilities | 17,498,969 | 13,768,130 |
| Total financial liabilities | 616,868,530 | 606,414,864 |
| Total equity | 860,166,621 | 908,698,005 |
| Debt/Equity | 0.72 | 0.67 |
| Cash and cash equivalents | 100,962,531 | 100,226,890 |
| Net financial liabilities | 515,905,999 | 506,187,974 |
| Net debt/Equity | 0.60 | 0.56 |
| Category | 31 December 2022 (in EUR) | Carrying amount | Fair value | 31 December 2021 (in EUR) |
|---|---|---|---|---|
| Non-derivative financial assets at fair value | Financial assets at fair value through other comprehensive |
| Income | 42,146,412 | 42,146,412 |
|---|---|---|
| Non-derivative financial assets at amortised cost | ||
| Loans | 2,628,415 | 2,628,415 |
| Operating receivables (excluding receivables from the state) | 847,202,143 | 847,202,143 |
| Contract assets | 13,319,362 | 13,319,362 |
| Cash and cash equivalents | 100,962,531 | 100,962,531 |
| Total non-derivative financial assets | 1,006,258,863 | 1,006,258,863 |
| Non-derivative financial liabilities at amortised cost | ||
| Bank loans and other financial liabilities (excluding derivative fin.instr.) | (489,431,834) | (489,431,834) |
| Lease liabilities | (118,599,095) | (118,599,095) |
| Operating liabilities (excluding other non-current liabilities and current liabilities to the state and employees) | (840,238,758) | (840,238,758) |
| Total non-derivative financial liabilities | (1,448,269,687) | (1,448,269,687) |
| Derivative financial instruments at fair value | ||
| Derivative financial instruments (assets) | 2,646,334 | 2,646,334 |
| Derivative financial instruments (liabilities) | (38,710,057) | (38,710,057) |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| Carrying amount | (36,063,723) | (36,063,723) |
| Fair value | 31,759,101 | 31,759,101 |
| Financial assets at fair value through other comprehensive income | 35,494,605 | 35,494,605 | |
|---|---|---|---|
| Non-derivative financial assets at amortised cost | Loans | 100,478,542 | 100,478,542 |
| Operating receivables (excluding receivables from the state) | 573,798,429 | 573,798,429 | |
| Contract assets | 11,722,300 | 11,722,300 | |
| Cash and cash equivalents | 51,203,361 | 51,203,361 | |
| Total non-derivative financial assets | 772,697,237 | 772,697,237 |
| Bank loans and other financial liabilities (excluding derivative fin.instr.) | (590,421,210) | (590,421,210) |
|---|---|---|
| Lease liabilities | (31,296,668) | (31,296,668) |
| (29,453,129) | (608,048,368) |
|---|---|
| (608,048,368) | (364,775,260) |
| (364,775,260) | Total non-derivative financial liabilities |
| (1,229,766,246) | (1,229,766,246) |
| (1,068,362,122) | (1,068,362,122) |
| Derivative financial instruments (assets) | 2,525,437 | 34,561,544 |
|---|---|---|
| Derivative financial instruments (liabilities) | (16,753,181) | (2,907,790) |
| Total derivative financial instruments | (14,227,744) | 31,653,754 |
| 31 December 2022 | 31 December 2021 | |||
|---|---|---|---|---|
| Level 1 | Level 1 | |||
| Level 2 | Level 2 | |||
| Level 3 | Level 3 | |||
| Total | Total | |||
| Financial assets at fair value through profit or loss | - | 2,646,334 | - | 2,646,334 |
| - | 34,666,891 | - | 34,666,891 | |
| Financial assets at fair value through other comprehensive income | - | 37,699,989 | 4,446,423 | 42,146,412 |
| - | 1,442,724 | 4,467,121 | 5,909,845 | |
| Total assets at fair value | - | 40,346,323 |
| Non-current loans | 4,446,423 | 44,792,746 |
|---|---|---|
| 36,109,615 | 4,467,121 | |
| Current loans | 1,679,138 | |
| 16,168,692 | 16,168,692 | |
| Non-current operating receivables | 7,015,756 | |
| 8,228,771 | 8,228,771 | |
| Current operating receivables (excluding rec. from the state) | 840,186,387 | |
| 644,683,856 | 644,683,856 | |
| Contract assets | 13,319,362 | |
| 3,338,893 | 3,338,893 | |
| Cash and cash equivalents | 100,962,531 | |
| 100,962,531 | 100,226,890 | |
| Total assets with fair value disclosure | 100,962,531 | 863,149,920 |
| Assets | 2022 | 2021 |
|---|---|---|
| Total assets | 964,112,451 | 100,226,890 |
| - | 673,412,043 | 773,638,933 |
| 100,962,531 | 40,346,323 | |
| 867,596,343 | 1,008,905,197 | |
| 100,226,890 | 36,109,615 | |
| 677,879,164 | 814,215,669 |
The fair value of the financial assets at fair value through other comprehensive income was assessed using the income capitalisation method and the assumption of a 6.5 percent (2021: 5.0 percent) required rate of return before taxes and a 1.5 percent (2021: 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 925,879 (2021: 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 770,121 (2021: EUR 846,121).
| Fair value of liabilities | 31 December 2022 | 31 December 2021 | (in EUR) |
|---|---|---|---|
| Level 1 | - | - | |
| Level 2 | (8,837,601) | (2,791,449) | |
| Level 3 | - | - | |
| Total | (8,837,601) | (2,791,449) | |
| Commodity derivative instruments | - | - | |
| Level 1 | - | - | |
| Level 2 | (29,872,456) | (116,341) | |
| Level 3 | - | - | |
| Total liabilities at fair value | - | (38,710,057) |
| Non-current financial liabilities | (401,613,002) | (433,812,995) |
|---|---|---|
| Non-current lease liabilities | (101,100,126) | (92,991,633) |
| Current financial liabilities (excluding liabilities at fair value) | (87,818,832) | (63,050,657) |
| Current lease liabilities | (17,498,969) | (13,768,130) |
| Non-current operating liabilities (excluding other liabilities) | (2,024,000) | (5,024,000) |
| Current operating liabilities (excluding liabilities to the state, employees and liabilities at fair value) | (838,214,758) |
| (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 | - | 2,525,437 | - | 2,525,437 | - | 34,561,544 | - | 34,561,544 |
| Financial assets at fair value through other comprehensive income | - | 33,376,691 | 2,117,914 | 35,494,605 | - | 1,100,446 | 2,117,914 | 3,218,360 |
| Total assets at fair value | - | 35,902,128 | 2,117,914 | 38,020,042 | - | 35,661,990 | 2,117,914 | 37,779,904 |
| Total liabilities with fair value disclosure | - | - | (1,448,269,687) | (1,448,269,687) |
|---|---|---|---|---|
| Total liabilities | - | (38,710,057) | (1,448,269,687) | (1,486,979,744) |
| - | (2,907,790) | (1,168,943,362) | - | - |
| Non-current loans | - | - | 59,134,780 | - |
| Current loans | 59,134,780 | - | - | 83,299,185 | 83,299,185 |
|---|---|---|---|---|---|
| Non-current operating receivables | 41,343,762 | - | - | 16,181,049 | 16,181,049 |
| Current operating receivables (excluding rec. from the state) | 7,007,540 | - | - | 8,219,107 | 8,219,107 |
| Contract assets | 566,790,889 | - | - | 385,584,957 | 385,584,957 |
| Cash and cash equivalents | 11,722,300 | - | - | 7,604,649 | 7,604,649 |
| Total assets with fair value disclosure | 51,203,361 | - | - | 51,203,361 | 57,567,397 |
| Total assets | 51,203,361 | 35,902,128 | 688,117,185 | 775,222,674 |
The fair value of financial assets at fair value through other comprehensive income was assessed using the income capitalisation method and the assumption of an 8.0 percent (2021: 5.0 percent) required rate of return before taxes and a 1.5 percent (2021: 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 433,086 (2021: EUR 751,086). A decrease in the above assumptions by 0.5 percentage point would have caused the fair value to decrease by EUR 265,914 (2021: EUR 539,914).
| (in EUR) | 31 December 2022 Level 1 |
31 December 2022 Level 2 |
31 December 2022 Level 3 |
31 December 2021 Level 1 |
31 December 2021 Level 2 |
31 December 2021 Level 3 |
|---|---|---|---|---|---|---|
| Financial liabilities | - | (745,579) | - | - | (2,791,449) | - |
| Commodity derivative instruments | - | (16,007,602) | - | - | (116,341) | - |
| Total liabilities at fair value | - | (16,753,181) | - | - | (2,907,790) | - |
| Non-current financial liabilities | - | - | (365,355,088) | - | - | - |
| Non-current lease liabilities | (404,555,761) | (404,555,761) |
|---|---|---|
| Current financial liabilities (excluding liabilities at fair value) | (225,066,122) | (269,577,972) |
| Current lease liabilities | (3,965,318) | (2,717,596) |
| Non-current operating liabilities (excluding other liabilities) | (2,024,000) | (5,024,000) |
| Current operating liabilities (excluding liabilities to the state, employees and liabilities at fair value) | (606,024,368) | (359,751,260) |
| Total liabilities with fair value disclosure | (1,229,766,246) | (1,229,766,246) |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| As at 1 January | 4,467,121 | 4,528,987 | 2,117,914 | 2,117,914 |
| Disposals | (20,698) | - | - | - |
| Total profit or losses recognised in the statement of comprehensive income | - | (61,866) | - | - |
| As at 31 December | 4,446,423 | 4,467,121 | 2,117,914 | 2,117,914 |
Petrol d.d., Ljubljana is a joint-stock company listed on the Ljubljana Stock Exchange. The ownership structure as at 31 December 2022 is presented in the chapter Share and Ownership Structure and in the chapter Companies in the Petrol Group of the business report.
All of the Group/Company-related party transactions were carried out based on the market conditions applicable to transactions with unrelated parties.
| 2022 | 2021 | 2022 | 2021 | ||
|---|---|---|---|---|---|
| Sales revenue: | Subsidiaries | - | - | 1,278,693,637 | 415,270,782 |
| 4,450,996 | 2,311,547 | 34,299 | 18,346 |
|---|---|---|---|
| 38,746 | 29,528 | 38,746 | 29,528 |
|---|---|---|---|
| - | - | 134,397,651 | 83,445,895 |
|---|---|---|---|
| 115,850 | 142,232 | - | - |
|---|---|---|---|
| - | - | 908,547 | 412,845 |
|---|---|---|---|
| 4,645 | 2,509 | - | - |
|---|---|---|---|
| - | - | 1,103,313 | 685,341 |
|---|---|---|---|
| 3,977 | 1,380 | - | - |
|---|---|---|---|
| - | - | - | - |
|---|---|---|---|
| - | - | - | 11,193,296 |
|---|---|---|---|
| - | - | 4,687,243 | 2,568,846 |
|---|---|---|---|
| - | - | 1,658,727 | 934,626 |
|---|---|---|---|
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| Investments in Group companies: | 723,160 | 1,823,324 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| 665,483 | 300,040 | |
| 115,217 | 135,495 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| 2,662,912 | 2,283,731 | |
| 814,437 | 1,328,236 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| - | - | |
| 1,296,282 | 1,052,504 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| 1,793 | 317 | |
| 1,793 | 317 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| - | 1,179,726 | |
| 132,035 | 68,409 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| - | 729 | |
| - | 729 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| - | 873,366 |
| 31 December 2022 | 31 December 2021 | |
|---|---|---|
| - | - | |
| 2,180,053 | 2,220,406 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 – Financial Report 334
Javno Public
The Petrol Group
| Subsidiaries | 554,032,932 |
|---|---|
| 553,970,331 |
1,277,748704,501233,000210,000
56,968,27755,169,62626,610,47726,610,477
| 59,087,634 | 83,233,789 | ||
|---|---|---|---|
| 83,627,973 | 56,193,756 | ||
|---|---|---|---|
1,100,698684,74315,4333,900
1,5688421,487842
| 40,046,732 | 14,741,616 | ||
|---|---|---|---|
| 247,383 | |
|---|---|
| 247,383 | |
| 5,542,493 | 5,559,143 | ||
|---|---|---|---|
| 21,000,000 | 21,000,000 | ||
|---|---|---|---|
| 164,958,704 | 207,418,493 | ||
|---|---|---|---|
| 300,000 | 300,000 | 300,000 | 300,000 |
|---|---|---|---|
| - | - | 8,515,784 | 17,420,542 |
|---|---|---|---|
| 898,293 | - | 876,704 | - |
|---|---|---|---|
| - | - | 2,527 | 9,241 |
|---|---|---|---|
| - | - | 11,321,656 | 7,523,646 |
|---|---|---|---|
| Function | Basic SB payment | Attendance fees | Travel expenses | Sum gross | Sum net |
|---|---|---|---|---|---|
| Janez Žlak | 26,250 | 4,895 | 453 | 31,598 | 22,981 |
| Borut Vrviščar | 22,125 | 4,345 | - | 26,470 | 19,252 |
| Aleksander Zupančič | 18,750 | 6,611 | - | 25,361 | 18,445 |
| Alenka Urnaut | 20,625 | 6,336 | - | - | - |
| Mario Selecky | Member of the Supervisory board | 26,961 | 19,609 | 18,750 | 4,015 |
|---|---|---|---|---|---|
| Mladen Kaliterna | Member of the Supervisory board | 22,765 | 17,643 | 18,750 | 6,611 |
| Alen Mihelčič | Member of the Supervisory board | 25,361 | 18,445 | 18,750 | 4,895 |
| Robert Ravnikar | Member of the Supervisory board | 23,645 | 17,197 | 18,750 | 6,611 |
| Marko Šavli | Member of the Supervisory board | 25,361 | 18,445 | 18,750 | 4,895 |
| Janez Pušnik | External member of the Audit Committee | 3,617 | 1,452 | 5,069 | 3,687 |
| Sabina Merhar | External member of the Audit Committee | 883 | 440 | 1,323 | 962 |
| Total: | 186,000 | 51,106 | 453 | 237,559 |
| Name | Variable remuneration - gross (in EUR) | Total | Deferred remuneration | Termination payments | Benefits | Clawback | Sum gross | Sum net | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Based on quantitative criteria | Based on qualitative criteria | |||||||||
| 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 |
| Worker Director | Zoran Gračner | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 23,896 | 232,752 | 88,143 | 107,506 | 2,966 | 8,898 | 11,864 | 3,452 | |||||
| Total: | 812,972 | 92,212 | 276,637 | 368,849 | 110,657 | 1,292,478 | 507,482 | |||||
| President of the Management Board | Nada Drobne Popović | 249,159 | 93,695 | 99,000 | 192,695 | 45,570 | 487,424 | 190,133 | ||||
| Member of the Management | Jože Bajuk |
| Matija Bitenc, Member of the Management Board | 212,017 | 79,620 | 84,000 | 163,620 | - | - | 35,836 | - | 411,473 | 167,997 |
|---|---|---|---|---|---|---|---|---|---|---|
| Jože Smolič, Member of the Management Board | 212,042 | 79,620 | 84,000 | 163,620 | - | - | 34,889 | - | 410,551 | 170,546 |
| Zoran Gračner, Worker Director | 212,000 | 79,620 | 84,000 | 163,620 | - | - | 26,706 | - | 402,326 | 170,304 |
| Total: | 1,014,171 | 358,297 | 370,873 | 729,170 | - | - | 146,307 | - | 1,889,648 | 796,777 |
** Fixed remuneration – gross comprises the basic salary and pay for annual leave.
*** Variable remuneration – gross comprises the annual bonus and the performance bonus.
The Company and the Group had no receivables from or liabilities to Supervisory Board members as at 31 December 2022.
The Company and the Group had no receivables from or liabilities to Management Board members as at 31 December 2022, except for liabilities arising from December salaries payable in January 2023.
In 2022, members of the Company’s Management Board and Supervisory Board were not remunerated for the functions performed in the management and supervisory bodies of the Petrol Group’s subsidiaries, except in the case of Geoplin d.o.o., where two members of the Management Board of Petrol d.d., Ljubljana, have a management contract.
| Variable remuneration - gross*** | (in EUR) | Fixed remuneration - gross** | Based on quantitative criteria | Based on qualitative criteria | Total | Deferred remuneration | Termination payments | Benefits | Clawback | Sum gross | Sum net |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jože Bajuk, Member of the Management Board | 12,077 | - | - | - | - | - | - | 12,077 | 8,482 | ||
| Matija Bitenc, Member of the Management Board | 12,077 | - | - | - | - | - | - | 12,077 | 8,482 | ||
| Total: | 24,154 | - | - | - | - | - | - | - | - |
Contingent liabilities for guarantees issued
The maximum contingent liabilities of Petrol d.d., Ljubljana for guarantees issued stood at EUR 264,599,582 as at 31 December 2022 (31 December 2021: EUR 217,624,992) and were as follows:
| Guarantee issued to: | Value of guarantee issued (in EUR) | Guarantee amount used (in EUR) |
|---|---|---|
| Petrol d.o.o. | 176,237,013 | 110,590,551 |
| Vjetroelektrana Ljubač d.o.o. | 23,792,130 | - |
| Geoplin d.o.o. Ljubljana | 21,000,000 | - |
| E 3, d.o.o. | 15,000,000 | 3,812,407 |
| Petrol BH Oil Company d.o.o. Sarajevo | 5,437,589 | 166,588 |
| Petrol LPG d.o.o. | 4,700,000 | - |
| Petrol d.o.o. Beograd | 3,999,800 | 1,023 |
| Petrol Trade Handelsgesellschaft m.b.H. | 3,000,000 | 1,800,000 |
Fixed remuneration – gross comprises the basic salary and pay for annual leave.
| Petrol Crna Gora MNE d.o.o. | 3,000,000 | 420,000 | 206,682 | 189,941 |
|---|---|---|---|---|
| Petrol LPG HIB d.o.o. | 460,163 | - | - | - |
| Aquasystems d.o.o. | 373,318 | 373,318 | 373,318 | 373,318 |
| Total | 257,000,013 | 210,839,466 | 116,950,569 | 86,682,290 |
| Bills of exchange issued as security | 103,464,125 | 99,585,169 | 103,464,125 | 99,585,169 |
|---|---|---|---|---|
| Other guarantees | 7,599,569 | 6,785,526 | 7,599,569 | 6,785,526 |
| Total contingent liabilities for guarantees issued | 368,063,707 | 317,210,161 | 228,014,263 | 193,052,985 |
The value of the guarantee issued represents the maximum value of the guarantee issued, whereas the guarantee amount used represents a value corresponding to a company’s liability, as reported on 31 December, for which the guarantee has been issued.
The total value of lawsuits against the Company as defendant and debtor totals EUR 3,150,872. Interest on overdue amounts arising from the claims stood at EUR 333,858 as at 31 December 2022. 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 the explanation in Note 6.34.
The total value of lawsuits against the Group as defendant and debtor totals EUR 4,233,150. Interest on overdue amounts arising from the claims stood at EUR 333,858 as at 31 December 2022. The Group’s Management Board 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 the explanation in Note 6.34.
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on the determination of compensation to natural gas suppliers. For supplies regulated by the decrees, suppliers are entitled to a monthly compensation for the difference between the average monthly purchase cost and the regulated retail price, taking into account the supplier's cost of EUR 5/MWh.
The energy part comprises an overview of the financial statements that the Company is obliged to disclose in accordance with the Electricity Supply Act (Official Gazette of the RS No. 172/2021), the Gas Supply Act (Official Gazette of the RS Nos. 204/2021 and 121/2022) and the Heat Supply from Distribution Systems Act (Official Gazette of the RS No. 44/2022), which stipulate 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 Electricity Supply Act, the Gas Supply Act and the Heat Supply from Distribution Systems 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.
The Company carries revenues and expenses in orders, cost centres and profit centres. Assets and liabilities are carried under profit centres. Intangible non-current assets, property, plant and equipment and investment property that have already been activated are carried under tasks or cost centres.
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: the production of electricity, the distribution of electricity – closed distribution system, the distribution of natural gas (as an open and closed distribution system), heat generation and heat distribution. In addition to these activities, we 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. 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 field of Energy Product and Electricity Management and are the basis for the division indirect costs and expenses carried under the support of Energy Product and Electricity Management – 1st coverage for Energy Product and Electricity Management.
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.
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 into the following steps:
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 indirect costs and expenses carried under the support functions of Energy Product and Electricity Management – 2nd coverage for Energy Product and Electricity Management.
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.
The sum of all the items of “Non-current (long-term) assets” and “Current assets” represents “Total assets”.
The sum of the “Equity”, “Non-current liabilities” and “Current liabilities” represents the “Total liabilities”.
If we determine the value of “Assets” as higher than “Liabilities”, the calculated difference is carried under other operating liabilities by individual activity. The criteria apply from the 2020 financial year onwards.
| (in EUR) | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales revenue | 12,238,569 | 72,129,853 | 597,844 | 4,165,109 | 2,234,665 | 5,691,112 | 665,983,794 | 3,141,003 | 2,792,970 | 6,556,350,601 | 7,325,325,520 |
| Cost of goods sold | - | (72,284,136) | - | 19,555 | (1,947) | - | (642,894,401) | - | (1,693) | (6,271,105,008) | (6,986,267,630) |
| Costs of materials | (2,374,035) |
| 36,969 | (386,527) | (2,532,489) | (515,980) | (2,244,733) | (3,144) | (1,407,040) | (463,152) | (18,700,250) | (28,590,381) |
|---|---|---|---|---|---|---|---|---|---|
| (1,454,709) | (109,864) | (79,537) | (1,097,852) | (1,114,740) | (295,863) | (521,211) | (811,542) | (692,144) | (75,951,835) | (82,129,297) |
|---|---|---|---|---|---|---|---|---|---|---|
| (2,832,739) | (3,804) | (29,893) | (565,598) | (622,107) | (389,578) | (33,634) | (707,105) | (501,942) | (40,830,725) | (46,517,125) |
|---|---|---|---|---|---|---|---|---|---|---|
| (1,646,801) | (112) | (5,065) | (189,249) | (58,713) | (155,565) | (483) | (136,052) | (91,995) | (5,798,760) | (8,082,795) |
|---|---|---|---|---|---|---|---|---|---|---|
| 525,064,103 | 525,064,103 |
|---|---|
| (551,271,270) | (551,271,270) |
|---|---|
| 18,119 | 38,782 | ||
|---|---|---|---|
| 1,402 | 256 | 6,317,372 | 6,443,925 |
| Other expenses | |||
| (30,455) | |||
| Operating profit or loss | 3,473,668 | (295,244) | 78,214 |
| (735,300) | (317,968) | 2,285,759 | 21,298,537 |
| (121,260) | 239,560 | (8,032,599) | 17,873,367 |
| Finance income from dividends paid by subsidiaries, associates and jointly controlled entities | |||
| 1,652,814 | |||
| Finance income | 103,318,887 | ||
| Finance expenses | (374,664) | (29) | (2,845) |
| (46,821) | (83,700) |
| Net finance expense | (374,664) | (29) | (2,845) | (46,821) | (83,700) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit before tax | 3,099,004 | (295,273) | 75,369 | (782,121) | (401,668) | 2,259,112 | 21,298,268 | (234,944) | 203,985 | (7,397,666) | 17,824,066 |
| Tax expense | (588,810) | 56,101 | (14,320) | 148,603 | 76,317 | (429,231) | (4,046,671) | 44,639 | (38,757) | 4,005,298 | (786,831) |
| Deferred tax | - | ||||||||||
| Corporate income tax | (588,810) | 56,101 | (14,320) | 148,603 | 76,317 | (429,231) | (4,046,671) | 44,639 | (38,757) | 6,351,941 | 1,559,812 |
2,510,194
(239,172)
61,049
(633,518)
(325,352)
1,829,880
17,251,598
(190,305)
165,228
(1,045,724)
19,383,878
| 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 | 38,090,099 | 955 | - | 1,922,118 | 5,590,561 | 405,854 | 8,504 | 16,015 | 3,532,983 | 131,643,074 | 181,210,163 |
| Property, plant and equipment | 464,545 | 1,975 | 286,426 |
| Loans | 2,117,914 |
|---|---|
| Operating receivables | 59,134,780 |
| Deferred tax assets | 7,007,540 |
| 3,987,393 | |
| 38,554,644 | |
| 2,930 | |
| 286,426 | |
| 5,446,774 | |
| 8,652,016 | |
| 3,188,373 | |
| 22,034 | |
| 11,989,642 | |
| 3,556,725 | |
| 1,140,436,121 | |
| 1,212,135,685 | |
| Inventories | 151,178,363 |
| Contract assets |
| Loans | 11,722,300 | 11,722,300 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating receivables | 41,343,762 | 41,343,762 | |||||||||
| Other Assets | 29,251,029 | 158,702,804 | 1,042,827 | 4,699,640 | 3,895,983 | 218,662 | 276,445,953 | 12,939,494 | 351,198 | 79,243,299 | 566,790,889 |
| Corporate income tax assets | 11,880,734 | 11,880,734 | |||||||||
| Financial assets at fair value through profit or loss | 2,525,437 | 2,525,437 | |||||||||
| Financial assets at fair value through other comprehensive income | 33,376,691 | 33,376,691 | |||||||||
| Prepayments and other assets | 6,460,495 |
| Cash and cash equivalents | 45,007,702 |
|---|---|
| 51,468,197 | |
| 51,203,361 | |
| 51,203,361 | |
| 29,251,029 | |
| 165,163,299 | |
| 1,042,827 | |
| 4,699,640 | |
| 3,895,983 | |
| 218,662 | |
| 276,445,953 | |
| 12,939,494 | |
| 351,198 | |
| 427,481,649 | |
| 921,489,734 | |
| Total assets | 1,567,917,770 |
| 2,133,625,419 |
| Natural gas distribution system operator | |
|---|---|
| Natural gas supply | |
| Closed natural gas distribution system | |
| Heat generation | |
| Heat distribution | |
| Electricity production | |
| Electricity supply | |
| Closed electricity distribution |
| Called-up capital | 16,544,318 | 2,569,303 | (2,474) | 3,597,624 | 1,000,013 | (2,658,811) | 5,794,600 | 4,508,757 | - | 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 | - | - | - | - | - | - | - | - | - | 61,749,884 | 61,749,884 |
| Reserves for own shares | - | - | - | - | - | - | - | - | - | 4,708,359 | 4,708,359 |
| Own shares | - | - | - | - | - | - | - | - | - | - | - |
| Other profit reserves | (2,604,670) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Fair value reserve | 42,539,491 | |||||||||
| Hedging reserve | 26,639,848 | |||||||||
| Retained earnings | 9,545,011 | |||||||||
| Net profit or loss for the year | 2,510,194 | (239,172) | 61,049 | (633,518) | (325,352) | 1,829,880 | 17,251,598 | (190,305) | 165,228 | (20,429,602) |
| Total equity | 35,598,830 |
| 4,899,434 | 56,101 | 6,561,730 | 1,674,674 | (3,487,742) | 28,840,798 | 8,827,209 | 165,228 | 514,854,709 | 597,990,971 |
|---|---|---|---|---|---|---|---|---|---|
| Provisions for employee post-employment and other long-term benefits | - | - | - | - | - | - | - | - | 5,898,618 | 5,898,618 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Other provisions | - | - | - | - | - | - | - | - | 13,381,922 | 13,381,922 | |
| Long-term deferred revenue | - | - | 90,809 | 219,178 | 136,000 | - | 702 | - | 29,134,407 | 29,581,096 | |
| Financial liabilities | 15,757,259 | 1,235 | 119,169 | 1,961,094 | 3,505,769 | 1,116,122 | 11,243 | 4,761,616 | 1,490,048 | 336,631,533 | 365,355,088 |
| Lease liabilities | 28,180 | 304 | - | - | - |
| Operating liabilities | 2,707 | ||
|---|---|---|---|
| Total Assets | 27,300,159 | 27,331,350 | |
| Current liabilities | 572,382 | ||
| Financial liabilities | 3,939,315 | 309 | 29,792 |
| Lease liabilities | 490,273 | 876,442 | 279,030 |
| 2,811 | 1,190,404 | 372,512 | |
| Total Current Liabilities | 218,630,813 | 225,811,701 | |
| Operating liabilities | 11,263,079 | 135,691,714 | 1,093,001 |
| 1,008,339 | 6,165,804 | 5,181,910 | |
| Total Liabilities | 243,787,204 | 10,058,209 | 1,854,189 |
| 376,109,832 | 792,213,281 |
| Contract liabilities | 76,472 | 169,709 | - | - | 362 | - | 1,687,282 | - | 133 |
|---|---|---|---|---|---|---|---|---|---|
| Other liabilities | 570,156 | 24,403,524 | 31,190 | 25,507 | 101,207 | 181,715 | 2,135,942 | 90,996 | 25,813 |
| - | 7,559,023 | 35,125,073 | 15,849,022 | 160,265,256 | 1,153,983 | 1,524,119 | 7,143,815 | 5,642,655 | 247,613,239 |
| - | 11,339,609 | 2,252,647 | 638,705,647 | 1,091,489,992 | Total liabilities | 32,206,843 | 160,266,795 | 1,273,152 | 3,584,684 |
| - | 10,873,325 | 6,894,777 | 247,627,189 | 16,101,927 | 3,742,695 | 1,053,063,061 | 1,535,634,448 | Total equity and liabilities | 67,805,673 |
276,467,98724,929,1363,907,9231,567,917,7702,133,625,419
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