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Petrol Group
Management Reports • Nov 18, 2019
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Management Reports
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Report on the operations of the Petrol Group and Petrol d.d., Ljubljana in the first nine months of 2019
November 2019
| INTRODUCTORY NOTES 5 | |
|---|---|
| HIGHLIGHTS 7 | |
| The Petrol Group's significant performance indicators 8 | |
| BUSINESS REPORT 10 | |
| Operations of the Petrol Group 11 | |
| A. SALES 13 |
|
| Sales of petroleum products 13 | |
| Sales of merchandise and related services 16 | |
| Sales of services 16 Sales of liquefied petroleum gas16 |
|
| Natural gas sales and trading 17 | |
| Electricity sales and trading 17 | |
| B. ENERGY AND ENVIRONMENTAL SOLUTIONS 18 |
|
| C. PRODUCTION OF RENEWABLE ELECTRICITY 19 |
|
| D. MOBILITY19 |
|
| Sustainable development 20 | |
| Employees 20 | |
| Investments 21 | |
| The quality management system 22 Social responsibility 23 |
|
| Risk management 23 | |
| Petrol's shares 26 | |
| Contingent increase in share capital 28 | |
| Dividends 28 | |
| Own shares 29 | |
| Regular participation at investors' conferences and external communication 29 | |
| Credit rating 29 | |
| General Meeting resolutions 30 | |
| Business plan for 2019 32 | |
| Events after the end of the accounting period 33 | |
| FINANCIAL REPORT 34 | |
| Financial performance of the Petrol Group and the company Petrol d.d., Ljubljana 35 | |
| Notes to the financial statements 41 | |
| Notes to individual items in the financial statements 44 | |
| APPENDIX 1: ORGANISATIONAL STRUCTURE OF THE PETROL GROUP 64 |
STATEMENT OF THE MANAGEMENT BOARD
Members of the Management Board of Petrol d.d., Ljubljana, which comprises Nada Drobne Popović, President of the Management Board, Danijela Ribarič Selaković, Member of the Management Board, and Ika Krevzel Panić, Member of the Management Board/Worker Director, declare that to their best knowledge:
- − the financial report of the Petrol Group and Petrol d.d., Ljubljana for the first nine months of 2019 has been drawn up in accordance with International Financial Reporting Standards as adopted by the EU and gives a true and fair view of the assets and liabilities, financial position, financial performance and comprehensive income of the company Petrol d.d., Ljubljana and other consolidated companies as a whole;
- − the business report of the Petrol Group and Petrol d.d., Ljubljana for the first nine months of 2019 gives a fair view of the development and results of the Company's operations and its financial position, including the description of material risks that the company Petrol d.d., Ljubljana and other consolidated companies are exposed to as a whole;
- − the report of the Petrol Group and the company Petrol d.d., Ljubljana for the first nine months of 2019 contains a fair presentation of significant transactions with related entities, which has been prepared in accordance with International Financial Reporting Standards.
Nada Drobne Popović President of the Management Board
Danijela Ribarič Selaković Member of the Management Board
Ika Krevzel Panić Member of the Management Board and Worker Director
INTRODUCTORY NOTES
The report on the operations of the Petrol Group and Petrol, d.d., Ljubljana, Dunajska 50, in the first nine months of 2019 has been published in accordance with the Market in Financial Instruments Act, the Ljubljana Stock Exchange Rules, Guidelines on Disclosure for Listed Companies and other relevant legislation.
The figures and explanation of the operations are based on unaudited consolidated financial statements of the Petrol Group and unaudited financial statements of Petrol d.d., Ljubljana for the first nine months of 2019 prepared in compliance with the Companies Act and IAS 34 – Interim Financial Reporting.
Subsidiaries are included in the consolidated financial statements prepared in accordance with IFRS on the basis of the full consolidation method, while jointly controlled entities and associates are included on the basis of the equity method.
In accordance with IFRS, investments in subsidiaries, jointly controlled entities and associates are carried at historical cost in the separate financial statements.
The report on the operations in the first nine months of 2019 has been published on the website of Petrol d.d., Ljubljana (http://www.petrol.eu), and is available on demand at the registered office of Petrol d.d., Ljubljana, Dunajska cesta 50, 1000 Ljubljana, every working day between 8 am and 3 pm.
The Company's Supervisory Board discussed the report on the operations of the Petrol Group and Petrol d.d., Ljubljana in the first nine months of 2019 at its meeting held on 14 November 2019.
| Company name | Petrol, slovenska energetska družba, d.d., Ljubljana |
|---|---|
| Abbreviated company name | Petrol d.d., Ljubljana |
| Registered office | Dunajska cesta 50, 1000 Ljubljana |
| Telephone | (01) 47 14 234 |
| Telefax | (01) 47 14 809 |
| Website | http://www.petrol.si, http://www.petrol.eu |
| Activity code | 47,301 |
| Company registration number | 5025796000 |
| Tax number | SI 80267432 |
| Share capital | 52.24 mio EUR |
| Number of shares | 2,086,301 |
| President of the Management board | Nada Drobne Popović |
| Members of the Management board | Danijela Ribarič Selaković, Ika Krevzel Panić (worker director) |
| Deputy President of the Supervisory board | Sašo Berger |
Table 1: Profile of the parent company Petrol d.d., Ljubljana
List of acronyms and explanation of financial ratio calculations
| Ratio/acronym | Explanation | ||
|---|---|---|---|
| SEE | South Eastern Europe | ||
| EBITDA | Operating profit or loss + regular depreciation and amortisation |
||
| Earnings per share | Net profit or loss for the period / weighted average number of issued ordinary shares, excluding own shares |
HIGHLIGHTS
The Petrol Group's significant performance indicators
| The Petrol Group | Unit | I-IX 2019 | I-IX 2018 Index 2019 / 2018 |
|
|---|---|---|---|---|
| Sales revenues | EUR million | 4,194.8 | 3,815.2 | 110 |
| Adjusted gross profit1 | EUR million | 362.6 | 318.8 | 114 |
| Operating profit | EUR million | 121.1 | 85.5 | 142 |
| Net profit | EUR million | 80.1 | 68.8 | 116 |
| EBITDA | EUR million | 170.9 | 124.1 | 138 |
| Non-current (long-term) assets as at period end | EUR million | 975.8 | 830.1 | 118 |
| Earnings per share | EUR | 39.0 | 33.5 | 116 |
| Net debt / EBITDA2 | 1.7 | 1.6 | 106 |
1Adjusted gross profit = Sales revenues - Cost of goods sold (this item is not defined in international Financial Reporting Standards)
2 EBITDA calculated on an annual level. In 2019, the introduction of IFRS 16, which also requires that lease assets and liabilities be recognised and measured
| The Petrol Group | UNIT | I-IX 2019 | I-IX 2018 Index 2019 / 2018 |
|
|---|---|---|---|---|
| Volume of petroleum products sold | million tons | 2.9 | 2.5 | 115 |
| Volume of liquefied petroleum gas sold | thousand tons | 137.9 | 119.4 | 116 |
| Volume of natural gas sold | TWh | 15.4 | 13.2 | 116 |
| Revenue from the sale of merchandise | EUR million | 354.6 | 349.5 | 101 |
| Number of service stations as at period end1 | 507 | 500 | 101 |
1Number of service stations for the year 2018 as at 31 December 2018.
Figure 1: EBITDA of the Petrol Group
Figure 2,
Figure 3: Increase in the number of service stations of the Petrol Group
Figure 5: Number of employees in the Petrol Group
Figure 2: Net profit or loss of the Petrol group
Figure 4: Volume of petroleum products sold by the Petrol Group
Figure 6: Breakdown of the Petrol Group's investments in the first nine months of 2019
BUSINESS REPORT
Operations of the Petrol Group
The Petrol Group operates in a competitive environment influenced by oil price fluctuations, US dollar exchange rate, global and domestic economic developments, and national laws governing the pricing of energy products. In Slovenia and Croatia, the economic situation is improving, but other SE Europe countries which also make up Petrol's sales market still face demanding economic conditions, low purchasing power and high unemployment. Although in Slovenia, where the Petrol Group sells the greater part of its petroleum products, the prices of petrol and diesel fuel at motorway and expressway service stations have been liberalised and determined by the market, the prices of petrol (less than 98 octane) and diesel fuel at other service stations remain regulated.
The Petrol Group's sales revenue for the first nine months of 2019 stood at EUR 4.2 billion, a year-on-year increase of 10 percent, which was mainly the result of higher sales. Adjusted gross profit stood at EUR 362.6 million, which was 14 percent more than in the first nine months of 2018.
EBITDA totalled EUR 170.9 million or 38 percent more than in the first nine months of 2018. Had the net effect of financial transactions involving electricity trading been included in EBITDA, the latter would have been lower, totalling EUR 152.9 million.
Figure 7: EBITDA broken down by activity
Figure 8: EBITDA broken down by market
Net profit for the first nine months of 2019 totalled EUR 80.1 million and was up 16 percent year-on-year.
In the period concerned, the Petrol Group sold 2.9 million tons of petroleum products, a yearon-year increase of 15 percent. In Slovenia, the nine-month sales of petroleum products stood at 1.3 million tons, accounting for 44 percent of the Petrol Group's total sales. In the same period, the Petrol Group sold 613.0 thousand tons of petroleum products in SEE markets, representing 21 percent of the Petrol Group's total sales, and 1.0 million tons in EU markets, which represented 35 percent of the Petrol Group's total sales.
At the end of September 2019, the Petrol Group's retail network consisted of 507 service stations, of which 318 were in Slovenia, 109 in Croatia, 42 in Bosnia and Herzegovina, 14 in Serbia, 13 in Montenegro and 11 in Kosovo.
In the first nine months of 2019, EUR 354.6 million was generated in revenue from the sale of merchandise and related services, an increase of 1 percent compared to the same period of the previous year.
The Petrol Group sold 137.9 thousand tons of liquefied petroleum gas in the period concerned, a year-on-year increase of 16 percent.
What follows is a detailed presentation of the Petrol Group's operations in the first nine months of 2019 broken down by type of activity:
- A. Sales, consisting of petroleum product sales, liquefied petroleum gas sales, natural gas sales and trading, electricity sales and trading, merchandise sales and sale of services
- B. Energy and environmental solutions, consisting of energy solutions for the public and commercial sector, energy solutions for the industry and apartment buildings, and natural gas distribution
- C. Production of renewable electricity
- D. Mobility
A. SALES
In the first nine months of 2019, the Petrol Group generated EUR 4.1 billion in sales revenue.
Sales of petroleum products
In the period concerned, the Petrol Group sold 2.9 million tons of petroleum products, a yearon-year increase of 15 percent.
In Slovenia, 1.3 million tons of petroleum products were sold in the first nine months of 2019, a year-on-year increase of 1 percent. Motor fuel sales (petrol and diesel fuel) were on a par with the previous year's figures for this period.
In SEE markets, 613.0 thousand tons of petroleum products were sold in the first nine months of 2019, a year-on-year increase of 6 percent. The most important commodities sold in SEE markets are diesel fuel and petrol.
In addition to the above, the jointly controlled entity Petrol - Oti - Slovenija L.L.C. sold 4.3 thousand tons of petroleum products.
In EU markets, 1.0 million tons of petroleum products were sold in the first nine months of 2019, a year-on-year increase of 47 percent. The most important item sold in EU markets is diesel fuel.
Key impacts on operations
Fuel pricing in Slovenia
The prices of petrol and diesel fuel at motorway and expressway service stations have been liberalised and are determined by the market, while the prices of petrol and diesel fuel at other service stations remain regulated.
Until 31 March 2019, the prices of regulated motor fuels were set in accordance with the Decree on Setting Prices for Certain Petroleum Products which was in force from 1 October 2018 onwards. On 28 March 2019, the Government of the Republic of Slovenia adopted a new Decree on Setting Prices for Certain Petroleum Products, which was in force until 30 September 2019. On 26 September 2019, the Government of the Republic of Slovenia adopted a new Decree on Setting Prices for Certain Petroleum Products, which shall remain in force until 31 December 2019. The pricing methods under each of the decrees remained unchanged compared to their preceding decrees.
The model-based margin is still government-regulated and stands at EUR 0.08701 per litre of NMB-95 petrol and EUR 0.08158 per litre of diesel fuel.
Since 9 April 2016, the prices of the 98-octane and higher-octane petrol and of extra light heating oil have been liberalised and determined by the market.
Slovenia's gross margins for petroleum products, which are, under the model, set at a fixed amount and do not reflect changes in retail prices, are still below European average. In the case of petrol, they amounted to 68 percent of the average gross margin in the EU countries
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(60 percent if the compulsory stocks membership fee is not taken into account) and in the case of diesel fuel to 55 percent (48 percent if the compulsory stocks membership fee is not taken into account) (own calculations based on Platt's and Oil Bulletin data).
Fuel pricing in Croatia
Since 20 February 2014, when the Oil and Petroleum Products Market Act entered into force and fully liberalised the pricing of petroleum products, the prices of petroleum products in Croatia have been set freely and determined by the market.
Fuel pricing in Bosnia and Herzegovina
In Bosnia and Herzegovina, the prices of petroleum products are not government-regulated. They are set freely and are determined by the market, and can change on a daily basis. Due to the free setting of prices, retail fuel prices vary according to the location of a service station.
Fuel pricing in Serbia
Since the legislation liberalising Serbia's oil market (unregulated imports of oil and petroleum products) entered into force on 1 January 2011, the prices of petroleum products have no longer been government-regulated and are set freely and determined by the market.
Fuel pricing in Montenegro
In Montenegro, the prices of petroleum products are set in accordance with the Regulation on the Method of Setting Maximum Retail Prices, which has been in force since 1 January 2011. The prices change fortnightly, provided that prices on the oil market (Platts European Marketscan) and the exchange rates of the euro and the US dollar change by more than 5 percent. In addition to market oil prices and changes in the exchange rates of the euro and the US dollar, the methodology used to calculate selling prices takes into account taxes, the costs of transhipment, handling, bank charges, storage, transport and distribution, as well as (excise) duties and an oil companies' gross margin. The latter amounts to EUR 0.063 per litre of petrol, EUR 0.064 per litre of eurodiesel and EUR 0.076 per litre of extra light heating oil. In addition to these gross margins, liquid fuel traders may factor in all of the above costs at EUR 0.05 per litre of petrol, EUR 0.05 per litre of eurodiesel and EUR 0.026 per litre of extra light heating oil.
Fuel pricing in Kosovo
In Kosovo, retail and wholesale prices of petroleum products are not government-regulated. Only in the case of sales of petroleum products to government institutions and state-owned companies are prices set in accordance with a prescribed methodology, which takes into account average monthly market prices, changes in the exchange rate of the euro and the US dollar, logistics costs and a maximum margin. These prices represent an unofficial basis for retail prices, which change according to market-based fuel prices.
Changes in oil and petroleum product prices in the world market
The average price of Brent Dated North Sea crude oil stood at USD 64.6 per barrel in the first nine months of 2019 and was down 10 percent year-on-year whereas the average price in
euros decreased by 5 percent year-on-year. In the period concerned, the price of Brent crude peaked on 16 May 2019, reaching USD 74.7 per barrel. Its lowest price was recorded on 3 January 2019 at USD 53.2 per barrel. The prices of petrol and middle distillates followed the same trends as crude oil prices.
Figure 9: Changes in Brent Dated High oil price in the first nine months of 2019 in USD/barrel
SOURCE: Petrol, 2019
Figure 10: Changes in Brent Dated High oil price in the first nine months of 2019 in EUR/barrel
SOURCE: Petrol, 2019
OPEC's decision to limit oil output in cooperation with Russia caused the price of oil to rise in 2019 compared to the end of 2018. Future oil price movements will continue to depend largely on OPEC's oil output agreements, the situation in the Middle East, relations between Iran and the United States, and also on economic growth expectations, US and EU oil stocks figures and demand in China.
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Changes in the US dollar to the euro exchange rate
The US dollar to the euro exchange rate ranged between 1.09 and 1.15 US dollars per euro in the first nine months of 2019. The average exchange rate of the US dollar according to the exchange rate of the European Central Bank stood at 1.12 US dollars per euro in the period concerned.
Sales of merchandise and related services
Merchandise sales consist of sales of automotive products, foodstuffs, accessories, tobacco and lottery products, coupons and cards, coffee-to-go and other merchandise. The Petrol Group generated EUR 354.6 million in revenue from the sale of merchandise and related services1 in the first nine months of 2019, an increase of 1 percent compared to the same period of the previous year.
In Slovenia, EUR 294.4 million was generated in revenue from the sale of merchandise and related services in the first nine months of 2019, a decrease of 1 percent compared to the same period of the previous year. The range at Petrol's points of sale is modified and expanded as we try to accommodate the needs of our service station customers by quickly adapting the range.
In SE Europe markets, EUR 60.2 million was generated in revenue from the sale of merchandise in the first nine months of 2019, an increase of 16 percent compared to the same period of the previous year. The best results were achieved in tobacco and food sales.
Sales of services
Services consist of revenue from storage and petroleum-product handling services, renting of business premises and hospitality facilities, transport, carwash services, revenue from Petrol Club cards, and other services. In the first nine months of 2019, the Petrol Group generated EUR 27.4 million in revenue from the services related to oil and merchandise sales.
Sales of liquefied petroleum gas
In the first nine months of 2019, the Petrol Group sold 137.9 thousand tons of liquefied petroleum gas, a year-on-year increase of 16 percent.
At the end of September 2019, the Petrol Group operated 5 LPG supply concessions in Slovenia. In addition, the company Petrol d.o.o. has LPG supply contracts in the towns of Šibenik and Rijeka. Liquefied petroleum gas is supplied to customers also through LPG storage tanks and at service stations as autogas.
1 In accordance with the new accounting standard IFRS 15, the Petrol Group changed the method of presenting revenue from the sale of goods sold by the Group on behalf of third parties. Under the new standard, only the fee that the Group is entitled to receive in return for the sale of goods on behalf of third parties is presented in sales revenue.
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Natural gas sales and trading
In the first nine months of 2019, the Petrol Group sold 15.4 TWh of natural gas or 16 percent more than in the same period of the previous year. Of this quantity, 10.9 TWh were sold to end users and 4.5 TWh as part of trading.
Electricity sales and trading
The Petrol Group has positioned itself as an important electricity market player. It set up a complete infrastructure for wholesale electricity trading in Slovenia, EU countries and SEE countries. Electricity sales to end users (businesses and households) already in place in Slovenia are now being expanded to SE Europe.
In the first nine months of 2019, the Petrol Group sold 15.8 TWh of electricity, a year-on-year increase of 16 percent.
B. ENERGY AND ENVIRONMENTAL SOLUTIONS
In the first nine months of 2019, the Petrol Group generated EUR 43.9 million in revenue from the sale of energy and environmental solutions.
Energy and environmental solutions consist of an energy range offered in the following segments:
- energy solutions for the public and commercial sector (systems of energy and environmental management of buildings in the public and commercial sector, district heating and district energy systems, water supply systems, efficient lighting systems),
- energy solutions for the industry and apartment buildings,
- natural gas distribution.
Long-term contract-based supply of energy and contractually guaranteed energy and water savings (performance contracting) are the most common project implementation models in the public sector, the commercial sector and in industry. These models offer a significant advantage to the customers in that Petrol assumes all technical and economic risks of project implementation and management, provides the necessary funds to carry out the measures, and supplies customers with the required energy of suitable quality, guaranteeing savings in the use of energy products compared to the previous situation.
The projects of long-term heat supply, energy renovation of buildings and the reduction of electricity consumption and water losses are largely carried out using the public-private partnership model.
In the first nine months of 2019, the Petrol Group sold 96.9 thousand MWh of heat, a year-onyear increase of 8 percent.
In the field of industry, we have been developing various business models tailored to the needs of the customer and the customer's technological processes. Our experts prepare solutions for steam and heat, natural gas, industrial gases and compressed air, water, cooling systems and industrial waste treatment plants. We are setting up projects in the field of efficient lighting in industrial buildings. Industrial customers are included in our virtual power plant.
In addition to industrial users, we are developing solutions for commonhold unit owners and managers in the field of energy-saving renovation, control and management of boiler rooms and the installation of heat cost allocators in apartment buildings.
At the end of September 2019, the Petrol Group operated 30 natural gas supply concessions in Slovenia. In Serbia, it supplied natural gas to the municipalities of Bačka Topola and Pećinci as well as to three Belgrade municipalities. At the end of 2018, the Petrol Group also established itself in Croatia where its company Zagorski metalac d.o.o. distributes natural gas in certain municipalities of the Zagorje-Krapina County and the Zagreb County.
In the first nine months of 2019, the Petrol Group distributed 742.4 thousand MWh of natural gas.
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C. PRODUCTION OF RENEWABLE ELECTRICITY
In the first nine months of 2019, the Petrol Group generated EUR 5.1 million in sales revenue in the area of renewable electricity production.
Rapid development of the global energy system is fuelled by growing energy needs as well as by environmental requirements linked to climate change. Recognising this, we also produce electricity from renewable sources – wind, water and sun, with wind power becoming increasingly important in the European energy market.
As a key element in the future development of the Petrol Group, renewable electricity production has a strategic place in Petrol's decision to become a modern energy company. It helps us secure own long-term sources for the purpose of selling electricity, while keeping us prepared for new trends in the area of transport. At Petrol, we see enormous potential for the development of renewable electricity production in SE Europe. By developing our own production capacity, we pursue the strategic orientation of becoming a visible regional provider of comprehensive energy and environmental solutions, and a partner in the development of the circular economy for transition to the low carbon society.
The Petrol Group has been involved in electricity production since 2003, when electricity was produced at smaller production plants (photovoltaics, micro cogeneration, biogas plants).
We produce hydroelectric power in Bosnia and Herzegovina, where electricity is produced at four small hydroelectric plants on rivers Jezernica and Kozica. In 2018 we launched electricity production at the small hydroelectric power plant Jeleč (4.9 MW of output, 15 thousand MWh of annual production).
In Croatia, we started producing wind electricity at Glunča power plant in the Šibenik area in 2017 (20.7 MW of rated output, 50 thousand MWh of annual production).
D. MOBILITY
Mobility is comprised of two segments:
- E-mobility setting up, managing and maintaining infrastructure for the charging of electric vehicles, and provision of the charging service,
- Mobility services "vehicle as a service" and new types of mobility such as car sharing, transport on demand and more dynamic forms of alternative transport, aggregation and optimisation of passenger transport.
As part of e-mobility, we provide services related to the setting up, management and maintenance of infrastructure for the charging of electric vehicles as well as services linked to the very performance and billing of the charging service, and also customer care. These services and solutions are offered also to companies and municipalities. At the end of September 2019, we managed and provided the charging service at more than 130 charging points in Slovenia and Croatia. In the first nine months, over 347 MWh of electricity were delivered at the charging points. Considering publicly available records on the number of registered electric vehicles on Slovene roads, more than 80 percent of EV users in Slovenia used Petrol payment cards to charge their vehicles. In 2018 we began to actively expand the
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network of charging points for electric vehicles also in Croatia, a process that continued intensively also in 2019.
In the area of mobility services, we develop services related to new concepts and types of mobility such as "vehicle as a service", car sharing and dynamic forms of alternative transport to complement existing regular scheduled bus transport and other services. The "vehicle as a service" business model, which we already offer commercially, consists of providing to the customer all services related to the use of a vehicle and fleet management in return for a fixed monthly fee. We have conducted several successful marketing campaigns thanks to which we were able to increase the fleet of electric vehicles that we lease out.
To develop services, we join forces with domestic and foreign partners. In 2019 we take part in three international projects for which we also obtained EU grants.
Sustainable development
Sustainability principles have a prominent place in the Petrol Group's development strategy. Our aim is to do business in such a way that it positively affects the economic and social fabric, while striving to protect the environment. In June 2019 we published a fourth Sustainability Report of the Petrol Group2 in which we present in more detail sustainable strategic orientations and challenges, goals, programmes, projects and results. In 2019 we also redesigned our sustainable development website (https://www.petrol.eu/sustainabledevelopment).
Employees
On 30 September 2019, the Petrol Group had 5,179 employees, of which 34 percent worked for subsidiary companies abroad. As the Group expanded its business, the number of employees increased by 322 compared to the end of 2018.
Figure 11: Changes in the number of employees of the Petrol Group and at third-party managed service stations in the period 2016 – 2019
2 https://www.petrol.eu/binaries/content/assets/skupina-petrol-eng/2019/publications/tp-2018_eng.pdf
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Employee structure
At the end of September 2019, the average age of the Petrol Group employees was 39 years. 59 percent of employees were male and 41 percent female.
The educational structure of the Petrol Group has been improving over the years. This is a result of employee training on the one hand and HR policy on the other. Newly hired employees with higher education thus improve the educational structure, while at the same time employees with lower education leave the company. The Petrol Group has a keen interest in training its employees, as knowledge represents one of Petrol's key competitive advantages.
Training
In the first nine months of 2019, the Petrol Group provided close to 90 thousand teaching hours of training, which represented, on average, 18 teaching hours of training per employee in the period concerned. Organised as part of the Petrol Group is Petrol Academy. Its main goal is to provide training to all employees in a systematic and comprehensive manner. The Group carried out technical and legally required training in the period under review.
Investments
In the first nine months of 2019, net investments3 in property, plant and equipment, intangible assets and long-term investments stood at EUR 84.3 million. Out of the above amount, 17 percent was allocated to sales in Slovenia, 44 percent to sales in SE Europe, 30 percent to energy and environmental solutions, 4 percent to renewable electricity production, and 5 percent to the upgrading of information and other infrastructure.
Figure 12: Breakdown of the Petrol Group's investments in the first nine months of 2019
3 Net investments in fixed assets = Investments in fixed assets – Disposal of non-current assets.
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The quality management system
The Petrol Group's operations are based on the implementation of strict quality standards. Since 1997, we have been constantly upgrading and expanding the Petrol Group's quality management system. In addition to the certified quality management system, environmental management system and energy management system, the comprehensive quality management system incorporates the requirements of the HACCP food safety management system, of the OHSAS occupational health and safety system and of the ISO 27001 information security system.
| Company | Quality | Environmental | Energy | Laboratory | Other |
|---|---|---|---|---|---|
| management | management | management | accreditations | certificates | |
| system | system | system | |||
| Petrol d.d., Ljubljana | ISO 9001: 2015 | ISO 14001: 2015 | ISO 50001: 2011 | SIST EN ISO/IEC | ISCC,AEO*** |
| 17025: 2005 SIST | RC, FSC* | ||||
| EN ISO/IEC | |||||
| 17020: 2012 | |||||
| Petrol d.o.o. | ISO 9001: 2015 | ISO 14001: 2015 | / | / | ADR/RID/ADN |
| -I-PTR**** | |||||
| Petrol Geo d.o.o. | ISO 9001: 2015 | / | / | / | / |
| Beogas d.o.o. | ISO 9001: 2015 | / | / | / | / |
| Petrol d.o.o., Beograd | ISO 9001: 2015 | ISO 14001: 2015 | / | / | OHSAS 18001 |
| Table 2: Overview of certificates and laboratory accreditations | |||
|---|---|---|---|
| ----------------------------------------------------------------- | -- | -- | -- |
*Based on the Report on the implementation of the Responsible Care Global Charter commitments, Petrol d.d., Ljubljana became a holder of a Responsible Care Certificate for its activities relating to storage, logistics and retail network of service stations in Slovenia and granted the right to use the initiative's logo.
**Petrol d.d., Ljubljana is a holder of an FSC certificate for the production of wood chips used for heat generation. The FSC certificate, which is issued by an international NGO called the Forest Stewardship Council, promotes environmentally appropriate, socially beneficial and economically viable management of forests.
***The 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.
****Certificate to carry out an in-house inspection service for the performance of pressure receptacle inspections in accordance with Directive 2010/35/EU. Petrol d.o.o. is an IS body under the authority of the notified body Bureau Veritas Italia for the purpose of carrying out periodic inspections of pressure receptacles defined in accordance with chapter 6.2 of ADR/RID/ADN.
In January 2019, a first recertification audit of the ISO 50001 energy management system was conducted at Petrol d.d., Ljubljana, which revealed that the system is suitably maintained and compliant with the standard's requirements. The ISO 50001 certificate was then renewed for three years. In April 2019, an integrated surveillance audit of the quality management system and of the environmental management system (ISO 9001 and 14001) was performed at Petrol d.d., Ljubljana.
At the company Petrol d.o.o., Beograd, an ISO 9001, ISO 14001 and ISO 18001 certification audit was conducted in respect of the process Sale of Industrial Equipment, Engineering and Project Management. At the company Beogas d.o.o., a recertification audit of the (ISO 9001) quality management system took place. In May 2019, a surveillance audit of the quality and environmental management systems took place at the company Petrol d.o.o., Zagreb. In September, a surveillance audit of the ISO 9001:2015 quality management system took place at the company Petrol Geoterm d.o.o. The audits were passed successfully and did not identify any non-compliance issues.
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Social responsibility
Caring for social and environmental issues has been part of the Petrol's operations for a number of years. The demands and challenges of our time are addressed based on a longterm growth strategy and a strong awareness that supporting the environment in which we operate significantly affects our operations and development. For many years we have been helping wider social and local communities achieve a dynamic lifestyle and better quality of life. Our responsible social attitude is demonstrated through the support we provide to a number of sports, arts, humanitarian and environmental projects. In the Petrol Group, social responsibility is perceived as a lasting commitment to work together with the environment in which we operate.
Risk management
The Petrol Group manages risks using a comprehensive risk management system, making sure that the Company's key risks are identified, assessed, managed, utilised and monitored. In doing that, we aim to develop a risk-awareness culture to ensure better control over the risks and better information for decision-making at all levels of the Group's operation. 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.
Petrol's risk model comprises 20 risk categories that are divided into two groups:
- Environment risks and
- Performance risks.
According to the results of the 2017 risk assessment, the most relevant and probable risks comprise the following financial risks: price and volumetric risk, foreign exchange risk, credit risk and liquidity risk.
In addition to the main financial risks, the most relevant and probable risks include legislation and regulation risks, information system risks, business decision-making risks, interest rate risks and information risks.
Price and volumetric risk and foreign exchange risk
The Petrol Group's business model includes energy products, such as petroleum products, natural gas, electricity and liquefied petroleum gas, exposing the Petrol Group to price and volumetric risks and to foreign exchange risks arising from the purchase and sale of these products.
The Petrol Group purchases petroleum products under international market conditions, pays for them mostly in US dollars and sells them in local currencies. Because the global oil market and the US dollar market constitute two of the most volatile global markets, the Petrol Group is exposed to both the price risk (changes in the prices of petroleum products) and the foreign exchange risk (changes in the EUR/USD exchange rate) while pursuing its core line of business. The Petrol Group manages volumetric and price risks to the largest extent possible
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by matching 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 financial instruments, in particular commodity swaps in the case of price risks and forward contracts in the case of foreign exchange risks.
Trading in energy products exposes the Petrol Group to price and volumetric risks. These are managed with an assortment of limits systems defined depending on the business partner, the area of trading and the value at risk, and with appropriate processes in place to monitor and control these risks.
In addition to the risks arising from changes in the EUR/USD exchange rate, the Petrol Group is exposed, to some degree, also to the risk of changes in other currencies, which is linked to doing business in the region. The Petrol Group monitors open foreign exchange positions and decides how to manage them on a monthly basis.
Transactions with derivatives are entered into only to hedge against price and volumetric risks and foreign exchange risks rather than for reasons of speculative nature.
Credit risk
The credit risk was assessed in 2017 as the third most relevant financial risk to which the Petrol Group was exposed in connection with the sale of goods and services to natural and legal entities. The risk is managed using the measures outlined below.
The operating receivables management system provides us with an efficient credit risk management. Changes and updates to the risk management system undertaken in the past three years were further advanced in 2019 as a new information system was introduced. The new system has already been deployed within the parent company, with other Petrol Group companies following as scheduled.
In conjunction with the introduction of the new information system, the system of limits for operations involving natural persons was updated as previously announced.
As part of the usual receivables management processes, we keep actively pursuing the collection of receivables. Particular attention is given to individual treatment of major customers or customers in relation to which outstanding receivables balances exceed EUR 250,000. We refine procedures for approving the amount of exposure (limits) to individual buyers and expand the range of first-class credit insurance instruments as a requirement to approve sales (receivables insurance with credit insurance companies, bank guarantees, letters of credit, collaterals, corporate guarantees, securities, mortgages, pledges). A great deal of work is put into the management of receivables from large customers in Slovenia, and significant attention is also devoted to the collection of receivables in SE Europe markets, where the solvency and payment discipline of the business sector differs from that in Slovenia. Receivables are systematically monitored by age, region and organisational unit as well as by quality and individual customer. The exposure of customers in the Petrol Group's portfolio to the credit risk is monitored at a global level. To monitor receivables, we use a joint receivables management application, which provides us with automated control over the exposure to individual customers and the possibility to respond immediately. Through experience, the application is
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continuously improved. In addition, we introduced centralised control over credit insurance instruments received and centralised the collection process.
We consider that credit risks are adequately 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 and a higher volume of secured receivables. The Petrol Group too, however, is unable to fully avoid the consequences of bankruptcies, compulsory composition proceedings and personal bankruptcies.
Liquidity risk
The Petrol Group has been assigned a BBB- long-term international credit rating, an A-3 shortterm credit rating and a stable credit rating outlook by Standard & Poor's Ratings Services, which reaffirmed the ratings on 10 October 2019. This investment-grade rating enables us to tap international financial markets more easily and represents an additional commitment towards successful operations and the deleveraging of the Petrol Group. We are currently introducing relevant S&P's methodology into the management of liquidity risks.
At the end of June, we repaid all obligations under the eurobonds, in total EUR 203 million.
In the first nine months of 2019, average petroleum product prices were somewhat lower yearon-year, meaning that slightly less working capital might be needed. The Group's long-term and short-term lines of credit provide us with a high level of liquidity.
Cash flow management nevertheless requires considerable attention and prudence, especially as regards the planning of cash inflows from lay away sales, this being the main source of credit risks and, consequently, liquidity risks.
The Petrol Group is capable of meeting all of its outstanding liabilities at any given moment. The Group's successful operations in particular are a guarantee for the Group's long-term solvency and boost its equity capital.
Interest rate risk
The Petrol Group regularly monitors its exposure to the interest rate risk. 89.7 percent of the Petrol Group's non-current financial liabilities contain a variable interest rate that is linked to EURIBOR. In the first nine months of 2019, the average EURIBOR rate was comparable to the one at the end of 2018 and thus remains historically low (negative).
To hedge against exposure to the interest rate risk, a portion of variable interest rates is transformed into a fixed interest rate using derivative financial instruments, thus protecting our net interest position. When deciding whether to pursue additional hedging activities, forecasts regarding interest rate changes are considered. The time of hedging and the type of instruments used to this effect are determined based on market conditions. In the first nine months of 2019, no additional interest rate hedging contracts were concluded.
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Petrol's shares
At the end of September 2019, share prices at the Ljubljana Stock Exchange were on average higher than at the end of 2018. This was also reflected in the SBITOP, the Slovene blue-chip index, which is used as a benchmark and provides information on changes in the prices of the most important and liquid shares traded on the regulated market. The index also comprises Petrol's shares. The SBITOP stood at 854.71 as at the end of September 2019 and was up 6.2 percent relative to the end of 2018 (805.06). During this period, Petrol's shares gained 12.3 percent in value. In terms of trading volume, which in the case of Petrol's shares amounted to EUR 17.6 million between January and September, the shares were ranked fourth among the shares traded on the Ljubljana Stock Exchange. In terms of market capitalisation, which stood at EUR 726.0 million as at 30 September 2019, the shares were ranked third and accounted for 11.1 percent of the total Slovene stock market capitalisation on the said date.
Figure 13: Base index changes for Petrol d.d., Ljubljana's closing share price and the SBITOP index in the first nine months of 2019 compared to the end of 2018
In the first nine months of 2019, the price of Petrol's shares ranged between EUR 315 and EUR 362 per share. Their average price for the period stood at EUR 342.89 and their price as at the end of September 2019 at EUR 348.00. The Petrol Group's earnings per share stood at EUR 38.95, with its book value per share amounting to EUR 376.10. Petrol d.d., Ljubljana had 22,868 shareholders as at 30 September 2019. At the end of September 2019, 557,397 shares or 26.7 percent of all shares were held by foreign legal or natural persons. Compared to the end of 2018, the number of foreign shareholders increased by 0.4 percentage points.
Figure 14: Closing price and the volume of trading in Petrol's shares in the first nine months of 2019
Figure 15: Ownership structure of Petrol d.d., Ljubljana as at 30 September 2019
Table 3: Changes in the ownership structure of Petrol d.d., Ljubljana (comparison between 30 September 2019 and 31 December 2018)
| September, 30 2019 | December 31, 2018 | |||
|---|---|---|---|---|
| No. of Shares | in % | No. of Shares | in % | |
| Slovenski državni holding d.d. | 264,516 | 12.7% | 264,516 | 12.7% |
| Kapitalska družba d.d. together with own funds | 183,832 | 8.8% | 184,136 | 8.8% |
| Republic of Slovenia | 210,689 | 10.1% | 210,689 | 10.1% |
| Other institutional investors - domestic | 265,278 | 12.7% | 266,666 | 12.8% |
| Banks - domestic | 27,215 | 1.3% | 30,214 | 1.4% |
| Insurers - domestic | 25,779 | 1.2% | 25,486 | 1.2% |
| Foreign legal entities (banks and other inst. inv.) | 552,933 | 26.5% | 543,030 | 26.0% |
| Private individuals (domestic and foreign) | 454,638 | 21.8% | 463,792 | 22.2% |
| Own shares | 30,723 | 1.5% | 30,723 | 1.5% |
| Others | 70,698 | 3.4% | 67,049 | 3.2% |
| Total | 2,086,301 | 100.0% | 2,086,301 | 100.0% |
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Table 4: 10 largest shareholders of Petrol d.d., Ljubljana as at 30 September 2019
| Shareholder | Address | No. of Shares | Share in % |
|---|---|---|---|
| 1 ČEŠKOSLOVENSKA OBCHODNI BANK, A.S. - FID | RADLICKA 333/150, 150 57 PRAGA 5, REPUBLIKA ČEŠKA | 267.726 | 12,83% |
| 2 SLOVENSKI DRŽAVNI HOLDING, D.D. | MALA ULICA 5, 1000 LJUBLJANA | 264.516 | 12,68% |
| 3 REPUBLIKA SLOVENIJA | GREGORČIČEVA ULICA 20, 1000 LJUBLJANA | 210.689 | 10,10% |
| 4 KAPITALSKA DRUŽBA, D.D. | DUNAJSKA CESTA 119, 1000 LJUBLJANA | 172.639 | 8,27% |
| 5 OTP BANKA D.D. - CLIENT ACCOUNT - FIDUCI | DOMOVINSKOG RATA 61, 21000 SPLIT, HRVAŠKA | 109.651 | 5,26% |
| 6 VIZIJA HOLDING, K.D.D. | DUNAJSKA CESTA 156, 1000 LJUBLJANA | 71.676 | 3,44% |
| 7 VIZIJA HOLDING ENA, K.D.D. | DUNAJSKA CESTA 156, 1000 LJUBLJANA | 63.620 | 3,05% |
| 8 PERSPEKTIVA FT D.O.O. | DUNAJSKA CESTA 156, 1000 LJUBLJANA | 36.262 | 1,74% |
| 9 SOP LJUBLJANA | VOŠNJAKOVA ULICA 6, 1000 LJUBLJANA | 32.342 | 1,55% |
| 10 CITIBANK N.A. - FIDUCIARNI RAČUN | CITIBANK CENTRE, CANADA SQUARE, CANARY W, E14 5LB, LONDON, VELIKA BRITANJA |
28.961 | 1,39% |
Table 5: Shares owned by members of the Supervisory and Management Board as at 30 September 2019
| Name and Surname | Position | No. of shares | Share of equity |
|---|---|---|---|
| Supervisory board | 88 | 0.0042% | |
| Internal members | 0 | 0.0000% | |
| 1. Zoran Gračner | Supervisory Board Member | 0 | 0.0000% |
| 2. Alen Mihelčič | Supervisory Board Member | 0 | 0.0000% |
| 3. Robert Ravnikar | Supervisory Board Member | 0 | 0.0000% |
| External members | 88 | 0.0042% | |
| 1. Nada Drobne Popović | Supervisory Board President | 1 | 0.0000% |
| 2. Sašo Berger | Supervisory Board Vice-president | 0 | 0.0000% |
| 3. Igo Gruden | Supervisory Board Member | 0 | 0.0000% |
| 4. Sergij Goriup | Supervisory Board Member | 5 | 0.0002% |
| 5. Metod Podkrižnik | Supervisory Board Member | 82 | 0.0039% |
| 6. Mladen Kaliterna | Supervisory Board Member | 0 | 0.0000% |
| Management Board | 270 | 0.0129% | |
| 1. Tomaž Berločnik | Management Board President | 0 | 0.0000% |
| 2. Igor Stebernak | Management Board Member | 0 | 0.0000% |
| 3. Rok Vodnik | Management Board Member | 270 | 0.0129% |
| 4. Ika Krevzel Panić | Management Board Member/Worker Director | 0 | 0.0000% |
Contingent increase in share capital
In the period up to 30 September 2019, the General Meeting of Petrol d.d., Ljubljana did not adopt any resolutions regarding the contingent increase in share capital.
Dividends
In accordance with a resolution of the 29th General Meeting held on 18 April 2019, Petrol d.d., Ljubljana paid 2018 gross dividends of EUR 18.00 per share in August 2019. The gross dividend per share for 2017, which was paid in 2018, stood at EUR 16.00.
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Own shares
Petrol d.d., Ljubljana did not repurchase its own shares in the first nine months of 2019. As at 30 September 2019, the number of own shares stood at 30,723, representing 1.5 percent of the share capital. This includes 24,703 own shares that were acquired by Petrol d.d., Ljubljana in the period 1997 to 1999. Their total cost equalled EUR 2.6 million as at 30 September 2019 and was EUR 6.0 million lower than their market value on that date. The remaining 6,020 shares are the shares that are considered as own shares which were held by the subsidiary Geoplin d.o.o. Ljubljana at the time it was incorporated in the Petrol Group.
Own shares of Petrol d.d., Ljubljana, in total 36,142 (without the shares of Geoplin d.o.o. Ljubljana), were purchased between 1997 and 1999. The Company may acquire these own shares only for the purposes laid down in Article 247 of the Companies Act (ZGD-1) and as remuneration to the Management Board and the Supervisory Board. Own shares are used in accordance with the Company's Articles of Association.
In accordance with a resolution of the 27th General Meeting held on 10 April 2017, the Company's Management Board is authorised to acquire own shares within 36 months of the adoption of the resolution. Under this authorisation, a maximum of 208,630 own shares may be acquired, but the total percentage of the shares acquired based on this authorisation may not exceed, together with other own shares already held by the Company (24,703 own shares plus 6,020 own shares of Geoplin d.o.o. Ljubljana, in total 30,723 own shares), 10 percent of the Company's share capital (208,630 shares). In 2018 and 2019, Petrol d.d., Ljubljana did not adopt a programme to prepare a policy for creating own shares.
Regular participation at investors' conferences and external communication
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. We regularly attend investors' conferences that are organised each year by stock exchanges, banks and brokerage companies. There were several individual meetings with investors and analysts in the first nine months of 2019. In March, we participated in a Ljubljana Stock Exchange webcast. In April, we attended an investors' conference organised by the Ljubljana Stock Exchange and the Zagreb Stock Exchange in New York as well as an investor roadshow in London organised by Zagreb-based InterCapital and the London Stock Exchange. In May, we attended a joint investors' conference in Zagreb, which was organised by Ljubljana and Zagreb Stock Exchanges. In September, we took part in another Ljubljana Stock Exchange webcast.
Credit rating
On 11 April 2018, Standard & Poor's Ratings Services affirmed Petrol d.d., Ljubljana's "BBB-" long-term credit rating, its "A-3" short-term credit rating and its "stable" credit rating outlook.
On 10 October 2019, Standard & Poor's Ratings Services reaffirmed Petrol d.d., Ljubljana's "BBB-" long-term credit rating, its "A-3" short-term credit rating and its "stable" credit rating outlook.
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General Meeting resolutions
At the 29th General Meeting of Petrol d.d., Ljubljana held on 18 April 2019, the following resolutions were adopted:
- Accumulated profit of EUR 49,769,123 as at 31 December 2018 shall be used as follows:
- o accumulated profit of EUR 37,553,418 shall be distributed as dividend payments, with gross dividends amounting to EUR 18.00 per share (taking into account the total number of shares issued, i.e. without excluding own shares);
- o the remaining accumulated profit of EUR 12,215,705 and any amounts linked to own shares arising on the date the dividends are paid and amounts resulting from rounding off dividend payments shall be transferred to other revenue reserves.
The Company shall pay out dividends on 9 August 2019 to shareholders registered with KDD – the Central Securities Clearing Corporation on 8 August 2019.
- The Company's Management Board shall be granted discharge from liability for the year 2018.
- The Company's Supervisory Board shall be granted discharge from liability for the year 2018.
- The audit firm ERNST & YOUNG Revizija, poslovno svetovanje, d.o.o., Dunajska cesta 111, Ljubljana, shall be appointed auditor of the Company for 2019, 2020 and 2021.
- The Company's Articles of Association shall be amended as follows:
- o owing to changes introduced as regards the Company's activities, the following shall be added to Clause 03.01. of the Articles of Association: 08.120 Operation of gravel and sand pits, mining of clays and kaolin 08.910 Mining of chemical and fertiliser minerals 08.930 Extraction of salt 08.990 Other mining and quarrying n.e.c. 09.900 Support activities for other mining and quarrying 49.310 Urban and suburban passenger land transport 49.320 Taxi operation 49.391 Interurban and other road passenger transport; o due to the expiry of a five-year period, the provisions pertaining to the authorised capital
- of the Company shall be deleted, namely the title 07A.00. AUTHORISED CAPITAL and Clauses 07A.01., 07A.02. and 07A.03;
- o the provisions of Clause 09.04. shall be extended by adding a new sentence at the end of the Clause, reading as follows: "A member of the Management Board shall hold at least a bachelor's or master's degree from a relevant university (Bologna 2nd Cycle Degree), and shall have five years of appropriate work experience in managerial positions and suitable knowledge and organisational skills to manage the company. Further, the member shall demonstrate professional and personal integrity."
- o a new second paragraph shall be added to Clause 10.13., which reads as follows: "A member of the Supervisory Board may resign from the position of Member of the Supervisory Board prior to the expiry of the term of office for which he/she has been appointed. However, the resignation shall not be given at an inappropriate time, and is subject to a 90 days' notice period. In the case the resignation is given at an inappropriate time, the member of the Supervisory Board shall be liable to the company for any damage caused to it, despite the fact that the 90 days' notice period has been observed."
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- o Clause 10.14. shall be amended to read: "In return for their work, the members of the Supervisory Board shall be entitled to receive basic remuneration for duties performed, attendance fees and reimbursement of costs in connection with their work for the Supervisory Board. The exact amounts of payments shall be determined in a resolution adopted by the General Meeting."
- o Clause 10.15. shall be deleted; the previous Clause 10.16. shall be renumbered to 10.15.
- The following remuneration is set by the General Meeting for the members of the Supervisory Board in return for their work:
-
- The members of the Supervisory Board shall be entitled to receive attendance fees for their attendance at Supervisory Board's meetings. Each member shall receive a gross amount of EUR 275.00 for each meeting attended. The members of a Supervisory Board Committee shall be entitled to receive attendance fees for their attendance at Committee meetings. Each member of the Committee shall receive 80 percent of the fee for attendance at the Supervisory Board's meetings. The fee for attendance at a correspondence meeting amounts to 80 percent of the regular attendance fee. Notwithstanding the foregoing and the number of their attendances at meetings, in each financial year a member of the Supervisory Board shall be entitled to receive the total amount of attendance fees not exceeding 50 percent of the basic remuneration paid on an annual basis for performing the duties of Member of the Supervisory Board. In each financial year, a member of the Supervisory Board who is also a member of a Supervisory Board Committee or Committees shall be entitled to receive, notwithstanding the foregoing and the number of their attendances at the meetings of the Supervisory Board and of the Committees, the total amount of attendance fees not exceeding 75 percent of the basic remuneration paid on an annual basis for performing the duties of Member of the Supervisory Board.
-
- In addition to attendance fees, the members of the Supervisory Board shall be entitled to receive basic remuneration for performing their duties; each member shall be entitled to receive a gross annual amount of EUR 14,000.00. Further, the President of the Supervisory Board shall also be entitled to receive an additional amount of 50 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. The Vice President / Deputy President of the Supervisory Board shall be entitled to receive an additional amount of 10 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. The members of a Supervisory Board Committee shall be entitled to receive an additional amount for performing their duties; each member of the Committee shall receive 25 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. The president of a Committee shall be entitled to receive an additional amount of 37.5 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. In each financial year, a member of a Supervisory Board Committee shall be entitled to receive, notwithstanding the foregoing and the number of committees of which they are a member or president, the total amount of additional fees not exceeding 50 percent of the basic remuneration paid on an annual basis for performing the duties of Member of the Supervisory Board. If the term of office of a member of the Supervisory Board is shorter than the financial year, the member of a Supervisory Board Committee shall be entitled to receive, notwithstanding the foregoing and the number of committees of which they are a
-
member or president, the total amount of additional payments not exceeding 50 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board, taking into account the eligible payments for the period of their term of office in the relevant financial year.
-
- The members of the Supervisory Board and the members of a Supervisory Board Committee shall receive basic remuneration and additional payments for performing their duties in the form of proportional monthly fees to which they are entitled as long as they perform their duties. The monthly fee shall amount to one-twelfth of the abovementioned annual payments.
-
- Limits on the amount of total payments of attendance fees or additional payments to the members of the Supervisory Board shall in no way affect their statutory responsibilities and their duty to participate actively in all meetings of the Supervisory Board and the Committees of which they are members.
-
- The members of the Supervisory Board shall be entitled to receive a refund of travel and accommodation costs in connection with their work for the Supervisor Board. The amounts refunded shall be defined in accordance with the regulations governing the reimbursement of costs in connection with work and other income not included in the tax base (allowances for travel and overnight stays during business trips). The amount to which a member of the Supervisory Board is entitled in accordance with the abovementioned regulations shall be calculated as a gross amount in such a way that the net amount represents the actual travel expenses refunded. Mileage expenses shall be calculated using the table of distances between places, posted on the website of AMZS, the national automobile association. Accommodation costs will be refunded only if the distance of a Supervisory Board member's and/or a Supervisory Board Committee member's permanent or temporary residence is at least 100 kilometres away from the location of the Board's or Committee's work, provided it is not possible for the member to return home owing to the lack of suitable scheduled public means of transport, or for other objective reasons.
As from the date of adopting this Resolution, the resolution on the amounts of attendance fees, adopted at the General Meeting of 7 April 2009, and the resolution on monthly payments for the performance of duties, adopted at the General Meeting of 19 May 2011, shall cease to apply.
Business plan for 2019
The Petrol Group has set ambitious goals for 2019. To achieve them, it will pay particular attention to the optimisation of operational and supporting business processes in 2019.
At the Petrol Group, we realise that despite careful preparation, informed business decisions, quick response to changes and an efficient risk management system external factors may arise in the business environment which are beyond our direct control and may pose a risk or a threat when it comes to meeting our targets. In 2019 these factors include:
- sales in the EU market, the extremely volatility of which might keep us from reaching our sales targets,
- the impact of the Act Regulating the Construction, Operation and Management of the Second Track of the Divača-Koper Railway Line, which foresees two new duties in order to finance the construction: a charge on transshipment in the freight port of Koper to be
paid by the transshipment operator and an additional charge to the toll paid by the tollpaying entities, which would mean higher costs for the Petrol Group,
• proposal amending the Minimum Wage Act, which redefines the minimum wage by excluding allowances (including the length of service allowance), the job performance bonus and the business performance bonus, which might bring up labour costs.
The Petrol Group's main business targets for 2019:
- Sales revenue of EUR 5.6 billion
- Adjusted gross profit of EUR 475 million
- EBITDA of EUR 186.4 million
- Net profit of EUR 96.7 million
- Net debt to equity ratio of 0.4
- Net debt to EBITDA ratio of 1.8 (or 2.1 if IFRS 16 is taken into account)
- Financial leverage ratio of 29 percent
- 3.3 million tons of petroleum products sold
- Revenue from merchandise sales and related services of EUR 609.1 million a figure in accordance with IAS 18 which is no longer in effect (or EUR 481.6 million if IFRS 15 is taken into account)
- Retail network consisting of 515 service stations
- Investments in fixed assets of EUR 101 million
Considering its nine-month results, the Petrol Group is successfully delivering on its 2019 targets.
As from 1 March and as laid down in the Act Regulating the Construction, Operation and Management of the Second Track of the Divača-Koper Railway Line, the charge on transshipment in the freight port of Koper is now levied and paid by transshipment operators. In addition, an additional charge to the toll paid by toll-paying entities is levied from the beginning of 2019, which means higher costs for the Petrol Group.
Events after the end of the accounting period
On 24 October 2019, three members of Petrol d.d., Ljubljana Management Board – Management Board president Tomaž Berločnik, Management Board member Rok Vodnik and Management Board member Igor Stebernak – agreed with the Supervisory Board of Petrol d.d., Ljubljana to end their terms of office early through mutual agreement, effective 25 October 2019.
Nada Drobne Popović, the current president of Petrol d.d., Ljubljana Supervisory Board, has taken over as Management Board president until such time as a new Management Board is appointed. She will not perform her duties as Supervisory Board member during this time. The Supervisory Board also appointed Danijela Ribarič Selaković, the current director of strategic risk management at Petrol, as a new Management Board member. Ika Krevzel Panić is staying on as Management Board member and Worker Director.
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FINANCIAL REPORT
Financial performance of the Petrol Group and the company Petrol d.d., Ljubljana
Statement of profit and loss of the Petrol Group and Petrol d.d., Ljubljana
| The Petrol Group | Petrol d.d. | ||||
|---|---|---|---|---|---|
| (in EUR) | Note | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Sales revenue | 4,194,766,768 | 3,815,181,681 | 3,280,458,912 | 2,959,628,376 | |
| - of which excise duty | 851,563,238 | 845,188,653 | 548,235,900 | 566,391,719 | |
| Cost of goods sold | (3,832,156,033) | (3,496,352,777) | (3,007,974,902) | (2,711,374,056) | |
| Costs of materials | 3 | (20,300,519) | (20,347,323) | (17,022,384) | (17,246,886) |
| Costs of services | 4 | (99,134,348) | (105,789,821) | (84,775,441) | (87,191,732) |
| Labour costs | 5 | (72,908,897) | (65,609,416) | (52,524,598) | (47,524,704) |
| Depreciation and amortisation | 6 | (50,257,604) | (39,133,413) | (33,495,503) | (27,606,370) |
| Other costs | 7 | (9,530,752) | (8,660,774) | (6,463,606) | (4,993,874) |
| Operating costs | (252,132,120) | (239,540,747) | (194,281,531) | (184,563,567) | |
| Other revenue | 2 | 10,808,026 | 6,539,261 | 2,219,399 | 1,933,221 |
| Other expenses | (173,844) | (353,539) | (15,131) | (30,454) | |
| Operating profit | 121,112,797 | 85,473,879 | 80,406,747 | 65,593,520 | |
| Share of profit or loss of equity accounted investees | 708,848 | 754,103 | - | - | |
| Finance income from dividends paid by subsidiaries, | |||||
| associates and jointly controlled entities | - | - | 2,110,715 | 3,740,383 | |
| Other finance income | 8 | 66,863,096 | 60,574,037 | 63,884,338 | 56,100,605 |
| Other finance expenses | 8 | (90,810,548) | (62,650,114) | (88,188,504) | (54,738,673) |
| Net finance expense | (23,947,452) | (2,076,077) | (24,304,166) | 1,361,932 | |
| Profit before tax | 97,874,193 | 84,151,905 | 58,213,296 | 70,695,836 | |
| Tax expense | (15,779,203) | (16,312,973) | (10,273,232) | (12,292,504) | |
| Deferred tax | (2,021,850) | 927,908 | (146,318) | 889,501 | |
| Corporate income tax | (17,801,053) | (15,385,065) | (10,419,550) | (11,403,003) | |
| Net profit for the period | 80,073,140 | 68,766,840 | 47,793,746 | 59,292,833 | |
| Net profit for the period attributable to: | |||||
| Owners of the controlling company | 78,168,593 | 68,708,479 | 47,793,746 | 59,292,833 | |
| Non-controlling interest | 1,904,547 | 58,361 | - | - | |
| Basic and diluted earnings per share | 9 | 38.95 | 33.45 | 23.18 | 28.76 |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Net profit for the period | 80,073,140 | 68,766,840 | 47,793,746 | 59,292,833 |
| Other comprehensive income to be recognised in the statement of profit or loss in the future |
||||
| Change due to merger by absorption | - | - | 0 | 30,873,289 |
| Effective portion of changes in the fair value of cash flow | ||||
| variability hedging | (6,266,750) | (254,221) | (5,993,741) | (96,472) |
| Change in deferred taxes | 1,187,953 | 70,524 | 1,138,810 | 42,128 |
| Foreign exchange differences | 358,038 | 219,100 | - | - |
| Total other comprehensive income to be recognised in | ||||
| the statement of profit or loss in the future | (4,720,759) | 35,403 | (4,854,931) | 30,818,945 |
| Other comprehensive income not to be recognised in the statement of profit or loss in the future |
||||
| Total other comprehensive income not to be recognised in the statement of profit or loss in the future |
0 | 0 | 0 | 0 |
| Total other comprehensive income after tax | (4,720,759) | 35,403 | (4,854,931) | 30,818,945 |
| Total comprehensive income for the period | 75,352,381 | 68,802,243 | 42,938,815 | 90,111,778 |
| Total comprehensive income attributable to: | ||||
| Owners of the controlling company | 73,423,228 | 68,735,703 | 42,938,815 | 90,111,778 |
| Non-controlling interest | 1,929,153 | 66,540 | - | - |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Statement of financial position of the Petrol Group and Petrol d.d., Ljubljana
| The Petrol Group | Petrol d.d. | ||||||
|---|---|---|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | ||||
| (in EUR) | Note | 2019 | 2018 | 2019 | 2018 | ||
| ASSETS | |||||||
| Non-current (long-term) assets | |||||||
| Intangible assets | 10 | 188,004,621 | 188,070,862 | 161,057,892 | 161,073,945 | ||
| Right to use of leased assets | 11 | 75,006,660 | 0 | 38,166,193 | 0 | ||
| Property, plant and equipment | 12 | 695,669,545 | 653,341,473 | 379,422,924 | 366,662,451 | ||
| Investment property | 17,144,620 | 17,348,836 | 16,668,488 | 16,845,651 | |||
| Investments in subsidiaries | 13 | - | - | 342,496,083 | 326,416,061 | ||
| Investments in jointly controlled entities | 14 | 743,750 | 1,774,437 | 425,570 | 1,347,380 | ||
| Investments in associates | 15 | 52,869,073 | 50,917,836 | 29,939,454 | 27,364,454 | ||
| Financial assets at fair value through other comprehensive income |
16 | 3,786,066 | 9,168,566 | 1,374,993 | 1,374,993 | ||
| Financial receivables | 2,042,616 | 1,466,432 | 13,343,328 | 13,605,479 | |||
| Operating receivables | 7,556,566 | 6,737,751 | 7,535,214 | 6,715,315 | |||
| Deferred tax assets | 9,819,513 | 9,117,237 | 7,563,069 | 6,570,576 | |||
| 1,052,643,030 | 937,943,430 | 997,993,208 | 927,976,305 | ||||
| Current assets | |||||||
| Inventories | 17 | 163,384,816 | 138,449,703 | 111,937,272 | 101,436,745 | ||
| Contract assets | 1,354,796 | 2,278,452 | 2,582,499 | 2,056,160 | |||
| Financial receivables | 18 | 8,050,178 | 8,697,496 | 17,043,346 | 10,205,902 | ||
| Operating receivables | 19 | 444,051,397 | 531,677,349 | 311,843,565 | 388,715,450 | ||
| Corporate income tax assets | 290,099 | 331,528 | 609,169 | 0 | |||
| Financial assets at fair value through profit or loss | 20 | 1,767,059 | 2,626,490 | 1,767,059 | 2,626,490 | ||
| Prepayments and other assets | 21 | 53,386,531 | 50,070,501 | 30,191,966 | 33,777,606 | ||
| Cash and cash equivalents | 99,558,909 | 58,740,743 | 68,550,698 | 28,986,973 | |||
| 771,843,785 | 792,872,262 | 544,525,574 | 567,805,326 | ||||
| Total assets | 1,824,486,815 | 1,730,815,692 | 1,542,518,782 | 1,495,781,631 | |||
| EQUITY AND LIABILITIES | |||||||
| Equity attributable to owners of the controlling company | |||||||
| 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 revenue reserves | 283,277,245 | 269,059,392 | 308,975,832 | 295,680,118 | |||
| Fair value reserve | (858,943) | (512,238) | 39,525,529 | 39,525,529 | |||
| Hedging reserve | (5,828,072) | (749,275) | (5,476,015) | (621,084) | |||
| Foreign exchange differences | (4,913,434) | (5,246,866) | - | - | |||
| Retained earnings | 278,144,594 | 257,220,109 | 47,793,746 | 50,296,118 | |||
| 745,041,707 | 714,991,439 | 587,905,027 | 581,966,615 | ||||
| Non-controlling interest | 39,608,123 | 32,486,625 | - | - | |||
| Total equity | 784,649,830 | 747,478,064 | 587,905,027 | 581,966,615 | |||
| Non-current liabilities | |||||||
| Provisions for employee post-employment and other long | |||||||
| term benefits | 7,678,859 | 7,685,139 | 6,838,798 | 6,838,798 | |||
| Other provisions | 31,138,527 | 33,433,896 | 15,048,615 | 14,599,875 | |||
| Long-term deferred revenue | 20,113,720 | 19,524,265 | 15,474,440 | 15,092,684 | |||
| Financial liabilities Long-term lease liabilities |
22 | 294,107,540 68,129,474 |
144,505,616 24,107 |
286,485,516 35,532,082 |
121,460,476 0 |
||
| Operating liabilities | 1,008,217 | 1,152,162 | 857,982 | 857,982 | |||
| Deferred tax liabilities | 2,503,053 | 1,197,216 | 0 | 0 | |||
| 424,679,390 | 207,522,401 | 360,237,432 | 158,849,815 | ||||
| Current liabilities | |||||||
| Financial liabilities | 22 | 75,325,176 | 212,350,212 | 166,772,976 | 302,739,319 | ||
| Current lease liabilities | 8,231,560 | 0 | 3,424,066 | 0 | |||
| Operating liabilities | 23 | 497,795,123 | 523,858,709 | 402,971,965 | 431,668,916 | ||
| Corporate income tax liabilities | 2,284,681 | 8,873,559 | 0 | 8,059,847 | |||
| Contract liabilities | 14,231,822 | 5,892,691 | 12,268,818 | 3,218,350 | |||
| Other liabilities | 24 | 17,289,233 | 24,840,056 | 8,938,498 | 9,278,768 | ||
| 615,157,595 | 775,815,227 | 594,376,323 | 754,965,201 | ||||
| Total liabilities | 1,039,836,985 | 983,337,628 | 954,613,755 | 913,815,016 | |||
| Total equity and liabilities | 1,824,486,815 | 1,730,815,692 | 1,542,518,782 | 1,495,781,631 |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 37/64
Statement of changes in equity of the Petrol Group
| Rev enu e re ser v es |
Equ ity |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in E UR) |
Cal led- up ital cap |
Cap ital plus sur |
Leg al rese rv es |
Res es f erv or sha own res |
Ow n sh are s |
Oth er r ev enu e rese rv es |
Fair alue v rese rve |
Hed ging rese rv e |
Fore ign han exc ge diffe ren ces |
Ret aine d ning ear s |
ibut able attr to of t he own ers trol ling con com pan y |
Non trol ling -con inte rest |
Tota l |
| As a t 31 De ber 201 7 cem |
52,2 40,9 77 |
80,9 91,3 85 |
61,9 87,9 55 |
4,70 8,35 9 |
59) (4,7 08,3 |
214 ,915 ,535 |
) (832 ,522 |
) (39, 917 |
69) (6,0 53,2 |
247 ,992 ,625 |
651 ,202 ,769 |
50,6 64,3 85 |
701 ,867 ,154 |
| Adj dop tion of IFRS ustm ent 15 on a |
(307 ) ,807 |
(307 ,807 ) |
(307 ,807 ) |
||||||||||
| As Jan y 20 18 at 1 uar Divi den d pa nts f or 2 017 yme |
52,2 40,9 77 |
80,9 91,3 85 |
61,9 87,9 55 |
4,70 8,35 9 |
59) (4,7 08,3 |
214 ,607 ,728 (849 ,070 ) |
) (832 ,522 |
) (39, 917 |
69) (6,0 53,2 |
247 ,992 ,625 (32, 136 ,498 ) |
650 ,894 ,962 (32, ) 985 ,568 |
50,6 64,3 85 (674 ,369 ) |
701 ,559 ,347 (33, ) 659 ,937 |
| Incr e/(d ) in trol ling inte rest eas ecre ase non -con |
6,7 13,4 17 |
85,9 74 |
6,79 9,39 1 |
(19, ) 422 ,308 |
(12, 622 ,917 ) |
||||||||
| Tran tion ith o sac s w wne rs |
0 | 0 | 0 | 0 | 0 | 5,86 4,34 7 |
85,9 74 |
0 | 0 | ) (32, 136 ,498 |
) (26, 186 ,177 |
) (20, 096 ,677 |
(46, 282 ,854 ) |
| Net prof it fo r the riod pe |
68,7 08,4 79 |
68,7 08,4 79 |
58,3 61 |
68,7 66,8 40 |
|||||||||
| Oth han in o ther peh ive inco er c ges com ens me |
(183 ) ,697 |
210 ,921 |
27,2 24 |
8,17 9 |
35,4 03 |
||||||||
| Tota l ch es i tal c rehe nsiv e in n to ang omp com e |
0 | 0 | 0 | 0 | 0 | 0 | 0 | ( 183 ,697 ) |
210 ,921 |
68,7 08,4 79 |
68,7 35,7 03 |
66,5 40 |
68,8 02,2 3 4 |
| As at 3 0 S mbe r 20 18 epte |
52,2 40,9 77 |
80,9 91,3 85 |
61,9 87,9 55 |
4,70 8,35 9 |
59) (4,7 08,3 |
220 ,472 ,075 |
) (746 ,548 |
) (223 ,614 |
48) (5,8 42,3 |
284 ,564 ,606 |
693 ,444 ,488 |
30,6 34,2 48 |
724 ,078 ,736 |
| As at 1 Jan y 20 19 uar Divi den d pa nts f or 2 018 yme |
52,2 40,9 77 |
80,9 91,3 85 |
61,9 87,9 55 |
4,70 8,35 9 |
59) (4,7 08,3 |
269 ,059 ,392 |
) (512 ,238 |
) (749 ,275 |
66) (5,2 46,8 |
257 ,220 ,109 (37, 000 ,404 |
714 ,991 ,439 ) (37, 000 ,404 ) |
32,4 86,6 25 |
747 ,478 ,064 (37, 000 ,404 ) |
| Tra nsfe r of ined rnin her reta gs t o ot ea rese rves |
20,2 43,7 04 |
(20, 243 ,704 ) |
0 | 0 | |||||||||
| Incr e/(d ) in trol ling inte rest eas ecre ase non -con |
(6,0 51) 25,8 |
(346 ) ,705 |
(6,3 72,5 56) |
5,19 2,34 5 |
(1,1 80,2 11) |
||||||||
| Tran tion ith o sac s w wne rs |
0 | 0 | 0 | 0 | 0 | 14,2 17,8 53 |
) (346 ,705 |
0 | 0 | ) (57, 244 ,108 |
) (43, 372 ,960 |
5,19 2,34 5 |
(38, 180 ,615 ) |
| Net prof it fo r the riod pe |
78,1 68,5 93 |
78,1 68,5 93 |
1,90 4,54 7 |
80,0 73,1 40 |
|||||||||
| Oth han in o ther peh ive inco er c ges com ens me |
(5,0 97) 78,7 |
333 ,432 |
(4,7 45,3 65) |
24,6 06 |
(4,7 20,7 59) |
||||||||
| Tota l ch es i tal c rehe nsiv e in n to ang omp com e |
0 | 0 | 0 | 0 | 0 | 0 | 0 | ( 5,07 8,79 7) |
333 ,432 |
78,1 68,5 93 |
73,4 23,2 28 |
1,92 9,15 3 |
75,3 52,3 8 1 |
| As at 3 0 S epte mbe r 20 19 |
52,2 40,9 77 |
80,9 91,3 85 |
61,9 87,9 55 |
4,70 8,35 9 |
59) (4,7 08,3 |
283 ,277 ,245 |
) (858 ,943 |
72) (5,8 28,0 |
34) (4,9 13,4 |
278 ,144 ,594 |
745 ,041 ,707 |
39,6 08,1 23 |
784 ,649 ,830 |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 38/64
Statement of changes in equity of Petrol d.d., Ljubljana
| Rev enu e re ser v es |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in E UR) |
Cal led- up ital cap |
Cap ital plus sur |
Leg al res erv es |
Res es f erv or sha own res |
Ow n sh are s |
Oth er r ev enu e res erv es |
Fair alue v res erv e |
Hed ging res erv e |
Ret aine d ning ear s |
Tota l |
| As at 3 1 D mbe r 20 17 ece Adj dop tion of IFR S 1 ustm ent 5 on a |
52,2 40,9 77 |
80,9 91,3 85 |
61,7 49,8 84 |
2,60 4,67 0 |
70) (2,6 04,6 |
216 ,667 ,051 (307 ) ,807 |
39,2 95,1 25 |
) (168 ,787 |
32, 136 ,498 |
482 ,912 ,133 (307 ,807 ) |
| As at 1 Ja ry 2 018 nua |
52,2 40,9 77 |
80,9 91,3 85 |
61,7 49,8 84 |
2,60 4,67 0 |
70) (2,6 04,6 |
216 ,359 ,244 |
39,2 95,1 25 |
) (168 ,787 |
32, 136 ,498 |
482 ,604 ,326 |
| Divi den d pa nts for 2 017 yme |
(849 ,070 ) |
(32, 136 ,498 ) |
(32, 985 ,568 ) |
|||||||
| Tra ctio ith o nsa ns w wne rs |
0 | 0 | 0 | 0 | 0 | ) (849 ,070 |
0 | 0 | ) (32, 136 ,498 |
(32, 985 ,568 ) |
| Net prof it fo r the riod pe Oth han in peh ive inco er c ges com ens me |
30,8 73,2 89 |
(54, 344 ) |
59,2 92,8 33 |
59,2 92,8 33 30,8 18,9 45 |
||||||
| Tota l ch es i n to tal c reh iv e in ang omp ens com e |
0 | 0 | 0 | 0 | 0 | 30,8 73,2 89 |
0 | ) (54, 344 |
59,2 92,8 33 |
90,1 11,7 78 |
| 0 S As at 3 epte mbe r 20 18 |
52,2 40,9 77 |
80,9 91,3 85 |
61,7 49,8 84 |
2,60 4,67 0 |
70) (2,6 04,6 |
246 ,383 ,463 |
39,2 95,1 25 |
) (223 ,131 |
59,2 92,8 33 |
539 ,730 ,536 |
| As at 1 Ja ry 2 019 nua Divi den d pa for 2 nts 018 yme nsfe r of Tra reta ined rnin gs t o ot her ea rese rves |
52,2 40,9 77 |
80,9 91,3 85 |
61,7 49,8 84 |
4,70 8,35 9 |
70) (2,6 04,6 |
295 ,680 ,118 13,2 95,7 14 |
39,5 25,5 29 |
4) (62 1,08 |
50,2 96, 118 (37, ) 000 ,404 (13, 295 ,714 ) |
581 ,966 ,615 (37, 000 ,404 ) 0 |
| Tra ctio ith o nsa ns w wne rs |
0 | 0 | 0 | 0 | 0 | 13,2 95,7 14 |
0 | 0 | (50, 296 ,118 ) |
(37, 000 ,404 ) |
| Net prof it fo r the riod pe Oth han in othe hen sive inc er c ges r co mpe ome |
(4,8 54,9 31) |
47,7 93,7 46 |
47,7 93,7 46 (4,8 54,9 31) |
|||||||
| Tota l ch es i tal c reh iv e in n to ang omp ens com e |
0 | 0 | 0 | 0 | 0 | 0 | 0 | ( 1) 4,85 4,93 |
47,7 93,7 46 |
42,9 38,8 15 |
| As at 3 0 S mbe r 20 19 epte |
52,2 40,9 77 |
80,9 91,3 85 |
61,7 49,8 84 |
4,70 8,35 9 |
70) (2,6 04,6 |
308 ,975 ,832 |
39,5 25,5 29 |
15) (5,4 76,0 |
47,7 93,7 46 |
587 ,905 ,026 |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Cash flow statement of the Petrol Group and Petrol d.d., Ljubljana
| The Petrol Group | Petrol d.d. | |||||
|---|---|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |||
| (in EUR) Cash flows from operating activities |
Note | 2019 | 2018 | 2019 | 2018 | |
| Net profit Adjustment for: |
80,073,140 | 68,766,840 | 47,793,746 | 59,292,833 | ||
| Corporate income tax | 17,801,053 | 15,385,065 | 10,419,550 | 11,403,003 | ||
| Depreciation of property, plant and equipment and of investment property | 6 | 43,126,431 | 32,267,322 | 27,303,107 | 21,549,359 | |
| Amortisation of intangible assets | 6 | 7,131,173 | 6,866,091 | 6,192,396 | 6,057,011 | |
| (Gain)/loss on disposal of property, plant and equipment Impairment, write-down/(reversed impairment) of assets |
2, 7 | (338,181) 0 |
(317,642) 576,604 |
(278,737) 0 |
(416,284) 0 |
|
| Revenue from assets under management | (48,926) | (49,050) | (48,926) | (49,050) | ||
| Net (decrease in)/creation of provisions for long-term employee benefits | (6,563) | 2,080 | 0 | 0 | ||
| Net (decrease in)/creation of other provisions and long-term deferred | ||||||
| revenue Net goods surpluses |
(1,706,537) (2,548,170) |
(2,562,909) (1,011,771) |
830,495 (1,592,043) |
1,040,979 (1,120,433) |
||
| Net (decrease in)/creation of allowance for receivables | 8 | (1,022,782) | 6,162,796 | (331,906) | 2,953,331 | |
| Net finance (income)/expense | 8 | 6,771,348 | 4,751,538 | 6,264,948 | 5,853,925 | |
| Impairment of goodwill | 8 | 942,130 | 252,596 | 942,130 | 252,596 | |
| Share of profit of jointly controlled entities Share of profit of associates |
(132,970) (575,878) |
(193,861) (560,242) |
- - |
- - |
||
| Finance income from dividends received from subsidiaries | - | - | (756,521) | (1,715,262) | ||
| Finance income from dividends received from joint contolled entities | - | - | (150,000) | (387,654) | ||
| Finance income from dividends received from associates | - | - | (1,204,194) | (1,637,467) | ||
| Cash flow from operating activities berfore the changes in working | ||||||
| capital | 149,465,268 | 130,335,457 | 95,384,045 | 103,076,887 | ||
| Net (decrease in)/creation of other liabilities | 24 | (7,551,838) | 9,249,365 | (340,270) | 4,422,477 | |
| Net decrease in/(creation of) other assets | 21 | 1,683,106 | (1,610,314) | (440,170) | (2,670,099) | |
| Change in inventories | 17 | (22,360,016) | 24,556,693 | (8,908,484) | 24,490,350 | |
| Change in operating and other receivables and contract assets | 19 | 95,959,729 | (38,397,285) | 90,057,023 | (46,858,191) | |
| Change in operating and other liabilities and contract liabilities | 23 | (14,224,321) | 39,903,003 | (15,280,905) | 7,020,625 | |
| Cash generated from operating activities | 202,971,928 | 164,036,919 | 160,471,239 | 89,482,049 | ||
| Interest paid Taxes paid |
8 | (12,116,240) (22,255,470) |
(8,393,409) (12,766,262) |
(10,843,861) (18,908,939) |
(8,196,254) (10,175,050) |
|
| Net cash from (used in) operating activities | 168,600,218 | 142,877,248 | 130,718,439 | 71,110,745 | ||
| Cash flows from investing activities | ||||||
| Payments for investments in subsidiaries | 13 | (947,038) | (18,741,748) | (16,579,882) | (20,261,748) | |
| Receipts from investments in subsidiaries Payments for investments in jointly controlled entities |
13 13 |
0 (64,190) |
480,000 (282,934) |
0 (64,190) |
0 (282,934) |
|
| Payments for investments in associates | 14 | (2,575,000) | (2,575,000) | 0 | ||
| Receipts from investments in associates | 14 | 0 | 11,650,598 | 0 | 0 | |
| Receipts from intangible assets | 10 | 186,305 | 49,227 | 186,305 | 17,866 | |
| Payments for intangible assets Payments for lease liabilities |
10 11 |
(5,859,314) (2,315,725) |
(5,171,446) 0 |
(4,974,845) (271,957) |
(4,150,025) 0 |
|
| Receipts from property, plant and equipment | 12 | 2,938,624 | 1,216,191 | 2,509,840 | 1,198,998 | |
| Payments for property, plant and equipment | 12 | (98,141,436) | (48,042,504) | (53,268,522) | (39,604,081) | |
| Receipts from investment property | 206,687 | 0 | 206,687 | 0 | ||
| Receipts from financial assets at fair value through other comprehensive | ||||||
| income Payments for financial assets at fair value through other comprehensive |
15 | 5,208,928 | 428,103 | 83,928 | 428,103 | |
| income | 15 | 0 | 0 | 0 | 0 | |
| Receipts from loans granted | 18 | 3,151,652 | 61,512,840 | 21,468,429 | 10,477,561 | |
| Payments for loans granted | 18 | (4,393,920) | (23,522,597) | (28,891,528) | (10,828,456) | |
| Interest received Dividends received from subsidiaries |
8 | 2,827,637 - |
3,051,743 - |
1,580,300 756,521 |
2,245,985 1,715,262 |
|
| Dividends received from jointly controlled entities | 150,000 | 361,753 | 150,000 | 361,753 | ||
| Dividends received from associates | 1,204,194 | 1,914,725 | 1,204,194 | 1,637,467 | ||
| Dividends received from others | 207,717 | 94,516 | 97,716 | 94,516 | ||
| Net cash from (used in) investing activities | (98,214,879) | (15,001,533) | (78,382,004) | (56,949,733) | ||
| Cash flows from financing activities | ||||||
| Payments for bonds issued Proceeds from borrowings |
22 22 |
(203,524,000) 432,522,535 |
0 205,237,141 |
(203,524,000) 704,642,932 |
0 466,736,532 |
|
| Repayment of borrowings | 22 | (221,597,154) | (260,610,529) | (476,890,350) | (441,512,500) | |
| Dividends paid to shareholders | (37,001,292) | (33,670,814) | (37,001,292) | (32,996,445) | ||
| Net cash from (used in) financing activities | (29,599,911) | (89,044,202) | (12,772,710) | (7,772,413) | ||
| Increase/(decrease) in cash and cash equivalents | 40,785,428 | 38,831,513 | 39,563,725 | 6,388,599 | ||
| Changes in cash and cash equivalents | ||||||
| At the beginning of the year | 58,740,743 | 45,492,821 | 28,986,973 | 23,651,242 | ||
| Foreign exchange differences | 32,738 | (56,126) | - | - | ||
| Cash acquired through mergers by absorption Cash acquired through acquisition of companies |
- 0 |
- 1,765,448 |
0 - |
6,963,407 - |
||
| Increase/(decrease) | 40,785,428 | 38,831,513 | 39,563,725 | 6,388,599 | ||
| At the end of the period | 99,558,909 | 86,033,656 | 68,550,698 | 37,003,248 |
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 40/64
Notes to the financial statements
Reporting entity
Petrol d.d., Ljubljana (hereinafter the "Company") is a company domiciled in Slovenia. Its registered office is at Dunajska cesta 50, 1527 Ljubljana. Below we present consolidated financial statements of the Group for the period ended 30 September 2019 and separate financial statements of the company Petrol d.d., Ljubljana for the period ended 30 September 2019. 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 Organisational structure of the Petrol Group.
Basis of preparation
a. Statement of compliance
The Company's management approved the Company's financial statements and the Group's consolidated financial statements on 7 November 2019.
The financial statements of Petrol d.d., Ljubljana and consolidated financial statements of the Petrol Group have been prepared in accordance with IAS 34 – Interim financial reporting and should be read in conjunction with the Group's annual financial statements as at 31 December 2018.
The financial statements for the period from January – June 2019 are prepared based on the same accounting policies used for the preparation of financial statements for the year ended 31 December 2018, considering the implementation of the new standard IFRS 16.
b. Basis of measurement
The Group's and the Company's financial statements have been prepared on the historical cost basis except for the financial instruments that are carried at fair value or amortised cost.
c. Functional and presentation currency
These financial statements are presented in euros (EUR) without cents, the euro also being the Company's functional currency. Due to rounding, some immaterial differences may arise as concerns the sums presented in tables.
d. Use of estimates and judgements
The preparation of the financial statements requires management to make estimates and judgements based on the assumptions used and reviewed that affect the reported amounts of assets, liabilities, revenue and expenses. How the estimates are produced and the related assumptions and uncertainties is disclosed in the notes to individual items.
The estimates, judgements and assumptions are reviewed on a regular basis. Because estimates are subject to subjective judgments 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 a change affects that period only. If the change affects future periods, they are recognised in the period of the change and in any future periods.
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 41/64
Estimates and assumptions are mainly used in the following judgements:
- determining the amount of revenue and the timing of satisfaction of performance obligations,
- estimating the lives of depreciable assets,
- assets impairment testing,
- estimating of the fair value of assets,
- estimating of the influence in jointly controlled entities,
- estimate of provisions for litigation,
- estimate of provisions for employee post-employment and other long-term benefits,
- assessing the possibility of using deferred tax assets.
e. Changes in accounting policies
IFRS 16 - Leases
In 2019 the Group supplemented the applicable accounting policies and the treatment of events, together with their presentation in the financial statements, to align them with the requirements of IFRS 16, entered into force on 1 January 2019.
IFRS 16 replaces IAS 17 – Leases and requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance leases. In the statement of financial position of the lessee leased assets are disclosed within fixed assets or as right to use of leased assets in connection with the lease liabilities. Value of the right of use of leased assets transfers through depreciation to expenses, interest expenses from leases increased financial expenses of the period. The standard includes two recognition exemptions for lessees – leases of 'low-value' assets and short-term leases. Lessor accounting is substantially unchanged from accounting under IAS 17.
The Group reviewed and analysed its lease contracts for which the lease terms exceed one year. The Group used the value of the lease and the length of the lease term to assess the value of the right-to-use of leased assets and lease liabilities and recognised them in the statements of financial position as at 1 January 2019. The value of the right-to-use assets and liabilities to make lease payments are assessed by discounting future cash flows over the lease term. Cash flows are discounted at the interest rates achieved by Group companies in financing long-term leases. The depreciation charge is calculated using depreciation rates estimated by taking into account the remaining term of the lease.
The effects of the adoption of IFRS 16 on the statement of financial position of the company Petrol d.d., Ljubljana and the Petrol Group as ta 1 January 2019
| The Petrol Group | Petrol d.d. | |||||
|---|---|---|---|---|---|---|
| 31 December | 31 December | |||||
| (in EUR) | 1 January 2019 | IFRS 16 | 2018 | 1 January 2019 | IFRS 16 | 2018 |
| ASSETS | ||||||
| Non-current (long-term) assets | ||||||
| Investments in associates | 81,289,870 | 81,289,870 | 0 | 41,597,817 | 41,597,817 | 0 |
| 81,289,870 | 81,289,870 | 0 | 41,597,817 | 41,597,817 | 0 | |
| Total assets | 81,289,870 | 81,289,870 | 0 | 41,597,817 | 41,597,817 | 0 |
| EQUITY AND LIABILITIES | ||||||
| Non-current liabilities | ||||||
| Long-term lease liabilities | 71,998,445 | 71,998,445 | 0 | 38,042,275 | 38,042,275 | 0 |
| 71,998,445 | 71,998,445 | 0 | 38,042,275 | 38,042,275 | 0 | |
| Current liabilities | ||||||
| Current lease liabilities | 9,291,425 | 9,291,425 | 0 | 3,555,542 | 3,555,542 | 0 |
| 9,291,425 | 9,291,425 | 0 | 3,555,542 | 3,555,542 | 0 | |
| Total liabilities | 81,289,870 | 81,289,870 | 0 | 41,597,817 | 41,597,817 | 0 |
| Total equity and liabilities | 81,289,870 | 81,289,870 | 0 | 41,597,817 | 41,597,817 | 0 |
The effects of the adoption of IFRS 16 on the statement of profit and loss of the company Petrol d.d., Ljubljana and the Petrol Group for the period of 1 January to 30 September 2019
| The Petrol | ||
|---|---|---|
| Group | Petrol d.d. | |
| (in EUR) | MSRP 16 | MSRP 16 |
| Depreciation of right of use assets | 8,587,582 | 3,703,580 |
| Leasee payments | (10,584,473) | (5,043,893) |
| Operating profit | 1,996,892 | 1,340,313 |
| Other finance expensess | 3,313,761 | 2,130,268 |
| Profit beofre tax | (1,316,869) | (789,955) |
Comparative information in the statement of financial position as at 31 December 2018 and in the statement of profit or loss for the period of 1 January to 30 September 2019 were not restated upon the introduction of IFRS 16.
IFRS 15 – Revenue from contracts with customers
In 2018 the Group implemented IFRS 15 – Revenue from contracts with customers. Because of the impact of IFRS 15 – Revenue from contracts with customers the Group decreased the amount of revenue from the sale of goods and the cost of goods sold for the period of 1 January to 30 September 2018 as reported in the Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2018 on 25 November 2018 for 90,543,994 EUR.
The effects of the adoption of IFRS 15 on comparative financial data reported for the period of 1 January to 30 September 2018
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | Amended | Published | Amended | Published |
| Sales revenue | 3,815,181,681 | 3,905,725,675 | 2,959,628,376 | 3,050,172,370 |
| - of which excise duty | 845,188,653 | 845,188,653 | 566,391,719 | 566,391,719 |
| Cost of goods sold | (3,496,352,777) | (3,586,896,771) | (2,711,374,056) | (2,801,918,050) |
| Operating costs | (239,540,747) | (239,540,747) | (184,563,567) | (184,563,567) |
| Operating profit | 85,473,879 | 85,473,879 | 65,593,520 | 65,593,520 |
| Profit before tax | 84,151,905 | 84,151,905 | 70,695,836 | 70,695,836 |
Notes to individual items in the financial statements
1. Segment reporting
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 operating results of operating segments are reviewed regularly by the management to make decisions about resources to be allocated to a segment and assess the Group's performance.
The management monitors information on two levels: on the micro level, in which case individual units are monitored, and on the macro level, where information is monitored only in terms of certain key information that can be used to make comparisons with similar companies in Europe. Given the substantial amount of information and their sensitivity on the micro level, the Group only discloses macro-level information in its annual report.
The Group thus uses the following segments in the preparation and presentation of the financial statements:
- sales,
- energy and environmental services and production.
Sales consist of:
- sales of petroleum products,
- sales of merchandise and services,
- sales of liquefied petroleum gas (LPG),
- sales of and trading in electricity and natural gas,
- mobility.
Energy and environmental services and production consist of:
- energy and environmental solutions for the public and the commercial sector,
- energy solutions and industry and apartment buildings,
- distribution of natural gas,
- production of electricity from renewable sources.
The Group's operating segments in the period 1 January - 30 September 2018:
| (in EUR) | Sales | Energy and Environmental Solutions and Production |
Total | Statement of profit or loss/ Statement of financial position |
|---|---|---|---|---|
| Sales revenue | 4,152,236,166 | 44,069,290 | 4,196,305,456 | |
| Revenue from subsidiaries | (381,002,710) | (121,065) | (381,123,775) | |
| Sales revenue | 3,771,233,456 | 43,948,225 | 3,815,181,681 | 3,815,181,681 |
| Net profit for the period | 64,032,056 | 4,734,784 | 68,766,840 | 68,766,840 |
| Interest income* | 2,204,531 | 812,673 | 3,017,204 | 3,017,204 |
| Interest expense* | (5,284,129) | (1,947,928) | (7,232,057) | (7,232,057) |
| Depreciation of property, plant and equipment, | ||||
| depreciation of investment property, amortisation of | ||||
| intangible assets | (27,824,367) | (11,309,046) | (39,133,413) | (39,133,413) |
| Share of profit or loss of equity accounted investees | 0 | 754,103 | 754,103 | 754,103 |
| Total assets | 1,422,827,973 | 245,777,309 | 1,668,605,282 | 1,668,605,282 |
| Equity accounted investees | 1,232,391 | 50,424,248 | 51,656,639 | 51,656,639 |
| Property, plant and equipment, intangible assets and | ||||
| investment property | 643,062,018 | 187,086,882 | 830,148,900 | 830,148,900 |
| Other assets | 778,533,564 | 8,266,179 | 786,799,743 | 786,799,743 |
| Current and non-current operating and financial | ||||
| liabilities | 726,431,815 | 125,482,813 | 851,914,628 | 851,914,628 |
*Interest income and expenses are estimated based on a segment's share of investments and assets in total investments and assets.
The Group's operating segments in the period 1 January - 30 September 2019:
| Energy and | Statement of | |||
|---|---|---|---|---|
| Environmental | profit or loss/ | |||
| (in EUR) | Sales | Solutions and Production |
Total | Statement of financial position |
| Sales revenue | 4,504,177,937 | 49,100,115 | 4,553,278,052 | |
| Revenue from subsidiaries | (358,475,287) | (35,997) | (358,511,284) | |
| Sales revenue | 4,145,702,650 | 49,064,118 | 4,194,766,768 | 4,194,766,768 |
| Net profit for the period | 73,319,686 | 6,753,454 | 80,073,140 | 80,073,140 |
| Interest income* | 2,066,822 | 775,398 | 2,842,220 | 2,842,220 |
| Interest expense* | (6,407,819) | (2,403,985) | (8,811,804) | (8,811,804) |
| Depreciation of property, plant and equipment, depreciation of investment property, amortisation of |
||||
| intangible assets | (38,108,163) | (12,149,441) | (50,257,604) | (50,257,604) |
| Share of profit or loss of equity accounted investees | 0 | 708,848 | 708,848 | 708,848 |
| Total assets | 1,534,640,000 | 289,846,815 | 1,824,486,815 | 1,824,486,815 |
| Equity accounted investees | 0 | 53,612,823 | 53,612,823 | 53,612,823 |
| Property, plant and equipment, intangible assets and | ||||
| investment property | 748,592,888 | 227,232,558 | 975,825,446 | 975,825,446 |
| Other assets | 786,047,112 | 9,001,434 | 795,048,546 | 795,048,546 |
| Current and non-current operating and financial | ||||
| liabilities | 794,533,820 | 150,063,270 | 944,597,090 | 944,597,090 |
*Interest income and expenses are estimated based on a segment's share of investments and assets in total investments and assets.
2. Other revenue
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Utilisation of environmental provisions | 451,820 | 461,480 | 451,820 | 461,480 |
| Gain on disposal of fixed assets | 385,747 | 501,487 | 319,184 | 465,231 |
| Compensation, litigation proceeds and contractual penalties | 203,551 | 613,842 | 141,407 | 309,637 |
| Compensation received from insurance companies | 48,651 | 159,304 | 23,489 | 77,583 |
| Other revenue | 9,718,257 | 4,803,148 | 1,283,499 | 619,290 |
| Total other revenue | 10,808,026 | 6,539,261 | 2,219,399 | 1,933,221 |
3. Costs of material
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Costs of energy | 14,710,501 | 13,890,134 | 12,724,753 | 12,104,607 |
| Costs of consumables | 4,784,612 | 5,844,202 | 3,895,117 | 4,858,121 |
| Write-off of small tools | 234,697 | 195,606 | 58,964 | 55,977 |
| Other costs of materials | 570,709 | 417,381 | 343,550 | 228,181 |
| Total costs of materials | 20,300,519 | 20,347,323 | 17,022,384 | 17,246,886 |
4. Costs of services
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Costs of service station managers | 26,014,125 | 25,142,501 | 26,014,125 | 25,142,501 |
| Costs of transport services | 22,357,689 | 23,026,883 | 18,826,974 | 19,436,953 |
| Costs of fixed-asset maintenance services | 14,431,759 | 13,105,155 | 11,475,022 | 10,138,080 |
| Costs of payment transactions and bank services | 7,907,635 | 6,673,464 | 6,049,527 | 4,941,327 |
| Costs of professional services | 6,634,654 | 7,121,646 | 5,742,011 | 6,749,336 |
| Costs of fairs, advertising and entertainment | 4,980,109 | 5,384,060 | 3,078,379 | 3,679,460 |
| Outsourcing costs | 3,823,104 | 1,580,279 | 3,639,871 | 1,371,483 |
| Costs of insurance premiums | 3,036,266 | 2,987,039 | 1,894,955 | 1,915,305 |
| Lease payments | 2,011,025 | 12,214,212 | 2,558,454 | 7,636,621 |
| Costs of environmental protection services | 1,342,554 | 1,264,502 | 833,898 | 604,136 |
| Costs of fire protection and physical and technical security | 1,280,105 | 1,352,101 | 1,061,214 | 1,163,143 |
| Reimbursement of work-related costs to employees | 1,141,976 | 827,374 | 679,392 | 530,722 |
| Property management | 1,125,370 | 1,083,180 | 1,013,554 | 1,014,649 |
| Membership fees | 331,665 | 400,971 | 200,060 | 194,751 |
| Other costs of services | 2,716,312 | 3,626,454 | 1,708,005 | 2,673,265 |
| Total costs of services | 99,134,348 | 105,789,821 | 84,775,441 | 87,191,732 |
5. Labour costs
| The Petrol Group | Petrol d.d. | ||||
|---|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 | |
| Salaries | 54,423,046 | 47,563,278 | 39,111,310 | 34,358,148 | |
| Costs of pension insurance | 4,520,142 | 4,078,016 | 3,641,359 | 3,248,127 | |
| Costs of other social insurance | 4,938,501 | 4,367,032 | 3,014,909 | 2,611,816 | |
| Transport allowance | 2,484,242 | 2,186,069 | 1,584,668 | 1,383,535 | |
| Annual leave allowance | 2,110,509 | 1,864,478 | 1,688,012 | 1,482,613 | |
| Meal allowance | 1,965,366 | 1,759,129 | 1,542,258 | 1,382,573 | |
| Supplementary pension insurance | 1,023,198 | 897,905 | 980,068 | 849,751 | |
| Other allowances and reimbursements | 1,443,893 | 2,893,509 | 962,014 | 2,208,141 | |
| Total labour costs | 72,908,897 | 65,609,416 | 52,524,598 | 47,524,704 |
6. Depreciation and amortisation
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Amortisation of intangible assets | 7,131,173 | 6,866,091 | 6,192,396 | 6,057,011 |
| Depreciation of property, plant and equipment | 33,665,584 | 31,467,691 | 22,764,669 | 20,776,783 |
| Depreciation of right to use of leased assets | 8,598,934 | 0 | 3,703,580 | 0 |
| Depreciation of investment property | 861,913 | 799,631 | 834,858 | 772,576 |
| Total depreciation and amortisation | 50,257,604 | 39,133,413 | 33,495,503 | 27,606,370 |
7. Other costs
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Environmental charges and charges unrelated to operations | 6,057,128 | 4,460,781 | 3,675,602 | 2,236,987 |
| Sponsorships and donations | 2,240,107 | 1,877,857 | 2,127,331 | 1,801,575 |
| Disposals/impairment of assets | 47,864 | 760,853 | 40,447 | 48,947 |
| Other costs | 1,185,653 | 1,561,283 | 620,226 | 906,365 |
| Total other costs | 9,530,752 | 8,660,774 | 6,463,606 | 4,993,874 |
8. Other financial income and expenses
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Gain on derivatives | 46,914,835 | 44,661,873 | 47,352,642 | 45,099,904 |
| Foreign exchange differences | 15,206,040 | 11,217,129 | 13,633,609 | 7,440,820 |
| Allowances for receivables reversed and bad debt recovered | 1,372,383 | 772,856 | 331,906 | 629,055 |
| Interest income | 2,842,220 | 3,017,204 | 1,961,432 | 2,319,849 |
| Other finance income | 527,618 | 904,975 | 604,749 | 610,977 |
| Total other finance income | 66,863,096 | 60,574,037 | 63,884,338 | 56,100,605 |
| Loss on derivatives | (60,539,004) | (34,687,670) | (61,199,984) | (33,227,454) |
| Foreign exchange differences | (18,838,627) | (12,100,479) | (17,215,261) | (8,891,486) |
| Interest expense | (8,811,804) | (7,232,057) | (7,845,266) | (7,302,724) |
| Allowance for opertaing receivables | (349,601) | (6,935,652) | 0 | (3,582,386) |
| Impairment of goodwill | (942,130) | (252,596) | (942,130) | (252,596) |
| Other finance expenses | (1,329,382) | (1,441,660) | (985,863) | (1,482,027) |
| Total other finance expenses | (90,810,548) | (62,650,114) | (88,188,504) | (54,738,673) |
| Net finance expense | (23,947,452) | (2,076,077) | (24,304,166) | 1,361,932 |
9. Earnings per share
| The Petrol Group | Petrol d.d. | ||||
|---|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | ||
| (in EUR) | 2019 | 2018 | 2019 | 2018 | |
| Net profit (in EUR) | 80,073,140 | 68,766,840 | 47,793,746 | 59,292,833 | |
| Number of shares issued | 2,086,301 | 2,086,301 | 2,086,301 | 2,086,301 | |
| Number of own shares at the beginning of the period | 30,723 | 30,723 | 24,703 | 24,703 | |
| Number of own shares at the end of the period | 30,723 | 30,723 | 24,703 | 24,703 | |
| Weighted average number of ordinary shares issued | 2,055,578 | 2,055,578 | 2,061,598 | 2,061,598 | |
| Diluted average number of ordinary shares | 2,055,578 | 2,055,578 | 2,061,598 | 2,061,598 | |
| Basic and diluted earnings per share (EUR/share) | 38.95 | 33.45 | 23.18 | 28.76 |
Basic earnings per share are calculated by dividing the owners' net profit by the weighted average number of ordinary shares, excluding ordinary shares owned by the Company. The Group and the Company have no potential dilutive ordinary shares, so the basic and diluted earnings per share are identical.
10. Intangible assets
Intangible assets of the Petrol Group
| (in EUR) | Software | Right to use concession infrastructure |
Goodwill | Ongoing investments |
Long-term deferred expenses |
Total |
|---|---|---|---|---|---|---|
| Cost | ||||||
| As at 1 January 2018 | 26,746,392 | 105,938,314 | 105,882,081 | 5,014,512 | 0 | 243,581,299 |
| New acquisitions as a result of control obtained | 1,290,791 | 430,428 | 0 | 0 | 1,115 | 1,722,334 |
| New acquisitions | 0 | 76,347 | 0 | 4,947,851 | 147,248 | 5,171,446 |
| Disposals/Impairments | (70,376) | (55,427) | 0 | (6,455) | 0 | (132,258) |
| Transfer from ongoing investments | 2,413,893 | 1,589,301 | 0 | (4,003,194) | 0 | 0 |
| Foreign exchange differences | 275 | 4,511 | 10,243 | 53 | 0 | 15,082 |
| As at 30 September 2018 | 30,380,975 | 107,983,474 | 105,892,324 | 5,952,767 | 148,363 | 250,357,903 |
| Accumulated amortisation | ||||||
| As at 1 January 2018 | (14,393,544) | (43,002,706) | 0 | 0 | 0 | (57,396,250) |
| New acquisitions as a result of control obtained | 0 | (1 21,499) |
0 | 0 | 0 | (121,499) |
| Amortisation | (3,500,798) | (3,365,293) | 0 | 0 | 0 | (6,866,091) |
| Disposals/Impairments | 70,376 | 12,655 | 0 | 0 | 0 | 83,031 |
| Foreign exchange differences | (198) | (1,186) | 0 | 0 | 0 | (1,384) |
| As at 30 September 2018 | (17,824,164) | (46,478,029) | 0 | 0 | 0 | (64,302,193) |
| Net carrying amount as at 1 January 2018 | 12,352,848 | 62,935,608 | 105,882,081 | 5,014,512 | 0 | 186,185,049 |
| Net carrying amount as at 30 September 2018 | 12,556,811 | 61,505,445 | 105,892,324 | 5,952,767 | 148,363 | 186,055,710 |
| Right to use concession |
Ongoing | Long-term deferred |
||||
|---|---|---|---|---|---|---|
| (in EUR) | Software | infrastructure | Goodwill | investments | expenses | Total |
| Cost | ||||||
| As at 1 January 2019 | 32,430,709 | 110,894,186 | 108,042,233 | 3,141,403 | 148,628 | 254,657,159 |
| New acquisitions | 0 | 39,241 | 0 | 5,670,871 | 149,202 | 5,859,314 |
| Disposals/Impairments | (249,503) | (385,482) | 0 | 0 | 0 | (634,985) |
| Transfer between asset categories | 1,271 | 2,167,293 | 0 | 151,235 | (1,002) | 2,318,797 |
| Transfer from ongoing investments | 1,228,762 | 905,678 | 0 | ( 2,134,440) |
0 | 0 |
| Foreign exchange differences | 634 | 1,469 | 3,127 | 114 | 0 | 5,344 |
| As at 30 September 2019 | 33,411,873 | 113,622,385 | 108,045,360 | 6,829,183 | 296,828 | 262,205,629 |
| Accumulated amortisation | ||||||
| As at 1 January 2019 | (19,001,884) | (47,584,413) | 0 | 0 | 0 | (66,586,297) |
| Amortisation | (3,594,256) | (3,536,917) | 0 | 0 | 0 | (7,131,173) |
| Disposals/Impairments | 63,198 | 385,482 | 0 | 0 | 0 | 448,680 |
| Transfer between asset categories | (1,271) | (929,711) | 0 | 0 | 0 | (930,982) |
| Foreign exchange differences | (542) | (694) | 0 | 0 | 0 | (1,236) |
| As at 30 September 2019 | (22,534,755) | (51,666,253) | 0 | 0 | 0 | (74,201,008) |
| Net carrying amount as at 1 January 2019 | 13,428,825 | 63,309,773 | 108,042,233 | 3,141,403 | 148,628 | 188,070,862 |
| Net carrying amount as at 30 September 2019 | 10,877,118 | 61,956,132 | 108,045,360 | 6,829,183 | 296,828 | 188,004,621 |
Intangible assets of Petrol d.d., Ljubljana
| Right to use | Long-term | |||||
|---|---|---|---|---|---|---|
| concession | Ongoing | deferred | ||||
| (in EUR) Cost |
Software | infrastructure | Goodwill | investments | expenses | Total |
| As at 1 January 2018 | 26,013,629 | 81,744,724 | 89,138,157 | 4,678,547 | 0 | 201,575,057 |
| New acquisitions as a result of merger by absorption | 696,272 | 16,387,437 | 0 | 60,653 | 1,115 | 17,145,477 |
| New acquisitions | 0 | 6,660 | 0 | 3,996,117 | 147,248 | 4,150,025 |
| Disposals/Impairments | (70,124) | (10,776) | 0 | (6,455) | 0 | (87,355) |
| Transfer from ongoing investments | 2,410,806 | 1,183,725 | 0 | (3,594,531) | 0 | 0 |
| As at 30 September 2018 | 29,050,583 | 99,311,770 | 89,138,157 | 5,134,331 | 148,363 | 222,783,204 |
| Accumulated amortisation | ||||||
| As at 1 January 2018 | (14,057,563) | (33,823,591) | 0 | 0 | 0 | (47,881,154) |
| New acquisitions as a result of merger by absorption | (333,970) | (5,972,912) | 0 | 0 | 0 | (6,306,882) |
| Amortisation | (3,190,281) | (2,866,730) | 0 | 0 | 0 | (6,057,011) |
| Disposals/Impairments | 70,123 | 0 | 0 | 0 | 0 | 70,123 |
| As at 30 September 2018 | (17,511,691) | (42,663,233) | 0 | 0 | 0 | (60,174,924) |
| Net carrying amount as at 1 January 2018 | 11,956,066 | 47,921,133 | 89,138,157 | 4,678,547 | 0 | 153,693,903 |
| Net carrying amount as at 30 September 2018 | 11,538,892 | 56,648,537 | 89,138,157 | 5,134,331 | 148,363 | 162,608,280 |
| Right to use concession |
Ongoing | Long-term deferred |
||||
| (in EUR) | Software | infrastructure | Goodwill | investments | expenses | Total |
| Cost | ||||||
| As at 1 January 2019 | 30,989,916 | 101,925,472 | 87,712,518 | 2,481,083 | 148,626 | 223,257,615 |
| New acquisitions | 0 | 297 | 0 | 4,825,330 | 149,204 | 4,974,832 |
| Disposals/Impairments | (248,407) | 0 | 0 | 0 | 0 | (248,407) |
| Transfer between asset categories | 1,271 | 2,167,293 | 0 | 151,235 | (1,002) | 2,318,797 |
| Transfer from ongoing investments | 1,223,903 | 317,177 | 0 | ( 1,541,081) |
0 | 0 |
| As at 30 September 2019 | 31,966,683 | 104,410,239 | 87,712,518 | 5,916,567 | 296,829 | 230,302,836 |
| Accumulated amortisation | ||||||
| As at 1 January 2019 | (18,613,326) | (43,570,344) | 0 | 0 | 0 | (62,183,670) |
| Amortisation | (3,249,274) | (2,943,121) | 0 | 0 | 0 | (6,192,396) |
| Disposals/Impairments | 62,102 | 0 | 0 | 0 | 0 | 62,102 |
| Transfer between asset categories | (1,271) | (929,711) | 0 | 0 | 0 | (930,982) |
| As at 30 September 2019 | (21,801,769) | (47,443,176) | 0 | 0 | 0 | (69,244,946) |
| Net carrying amount as at 1 January 2019 | 12,376,590 | 58,355,128 | 87,712,518 | 2,481,083 | 148,626 | 161,073,945 |
| Net carrying amount as at 30 September 2019 | 10,164,913 | 56,967,064 | 87,712,518 | 5,916,567 | 296,829 | 161,057,892 |
11. Right to use of leased assets
Right to use of leased assets of the Petrol Group
| Right of use | Right of use | Right of use | ||
|---|---|---|---|---|
| of leased | of leased | of leased | ||
| (in EUR) | land | buildings | equipment | Total |
| Cost | ||||
| As at 31 December 2018 | 0 | 0 | 0 | 0 |
| Adjustment on adoption of IFRS 16 | 47,247,248 | 29,747,736 | 4,294,885 | 81,289,869 |
| As at 1 January 2019 | 47,247,248 | 29,747,736 | 4,294,885 | 81,289,869 |
| New acquistions | 0 | 1,968,087 | 347,638 | 2,315,725 |
| As at 30 September 2019 | 47,247,248 | 31,715,823 | 4,642,523 | 83,605,594 |
| Accumulated depreciation | ||||
| As at 1 January 2019 | 0 | 0 | 0 | 0 |
| Depreciation | (2,996,534) | (4,344,535) | (1,257,865) | (8,598,934) |
| As at 30 September 2019 | (2,996,534) | (4,344,535) | (1,257,865) | (8,598,934) |
| Net carrying amount as at 1 January 2019 | 47,247,248 | 29,747,736 | 4,294,885 | 81,289,869 |
| Net carrying amount as at 30 September 2019 | 44,250,714 | 27,371,288 | 3,384,658 | 75,006,660 |
Right to use of leased assets of Petrol d.d., Ljubljana
| (in EUR) | Right of use of leased land |
Right of use of leased buildings |
Right of use of leased equipment |
Total |
|---|---|---|---|---|
| Cost | ||||
| As at 31 December 2018 | 0 | 0 | 0 | 0 |
| Adjustment on adoption of IFRS 16 | 36,735,845 | 1,004,954 | 3,857,017 | 41,597,816 |
| As at 1 January 2019 | 36,735,845 | 1,004,954 | 3,857,017 | 41,597,816 |
| New acquisitions | 0 | 0 | 271,957 | 271,957 |
| As at 30 September 2019 | 36,735,845 | 1,004,954 | 4,128,974 | 41,869,773 |
| Accumulated depreciation | ||||
| As at 1 January 2019 | 0 | 0 | 0 | 0 |
| Depreciation | (2,352,710) | (227,015) | (1,123,855) | (3,703,580) |
| As at 30 September 2019 | (2,352,710) | (227,015) | (1,123,855) | (3,703,580) |
| Net carrying amount as at 1 January 2019 | 36,735,845 | 1,004,954 | 3,857,017 | 41,597,816 |
| Net carrying amount as at 30 September 2019 | 34,383,135 | 777,939 | 3,005,119 | 38,166,193 |
12. Property, plant and equipment
Property, plant and equipment of the Petrol Group
| Ongoing | ||||||
|---|---|---|---|---|---|---|
| (in EUR) | Land | Buildings | Plant | Equipment | investments | Total |
| Cost | ||||||
| As at 1 January 2018 | 212,380,212 | 639,874,317 | 36,457,138 | 230,848,417 | 34,743,016 1,154,303,100 | |
| New acquistions as a result of control obtained | 0 | 0 | 2,022,626 | 1,365,926 | 0 | 3,388,552 |
| New acquistions | 0 | 0 | 0 | 0 | 38,098,154 | 38,098,154 |
| Disposals/Impairments | (829,223) | (948,948) | (1,181) | (2,849,178) | (18,483) | (4,647,013) |
| Transfer between assets categories | 0 | 0 | (36,264,668) | 36,264,668 | 0 | 0 |
| Transfer from ongoing investments | 595,783 | 16,366,603 | 1,775 | 15,775,441 | (32,739,602) | 0 |
| Transfer to investment property | (603,129) | (71,044) | 0 | 0 | 0 | (674,173) |
| Transfer from investment property | 0 | 724,882 | 0 | 0 | 0 | 724,882 |
| Foreign exchange differences | 73,907 | 167,367 | 0 | 55,264 | 9,334 | 305,872 |
| As at 30 September 2018 | 211,617,550 | 656,113,177 | 2,215,690 | 281,460,538 | 40,092,419 1,191,499,374 | |
| Accumulated depreciation | ||||||
| As at 1 January 2018 | 0 | (378,484,490) | (19,618,389) | (135,740,713) | 0 | (533,843,592) |
| New acquistions as a result of control obtained | 0 | 0 | (1 ,054,159) |
(30,973) | 0 | (1,085,132) |
| Depreciation | 0 | (16,531,217) | (54,996) | (14,881,478) | 0 | (31,467,691) |
| Disposals/Impairments | 0 | 498,181 | 0 | 2,660,144 | 0 | 3,158,325 |
| Transfer between assets categories | 0 | 0 | 19,669,723 | (19,669,723) | 0 | 0 |
| Transfer to investment property | 0 | 2,323 | 0 | 0 | 0 | 2,323 |
| Transfer from investment property Foreign exchange differences |
0 0 |
(395,965) (50,706) |
0 0 |
0 (17,392) |
0 0 |
(395,965) (68,098) |
| As at 30 September 2018 | 0 | (394,961,874) | (1,057,821) | (167,680,135) | 0 | (563,699,830) |
| Net carrying amount as at 1 January 2018 | 212,380,212 | 261,389,827 | 16,838,749 | 95,107,704 | 34,743,016 | 620,459,508 |
| Net carrying amount as at 30 September 2018 | 211,617,550 | 261,151,303 | 1,157,869 | 113,780,403 | 40,092,419 | 627,799,544 |
| Ongoing | ||||||
| (in EUR) | Land | Buildings | Plant | Equipment | investments | Total |
| Cost | ||||||
| As at 1 January 2019 | 211,730,212 | 684,932,935 | 4,204,588 | 293,200,053 | 41,543,233 1,235,611,021 | |
| New acquistions | 0 | 0 | 0 | 0 | 80,553,700 | 80,553,700 |
| Disposals/Impairments | (1,634,206) | (6,462,378) | (108,434) | (3,677,474) | 0 | (11,882,492) |
| Transfer between assets categories | 0 | 0 | 0 | (2,169,393) | (151,235) | (2,320,628) |
| Transfer from ongoing investments | 3,872,699 | 19,580,066 | 63,620 | 14,325,693 | (37,842,078) | 0 |
| Transfer to investment property | 0 | (623,377) | 0 | 197 | (236,271) | (859,451) |
| Foreign exchange differences | 76,071 | 240,928 | 51 | 50,136 | 33,843 | 401,029 |
| As at 30 September 2019 | 214,044,776 | 697,668,174 | 4,159,825 | 301,729,212 | 83,901,192 1,301,503,179 | |
| Accumulated depreciation | ||||||
| As at 1 January 2019 | 0 | (410,973,941) | (1,908,901) | (169,386,706) | 0 | (582,269,548) |
| Depreciation | 0 | (17,505,400) | (130,668) | (16,029,516) | 0 | (33,665,584) |
| Disposals/Impairments | 0 | 5,863,567 | 107,343 | 3,311,139 | 0 | 9,282,049 |
| Transfer between assets categories | 0 | (5,373) | 0 | 933,252 | 0 | 927,879 |
| Foreign exchange differences As at 30 September 2019 |
0 0 |
(83,105) (422,704,252) |
(35) (1,932,261) |
(25,290) (181,197,121) |
0 0 |
(108,430) (605,833,634) |
| Net carrying amount as at 1 January 2019 | 211,730,212 | 273,958,994 | 2,295,687 | 123,813,347 | 41,543,233 | 653,341,473 |
Net carrying amount as at 30 September 2019 214,044,776 274,963,922 2,227,564 120,532,091 83,901,192 695,669,545
Property, plant and equipment of Petrol d.d., Ljubljana
| Ongoing | ||||||
|---|---|---|---|---|---|---|
| (in EUR) | Land | Buildings | Plant | Equipment | investments | Total |
| Cost | ||||||
| As at 1 January 2018 | 104,270,519 | 479,686,715 | 0 | 176,240,824 | 23,106,434 | 783,304,492 |
| New acquisitions as a result of merger by absorption | 485,433 | 20,055,806 | 38,044,843 | 1,327,531 | 1,121,632 | 61,035,245 |
| New acquisitions | 0 | 0 | 0 | 0 | 32,125,076 | 32,125,076 |
| Disposals/Impairments | (239,536) | (862,520) | 0 | (2,346,148) | (18,483) | (3,466,687) |
| Transfer between asset categories | 0 | 0 | (38,044,843) | 38,044,843 | 0 | 0 |
| Transfer from ongoing investments | 145,835 | 9,843,498 | 0 | 12,056,348 (22,045,681) | 0 | |
| Transfer to investment property | (603,129) | (71,044) | 0 | 0 | 0 | (674,173) |
| Transfer from investment property | 0 | 724,882 | 0 | 0 | 0 | 724,882 |
| As at 30 September 2018 | 104,059,122 | 509,377,337 | 0 | 225,323,398 | 34,288,978 | 873,048,835 |
| Accumulated depreciation | ||||||
| As at 1 January 2018 | 0 | (345,512,369) | 0 | (125,134,643) | 0 | (470,647,012) |
| New acquisitions as a result of merger by absorption | 0 | (12,933,776) | (21,399,901) | (17,642) | 0 | (34,351,319) |
| Depreciation | 0 | (10,908,620) | 0 | (9,868,163) | 0 | (20,776,783) |
| Disposals/Impairments | 0 | 498,434 | 0 | 2,185,539 | 0 | 2,683,973 |
| Transfer between asset categories | 0 | 0 | 21,399,901 | (21,399,901) | 0 | 0 |
| Transfer to investment property | 0 | 2,323 | 0 | 0 | 0 | 2,323 |
| Transfer from investment property | 0 | (395,965) | 0 | 0 | 0 | (395,965) |
| As at 30 September 2018 | 0 | (369,249,973) | 0 | (154,234,810) | 0 | (523,484,783) |
| Net carrying amount as at 1 January 2018 | 104,270,519 | 134,174,346 | 0 | 51,106,181 | 23,106,434 | 312,657,480 |
| Net carrying amount as at 30 September 2018 | 104,059,122 | 140,127,364 | 0 | 71,088,588 | 34,288,978 | 349,564,052 |
| Ongoing | ||||||
| (in EUR) | Land | Buildings | Plant | Equipment | investments | Total |
| Cost | ||||||
| As at 31 December 2018 | 104,358,050 | 519,362,112 | 0 | 238,043,271 | 34,074,420 | 895,837,853 |
| Adjustment on adoption of IFRS 16 | 0 | 0 | 0 | 0 | 0 | |
| As at 1 January 2019 | 104,358,050 | 519,362,112 | 0 | 238,043,271 | 34,074,420 | 895,837,853 |
| New acquisitions | 0 | 0 | 0 | 0 | 40,008,444 | 40,008,444 |
| Disposals/Impairments | (1,634,206) | (6,262,277) | 0 | (2,684,388) | 0 | (10,580,871) |
| Transfer between asset categories | 0 | 0 | 0 | (2,169,393) | (151,235) | (2,320,628) |
| Transfer from ongoing investments | 34,157 | 14,059,583 | 0 | 11,231,687 (25,325,426) | 0 | |
| Transfer to investment property | 0 | (623,377) | 0 | 197 | (236,271) | (859,451) |
| As at 30 September 2019 | 102,758,001 | 526,536,041 | 0 | 244,421,374 | 48,369,931 | 922,085,347 |
| Accumulated depreciation | ||||||
| As at 1 January 2019 | 0 | (372,918,438) | 0 | (156,256,964) | 0 | (529,175,402) |
| Depreciation | 0 | (11,532,794) | 0 | (11,231,875) | 0 | (22,764,669) |
| Disposals/Impairments | 0 | 5,792,395 | 0 | 2,557,374 | 0 | 8,349,769 |
| Transfer between asset categories | 0 | (5,373) | 0 | 933,252 | 0 | 927,879 |
| As at 30 September 2019 | 0 | (378,664,210) | 0 | (163,998,213) | 0 | (542,662,423) |
| Net carrying amount as at 1 January 2019 | 104,358,050 | 146,443,674 | 0 | 81,786,307 | 34,074,420 | 366,662,451 |
| Net carrying amount as at 30 September 2019 | 102,758,001 | 147,871,831 | 0 | 80,423,161 | 48,369,931 | 379,422,924 |
13. Investment in subsidiaries
Investments in subsidiaries are eliminated from the Group's financial statements during consolidation.
| Petrol d.d. | |||
|---|---|---|---|
| (in EUR) | 2019 | 2018 | |
| As at 1 January | 326,416,061 | 329,225,470 | |
| New acquisitions | 16,080,022 | 20,041,749 | |
| Merger by absorption | 0 | (17,052,850) | |
| As at 30 September | 342,496,083 | 332,214,369 |
Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2019
14. Investments in jointly controlled entities
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| As at 1 January | 1,774,437 | 1,755,182 | 1,347,380 | 1,219,000 |
| Attributed profit/loss | 132,970 | 193,861 | 0 | 0 |
| Dividends received | (150,000) | (387,654) | 0 | 0 |
| New acquisitions | 64,190 | 282,934 | 64,190 | 282,934 |
| Disposals | (1,077,833) | 0 | (986,000) | 0 |
| Foreign exchange differences | (14) | (23) | 0 | 0 |
| As at 30 September | 743,750 | 1,844,300 | 425,570 | 1,501,934 |
15. Investments in associates
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| As at 1 January | 50,917,836 | 62,444,322 | 27,364,454 | 21,726,406 |
| Attributed profit/loss | 575,878 | 560,242 | 0 | 0 |
| Dividends received | (1,204,194) | (1,914,725) | 0 | 0 |
| New acquisitions | 2,575,000 | 0 | 2,575,000 | 0 |
| Disposals | 0 | (11,277,500) | 0 | 0 |
| Foreign exchange differences | 4,553 | 0 | 0 | 0 |
| As at 30 September | 52,869,073 | 49,812,339 | 29,939,454 | 21,726,406 |
16. Financial assets at fair value through comprehensive income
| (in EUR) | The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | ||
| As at 1 January | 9,168,566 | 11,173,565 | 1,374,993 | 1,689,491 | |
| New acquisitions | 0 | 418,065 | 0 | 418,065 | |
| Disposals | (5,142,534) | (314,497) | (104,497) | (314,497) | |
| Impairment | 0 | (418,065) | 0 | (418,065) | |
| Disposals | (344,463) | 0 | 0 | 0 | |
| Foreign exchange differences | 104,497 | 0 | 104,497 | 0 | |
| As at 30 September | 3,786,066 | 10,859,066 | 1,374,993 | 1,374,993 |
17. Inventories
| The Petrol Group | Petrol d.d. | ||||
|---|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | ||
| (in EUR) | 2019 | 2018 | 2019 | 2018 | |
| Spare parts and materials inventories | 3,232,961 | 2,239,389 | 2,764,370 | 1,741,223 | |
| Merchandise: | 160,151,855 | 136,210,314 | 109,172,902 | 99,695,522 | |
| - fuel | 102,860,590 | 85,266,737 | 81,183,687 | 66,739,475 | |
| - other petroleum products | 866,068 | 5,361,863 | 78,719 | 4,639,806 | |
| - other mercandise | 56,425,197 | 45,581,714 | 27,910,496 | 28,316,241 | |
| Total inventories | 163,384,816 | 138,449,703 | 111,937,272 | 101,436,745 |
18. Current financial receivables
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Loans granted | 10,238,151 | 11,621,027 | 16,610,217 | 16,629,949 |
| Adjustment to the value of loans granted | (2,393,538) | (3,138,789) | 0 | (6,762,852) |
| Time deposits with banks (3 months to 1 year) | 183,990 | 183,995 | 0 | 0 |
| Interest receivables | 1,420,655 | 1,317,478 | 5,741,766 | 5,056,199 |
| Allowance for interest receivables | (1,399,080) | (1,286,215) | (5,308,637) | (4,717,394) |
| Total current financial receivables | 8,050,178 | 8,697,496 | 17,043,346 | 10,205,902 |
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 53/64
19. Current operating receivables
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Trade receivables | 477,825,116 | 569,041,841 | 339,155,735 | 415,151,223 |
| Allowance for trade receivables | (54,113,794) | (55,253,217) | (34,821,763) | (34,377,869) |
| Operating receivables from state and other institutions | 7,658,277 | 9,983,836 | 183,802 | 339,968 |
| Operating interest receivables | 2,508,110 | 5,251,106 | 3,681,752 | 6,188,670 |
| Allowance for interest receivables | (1,886,900) | (2,726,493) | (1,839,486) | (2,704,962) |
| Receivables from insurance companies (loss events) | 307,359 | 324,323 | 163,491 | 92,276 |
| Other operating receivables | 12,159,594 | 5,440,318 | 5,342,034 | 4,026,144 |
| Allowance for other receivables | (406,365) | (384,365) | (22,000) | 0 |
| Total current operating receivables | 444,051,397 | 531,677,349 | 311,843,565 | 388,715,450 |
20. Financial assets at fair value through profit or loss
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Assets arising from commodity swaps | 125,107 | 2,382,203 | 125,107 | 2,382,203 |
| Assets arising from forward contracts | 1,641,952 | 244,287 | 1,641,952 | 244,287 |
| Total financial assets at fair value through profit or loss | 1,767,059 | 2,626,490 | 1,767,059 | 2,626,490 |
21. Prepayments and other assets
| Petrol d.d. | ||
|---|---|---|
| 30 September | 31 December | |
| 2019 | 2018 | |
| 26,814,626 | 30,840,437 | |
| 1,041,853 | 1,430,733 | |
| 367,977 | 359,659 | |
| 1,967,510 | 1,146,777 | |
| 30,191,966 | 33,777,606 | |
| 31 December 2018 39,748,406 1,555,820 555,305 8,210,970 50,070,501 |
22. Financial liabilities
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Current financial liabilities | ||||
| Bank loans | 66,698,910 | 402,394 | 64,471,032 | 296,625 |
| Liabilities to banks arising from interest rate swaps | 7,190,666 | 2,867,337 | 6,760,512 | 2,710,325 |
| Liabilities to banks arising from commodity swaps | 1,076,849 | 0 | 1,076,849 | 0 |
| Liabilities to banks arising from forward contracts | 4,479 | 616,807 | 4,479 | 616,807 |
| Bonds issued | 124,895 | 206,857,478 | 124,895 | 206,857,478 |
| Other liabilities arising from financial instruments | 0 | 0 | 2,568,846 | 2,568,846 |
| Other loans and financial liabilities | 229,377 | 1,606,196 | 91,766,363 | 89,689,238 |
| 75,325,176 | 212,350,212 | 166,772,976 | 302,739,319 | |
| Non-current financial liabilities | ||||
| Bank loans | 250,315,092 | 100,718,823 | 199,693,068 | 49,673,683 |
| Bonds issued | 43,792,448 | 43,786,793 | 43,792,448 | 43,786,793 |
| Loans obtained from other companies | 0 | 0 | 43,000,000 | 28,000,000 |
| 294,107,540 | 144,505,616 | 286,485,516 | 121,460,476 | |
| Total financial liabilities | 369,432,716 | 356,855,828 | 453,258,492 | 424,199,795 |
23. Current operating liabilities
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Trade liabilities | 363,985,418 | 407,201,206 | 301,623,482 | 346,793,608 |
| Excise duty liabilities | 63,939,615 | 57,636,007 | 56,656,166 | 51,082,952 |
| Value added tax liabilities | 34,217,669 | 31,793,780 | 21,162,298 | 12,741,461 |
| Liabilities to employees | 10,906,376 | 10,108,460 | 8,928,424 | 8,688,969 |
| Environment pollution charge liabilities | 10,669,601 | 8,975,111 | 10,457,263 | 8,611,245 |
| Other liabilities to the state and other state institutions | 2,781,353 | 2,240,534 | 835,017 | 383,722 |
| Import duty liabilities | 2,000,881 | 1,709,763 | 0 | 0 |
| Social security contribution liabilities | 898,718 | 767,499 | 711,234 | 677,781 |
| Liabilities arising from interests acquired | 810,000 | 810,000 | 560,000 | 560,000 |
| Liabilities associated with the allocation of profit or loss | 624,939 | 625,605 | 624,939 | 625,605 |
| Other liabilities | 6,960,553 | 1,990,744 | 1,413,142 | 1,503,573 |
| Total current operating and other liabilities | 497,795,123 | 523,858,709 | 402,971,965 | 431,668,916 |
24. Other liabilities
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Accrued annual leave expenses | 2,695,079 | 2,687,064 | 1,870,638 | 1,870,638 |
| Accrued expenses for tanker demurrage | 569,653 | 477,282 | 550,132 | 477,282 |
| Accrued concession fee costs | 70,480 | 188,282 | 70,480 | 186,738 |
| Accrued motorway site lease payments | 137,978 | 109,149 | 137,978 | 109,149 |
| Other accrued costs | 12,151,347 | 17,982,282 | 4,784,010 | 3,385,600 |
| Other deferred revenue | 1,664,696 | 3,395,997 | 1,525,260 | 3,249,361 |
| Total other liabilities | 17,289,233 | 24,840,056 | 8,938,498 | 9,278,768 |
25. Financial instruments and risks
This chapter presents disclosures about financial instruments and risks. Risk management is explained in the interim report, in the chapter Risk management.
Credit risk
The Group/Company continued to actively monitor the balances of trade receivables and to apply strict terms on which sales on open account are approved, requiring an adequate range of high-quality collaterals.
Maximum exposure to credit risk represents the carrying amount of financial assets which was the following as at 30 September 2019:
Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2019
| The Petrol Group Petrol d.d. |
||||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Financial assets at fair value through other comprehensive income | 3,786,066 | 9,168,566 | 1,374,993 | 1,374,993 |
| Non-current financial receivables | 2,042,616 | 1,466,432 | 13,343,328 | 13,605,479 |
| Non-current operating receivables | 7,556,566 | 6,737,751 | 7,535,214 | 6,715,315 |
| Current financial receivables | 8,050,178 | 8,697,496 | 17,043,346 | 10,205,902 |
| Current operating receivables (excluding receivables from the state) | 436,393,120 | 521,693,513 | 311,659,763 | 388,375,482 |
| Financial assets at fair value through profit or loss | 1,767,059 | 2,626,490 | 1,767,059 | 2,626,490 |
| Cash and cash equivalents | 99,558,909 | 58,740,743 | 68,550,698 | 28,986,973 |
| Total assets | 559,154,514 | 609,130,991 | 421,274,401 | 451,890,634 |
The category that was most exposed to credit risk on the reporting date were current operating receivables.
The Group's short-term operating receivables by maturity:
| Breakdown by maturity | |||||||
|---|---|---|---|---|---|---|---|
| Up to 30 days | 31 to 60 days | 61 to 90 days | More than 90 | ||||
| (in EUR) | Not yet due | overdue | overdue | overdue | days overdue | Total | |
| Trade receivables | 467,697,073 | 31,379,210 | 8,446,834 | 1,198,627 | 5,066,880 | 513,788,624 | |
| Interest receivables | 2,245,808 | 178,708 | 25,851 | 10,926 | 63,320 | 2,524,613 | |
| Other receivables (excluding receivables from the state) | 5,320,690 | 16,822 | 16,559 | 10,825 | 15,380 | 5,380,276 | |
| Total as at 31 December 2018 | 475,263,571 | 31,574,740 | 8,489,244 | 1,220,378 | 5,145,580 | 521,693,513 | |
| Breakdown by maturity | |||||||
| Up to 30 days | 31 to 60 days | 61 to 90 days | More than 90 | ||||
| (in EUR) | Not yet due | overdue | overdue | overdue | days overdue | Total | |
| Trade receivables | 382,040,206 | 27,654,987 | 9,571,182 | 2,151,672 | 2,293,275 | 423,711,322 | |
| Interest receivables | 61,887 | 40,109 | 19,190 | 7,017 | 493,007 | 621,210 | |
| Other receivables (excluding receivables from the state) | 10,180,324 | 380,437 | 47,179 | 4,762 | 1,447,886 | 12,060,588 | |
| Total as at 30 September 2019 | 392,282,417 | 28,075,533 | 9,637,551 | 2,163,451 | 4,234,168 | 436,393,120 |
The Company's short-term operating receivables by maturity:
| Breakdown by maturity | |||||||
|---|---|---|---|---|---|---|---|
| Up to 30 days | 31 to 60 days | 61 to 90 days | More than 90 | ||||
| (in EUR) | Not yet due | overdue | overdue | overdue | days overdue | Total | |
| Trade receivables | 344,367,890 | 20,474,089 | 7,127,831 | 622,434 | 8,181,110 | 380,773,354 | |
| Interest receivables | 1,930,051 | 160,590 | 11,378 | 0 | 1,381,689 | 3,483,708 | |
| Other receivables (excluding receivables from the state) | 4,118,420 | 0 | 0 | 0 | 0 | 4,118,420 | |
| Total as at 31 December 2018 | 350,416,361 | 20,634,679 | 7,139,209 | 622,434 | 9,562,799 | 388,375,482 | |
| Breakdown by maturity | |||||||
| Up to 30 days | 31 to 60 days | 61 to 90 days | More than 90 | ||||
| (in EUR) | Not yet due | overdue | overdue | overdue | days overdue | Total | |
| Trade receivables | 266,198,086 | 21,152,361 | 6,566,780 | 1,750,103 | 8,666,642 | 304,333,972 | |
| Interest receivables | 0 | 0 | 0 | 0 | 1,842,266 | 1,842,266 | |
| Other receivables (excluding receivables from the state) | 3,504,106 | 518,535 | 28,327 | 310 | 1,432,247 | 5,483,525 | |
| Total as at 30 September 2019 | 269,702,192 | 21,670,896 | 6,595,107 | 1,750,413 | 11,941,155 | 311,659,763 |
The Group/Company measures the degree of receivables management using day's sales outstanding:
| 1-9 2019 1-12 2018 |
|---|
| 28 |
| 7 |
| 35 |
| 27 7 34 |
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 56/64
Liquidity risk
The Group/Company successfully manages liquidity risks according to Standard & Poor's guidelines.
The Group/Company manages liquidity risks through:
- deleveraging (measured as the net debt to EBITDA ratio) as laid down in the strategy and business plan;
- ensuring adequate structural liquidity in accordance with S&P methodology;
- standardised and centralised treasury management at Group level;
- annual planning of funds by the Petrol Group as well as monthly and daily planning cash flows;
- unified approach to banks in Slovenia and abroad;
- computer-assisted system for the management of cash flows of the parent company and its subsidiaries;
- centralised collection of available cash through cash pooling.
Nearly half of the Group's/Company's total cash inflow is generated through its retail network in which cash and payment cards are used as the means of payment. This ensures regular daily inflows and mitigates liquidity risks.
In addition, the Group/Company has credit lines at its disposal both in Slovenia and abroad, the size of which enables the Group to meet all its due liabilities at any given moment.
In the first nine months of 2019 the Group/Company again focused strongly on the planning of cash flows. Successful planning of cash flows enabled it to anticipate any liquidity surpluses or shortages in time and manage them optimally.
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.
The Group's liabilities as at 31 December 2018 by maturity:
| Contractual cash flows | |||||||
|---|---|---|---|---|---|---|---|
| (in EUR) | Carrying amount of liabilities |
Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
|
| Non-current financial liabilities Non-current operating liabilities (excluding other liabilities) Current financial liabilities Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) |
144,529,723 24,000 212,350,212 410,627,555 |
149,961,322 24,000 217,733,091 410,627,555 |
0 0 217,369,377 410,284,870 |
0 0 363,714 342,685 |
104,211,813 24,000 0 0 |
45,749,509 0 0 0 |
|
| As at 31 December 2018 | 767,531,490 | 778,345,968 | 627,654,247 | 706,399 | 104,235,813 | 45,749,509 |
The Group's liabilities as at 30 September 2019 by maturity:
| Contractual cash flows | ||||||
|---|---|---|---|---|---|---|
| (in EUR) | Carrying amount of liabilities |
Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
| Non-current financial liabilities | 294,107,540 | 301,348,526 | 0 | 0 | 289,272,684 | 12,075,842 |
| Long term lease liabilities | 68,129,474 | 68,129,474 | 0 | 0 | 28,789,579 | 39,339,895 |
| Non-current operating liabilities (excluding other liabilities) | 24,000 | 24,000 | 0 | 0 | 24,000 | 0 |
| Current financial liabilities | 75,325,176 | 78,373,414 | 76,702,204 | 1,671,210 | 0 | 0 |
| Current lease liabilities | 8,231,560 | 8,231,560 | 4,165,835 | 4,065,725 | 0 | 0 |
| Current operating liabilities (excluding liabilities to the state, | ||||||
| employees and arising from advance payments) | 372,380,910 | 372,380,910 | 371,575,315 | 805,595 | 0 | 0 |
| As at 30 September 2019 | 818,198,660 | 828,487,884 | 452,443,354 | 6,542,530 | 318,086,263 | 51,415,737 |
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 57/64
The Company's liabilities as at 31 December 2018 by maturity:
| Contractual cash flows | ||||||
|---|---|---|---|---|---|---|
| (in EUR) | Carrying amount of liabilities |
Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
| Non-current financial liabilities | 121,460,476 | 125,602,672 | 0 | 0 | 80,843,765 | 44,758,907 |
| Non-current operating liabilities (excluding other liabilities) | 24,000 | 24,000 | 0 | 0 | 24,000 | 0 |
| Current financial liabilities | 302,739,319 | 307,802,934 | 253,437,324 | 54,365,611 | 0 | 0 |
| Current operating liabilities (excluding liabilities to the state, | ||||||
| employees and arising from advance payments) | 349,482,786 | 349,482,786 | 349,417,777 | 65,009 | 0 | 0 |
| As at 31 December 2018 | 773,706,581 | 782,912,392 | 602,855,101 | 54,430,620 | 80,867,765 | 44,758,907 |
The Company's liabilities as at 30 September 2019 by maturity:
| Contractual cash flows | ||||||
|---|---|---|---|---|---|---|
| (in EUR) | Carrying amount of liabilities |
Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | More than 5 years |
| Non-current financial liabilities | 286,485,516 | 293,082,683 | 0 | 0 | 281,669,505 | 11,413,178 |
| Long term lease liabilities | 35,532,082 | 35,532,082 | 0 | 0 | 8,700,781 | 26,831,301 |
| Non-current operating liabilities (excluding other liabilities) | 24,000 | 24,000 | 0 | 0 | 24,000 | 0 |
| Current financial liabilities | 166,772,976 | 169,124,478 | 136,757,280 | 32,367,198 | 0 | 0 |
| Current lease liabilities Current operating liabilities (excluding liabilities to the state, |
3,424,066 | 3,424,066 | 1,737,380 | 1,686,686 | 0 | 0 |
| employees and arising from advance payments) | 304,221,560 | 304,221,560 | 303,821,742 | 399,818 | 0 | 0 |
| As at 30 September 2019 | 796,460,200 | 805,408,869 | 442,316,402 | 34,453,702 | 290,394,286 | 38,244,479 |
Foreign exchange risk
As far as foreign exchange risks are concerned, the Group/Company is mostly exposed to the risk of changes in the EUR/USD exchange rate. Petroleum products are generally purchased in US dollars and sold in local currencies. For government-regulated fuels, hedging is performed in accordance with the Group's foreign exchange risk management policies prepared on the basis of the Decree Setting Prices for certain Petroleum Products, whereas for fuels with market-determined prices, internal Rules on the Pricing of Mineral Fuels are used. Foreign exchange hedging is used to hedge against the exposure to changes in the EUR/USD exchange rate. The EUR/USD exchange rate is thus fixed at the rate recognised under the Decree on Setting Prices for Certain Petroleum Products and the internal rules, and the margin is secured. The hedging instruments used in this case are forward contracts entered into with banks.
Given that forward contracts for hedging against foreign exchange risks are entered into with first-class Slovene banks, the Group/Company considers the counterparty default risk as minimal.
The Group is exposed to foreign exchange risks also due to its presence in South-eastern Europe. Considering the low volatility of local currency exchange rates in South-eastern 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 the first nine months of 2019, the Group/Company was also exposed to certain other currencies (RON, HUF), which were hedged using derivative financial instruments. The Group/Company regularly monitors its open currency position and sensitivity based on the VaR method for all currencies to which it is exposed.
Exposure to the exchange rates on other markets where the Group/Company is present with its companies is either smaller or their rates against the euro are significantly less volatile. We estimate that the change in the exchange rate would not have a significant impact on the operating profit.
Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 58/64
Price and volumetric risk
The Group/Company is exposed to price and volumetric risks deriving from energy commodities. The Group/Company manages price and volumetric risks primarily by aligning purchases and sales of energy commodities in terms of quantities as well as purchase and sales conditions, thus securing its margin. Potential residual mismatches are hedged with derivative financial instruments. Depending on the business model for each energy commodity, appropriate limit systems are in place that limit exposure to price and volumetric risks.
The Group/Company hedges energy commodity prices primarily by using commodity swaps (variable to fixed price swap). Partners in this area include global financial institutions and banks or suppliers of goods. The Group/Company considers the counterparty default risk as minimal.
Interest rate risk
The source of interest rate risks are loans with a floating interest rate that are mostly Euribor based.
In the first nine months of 2019, the Group/Company continued to monitor the limit corresponding to changes in net interest expense.
The exposure to interest rate risks is hedged using the following instruments:
- partly through ongoing operations, the Group's/Company's interest rate on operating receivables being Euribor-based,
- interest rate swaps and
- funding with a fixed interest rate.
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.
Capital Adequacy Management
The main purpose of capital adequacy management is to ensure the best possible financial stability, solvency and maximum shareholder value. The Group/Company achieves this also through stable dividend pay-out policy.
We also prove our financial stability with our S&P BBB- rating acquired in 2014. On 10 October 2019, Standard & Poor's Ratings Services reaffirmed the »BBB-« long-term credit rating and the »A-3« short-term credit rating of Petrol d.d., Ljubljana, also reaffirming the »stable« credit rating outlook.
In the first nine months of 2019 the Petrol Group continued to pursue its strategic orientation to drive down financial debt to levels outlined in the strategic plan.
Carrying amount and fair value of financial instruments
| The Petrol Group | ||||||
|---|---|---|---|---|---|---|
| 30 September 2019 | 31 December 2018 | |||||
| (in EUR) | Carrying amount | Fair value Carrying amount | Fair value | |||
| Non-derivative financial assets at fair value | ||||||
| Financial assets at fair value through other comprehensive income Non-derivative financial assets at amortised cost |
3,786,066 | 3,786,066 | 9,168,566 | 9,168,566 | ||
| Financial receivables (excluding derivative financial instruments) | 10,092,794 | 10,092,794 | 10,163,928 | 10,163,928 | ||
| Operating receivables (excluding receivables from the state) | 443,949,686 | 443,949,686 | 528,431,264 | 528,431,264 | ||
| Cash and cash equivalents | 99,558,909 | 99,558,909 | 58,740,743 | 58,740,743 | ||
| Total non-derivative financial assets | 557,387,455 | 557,387,455 | 606,504,501 | 606,504,501 | ||
| Non-derivative financial liabilities at amortised cost | ||||||
| Bank loans and other financial liabilities (excluding derivative fin.instr.) | (361,160,722) | (361,160,722) | (353,395,791) | (353,395,791) | ||
| Lease liabilities | (76,361,034) | (76,361,034) | 0 | 0 | ||
| Operating liabilities (excluding other non-current liabilities and current | ||||||
| liabilities to the state, employees and arising from advance payments) | (372,404,910) | (372,404,910) | (410,651,555) | (410,651,555) | ||
| Total non-derivative financial liabilities | (809,926,666) | (809,926,666) | (764,047,346) | (764,047,346) | ||
| Derivative financial instruments at fair value | ||||||
| Derivative financial instruments (assets) Derivative financial instruments (liabilities) |
1,767,059 (8,271,994) |
1,767,059 (8,271,994) |
2,626,490 (3,484,144) |
2,626,490 (3,484,144) |
||
| Total derivative financial instruments | (6,504,935) | (6,504,935) | (857,654) | (857,654) | ||
| Petrol d.d. | ||||||
| 30 September 2019 | 31 December 2018 | |||||
| (in EUR) | Carrying amount | Fair value Carrying amount | Fair value | |||
| Non-derivative financial assets at fair value | ||||||
| Financial assets at fair value through other comprehensive income | 1,374,993 | 1,374,993 | 1,374,993 | 1,374,993 | ||
| Non-derivative financial assets at amortised cost Financial receivables (excluding derivative financial instruments) |
30,386,674 | 30,386,674 | 23,811,381 | 23,811,381 | ||
| Operating receivables (excluding receivables from the state) | 319,194,977 | 319,194,977 | 395,090,797 | 395,090,797 | ||
| Cash and cash equivalents | 68,550,698 | 68,550,698 | 28,986,973 | 28,986,973 | ||
| Total non-derivative financial assets | 419,507,342 | 419,507,342 | 449,264,144 | 449,264,144 | ||
| Non-derivative financial liabilities at amortised cost | ||||||
| Bank loans and other financial liabilities (excluding derivative fin.instr.) | (442,847,806) | (442,847,806) | (418,303,817) | (418,303,817) | ||
| Lease liabilities | (38,956,148) | (38,956,148) | 0 | 0 | ||
| Operating liabilities (excluding other non-current liabilities and current liabilities to the state, employees and arising from advance payments) |
(304,245,563) | (304,245,563) | (349,506,786) | (349,506,786) | ||
| Total non-derivative financial liabilities | (786,049,517) | (786,049,517) | (767,810,603) | (767,810,603) | ||
| Derivative financial instruments at fair value | ||||||
| Derivative financial instruments (assets) | 1,767,059 | 1,767,059 | 2,626,490 | 2,626,490 | ||
| Derivative financial instruments (liabilities) Total derivative financial instruments |
(10,410,686) (8,643,627) |
(10,410,686) (8,643,627) |
(5,895,978) (3,269,488) |
(5,895,978) (3,269,488) |
Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2019
26. Related party transactions
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| (in EUR) | 1-9 2019 | 1-9 2018 | 1-9 2019 | 1-9 2018 |
| Sales revenue: Subsidiaries Jointly controlled entities Associates |
- 587,868 15,996 |
- 954,108 228,642 |
247,955,331 32,407 15,996 |
245,456,114 66,082 228,642 |
| Cost of goods sold: Subsidiaries Jointly controlled entities |
- 145,817 |
- 271,310 |
30,416,451 0 |
53,852,104 0 |
| Cost of materials: Subsidiaries Jointly controlled entities |
- 2,505 |
- 3,041 |
178,864 1,191 |
532,883 1,306 |
| Cost of services: Subsidiaries |
- | - | 564,763 | 1,172,544 |
| Other costs: Subsidiaries |
- | - | 0 | 5,001 |
| Finance income from interests in Group companies: Subsidiaries Jointly controlled entities Associates |
- 132,970 575,878 |
- 193,861 560,242 |
756,521 150,000 1,204,194 |
1,715,262 387,654 1,637,467 |
| Finance income from interest: Subsidiaries Jointly controlled entities Associates |
- 641 12 |
- 0 0 |
225,927 641 12 |
357,839 0 0 |
| Gain of derivatives: Subsidiaries |
- | - | 678,681 | 694,568 |
| Other finance income: Subsidiaries Associates |
- 1,335 |
- 2,267 |
134,854 1,335 |
139,469 2,267 |
| Finance expenses for interest: Subsidiaries Jointly controlled entities |
- 108 |
- 236 |
700,968 108 |
542,616 236 |
| Loss on derivatives: Subsidiaries |
- | - | 966,777 | 126,032 |
| Allowance for operating receivables: Jointly controlled entities |
411,000 | 0 | 411,000 | 0 |
Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2019
| The Petrol Group | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Investments in Group companies: | ||||
| Subsidiaries | - | - | 342,496,083 | 326,416,061 |
| Jointly controlled entities | 743,750 | 1,774,437 | 425,570 | 1,347,380 |
| Associates | 52,869,073 | 50,917,836 | 29,939,454 | 27,364,454 |
| Non-current financial receivables: | ||||
| Subsidiaries | - | - | 12,208,918 | 12,070,000 |
| Jointly controlled entities | 900,500 | 428,994 | 1,055,500 | 583,994 |
| Current operating receivables: | ||||
| Subsidiaries | - | - | 1,304,602 | 0 |
| Current operating receivables: | ||||
| Subsidiaries | - | - | 25,161,772 | 28,862,210 |
| Jointly controlled entities | 467,887 | 535,081 | 419,342 | 373,664 |
| Associates | 456 | 29,341 | 456 | 29,341 |
| Current financial receivables: | ||||
| Subsidiaries | - | - | 15,686,277 | 9,472,676 |
| Jointly controlled entities | 200,641 | 486,006 | 200,641 | 486,006 |
| Non-current financial liabilities: | ||||
| Subsidiaries | - | - | 43,000,000 | 28,000,000 |
| Current financial liabilities: Subsidiaries |
- | - | 94,118,930 | 90,769,896 |
| Jointly controlled entities | 125,012 | 1,396,922 | 125,012 | 1,396,922 |
| Current operating liabilities: | ||||
| Subsidiaries | - | - | 2,638,748 | 9,607,492 |
| Jointly controlled entities | 26,965 | 25,659 | 1,074 | 342 |
| Current accrued costs and expenses: | ||||
| Subsidiaries | - | - | 353,200 | 0 |
| Current accrued costs and expenses: | ||||
| Subsidiaries | - | - | 1,675 | 0 |
27. Contingent liabilities
Contingent liabilities for guarantees issued
| Petrol d.d. | Petrol d.d. | |||
|---|---|---|---|---|
| 30 September | 31 December | 30 September | 31 December | |
| (in EUR) | 2019 | 2018 | 2019 | 2018 |
| Guarantee issued to: | Value of guarantee issued | Guarantee amount used | ||
| Petrol d.o.o. | 109,641,074 | 120,910,250 | 78,316,015 | 71,860,596 |
| Geoplin d.o.o. Ljubljana | 28,000,000 | 28,000,000 | 6,802,853 | 6,680,330 |
| Petrol d.o.o. Beograd | 7,704,586 | 8,087,219 | 370,533 | 1,082,199 |
| Petrol BH Oil Company d.o.o. Sarajevo | 6,766,948 | 7,613,560 | 138,060 | 243,673 |
| Petrol Trade Handelsgesellschaft m.b.H. | 3,000,000 | 3,000,000 | 1,800,000 | 1,800,000 |
| Petrol Crna Gora MNE d.o.o. | 2,630,000 | 3,630,000 | 295,278 | 225,171 |
| Aquasystems d.o.o. | 911,309 | 911,309 | 911,309 | 911,309 |
| Petrol - Energetika Dooel Skopje | 0 | 1,000,000 | 0 | 0 |
| Petrol Oti Slovenia LLC | 0 | 500,000 | 0 | 181,895 |
| Total | 158,653,917 | 173,652,338 | 88,634,048 | 82,985,173 |
| Other guarantees | 14,243,353 | 14,134,206 | 14,243,353 | 14,134,206 |
| Bills of exchange issued as security | 5,521,016 | 5,453,593 | 5,521,016 | 5,453,593 |
| Total contingent liabilities for guarantees issued | 178,418,286 | 193,240,137 | 108,398,416 | 102,572,972 |
The value of a guarantee issued represents the maximum value of the guarantee issued, whereas the guarantee amount used represents a value corresponding to a company's liability for which the guarantee has been issued.
Contingent liabilities for lawsuits
The total value of lawsuits against the Company as defendant and debtor totals EUR 33,400,775. 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, which stood at EUR 10,399,148 as at 30 September 2019.
The total value of lawsuits against the Group as defendant and debtor totals EUR 33,878,705. The Group's management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Group set aside long-term provisions, which stood at EUR 10,623,429 as at 30 September 2019.
28. Events after the reporting date
There were no events after the reporting date that would significantly affect the financial statements for the first nine months of year 2019.
APPENDIX 1: ORGANISATIONAL STRUCTURE OF THE PETROL GROUP
| The Petrol Gropup as at 30 September 2019 | SALES | ENERGY AND ENVIRONMENTAL SOLUTIONS |
PRODUCTION OF RENEWABLE ELECTRICITY |
|---|---|---|---|
| The parent company | |||
| PETROL d.d., LJUBLJANA | | | |
| Subsisdiaries | |||
| 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 CRNA GORA MNE d.o.o. (100%) | | ||
| PETROL TRADE HANDELSGES.m.b.H. (100%) | | ||
| BEOGAS d.o.o. (100 %) | | | |
| | |||
| PETROL LPG d.o.o. Beograd (51%) | | ||
| TIGAR PETROL d.o.o. (100%) | | ||
| PETROL LPG HIB d.o.o. (100%) INTRADE ENERGIJA d.o.o. Sarajevo (99.7518%) |
| ||
| | |||
| PETROL-ENERGETIKA DOOEL Skopje (100%) | | ||
| PETROL BUCHAREST ROM S.R.L. (100%) | | ||
| PETROL PRAHA CZ S.R.O. (100%) | | ||
| PETROL TRADE SLOVENIJA L.L.C. (100%) | | ||
| PETROL HIDROENERGIJA d.o.o. Teslić (80%) | |||
| VJETROELEKTRANE GLUNČA d.o.o. (100%) | | ||
| IG ENERGETSKI SISTEMI d.o.o. (100%) | | ||
| PETROL GEO d.o.o. (100%) | | ||
| EKOEN d.o.o. (100%) | | ||
| EKOEN GG d.o.o. (100%) | | ||
| EKOEN S d.o.o. (100 %) | | ||
| ZAGORSKI METALAC d.o.o. (56%) | | ||
| MBILLS d.o.o. (91.06%) | | ||
| GEOPLIN d.o.o. Ljubljana (74.28%) | | ||
| GEOCOM d.o.o. (100%) | | ||
| GEOPLIN D.O.O., Zagreb (100%) | | ||
| GEOPLIN D.O.O. Beograd (100%) | | ||
| ZAGORSKI METALAC d.o.o. (25%) | | ||
| Jointly controlled entities | |||
| PETROL OTI SLOVENIJA L.L.C. (51%) | | ||
| PETROL - OTI - TERMINAL L.L.C. (100%) | | ||
| GEOENERGO d.o.o. (50%) | | ||
| VJETROELEKTRANA DAZLINA d.o.o. (50%) | | ||
| VJETROELEKTRANA LJUBAČ d.o.o. (50%) | | ||
| SOENERGETIKA d.o.o. (25%) | | ||
| Associates | |||
| PLINHOLD d.o.o. Ljubljana (29.6985%) | | ||
| AQUASYSTEMS d.o.o. (26%) | | ||
| IVICOM ENERGY d.o.o., Žagubica (25%) | |