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ANNUAL
REPORT
of the Petrol
Group and
Petrol d.d.,
Ljubljana,
2023
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
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Petrol, Slovenska energetska družba, d.d., Ljubljana
Dunajska cesta 50, 1000 Ljubljana
Registration number: 5025796000
Companies Register entry: District Court of Ljubljana, entry number: 1/05773/00
Share capital: EUR 52,240,977.04
VAT ID: SI80267432
Telephone: +386 (0)1 47 14 232
www.petrol.eu, www.petrol.si
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TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 5
1. Business highlights of 2023 ................................................................................................6
2. Letter from the President of the Management Board ..........................................................8
3. Statement of the Management’s responsibility .................................................................. 12
4. Report of the Supervisory Board....................................................................................... 13
5. The Petrol Group in the region ......................................................................................... 17
BUSINESS REPORT ........................................................................................................... 18
6. Strategic orientation.......................................................................................................... 19
7. Plans for 2024 .................................................................................................................. 22
8. Corporate Governance Statement .................................................................................... 25
9. Non-financial statement .................................................................................................... 46
10. Performance analysis of the Petrol Group 2023 ............................................................. 73
11. Alternative performance measures ................................................................................. 93
12. Events after the end of the accounting period ................................................................. 94
13. Risk management .......................................................................................................... 95
14. Operations by product groups ...................................................................................... 107
15. Investments .................................................................................................................. 129
16. Share and ownership structure ..................................................................................... 132
17. Internal Audit ................................................................................................................ 138
18. Information technology ................................................................................................. 140
SUSTAINABLE DEVELOPMENT ...................................................................................... 143
19. Strategic orientations and goals for the sustainable development of the Petrol Group .. 144
20. Responsibility towards employees ................................................................................ 147
21. Responsibility towards customers ................................................................................. 154
22. Responsibility to the natural environment ..................................................................... 162
23. Quality control .............................................................................................................. 165
24. Social responsibility ...................................................................................................... 167
THE PETROL GROUP ....................................................................................................... 170
25. Companies in the Petrol Group .................................................................................... 171
26. The parent company ..................................................................................................... 172
27. Subsidiaries .................................................................................................................. 174
28. Jointly controlled entities .............................................................................................. 182
29. Associates .................................................................................................................... 182
FINANCIAL REPORT ........................................................................................................ 183
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INTRODUCTION
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1. Business highlights of 2023
The Petrol Group Unit 2021 2022 2023
Index
2023 / 2022
Index
2023 / 2021
Revenue from contracts with customers EUR million 4,960.1 9,456.7 6,982.7 74 141
Gross profit
1
EUR million 543.4 393.4 677.6 172 125
Gross profit
+ Net Derivative Financial Instruments
1
EUR million 577.6 357.8 730.8 204 127
Operating profit EUR million 151.1 -7.9 180.2 - 119
Net profit EUR million 124.5 -2.7 136.6 - 110
Equity EUR million 908.7 860.2 923.0 107 102
Total assets EUR million 2,403.8 2,740.6 2,635.3 96 110
EBITDA
1, 2
EUR million 238.1 96.3 277.1 288 116
EBITDA/Gross profit
1
% 43.8 24.5 40.9 167 93
EBITDA / (Gross profit
+ Net Derivative Financial
Instruments)
1
% 41.2 26.9 37.9 141 92
Operating costs/Gross profit
1
% 79.7 118.9 82.8 70 104
Operating costs / (Gross profit
+ Net Derivative Financial
Insruments)
1
% 75.0 130.8 76.8 59 102
Net debt/Equity
1
0.6 0.6 0.5 86 93
Net debt/EBITDA
1
2.1 5.4 1.7 32 81
Return on equity (ROE)
1
% 14.3 -0.3 15.3 - 107
Return on capital employed (ROCE)
1
% 10.8 -0.5 12.3 - 114
Added value per employee
1
EUR thousand 70.3 41.3 77.4 187 110
Earnings per share attributable to owners of the
controlling company
3
EUR 2.9 0.1 3.3 - 114
Share price as at last trading day of the year
3
EUR 25.4 20.0 23.3 117 92
Volume of fuels and petroleum products sold million tons 3.3 4.1 3.8 92 115
Volume of natural gas sold TWh 35.4 18.9 16.6 88 47
Volume of electricity sold TWh 13.8 12.0 12.8 106 93
Revenue from the sales of merchandise and services EUR million 469.5 520.1 571.2 110 122
1
Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
2
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
3
2021 - recalculated by taking into account the share split.
The Petrol Group Unit
31 December
2021
31 December
2022
31 December
2023
Index
2023 / 2022
Index
2023 / 2021
Number of employees 6,237 6,224 5,945 96 95
Number of service stations 593 594 594 100 100
Number of e-charging points operated by the Petrol Group 296 417 495 119 167
Number of electricity customers thousand 225 226 224 99 100
Number of natural gas customers (data for the Geoplin
Group are not included)
thousand 47 60 61 101 129
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EBITDA Net profit or loss
Net debt/EBITDA Structure of invested assets
Volumes of fuels and petroleum products sold Number of service stations
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2. Letter from the President of the Management Board
Dear shareholders, business partners and co-workers,
The Petrol Group was again faced with many challenges in 2023, but at the same time, it also
achieved important successes. As the economic growth slowed, we were faced with a loss of
purchasing power and the tightened financing conditions. Despite the inflation, energy price
regulation and geopolitical tensions, we stayed financially stable and continued expanding and
diversifying our activities as set out in our strategy for 2021–2025. The year 2023 was marked
by our continued commitment to the sustainable development and innovation and to providing
our customers with an excellent customer experience.
Stability and growth
Although the prices of energy commodities started to drop at the end of 2022, the government
measures related to the regulation of energy prices stayed present throughout 2023, which
had a profound impact on our business results. The margin cap on certain petroleum products,
which entered into effect in November, is a special challenge for the Petrol Group, although
the previously capped margins had already been substantially lower than in the comparable
countries of Western Europe. If margins are too low, they do not enable covering for all costs
and they lower the investment capacity, especially concerning investments in energy transition
projects. Having said that, I believe it is important to point out that the energy transition is not
only Petrol’s strategic focus, but it is a broader social and political objective.
Regardless of the complexity and dynamics of the business environment, the Petrol Group
demonstrated its ability to adapt and grow and maintained its stability in 2023. We showed that
we are able not only to adapt to the volatile circumstances but also thrive in them. This way,
we have laid sound foundations for the preparation of the Petrol Group’s new strategy for
2025–2030.
In 2023, the Petrol Group generated sales revenue of EUR 7.0 billion, a year-on-year
decrease of 26 percent, especially because of the lower prices of fuels and other energy
commodities on spot and futures markets. The Petrol Group sold 3.8 tonnes of fuels, a
decrease of 8 percent compared to the year before, while the sales of merchandise and
services increased by 10 percent to EUR 571.2 million. We also sold 16.6 TWh of natural gas,
12.8 TWh of electricity, and 143.4 thousand MWh of heat. The gross profit in 2023 was EUR
677.6 million, an increase of 72 percent compared to 2022. Operating costs increased by 20
percent to EUR 561.3 million, mostly due to the higher labour costs and the higher costs of
materials. EBITDA was EUR 277.1 million in 2023, a year-on-year increase of EUR 180.8
million. In the EBITDA structure, the share of the Energy and Solutions product group has been
increasing, which is in line with the strategic commitment related to the transition from
traditional energy sources to cleaner renewable energy sources. The net profit in 2023 stood
at EUR 136.6 million.
We successfully continued to pursue our debt management strategy and reduced the net debt
below the level from 2021. All key indicators have stayed at acceptable levels, providing the
Group with financially stable foundations for future operations. In December 2023, S&P Global
Ratings reaffirmed Petrol d.d., Ljubljana’s long-term BBB- and short-term A-3 rating with a
stable outlook.
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Response to floods and support to communities
In August 2023, many parts of Slovenia, including our service stations and infrastructure, were
hit by devastating flooding. We immediately took action to help our employees and the
communities that were affected the most. In the spirit of solidarity, we provided electricity to
the affected households at a symbolic price until the end of 2023, which confirms our mission
to supply energy and support in difficult times.
Sustainability at the heart of our endeavours
Thanks to its sound financial basis, the Petrol Group is able to continue its path as the leading
player in the energy transition and prepare for the challenges and opportunities brought by the
future. In 2023, we earmarked EUR 82.9 million for net investments. Despite the challenges
brought by the energy crisis, energy transition and regulatory interventions and the uncertainty
regarding the reimbursement for the damage resulting from price regulation, which required
substantially decreasing CapEx in 2022, the Petrol Group successfully continued its key
development projects in 2023.
In the context of the strategic renovation of our sales network in Slovenia, two completely
reconstructed new-generation service stations stand out, namely Barje-North and Barje-South
on the Ljubljana ring road. In Croatia, we completed a comprehensive reconstruction of seven
service stations, constructed three replacement service stations, and newly built one service
station. We continued the Oil & Gas E2E supply chain digitalisation project which is aimed to
optimise logistics and will be completed in 2024. Furthermore, our investments have stayed
focused on renewable electricity generation. We completed the construction of one of the
largest solar power plants in the region which covers three locations surrounding our Ljubač
wind park in Croatia. We also continued developing the Dazlina wind power plant project. We
are connecting solar power plants to the grid in the context of the Petrol Green project; in
parallel, activities are in place to obtain documentation and the necessary licenses for the next
phase of the project in Slovenia and to expand to Croatia and Serbia. The Petrol Group’s
investment policy in 2024 will be focused on expanding its operations in the fields of renewable
electricity generation and the energy and environmental solutions, as well as on digitalisation.
Despite the limitations resulting from regulation, we plan to earmark EUR 130.0 million for
investments in 2024, of which 44 percent for energy transition projects.
Despite our commitment to, and progress made in, the green transition, we are faced with a
reality where our endeavours are limited by too low margins on petroleum products. The current
cap on margins in Slovenia does not enable covering for costs in fuel and petroleum product
operations and, as a result, does not allow us to adapt to the upcoming requirements of the
European Green Deal. In this context, we see market liberalisation as an adequate long-term
solution to the increasing needs for investments in a new, environmentally sustainable
business model. This is a path we cannot walk alone, and which requires understanding and
cooperation of all stakeholders – the government, business partners and each individual in our
community.
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Glance forward
At Petrol’s Management Board, we are proud of our team’s achievements in 2023 and we look
forward to the future with optimism. Our results and endeavours in the field of sustainability
represent a sound basis for further growth and development. Together with our team of nearly
six thousand employees, we are committed to staying the leading corporation in the SEE
region in the fields of the energy transition, innovation and customer satisfaction.
We expect to face new challenges, but also opportunities for growth in 2024. We are committed
to improving our key financial indicators, all the while staying committed to our vision to become
an integrated partner in the energy transition with an excellent customer experience. Together,
we will continue developing and implementing sustainable solutions which not only meet but
also exceed the expectations of our customers and the community. In the 2021–2025 strategic
period, which will end next year, we have set a target for EBITDA to amount to EUR 336 million
in 2025. This goal is ambitious, but achievable. We are starting to prepare a new strategy for
the period until 2030, which is planned to be presented to the Supervisory Board for
endorsement in the last quarter of 2024. In the new strategic period, we will continue to
consolidate our leading position in the energy transition of the region.
In 2023, the Petrol Group once again demonstrated its financial efficiency and performance,
resulting in a high shareholder return. The return per share, which reflects its value growth,
was 16.5 percent, by comparing the closing share price as at the end of 2023 and 2022.
Combined with a 7.5 percent dividend yield, the total return per share stood at 24 percent in
2023, which clearly points to strong confidence and satisfaction of our investors.
I would like to thank everyone for the support and trust you continue to show to the Petrol
Group. We will do our best to ensure that the Petrol’s share stays stable and reliable and an
attractive investment opportunity, and that Petrol stays an attractive, interesting and safe
employer, known for excellence in business partnerships and customer experience.
At this place, I would especially like to stress the invaluable contribution of each Petrol Group
employee. Dear colleagues, thank you all for your effort, devotion and commitment. You are
the heart of our success. Together, we have and will continue to build a future which will exceed
the expectations of our customers, partners and the community.
I am sure that together, we will stay on this path of success and growth, explore new
opportunities and continue making positive changes in the world around us.
Here is to our future, full of energy for life.
Sašo Berger
President of the Management Board
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HIGHLIGHTS:
• In 2023, the Petrol Group continued carrying out the activities related to the sustainable
development and energy transition, which reflects our commitment to the environmental
protection and energy transformation.
• The financial indicators and dividend yield point to a high financial performance and
attractiveness for investors.
• We responded to the August flooding by helping the affected employees and communities,
thereby demonstrating our corporate social responsibility and willingness to extend a
helping hand to those in need.
• We are about to start preparing the new strategy until 2030. In the new strategic period,
we will further consolidate our leading role in the energy transition of the region.
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3. Statement of the Management’s responsibility
Pursuant to Article 60a of the Companies Act, members of the Management Board and the
Supervisory Board of Petrol d.d., Ljubljana state that the Annual Report of the Petrol Group
and Petrol d.d., Ljubljana for the year 2023, including the corporate governance statement and
the non-financial statement, has been prepared and published in accordance with the
Companies Act, the Financial Instruments Market Act and the International Financial Reporting
Standards as adopted by the EU.
As provided in Article 110 of the Financial Instruments Market Act, members of the
Management Board of Petrol d.d., Ljubljana, comprising Sašo Berger, President of the
Management Board, Drago Kavšek, Member of the Management Board, Marko Ninčević,
Member of the Management Board, Jože Smolič, Member of the Management Board, Metod
Podkrižnik, Member of the Management Board and Zoran Gračner, Member of the
Management Board and Worker Director, declare that to their best knowledge and belief:
• the financial report of the Petrol Group and Petrol d.d., Ljubljana for the year 2023 has
been drawn up in accordance with the 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 year 2023 gives
a fair view of the development and results of the Company’s operations and its financial
position, including a description of the material risks that the company Petrol d.d., Ljubljana
and other consolidated companies are exposed to as a whole.
Sašo Berger Drago Kavšek
President of the Management Board Member of the Management Board
Marko Ninčević Jože Smolič
Member of the Management Board Member of the Management Board
Metod Podkrižnik Zoran Gračner
Member of the Management Board Member of the Management Board and
Worker Director
Ljubljana, 11 April 2024
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4. Report of the Supervisory Board
Composition of the Supervisory Board in 2023
The Supervisory Board of Petrol d.d., Ljubljana has worked in its current composition since 22
April 2021. In 2023, the Supervisory Board was composed of the President, Janez Žlak, the
Deputy President, Borut Vrviščar, and the Members Mladen Kaliterna, Alenka Urnaut, Mário
Selecký, Aleksander Zupančič, Robert Ravnikar, Marko Šavli and Alen Mihelčič. The
composition is diverse in terms of education, work experience and personality traits, all of
which allow for an effective professional complementarity in the exchange of views and
opinions.
In 2023, all the Supervisory Board members attended meetings regularly and virtually all
decisions were taken unanimously. The Supervisory Board members thoroughly prepared
themselves for the topics discussed, gave constructive proposals, and adopted decisions in
line with the Rules of Procedure, internal regulations and legal powers. The work of the
Supervisory Board was effectively supported by the proposals of both Supervisory Board
committees and their substantive input. The Supervisory Board kept stakeholders informed on
a regular basis.
The Supervisory Board held 22 meetings in 2023 (compared to 17 meetings in 2022, which
was a year of the energy crisis, the war in Ukraine and management of Geoplin’s operations).
Of these, 11 were scheduled in the 2023 financial calendar, which already included 4 additional
meetings due to the delayed endorsement of the 2023 business plan (the financial calendar
normally foresees 7 regular meetings per financial year). In addition to the 11 regular meetings
scheduled according to the financial calendar in 2023, the Supervisory Board held 11
extraordinary meetings, mainly to manage costs and stabilise the Company financially in the
light of the energy price regulation and its impact on the operations.
Throughout the year, the Supervisory Board regularly monitored the Petrol Group’s operations
and development in a challenging global and economic environment, focusing on the
identification and management of business risks that are important to the future success of the
Group’s business.
The Most Important Topics Discussed at the Supervisory Board Meetings in 2023
In January 2023, the Supervisory Board held four meetings to approve the 2023 business plan.
The Supervisory Board met in February 2023 to supervise the operations in January 2023.
In March 2023, the Supervisory Board held two meetings to approve the unaudited Report for
2022 and to monitor operations in February 2023.
In April 2023, the Supervisory Board approved the audited Annual Report of the Petrol Group
and Petrol d.d., Ljubljana for 2022, discussed the proposal on the allocation of accumulated
profit, and approved the convening of the 37
th
General Meeting of Shareholders. It also took
note of the operations in March 2023.
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In May 2023, the Supervisory Board discussed the report on the operations of the Company
and the Petrol Group in the first three months, as well as the operations in April 2023. The
Supervisory Board also discussed the progress of the renewable energy project. In May, an
additional correspondence meeting of the Supervisory Board was held to adopt amendments
and supplements to the financial calendar.
Two Supervisory Board meetings were held in June 2023 to discuss strategic topics (Geoplin
strategy, Petrol Group mobility strategy and a review of logistics opportunities).
One meeting was held in July 2023, at which changes were made to the Company’s
Management Board (two new members were appointed and one member resigned).
In August, the Supervisory Board discussed the report on the operations of the Company and
the Petrol Group in the first six months of 2023.
In October 2023, the Supervisory Board discussed strategic topics (application to the tender
for the installation of e-charging points, the Dazlina wind power plant project and the basis for
the preparation of the 2024 business plan).
Seven meetings were held in November and December 2023; in addition to two regular
meetings where the report on the operations for the first nine months of 2023 and activities
related to the independence and transparency of the members of the Supervisory Board were
discussed, five extraordinary meetings were held to discuss activities related to the preparation
of the 2024 business plan and to the change in the composition of the Management Board.
At least once a month, the Supervisory Board monitored the operations of the Company and
the Petrol Group over the previous month in order to stabilise operations and control costs.
The Supervisory Board, acting within its powers, reached responsible decisions and discussed
a number of other matters within its terms of reference:
• adopting the 2024 Internal Audit work programme;
• adopting the 2024 Audit Committee work programme;
• giving consent to the Management Board in accordance with the Articles of Association
and other forms of approval for Management Board proposals;
• discussing the Workers’ Council reports concerning the involvement of workers in
management;
• managing potential conflicts of interest (the statements required under the applicable code
were signed by Supervisory Board members upon their appointment and also at the end
of the financial year, and published on the Company’s website);
• giving consent to the Management Board in accordance with the Articles of Association
and other forms of approval for Management Board proposals.
All the working procedures of the Supervisory Board are geared towards ensuring the basic
rules that must apply in the effective operation of this body:
• compliance with the rules and guidelines stipulated in its Rules of Procedure;
• ongoing training of all persons involved in the functioning of the body and the adoption of
new best practices related to corporate governance;
• the transparent functioning of the Supervisory Board in relation to the Management Board
and vice versa, and with all external stakeholders;
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• a sufficient number of meetings to provide a thorough insight into the operations and
orientations of future development;
• full attendance of all Supervisory Board members and the proactive functioning of each
Supervisory Board member;
• training of members, acquaintance with new trends, learning about the structure of the
Company, the Petrol Group and its processes;
• self-assessment of the Supervisory Board with a view to the timely identification of the
necessary changes and implementation of the measures, and a number of other matters
that are the responsibility of the Supervisory Board in accordance with the law, the Statutes
and the Rules of Procedure.
Work of the Supervisory Board’s Committees
The Audit Committee of the Supervisory Board had thirteen meetings in 2023 (nine in 2022)
to discuss quarterly reports on the operations of the Petrol Group and Petrol d.d., Ljubljana,
and standard and other matters, such as:
• progress of the preliminary audit of the 2022 Annual Report;
• preparation of the 2024 Audit Committee work programme;
• management of credit, foreign exchange and price risks;
• risk management in the Petrol Group by quarter and its annual overview;
• briefing on the Internal Audit reports and the 2024 Internal Audit work programme;
• briefing on the report of authorised officers concerning the implementation of corporate
integrity guidelines;
• discussing and proposing to the Supervisory Board for adoption guidelines governing the
performance of non-audit services by the statutory auditor;
• briefing on and monitoring the expected changes in the International Financial Reporting
Standards on a regular basis and assessing the effect they may have had on the financial
statements;
• carrying out an interview with the Head of Internal Audit;
• monitoring and communicating the results of the external audit of internal audit work;
• discussing other topics falling within the competence of the Audit Committee.
The Committee also discussed the audited Annual Report for 2022 and submitted a proposal
for its endorsement to the Supervisory Board. It also dealt with topics related to the Supervisory
Board and the Annual General Meeting.
The Supervisory Board’s Human Resources and Management Board Evaluation
Committee held four meetings in 2023 (one meeting in 2022) to evaluate the work of the
Management Board in 2022 and to make proposals to the Supervisory Board on the
remuneration for its work in 2022. It also reviewed and approved the Remuneration Policy for
the Management Board and the Supervisory Board, which was submitted to the General
Meeting for adoption. Other activities were related to changes in the composition of the
Management Board in accordance with the Rules of Procedure of the Supervisory Board.
The Supervisory Board monitored the work of its committees based on their continuous
reporting to the Supervisory Board. Considering the implementation of all committee
resolutions, the review of their work and reports on the work of both committees presented at
the December meeting, the Supervisory Board – in the context of self-assessing its
performance – deemed the work of both committees to have been very good.
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Unaudited business results of the Petrol Group in 2023
At its 49
th
meeting of 15 March 2024, the Supervisory Board discussed the unaudited business
results of the Petrol Group and Petrol d.d., Ljubljana, for 2023.
The Petrol Group’s sales revenue stood at EUR 7.0 billion in 2023, down 26 percent on the
year before. The gross profit stood at EUR 677.6 million, which was 72 percent more than in
2022. The EBITDA amounted to EUR 277.1 million and the net profit to EUR 136.6 million.
Endorsement of the 2023 Annual Report
At its 51
st
meeting of 18 April 2024, the Supervisory Board discussed the audited Annual
Report of the Petrol Group and Petrol d.d., Ljubljana for 2023. Having verified the Annual
Report, the financial statements and notes thereto, the Management Board’s proposal on the
allocation of accumulated profit, and the certified auditor’s report, the Supervisory Board
approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2023.
As part of the Annual Report adoption, the Supervisory Board also put forward its position
regarding the corporate governance statement and the statement of compliance with the
applicable code that are included in the business section of the Annual Report of the Petrol
Group and Petrol d.d., Ljubljana for 2023, and concluded that it is a true reflection of the
corporate governance in place in 2023.
Dr Janez Žlak
President of the Supervisory Board
Ljubljana, 18 April 2024
HIGHLIGHTS:
• In 2023, Petrol’s Supervisory Board continued to operate in a diverse composition, which
allowed for an effective complementarity of expertise and exchange of views.
• In 2023, the Supervisory Board held 22 meetings. This reflects its active role in
management and supervision in challenging times.
• The two Supervisory Board Committees carried out key tasks in 2023 to support an
effective supervision and the strategic direction of the Company.
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5. The Petrol Group in the region
The Petrol Group has companies in the following countries:
• Slovenia
• Croatia
• Bosnia and Herzegovina
• Serbia
• Montenegro
• Kosovo
• North Macedonia
• Austria
• Romania
The Group also operates in other countries.
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BUSINESS REPORT
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6. Strategic orientation
6.1 Our mission, promise, vision and values
Mission
Through a broad range of energy commodities, comprehensive energy solutions and a digital
approach, we are putting the user at the centre of our attention. We want to become the first
choice for shopping on the go. Together with our partners, we create solutions for a simpler
transition to cleaner energy sources. We are building a green energy future in a decisive and
active manner, increasing the value for our customers, shareholders and society in the long
run.
Promise
Through the energy transition, we create a green future and make a significant contribution to
protecting our environment.
Vision
To become an integrated partner in the energy transition, offering an excellent customer
experience.
Values
• Respect: We respect fellow human beings and the environment.
• Trust: We build partnerships through fairness.
• Excellence: We want to be the best at all we do.
• Creativity: We use our own ideas to make progress.
• Courage: We work with enthusiasm and heart.
At Petrol, we feel a strong sense of responsibility towards our employees, customers,
suppliers, business partners, shareholders and society as a whole. We meet their expectations
with the help of motivated and business-oriented staff, we adhere to the fundamental legal and
moral standards in all the markets where we operate, and we protect the environment.
6.2 Strategy of the Petrol Group for the 2021–2025 period
On 28 January 2021, the Supervisory Board of Petrol d.d., Ljubljana endorsed the Strategy of
the Petrol Group for the 2021–2025 period, which defines the path to a successful future
through a vision, objectives and strategic business plan. Ensuring business growth and
increasing the profitability of operations while maintaining the commitment to sustainable
development are the main principles underpinning the preparation and implementation of the
strategic plan.
The environment in which the Petrol Group operates is facing important changes. The energy
transition towards a low-carbon company and the development of new technologies are
transforming the established ways energy commodities are produced, sold and used. Petrol is
committed to making a transition to green energy and is dedicating a significant share of its
investments to achieve it. The strategy of the Petrol Group defines clear targets for
implementing our vision. While co-creating opportunities brought about by the energy
transition, we will also continue to supply the market with hydrocarbons. This helps us focus
on our principal activity, which is to supply energy commodities, as it is this area where we still
see great potential in connection with the energy transformation.
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We will continue to strengthen our sales network in the region. Thanks to new digital
channels, a broader range of energy commodities and a personalised offer, we are
following trends, getting closer to our customers, and helping them make a transition from
traditional energy sources to cleaner renewable energy. Our aim is to become a key link in a
broader ecosystem by offering energy sources that are adapted to and co-shape the market.
For this reason, we strengthen operational efficiency to free up additional funds for investments
in renewable energy production.
We understand the importance of sustainable development. The transition to a low-carbon
energy company, partnership with employees and the social environment, and the circular
economy constitute the Petrol Group’s commitments in this strategic period. As a partner to
industry, the public sector and households, Petrol is taking a leading role in achieving
environmental goals.
Through the continuous development of fuels, we will actively contribute to reducing emissions.
At the same time, we will help reduce the carbon footprint of both the Petrol Group and our
customers by pursuing clear sustainable policies.
We want to become the first choice for shopping on the go in our traditional segment of oil
products and merchandise and services.
In this strategic period, we will remain present in all markets, focusing on:
• Slovenia, where we will consolidate our position as a leading energy company and partner
in the energy transition;
• Croatia, where we will use our sales network to expand our portfolio of customers in the
field of energy commodities and energy transition services and invest in renewable
electricity generation; and
• Serbia, where we will increase our share in the energy commodities sales market.
We strive to remain the first choice for energy transition projects in the region by offering
integrated services with high added value. We develop and strengthen our presence in the
supply and sale of natural gas and electricity, in the sale of liquefied petroleum gas and in
energy efficiency projects. Renewable electricity generation, of which we position ourselves to
become a major supplier in SE Europe, plays a particular role in the energy transition.
The development of new solutions in the field of electro-mobility and mobility services
shows a great potential for development. In doing so, the Petrol Group focuses on charging
infrastructure (the establishment, management and maintenance of charging infrastructure for
electric vehicles and the provision of charging services) and mobility services (e.g. operating
leasing, fleet electrification and fleet management services).
Strategic objectives for 2025:
• EBITDA of EUR 336 million;
• net debt/EBITDA less than 1;
• net profit of EUR 180 million;
• CapEx in the 2021–2025 period in total amounting to EUR 698 million, of which 35
percent in energy transformation and the rest mainly in the expansion and upgrade of the
retail network and the digitalisation of operations;
• renewable electricity output of 160 MW;
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• retail network with a total of 627 service stations;
• 1,575 e-charging points;
• energy savings of 73 GWh for end-customers in the 2021-2025 period.
By pursuing the goals, we strengthen the long-term financial stability of the Petrol Group.
Through a stable dividend policy, we ensure a balanced dividend yield for shareholders and
the use of free cash flows to finance the Petrol Group’s investment plans. This will allow for
the long-term growth and development of the Group, maximising its value for the owners. The
dividend policy target for the 2021-2025 strategic period is 50 percent of the Group’s net profit,
taking into account the investment cycle, Group indicators and the achieved objectives.
The turbulence in the energy markets, high inflation and the resulting regulatory intervention
by governments in the pricing of energy commodities have severely impacted the Petrol
Group’s business. The regulated prices for petroleum products were not high enough to cover
all costs in a certain period. In 2022 and 2023, we also had to adapt, or limit, our investment
funds to the changed business environment, all the while still aiming to earmark as much of
investments as possible for the energy transition.
In 2024, in line with current trends and developments in the energy markets, the Petrol Group
is preparing a roadmap for the Group’s strategic development until 2030.
6.3 Petrol as the ambassador of corporate integrity
Petrol meets its targets while complying with the applicable regulations and the Corporate
Integrity Guidelines. In the pursuit of our work, we abide by high standards of business ethics
and build a corporate culture promoting lawful, transparent and ethical conduct and decision-
making by all staff. We raise and consolidate the awareness of how important compliance is
among employees and business partners. We apply the zero-tolerance principle to the
unlawful and unethical conduct of employees and business partners.
Petrol Archive
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7. Plans for 2024
7.1 Business environment
In 2024, the Petrol Group will continue to face significant uncertainties stemming from volatile
energy markets and a heightened geopolitical situation due to the war in Ukraine and tensions
in the Middle East. Nevertheless, the outlook points to moderate economic growth. Inflation
forecasts for 2024 are slightly lower compared to 2023, but we still expect significant cost
pressures.
The energy commodity markets also point to moderating prices in 2024, with the partial
regulation of electricity prices for households and a cap on natural gas prices in Slovenia for
the 2024 heating season.
The Petrol Group’s 2024 Business Plan includes adjustments to the changing market
conditions, with continued investment in renewables and the green transition, reflecting global
trends and a commitment to sustainable development. At the same time, we are preparing for
market developments, including the digitalisation of our business and the development of new
sales channels to ensure resilience and growth in a changing global environment.
7.2 Key trends and risks in the 2024 Business Plan
Against the background of minimal economic growth, the Petrol Group expects sales growth
in the fuels and petroleum products segment, especially motor fuels. We are adapting to the
decline in fuel oil sales by continuing to replace it with alternative energy commodities. In the
retail segment, we will continue to provide fast and convenient customer service and an
excellent customer experience. In sales of other energy commodities (electricity and natural
gas), we are maintaining our market share while expanding our network of own and third-party
charging points and improving the customer experience. Commitment to the green transition
remains key and we will increase the share of renewable energy (RES) generation in the
region. In the area of energy solutions, most activities will continue to focus on the industrial
and household segments. We will continue to optimise costs in order to limit cost increases.
In planning its business objectives for 2024, the Petrol Group faces several risks that could
affect the achievement of the plan. The main risks are regulatory interventions in the pricing
policy, geopolitical risks and the negative impact of the energy crisis on the price of energy
commodities. This has a direct impact on the regulatory framework, which is subject to frequent
changes, sometimes without prior notice, further complicating business planning. The volatility
of the energy markets also tightens the conditions for the purchase of petroleum products and
exerts inflationary pressure on costs. There is also the potential risk of supply chain disruptions,
which could affect economic stability, as well as the impact on the regulatory requirements for
biocomponent blending in Slovenia and Croatia. The Decree on the promotion of the use of
biofuels and other renewable fuels for the propulsion of motor vehicles in Slovenia and the
amendment to the Decree on energy-saving requirements will also have an impact on cost
growth in the future. Other risks include the deterioration of the economic outlook in Slovenia’s
main trading partners, the volatility of European markets, which poses high market risks, and
the lack of adequate labour force, which is a particular challenge.
The accelerated and complex transition to green fuels as called for by the EU Green Deal, with
requirements for ensuring savings for end users (ZPePKO), adding biofuels, and pay the CO
2
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tax and related penalties for not meeting these targets will have a significant effect on the
profitability of operations in the future. Future regulation of retail prices should thus also
recognise additional costs related to the energy transition. Market liberalisation is a long-term
solution which, besides the additional costs related to the green transition, includes the need
for investments in a new, environmentally sustainable model; therefore, liberalisation of the
margin policy is the regulator’s key strategic decision.
7.3 Business targets for 2024
For 2024, the Petrol Group projects sales revenue of EUR 5.8 billion and a gross profit of
EUR 705.6 million. The Petrol Group will achieve its planned results for 2024 by selling 4.1
million tonnes of fuels and petroleum products, merchandise in the amount of EUR 667.5
million, 16.4 TWh of natural gas (trading and sales to end customers), 12.4 TWh of electricity
(trading and sales to end customers), 147.7 thousand MWh of heat, producing 204.4 thousand
MWh of electricity, and selling energy and environmental solutions.
For 2024, the Petrol Group projects an EBITDA of EUR 304.6 million and a net debt/EBITDA
ratio of 1.41.
For 2024, the Petrol Group projects a net profit of EUR 156.5 million.
The business plan for 2024 was prepared by taking into account the last known regulated
prices of energy on the markets where the Petrol Group is present, which were in effect at the
end of December 2023. For Slovenia, we assumed that on 1 March 2024 the margins on fuels
would return to the level which was in effect until 4 December 2023, but that did not happen.
Unforeseen interventions in the price policy by regulators can cause significant deviations from
the set targets.
The Group’s investment policy for
2024 will be focused on expanding
business in the area of renewable
electricity production, digitalising its
supply chain, modernising and
prudently increasing the number of its
service stations and on expanding its
operations in the area of energy and
environmental solutions. In 2024,
investments will amount to EUR 130.0
million, 44 percent of which will be spent
on energy transition projects.
Petrol Archive
In 2023, despite the challenges posed by the energy crisis, the Petrol Group managed to
stabilise its business and maintain its solidity, which was key to maintaining the Group’s sound
financial health. Despite not having achieved our plan in the past year due to energy price
regulation, we remain committed to meeting the high standards endorsed by S&P Global
Ratings. We have laid a solid foundation for the future by optimising business processes and
costs. In 2024, we plan to increase investments in the energy transition, which were slowed in
2022 and 2023 as a result of many external factors. With a commitment to the energy transition
and excellent customer experience, the Petrol Group will continue its efforts to ensure stability
and profitability for shareholders, even in a changing energy and economic environment.
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HIGHLIGHTS:
• The Petrol Group’s 2024 Business Plan has been drawn up in a context of uncertainty,
mainly related to the volatility of the energy markets, persistent inflation and slowing
economic growth.
• In 2024, we plan to increase investments in the energy transition.
• We have laid a solid foundation for the future by optimising business processes and
costs. We remain committed to meeting the high standards endorsed by S&P Global
Ratings.
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8. Corporate Governance Statement
Pursuant to Article 70(5) of the Companies Act (ZGD-1), Petrol d.d., Ljubljana hereby issues
its Corporate Governance Statement.
8.1 Reference to the applicable Corporate Governance Code
In the period from 1 January 2023 to 31 December 2023, the Company was bound by the
Slovenian Corporate Governance Code for Listed Companies (hereinafter 'the Code') as jointly
drawn up by the Ljubljana Stock Exchange and the Slovenian Directors’ Association on 27
October 2016 and updated and adopted on 9 December 2021. The Code entered into force in
its updated version on 1 January 2022. It is available in Slovene and English from the website
of the Ljubljana Stock Exchange at www.ljse.si The Company has not adopted a corporate
governance code of its own. It is managed in accordance with the Companies Act and within
the framework of the above Code. In compliance with the recommendations of the applicable
Code, the Supervisory Board and the Management Board drew up and, at the Supervisory
Board meeting of 23 November 2010, adopted the Corporate Governance Policy of Petrol d.d.,
Ljubljana, which was published via the Ljubljana Stock Exchange SEOnet information system
on 28 December 2010. The policy has since been updated several times at meetings of the
Company’s Supervisory Board and published on SEOnet. The latest valid version is available
at Corporate Governance Policy of 17 February 2022. It is also available, in Slovene and
English, on the website of Petrol d.d., Ljubljana (www.petrol.eu, www.petrol.si).
Statement of compliance with the Code
The Company conducts its operations in compliance with the Code, i.e. with its guiding
principles and recommendations. Any deviations or partial deviations from the Code are listed
and explained below:
• The Company is yet to perform an external assessment of the adequacy of the corporate
governance statement, but this is expected to be performed in 2024 (the Code: Corporate
governance statement, paragraph 5.6).
• Sustainable development is one of the priorities of the Petrol Group. Due to its importance,
the Petrol Group has been publishing bi-annual stand-alone Sustainability Reports, which
present in more detail the sustainability strategic orientations and challenges, objectives,
programmes and projects, as well as the results, since 2012. Our activities are complex
and diversified; therefore, we are constantly formulating a methodology for sustainable
development, measurement, evaluation and reporting. The Petrol Sustainable Business
Policy is therefore not a single document, but rather a set of interlinked internal documents
that cover all the content listed in paragraph 7 of the Code (the Code: Sustainable
Business, paragraph 7).
• In its Rules of Procedure, the Supervisory Board sets out the content and types of
transactions which require the Supervisory Board’s consent, but does not specify the exact
set of contents and deadlines that are regularly observed by the Management Board, as
the contents are already provided for in the Company’s annual financial calendar. Instead,
in addition to the Financial Calendar, which is published on SEOnet, the Supervisory Board
adopts an extended version of the calendar comprising additional topics and timeframes
applicable to the Supervisory Board and its committees and, as such, representing a
coherent and comprehensive working plan of this body (the Code: Supervisory Board’s
Tasks, first sentence of paragraph 14.3).
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• The Human Resources and Management Board Evaluation Committee performs all of its
tasks as decided by the Supervisory Board on a case-by-case basis; therefore, the
Supervisory Board did not specify its tasks in its formation (the Code: Supervisory Board
Committees, first sentence of paragraph 18.2).
• The Company provides prompt information about its financial and legal situation through
public announcements, but it does not report on operational estimates as this is
inconsequential as long as its operations are in line with the applicable strategy and annual
work programme. In the event of deviations, the Company would immediately make a
public announcement to inform interested stakeholders about other business events,
impacts and deviations (the Code: Public Announcement of Important Information, indent
3 of paragraph 32.1).
• The Company has not published the applicable wording of the rules of procedure of its
bodies on its website. The Management Board and Supervisory Board discussed the
benefits of this recommendation and view the Supervisory Board’s Rules of Procedure and
the Management Board’s Rules of Procedure as texts that are updated on a regular basis
and are intended for the sole use of these bodies. Moreover, any external assessment of
these documents by third parties would have been inappropriate due to them not being
familiar with the needs of these bodies. The General Meeting Rules of Procedure were
adopted at the first general meeting of Petrol d.d., Ljubljana in 1997; they are always
available during the general meeting of shareholders and do not contradict the Slovenian
Companies Act (ZGD-1), which lays down, through peremptory provisions, all the elements
concerning the running of a general meeting, making it sufficient to have the rules of
procedure available only during each general meeting (the Code: Public Announcement of
Important Information, paragraph 32.7).
8.2 Description of the main characteristics of the Company’s internal control and risk
management systems in connection with the financial reporting process
The Company’s Management Board is responsible for keeping proper books of account,
setting up and ensuring the functioning of internal controls and internal accounting controls,
selecting and applying accounting policies and safeguarding the Company’s assets. The
establishment of the internal control system, which is based on the three lines
1
of defence
model, pursues the following three objectives:
• the accuracy, reliability and completeness of the financial records, and true and fair
financial reporting,
• compliance with applicable laws and regulations; and
• the effectiveness and efficiency of operations.
The Company’s Management Board aims to establish a control system that is as efficient as
possible at the prevention of undesired events and acceptable in terms of cost. It is aware that
every internal control system, regardless of how well it functions, has its limitations and cannot
fully prevent errors or fraud. Nevertheless, it must be configured so that it flags them as soon
as possible and provides the Management Board with suitable assurance about the
achievement of objectives.
1
The three defence lines of control: (1) operational management or risk owners, (2) control functions, including compliance, as
risk managers, (3) internal audit tasked with providing independent assurance.
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Petrol, therefore, keeps and further improves:
• a transparent organisational structure of the parent company and the Group;
• clear and uniform accounting policies and their consistent application across the Petrol
Group;
• an efficiently organised accounting function (functional responsibility) within individual
companies and the Petrol Group;
• a uniform accounting and business information system of the parent company and its
subsidiaries, thus boosting the efficiency of operational and control procedures;
• reporting in accordance with the International Financial Reporting Standards, including all
the required disclosures and notes;
• regular internal and external audits of business processes and operations.
Chapter 13 Risk Management chapter of this business report presents risk management and
control mechanisms relating to the assessment of specific types of risk in greater detail. It is
our opinion that in 2023, the existing internal control system of Petrol d.d., Ljubljana and of the
Petrol Group operated effectively and provided an appropriate environment for achieving the
business objectives, operation in compliance with the law, and fair and transparent reporting
in all material respects.
8.3 Data pursuant to Article 70(6) of the Companies Act-1
As a company bound by the Takeovers Act, Petrol d.d., Ljubljana hereby provides information
on the situation as at the last day of the financial year and all the necessary explanations, in
accordance with Article 70(6) of the Companies Act:
8.3.1 Structure of the Company’s share capital
The Company has only issued ordinary registered no-par value shares, the holders of which
have the right to participate in the management of the Company, the right to profit participation
(dividends) and the right to a corresponding share in other assets in the event of the liquidation
or bankruptcy of the Company. All shares belong to a single class and are issued in book-entry
form.
Share capital structure of Petrol d.d., Ljubljana as at 31 December 2023
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The largest shareholders of Petrol d.d., Ljubljana, as at 31 December 2023
8.3.2 Restrictions on the transfer of shares
All shares are fully transferable.
8.3.3 Qualifying holdings under the Takeovers Act
Pursuant to Article 77(1) of the Takeovers Act (acquiring a qualifying holding), the following
information is provided (valid as at 31 December 2023):
• J&T BANKA A.S. – Client account – held 5,333,200 shares of the issuer Petrol d.d.,
Ljubljana, representing 12.78 percent of the issuer’s share capital;
• Slovenian Sovereign Holding (SDH, d.d.) held 5,299,220 shares of Petrol d.d., Ljubljana,
representing 12.70 percent of the issuer’s share capital;
• The Republic of Slovenia held 4,513,980 shares of Petrol d.d., Ljubljana, representing
10.82 percent of the issuer’s share capital;
• Kapitalska družba, d.d. held 3,452,780 shares of Petrol d.d., Ljubljana, representing 8.27
percent of the issuer’s share capital; and
• OTP Banka d.d. – Client account – held 2,872,108 shares of the issuer Petrol d.d.,
Ljubljana, representing 6.88 percent of the issuer’s share capital.
8.3.4 Holders of securities carrying special control rights
The Company did not issue any securities carrying special control rights.
8.3.5 Employee share scheme
The Company has no employee share schemes.
8.3.6 Restrictions on voting rights
There are no restrictions on voting rights.
8.3.7 Shareholder agreements potentially resulting in restrictions on the transfer of
shares or voting rights
The Company is not aware of such agreements.
8.3.8 The Company’s rules regarding
• The appointment and replacement of members of the management or supervisory
bodies
The President and other members of the Management Board are appointed and
discharged by the Supervisory Board. Apart from the Worker Director, the Supervisory
Shareholder Address Number of shares Holding in %
J&T BANKA A.S. - FIDUCIARNI RAČUN Sokolovská 700/113A, 18600 Praha, Czechia 5,333,200 12.78%
SDH, D.D.
Mala ulica 5, 1000 Ljubljana 5,299,220 12.70%
REPUBLIKA SLOVENIJA Gregorčičeva ulica 20, 1000 Ljubljana 4,513,980 10.82%
KAPITALSKA DRUŽBA, D.D.
Dunajska cesta 119, 1000 Ljubljana 3,452,780 8.27%
OTP BANKA D.D. - CLIENT ACCOUNT - FIDUCI Domovinskog rata 61, 21000 Split, Croatia 2,872,108 6.88%
ERSTE GROUP BANK AG - PBZ CROATIA OSIGUR
Am Belvedere 1100 Wien, Austria 1,707,944 4.09%
VIZIJA HOLDING, D.O.O.
Dunajska cesta 156, 1000 Ljubljana 1,582,480 3.79%
VIZIJA HOLDING ENA, D.O.O.
Dunajska cesta 156, 1000 Ljubljana 1,350,700 3.24%
MUSTAND ENERGY LIMITED Klimentos 41-43, Klimentos Tower, Nicosia, Cyprus 796,000 1.91%
PERSPEKTIVA FT D.O.O. Dunajska cesta 156, 1000 Ljubljana 725,240 1.74%
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Board appoints Management Board members at the proposal of the President of the
Management Board. Management Board members are appointed for a five-year term of
office and may be reappointed. On the proposal of the Human Resources and
Management Board Evaluation Committee and according to its Rules of Procedure, the
Supervisory Board determines general and specific criteria for selecting candidates for the
President and members of the Management Board, at the same time laying down a
framework for contracts concluded with Management Board members. The Supervisory
Board also determines the weight of individual criteria that comprise the competence model
of the President and members of the Management Board. The Human Resources and
Management Board Evaluation Committee proposes to the Supervisory Board which
method or combination of methods to apply in order to find candidates for the President of
the Management Board (personal invitations, job vacancy postings) and determines
whether it is necessary to engage an external headhunting expert. The Human Resources
and Management Board Evaluation Committee carefully checks the fulfilment of the
general and specific conditions required for the position of Management Board President
or Member and other conditions laid down in the Company’s Articles of Association. The
Committee also verifies the references stated in candidates’ CVs and conducts interviews.
It then puts together a selection of candidates for the President of the Management Board,
conducts selection interviews and ranks them. The shortlisted candidate/s for President of
the Management Board propose other members of the Management Board; the Human
Resources and Board Evaluation Committee verifies the conditions and references of the
proposed candidates. The Committee thereupon proceeds with the evaluation of the entire
Management Board and negotiates with candidates on the basic elements of their
agreements. The candidate(s) for President of the Management Board, together with the
proposed members of the Management Board, present the vision of the Company’s
development at a Supervisory Board meeting. The Supervisory Board conducts selection
interviews with them. The Supervisory Board selects and appoints the President and
members of the Management Board. The procedure is repeated, if the Supervisory Board
finds the candidates proposed by the candidate for the President of the Management Board
(the proposed Management Board as a whole) unsuitable. If the term of office of the
President of the Management Board is terminated prematurely for any reason, the
Supervisory Board may, taking into account the interests of the Company, either conduct
a procedure for the appointment of a new President of the Management Board or appoint
a new President of the Management Board from among the remaining members of the
Management Board who fulfil the prescribed conditions; the appointed new President of
the Management Board performs the duties of the President of the Management Board
until the end of the term of office for which he or she was appointed as a member of the
Management Board.
The Supervisory Board may reappoint the Management Board within one year before the
term of office has expired, although it is customary for the reappointment to take place no
later than three months before the expiry. If the Company’s General Meeting passes a vote
of no confidence in the Management Board, the Supervisory Board, convening immediately
after the General Meeting, states its opinion concerning the recall of a Management Board
member. If the General Meeting does not grant the Management Board and/or Supervisory
Board discharge from liability, the Supervisory Board is required to convene as soon as
possible to identify the reasons for the discharge of liability not being granted. Without
prejudice to the above, the Supervisory Board may recall the Management Board, for
reasons stipulated by law, at its own discretion. The Supervisory Board is required to
immediately notify the Management Board if it is not fully fulfilling the tasks falling under its
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mandate of its findings and opinions and to set the shortest deadline possible to eliminate
the identified shortcomings. If the Management Board fails to achieve the expected results
by the set deadline, the Supervisory Board decides whether to recall individual members
of the Management Board. The Supervisory Board may appoint one of its members as a
temporary Management Board Member to replace a missing or absent member for a period
of no more than a year. Reappointment or the extension of the term of office is permitted if
the entire term of office is not extended by more than one year.
The Supervisory Board of the Company comprises nine members, of which six are elected
by the Company’s General Meeting of Shareholders with a majority vote of the
shareholders present and three by the Company Workers’ Council. They are elected for a
term of four years and may be re-elected when their term of office expires. A resolution on
an early recall of the Supervisory Board members representing shareholders shall be
adopted with a three-quarters majority of votes present at the General Meeting, while the
conditions for the recall of the Supervisory Board members representing employees shall
be determined by the Workers’ Council in a general act.
• The Diversity Policy
At its 21
st
meeting of 13 December 2018, the Supervisory Board adopted the Diversity
Policy Regarding Representation in the Company’s Management and Supervisory Bodies.
On 31 December 2018, it was published in Slovenian and English on the Company’s
website (the full text of the Diversity Policy, including its goals and method of
implementation, is available at Diversity Policy.
The aim of the Diversity Policy is to ensure the composition of the Management Board and
the Supervisory Board in such a way that each body is provided with a suitable set of skills,
expertise and experience to ensure a good understanding of current events and the long-
term risks and opportunities related to the Company’s operations and thus to ensure the
successful and sustainable long-term operation of the Company. According to the analysis
of the long-term trends in energy and trade and related services (taking into account
political-legal, economic, socio-cultural and demographic, technological and natural and
industry forces), the following aspects of diversity are essential for efficient and sustainable
operations: professional diversity, professional experience and diversity of competences,
as well as gender diversity, age diversity and ensuring continuity.
Complementarity and diversity must be achieved through the composition of the
Management Board and the Supervisory Board, which is reflected in:
• different experience, age, gender, education and professional knowledge at the level
of individual members of the Management Board or Supervisory Board and
consequently at the level of the Management Board or Supervisory Board as a whole;
• knowledge of the industry and the characteristics of the legal and regulatory
environment; and
• an appropriate manner of communication, cooperation and critical assessment in the
decision-making process of the Management Board or Supervisory Board.
With its Diversity Policy, the Company has set itself, in particular, the following goals:
• to ensure at least 30 percent representation of the underrepresented gender among
the shareholder representatives on the Supervisory Board by 2022.
• efforts by all stakeholders in the HR processes to appoint the Management Board
members in such a way as to achieve the greatest possible gender balance by creating
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an appropriate set of candidates that ensures the appropriate representation of the
underrepresented gender.
• seeking not to change the overall membership of the Supervisory Board, with the aim
of one-third continuity.
The Diversity Policy is adequately implemented through the process of the recruitment and
selection of candidates for members of the Supervisory Board and Management Board.
The policy administrator is the Human Resources and Management Board Evaluation
Committee of the Management Board, which monitors its implementation and reports to
the Supervisory Board. It is used mainly in activities such as the pooling, selection and
proposal of candidates for the Supervisory Board to the General Meeting, when appointing
members of the Management Board and committees of the Supervisory Board and when
conducting self-assessment of the Supervisory Board.
For the most part, the policy objectives have been adequately achieved, in particular those
relating to the diversity of education, occupation, experience and age. However, the
diversity goals related to gender diversity have been partially achieved. The Management
Board members are male. The Supervisory Board comprises one female member and
eight male members. A female representative was appointed as an external member of
the Audit Committee. In the energy sector, women’s representation in management
positions is found to be low, which is the predominant reason for the male representation
in corporate governance and management bodies. In 2019, the Supervisory Board joined
the initiative to achieve voluntary 40/33/2026 gender diversity as proposed by the
Slovenian Directors’ Association. Among other partners, the initiative was supported by the
Slovenian Sovereign Holding and the Ljubljana Stock Exchange.
• Amendments to the Articles of Association
The General Meeting decides on amendments to the Articles of Association with a majority
of three-quarters of the share capital represented in the voting.
8.3.9 The powers of the Management Board members, particularly in connection with
own shares
At its 34
th
General Meeting of Shareholders, held on 21 April 2022, the General Meeting of
Shareholders, by a resolution under item 7, authorised the Management Board to purchase
treasury shares for a period of 12 months from the date of the entry into force of the resolution.
Under this authorisation, a maximum number of own shares may be acquired so that the total
percentage of the shares acquired based on this authorisation does not exceed, together with
other own shares already held by the Company, 2 percent of the Company’s share capital.
The Company may acquire its own shares through transactions entered into on a regulated
securities market, at the then prevailing market price. The Company may also acquire its own
shares outside a regulated securities market. When acquiring shares on a regulated or
unregulated securities market, the purchase price of the shares may not be less than 50
percent of the book value of the share, calculated on the basis of the Petrol Group’s latest
publicly published audited annual accounts. The purchase price of the shares may also not
exceed 11 times the earnings per share (EPS) calculated on the basis of the Petrol Group’s
latest publicly published audited annual accounts. Pursuant to Article 381(3) and (4) of the
Companies Act (ZGD-1), the Company may reduce the share capital (once or successively)
by withdrawing own shares acquired pursuant to this authorisation (but not own shares
acquired earlier) in a simplified procedure and against other profit reserves with the consent of
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the Supervisory Board. The Company may only use its own shares acquired pursuant to this
authorisation in accordance with this resolution.
8.3.10 Important agreements that enter into force, are amended or expire due to changes
in the control over the Company resulting from a takeover bid.
The Company is not aware of any such agreements.
8.3.11 Agreements between the Company and the members of its management and
supervisory bodies or employees that foresee compensation should such persons
resign, be discharged without cause or have their employment relationship terminated
due to a bid as defined in the Takeovers Act.
No early termination benefits are payable to a member of the Management Board in the cases
provided for in the Companies Act. No severance payment is due to a member of the
Management Board in the event of the regular termination of their term of office. Furthermore,
a member of the Management Board is not entitled to severance pay if they terminate the
employment agreement or if the employment contract is terminated early on the grounds of
serious misconduct, incapacity or a vote of no confidence by the General Meeting (unless the
vote of no confidence was passed for manifestly unfounded reasons).
If there are no grounds of misconduct for recall, an early termination agreement may be
concluded at the initiative of either party and if it is in the interests of both parties to do so, such
as when a member of the Management Board is not performing at an optimal level in terms of
business management, does not have optimal organisational skills or if there is a lack of the
necessary trust between a member of the Management Board and the Supervisory Board. The
benefits expected to accrue to the Company must be greater than the amount of the severance
payment and any other expenses to be paid at the time the agreement is concluded.
8.3.12 Petrol d.d., Ljubljana has no subsidiaries falling within the scope of indent 4 of
Article 70(3) of the Companies Act (ZGD-1).
8.3.13 The Petrol Group’s activities include an activity listed in Article 70b of the
Companies Act, specifically the commercial exploitation of mineral resources
(geothermal source), but the payments to the Republic of Slovenia did not exceed the
amount laid down in Paragraph 2 of Article 70b in 2023.
8.4 Information on the workings of the General Meeting of Shareholders
As provided by the applicable legislation, specifically the Companies Act, a General Meeting
of Shareholders is a body through which shareholders exercise their rights in respect of matters
concerning the Company. The convening of a General Meeting of Shareholders is governed
by the Articles of Association, in conformity with the applicable legislation. A General Meeting
of Shareholders is convened at the request of the Management Board, the Supervisory Board,
or the Company’s shareholders who collectively represent at least five percent of the
Company’s share capital. The beneficiary requesting the convening of a General Meeting of
Shareholders must enclose the agenda, a proposal for a resolution for each proposed agenda
item to be decided by the General Meeting of Shareholders or, if the General Meeting of
Shareholders does not adopt a decision on an individual agenda item, the reasoning behind
the agenda item. Notwithstanding, a General Meeting of the Company with the content
required by regulations may also be convened by sending a registered letter to all shareholders
if their names and addresses can be established from the valid share register. In this case, the
day on which the letter was sent shall be considered the date of publication of the General
Meeting of Shareholders.
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The Management Board calls a General Meeting of Shareholders 30 days before the meeting
takes place by publishing a notice on the Ljubljana Stock Exchange SEOnet information
system, the AJPES website and the Company’s website. In the notice, the Management Board
specifies the time and place of the meeting, the bodies conducting the meeting, the agenda
and proposed resolutions of the General Meeting of Shareholders and other information
required by the applicable law.
At the 36
th
General Meeting of Shareholders held on 23 January 2023 (notice of the resolutions
of the General Meeting of Shareholders is available at 36
th
General Meeting), the shareholders
were presented with the Report of the Management Board of Petrol d.d., Ljubljana on the
operations of the subsidiary Geoplin d.o.o. Ljubljana in 2022 and the assessment of the
operations of the subsidiary Geoplin d.o.o. Ljubljana in 2023, as well as the Report of the
Supervisory Board and Management Board of Petrol d.d., Ljubljana on the measures taken to
obtain compensation for the damage caused by the regulated energy product prices in 2022,
on the assessment of the operations of Petrol/the Petrol Group in 2023, and on measures for
the possible business restructuring of Petrol/the Petrol Group as a result of the regulation of
energy product prices in 2023.
At the 37
th
General Meeting of Shareholders held on 18 May 2023 (notice of the resolutions of
the General Meeting of Shareholders is available at 37
th
General Meeting), the Company’s
shareholders were presented with the annual report and the Supervisory Board’s report on the
verification of the annual report for the 2022 financial year, as well as with the report on the
remuneration of the members of the management and supervisory bodies. They discussed
and adopted a resolution on the allocation of the accumulated profit and the granting of a
discharge from liability to the Management Board and Supervisory Board for the year 2022.
The General Meeting of Shareholders discussed the Remuneration Policy of the Management
and Supervisory Bodies of Petrol d.d., Ljubljana, which has not yet been approved. Pursuant
to Article 294a(3) of the ZGD-1, the vote of the shareholders at the General Meeting of
Shareholders on the Remuneration Policy is advisory and will be resubmitted for vote and
approval at the next General Meeting of Shareholders.
8.5 Information on the composition and workings of management and supervisory
bodies
Petrol d.d., Ljubljana has a two-tiered Board structure. The Company is led by the Management
Board, which is supervised by the Supervisory Board. Petrol d.d., Ljubljana is governed in
conformity with the law, the Articles of Association as the Company’s fundamental legal act,
internal regulations, and established and generally accepted good business practices.
Work of the Management Board
• The Management Board of Petrol d.d., Ljubljana manages the Company independently
and on its own responsibility. The Management Board represents and acts on behalf of the
Company. According to the Company’s Articles of Association, the Management Board
comprises the president of the Management Board and other members of the Management
Board. The total number of members of the Management Board shall be a minimum of
three and a maximum of six. The exact number of Management Board members, their
sphere of duties and their powers are determined by a resolution adopted by the
Supervisory Board at the proposal of the president of the Management Board. One of the
Management Board members is always a Worker Director, who only participates in
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decisions relating to human resources and social policy matters. The Management Board
discussed matters falling within its competence at 104 meetings in 2023. Virtually all
decisions were adopted unanimously. In addition to holding formal meetings, the
Management Board exercised the powers and responsibilities pertaining to its daily
activities and to the General Meeting of Shareholders, as stipulated by the Companies Act
and the Articles of Association. The activities concerning the Supervisory Board were
carried out in accordance with the provisions of the Supervisory Board Rules of Procedure
and the Articles of Association by the Management Board. The Management Board
regularly reported to the Supervisory Board on the Company’s operations and consulted
with it in connection with the Company’s strategy, business development and risk
management. Some of the Management Board’s activities were also focused on
collaboration with the Workers’ Council and the representative trade union. Management
Board members are appointed for a five-year term of office and may be reappointed. The
Company is represented jointly by the President and a Member of the Management Board.
If a power of procuration is granted by the Company, the holder can only represent the
Company together with the president of the Management Board. The Company’s
Management Board is required to seek the consent of the Supervisory Board for the
conclusion of the following transactions:
• transactions on the basis of which the Company acquires or disposes of its own shares;
• transactions exceeding EUR 1,000,000.00 on the basis of which the Company acquires or
disposes of interests in or shares of companies, whereby, in order to avoid doubt,
transactions related to the acquisition of interests or shares also include transactions
related to the Company’s participation in the capital increase of another company;
• transactions on the basis of which the Company establishes or terminates any company
and/or business unit;
• transactions on the basis of which the Company borrows or approves loans exceeding
EUR 2,000,000.00, except for such transactions concluded between the Company and its
subsidiaries and the borrowing operations of the Company in amounts as included in the
Company’s borrowing plan, which is approved by the Supervisory Board of the Company.
For the avoidance of doubt, a series of several consecutive loans taken out by the
Company from the same lender or granted by the Company to the same borrower shall be
considered a single loan, whereby related companies in the sense of the provision of Article
527 of the Companies Act shall also be considered the same lender or borrower;
• individual purchases or sales of the non-current intangible or tangible fixed assets and
investment property of the Company, for amounts exceeding EUR 5,000,000.00. For the
avoidance of doubt, a set of several interconnected transactions shall also be considered
a single transaction, in particular insofar as they represent a single investment or are part
of a single investment programme;
• transactions on the basis of which the Company (a) establishes a mortgage, building right
or any other encumbrance on immovable property owned by the Company, with the
exception of transactions establishing (quasi or true) real easements (i) to the benefit of
public and private operators for the purpose of servicing the Company’s immovable
property or (ii) to the benefit of the state or a municipality or of a public service operator; or
(b) establishes a lien or otherwise encumbers other fixed assets or intangible assets of the
Company;
• granting a power of procuration;
• other transactions, if so decided by the Supervisory Board of the Company by a decision.
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The above also applies, mutatis mutandis, to transactions entered into by subsidiaries in the
course of their operations and in respect of which the consent of the Company’s Management
Board must be obtained prior to the conclusion. For most of the above transactions, the
Management Board must seek prior consent from the Supervisory Board before granting any
consent requested by the management of any of its subsidiaries.
The composition of the Management Board of Petrol d.d., Ljubljana changed in 2023. Until 2
August 2023, it consisted of five members, after which it had four members from 3 August to
31 August, followed by five members in the period between 1 September and 14 September,
six members from 15 September to 22 November, five members from 23 November to 8
December, and four members from 9 December until the end of 2023.
Members of the Management Board of Petrol d.d., Ljubljana in 2023:
Nada Drobne Popović, President of the Management Board
In the period from 25 October 2019 to 10 February 2020, she managed Petrol d.d., Ljubljana
as the President of the Management Board ad interim (after being appointed from among
Supervisory Board members). On 11 February 2020, she was appointed by the Supervisory
Board as the President of the Management Board for a five-year term of office. Her term of
office ended by mutual agreement on 22 November 2023. Born in 1975, she holds a Master
of Science degree from the School of Government and European Studies, Brdo pri Kranju.
Fields of work and responsibility:
From 1 January to 2 August 2023:
• procurement and trading of petroleum products and energy commodities
• procurement of merchandise and products for internal supply
• human resources, processes and general administration
• cabinet of the Management Board
• strategy
• sustainable development, quality and safety
• legal affairs
• corporate security and business control
• internal audit.
From 3 to 31 August 2023:
• procurement and trading of petroleum products and energy commodities
• procurement of merchandise and products for internal supply
• human resources, processes and general administration
• cabinet of the Management Board
• strategy
• sustainable development, quality and safety
• legal affairs
• corporate security and business control
• internal audit
• operational management
• logistics.
From 1 September to 22 November 2023:
• procurement and trading of petroleum products and energy commodities
• human resources, processes and general administration
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• cabinet of the Management Board
• strategy
• sustainable development, quality and safety
• legal affairs
• corporate security and business control
• internal audit.
Sašo Berger, President of the Management Board
On 15 September 2023, he was appointed as a Member of the Management Board for a five-
year term of office. His term of office as a member of the Management Board ended early on
22 November 2023, when he was appointed President of the Management Board for a five-
year term starting on 23 November 2023. Born in 1966, holds a bachelor’s degree in
economics.
Fields of work and responsibility:
From 15 September to 22 November 2023:
• B2B & B2G sales
• natural gas
• electricity
• IT.
From 23 November to 31 December 2023:
• B2B & B2G sales
• natural gas
• electricity
• informatics
• procurement and trading of petroleum products and energy commodities
• human resources, processes and general administration
• cabinet of the Management Board
• strategy
• sustainable development, quality and safety
• legal affairs
• corporate security and business control
• internal audit.
Matija Bitenc, Member of the Management Board
On 11 March 2020, he was appointed as a Member of the Management Board for a five-year
term of office. His term of office ended on 8 December 2023, following a declaration of
resignation. Born in 1980, he holds a master’s degree in economics.
Fields of work and responsibility:
From 1 January to 2 August 2023:
• finance
• accounting
• back office
• IT
• controlling
• demand and project management
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• risk management
• business intelligence.
From 3 to 31 August 2023:
• finance
• accounting
• back office
• IT
• controlling
• demand and project management
• risk management
• business intelligence
• energy and solutions.
From 1 to 14 September 2023:
• finance
• accounting
• back office
• IT
• controlling
• risk management
• business intelligence.
From 15 September to 8 December 2023:
• finance
• accounting
• back office
• controlling
• risk management
• business intelligence.
Marko Ninčević
On 1 September 2023, he was appointed as a Member of the Management Board for a five-
year term of office. Born in 1981, he holds a bachelor’s degree in economics and an MBA.
Fields of work and responsibility:
From 1 September to 8 December 2023:
• energy production, energy solutions and mobility
• operational management
• logistics
• heating systems
• demand and project management
• strategic, technical and operational procurement.
From 9 to 31 December 2023:
• energy production, energy solutions and mobility
• operational management
• logistics
• heating systems
• demand and project management
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• strategic, technical and operational procurement
• finance
• accounting
• back office
• controlling
• risk management
• business intelligence.
Jože Smolič, Member of the Management Board
He was appointed as a Member of the Management Board for a five-year term of office starting
on 28 August 2020. Born in 1967, he holds a master’s degree in entrepreneurial management.
Fields of work and responsibility:
From 1 January to 14 September 2023:
• B2C sales
• B2B & B2C sales
• digital channels
• marketing and customer experience management
• fuels and petroleum products.
From 15 September to 31 December 2023:
• B2C sales
• marketing and customer experience management
• fuels and petroleum products
• gastro
• merchandise and services
• development of sales outlets.
Jože Bajuk, Member of the Management Board
On 11 March 2020, he was appointed as a Member of the Management Board for a five-year
term of office. His term of office ended on 2 August 2023, following a declaration of resignation.
Born in 1974, he holds a master’s degree in sociology and a bachelor’s degree in law.
Fields of work and responsibility:
From 1 January to 2 August 2023:
• energy and solutions
• logistics
• operational management.
Zoran Gračner, Member of the Management Board and Worker Director
On 11 December 2020, he was appointed by the Supervisory Board as a Member of the
Management Board and Worker Director for a five-year term of office. Born in 1970, he holds
a master’s degree in business administration and a graduate diploma in mechanical
engineering. In accordance with the Articles of Association of Petrol d.d., Ljubljana, the Worker
Director participates in decision-making in connection with issues relating to the formulation of
personnel and social policy.
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Responsibilities and composition of the Supervisory Board
In the two-tier management system, the Supervisory Board of Petrol d.d., Ljubljana supervises
the conduct of the Company’s operations (including the selection and appointment of the
Management Board), tasks related to the powers of the General Meeting and other statutory
tasks.
Under the Company’s Articles of Association, the Supervisory Board of Petrol d.d., Ljubljana
comprises nine members who are elected for a term of four years and may be re-elected when
their term of office expires. The Supervisory Board elects its President and Deputy President
from among its members. The President and Deputy President of the Supervisory Board are
always shareholder representatives. The President of the Supervisory Board represents the
Company in relation to the Management Board, and the Supervisory Board in relation to the
Management Board and third parties, unless specifically determined otherwise. The President
of the Supervisory Board represents the Company in concluding the contract with the auditor
of the annual report and the consolidated annual report and in relation to the members of the
Supervisory Board.
The Members of the Supervisory Board of Petrol d.d., Ljubljana were as follows in 2023:
Janez Žlak, President of the Supervisory Board, shareholder representative
Project Manager at HSE, d.o.o., Ljubljana. He was appointed for a four-year term of office
beginning on 22 April 2021 at the 33
rd
General Meeting on 22 April 2021. He has been serving
as President of the Supervisory Board since the constituent meeting on 22 April 2021.
Borut Vrviščar, Deputy President of the Supervisory Board, shareholder representative
General Manager of Kuehne+Nagel, AG, Schindellegi, CH. He was appointed for a four-year
term of office as a Member of the Supervisory Board beginning on 11 April 2021 at the 32
nd
General Meeting on 28 December 2020. He has been serving as Deputy President of the
Supervisory Board since the constituent meeting on 22 April 2021.
Mladen Kaliterna, Member of the Supervisory Board, shareholder representative
Executive Director of Perspektiva FT d.o.o., Ljubljana. He was appointed for a four-year term
of office beginning on 16 July 2013 at the 23
rd
General Meeting on 4 April 2013, and
reappointed at the 27
th
General Meeting on 10 April 2017, with his four-year term of office
beginning on 16 July 2017. From 11 April to 21 April 2021, he served as the President of the
Supervisory Board. He was reappointed at the 32
nd
General Meeting on 28 December 2020,
with his four-year term of office beginning on 16 July 2021.
Alenka Urnaut, Member of the Supervisory Board, shareholder representative
Director and founder of Renova Real d.o.o. She was appointed for a four-year term of office
beginning on 11 April 2021 at the 32
nd
General Meeting on 28 December 2020.
Mário Selecký, Member of the Supervisory Board, shareholder representative
Representative of J&T Bank, a.s. He was appointed for a four-year term of office beginning on
11 April 2021 at the 32
nd
General Meeting on 28 December 2020.
Aleksander Zupančič, Member of the Supervisory Board, shareholder representative
Director of Javno podjetje komunala Brežice d.o.o. He was appointed for a four-year term of
office beginning on 11 April 2021 at the 32
nd
General Meeting on 28 December 2020.
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Alen Mihelčič, Member of the Supervisory Board, employee representative
Director of Petroleum Product Management and Sales at Petrol d.d., Ljubljana. He was
appointed for a four-year term of office beginning on 22 February 2017 at the 3
rd
Workers’
Council meeting on 27 January 2017. He was reappointed at the 44
th
Workers’ Council meeting
on 4 December 2020, with his four-year term of office beginning on 23 February 2021.
Robert Ravnikar, Member of the Supervisory Board, employee representative
Head of Ljubljana–Kranj Retail regional unit at Petrol d.d., Ljubljana. He was appointed for a
four-year term of office beginning on 22 February 2017 at the 3
rd
Workers’ Council meeting on
27 January 2017. He was reappointed at the 44
th
Workers’ Council meeting on 4 December
2020, with his four-year term of office beginning on 23 February 2021.
Marko Šavli, Member of the Supervisory Board, employee representative
Specialised Assistant, Occupational Health and Safety and Fire Safety at Petrol d.d., Ljubljana.
Following the resignation by Member of the Supervisory Board Zoran Gračner, Mr Šavli was
appointed as a substitute member of the Supervisory Board (employee representative) at the
44
th
Workers’ Council meeting on 4 December 2020, in accordance with provision 10.13 of the
Company’s Articles of Association. His term of office began on 11 December 2020. At the
same meeting, he was also appointed for a four-year term, which he took on 23 February 2021
after the end of his term as a substitute member.
The Supervisory Board had two standing committees in 2023: the statutory Audit Committee
and the Human Resources and Management Board Evaluation Committee.
The Audit Committee was composed of the following members in 2023:
• Alenka Urnaut, Chair
• Mladen Kaliterna, Member
• Aleksander Zupančič, Member
• Robert Ravnikar, Member
• Sabina Merhar, External Member.
The Human Resources and Management Board Evaluation Committee was composed
of the following members in 2023:
• Borut Vrviščar, Chair
• Janez Žlak, Member
• Mário Selecký, Member
• Alen Mihelčič, Member
• Marko Šavli, Member
Remuneration policy for members of the management and supervisory bodies
In accordance with the provision of Article 294a of the Companies Act-1, the Company has
established a remuneration policy for management and supervisory bodies, which was
submitted to the General Meeting of Shareholders for approval at the Company’s 37
th
General
Meeting of Shareholders. The accounting section of this report (Chapter 7 Related party
transactions) discloses the nominal amounts received in the 2023 financial year by each
Management Board member and each Supervisory Board member, and they are defined in
more detail in the Report on the Remuneration of the Management and Supervisory Bodies of
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Petrol d.d., Ljubljana in the 2023 financial year, in accordance with the provision of Article 294b
of the Companies Act-1. The information on fixed and variable remuneration and other
payments to the Management Board, as well as the criteria and methods used to determine
compliance with these criteria, are also disclosed for the members of the Management Board.
The part of the remuneration policy relating to the members of the Management Board is
proposed by the Supervisory Board, while the remuneration policy for the Management Board
member who is also the Worker Director and the legal representative authorised to represent
the Company only together with the President of the Management Board and, in accordance
with a Supervisory Board’s resolution, is set in the Workers’ Participation in Management
Agreement concluded by the Management Board and the Workers’ Council on 7 October 1997.
The variable part of the remuneration of the Member of the Management Board who is also
the Worker Director is adjusted to the applicable multiple of the monthly salary that is
determined by the Supervisory Board for the other members of the Management Board.
In accordance with the proposal of the Remuneration Policy for the Management and
Supervisory Bodies of Petrol d.d., Ljubljana, other members of the Management Board are
entitled to the following remuneration:
• The remuneration of members of the Management Board consists of a fixed and a variable
part. In addition to the fixed and variable part, members of the Management Board are in
certain cases entitled to severance pay and certain other benefits or rights.
• The fixed part of the remuneration is considered payment to members of the Management
Board for the performance of their tasks, efforts and responsibilities and is determined to
ensure financial stability and reimbursement for efforts, and reflects professional
experience and loyalty and does not depend on business results or other unforeseen
factors. The basic guideline in determining this part of the remuneration is the complexity
and responsibility of the tasks. The fixed part of the remuneration is the basic salary of
members of the Management Board such as determined in the employment agreement
and expressed in a gross amount. The basic salary is determined by taking into
consideration the complexity and responsibility of work, company size (number of
employees, value of assets and generated net sales revenue) and the operational
complexity (organisation, internationalisation, requirements of the direct economic
environment, complexity of key products, regulation of activities).
• Variable remuneration is based on the performance of the Petrol Group and the
Management Board as a whole. Performance criteria follow transparency, flexibility and
strict adherence to predefined objectives. Variable remuneration comprises remuneration
according to the fulfilment of financial and non-financial criteria, which contribute to both
the short-term and long-term performance of the Company. The variable part of the
remuneration is determined based on criteria that contribute to the promotion of the
business strategy, long-term development and sustainability of the Company. The criteria
are known in advance and their fulfilment is verified using predefined methods. The
Management Board also submits a report to the Supervisory Board on the work of the
Management Board no later than when adopting the audited annual report for the financial
year, which, taking into account these Rules, provides all the necessary bases on which
the Supervisory Board can assess the performance of the Management Board in the
financial year and consequently determine the appropriate amount of variable
remuneration.
• Members of the Management Board are also entitled to other remuneration types:
- premiums for life, accident and disability insurance, voluntary supplementary pension
insurance, liability insurance for damage to the Company or third parties, and health
insurance, under the conditions specified in the employment agreement;
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- under the same conditions and in the amount that applies to employees of the
Company, to pay for holiday leave, compensation for holiday leave, jubilee awards, the
reimbursement of travel expenses, and the reimbursement of expenses for meals
during work;
- non-competition clause: within the provisions of the Act governing employment
relationships and under the conditions set out in the employment agreement;
- some other benefits appropriate to the position of a member of the Management Board
for the smooth performance of the function;
• Members of the Management Board are also entitled to severance pay under the
conditions determined by law, the remuneration policy and the employment agreement.
The remuneration of the Supervisory Board is determined by the General Meeting of the
Company. At the 33
rd
General Meeting of Shareholders, which was held on 22 April 2021, a
resolution was adopted that laid down the remuneration of Supervisory Board members. The
full text of the resolution is set out in the announcement of the General Meeting resolutions,
available at: 33rd General Meeting of Shareholders. The full document of the Remuneration
Policy of the Management and Supervisory Bodies of Petrol d.d., Ljubljana is approved by the
General Meeting of Shareholders. Pursuant to Article 294a(3) of the ZGD-1, the Remuneration
Policy will be resubmitted to the General Meeting of Shareholders for approval at its next
meeting.
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APPENDIX C: Composition and remuneration of the Management Board and Supervisory Board
C.1: Composition of the Management Board in the 2023 financial year
Name and
Surname
Function (president,
member)
Area of work in the Management Board
First
appointment
to the office
Termination
of office/
mandate
Gender Nationality
Year of
birth
Education Professional profile
Membership
of the
supervisory
bodies of
non-related
companies
Nada
Drobne
Popović
President of the
Management Board
(until 22 November
2023)
From 1 January to 2 August 2023: procurement of and trade in petroleum products and energy
commodities; procurement of merchandise and products for internal supply; human resources,
processes and general administration; cabinet of the Management Board; strategy; sustainable
development, quality and safety; legal affairs; corporate security and control of operations;
internal audit.
From 3 to 31 August 2023: procurement of and trade in petroleum products and energy
commodities; procurement of merchandise and products for internal supply; human resources,
processes and general administration; cabinet of the Management Board; strategy; sustainable
development, quality and safety; legal affairs; corporate security and control of operations;
internal audit; operational management; logistics.
From 1 September to 22 November 2023: procurement of and trade in petroleum products and
energy commodities; human resources, processes and general administration; cabinet of the
Management Board; strategy; sustainable development, quality and safety; legal affairs; corporate
security and control of operations; internal audit.
11 February
2020; 25
October 2019
(ad interim)
22 November
2023
female Slovene 1975
Master of Science, School of Government and
European Studies, Brdo near Kranj
All-round management competencies, including
management of equity investments
/
Sašo Berger
President of the
Management Board
(from 23 November
2023)
From 23 to 31 November 2023: sales to business customers and the public sector (B2B & B2G);
natural gas; electricity; informatics; procurement of and trade in petroleum products and energy
commodities; human resources, processes and general administration; cabinet of the
Management Board; strategy; sustainable development, quality and safety; legal affairs; corporate
security and control of operations; internal audit.
23 November
2023
22 November
2028
male Slovene 1966 Bachelor of Economics
Competencies in the area of corporate
governance, finances, accounting, controlling, IT,
procurement, human resources and legal affairs
/
Marko
Ninčević
Member of the
Management Board
(since 1 September
2023)
From 1 September to 8 December 2023: energy production, energy solutions and mobility;
operational management; logistics; heating systems; management of development needs and
projects; strategic, technical and operational procurement.
From 9 to 31 December 2023: energy production, energy solutions and mobility; operational
management; logistics; heating systems; management of development needs and projects;
strategic, technical and operational procurement; finances; accounting; back office; controlling;
risk management; business intelligence.
1 September
2023
31 August
2028
male Slovene 1981 Bachelor of economics, with an MBA.
Competencies in the area of corporate
governance, finance, risk management, audit
/
Jože Smolič
Member of the
Management Board
From 1 January to 14 September 2023: sales to end-customers (B2C); sales to business
customers and the public sector (B2B and B2C); digital channels; marketing and user experience
management; fuels and petroleum products.
From 15 September to 31 December 2023: sales to end-customers (B2C); marketing and user
experience management; fuels and petroleum products; gastro; merchandise and services;
development of physical points of sale.
28 August 2020
27 August
2025
male Slovene 1967 Master of Entrepreneurial Management
Competencies in the area of trade, marketing,
sales promotions, retail sales, the development of
new sales networks and markets, the development
of new point-of-sale types and concepts
/
Sašo Berger
Member of the
Management Board
(from 15 September to
22 November 2023)
From 15 September to 22 November 2023: information technology; sales to business customers
and the public sector (B2B & B2C); natural gas; electricity.
15 September
2023
22 November
2023
male Slovene 1966 Bachelor of Economics
Competencies in the area of corporate
governance, finances, accounting, controlling, IT,
procurement, human resources and legal affairs
/
Matija Bitenc
Member of the
Management Board
(until 8 December
2023)
From 1 January to 2 August 2023: finances; accounting; back office; informatics; controlling;
management of development needs and projects; risk management; business intelligence.
From 3 to 31 August 2023: finances; accounting; back office; informatics; controlling;
management of development needs and projects; risk management; business intelligence; energy
and solutions.
From 1 to 14 September 2023: finances; accounting; back office; informatics; controlling; risk
management; business intelligence.
From 15 September to 8 December 2023: finances; accounting; back office; controlling; risk
management; business intelligence.
11 March 2020
8 December
2023
male Slovene 1980 Master of Economics
Competencies in the area of corporate finance,
risk management, business intelligence and
information technology
/
Jože Bajuk
Member of the
Management Board
(until 2 August 2023)
Until 2 August 2023: energy and solutions; logistics; operational management. 11 March 2020 2 August 2023 male Slovene 1974 Master of Sociology, Bachelor of Law
Competencies in the area of law, corporate
governance, energy (especially renewable
energy), electricity trade and project ESCO
/
Zoran
Gračner
Member of the
Management Board,
Worker Director
Worker Director, not responsible for any area of work; participates in decision-making in
connection with issues relating to the formulation of personnel and social policy.
11 December
2020
10 December
2025
male Slovene 1970
Master of Business Administration, Graduate
of Mechanical Engineering.
Competencies in the area of energy /
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C.2: Composition of the Supervisory Board and committees in the 2023 financial year
Name and
Surname
Function
(president,
deputy,
member of the
Supervisory
Board)
First
appointment to
the office
Termination of
office/
mandate
Shareholder/
employee
representative
Attendance at
Supervisory
Board meetings
according to the
total number of
meetings
Gender Nationality
Year of
birth
Education
Professional
profile
Independence
according to
Article 23 of
the Code
(YES/NO)
Existence of
a conflict of
interest in
the financial
year
(YES/NO)
Membership
of the
supervisory
bodies of
other
companies
Membership of
committees
(audit, HR,
remuneration,
etc.)
President/
member
Attendance at
committee
meetings
according to the
total number of
committee
meetings
Janez Žlak
President of the
Supervisory
Board in 2023
22 April 2021 21 April 2025
Shareholder
representative
All
22 meetings of the
Supervisory Board
in 2023
Male Slovene 1965 Master of Law
Banking,
organisation and
management
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of
the committee
in 2023
4 out of 4 meetings
in 2023
Borut Vrviščar
Deputy President
of the
Supervisory
Board in 2023
28 December
2020
10 April 2025
Shareholder
representative
21 out of 22
meetings of the
Supervisory Board
in 2023
Male Slovene 1969
MBA, University graduate
in economic engineering
Real estate
appraisal
YES NO / Audit Committee
President of
the committee
in 2023
13 out of 13
meetings
in 2023
Aleksander
Zupančič
Member of the
Supervisory
Board in 2023
28 December
2020
10 April 2025
Shareholder
representative
All 22 meetings of
the Supervisory
Board
in 2023
Male Slovene 1979 Bachelor of Law
Organisation and
management, law,
psychotherapy and
coaching
YES NO / Audit Committee
Member of
the committee
in 2023
13 out of 13
meetings
in 2023
Mladen Kaliterna
Member of the
Supervisory
Board in 2023
4 April 2013 15 July 2025
Shareholder
representative
All
22 meetings of the
Supervisory Board
in 2023
Male Slovene 1967
Bachelor of Electronics
Engineering, Leadership
and strategic
management, Top
management programme
Logistics,
organisation and
management
YES NO /
Human Resources
and Management
Board Evaluation
Committee
President of
the committee
in 2023
4 out of 4 meetings
in 2023
Alenka Urnaut
Member of the
Supervisory
Board in 2023
28 December
2020
10 April 2025
Shareholder
representative
21 out of 22
meetings of the
Supervisory Board
in 2023
Female Slovene 1975 PhD
General
management and
leadership,
government
investment
management
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of
the committee
in 2023
4 out of 4 meetings
in 2023
Mário Selecký
Member of the
Supervisory
Board in 2023
28 December
2020
10 April 2025
Shareholder
representative
19
out of 22 meetings
of the Supervisory
Board
in 2023
Male Slovak 1975 Economist
Commercial
operations
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of
the committee
in 2023
4 out of 4 meetings
in 2023
Alen Mihelčič
Member of the
Supervisory
Board in 2023
27 January 2017 22 February
2025
Employee
representative
All
22 meetings of the
Supervisory Board
in 2023
Male Slovene 1975 Bachelor of Economics Sales YES NO / Audit Committee
Member of
the committee
in 2023
13 out of 13
meetings
in 2023
Robert Ravnikar
Member of the
Supervisory
Board in 2023
27 January 2017 22 February
2025
Employee
representative
All
22 meetings of the
Supervisory Board
in 2023
Male Slovene 1979
Master of Management
and Organisation
Investment and
management of
Group companies
YES NO / Audit Committee
Member of
the committee
in 2023
13 out of 13
meetings
in 2023
Marko Šavli
Member of the
Supervisory
Board in 2023
11 December
2020
22 February
2025
Employee
representative
All
22 meetings of the
Supervisory Board
in 2023
Male Slovene 1973 Utility Engineer Safety, compliance YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of
the committee
in 2023
4 out of 4 meetings
in 2023
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External committee members
Appendices C.3 and C.4 are included in the financial section of the annual report.
Sašo Berger Drago Kavšek
President of the Management Board Member of the Management Board
Marko Ninčević Jože Smolič
Member of the Management Board Member of the Management Board
Metod Podkrižnik Zoran Gračner
Member of the Management Board Member of the Management Board and
Worker Director
Ljubljana, 11 April 2024
Name and
Surname
Committee
Attendance at
committee meetings
according to the total
number of committee
meetings
Gender Nationality Education
Year of
birth
Professional profile
Membership
of the
supervisory
bodies of non-
related
companies
Sabina
Merhar
Audit Committee
10 out of 13 meetings
in 2023
Female Slovene
Master of
Entrepreneurial
Management,
Accounting and
Auditing
1975
Competencies in
financial and
accounting
management, auditing
/
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9. Non-financial statement
Pursuant to Articles 56(12) and 70c of the Companies Act (ZGD-1), Petrol d.d., Ljubljana
hereby issues the Non-financial statement of the Petrol Group and Petrol d.d., Ljubljana.
9.1 Company’s business model
The Petrol Group is a business concern consisting of the parent company Petrol d.d., Ljubljana
and its subsidiaries, jointly controlled entities and associates located in the countries of
Central and South-Eastern Europe. The principal activities of the Group companies include
sales of fuels and petroleum products and sales of other energy commodities, merchandise
and services. Petrol’s core development activity is focused on efficient energy use-related
goals and, hence, advice on energy solutions and renewable electricity generation (see
Chapter 13 Operations by Product Groups for details about the sales of individual products).
The Petrol Group companies are present in 9 European countries (details in chapter 5. The
Petrol Group in the region ).
To support the implementation of the Petrol Group Strategy 2021-2025, we started to develop
an Advanced Operating Model for the Group, which will be agile and lean, enabling capability
development in key operational areas.
The Advanced Operating Model introduces the following four key changes to the organisation:
• Separation of sales and product management where sales functions are focused on the
customer who is put in the centre of operations, and product management focused on
ensuring an excellent customer experience and product profitability;
• A process-driven organisation with a focus on increased collaboration, lean and agile
processes, and clearly defined roles and responsibilities;
• Unified or centralised shared functions with responsibility for quality and efficient internal
services; and
• Increased cross-company collaboration and management of subsidiaries through an
umbrella organisation.
We are seeking synergies and increasing productivity through activities aimed at streamlining
and combining common functions. We place great emphasis on digitalising and automating
our processes to enable us to be more active in the market, better support our partners and
offer a wider range of services and products.
The Petrol Group’s sustainable operations are based on respect for the natural environment
and our partnership with society. In September 2023, the Petrol Group published the
Sustainability Report of the Petrol Group 2022, which was prepared in accordance with GRI
standards
2
. Read more about this in the Chapter Sustainable development.
2
GRI – Global Reporting Initiative
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9.2 Policies and due diligence, policy results, main risks and risk management, key
performance indicators
9.2.1 Environment
Policy
The policies defining the environmental impact of the Petrol Group are: the framework safety
and security policy, the energy policy and the quality and environmental management policy.
Being an integral part of all the processes at Petrol, all three policies overlap as we conduct
our business.
The quality and environmental management policy lays down our environmental protection
efforts. Environmental protection is integrated into all levels of operations of the Petrol Group.
Petrol’s environmental management system complies with the requirements of the
international standard ISO 14001 and is an integral part of Petrol’s development plan (see
Quality control for a list of certificates by company). All of Petrol’s employees are responsible
for ensuring consistent compliance with the requirements, while the Company’s Management
Board guarantees that these requirements can actually be met and that our fundamental
environmental goals can be achieved.
Petrol recognises the importance of sustainable development and environmental protection.
The transition to a low-carbon energy company, partnership with employees and the social
environment, and the circular economy constitute the Petrol Group’s business commitments
in this strategic period. Through the continuous development of fuels, we will actively contribute
to reducing emissions. At the same time, we will help reduce the carbon footprint of both the
Petrol Group and our customers by pursuing clear sustainable policies. Thanks to improved
internal processes, new competencies and empowered employees, we will be even more
proactive in addressing the current and future needs of our customers and adapt our
operations to the user, who is at the centre of our attention.
In the field of environmental management, the Petrol Group has committed itself to four
fundamental goals:
1. To keep all storage facilities, service stations and other buildings up-to-date with
current and foreseen environmental standards and guidelines;
2. To reduce the emissions of hazardous substances to the minimum;
3. To use natural resources economically;
4. To prevent accidents and minimise the possibility of accidents.
Depending on the activities taking place at different sites, Petrol d.d., Ljubljana has obtained
several environmental permits. It holds valid environmental permits for all establishments
operating under the SEVESO Directive
3
and for installations operating under the IED
Directive
4
. It also consistently implements all the provisions defined in the environmental
permits.
The energy policy obliges Petrol to establish control over the use of energy and water that
are necessary for the provision of its services. At Petrol, we are committed to continuously
3
SEVESO - Directive on the control of major-accident hazards involving dangerous substances
4
IED - Industrial Emissions Directive
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optimising our business efficiency and reducing energy and water consumption, while also
reducing our environmental impact and, consequently, greenhouse gas emissions. Through
its energy policy, Petrol aims for responsible and efficient energy use and water saving in
connection with all its property, plant and equipment, which is also reflected in a smaller
environmental footprint. We have set ourselves the goal of using natural resources efficiently
and switching to renewable energy sources. Petrol d.d., Ljubljana has maintained an energy
management system certified to ISO 50001:2018 requirements for many years. Through this
system, we aim to reduce energy consumption and CO
2
emissions, while also improving
energy management within Petrol and with our external users of energy and environmental
solutions.
Due to the strategic importance of products related to oil and merchandise sales and being
aware of their vulnerability, ensuring the safety, security and continuity of business is one of
the key principles of the Petrol Group’s business. This principle is implemented by setting up
a functioning integrated safety and security system, meaning a comprehensive, all-
encompassing safety and security system in which the synergy between individual safety and
security areas needs to be ensured together with the synergy of safety and security areas
(safety and security processes) with other business processes.
The framework safety and security policy includes the following areas:
• Occupational safety and health
• Fire safety
• Physical and technical protection of people and property
• Environmental protection
• Safe handling of chemicals and safety while transporting hazardous goods by road, rail or
sea
• Protection of classified information and trade secrets
• Information security.
Due diligence
Environmental due diligence is carried out as an integral part of the environmental
management system. This includes the energy aspect and the safety and security aspect, as
Petrol considers the environment in a very broad sense. For each process, an annual activity
report is drawn up, including environmental content (monitoring results, inspection results, the
execution of environmental projects, and compliance). The Company’s management reviews
the reports and discusses them as part of the management review of integrated management
systems. The management review also covers the quality and environmental management
policy and addresses the results of internal audits. The management review leads to
conclusions addressing changes in the environmental management system, the continuous
improvement of the system and opportunities for the better integration of the environmental
management system into the processes of the Company.
Main risks and risk management
The Petrol Group is facing a new challenge of integrating and segmenting the risks associated
with a comprehensive ESG
5
approach. Identifying and assessing sustainability risks that can
5
ESG – Environmental, Social and Governance
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have a significant impact on the Petrol Group’s value is part of responsible corporate
governance and a duty we owe to our stakeholders and investors. The Petrol Group recognises
that ESG risks will have a significant impact on the macroeconomic risk factors and therefore
on the risks and profitability of our business portfolios.
Environmental risks are those related to the quality and functioning of environmental and
natural systems, such as climate change, the availability of natural resources, including energy
and water, changes in land use and urbanisation, air, water and soil quality, waste
management and the protection of natural habitats and biodiversity. Climate change is
classified as an environmental risk, but it is also a source of structural change that affects
economic activity and, indirectly, social, governance and financial systems. It has a long-term
impact on the business activities and sectors concerned. The Petrol Group operates in sectors
(energy, transport, infrastructure and others) with a higher probability of physical risks. These
are also the sectors likely to be affected by the transition to a low-carbon economy. In
particular, assets directly or indirectly related to the extraction, processing, combustion or use
of fossil fuels, as well as assets that are not energy efficient, may be subject to sudden and
severe devaluation. Geographically, the impact of climate change is expected to vary, so it is
important to analyse the geographical areas in which we operate separately.
In the Petrol Group, risks related to environmental protection are managed through the Group’s
framework safety and security policy, the compliance system and the elementary
(implementing) safety, security and environmental sub-policies/systems (e.g. the safety and
security management system under the SEVESO Directive, which applies to all SEVESO
establishments managed by the Petrol Group).
The key risks are also related to ensuring process safety, which implies the comprehensive
protection of people, the environment and property in the narrow and broad sense when
handling hazardous substances. Process safety defines the areas of occupational safety and
health, environmental protection (air, water, soil, noise and radiation), safety culture, the
handling and manipulation of hazardous and non-hazardous chemicals, fire protection,
inspection supervision and other areas.
The above is provided:
• through compliance with the applicable legislation relating to safety, the environment,
security, protection and rescue;
• through the consistent implementation of instructions, warnings and regulatory
arrangements laid down by respective administrative bodies in the relevant areas of safety,
security and the environment;
• by taking into account national programmes in the field of environmental protection,
protection against natural and other disasters, occupational health and safety, road safety
and other areas of safety;
• through effective security and the protection of the Petrol Group in terms of safety, security
and rescue, as well as through the organisation, powers and responsibilities of employees
to ensure control over the operation of establishments from a technical, safety and security
point of view;
• through instructions, procedures and practices applicable to third-party access to
establishments;
• through instructions, procedures and practices applicable to hazardous works at the
establishments;
• by managing the operation from the point of view of controls, monitoring and audits;
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• by defining and evaluating the risk of major disasters and measures to mitigate
their consequences;
• by managing changes from a technical, safety and security point of view;
• by managing incidents, including the examination of events and action
plans to prevent recurrence (i.e. LFI
6
);
• by verifying and evaluating the risks and environmental aspects that serve as a basis for
planning safety and security measures in individual areas of safety and security;
• through operations compliant with the ISO 9001:2015 standard (quality management), the
14001:2015 standard (environmental management) and the occupational health and safety
standards;
• by ensuring safe and quality products and services.
High levels of competence and awareness among employees are of key importance for the
successful implementation of the safety and security system. Therefore, the Petrol Group
continuously carries out training in accordance with the training programme and plans. The
training covers the following areas: occupational health and safety, handling hazardous
chemicals, the transport of hazardous goods, fire safety, anti-explosion protection,
environmental protection, the SEVESO plant safety management system, information security,
etc.
Societal risks are those related to the rights, well-being and legitimate interests of people and
local communities, such as human rights, diversity and the promotion of equal opportunities,
demographic changes, the right to appropriate working conditions, including the prohibition of
child and forced labour, and health and safety at work, education and the development of
human capital, the transition to digital technology and artificial intelligence, and others.
Governance risks are those related to corporate and organisational governance, such as the
transparency, ethics and integrity of business practices and compliance with laws, corruption,
fiscal responsibility, management board composition, independence and diversity, executive
incentive mechanisms, shareholder and stakeholder rights, and protection/restriction of
competition.
The first step towards integrating an integrated ESG approach to risk, which we started in
2022, is the integration of environmental/climate risks into the Petrol Group’s overall risk
management. In 2023, we adopted the Petrol Group Climate Policy, which is the basis for
building a new model for managing climate change risks in the Petrol Group. A model will be
put in place to understand the vulnerability to current and future climate change, to identify,
assess and monitor business risks and opportunities, and to take action to manage these risks
and capitalise on opportunities.
Key performance indicators
Petrol was the first energy company in Slovenia to commit itself to sustainable development.
We perceive our role in fulfilling this strategic commitment as twofold. On the one hand, we
pursue our core business with a high level of responsibility towards the natural and social
environment and, on the other hand, we are actively promoting the sustainable transformation
of the wider society through our Energy and Solutions products. In addition to optimising the
6
LFI – Learning from incidents
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environmental footprint of the core business activity, we help our partners reduce their energy,
carbon, water and material footprint with our Energy and Solutions products.
Every two years, we prepare a standalone sustainability report stating the indicators
according to the GRI
7
Guidelines (in September 2023, Petrol d.d., Ljubljana published the 2022
Sustainability Report of the Petrol Group). The content of the sustainability report is determined
on the basis of three criteria: relevance, the integrity of key indicators of sustainable
development management and the sustainability context.
• The criterion of relevance means that the content of the report shall be narrowed down to
the most relevant areas of interest defined based on the matrix of key stakeholders and
the sustainable development strategy of the Petrol Group. We selected those that influence
our sustainability footprint the most.
• Through sustainability indicators, which are used to measure our performance, we
obtained additional leverage for long-term sustainable development management in new
areas defined as our strategic goal.
• Because our sustainability performance conforms to the life cycle philosophy (LCA
8
), the
key indicators of our sustainability performance also include those concerning our suppliers
and customers. We will continue the orientation of spreading our sustainable impact,
considering that our sustainability performance gradually influences the sustainable
transformation of the wider society.
The sustainability report provides an analysis of the present and, where relevant, a comparison
with past trends, while also being forward-looking. We realise that sustainable development is
not a goal but merely a path, so our path is carefully recorded and assessed in the three
dimensions of time. Reporting is transparent and accurate as per the data currently available
to the Petrol Group.
The environmental aspects of our sustainable development are measured and managed
through indicators that reflect the environmental footprint of our own activities (service stations,
storage facilities for petroleum products and liquefied petroleum gas (LPG), treatment plants,
the biogas plant, office buildings, etc.), and through indicators that reflect the contribution of
our activities towards a smaller environmental footprint of other parts of the wider society.
• The monitoring of wastewaters, air emissions, noise sources, leak detection in reservoirs
and fuel quality is carried out on a regular basis.
• We also monitor the treatment of biodegradable waste and carry out waste assessments.
• To monitor the functioning and management of biological processes in treatment plants
and the biogas plant, we perform daily measurements of individual parameters, which
ensure successful process control and the possibility of reducing environmental pressures.
• Petrol d.d., Ljubljana is the operator of the SI-64 plant, which is subject to a greenhouse
gas emissions permit. As the operator, we are required to surrender emission allowances
each year equal to the total amount of greenhouse gas emissions released into the
atmosphere by the plant during its operation. This is discussed in more detail in the
Sustainability Report.
• Our strategic sustainability indicators are measured and managed annually.
7
GRI – Global Reporting Initiative
8
LCA – Life Cycle Assessment
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The assessment of environmental aspects is carried out by professionals from different fields
within the Petrol Group. The assessment takes place at least every three years, in the event
of significant legislation or environmental policy changes, or when the opinion of the
stakeholders has changed. We work closely with our suppliers and contractual partners in
managing significant environmental aspects and indicators (for more information, see the
Environmental Aspects section in the 2022 Sustainability Report of the Petrol Group, which
was published by Petrol d.d., Ljubljana in September 2023).
9.2.2 Social and human resource matters and the protection of human rights
Policy
The Petrol Group places social and environmental responsibility at the heart of its business
and social activities. We take an active approach to addressing social and environmental
challenges, which is reflected in our support for a wide range of projects – from sport and
culture to humanitarian and environmental causes. Our commitment to making a positive
impact is reflected in promoting healthier lifestyles and improving the quality of life in the local
and wider communities.
The Petrol Group is one of the biggest employers in Slovenia and the region. The HR strategy
is an important part of the Group’s development strategy. Successful, motivated, committed
and loyal employees are the heart of the Petrol Group and its future. The vision, with which we
address several main challenges of modern society, and ambitious business plans require
comprehensive human resources management. This includes a well-thought-out recruitment
policy, caring for the development and training of staff, teamwork, an effective system of
employee remuneration and promotion, monitoring satisfaction and commitment, and caring
for the safety and health of employees.
Equal opportunities for all is the cornerstone of our work. We respect human rights that are
recognised by internationally established principles and guidelines, including the European
Convention for the Protection of Human Rights and Fundamental Freedoms and the United
Nations Declaration on Human Rights. We comply with legal and human rights standards in
all countries where we operate. This is what guides our business relationships with customers,
suppliers and employees. We promote an ethical attitude towards employees and our wider
environment. The Petrol Group also employs persons with rights recognised based on their
disability. We are a family- and employee-friendly company. The rights and obligations of
employees in Petrol d.d., Ljubljana are regulated by a corporate collective agreement.
We are signatories of the Diversity Charter of Slovenia. We respect diversity in all the
processes of recruitment, promotion and staff development, and provide equal opportunities
for all, regardless of gender, age, nationality, race, religion or other cultural differences and
characteristics. In staffing and staff development, we pay special attention to equal
opportunities for both genders. In the field of diversity, our measures are also introduced
through the Mentoring, Healthy at Petrol, Family-Friendly Company and Open Space
programmes, where we strive to promote intergenerational cooperation and learning at the
Company level, promote occupational health and the involvement of all employees. We also
show care for our employees through the development and promotion of corporate integrity.
Through these activities, we live and spread our value of respect.
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HIGHLIGHTS:
• Petrol’s human resources strategy supports the development of committed and motivated
employees.
• Petrol is committed to equality and respect for human rights, promoting diversity and
ensuring equal opportunities for all employees.
Due diligence
At Petrol, we are aware of the importance of social dialogue and cooperation with social
partners. When adopting regulations governing the rights, obligations and responsibilities of
employees, we organise joint consultations and co-decision-making with the Workers’ Council
or the trade union, in accordance with the applicable legislation and other general regulations.
Employees are united in the Trade Union of the Petrol Group and the Service Station Workers’
Union. Employees in subsidiaries are also members of other trade unions.
The Workers’ Council of Petrol d.d., Ljubljana has four standing committees (Committee for
Status and Personnel Matters, Committee for Occupational Safety and Health Matters, Trade
Union Cooperation Committee, and Committee for the Legal Security of Employees and
Monitoring the Correctness of the Regulations Adopted) comprising 15 members representing
all organisational units. The Worker Director, as a member of the Management Board,
participates in decision-making in connection with issues relating to the formulation of
personnel and social policy. The Supervisory Board of Petrol d.d., Ljubljana includes three
employee representatives who are elected by the Workers’ Council.
Preventive and periodical medical examinations are carried out within the scope of ensuring
health and safety at work. We also regularly educate and provide technical training to staff
to ensure they work safely. In addition, the project “Healthy at Petrol” consists of programmes
designed for preventive and curative measures and health promotion in the workplace. We
also ensure the safety of work and appropriate professional qualification of our external
colleagues by carrying out various technical programmes designed for them in the area of
occupational safety. We lay down procedures relating to violence committed by third parties
and we inform employees occupying higher-risk workplaces thereof.
Good health is a precondition for quality and success in life and at work. Through our Healthy
at Petrol programme, we enable our staff to take part in various activities. The programme is
mainly aimed at providing a safe and stimulating working environment, raising the awareness
of staff about the importance of remaining healthy and disseminating knowledge about a safe
and healthy lifestyle at work, which can then also be reflected in personal lifestyles. Promoting
a healthy lifestyle for our staff and taking ownership of our own health can prevent a range of
chronic illnesses that are usually the result of an individual’s lifestyle. It can also improve the
quality of life in old age (see Chapter 20.7 Healthy at Petrol programme).
HIGHLIGHT:
• We are aware of the importance of social dialogue and cooperation with social partners.
Main risks and risk management
No major risks are identified in terms of Petrol’s relations with the wider social environment
from the point of view of support to different stakeholders. Through perfected processes of
cooperation and the allocation of funds to different stakeholder groups, we ensure that such
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cooperation with the wider society is congruent with the legislation and the ethical principles of
the Petrol Group.
The Petrol Group is aware of the risks associated with human resources, such as lack of
necessary knowledge, skills, experience, motivation and the unwanted turnover of key
personnel. To prevent, eliminate and manage violence, bullying, harassment and other forms
of psychosocial risk in the workplace, we adopted a Code of Conduct. This Code, which is
communicated to every new employee, reflects Petrol’s values and principles, which commit
us to ethical and professional standards. Regular organisational climate measurements and
internal surveys give employees the opportunity to express their views and concerns.
Management risks can lead to risks related to managerial competencies, disruptions in
communication with employees, improper authorisation and limitation, and the risks of
unrealistic, subjective and unfeasible performance measures. Management risks are
controlled through the regular measurement of the organisational climate and employee
satisfaction and commitment across the Petrol Group, the system of annual and quarterly
interviews, and the measurement of the quality of internal services.
The management of risks of fraud and other illegal acts is split into two subgroups that are
subject to individual assessment: the risk of criminal offences/fraud and corporate integrity risk,
which are discussed further in Chapter 13. Risk management. Risks related to respect for
human rights can emerge both within the Company and in its relations with external
stakeholders. These risks are managed by adhering to applicable regulations.
HIGHLIGHT:
• The Code of Conduct, which is communicated to every new employee, reflects Petrol’s
values and principles, which commit us to ethical and professional standards.
Health and safety of employees and customers
To improve the health and safety of all employees, we ensure that all workplaces have
adequate protective equipment and preventive measures in place.
The risk assessment remains a cornerstone of the safety and health of all employees and
others present. It is equally important to ensure the health of our customers and other users of
our facilities. The essential information is regularly published and updated on the Petrol’s
website Sustainable development – Impact assessments. This way we want to raise
awareness that health and safety are of utmost importance to us.
Key performance indicators
At Petrol, we measure progress, build relationships, ensure proper communication and provide
for the management of employees in Slovenia by measuring the organisational climate and
employee satisfaction and commitment on a regular basis. We identify our own strengths and
areas with room for improvement.
In recent years, we have improved existing and introduced additional management and
development systems, which helped us improve in this area. The Petrol Group provides for
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the training of employees in all the markets in which we operate. We provide various ways for
employees to acquire expertise, skills and work experience. Some of the training is delivered
remotely, using Microsoft 365 tools and creating own materials in the e-classroom. We offer
employees a series of short e-courses in corporate compliance, information security, remote
team management skills, communication, sales and coaching skills.
Fifty-two percent of the Petrol Group employees are men and forty-eight percent are women.
Over the years, the gender structure has gradually improved in favour of women. The gender
balance differs across companies depending on the activity of each company.
Particular attention is given to expanding the culture of a family-friendly enterprise. We have
been involved in the certification process in Slovenia for over ten years and we successfully
passed a second final audit by an external audit council. We successfully implemented all the
planned measures to facilitate the balance between work and private obligations.
In Note 5.6 Labour costs of the financial report, we disclosed the receipts of the employees of
the Petrol Group and Petrol d.d., Ljubljana. The receipts of employees at third-party-operated
service stations are included in the item Costs of service station managers under Note 5.5
Costs of services. The added value per employee in the Petrol Group is presented in Chapter
1 Business highlights of 2023 (for more information, see Chapters 20 Responsibility to
Employees, 18 Information technology and 13 Risk management).
HIGHLIGHT:
We are gradually improving the gender balance in favour of a higher proportion of women and
supporting work-life balance.
9.2.3 Fight against corruption and bribery
Policy
Petrol is a signatory and ambassador of the Slovenian Corporate Integrity Guidelines. In the
pursuit of our work, we abide by high standards of business ethics and build corporate culture,
promoting lawful, transparent and ethical conduct and decision-making by all employees.
Due diligence
The Petrol Group has appointed two corporate integrity officers. They are appointed by the
Company’s Management Board, are independent in their work and report directly to the
Management Board. They regularly inform the Management Board and Audit Committee about
their activities. Among other things, the officers provide professional assistance to employees
and advise employees and the Management Board on further steps and measures in the field
of integrity. The Company has established several lines for reporting violations, fraud and other
irregularities, namely the possibility of reporting via e-mail kodeks@petrol.si;
integriteta@petrol.si, via the website Report Irregularities or the telephone number 080 13 95.
Special emphasis is on the protection of bona fide whistleblowers.
Petrol has the necessary internal regulations in place. Petrol’s Code of Conduct contains
provisions on fair and transparent operations and the prevention of bribery and corruption.
Every employee receives the Code in physical form. The Code is also published on the Intranet
and online. The Rules on Ensuring Compliance have been adopted, which set out the basic
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rules and system solutions for compliant operations, and the Rules on Preventing,
Determining and Eliminating the Consequences of Mobbing, on the basis of which
undesirable behavioural practices from the point of view of the inappropriate treatment of
employees are detected, identified and prevented. The Company has adopted the Rules on
the Prevention of Corruption, which set out measures and methods to prevent corruption,
manage conflicts of interest, handle gifts and invitations, give and accept benefits and
introduce other business practices that reduce the risk of using decision-making power
contrary to external or internal regulations and ethical standards.
Main risks and risk management
Given the Company’s principal activity, the risks in the area of corruption and bribery could
arise at all levels of Petrol’s business, both among employees at the service stations and with
executive and other staff in various areas of business. A Security College and a Risk
Committee have been established at the level of the Petrol Group to mitigate risks. In order
to ensure the transparency of operations, the prevention of non-compliant practices and the
establishment of control mechanisms, key committees have been established for procurement,
investment processes and for the management of development needs and projects. In
addition, risk-mitigating control mechanisms have been embedded in processes – for instance,
the publication of the Code of Conduct, regular communication about the Code and corporate
integrity within Petrol, anti-corruption clauses in agreements with business partners, and
assessments of the business partners’ acceptability.
The Company has also established an effective system for verifying the acceptability of
business partners for the entire Group, which involves multi-stage verification by various
professional stakeholders. Before concluding a (sales/purchase) transaction the Company
obtains information from business partners using the updated and upgraded “Know Your
Client” (KYC), on the basis of which it conducts due diligence of the business partner.
Obtaining data that forms an integral part of the questionnaire is a requirement under the
provisions of the Prevention of Money Laundering and Terrorist Financing Act.
Employees of the Petrol Group are also regularly trained in this field. All employees attend
the Corporate Integrity training, which enhances the understanding and knowledge of how to
act in an impartial, just, credible, responsible and trustworthy manner, adhere to high moral
principles in accordance with Petrol’s Code of Conduct, and how to act properly in case of
detected irregularities.
In the current business strategy of the Company and the Petrol Group, the management of the
Petrol Group has made it a priority to mitigate corruption risks and promote ethical conduct
among employees, and consequently also among business partners. In the event of identified
irregularities involving a suspected criminal offence, the Company reacts in accordance with
the legislative possibilities regarding the reporting of irregularities and compensation for
damage.
The Company has developed a model of security consulting, where signs of corruption risks
are identified. The Company adopted the Rules on conducting operations control and
investigations in the Petrol Group. The purpose of the Rules is to determine actions and
steps to be taken in operations control and when conducting investigations, and to establish
an effective system for ensuring the integrity of the Company. The procedures for controlling
operations and conducting investigations are aimed at quickly identifying and detecting
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violations, as well as at establishing mechanisms for appropriate actions (sanctioning),
enabling the Petrol Group to operate and conduct business in accordance with moral, legal
and ethical principles. In the event of a suspected violation, procedures are initiated under a
specific protocol. The Corporate Security and Business Control organisational unit carries out
supervision and investigation procedures in Petrol.
Key performance indicators
All activities included in the annual plan, which was confirmed by the Management Board, were
performed. In addition to the planned activities, business reviews and investigations were
carried out following reports of suspected operational irregularities and on the basis of
previously obtained analytical data. All of these cases were conducted in accordance with the
procedures set out by the rules on exercising control of operations and leading investigations
at the Petrol Group. In-depth business reviews were carried out in accordance with the plan.
Such reviews are primarily useful for managers of individual business processes, helping them
to regulate operations in accordance with the internal acts and applicable legislation, and at
the same time influencing the quality of operations and elevating participants’ integrity. All
findings were duly addressed.
HIGHLIGHT:
• We actively promote corporate integrity based on high business ethics standards. By
providing several channels for reporting irregularities and having detailed internal
regulations in place, we focus on preventing corruption and bribery.
9.2.4 Environmentally sustainable economic activities and sustainable investments
In accordance with the Taxonomy Regulation (Regulation (EU) 2020/852 of the European
Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU) 2019/2088), which entered into force
on 12 July 2020 and established a classification system for environmentally sustainable
economic activities, we report the indicators for Taxonomy-eligible or Taxonomy-aligned
economic activities for the 2023 financial year. The reporting/analysis for the 2023 financial
year covers all six of the European Union’s environmental objectives:
1. climate change mitigation,
2. climate change adaptation,
3. sustainable use and protection of water and marine resources,
4. transition to a circular economy,
5. pollution prevention and control, and
6. protection and restoration of biodiversity and ecosystems.
Reporting for 2023, as for 2022, not only includes an assessment of eligibility, but also an
assessment of the alignment of the activity with the EU Taxonomy. In addition to the parent
company Petrol d.d., Ljubljana, all direct subsidiaries in Slovenia and Croatia are included in
the 2023 analysis. In Slovenia, these are Petrol Skladiščenje d.o.o., Petrol GEO d.o.o., Ekoen
d.o.o., Ekoen S d.o.o., MBILLS d.o.o., Geoplin d.o.o. Ljubljana, Atet d.o.o., E 3, d.o.o., in na
Hrvaškem Petrol d.o.o., Vjetroelektrane Glunča d.o.o., Vjetroelektrana Ljubač d.o.o. and
Zagorski metalac d.o.o.
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The following 21 Taxonomy-eligible activities of the Petrol Group in Slovenia and Croatia have
been identified within the five NACE
9
macro-sectors:
Energy
4.1 Electricity generation using solar photovoltaic technology
4.3 Electricity generation from wind power
4.8 Electricity generation from bioenergy
4.9 Transmission and distribution of electricity
4.14 Transmission and distribution networks for renewable and low-carbon gases
4.15 District heating/cooling distribution
4.20 Cogeneration of heat/cool and power from bioenergy
4.22 Production of heat/cool from geothermal energy
4.24 Production of heat/cool from bioenergy
4.30 High-efficiency cogeneration of heat/cool and power from
gaseous fossil fuels
4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and
cooling system
Water supply, sewerage, waste management and remediation
5.1 Construction, extension and operation of water collection, treatment and supply
systems
5.2 Renewal of water collection, treatment and supply systems
5.3 Construction, extension and operation of wastewater collection and treatment
Transport
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
6.15 Infrastructure enabling low-carbon road transport and public transport
Construction and real estate activities
7.3 Installation, maintenance and repair of energy efficiency equipment
7.4 Installation, maintenance and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)
7.5 Installation, maintenance and repair of instruments and devices for measuring,
regulating and controlling the energy performance of buildings
7.6 Installation, maintenance and repair of renewable energy technologies
Information and communication
8.2 Data-driven solutions for GHG emissions reductions
All Taxonomy-eligible activities are included in the climate change mitigation objective and are
also aligned with the Taxonomy (environmentally sustainable economic activities) after a
review of the technical criteria.
Individual activities within an activity are assessed against the 'Substantial Contribution' and
'No Significant Harm' criteria. In doing so, we note that we use the best available techniques
and follow the current legislation on the Slovenian and Croatian market, which is in line with
European legislation. The requirements of the Taxonomy Regulation are consistent with the
current national permits (environmental, operating, etc.) that we are required to obtain for each
9
NACE – Nomenclature of Economic Activities – European statistical classification of economic activities
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activity. The Petrol Code of Conduct covers the areas of “Minimum Safeguards”. With the aim
of ensuring compliance, we conduct internal audits, review existing and potential business
partners, assess compliance with applicable laws and take the necessary corrective action.
Petrol Group’s data is aggregated at the level of each Taxonomy-defined activity. The
indicators are calculated on the basis of the definitions in the annex to Regulation 2020/852 –
Key performance indicators for non-financial undertakings. Data at the company level is
extracted from the financial statements, while data by activity is extracted from the information
system. To avoid double counting, we track the turnover from products or services and OpEx
linked to profit centres and tasks assigned to specific activities (uniquely assigned titles).
Similarly, CapExs are assigned unique numbers within the Development Needs and Projects
Management System.
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Proportion of turnover from products or services* associated with Taxonomy-aligned economic activities – disclosure covering Petrol
Group (Slovenia and Croatia), year 2023
* Turnover from products or services = revenue from contracts with customers + other income.
** Share of turnover from products or services in the consolidated turnover from products or services of the companies included in the analysis.
Economic activities
Codes
Absolute turnover in EUR
Proportion of turnover in %
**
Climate change mitigation
(%)
Climate change adaptation
(%)
Water and marine resources
(%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems
(%)
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned
proportion of turnover,
year 2023 (%)
Taxonomy-aligned
proportion of turnover,
year 2022 (%)
Category
enabling activity
(E)
Category
transitional
activity (T)
A.) TAXONOMY - ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment
F43, M71, S95.22, C33.12 26,434,358 0.39 100 0 0 0 0 0 YES YES - - YES - YES 20.09 31.30 E
7.6 Installation, maintenance and repair of renewable energy technologies
F43, M71 18,661,473 0.27 100 0 0 0 0 0 YES YES - - - - YES 14.18 0.00 E
4.14 Transmission and distribution networks for renewable and low-carbon gases
D35.22, F42.21, H49.50 15,803,327 0.23 100 0 0 0 0 0 YES YES YES - YES YES YES 12.01 15.40
4.15 District heating/cooling distribution
D35.30 15,415,491 0.23 100 0 0 0 0 0 YES YES YES - YES YES YES 11.72 11.87
7.4 Installation, maintenance and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)
F42, F43, M71 9,250,777 0.14 100 0 0 0 0 0 YES YES - - - - YES 7.03 0.00 E
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 9,216,946 0.14 100 0 0 0 0 0 YES YES YES - YES YES YES 7.01 8.83 T
4.1 Electricity generation using solar photovoltaic technology
D35.11, F42.22 7,375,056 0.11 100 0 0 0 0 0 YES YES - YES - YES YES 5.61 1.35
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99 4,678,866 0.07 100 0 0 0 0 0 YES YES YES - - YES YES 3.56 2.77
4.3 Electricity generation from wind power
D35.11, F42.22 4,412,320 0.06 100 0 0 0 0 0 YES YES YES YES - YES YES 3.35 10.68
4.9 Transmission and distribution of electricity
D35.12, D35.13 4,097,894 0.06 100 0 0 0 0 0 YES YES - YES YES YES YES 3.11 3.77 E
5.2 Renewal of water collection, treatment and supply systems
E36.00, F42.99 3,571,609 0.05 100 0 0 0 0 0 YES YES YES - - YES YES 2.71 2.22
5.3 Construction, extension and operation of waste water collection and treatment
E37.00, F42.99 3,003,633 0.04 100 0 0 0 0 0 YES YES YES - YES YES YES 2.28 2.84
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 2,444,951 0.04 100 0 0 0 0 0 YES YES YES YES YES YES YES 1.86 0.88 E
4.24 Production of heat/cool from bioenergy D35.30 2,141,415 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.63 1.37
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and
cooling system
D35.30 1,893,691 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.44 2.32 T
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 1,715,210 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.30 1.99
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
H49.39, N77.11 596,061 0.01 100 0 0 0 0 0 YES YES - YES YES - YES 0.45 0.63 T
8.2 Data-driven solutions for GHG emissions reductions
J61, J62, J63.11 517,203 0.01 100 0 0 0 0 0 YES YES - YES - - YES 0.39 1.74 E
4.8 Electricity generation from bioenergy D35.11 345,289 0.01 100 0 0 0 0 0 YES YES YES - YES YES YES 0.26 0.01
4.16 Installation and operation of electric heat pumps
F35.30, F43.22 0 0 - - - - - - - - - - - - - 0.00 0.02
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) / 131,575,569 1.94 100.00 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities)
Turnover of Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities) (A.2)
/
0 0
Total (A.1 + A.2) / 131,575,569 1.94 100.00 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) /
6,667,108,926 98.06
Total (A + B) /
6,798,684,495 100.00
Turnover of Petrol Group (directly and indierectly owned, all markets) in EUR 6,993,560,123
Proportion of turnover of analyzed companies in turnover of Petrol Group in % 97.21
Substantital contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
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Taxonomy-aligned activities contributed 1.94 percent of the turnover from products or services
or the turnover of the Petrol Group companies in Slovenia and Croatia included in the analysis
in 2023 (EUR 131,575,569 out of a total turnover from products or services of EUR
6,798,684,495). Turnover from products or services includes revenue from contracts with
customers and other income. The turnover from products or services of the companies
included in the analysis accounted for 97.21 percent of the Petrol Group’s total turnover from
products or services in 2023.
Out of a total of 20 different Taxonomy-aligned activities, the top ten contributed 87.67 percent
of the total Taxonomy-aligned turnover from products or services:
• 20.09 percent was accounted for by activity 7.3 Installation, maintenance and repair of
energy efficiency equipment (mainly energy-efficient building renovation projects);
• 14.18 percent by activity 7.6 Installation, maintenance and repair of renewable energy
technologies (solar power plants and heat pumps for the market);
• 12.01 percent by activity 4.14 Transmission and distribution networks for renewable and
low-carbon gases (concessions and natural gas distribution);
• 11.72 percent by activity 4.15 District heating/cooling distribution;
• 7.03 percent by activity 7.4 Installation, maintenance and repair of charging stations for
electric vehicles in buildings (and parking spaces attached to buildings);
• 7.01 percent by activity 4.30 High-efficiency cogeneration of heat/cool and power from
gaseous fossil fuels;
• 5.61 percent by activity 4.1 Electricity generation using solar photovoltaic technology;
• 3.56 percent by activity 5.1 Construction, extension and operation of water collection,
treatment and supply systems;
• 3.35. percent by activity 4.3 Electricity generation from wind power; and
• 3.11 percent by activity 4.9. Transmission and distribution of electricity.
The Taxonomy-aligned proportion of turnover from products or services from enabling
activities was 46.67 percent and 8.90 percent from transitional activities.
In 2022, the Taxonomy-aligned turnover from products or services amounted to EUR
83,355,863 or 0.90 percent of the Group’s total turnover from products or services. The low
proportion of Taxonomy-aligned turnover from products or services in 2022 was driven by the
high prices of energy commodities, which contributed significantly to the increase in the total
turnover from products or services.
The change in the first two activities with the largest share of Taxonomy-aligned turnover from
products or services in 2023 compared to 2022 is due to the placement of solar power plants
and heat pumps for the market in activity 7.6 Installation, maintenance and repair of renewable
energy technologies, whereas in the previous year, part of these were included in activity 7.3
Installation, maintenance and repair of energy efficiency equipment, and part in activity 4.16
Installation and operation of electric heat pumps. In 2023, for the first time, we also placed part
of the turnover from products or services related to charging stations for electric vehicles in
activity 7.4 Installation, maintenance and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings).
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Proportion of turnover from products or services* associated with Taxonomy-aligned economic activities – disclosure covering Petrol
d.d., year 2023
* Turnover from products or services = revenue from contracts with customers + other income.
** Share in the turnover from products or services of Petrol d.d., Ljubljana.
Economic activities
Codes
Absolute turnover in EUR
Proportion of turnover in
% **
Climate change mitigation
(%)
Climate change adaptation
(%)
Water and marine resources
(%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems
(%)
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned proportion
of turnover, year 2023 (%)
Taxonomy-aligned
proportion of turnover, year
2022 (%)
Category enabling activity
(E)
Category transitional
activity (T)
A.) TAXONOMY - ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 25,772,583 0.49 100 0 0 0 0 0 YES YES - - YES - YES 23.62 37.21 E
7.6 Installation, maintenance and repair of renewable energy technologies
F43, M71 18,661,473 0.35 100 0 0 0 0 0 YES YES - - - - YES 17.10 0.00 E
4.15 District heating/cooling distribution D35.30
14,209,696 0.27 100 0 0 0 0 0 YES YES YES - YES YES YES 13.02 12.90
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50
11,997,653 0.23 100 0 0 0 0 0 YES YES YES - YES YES YES 11.00 18.60
7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings
(and parking spaces attached to buildings)
F42, F43, M71
9,250,777 0.17 100 0 0 0 0 0 YES YES - - - - YES 8.48 0.00 E
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 4,854,387 0.09 100 0 0 0 0 0 YES YES YES - YES YES YES 4.45 6.23
5.1 Construction, extension and operation of water collection, treatment and supply systems E36.00, F42.99
4,678,866 0.09 100 0 0 0 0 0 YES YES YES - - YES YES 4.29 3.35 T
4.9 Transmission and distribution of electricity D35.12, D35.13
4,097,894 0.08 100 0 0 0 0 0 YES YES - YES YES YES YES 3.76 4.55
5.2 Renewal of water collection, treatment and supply systems E36.00, F42.99
3,571,609 0.07 100 0 0 0 0 0 YES YES YES - - YES YES 3.27 2.68
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99
3,003,633 0.06 100 0 0 0 0 0 YES YES YES - YES YES YES 2.75 3.43 E
4.24 Production of heat/cool from bioenergy D35.30 1,950,598 0.04 100 0 0 0 0 0 YES YES YES - YES YES YES 1.79 1.62
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and
cooling system
D35.30
1,653,260 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.52 2.40
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30
1,649,660 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.51 2.40
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22
1,459,114 0.03 100 0 0 0 0 0 YES YES - YES - YES YES 1.34 1.15 T
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 1,248,934 0.02 100 0 0 0 0 0 YES YES YES YES YES YES YES 1.14 0.94
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11
517,203 0.01 100 0 0 0 0 0 YES YES - YES - - YES 0.47 2.11 E
4.8 Electricity generation from bioenergy D35.11
345,289 0.01 100 0 0 0 0 0 YES YES YES - YES YES YES 0.32 0.01
6.5 Transport by motorbikes, passenger cars and light commercial vehicles H49.39, N77.11 195,061 0.00 100 0 0 0 0 0 YES YES - YES YES - YES 0.18 0.40 T
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) / 109,117,689 2.05 100.00 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities)
Turnover of Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities) (A.2)
/
0 0
Total (A.1 + A.2) / 109,117,689 2.05 100.00 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) /
5,201,180,840 97.95
Total (A + B) /
5,310,298,529 100.00
Substantital contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
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The turnover from products or services from Taxonomy-aligned activities in the parent
company Petrol d.d. in 2023 amounted to EUR 109,117,689, or 2.05 percent of the total
turnover from products or services of Petrol d.d., Ljubljana. The Taxonomy-aligned turnover
from products or services of Petrol d.d., Ljubljana accounted for 82.93 percent of the
Taxonomy-aligned turnover from products or services of the analysed Petrol Group companies
in Slovenia and Croatia and 1.60 percent of the total turnover from products or services of the
analysed Petrol Group companies in Slovenia and Croatia.
The Taxonomy-aligned turnover from products or services from enabling activities accounted
for 52.43 percent of the total Taxonomy-aligned turnover from products or services from Petrol
d.d., Ljubljana, and the Taxonomy-aligned turnover from products or services from transitional
activities accounted for 5.80 percent.
In 2022, the Taxonomy-aligned turnover from products or services amounted to EUR
68,982,565 or 0.94 percent of Petrol d.d., Ljubljana’s total turnover from products or services.
The low proportion of Taxonomy-aligned turnover from products or services in 2022 was, as
in the Petrol Group as a whole, driven by the high prices of energy commodities, which
contributed significantly to the increase in total turnover from products or services.
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Proportion of CapEx* from products or services associated with Taxonomy-aligned economic activities - disclosure covering Petrol
Group (Slovenia and Croatia), year 2023
* The reduction for the received energy efficient renovation project subsidies is excluded from the amount of net CapEx of the Petrol Group in Slovenia and Croatia in the
calculation of indicators tied to CapEx.
** Proportion of the gross CapEx in the total gross CapEx of the companies included in the analysis.
Economic activities
Codes
Absolute CapEx in EUR
Proportion of CapEx in % **
Climate change mitigation
(%)
Climate change adaptation
(%)
Water and marine resources
(%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems
(%)
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned
proportion of CapEx,
year 2023 (%)
Taxonomy-aligned
proportion of CapEx,
year 2022 (%)
Category
enabling
activity (E)
Category
transitional
activity (T)
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22 11,683,620.98 13.63 100 0 0 0 0 0 YES YES - YES - YES YES 40.40 38.97
7.3 Installation, maintenance and repair of energy efficiency equipment
F43, M71, S95.22, C33.12 10,578,375 12.34 100 0 0 0 0 0 YES YES - - YES - YES 36.58 34.17 E
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 1,875,138 2.19 100 0 0 0 0 0 YES YES YES YES YES YES YES 6.48 4.10 E
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50 1,445,800 1.69
100 0 0 0 0 0 YES YES YES - YES YES YES 5.00 0.60
4.3 Electricity generation from wind power D35.11, F42.22 1,338,653 1.56
100 0 0 0 0 0 YES YES YES YES - YES YES 4.63 6.12
6.5 Transport by motorbikes, passenger cars and light commercial vehicles H49.39, N77.11 1,118,264 1.30
100 0 0 0 0 0 YES YES - YES YES - YES 3.87 0.67 T
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11 323,256 0.38
100 0 0 0 0 0 YES YES - YES - - YES 1.12 0.14 E
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99 233,020 0.27
100 0 0 0 0 0 YES YES YES - YES YES YES 0.81 0.05
4.15 District heating/cooling distribution D35.30 162,944 0.19
100 0 0 0 0 0 YES YES YES - YES YES YES 0.56 3.36
4.24 Production of heat/cool from bioenergy D35.30 89,310 0.10
100 0 0 0 0 0 YES YES YES - YES YES YES 0.31 0.00
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 54,406 0.06
100 0 0 0 0 0 YES YES YES - YES YES YES 0.19 7.10
7.5 Installation, maintenance and repair of instruments and devices for measuring,
regulation and controlling energy performance of buildings
F42, F43, M71 11,854 0.01 100 0 0 0 0 0 YES YES - - - - YES 0.04 0.00 E
7.6 Installation, maintenance and repair of renewable energy technologies
F42, F43, M71 3,288 0.00 100 0 0 0 0 0 YES YES - - - - YES 0.01 0.05 E
4.9 Transmission and distribution of electricity D35.12, D35.13 849 0.00
100 0 0 0 0 0 YES YES - YES YES YES YES 0.00 3.28 E
4.8 Electricity generation from bioenergy D35.11 0 0
- - - - - - - - - - - - - 0.00 0.65
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99 0 0
- - - - - - - - - - - - - 0.00 0.53
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 0 0 - - - - - - - - - - - - - 0.00 0.16 T
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and
cooling system
D35.30 0 0
- - - - - - - - - - - - - 0.00 0.05 T
CapEx of environmentall sustainable activities (Taxonomy-aligned) (A.1) / 28,918,777 33.74 100.00 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities)
CapEx of Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities) (A.2)
/
0 0
Total (A.1 + A.2) / 28,918,777 33.74 100.00 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) /
56,793,569 66.26
Total (A + B) /
85,712,345 100.00
CapEx of Petrol Group (directly and indirectly owned companies, all markets) in EUR 87,562,651
Proportion of CapEx of analyzed companies in CapEx of Petrol Group in % 97.89
Substantital contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
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In the calculation of the indicators tied to CapEx, the reduction for subsidies is excluded from
the amount of net CapEx
10
(alternative performance criterion) of the Petrol Group in Slovenia
and Croatia, which is taken into account in both the denominator and the numerator of activity
7.3 Installation, maintenance and repair of energy efficiency equipment, for charging
infrastructure projects within activity 6.15 Infrastructure enabling low-carbon road transport and
public transport, and for projects to build own solar power plants within activity 4.1 Electricity
generation using solar photovoltaic technology. Long-term financial investments are included
in the amount of EUR 4,261,801; as these are fully Petrol d.d., Ljubljana’s investments, they
are not Taxonomy eligible.
In 2023, the Petrol Group’s CapEx in Slovenia and Croatia (excluding the reduction for
subsidies received and including long-term financial investments) amounted to EUR
85,712,345, of which 33.74 percent (EUR 28,918,777) was the CapEx for Taxonomy-aligned
activities. The CapEx of the companies included in the analysis accounted for 97.89 percent
of the Petrol Group’s total CapEx in 2023.
Of the 14 identified Taxonomy-aligned activities, the first five represent 93.09 percent of the
Petrol Group’s total CapEx in Slovenia and Croatia in 2023 for environmentally sustainable
activities (aligned with the Taxonomy), namely:
• 40.40 percent was accounted for by activity 4.1 Electricity generation using solar
photovoltaic technology (the largest contribution comes from investments in solar power
plants in Slovenia and Croatia);
• 36.58 percent by activity 7.3 Installation, maintenance and repair of energy efficiency
equipment (includes projects for the energy-efficient renovation of public buildings and, to
a lesser extent, own facilities – service stations, and public lighting renovation projects);
• 6.48 percent by activity 6.15 Infrastructure enabling low-carbon road transport and public
transport (e-charging infrastructure in Slovenia and Croatia);
• 5.00 percent by activity 4.14 Transmission and distribution networks for renewable and
low-carbon gases (including the rehabilitation of distribution networks after floods);
• 4.63 percent by activity 4.3 Electricity generation from wind power;
The Taxonomy-aligned proportion of CapEx from enabling activities was 44.24 percent and
3.87 percent from transitional activities.
For the first time in 2023, investments are shown for activity 7.5 Installation, maintenance and
repair of instruments and devices for measuring, regulating and controlling the energy
performance of buildings, noting that some of these technologies are also intrinsically linked
to more complex projects in other activities. In 2023, four activities had no new investments
compared to 2022.
In 2023, the share of Taxonomy-aligned investments in the Group’s total investments
decreased compared to 2022, when it amounted to 54.17 percent, although the absolute
amount of total investments increased (in 2022, it amounted to EUR 55,809,556). This can be
attributed to the long-term financial investments in 2022, which were Taxonomy-eligible, as
well as to the increased CapEx in 2023 in Taxonomy-ineligible activities (including new
buildings and refurbishments of service stations in Slovenia and Croatia, as investments in the
10
Net investment = CapEx + long-term financial investments – fixed asset disposals – repayments
(subsidies).
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fossil fuel sales infrastructure itself are Taxonomy-ineligible in their entirety, and investments
in the Oil&Gas logistics optimisation project).
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Proportion of CapEx* from products or services associated with Taxonomy-aligned economic activities - disclosure covering Petrol
d.d., year 2023
* The reduction for the received energy efficient renovation project subsidies is excluded from the amount of net CapEx of the Petrol Group in Slovenia and Croatia in the
calculation of indicators tied to CapEx.
** Share of the gross CapEx in the total gross CapEx of Petrol d.d., Ljubljana.
Economic activities
Codes
Absolute CapEx in EUR
Proportion of CapEx in % **
Climate change mitigation
(%)
Climate change adaptation
(%)
Water and marine resources
(%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems
(%)
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned
proportion of CapEx,
year 2023 (%)
Taxonomy-aligned
proportion of CapEx,
year 2022 (%)
Category
enabling
activity (E)
Category
transitional
activity (T)
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 5,829,601 13.40 100 0 0 0 0 0 YES YES - - YES - YES 41.50 58.57 E
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22
4,951,581 11.38 100 0 0 0 0 0 YES YES - YES - YES YES 35.25 2.16
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 1,557,793 3.58 100 0 0 0 0 0 YES YES YES YES YES YES YES 11.09 4.29 E
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50
933,842 2.15 100 0 0 0 0 0 YES YES YES - YES YES YES 6.65 5.09
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11
323,256 0.74 100 0 0 0 0 0 YES YES - YES - - YES 2.30 0.25 E
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99
233,020 0.54 100 0 0 0 0 0 YES YES YES - YES YES YES 1.66 0.08
4.15 District heating/cooling distribution D35.30
150,817 0.35 100 0 0 0 0 0 YES YES YES - YES YES YES 1.07 5.81
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30
54,406 0.13 100 0 0 0 0 0 YES YES YES - YES YES YES 0.39 12.41
7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation
and controlling energy performance of buildings
F42, F43, M71 11,854 0.03 100 0 0 0 0 0 YES YES - - - - YES 0.08 0.00 E
7.6 Installation, maintenance and repair of renewable energy technologies
F42, F43, M71 1,606 0.00 100 0 0 0 0 0 YES YES - - - - YES 0.01 0.08 E
4.9 Transmission and distribution of electricity D35.12, D35.13
849 0.00 100 0 0 0 0 0 YES YES - YES YES YES YES 0.01 5.18 E
4.3 Electricity generation from wind power D35.11, F42.22
0 0.00 - - - - - - - - - - - - - 0.00 3.97
4.8 Electricity generation from bioenergy D35.11
0 0.00 - - - - - - - - - - - - - 0.00 1.16
5.1 Construction, extension and operation of water collection, treatment and supply systems E36.00, F42.99 0 0.00 - - - - - - - - - - - - - 0.00 0.94
CapEx of environmentall sustainable activities (Taxonomy-aligned) (A.1) / 14,048,624 32.30 100.00 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities)
CapEx of Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities) (A.2)
/
0 0
Total (A.1 + A.2) / 14,048,624 32.30 100.00 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) /
29,450,616 67.70
Total (A + B) /
43,499,240 100.00
Substantital contribution criteria
DNSH criteria ("Does Not
Significantly Harm")
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The CapEx in Taxonomy-aligned activities in Petrol d.d., Ljubljana, in 2023 amounted to EUR
14,048,624, or 32.30 percent of the Company’s total CapEx (total CapEx of EUR 43,499,240,
of which long-term financial investments amounted to EUR 4,261,801). The Taxonomy-aligned
proportion of the CapEx from enabling activities was 54.99 percent.
In 2022, the reported percentage of CapEx in Taxonomy-eligible activities of Petrol d.d.,
Ljubljana, amounted to 43.16 percent of the total CapEx (total CapEx of EUR 39,690,597,
including long-term financial investments and subsidies).
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Proportion of OpEx* from products or services associated with Taxonomy-aligned economic activities - disclosure covering Petrol
Group (Slovenia and Croatia), year 2023
* OpEx = operating costs + acquisition costs.
** Share of OpEx in the total OpEx of the companies included in the analysis.
*** Due to the nature of the business, the revenue of the activity is recorded under activity 4.15 District heating/cooling distribution.
Economic activities
Absolute OpEx in EUR
Proportion of OpEx in % **
Climate change mitigation
(%)
Climate change adaptation
(%)
Water and marine resources
(%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems
(%)
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned
proportion of OpEx,
year 2023 (%)
Taxonomy-aligned
proportion of OpEx,
year 2022 (%)
Category
enabling activity
(E)
Category
transitional
activity (T)
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment
F43, M71, S95.22, C33.12 27,048,469 0.43 100 0 0 0 0 0 YES YES - - YES - YES 21.61 N/A E
7.6 Installation, maintenance and repair of renewable energy technologies
F43, M71 20,079,984 0.32 100 0 0 0 0 0 YES YES - - - - YES 16.04 N/A E
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 13,703,253 0.22 100 0 0 0 0 0 YES YES YES - YES YES YES 10.95 N/A T
4.14 Transmission and distribution networks for renewable and low-carbon gases
D35.22, F42.21, H49.50 12,642,534 0.20 100 0 0 0 0 0 YES YES YES - YES YES YES 10.10 N/A
7.4 Installation, maintenance and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)
F42, F43, M71 9,197,382 0.15 100 0 0 0 0 0 YES YES - - - - YES 7.35 N/A E
4.15 District heating/cooling distribution
D35.30 5,300,835 0.08 100 0 0 0 0 0 YES YES YES - YES YES YES 4.24 N/A
4.1 Electricity generation using solar photovoltaic technology
D35.11, F42.22 4,972,224 0.08 100 0 0 0 0 0 YES YES - YES - YES YES 3.97 N/A
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99 4,866,393 0.08 100 0 0 0 0 0 YES YES YES - - YES YES 3.89 N/A
5.2 Renewal of water collection, treatment and supply systems
E36.00, F42.99 3,867,365 0.06 100 0 0 0 0 0 YES YES YES - - YES YES 3.09 N/A
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 3,858,156 0.06 100 0 0 0 0 0 YES YES YES YES YES YES YES 3.08 N/A E
4.9 Transmission and distribution of electricity
D35.12, D35.13 3,599,988 0.06 100 0 0 0 0 0 YES YES - YES YES YES YES 2.88 N/A E
4.24 Production of heat/cool from bioenergy
D35.30 3,539,490 0.06 100 0 0 0 0 0 YES YES YES - YES YES YES 2.83 N/A
4.3 Electricity generation from wind power
D35.11, F42.22 3,488,073 0.06 100 0 0 0 0 0 YES YES YES YES - YES YES 2.79 N/A
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and
cooling system
D35.30 3,046,719 0.05 100 0 0 0 0 0 YES YES YES - YES YES YES 2.43 N/A T
5.3 Construction, extension and operation of waste water collection and treatment
E37.00, F42.99 2,069,814 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.65 N/A
4.20 Cogeneration of heat/cool and power from bioenergy
D35.11, D35.30 1,839,434 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.47 N/A
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
H49.39, N77.11 814,200 0.01 100 0 0 0 0 0 YES YES - YES YES - YES 0.65 N/A T
4.8 Electricity generation from bioenergy
D35.11 622,902 0.01 100 0 0 0 0 0 YES YES YES - YES YES YES 0.50 N/A
4.22 Production of heat/cool from geothermal energy***
D35.30 309,082 0.00 100 0 0 0 0 0 YES YES YES - YES YES YES 0.25 N/A
8.2. Data-driven solutions for GHG emissions reductions
J61, J62, J63.11 299,682 0.00 100 0 0 0 0 0 YES YES - YES - - YES 0.24 N/A E
OpEx of environmentall sustainable activities (Taxonomy-aligned) (A.1) / 125,165,977 1.98 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities)
OpEx of Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities) (A.2)
/
0 0
Total (A.1 + A.2) / 125,165,977 1.98 100.00 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B) /
6,181,689,545 98.02
Total (A + B) /
6,306,855,523 100.00
OpEx of Petrol Group (directly and indirectly owned companies, all markets) in EUR 6,866,373,093
Proportion of OpEx of analyzed companies in OpEx of Petrol Group in % 90.03
Substantital contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
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In 2023, we report on the OpEx of Taxonomy-aligned activities for the first time. OpEx includes
costs and acquisition costs. Taxonomy-aligned activities contributed 1.98 percent of the OpEX
from products or services of the companies in Slovenia and Croatia included in the analysis in
2023 (EUR 125,165,977 out of a total OpEX of EUR 6,306,855,523). The OpEx of the
companies included in the analysis represented 90.03 percent of the total OpEx of the Petrol
Group in 2023.
Out of a total of 21 different Taxonomy-aligned activities, the top ten contributed 84.32 percent
of the total OpEX:
• 21.61 percent was accounted for by activity 7.3 Installation, maintenance and repair of
energy efficiency equipment (mainly energy-efficient building renovation projects);
• 16.04 percent by activity 7.6 Installation, maintenance and repair of renewable energy
technologies (solar power plants and heat pumps for the market);
• 10.95 percent by activity 4.30 High-efficiency cogeneration of heat/cool and power from
gaseous fossil fuels;
• 10.10 percent by activity 4.14 Transmission and distribution networks for renewable and
low-carbon gases (concessions and natural gas distribution);
• 7.35 percent by activity 7.4 Installation, maintenance and repair of charging stations for
electric vehicles in buildings (and parking spaces attached to buildings);
• 4.24 percent by activity 4.15 District heating/cooling distribution;
• 3.97 percent by activity 4.1 Electricity generation using solar photovoltaic technology;
• 3.89 percent by activity 5.1 Construction, extension and operation of water collection,
treatment and supply systems;
• 3.09 percent by activity 5.2 Renewal of water collection, treatment and supply systems;
and
• 3.08 percent by activity 6.15 Infrastructure enabling low-carbon road transport and public
transport.
The Taxonomy-aligned proportion of the OpEX from enabling activities was 51.20 percent and
14.03 percent from transitional activities.
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Proportion of OpEx* from products or services associated with Taxonomy-aligned economic activities - disclosure covering Petrol d.d.,
year 2023
* OpEx = operating costs + acquisition costs.
** Share of the OpEx in the total OpEx of Petrol d.d., Ljubljana.
*** Due to the nature of the business, the revenue of the activity is recorded under activity 4.15 District heating/cooling distribution.
Economic activities
Absolute OpEx in EUR
Proportion of OpEx in % **
Climate change mitigation
(%)
Climate change adaptation
(%)
Water and marine resources
(%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems
(%)
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned
proportion of OpEx,
year 2023 (%)
Taxonomy-aligned
proportion of OpEx,
year 2022 (%)
Category
enabling activity
(E)
Category
transitional
activity (T)
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 26,620,339 0.51 100 0 0 0 0 0 YES YES - - YES - YES 25.13 N/A E
7.6 Installation, maintenance and repair of renewable energy technologies
F43, M71 20,079,984 0.38 100 0 0 0 0 0 YES YES - - - - YES 18.95 N/A E
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 10,332,814 0.20 100 0 0 0 0 0 YES YES YES - YES YES YES 9.75 N/A T
4.14 Transmission and distribution networks for renewable and low-carbon gases
D35.22, F42.21, H49.50 9,223,705 0.18 100 0 0 0 0 0 YES YES YES - YES YES YES 8.71 N/A
7.4 Installation, maintenance and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)
F42, F43, M71 9,197,382 0.18 100 0 0 0 0 0 YES YES - - - - YES 8.68 N/A E
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99 4,866,393 0.09 100 0 0 0 0 0 YES YES YES - - YES YES 4.59 N/A
4.15 District heating/cooling distribution
D35.30 3,943,352 0.08 100 0 0 0 0 0 YES YES YES - YES YES YES 3.72 N/A
5.2 Renewal of water collection, treatment and supply systems
E36.00, F42.99 3,867,365 0.07 100 0 0 0 0 0 YES YES YES - - YES YES 3.65 N/A
4.9 Transmission and distribution of electricity
D35.12, D35.13 3,599,988 0.07 100 0 0 0 0 0 YES YES - YES YES YES YES 3.40 N/A E
4.24 Production of heat/cool from bioenergy
D35.30 3,449,812 0.07 100 0 0 0 0 0 YES YES YES - YES YES YES 3.26 N/A
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and
cooling system
D35.30 2,450,904 0.05 100 0 0 0 0 0 YES YES YES - YES YES YES 2.31 N/A T
5.3 Construction, extension and operation of waste water collection and treatment
E37.00, F42.99 2,069,814 0.04 100 0 0 0 0 0 YES YES YES - YES YES YES 1.95 N/A
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 2,012,032 0.04 100 0 0 0 0 0 YES YES YES YES YES YES YES 1.90 N/A E
4.20 Cogeneration of heat/cool and power from bioenergy
D35.11, D35.30 1,805,353 0.03 100 0 0 0 0 0 YES YES YES - YES YES YES 1.70 N/A
4.1 Electricity generation using solar photovoltaic technology
D35.11, F42.22 806,083 0.02 100 0 0 0 0 0 YES YES - YES - YES YES 0.76 N/A
4.8 Electricity generation from bioenergy
D35.11 622,902 0.01 100 0 0 0 0 0 YES YES YES - YES YES YES 0.59 N/A
6.5 Transport by motorbikes, passenger cars and light commercial vehicles H49.39, N77.11 391,202 0.01 100 0 0 0 0 0 YES YES - YES YES - YES 0.37 N/A T
4.22 Production of heat/cool from geothermal energy***
D35.30 309,082 0.01 100 0 0 0 0 0 YES YES YES - YES YES YES 0.29 N/A
8.2. Data-driven solutions for GHG emissions reductions
J61, J62, J63.11 299,682 0.01 100 0 0 0 0 0 YES YES - YES - - YES 0.28 N/A E
OpEx of environmentall sustainable activities (Taxonomy-aligned) (A.1) / 105,948,186 2.02 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities)
OpEx of Taxonomy-Eligible but not environmentally sustainable actvities (not Taxonomy-
aligned activities) (A.2)
/ 0
0
Total (A.1 + A.2) / 105,948,186 2.02 100.00 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B) / 5,144,024,139 97.98
Total (A + B) /
5,249,972,325 100.00
Substantital contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
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OpEx from Taxonomy-aligned activities in the parent company Petrol d.d. in 2023 amounted
to EUR 105,948,186, or 2.02 percent of the total OpEx of Petrol d.d., Ljubljana. The Taxonomy-
aligned OpEx of Petrol d.d., Ljubljana accounted for 84.65 percent of the Taxonomy-aligned
OpEx of the analysed Petrol Group companies in Slovenia and Croatia and 1.68 percent of the
total OpEx of the analysed Petrol Group companies in Slovenia and Croatia.
Taxonomy-aligned OpEx from enabling activities accounted for 58.34 percent of the total
Taxonomy-aligned OpEx from Petrol d.d., Ljubljana, and the Taxonomy-aligned OpEx from
transitional activities accounted for 12.44 percent.
Sustainable economic activities and sustainable investments of the Petrol Group follow the
strategic objectives of the Energy Transition and Green Future 2021-2025, with a focus on
improving energy efficiency, investing in production, developing sustainable mobility and smart
energy management (see Section 14.3 Energy and Solutions for more details).
Sašo Berger Drago Kavšek
President of the Management Board Member of the Management Board
Marko Ninčević Jože Smolič
Member of the Management Board Member of the Management Board
Metod Podkrižnik Zoran Gračner
Member of the Management Board Member of the Management Board and
Worker Director
Ljubljana, 11 April 2024
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10. Performance analysis of the Petrol Group 2023
10.1 Business environment
The Petrol Group operates in two highly competitive industries – energy and trade.
Besides trends in the area of energy and trade, the Group’s operations are subject to several
other and often interdependent factors, especially changes in energy commodity prices and
the US dollar exchange rate, which are a reflection of global economic trends. In addition,
operations in the Petrol Group’s markets are influenced to a significant extent by local
economic conditions (economic growth, inflation rate, growth in consumption and
manufacturing) and measures taken by governments to regulate prices and the energy
commodity market.
In 2022, high energy commodity prices and rising inflation led to fuel price regulation in the
markets where we operate. Fuel price regulation was followed by price regulation for natural
gas, electricity and heat. Although the prices of oil and petroleum products, electricity and
natural gas had already fallen by the end of 2022, energy commodity prices remained
regulated in 2023, which had a significant impact on the Petrol Group’s operations in that year.
Economic growth moderated in 2023, mainly in the export-led part of the economy, and private
consumption growth was also lower. Investments in buildings and structures, however,
continued to grow. Problems in the supply chains are gradually easing and energy commodity
prices are falling with more reliable supplies. Confidence indicators have fallen, household
purchasing power has declined and financing conditions are tightening. Retail sales are also
lower than in 2022, while the consumption of services continued to grow, particularly in relation
to tourism. Employment growth and unemployment are slowing down, but there are still
significant labour shortages.
In 2023, Slovenia recorded a 1.6 percent real GDP growth, as forecast by IMAD in its Autumn
Forecast in September 2023. The annual inflation in Slovenia in 2023 was 7.4 percent (year-
average, or 4.2 percent from December 2023 to December 2022). In Croatia, the Croatian
Statistical Office estimates inflation at 8.4 percent in 2023 (year-average).
GDP change in %
Source: IMAD, Statistical Office of the Republic of Slovenia, International Monetary Fund
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Inflation (year average), in %
Source: IMAD, Statistical Office of the Republic of Slovenia, International Monetary Fund
HIGHLIGHT:
• Although the prices of oil and petroleum products, electricity and natural gas had already
fallen by the end of 2022, energy commodity prices remained regulated in 2023, which had
a significant impact on the Petrol Group’s operations.
Oil and petroleum product price movements
The price of North Sea Brent crude oil in 2023 ranged between USD 71.8 per barrel and USD
96.6 per barrel. The average price stood at USD 82.2 per barrel in 2023, down 19 percent
compared to 2022, when the war in Ukraine started. The average price in euros was 21 percent
lower. Brent crude oil reached its highest value in 2023 on 27 September and the lowest value
on 13 June.
The price of oil rose in the third quarter of 2023, mainly due to OPEC’s reduced oil production
and increased demand from China, the largest oil importer. In the last quarter, we saw oil prices
fall to around USD 80 per barrel, due to the falling demand (especially from China) and a
weakening economic outlook. Further OPEC production cuts and the war in the Middle East
have also not reversed the price trend, but only limited further declines.
The price of diesel in 2023 ranged between USD 644.8 per metric unit and USD 1,030.5 per
metric unit. The average price of diesel in 2023 was USD 832.5 per metric unit.
The price of petrol in 2023 ranged between USD 729.5 per metric unit and USD 1,043.0 per
metric unit. The average price of petrol in 2023 was USD 861.3 per metric unit.
Going forward, the main influences on oil demand and crude oil prices will be: the OPEC
agreements on the volume of oil to be produced and the state of the global economy (especially
in China). Additional geopolitical tensions, such as the escalation of the war in the Middle East
and the possible spread of the conflict to neighbouring countries, could have an impact on
price increases. On the other hand, the possible onset of recession and a further decline in
economic growth in developing countries, especially in the BRICS
11
group, could lead to a fall
in oil prices.
11
BRICS – an economic association of Brazil, Russia, India, China and South Africa
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Changes in Brent Dated High oil price in 2021–2023 in USD/barrel
Source: Petrol, 2023
Changes in Brent Dated High oil price in 2021–2023 in EUR/barrel
Source: Petrol, 2023
Petroleum product price regulation
Slovenia
The prices of unleaded NMB-95 petrol and diesel have been regulated since 15 March 2022,
with a few exceptions. Initially, a decree set the maximum sales prices. In June 2022, a decree
exempted motorway and premium fuel prices from regulation and capped the sellers’ margins
instead of the retail prices. The bio-component allowance was excluded from the pricing
formula for part of the year, but was reintroduced by decree in December 2022.
From 21 June 2022, the maximum margin on diesel was determined by way of decree in the
amount of EUR 0.05910 per litre and on NMB-95 in the amount of EUR 0.06070 per litre. From
17 August 2022, the maximum permitted margin on diesel set by decree stood at EUR 0.09830
per litre and on NMB-95 at EUR 0.09940 per litre.
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On 19 June 2023, the Government of the Republic of Slovenia adopted a new Decree on
setting prices for certain petroleum products, according to which the margins remained capped
at EUR 0.0983 per litre for diesel and EUR 0.0994 per litre for NMB-95. The prices of motor
fuels at service stations on motorways and expressways are still exempt from regulation, as
are premium fuels NMB-100 and iQ diesel. The Decree entered into force on 21 June 2023
and was expected to stay in effect for one year.
On 30 November 2023, the Government of the Republic of Slovenia adopted Decree amending
Decree on setting prices for certain petroleum products, reducing the maximum margin for
diesel to EUR 0.0683 per litre and for NMB-95 to EUR 0.0694 per litre for the period from 5
December 2023 to 29 February 2024.
The price of extra-light fuel oil has been regulated since 9 November 2021, except for the
period from 22 May to 12 September 2022. Until 21 May 2022, the margin was capped at EUR
0.06 per litre and from 27 September 2022, it has been capped at EUR 0.08 per litre.
Petrol Archive
Croatia
In Croatia, prices have been regulated since 7 February 2022. For the first month, a decree
set the maximum retail prices, and from 7 March 2022 onwards, the decree set the maximum
margins. Maximum retail prices were also set in the period from 21 June to 18 July and from
18 to 24 October 2022. From 12 September 2022, the Croatian government has also regulated
the price of LPG – for propane-butane blends for large tanks and cylinders.
On 2 January 2023, the Government of the Republic of Croatia adopted the Decree on the
establishment of maximum retail prices, setting maximum margins to EUR 0.0995 per litre for
petrol (eurosuper 95), EUR 0.0995 per litre for eurodiesel, EUR 0.0531 per litre for blue diesel,
EUR 0.3716 per kg for propane-butane blends for large tanks or gas storage tanks, and EUR
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0.8229 per kg for LPG cylinders (7.5 kg or more). The Decree entered into force on 3 January
2023. The Croatian government extended the validity of the Decree every two weeks.
On 5 June 2023, the Government of the Republic of Croatia adopted the Decree on the
establishment of maximum retail prices, increasing the maximum margin for petrol (eurosuper
95) to EUR 0.1245 per litre, eurodiesel to EUR 0.1245 per litre and blue diesel to EUR 0.0781
per litre. The maximum margin fixed for propane-butane blends for large tanks or gas storage
tanks remains at EUR 0.3716 per kg, as does that for LPG cylinders (7.5 kg or more) at EUR
0.8229 per kg. The Decree entered into force on 6 June 2023. The Croatian government
extended the validity of the Decree every two weeks.
Serbia
In Serbia, the Government of the Republic of Serbia adopted the Decree on the price capping
of petroleum (non-additivated) products, which applied to eurodiesel and unleaded petrol and
entered into force on 12 February 2022. The amended Decree of 11 March 2022 set the
maximum retail price, including value-added tax, for eurodiesel and unleaded petrol (NMB-95)
at the average wholesale price of petroleum products in Serbia
12
, increased by RSD 6 per litre
(EUR 0.05 per litre), and later (with the amendment of 29 April 2022) increased by RSD 7 per
litre (EUR 0.06 per litre). Before that, retail prices for petroleum products were formed freely
according to the market conditions. The Government of the Republic of Serbia extends the
validity of the Decree on a monthly basis.
On 24 February 2023, the Government of the Republic of Serbia adopted the Decree on the
price capping of petroleum products, setting a maximum retail price, including value-added
tax, for eurodiesel and unleaded NMB-95 petrol. It was set at the average wholesale price of
petroleum products in Serbia plus RSD 13 per litre (EUR 0.11 per litre). The Decree was in
force until 31 March 2023. The Decree was first extended until 31 July 2023, then until 31
October 2023 and finally until 31 December 2023.
Bosnia and Herzegovina
In Bosnia and Herzegovina, the retail calculation margin has been limited to a maximum of
BAM 0.25 per litre (EUR 0.128 per litre) and the wholesale margin to BAM 0.06 per litre (EUR
0.0307 per litre) since 3 April 2021 – before that, the retail prices of petroleum products were
determined freely according to the market conditions.
Montenegro
In Montenegro, the prices of petroleum products are set in accordance with the Decree on the
method of setting the maximum retail prices of petroleum products, which has been in force
since March 2021. The prices change fortnightly, based on changes in Platts quotations and
the US dollar exchange rate. The decree determined fixed margins, namely for NMB-95/98 in
the amount of EUR 0.1108 per litre and for diesel in the amount of EUR 0.1079 per litre.
12
The average wholesale prices of unleaded petrol (NMB-95) and eurodiesel in the territory of the Republic of Serbia are
calculated every Friday by the Ministry of Mining and Energy.
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Price movements of other energy commodities
In 2022, with electricity prices rising exponentially due to low gas stocks and fears of the
coming winter, we recorded the highest prices in the history of trading. The upward trend in
exchange prices peaked, with the annual product for banded electricity supply on the
Hungarian market for delivery in 2023 peaking at EUR 1,007 per MWh. The highest recorded
price for the day-ahead baseload power supply on the Slovenian market was EUR 751.3 per
MWh. The reversal of the trend and the fall in prices followed the announcement of a draft
regulation by EU ministers reaching a political agreement on measures to tackle energy price
rises. Moving into 2023, electricity prices in Europe fell significantly in January 2023, after
record highs in 2022.
The annual product for baseload power supply on the Hungarian market for 2024 closed at
EUR 222.3 per MWh on the first trading day of 2023. Prices also stabilised in the short-term
market due to a relatively mild start to the winter and the increased natural gas supply via
LNG
13
terminals.
In the first half of 2023, the main factors contributing to the fall in energy commodity prices
were the political agreement between EU member states on measures to combat rising energy
prices, the oversupply of LNG and the mild winter, which, with above-average temperatures,
helped reduce both electricity and natural gas consumption, while at the same time allowing
European natural gas storage facilities to be filled to above-average levels. They were between
97 and 100 percent full ahead of the heating season, with consumption levels well below those
of the previous year, against a background of stable Norwegian gas flows and high LNG
supplies on the world market. In the period that followed, electricity futures prices closely
followed the bearish trend of the gas, coal and carbon markets. The downward trend in the
electricity market in the second half of 2023 was supported by sufficient gas reserves in
Europe, improved hydro flows, increased renewable energy production from wind and solar,
the increased availability of French nuclear power and weak industrial demand.
The settlement price of the annual product for baseload power supply on the Hungarian market
for 2024 was 104.8 EUR/MWh on the last trading day of 2023.
According to Eurostat in June 2023, the euro area as a whole entered a technical recession in
mid-2023, as gross domestic product in the euro area shrunk due to the negative impact of
inflation, which reduced consumer spending against a backdrop of rising prices. Energy
commodity prices in 2024 will be most affected by the consumption of primary energy
commodities in the US and the European Union. Data on inflation, employment and economic
activity point to a cooling of the global economy, which could impact the demand for energy
commodities. In the longer term, energy commodity prices will be strongly influenced by the
demand in India and China. Energy demand in these countries is growing rapidly, which could
lead to more aggressive competition for energy commodities between the EU and Asian
countries and a consequent increase in energy commodity prices. In addition to the above, the
geopolitical crisis, mainly due to the war in Ukraine and military conflicts in the Middle East,
will also have an impact on the future development of energy commodity prices. Both hotspots
are exacerbating political uncertainty and raising concerns in international markets.
13
LNG – Liquefied natural gas
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Trends in electricity prices in 2022 and 2023 and projections for 2024 and 2025
Source: Petrol, 2023
Trends in natural gas prices in 2022 and 2023 and projections for 2024 and 2025
Source: Petrol, 2023
Price regulation of other energy products
Slovenia
• Electricity
In Slovenia, the Government of the Republic of Slovenia adopted the Decree on the
determination of electricity prices on 14 July 2022, which set the maximum permissible retail
electricity price for household and small business customers as defined by the Electricity
Supply Act and for consumption in common areas of multi-apartment buildings and in common
areas of mixed multi-apartment and mixed multi-business buildings. The Decree set a
maximum retail selling price for energy commodities from 1 September 2022 to 31 August
2023.
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On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on the
determination of electricity prices. For supplies regulated by the decrees, suppliers are entitled
to a monthly compensation for the difference between the average monthly purchase cost and
the regulated retail price, taking into account the supplier’s cost of EUR 10 per MWh.
On 13 April 2023, the electricity price regulation was extended by way of decree until 31
December 2023.
By way of decree of 20 October 2023, electricity prices for household customers have
remained regulated in 2024 for 90 percent of the actual monthly consumption for each
individual tariff, and for the remaining 10 percent the price of the supply contract applies.
• Natural gas
On 21 July 2022, the Government of the Republic of Slovenia adopted the Decree on setting
gas prices from the system, which set the maximum permitted retail price of natural gas from
the gas system of the transport and distribution network for household customers, for final gas
customers supplying heat to several households through a common heating installation owned
or co-owned by these households, for basic social services as defined in the Gas Supply Act
and for customers who, on the date of entry into force of this Decree, are small business
customers as defined in the Gas Supply Act. The Decree set a maximum retail selling price for
energy commodities from 1 September 2022 to 31 August 2023.
At the beginning of September 2022, the Government of the Republic of Slovenia adopted the
Act Amending the Gas Supply Act. The amendments, inter alia, update the definition of
household gas customers to prevent abuse and ensure that all households have the right to a
basic gas supply. The Act also guarantees a basic and substitute gas supply to all protected
customers who are (or would be) suddenly left without a supplier or the offer of a new supplier.
The Act also broadened the definition of protected customers.
In September 2022, the Act on Measures for the Management of Crisis Conditions in the Field
of Energy Supply was adopted and has set the basis for the identification of temporary
management measures in times of increased energy supply risk, as well as measures to
ensure the security of the energy supply, to reduce import dependency and the pressure on
energy prices due to the volatility of the energy markets. In the Act, the Government also
implemented the guidelines of the European Union Regulation on the voluntary reduction of
natural gas demand for the period between 1 October 2022 and 31 March 2023 by at least 15
percent compared to the average consumption over the last five years, through measures of
own choosing.
On 27 October 2022, an amendment to the Decree on setting gas prices from the system was
adopted – the maximum retail price also applied to household customers of district heating,
and the Decree also redefined the maximum retail price of gas for kindergartens, primary
schools and health centres, as well as for the substitute and basic supply of natural gas for
protected customers. The Decree applied from 1 November 2022 to 31 August 2023.
In December 2022, the Government of the Republic of Slovenia also set a maximum retail
price for natural gas from the system for certain legal entities under public law, for providers of
publicly valid education and training programmes, and for providers of social care services,
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social welfare programmes and family support programmes for the period from 1 January 2023
to 31 December 2023.
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on
determining compensation for natural gas suppliers. For supplies regulated by the decrees,
suppliers are entitled to a monthly compensation for the difference between the average
monthly purchase cost and the regulated retail price, taking into account the supplier’s cost of
EUR 5 per MWh.
On 27 January 2023, the Decree amending Decree on setting gas prices from the system was
adopted in Slovenia, with effect from 28 January 2023, which regulated the maximum retail
price for natural gas required for the generation of heat for basic social services, kindergartens,
primary schools and health centres, for heat distributors, and that applied to natural gas for the
production of heat supplied during the period from 1 January to 31 August 2023.
On 13 April 2023, the natural gas price regulation was extended by decree until 31 December
2023.
The decree adopted on 20 October 2023 has kept the natural gas prices regulated until 30
April 2024.
• Heat
On 24 January 2023, the Government of the Republic of Slovenia adopted the Decree on the
pricing of district heating, which set the maximum tariff rate for the variable part of the heat
price for household customers who receive heat from a distribution system where the
distributor performs an economic public service, either through an individual or a common point
of consumption. Distributors whose published price lists for January 2023 set the level of the
tariff for the variable part of the heat price below this amount were not allowed to increase it.
The Decree applied to heat supplied in the period from 1 January to 30 April 2023.
On 6 July 2023, the Government of the Republic of Slovenia adopted the Decree on
determining the compensation of distributors of district heating, which, after the end of the
period of price regulation under the Decree on setting the price of district heating, assesses
the entitlement of the distributor of district heating in a way that assesses the material damage
incurred in the form of loss of revenue due to the reduction of the price with respect to the
existing price, or the impossibility to increase the price in question with respect to the price that
the distributor has independently increased after the period of the supplementary regulation by
the decree.
Croatia
• Electricity
In Croatia, the government adopted the Decree on the elimination of disturbances on the
domestic energy market on 8 September 2022, setting the electricity price for household and
business customers and for public institutions, effective from 1 October 2022 to 31 March 2023.
Another decree fixed the prices until the end of September 2023, and the amendment and
supplement to the second decree extended its period of validity until 31 March 2024.
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• Natural gas
The Republic of Croatia, through its energy regulatory agency HERA, introduced a market-
based supply for household customers across Croatia in 2020. To this end, in October 2020,
HERA published an implementing regulation with a detailed methodology for calculating the
price for this customer segment.
On 4 April 2023, the Croatian energy regulator HERA adopted a new methodology regulating
retail natural gas prices in Croatia, introducing a 15-day reference period for setting gas sales
prices instead of the previous 11-month period. The amendment has a retroactive effect on
the contractual relationships between suppliers and customers, as the amended methodology
does not take into account the actual value of the leased gas price according to the
methodology set in 2020.
On 7 July 2023, the Government of the Republic of Croatia, by decree, established a
mechanism to compensate natural gas suppliers for the difference between the price to be
paid for the purchase of this energy commodity and the price regulated by the pricing
methodology for the supply of natural gas. The decree applies to deliveries from 1 April 2023
to 31 March 2024.
Impact of movements in the US dollar/euro exchange rate
The exchange rate between the US dollar and the euro in 2023 ranged between 1.05 and 1.13
USD per 1 euro. The average exchange rate of the US dollar according to the exchange rate
of the European Central Bank in 2023 was 1.08 USD for 1 EUR (in 2022, the average
exchange rate was USD 1.05 for 1 EUR).
10.2 Operations of the Petrol Group
The Petrol Group’s operating results are reported by the following product groups:
• Fuels and petroleum products, which includes sales of petroleum products, sales of LPG
and other alternative energy commodities (compressed natural gas), the transport, storage
and handling of fuels, payment card revenues, and sales of biomass, tyres and tubes, and
batteries.
• Merchandise and services, which includes the sale of foodstuffs, haberdashery, tobacco
products, lotteries, coupons and cards, Coffee to Go, Fresh products, car cosmetics and
spare parts, as well as car wash services, sales promotion services and other services and
catering facility rentals.
• Energy and solutions, which includes the sale and trading of electricity and natural gas,
the sale of energy solutions (systems of energy and the environmental management of
buildings, water supply systems, efficient lighting systems, district energy, water treatment,
industrial solutions and energy solutions for home and industry), the sale of heating
systems, natural gas distribution systems, mobility and energy commodity generation.
• Other: mining services, maintenance services, vacation rentals.
In 2023, the Petrol Group generated revenue from contracts with customers in the amount of
EUR 7.0 billion, which is 26 percent less than in 2022. The fall in revenue was mainly due to
lower prices for petroleum products and electricity and natural gas on the spot and futures
markets, as well as lower trading volumes for these energy commodities.
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Structure of the Petrol Group’s revenue from contracts with customers in 2023 by
product groups
In 2023, the Petrol Group sold 3.8 thousand MWh of fuels and petroleum products, which was
8 percent less than in 2022. In 2022, the Government of the Republic of Slovenia regulated
the price of certain petroleum products, which was lower than in neighbouring countries for a
certain period, resulting in higher sales at service stations in 2022 than in 2023.
In 2023, we generated EUR 571.2 million in revenue from the sale of merchandise and
services, which is 10 percent more than in 2022. We increased our revenue mainly in the
tobacco and food segments, both in Slovenia and in the markets of South-Eastern Europe.
The only slight decrease was in the revenue from carwashes.
In 2023, we also sold 16.6 TWh of natural gas, 12.8 TWh of electricity and 143.4 thousand
MWh of heat.
Operations in 2023 took place in a very different context to 2022. The energy markets stabilised
compared to 2022, which contributed to the more relaxed regulation of the prices of some
petroleum products than in 2022. In 2023, the gross profit stood at EUR 677.6 million, which
was 72 percent more than in 2022.
In accordance with standards, gains and losses on derivatives which are used to balance
volumetric and price risks when selling energy commodities are not recorded under revenue
from contracts with customers or cost of goods sold, but separately in the context of the
operating profit. Net gains on derivatives amounted to EUR 53.3 million in 2023, a year-on-
year increase of EUR 88.9 million. The gross profit, increased by the net gains on derivatives,
amounted to EUR 730.8 million, up by EUR 373.0 million compared to 2022.
Structure of the Petrol Group’s gross profit, increased by the net gains on derivatives
in 2023, by product group
Compared to 2022, the gross profit, increased by the net gains on derivatives, energy
and solutions, increased the most. Electricity and natural gas prices were freely
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determined by the market conditions in Slovenia in the first eight months of 2022. On 1
September 2022, price regulation came into force for both electricity and natural gas. The
prices of both energy commodities were regulated for the whole of 2023, and a decree set
compensation for suppliers for the difference between the average monthly purchase cost and
the regulated retail price, which are recognised in the financial statements. In Croatia,
electricity and natural gas prices are also regulated. The Croatian regulator has also set up a
compensation mechanism for natural gas suppliers, for which we have submitted claims. Not
having been approved by the regulator yet, they are not recognised in the Petrol Group’s
financial statements. Within the gross profit, damage of EUR 140.3 million was recorded in
2022 as a result of the Geoplin Group’s cooperation with Gazprom Export LLC; in 2023, the
situation normalised in terms of supplies because Geoplin d.o.o., Ljubljana, signed a medium-
term agreement on natural gas supply to Slovenia from Algeria with Sonatrach. Higher gross
profit was also achieved in the sales of energy solutions and electricity generation from RES.
The increase in the gross profit, increased by the net gains on derivatives, fuels and
petroleum products was affected most by the milder price regulation compared to 2022,
although fuel margins are still substantially lower than in comparable countries of the Western
Europe. In 2023, petrol and diesel prices were regulated throughout the period. Slovenia
determined the maximum margin that can be charged at off-motorway service stations, while
prices at motorway service stations and premium fuel prices are set by the market. In Croatia,
however, the maximum margin was capped at all service stations, including those by
motorways, while premium fuels are exempt from regulation. In 2022, the prices in Slovenia
were set freely at market conditions until 14 March 2022, while from 15 March to 20 June 2022
(with the exception of a short period between 1 and 10 May 2022), a maximum retail price was
set and applied in all locations. For most of the period, the regulation set a maximum price,
which was even lower than the purchase price of the fuel. As of 21 June 2022, a decree
exempting petrol prices at service stations on motorways, expressways and premium fuels
was in force, ending the cap on maximum prices but limiting the sellers’ margins. The decree
set the margins quite low until 17 August 2022, but after 17 August 2022, they were increased
and remained in force until 4 December 2023, when they were reduced sharply by another
decree. In Croatia, prices were liberalised until 6 February 2022. Since then, part of the period
has seen maximum selling prices and part of the period maximum sellers’ margins. As in
Slovenia, the regulated sales prices in Croatia were lower than the purchase prices for part of
2022, resulting in a low gross profit in 2022.
The gross profit from sales of merchandise and services increased compared to 2022 on
account of higher sales in all markets.
The Petrol Group’s operating costs totalled EUR 561.3 million in 2023, which was EUR 93.4
million or 20 percent more than in 2022.
The share of the operating costs in the gross profit plus net gains on derivative financial
instruments used to hedge the volumetric and price risks on the sale of energy commodities
was 76.8 percent in 2023 and 130.8 percent in 2022. The share in 2023 is in line with the plan,
while in 2022 it was high due to the impact of tight regulation, when the regulated prices for
certain petroleum commodities were for some time lower than their purchase prices.
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Operating costs of the Petrol Group
The costs of materials totalled EUR 65.6 million in 2023, which was EUR 26.2 million or 66
percent more than in 2022.
• Energy costs increased by EUR 25.7 million, or 85 percent, due to higher energy
commodity prices, because a large part of energy commodities for the year 2023 was
purchased in 2022 when the cost prices were much higher than in previous years.
• Costs of consumables increased by EUR 0.5 million or 7 percent. Among these, the most
significant increase was in the cost of materials for the provision of services.
The costs of services in 2023 totalled EUR 186.3 million and were up EUR 6.1 million or 3
percent from 2022.
• The most significant item in the costs of services was the costs of transport services, which
stood at EUR 42.6 million and decreased by EUR 2.8 million or 6 percent compared to the
previous year. The decrease is a result of a combination of lower volumes of fuels sold and
optimisation of logistics processes through the introduction of all-day transport logistics and
reduction of transport rates in the Croatian market.
• The costs incurred by the service station operators amounted to EUR 37.4 million, up EUR
4.8 million or 15 percent compared to the previous year, mainly due to salary changes
(bonuses for less favourable working hours, promotions and bonuses based on good sales
performance), and an increase of EUR 0.8 million in student work costs. At the end of 2023,
the number of workers at third-party operated service stations was 154 down compared to
the end of 2022, of which 140 transferred to Petrol d.d., Ljubljana, because in November
the structure of operation models was changed at 26 service stations which transferred
from the CODO
14
model to the COCO
15
model.
• The cost of services for the maintenance of fixed assets amounted to EUR 28.5 million,
which was down EUR 0.2 million compared to the previous year.
• The costs of payment transactions and bank services amounted to EUR 15.0 million, which
was EUR 0.9 million or 6 percent less than in the previous year, of which there was a
decrease of EUR 0.5 million in stock exchange commissions, EUR 0.3 million in payment
card fees and EUR 0.3 million in payment traffic costs – lower energy commodity prices.
• Short-term rental costs amounted to EUR 12.8 million, an increase of EUR 3.2 million or
33 percent compared to 2022, including an increase of EUR 1.0 million in software rental
costs and an increase of EUR 1.0 million in motorway operating charges (recorded as
concession fee costs in 2022), and an increase of EUR 0.7 million in service station rental
costs.
14
CODO – Company Owned Dealer Operated
15
COCO – Company Owned Company Operated
The Petrol Group (in EUR million) 2021 2022 2023
Index
2023/2022
Index
2023/2021
Cost of materials 29.3 39.4 65.6 166 224
Cost of services 147.7 180.1 186.3 103 126
Labour costs 114.3 135.6 160.6 118 140
Depreciation and amortisation 79.1 96.3 97.5 101 123
Other costs 62.6 16.5 51.4 312 82
- of which net allowances for operating receivables 7.9 7.9 -0.5 - -
Operating costs 433.0 467.9 561.3 120 130
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• Costs of professional services stood at EUR 12.5 million in 2023, a year-on-year increase
of EUR 0.6 million or 5 percent, of which EUR 1.3 million due to higher costs of student
work (students substituted employees). Consultancy and lawyer’s fees decreased by EUR
0.9 million, while copyright and electronic media costs increased by EUR 0.2 million.
• Outsourcing costs stood at EUR 9.5 million and were up EUR 4.2 million or 79 percent
relative to 2022, due to higher business volumes in the energy solutions for home and
industry segment.
• Amounting to EUR 7.4 million, the costs of fairs, advertising and entertainment decreased
by EUR 0.4 million or 5 percent compared to the previous year.
• The costs of insurance premiums totalled EUR 6.4 million and were down EUR 0.5 million
or 7 percent from 2022.
• The costs of environmental protection services totalled EUR 2.7 million and were up
EUR 0.2 million or 7 percent from 2022.
• Security costs for 2023 totalled EUR 2.2 million, a decrease of EUR 0.1 million from the
year before.
• Employee reimbursements totalled 1.4 million and were at a similar level as in 2022.
• Property management costs amounted to EUR 0.7 million and were down EUR 0.9 million
or 56 percent compared to the previous year – part of the costs were reallocated to
subcontractors.
• Membership fees in 2023 amounted to EUR 0.6 million and were EUR 1.0 million lower
than in the previous year – fees to the Croatian energy regulatory agency, the Croatian
Tourist Board and the contribution to Hrvatske šume from 2023 onwards are recorded
under other costs (other revenue-dependent fees); they were accrued at EUR 0.9 million
in the period analysed.
• Other costs of services stood at EUR 6.4 million, the same level as in 2022.
Labour costs totalled EUR 160.6 million, a year-on-year increase of 18 percent or EUR 25.0
million. The largest cost increases were in Petrol d.d., Ljubljana and the Petrol Croatia Group.
In both Slovenia and Croatia, costs increased mainly due to salary changes (pay rises for the
lowest-paid employees, additional payments up to the minimum wage, bonuses for less
favourable working hours – service stations are still facing staff shortages) and to rewarding
employees on the basis of good business results. In November, a change in the structure of
the service station management models from a CODO to a COCO model was implemented,
which increased the number of employees by 140.
The depreciation and amortisation charge stood at EUR 97.5 million, an increase of 1
percent or EUR 1.2 million relative to 2022. The depreciation and amortisation charge was
higher mainly in the retail network in Croatia and due to the higher volume of Atet d.o.o.’s
business.
Other costs stood at EUR 51.4 million, which was EUR 34.9 million more than in 2022.
Compared to the previous year, the remaining other costs increased by EUR 46.1 million,
mainly due to higher accruals. Net allowances for the impairment of operating receivables
decreased by EUR 8.4 million and impairment charges. Inventory impairment costs decreased
by EUR 4.2 million on account of increased recording of inventory impairment in 2022 at the
Geoplin Group and the Petrol Croatia Group.
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The Petrol Group is exposed to price and volumetric risks arising from trade in energy
commodities (petroleum products, natural gas, electricity and LPG). The Petrol Group
manages price and volumetric risks primarily by striving to harmonise purchases and sales of
energy commodities, both in terms of volumes and purchase and sale conditions, and thus
protects the generated margin on energy commodities. Based on the energy commodity
business model, limits are set to cap exposure to price, foreign exchange and volumetric risks.
To hedge the price of petroleum products, the Petrol Group mainly uses derivative financial
instruments. The partners are global financial institutions and banks or suppliers of goods, so
the Petrol Group estimates that the risk of the non-fulfilment of concluded agreements is
minimal. In electricity trading, the Petrol Group also concludes derivative financial instruments
with financial institutions where the risk of the non-performance of concluded agreements is
minimal, taking into account the accepted market value limits. The value of financial
transactions is regularly monitored based on changes in market prices and the need for our
portfolio hedging. The net gain on derivatives stood at EUR 53.3 million, an increase of EUR
88.9 million compared to 2022.
Other income stood at EUR 10.9 million, which was EUR 91.5 million less than in 2022. In
2022, EUR 88.6 million was recorded under other income as a result of the revaluation of the
liability to Gazprom Export LLC to fair value based on an independent valuer’s valuation.
Other expenses stood at EUR 0.3 million, the same level as in 2022.
The EBITDA for 2023 totalled EUR 277.1 million, an increase of EUR 180.8 million from 2022
and EUR 26.7 million compared to the plan.
Structure of the EBITDA of the Petrol Group in 2023 by product groups
Compared to 2022 when the energy markets were in a state of extraordinary situation, the
EBITDA structure was again normalised. In the structure, the EBITDA share of the Energy and
Solutions product group has been increasing, which corresponds to the strategic commitment
of transitioning from traditional energy sources to cleaner renewable energy sources.
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EBITDA in 2023 compared to 2022
Operating profit totalled EUR 180.2 million, an increase of EUR 188.1 million from 2022 when
it was even negative due to the regulation of the retail prices of certain fuels.
The share of profit of equity-accounted investees valued according to the equity method
amounted to EUR 3.7 million, which is EUR 0.4 million or 12 percent more than in 2022.
The net finance expenses of the Petrol Group stood at EUR 16.1 million in 2023, which was
EUR 10.9 million more than the year before. In 2023, the net foreign exchange gain was up
1.6 million compared to 2022 and the net interest expenses were up EUR 1.3 million. The net
loss on derivatives was EUR 7.6 million higher than in 2022. There was no reversal of the
allowance for financial receivables in 2023 and it amounted to EUR 0.6 million in 2022. Other
net financial expenses in EUR 2023 were EUR 2.9 million higher than in 2022.
The profit before tax in 2023 totalled EUR 167.8 million, up EUR 177.6 million compared to
the previous year. The net profit realised in 2023 totalled EUR 136.6 million, which was
EUR 139.2 million more compared to the loss realised in 2022 and EUR 19.5 million more than
planned.
HIGHLIGHTS:
• The gross profit was EUR 677.6 million, a year-on-year increase of 72 percent.
• The EBITDA of the Energy and Solutions product group has been increasing in the
structure, in line with the strategic commitment of transitioning from the traditional energy
sources to renewable energy sources.
10.3 Financial position of the Petrol Group
The total assets of the Petrol Group as at 31 December 2023 amounted to EUR 2.6 billion,
which is 4 percent less than at the end of 2022. Non-current assets amounted to EUR 1.4
billion, which is 2 percent more than at the end of 2022, and the current assets amounted to
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EUR 1.3 billion, a year-on-year decrease of 9 percent. The drop in the value of total assets is
most of all a result of the changes in energy prices and the optimisation of the working capital
management.
The most important items in the non-current assets consisted of property, plant and
equipment, intangible fixed assets and investment property, which totalled EUR 1.1 billion and
were EUR 10.5 million higher than at the end of 2022. Right-of-use assets totalled EUR 130.8
million at the end of 2023, which was 1 percent less than at the end of 2022. Non-current
investments in jointly controlled entities and associates stood at EUR 59.7 million at year-end,
which was EUR 1.4 million more than year-end 2022.
The management of current assets, which accounted for 48 percent of the Petrol Group’s
total assets, is given particular attention. The amount of the current operating assets affects
the amount of borrowing from suppliers and banking institutions. The Group’s short-term credit
lines in both domestic and foreign markets allow the Group to respond quickly to changes in
the amount of these assets. Compared to the end of 2022, the balance of operating receivables
as at the last day of 2023 decreased by 5 percent or EUR 43.1 million, while inventories are
down by EUR 59,1 million or 22 percent. The decrease in these items was mainly due to lower
prices for petroleum products compared to the previous year.
In the area of credit risk management, we closely follow all the procedures of credit insurance
companies. The Petrol Group has secured 87 percent of all receivables, which individually
exceed a nominal value of EUR 100,000. We monitor customer payments on a daily basis and,
where appropriate, adopt measures to reduce credit risk. Despite the negative impact on the
economy, payment discipline has not significantly deteriorated so far.
As at the last day of the period under review, the Petrol Group’s working capital amounted to
EUR 87.8 million, which is EUR 69.7 million more than at the end of 2022, when the Group’s
working capital amounted to EUR 18.1 million.
Cash flows generated from operations amounted to EUR 220.7 million in 2023, which is EUR
17.7 million more than in 2022. The Petrol Group used its own revenues for investment
activities, the payment of dividends and the repayment of loans. The net financial liabilities to
equity ratio (net debt/equity ratio) was 0.52 as at the last day of 2023, and it stood at 0.60 at
the end of 2022. The net debt/EBITDA ratio was 1.7 at the end of 2023 compared to 5.4 at
the end of 2022. The financial leverage ratio stood at 34 percent at the end of 2023 and at
37 percent at the end of 2022.
Despite the stabilisation of the energy market, we continued to give high priority to ensuring
an adequate liquidity structure in 2023. When determining the needs for additional debt, we
took into account the appropriate net debt to EBITDA ratio.
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Equity, net debt and financial leverage ratio
In 2023, we earmarked EUR 82.9 million for net investment, an increase of 38.7 percent
compared to EUR 59.8 million in 2022 due to the limited available financial resources.
Before the onset of the energy crisis and the resulting price regulation, the Petrol Group was
in very good business and financial shape. Despite the challenging situation brought by the
energy crisis and energy transition, as well as government regulatory interventions and
uncertainties about compensation for damages, when we had to severely restrict our
investment budget in 2022, we continued to successfully implement key development projects
in 2023. We kept our strategic focus on debt and reduced the net debt below the level from
2021. The Petrol Group kept all the key indicators at acceptable levels, which provide the
Group with a financially sustainable basis for its future operations.
We expect 2024 to be as challenging as 2023. We will continue to pursue our strategic
objective of ensuring stable operations, including by maintaining an appropriate debt to
EBITDA ratio. Despite the tough business environment, a shareholder policy that is based on
the long-term maximisation of returns for shareholders is still one of the cornerstones of
Petrol’s development strategy. The Management Board of Petrol d.d., Ljubljana advocates a
stable long-term dividend policy, which best fits the Petrol Group’s long-term development
targets.
S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s 'BBB-' long-term and 'A-3' short-term
credit rating with a 'stable' outlook on 22 December 2023.
On 4 August 2023, Slovenia suffered devastating floods which also damaged some of Petrol’s
infrastructure. We had to temporarily close some of our service stations. On the report
publication date, the Nazarje, Otiški vrh and Žerjav service stations still did not operate at full
capacity (the sale of merchandise was limited, but the sale of fuels ran smoothly). Due to
damage to the gas pipeline system, the supply of district heating and natural gas was
temporarily disrupted to a part of households in the municipalities of Mežica, Črna na
Koroškem and Prevalje, but it has already been restored. Damage to Petrol’s infrastructure
amounted to EUR 3.4 million, but due to the appropriate property insurance it did not have any
major effect on the business results of Petrol d.d., Ljubljana. As part of the solidarity aid
activities, the Petrol Group focused first and foremost on its employees who were severely
affected by flooding. The Company helped them both financially and through other measures.
We also stood by our customers during this difficult time, hence we agreed to the initiative of
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the Ministry of the Environment, Climate and Energy to enable households in the most affected
areas to pay electricity at the price of EUR 1 MWh until the end of 2023.
The Management Board of Petrol d.d., Ljubljana submitted proposals for amicable settlement
of dispute to the State Attorney’s Offices of the Republic of Slovenia and the Republic of
Croatia to be compensated for the damage resulting from the regulated prices of motor fuels
in 2022, in Slovenia in the amount of EUR 106.9 million and in Croatia in the amount of EUR
55.9 million. Both State Attorney’s Offices rejected our proposals.
A legal action for damages of EUR 106.9 million resulting from the capped motor fuel prices in
2022 was brought against the Republic of Slovenia on 16 May 2023. The Republic of Slovenia
rejected cooperation in mediation, meaning that the court proceedings would continue before
the Ljubljana District Court.
Given the decision of the Croatian Constitutional Court in the case in which small fuel
distributors sought review of constitutionality and lawfulness of regulations where the
Constitutional Court decided that regulation was in line with the legal regulations, we are
currently preparing a new compensation claim for damage resulting from the capped
petroleum product prices in Croatia; the claim will be submitted to the State Attorney’s Office
in Zagreb.
On 4 December 2023, Petrol d.d., Ljubljana submitted a Petition for the Review of the
Constitutionality and Legality of Decree on Setting Prices for Certain Petroleum Products and
Decree and Decree amending Decree on Setting Prices for Certain Petroleum Products and a
Petition for a Temporary Suspension of Implementation, which were prepared in the light of
the decision made by the Republic of Slovenia to reduce the regulated margin for NMB-95 and
diesel fuel by even 30 and 31 percent, respectively, effective from 5 December 2023, even
though fuel margins in Slovenia were still much lower than in comparable countries of Western
Europe. The reduced margins put a disproportionate pressure on the Company’s operations,
resulting in a need to cut its green transition budget. On 6 March 2024, the petition was
amended due to the adopted Decree amending Decree on setting prices for certain petroleum
products (Official Journal of the RS, No. 15/2024) which, despite the increased permitted
margin by 1 cent, still forces petroleum product sellers to sell at prices below their cost price.
On 16 May 2023, Geoplin d.o.o. Ljubljana initiated an arbitration against Gazprom Export LLC
on the grounds of a breach of the natural gas supply agreement. Due to a corporate guarantee
being enforced by Gazprom Export LLC, Petrol d.d., Ljubljana joined Geoplin d.o.o. Ljubljana
in initiating the arbitration proceedings. Pursuant to the decision made by the court of
arbitration, the two arbitration proceedings must be conducted separately, hence
the Geoplin d.o.o. Ljubljana proceedings against Gazprom Export LLC will continue within the
initiated proceedings and Petrol d.d., Ljubljana will enter the arbitration subsequently.
On 7 July 2023, the Government of the Republic of Croatia passed a decree, setting a
mechanism of compensation payments to natural gas suppliers for the difference between the
purchase price for the relevant energy commodity and the price regulated by the natural gas
pricing methodology. Geoplin d.o.o. Zagreb has already filed an application for the
reimbursement of the price difference in the amount of EUR 21.0 million for the period of April–
December 2023. The claim is not recognised in the Petrol Group's financial
statements because it has not been confirmed by the market regulator.
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HIGHLIGHTS:
• The reduced margins on certain petroleum product prices to the level way below EU
average puts a disproportionate pressure on the Company’s operations, resulting in a need
to cut its green transition budget.
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11. Alternative performance measures
To present its business performance, the Petrol Group also uses alternative performance
measures (APMs) as defined by ESMA. The APMs we have chosen provide additional
information about the Petrol Group's performance.
List of alternative performance measures
Alternative performance
measures
Calculation information Reasons for choosing the measure
Gross profit
Gross profit = Revenue from the sale of merchandise and
services – Cost of goods sold
The Petrol Group has no direct influence over global
energy prices, which makes the gross profit more
appropriate to monitor business performance.
Gross profit
+ Net DFI Gross profit
+ Net Derivative Financial Instruments
Net derivatives are intended for hedging price and
volumetric risks and, hence, the amount of sales revenue
and the cost of goods sold. In terms of comparison with
the previous period, the ratio is more appropriate than
merely the gross profit.
EBITDA
EBITDA = Operating profit + Net Allowances for operating
receivables + Depreciation and amortisation charge.
EBITDA indicates business performance and is the
primary source for ensuring returns to shareholders.
EBITDA/Gross profit Ratio = EBITDA/Gross profit
The ratio is a good approximation of the share of free
cash flows from operating activities in gross profit.
EBITDA / (Gross profit +
Net DFI)
EBITDA / (Gross profit + Net Derivative Financial
Instruments)
The share of EBITDA in the Gross profit, increased by the
net derivatives is a good approximation to the share of
free cash flow in the gross profit, increased by the net
derivatives and ensures better comparability to the
previous period and the plan.
Operating costs
Operating costs = Costs of materials + Costs of services
+ Labour costs + Depreciation and amortisation + Other
costs
The criterion is important in terms of the cost-
effectiveness of operations.
Operating costs/Gross
profit
Ratio = Operating costs/Gross profit
The ratio is relevant because it concerns the cost-
effectiveness of operations.
Operating costs / (Gross
profit
+ Net DFI)
Operating costs / (Gross profit
+ Net Derivative Financial
Instruments)
The ratio is relevant in terms of the operational cost
efficiency and ensures better comparability to the
previous period and the plan.
Net debt/Equity
Net debt = Current and non-current financial liabilities +
Current and non-current lease liabilities – Cash and
cash equivalents; Ratio = Net debt/Equity
The ratio reflects the relation between debt and equity
and is, as such, relevant for monitoring the Company's
capital adequacy.
Net debt/EBITDA Ratio = Net debt/EBITDA
The ratio expresses the Petrol Group’s ability to settle its
financial obligations, indicating in how many years
financial debt can be settled using existing liquidity and
cash flows from operating activities.
ROE ROE = Net profit/Average equity
The ratio indicates the Petrol Group's efficiency to
generate net profit relative to equity. Return on equity
also reflects management's performance in increasing the
value of the Company for its owners.
ROCE
ROCE = Operating profit / (Total assets – Current
liabilities)
The ratio shows how efficient the Petrol Group is in
generating profits from its long-term sources of finance.
Added value/Employee
Added value per employee = (EBITDA + Integral labour
costs)/Average number of employees. Integral labour
costs = Labour costs relating to Petrol Group employees
+ Labour costs relating to third-party managed service
stations, which stood at EUR 28.6 million in 2023 and
EUR 25.2 million in 2022.
This productivity ratio indicates average newly created
value per Petrol Group employee.
Working capital
Working capital = Operating receivables + Contract
assets + Inventories – Current operating liabilities –
Contract liabilities
The ratio reflects operational liquidity of the Petrol Group.
Financial leverage Financial leverage = Net debt/(Equity + Net debt)
Financial leverage indicates the proportion to which the
Petrol Group's operations are financed through equity
relative to borrowing.
Net investments
Net investments = Investments in fixed assets (EUR 90.9
million in 2023) + Non-current investments (EUR 4.3
million in 2023) – Disposal of fixed assets and
reimbursements (EUR 12.2 million in 2023).
The information about investments reflects the direction of
the Petrol Group's development.
Book value per share
Book value per share = equity/total number of issued
shares
Book value per share reflects the value of a public limited
company's total equity per share.
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12. Events after the end of the accounting period
On 22 February 2024, the Government of the Republic of Slovenia adopted Decree amending
Decree on Setting Prices for Certain Petroleum Products, capping the margin on diesel at EUR
0.0783 per litre and on NMB-95 at EUR 0.0794 per litre in the period from 27 February to 25
March 2024.
On 25 March 2024, the Government of the Republic of Slovenia adopted Decree amending
Decree on Setting Prices for Certain Petroleum Products, keeping the margin on diesel capped
at EUR 0.0783 per litre, on NMB-95 at EUR 0.0794 per litre and on extra-light fuel oil at EUR
0.08 per litre until 20 June 2024.
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13. Risk management
The Petrol Group operates in two challenging business activities: trading and energy. Both are
facing significant changes, which require a fresh perspective on the key business model
concepts. In the energy segment, increasing importance is given to energy efficiency, to new
uses of existing energy commodities and to the development of new ones that together
contribute to a successful energy transition. There is an increasing awareness of sustainable
development, accompanied by tightening regulations. In trading, we are seeing a notable
change in the behaviour of end-customers who are becoming more aware, engaged and
digitally skilled.
The Petrol Group is aware of the changes and addresses them in the 2021–2025 strategy. We
are addressing the trends in the energy industry with a comprehensive range of energy
solutions. Thanks to new digital channels, a broader range of energy commodities and a
personalised offer, we will be even closer to our customers, helping them make a transition
from traditional energy sources to cleaner renewable energy. The described changes in the
business environment and related trends bring new risks but also new opportunities. In the
2021–2025 strategy, the Petrol Group has adjusted its business objectives according to its risk
management policies and its risk appetite.
13.1 Risk management in 2023
The period of high prices and increased volatility for all energy commodities continued in 2023.
The high energy commodity prices have had a significant impact on the economic and political
environment across Europe and therefore on the Petrol Group’s business. National
governments have responded to the situation with various decrees and energy commodity
price regulations. The Petrol Group was mainly affected by changes and restrictions in the
pricing of petroleum products in the markets of Slovenia, Croatia and Serbia (retail and
wholesale), as well as by the regulated prices of electricity and natural gas. The details of the
decrees by country are described in Chapter 10 Analysis of the business performance of the
Petrol Group’s operations in 2023, the Business environment subsection.
Cyber risks have increased significantly in recent years, as cyber-attacks will be the battlefields
of the future. The Petrol Group is therefore already working today to increase its resilience to
be ready for such threats in the future. Read more about cyber risks in section 18.3 Information
security put to the test.
According to the latest risk assessment results, financial risks, especially credit, price,
volumetric and foreign exchange risks, remain among the most important and probable risks.
In 2023, several activities were carried out in this area, particularly in the area of integrating
and segmenting the risk aspects related to the overall ESG approach. At the end of 2023, we
started a comprehensive modernisation of the Petrol Group’s enterprise risk management
system, which will continue in 2024. The updated system will enable the more detailed
identification of risks, an accurate assessment thereof and a definition and evaluation of the
necessary control measures and active reporting on the Petrol Group’s risks. This will
strengthen the culture of risk awareness and make Petrol more resilient to default risks and
more effective in responding to them.
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In connection with credit risks, we paid attention to our customers’ solvency and, by
extension, the balance and quality of operating receivables. We have also continued to build
on the solid foundations laid in recent years in terms of the securities we hold. As of 31
December 2023, 87 percent of Petrol’s trade receivables individually exceeding EUR 100,000
were secured through insurance policies, bank guarantees and other appropriate insurance
instruments. Despite the difficult macroeconomic situation in the last three years due to the
pandemic, the war and the energy crisis, the stock of overdue receivables has not deteriorated
significantly and remains at a satisfactory level of 12 percent. The age structure of the
receivables is presented in more detail in the accounting section of the report.
The Credit Committee continued to actively pursue its mandate. A great deal of attention was
paid to receivables management, realising that our partners, just like us, will face the financial
consequences of high prices for all energy commodities, increased inflation and a tight
macroeconomic environment.
The liquidity of Petrol Group companies was ensured through the central management and
reconciliation of current cash flows and by managing the Petrol Group’s debt. In ensuring the
structural liquidity of the Petrol Group, we follow the guidelines set out in connection with the
rating assigned to us by S&P Global Ratings. Despite the tight operating conditions, S&P
Global Ratings has once again reaffirmed Petrol d.d., Ljubljana’s ‘BBB-‘ long-term ‘investment-
grade’ rating, its ‘A-3’ short-term credit rating and its ‘stable’ credit rating outlook at the end of
2023. This continues to provide us with better access to financial resources and, at the same
time, a stable financial position. In 2023 the Petrol Group’s Management of Assets and
Liabilities Board continued to monitor liquidity, foreign exchange and interest rate risks.
The Petrol Group plays an increasingly important role in electricity sales, distribution and
trading and the sale of natural gas, which is why in 2023, a lot of attention was again paid to
credit, price and volumetric risks. Most attention was paid to the sale of electricity and
natural gas to end-customers, where we further upgraded the system of monitoring volumetric
and price risks beyond the quantity limits (by individual segments) and setting the required
mark-ups for the assumed risks. In the area of electricity trading, we continued to monitor credit
risks closely due to high prices and increased volatility.
The above activities help us develop a risk-awareness culture to ensure better control over the
risks and high-quality information for decision-making at all operational levels. Risk
management concerns each Petrol Group employee who is, as a result of their decisions and
actions, exposed to risks on a daily basis while carrying out their work assignments and
responsibilities. The very fact that at the Petrol Group, risk management is integrated into all
aspects of business enables us to generate added value for shareholders and maintain the
investment-grade credit rating.
In addition to the main financial risks, according to the latest risk assessment, the most relevant
risks include economic environment risks, business decision-making risks, financial
environment risks, process risks, strategic decision-making risks, information systems
risks and interest rate risks.
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13.2 Strategic outline for risk management at the Petrol Group
In risk management, the Petrol Group pursues the strategic direction of ensuring stable
business growth while accepting moderate risks. We adjust the required rate of return to the
expected risks.
The risks we are willing to take on are those arising from the Petrol Group’s development
strategy. This allows further stable business growth and the dynamic development of new
business models. We tread carefully, however, when taking on risks arising from:
• expansion into new activities and markets in line with the strategic outline; and
• operations related to existing activities.
We are not willing to take on the following risks:
• environmental risks;
• risks affecting the safety and health of our staff;
• reputational risks;
• risks of fraud and corruption;
• risk of losing our investment-grade credit rating (arising from the Petrol Group’s
operations).
In accordance with this overarching principle, the following strategic risk management
orientations of the Petrol Group were defined:
• The Petrol Group shall monitor changes in the industry and markets in which it operates,
and proactively adapt its operations and targets in order to achieve its strategic objectives.
• New investments of the Petrol Group shall be aligned with its strategic and financial plans,
and the required rates of return shall reflect the risks assumed.
• The Petrol Group’s human resources policy shall be aligned with its strategic orientations.
The human resources department shall be actively involved in staff development and
training while also monitoring the organisational climate.
• The Petrol Group shall promote compliance with the law and internal rules and, through its
values and Code of Conduct, seek to build a corporate culture that promotes lawful,
transparent and ethical conduct and decision-making.
• The Petrol Group shall be mindful of the operational risks it is facing and shall seek to
establish an appropriate process, systemic and IT environment that allows for its strategic
development and reduces operational risk to an acceptable level.
• The Petrol Group shall secure its energy product sales margins either through natural
adjustments or derivative trading in order to hedge risk and ensure the stability of cash
flows.
• The Petrol Group shall make sure that its partner portfolio is high quality and appropriately
dispersed. The Petrol Group shall strive to have its at-risk receivables sufficiently secured,
either by obtaining credit insurance instruments or taking out insurance.
• The Petrol Group shall ensure long-term financial stability through sustainable financial
leverage.
• The Petrol Group shall manage its short-term liquidity by matching inflows and outflows
and by maintaining adequate credit lines.
• The Petrol Group shall make every effort to hedge its interest rate risk.
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13.3 Petrol’s risk model with the most relevant and probable risks
Petrol’s risk model consists of an integrated set of 32 risk categories divided into two major
groups: environment risks, performance risks and environmental and climate risks.
According to the results of the latest assessment, the following financial risks remain among
the most relevant and most probable: credit, price and volumetric risks, as well as foreign
exchange risk. To control and manage these risks, the most rigorous control system possible
is required. The Petrol Group uses such a system, which is described in more detail in the
sections dealing with individual financial risks. In addition to the main financial risks, the most
relevant and probable risks include economic environment risks, business decision-making
risks, financial environment risks, process risks, strategic decision-making risks, information
systems risks and interest rate risks.
The Petrol Group is facing the new challenge of integrating and segmenting the risks
associated with a comprehensive ESG approach. The first step towards integrating an
integrated ESG approach to risk, which we started in 2022, is the integration of environmental
and climate risks into the Petrol Group’s overall risk management. In 2023, we placed our risk
management scheme at Level III, as presented in the Risk categories within the Petrol Group
table. We did not conduct a new risk assessment in 2023 as we received an ESG rating in
2023 that is better than some comparable companies in Europe. As part of the modernisation
of our business risk management system, we will also conduct an environmental and climate
risk assessment in 2024.
Risk categories within the Petrol Group
I.1. Political risks I.3. Financial environment risks I.5. Disaster risks
I.2. Economic environment risks I.4. Legislation and regulation risks
II. Performance risks
II.1. Operational risks II.2. Strategic risks II.4. Financial risks
II.1.1. Human resources management and leadership risks II.2.1. Strategic decision-making risks II.4.1. Price and volumetric risks
II.1.2. Process risks II.2.2. Business decision-making risks II.4.2. Credit risks
II.1.3. Information system risks II.2.3. Information risks II.4.3. Liquidity risks
II.1.4. Security and safety risks II.3. Risks of fraud and other illegal acts II.4.4. Foreign exchange risks
II.1.5. Risks of discontinued operations II.3.1. Risks of criminal offences/fraud II.4.5. Interest rate risks
II.3.2. Corporate integrity risks
III.1. Environmental risks III.2. Physical climate risks III.3. Climate risks of transition
III.1.1. Lack of natural resources III.2.1. Acute III.3.1. Politics and legislation
III.1.2. Loss of ecosystems III.2.2. Chronic III.3.2. Litigation risks
III.1.3. Environmental pollution III.3.3. Technology
III.1.4. Environmental legislation III.3.4. Market risks
III.1.5. Human migrations III.3.5. Reputational risks
III. Environmental and climate risks
I. Environment risks
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The chart below shows the distribution of individual risks according to the latest assessment.
Distribution of the Petrol Group’s risks according to the latest assessment
Frequency level legend:
1 - the event can be realised less than once every three years;
2 - the event can be realised at least once every three years, but not more often than 2 times a year;
3 - the event can be realised more than 2 times a year, but not more often than once a month;
4 - the event can be realized more than once a month, but not more often than once a week;
5 - the event can be realised more often than once a week.
Importance level legend:
1 - potential damage to operations is lower than EUR 50,000;
2 - potential damage to operations ranges from EUR 50,000 to EUR 250,000;
3 - potential damage to operations ranges from EUR 250,001 to EUR 1,000,000;
4 - potential damage to operations ranges from EUR 1,000,001 to EUR 5,000,000;
5 - potential damage to operations is greater than EUR 5,000,000.
The Petrol Group's risk management matrix with control methods
In 2023, the individual risk categories were managed as follows:
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I. ENVIRONMENTAL RISKS
The Petrol Group protects itself against external environment risks by systematically
monitoring developments in the business environment and responding to them in a timely
manner. The most relevant and frequent risks included in the group of external environment
risks are economic environment risks. Although relevant, disaster risks, which also belong
in this group, occur infrequently. Financial environment risks, legislation and regulation risks
and political risks were also assessed as medium-relevance and lower-frequency risks and
were classified into the second quadrant together with other environment risks.
Economic environment risks are managed by constantly monitoring competitors and
analysing the operations of electricity, oil and gas companies, as well as by means of market
surveys, benchmark analyses, customer satisfaction measurement, etc.
We also try to identify the financial environment risks through financial planning and
simulations, as well as through cooperation with the financial environment (banks, financial
institutions and investors). These risks are taken into account when preparing a strategic
business plan and are discussed at the Balance Sheet Management Board.
Legislation and regulation risks are managed by proactively engaging with institutions that
are able to amend relevant laws and by analysing the impact of relevant legislative proposals
and changes on the Petrol Group’s operations. In 2023, energy commodity price regulations
in various countries continued to have a negative impact on the Petrol Group’s performance.
II. PERFORMANCE RISKS
Performance risks include operational risks, strategic risks, risks of fraud and other illegal acts,
and financial risks.
II.1 Operational risks
Operational risks include human resources management and leadership risks, process risks,
information system risks, security and safety risks, and risks of discontinued operations.
According to the latest assessment, process risks, followed by information system risks, are
the most relevant and frequent of those risks.
Process risks refer to a potential loss resulting from incorrectly defined/set up organisational
processes, their ineffective/inefficient execution and a lack of responsiveness to changes in
the Company’s internal/external environment. The Petrol Group therefore actively reviews all
its business processes. At the same time, we are developing a process architecture that will
determine the owners and administrators of individual processes.
Nowadays, information infrastructure is also becoming increasingly important. The risk of
information systems not being properly set up, not functioning correctly, not being sufficiently
secure or being prone to interruptions, or of errors occurring in the collection and processing
of data, or of the systems not being responsive to changes in the external and internal
environment or to the needs of users is extremely relevant, which is why we pay considerable
attention to this field. The projects addressing this risk include the replacement of the Petrol
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Group’s ERP system
16
and the deployment of a new CRM system
17
, which was implemented
first in the parent company in 2019, followed by the other companies in the Petrol Group in
2020 to 2023.
Human resources management and leadership risks are controlled through the regular
measurement of the organisational climate across the Petrol Group, the annual interview
system and the assessment of management skills, the measurement of the quality of internal
services and the adopted human resources strategy. The Petrol Group is increasingly aware
of the importance of human resources, as they became more relevant in the latest risk
assessment.
II.2 Strategic risks
Strategic risks are closely connected to operational risks. They include strategic decision-
making risks, business decision-making risks and information risks, with the latter being the
most relevant and frequent, according to the latest assessment. They are followed by strategic
decision-making risks, while the risks of providing information were ranked lower.
Business decision-making risks are managed by implementing and improving various
organisational rules and by regularly monitoring operations and reporting to various
stakeholders. Strategic decision-making risks are mitigated by means of a clearly defined
strategy, by exercising control over its implementation and via annual conferences.
II.3 Risks of fraud and other illegal acts
The risk of fraud and other illegal acts is split into two subgroups, the risk of criminal
offences/fraud and corporate integrity risk. The risks of criminal offences/fraud include fraud
committed by management, illegal acts, fraud, theft, abuse of employees and third parties, the
unauthorised use of resources, intentional damage and violent illegal acts. The management
of the risks of criminal offences/fraud requires constant supervision and control as they are
assessed as being high frequency and low relevance.
The risk of a corporate integrity breach refers to the incompatibility of the Company’s
operations with the law, Petrol’s Code of Conduct, other rules, applicable recommendations,
internal regulations, good business practices and ethical principles. The management of this
risk includes the application of the compliance system (Rules on the Functioning of the
Compliance Assurance System).
Petrol is exposed to a higher risk of fraud due to the nature of its operations, which include
service stations operations involving cash registers and sales of petroleum products. Pursuant
to the Code of Conduct and internal regulations, a zero-tolerance policy for fraud has been
adopted within the Petrol Group.
In charge of the comprehensive management of the risk of fraud is a task force that has put
together a fraud register, assessed the risk of certain acts of fraud being committed, catalogued
existing preventive and remedial checks, and drawn up actions for the containment of fraud.
16
ERP – Enterprise Resource Planning
17
CRM – Customer Relationship Management
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The responsibility to detect and investigate fraud within the Petrol Group is in the hands of
Corporate Security and Control of Operations, a professional service consisting of a qualified
team of investigators.
II.4 Financial risks
According to the assessment of frequency and relevance, financial risks have the highest
rankings, which is why the Petrol Group pays special attention to these risk categories. This is
evident from detailed risk management procedures including clearly specified systems of
limits, appropriate monitoring levels and reporting on the exposure to individual financial risks,
the active involvement of boards and committees tasked with monitoring and controlling
individual financial risks, as well as the use of derivative financial instruments to secure specific
financial risks. The financial risk management system focuses on the unpredictability of the
financial and energy markets and aims to minimise the negative impact on the financial
performance and consequently the volatility of the Petrol Group’s financial results. This system
is continuously evaluated and improved, and specific activities are outlined below for each risk.
The most relevant financial risks were credit, price and volumetric risks, as well as foreign
exchange risks, while liquidity and interest rate risks were assessed as less significant. The
tight economic environment, energy price hikes and the consequent regulation of energy
commodity prices and higher interest rates have had an impact on the Company’s liquidity.
Detailed information about exposure to individual types of financial risk and disclosures about
financial instruments and risks are provided in the notes on the financial statements,
specifically in the financial instruments and risk management chapter.
Price and volumetric risks and foreign exchange risks
The Petrol Group’s business model includes energy commodities, such as petroleum products,
natural gas, electricity and liquefied petroleum gas, exposing the Group to price and volumetric
risks and to foreign exchange risks arising from the purchase and sale of these products.
The Petrol Group purchases petroleum products under international market conditions and
pays for them mostly in US dollars, while sales take place in local currencies (mainly in EUR).
This exposes the Petrol Group to both the price risk (changes in the prices of petroleum
products) and the foreign exchange risk (changes in the EUR/USD exchange rate) while
pursuing its core line of business. The Petrol Group manages volumetric and price risks to the
greatest extent possible by matching the suppliers’ terms of procurement with the terms of sale
applying to customers. Any remaining open price or foreign exchange positions are closed
through the use of derivative financial instruments, in particular commodity swaps in the case
of price risks and forward contracts in the case of foreign exchange risks. The purpose of
securing with derivate financial instruments is to secure the selling margin. The war in Ukraine
has brought uncertainty and some challenges to the supply of petroleum products. Despite the
tight situation, their uninterrupted supply has been ensured, although market volatility remains
high. For 2023, we had already secured sufficient goods with origins complying with the
sanctions at an annual level before the sanctions themselves were implemented.
High electricity and natural gas prices significantly increase the price and volumetric risks
managed by the Petrol Group through a diverse set of limit systems defined according to the
business partner, risk value and volumetric exposure, and through appropriate monitoring and
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control processes. In addition, the Petrol Group regularly monitors the adequacy of the limit
systems used, which it updates and supplements if necessary.
In addition to the risks arising from changes in the EUR/USD exchange rate, the Petrol Group
is exposed, to some degree, to the risk of changes in other currencies, which is linked to doing
business in the region. The Group monitors open foreign exchange positions and decides how
to manage them on a quarterly basis.
Credit risks
Credit risk was assessed as the most important of all the risks, at the time mainly due to the
impact of the pandemic. However, it remains equally important in the face of the energy crisis
and higher interest rates in 2022 and 2023. The Petrol Group was exposed to it in connection
with the sale of products and services to natural and legal persons and manages it using the
measures outlined below.
The operating receivables management system provides us with efficient credit risk
management. As part of the regular receivables management processes, we constantly and
actively pursue the collection of receivables, a process that became even more intense since
the beginning of the COVID-19 pandemic due to the exceptional economic situation, and has
continued to be so in the last two years as a result of the high prices of all energy commodities.
In the first half of 2023, the internal model for assessing the creditworthiness of business
customers was upgraded, further strengthening our resilience to the expected tightening of
conditions. We also refine procedures for approving the amount of exposure (limits) to
individual buyers and try to maintain the range of first-class credit insurance instruments as a
requirement to approve sales (receivables insurance with credit insurance companies, bank
guarantees, collaterals, corporate guarantees, securities and pledges). In the previous year,
this was a significant challenge. The insurance scheme allows keeping track of the Group’s
needs in the field of credit risk insurance as the market conditions evolve. A great deal of work
is put into the management of receivables from all customers in Slovenia, and significant
attention is also devoted to the collection of receivables in the SE Europe markets, where the
solvency and payment discipline of the business sector differ from those in Slovenia.
Receivables are systematically monitored by portfolio, region and organisational unit, as well
as by credit risk assessment, level of insurance and individual customer. In addition, we
introduced centralised control over the received credit insurance instruments and collection.
In the past, the pandemic resulted in a reduced economic activity, causing companies to face
liquidity shocks, which in turn means higher credit risk for our customers. In the last two years,
however, the tightening situation and the resulting higher credit risk are mainly a result of the
high energy commodity prices and the higher interest rates at which companies are borrowing.
In 2023, the Petrol Group continued to monitor closely the indicators of increased risk and held
intensive communication with its customers. At the operational level, all the companies in the
Petrol Group still closely monitor the balance of receivables on a daily basis and actively
cooperate with customers in recovery.
Despite the above measures, the Petrol Group, too, is unable to fully avoid the consequences
of bankruptcies, compulsory composition proceedings and personal bankruptcies. Given the
higher energy commodity prices and interest rates, we expect credit risks to increase over the
next few years, especially in the event of a possible recession in the European Union. This is
particularly true for partners in the electricity and natural gas sales segment, where the forward
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price of electricity (on the European Energy Exchange EEX
18
) for delivery in Hungary for 2024
as at 27 December 2023 (the last day of quotation of the annual price for 2024 delivery in
Hungary on the EEX) was still at a high level although lower by approximately 53 percent
compared to the forward price as at 28 December 2022 (the last day of the quotation of the
annual price for 2023 delivery in Hungary on the EEX). As at 27 December 2023, the
forward
19
hub for 2024 was also lower compared to the forward price as at 28 December
2022, by around 52 percent. In order to limit credit and price risks, an electricity and natural
gas sales policy was adopted at the end of 2022 that provided for a more rigorous way of
entering into transactions in 2023. In addition, a methodology was adopted to systematically
address the higher risks assumed through a higher contractual margin (risk/reward aspect).
We consider that credit risks are satisfactorily managed within the Petrol Group. Our
assessment is based on the nature of our products, our market share, our large customer
base, the vast range of credit insurance instruments, a higher volume of secured receivables
and a low level of overdue receivables. 77 percent of receivables from legal entities are
secured, with credit insurance and offsetting against trade liabilities being the most widely used
insurance instruments (together accounting for 93 percent). In addition, despite the difficult
macroeconomic situation in the last three years due to the pandemic, the war and the energy
crisis, the stock of overdue receivables has not deteriorated significantly and remains at a
satisfactory level of 12 percent. The age structure of the receivables is presented in more detail
in the accounting section of the report.
In the area of credit risk management, we closely follow all the procedures of credit insurance
companies. The Petrol Group has secured 87 percent of all receivables, which individually
exceed a nominal value of EUR 100,000. We monitor customer payments on a daily basis and,
where appropriate, adopt measures to reduce credit risk. Despite the negative impact on the
economy, payment discipline has not significantly deteriorated so far.
Liquidity risks
Petrol’s strong position is confirmed by its long-term BBB- credit rating with a stable outlook,
which was reaffirmed by S&P Global Ratings in December 2023. This investment-grade rating
enables us to tap international financial markets more easily and at the same time represents
an additional commitment to successful operations and the deleveraging of the Petrol Group.
We are following the relevant S&P Global Ratings methodology in the management of liquidity
risks.
The liquidity position of the Petrol Group remained solid in 2023, both at the level of the Group
and at the level of individual subsidiaries. With an appropriate structure and scope of long-term
and short-term credit lines, we smoothly ensured the liquidity adequacy of the Petrol Group.
The Petrol Group’s stable and solid liquidity position, which ensures smooth operations and
an adequate liquidity structure according to the criteria of S&P Global Ratings in the event of
a potential deterioration of the general economic situation, was already strengthened in the
second half of 2022 by obtaining additional credit lines, which were maintained in 2023. Risks
are managed through a diversified portfolio of credit lines, regular reviews of funding market
conditions, appropriate financial planning processes and careful investment planning.
18
EEX – European Energy Exchange
19
CEGH – Central European Gas Hub
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The current business and wider social environment in the EU and globally continues to be
shaped by the war in Ukraine, the situation in energy markets, different national approaches
to regulating fuel and energy commodity prices to mitigate the impact of the energy crisis on
people and businesses, and high inflation. Therefore, the Petrol Group continues to intensify
its activities and pay additional attention and care to the management of the Petrol Group’s
cash flows, especially in the area of deferred inflow planning, which represents an important
source of liquidity risk and, consequently, credit risk. We pay additional attention to internal
liquidity management within the Petrol Group companies.
The Petrol Group settles all its liabilities as they fall due. This is possible thanks to its relatively
low debt levels and strong liquidity position.
Interest rate risks
Interest rate risk is the risk of a negative impact of changes in market interest rates on the
Petrol Group’s operations. The Petrol Group’s exposure to interest rate risk arises from a
potential change in the EURIBOR reference rate. The Petrol Group regularly monitors its
exposure to interest rate risk. 84 percent of the Group’s non-current financial liabilities contain
a variable interest rate that is linked to the EURIBOR.
In 2023, we saw a notable change in the EURIBOR rates compared to the rates in 2022. This
can be attributed to various macroeconomic factors, including changes in central bank policies,
inflationary pressures and market dynamics. The average value of the EURIBOR in 2023 was
higher than the value at the end of 2022.
With EURIBOR rates still rising and uncertainties about future developments still present, we
are constantly assessing the implications and closely monitoring the situation on the funding
markets. By implementing appropriate risk mitigation strategies, we aim to effectively manage
interest rate exposure, ensure stability and optimise returns.
The Petrol Group also manages interest rate risk by entering into traditional derivative financial
instruments (interest rate swaps and forward interest rate agreements). The Petrol Group has
entered into derivative financial instruments for the majority (97 percent) of its long-term
variable-rate borrowings and drawdowns, thus hedging its interest rate position.
The risk of changes in interest rates on short-term funding sources is managed within the
framework of the Petrol Group’s liquidity risks and policies.
III. ENVIRONMENTAL AND CLIMATE RISKS
Identifying and assessing environmental and climate risks that can have a significant impact
on the Petrol Group’s value is part of responsible corporate governance and a duty we owe to
our stakeholders and investors. Environmental risks and their management are described in
section 9.2.1 Environment.
HIGHLIGHTS:
• The Petrol Group has been adapting to changes in the trade and energy activity by
emphasising the energy efficiency, the development of new energy commodities and
sustainable development.
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• Our strategic targets are in line with the trends and challenges, with an emphasis on a
comprehensive offer of energy solutions, digitalisation and the transition to renewable
sources.
• The high prices of energy commodities and the increased price volatility have strongly
impacted the economic and political environments, requiring us to apply a flexible approach
to managing risks, including price, volumetric and foreign exchange risks.
• Special attention is paid to cyberthreats because Petrol has been enhancing its resilience
to cyberattacks.
• The Petrol Group has stayed financially stable thanks to its sound management of
liquidity and credit risks; at the end of 2023, S&P Global Ratings reaffirmed its long-term
“BBB-“ and short-term “A-3” rating with a stable outlook.
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14. Operations by product groups
14.1 Fuels and petroleum products
In 2023, the Petrol Group generated revenue of EUR 3,419.1 million from the fuels and
petroleum products product group, a 22 percent decrease compared to the previous year. The
decrease is due to both lower fuel prices and lower sales volumes than in the previous year.
In 2023, the price regulation of certain petroleum products introduced by countries in response
to the high energy commodity prices and rising inflation was again the factor affecting the
Petrol Group’s operations in the field of petroleum product sales, which, however, was much
milder than the previous year.
In the Slovenian market, we sold 1,537.2 thousand tons of fuels and petroleum products in
2023, 12 percent less than in 2022. Retail fuel sales have dropped, with record sales in 2022
at a time of regulated fuel prices that were lower than in most neighbouring countries.
Wholesale fuel sales also declined, mainly due to lower sales to the Agency of the Republic of
Slovenia for Commodity Reserves.
In the SEE markets, we sold 1,357.8 thousand tonnes of fuels and petroleum products in
2023, 8 percent less than in 2022. Retail sales of fuels and petroleum products increased,
despite the temporary closure of 10 service stations in the Croatian market due to renovation
works, while wholesale sales fell, mainly due to the worsening economic situation and a drop
in industrial production.
In the EU markets, we sold 883.3 thousand tonnes of fuels and petroleum products in 2023,
up 3 percent compared to 2022. While we achieved significantly higher sales volumes than in
the same period last year in the first half of the year, sales volumes in the second half fell
significantly.
In 2023, the share of sales to EU markets in the structure of sales of fuels and petroleum
products increased compared to 2022, while the share of sales in Slovenia decreased. The
share of sales to SEE markets remained unchanged (2023: Slovenia 41 percent, SEE 36
percent and EU 23 percent; 2022: Slovenia 43 percent, SEE 36 percent and EU 21 percent).
Of the 3,778.4 thousand tonnes of fuels and derivatives sold, 47 percent were sold at retail
and 53 percent at wholesale.
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The Petrol Group's fuel and petroleum product sales in the 2020–2023 period
Service station network of the Petrol Group
At the end of 2023, the Petrol Group managed 594 service stations, of which 318 were in
Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 17 in Serbia and 15 in Montenegro.
Service station network of the Petrol Group in the 2020–2023 period
With 318 service stations, the Petrol Group holds a 58 percent share of the Slovenian market
in terms of the number of service stations. Its competitive advantage consists of having a
leading position in terms of transit routes, with a particular emphasis on motorway locations
and key urban and border locations. Petrol’s main competitor is MOL & INA, which has a 26
percent market share in terms of the number of service stations.
With the acquisition of Crodux Derivati Dva d.o.o. in 2021, we consolidated the brand’s
presence and position in the Croatian market. Our market share in terms of the number of
service stations was 23 percent at the end of 2023. INA remains our biggest competitor,
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followed by other companies such as Lukoil, Tifon and some smaller companies. In Bosnia
and Herzegovina, Petrol has a 4 percent market share in terms of the number of service
stations. Its major retail competitors include Nestro, Energopetrol, INA, Hifa Petrol and TI Oil.
In Serbia, the companies NIS, Lukoil, Knez Petrol and MOL and OMV have the largest retail
networks in terms of the number of service stations. In Montenegro, Petrol has 12 percent of
the market in terms of the number of service stations, its major competitors being Eko and
IINA.
Among the fuels and petroleum products, LPG sales are important for the Petrol Group, seeing
that the regional infrastructure, which is a basis for establishing a presence in the wider SE
Europe region, is well-established. The Petrol Group is engaged in both LPG supply and the
construction and management of the LPG distribution networks. LPG operations include gas
sales through networks and gas storage tanks, autogas sales and sales of gas in cylinders
through our service stations and wholesale.
In Slovenia, the Petrol Group operated four LPG supply concessions in 2023. In Croatia,
Petrol d.o.o. concluded agreements for the supply of LPG in the cities of Šibenik and Rijeka.
In both countries, we also supply LPG to customers via gas storage facilities, and autogas and
gas in cylinders to customers at service stations and in wholesale. We also supply autogas
and gas in cylinders to retail and wholesale customers in Montenegro. In 2023, we further
expanded our business through our own retail network and wholesale operations.
In Serbia, Petrol LPG d.o.o. Beograd continued to expand in the region by exporting LPG to
North Macedonia, Croatia, Montenegro, Bosnia and Herzegovina, and Kosovo. In the Serbian
market, we are temporarily unable to use the Smederevo terminal in a way that would allow us
to deliver gas by barge, which we own but have leased out until we obtain a concession to
carry out port activities. Until then, gas will be delivered to the terminal by rail tankers and road
tankers.
Sales to business customers and the public sector
The high-quality level of products and services, which is made possible by the widespread
network of sales representatives, appropriate technical and advisory support, and efficient
logistics, is an important competitive advantage. Our organisation allows us to be fast, efficient
and, above all, flexible in our operations, which was especially evident during the pandemic,
which has significantly changed the shopping habits of our business customers.
Efficient Supply Chains
Efficient supply chains are one of Petrol’s key competitive advantages. Their optimal
management is therefore one of the key factors for the success of its business. In the
procurement of fuels and petroleum products, we continued to ensure an uninterrupted supply
to all markets in which the Petrol Group operated in 2023, despite the tight market conditions,
taking into account the compliance of all purchased derivatives with the applicable European
standards and regulations, thus enabling the uninterrupted sale of fuels and petroleum
products in all markets through all sales channels.
HIGHLIGHT:
• 47 percent of fuels and petroleum products was sold in retail and 53 percent in wholesale.
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14.2 Merchandise and services
In 2023, the Petrol Group generated EUR 571.2 million in revenue from the sale of
merchandise and services, which is 10 percent more than in 2022.
In the Slovenian market in 2023, we generated EUR 393.6 million in revenue from the sale
of merchandise and services, which is 9 percent more than in 2022.
In the SEE markets, we generated EUR 177.6 million in revenue from the sale of merchandise
and services in 2023, a year-on-year increase of 12 percent.
We increased our revenue mainly in the tobacco and food segments, both in Slovenia and in
the markets of South-Eastern Europe. The only slight decrease was in the revenue from
carwashes.
Petrol service stations are becoming an increasingly popular destination for customers,
offering a wide range of products and services in addition to the standard range of fuels. Coffee
to Go, soft drinks and sandwiches stand out, including ice cream sales which increase during
the summer season. The range of food and hot drinks at our service stations is therefore
becoming an increasingly important part of our business and a decisive factor for customers
when choosing where to buy groceries, fuel and other products from our range.
We also attribute the increase in sales of merchandise and services to our investment in
expertise and the customisation of our range of products. The strategy of modernising service
stations and expanding the gastronomic offer also plays an important role. In 2023, we
revamped our range of bakery products, fresh sandwiches, desserts and juices. We expanded
our partnership with McDonald’s, which opened four new restaurants in Croatia and two in
Slovenia.
Revenue growth is also driven by attractive offers for Petrol Club members, who can enjoy
benefits such as discounted or even free purchases by collecting Golden Points.
Customers also have the option of purchasing goods via the Na poti app, which makes it easier
to pick up goods at a specific time, including the option of delivery to the vehicle.
Thanks to our management and the optimal execution of procurement and sales processes,
as well as the management of the selling space for all sales channels, we are in a position to
offer customers the products of their choice at the right time and in the right place.
HIGHLIGHT:
• Sales revenue from merchandise and services increased by 10 percent year-on-year in
both Slovenia and SEE markets.
Major activities in the sale of fuels, derivatives, merchandise and services
The 2023 financial year was marked by various factors that affected the performance of the
retail network. The crossing of the border with Croatia freed in 2023; August was marked by
flooding, which also led to a short-term closure of some service stations; and the year was
again marked by the regulation of margins on certain fuels.
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All these factors are reflected in fuel sales where the price policy led some customers to switch
to the Croatian market. The impact on sales of merchandise and services was slightly lower.
We adjusted our retail activities to the market conditions.
Since January 2023, agricultural beneficiaries who meet the requirements of the new excise
duty legislation have been able to buy fuel oil for their machinery at our service stations. It is
also fully compatible with diesel engines, both old and new, and can still be used for heating.
To prevent misuse, the new fuel oil is coloured red.
We introduced the new EuroWag B2B card in our sales network in Slovenia and additionally,
the Shell and AS 24 B2B cards in Croatia.
We strengthened the position of the sales network by adapting the business models that we
manage (bars and restaurants), digital solutions (digitisation of forms and upgrading of the
SmartSpotter Team process monitoring tool), training employees to provide tailored services
to customers and developing various process improvements.
We placed great emphasis on preparing the optimal number of staff per service station in order
to ensure the smooth operation of the service stations, thus guaranteeing the expected
operating result.
2023 was also marked by slightly more intensive training for service station staff. In Slovenia
and Croatia, in particular, all employees received targeted training with the aim of improving
the customer experience and increasing sales efficiency.
Slovenia successfully implemented a change in the structure of its service station management
models. A number of service stations moved from the CODO to the COCO model, mainly to
further facilitate the operation of the retail network and to address staffing challenges.
We focused on finding new technological and digital solutions to optimise business and
administrative processes, standardising and unifying processes and reporting systems across
markets, and controlling performance monitoring.
One of the major achievements was the introduction of digital forms in the Croatian market.
More than 80 different process documents and several additional processes were digitalised.
Their use will be expanded in 2024.
In order to ensure the quality of our operations, we also established revised standards at the
regional level in 2023, which will be intensively monitored in 2024 through the tools we have
put in place. In 2023, additional attention was paid to the cleanliness standards of service
stations, the tidiness of visitor toilets and the monitoring of cleaning services by business
partners.
Regular cooperation was established with all markets to ensure the effective implementation
of solutions and the transfer of best practices between markets. Through regular meetings, we
addressed and successfully resolved all sales, process, service delivery and cost management
challenges.
We also ensured cost optimisation by monitoring the costs of individual segments and
proposing improvements to optimise operations and performance, as well as the use of
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technological equipment. We focused on finding solutions for energy savings and established
a model and protocol for monitoring operating costs in all markets.
We are implementing project activities of a technological nature with the aim of reducing our
operating costs and our carbon footprint. We introduced a cost benchmarking system that
allows us to compare the performance of different service stations, making it easier to identify
opportunities for improvement. This approach was extended to all the markets in South-
Eastern Europe with the introduction of a single model for monitoring and analysing costs,
which has contributed to better risk management. Particular attention was paid to optimising
the cleaning of service stations and reducing energy consumption by introducing more detailed
instructions, strict monitoring and regular reminders.
In the context of improving the business performance of service stations, we carried out
activities in the area of productivity, proposed changes to service station operating models
(impersonal, combined, etc.) and sought partnerships to convert a proportion of service
stations to the DODO
20
model.
In the business-to-business segment, we place great emphasis on maintaining good
relationships and working successfully with our customers, which is particularly important at a
time when retail fuel prices or margins are being regulated. We are actively gaining new
customers and introducing new products and bundling options for existing customers. We
provide appropriate financial security. To improve business relationships and provide a
comprehensive service to all major customers, we introduced a system of key administrators
who are responsible for presenting and offering all our products to each individual customer.
We consider cooperation based on understanding, flexibility and helpfulness as a fundamental
principle. We are becoming a connecting link in the wider ecosystem of sales segments and
industry. With a comprehensive range of energy sources and solutions, we offer existing and
new customers support in the transition from traditional energy sources (fossil fuels) to cleaner,
environmentally and healthier, renewable energy sources. We tailor personalised offers to the
specific needs of each customer, using a state-of-the-art Customer Relationship Management
(CRM) tool that enables us to effectively build and maintain relationships.
We actively participate in public procurement for all the products in our portfolio.
Major investments and reconstructions in fuels and petroleum products and in commercial
goods and services are listed in Chapter 15. Investments.
HIGHLIGHTS:
• We are strengthening our customer-facing services through employee training and a new
“learning path” concept covering a wide range of retail skills.
• We are broadening our customer base with new products and bundles.
• In the transition to renewable energy, we offer personalised solutions using CRM tools to
build strong customer relationships.
20
DODO – Dealer Owned Dealer Operated
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14.3 Energy and Solutions
In 2023, the Petrol Group generated a revenue of EUR 2,985.5 million from the sales of energy
and solutions, down 34 percent on the previous year. The decrease is mainly due to the lower
electricity and natural gas prices on the spot and forward markets and lower trading volumes.
The Petrol Group follows its 2021-2025 strategy, which has set the path for energy transition
towards a green future. A large part of this transition is assumed by Energy and Solutions with
its products and team of experts.
14.3.1. Energy solutions
The energy solutions product generated sales revenue of EUR 51.3 million in 2023.
Systems for the energy and environmental management of buildings
The Energy Efficiency Directive has set out a number of measures in the field of energy
efficiency, including the leading role in the energy renovation of public sector buildings, which
is to serve as an example for other stakeholders. In this context, the Directive requires that,
from 1 January 2014, three percent of the total floor area of buildings owned and occupied by
public sector entities be renovated each year. The Directive was transposed into Slovenian
law by the Energy Act – EZ-1.
Energy performance contracting is also one of the key measures under the Energy Efficiency
Action Plan (AN-URE 2020) and the implementation of the Operational Programme for the
Implementation of the EU Cohesion Policy in the 2014-2020 period . That way, private capital
is included to a greater extent in the financing of energy efficiency measures, multiplying public
investments and resulting in higher energy savings per unit of investment incentive.
In Slovenia, the Petrol Group carries out energy performance contracting services for
buildings in the narrow and wider public sector. Energy performance contracting is defined as
a contractual reduction of energy costs. It is more than just a financing method. It is a contract
model that, in addition to designing and implementing (construction and technological) actions,
also covers the financing, management and supervision of operation, servicing and
maintenance, the elimination of defects, and the encouragement of consumers towards
efficient energy use. Energy performance contracting is a method for the contract-based
reduction of energy costs in which the operator provides a range of measures necessary for
the efficient use of energy on the client’s premises, with the client undertaking to pay the
agreed amount for these services (reduced energy consumption and the provision of comfort),
taking into account the contractual penalties, if any, if the agreed results or savings are not
achieved (no service – no payment).
In 2023, we and our partner completed three major projects:
• comprehensive and technological energy renovation of public buildings in the Municipality
of Ig (six buildings covering an area of 7.6 thousand m
2
);
• comprehensive and technological energy renovation of public buildings in the Municipality
of Ruše (six buildings covering an area of 11 thousand m
2
);
• comprehensive and technological energy renovation of public buildings in the City
Municipality of Ljubljana – EOL 4.1 (five buildings covering an area of 21 thousand m
2
);
In 2023, we carried out the energy renovation and assumed the management of 17 buildings
with a total area of 39.6 thousand m
2
.
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In 2023, we and our partner launched another project (EOL 4.2), which will be completed in
2024.
In 2023 we implemented energy performance contracting services at 382 buildings with a total
area of 1.1 million m
2
, which is comparable to the floor area of approximately 95 Petrol office
buildings in Ljubljana.
Water supply systems DISNet-WS (Digital Intelligent Smart Networks – Water Supply)
The digital transformation, which has become a reality here and worldwide, is changing the
structure of national economies, affecting macroeconomic categories and radically changing
the conditions for the management and operation of companies. The key challenge for any
decision-maker is to have all the information available at all times to make the right decision.
The need for a new management information concept follows from this challenge, which
enables a comprehensive overview of the operation of infrastructure (water supply) systems
of the urban water cycle and rapid, proactive action.
The digitalised management of the water supply system, together with the establishment
of performance and efficiency indicators, helps to improve operational energy and
environmental performance, the effectiveness of managing non-revenue water (NRW) and
water losses. The improved efficiency of the water supply system ensures greater operational
safety and reduces the risks of ensuring the conformity and wholesomeness of drinking water
channelled from the water source to the customer’s point of consumption. Improved processes
of providing drinking water and their management contribute to decreasing greenhouse gas
emissions while also supporting adaptation to the effects of climate change (e.g. by reducing
water losses, integrating low-energy solutions and water reuse).
The challenges faced by critical infrastructure – water supply system operators in the new
situation indicate an increasing need for the digitalisation of the operation and digital
transformation of the management of water supply systems. The processes carried out by the
DISNet-WS Group for our service users have proven to be an effective measure and are
recognised by critical infrastructure managers as a key part of their management process.
In 2023, we continued our work with our strategic partners: The public company Vodovod
Kanalizacija Snaga Ljubljana and Komunala Kranj, and in one of the largest infrastructure
digitalisation projects in the region with a focus on reducing water losses, Vodovod Slavonski
Brod, which is among the ten largest in Croatia.
Wastewater treatment
In modern times, a clean environment is becoming increasingly important and wastewater,
which can significantly pollute the environment when left untreated, has a major impact. In the
Petrol Group, we are aware of the significance of the technology used in the treatment of both
municipal and industrial wastewater, which has to be environmentally friendly and cost-
effective. We provide wastewater treatment services both for our own needs and as a
commercial activity.
The annual operational monitoring performed by authorised institutions indicates that all
machinery in the Petrol Group operated in compliance with the legislation and achieved the
required effects.
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In 2023, the Petrol Group operated four concessions for the public utility service of municipal
wastewater treatment. The capacity of the treatment plant in Murska Sobota is 42,000
population equivalents (PE), in Sežana 6,000 PE, in Ig 5,000 PE and in Mežica 4,200 PE. We
also operated industrial wastewater treatment plants in the companies Papirnica Vevče
d.o.o. and Paloma d.d. As an important member of the company Aquasystems d.o.o., Petrol
d.d., Ljubljana is also involved in the treatment of municipal wastewater in the Municipality of
Maribor, the capacity of which is 190,000 PE. We also operate and maintain more than 50
small municipal wastewater treatment plants, ranging in size from 5 to 800 PE.
After obtaining an environmental permit, we carried out a trial run of the Ihan Sludge Dryer.
The dryer has an annual drying capacity of 8,000 tons of wet sludge. With its relaunch, we will
be less dependent on waste collectors and other factors on the waste market and increase
sludge treatment in Slovenia, thus reducing exports.
In 2023, a total of over 3.2 million m
3
of municipal wastewater was treated at four municipal
wastewater treatment plants, and 1.5 million m
3
of industrial wastewater was treated at the
industrial wastewater treatment plants. At Petrol’s service stations in Slovenia and Croatia, we
operated more than 50 small treatment plants and pumping stations.
District energy systems DISNet-DH (Digital Intelligent Smart Networks – District
Heating)
Heat generation is one of the largest consumers of energy and an area where energy efficiency
is a key objective. The main guidelines for the development of smart district heating systems
are: reducing energy consumption and cost-efficiency, and measures to increase renewable
energy sources through the simultaneous digitisation of the system. Through forecasting and
mathematical modelling, we can determine the needs of district heating systems, providing a
comprehensive and intuitive overview of the situation at all points in the network and the impact
of system changes on the primary energy source. Through digitalisation, we ensure that heat
losses are reduced and system operating costs are minimised, while maximising efficiency,
supporting decarbonisation and ensuring network optimisation.
In the area of district energy, we implement projects for the reconstruction and modernisation
of district heating systems, the automation of heat substations, the conversion of boiler houses,
and technical and economic optimisation by reducing primary energy consumption, reducing
heat losses and reducing system operating costs with the maximum efficiency, supporting
decarbonisation, and ensuring the optimisation of network operation.
With smart grids (Digital Intelligent Smart Systems), we are developing district heating systems
as part of the smart city infrastructure – smart heat generation, distribution and consumption.
We optimise measurable data with advanced real-time analytics and software tools.
In December 2023, we added the DISNet-DH product to Petrol’s IoT platform, which enables
actively controlling the key indicators of operations and faster response to system anomalies
through the alarm system.
We work to help our subscribers achieve the best possible results in terms of the cost of the
heat produced, environmental protection and unparalleled control over the operation of the
system.
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District heating systems are operated and controlled automatically:
• a complete and immediate overview of the system;
• better knowledge of the network;
• instant reporting based on real data;
• providing expert input for revisions to development plans and development strategies;
• real-time monitoring and control of the system during operation.
District heating systems also make business decisions easier and faster.
DISNet-DH services contribute to boosting energy and environmental performance in 5
countries in the region (Slovenia, Austria, Croatia, Bosnia and Herzegovina and Serbia). In
2023, we have further strengthened our cooperation with major district energy systems
(Ljubljana, Maribor, Zagreb, Osijek, Sisak, Belgrade, etc.).
In 2023, we took over the management and supply of thermal energy to 10 public buildings in
the municipality of Kula, Serbia. The project is implemented through a public-private
partnership.
Efficient lighting systems
The entire region in which the Petrol Group is present is becoming increasingly aware of the
importance of the energy efficiency and light pollution of public lighting systems. Slovenia is
one of the countries that have begun solving this problem through state-level regulation. In
2007, the Government of the Republic of Slovenia adopted the Decree on limit values due to
the light pollution of the environment. Binding for lighting operators, the Decree prescribes the
method of lighting and the maximum consumption of electricity for public lighting systems per
resident.
Similar guidelines are also followed by other countries in the region. In Croatia, the Act on
Protection From Light Pollution is in force, while Serbia has in place: the Energy Act, the
Efficient Energy Consumption Act and the Rules on Energy Performance Contracting laying
down measures for improving energy efficiency in the public sector.
Legislative frameworks directly affect the potential for or interest of local communities in the
energy and eco-efficient renovation of public lighting systems. Petrol is running public-private
partnership and energy performance contracting projects with the aim of reducing energy
consumption, greenhouse gas emissions and light pollution, as well as to provide traffic and
general safety and lighting comfort for the users of public spaces and public facilities in an
energy-efficient way. By integrating systems in IoT platform, through the digitalisation of
energy accounting, we monitor and analyse the costs of public lighting systems. Through the
active management of systems, we generate further savings in terms of electricity and the
operational costs of public lighting systems. Modern energy-efficient public lighting systems
represent the foundation for the digitalisation of lighting infrastructure, enabling synergies and
the further development of services in the context of smart local communities.
In 2023, we implemented four projects in Croatia in the field of energy-efficient public lighting
under the energy contracting or public-private partnership model: Molve, Trogir, Oriovac and
Jastrebarsko. We provided utility and energy management for all existing public lighting
projects in all our markets. All existing projects regularly meet their contractual obligations and
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achieve or exceed the contractually guaranteed electricity savings. This will further strengthen
Petrol’s position in the region of SE Europe.
We are also continuing to replace inefficient lighting in public buildings and in dedicated sports
facilities through energy and environmental management projects.
IoT platform
Petrol has been developing its IoT platform which will enable it to address the digital and green
transformation even more efficiently. The technological upgrade of the IoT platform is in
progress and will ensure Petrol and our customers with:
• More efficient monitoring of the functioning of various systems in one place,
• Faster response to the changed situation in systems,
• Analysing and control of the functioning of devices and systems,
• Improved operational efficiency with simultaneous increase of service quality,
• Reduced energy use and costs,
• Implementation of process and device management based on advanced analytical models.
The technological upgrade of the IoT platform is expected to be completed by the end of 2024.
Industrial solutions
In the area of industrial solutions, we manage two closed economic areas located in Ravne
and Štore, a virtual power plant integrated into the tertiary electricity supply and a boiler room
in Trebnje.
In addition to managing solutions for steam and heat, natural gas, industrial gases and
compressed air, water, waste heat, cooling systems and industrial wastewater treatment
plants, as well as virtual power plants, we pay special attention to developing and providing
integrated energy solutions for all our customers in these areas.
In 2023, our main focus was on finding solutions to provide renewable energy sources, mainly
in the area of solar power plants and electricity storage. Several studies and proposals have
been prepared but have not yet been implemented.
Energy solutions for households and businesses
In the field of energy solutions for business customers, we develop comprehensive solutions
for efficient energy use, the increased use of renewable energy sources and efficient systems
management. We help our customers optimise their production processes, reduce costs and
meet their commitments to reduce their carbon footprint. With integrated energy solutions, we
are their partner in the sustainable transition and energy transformation.
Our integrated energy solutions for solar power generation and storage, heating and cooling,
building energy retrofits, efficient lighting, energy self-sufficiency and even electric vehicle
fleets deliver immediate savings to our customers. We also offer a range of financial models
to implement these solutions, allowing customers to invest their capital in their core business
while embarking on a green transformation.
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Uncertainty in the energy market has made many companies more aware of the importance
of energy security and modern energy solutions. Solar power plants were the leading solution
in 2023. In the segment of solar power plant installation for business customers, Petrol
is steadily increasing its market share, while introducing advanced technological solutions
that also enable customers to improve their competitiveness. This puts Petrol on track to meet
the energy transition targets set out in the Petrol Strategy 2021–2025.
In 2023, we completed a number of solar power plant projects for business customers with a
total rated capacity of more than 10 MW. This has enabled our customers to generate their
own electricity, reducing their environmental footprint, improving the reliability of their energy
supply, optimising their costs and taking concrete steps towards the energy transition.
In the area of energy solutions for household customers, we mainly focus on offering heat
pumps and solar power plants that can significantly reduce the cost of energy consumption in
residential buildings and help improve the carbon footprint. Our solar power systems include
both conventional and hybrid solar power plants with integrated energy storage. In 2023, we
connected more than 60 percent more solar power plants and more than 120 percent more
heat pumps than in the same period last year.
In addition to sales, we focused on optimising and digitalising processes and in 2023 we
successfully implemented digital records of potential solar power plant visits and successfully
launched an online tool for preparing an informative one-step offer.
14.3.2. District heating
The heating systems segment generated sales revenue of EUR 36.6 million in 2023.
District heat supply consists of heating systems where heat is generated in one or more boiler
rooms and distributed to end-customers via a hot-water network. Heat distribution systems are
now considered to be one of the most reliable and, in terms of the environment and costs,
acceptable systems for supplying heat to end-customers. Buildings supplied via a district
heating system do not require their own heating source, with the system itself providing the
following supply advantages: greater energy efficiency, environmental protection, easy
operation and maintenance, reliability, comfort and convenience, lower investment costs and
lower operating costs and investment maintenance costs. Climate change legislation
encourages the connection to district heating. On the other hand, higher outdoor temperatures
and energy efficiency measures are reducing heat consumption. The Petrol Group ranks third
in the Slovenian market among the 50 heat distributors in terms of the market share of
distributed heat sales.
Heat generation and distribution is a regulated activity under the Heat Supply from Distribution
Systems Act (ZOTDS), regardless of the primary energy input. According to this Act, heat
distributors must ensure that at least 50 percent of heat is produced from renewable energy
sources (biomass, geothermal energy, etc.) or that a minimum of 75 percent is produced from
the high-efficiency cogeneration of heat and electricity, or 50 percent as a combination of heat
from these two sources. The sales prices for heat are also regulated. The Energy Agency of
the Republic of Slovenia monitors heat generation and distribution, as well as heat prices.
Based on the record natural gas prices in 2022, district heating systems were subject to several
different regulations in 2023. In the second half of 2022, the Decree on setting gas prices from
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the system was adopted for calculating the variable part of the heat price for all households in
Slovenia. Despite this measure, the heat prices were very high, so the Slovenian government
capped the final heat price in January 2023. The difference between the market price and the
regulated price was reimbursed by Borzen.
In the field of district heating, the Decree on the determination of compensation for electricity
suppliers had a significant negative impact on the operation of district heating systems by
reducing the already agreed purchase prices for electricity generated by CHP plants
21
without
the foreseen compensation.
At the end of December 2023, the Petrol Group operated 37 district heating systems, of
which 18 were organised as an optional public utility service (a concession) or concession
agreements for their management were signed with municipalities. 16 district heating systems
are proprietary and 3 are market distribution systems.
In 2023, the Hrastnik Heating Plant completed an extensive reconstruction, which included the
replacement of cogeneration with natural gas, the replacement of two natural gas boilers with
a total capacity of 7 MW and the installation of a new biomass or pellet boiler with a capacity
of 1 MW. The reconstruction increased the reliability of heat generation and distribution,
reduced greenhouse gas emissions and met the legal requirement for district heating systems
to be energy efficient. Using a variety of primary energy sources also ensures that the price of
heat is competitive, which is important in an unpredictable energy market. We also take special
care to ensure that all our customers are treated in a non-discriminatory way when we
distribute heat.
In 2023, the Petrol Group sold 127.6 thousand MWh of heat in the heating systems segment,
which is 9 percent less than in 2022, due to the warmer temperatures during the heating
season and savings measures taken by customers as a result of the high heat and natural gas
prices. In addition, we generated 15.8 thousand MWh of thermal energy in the context of
energy solutions.
14.3.3. Distribution of natural gas
In natural gas distribution, the Petrol Group generated sales revenue of EUR 16.5 million in
2023.
At the end of 2023, the Petrol Group operated 31 natural gas supply concessions in Slovenia,
and in Serbia we supply natural gas to the municipalities of Bačka Topola and Pećinci, as well
as three municipalities in Belgrade. Since the end of 2018, the Petrol Group has also been
present on the Croatian market, where Zagorski metalac d.o.o. distributes natural gas in
certain municipalities in the areas of Krapinje-Zagorje and Zagreb County.
In the coming months, activities in all the markets have been, and will continue to be, focused
mainly on the completion of small infrastructure projects and maintenance to optimise costs.
The high cost of energy and the resulting reduction in purchasing power have also led to a
reduction in gas consumption and to customers switching to cheaper energy commodities,
which has also resulted in the disconnection of smaller customers.
21
CHP – Cogeneration of heat and power
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In September, we successfully connected the Vransko concession to the gas transmission
network and individual customers are now being connected.
Our distribution network in Carinthia was severely affected by the floods in August 2023 but
we were able to mitigate the impact significantly by responding quickly and efficiently. A
temporary alternative supply of liquefied natural gas was set up for customers whose supply
was interrupted for a longer period due to damage to the gas distribution network.
In 2023, the Petrol Group distributed 1,188.8 thousand MWh of natural gas, 3 percent less
than in 2022. The lower distribution was due to the tight energy situation and higher average
temperatures during the heating season. The lower distribution in Slovenia was also influenced
by the Slovenian government’s measure to refund part of the RES contribution to end-
customers in the event of a permanent reduction in gas consumption in the winter period of
2022/2023 of at least 15 percent compared to their average consumption in the same period
of the previous five years.
HIGHLIGHTS:
• In the field of energy contracting, we completed three major projects of comprehensive and
technological energy renovation of public buildings: in the municipalities of IG and Ruše
and the City of Ljubljana.
• In August 2023, the Carinthian distribution system was severely affected by the floods, but
we were able to mitigate the impact significantly by responding quickly and efficiently.
14.3.4 Energy commodities
The sale of energy commodities in the Petrol Group generated sales revenue of EUR 2,858.3
million in 2023.
Natural gas sales and trading
After a landmark year for the natural gas market in 2022, characterised by extreme volatility
and major challenges, including record prices and security of supply concerns, the situation
gradually started to calm down at the beginning of 2023. Across Europe, activities were
stepped up and measures were taken to ensure a reliable supply of natural gas.
The focus was on the diversification of supply sources, in particular the development of LNG
supplies. As a result, storage capacities were intensively filled to enable EU Member States to
cope with possible cold spells in February and March 2023 and to ensure an adequate level
of security of supply for the 2023-2024 winter season, despite the reduction of natural gas
supplies from Russia.
There was also unanimous support for voluntary reductions in demand for natural gas, which
would in particular help fill storage capacities and ensure a sufficient supply and lower energy
prices. An appeal was also made to all gas consumers to use alternative energy sources during
periods of reduced security of supply. As a result, business customers who were able to do
so, switched to LPG and extra-light fuel oil.
The government’s measures to limit the impact of energy commodity price increases in 2022
were appropriately continued and supplemented in 2023, as described in more detail in
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Chapter 10 Analysis of the Petrol Group’s performance in 2023 in the context of price
regulation.
On 12 July 2022, the Energy Agency, as the competent authority for ensuring the security of
the natural gas supply, declared an Early Warning Level on the basis of the Gas Supply Act
and the Legal Act on the emergency plan for natural gas supply.
The Agency urged natural gas consumers to use energy commodities rationally and informed
industrial consumers that in a situation requiring a declaration of a higher level of crisis, supply
may be interrupted or they may be required to switch to alternative energy sources. Suppliers
and industrial customers were invited to regularly monitor developments and the situation on
the natural gas market and to consider alternative options that could help reduce consumption
in the event of supply disruptions.
The Early Warning Level remained in place in 2023. The Agency monitors the security of the
natural gas supply in Slovenia and other countries and will promptly inform the stakeholders
and the public about any changes.
Market share of natural gas suppliers to end-customers on the retail market in Slovenia
Source: Energy Agency
At the end of December 2023, the Petrol Group had 61 thousand natural gas customers
(excluding Geoplin Group customers). Sales to end-customers in 2023 amounted to 11.5 TWh
of natural gas, a 2 percent decrease compared to 2022. The volumes sold in trading in 2023
were 5.1 TWh.
HIGHLIGHT:
• Activities and actions in 2023 were focused on ensuring the security of the natural gas
supply, with an emphasis on source diversification.
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Electricity sales and trading
The year 2023 was marked by a number of challenges and emergencies in the electricity
supply in Slovenia, to which the electricity suppliers, together with the rest of the market
participants, had to adapt quickly and efficiently. As the price of electricity for the vast majority
of customers is set at the time of contract conclusion, before delivery, the price for delivery in
2023 was set during the energy crisis in 2021 and 2022, when energy commodity prices
soared. The Government of the Republic of Slovenia thus followed the European guidelines
on permissible aid and introduced electricity price regulation for practically all customer
segments for 2023, mainly by capping maximum retail prices.
The Petrol Group had to adapt by drawing up new supply contracts tailored to each regulated
segment within a very short timeframe. We also adjusted our billing accordingly to ensure the
smooth implementation of the Decree. As a result of the government’s price regulation,
electricity suppliers sold electricity below cost, resulting in a significant operating loss. Through
the government’s Damage Compensation Mechanism, we successfully managed a complex
process and successfully obtained reimbursement for all claims submitted by the end of 2023.
In 2023, Slovenia was hit by widespread floods, which caused significant material damage.
The Petrol Group joined the government’s initiative and provided electricity at a symbolic price
of EUR 1/MWh from August to December 2023 to all its electricity customers who were on the
list of those affected by the floods. As a socially responsible company, we contributed to the
reconstruction efforts after the floods.
The end of 2023 was mainly characterised by a calming of the market conditions and
preparations for the new regulatory changes that will come into force in 2024. These include
the end of the “net-metering” scheme for self-sufficient customers and the new Network
Charges Act, which comes into force on 1 July 2024. The Petrol Group is actively preparing
for the implementation of the new Network Charges Act, which will encourage customers to
actively adjust their consumption to support efficient network regulation. We will also adapt our
products and services to the new Network Charges Act to maximise the synergy effect for all
parties (customer, network and supplier).
Many existing and new business customers recognised us as a reliable long-term partner for
electricity supply in 2023 – both in Slovenia and Croatia. Petrol d.d., Ljubljana was successful
in the Borzen auction for the second year in a row and will therefore remain the Eko Group’s
purchaser of renewable energy in 2024. In addition to the supply of electricity, the Petrol Group
is active in the purchase of electricity, self-sufficiency products, the management of generation
units and system services for the regulation of the electricity system.
The Petrol Group is also active in trading on the European wholesale electricity market, where
we add value by using our in-house expertise and trading infrastructure. In 2023, we therefore
traded electricity with different delivery times in the markets where we are present. We
significantly increased our trading activities in the SEE markets. In particular, we increased our
trading volumes in Bulgaria, Serbia, North Macedonia and Bosnia and Herzegovina. In 2023,
we participated for the first time in an auction for virtual electricity imports to Italy and also
executed our first physical transactions on the Italian market.
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Market share of electricity suppliers to end-customers on the Slovenian market
Source: Energy Agency
Sales to end-customers in 2023 amounted to 3.1 TWh, an 8 percent decrease compared to
2022. The volumes sold in trading in 2023 were 7.8 TWh and we sold an additional 1.9 TWh
of electricity as part of our retail portfolio management.
HIGHLIGHT:
• The year 2023 brought a number of challenges and emergencies to the electricity supply
in Slovenia, to which suppliers, including Petrol, had to adapt quickly and efficiently.
14.3.5. Renewable electricity generation
In 2023, the Petrol Group generated sales revenue of EUR 17.3 million from electricity
generation.
Globally, renewable energy generation is undoubtedly one of the key areas for sustainable
development and an important pillar of the Petrol Group’s development into a modern
energy company. Developments in the energy markets are an important indicator of the
importance of having our own long-term, secure sources of energy generation. At the same
time, investments in renewable electricity generation make a tangible contribution to
strengthening the self-sufficiency and energy transition of households, the economy and the
country.
The Petrol Group manages two wind power plants in
Croatia (Glunča and Ljubač), which generated 128.8 GWh
of electricity in 2023. We are also in the final stages of
developing a third wind power plant (Dazlina).
We operate six small hydropower plants in Bosnia and
Herzegovina and Serbia, which together generated 33.0
Petrol Archive thousand MWh of electricity in 2023.
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The construction of the Suknovci, Vrbnik and Pliskovo solar power plants in Croatia was
completed in 2023 and is now in the grid connection phase. The 22 MW power plants
surrounding our Ljubač wind farm will generate 29 thousand MWh of electricity per year. In
Slovenia, in addition to the 30 existing small solar power plants under the Petrol Green project,
we installed solar power plants on 85 of our own facilities in 2023. The first power plants have
already been connected to the grid, with an additional installed capacity of 4.3 MW. The Petrol
Green project plans to install a further 60 solar power plants on its own facilities in Slovenia by
2024 and to expand the project to Croatia, Serbia and Bosnia and Herzegovina.
Solar park in Croatia Petrol Green, solar power plant at service station
Petrol Archive Petrol Archive
The Petrol Group is accelerating the planning and development of new renewable energy
projects in both Slovenia and the wider region. In addition to providing green energy, which will
be increasingly in demand, we are harnessing the potential of natural energy resources in an
economically efficient and environmentally friendly way by managing, building and developing
RES power plants.
In 2023, the Petrol Group produced a total of 164.4 thousand MWh of electricity in the area of
energy commodity production, which is 1 percent less than in 2022. The Petrol Group also
produces electricity as part of Energy Solutions and Heating Systems and for own needs (the
Petrol Green project).
HIGHLIGHTS
• In 2023, we completed the construction of the Suknovci, Vrbnik and Pliskovo solar power
plants, which are now in the grid connection phase.
• As part of the Petrol Green project, we installed solar panels on 85 of our own facilities and
are preparing everything necessary to expand the project to Croatia, Serbia and Bosnia
and Herzegovina.
14.3.6. Mobility
The sale of mobility products and services in the Petrol Group generated sales revenue of
EUR 5.5 million EUR in 2023.
The development of charging infrastructure for electric vehicles and the development of new
e-mobility solutions and services are an important pillar of Petrol’s sustainable and innovative
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business. This establishes Petrol as a leading company in promoting sustainable solutions and
raising public awareness. Our commitment to sustainability is not only a commitment to
achieving the climate goals but also to creating a better quality of life for all of us and for future
generations.
The visibility of the Petrol charging network is increasing among both domestic users and
foreign providers of charging services, who provide their users with charging on the Petrol
network in Slovenia and Croatia.
In 2023, the Petrol Group accelerated the development of its e-mobility network and services
by:
• realising the transfer of 3.8 thousand MWh of electricity for charging electric vehicles;
• enabling around 20 million kilometres to be driven electrically;
• recording 9,720 new users;
• expanding Petrol’s charging infrastructure by 86 new charging points and 152 charging
bays;
• increasing the number of registered charging service providers on the Petrol network to 48
partners through cooperation and networking on an international platform.
We are closing 2023 with 495 e-charging points in Petrol’s charging network and the
finalisation of the charging fleet at Petrol’s state-of-the-art Barje service station on Ljubljana’s
southern ring road.
Charging infrastructure
The development of charging infrastructure is based on key partnerships with the largest
energy companies, municipalities and transport companies in Central and South-Eastern
Europe in the framework of three projects co-financed by the European Commission.
In 2023, we completed the final report for the NEXT-E project and submitted it to the European
Commission. The report was fully approved, securing a 100% subsidy under the tender
conditions. This completes the project and fulfils all the obligations to the European
Commission.
In the framework of the URBAN-E project, we held an online event in early 2023 to present
the project results to key stakeholders in the field of urban e-mobility, namely representatives
from the European Commission’s Directorate-General for Mobility and Transport, the
European Climate, Infrastructure and Environment Executive Agency (CINEA), Eurocities, the
Ministries of Infrastructure of Slovenia and Slovakia, energy companies and business partners,
and to start preparations for the final review of the project for 2022.
In June, Petrol’s largest charging park was publicly opened at Ljubljana’s main railway station.
The new charging park is the first Petrol and Slovenian Railways partnership site in Slovenia
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under the URBAN-E project and offers electric
vehicle users 2 fast charging points with a charging
capacity of 50 KW and 5 charging points with a
charging capacity of 22 KW, as well as the
possibility of charging 14 vehicles at the same time.
The charging park is ready for further expansion
with an additional 6 charging points, i.e. 12
charging bays or parking bays. With this,
passengers can access and combine different
types of sustainable transport in one place.
In Zagreb, we completed and put into public
operation the last 21 charging points from the
URBAN-E project at 11 locations.
Opening of a charging park in the context of
the Urban-E project
Petrol Archive
As part of the MULTI-E project, we continue to expand our presence on the Slovenian and
Croatian markets with new types of charging points in Slovenia and Croatia. In 2023, we put
41 charging bays into public operation, installed the first 3 mini ultra-fast charging points in
Slovenia and reinforced the ultra-fast charging bays at the Kozina service station. We also
installed charging bays in parking houses (Šentpeter and Meksiko), at the shopping centre in
Supernova Šiška and Mercator Koper, and in front of the Petrol office building in Zagreb. 6
charging bays at Ljubljana’s main railway station were also put into operation.
In addition to our own investments, we expanded our charging infrastructure network by
installing 96 charging points for private and business users in both Slovenia and Croatia. In
addition to the slower 11-22 KW charging points, we also delivered 3 faster 50 KW charging
points, one 100 KW charging point and an additional 22 KW charging point in Croatia. At the
end of February, we installed and commissioned an ultra-fast charging point at Marprom to
charge the buses of the Municipality of Maribor. We were also successful in a tender from the
Faculty of Computer Science and Informatics, where we supplied and installed 4 charging
points in 2023. In 2023, we carried out several sales projects to private and business users,
totalling 96 charging points.
Charging points
Petrol Archive
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Mobility services
In the area of mobility services, we develop services related to new concepts and forms of
mobility. We offer the market fleet management services and provide mobility through long-
term vehicle leasing and short-term vehicle rental. In addition, we aim to be a partner to
companies and municipalities in the green transition and in achieving their sustainability goals
through fleet electrification.
Companies that are committed to operating more sustainably or optimising their business
efficiency are increasingly turning to alternative forms of mobility. We offer integrated mobility
solutions in fleet management, long-term corporate leasing, short-term vehicle rental, door-to-
door services and fleet management, analysis and optimisation. Services are also
complemented by charging stations and charging solutions.
In the area of long-term leasing, we entered into a partnership with DARS d.d. in 2023, through
which we are already actively working on the provision of electric vehicles. We are also
continuing our “Vehicle as a Service” project, which enables municipalities and businesses to
electrify their fleets. We also started to offer long-term leases of used vehicles from our own
rent-a-car fleet. This means that vehicles can be delivered to customers immediately, which is
definitely a competitive advantage at a time when waiting times for vehicles are long.
We also continue our successful cooperation with various companies and public institutions.
We are committed to providing our partners with the most appropriate mobility they need at
any given time.
An important step forward is the increased expansion into international markets through
intermediaries (so-called “brokers”). On the domestic market, we are focusing more on B2B
customers, with whom we are entering into long-term partnerships. At the beginning of the
year, we also carried out a pilot project for car sharing within the Petrol fleet at the Stegne site
in Ljubljana, to determine the benefits and possibilities of introducing such a system for fleets.
In 2023, we entered into new partnerships with several companies in the field of short-term
vehicle rentals. Among others, we actively cooperate with the Ministry of Defence of the
Republic of Slovenia, where we are also the first provider of short-term vehicle rentals.
We registered the company Atet Mobility Zagreb in Croatia and are entering the Croatian
market with mobility services.
In the area of the digitalisation of fleet management and related mobility services, we
successfully secured funding for the development of the FMG
22
platform, which will be
launched in early 2024. A digitalised and integrated solution is essential for the strategic
expansion of fleet management activities in domestic and foreign markets and for the activation
of new advanced mobility services further down the road.
As a leading company in the field of electromobility and e-mobility services, Petrol’s presence
is also particularly important in establishing a corporate image that is sustainable and focused
on reducing its carbon footprint. This is a major and important challenge for a company
primarily engaged in the sale of petroleum products.
22
FMG – Fleet Management
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HIGHLIGHTS:
• We operate 495 e-charging points.
• We are also entering the Croatian market with mobility services by registering Atet Mobility
Zagreb d.o.o.
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15. Investments
In 2023, we earmarked the majority of our funds for the construction of replacement motorway
service stations in Barje North and Barje South at Petrol d.d., Ljubljana, and in the renovation
and construction of replacement service stations at Petrol d.o.o. In accordance with the
adopted strategy of the Petrol Group until 2025, the bulk of the investment budget was
allocated to the energy transformation, specifically to expanding operations in energy and
solutions in Slovenia and the markets of SE Europe. Investments were also made in the
expansion of sales and the modernisation and maintenance of logistics capacities in Slovenia.
In 2023, net investments in property, plant and equipment, intangible assets and long-term
investments stood at EUR 82.9 million, up 39 percent compared to 2022, when the net
investments amounted to EUR 59.8 million, and on a par with the plan. Energy transition
accounted for 31 percent of investments in 2023.
Structure of invested assets
Fuels and petroleum products, merchandise and services – retail
In Slovenia, a larger share of the realised investments was dedicated to the replacement
construction of the Barje North and Barje South motorway service stations. We completed the
installation of new digital fuel price displays at all service stations. At 30 service stations, we
installed central filling stations to enable tanker trucks to empty into underground tanks, thus
complying with the legal requirements. The tanks and pumps at two service stations were
replaced and the technology was upgraded. Throughout the year, we carried out investment
maintenance and obtained documentation for investments to be made in the coming years. In
Croatia, we completely renovated 7 service stations: Umag, Pula, Zadar, Labin, Split Solinska,
Dugopolje North and Dugopolje South, carried out three replacement constructions of the
Desinec Motorway – North, Helena Motorway – East and Helena Motorway – West service
stations and the new construction of the Dragalić Motorway – North service station. In Serbia,
we renovated our Vetrnik service station. We also carried out the capital maintenance of
service stations in other markets where the Petrol Group operates.
Fuels and petroleum products – logistics
We carried out projects required by law and risk mitigation projects at all Petrol storage
facilities. The second phase of the reconstruction of the rail tanker transfer station at the Zalog
petroleum products warehouse was completed. At the petroleum products warehouse in
Lendava, investments were made to increase the turnover of biofuels and to ensure further
fuel distribution. At the Sermin petroleum products warehouse, documentation was prepared
to obtain a building permit for culverts under an access road, the floor of a tank was
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rehabilitated and a building permit was obtained for a new tank. Other minor
investments and capital maintenance were carried out at all storage facilities.
The Digitisation of the Oil&Gas E2E supply chain project, which was implemented in 2023,
continues in 2024. The project is aimed at optimising logistics and represents a vital foundation
for the next 20 years of the Petrol Group’s business. The project will digitise and upgrade the
Company’s key core processes, from the procurement of petroleum products to their sale. A
particular focus will be on efficient and digitised logistics. A project to develop and implement
a logistics platform to automate and optimise energy commodity supply chain processes was
also carried out in 2023 and will continue in 2024.
New and renovated service stations
Petrol Archive
Energy transition and digitisation
In the area of renewable electricity generation, we completed the construction of the
Suknovci, Vrbnik and Pliskovo solar power plants in Croatia in 2023. The solar power plants
are being connected to the grid. The 22 MW power plants surrounding our Ljubač wind farm
will generate 29 thousand MWh of electricity per year. In Slovenia, in addition to the 30 existing
small solar power plants under the Petrol Green project, we installed solar power plants on 85
of our own facilities. The first power plants have already been connected to the grid, with an
additional installed capacity of 4.3 MW. The next phase of the Petrol Green project is expected
to be completed in 2024 and will include around 60 sites in Slovenia and extend to Croatia,
Serbia and Bosnia and Herzegovina.
In the area of energy solutions, in 2023, we completed the Energy Management of Facilities
(EMF) projects, namely the EMF Ruše and the refurbishment of the EMF Ig. Projects for the
market (heating stations, central control systems and various project extensions) were
implemented.
In mobility, investments in the expansion of charging infrastructure and investments in
vehicles for the provision of mobility services took place in all markets. We expanded our
charging infrastructure by 78 new charging points. As part of the URBAN-E project,
Petrol’s largest charging park was opened to the public at Ljubljana’s main railway station in
June. As part of the MULTI-E project, we continue to expand our market presence with new
types of charging points in Slovenia and Croatia. In 2023, we put 41 charging bays in Slovenia
and Croatia into public operation. In 2023, we completed the final report for the NEXT-E project
and submitted it to the European Commission. The report was fully approved, securing a 100%
subsidy under the tender conditions. This completes the project and fulfils all the obligations
towards the European Commission.
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In 2023, we again invested in the modernisation of information infrastructure and ensuring
information security both in Slovenia and in the markets of South-Eastern Europe.
Other
Throughout 2023, we invested in the areas of wholesale, human resources, security,
environmental protection, operational business, office space, and made other smaller
investments, both in Slovenia and in the SEE markets.
HIGHLIGHTS:
• In 2023, Petrol’s main investments were in the replacement of motorway service stations
and in energy transition, supporting the Group’s strategy until 2025. The service stations
of the future Barje North and Barje South stand out in terms of construction.
• We increased our investments by 39 percent year-on-year. 31 percent of investments were
in energy transition.
• In the area of renewable electricity generation, we completed the construction of solar
power plants in 2023, which are now in the grid connection phase. As part of the Petrol
Green project, we installed solar power plants at 85 of our own facilities.
• With the aim of optimising logistics for the next 20 years, we continued with the Oil&Gas
E2E supply chain digitisation project.
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16. Share and ownership structure
Share prices on the Ljubljana Stock Exchange were mostly up in 2023 compared to 2022,
when the escalation of tensions and the war in Ukraine, as well as the energy crisis,
significantly affected the share price movements.
23
This was also reflected in the SBI TOP
index, which gained 19.8 percent relative to the end of 2022, reaching 1,253.4 points at the
end of 2023.
Petrol’s shares are traded on the prime market of the Ljubljana Stock Exchange (LJSE) under
the ticker PETG and have been listed there since 5 May 1997. Despite the challenging
business environment, which had a very negative impact on the operating results in 2022,
Petrol d.d., Ljubljana paid a dividend in the amount of EUR 1.5 gross per share in 2023 for the
year 2022.
16.1 Petrol d.d., Ljubljana share split
On 1 November 2022, the Management Board of Petrol d.d., Ljubljana executed a split of the
PETG share (in a ratio of 1:20; after the split, the number of PETG shares is 41,726,020) in
accordance with the resolution of the 34
th
General Meeting following the entry into force of the
resolution on the amendment of the Articles of Association, through the entry of the
amendment of the Articles of Association in the court register, the corporate exchange act and
the prescribed procedures in the Central Register of Securities at the KDD d.o.o. and the
Ljubljana Stock Exchange. The share capital of Petrol d.d., Ljubljana, amounting to EUR
52,240,977.04 remained unchanged following the PETG share split.
16.2 Petrol share price
In 2023, the Petrol share was again one of the most traded shares on the Ljubljana Stock
Exchange, and at the end of 2023, its price was 16.5 percent higher than at the end of 2022.
The shares of Petrol d.d., Ljubljana accounted for 19.89 percent of the index as at 18
December 2023.
Base index changes for Petrol’s closing share price against the SBI TOP index in 2023
compared to the end of 2022
23
Sources of data in the Share and ownership structure section: websites of the Ljubljana Stock Exchange, share register of
Petrol d.d., Ljubljana, the Petrol Group’s 2023 financial statements.
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The average price of Petrol’s shares, which stood at EUR 23.12 in 2023, was down 3.2 percent
year-on-year. The closing share price ranged between EUR 20.30 and EUR 24.90 in 2023.
Petrol’s share prices in 2023 and 2022 in EUR
Closing price and the volume of trading in Petrol’s shares in 2023
16.3 Trading volume and market capitalisation
The volume of trading in Petrol’s shares at the Ljubljana Stock Exchange amounted to EUR
17.9 million in 2023, including batch trading (totalling EUR 0.3 million), and was down 65.7
percent from 2022. The turnover of the Petrol share, excluding bundles, totalled EUR 17.7
million in 2023, which was 55.3 percent less than in 2022.
The trading in Petrol’s shares accounted for 5.4 percent of the total trading volume of the
Ljubljana Stock Exchange, which stood at EUR 330.2 million (EUR 430.9 million in 2022), and
5.6 percent of the stock market’s share trading volume in the amount of EUR 320.4 million
(EUR 430.4 million in 2022).
The shares of Petrol d.d., Ljubljana were ranked fifth on the Ljubljana Stock Exchange by
trading volume. On average, the monthly volume of transactions involving Petrol’s shares
totalled EUR 1.5 million.
2023 2022
Total shares outstanding 41,726,020 41,726,020
Highest closing price for the year 24.90 28.10
Lowest closing price for the year 20.30 17.70
Average closing price for the year 23.12 23.89
Closing price as at last trading day of the year 23.30 20.00
Closing price increase/decrease (closing price as at last trading day of
the year/closing price as at last trading day of the previous year)
16.50% -21.26%
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The market capitalisation of Petrol d.d., Ljubljana on the last trading day of 2023 totalled EUR
972.2 million, which accounted for 10.6 percent of the stock market’s total capitalisation.
Petrol d.d., Ljubljana was ranked third in terms of market capitalisation on the last
trading day of 2023.
16.4 Key financial indicators for Petrol’s shares
The Petrol Group’s earnings per share (EPS) attributable to the owners of the controlling
company in 2023 stood at EUR 3.29 and its cash earnings per share (CEPS) at EUR 5.66.
The return per share calculated by comparing the closing share price as at the end of 2023
and the closing share price as at the end of 2022 was positive and stood at 16.5 percent.
Combined with a dividend yield of 7.5 percent, the total return per share stood at 24 percent in
2023.
The ratio between the shares’ market price and book value as at the end of 2023 – the latter
amounting to EUR 22.12 in the case of the Petrol Group – was 1.05 (P/BV), which was higher
than at the end of 2022. The ratio between the shares’ market price as at the end of 2023 and
the Petrol Group's earnings per share (P/E) stood at 7.08.
16.5 Share capital structure
The structure of the Petrol d.d., Ljubljana share capital changed in 2023 compared to the end
of the previous year. The largest single shareholder is J&T BANKA A.S. – a client account with
5,333,200 shares (change of depositary, previously the largest depositary was Clearstream
Banking SA), followed by Slovenski državni holding, d.d. (SDH, d.d.) with 5,299,220 shares,
the Republic of Slovenia with 4,513,980 shares and Kapitalska družba d.d. with 3,452,780
shares. Other large single shareholders include OTP banka d.d. – client account, Erste Group
Bank AG - PBZ Croatia Osiguranje, Vizija Holding, d.o.o., Vizija Holding Ena, d.o.o.,
MUSTAND ENERGY LIMITED and Perspektiva FT d.o.o.
Ownership structure of Petrol d.d., Ljubljana at the end of 2023 and at the end of 2022
At the end of 2023, 12,533,575 shares or 30.0 percent of all shares were held by foreign legal
or natural persons. Compared to the end of 2022, the number of foreign shareholders
decreased by 0.3 percentage points, while in 2023, the total number of shareholders increased
from 21,203 at the end of 2022 to 21,404.
No. of Shares in %
No. of Shares in %
Slovenski državni holding, d.d. 5,299,220 12.7% 5,299,220 12.7%
Republic of Slovenia 4,513,980 10.8% 4,513,980 10.8%
Kapitalska družba d.d. together with own funds 3,594,617 8.6% 3,642,789 8.7%
Domestic institutional investors and other legal entities 6,030,856 14.5% 5,906,011 14.2%
Foreign legal entities 12,491,327 29.9% 12,628,247 30.3%
Private individuals (domestic and foreign) 9,181,560 22.0% 9,121,313 21.9%
Own shares 614,460 1.5% 614,460 1.5%
Total 41,726,020 100.0% 41,726,020 100.0%
Petrol d.d., Ljubljana
31. December 2023
31 December 2022
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Shares owned by members of the Supervisory Board and the Management Board as at
31 December 2023
16.6 Other explanations by Petrol d.d., Ljubljana
The prospectus of Petrol d.d., Ljubljana, which has been prepared for the purpose of listing its
shares on the stock exchange, is published on the Company’s website. All changes to the
prospectus are published in the Company’s strategy document, the annual reports of Petrol
d.d., Ljubljana and its public announcements available on the Company’s website
www.petrol.eu and the website of the Ljubljana Stock Exchange https://seonet.ljse.si/.
Contingent increase in share capital
The General Meeting of Petrol d.d., Ljubljana did not adopt any resolutions in 2023 regarding
a contingent increase in share capital.
Reserves for own shares
Petrol d.d., Ljubljana did not repurchase its own shares in 2023. As at the last day of 2023, the
number of own shares stood at 614,460, representing 1.5 percent of the share capital. This
includes 494,060 own shares that were acquired by Petrol d.d., Ljubljana in the period from
1997 to 1999. Their total cost equalled EUR 2.6 million as at 31 December 2023 and was EUR
8.9 million lower than their market value on that date. The remaining 120,400 shares are the
shares that are considered as own shares that were held by the subsidiary Geoplin d.o.o.,
Ljubljana at the time it was incorporated into the Petrol Group. Own shares of Petrol d.d.,
Ljubljana, in total 722,840 (without the shares of Geoplin d.o.o., Ljubljana), were purchased
Name and Surname Position
Shares
owned
Equity
share
Supervisory Board 5,897 0.0141%
External members 4,137 0.0099%
1. Janez Žlak President of the Supervisory Board 0 0.0000%
2. Borut Vrviščar Deputy President of the Supervisory Board 4,137 0.0099%
3. Aleksander Zupančič Member of the Supervisory Board 0 0.0000%
4. Alenka Urnaut Member of the Supervisory Board 0 0.0000%
5. Mladen Kaliterna Member of the Supervisory Board 0 0.0000%
6. Mário Selecký Member of the Supervisory Board 0 0.0000%
Internal members 1,760 0.0042%
1. Marko Šavli Member of the Supervisory Board 1,760 0.0042%
2. Alen Mihelčič Member of the Supervisory Board 0 0.0000%
3. Robert Ravnikar Member of the Supervisory Board 0 0.0000%
Management Board 2,800 0.0067%
1. Sašo Berger President of the Management Board 700 0.0017%
2. Jože Smolič Member of the Management Board 700 0.0017%
3. Marko Ninčević Member of the Management Board 700 0.0017%
4. Zoran Gračner Member of the Management Board and Worker Director 700 0.0017%
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between 1997 and 1999 (this figure is recalculated to the number of shares after the split; the
number of shares before the split was 36,142). The Company may only acquire these own
shares 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 34
th
General Meeting held on 21 April 2022, the
Management Board of Petrol d.d., Ljubljana is authorised to acquire own shares within 12
months from the effective date of the resolution. Under this authorisation, a maximum number
of own shares may be acquired so that the total percentage of the shares acquired based on
this authorisation does not exceed, together with other own shares already held by the
Company, 2 percent of the Company’s share capital. The Company may acquire its own
shares through transactions entered into on a regulated securities market, at the then
prevailing market price. The Company may also acquire its own shares outside a regulated
securities market. When acquiring shares on a regulated or unregulated securities market, the
purchase price of the shares may not be less than 50 percent of the book value of the share,
calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts.
The purchase price of the shares may also not exceed 11 times the earnings per share (EPS)
calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts.
Pursuant to Article 381(3) and (4) of the Companies Act (ZGD-1), the Company may reduce
the share capital (once or successively) by withdrawing own shares acquired pursuant to this
authorisation (but not own shares acquired earlier) in a simplified procedure and against other
profit reserves with the consent of the Supervisory Board. The Company may only use its own
shares acquired pursuant to this authorisation in accordance with this resolution. The
resolution entered into force on 30 November 2022.
A dividend policy maximising long-term returns
A shareholder policy that is based on the long-term maximisation of returns for shareholders
is one of the cornerstones of Petrol’s development strategy. Petrol’s Management Board
advocates a stable long-term dividend payout. This fits best with the Company’s development
needs as it delivers more predictable returns and the long-term stability of Petrol’s share price.
The dividend policy target for the 2021-2025 strategic period is 50 percent of the Group’s net
profit, taking into account the investment cycle, Group indicators and the achieved objectives.
In accordance with a resolution of the 37
th
General Meeting of 18 May 2023, Petrol paid out a
gross dividend for 2022 of EUR 1.5 per share in 2023.
Dividends in 2017–2022
Period
Gross dividend per share
(recalculation after the share split
in a 1:20 ratio)
Gross dividend per share
2017 EUR 0.80 EUR 16.00
2018 EUR 0.90 EUR 18.00
2019 EUR 1.10 EUR 22.00
2020 EUR 1.10 EUR 22.00
2021 EUR 1.50 EUR 30.00
2022 EUR 1.50
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Balance sheet profit
In accordance with the Companies Act (ZGD-1), Petrol d.d., Ljubljana’s accumulated profit was
EUR 74.2 million in 2023.
Regular participation in investors’ conferences and access to information
Petrol d.d., Ljubljana has set up a programme of regular cooperation with domestic and foreign
investors, which consists of public announcements, individual meetings and presentations, and
public presentations. The Company also regularly attends investors’ conferences organised
each year by stock exchanges, brokerage companies and banks. There were several
individual meetings with investors and analysts in 2023. We participated in events organised
by the Ljubljana Stock Exchange: in March and September at the webinar “Slovenian Stock
Exchange Companies Online”, in May at the event “Trade on the Stock Exchange”, in June in
Zagreb and in December in Ljubljana at the event “Investors’ Day of the Ljubljana and Zagreb
Stock Exchanges – CEE Investment Opportunities” and in October at the event “Financial
Festival”.
All information relevant to the shareholders, including the financial calendar, is published on
the Company’s website. The contact person responsible for investor relations is Ms Barbara
Jama Živalič, who can be reached at investor.relations@petrol.si.
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17. Internal Audit
Internal Audit operates as an independent and autonomous support function within the
organisational structure of the controlling company. Organisationally, it reports directly to the
Management Board, while functionally it reports to the Audit Committee and the Company’s
Supervisory Board. Internal Audit operates throughout the Petrol Group and adheres to the
International Standards for the Professional Practice of Internal Auditing. The purpose of
Internal Audit is to give objective assurance to the Management Board and the Audit
Committee and to provide advice at all levels about property protection, compliance with the
law and internal regulations, as well as the improvement of the quality and efficiency of risk
management, thus improving the Petrol Group’s operations. By doing so, it helps achieve the
strategic and business goals based on best practices.
Internal Audit operates in accordance with the Internal Audit Charter and the principles of
independence, professional competence, objectivity and ethical principles as
fundamental principles of the auditing profession. Internal Audit’s annual work programmes
and annual reports are approved by the Company’s Management Board, presented to the
Audit Committee for information, and endorsed by the Company’s Supervisory Board. Internal
Audit provides regular reports on its work to the Management Board and reports at least
quarterly to the Supervisory Board’s Audit Committee. In 2023, the Audit Committee received
quarterly reports on all audits, significant findings and recommendations for improving the
system of internal controls and risk management within the Petrol Group.
In accordance with the International Standards for the Professional Practice of Internal
Auditing, an external assessment of the quality of Internal Audit should be conducted at least
once every five years by an independent assessor or assessment team from outside the
organisation. At Petrol, the external assessment of the quality of internal auditing was last
performed in 2019, resulting in a report that confirmed conformity with the International
Standards for the Professional Practice of Internal Auditing. The external assessment was
performed by an independent international audit firm, which also prepared a benchmarking
analysis and determined that according to the eight elements of excellence, the Petrol Group’s
internal auditing significantly exceeds the average of 453 global companies and the average
of 57 companies with sales revenues above USD 2 billion. The next assessment is planned
for the end of 2024.
In 2023, Internal Audit continued to carry out certain procedures to improve the quality of work:
• due to organisational changes, it updated the set of departments/processes within the
Petrol Group (the audit universe);
• based on the COSO methodology, it reassessed risks according to the processes and
organisational units of the Petrol Group, taking into account the significance of the
processes and the date of the previous internal audit;
• following a new risk assessment, Internal Audit’s work programme for 2024 was approved
in December 2023 by the Management Board and the Supervisory Board;
• it carried out procedures to measure the efficiency of internal audits.
The functioning of the internal controls in the Petrol Group’s retail network was verified by
a dedicated team of qualified experts from the Corporate Security and Business Control, which,
in order to prevent and detect fraud, focuses primarily on monitoring the service station,
logistics and storage facility operations from the perspective of goods and finance.
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In 2023, Internal Audit performed 21 regular and extraordinary audits of assurance (four
were in the final phase as at 31 December 2023). The objective of the internal audits was to
verify the integrity of financial and business decision-making reporting, compliance with the
law and internal regulations, the implementation of the Petrol Group’s strategy and process
efficiency. In terms of content, the audits were mainly focused on verifying the efficiency of
processes that were either new or had not been subjected to an audit during the past four
years. For the processes that were audited, Internal Audit gave assurance that the audited
units had a suitable internal control system in place that was operational on a regular basis.
As there was still room for improvement, recommendations were provided, the implementation
of which was verified on a regular basis. In 2023, in addition to the audits, Internal Audit also
regularly monitored the implementation of recommendations from previous and current years.
In 2024, part of the resources will be allocated to activities related to a comprehensive
application solution for internal auditing, which aims to ensure even more efficient and
systematic internal audit processes.
HIGHLIGHTS:
• Internal Audit in the Petrol Group operates to high standards, ensures independence,
professionalism, impartiality and follows ethical principles.
• In 2023, Internal Audit performed 21 regular and extraordinary audits of assurance.
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18. Information technology
2023 was a year full of business challenges, from the acceleration of the energy transition,
digitisation and process automation, to external influences (the war in Ukraine, inflation and
multiple regulatory requirements), which was also reflected in an increase in requests for
changes and upgrades to information systems and IT solutions.
18.1 Introduction of key information solutions
We accelerated the pace of our planned IT transformation. Following the application to the call
for tenders “Digital Transformation of the Economy” of the Ministry of Economic Development
and Technology (under the “Recovery and Resilience Plan” national programme) in September
2022, the consortium of Petrol d.d., Ljubljana (as lead partner), Smart Cargo d.o.o. and Špica
International d.o.o. was awarded a grant to implement the “Digitisation of the Oil&Gas E2E
Supply Chain” project. Together with our partners and the selected SAP solution
implementation provider, we worked intensively in 2023 on the implementation of the project.
Once the project has been
completed in the parent company,
the solution will be rolled out in other
markets. The new IT solution is an
important foundation for the Petrol
Group’s future operations. The
project will digitalise and modernise
the Company’s most important core
processes, from the procurement of
petroleum products to logistics and
sales. Petrol Archive
In 2023, we continued consolidating IT solutions in the Petrol Group and implemented SAP
solutions in 9 additional Group companies.
In the area of energy and energy solutions, we launched a number of projects as part of the
“Digitalisation of the Energy Sector” initiative, which will support and optimise energy and
energy solution processes (planning, construction, sales, management, trading and
maintenance) in the coming years. We launched a digital configurator to help customers decide
whether to buy a solar power plant, and as part of the Home project, we digitalised some of
the other steps in the solar power plant sales process (e.g. the preparation of quotations). We
are implementing a technological overhaul of Petrol’s IoT platform and developing a solution
that will allow B2B buyers and producers to access the market to buy or sell electricity. We
also started planning the solution “Information platform for monitoring the condition of
fixed assets and technological processes”, which will enable better support, management,
maintenance and thus the comprehensive monitoring of the condition of the equipment owned,
operated and maintained by Petrol (in the first phase, support will be provided for solar power
plants, e-charging points, the energy management of facilities, and later also for other assets
under maintenance). We will continue to implement projects in this area in 2024.
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18.2 Modernising, improving, optimising and digitalising
In the area of service station support, we are working on a technological overhaul of the
platform which underlies the service station support solutions. We are moving to a new
distribution of the Linux operating system and introducing a new data exchange platform. As
part of the overhaul, we will also create a platform that will enable the exchange of data at the
service stations with the SAP system (previously this was only possible via the PIS system).
As part of Petrol’s card system, we supported the renewed DinaCard in Serbia and the
Eurowag truck card for payments at service stations in Petrol’s retail network. In the area of
card transactions, we carried out a number of activities with various card systems (Routex, AS
24, LogPay, Amex, etc.). We also successfully renewed Petrol’s compliance with the PCI
DSS
24
(PCI P2PE
25
) standard.
We continue to digitise documents in various areas and are increasingly moving towards a
paperless business. We will continue our activities in this area in 2024.
In the area of developing support for the sales of partner services and products, we supported
a number of new services (Bitins Croatia, Moje Karte Croatia, Aircash services for Slovenia
and Croatia, support for the sale of IQOS products in Croatia and Japan Tobacco products in
Slovenia, GLS parcel distribution in Croatia and others).
In the area of CRM and customer care, we continue to digitalise processes that enable more
efficient business operations (complaints support, support for B2B processes, contracting and
sales of energy solutions).
In 2023, we continued to implement solutions enabling the digitalisation of internal processes
in the Petrol Group (implementation of eContracts and mSign solutions in subsidiaries).
In the area of network sales of energy commodities (electricity, gas and heat), we implemented
a number of statutory changes (price regulation, billing changes and reporting to the regulator)
in both Slovenia and Croatia.
In the area of fuel logistics, we are developing a solution that will enable electronic data
exchange with foreign fuel depots (Žitnjak depot) that we lease. The solution will be ready in
the first quarter of 2024.
As we moved into 2023, we successfully implemented the introduction of a new currency in
Croatia (the euro).
We continued the technological, design and content overhaul of the “Na
poti” mobile app, which has been upgraded to the “Petrol GO” app. This
is a major and comprehensive overhaul, which will be completed by the
beginning of February 2024. With the redesigned app, we aim to provide
users with an even better shopping experience at Petrol service
stations. The redesigned app will also provide a good basis for the
many functional upgrades that will be implemented in the future.
24
PCI DSS – Payment Card Industry Data Security Standard
25
PCI P2PE – Payment Card Industry Point-to-Point Encryption
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At the beginning of August, we revamped the IT service request portal. The portal upgrade
introduced Atlassian’s state-of-the-art IT request management platform, resulting in an
improved user experience and a streamlined request resolution process. In Jira, we
implemented a number of integrations between Jira, SAP and the data warehouse to
streamline the development process, and we also improved and automated a number of other
processes in Jira.
We provide capacities and ensure the high availability of the system and network
infrastructure, with which we effectively support business processes.
We implemented a new backup system, including cloud backup of data to local infrastructure.
We modernised and upgraded many existing and added some new integrations, thus
improving the communication and speed of internal processes and processes with various
partners.
18.3 Information security put to the test
Recently, IT systems have received a lot of media attention due to the vulnerability of ICT
26
equipment suppliers and outsourcers. Any security incident that occurs with them could also
pose a serious security threat to the Petrol Group due to the interconnectedness of its systems.
Defending against such threats is particularly difficult because their information systems are
not under our control. With its wide range of information services, the Petrol Group plays an
important role in providing key services for the preservation of essential social and economic
activities, including energy and transport, so information security is a key concern.
The management of these risks is also dictated by the Information Security Act (ZInfV), which
aims to regulate the field of cyber security and ensure a high level of security of networks and
information systems in Slovenia, which are essential for the smooth functioning of the state in
all security situations and provide essential services for the maintenance of vital social and
economic activities.
The heightened security situation in 2023 has also led to significant changes in some cyber
risks. The probability of a catastrophic event affecting the normal functioning of the information
system has increased significantly. That is why the Petrol Group started to increase the
monitoring of security events and information in our control systems within the Security
Operations Centre (SOC
27
) on a 24/7 basis. Petrol has taken a number of measures to
minimise the success of such attacks.
At the Petrol Group level, we continued our activities to strengthen our resilience against cyber-
attacks and to build on existing measures with a 24/7 SOC, by introducing effective Data Loss
Prevention (DLP
28
) measures, assessing and defining security requirements for key suppliers
in accordance with the requirements of the ZInfV and implementing a comprehensive business
continuity management system in accordance with the ISO 22301 standard.
HIGHLIGHT:
• IT system hacks are a serious threat to the Petrol Group which responded by having
increased control and protective measures.
26
ICT – Information and Communication Technology
27
SOC – Security Operations Centre
28
DLP – Data Loss Prevention
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SUSTAINABLE DEVELOPMENT
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19. Strategic orientations and goals for the sustainable development
of the Petrol Group
Petrol recognises the importance and complexity of the energy transition. We are pursuing an
interim goal for the European Union to reduce emissions by at least 55 percent by 2030, the
Regulation on green investments or Taxonomy Regulation and the high national energy and
climate targets.
With its strategy until 2025, the Petrol Group has committed itself to a decisive energy
transition, with which it is co-creating a green future and making an important contribution to
protecting the environment we live in.
Our goals for the period until 2025 are ambitious:
• reducing the carbon footprint of our core activity by 40 percent;
• investing EUR 244 million in energy transition;
• 164 MW of installed renewable electricity production capacity.
At Petrol, sustainability has a face and concrete actions
Our sustainability performance is detailed in our sixth consecutive Sustainability Report. For
the first time, we report on areas that include environmental, social and governance (ESG)
aspects as defined by the European Sustainability Reporting Standards (ESRS
29
), which we
will be required to report on in the future. We also included TCFD reporting elements
30
– for
each environmental, social and governance (ESG) sub-area, we are identifying the Petrol
Group’s key policies, objectives, metrics and actions to achieve the objectives, as well as the
monitoring and management of each sub-area. This is in preparation for reporting under the
Corporate Sustainability Reporting Directive, or CSRD
31
, which introduces the ESRS Uniform
Reporting Standards.
But it is not just about getting the numbers right - at Petrol, sustainability has a face and
concrete actions. Every action, no matter how small, counts, but together we are writing a big
story and achieving big goals. Our Sustainability Ambassadors are making a difference by
taking small steps in their personal and work environments and encouraging other colleagues
to join the “Me Too!” initiative.
29
ESRS – European Sustainability Reporting Standards
30
TCFD – Climate-related Financial Disclosures
31
CSRD – Corporate Sustainability Reporting Directive
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Like our Sustainability Ambassadors, we at the Petrol Group are on a journey of transformation
based on partnership in the energy transition of society as a whole. We recognise that we
cannot achieve our common goals alone. We see opportunities and potential primarily in our
core business of supplying energy commodities. Building relationships with and serving our
customers is a priority. That’s why we’re strengthening our digital channels and expanding our
range of sustainable energy commodities and personalised offers.
In the Petrol Group Strategy 2021-2025, we have committed to allocating 35 percent of our
total investments, totalling EUR 698 million, to the energy transition over this period. We are
increasing the share of renewable energy sources (RES) in our own electricity generation and
contributing to growing energy independence for our own operations, as well as for
communities and cities.
In 2022, we prepared a Climate Policy, which was adopted in 2023. This reaffirms our decision
to actively work to prevent, mitigate and adapt to climate change, while continuing our efforts
to reliably deliver the energy needed for society’s well-being at an affordable price. We are
implementing solutions that support the European Union’s low-carbon agenda, both in our own
operations and with our business partners.
One of the Petrol Group’s fundamental objectives is to continually reduce emissions of harmful
substances into the air and soil and noise into the environment, which is why we are constantly
upgrading our equipment and installing systems in line with the best available technology
guidelines.
We are committed to the quality of water resources and the careful and efficient management
of water, both for our own use and in developing solutions for cities and regions.
We are gradually introducing circular models into our business processes (new packaging
materials, the use of recycled materials, the optimisation of waste management, and the
introduction of reverse packaging systems in supply chains).
We are strengthening our partnership with our employees and the community, with a focus on
reinforcing corporate integrity, ensuring a healthy working environment and employee
satisfaction, and supporting the wider community in all markets where the Petrol Group
operates.
We signed a commitment to provide long-term support for the Green Heart of Karst project,
which implements the reforestation plan for the burnt Karst under the auspices of the Slovenian
Forest Service. We are part of The Bee Path in Ljubljana project and supporters of the Urban
Beekeeping project.
Petrol Archive
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We face the future with courage, despite the many challenges and often unexpected events
that force us to make quick decisions. That’s why we take a strategic approach to sustainable
development. In 2024, ESG/climate risks will be included in the comprehensive risk
assessment for the first time. We also made environmental performance and the fight against
climate change a cornerstone of our strategic development and sustainable management
system, inspired by the highest standards of climate governance. At the same time, we
recognise that we are part of a bigger story and that further bold steps towards ambitious
sustainability goals can only be taken in agreement with all stakeholders, because we are
interdependent.
The Sustainability Award received from Slovenian Chamber of Commerce
Petrol Archive
HIGHLIGHTS:
• We committed to an energy transition with ambitious targets by 2025, including a 40
percent reduction in our carbon footprint and a EUR 244 million investment in renewable
energy generation.
• We adopted a Climate Policy that reaffirms our commitment to preventing and mitigating
climate change and implementing low-carbon solutions while emphasising the importance
of water quality and circular models in business processes.
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20. Responsibility towards employees
At the Petrol Group, we build a culture of mutual trust and respect, innovation and teamwork,
while also striving to provide a friendly, stimulating and dynamic work environment, as well as
opportunities for employee development.
20.1 Status of employees in 2023
At the end of 2023, 5,945 people were employed within the Petrol Group and at third-party
operated service stations, of whom 45 percent abroad. Compared to the end of 2022, the
number of employees in the Petrol Group dropped by 279, mostly in subsidiaries, particularly
abroad, where staff turnover was high due to labour shortages in many activities.
Employees in the Petrol Group 2021–2023
Employee structure in the Petrol Group
At the end of 2023, the average age of Petrol Group employees was 40 years. 52 percent of
the employees were male and 48 percent female. The gender balance differs across
companies depending on the activity of each company.
Because our core business is retail, the majority share of Petrol Group employees have
attained level V of education (equal to the secondary education).
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The Petrol Group’s education structure as at 31 December 2023
20.2 Recruitment
Recruiting the best experts is key to achieving our business goals. Attracting new top external
staff, a diverse pool of in-house staff and scholarships constitute important components of the
business growth plan.
During the recruitment process, all candidates are given equal treatment irrespective of
gender, age or other circumstances. Acquiring the right staff is becoming increasingly
challenging, which is why we look for candidates through different channels. We have set up
our own recruitment database to find new staff quickly and efficiently. In recruitment and
selection, we use various psychological tests and in-depth interviews.
Petrol’s system of human resources development, continuous employee education and
training also provide for a diverse selection of internal human resources. The high level of
qualification enables our staff to quickly adapt to changes and also take advantage of internal
vacancies to find challenges in new areas of work within the Petrol Group.
20.3 Remuneration and motivation of employees
The Petrol Group’s remuneration systems are aimed at motivating employees to perform even
better and increasing satisfaction. Salaries consist of fixed and variable parts. Different groups
of employees have different remuneration systems that are used as a basis for calculating the
variable part of the salary. At the Petrol Group, most employees are included in either the
service station remuneration system or the remuneration system for corporate functions.
Service station employees receive the
variable part of their salary in the form of a
monthly performance bonus based on the
productivity of a service station. They receive
an additional bonus for maintaining or
improving the quality of operations. Employees
are also remunerated taking into account the
results of reward and sales promotion
campaigns, especially regarding the sale of
new products and services. We select and
reward the best salespersons in each country,
and we also reward employees at the best-
performing service station.
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The job performance of employees in corporate functions is monitored through quarterly
and annual interviews and is remunerated according to whether their goals have been
achieved or surpassed.
Employees receive jubilee benefits in appreciation of their loyalty to the Company. At the end
of the year, employees also receive a performance bonus linked to the Company’s
performance.
At Petrol, the voluntary supplementary pension insurance of employees of the parent
company has been part of the salary policy since 2002.
20.4 Training in figures
In 2023, we provided more than 98 thousand hours of training. On average, each Petrol Group
employee received more than 16 hours of training and attended at least four different training
courses.
Petrol Group training is targeted at different groups. Certain programmes are mandatory for all
employees and are largely carried out in the form of e-learning (for example, occupational
safety, information security, the security of card operations, etc.). Employees also acquire and
further develop their knowledge through courses and seminars held at external institutions in
their home country and abroad.
Trainings we provided for specific target groups:
• In 2023, induction seminars for newly recruited salespeople were held at learning centres
in Zalog, Rače and Nova Gorica. In a simulated shop environment, future and current
employees are trained in sales skills. The sales personnel are trained by the network of
internal coaches who all have the appropriate skills and knowledge to conduct training and
workshops, both in Slovenia and in the SEE markets.
• We conducted an annual internal certificate review for internal coaches to enhance their
coaching skills.
• Employees in retail management positions received training in management and
professional skills, as well as coaching sessions.
• We provided additional training for some of our employees to work as industrial train
drivers.
• We organised systematic training for tanker drivers to ensure that operations at storage
facilities and service stations can continue to run safely and smoothly in the future.
• We also provided theoretical and practical training in the use of drones.
• We also paid close attention to information security training.
• We organised a Business English course for employees and a Croatian course for
individuals.
• We provided funding for employees who wished to further their education and study.
• We gave our employees the opportunity to improve their knowledge at conferences,
training courses and trade fairs in Slovenia and abroad.
We also focused on leadership development. The Strategy in Action programme for Petrol
Group managers was continued and successfully completed in 2023. This was followed by
additional activities for the managers – group and team coaching. In addition, four more groups
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of managers completed the first year of the Professional Development of Managers
programme, which involves operational managers who manage colleagues through skills
training.
Through Open Space, we organised more than 40 different events on topics such as
occupational health, knowledge, skills, sustainability and current projects.
We also offer employees the opportunity to acquire and update their knowledge through the
MojeZnanje platform. Employees decide for themselves which training courses they want to
attend and when. It is a platform that provides knowledge for both professional and personal
development. We also offer the opportunity to develop through programmes on the Udemy
Business platform, which contains world-class content ranging from coding and digital design
to management and marketing.
20.5 Activities under the Family-Friendly Enterprise certificate
Petrol d.d., Ljubljana has a full Family-Friendly Enterprise certificate. The programme
associated with this certificate includes a range of activities designed to maintain a balance
between personal and professional life.
To help employees balance work and family commitments, we also offer flexible working hours
for introducing a child to kindergarten, participation in corporate volunteering campaigns,
healthy lifestyle activities, gifts for newborns and much more.
In 2023, we organised a Petrol Family Day at the Safe Driving Centre in Vransko, which was
attended by more than 530 Petrol employees and their family members. We focused on safe
driving of cars, electric scooters and bicycles. For the youngest children, we prepared an
animated children’s programme with creative workshops, testing driving skills on a children’s
polygon and learning about Petrol’s activities.
20.6 Petrol volunteers and humanitarian projects
Through corporate volunteering called We Give Back to Society, employees in Slovenia have
been supporting the socially responsible orientation of the Company and at the same time
strengthening the interconnectedness of all those participating in individual campaigns since
2014. It was held for the tenth consecutive year in 2023. We ran seven volunteering
campaigns, in which a total of 51 Petrol volunteers took part. Petrol contributed 102 work hours,
with volunteers contributing another 102 of their own volunteer hours. We also ran three more
volunteering events in 2023 as part of the Growing Together project, in which 41 Petrol
employees took part. They planted 2,500 tree seedlings in three locations across Slovenia
from a quota of 10,000 seedlings donated by Petrol to the Slovenian Forest Service.
In 2023, for the sixth year in a row, we once again extended our helping hand to the Moste-
Polje Association of Friends of Youth. As part of the Become the Petrol Santa Claus
campaign, employees in Slovenia collected 192 New Year’s presents for children from
disadvantaged backgrounds.
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20.7 Healthy at Petrol programme
In 2023, the Healthy at Petrol programme focused on a variety of topics. In line with the
guidelines of the Healthy at Petrol strategy, the core areas of programme implementation in
2023 are healthy nutrition for employees and the promotion of active breaks during work and
other physical activity for employees. Both areas are based on analyses of the causes of
sickness absenteeism over several years and on analyses of the annual occupational health
reports, which are drawn up following the completion of preventive and periodic medical check-
ups.
A large part of our activities in 2023 also focused on communication and preventive measures
to prevent the spread and alleviate the symptoms of respiratory infections and other viral
illnesses, which can be a major challenge for the Company due to employee absenteeism,
especially during the winter months.
The programmes were implemented through the so-called Open Space and the Connected in
Awareness programme, as well as through various forms of internal communication with
employees.
20.8 Internal communication and bringing people together
The development and communication of a sustainable corporate culture include the
communication of work culture, organisational
changes and the transformation of activities,
and from the point of view of the desired
employer, include the development and
communication of workplace wellness
programmes and programmes that build good
communication and atmosphere in work
environments, which we run as part of our
programmes The Energy of Our Growth,
The Energy of Our Responsibility and Our
Energy Connects.
The received Prizma Award for Excellence in
Communication
Petrol Archive
In 2023, we presented managerial, organisational, process and business changes in more
detail through internal communication channels. To support the strengthening of the
understanding of the Petrol Group’s strategy, we featured selected employees –
Ambassadors of Change – who deepened their understanding of the strategy through their
involvement in strategic initiatives over the past two years. We also communicated our
individual strategic pillars by answering questions about where and how we compete, what our
goals are, what we promise and how we win.
As part of the internal communication, we presented the stories of our employees again in
2023 to consolidate the Company’s organisational culture, showcase jobs, networking stories,
the stories behind the different faces and accomplishments and stories of creativity through
staff profiles. Creativity was also encouraged through internal competitions, stories of courage
and bringing people together. Under the slogan Life at Petrol, we communicated what Petrol
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offers as an employer and raised awareness of how individual departments live the role of
administrator – as one of the strategic activities in building Petrol’s organisational culture. In
addition, through the My Compass project, we strengthened our knowledge of Petrol’s values
and how we live them.
In 2023, we also paid special attention to the employees of E 3, d.o.o. and launched the E3 e-
newsletter Our Energy, a communication portal aimed at strengthening cooperation and
networking among Petrol Group employees.
In 2023, we continued our Sustainability Mission strategic project, which aims to reduce our
carbon footprint at the employee level through awareness-raising. As part of the Petrol
employees reducing their carbon footprint by 40 percent. Me too! activities, we set up the
My Carbon Footprint questionnaire in the employee development portal Energy of Our
Growth – Gecko, which was activated at the end of June. The questionnaire was developed
as a tool for employees’ long-term personal development. In 2023, 25 percent of Petrol
employees completed the questionnaire. As part of the Me Too! activity, we also featured
selected colleagues – Sustainability Ambassadors – who are working in their respective
workplaces to promote and implement the sustainable practices needed to change consumer
habits.
20.9 Occupational safety and preventive medical check-ups
In the Petrol Group, we are aware that occupational safety and health, in addition to their
main purpose, also provide for employee satisfaction. To this end, we constantly and
systematically strive to reduce the level of risk arising from the working processes by
introducing appropriate organisational and security measures. Although the working
environment is changing owing to the development and introduction of new technologies and
procedures, Petrol is successfully keeping up with these changes and looking for solutions that
are healthier and safer for our employees.
All companies of the Petrol Group have adopted safety declarations with risk assessments.
The latest findings in occupational safety and health are integrated into new processes and
projects. In addition, we monitor the risks related to accidents and injuries. The risks are
assessed periodically and, through safety measures, maintained at an acceptable level. The
reduction of risks for highly exposed workplaces and seeking links with other areas of safety,
in particular fire safety, environmental protection and chemical safety is a priority in the
advancement of occupational safety and health.
The programme of preventive medical check-ups includes all employees in the Petrol Group.
Particular attention is devoted to co-workers with reduced working capacity.
Considerable attention is also paid to the theoretical and practical training of employees in
occupational safety and health, workplace ergonomics, fire safety, environmental protection,
the safe handling of chemicals, the safe transport of hazardous goods and first aid.
HIGHLIGHTS:
• In 2023, the Petrol Group provided more than 98 thousand hours of training, with an
average of more than 16 hours per employee, reflecting its commitment to continuous
learning and employee development.
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• Through corporate volunteering and various humanitarian activities such as Become the
Petrol Santa Claus, the Petrol Group strengthens its social responsibility and employee
engagement.
• The Petrol Group strengthens the organisational culture and employee engagement
through various communication channels and programmes that promote health, safety and
sustainability.
• We are committed to occupational health and safety by introducing appropriate safety
measures and preventive medical check-ups for all employees.
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21. Responsibility towards customers
In the strategy of the Petrol Group, we place great emphasis on continuously improving the
customer experience. We place the customer/user at the centre of our operation both in the
development of new products and services and in the interaction with the customer at an
individual point of contact.
Establishing and maintaining customer relationships is our priority, and with new digital
channels, an expanded range of energy commodities and a personalised offer, we will
get even closer to our customers and thus provide them with an excellent experience.
21.1 An excellent customer experience is the foundation for future growth
By providing an excellent experience, we develop customer relationships, increase loyalty,
promote ambassadorship, differentiate ourselves from the competition and improve business
results.
At the heart of the customer experience is the customer and understanding their needs,
expectations, desires, motivators and behaviours. To achieve a great customer experience, it
is important to manage it at all points of contact. New market conditions have greatly
encouraged the digitalisation of users, so it is equally important to ensure an excellent
customer experience at digital points of contact. With the increase and complexity of contact
points, managing the customer experience is becoming increasingly demanding. In order to
meet the expectations of our customers, it is extremely important to know their shopping
routes, preferences, and the importance and intertwining of points of contact.
For years, the Petrol Group has been applying various methods to monitor all phases of the
purchasing process at individual points of contact with the customer. Measurements are
updated regularly and are linked to improvements based on customer needs and preferences.
At regular intervals, we check the expectations and preferences of customers, both our existing
ones and those of our competitors. We use the information obtained from customers to improve
our offer and customer experience on a regular basis.
One of the key indicators of monitoring the customer experience is measuring customer
satisfaction. In the Petrol Group, we monitor customer satisfaction at all important points of
contact, as well as in comparison with the competition.
The most important elements that affect customer satisfaction and consumer experience, in
addition to the price and quality of products and services, which are key elements in all
categories/areas, are as follows:
• accessibility and orderliness of service stations and toilets;
• friendly and professional staff;
• fast and easy-to-use services;
• rewarding customer loyalty;
• complaint handling.
All these factors, if they meet and exceed customer expectations, are parts of an excellent
customer experience, which is one of our strategic foundations and sources of future growth.
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The market situation, both in energy commodities and fuels, where we faced high price
increases and supply difficulties in the past two years, and in energy solutions, where we faced
high demand from all suppliers, is reflected in the changed expectations of our customers and
buyers.
21.2 Maintaining customer satisfaction
The satisfaction survey is one of the key strategic research activities that we have been
implementing at Petrol for a number of years in a row, which provides a deeper insight into the
customer, their expectations and satisfaction, which in turn is an important source for defining
activities to improve the customer experience and thus increase customer satisfaction.
Despite the difficult market conditions, we have maintained the overall Petrol Customer
Satisfaction Index at a high level in 2023 and at the same level as in 2022.
The 2023 Customer Satisfaction Survey, conducted for the fifth
consecutive year, has shown that the areas of the energy
transition, which is the key driver of Petrol’s vision and strategy,
are becoming increasingly important in the eyes of our
customers. It is in the areas of e-charging points, energy solutions
and energy commodities that we achieved the highest growth in
customer satisfaction in 2023. The greatest stability and high
levels of satisfaction over time are achieved through digital
channels (apps and online shop), which are key points of contact
for simplifying and speeding up processes and are therefore an
Petrol Archive important building block for a great customer experience.
In 2023, we measured the satisfaction of Petrol’s customers and the customers of competitors
in key areas of the Croatian and Serbian markets. The highest satisfaction on the Croatian
market was expressed by users in the area of energy commodities and the Na poti mobile app,
and satisfaction is also improving with the loyalty programme, as well as with the service
station, which reflects all the activities we have carried out at the service stations. We also
managed to improve the experience of Petrol customers in Serbia, as they rated Petrol’s
communication as 10 percent better compared to 2022.
Customer experience, Petrol’s strongest dimension, remains paramount.
With the annual Brand Power study, which we conduct in five markets (Slovenia, Croatia,
Serbia, Bosnia and Herzegovina and Montenegro), we follow the image of Petrol and Petrol’s
brands in the general public, while observing how our competitors are positioned among the
customers. The selected data shows us the success of the progress in the activities set with
the aim of realising the Petrol Group’s vision: “To become an integrated partner in the energy
transition with an excellent customer experience.”
Throughout the years of measurement, Petrol has been the strongest brand in terms of service
stations, and it has been gaining strength in the last two years. We are also maintaining our
leading position in terms of brand image in 2023. An excellent customer experience remains
one of the most important dimensions of the brand and will continue to be our key focus. This
is to maintain our competitive advantage in customer perception, as customer experience has
proven to be our strongest area for many years.
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Petrol and competitor image by dimension for 2023
Source: Brand Strength Survey 2023, general public, Slovenia; n = 1,000.
Growth in preference as a result of excellent customer experience
In the SEE markets, where the Petrol Group is not the leading player, our strongest dimension
remains our customer experience, and by far the highest awareness among all the assessed
attributes is achieved by the friendliness of our employees.
In 2023, despite new competition entering the market, we continued to perform well and were
able to maintain preference
32
, which usually reflects a good customer experience, at our target
level.
Fuel quality is the most important attribute when choosing a service provider; it is what
customers expect.
Brand image in the service stations
category is most significantly affected
by high-quality fuel; most customers
identify Petrol with high-quality fuel.
Continuous development of the Q Max
product and brand and successful
communication have put Q Max well
ahead of the competition in recent
years. The biggest improvement is in
the customers’ perception of the Q Max
brand being trustworthy. What is more,
in 2023, the proportion of customers
who believe Q Max offers the best fuel
economy has also slightly increased. Petrol Archive
32
Preference: You are in a situation with service stations from different companies available. Which one would you choose?
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Petrol Q Max: Building the “trusted fuel brand” attribute 2018–2023
Source: Brand Strength Survey 2023, general public, Slovenia; n = 1,000.
In recent years, service stations have become much more than just a place to fill up our tanks.
They are becoming a place where people like to stop, especially to have a good coffee or a
quick meal on the road.
Knowing what our customers need, Petrol further
improved this type of offer, and our customers noticed
this in 2023.
Sales of Coffee to Go at Petrol increased by 7 percent
in 2023. Coffee enthusiasts appreciate the great
availability of coffee and its unique taste. Compared to
2022, 48 percent more coffee lovers agreed that Coffee
Petrol Archive to Go truly has a unique taste.
In 2023, we also improved the range of freshly prepared food of the Fresh brand. 17 percent
more Slovenians than the year before think that Fresh offers very good or even the best food
on the road. The improved range of products also increased the proportion of customers who
are already familiar with Fresh by 7 percent.
HIGHLIGHTS:
• The overall Petrol Customer Satisfaction Index remained high, at the same level as in 2022.
• Coffee To Go is known for its unique taste, a benefit cited by 48 percent more coffee lovers
in 2023 than in the previous year.
21.3 Monitoring and responding to customer comments
We have been measuring transaction satisfaction for several years using the internationally
established tNPS index
33
. It enables us to monitor and respond to customer feedback on a
daily basis at all the key contact points of Petrol – the entire retail network, TipStop Vianor
service workshops, the call centre and customer support, complaints, fuel oil purchases, the
Petrol Energy Centre and online shop, where customers leave their rating after purchase and
after picking up a parcel at the service station. In 2023, we received almost 30 thousand
ratings. We also extended the tNPS measurement to service stations in the Croatian market,
so we are monitoring and receiving an important response from our customers in the Croatian
market as well. In 2024, we will expand the measurement of tNPS to other Petrol contact
points, as well as to other markets where we are present.
33
tNPS – Transactional Net Promoter Score
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Assessment of tNPS at the most important contact points
Customers come into contact with Petrol mostly at service stations, followed by the Contact
Centre and customer support, fuel oil purchases, eSHOP, complaints and TipStop Vianor
service workshops. The Petrol Group thus enables customers to immediately provide feedback
on satisfaction with products, services or processes on a particular channel, and at the same
time, it can respond quickly and eliminate any problems.
Our overall tNPS index (the total score of all contact points measured), calculated on the basis
of the ratings received, shows a high level of satisfaction and has been stable over the
last few years, with 2023 being the highest in the last 5 years.
tNPS index from 2018 to 2023
Regardless of the circumstances and the difficult market conditions in the last two years, both
in the fuel market and especially in the energy commodities market, more than 80 percent of
the customers are our promoters, who express high levels of satisfaction with the friendliness
and helpfulness of employees at service stations.
We listen to the users and get to know their wishes and needs in detail
Most improvements and the development of new products and services happen in response
to different or changing customer needs. Customers participate in many improvements by
contributing to the co-creation of the offer in various ways. We invite them into focus groups,
talk in-depth with them, invite them to online forums over days or even weeks to really
understand their wants and needs, explore pain points and test ideas and prototypes at all
stages of development of a process, service or product.
Members of the Petrol Research Panel are always invited to participate, as they are our source
of inspiration for important improvements.
Petrol Research Panel members co-create Petrol’s offer and communication
The Petrol Research Panel has been active in Slovenia since 2018. We have over 4,300
members in the community. Almost every month, we invite panellists to participate in research
on various topics. In 2023, their answers helped us understand their needs even better. They
also evaluated our socially responsible campaigns such as Ski Cents, Together We Help and
the Heart for the Planet label.
Growth moderating
and satisfaction at
a high level.
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21.4 Brand loyalty – Petrol Club
In 2023, we invested a lot of energy in redesigning the Petrol Club catalogue, which offers
value-added products and strengthens loyalty to Petrol. Consumers are finding it increasingly
difficult to see the added value in the flood of loyalty programmes on the market, so we wanted
to wake up inactive members with an offer that would meet their needs so well that they would
want to join the Petrol Club on a regular basis. As the discount on energy commodities was
the main reason why customers identified with the Club, the removal of discounts due to the
energy crisis led to a decline in preference for Petrol and a decrease in Golden Point
redemption activity. One of the key objectives was therefore to retain these customers and to
shift the redemption of Golden Points from energy commodities to merchandise and services
and to increase the level of redemption of the points.
We did this based on surveys showing that club members were particularly keen to see Petrol
Club adapted to include permanent discounts and free products, and to offer a more
personalised offer with a simpler programme, a better range and easier visibility of benefits.
We redesigned the Petrol Club catalogue in 2023, including new catalogue offers. The
redesign of the Petrol Club catalogue was integrated into the broader Welcome. Go!
campaign, which puts the customer and their experience at the centre, with a single creative
platform that reinforces awareness of all the things consumers can do at the “best stop on the
road” at Petrol. With the slogans
“Welcome, Star Companions” and
“Welcome, Golden Offer”, we
communicated in the renewed Petrol
Club catalogue, in the Club’s gold colour
and with a clearly identifiable image that
can be easily linked to “Welcome”, that
the Petrol Club takes the experience of
visiting Petrol even further. The renewed
Petrol Club catalogue added the icing on
the cake with the slogan “Every purchase
Petrol Archive counts”.
We exceeded our expectations with our renewed catalogue and the addition of new,
attractive offers. In 2023, we published 8 editions of the Petrol Club catalogue and achieved
record sales through this medium, generating 27 percent more revenue than in the previous
year. By improving the range of products and communication, we increased the value of the
catalogue as a marketing channel for suppliers, partners and internal stakeholders.
The fact that we effectively compensated our customers for the discounts on energy
commodities is also reflected in the increase in the number of points redeemed and their
redemption rate. In 2023, we saw a 20 percentage-point increase in the redemption of Golden
Points compared to 2022. With the Driver offer in 2023, we attracted 14 percent of members
who last redeemed their points before 2022, and we also attracted 8 percent of members who
had never redeemed their points or who last used their club card in 2015. Increased page
views and a lower abandonment rate show that we were able to attract more members to see
and that they are interested in what we have to offer. We also strengthened our cooperation
with partners, which has helped us to broaden our customer base.
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In 2023, users were once again able to donate their Golden Points to a good cause. In January
2023, we organised a charity event, Growing Together, where Petrol Club members could
donate their Golden Points to the cause of reforestation. As a result of these activities, we
raised EUR 20 thousand for reforestation and planted ten thousand new tree seedlings.
Customers remained loyal to the Na poti app in 2023, with usage again outperforming
previous years. 9 percent more customers used the app to pay than in the year before, we saw
a 23 percent increase in payments and growth across all services and products that can be
paid for using the app. There was a 32 percent increase in coffee purchases using the app, a
20 percent increase in orders from the app’s Hip Shop offer, and a significant increase in car
wash and fuel payments. Petrol Club members were able to use the app to find out about
benefits, Star Companions and Golden Offers, and to take advantage of discounts on
purchases.
The received Marketing Excellence Award
Petrol Archive
HIGHLIGHTS:
• We redesigned the Petrol Club catalogue with the aim of increasing member loyalty and
activity with offers tailored to their needs and shifting the redemption of Golden Points away
from energy commodities and towards merchandise and services. This has led to a 27
percent increase in revenue through this medium.
• The redemption of Golden Points increased by 20 percent compared to 2022.
21.5 Petrol’s customer support and Contact Centre
Petrol’s customer support and Contact Centre provide a comprehensive and friendly service
to both physical customers and business partners. We are available all year round through a
variety of modern information and communication channels. As well as the established
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channels of telephone and email, we also use chat via social networks, mobile apps and
websites, chatbots and video calls. We regularly measure customer satisfaction using a variety
of methods and then carefully analyse the results to develop improvement actions – with the
aim of improving the quality of our customer service. We are committed to digitalising our
business, developing self-service customer channels and going paperless. This contributes to
a more sustainable business.
21.6 Customer claims and complaints handling
Customer claims, complaints and other feedback are important to Petrol as they provide the
basis for improvements in all areas of operation.
We have a system in place to manage claims and complaints in a systematic and process-
efficient way, including keeping customers informed of the progress of the claim or complaint.
The process is fully digitised, but we made several process and IT improvements in 2023. In
addition, in 2023, we focused on unifying customer support processes and standards, as well
as functional accountability across Petrol Group companies, to ensure a high level of service
across the Group.
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22. Responsibility to the natural environment
Caring for the environment is integrated into all aspects of the Petrol Group’s operation, as
demonstrated by our ISO 14001:2015 certificate for our environmental management system.
When developing business processes, along with new products and services, we always
comply with all the environmental regulations, introduce products and services that are
friendlier to the environment and pay attention to efficient energy consumption. We are taking
a number of measures to reduce our carbon footprint, use renewable energy and reduce
waste. We use our compliance assurance system to monitor and implement regulations and
get involved in their preparation. We identify the environmental aspects of our activities by
taking into account the usual and extraordinary operating requirements, as well as exceptional
circumstances, if they exist. In order to maintain the environmental management system and
effectively manage the environmental aspects, we are updating documentation in the field of
environmental protection. The Petrol Group implements its processes in such a way that they
affect the environment as little as possible.
Emissions into the air
In the Petrol Group, caring for the quality of the air chiefly involves efforts to reduce the
emissions of volatile hydrocarbons on an ongoing basis. It also stands for measures to reduce
the emissions of ozone-depleting substances and fluorinated greenhouse gases, as well as
measures to reduce greenhouse gas emissions from heat and electricity generation and
distribution.
The emissions of volatile hydrocarbons occur due to evaporation during the decanting and
storage of fuel. The process of reducing volatile hydrocarbon emissions is part of all three key
elements of the petroleum products distribution chain: storage, transport and sales. At service
stations and fuel storage facilities, we have installed systems for the closed loading of storage
tanks. In addition, we make sure to install state-of-the-art cooling, air conditioning and heating
systems and devices. We ensure the efficiency of emission control by continuously upgrading
equipment and installing new systems, in accordance with the guidelines for the best available
techniques and regular inspections by authorised contractors. We have obtained
environmental permits for all emissions into the air that are regulated by law, and we monitor
them as legally required.
Noise emissions
We carry out the operational monitoring and professional assessment of noise pollution in
individual areas to reduce the nuisance of noise and to implement certain measures for its
reduction. These activities are carried out in accordance with the Decree on limit values for
environmental noise indicators and by creating a 3D model that takes into account the
characteristics of a site: its location, land development, landform and infrastructural
characteristics, etc.
Wastewater
Petrol Group’s operations currently involve three categories of wastewater: rainwater, sewage
water and industrial wastewater. Rainwater that comes into contact with functional circulation
areas is collected separately and purified in oil and water separators. Sewage water is handled
in three ways. In built-up areas, it is channelled into a local sewage network. If a connection to
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a sewage network is not available, small treatment plants are installed. Some sites, however,
still use cesspits, which are maintained on a regular basis. At these sites, cesspits are being
discontinued according to the schedule in accordance with the legal requirements. For small
treatment plants to function efficiently, the choice of wastewater purification technology is vital,
as is the regular professional monitoring of their operation and their management. Industrial
wastewater is treated in state-of-the-art industrial treatment plants.
The results of analyses of the content and value of emissions from wastewater disposal show
that the wastewater quality at Petrol’s sites is at an appropriate level. An adequate wastewater
status is ensured by the planned and systematic installation of appropriate modern treatment
plants and technically appropriate and prescribed oil traps, and in parallel, we monitor the
consumption of cleaning agents, draw attention to care in the maintenance of cleaning devices
and the need for awareness, control and supervision by employees.
We have obtained environmental permits for all emissions into water that are regulated by law,
and we monitor them as legally required.
Waste management
In order to ensure the better utilisation of substances and energy and the generation of less
waste, thus reducing the negative impacts on soil, water, air and biodiversity, we operate in
accordance with the principles of the circular economy. In waste management, we take into
account legal and other requirements and environmental policy, which is part of our
environmental management system. When establishing new and revising old processes, we
take into account the hierarchy of waste management; we also pay special attention to waste
that can be hazardous to the environment.
Integrated waste management is one of the important areas of the sustainable development
of our Company, as it not only affects the protection of the environment but also the economics
of operations. We place great emphasis on waste prevention and the efficient separation of
waste at the source. The diversity of our activities and service stations affects the diversity of
waste that we handle and manage.
When developing own-brand products, the aspect of final waste disposal and of the packaging
and its environmental impact are also taken into account. We follow sustainability criteria for
product procurement and guidelines for product design, which will be the basis for changing
products into more sustainable ones, and will contribute to closing product life cycles in the
long run and ensure the sustainable use of resources.
Light emissions
An aspect of environmental pollution that we pay close attention to is light emissions into the
environment. These include direct or indirect inputs of artificial light into the environment, which
cause an increase in ambient light.
In addition to the rehabilitation of street lighting, we decided to dim the lighting of canopy
borders, totem signs and pylons and to turn off all unnecessary street lighting and lights in
stores at all service stations when they are closed. These measures further contribute to
reducing light pollution.
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We are aware that the excessive illumination of the environment is a serious problem. By
choosing appropriate solutions and modern lamps, with which we direct the light where it is
needed, we significantly reduced both electricity consumption and light pollution. In 2023, we
also completed the refurbishment of the price displays at the service station entries to further
reduce light pollution.
Prevention of major accidents
Petrol d.d., Ljubljana operates seven facilities posing a minor or major risk to the environment
(so-called SEVESO plants). In keeping with the Framework Safety and Security Policy, Major
Accident Prevention Concept (Petrol’s safety focus) and the Safety Management System, a
number of activities laid down in environmental risk reduction concepts, safety reports and
protection and rescue plans were carried out at the facilities in connection with major accident
prevention and the mitigation of their consequences. Our actions are chiefly geared towards
ensuring that during the planning, construction, operation, maintenance, modification or
shutdown of facilities, every possible step is taken to prevent security incidents and major
accidents and to minimise their impact. Delivering these commitments requires ongoing
coordination between organisational units and consistency between legal obligations
(legislation on the protection of the environment and water, on construction, on fire safety, on
protection against natural and other disasters, and critical infrastructure), documentation and
environmental permits issued.
Fire safety and anti-explosion protection are very important aspects of safety. They are
ensured through both statutory and preventive safety measures. These allow business
continuity and the protection of persons, the environment and property. In accordance with the
protection and rescue plans, practical fire and evacuation drills were organised in October and
November 2023, fire safety month, in Petrol’s office buildings, at service stations and at fuel
storage facilities.
In 2023, particular attention was paid in Slovenia to the continued strengthening of the
Company’s safety culture by organising training for employees, as well as by introducing safety
monitoring when hazardous works are carried out.
Despite all due diligence, minor or major security incidents can occur. In 2023, a large spill of
diesel fuel occurred at the Rače fuel storage facility. In accordance with the provisions of the
Environmental Protection Act, we implemented an environmental damage remediation
programme under the supervision of the Slovenian Environment Agency. An important activity
still underway at the site is the extraction of groundwater from wells, boreholes and
piezometers drilled in and around the spill site to reduce the amount of contaminants in the
soil and prevent their possible migration into the deep aquifer, which is a potential source of
drinking water.
HIGHLIGHTS:
• In 2023, we completed the refurbishment of the price displays at the service station entries
to further reduce light pollution.
• When a diesel fuel spill occurred at the petroleum products warehouse in Rače, we acted
quickly, carried out remediation under the supervision of the Slovenian Environment
Agency, successfully mitigated the contamination and protected drinking water through
controlled groundwater pumping.
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23. Quality control
Quality and excellence are embedded in the Petrol Group’s strategy for the 2021-2025 period,
which is why we are constantly upgrading and expanding our quality management systems.
Petrol has thus certified its quality management system (ISO 9001), environmental
management system (ISO 14001) and energy management system (ISO 50001). In addition
to the certified systems, the Company’s comprehensive quality management system
incorporates the requirements of the HACCP food safety management system, the ISO 45001
occupational health and safety system and the ISO 27001 information security system.
In the Petrol Group, ensuring high-quality products and services is a fundamental principle of
our operations. Thanks to our own expertise, experience and the introduction of best practices
into our business, we consistently maintain our status as a leading energy company in
Slovenia, which has an important impact on the development of fuels and the introduction of
new technologically advanced solutions to the Slovenian market. Our own accredited
petroleum laboratory plays an important role in this process: Petrol Laboratory. The
laboratory is accredited by Slovenian Accreditation with the accreditation number LP-002 in
the field of testing (SIST EN ISO/IEC 17025). At the end of 2023, Petrol Laboratory had 52
accredited test methods for petroleum product testing.
An inspection body accredited by Slovenian Accreditation with the accreditation number K-
040 in the field of inspection (SIST EN ISO/IEC 17020, Type C - General criteria for the
operation of various types of bodies performing inspections) also operates as part of Petrol
d.d., Ljubljana. It has 20 accredited test methods for the inspection of flow and tyre pressure
measuring devices, pressure equipment, the tightness of fixed steel reservoirs, the wall
thickness of liquid fuel reservoirs, the measurement of the dielectric strength of liquid fuel
reservoir insulation and the measurement of noise in the natural and living environment.
Petrol d.d., Ljubljana is one of the first energy companies in Europe to have received the
European quality certificate (EQTM), awarded by the European Organisation for Quality
(EOQ), for the Q Max family of fuels.
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Overview of certificates and accreditations
1
Petrol d.d., Ljubljana - Petrol Laboratory is accredited by Slovenian Accreditation with the accreditation number
LP-002 in the field of testing (SIST EN ISO/IEC 17025).
2
Petrol d.d., Ljubljana - Measurement and Environment Service is accredited by Slovenian Accreditation with the
accreditation number K-040 in the field of inspection (SIST EN ISO/IEC 17020).
3
Petrol d.d., Ljubljana is certified under the voluntary International Sustainability and Carbon Certification (ISCC)
scheme for the sustainable supply of biofuels, which means a documented and traceable path from the production
of raw materials to the final product.
4
Based on the Report on the Implementation of Accepted Commitments from the World Charter of Responsible
Environmental Management (POR), Petrol d.d., Ljubljana is the holder of the Certificate for the Responsible
Environmental Management Programme for storage, logistics and retail service stations in Slovenia and related
rights to the use of the logo.
5
Petrol d.d., Ljubljana, is the holder of the FSC certificate for the production of wood chips for thermal energy. The
FSC certificate, issued by the international non-governmental organisation Forest Stewardship Council, promotes
environmentally sound, socially beneficial and economically viable forest management.
6
The AEO certificate is issued by the Customs Administration of the Republic of Slovenia, which carries out
supervision and inspection among the recipients of the AEO certificate. This certificate facilitates access to customs
simplifications, fewer physical and documentary checks, preferential treatment in the event of controls, the
possibility of choosing a place for such controls and the possibility of prior notification. To obtain an AEO certificate,
it is necessary to meet a number of conditions and criteria: meeting security and safety standards, appropriate
records of compliance with customs requirements and a reliable system of business and transport records that
allow control and proven financial solvency.
Company
Quality
management
system
Environmental
management
system
Energy
management
system
Laboratory accreditations Other certificates
Petrol d.d., Ljubljana ISO 9001:2015 ISO 14001:2015 ISO 50001:2018
SIST EN ISO/IEC 17025:2017
1
,
SIST EN ISO/IEC 17020:2012
2
ISCC
3
, RC
4
, FSC
5
,
AEO
6
Petrol d.o.o. ISO 9001:2015 ISO 14001:2015 / / /
Petrol d.o.o. Beograd ISO 9001:2015 ISO 14001:2015 / / EN 45001
Beogas d.o.o. ISO 9001:2015 / / / /
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24. Social responsibility
In our business and social activities, we want to actively influence and help solve
environmental, social and other challenges in the environment in which we live and operate.
In 2023, we again supported a number of humanitarian, cultural, sports and environmental
projects through sponsorships and donations.
24.1 Sponsorship
The Petrol Group has been a major supporter of sport in Slovenia and in the region for a
number of years. Through sponsorship, we contribute to the development of various sports
disciplines and to the successes and development of athletes in Slovenia and the region. We
sponsor individuals, clubs, associations and sports events at the national and international
levels. By supporting sports and the arts, we strengthen our reputation and make our brands
more visible.
Petrol has a traditional presence in winter sports,
where our support for the Ski Association of Slovenia
stands out, through which we have been sponsoring
all age categories of the national teams for many
years. We are also a personal sponsor of some of the
best athletes in winter sports, including Žan Kranjec
and the promising young biathlete Lena Repinc. In
2023, we also sponsored the New Year’s Eve Girls’
Ski-Jumping Tournament in Ljubno and the FIS Ski-
Flying World Championship Finals in Planica.
Petrol Archive
The Petrol Group is no less present in summer sports. As one of the biggest sponsors, we
support the Basketball Association of Slovenia, the Football Association of Slovenia, the
Volleyball Association of Slovenia, the Tennis Association of Slovenia, the Gymnastics
Association of Slovenia and many larger and smaller clubs, including the Cedevita Olimpija
Basketball Club, the Jesenice Hockey and Skating Association, the Bravo Football club, the
Domžale Helios Suns Basketball club, the Branik Maribor Tennis club, and other smaller sports
teams.
As in the winter, we supported several major sporting events in the summertime, including the
biggest sporting event to be held in Slovenia in 2023 – the Charity Football All-Star Game and
the WTA
34
International Women’s Tennis Tournament in Ljubljana. In addition, as the largest
sponsor and thus also the name holder, we have supported the Q Max Petrol Ilirska Bistrica
Mountain Speed Race, as well as several smaller sporting events such as the Triglav Run and
the Sporto Conference.
In addition to the above-mentioned winter athletes, the Petrol Group is a personal sponsor of
the regular Dakar Rally participant and motocross rider Simon Marčič, triathlete Denis Šketak
and promising young tennis player Maša Viriant. Our presence in many sports is rounded out
by the sponsorship of the Olympic Committee of Slovenia.
34
WTA - Women’s Tennis Association
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In addition to sports sponsorships, the Petrol Group takes part in technical projects linked to
various energy and environmental activities. As a sponsor, we continued to support
conferences, symposiums and events on sustainable development, energy efficiency and e-
mobility, management, marketing and public relations in 2023 (Dani sunca 2023, 2
nd
Liver
Interventional Oncology Meeting LIO2023, My Land – Beautiful and Welcoming, BledCom
2023, Meeting of Transport Families and Transport Companies of Slovenia 2023, 17th
Strategic Conference on Trade, Charity Diplomatic Bazaar Montenegro, World Congress of
the International Police Association Antina 2023, Logistics Congress 2023, Urban Beekeeping
Exhibition on Krakovski nasip and others).
In the arts segment, we have been cooperating with the Ljubljana Festival and the Lent Festival
for many years, and we also support cultural events taking place in Ljubljana City Theatre
and Cankarjev Dom (the Magnificent season ticket).
We were also active as a regional sponsor in 2023. In Croatia, we sponsored the Croatian
Olympic Committee, the Zadar Basketball Club and the Primorje Water Polo Club. In Bosnia
and Herzegovina, we supported the “Naš Tim” ski club and the Head Academy. In Serbia, we
sponsored the “Lokomotiva” Tennis Club and the Arena Niš Football Club in 2023.
24.2 Humanitarian projects
Through the Our Energy Connects project, we helped organisations and individuals in local
communities for the 13
th
time in 2023. In the project, funds earmarked for business gifts are
given as humanitarian aid to various associations, federations, schools and other non-profit
organisations. Each service station in Slovenia proposes a humanitarian project for which we
allocate 200 euros. Through this project, we supported a total of 137 different humanitarian
projects implemented by non-profit organisations in 2023. As part of this project, we have
donated a total of more than EUR 800,000 to local humanitarian projects in thirteen years.
In the first three months of 2023, we collected Petrol’s Golden Points for humanitarian
causes. Donations from Petrol customers through Golden Points were earmarked for the
activities of the Red Noses Association and the Slovenian Forest Institute. We donated EUR
20,000 to both organisations.
Since 2011, in cooperation with the Red Cross of
Slovenia and the Institute of Transfusion Medicine
of the Republic of Slovenia, the humanitarian
campaign Donate Energy for Life has been
running throughout Slovenia, raising awareness
of the importance of blood, inviting new blood
donors and informing existing donors about
healthcare needs.
Petrol Archive
In the area of sustainability, Petrol Group employees can join the Sustainability Ambassador
Community, and we also have the Me Too! portal, which aims for the closer cooperation and
networking of employees in the area of environmental awareness and sustainable
management in the reduction of our carbon footprint. Employees are also encouraged and
required to follow guidelines for the efficient use of heating, cooling, ventilation, lighting and
electrical appliances, and the Be a Hero for Your Environment! campaign helps them to do
so.
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In 2023, employees planted 2,500 seedlings in three volunteer campaigns as part of a EUR
20,000 donation for 10,000 seedlings for the forests of Slovenia. We also completed the My
Carbon Footprint questionnaire, which was a self-assessment of how much our actions at
home and at work contribute to our carbon footprint, as well as areas where we can improve
our activities to reduce our footprint.
In June 2023, we launched the Heart for the Planet sustainability label, which we use to label
sustainable products, services and activities, making them easier for users to identify. The
label communicates that by choosing to support our fellow human beings, nature or progress,
we are actively participating in more responsible and sustainable behaviour and actions.
As part of our Family Friendly Company measures, in 2023 we also invited employees who
are parents of first-graders to share with Petrol as their employer a glimpse of the first day of
school they spent with their child instead of at work. The first-graders received a practical gift
as a thank-you for their participation.
The last week of September was spent in the spirit of social responsibility, when every
employee can give something back to society on a personal level through corporate
volunteering. Together with the coordinators, we organised 6 volunteering activities throughout
Slovenia and, for the first time, in Croatia as part of Petrol’s Corporate Volunteering Week
Giving Back to Society. A total of 51 employees participated in the activities, with Petrol
donating 102 hours of their working time and volunteers donating twice as many hours of their
free time.
In 2023, we once again extended our
helping hand to the Moste-Polje Association
of Friends of Youth. As part of Become the
Petrol’s Santa Claus campaign,
employees in Slovenia collected almost 200
New Year’s presents for children from
disadvantaged backgrounds.
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HIGHLIGHTS:
• We continue to support a wide range of humanitarian, cultural, sporting and environmental
projects.
• Since 2010, we have been working together on the Our Energy Connects project, through
which we have donated EUR 62,100 to various associations, federations, schools and
other non-profit organisations in 2023, for a total of over EUR 800,000 over 13 years.
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THE PETROL GROUP
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25. Companies in the Petrol Group
As at 31 December 2023, the Petrol Group diagram does not include inactive companies.
The Petrol Group, 31 December 2023
Fuels and
petroleum
products
Merchandise
and services
Energy and
solutions
Other
The parent company
Petrol d.d., Ljubljana
l l l l
Subsidiaries
Petrol d.o.o. (100%)
l l l l
Petrol javna rasvjeta d.o.o. (100%)
l
Adria-Plin d.o.o. (75%)
l
Petrol BH Oil Company d.o.o. Sarajevo (100%)
l l l
Petrol d.o.o. Beograd (100%)
l l l
Petrol Lumennis PB JO d.o.o. Beograd (100%)
l
Petrol Lumennis VS d.o.o. Beograd (100%)
l
Petrol Lumennis ZA JO d.o.o. Beograd (100%)
l
Petrol Lumennis ŠI JO d.o.o. Beograd (100%)
l
Petrol KU 2021 d.o.o. Beograd (100%)
l
Petrol Lumennis KI JO d.o.o. Beograd (100%)
l
Petrol Crna Gora MNE d.o.o. (100%)
l l
Petrol Trade Handelsges.m.b.H. (100%)
l
Beogas d.o.o. Beograd (100%)
l
Petrol LPG d.o.o. Beograd (100%)
l
Tigar Petrol d.o.o. Beograd (100%)
l
Petrol LPG HIB d.o.o. (100%)
l
Petrol Power d.o.o. Sarajevo (99.7518%)
l
Petrol-Energetika DOOEL Skopje (100%)
l
Petrol Bucharest ROM S.R.L. (100%)
l
Petrol Hidroenergija d.o.o. Teslić (80%)
l
Vjetroelektrane Glunča d.o.o. (100%)
l
IG Energetski Sistemi d.o.o. (100%)
l
Petrol Geo d.o.o. (100%)
l
EKOEN d.o.o. (100%)
l
EKOEN S d.o.o. (100%)
l
Zagorski metalac d.o.o. (75%)
l
Mbills d.o.o. (100%)
l
Atet d.o.o. (96%; 100% voting rights)
l
Atet Mobility Zagreb d.o.o. (100%)
l
Vjetroelektrana Ljubač d.o.o. (100%)
l
E 3, d.o.o. (100%)
l
STH Energy d.o.o. Kraljevo (80%)
l
Petrol - OTI - Terminal L.L.C. (100%)
l
Geoplin d.o.o. Ljubljana (74.34%; 74.49% voting rights)
l
Geoplin d.o.o., Zagreb (100%)
l
Geoplin d.o.o. Beograd (100%)
l
Zagorski metalac d.o.o. (25%)
l
Jointly controlled entities
Geoenergo d.o.o. (50%)
l
Soenergetika d.o.o. (25%)
l
Vjetroelektrana Dazlina d.o.o. (50%)
l
Associates
Plinhold d.o.o. (29.84%)
l
Aquasystems d.o.o. (26%)
l
Knešca d.o.o. (47.27% of the company is owned by E 3, d.o.o.)
l
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26. The parent company
PETROL, SLOVENSKA ENERGETSKA DRUŽBA, D.D., LJUBLJANA
President of the Management Board: Sašo Berger (since 23 November 2023 as President of
the Management Board; from 15 September 2023 to 22 November 2023 as Member of the
Management Board), Nada Drobne Popović (until 22 November 2023);
Members of the Management Board: Marko Ninčević (since 1 September 2023), Jože Smolič;
Matija Bitenc (until 8 December 2023), Jože Bajuk (until 2 August 2023), Member of the
Management Board, Worker Director: Zoran Gračner
E-mail: petrol.pr@petrol.si
Petrol d.d., Ljubljana was formally established on 5 June 1945 as a subsidiary of the state-
owned company Jugopetrol. Before being transformed into a private joint-stock company in
1997, Petrol operated under a variety of different organisational forms. Petrol d.d., Ljubljana’s
With its 318 service stations, it has a 58 percent share of the Slovenian retail market in
petroleum products.
In 2023, Petrol d.d., Ljubljana generated EUR 5.3 billion in revenue from contracts with
customers, which is 28 percent less than in 2022, mainly due to the higher prices of energy
commodities.
Petrol d.d., Ljubljana’s sales revenue was generated through the sale of:
• 3.3 TWh of fuels and petroleum products, down 7 percent compared to 2022,
• EUR 390.4 million of merchandise and services, up 9 percent compared to 2022,
• 1.1 TWh of natural gas to end-customers, up 29 percent compared to 2022,
• 1.9 TWh of electricity to end-customers, up 4 percent compared to 2022,
• 111.8 thousand MWh of thermal energy, down 10 percent compared to 2022,
Operating costs totalled EUR 384.5 million or 28 percent more than in 2022. The costs of
materials totalled EUR 52.5 million, up 84 percent compared to 2022, mainly due to the
increase in energy prices, most of which was leased in 2022 when the energy commodity
prices were very high. The costs of services stood at EUR 145.8 million, an increase of 7
percent over the year before. Labour costs stood at EUR 105.0 million, an increase of 28
percent over the year before. Depreciation and amortisation totalled EUR 46.4 million, on a
par with the previous year. Other costs amounted to EUR 34.7 million.
Other operating revenue stood at EUR 7.2 million, which was 11 percent more than in 2022.
The net derivative financial instruments totalled EUR 55.2 million or 81.4 million more than in
2022.
The company’s operating profit totalled EUR 115.4 million, an increase of EUR 97.5 million
from 2022.
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Finance income from dividends paid by subsidiaries, associates and jointly controlled entities
stood at EUR 3.8 million, an increase of EUR 2.1 million compared to 2022. Its net finance
expense for 2023 totalled EUR –10.8 million.
Profit before tax totalled EUR 108.4 million or EUR 90.5 million more than in 2022. The net
profit of Petrol d.d., Ljubljana for the year 2023 stood at EUR 92.8 million, up 73.4 million
compared to 2022.
The total assets of Petrol d.d., Ljubljana as at 31 December 2023 equalled EUR 2.0 billion,
which was 6 percent less compared to the end of the previous year. Of this, non-current assets
amounted to EUR 1.2 billion, which is 2 percent less than on 31 December 2022. Current
assets amounted to EUR 820.0 million, which is 11 percent less than on 31 December 2022.
The equity of Petrol d.d., Ljubljana as at 31 December 2023 equalled EUR 618.6 million, which
was 3 percent more than at the end of 2022.
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27. Subsidiaries
THE PETROL ZAGREB GROUP
President of the Management Board of the parent company Petrol d.o.o.: Simona Kostrevc;
Members of the Management Board: Vladimir Kuzmič, Niko Knez; Procuration Holder of the
parent company: Jože Smolič
E-mail: simona.kostrevc@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol d.o.o. is the sole owner of Petrol javna rasvjeta d.o.o. and a 75 percent owner of Adria-
Plin d.o.o. The Petrol Zagreb Group is active in the Croatian market in the sale of fuels and
petroleum products, merchandise and services, and energy and solutions.
In 2023, the Petrol Zagreb Group sold 1,120.9 thousand tonnes of fuels and petroleum
products, down 8 percent on the previous year, and EUR 152.4 million of merchandise and
services. In 2023, the Petrol Zagreb Group as a whole generated EUR 1,179.1 million in
revenue from contracts with customers, down 21 percent from 2022. Its operating profit stood
at EUR 28.0 million in 2023, an increase of EUR 30.0 million from the previous year. The
Group’s net profit for 2023 totalled EUR 19.9 million, an increase of EUR 24.2 million from
2022. The Petrol Zagreb Group operated 202 service stations at the end of 2023. The group’s
equity totalled EUR 261.6 million as at 31 December 2023.
PETROL BH OIL COMPANY D.O.O. SARAJEVO
General Manager: Gregor Žnidaršič; Procuration Holder: Bojan Košir
E-mail: gregor.znidarsic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is selling fuels and petroleum products, merchandise and
services in Bosnia and Herzegovina.
In 2023, the company sold 181.1 thousand tonnes of fuels and petroleum products, down 5
percent on the previous year. In 2023, Petrol BH Oil Company d.o.o. Sarajevo generated
EUR 170.6 million in revenue from contracts with customers, down 31 percent from 2022. Its
operating profit stood at EUR 3.2 million in 2023, a decrease of EUR 0.7 million from the
previous year. The company’s net profit for 2023 totalled EUR 3.3 million, a decrease of EUR
0.5 million from 2022. Petrol BH Oil Company d.o.o. Sarajevo operated 42 service stations at
the end of 2023. The company’s equity totalled EUR 76.3 million as at 31 December 2023.
THE PETROL BEOGRAD GROUP
General Managers of the parent company: Uroš Bider, Miljko Vlačić; Procuration Holder: Aleš
Zupančič
E-mail: uros.bider@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
In 2020, Petrol d.o.o., Beograd became the sole owner of Petrol Lumennis PB JO d.o.o.
Beograd and Petrol Lumennis VS d.o.o. Beograd, and in 2021, the sole owner of Petrol
Lumennis ZA JO d.o.o., Petrol Lumennis ŠI JO d.o.o., Petrol KU 2021 d.o.o. and Petrol
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Lumennis KI JO d.o.o., which are engaged in public lighting projects in Serbia. The Petrol
d.o.o. company’s principal activity is selling fuels and petroleum products, merchandise and
services in Serbia.
The volume of fuels and petroleum products sold in 2023 totalled 109.2 thousand tonnes, down
3 percent from the previous year. In 2023 the Petrol Beograd Group as a whole generated EUR
108.9 million in revenue from contracts with customers, down 18 percent from 2022. Its
operating profit stood at EUR 3.9 million in 2023, at the same level as in 2022. The group’s net
profit for 2023 totalled EUR 3.5 million, up 8 percent on the previous year. Petrol d.o.o. Beograd
operated 17 service stations at the end of 2023. The group’s equity totalled EUR 38.0 million
as at 31 December 2023.
PETROL CRNA GORA MNE D.O.O.
General Manager: Tadej Zorjan; Procuration Holder: Ignac Rupar
E-mail: tadej.zorjan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is selling fuels and petroleum products, merchandise and
services in Montenegro.
The volume of fuels and petroleum products sold in 2023 totalled 52.3 thousand tonnes, up 4
percent from the previous year. In 2023 Petrol Crna Gora MNE d.o.o. generated EUR 63.1
million in revenue from contracts with customers, down 16 percent from the year before. Its
operating profit stood at EUR 1.9 million in 2023. Its net profit for 2023 totalled EUR 1.6 million.
Petrol Crna Gora MNE d.o.o. operated 15 service stations at the end of 2023. The company’s
equity totalled EUR 24.9 million as at 31 December 2023.
THE GEOPLIN GROUP
Director-General of the parent company: Matija Bitenc, Director of the parent company Simon
Urbancl (since 1 October 2023), Jože Bajuk (until 2 August 2023)
E-mail: matija.bitenc@geoplin.si
Ownership interest of Petrol d.d., Ljubljana: 74.34% (74.49% of voting rights)
The company’s principal activity is supplying, trading, representing and brokering on the
natural gas market. To be able to ensure supply, it has appropriate and diversified procurement
sources at its disposal, as well as transport and storage facilities. The Geoplin Group consists
of the parent company Geoplin d.o.o. Ljubljana and its subsidiaries Geoplin d.o.o. Zagreb and
Geoplin d.o.o. Beograd, which are wholly owned by the parent company, as well as Zagorski
metalac d.o.o., which is 25 percent owned by the parent company. Geocom was merged into
Geoplin d.o.o. Ljubljana on 13 July 2023. In 2023, the company’s focus was mainly on carrying
out and developing its principal activity of marketing and trading in natural gas. To this end,
the company developed a trading infrastructure to support the optimisation of its procurement
and sales portfolio, as well as its expansion to new markets. Together with efficient energy
consumption and RES projects, it also continued to develop and market energy solutions.
In 2023, the Geoplin Group sold 14.5 TWh of natural gas, generating EUR 1,010.3 million in
revenue from contracts with customers. Its operating profit stood at EUR 12.6 million. The
group’s net profit for 2023 totalled EUR 2.7 million. The net profit attributable to Petrol d.d.,
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Ljubljana amounted to EUR 2.0 million. The group’s equity totalled EUR 117.5 million as at 31
December 2023.
BEOGAS D.O.O. BEOGRAD
General Manager: Uroš Bider; Procuration Holder: Aleš Gruden (since 13 September 2023),
Primož Kramer (until 12 September 2023)
E-mail: uros.bider@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
Beogas d.o.o. Beograd is engaged in financing, designing and constructing distribution
pipelines, but it also distributes natural gas in the Belgrade municipalities of Čukarica, Palilula
and Voždovac, as well as in Bačka Topola. Beogas d.o.o. Beograd is the owner of 525.4 km
of gas distribution network and 14,181 active gas connections.
In 2023, the company sold 378.1 thousand MWh of natural gas, up 5 percent on the previous
year. In 2023, it generated EUR 17.1 million in revenue from contracts with customers, up 25
percent on the previous year. The company’s operating profit stood at EUR 1.2 million in 2023,
which is on a par with 2022. The company’s net profit for 2023 totalled EUR 1.2 million, up 5
percent on the previous year. The company’s equity totalled EUR 23.7 million as at 31
December 2023.
THE PETROL LPG GROUP
General Managers of the parent company: Miljko Vlačić, Uroš Bider
E-mail: miljko.vlacic@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol LPG d.o.o. is the sole owner of Tigar Petrol d.o.o. The companies sell liquefied
petroleum gas in Serbia. It also fully owns Petrol LPG HIB d.o.o., which sells liquefied
petroleum gas in Bosnia and Herzegovina.
In 2023, the Petrol LPG Group sold 50,8 thousand tonnes of liquefied petroleum gas, down 10
percent on the previous year. In 2023, it generated EUR 33.1 million in revenue from contracts
with customers, a year-on-year decrease of 32 percent. The company’s operating loss for 2023
totalled EUR 0.8 million, a decrease of EUR 2.1 million from 2022. The group’s net loss for
2023 totalled EUR 0.7 million, which was EUR 1.9 million less than in the previous year. The
group’s equity totalled EUR 10.9 million as at 31 December 2023.
PETROL GEO D.O.O.
General Manager: Štefan Hozjan; Procuration Holder: Borut Bizjak
E-mail: stefan.hozjan@petrol.eu
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is oil and gas production services.
In 2023, Petrol Geo d.o.o. generated EUR 2.1 million in revenue from contracts with customers.
The company’s operating profit stood at EUR 1.1 million in 2023, a decrease of EUR 0.5 million
from the previous year. The main reason for the lower revenue is the fall in stock market prices.
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The company’s net profit for 2023 totalled EUR 0.9 million, a year-on-year decrease of EUR
0.2 million. The company’s equity totalled EUR 4.2 million as at 31 December 2023.
IG ENERGETSKI SISTEMI D.O.O.
General Manager: Barbara Jama Živalič
E-mail: barbara.jama-zivalic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s equity totalled EUR 15.9 million as at 31 December 2023.
PETROL-TRADE HANDELSGESELLSCHAFT M.B.H.
General Manager: Marko Malgaj; Procuration Holder: Tomaž Slavec
E-mail: marko.malgaj@petrol-trade.at
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol-Trade Handelsgesellschaft m.b.H sells petroleum products in Austria and neighbouring
countries.
In 2023, the company sold 133.8 thousand tonnes of fuels and petroleum products. It
generated EUR 112.4 million in revenue from contracts with customers, down 30 percent from
2022. Its operating profit stood at EUR 0.6 million. The net profit of Petrol-Trade
Handelsgesellschaft m.b.H. stood at EUR 1.4 million in 2023, which was 53 percent more than
in 2022. The company’s equity totalled EUR 2.9 million as at 31 December 2023.
VJETROELEKTRANE GLUNČA D.O.O.
General Managers: Borut Bizjak, Tomislav Benković
E-mail: borut.bizjak@petrol.si; tomislav.benkovic@petrol.hr
Ownership interest of Petrol d.d., Ljubljana: 100%
The company is engaged in electricity generation. The company owns a 20.7 MW wind farm
in the Šibenik area.
In 2023, the company generated EUR 5.6 million in revenue from contracts with customers, its
net profit totalling EUR 1.1 million. The company’s equity totalled EUR 13.8 million as at 31
December 2023.
PETROL HIDROENERGIJA D.O.O., TESLIĆ
General Manager: Aleš Weiss; Procuration Holder Borut Bizjak
E-mail: ales.weiss@petrol.si; borut.bizjak@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 80%
The company is engaged in electricity generation.
In 2023, the company generated EUR 3.3 million in revenue from contracts with customers. Its
net profit for 2023 totalled EUR 2.5 million. The net profit attributable to Petrol d.d., Ljubljana
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amounted to EUR 2.0 million. The company’s equity totalled EUR 8.8 million as at 31
December 2023.
PETROL POWER D.O.O.
General Manager: Aleš Weiss; Procuration Holder: Borut Bizjak
E-mail: ales.weiss@petrol.si; borut.bizjak@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 99.7518%
The company generates and distributes electricity.
In 2023, the company generated EUR 2.6 million in revenue from contracts with customers. Its
net profit for 2023 totalled EUR 1.4 million. The net profit attributable to Petrol d.d., Ljubljana
amounted to EUR 1.4 million. The company’s equity was EUR –0.6 million as at 31 December
2023.
MBILLS D.O.O.
General Manager: Leon Stare
E-mail: leon.stare@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company operates under the Petrol mBills brand, which stands for paperless and cashless
payments.
In 2023, the company generated EUR 3.3 million in revenue from contracts with customers. Its
net loss for 2023 was EUR 1.0 million. The company’s equity totalled EUR 2.5 million as at 31
December 2023.
EKOEN D.O.O.
General Manager: Igor Jogan; Procuration Holder: Zoran Gračner
E-mail: igor.jogan@petrol.si
Ownership interest of Petrol d. d., Ljubljana: 100%
The company’s principal activity is to generate and distribute heat from renewable sources.
In 2023, Ekoen d.o.o. generated EUR 0.7 million in revenue from contracts with customers. Its
net loss for 2023 totalled EUR 10.9 thousand. The company’s equity totalled EUR 0.7 million
as at 31 December 2023.
EKOEN S D.O.O.
General Manager: Igor Jogan; Procuration Holder: Zoran Gračner
E-mail: igor.jogan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is to generate and distribute heat from renewable sources.
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In 2023, the company generated EUR 65.6 thousand in sales revenue. Its net profit for 2023
was EUR 5.7 thousand. The company’s equity totalled EUR 16.2 thousand as at 31 December
2023.
ZAGORSKI METALAC D.O.O.
General Manager: Zdravko Čulig; Procuration Holder: Aleš Gruden
E-mail: zculig@zagorski-metalac.hr
Ownership interest of Petrol d.d., Ljubljana: 75% Geoplin d.o.o. Ljubljana: 25%
The company is engaged in natural gas distribution and supply, as well as in distribution
pipeline maintenance, design and construction. The company distributes natural gas in Zagreb
County and in Krapina-Zagorje County. It has a widespread gas distribution network, through
which it supplied gas to over 23,385 end-customers at the end of 2023.
In 2023, it sold 232.3 million KWh of natural gas and distributed 261.7 million KWh of natural
gas. In 2023, the company generated EUR 14.3 million in revenue from contracts with
customers. Its net loss for 2023 was EUR 5.6 thousand. The company’s equity totalled EUR
8.8 million as at 31 December 2023.
E 3, D.O.O.
General Manager: Jože Smolič; Procuration Holder: Miha Vrbinc
E-mail: joze.smolic@petrol.si; miha.vrbinc@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The main activities of the company are the supply of electricity, the electricity generation from
renewable sources and cogeneration, activities related to efficient energy use and the supply
of steam and hot water.
In 2023, E 3, d.o.o. sold 1.2 TWh of electricity and 7.4 thousand MWh of heat and generated
2.7 thousand MWh of electricity. In 2023, it generated EUR 177.5 million in revenue from
contracts with customers. Its operating profit stood at EUR 11.8 million. Its net profit for 2023
was EUR 10.3 million. The company’s equity totalled EUR 22.9 million as at 31 December
2023.
PETROL-ENERGETIKA DOOEL SKOPJE
General Manager: Rade Ristić (since 29 August 2023), Domen Dimc (until 28 August 2023)
E-mail: rade.ristic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company has a valid electricity trading licence. The company has a valid licence to operate
in the electricity trade.
In 2023, the company generated EUR 14.5 thousand in revenue from contracts with
customers. Its net profit for 2023 was EUR 1.0 thousand. The company’s equity totalled EUR
0.1 million as at 31 December 2023.
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PETROL BUCHAREST ROM S.R.L.
General Manager: Rade Ristić (since 17 August 2023), Domen Dimc (until 16 August 2023)
E-mail: rade.ristic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s activities include trading, generating, transmitting and distributing electricity.
In 2023, the company generated EUR 30.2 thousand in revenue from contracts with
customers. Its net profit for 2023 was EUR 105.3 thousand and equity EUR 36.0 thousand as
at 31 December 2023.
VJETROELEKTRANA LJUBAČ D.O.O.
General Managers: Borut Bizjak, Tomislav Benković, Slaven Tudić
E-mail: borut.bizjak@petrol.si; tomislav.benkovic@petrol.hr
Ownership interest of Petrol d.d., Ljubljana: 100%
The company is engaged in electricity generation.
In 2023, the company generated EUR 4.4 million in revenue from contracts with customers
and a net profit of EUR 0.6 million. The company’s equity totalled EUR 8.8 million as at 31
December 2023.
ATET GROUP
General Managers of the parent company: Robert Surina (since 5 January 2023), Tomaž
Novak (since 3 March 2023), Matevž Kustec (until 2 March 2023)
E-mail: robert.surina@petrol.si
Ownership interest of Petrol d.d., Ljubljana for the 2023 financial year: 96% (100% of voting
rights)
In December 2019, Petrol d.d., Ljubljana acquired a 72.96 percent interest in Atet d.o.o. On 12
January 2023, Petrol d.d., Ljubljana, acquired a further 23.04 percent interest in Atet d.o.o.
and became its 96 percent owner (100 percent of voting rights). The company’s principal
activity is the rental and leasing of cars and light motor vehicles (short-term rental of vehicles,
transport activities with a driver, and ancillary mobility services). Atet d.o.o. is the sole owner
of Atet Mobility Zagreb d.o.o.
In 2023, the Atet Group generated EUR 4.0 million in revenue from contracts with customers.
Its net profit for 2023 was EUR 169.7 thousand. The net profit attributable to Petrol d.d.,
Ljubljana amounted to EUR 162.9 thousand and equity to EUR 2.7 million as at 31 December
2023.
STH ENERGY D.O.O. KRALJEVO
General Manager: Nikola Kapor (since 29 September 2023), Aleš Weiss (until 28 September
2023).
E-mail: nikola.kapor@petrollpg.rs
Ownership interest of Petrol d.d., Ljubljana: 80%
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The principal activity of the company is electricity generation.
In 2023, the company generated EUR 493.7 thousand in revenue from contracts with
customers. Its net profit for 2023 totalled EUR 177.9 thousand. The net profit attributable to
Petrol d.d., Ljubljana was EUR 142.3 thousand. The company’s equity totalled EUR 767.6
thousand as at 31 December 2023.
PETROL-OTI-TERMINAL L.L.C.
General Manager: Anton Figek
E-mail: anton.figek@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s equity totalled EUR 8.7 million as at 31 December 2023.
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28. Jointly controlled entities
GEOENERGO D.O.O.
General Managers: Verena Zidar, Peter Hrastar (since 8 March 2023)
E-mail: verena.zidar@nafta-lendava.si, peter.hrastar@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 50%
The company holds concession rights for the extraction of mineral resources, crude oil, natural
gas and gas condensate in the area of the Mura Depression. Its net loss for 2023 was EUR
2.3 million. The net loss for 2023 attributable to the Petrol Group totalled EUR
1.6 million. The company’s equity totalled EUR –2.4 million as at 31 December 2023.
SOENERGETIKA D.O.O.
General Manager: Aleš Ažman
E-mail: ales.azman@elektro-gorenjska.si
Ownership interest of Petrol d.d., Ljubljana: 25%
The company’s principal activity is the cogeneration of heat and electricity. Its net profit for
2023 was EUR 179.9 thousand. The net profit for 2023 attributable to the Petrol Group totalled
EUR 44.9 thousand. The company’s equity totalled EUR 1.3 million as at 31 December 2023.
VJETROELEKTRANA DAZLINA D.O.O.
General Managers: Borut Bizjak, Slaven Tudić
E-mail: borut.bizjak@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 50%
The company’s activity is electricity generation from wind energy, which will be started in 2024.
Its net loss for 2023 was EUR 284.0. The net loss for 2023 attributable to the Petrol Group
totalled EUR 142.0. The company’s equity totalled EUR –2.1 thousand as at 31 December
2023.
29. Associates
AQUASYSTEMS D.O.O.
Ownership interest of Petrol d.d., Ljubljana: 26%
Activities: The construction and operation of industrial and municipal water treatment plants –
the central waste treatment plant in Maribor
PLINHOLD D.O.O.
Ownership interest of Petrol d.d., Ljubljana: 29.84%
Activities: Management of gas infrastructure
KNEŠCA D.O.O.
Ownership interest of E 3, d.o.o.: 47.27%
Activities: Electricity generation
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FINANCIAL REPORT
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Table of Contents
Statement of the Management Board’s Responsibility ........................................................ 186
Independent auditor’s report ............................................................................................... 187
Financial statements of the Petrol Group and Petrol d.d., Ljubljana .................................... 200
Notes on the financial statements ....................................................................................... 206
1. Reporting entity ..................................................................................................... 206
2. Basis of preparation ............................................................................................... 206
3. Material accounting policy information ................................................................... 210
4. Segment reporting ................................................................................................. 228
5. Notes on individual items in the financial statements ............................................. 230
5.1 Business combinations ................................................................................... 230
5.2 Changes within the Group ............................................................................... 230
5.3 Revenue from contracts with customers .......................................................... 231
5.4 Costs of materials ........................................................................................... 232
5.5 Costs of services ............................................................................................. 233
5.6 Labour costs ................................................................................................... 233
5.7 Depreciation and amortisation ......................................................................... 234
5.8 Other costs...................................................................................................... 235
5.9 Gain/(Loss) on derivatives ............................................................................... 235
5.10 Interests and dividends ................................................................................... 235
5.11 Finance income and expenses ........................................................................ 236
5.12 Income tax expenses ...................................................................................... 236
5.13 Earnings per share .......................................................................................... 239
5.14 Other comprehensive income.......................................................................... 240
5.15 Intangible assets ............................................................................................. 240
5.16 Right-of-use assets ......................................................................................... 245
5.17 Property, plant and equipment ........................................................................ 246
5.18 Investment property ........................................................................................ 248
5.19 Investments in subsidiaries ............................................................................. 249
5.20 Investments in jointly controlled entities .......................................................... 255
5.21 Investments in associates ............................................................................... 257
5.22 Financial assets at fair value through other comprehensive income ................ 258
5.23 Non-current loans............................................................................................ 259
5.24 Non-current operating receivables .................................................................. 260
5.25 Inventories ...................................................................................................... 260
5.26 Current loans .................................................................................................. 261
5.27 Current operating receivables ......................................................................... 262
5.28 Contract assets ............................................................................................... 262
5.29 Financial assets at fair value through profit or loss .......................................... 263
5.30 Prepayments and other assets ........................................................................ 263
5.31 Cash and cash equivalents ............................................................................. 263
5.32 Equity .............................................................................................................. 264
5.33 Provisions for employee post-employment and other long-term benefits ......... 267
5.34 Other provisions .............................................................................................. 269
5.35 Deferred income ............................................................................................. 271
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5.36 Borrowings and other financial liabilities .......................................................... 272
5.37 Lease liabilities ................................................................................................ 274
5.38 Non-current operating liabilities ....................................................................... 274
5.39 Current operating liabilities .............................................................................. 275
5.40 Commodity derivative instruments .................................................................. 275
5.41 Contract liabilities ............................................................................................ 276
5.42 Other liabilities ................................................................................................ 276
6. Financial instruments and risk management .......................................................... 277
6.1 Credit risk ........................................................................................................ 277
6.2 Liquidity risk .................................................................................................... 281
6.3 Foreign exchange risk ..................................................................................... 284
6.4 Price and volumetric risk ................................................................................. 287
6.5 Interest rate risk .............................................................................................. 288
6.6 Capital adequacy management ....................................................................... 291
6.7 Carrying amount and fair value of financial instruments .................................. 292
6.8 Environmental and climate risks ...................................................................... 297
7. Related party transactions ..................................................................................... 300
8. Contingent liabilities ............................................................................................... 303
9. Events after the reporting date ............................................................................... 303
10. Financial statements of Petrol d.d., Ljubljana by activity in accordance with the
Electricity Supply Act, the Gas Supply Act and the Heat Supply from Distribution Systems
Act .............................................................................................................................. 304
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STATEMENT OF THE MANAGEMENT BOARD’S RESPONSIBILITY
The Company’s Management Board is responsible for the preparation and fair presentation of
the financial statements of the Petrol Group and Petrol d.d., Ljubljana, for the year ended
31 December 2023, including the related policies and notes, which, in its opinion, give a true
and fair view of the development and results of operations and the financial position of the
Company, together with a description of the principal risks to which the Company and other
companies included in the consolidated financial statements, taken as a whole, are exposed.
The Management Board confirms that the appropriate accounting policies have been applied
consistently in the preparation of the financial statements, that the accounting estimates have
been made on the basis of fair value, prudence and good governance, and that the financial
statements give a true and fair view of the state of affairs of the Group and the Company and
the results of their operations for the year ended 31 December 2023.
The Management Board is also responsible for keeping proper accounting records, for taking
reasonable precautions to safeguard property and other assets, and for certifying that the
financial statements, including the notes thereto, have been prepared on a going concern basis
and in accordance with the applicable law and International Financial Reporting Standards as
adopted by the European Union.
The Management Board accepts and approves the financial statements of the Petrol Group
and Petrol d.d., Ljubljana, including the related policies and notes, for the year ended on
31 December 2023.
The tax authorities may audit the Company’s operations at any time within five years of the
end of the year in which the tax was due. This may result in additional liabilities for tax, interest
and penalties from corporate income tax (CIT) or other taxes and duties. The Company’s
Management Board is not aware of any circumstances that could give rise to a material liability
in this respect.
Sašo Berger Drago Kavšek
President of the Management Board Member of the Management Board
Marko Ninčević Jože Smolič
Member of the Management Board Member of the Management Board
Metod Podkrižnik Zoran Gračner
Member of the Management Board Member of the Management Board, Worker
Director
Petrol d.d., Ljubljana, Dunajska cesta 50, 1000 Ljubljana, Slovenia
Ljubljana, 11 April 2024
_____________________________________________________________________________________________________
PricewaterhouseCoopers d.o.o.,
Cesta v Kleče 15, SI-1000 Ljubljana, Slovenia
T: +386 (1)5836 000, F:+386 (1) 5836 099, www.pwc.com/si
Matriculation No.: 5717159, VAT No.: SI35498161
The company is entered into the company register at Ljubljana District Court under Insert no. 12156800 per resolution Srg. 200110427 dated 19 July 2001 and into the
register of audit companies at the Agency for Public Oversight of Auditing under no. RD-A-014/94. The registered share capital is EUR 34,802. The list of employed
auditors with valid licenses is available at the company’s registered office.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
Independent Auditor’s Report
To the Shareholders of Petrol d.d., Ljubljana
Report on the audit of the consolidated and separate financial statements
Our opinion
In our opinion, the consolidated and separate financial statements present fairly, in all material
respects, the consolidated and separate financial position of Petrol d.d., Ljubljana (the “Company”)
and its subsidiaries (together – the “Group”) as at 31 December 2023, and the Group’s consolidated
and the Company’s separate financial performance and consolidated and separate cash flows for the
year then ended in accordance with International Financial Reporting Standards as adopted by the
European Union.
Our opinion is consistent with our additional report to the Audit Committee of Petrol d.d. dated 15 April
2024.
What we have audited
The Group’s consolidated and the Company’s separate financial statements comprise:
● the consolidated and separate statements of profit or loss for the year ended 31 December 2023;
● the consolidated and separate statements of other comprehensive income for the year ended 31
December 2023;
● the consolidated and separate statements of financial position as at 31 December 2023;
● the consolidated and separate statements of changes in equity for the year then ended;
● the consolidated and separate statements of cash flows for the year then ended; and
● the notes to the consolidated and separate financial statements, comprising material accounting
policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and Regulation
(EU) No. 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific
requirements regarding statutory audit of public-interest entities (the “Regulation”). Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the
consolidated and separate financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
2
Independence
We are independent of the Group and the Company in accordance with International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants (IESBA Code) and with the ethical requirements
that are relevant to our audit of the consolidated and separate financial statements in Slovenia. We
have fulfilled our other ethical responsibilities in accordance with those requirements and with the
IESBA Code.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to
the Company and its subsidiaries are in accordance with the applicable law and regulations in
Slovenia and that we have not provided non-audit services that are prohibited under Article 5(1) of the
Regulation.
The non-audit services that we have provided to the Company and its subsidiaries in the period from 1
January 2023 to 31 December 2023 are disclosed in the note 5.5 to the consolidated and separate
financial statements.
Our audit approach
Overview
● Overall materiality for the consolidated financial statements of the
Group: EUR 14,906 thousand, which represents approximately
2.2% of Gross profit (Revenue from contracts with customers
minus Cost of goods sold) of the Group.
● Overall materiality for the separate financial statements of the
Company: EUR 9,629 thousand, which represents approximately
2.2% of Gross profit (Revenue from contracts with customers
minus Cost of goods sold) of the Company.
● We conducted audit work at 8 companies/groups of related
companies in 3 countries.
● Our audit scope addressed 90.5% of the Group’s absolute value
of net profit for the year and 94% of Revenue from contracts with
the customers for the year.
● Impairment of investments in subsidiaries in the separate financial
statements and impairment of goodwill in the consolidated
financial statements.
● Recognising gain and loss from derivatives in the consolidated and
separate financial statements.
Materiality
Group
scoping
Key audit
matters
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
3
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated and separate financial statements. In particular, we considered
where management made subjective judgements; for example, in respect of significant accounting
estimates that involved making assumptions and considering future events that are inherently
uncertain. As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters, consideration of whether there was evidence of bias that
represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance whether the consolidated and separate financial statements are free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated and separate financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group and the Company materiality for the consolidated and separate financial
statements as a whole as set out in the table below. These, together with qualitative considerations,
helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, if any, both individually and in aggregate on
the consolidated and separate financial statements as a whole.
Overall Group and Company
materiality
The Group: EUR 14,906 thousand
The Company: EUR 9,629 thousand
How we determined it
● The Group: approximately 2.2% of Gross profit (Revenue from
contracts with customers minus Cost of goods sold) of the Group.
● The Company: approximately 2.2% of Gross profit (Revenue from
contracts with customers minus Cost of goods sold) of the
Company.
Rationale for the materiality
benchmark applied
We chose Gross profit (Revenue from contracts with customers minus
Cost of goods sold) as the benchmark because, in our view, it is the
benchmark against which the performance of the Group and Company
is most commonly measured by users and is a generally accepted
benchmark. We chose the 2.2% threshold, which is within the range of
acceptable quantitative materiality thresholds for this benchmark.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated and separate financial statements of the current period. These matters
were addressed in the context of our audit of the consolidated and separate financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
4
Key audit matter How our audit addressed the key audit matter
Impairment of investments in subsidiaries in
separate financial statements and impairment of
goodwill in consolidated financial statements
See Note 3.a Material accounting policy information
– Subsidiaries, Note 3j2 Material accounting policy
information – Impairment-Non financial assets –
Impairment of investments in subsidiaries and Note
3.e Material accounting policy information–
Intangible assets – Goodwill.
The total value of investments in subsidiaries as at
31 December 2023 is disclosed in Note 5.19 in the
separate financial statements – Investments in
subsidiaries, and amounts to EUR 555,292,232; the
total value of goodwill as at 31 December 2023 is
disclosed in Note 5.15 in the consolidated financial
statements – Intangible assets, and amounts to
EUR 160,702,673.
Investments in subsidiaries and goodwill are
considered to be key audit matters due to:
● the complexity of the assessments made
by the management based on the
discounted future cash flows,
● the importance of subjective judgements
and assessments used by the
management, and
● the impact of the ever-changing operations
in the industry in which the subsidiaries, for
which investments are shown or to which
goodwill relates, operate.
Group/Company applied value in use to determine
recoverable amount.
Our audit approach included audit procedures,
including:
● Discussion with management to
understand the basis for assumptions
used.
● Assessing whether the recoverable
amount calculated as Value in Use (ViU)
is appropriately determined in accordance
with requirements of IAS 36.
● Assessing and testing key assumptions
used in the impairment tests, such as
growth rates, income and expenses in
determining cash flows ,EBITDA margin,
which are used in cash flows, and
assumptions used to determine discount
rates including inflation rates.
● Assessing the methodologies used in
valuations. We assess that the Value in
Use (ViU) method used was consistent
with the requirements of applicable
IFRSs.
● Testing the mathematical accuracy of the
valuation calculations.
● Assessing the suitability of the
disclosures in consolidated and separate
financial statements in relation to the
performed impairment tests for
investments in subsidiaries and goodwill.
We also included an asset valuation expert in our
audit team who helped us assess the
methodology used and the use of discount rates.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
5
Key audit matter How our audit addressed the key audit matter
Recognising gain and loss from derivatives in
consolidated and separate financial statements
See Note 3.c3 Material accounting policy
information – Financial assets at fair value through
profit or loss and 3.c4- Derivative financial
instruments..
The total of Gain from derivatives in 2023 is
disclosed in Note 5.9 Gain/(Loss) from derivates
and amounts to:
● EUR 207,169,670 of Gain from derivatives for
the Group and
● EUR 207,414,533 of Gain from derivatives for
the Company.
The total Loss from derivatives in 2023 is disclosed
in Note 5.9 Gain/(Loss) from derivatives and
amounts to:
● EUR 153,888,518 of Loss from derivatives for
the Group and
● EUR 152,231,444 of Loss from derivatives for
the Company.
Recognising gains and losses from derivatives is
considered to be key audit matter due to:
● the significant changes in prices of goods
and changes interest rate in 2023,
● the complicated application of International
Financial Reporting Standard 9 – Financial
Instruments (hereinafter: IFRS 9),
● the specifics of the valuation of derivatives,
the importance of subjective judgements and
assessments of the management in differentiating
between a contract based on the requirements of
IFRS 9, which is treated as a derivative at fair
value, and a contract for “own use” that is not
measured at fair value and the related subjective
judgement regarding the classification in the
financial statements and the related valuation of
open positions as at 31 December 2023.
Our audit approach included audit procedures,
including:
● Assessing the environment of the IT
systems related to the recording of
derivatives transactions, as well as other
relevant systems that support the
accounting of related income and
expenses.
● Assessing the design of the processes
established for the accounting of
derivatives transactions and on sample
basis testing their operational
effectiveness all the way to the general
ledger entry level.
● On a sample basis we tested underlying
documentation (such as contracts and
settlement documents) supporting
derecognition of derivatives and
recognition of gain/loss in the
consolidated and separate financial
statements.
● On a sample basis we tested the
appropriateness of valuation of
derivatives and recognition of gain/loss in
the consolidated and separate financial
statements.
● Assessing the accuracy and
completeness of presentation and
disclosures in the consolidated and
separate financial statements.
In our audit team, we also included an expert for
IFRS 9 who assisted us with the accounting
treatment of derivatives and the related valuation
of open positions as at 31 December 2023.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
6
How we tailored our Group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operates.
The Group engagement team carried out audit work on the Company’s separate financial statements.
The Group engagement team determined Group audit materiality and issued audit instructions to
component auditors, constantly through the year discussed important audit matters, and reviewed the
work of component auditors.
Reporting on other information including the Business Report
Management is responsible for the other information. The other information comprises the
“Introduction”, “Business Report”, “Sustainable Development” and “Petrol Group” (jointly referred to as:
“Business Report”) which are a constituent part of the Annual Report of the Group and the Company
(but does not include the consolidated and separate financial statements and our auditor’s report
thereon).
Our opinion on the consolidated and separate financial statements does not cover the other
information, including the Business Report and except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is
to read the other information identified above and, in doing so, consider whether the other information
is materially inconsistent with the consolidated and separate financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
With respect to the Business Report we also performed procedures required by the Slovenian
Companies Act. Those procedures include assessing whether the Business Report is consistent with
the consolidated and separate financial statements and whether the Business Report was prepared in
accordance with valid legal requirements.
Based on the work undertaken in the course of our audit, in our opinion:
● the information given in the Business Report for the financial year for which the consolidated
and separate financial statements are prepared is, in all material respects, consistent with the
consolidated and separate financial statements; and
● the Business Report has been prepared, in all material respects, in accordance with the
requirements of the Slovenian Companies Act.
In addition, in the light of knowledge and understanding of the Group and the Company and their
environment obtained in the course of the audit, we are required to report if we have identified material
misstatements in the other information that we obtained prior to the date of this auditor’s report. We
have nothing to report in this regard.
Responsibilities of management and those charged with governance for the
consolidated and separate financial statements
Management is responsible for the preparation and fair presentation of the consolidated and separate
financial statements in accordance with International Financial Reporting Standards as adopted by the
European Union, and for such internal control as management determines is necessary to enable the
preparation of consolidated and separate financial statements that are free from material
misstatement, whether due to fraud or error.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
7
In preparing the consolidated and separate financial statements, management is responsible for
assessing the Group’s and Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group and the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Company’s
financial reporting process.
Auditor’s responsibilities for the audit of the consolidated and separate financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate
financial statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance,but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these consolidated and separate financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s and the Company’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
● Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s and the Company's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated and separate
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group and the Company to cease to continue as a going
concern.
● Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
8
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Group audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated and separate financial statements of the
current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on other legal and regulatory requirements
Appointment
We were first appointed as auditors of the Group and the Company at the shareholders meeting of the
Company on 21 April 2022 for the financial year ended 31 December 2022. The president of the
supervisory board signed the audit contract on 1 August 2022. The contract was concluded for 3
years. Our appointment has been renewed by shareholders resolutions in the intermediate years,
representing a total period of our uninterrupted engagement appointment for the Group and the
Company, as a public interest entity, of 2 years.
Report on the compliance of the presentation of consolidated and separated
financial statements with the requirements of the European Single Electronic
Format (“ESEF”)
We have been engaged based on our agreement by management of the Company to conduct a
reasonable assurance engagement for the verification of compliance with the applicable requirements
of the presentation of the consolidated and separate financial statements of the Group and the
Company for the financial year ended 31 December 2023 (the “Presentation of the consolidated and
separate financial statements”).
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
9
Description of subject matter and applicable criteria
The Presentation of the consolidated and separate financial statements has been applied by
management of the Company to comply with the requirements of art. 3 and 4 of the Commission
Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of
the European Parliament and of the Council with regard to regulatory technical standards on the
specification of a single electronic reporting format (the “ESEF Regulation”). The applicable
requirements regarding the Presentation of the consolidated and separate financial statements are
contained in the ESEF Regulation.
The requirements described in the preceding sentence determine the basis for application of the
Presentation of the consolidated and separate financial statements and, in our view, constitute
appropriate criteria to form a reasonable assurance conclusion.
Responsibilities of management and those charged with governance
Management of the Company is responsible for the Presentation of the consolidated and separate
financial statements that complies with the requirements of the ESEF Regulation.
This responsibility includes the selection and application of appropriate markups in iXBRL in the
consolidated and separate financial statements using ESEF taxonomy and designing, implementing
and maintaining internal controls relevant for the preparation of the Presentation of the consolidated
and separate financial statements which is free from material non-compliance with the requirements of
the ESEF Regulation.
Those charged with governance are responsible for overseeing the financial reporting
process, which should also be understood as the preparation of the consolidated and
separate financial statements in accordance with the format resulting from the ESEF
Regulation.
Auditor’s responsibility
Our responsibility was to express a reasonable assurance conclusion whether the Presentation of the
consolidated and separate financial statements complies, in all material respects, with the ESEF
Regulation.
We conducted our engagement in accordance with the International Standard on Assurance
Engagements 3000 (R) - ‘Assurance Engagements other than Audits and Reviews of Historical
Financial Information’ (ISAE 3000(R)). This standard requires that we comply with ethical
requirements, plan and perform procedures to obtain reasonable assurance whether the Presentation
of the consolidated and separate financial statements complies, in all material respects, with the
applicable requirements.
Reasonable assurance is a high level of assurance, but it does not guarantee that the service
performed in accordance with ISAE 3000 (R) will always detect the existing material misstatement
(significant non-compliance with the requirements).
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
10
Quality control requirements and professional ethics
We apply the International Standard on Quality Management 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We comply with the independence and other ethical requirements of the International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants, which is founded on fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality, and professional
behaviour.
Summary of the work performed
Our planned and performed procedures were aimed at obtaining reasonable assurance that the
Presentation of the consolidated and separate financial statements complies, in all material respects,
with the applicable requirements and such compliance is free from material errors or omissions. Our
procedures included in particular:
● obtaining an understanding of the internal control system and processes relevant to the
application of the Electronic Reporting Format of the consolidated and separate financial
statements, including the preparation of the XHTML format and marking up the consolidated and
separate financial statements;
● verification whether the XHTML format was applied properly to the consolidated and separate
financial statements;
● evaluating the completeness of marking up the consolidated and separate financial statements
using the iXBRL markup language according to the requirements of the implementation of
electronic format as described in the ESEF Regulation;
● evaluating the appropriateness of the Group’s use of XBRL markups in the consolidated and
separate financial statements selected from the ESEF taxonomy and the creation of extension
markups where no suitable element in the ESEF taxonomy has been identified; and
● evaluating the appropriateness of anchoring of the extension elements to the ESEF taxonomy for
the preparation of the consolidated and separate financial statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Conclusion
In our opinion, based on the procedures performed, the Presentation of the consolidated and separate
financial statements complies, in all material respects, with the ESEF Regulation.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
11
Reporting in accordance with Gas Supply Act, (ZOP) Electricity Supply
Act (ZOEE) and Heat Supply from Distribution Systems Act (ZOTDS)
We have been engaged by the Company to perform a reasonable assurance engagement to verify
whether the separate financial statements of the Company for the financial year ended 31 December
2023 disclosed financial statements by activities, and whether the Company established the adequate
criteria and applied correctly these criteria to prepare financial statement by activities in compliance
with the applicable requirements.
Description of a subject matter and applicable criteria
The Company disclosed financial statements by activities in Note 10.»Financial statements of Petrol
d.d. Ljubljana by activity in accordance with the Electricity Supply Act , the Gas Supply Act and the
Heat Supply from Distribution Systems Act» to the separate financial statements, which include
Statement of financial position by activities as at 31 December 2023 and Statement of profit and loss
by activities for the year then ended (“the Financial statements by activities”) and the criteria for
allocation of assets, liabilities, revenues and expenses by activities (the “Criteria”) and other relevant
information. The Criteria are also contained in the internal act “Accounting Manual”.
Financial statements by activities has been prepared by the management of the Company to comply
with the Criteria and with the requirements of ZOP, ZOEE and ZOTDS.
The requirements described in the preceding sentence determine the basis for application of the
disclosure of the financial statements by activities and, in our view, constitute appropriate criteria to
form a reasonable assurance conclusion.
Responsibilities of management and those charged with governance
The management is responsible for the preparation of the Financial statements by activities as at 31
December 2023 and for the year then ended in accordance with ZOP, ZOEE and ZOTDS. The
management is also responsible for establishing the Criteria and application of these Criteria correctly
to the Financial statement by activities, and for such internal control as is necessary according to the
decision of the management to enable the preparation the Financial statement by activities that are
free from material misstatement due to fraud or error.
Those charged with governance are competent for the adoption of Criteria and the control of
their use in accordance with the requirements of ZOP, ZOEE, ZOTDS.
Auditor’s responsibility
Our responsibility was to perform a reasonable assurance engagement and to express a conclusion
whether the Company, in all material respects, disclosed Financial statements by activities,
established the adequate Criteria and correctly applied these Criteria to prepare Financial statements
by activities in compliance with the Criteria and the requirements of ZOP, ZOEE, ZOTDS.
We conducted our engagement in accordance with the International Standard on Assurance
Engagements 3000 (R) – Assurance Engagements Other than Audits or Reviews of Historical
Financial Information (ISAE 3000(R)). This standard requires us to plan and perform the procedures to
obtain reasonable assurance whether the Financial statements by activities complies with the Criteria
and the requirements of ZOP, ZOEE, ZOTDS, and are free from material misstatement.
In order to assess the adequacy of Criteria, we assessed the compliance with the requirements of
ZOP, ZOEE and ZOTDS. We assessed whether the Criteria reflect the scope of activities that give rise
to the economic category for which they are intended to be spited. If the scope of the activities that
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
12
give rise to the economic category cannot be measured, we assessed whether the division criteria
was determined based on the proportion of direct costs.
In order to assess the accuracy of the use of the Criteria, we have performed procedures pertaining to
audit, with which we checked whether the individual Criteria are used for the split of the economic
category for which it was adopted and in the way it was determined.
Reasonable assurance is a high level of assurance, but it does not guarantee that the service
performed in accordance with ISAE 3000 R will always detect an existing material misstatement
(significant non-compliance with the requirements)
Quality control requirements and professional ethics
We apply the provisions of the International Standard on Quality Management 1 and accordingly,
maintain a comprehensive system of quality control, including documented policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.
We comply with the independence and other ethical requirements of the International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants, which is founded on fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality, and professional
behaviour.
Summary of work performed
Our planned and performed procedures were aimed at obtaining reasonable assurance that, in all
material respects, the Company disclosed Financial statements by activities, established the adequate
Criteria and applied correctly these Criteria to prepare Financial statement by activities in compliance
with the applicable requirements. Our procedures included in particular:
● We identified and assessed the risk of a material misstatement of the Criteria and the
appropriateness of their use with the requirements of ZOP, ZOEE, ZOTDS.
● We obtained an understanding of internal controls relevant to the engagement of providing
reasonable assurance to structure procedures which are appropriate under the circumstances.
however, not for the purpose of expressing an opinion on the efficiency of internal controls.
● We checked whether the Company established the appropriate Criteria and applied them
correctly to prepare the Financial statements by activities.
● We checked whether the Financial statements by activities comply with the requirements of
ZOP, ZOEE, ZOTDS.
● We verified whether the Financial statements by activities disclosed required information.
● We reconciled the financial data included in the Financial statements by activities to the
Company’s accounting records and to the audited financial statements prepared in
accordance with International Financial Reporting Standards as adopted by the European
Union.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over
this translation.
13
Conclusion
Based on the procedures performed and evidence obtained, in our opinion, in all material respects,
the Company disclosed Financial statements by activities, established the adequate Criteria and
applied correctly these Criteria to prepare Financial statement by activities in compliance with the
Criteria and the requirements of ZOP, ZOEE, ZOTDS.
The key audit partner on the audit resulting in this independent auditor’s report are Primož Kovačič
and Dušan Hartman.
For and on behalf of PricewaterhouseCoopers d.o.o.
Primož Kovačič Dušan Hartman
Director, Certified auditor Certified auditor
Ljubljana, Slovenia, 17 April 2024
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 200
Javno
Public
FINANCIAL STATEMENTS OF THE PETROL GROUP AND
PETROL D.D., LJUBLJANA
Statement of profit or loss of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
N Note
2023
2022
2023
2022
Revenue from contracts with
customers
5.3
Cost of goods sold
, ,
(6,305,108,020 )
(9,063,284,948 )
(4,865,438,865 )
(6,986,267,630 )
Costs of materials
5.4
(65,615,823 )
(39,423,844 )
(52,500,522 )
(28,590,381 )
Costs of services
5.5
(186,252,765 )
(180,137,325 )
(145,843,861 )
(136,071,228 )
Labour costs
5.6
(160,562,524 )
(135,562,309 )
(105,015,807 )
(82,129,297 )
Depreciation and amortisation
5.7
(97,482,944 )
(96,300,070 )
(46,439,978 )
(46,517,125 )
Other costs
5.8
(51,351,017 )
(16,476,159 )
(34,733,292 )
(8,082,795 )
- of which net allowance for trade
receivables
(7,930,749 )
(619,233 )
(2,990,233 )
Gain on derivatives
5.9
Loss on derivatives
5.9
(153,888,518 )
(558,699,150 )
(152,231,444 )
(551,271,270 )
Other income
5.3
Other expenses
5.9
(295,509 )
(278,445 )
(105,178 )
(30,455 )
Operating profit or loss
(7,912,872 )
Share of profit or loss of equity
accounted investees
5.10
Finance income from dividends
paid by subsidiaries, associates
and jointly controlled entities
5.10
Finance income
5.11
Finance expenses
5.11
(88,075,214 )
(114,478,291 )
(77,136,838 )
(105,021,002 )
Net finance expense
(16,102,653 )
(5,228,875 )
(10,802,443 )
(1,702,115 )
Profit/(loss) before tax
(9,813,352 )
Income tax expense
5.12
(31,242,188 )
(15,562,829 )
Net profit/(loss) for the year
(2,685,806 )
Net profit/(loss) for the year
attributable to:
Owners of the controlling company
Non-controlling interest
(7,205,931 )
Basic and diluted earnings per share
attributable to owners of the
controlling company
5.13
The accounting policies and notes are an integral part of these financial statements and should be read in
conjunction with them.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 201
Javno
Public
Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
Note
2023
2022
2023
2022
Net profit/(loss) for the year
(2,685,806 )
Effective portion of changes in the fair value of
cash flow variability hedging
5.14
(14,185,913 )
(12,718,319 )
Change in deferred taxes
(3,333,632 )
(6,515,522 )
Change in the fair value of financial assets
through other comprehensive income
Change in deferred taxes
(22,580 )
(22,286 )
Foreign exchange differences
(863,631 )
Other comprehensive income to be
recognised in the statement of profit or loss
in the future
(11,491,170 )
(10,929,236 )
Total other comprehensive income to be
recognised in the statement of profit or loss
in the future
(11,491,170 )
(10,929,236 )
Unrealised actuarial gains and losses
Other comprehensive income not to be
recognised in the statement of profit or loss
in the future
Attribution of changes in the equity of associates
Total other comprehensive income not to be
recognised in the statement of profit or loss
in the future
Total other comprehensive income after tax
(10,862,712 )
(10,577,271 )
Total comprehensive income for the year
Total comprehensive income attributable to:
Owners of the controlling company
Non-controlling interest
(11,472,444 )
The accounting policies and notes are an integral part of these financial statements and should be read in
conjunction with them.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 202
Javno
Public
Statement of the financial position of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
Note
31 December
2023
31 December
2022
31 December
2023
31 December
2022
ASSETS
Non-current (long-term) assets
Intangible assets
5.15
Right-of-use assets
5.16
Property, plant and equipment
5.17
Investment property
5.18
Investments in subsidiaries
5.19
Investments in jointly controlled entities
5.20
Investments in associates
5.21
Fin. assets at fair value through other comprehensive income
5.22
Contract assets
5.28
Loans
5.23
Operating receivables
5.24
Deferred tax assets
5.12
Current assets
Inventories
5.25
Contract assets
5.28
Loans
5.26
Operating receivables
5.27
Corporate income tax assets
5.12
Financial assets at fair value through profit or loss
5.29
Fin. assets at fair value through other comprehensive income
5.22
Prepayments and other assets
5.30
Cash and cash equivalents
5.31
Total assets
EQUITY AND LIABILITIES
Equity attributable to owners of the controlling company
Called-up capital
Capital surplus
Legal reserves
Reserves for own shares
Own shares
(4,708,359 )
(4,708,359 )
(2,604,670 )
(2,604,670 )
Other profit reserves
Fair value reserve
Hedging reserve
Foreign exchange differences
(9,455,117 )
(9,496,033 )
Retained earnings
Non-controlling interest
Total equity
5.32
Non-current liabilities
Provisions for employee post-employment and other long-
term benefits
5.33
Other provisions
5.34
Deferred income
5.35
Borrowings and other financial liabilities
5.36
Lease liabilities
5.37
Operating liabilities
5.38
Deferred tax liabilities
5.12
Current liabilities
Other provisions
5.34
Deferred income
5.35
Borrowings and other financial liabilities
5.36
Lease liabilities
5.37
Operating liabilities
5.39
Commodity derivative instruments
5.40
Corporate income tax liabilities
5.12
Contract liabilities
5.41
Other liabilities
5.42
Total liabilities
Total equity and liabilities
In 2023, the Group/Company changed the presentation of individual items in the statement of financial position.
The changes are explained in Point 2.e. The accounting policies and notes are an integral part of these financial
statements and should be read in conjunction with them.
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Statement of changes in equity of the Petrol Group
(in EUR)
Called-up
capital
Capital
surplus
Profit reserves
Fair value
reserve
Hedging
reserve
Foreign
exchange
differences
Retained
earnings
Equity
attributable to
owners of the
controlling
company
Non-
controlling
interest
Total
Legal
reserves
Reserves
for own
shares
Own
shares
Other profit
reserves
As at 1 January 2022
(4,708,359 )
(789,611 )
(858,584 )
(8,634,420 )
Dividend payments for 2021
(28,425,869 )
(33,241,474 )
(61,667,343 )
(61,667,343 )
Transfer of a portion of 2022 net profit
(9,691,939 )
Increase/(decrease) in non-controlling
interest
(178,449 )
(141,395 )
Transactions with owners
(18,696,876 )
(42,933,413 )
(61,630,289 )
(178,449 )
(61,808,738 )
Net profit for the current year
(7,205,931 )
(2,685,806 )
Other comprehensive income
(861,613 )
(194,939 )
(4,266,513 )
Total comprehensive income
(861,613 )
(11,472,444 )
As at 31 December 2022
(4,708,359 )
(9,496,033 )
As at 1 January 2023
(4,708,359 )
(9,496,033 )
Dividend payments for 2022
(51,975,401 )
(9,691,939 )
(61,667,340 )
(61,667,340 )
Transfer of a portion of 2023 net profit
(46,402,790 )
Increase/(decrease) in non-controlling
interest
(761,608 )
(761,608 )
(384,442 )
(1,146,050 )
Transactions with owners
(6,334,219 )
(56,094,729 )
(62,428,948 )
(384,442 )
(62,813,390 )
Net profit for the current year
Other comprehensive income
(11,749,605 )
(11,106,739 )
(10,862,712 )
Total comprehensive income
(11,749,605 )
As at 31 December 2023
(4,708,359 )
(9,455,117 )
The accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
More in Notes 5.19 and 5.32.
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Statement of changes in equity of Petrol d.d., Ljubljana
(in EUR)
Called-up
capital
Capital
surplus
Profit reserves
Fair value
reserve
Hedging
reserve
Retained
earnings
Total
Legal
reserves
Reserves
for own
shares
Own
shares
Other profit
reserves
As at 1 January 2022
(2,604,670 )
(1,136,850 )
Dividend payments for 2021
(28,425,869 )
(33,241,474 )
(61,667,343 )
Transfer of a portion of 2022 net profit
(9,691,939 )
Transactions with owners
(18,733,930 )
(42,933,413 )
(61,667,343 )
Net profit for the current year
Other comprehensive income
(146,928 )
Total comprehensive income
As at 31 December 2022
(2,604,670 )
As at 1 January 2023
(2,604,670 )
Dividend payments for 2022
(51,975,401 )
(9,691,939 )
(61,667,340 )
Transfer of a portion of 2023 net profit
(46,402,790 )
Transactions with owners
(5,572,611 )
(56,094,729 )
(61,667,340 )
Net profit for the current year
Other comprehensive income
(10,906,950 )
(10,577,271 )
Total comprehensive income
(10,906,950 )
As at 31 December 2023
(2,604,670 )
Accumulated profit for 2023
The accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
More in Notes 5.32.
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Statement of cash flows of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
Note
2023
2022
2023
2022
Cash flows from operating activities
Net profit
(2,685,806 )
Adjustment for:
Corporate income tax
5.12
(7,127,546 )
(1,559,812 )
Depreciation of property, plant and equipment, investment
property and right-of-use assets
5.7
Amortisation of intangible assets
5.7
(Gain)/loss on disposal of property, plant and equipment
5.3, 5.8
(643,034 )
(2,308,698 )
(816,883 )
(496,493 )
Impairment/(reversed impairment) of PPE and inv. property
5.8
Impairment/(reversed impairment) of inventories
5.8
Revenue from assets under management
5.36
(65,414 )
(65,414 )
(65,414 )
(65,414 )
Net (decrease in)/creation of provisions for long-term employee
benefits
5.33
(176,863 )
Net (decrease in)/creation of other provisions and deferred income
5.34, 5.35
(9,707,692 )
(3,896,414 )
Net goods surpluses
(3,915,251 )
(4,964,865 )
(1,697,780 )
(3,343,967 )
Net (decrease in)/creation of allowance for receivables
5.8
(512,501 )
Net finance (income)/expense
5.11
Impairment of investments
5.8
Share of profit of jointly controlled entities
5.10
(44,439 )
(665,483 )
Share of profit of associates
5.10
(3,679,698 )
(2,662,912 )
Finance income from dividends received from subsidiaries
5.10
(1,588,428 )
(723,160 )
Finance income from dividends received from jointly controlled
entities
5.10
(931,389 )
(115,217 )
Finance income from dividends received from associates
5.10
(1,246,921 )
(814,437 )
Cash flow from operating activities before changes in working
capital
Net (decrease in)/creation of other liabilities
5.42
(20,483,464 )
(15,728,852 )
Net decrease in/(creation) of other assets
5.30
(24,494,487 )
(4,126,645 )
(14,981,141 )
(1,568,792 )
Change in inventories
5.25
(86,164,815 )
(51,268,181 )
Change in operating and other receivables and contract assets
5.27, 5.28
(180,638,456 )
(147,757,061 )
Change in operating and other liabilities and contract liabilities
5.39, 5.41
(216,390,071 )
(122,428,258 )
Cash generated from operating activities
Interest paid
5.11
(25,181,195 )
(14,411,347 )
(19,843,715 )
(9,669,252 )
Taxes refunded/(paid)
5.12
(44,996,685 )
(28,964,937 )
Net cash from (used in) operating activities
Cash flows from investing activities
Payments for inv. in subsidiaries, net of cash acquired
5.19
(3,000,000 )
(3,720,482 )
(4,259,301 )
(3,720,482 )
Receipts from investments in subsidiaries
5.19
Payments for investments in jointly controlled entities
5.20
(23,000 )
(23,000 )
Receipts from sale of intangible assets
5.15
Payments for intangible assets
5.15
(11,196,484 )
(8,710,587 )
(9,716,941 )
(6,298,800 )
Receipts from sale of property, plant and equipment
5.17
Payments for property, plant and equipment
5.17
(88,084,885 )
(74,289,070 )
(42,581,162 )
(38,631,661 )
Receipts from sale of investment property
5.18
Payments for investment property
5.18
(1,806,215 )
(124,378 )
(173,669 )
Receipts from financial assets at fair value through other
comprehensive income
5.22
Receipts from loans granted
5.23, 5.26
Payments for loans granted
5.23, 5.26
(2,152,321 )
(905,474 )
(153,943,176 )
(251,057,987 )
Interest received
5.11
Dividends received from subsidiaries
5.10
Dividends received from jointly controlled entities
5.10
Dividends received from associates
5.10
Dividends received from others
5.10
Net cash from (used in) investing activities
(77,994,228 )
(57,278,495 )
(3,375,776 )
(36,908,514 )
Cash flows from financing activities
Lease payments
5.37
(20,484,188 )
(16,611,194 )
(4,651,139 )
(3,867,861 )
Proceeds from borrowings
5.36
Repayment of borrowings
5.36
(1,592,468,739 )
(1,891,704,933 )
(2,849,458,380 )
(2,662,608,090 )
Transactions with non-controlling interests
5.19
(1,259,301 )
Dividends paid to shareholders
5.32
(61,667,340 )
(61,674,272 )
(61,667,340 )
(61,674,272 )
Net cash from (used in) financing activities
(123,393,887 )
(85,587,758 )
(138,096,119 )
(150,916,112 )
Increase/(decrease) in cash and cash equivalents
(18,045,884 )
(6,364,036 )
Changes in cash and cash equivalents
At the beginning of the year
Foreign exchange differences
(152,184 )
(49,745 )
(137,015 )
Increase/(decrease)
(18,045,884 )
(6,364,036 )
At the end of the period
The accounting policies and notes are an integral part of these financial statements and should be read in
conjunction with them.
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NOTES ON THE FINANCIAL STATEMENTS
1. Reporting entity
registered office is at Dunajska cesta 50, 1000 Ljubljana . The consolidated financial
statements comprise the Company and its subsidiaries, as well as the Group’s interests in
associates and jointly controlled entities (together referred to as the “Group”). A more detailed
overview of the Group’s structure is presented in the chapter Companies in the Petrol Group
of the business report. Below we present the consolidated financial statements of the Group
for the year ended 31 December 2023 and separate financial statements of the company
2. Basis of preparation
a. Statement of compliance
The Company’s Management Board approved the Company’s financial statements and the
Group’s consolidated financial statements on 11 April 2024.
The financial statements of Petrol d.d., Ljubljana and the consolidated financial statements of
the Petrol Group have been prepared in accordance with the International Financial Reporting
Standards (IFRS) as adopted by the European Union, the interpretations of the IFRS
Interpretations Committee, also adopted by the EU, and in accordance with the applicable law.
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 carried at fair value.
c. Functional and presentation currency
The financial statements are presented in euros (EUR) without cents except where it is
explicitly written, that numbers are expressed in thousands. The euro also being the
Company’s functional currency. Due to rounding, some immaterial differences may arise in the
sums presented in the tables. The financial statements provide comparative information in
respect of the previous period.
d. Use of estimates and judgements
The preparation of the financial statements requires the management to make estimates and
judgements based on the assumptions used and reviewed that affect the reported amounts of
assets, liabilities, revenue and expenses. How the estimates are produced and the related
assumptions and uncertainties are disclosed in the notes on individual items.
The estimates, judgements and assumptions are reviewed on a regular basis. Because
estimates are subject to subjective judgement and a degree of uncertainty, the actual results
might differ from the estimates. Changes in accounting estimates, judgements and
assumptions are recognised in the period in which the estimates are changed, if the change
only affects that period. If the change affects future periods, they are recognised in the period
of the change and in any future periods.
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Estimates and assumptions are mainly used in the following judgements:
Leases (Policy 3.h)
In most cases, the lease term is stipulated in the contract. When the term is not specified,
the Group/Company estimates the lease term by considering the assessment of the need
to use the asset, taking into account its plans and the long-term business direction.
Revenue from contracts with customers
The Group/Company applied the following accounting judgements that significantly affect
the determination of the amount and the recognition of revenue from contracts with
customers:
− Treatment of excise duty when selling petroleum products
The Group/Company accounts for excise duty when purchasing petroleum products,
charging it to the end-customer when a sale is made. In the financial statements, excise
duty is not carried as part of the revenue or cost. The assessment is based on indicators
that determine the nature of the duty and the appropriateness of its presentation, such
as: the assessment of the basis of the calculation, the point of payment of the duty, the
possibility of changing the selling price in the event of a change in the duty, and the
risks associated with the value of the inventory of goods. Taking into account all the
above indicators, the Group/Company concludes that the revenue from the sale of
goods and the cost of goods are shown net of excise duties. In 2023, the Group’s excise
duties totalled EUR 1,251,767,267 (2022: EUR 1,130,616,855) and the Company’s
EUR 696,454,769 (2022: EUR 642,639,624).
Estimating the useful lives of depreciable assets (Notes 5.15, 5.16, 5.17 and 5.18, Policies
3.e, 3.f, 3.g and 3.h)
When estimating the lives of assets, the Group/Company takes into account the expected
physical wear and tear, the technical and economic obsolescence, as well as any expected
legal restrictions and other restrictions of use. In addition, the Group/Company periodically
checks the useful lives of significant assets; for example, if circumstances change
significantly, resulting in the need to change the useful life and revalue the depreciation
and amortisation charges.
An increase in the useful life of depreciable assets by 5 percent results in a decrease in
depreciation and amortisation of EUR 803,669 in 2023. A decrease in the useful life of
depreciable assets by 5 percent results in a decrease in depreciation and amortisation of
EUR 803,669 in 2023.
Asset impairment testing
Information on significant uncertainty estimates and critical judgements that were prepared
by the management in the process of accounting policy implementation and that affect the
amounts in the financial statements the most was used in the estimation of the value of:
− investment property (Note 5.18),
− goodwill (Note 5.15),
− investments in subsidiaries (Note 5.19),
− investments in jointly controlled entities and associates (Notes 5.20 and 5.21),
− financial assets at fair value through other comprehensive income (Note 5.22),
− loans granted (Note 5.23),
− financial assets and financial liabilities at fair value through profit or loss (Note 5.29).
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Parameters/assumptions applied in assessing asset values
The Group/Company assesses the value of its assets by:
− discounting future free cash flows based on future expectations and assumptions as
follows:
i. Future cash flows: reflect the expected demand for goods and are based on long-
term financial plans approved by the Group’s management.
The financial plans are prepared by analysing past periods and taking into account
future development scenarios.
ii. Discount rate: reflects the weighted average cost of capital and is calculated on the
value assessment date based on a risk-free interest rate plus margins reflecting the
risk of an asset.
iii. Long-term growth rate: reflects the expected long-term growth of cash flows
subsequent to the projection period and is assessed based on a company’s past
operations and future macroeconomic developments.
− using the market approach, which is based on the values of economic categories of
comparable companies as at the value assessment date.
Estimation of the fair value of assets (Notes 5.22 and 5.29)
Fair value is used for financial assets measured at fair value through other comprehensive
income, financial assets measured at fair value through profit or loss and for derivatives.
All other items in the financial statements represent the cost or amortised cost.
In measuring the fair value of a non-financial asset, the Group/Company must take into
account a market participant’s ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use. The Group/Company uses valuation techniques that are
appropriate under the circumstances and for which sufficient data is available, especially
by applying appropriate market inputs and minimum non-market inputs.
All the assets and liabilities measured and disclosed in the financial statements at fair value
are classified within the fair value hierarchy based on the lowest level of input data that is
significant to the fair value measurement as a whole:
Level 1 – quoted (unadjusted) prices in active markets for similar assets and liabilities
Level 2 – valuation techniques that are based directly or indirectly on market data
Level 3 – valuation techniques that are not based on market data.
For assets and liabilities disclosed in the financial statements in previous periods, the
Group/Company determines at the end of each reporting period whether transfers have
occurred between levels by re-assessing the classification of assets based on the lowest
level input that is significant to the fair value measurement as a whole.
The fair value hierarchy of assets and liabilities of the Group/Company is presented in Note
6.7, whereas the guidelines for individual items in the financial statements are given in
Point 3.o.
Estimate of provisions for lawsuits (Notes 5.34 and 8)
Several lawsuits have been filed against Group companies, for which the potential need
for provisions is estimated on an ongoing basis. Provisions are recognised if, as a result of
a past event, companies have a current legal or constructive obligation that can be
estimated reliably, and if it is probable that an outflow of economic benefits will be required
to settle the obligation.
Contingent liabilities are not disclosed in the financial statements because their actual
existence will only be confirmed by the occurrence or non-occurrence of events in the
unforeseeable future, which is beyond the control of Group companies. The management
of a company regularly checks whether an outflow of economic benefits is probable to
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settle contingent liabilities. If it becomes probable, the contingent liability is restated and
provisions are created for it in the financial statements as soon as the level of probability
changes. When assessing the existence and amount of contingent liabilities, the
Group’s/Company’s management relies on expert opinions provided by external lawyers
who represent the Company in legal disputes and, where necessary, on opinions provided
by international legal experts.
Provisions for lawsuits contain a significant degree of uncertainty, and the actual settlement
can differ considerably from the current estimate. If the probability of an unfavourable
settlement were to increase by 5 percent, the estimate of the provision would change by
EUR 237,340.
Estimate of provisions for partial non-compliance in the area of renewables (Note 5.34)
The Group’s/Company’s other provisions include provisions for partial non-compliance in
the area of renewables in transport (Decree on renewable energy sources in transport).
The provisions were estimated by considering all the relevant circumstances regarding
conformity with the required standards and legal aspects, and represent the management’s
best estimate of how likely the outflow of economic benefits from the Group/Company is.
Estimate of provisions for employee post-employment and other long-term benefits (Notes
5.33 and 5.34)
Defined post-employment and other benefit obligations include the present value of post-
employment benefits on retirement and jubilee benefits. They are recognised based on an
actuarial calculation approved by the management. An actuarial calculation is based on
the assumptions and estimates applicable at the time of the calculation, which may differ
from the actual assumptions due to future changes. This mainly refers to determining the
discount rate, the estimate of staff turnover, the mortality estimation and the salary increase
estimate. Defined benefit obligations are sensitive to changes in the said estimates
because of the complexity of the actuarial calculation and the item’s long-term nature.
The assumptions are detailed in Note 5.33 and in Note 5.34.
Estimate of provisions for onerous contracts (Notes 5.34 and 5.42)
Provisions for electricity and natural gas supplies are recorded under the provisions for
onerous contracts. They are recognised on the basis of the calculation of the estimated
economic benefits and costs arising from contracts for the supply of electricity and natural
gas. The current and projected market prices of electricity and natural gas for the following
year are used in the calculation. In the event of a 5 percent change in the price profile of
the purchase of electricity for small business customers, the provision for onerous contracts
would change by EUR 790,398 for the Group and EUR 392,171 for the Company. In the
case of natural gas, a 5 percent change in the price would change the provision by
EUR 211,917.
Assessing the possibility of recognising deferred tax assets for carried-forward tax losses
The Group/Company recognises deferred tax assets for tax losses carried forward if it is
probable that future taxable net profits will be available against which deferred tax assets
can be utilised in the future. If the Group recognised all unrecognised deferred tax assets,
the net profit and equity would increase by EUR 2,035,082 (EUR 1,900,656 as at 31
December 2022).
e. Change of financial statement presentation
In 2023, the Group/Company changed the presentation of individual items in the statement of
financial position in order to ensure a more appropriate presentation. The change includes a
comprehensive adjustment of the items for the 2022 comparative period on an equal basis.
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Current other provisions and current deferred income
Until 2023, the Group/Company reported other current provisions and current deferred income
under other liabilities. Having reconsidered this presentation, the Group/Company established
that it was more appropriate to present other provisions and deferred income as separate line
items in the statement of financial position.
Impact on the statement of financial position of the Petrol Group and Petrol, d.d.
| The Petrol Group | Petrol d.d. | ||||||
| Change of presentation | Change of | ||||||
| 31 December | 31 December | 31 December | presentation | 31 December | |||
| 2022 | Other | Deferred | 2022 | 2022 | Deferred | 2022 | |
| (in EUR) | Published | provisions | income | Restated | Published | income | Adjusted |
| EQUITY AND LIABILITIES | |||||||
| Total equity | 860,166,621 | - | - | 860,166,621 | 597,990,971 | - | 597,990,971 |
| Non-current liabilities | 591,970,768 | - | - | 591,970,768 | 444,144,456 | - | 444,144,456 |
| Current liabilities | 1,288,467,028 | - | - | 1,288,467,028 | 1,091,489,992 | - | 1,091,489,992 |
| Other provisions | - | 785,846 | - | 785,846 | - | - | - |
| Deferred income | - | - | 4,770,243 | 4,770,243 | - | 4,643,206 | 4,643,206 |
| Other liabilities | 38,118,918 | (785,846) | (4,770,243) | 32,562,829 | 35,125,073 | (4,643,206) | 30,481,867 |
| Total liabilities | 1,880,437,796 | - | - | 1,880,437,796 | 1,535,634,448 | - | 1,535,634,448 |
| Total equity and liabilities | 2,740,604,417 | - | - | 2,740,604,417 | 2,133,625,419 | - | 2,133,625,419 |
3. Material accounting policy information
The Group and Group companies applied the accounting policies set out below consistently to
all the periods presented in these financial statements.
Except for the newly adopted standards and interpretations specified below, the accounting
policies used herein are the same as in the previous annual report.
Newly adopted standards and interpretation, for the Group and the Company, effective
as of 1 January 2023
Amendments to the IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting
policies (issued on 12 February 2021 and effective for annual periods beginning on or
after 1 January 2023).
The IAS 1 was amended to require companies to disclose their material accounting policy
information rather than their significant accounting policies. The amendment provided the
definition of material accounting policy information. The amendment also clarified that the
accounting policy information is expected to be material if, without it, the users of the financial
statements would be unable to understand other material information in the financial
statements. The amendment provided illustrative examples of accounting policy information
that is likely to be considered material to the entity’s financial statements. Further, the
amendment to the IAS 1 clarified that immaterial accounting policy information need not be
disclosed. However, if it is disclosed, it should not obscure material accounting policy
information. To support this amendment, the IFRS Practice Statement 2, ‘Making Materiality
Judgements’ was also amended to provide guidance on how to apply the concept of materiality
to accounting policy disclosures.
The supplements to the standard affected disclosures about the Group’s/Company’s
accounting policies.
Amendments to the IAS 8: Definition of Accounting Estimates (issued on 12 February
2021 and effective for annual periods beginning on or after 1 January 2023).
The amendment to the IAS 8 clarified how companies should distinguish changes in
accounting policies from changes in accounting estimates.
The amendments to the standard affected disclosures about the Group’s/Company’s
accounting policies and estimates.
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Deferred tax related to assets and liabilities arising from a single transaction –
Amendments to the IAS 12 (issued on 7 May 2021 and effective for annual periods
beginning on or after 1 January 2023).
The amendments to the IAS 12 specify how to account for deferred tax on transactions such
as leases and decommissioning obligations. In specified circumstances, entities are exempt
from recognising deferred tax when they recognise assets or liabilities for the first time.
Previously, there had been some uncertainty about whether the exemption applied to
transactions such as leases and decommissioning obligations – transactions for which both an
asset and a liability are recognised. The amendments clarify that the exemption does not apply
and that entities are required to recognise deferred tax on such transactions. The amendments
require companies to recognise deferred tax on transactions that, on initial recognition, give
rise to equal amounts of taxable and deductible temporary differences.
The amendments did not have a material impact on the financial statements of the Group. The
Group additionally created deferred tax assets of EUR 429,158. The amendments did not
impact the financial statements of the Company.
Amendments to the IAS 12 Income Taxes: International Tax Reform – Pillar 2 Rules
(issued 23 May 2023).
In May 2023, the International Accounting Standards Board published these amendments to
the IAS 12 – Income Taxes. This amendment was introduced in response to the imminent
implementation of the Pillar 2 model rules roadmap published by the Organisation for
Economic Cooperation and Development (OECD) as a result of international tax reform. The
amendments provide a temporary exemption from the recognition and disclosure requirements
for deferred taxes arising from enacted or substantively enacted tax legislation that implements
the Pillar 2 model rules. Under the effective date of the IASB, entities can apply the exemption
immediately, but reporting and disclosure requirements are required for annual periods
beginning on or after 1 January 2023.
The amendments did not have a material impact on the financial statements of the
Group/Company.
IFRS 17 Insurance Contracts (issued on 18 May 2017 and effective for annual periods
beginning on or after 1 January 2023).
The IFRS 17 replaces the IFRS 4, which, on an exceptional basis, allowed entities to continue
to account for insurance contracts in accordance with existing practices. As a result, investors
found it difficult to compare and differentiate the financial performance of otherwise similar
insurers. The IFRS 17 requires the application of a single approach to all types of insurance
contracts, including reinsurance contracts, held by an insurer. The Standard requires the
recognition and measurement of groups of insurance contracts with: (i) the risk-adjusted
present value of future cash flows (i.e. fulfilment cash flows) that incorporates all available
information about fulfilment cash flows in a manner that is consistent with relevant market
information, plus (if that value is a liability) or minus (if that value is an asset) (ii) an amount
representing unearned profit in the group of contracts (the contractual service margin). Insurers
will recognise gains on a group of insurance contracts in the period in which they provide
insurance cover and when they are de-risked. If a group of contracts make or begin to make a
loss, the entity recognises the loss immediately.
The amendments did not have a material impact on the financial statements of the
Group/Company.
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Amendments to IFRS 17 and an amendment to IFRS 4 (issued on 25 June 2020 and
effective for annual periods beginning on or after 1 January 2023).
The amendments include a number of clarifications intended to ease implementation of IFRS
17, simplify some requirements of the standard and transition. The amendments relate to eight
areas of IFRS 17, and they are not intended to change the fundamental principles of the
standard. The following amendments to IFRS 17 were made:
− Effective date: The effective date of IFRS 17 (incorporating the amendments) has been
deferred by two years to annual reporting periods beginning on or after 1 January 2023;
and the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 has
also been deferred to annual reporting periods beginning on or after 1 January 2023.
− Expected recovery of insurance acquisition cash flows: An entity is required to allocate part
of the acquisition costs to related expected contract renewals, and to recognise those costs
as an asset until the entity recognises the contract renewals. Entities are required to assess
the recoverability of the asset at each reporting date, and to provide specific information
about the asset in the notes to the financial statements.
− Contractual service margin attributable to investment services: Coverage units should be
identified, considering the quantity of benefits and expected period of both insurance
coverage and investment services, for contracts under the variable fee approach and for
other contracts with an ‘investment-return service’ under the general model. Costs related
to investment activities should be included as cash flows within the boundary of an
insurance contract, to the extent that the entity performs such activities to enhance benefits
from insurance coverage for the policyholder.
− Reinsurance contracts held – recovery of losses: When an entity recognises a loss on initial
recognition of an onerous group of underlying insurance contracts, or on addition of onerous
underlying contracts to a group, an entity should adjust the contractual service margin of a
related group of reinsurance contracts held and recognise a gain on the reinsurance
contracts held. The amount of the loss recovered from a reinsurance contract held is
determined by multiplying the loss recognised on underlying insurance contracts and the
percentage of claims on underlying insurance contracts that the entity expects to recover
from the reinsurance contract held. This requirement would apply only when the reinsurance
contract held is recognised before or at the same time as the loss is recognised on the
underlying insurance contracts.
− Other amendments: Other amendments include scope exclusions for some credit card (or
similar) contracts, and some loan contracts; presentation of insurance contract assets and
liabilities in the statement of financial position in portfolios instead of groups; applicability of
the risk mitigation option when mitigating financial risks using reinsurance contracts held
and non-derivative financial instruments at fair value through profit or loss; an accounting
policy choice to change the estimates made in previous interim financial statements when
applying IFRS 17; inclusion of income tax payments and receipts that are specifically
chargeable to the policyholder under the terms of an insurance contract in the fulfillment
cash flows; and selected transition reliefs and other minor amendments.
The amendments did not have a material impact on the financial statements of the
Group/Company.
Transition option to insurers applying IFRS 17 – Amendments to IFRS 17 (issued on 9
December 2021 and effective for annual periods beginning on or after 1 January 2023).
The amendment to the transition requirements in IFRS 17 provides insurers with an option
aimed at improving the usefulness of information to investors on initial application of IFRS 17.
The amendment relates to insurers’ transition to IFRS 17 only and does not affect any other
requirements in IFRS 17. The transition requirements in IFRS 17 and IFRS 9 apply at different
dates and will result in the following one-time classification differences in the comparative
information presented on initial application of IFRS 17: accounting mismatches between
insurance contract liabilities measured at current value and any related financial assets
measured at amortised cost; and if an entity chooses to restate comparative information for
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IFRS 9, classification differences between financial assets derecognised in the comparative
period (to which IFRS 9 will not apply) and other financial assets (to which IFRS 9 will apply).
The amendment will help insurers to avoid these temporary accounting mismatches and,
therefore, will improve the usefulness of comparative information for investors. It does this by
providing insurers with an option for the presentation of comparative information about financial
assets. When initially applying IFRS 17, entities would, for the purpose of presenting
comparative information, be permitted to apply a classification overlay to a financial asset for
which the entity does not restate IFRS 9 comparative information. The transition option would
be available, on an instrument-by-instrument basis; allow an entity to present comparative
information as if the classification and measurement requirements of IFRS 9 had been applied
to that financial asset, but not require an entity to apply the impairment requirements of IFRS
9; and require an entity that applies the classification overlay to a financial asset to use
reasonable and supportable information available at the transition date to determine how the
entity expects that financial asset to be classified applying IFRS 9.
The amendments did not have a material impact on the financial statements of the
Group/Company.
a. Basis for consolidation
The Group’s consolidated financial statements comprise the financial statements of the
controlling company and its subsidiaries.
Subsidiaries
The financial statements of subsidiaries are included in the Group’s consolidated financial
statements from the date when control commences until the date when control ceases. The
accounting policies of subsidiaries are aligned with the Group’s policies.
In the Company’s financial statements, investments in subsidiaries are accounted for at cost
less impairment. The Company only recognises income from an investment to the extent that
it originates from a distribution of the accumulated profits of the investee arising after the date
of acquisition. If a company is merged, the difference between the investment and the net
value of the acquired assets is recognised in other profit reserves, taking into account goodwill,
if any.
The impairment of assets is detailed in Policy j2.
Investments in associates and jointly controlled entities
Associates are those entities in which the Group has a significant influence, but not control,
over their financial and operating policies. Jointly controlled entities are those entities over
whose activities the Group has joint control, established by contractual agreement and
requiring unanimous consent for financial and operating decisions. Investments in associates
and jointly controlled entities are initially recognised at cost but are subsequently accounted
for using the equity method. The Group’s consolidated financial statements include the Group’s
share of the profit and loss of equity-accounted jointly controlled entities, after adjustments to
align the accounting policies, from the date that significant influence commences until the date
that significant influence ceases. When the Group’s share of losses of an associate or a jointly
controlled entity exceeds its interest in such an entity, the carrying amount of the Group’s
interest is reduced to zero and the recognition of further losses is discontinued.
The Company measures investments in associates and jointly controlled entities at cost less
impairment.
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b. Foreign currency translation
Foreign currency transactions
All foreign exchange differences are recognised in profit or loss, except for differences arising
on the translation of the effective portion of the changes in the fair value of a grouped cash
flow hedging instrument measured at fair value through other comprehensive income, which
are recognised directly in other comprehensive income.
Financial statements of Group companies
The Group’s consolidated financial statements are presented in euros. Line items of each
Group company that are included in the financial statements are translated, for the purpose of
preparing consolidated financial statements, into the reporting currency as follows:
− assets and liabilities from each statement of financial position presented, including goodwill,
are translated at the ECB exchange rate at the reporting date;
− revenue and expenses of foreign operations are converted to euros at the ECB average
exchange rate of the reporting period.
Translation foreign exchange differences are recognised in other comprehensive income and
presented under foreign exchange differences in equity.
c. Financial assets
The Group’s/Company’s financial assets include cash and cash equivalents, receivables and
loans, and investments.
The Group/Company initially recognises loans, receivables and deposits on the date of their
origin. All other financial assets are recognised initially on the trade date, which is the date the
Group/Company becomes a party to the contractual provisions of the instrument.
The Group’s/Company’s financial instruments are classified on initial recognition, based on the
business model for managing the financial assets and the contractual cash flow characteristics
of the financial asset acquired, into one of the following groups:
- financial assets at the amortised cost
- financial assets at fair value through other comprehensive income
- financial assets at fair value through profit or loss
The impairment of financial assets is detailed in Note j1.
c1. Financial assets measured at amortised cost
The Group’s/Company’s financial assets at amortised cost include financial assets held under
its business model in order to collect contractual cash flows when the cash flows are solely
payments of principal and interest on the principal amount outstanding. The
Group’s/Company’s financial assets at amortised cost include loans, trade and other
receivables and cash and cash equivalents.
c2. Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income that have the nature of an
equity instrument are financial assets that meet the definition of equity under the IAS 32
Financial Instruments, which the Group/Company elected to classify irrevocably as equity
instruments designated at fair value through other comprehensive income and that are not
held for trading. The classification is determined on an instrument-by-instrument basis.
The Group/Company elected to irrevocably classify its non-listed equity investments.
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c3. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading,
financial assets at fair value through profit or loss and financial assets to be measured at fair
value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling
or repurchasing in the near term. Derivatives are classified as held for trading unless they are
designated as effective hedging instruments. In addition to derivatives, this category also
contains listed equity investments that the Group/Company has not irrevocably elected to
classify at fair value through other comprehensive income.
The Group’s/Company’s financial assets measured at fair value through profit or loss mainly
consist of unrealised derivative financial instruments assessed on the reporting date.
c4. Derivative financial instruments
Derivative financial instruments are initially recognised at fair value. Attributable transaction
costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives
are measured at fair value and changes therein are accounted for as described below.
− When a derivative is designated as a hedging instrument in the hedge of the variability in
cash flows attributable to a particular risk associated with a recognised asset or liability or
a highly probable forecast transaction that could affect profit or loss, the effective portion of
the changes in the fair value of the derivative is recognised in other comprehensive income
for the period and accumulated in the hedging reserve within equity. Any ineffective portion
of the changes in the fair value of the derivative is recognised directly in profit or loss. If the
hedging instrument no longer meets the criteria for hedge accounting or the hedging
instrument is sold, terminated or exercised, then the Group/Company discontinues the
hedge accounting. The cumulative gain or loss accumulated in the hedging reserve remains
presented in the hedging reserve as long as the forecast transaction does not affect profit
or loss. If the forecast transaction is no longer expected to occur, then the balance in the
hedging reserve is reclassified immediately into profit or loss. In other cases, the amount
recognised in other comprehensive income is transferred to profit or loss in the same period
in which the hedged item affects profit or loss. The fair values of derivative financial
instruments used for hedging purposes are disclosed in Notes 5.22, 5.36 and 5.40.
Movements in the hedge reserve in other comprehensive income are disclosed in Note
5.32.
− The effects of other derivatives not designated as a hedging instrument in the hedge of the
variability in cash flows or not attributable to a particular risk associated with a recognised
asset or liability are recognised in profit or loss.
The Group/Company uses the following derivative financial instruments:
Currency forward contracts
The Group/Company purchases petroleum products in US dollars but primarily sells them in
euros. Because purchases and sales are made in different currencies, mismatches occur
between the purchase and selling prices that are hedged against using currency forward
contracts by the Group/Company.
The fair value of outstanding currency forward contracts at the date of the statement of financial
position is determined by means of publicly available information about the value of currency
forward contracts in a regulated market on the reporting date for all outstanding contracts.
Gains and losses are recognised in profit or loss as finance income or expenses.
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When a currency forward is designated as the hedging instrument in a hedge of the variability
in cash flows attributable to a recognised asset or liability or a forecast transaction, the effective
portion of the gain or loss on the instrument is recognised directly in other comprehensive
income. The ineffective portion of the gain or loss on the instrument is recognised in profit or
loss as a finance income or expense.
The Group has currency forward contracts recognised both at fair value through profit or loss
and in the hedging reserve. The Company only has them recognised at fair value through profit
or loss.
Commodity derivatives
When petroleum products, natural gas and electricity are purchased or sold, mismatches occur
between the purchase and selling prices that are hedged against using commodity derivatives
by the Group/Company. The Group/Company uses commodity derivatives for trading, as laid
down in its strategy and its electricity trading policy.
As explained below the Group/Company has two separate portfolio of commodity derivatives,
one is fair value through profit and loss and the other is own use. For first one it is used so called
“Trading model” and for the second one is so called “Retail model”. The material difference
between “Trading model” and “Retail model” in the case of physical contracts is that physical
contracts are not concluded for the purpose of trading, but for the actual sale of electricity to end
customers. Therefore, the booking of these transactions is carried out in accordance with IFRS
15. Until the physical contract is settled, it shall not be recognised. In accordance with IFRS 15,
revenue and expenses from the sale of the cost value of the goods sold are booked and
recognized only when the supply contract has been realized. To the extent that the physical sale
of quantities and prices is not covered by the physical purchase of quantities and prices, and to
the extent that there is an increase in purchase price of electricity compared to the originally
agreed price of electricity for sale, onerous contract provisions are formed for the loss disclosed
in an individual contract. Both, retail and trading portfolios are clearly separated (by accounts
and policies in place).
The fair value of outstanding commodity derivatives as at the date of the statement of financial
position is determined using publicly available information about the market value of
commodity derivatives as at the date of the statement of financial position as issued by relevant
institutions. Gains and losses are recognised in operating profit or loss as gains and losses on
derivative financial instruments.
If forward purchases and sales related to the physical delivery of electricity are considered
contracts concluded in the ordinary course of business of the Group (“own use” contracts) they
are not subject to the scope defined under IFRS 9. This applies when the following conditions
are met:
− the physical delivery of goods takes place based on the contract,
− the quantities sold or purchased are consistent with the Group’s/Company’s business
needs,
− the contract is binding and cannot be considered optional.
Forward financial contracts which do not relate to physical delivery in the electricity trade do
not meet the above conditions, the Group/Company treats them as financial instruments
defined under IFRS 9. In the financial statements, revenue from the sale of goods and the
costs of goods sold arising from commodity forward transactions are recognised at fair value.
Outstanding contracts are remeasured to fair value at the date of the statement of financial
position, and changes of the fair value are recognised as gains and losses on derivative
financial instruments in the operating part of the statement of profit or loss.
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When a commodity derivative is designated as the hedging instrument in a hedge of the
variability in cash flows attributable to a recognised asset or liability or a forecast transaction,
the effective portion of the gain or loss on the instrument is recognised directly in other
comprehensive income. The ineffective portion of the gain or loss on the instrument is
recognised in profit or loss as a gain or loss on the derivative financial instruments.
The effects of derivatives arising from physical contracts, not defined as hedges, in the case
of cash flow variability exposure or failure of attribution to an individual risk, associated with a
recognised asset or liability, are recognised in operating profit or loss as gains and losses on
derivative financial instruments using net principle on individual contractual basis.
The Group has commodity derivatives (electricity, oil) recognised at fair value through profit or
loss and in the hedging reserve. The Company has commodity derivatives recognised both at
fair value through profit or loss (electricity, oil) and in the hedging reserve (electricity).
Interest rate swaps and collars
Interest rates on loans received are exposed to a risk of interest rate fluctuations that is hedged
against using interest rate swaps and collars. The fair value of outstanding interest rate swaps
and collars at the date of the statement of financial position is determined by discounting future
cash flows arising as a result of a variable interest rate (interest proceeds from a swap) and a
fixed interest rate (payment of interest on a swap).
When an interest rate swap is designated as the hedging instrument in a hedge of the variability
in cash flows attributable to a recognised asset or liability or a forecast transaction, the effective
portion of the gain or loss on the instrument is recognised directly in other comprehensive
income. The ineffective portion of the gain or loss on the instrument is recognised in profit or
loss as a finance income or expense.
The Group/Company has interest rate swaps recognised in the hedging reserve.
c5. Financial liabilities
The Group’s/Company’s financial liabilities include liabilities arising from debt securities issued
and loans received. The Group/Company initially recognises debt securities issued on the date
that they originated. All other financial liabilities are recognised initially on the trade date, or
when the Group/Company becomes a party to the contractual provisions of the instrument. All
financial liabilities are initially recognised at fair value. After initial recognition borrowings are
measured at the amortised cost using the effective interest rate method.
d. Equity
Called-up capital
The called-up capital of the controlling company, Petrol d.d., takes the form of share capital,
the amount of which is defined in the Company’s Articles of Association. It is registered with
the Court and paid up by the owners. Dividends on ordinary shares are recognised as a liability
Capital surplus
Capital surplus may be used under the conditions and for the purposes stipulated by law.
Capital surplus consists of the general equity revaluation adjustment, which was transferred to
capital surplus on the transition to the IFRS, and the capital surplus representing the excess
of the disposal value over the carrying amount of own shares paid to the Company’s
Supervisory Board members as a bonus.
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Legal reserves
Legal reserves comprise shares of profit from previous years that have been retained for a
dedicated purpose, mainly for offsetting eventual future losses. When created, they are
recognised by the body responsible for the preparation of the annual report or by means of a
resolution of this body.
In accordance with the Companies Act, legal reserves may be used in excess to increase the
share capital from the assets of the company and to cover net and carried-forward losses,
provided that the profit reserves are not used at the same time to pay out profits to
shareholders.
Reserves for own shares
If the parent company or its subsidiaries acquire an ownership interest in the parent company,
the amount paid, including transaction costs less tax, is deducted from the total equity in the
form of own shares until such shares are cancelled, reissued or sold. If own shares are later
sold or reissued, the consideration received is included in the capital surplus net of transaction
costs and related tax effects.
Other profit reserves
At the time of preparing the annual report, the Group/Company may establish other profit
reserves of up to 50 percent of the net profit for the year. Other profit reserves may be used
for any purpose in accordance with the law, the statutes, the corporate policy and the
resolutions of the General Meeting of Shareholders.
Fair value reserve
The fair value reserve comprises the effects of valuing financial assets at fair value through
other comprehensive income and actuarial gains and losses related to the provisions for
employee post-employment and other long-term benefits.
Hedging reserve
The hedging reserve comprises the effect of changes in the fair value of derivative financial
instruments designated as effective in hedging against the variability in cash flows.
e. Intangible assets
Goodwill
The Group’s goodwill is the result of business combinations.
Goodwill is measured at cost less impairment. The Group measures the non-controlling
interests in the acquiree at the proportionate share of the acquiree’s identifiable net assets.
The Company’s goodwill arises on the upstream merger of a subsidiary. An upstream merger
of a subsidiary to the controlling company is accounted for at the carrying amount of the assets
in the top level of the Group. In the case of any goodwill arising from a business combination,
goodwill is recognised at the Group’s cost. Any difference between the net assets of the
merged company plus goodwill and the investment in the merged company is recognised in
other profit reserves.
Right to use concession infrastructure
The Group/Company recognises an intangible non-current asset arising from a service
concession arrangement when it has a right to charge for the usage of the concession
infrastructure. An intangible non-current asset received as a consideration for providing
construction or upgrade services in a service concession arrangement is measured at fair
value upon initial recognition. Subsequent to the initial recognition, the intangible non-current
asset is measured at cost less accumulated depreciation and any accumulated impairment
losses. The duration of the right is linked to the duration of the concession agreement.
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| Number of | ||||
| No. | Country | concessions | Description of the agreement | Area |
| 1 | Slovenia | 12 | Concession agreements for heat generation and distribution | Heating systems |
| Concession agreement for the construction of a central wastewater treatment | ||||
| plant for the treatment of municipal wastewater and rainwater in the territory of | ||||
| 2 | Slovenia | 4 | individual municipalities | Wastewater treatment |
| 3 | Slovenia | 31 | Concession agreement – Natural gas distribution | Natural gas |
| Agreement on the financing of the design, construction and operation of a gas | ||||
| 4 | Serbia | 5 | distribution system and the performance of activities of general interest | Natural gas |
| Amount of | Amount of | Value of the | Value of the | |||
| Concession | Duration of | revenue in 2023 | revenue in 2022 | concession fee | concession fee | |
| No. | period | concessions | in EUR | in EUR | for 2023 in EUR | for 2022 in EUR |
| 1 | from 2003 to 2044 | 10 to 35 years | 9,166,197 | 6,399,774 | 36,682 | 36,942 |
| 2 | from 1999 to 2043 | 25 to 30 years | 3,502,234 | 2,792,970 | 6,545 | 15,896 |
| 3 | from 1994 to 2055 | 28 to 35.5 years | 11,448,148 | 12,238,569 | 644,030 | 815,068 |
| from 1997 | ||||||
| 4 | onwards | open-ended | 933,531 | 1,040,560 | - | - |
Emission allowances
Under intangible assets, the Group/Company recognises emission allowances for the
management of plants that require a greenhouse gas emission permit.
Other intangible assets
Other intangible fixed assets with finite useful lives are carried at cost less accumulated
depreciation and accumulated impairment losses. The Group/Company mainly recognises
computer software as material and other rights.
Amortisation
Amortisation is calculated on a straight-line basis, taking into account the useful life of
intangible fixed assets. Emission allowances are not amortised as they are purchased on an
annual basis and are used in the same way.
Amortisation rates for the current and comparative years are as follows:
| (in %) | 2023 | 2022 |
| Right to use concession infrastructure | 2.00-20.00 | 2.00-20.00 |
| Material and other rights | 3.33-33.33 | 3.33-33.33 |
Amortisation rates depend on the terms of the concession agreements.
Amortisation methods, useful lives and residual values are reviewed at each financial year-
end and adjusted if appropriate.
The impairment of assets is detailed in Policy j2.
f. Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation
and accumulated impairment losses, with the exception of land, which is measured at cost less
accumulated impairment losses. Items of property, plant and equipment are subsequently
measured using the cost model.
Depreciation
Depreciation is calculated on a straight-line basis, taking into account the useful life of each
part (component) of an item of property, plant and equipment. Leased assets are depreciated
by taking into account the lease term and their useful lives. Land is not depreciated.
Construction work in progress is not depreciated.
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Depreciation rates for the current and comparative periods are as follows:
| (in %) | 2023 | 2022 |
| Buildings: | ||
| Buildings at service stations | 2.50-10.00 | 2.50-10.00 |
| Above-ground and underground reservoirs | 1.00-25.00 | 1.00-25.00 |
| Underground service paths at service stations | 5.00-14.30 | 5.00-14.30 |
| Other buildings | 1.50-16.67 | 1.50-16.67 |
| Machinery: | ||
| Pumping equipment at service stations | 5.00-25.00 | 5.00-25.00 |
| Freight cars, rail tankers | 25.00 | 25.00 |
| Equipment: | ||
| Mechanical and electronic equipment for maintenance of other | 10.00-25.00 | 10.00-25.00 |
| Service station equipment equipment | 3.33-20.00 | 3.33-20.00 |
| Motor vehicles | 10.00-25.00 | 10.00-25.00 |
| Computer hardware | 15.00-25.00 | 15.00-25.00 |
| Office equipment, furniture | 6.70-16.10 | 6.70-16.10 |
| Small tools | 33.33 | 33.33 |
| Environmental fixed assets | 4.00-25.00 | 4.00-25.00 |
Depreciation rates vary due to the different useful lives of the individual construction facilities,
machinery and equipment.
The impairment of assets is detailed in Policy j2.
g. Investment property
Investment property is property held by the Group/Company either to earn rental income or for
capital appreciation or for both. This is measured at cost less accumulated depreciation and
accumulated impairment losses. The depreciation method and rates are the same as for
property, plant and equipment. The impairment of assets is detailed in Policy j2.
The Group/Company considers as investment property all property held by the
Group/Company that is fully or partially leased out to third parties. The Group’s/Company’s
consideration takes into account the intended use of the property and the long-term goals
pursued.
Property that is leased out as a whole is recognised as investment property based on separate
records. The Group/Company recognises parts of the property that are leased out and
constitute an integral part of the property used for the performance of core activities as
investment property, insofar as that part of the property can be sold or leased separately from
the rest of the property. If parts of the property cannot be sold separately, the property is only
investment property if an insignificant part is used for the performance of the Group/Company’s
core activity.
h. Leases
The Group/Company holds various items of business property (land, business premises and
buildings), equipment and cars under a lease. Lease conditions are subject to negotiation on
a case-by-case basis and vary depending on the term and type of the lease. The
Group/Company assesses at contract inception whether a contract is, or contains, a lease.
That is the case if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for a consideration.
The Group/Company determines the lease term based on the noncancellable period of a lease,
taking into account the period covered by an option to extend the lease and the period covered
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by an option to terminate the lease. The Group/Company also assesses the probability of the
above options.
The term of a lease depends on the type of the leased asset and the range:
− from 5 to 30 years for land,
− from 5 to 20 years for business premises and buildings,
− from 1 to 10 years for equipment,
− from 3 to 6 years for cars.
The Group/Company applies a single recognition and measurement approach for all leases,
except for short-term leases whose lease term expires earlier than 12 months from initial use
and leases of low-value assets. Low-value leases are leases of assets with an individual value
of less than EUR 4,300 (the value of the new asset being leased is taken into account). With
regards to the leases of low-value assets and short-term leases, the Group/Company records
lease payments as an expense for the period to which the lease relates.
For all other leases, the Group/Company has recognised lease liabilities and right-of-use
assets.
The Group/Company recognises right-of-use assets at the commencement date of the lease.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised initially, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives received.
The depreciation rates of right-of-use assets are as follows:
| (in %) | 2023 | 2022 |
| Lands | 3.33-20.00 | 3.33-20.00 |
| Buildings | 5.00-20.00 | 5.00-20.00 |
| Equipment | 10.00-100.00 | 10.00-100.00 |
i. Inventories
Inventories of merchandise and materials are measured at the lower of the cost and net
realisable values.
Damaged, expired and unusable inventories are written off regularly during the year on an
item-by-item basis.
The cost of inventory is determined under the moving average cost method for fuel stock and
under the FIFO method for merchandise inventory.
j. Impairment
j1. Financial assets
In accordance with the IFRS 9, the Group/Company uses the expected credit loss model (for
trade receivables, IFRS 15 assets under contracts with customers and loans) based on which
the Group/Company not only recognises incurred losses but also expected future losses.
Objective evidence that financial assets are impaired includes default or delinquency by a
debtor, restructuring of an amount due to the Group/Company for which the Group/Company
has granted its approval, indications that a debtor will enter bankruptcy, and the disappearance
of an active market for an instrument. For an investment in an equity security, a significant or
prolonged decline in its fair value below its cost is objective evidence of impairment.
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The Group and the Company use a simplified lifetime expected credit loss model to value
receivables in accordance with the IFRS 9.
The Expected Credit Loss (ECL) is calculated as the product of:
− Unsecured receivables from the partner, for the calculation of which credit insurance, bank
guarantees, high-quality guarantees and mortgages (Earnings at Default – EAD) are taken
into account as eligible collateral,
− Probabilities of default by the partner based on an internally developed model that takes
into account the Group’s business data with the partner and the partner’s financial data (5
selected financial indicators with statistically strong explanatory power), the external credit
rating of the country in which the partner is domiciled and the estimated cyclicality of the
industry in which the company operates (Probability of Default – PD).
Impairment assessment is based on expected credit losses (ECLs) linked to a default on
receivables and loans that is possible within the next 12 months, unless there has been a
significant increase in credit risk since initial recognition. In such a case, the impairment
assessment is determined based on the probability of default over the lifetime of the financial
asset (LECL). ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group/Company expects to
receive. The expected cash flows will include cash flows from the sale of collateral and the
expected credit loss is also reduced by expected offsets of trade receivables against trade
payables.
The Group/Company considers a financial asset to be in default when contractual payments
are 60 days past due. However, in certain cases, the Group/Company may also consider the
credit risk to be higher when information indicates that the Group/Company is unlikely to
receive the outstanding contractual amounts in full. A financial asset is written off when there
is no reasonable expectation of recovering contractual cash flows.
The Group/Company recognises the creation, reversal of allowances and recoveries of written-
off receivables as net allowances for operating receivables within operating costs.
The Group/Company evaluates evidence about the impairment of loans individually for each
significant loan.
j2. Non-financial assets
On each reporting date, the Group/Company reviews the carrying amounts of significant non-
financial assets to determine whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated.
The Group/Company determines the recoverable amount of an asset using the present value
method of expected cash flows, which is based on the multi-year future financial plans of cash-
generating units approved by the Supervisory Board. The assumptions used in the calculation
of the net cash flows (long-term growth rate of cash flows, cash flow projection, projection
period and discount rate) are based on past operations and reasonably expected operations
in the future. Cash flow projection periods reflect the operations and investment activities of
individual companies. Growth rates of free cash flows are based on the expected price growth
rates.
In the case of points of sale, the Group/Company defined that it checks for indications of
impairment at the level of the point-of-sale network rather than at the level of individual points
of sale. Based on an analysis of the interdependence of individual points of sale, the
Group/Company determined that identifying the point-of-sale network in an individual country
as a level at which to check for signs of impairment was the most appropriate approach. If
there are indications of impairment at the level of the point-of-sale network, the impairment is
carried out at the level of the individual point-of-sale.
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Impairment of investments in subsidiaries
Based on internal and external sources of information, the Company verifies on a regular basis
whether there is an indication that investments in subsidiaries may be impaired. The Company
determines the recoverable amount using the same method as for other non-financial assets.
k. Provisions
The amount of the provisions is determined as the present value of payments that the
Group/Company will be expected to make based on the contracts it has concluded and the
applicable legislation. To determine the amount, the Group/Company relies on actuarial
methods and on opinions provided by legal experts.
Significant provisions include:
Provisions for employee post-employment and other long-term benefits
Pursuant to the law, the collective agreement and the internal rules, the Group/Company is
obligated to pay its employees jubilee benefits and post-employment benefits on retirement,
for which it has established long-term provisions. The business cooperation agreements
entered into by Group companies with service station operators stipulate that the rights of
employees at third-party operated service stations to jubilee benefits and post-employment
benefits on retirement are equal to the rights of Group company employees. The contractual
obligation of Group companies to reimburse the costs arising from such rights to service station
operators represents a basis for the recognition of long-term provisions. Other obligations
related to employee post-employment benefits do not exist.
The provisions amount to the estimated future payments for post-employment benefits on
retirement and jubilee benefits discounted to the end of the reporting period. The calculation is
performed separately for each employee by taking into account the costs of the post-
employment benefits on retirement and the costs of all the expected jubilee benefits until
retirement. The calculation using the projected unit credit method is performed by a certified
actuary. Post-employment benefits on retirement and jubilee benefits are charged against the
provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas
the adjustment of post-employment benefits or unrealised actuarial gains or losses arising from
post-employment benefits are recognised in other comprehensive income.
Provisions for lawsuits
The Group/Company makes provisions based on estimates by professional services or
external legal advisers of the likely outcome of lawsuits. The appropriateness of the
provisioning is examined on a case-by-case basis, taking into account the amount of the claim,
the subject matter of the lawsuit, the allegations made by the claimant and the conduct of the
individual proceedings. Several lawsuits have been filed against the Group and Group
companies for which the potential need for provisions is estimated on an ongoing basis.
Provisions for onerous contracts
The Group/Company creates provisions for onerous contracts when the market situation
causes the costs of meeting contractual obligations to exceed the expected economic benefit
of long-term contracts.
The provisions are determined based on the estimated purchasing and selling price levels and
quantities, taking into account the costs to sell and general and administrative costs.
l. Deferred income
Government and other subsidies received to cover costs are recognised as a decrease in the
corresponding costs. Subsidies received as compensation for assets are recognised strictly as
income over the periods in which the costs that they are intended to compensate are incurred.
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The income, or the decrease in costs, is recognised when it can be reasonably expected that
it will result in receipts or where it is sufficiently certain that no unfulfilled conditions exist.
m. Revenue from contracts with customers
Revenue from contracts with customers is recognised once the control of goods or services is
transferred to a customer in an amount that reflects the consideration the Group/Company
expects to be entitled to in exchange for such goods or services. Revenue from contracts with
customers is recognised at the fair value of the consideration received or receivable, net of
returns and discounts, trade discounts and volume rebates. Revenue is recorded when the
customer obtains control of the goods or benefits from the services rendered.
Revenue is recognised as follows:
Sale of goods
Sales revenue includes revenue from the sale of petroleum products, LPG and other
alternative energies (compressed natural gas), electricity, natural gas, revenue from the sale
of merchandise (foodstuffs, tobacco products, lottery, vouchers and cards, Coffee to Go, Fresh
products, automotive products and spare parts), biomass, tyres, tubes and batteries.
A sale of goods is recognised when the Group/Company delivers goods to a customer, the
customer accepts the goods, and the collectability of the related receivables is reasonably
assured. As of the sale, the Group/Company no longer has control of the goods or services
sold. Sales revenue does not include duties paid upon the purchase and upon the sale of the
goods.
With respect to contracts on the supply of electricity or natural gas, the Group/Company
transfers control over time, while the customer receives and uses benefits deriving from the
Group’s/Company’s performance obligation as the latter is satisfied. For measuring revenue
over the time the Group/Company uses output method.
Revenue from the sale of electricity also includes revenue from the sale of electricity generated
by solar, wind and hydropower plants, as well as the sale of other energy produced by Energy
and Solutions.
Revenue from transportation services is presented and recognised as a separate performance
obligation in service revenue.
Sale of services
Revenue from services includes transportation, storage and fuel handling revenue, income
from payment cards, car wash revenue, revenue from sales promotion and other services,
revenue from natural gas distribution, revenue from the maintenance and servicing of charging
mobile stations and revenue from installation service for solar power plants.
A sale of services is recognised according to input method which measures progress towards
satisfying performance obligation indirectly, based on consumed resources in proportion to
total expected resources.
For long-term projects, the revenue from services rendered is recognised based on the stage
of completion (cost-to-cost method) as at the balance sheet date. Under this method, the
revenue is recognised in the accounting period in which the services are rendered. The
percentage of completion is based on the costs incurred to the estimated total cost to complete
the project.
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Instalment sales
In instalment sales, the Group/Company immediately recognises revenue from sale of goods
and finance income deferred over the entire contract term. The finance income is assessed
based on discounted future cash flows flowing to the Group/Company. The Group/Company
mainly sells built solar power plants in instalments.
Sales in the name and for the account of third parties
The Group/Company also sells merchandise to customers that is the direct property of the
suppliers at the time of sale. Under contracts with customers and suppliers, the
Group/Company receives, in return for brokering the sale, a pre-agreed difference between
the final selling price and the purchase price, which the Group/Company recognises in sales
revenue, trade goods and services.
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. The Group’s/Company’s contract assets include accrued revenue from goods
and services delivered to customers.
Trade receivables
A receivable is the Group’s/Company’s right to an amount of consideration that is unconditional
(i.e. only the passage of time is required before the payment of the consideration is due). See
the accounting policies on the recognition of financial assets in the Financial assets section.
Contract liabilities
A contract liability is an obligation to transfer goods or services to a customer for which the
Group/Company has received consideration. The Group’s/Company’s contract liabilities
include the liabilities from prepayments received, the loyalty scheme and granted discounts.
Contract liabilities are recognised as revenue when the Group/Company satisfies its
performance obligation.
Variable consideration
Variable consideration refers to volume rebates granted to customers.
The Group/Company provides retrospective volume rebates to certain customers once the
quantity of products purchased during the period exceeds a threshold specified in the contract.
Rebates are offset against amounts payable by the customer. To estimate the variable
consideration for the expected future rebates, the Group/Company applies the most likely
amount method for contracts with the expected value method. The selected method that best
predicts the amount of variable consideration is primarily driven by the number of volume
thresholds contained in the contract. The Group/Company then applies the requirements on
constraining estimates of variable consideration and recognises a refund liability for the
expected future rebates.
n. Finance income and expenses
Finance income comprises interest income on financial assets, gains on the disposal of
financial assets at fair value through other comprehensive income, changes in the fair value of
financial assets at fair value through profit or loss, foreign exchange gains and gains on
hedging instruments that are recognised in profit or loss. Interest income is recognised as it
accrues using the effective interest method.
Dividend income is recognised in the Company’s statement of profit or loss on the date that a
shareholder’s right to receive payment is established.
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Finance expenses comprise borrowing costs (unless capitalised), foreign exchange losses,
changes in the fair value of financial assets at fair value through profit or loss and losses on
hedging instruments that are recognised in profit or loss. Borrowing costs are recognised in
profit or loss using the effective interest method.
o. Determination of fair value
The methods of determining the fair values of individual groups of assets for measurement or
reporting purposes are described below.
Receivables and loans
The fair value of receivables and loans is calculated as the present value of future cash flows,
discounted at the market rate of interest at the end of the reporting period. The estimate takes
into account the credit risk associated with these financial assets.
Derivative financial instruments
− The fair value of forward contracts equals their market price on the reporting date.
− The fair value of interest rate swaps at the reporting date is assessed by discounting future
cash flows arising from the variable interest rate (interest received from a swap) and the
fixed interest rate (interest paid under a swap).
− The fair value of commodity derivatives equals their market price on the reporting date,
which is determined using publicly available information about the market value of
commodity derivatives as at the date of the statement of financial position as issued by
relevant institutions.
Non-derivative financial liabilities
For reporting purposes, fair value is calculated using the present value of future payments of
the principal and interest, discounted at the market rate of interest at the end of the reporting
period.
r. Earnings per share
Because the Group/Company has no convertible bonds or share options granted to
employees, its basic earnings per share are the same as its diluted earnings per share. The
basic earnings per share are calculated by dividing the profit or loss attributable to the owners
of the controlling company by the weighted average number of ordinary shares during the
period.
s. Operating segments
An operating segment is a component of the Group that engages in business activities from
which it earns revenue and incurs expenses that relate to transactions with any of the Group’s
other components. Segments differ from one another in terms of risks and returns. Their results
are reviewed regularly by the Management Board (Chief Operating Decision Maker) to make
decisions about the resources to be allocated to a segment and assess the Group’s
performance.
The Group uses the following segments in the preparation and presentation of its financial
statements:
- fuels and petroleum products,
- merchandise and services,
- energy and solutions, and
- other.
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t. Statement of cash flows
The section of the statement of cash flows referring to operating activities has been prepared
using the indirect method based on data derived from the statement of financial position as at
31 December 2022 and 31 December 2023 and data derived from the statement of profit or
loss for the period January to December 2023. The default interest paid and received in
connection with operating receivables and interest on loans is allocated to cash flows from
operating activities. Dividends paid are allocated to cash flows from financing activities and
dividends received are classified as investing cash flows.
New standards and interpretations relevant for the Group and the Company, but not yet
effective
The standards and interpretations disclosed below have been issued but were not yet effective
as of the date of issuance of the consolidated/separate financial statements. The
Group/Company intends to adopt these standards and interpretations, if applicable, in the
preparation of its financial statements when they become effective. The Group/Company did
not adopt any of the standards early.
Amendments to the IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on
22 September 2022 and effective for annual periods beginning on or after 1 January
2024). The amendments relate to sale and leaseback transactions that satisfy the
requirements of the IFRS 15 to be accounted for as a sale. The amendments require the seller-
lessee to subsequently measure liabilities arising from the transaction and in such a way that
it does not recognise any gain or loss related to the right of use that it retained. This means
the deferral of such a gain even if the obligation is to make variable payments that do not
depend on an index or a rate. The Group/Company is currently assessing the impact of the
changes on its financial statements.
Classification of liabilities as current or non-current – Amendments to the IAS 1
(originally issued on 23 January 2020 and subsequently amended on 15 July 2020 and
31 October 2022, ultimately effective for annual periods beginning on or after 1 January
2024).
These amendments clarify that liabilities are classified as either current or non-current,
depending on the rights that exist at the end of the reporting period. Liabilities are non-current
if the entity has a substantive right, at the end of the reporting period, to defer settlement for at
least twelve months. The guidance no longer requires such a right to be unconditional. The
October 2022 amendment established that loan covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-current at the reporting
date. The Management’s expectations of whether they will subsequently exercise the right to
defer settlement do not affect the classification of liabilities. A liability is classified as current if
a condition is breached at or before the reporting date even if a waiver of that condition is
obtained from the lender after the end of the reporting period. Conversely, a loan is classified
as non-current if a loan covenant is only breached after the reporting date. In addition, the
amendments include clarifying the classification requirements for debt that a company might
settle by converting it into equity. ‘Settlement’ is defined as the extinguishment of a liability with
cash, other resources embodying economic benefits or an entity’s own equity instruments.
There is an exception for convertible instruments that might be converted into equity, but only
for those instruments where the conversion option is classified as an equity instrument as a
separate component of a compound financial instrument. The Group/Company is currently
assessing the impact of the changes on its financial statements.
Amendments to the IAS 7 Cash Flow Statement and IFRS 7 Financial Instruments:
Disclosures: Supplier Financing Arrangements (issued on 25 May 2023).
In response to concerns from users of financial statements about the inadequate or misleading
disclosure of financing arrangements, in May 2023 the IASB issued amendments to the IAS 7
and IFRS 7 to require the disclosure of financing arrangements by suppliers. The amendments
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require disclosures about financing arrangements with an entity’s suppliers to enable users of
the financial statements to assess the effects of those arrangements on the entity’s liabilities
and cash flows and on the entity’s exposure to liquidity risk. The additional disclosure and
reporting requirements are intended to increase the transparency of supplier financing
arrangements. The amendments do not affect recognition or measurement principles, only
disclosure and reporting requirements. The new disclosure requirements will apply to annual
reporting periods beginning on or after 1 January 2024. The amendments have not yet been
endorsed by the EU. The Group/Company is currently assessing the impact of the amendment
and plans to adopt it on the required effective date.
Amendments to the IAS 21 Lack of Substitutability (issued on 15 August 2023).
In August 2023, the IASB issued amendments to the IAS 21 to help entities assess the
convertibility between two currencies and determine the spot exchange rate when convertibility
is lacking. The amendments affect an entity if it has a transaction or transacts in a foreign
currency that is not convertible into another currency at the measurement date for a specified
purpose. The amendments to the IAS 21 do not specify detailed requirements about how to
measure spot exchange rates. Instead, they provide a framework under which an entity can
fix the spot exchange rate at the measurement date. No retrospective correction of
comparative information is allowed when applying the new requirements. The amounts
concerned are translated at the estimated spot exchange rates at the date of initial application,
with an adjustment to retained earnings or to the translation reserve for cumulative translation
differences. The amendments have not yet been endorsed by the EU. The Group/Company is
currently assessing the impact of the changes on its financial statements.
4. 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 revenue and incurs expenses that relate to transactions with any of the Group’s
other components. The results of the operating segments are reviewed regularly by the
Management Board (Chief Operating Decision Maker) to make decisions about the resources
to be allocated to a segment and assess the Group’s performance.
Segment reporting is presented in more detail in the business section of the report in the
Chapters Performance analysis of the Petrol Group 2023 and Operations by product groups.
The Management Board monitors data in four segments.
The Group uses the following segments in both the preparation and presentation of its financial
statements:
- fuels and petroleum products,
- merchandise and services,
- energy and solutions,
- other.
Fuels and petroleum products include:
- sales of petroleum products,
- sales of liquefied petroleum gas and other alternative energy commodities,
- transport, storage and handling of fuels,
- revenue from payment cards,
- biomass sales,
- sale of tyres, inner tubes and batteries.
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Merchandise and services include:
- sales of foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards,
- sales of Coffee To Go and Fresh products,
- sales of car cosmetics, spare parts and car wash services,
- sales promotion and other services, and
- catering facility rentals.
Energy and solutions include:
- electricity and natural gas sales and trading,
- sales of energy solutions,
- sales of heating systems,
- natural gas distribution,
- mobility and
- production of energy commodities.
Other includes:
- mining services,
- maintenance services,
- vacation rentals.
In line with the new organisation of the Company and the Group from 2022, the Group reviewed
the system for allocating the costs of the business functions to the main product groups during
2023. In order to ensure the comparability of data over time, the Group also prepared an
appropriate allocation of costs for the comparative reporting period.
The Group’s operating segments in 2022:
| Fuels and | ||||||
| petroleum | Merchandise | Energy and | Statement of | |||
| (in EUR) | products | and services | solutions | Other | Total | profit or loss |
| Revenue from contracts with customers | 5,937,520,958 | 520,514,114 | 4,865,131,891 | 12,177,973 | 11,335,344,937 | |
| Revenue from subsidiaries | (1,562,312,529) | (405,121) | (310,896,174) | (4,997,616) | (1,878,611,439) | |
| Revenue from contracts with customers | 4,375,208,430 | 520,108,993 | 4,554,235,718 | 7,180,357 | 9,456,733,497 | 9,456,733,497 |
| Cost of goods sold | (4,160,047,021) | (374,422,267) | (4,528,784,668) | (30,992) | (9,063,284,948) | (9,063,284,948) |
| Gross profit | 215,161,408 | 145,686,726 | 25,451,050 | 7,149,365 | 393,448,549 | 393,448,549 |
| Operating profit or loss | (32,613,273) | 35,242,851 | (17,442,269) | 6,899,818 | (7,912,872) | (7,912,872) |
| Depreciation of PPE, right-of-use assets, inv. property | ||||||
| and amortisation of intangible assets | (58,516,998) | (8,544,958) | (28,214,192) | (1,023,922) | (96,300,070) | (96,300,070) |
| EBITDA | 18,208,757 | 56,128,063 | 13,369,811 | 8,611,316 | 96,317,947 | 96,317,947 |
| Depreciation and amortisation | (96,300,070) | |||||
| Net allowance for trade receivables | (7,930,749) | |||||
| Share of profit or loss of equity accounted investees | 3,328,395 | |||||
| Net finance expense | (5,228,875) | |||||
| Profit/(loss) before tax | (9,813,352) |
EBITDA and gross profit are alternative performance measures and not defined by IFRS. It can be calculated differently by different parties.
EBITDA = Operating profit + Net allowances for operating receivables + Depreciation and amortisation charge.
Gross profit = Sale revenue – Cost of goods sold.
The Group’s operating segments in 2023:
| Fuels and | ||||||
| petroleum | Merchandise | Energy and | Statement of | |||
| (in EUR) | products | and services | solutions | Other | Total | profit or loss |
| Revenue from contracts with customers | 4,356,063,124 | 571,925,022 | 3,412,083,143 | 14,752,951 | 8,354,824,240 | |
| Revenue from subsidiaries | (936,954,027) | (706,498) | (426,608,029) | (7,878,847) | (1,372,147,401) | |
| Revenue from contracts with customers | 3,419,109,097 | 571,218,524 | 2,985,475,114 | 6,874,104 | 6,982,676,839 | 6,982,676,839 |
| Cost of goods sold | (3,065,292,527) | (406,419,814) | (2,832,219,757) | (1,175,922) | (6,305,108,020) | (6,305,108,020) |
| Gross profit | 353,816,570 | 164,798,710 | 153,255,357 | 5,698,182 | 677,568,819 | 677,568,819 |
| Operating profit or loss | 57,994,007 | 41,952,344 | 76,232,419 | 3,993,903 | 180,172,673 | 180,172,673 |
| Depreciation of PPE, right-of-use assets, inv. property | ||||||
| and amortisation of intangible assets | (48,133,305) | (20,297,819) | (28,276,584) | (775,236) | (97,482,944) | (97,482,944) |
| EBITDA | 105,564,022 | 60,836,359 | 106,588,611 | 4,154,124 | 277,143,116 | 277,143,116 |
| Depreciation and amortisation | (97,482,944) | |||||
| Net allowance for trade receivables | 512,501 | |||||
| Share of profit or loss of equity accounted investees | 3,724,137 | |||||
| Net finance expense | (16,102,653) | |||||
| Profit/(loss) before tax | 167,794,157 |
EBITDA and gross profit are alternative performance measures and not defined by IFRS. It can be calculated differently by different parties.
EBITDA = Operating profit + Net allowances for operating receivables + Depreciation and amortisation charge.
Gross profit = Sale revenue – Cost of goods sold.
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Assets and net investments are not disclosed by segment but by geographical area, as
reviewed by the Management Board.
Additional information about the geographical areas in which the Group operates:
| Revenue from contracts with | ||||||
| customers | Total assets | Net investments | ||||
| 31 December | 31 December | |||||
| (in EUR) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Slovenia | 3,458,018,821 | 4,017,985,870 | 1,542,384,679 | 1,674,869,418 | 46,668,049 | 35,563,085 |
| Croatia | 1,172,473,020 | 1,622,605,372 | 759,107,434 | 735,407,533 | 35,389,310 | 19,592,304 |
| Austria | 301,540,807 | 468,110,434 | 4,646,160 | 5,070,379 | - | - |
| Bosnia and Herzegovina | 235,040,555 | 355,988,228 | 97,068,583 | 93,997,700 | (723,139) | 357,945 |
| Serbia | 144,085,084 | 233,284,499 | 114,836,968 | 116,865,024 | 1,475,326 | 4,046,258 |
| Montenegro | 55,910,982 | 83,258,002 | 32,966,853 | 35,279,180 | 125,224 | 227,712 |
| Romania | 6,071,194 | 4,279,766 | 586,688 | 508,318 | - | - |
| Macedonia | 3,315,895 | 6,457,655 | 234,500 | 228,555 | - | - |
| Other countries | 1,606,220,481 | 2,664,763,671 | 1,937,993 | 1,941,861 | - | 7,710 |
| 6,982,676,839 | 9,456,733,497 | 2,553,769,858 | 2,664,167,968 | 82,934,770 | 59,795,014 | |
| Jointly controlled entities | 350,240 | 1,277,748 | ||||
| Associates | 59,316,541 | 56,968,277 | ||||
| Unallocated assets | 21,826,714 | 18,190,424 | ||||
| Total assets | 2,635,263,353 | 2,740,604,417 | ||||
For the purpose of presenting geographical areas, revenue generated in a particular area is
determined based on the geographical location of customers, whereas the assets are
determined based on the geographical location of assets.
Unallocated assets refer mainly to deferred tax assets.
Net investments are acquisitions and disposals of property, plant and equipment, intangible
assets and long-term investments of the Group in subsidiaries, jointly controlled entities and
associates.
5. Notes on individual items in the financial statements
5.1 Business combinations
The Group did not acquire any new company in 2023.
5.2 Changes within the Group
In 2023, Petrol d.d. acquired an additional 23 percent interest in ATET d.o.o., thus becoming
a 100 percent owner of the company.
In July 2023, GEOCOM d.o.o. was merged into Geoplin d.o.o. Ljubljana with an effective date
on 1 January 2023. The upstream merger had no impact on the Group’s financial statements
as Geoplin d.o.o., a subsidiary of Petrol d.d., Ljubljana was its sole owner.
In 2023, ATET d.o.o. established a subsidiary, ATET Mobility Zagreb d.o.o., which operates in
the Energy and Solutions segment. Atet d.o.o. is a 100 percent owner of the company.
In 2022, Petrol d.d.:
− Acquired an additional 0.06 percent interest in Geoplin d.o.o., becoming a 74.34 percent
owner of the company.
− Acquired a 50 percent interest in the jointly controlled company Vjetroelektrana Dazlina
d.o.o. in April 2022.
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Crodux Derivati Dva d.o.o. was merged into Petrol d.o.o., Zagreb in November 2022. The
upstream merger had no impact on the Group’s financial statements as Petrol d.d. was the
sole owner of Crodux Derivati Dva d.o.o.
In December 2022, Ekoen GG d.o.o. was merged into Ekoen d.o.o. with an effective date on
30 September 2022. The upstream merger had no impact on the Group’s financial statements
as Ekoen d.o.o., a subsidiary of Petrol d.d., was its sole owner.
5.3 Revenue from contracts with customers
Revenue by type of good and by timing of revenue recognition
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Revenue from the sale of goods | 6,857,961,626 | 9,333,350,614 | 5,198,822,748 | 7,224,558,474 |
| Revenue from the sale of services | 124,715,213 | 123,382,883 | 104,306,470 | 100,767,046 |
| Total revenue | 6,982,676,839 | 9,456,733,497 | 5,303,129,218 | 7,325,325,520 |
| Revenue recognised at a point in time | 4,786,235,073 | 7,208,977,321 | 4,244,317,755 | 6,729,852,402 |
| Revenue recognised over time | 2,196,441,766 | 2,247,756,176 | 1,058,811,463 | 595,473,118 |
Revenue by sales market
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Domestic sales revenue | 3,458,018,821 | 4,017,985,870 | 3,062,854,030 | 3,595,285,373 |
| EU market sales revenue | 2,851,417,263 | 4,168,513,223 | 2,008,072,223 | 3,093,819,919 |
| Non-EU market sales revenue | 673,240,755 | 1,270,234,404 | 232,202,965 | 636,220,228 |
| Total revenue | 6,982,676,839 | 9,456,733,497 | 5,303,129,218 | 7,325,325,520 |
Revenue by operating segment
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Fuels and petroleum products | 3,419,109,097 | 4,375,208,430 | 2,883,562,920 | 3,817,278,960 |
| Merchandise and services | 571,218,524 | 520,108,993 | 390,975,940 | 368,774,771 |
| Energy and solutions | 2,985,475,114 | 4,554,235,718 | 2,018,195,696 | 3,132,243,066 |
| Other | 6,874,104 | 7,180,357 | 10,394,662 | 7,028,723 |
| Total revenue | 6,982,676,839 | 9,456,733,497 | 5,303,129,218 | 7,325,325,520 |
The Group’s/Company’s revenue includes rental income. In 2023, the Group generated EUR
5,993,767 in rental income (2022: EUR 4,593,925) and the Company EUR 3,663,676 (2022:
EUR 3,369,870).
Based on the IFRS 15 Revenue from Contracts with Customers, for the agent-principal model,
excise duties and similar levies or fees are recognised with the net presentation in the financial
statements as the Company and its subsidiaries act as an „agent” and collect the excise duties
from third parties for the benefit of the government. The total amount of the excise duty
collected from customers was EUR 1,251,767,267 in 2023 and EUR 1,130,616,855 in 2022.
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Other income
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Income from grants, EU projects and other | 7,704,826 | 10,479,093 | 5,579,624 | 5,439,646 |
| Gain on disposal of plan, property and equipment | 2,104,425 | 2,826,755 | 1,130,249 | 820,584 |
| Compensation received from insurance companies | 471,663 | 269,380 | 66,507 | 28,442 |
| Compensation, lawsuits, contractual penalties received | 471,599 | 129,603 | 303,913 | 54,275 |
| Repayment of court fees | 130,771 | 123,884 | 89,018 | 100,978 |
| Income from the revaluation of oper. liabilities | - | 88,592,347 | - | - |
| Total other income | 10,883,284 | 102,421,062 | 7,169,311 | 6,443,925 |
Geoplin d.o.o.'s business with the supplier Gazprom
In 2022, the subsidiary Geoplin d.o.o. recorded a negative operating result due to the
unsupplied natural gas under a long-term contract with Russia’s Gazprom. After analysing
operational damages, the Group notified Gazprom of the consequential damages and that it
would offset the outstanding liability for natural gas supplied against a pro-rata share of the
claims for damages. At the same time, the Group terminated the contract with Gazprom on the
grounds of the unsupplied natural gas and to prevent further damages. In year 2023, the
assessment of the consequential damages continued with the engagement of specialised
technical consultants for the arbitration proceedings, while the arbitration proceedings were
also initiated before the Court of Arbitration in Vienna.
For financial reporting purposes, Geoplin d.o.o. commissioned an independent valuation of the
fair value of its liability to Gazprom as at 31 December 2023. As in the previous year, the
valuation was based on a scenario method of different present values of the expected cash
flows from the liability. Valuation considered offsetting claims from operational damages with
liabilities towards Gazprom, as the Group’s receivables from the operational damages
exceeded the liabilities. Required rates of return between 15 and 25 percent and the
anticipated end of arbitration proceedings in two years’ time were applied in valuation.
The calculated fair value of the liability to Gazprom reassessed in 2023 did not materially
deviate from the originally calculated fair value and represents about 4.9 percent of the
historical cost of the liability. If the discount rates were to increase or decrease, the fair value
would decrease by EUR 110 thousand and increase by EUR 160 thousand, respectively. The
Group estimates that a change in the remaining assumptions used in the calculation would not
have a material effect on the fair value of these liabilities.
5.4 Costs of materials
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Costs of energy | 55,769,955 | 30,102,486 | 46,231,258 | 23,082,756 |
| Costs of consumables | 8,663,511 | 8,132,585 | 5,608,842 | 4,954,424 |
| Write-off of small tools | 120,466 | 95,790 | 41,100 | 27,675 |
| Other costs of materials | 1,061,891 | 1,092,983 | 619,322 | 525,526 |
| Total costs of materials | 65,615,823 | 39,423,844 | 52,500,522 | 28,590,381 |
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5.5 Costs of services
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Costs of transport services | 42,634,431 | 45,471,308 | 33,358,008 | 34,779,327 |
| Costs of service station managers | 37,407,299 | 32,639,895 | 37,407,299 | 32,639,895 |
| Costs of fixed-asset maintenance services | 28,527,758 | 28,743,771 | 20,445,917 | 19,723,393 |
| Costs of payment transactions and bank services | 15,045,285 | 15,959,548 | 9,342,124 | 10,044,627 |
| Lease payments | 12,779,043 | 9,577,561 | 10,283,141 | 8,898,635 |
| Costs of intellectual services | 12,536,357 | 11,889,278 | 8,558,328 | 8,008,946 |
| Costs of subcontractors | 9,477,976 | 5,304,401 | 8,839,532 | 4,962,756 |
| Costs of fairs, advertising and entertainment | 7,356,510 | 7,710,875 | 5,161,353 | 4,844,865 |
| Costs of insurance premiums | 6,414,221 | 6,922,009 | 3,764,430 | 4,208,387 |
| Costs of environmental protection services | 2,670,500 | 2,496,177 | 1,736,423 | 1,507,812 |
| Costs of fire protection, physical and tech. security | 2,222,153 | 2,316,803 | 1,693,822 | 1,555,505 |
| Reimbursement of work-related costs to employees | 1,400,158 | 1,463,794 | 802,564 | 864,523 |
| Property management | 699,719 | 1,601,807 | 656,329 | 1,200,794 |
| Membership fees | 641,322 | 1,633,669 | 224,400 | 245,944 |
| Other costs of services | 6,440,033 | 6,406,429 | 3,570,191 | 2,585,819 |
| Total costs of services | 186,252,765 | 180,137,325 | 145,843,861 | 136,071,228 |
The Petrol Group
The costs of intellectual services include the cost of services performed by the auditors of the
annual report of EUR 445,898 (2022: EUR 308,150). Auditing services comprise the fee for
the auditing of the annual report of EUR 432,478 (2022: EUR 300,150). Other, non-auditing
services, stood at EUR 13,420 in 2023 (2022: EUR 8,000).
Petrol d.d., Ljubljana
The costs of professional services include the cost of services performed by the auditors of the
annual report of EUR 124,845 (2022: EUR 93,000). Auditing services comprise the fee for the
auditing of the annual report of EUR 113,525 (2022: EUR 88,000). Other, non-auditing
services, stood at EUR 11,320 in 2023 (2022: EUR 5,000).
Lease expenses
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Depreciation of right-of-use assets | 23,510,587 | 21,260,001 | 4,965,531 | 4,347,502 |
| Finance expenses | 4,114,463 | 4,557,812 | 1,345,775 | 1,315,973 |
| Lease expenses | 12,779,043 | 9,577,561 | 10,283,141 | 8,898,635 |
| Total recognised costs/expenses | 40,404,093 | 35,395,374 | 16,594,447 | 14,562,110 |
The Group’s/Company’s lease expenses include expenses for short-term leases, leases of
low-value assets and leases with variable lease payments.
5.6 Labour costs
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Salaries | 119,524,929 | 100,503,917 | 79,493,944 | 60,753,400 |
| Costs of other social insurance | 10,662,405 | 9,309,380 | 5,854,991 | 4,623,943 |
| Expense for defined contribution plan | 8,695,348 | 6,842,468 | 7,201,442 | 5,393,248 |
| Commuting allowance | 4,992,615 | 4,328,999 | 2,210,355 | 2,064,078 |
| Meal allowance | 4,953,298 | 3,813,618 | 2,998,669 | 2,642,735 |
| Annual leave allowance | 4,428,085 | 4,038,516 | 3,412,037 | 3,398,196 |
| Supplementary pension insurance | 2,189,947 | 1,928,255 | 2,062,367 | 1,800,820 |
| Other allowances and reimbursements | 5,115,897 | 4,797,156 | 1,782,002 | 1,452,877 |
| Total labour costs | 160,562,524 | 135,562,309 | 105,015,807 | 82,129,297 |
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Number of employees by formal education level as at 31 December 2022
| The Petrol Group | Petrol d.d. | |||||
| Employees at | Employees at | |||||
| third-party | third-party | |||||
| managed | managed | |||||
| Group | service | Company | service | |||
| employees | stations | Total | employees | stations | Total | |
| Level I | 38 | 5 | 43 | 14 | 5 | 19 |
| Level II | 63 | 21 | 84 | 28 | 21 | 49 |
| Level III | 100 | 7 | 107 | 10 | 7 | 17 |
| Level IV | 1,777 | 264 | 2,041 | 353 | 264 | 617 |
| Level V | 1,836 | 589 | 2,425 | 858 | 589 | 1,447 |
| Level VI | 323 | 48 | 371 | 164 | 48 | 212 |
| Level VII | 662 | 60 | 722 | 378 | 60 | 438 |
| Level VII/2 | 399 | 16 | 415 | 343 | 16 | 359 |
| Level VIII | 16 | - | 16 | 7 | - | 7 |
| Total | 5,214 | 1,010 | 6,224 | 2,155 | 1,010 | 3,165 |
Number of employees by formal education level as at 31 December 2023
| The Petrol Group | Petrol d.d. | |||||
| Employees at | Employees at | |||||
| third-party | third-party | |||||
| managed | managed | |||||
| Group | service | Company | service | |||
| employees | stations | Total | employees | stations | Total | |
| Level I | 40 | 7 | 47 | 18 | 7 | 25 |
| Level II | 80 | 19 | 99 | 33 | 19 | 52 |
| Level III | 113 | 4 | 117 | 14 | 4 | 18 |
| Level IV | 1,602 | 229 | 1,831 | 377 | 229 | 606 |
| Level V | 1,873 | 496 | 2,369 | 900 | 496 | 1,396 |
| Level VI | 328 | 54 | 382 | 188 | 54 | 242 |
| Level VII | 779 | 37 | 816 | 516 | 37 | 553 |
| Level VII/2 | 260 | 10 | 270 | 199 | 10 | 209 |
| Level VIII | 14 | - | 14 | 7 | - | 7 |
| Total | 5,089 | 856 | 5,945 | 2,252 | 856 | 3,108 |
On average, the Group and the Company had 6,006 and 2,145 employees in 2023,
respectively (2022: 6,224 and 2,128).
5.7 Depreciation and amortisation
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Depreciation of property, plant and equipment | 59,847,239 | 60,365,040 | 31,443,870 | 31,742,704 |
| Depreciation of right-of-use assets | 23,510,587 | 21,260,001 | 4,965,530 | 4,347,502 |
| Amortisation of intangible assets | 13,039,770 | 13,605,265 | 9,376,280 | 9,749,159 |
| Depreciation of investment property | 1,085,348 | 1,069,764 | 654,296 | 677,760 |
| Total depreciation and amortisation | 97,482,944 | 96,300,070 | 46,439,978 | 46,517,125 |
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5.8 Other costs
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Environmental charges and charges | ||||
| unrelated to operations | 7,543,353 | 7,891,323 | 4,975,245 | 3,567,023 |
| Sponsorships and donations | 2,631,382 | 2,404,579 | 2,446,206 | 1,788,066 |
| Impairment of inventories | 2,001,290 | 6,194,071 | 1,986,925 | 7,024 |
| Loss on sale/disposal of PPE | 1,461,391 | 518,057 | 313,366 | 324,091 |
| Impairment of PPE | 596,956 | - | 596,956 | - |
| Impairment of investments | 40,558 | - | - | - |
| Net allowance for trade receivables | (512,501) | 7,930,749 | 619,233 | 2,990,233 |
| Other costs (reversal of other provisions | ||||
| and other liabilities) | 37,588,588 | (8,462,620) | 23,795,361 | (593,642) |
| Total other costs | 51,351,017 | 16,476,159 | 34,733,292 | 8,082,795 |
Among other costs, EUR 11,837,878 in the Group (EUR 3,397,085 in the Company) in 2023
relates to the costs of recognising short-term provisions from onerous contracts with customers
for the supply of electricity and natural gas and EUR 17,853,975 in the Group/Company relates
to the cost of recognition of long-term provisions for partial non-compliance in the field of
renewable energies in transport.
In 2022, the Group/Company reversed part of the long-term provisions. The value of the
reversal of the long-term provisions exceeds the value of the provisions made, which is
reflected in the negative value of the reversal of other provisions and other liabilities.
5.9 Gain/(Loss) on derivatives
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Gain on commodity derivatives | 207,169,670 | 523,094,819 | 207,414,533 | 525,064,103 |
| Loss on commodity derivatives | (153,888,518) | (558,699,150) | (152,231,444) | (551,271,270) |
| Gain/(Loss) on derivatives | 53,281,152 | (35,604,331) | 55,183,089 | (26,207,167) |
The Group/Company recognises a gain of EUR 282,901 and a loss of EUR 487,161 on closed
financial hedging instruments in 2023.
5.10 Interests and dividends
Shares of the profit or loss of equity-accounted investees of the Petrol Group
| The Petrol Group | ||
| (in EUR) | 2023 | 2022 |
| Plinhold d.o.o. | 2,518,732 | 1,646,458 |
| Aquasystems d.o.o. | 909,295 | 912,173 |
| Knešca d.o.o. | 251,671 | 104,281 |
| Total net profit of associates | 3,679,698 | 2,662,912 |
| Soenergetika d.o.o. | 44,581 | 912,333 |
| Geoenergo d.o.o. | - | (246,684) |
| Vjetroelektrana Dazlina d.o.o. | (142) | (166) |
| Total net profit of jointly controlled entities | 44,439 | 665,483 |
| Total net finance income from interests | 3,724,137 | 3,328,395 |
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Finance income from dividends paid by subsidiaries, associates and jointly controlled
entities of Petrol d.d., Ljubljana
| Petrol d.d. | ||
| (in EUR) | 2023 | 2022 |
| Petrol Trade Handelsgesellschaft m.b.H. | 887,380 | 423,738 |
| Petrol Hidroenergija d.o.o. | 701,048 | 299,422 |
| Total subsidiaries | 1,588,428 | 723,160 |
| Aquasystems d.o.o. | 905,388 | 814,437 |
| Plinhold d.o.o. | 341,533 | - |
| Total associates | 1,246,921 | 814,437 |
| Soenergetika d.o.o. | 931,389 | 115,217 |
| Total jointly controlled entities | 931,389 | 115,217 |
| Total finance income from interests | 3,766,738 | 1,652,814 |
5.11 Finance income and expenses
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Foreign exchange differences | 46,446,583 | 80,079,268 | 44,041,710 | 74,011,689 |
| Interest income | 16,002,265 | 5,337,485 | 13,198,951 | 5,455,669 |
| Gain on currency forward contracts | 9,234,991 | 19,687,756 | 8,888,213 | 19,687,756 |
| Loss allowances for financial receivables | ||||
| reversed | - | 638,125 | - | 638,125 |
| Other finance income | 288,722 | 3,506,782 | 205,521 | 3,525,648 |
| Total finance income | 71,972,561 | 109,249,416 | 66,334,395 | 103,318,887 |
| Foreign exchange differences | (45,577,172) | (80,848,842) | (41,946,128) | (74,625,841) |
| Interest expense | (26,441,063) | (14,427,380) | (23,933,112) | (11,331,719) |
| Loss on currency forward contracts | (13,797,458) | (16,294,820) | (9,571,486) | (16,294,820) |
| Loss on interest rate swaps | - | (329,734) | - | (329,734) |
| Other finance expenses | (2,259,521) | (2,577,515) | (1,686,112) | (2,438,888) |
| Total finance expenses | (88,075,214) | (114,478,291) | (77,136,838) | (105,021,002) |
| Net finance expense | (16,102,653) | (5,228,875) | (10,802,443) | (1,702,115) |
5.12 Income tax expenses
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Current tax expense | (31,323,616) | (4,258,179) | (19,538,911) | (786,831) |
| Deferred tax | 81,428 | 11,385,725 | 3,976,082 | 2,346,643 |
| Taxes | (31,242,188) | 7,127,546 | (15,562,829) | 1,559,812 |
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| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Profit/(Loss) before tax | 167,794,157 | (9,813,352) | 108,368,410 | 17,824,066 |
| Tax at the Company’s nominal tax rate | 31,880,890 | (1,864,537) | 20,589,998 | 3,386,573 |
| Tax effect of untaxed income | (2,932,381) | (4,750,994) | (2,598,283) | (3,443,483) |
| Tax effect of expenses not deducted on | ||||
| tax assessment | 6,415,827 | 152,605 | (471,593) | (1,502,902) |
| Effect of a changed tax rate on deferred | ||||
| taxes | (2,919,097) | - | (1,957,293) | - |
| Effect of higher/lower tax rates for | ||||
| companies abroad | (1,203,051) | (664,620) | - | - |
| Taxes | 31,242,188 | (7,127,546) | 15,562,829 | (1,559,812) |
| Effective tax rate | 18.62 % | 72.63 % | 14.36 % | -8.75 % |
As at 31 December 2023, the Group has a corporate income tax receivable of EUR 5,728,330
(2022: EUR 23,897,315) and EUR 24,964,976 in income tax liabilities (2022: EUR 1,062,768).
The Group does not offset the assets and liabilities, as they represent a receivable from or a
liability to different tax administrations.
In Slovenia, the nominal corporate income tax rate stood at 19 percent in 2023 (2022: 19
percent), whereas the Group’s tax rates ranged from 9 to 24 percent. In Slovenia , the tax rate
will change to 22 percent in 2024, which is taken into account in the calculation of deferred
taxes as at 31 December 2023. The change in the tax rate decreased the net profit of the
Group by EUR 2,919,097 and of the Company by EUR 1,957,293 and decreased the other
comprehensive income of the Group by EUR 24,075 and of the Company by EUR 627,397.
Changes in deferred taxes of the Petrol Group
Deferred tax assets
| Allowance | |||||||||
| for rec. and | |||||||||
| impairment | Depreciation/ | Lease | |||||||
| (in EUR) | Investments | Provisions | of assets | Inventories | Tax loss | amortisation | liabilities | Other | Total |
| As at 1 January 2022 | 701,810 | 5,626,768 | 9,269,273 | 114,330 | 986,989 | 52,353 | 11,989,438 | 258,254 | 28,999,215 |
| Netting | (5,630,103) | ||||||||
| Total net receivables as at 1 January | |||||||||
| 2022 | 23,369,112 | ||||||||
| (Charged)/credited to the statement of | |||||||||
| profit or loss | (122,962) | (3,457,283) | (464,664) | 1,062,075 | 8,183,166 | 5,120,454 | 2,188,286 | (29,267) | 12,479,805 |
| (Charged)/credited to other | |||||||||
| comprehensive income | 3,003,714 | - | - | - | - | - | - | - | 3,003,714 |
| Foreign exchange differences | 216 | (17,203) | (3,802) | (274) | (2,011) | - | - | (1,139) | (24,213) |
| As at 31 December 2022 | 3,582,778 | 2,152,282 | 8,800,807 | 1,176,131 | 9,168,144 | 5,172,807 | 14,177,724 | 227,848 | 44,458,521 |
| Netting | (26,268,097) | ||||||||
| Total net receivables as at 31 | |||||||||
| December 2022 | 18,190,424 | ||||||||
| (Charged)/credited to the statement of | |||||||||
| profit or loss | 20,511 | 844,281 | 637,554 | (1,123,149) | (4,647,259) | 2,467,558 | 839,567 | 236,464 | (724,473) |
| (Charged)/credited to other | |||||||||
| comprehensive income | 770,682 | - | - | - | - | - | - | - | 770,682 |
| Foreign exchange differences | (195) | 27 | (278) | 293 | 259 | - | - | 404 | 510 |
| As at 31 December 2023 | 4,373,776 | 2,996,590 | 9,438,083 | 53,275 | 4,521,144 | 7,640,365 | 15,017,291 | 464,716 | 44,505,240 |
| Netting | (22,678,526) | ||||||||
| Total net receivables as at 31 | |||||||||
| December 2023 | 21,826,714 |
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Deferred tax liabilities
(in EUR)
| Right-of-use | |||||
| Investments | Fixed assets | assets | Other | Total | |
| As at 1 January 2022 | 153,956 | 27,381,250 | 11,989,438 | 48,135 | 39,572,779 |
| Netting | (5,630,103) | ||||
| Total net liabilities as at 1 January 2022 | 33,942,676 | ||||
| Charged/(credited) to the statement of profit or loss | 293 | (1,146,350) | 2,188,286 | 51,094 | 1,093,323 |
| Charged to other comprehensive income | 6,337,345 | - | - | - | 6,337,345 |
| Foreign exchange differences | (17) | (52,792) | - | - | (52,809) |
| As at 31 December 2022 | 6,491,577 | 26,182,108 | 14,177,724 | 99,229 | 46,950,638 |
| Netting | (26,268,097) | ||||
| Total net liabilities as at 31 December 2022 | 20,682,541 | ||||
| Charged/(credited) to the statement of profit or loss | - | (1,117,081) | 410,409 | (99,229) | (805,901) |
| Charged/(credited) to other comprehensive income | (1,881,505) | - | - | - | (1,881,505) |
| Foreign exchange differences | (292) | 10,908 | - | - | 10,616 |
| As at 31 December 2023 | 4,609,780 | 25,075,935 | 14,588,133 | - | 44,273,848 |
| Netting | (22,678,526) | ||||
| Total net liabilities as at 31 December 2023 | 21,595,322 |
Within deferred tax liabilities, the Group recognises deferred tax liabilities for fixed assets from
property, plant and equipment, intangible assets and right-of-use assets.
Changes in deferred taxes of Petrol d.d., Ljubljana
Deferred tax assets
| Allowance for | Depreciation/ | |||||
| (in EUR) | Investments | Provisions | receivables | amortisation | Other | Total |
| As at 1 January 2022 | 642,861 | 3,181,255 | 4,767,482 | - | 170,552 | 8,762,150 |
| Netting | (606,636) | |||||
| Total net receivables as at 1 January 2022 | 8,155,514 | |||||
| (Charged)/credited to the statement of profit or | ||||||
| loss | (65,938) | (2,374,477) | (186,129) | 5,120,327 | (147,140) | 2,346,643 |
| (Charged)/credited to other comprehensive | ||||||
| income | (177,418) | - | - | - | - | (177,418) |
| As at 31 December 2022 | 399,505 | 806,778 | 4,581,353 | 5,120,327 | 23,412 | 10,931,375 |
| Netting | (6,943,982) | |||||
| Total net receivables as at 31 December | ||||||
| 2022 | 3,987,393 | |||||
| (Charged)/credited to the statement of profit or | ||||||
| loss | 48,440 | 371,890 | 656,023 | 2,461,885 | (23,412) | 3,514,826 |
| (Charged)/credited to other comprehensive | ||||||
| income | (92,718) | - | - | - | - | (92,718) |
| As at 31 December 2023 | 355,227 | 1,178,668 | 5,237,376 | 7,582,212 | - | 14,353,483 |
| Netting | (4,600,925) | |||||
| Total net receivables as at 31 December | ||||||
| 2023 | 9,752,558 |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 239
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Deferred tax liabilities
| (in EUR) | Investments | Fixed assets | Total |
| As at 1 January 2022 | 145,380 | 461,256 | 606,636 |
| Netting | (606,636) | ||
| Total net liabilities as at 1 January 2022 | - | ||
| (Charged)/credited to other comprehensive income | 6,337,346 | - | 6,337,346 |
| As at 31 December 2022 | 6,482,726 | 461,256 | 6,943,982 |
| Netting | (6,943,982) | ||
| Total net liabilities as at 31 December 2022 | - | ||
| (Charged)/credited to the statement of profit or loss | - | (461,256) | (461,256) |
| (Charged)/credited to other comprehensive income | (1,881,801) | - | (1,881,801) |
| As at 31 December 2023 | 4,600,925 | - | 4,600,925 |
| Netting | (4,600,925) | ||
| Total net liabilities as at 31 December 2023 | - |
Pillar II Rules
Pillar II and the global minimum tax are key aspects to be taken into account in modern tax
policy and regulation. Pillar II is part of the efforts of international organisations to establish a
global minimum tax standard and aims to enforce a minimum tax rate internationally to reduce
the incidence of aggressive tax planning and profit shifting to lower tax jurisdictions. This
ensures the stability of countries’ tax revenues and promotes fair taxation. Under the
legislation, the tax is payable on the difference between the actual tax rate for each jurisdiction,
calculated under the Minimum Tax Act (ZMD), and the statutory minimum tax rate of 15
percent.
On the basis of Pillar II, the EU Directive and, consequently, the Slovenian legislation
transposing the Directive, Petrol d.d., with its registered office in Ljubljana, is subject to the
global minimum tax. The ZMD applies to financial years starting from 31 December 2023, with
the first reporting year starting in 2026.
The calculations were made by the Group/Company on the basis of the information available
at the time of the calculation and therefore the amounts obtained represent the best estimates.
Based on the calculations, the need to pay the global minimum tax only arises for companies
in Bosnia and Herzegovina. The jurisdiction of Bosnia and Herzegovina has an effective tax
rate of 9.8 percent and thus, after the substantive exclusion of income, is liable for EUR
198,567 of the tax in question. Given the current state of the law in the signatory countries, it
is not yet known whether the subsidiaries themselves or Petrol d.d., Ljubljana on their behalf
will have to pay this amount.
The Company is part of the advisory body of the Financial Administration of the Republic of
Slovenia and also cooperates with external tax experts.
5.13 Earnings per share
| The Petrol Group | Petrol d.d. | |||
| 2023 | 2022 | 2023 | 2022 | |
| Net profit attributable to owners of the controlling | ||||
| company (in EUR) | 135,362,154 | 4,520,125 | 92,805,581 | 19,383,878 |
| Number of shares issued | 41,726,020 | 41,726,020 | 41,726,020 | 41,726,020 |
| Number of own shares at the beginning of the year | 614,460 | 614,460 | 494,060 | 494,060 |
| Number of own shares at the end of the year | 614,460 | 614,460 | 494,060 | 494,060 |
| Weighted average number of ordinary shares issued | 41,111,560 | 41,111,560 | 41,231,960 | 41,231,960 |
| Diluted average number of ordinary shares | 41,111,560 | 41,111,560 | 41,231,960 | 41,231,960 |
| Basic and diluted earnings per share attributable to | ||||
| owners of the controlling company (EUR/share) | ||||
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The basic earnings per share are calculated by dividing the net profit attributable to the owners
of the controlling company by the weighted average number of ordinary shares, excluding
ordinary shares owned by the Company/Group. The Group and the Company have no potential
dilutive ordinary shares, meaning the basic and diluted earnings per share are identical.
Petrol’s shares are traded on the prime market of the Ljubljana Stock Exchange (LJSE) under
the ticker PETG.
5.14 Other comprehensive income
The Petrol Group
The effective portion of the changes in the fair value of the cash flow variability hedging
instrument decreased by EUR 14,185,913 (in 2022: an increase of EUR 17,755,033) and
increased by the deferred tax effect of EUR 2,674,767 (in 2022: a decrease of EUR 3,333,632).
The change relates to interest rate swap hedging, commodity derivative financial instruments
and currency forward contracts and increases the hedging reserve.
The balance and movement of the hedging reserve is explained in Note 5.32.
Unrealised actuarial gains and losses relate to provisions for post-employment benefits on
retirement.
Petrol d.d., Ljubljana
The effective portion of the changes in the fair value of the cash flow variability hedging
instrument decreased by EUR 12,718,319 (in 2022: an increase of EUR 34,292,220) and
increased by the deferred tax effect of EUR 1,811,369 (in 2022: a decrease of EUR 6,515,522).
The change relates to interest rate swap hedging, commodity derivative financial instruments
and increases the hedging reserve.
The balance and movement of the hedging reserve is explained in Note 5.32.
Unrealised actuarial gains and losses relate to provisions for post-employment benefits on
retirement.
5.15 Intangible assets
Intangible assets of the Petrol Group
| Long-term | ||||||
| Right to use | deferred costs | |||||
| Material and | concession | Ongoing | and emission | |||
| (in EUR) | other rights | infrastructure | Goodwill | investments | allowances | Total |
| Cost | ||||||
| As at 1 January 2022 | 57,455,821 | 130,298,591 | 160,858,241 | 4,485,643 | 291,102 | 353,389,398 |
| New acquisitions | 695,909 | 25,989 | - | 6,975,101 | 1,013,588 | 8,710,587 |
| Disposals | (398,911) | (270,036) | (19,268) | (3,115) | (119,824) | (811,154) |
| Transfers between PPE and investment property | (57,863) | (5,477,567) | - | (955,289) | - | (6,490,719) |
| Transfer from ongoing investments | 2,717,411 | 1,930,526 | - | (4,647,937) | - | - |
| Foreign exchange differences | (16,979) | (34,498) | (153,661) | 2,202 | - | (202,936) |
| As at 31 December 2022 | 60,395,388 | 126,473,005 | 160,685,312 | 5,856,605 | 1,184,866 | 354,595,176 |
| Accumulated amortisation | ||||||
| As at 1 January 2022 | (33,661,809) | (64,796,831) | (19,303) | - | - | (98,477,943) |
| Amortisation | (8,035,813) | (5,569,452) | - | - | - | (13,605,265) |
| Disposals | 235,361 | 261,887 | 19,268 | - | - | 516,516 |
| Transfers between PPE and investment property | 13,033 | 2,229,123 | - | - | - | 2,242,156 |
| Foreign exchange differences | 7,964 | 10,834 | 35 | - | - | 18,833 |
| As at 31 December 2022 | (41,441,264) | (67,864,439) | - | - | - | (109,305,703) |
| Net carrying amount as at 1 January 2022 | 23,794,012 | 65,501,760 | 160,838,938 | 4,485,643 | 291,102 | 254,911,455 |
| Net carrying amount as at 31 December 2022 | 18,954,124 | 58,608,566 | 160,685,312 | 5,856,605 | 1,184,866 | 245,289,473 |
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(in EUR)
| Long-term | ||||||
| Right to use | deferred costs | |||||
| Material and | concession | Ongoing | and emission | |||
| other rights | infrastructure | Goodwill | investments | allowances | Total | |
| Cost | ||||||
| As at 1 January 2023 | 60,395,388 | 126,473,005 | 160,685,312 | 5,856,605 | 1,184,866 | 354,595,176 |
| New acquisitions | 255,137 | 172,238 | - | 9,111,400 | 2,565,269 | 12,104,044 |
| Disposals | (6,297,308) | (878,687) | (245,396) | (1,589,302) | (9,010,693) | |
| Transfers between intangible assets | 14,429 | (15,835) | - | - | 1,406 | - |
| Transfers between PPE | - | - | - | (1,807,290) | - | (1,807,290) |
| Transfer from ongoing investments | 4,186,457 | 826,610 | - | (5,013,067) | - | - |
| Foreign exchange differences | 2,225 | 1,741 | 17,361 | 2,284 | - | 23,611 |
| As at 31 December 2023 | 58,556,328 | 126,579,072 | 160,702,673 | 7,904,536 | 2,162,239 | 355,904,848 |
| Accumulated amortisation | ||||||
| As at 1 January 2023 | (41,441,264) | (67,864,439) | - | - | - | (109,305,703) |
| Amortisation | (7,807,713) | (5,232,057) | - | - | - | (13,039,770) |
| Disposals | 6,244,333 | 878,142 | - | - | - | 7,122,475 |
| Transfers between intangible assets | (1,033) | 1,033 | - | - | - | - |
| Foreign exchange differences | (1,487) | (1,058) | - | - | - | (2,545) |
| As at 31 December 2023 | (43,007,164) | (72,218,379) | - | - | - | (115,225,543) |
| Net carrying amount as at 1 January 2023 | 18,954,124 | 58,608,566 | 160,685,312 | 5,856,605 | 1,184,866 | 245,289,473 |
| Net carrying amount as at 31 December 2023 | 15,549,164 | 54,360,693 | 160,702,673 | 7,904,536 | 2,162,239 | 240,679,305 |
All intangible assets presented herein are the property of the Group and are unpledged.
17.7 percent of all the intangible assets in use on 31 December 2023 were fully amortised
(compared to 17.6 percent as at 31 December 2022).
Under intangible assets, the Group records emission allowances for the management of plants
that require a greenhouse gas emission permit. More in the note relating to the Company.
The Group’s intangible fixed assets were tested for impairment as at 31 December 2023 and
no impairment of intangible fixed assets was identified.
Goodwill
The goodwill structure presented by the business combination from which it originates is as
follows:
| The Petrol Group | ||
| (in EUR) | 31 December 2023 | 31 December 2022 |
| Instalacija d.o.o., Koper 1 | 85,266,022 | 85,266,022 |
| Crodux derivati dva d.o.o. 2 | 55,681,097 | 55,666,513 |
| Euro-Petrol d.o.o. 3 | 12,630,218 | 12,626,888 |
| Vjetroelektrana Ljubač d.o.o. | 2,580,100 | 2,579,423 |
| Atet d.o.o. | 2,434,972 | 2,434,972 |
| Petrol-Jadranplin d.o.o. 4 | 747,242 | 747,045 |
| Vjetroelektrane Glunča d.o.o. | 358,073 | 357,979 |
| Crodux Plin d.o.o. | 262,777 | 264,429 |
| Petrol-Butan d.o.o. 5 | 279,629 | 279,555 |
| MBILLS d.o.o. | 245,250 | 245,250 |
| Adria-Plin d.o.o. | 217,293 | 217,236 |
| Total goodwill | 160,702,673 | 160,685,312 |
1
Instalacija d.o.o. was merged into Petrol d.d., Ljubljana in 2013. The company is treated as a cash-generating unit
of Petrol d.d., Ljubljana.
2
Crodux Derivati Dva d.o.o. was merged into Petrol d.o.o. in 2022.
3
Euro-Petrol d.o.o. was renamed Petrol d.o.o.
4
Petrol-Jadranplin d.o.o. was renamed Petrol Plin d.o.o. and merged into Petrol d.o.o. in 2017.
5
Petrol-Butan d.o.o. was merged into Petrol Plin d.o.o. in 2012, whereas the latter was merged into Petrol d.o.o. in
2017.
In 2022, the Group recognised the assets of Crodux Derivati Dva d.o.o. at fair value in its
consolidated financial statements, thus definitively allocating the purchase consideration,
which had only been recognised temporarily in 2021.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 242
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In accordance with the IAS 36, goodwill was tested for impairment as at 31 December 2023.
The test showed no need for impairment.
Impairment of goodwill is recognised when its carrying amount exceeds its recoverable
amount. The recoverable amount of goodwill is the greater of its value in use and its fair value
less costs to sell. The impairment test used value in use, where the estimated future cash flows
are discounted to their present value using a discount rate.
The recoverable amount of the acquired assets was assessed at the aggregate level of the
acquired companies, except for the companies Instalacija d.o.o. and Crodux derivati dva
d.o.o., where the recoverable amount was assessed at the level of the cash-generating unit
directly related to the assets acquired during the acquisition of the companies.
Goodwill was tested for impairment using the present value method of expected cash flows,
which are based on the future financial plans of cash-generating units (value in use method).
The assumptions used in the calculation of the net cash flows (long-term growth rate of cash
flows, cash flow projection, projection period and discount rate) are based on past operations
and reasonably expected operations in the future. Cash flow projection periods reflect the
operations and investment activities of individual companies. Growth rates of free cash flows
are based on the expected price growth rates.
For Instalacija d.o.o., the 4-year financial plans of the cash-generating unit, the required rate
of return of 8.81 percent after taxes (2022: 9.03 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 1.92 percent (2022: 1.97 percent) were used
in testing the goodwill for impairment.
For Crodux derivati dva, the 6-year financial plans of the cash-generating unit, the required
rate of return of 9.43 percent after taxes (2022: 9.90 percent) and the annual growth rate of
the remaining free cash flows (the residual value) of 2 percent (2022: -1 percent) were used in
testing the goodwill for impairment.
For Petrol d.o.o., the 6-year financial plans of the cash-generating unit, the required rate of
return of 9.43 percent after taxes (2022: 9.90 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2022: -1 percent) were used in
testing the goodwill for impairment. The testing of Petrol d.o.o.’s goodwill comprises goodwill
arising from the upstream merger of Euro-Petrol d.o.o., Petrol-Jadranplin d.o.o., Crodux Plin
d.o.o. and Petrol-Butan d.o.o.
For Atet d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of return
of 7.5 percent after taxes (2022: 7.8 percent) and the annual growth rate of the remaining free
cash flows (the residual value) of 2 percent (2022: 2 percent) were used in testing the goodwill
for impairment.
For MBills d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of
return of 14.6 percent after taxes (2022: 22.1 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2022: 2 percent) were used in
testing the goodwill for impairment. The cash flow projection period is based on plans for the
development and growth of the company up to the period when the cash flows are expected
to stabilise in the long term.
For Vjetroelektrane Glunča d.o.o., the 25-year financial plans of the cash-generating unit and
the required rate of return of 11.77 percent after taxes (2022: 10.9 percent) were used in testing
the goodwill for impairment. The value of the remaining cash flows was not taken into account
in the calculation. The cash flow projection period corresponds to the life of the existing wind
power plants and the concession agreement.
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For Vjetroelektrana Ljubač d.o.o., the 23-year financial plans of the cash-generating unit and
the average required rate of return of 11.77 percent after taxes (2022: 10.9 percent) were used
in testing the goodwill for impairment. The value of the remaining cash flows was not taken
into account in the calculation. The cash flow projection period corresponds to the life of the
existing wind power plants and the concession agreement.
For Adria-Plin d.o.o., the 6-year financial plans of the cash-generating unit, the required rate
of return of 11.02 percent after taxes (2022: 9 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2022: 2 percent) were used in
testing the goodwill for impairment.
The effect of changes in the discount rate or the long-term growth rate of the remaining free
cash flows on the estimated fair value of assets is presented below:
In 2022
| Key assumptions | Change in key assumptions | Effect of | ||||||
| change in the | ||||||||
| Effect of | Effect of | discount rate | ||||||
| change in the | change in the | and the long- | Effect on | |||||
| discount rate | long-term | term growth | impairment | |||||
| on the | growth rate on | rate on the | when key | |||||
| Discount rate | Long-term growth | Discount rate | Long-term | recoverable | the recoverable | recoverable | assumtions | |
| (in EUR thousand) | (WACC) | rate (g) | (WACC) | growth rate (g) | amount | amount | amount | change |
| + 0.5 | - 0.5 | (15) | (16) | (29) | - | |||
| Adria-Plin d.o.o. | 9.00% | 2% | - 0.5 | + 0.5 | 17 | 18 | 38 | - |
| + 0.5 | - 0.5 | (551) | (483) | (1,034) | - | |||
| Atet d.o.o. | 7.80% | 2% | - 0.5 | + 0.5 | 651 | 582 | 1,233 | - |
| Petrol d.o.o. (Crodux derivati | + 0.5 | - 0.5 | (34,471) | (23,785) | (56,098) | - | ||
| dva d.o.o. in Euro-Petrol | ||||||||
| d.o.o.) | 9.90% | -1% | - 0.5 | + 0.5 | 41,414 | 28,593 | 73,791 | - |
| + 0.5 | - 0.5 | (10,630) | (9,650) | (19,037) | - | |||
| Instalacija d.o.o., Koper | 9.03% | 2% | - 0.5 | + 0.5 | 14,448 | 11,235 | 28,192 | - |
| + 0.5 | - 0.5 | (225) | (133) | (346) | (169) | |||
| MBills d.o.o. | 22.10% ; 13.90% | 2% | - 0.5 | + 0.5 | 246 | 145 | 407 | - |
| + 0.5 | - 0.5 | (1,181) | - | (1,181) | - | |||
| Vjetroelektrane Glunča d.o.o. | 10.90% | - | - 0.5 | + 0.5 | 1,245 | - | 1,245 | - |
| + 0.5 | - | (1,569) | - | (1,569) | - | |||
| Vjetroelektrana Ljubač d.o.o. | 10.90% | - | - 0.5 | - | 1,662 | - | 1,662 | - |
In 2023
| Key assumptions | Change in key assumptions | Effect of change | ||||||
| Effect of change | Effect of change | in the discount | ||||||
| in the discount | in the long-term | rate and the long- | Effect on | |||||
| Long-term | Long-term | rate on the | growth rate on the | term growth rate | impairment when | |||
| Discount rate | growth rate | Discount rate | growth rate | recoverable | recoverable on the recoverable | key assumtions | ||
| (in EUR thousand) | (WACC) | (g) | (WACC) | (g) | amount | amount | amount | change |
| + 0.5 | - 0.5 | (32) | (21) | (50) | - | |||
| Adria-Plin d.o.o. | 11.02% | 2% | - 0.5 | + 0.5 | 35 | 24 | 63 | - |
| + 0.5 | - 0.5 | (870) | (883) | (1,617) | (1,456) | |||
| Atet d.o.o. | 7.50% | 2% | - 0.5 | + 0.5 | 1,045 | 1,060 | 2,340 | - |
| Petrol d.o.o. (Crodux | + 0.5 | - 0.5 | (38,712) | (27,751) | (62,647) | - | ||
| derivati dva d.o.o. and | ||||||||
| Euro-Petrol d.o.o.) | 9.43% | 2% | - 0.5 | + 0.5 | 44,307 | 31,755 | 81,805 | - |
| + 1.0 | - 0.5 | (19,411) | (8,644) | (25,897) | - | |||
| Instalacija d.o.o., Koper | 8.81% | 2% | - 1.0 | + 0.5 | 25,982 | 9,997 | 40,199 | - |
| + 0.5 | - 0.5 | (111) | (118) | (221) | - | |||
| MBills d.o.o. | 14.60% | 2% | - 0.5 | + 0.5 | 120 | 128 | 258 | - |
| Vjetroelektrane Glunča | ||||||||
| d.o.o. | + 0.5 | - | (1,543) | - | (1,543) | - | ||
| 11.77% | - | - 0.5 | - | 1,634 | - | 1,634 | - | |
| Vjetroelektrana Ljubač | + 0.5 | - | (2,114) | - | (2,114) | - | ||
| d.o.o. | 11.77% | - | - 0.5 | - | 2,245 | - | 2,245 | - |
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 244
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Intangible assets of Petrol d.d., Ljubljana
| Long-term | ||||||
| Right to use | deferred costs | |||||
| Material and | concession | Ongoing | and emission | |||
| (in EUR) | other rights | infrastructure | Goodwill | investments | allowances | Total |
| Cost | ||||||
| As at 1 January 2022 | 41,934,032 | 112,044,827 | 85,266,022 | 1,879,712 | 276,793 | 241,401,386 |
| New acquisitions | - | 1,406 | - | 5,286,334 | 1,011,058 | 6,298,798 |
| Disposals | (341,270) | (213,646) | - | (2,400) | (115,183) | (672,499) |
| Transfers between PPE and investment property | (12,656) | 543,746 | - | - | - | 531,090 |
| Transfer from ongoing investments | 2,699,324 | 766,933 | - | (3,466,257) | - | - |
| As at 31 December 2022 | 44,279,430 | 113,143,266 | 85,266,022 | 3,697,389 | 1,172,668 | 247,558,775 |
| Accumulated amortisation | ||||||
| As at 1 January 2022 | (27,058,108) | (58,818,460) | - | - | - | (85,876,568) |
| Amortisation | (5,547,972) | (4,201,187) | - | - | - | (9,749,159) |
| Disposals | 177,739 | 205,497 | - | - | - | 383,236 |
| Transfers between PPE and investment property | 8,669 | (352,482) | - | - | - | (343,813) |
| As at 31 December 2022 | (32,419,672) | (63,166,632) | - | - | - | (95,586,304) |
| Net carrying amount as at 1 January 2022 | 14,875,924 | 53,226,367 | 85,266,022 | 1,879,712 | 276,793 | 155,524,818 |
| Net carrying amount as at 31 December 2022 | 11,859,758 | 49,976,634 | 85,266,022 | 3,697,389 | 1,172,668 | 151,972,471 |
| Long-term | ||||||
| Right to use | deferred costs | |||||
| Material and | concession | Ongoing | and emission | |||
| (in EUR) | other rights | infrastructure | Goodwill | investments | allowances | Total |
| Cost | ||||||
| As at 1 January 2023 | 44,279,430 | 113,143,266 | 85,266,022 | 3,697,389 | 1,172,668 | 247,558,775 |
| New acquisitions | - | 111,686 | - | 8,129,848 | 2,382,967 | 10,624,501 |
| Disposals | (5,603,192) | (195,478) | - | - | (1,585,003) | (7,383,673) |
| Transfer between intangible assets | - | (1,406) | - | - | 1,406 | - |
| Transfer from ongoing investments | 4,116,275 | 809,642 | - | (4,925,917) | - | - |
| As at 31 December 2023 | 42,792,513 | 113,867,710 | 85,266,022 | 6,901,320 | 1,972,038 | 250,799,603 |
| Accumulated amortisation | ||||||
| As at 1 January 2023 | (32,419,672) | (63,166,632) | - | - | - | (95,586,304) |
| Amortisation | (5,312,329) | (4,063,951) | - | - | - | (9,376,280) |
| Disposals | 5,603,075 | 194,933 | - | - | - | 5,798,008 |
| As at 31 December 2023 | (32,128,926) | (67,035,650) | - | - | - | (99,164,576) |
| Net carrying amount as at 1 January 2023 | 11,859,758 | 49,976,634 | 85,266,022 | 3,697,389 | 1,172,668 | 151,972,471 |
| Net carrying amount as at 31 December 2023 | 10,663,587 | 46,832,060 | 85,266,022 | 6,901,320 | 1,972,038 | 151,635,027 |
All the intangible assets presented herein are owned by the Company and are unpledged.
16.5 percent of all the intangible assets in use on 31 December 2023 were fully depreciated
(compared to 17.4 percent as at 31 December 2022).
Under intangible assets, the Company recognises emission allowances for the management
of plants that require a greenhouse gas emission permit. Each year the Company is required
to surrender emission allowances equal to the total amount of greenhouse gas emissions
released into the atmosphere by the plants during the previous year of operation. The actual
amount of emissions, and therefore the number of allowances that the Company is required to
surrender to the Emissions Allowance Register, is calculated using a standardised
methodology, in accordance with all EU regulations and legislation, and certified by an external
auditor.
The Company purchases emission allowances according to their current market value.
Emission allowances obtained from the State are valued at EUR 1. As at 1 January 2023, the
Company’s total stock of emission allowances amounted to 19,455 emission allowances,
8,140 emission allowances were purchased for EUR 651,600, 13,977 emission allowances
were used for EUR 907,560 and 1,369 emission allowances valued at EUR 1 were acquired
from the State in 2023. At the end of 2023, the Company had 14,987 emission allowances with
a value of EUR 1,476,813 of which 2,775 are acquired from the State.
Intangible fixed assets as at 31 December 2023 were tested for impairment It was determined
that there is no need for the impairment of intangible fixed assets, the same as in 2022.
Goodwill
As at 31 December 2023, the Company disclosed goodwill arising from the upstream merger
of Instalacija d.o.o. in 2013 amounting to EUR 85,266,022.
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In 2023, the Company tested the goodwill for impairment. It was determined that there is no
need for the impairment of goodwill.
The assumptions used in impairment testing and the effects recognised in the Company’s
financial statements have been explained as part of the goodwill disclosure relating to the
Group.
5.16 Right-of-use assets
Right-of-use assets of the Petrol Group
| Right-of-use | Right-of-use | |||
| (in EUR) | Right-of-use land | buildings | equipment | Total |
| Cost | ||||
| As at 1 January 2022 | 77,501,535 | 64,707,813 | 6,577,767 | 148,787,115 |
| New acquisitions | 23,256,763 | 53,430,756 | 19,888,157 | 96,575,676 |
| Cancellation | (23,707,396) | (55,348,762) | (486,070) | (79,542,228) |
| Transfer between assets categories | 2,568,882 | (2,568,882) | - | - |
| Foreign exchange differences | (92,522) | (108,261) | (5,952) | (206,735) |
| As at 31 December 2022 | 79,527,262 | 60,112,664 | 25,973,902 | 165,613,828 |
| Accumulated depreciation | ||||
| As at 1 January 2022 | (9,472,503) | (12,534,287) | (4,688,736) | (26,695,526) |
| Depreciation | (7,069,549) | (11,587,220) | (2,603,232) | (21,260,001) |
| Cancellation | 6,525,251 | 7,153,465 | 256,603 | 13,935,319 |
| Transfer between assets categories | (790,946) | 790,946 | - | 0 |
| Foreign exchange differences | 6,033 | 19,592 | 1,024 | 26,649 |
| As at 31 December 2022 | (10,801,714) | (16,157,504) | (7,034,341) | (33,993,559) |
| Net carrying amount as at 1 January 2022 | 68,029,032 | 52,173,526 | 1,889,031 | 122,091,589 |
| Net carrying amount as at 31 December 2022 | 68,725,548 | 43,955,160 | 18,939,561 | 131,620,269 |
| Right-of-use | Right-of-use | |||
| (in EUR) | Right-of-use land | buildings | equipment | Total |
| Cost | ||||
| As at 1 January 2023 | 79,527,262 | 60,112,664 | 25,973,902 | 165,613,828 |
| New acquisitions | 16,040,213 | 4,876,536 | 2,355,011 | 23,271,760 |
| Cancellation | (26,845) | (2,214,348) | (1,885,771) | (4,126,964) |
| Foreign exchange differences | 12,094 | 5,225 | 4,866 | 22,185 |
| As at 31 December 2023 | 95,552,724 | 62,780,077 | 26,448,008 | 184,780,809 |
| Accumulated depreciation | ||||
| As at 1 January 2023 | (10,801,714) | (16,157,504) | (7,034,341) | (33,993,559) |
| Depreciation | (8,450,337) | (9,152,515) | (5,907,735) | (23,510,587) |
| Cancellation | 17,773 | 1,658,399 | 1,885,749 | 3,561,921 |
| Foreign exchange differences | (554) | 598 | (432) | (388) |
| As at 31 December 2023 | (19,234,832) | (23,651,022) | (11,056,759) | (53,942,613) |
| Net carrying amount as at 1 January 2023 | 68,725,548 | 43,955,160 | 18,939,561 | 131,620,269 |
| Net carrying amount as at 31 December 2023 | 76,317,892 | 39,129,055 | 15,391,249 | 130,838,196 |
Right-of-use assets of Petrol d.d., Ljubljana
| Right-of-use | Right-of-use | |||
| (in EUR) | Right-of-use land | buildings | equipment | Total |
| Cost | ||||
| As at 1 January 2022 | 32,218,878 | 1,878,132 | 5,397,463 | 39,494,473 |
| New acquisitions | 1,259,241 | 1,329,656 | 3,148,387 | 5,737,284 |
| Cancellation | - | (91,031) | (141,097) | (232,128) |
| As at 31 December 2022 | 33,478,119 | 3,116,757 | 8,404,753 | 44,999,629 |
| Accumulated depreciation | ||||
| As at 1 January 2022 | (6,409,800) | (966,818) | (4,243,032) | (11,619,650) |
| Depreciation | (2,262,808) | (629,928) | (1,454,766) | (4,347,502) |
| Cancellation | - | 91,031 | 114,184 | 205,215 |
| As at 31 December 2022 | (8,672,608) | (1,505,715) | (5,583,614) | (15,761,937) |
| Net carrying amount as at 1 January 2022 | 25,809,078 | 911,314 | 1,154,431 | 27,874,823 |
| Net carrying amount as at 31 December 2022 | 24,805,511 | 1,611,042 | 2,821,139 | 29,237,692 |
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| Right-of-use | Right-of-use | |||
| (in EUR) | Right-of-use land | buildings | equipment | Total |
| Cost | ||||
| As at 1 January 2023 | 33,478,119 | 3,116,757 | 8,404,753 | 44,999,629 |
| New acquisitions | 2,428,643 | 541,326 | 2,281,502 | 5,251,471 |
| Cancellation | (17,773) | (965,397) | (2,027,952) | (3,011,122) |
| As at 31 December 2023 | 35,888,989 | 2,692,686 | 8,658,303 | 47,239,978 |
| Accumulated depreciation | ||||
| As at 1 January 2023 | (8,672,608) | (1,505,715) | (5,583,614) | (15,761,937) |
| Depreciation | (2,484,018) | (712,843) | (1,768,669) | (4,965,530) |
| Cancellation | 17,773 | 965,397 | 2,027,952 | 3,011,122 |
| As at 31 December 2023 | (11,138,853) | (1,253,161) | (5,324,331) | (17,716,345) |
| Net carrying amount as at 1 January 2023 | 24,805,511 | 1,611,042 | 2,821,139 | 29,237,692 |
| Net carrying amount as at 31 December 2023 | 24,750,136 | 1,439,525 | 3,333,972 | 29,523,632 |
The lessee’s lease payment liabilities are not secured. The Group applies an exemption
allowed by the standard to the recognition of liabilities arising from short-term leases and
leases of low-value assets. Lease payments are fixed and stipulated in the contract.
Extension and termination options
Lease contracts can be terminated if the parties do not honour contractual obligations or if
there is a mutual agreement to terminate the contract. Options to extend the contracts have
not been provided for.
5.17 Property, plant and equipment
Property, plant and equipment of the Petrol Group
| Ongoing | ||||||
| (in EUR) | Land | Buildings | Machinery | Equipment | investments | Total |
| Cost | ||||||
| As at 1 January 2022 | 326,139,185 | 796,182,254 | 7,259,275 | 367,201,042 | 60,437,164 | 1,557,218,920 |
| New acquisitions | - | 218,339 | 70,076 | 5,694,408 | 58,462,957 | 64,445,780 |
| Disposals | (417,828) | (1,888,551) | (10,539) | (10,588,891) | (34,401) | (12,940,210) |
| Transfers between intangible assets | 106,699 | 10,227,604 | (2,617,822) | (2,159,341) | 146,109 | 5,703,249 |
| Transfer to contract assets | - | - | - | (7,493,238) | - | (7,493,238) |
| Transfer from ongoing investments | 746,662 | 21,390,024 | 66,729 | 50,278,031 | (72,481,446) | - |
| Transfers between investment property | - | - | - | - | (29,461) | (29,461) |
| Foreign exchange differences | (341,186) | (293,352) | (1,035) | (179,477) | (61,460) | (876,510) |
| As at 31 December 2022 | 326,233,532 | 825,836,318 | 4,766,684 | 402,752,534 | 46,439,462 | 1,606,028,530 |
| Accumulated depreciation | ||||||
| As at 1 January 2022 | - | (474,840,389) | (2,975,105) | (221,989,378) | - | (699,804,872) |
| Depreciation | - | (28,820,561) | (303,483) | (31,240,996) | - | (60,365,040) |
| Disposals | - | 1,607,439 | 10,539 | 7,296,612 | - | 8,914,590 |
| Transfers between intangible assets | - | (5,188,946) | 420,951 | 3,488,442 | - | (1,279,553) |
| Transfer to contract assets | - | - | - | 824,274 | - | 824,274 |
| Foreign exchange differences | - | 129,594 | 742 | 104,256 | - | 234,592 |
| As at 31 December 2022 | - | (507,112,863) | (2,846,356) | (241,516,790) | - | (751,476,009) |
| Net carrying amount as at 1 January 2022 | 326,139,185 | 321,341,865 | 4,284,170 | 145,211,664 | 60,437,164 | 857,414,048 |
| Net carrying amount as at 31 December 2022 | 326,233,532 | 318,723,455 | 1,920,328 | 161,235,744 | 46,439,462 | 854,552,521 |
| Ongoing | ||||||
| (in EUR) | Land | Buildings | Machinery | Equipment | investments | Total |
| Cost | ||||||
| As at 1 January 2023 | 326,233,532 | 825,836,318 | 4,766,684 | 402,752,534 | 46,439,462 | 1,606,028,530 |
| New acquisitions | - | 217,130 | 16,329 | 7,820,481 | 71,001,113 | 79,055,053 |
| Disposals | (125,520) | (6,859,213) | (7,431) | (16,575,308) | (1,572,432) | (25,139,904) |
| Impairments | (596,956) | - | - | - | - | (596,956) |
| Transfers between PPE | - | (565,826) | (13,979) | 640,012 | (60,207) | - |
| Transfers between intangible assets | - | - | - | 1,806,365 | 925 | 1,807,290 |
| Transfer from ongoing investments | 12,703 | 24,700,352 | 457 | 19,747,939 | (44,461,451) | - |
| Transfers between investment property | 355,674 | (1,728,959) | - | - | (122,903) | (1,496,188) |
| Foreign exchange differences | 32,481 | (764) | 112 | 43,159 | 595 | 75,583 |
| As at 31 December 2023 | 325,911,914 | 841,599,038 | 4,762,172 | 416,235,182 | 71,225,102 | 1,659,733,408 |
| Accumulated depreciation | ||||||
| As at 1 January 2023 | - | (507,112,863) | (2,846,356) | (241,516,790) | - | (751,476,009) |
| Depreciation | - | (28,840,918) | (258,828) | (30,747,493) | - | (59,847,239) |
| Disposals | - | 6,051,560 | 7,431 | 12,958,832 | - | 19,017,823 |
| Transfers between PPE | - | 42,662 | 13,979 | (56,641) | - | - |
| Transfers between investment property | - | 147,197 | - | - | - | 147,197 |
| Foreign exchange differences | - | 5,701 | (102) | (10,332) | - | (4,733) |
| As at 31 December 2023 | - | (529,706,661) | (3,083,876) | (259,372,424) | - | (792,162,961) |
| Net carrying amount as at 1 January 2023 | 326,233,532 | 318,723,455 | 1,920,328 | 161,235,744 | 46,439,462 | 854,552,521 |
| Net carrying amount as at 31 December 2023 | 325,911,914 | 311,892,377 | 1,678,296 | 156,862,758 | 71,225,102 | 867,570,447 |
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44.26 percent of all items of property, plant and equipment in use on 31 December 2023 were
fully depreciated.
Pledged property, plant and equipment
All of the Group's property, plant and equipment are free of encumbrances.
In accordance with the IAS 36 and based on external and internal sources of information and
factors, the Group checked whether there was an indication that the assets may be impaired
as at 31 December 2023. When testing asset impairment indicators, the Group determined
that the carrying amounts of certain land exceeded their fair values and values in use.
To estimate the value of the land, the Group used the model of comparable market prices less
the costs of the sale and impairment of land in the amount of EUR 596,956 based on
independent appraiser estimates.
In 2022, the Group’s impairment review process determined that no indicators of impairment
exist for property, plant and equipment as at 31 December 2022. It was determined that there
is no need for the impairment of property, plant and equipment.
Property, plant and equipment of Petrol d.d., Ljubljana
| Ongoing | |||||
| (in EUR) | Land | Buildings | Equipment | investments | Total |
| Cost | |||||
| As at 1 January 2022 | 102,794,116 | 577,375,427 | 266,626,550 | 14,315,883 | 961,111,976 |
| New acquisitions | - | - | - | 32,614,695 | 32,614,695 |
| Disposals | (401,114) | (1,504,318) | (5,076,701) | (34,401) | (7,016,534) |
| Transfers between intangible assets | 193,874 | (237,878) | 583,674 | - | 539,670 |
| Transfer from ongoing investments | 126 | 8,983,729 | 14,474,671 | (23,458,526) | - |
| Transfers between investment property | - | - | - | (29,461) | (29,461) |
| As at 31 December 2022 | 102,587,002 | 584,616,960 | 276,608,194 | 23,408,190 | 987,220,346 |
| Accumulated depreciation | |||||
| As at 1 January 2022 | - | (415,142,838) | (179,706,981) | - | (594,849,819) |
| Depreciation | - | (15,658,372) | (16,084,332) | - | (31,742,704) |
| Disposals | - | 1,323,457 | 4,911,183 | - | 6,234,640 |
| Transfers between intangible assets | - | (33,334) | (518,479) | - | (551,813) |
| As at 31 December 2022 | - | (429,511,087) | (191,398,609) | - | (620,909,696) |
| Net carrying amount as at 1 January 2022 | 102,794,116 | 162,232,589 | 86,919,569 | 14,315,883 | 366,262,157 |
| Net carrying amount as at 31 December 2022 | 102,587,002 | 155,105,873 | 85,209,585 | 23,408,190 | 366,310,650 |
| Ongoing | |||||
| (in EUR) | Land | Buildings | Equipment | investments | Total |
| Cost | |||||
| As at 1 January 2023 | 102,587,002 | 584,616,960 | 276,608,194 | 23,408,190 | 987,220,346 |
| New acquisitions | - | - | - | 33,840,333 | 33,840,333 |
| Disposals | (125,520) | (1,075,110) | (8,851,246) | (269,731) | (10,321,607) |
| Impairments | (596,956) | - | - | - | (596,956) |
| Transfer from ongoing investments | - | 7,382,573 | 13,468,699 | (20,851,272) | - |
| Transfers between investment property | - | - | - | (122,903) | (122,903) |
| As at 31 December 2023 | 101,864,526 | 590,924,423 | 281,225,647 | 36,004,617 | 1,010,019,213 |
| Accumulated depreciation | |||||
| As at 1 January 2023 | - | (429,511,087) | (191,398,609) | - | (620,909,696) |
| Depreciation | - | (15,147,012) | (16,296,858) | - | (31,443,870) |
| Disposals | - | 383,801 | 7,895,898 | - | 8,279,699 |
| As at 31 December 2023 | - | (444,274,298) | (199,799,569) | - | (644,073,867) |
| Net carrying amount as at 1 January 2023 | 102,587,002 | 155,105,873 | 85,209,585 | 23,408,190 | 366,310,650 |
| Net carrying amount as at 31 December 2023 | 101,864,526 | 146,650,125 | 81,426,078 | 36,004,617 | 365,945,345 |
46.6 percent of all items of property, plant and equipment in use on 31 December 2023 were
fully depreciated (compared to 43.8 percent as at 31 December 2022).
Pledged property, plant and equipment
All property, plant and equipment of the Company are free of encumbrances.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 248
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When testing asset impairment indicators, the Company determined that the carrying amounts
of certain land exceeded their fair values and values in use. Therefore, the Company impaired
land as at 31 December 2023 by EUR 596,956 on the basis of valuations carried out by
independent appraisers.
To estimate the value of the land, the Company used the model of fair value less costs of
disposal.
In 2022, the Company’s impairment review process determined that no indicators of
impairment exist for property, plant and equipment as at 31 December 2022. It was determined
that there is no need for the impairment of property, plant and equipment.
5.18 Investment property
Investment property comprises buildings (storage facilities, car washes, bars) being leased out
by the Group/Company.
| The Petrol Group | Petrol d.d. | |
| (in EUR) | Investment property | Investment property |
| Cost | ||
| As at 1 January 2022 | 36,577,379 | 27,824,898 |
| New acquisitions | 124,378 | - |
| Disposals | (265,870) | (21,725) |
| Transfers between intangible assets | (101,127) | (101,127) |
| Transfers between property, plant and equipment | 29,461 | 29,461 |
| Foreign exchange differences | (14,721) | - |
| As at 31 December 2022 | 36,349,500 | 27,731,507 |
| Accumulated depreciation | ||
| As at 1 January 2022 | (20,437,636) | (15,488,904) |
| Depreciation | (1,069,764) | (677,760) |
| Transfers between intangible assets | (74,007) | (74,007) |
| Foreign exchange differences | 9,015 | - |
| As at 31 December 2022 | (21,572,392) | (16,240,671) |
| Net carrying amount as at 1 January 2022 | 16,139,743 | 12,335,994 |
| Net carrying amount as at 31 December 2022 | 14,777,108 | 11,490,836 |
| The Petrol Group | Petrol d.d. | |
| (in EUR) | Investment property | Investment property |
| Cost | ||
| As at 1 January 2023 | 36,349,500 | 27,731,507 |
| New acquisitions | 1,806,215 | 173,669 |
| Disposals | (126,217) | - |
| Transfers between property, plant and equipment | 1,496,188 | 122,903 |
| Foreign exchange differences | 489 | - |
| As at 31 December 2023 | 39,526,175 | 28,028,079 |
| Accumulated depreciation | ||
| As at 1 January 2023 | (21,572,392) | (16,240,671) |
| Depreciation | (1,085,348) | (654,296) |
| Disposals | 118,462 | - |
| Transfers between property, plant and equipment | (147,197) | - |
| Foreign exchange differences | (971) | - |
| As at 31 December 2023 | (22,687,446) | (16,894,967) |
| Net carrying amount as at 1 January 2023 | 14,777,108 | 11,490,836 |
| Net carrying amount as at 31 December 2023 | 16,838,729 | 11,133,112 |
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The Petrol Group
After assessing the intended use of the property and the long-term goals pursued as at 31
December 2023, the Group determined that certain property held by the Group meets the
criteria to be classified as investment property. The Group transferred property worth EUR
1,348,991 (2022: EUR 29,461 EUR) from fixed assets to investment property.
In 2023, the revenue generated by the Group from investment property totalled EUR 4,170,782
(2022: EUR 3,262,056). The Group estimates that the fair value of the investment property as
at 31 December 2023 amounts to EUR 36,345,341 (31 December 2022: EUR 27,936,214).
The Group assesses the fair value using the standardised cash flows capitalisation method,
whereby cash flows mainly consist of rents received from the lease of investment property.
The fair value of investment property was assessed using the required rate of return from 9.42
to 17.18 percent after taxes (2022: from 8.50 to 11.95 percent) without the long-term growth
rate of lease payments (2022: from 0.05 to 1 percent).
In 2023, the Group’s impairment review process determined that no indicators of impairment
exist for investment property as at 31 December 2023. It was determined that there is no need
for the impairment of investment property.
Petrol d.d., Ljubljana
In 2023, the revenue generated by the Company from investment property totalled EUR
3,269,667 (2022: EUR 2,576,791). The Company estimates that the fair value of investment
property as at 31 December 2023 amounts to EUR 29,503,361 (31 December 2022: EUR
22,241,655). The Company assesses fair value using the standardised cash flows
capitalisation method, whereby cash flows consist mainly of rents received from the lease of
investment property. A zero percent growth (2022: 0.05 percent) and a required rate of return
of 9.42 percent (2022: 8.5 percent) are assumed.
In 2023, the Company’s impairment review process determined that no indicators of
impairment exist for investment property as at 31 December 2023. It was determined that there
is no need for the impairment of investment property.
5.19 Investments in subsidiaries
The Petrol Group
In the preparation of the Group’s financial statements, investments in subsidiaries are
eliminated on consolidation. A more detailed overview of the Group’s structure is presented in
the chapter Companies in the Petrol Group of the business report.
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Petrol d.d., Ljubljana
Information about direct subsidiaries as at 31 December 2023
The directly owned subsidiaries of Petrol d.d., Ljubljana are as follows:
| Equity as at | ||||
| Ownership | 31 December | Net profit or loss | ||
| Name of subsidiary | Address of subsidiary | interest | 2023 (in EUR) | for 2023 (in EUR) |
| Slovenia | ||||
| IGES d.o.o. | Dunajska cesta 50, Ljubljana, Slovenia | 100% | 15,867,713 | 21,872 |
| Petrol Skladiščenje d.o.o. | Zaloška 259, Ljubljana Polje, Slovenia | 100% | 814,931 | (872) |
| Petrol GEO d.o.o. | Mlinska ulica 5d, Lendava, Slovenia | 100% | 4,178,220 | 914,579 |
| Ekoen d.o.o. | Luče 117A, Luče, Slovenia | 100% | 717,204 | (10,892) |
| Ekoen S d.o.o. | Ljubljanska cesta 35, Domžale, Slovenia | 100% | 16,176 | 5,674 |
| MBills d.o.o. | Tržaška cesta 118, Ljubljana, Slovenia | 100% | 2,459,159 | (963,882) |
| Cesta Ljubljanske brigade 11, Ljubljana, | ||||
| Geoplin d.o.o. Ljubljana1 | Slovenia | 74.34% | 135,769,627 | 22,192,611 |
| Atet d.o.o.2 | Devova ulica 6A, Ljubljana, Slovenia | 96% | 2,749,087 | 169,323 |
| Prvomajska ulica 21, Nova Gorica, | ||||
| E 3, d.o.o. | Slovenia | 100% | 22,936,820 | 10,327,557 |
| Croatia | ||||
| Petrol d.o.o. | Savska Opatovina 36, Zagreb, Croatia | 100% | 261,510,758 | 19,871,645 |
| Vjetroelektrane Glunča d.o.o. | Savska Opatovina 36, Zagreb, Croatia | 100% | 13,811,160 | 1,084,899 |
| Vjetroelektrana Ljubač d.o.o. | Krapanjska cesta 8, Šibenik, Croatia | 100% | 8,793,216 | 612,006 |
| Zagorski metalac d.o.o.3 | Ulica Josipa Broza Tita 2F, Zabok, Croatia | 75% | 8,775,236 | (5,641) |
| Serbia | ||||
| Omladinskih brigada 88-90, Novi | ||||
| Petrol d.o.o. Beograd | Beograd, Serbia | 100% | 37,940,386 | 3,453,317 |
| Omladinskih brigada 88-90, Novi | ||||
| Beogas d.o.o. Beograd | Beograd, Serbia | 100% | 23,724,652 | 1,177,082 |
| Omladinskih brigada 88-90, Novi | ||||
| Petrol LPG d.o.o. | Beograd, Serbia | 100% | 11,852,105 | (549,342) |
| STH Energy d.o.o. Kraljevo | Karadjordjeva 241, Kraljevo, Serbia | 80% | 767,583 | 177,939 |
| Montenegro | ||||
| Ulica Slobode br. 2, Podgorica, | ||||
| Petrol Crna Gora MNE d.o.o. | Montenegro | 100% | 24,887,811 | 1,641,135 |
| Bosnia and Herzegovina | ||||
| Petrol BH Oil Company d.o.o. | Ulica Džemala Bijedića br. 202, Sarajevo, | |||
| Sarajevo | Bosnia and Herzegovina | 100% | 76,283,385 | 3,308,845 |
| Branka Radičevića 1, Teslić, Bosnia and | ||||
| Petrol Hidroenergija d.o.o. Teslić | Herzegovina | 80% | 8,766,387 | 2,515,874 |
| Ulica Džemala Bijedića br. 202, Sarajevo, | ||||
| Petrol Power d.o.o. Sarajevo | Bosnia and Herzegovina | 99.75% | (580,891) | 1,401,245 |
| Other countries | ||||
| Petrol-Trade | ||||
| Handelsgesellschaft m.b.H. | Elisabethstrasse 10/4, Vienna, Austria | 100% | 2,931,929 | 1,370,846 |
| Petrol-Energetika DOOEL | Ul. Sv. Kiril i Metodij 20, Skopje, | |||
| Skopje | Macedonia | 100% | 119,150 | 1,033 |
| B-dul Tudor Vladimirescu 22, Sector 5, | ||||
| Petrol Bucharest ROM S.R.L. | Bucharest, Romania | 100% | 36,012 | 105,255 |
| Industrijska zona b.b., Kosovo Polje, | ||||
| Petrol-OTI-Terminal L.L.C. | Kosovo | 100% | 8,572,109 | (20,387) |
1
Petrol d.d., Ljubljana has 74.49 percent of the voting rights in the company Geoplin d.o.o.
2
Petrol d.d., Ljubljana has 100 percent of the voting rights in the company Atet d.o.o.
3
The subsidiary Geoplin d.o.o. Ljubljana owns a 25 percent interest in Zagorski metalac d.o.o. In total, the Group
has a 93.6 percent interest in Zagorski metalac d.o.o.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 251
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Information about indirect subsidiaries as at 31 December 2023
The companies Petrol LPG d.o.o. Beograd, Petrol d.o.o. Beograd, IGES d.o.o., Petrol d.o.o.,
Geoplin d.o.o. and Atet d.o.o. are the controlling companies of the Petrol LPG Group, the Petrol
Beograd Group, the IGES Group, the Petrol Zagreb Group, the Geoplin Group and the Atet
Group, respectively. The subsidiaries from these groups are presented in the table below.
| Equity as at | ||||
| Ownership | 31 December | Net profit or loss | ||
| Name of subsidiary | Address of subsidiary | interest | 2023 (in EUR) | for 2023 (in EUR) |
| The Petrol LPG Group | ||||
| Omladinskih brigada 88-90, Novi | ||||
| Tigar Petrol d.o.o. Beograd | Beograd, Serbia | 100% | (418,344) | (4,861) |
| Preduzetnička zona bb, Šamac, | ||||
| Petrol LPG HIB d.o.o. | Bosnia and Herzegovina | 100% | (504,493) | (222,813) |
| The Petrol Beograd Group | ||||
| Petrol Lumennis PB JO d.o.o. | Patrijarha Dimitrija 12v, Beograd, | |||
| Beograd | Serbia | 100% | 1,756 | (217) |
| Patrijarha Dimitrija 12v, Beograd, | ||||
| Petrol Lumennis VS d.o.o. Beograd | Serbia | 100% | 339 | (1,764) |
| Petrol Lumennis ZA JO d.o.o. | Omladinskih brigada 88-90, Novi | |||
| Beograd | Beograd, Serbia | 100% | 4,462 | 1,773 |
| Petrol Lumennis ŠI JO d.o.o. | Omladinskih brigada 88-90, Novi | |||
| Beograd | Beograd, Serbia | 100% | 1,071 | (48) |
| Omladinskih brigada 88-90, Novi | ||||
| Petrol KU 2021 d.o.o. Beograd | Beograd, Serbia | 100% | 29,821 | 27,557 |
| Petrol Lumennis KI JO d.o.o. | Omladinskih brigada 88-90, Novi | |||
| Beograd | Beograd, Serbia | 100% | (1,968) | (2,327) |
| The IGES Group | ||||
| Naselje Ripač b.b., Bihać, Bosnia and | ||||
| Vitales d.o.o. Bihać - u stečaju1 | Herzegovina | 100% | - | - |
| The Petrol Zagreb Group | ||||
| Petrol javna rasvjeta d.o.o. | Savska Opatovina 36, Zagreb, Croatia | 100% | 128,679 | 33,559 |
| Ulica Stinice 15, Kastel Gomilica, | ||||
| ADRIA-PLIN d.o.o. | Croatia | 75% | 72,959 | 43,520 |
| The Geoplin Group | ||||
| Geoplin d.o.o. | Radnička cesta 177, Zagreb, Croatia | 100% | (17,838,652) | (19,537,200) |
| Zelengorska ulica broj 1g, 11070 Novi | ||||
| Geoplin d.o.o. Beograd | Beograd, Serbia | 100% | 34,954 | - |
| The Atet Group | ||||
| Atet Mobility Zagreb d.o.o. | Savska Opatovina 36, Zagreb, Croatia | 100% | 2,896 | 396 |
1
The company is in bankruptcy proceedings.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 252
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Balance of investments in subsidiaries
| Petrol d.d. | ||
| (in EUR) | 31 December 2023 | 31 December 2022 |
| Petrol d.o.o. | 327,833,986 | 327,833,986 |
| Geoplin d.o.o. Ljubljana | 56,964,237 | 56,964,237 |
| Petrol BH Oil Company d.o.o. Sarajevo | 34,537,990 | 34,537,990 |
| Petrol d.o.o. Beograd | 23,602,819 | 23,602,819 |
| Petrol Crna Gora MNE d.o.o. | 19,396,000 | 19,396,000 |
| IGES d.o.o. | 15,774,400 | 15,774,400 |
| E 3, d.o.o. | 14,950,000 | 14,950,000 |
| Beogas d.o.o. Beograd | 12,774,000 | 12,774,000 |
| Vjetroelektrarna Ljubač d.o.o. | 9,056,761 | 9,056,761 |
| Zagorski metalac d.o.o. | 7,600,316 | 7,600,316 |
| Vjetroelektrane Glunča d.o.o. | 6,523,622 | 6,523,622 |
| MBills d.o.o. | 5,955,122 | 5,955,122 |
| Atet d.o.o. | 5,303,697 | 4,044,396 |
| Petrol Hidroenergija d.o.o. Teslić | 5,000,409 | 5,000,409 |
| Petrol LPG d.o.o. | 4,770,601 | 4,770,601 |
| Petrol - OTI - Terminal L.L.C. | 1,805,000 | 1,805,000 |
| Ekoen d.o.o. | 1,249,867 | 1,249,867 |
| Petrol Skladiščenje d.o.o. | 794,951 | 794,951 |
| Petrol GEO d.o.o. | 697,020 | 697,020 |
| STH Energy d.o.o. Kraljevo | 467,868 | 467,868 |
| Petrol Trade Handelsgesellschaft m.b.H. | 147,830 | 147,830 |
| Ekoen S d.o.o. | 50,737 | 50,737 |
| Petrol-Energetika DOOEL Skopje | 25,000 | 25,000 |
| Petrol Bucharest ROM S.R.L. | 10,000 | 10,000 |
| Petrol Power d.o.o. Sarajevo | - | - |
| Total investments in subsidiaries | 555,292,232 | 554,032,932 |
Changes in investments in subsidiaries
| Petrol d.d. | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 554,032,932 | 553,970,331 |
| New acquisitions | 1,259,301 | 62,600 |
| As at 31 December | 555,292,232 | 554,032,932 |
In 2023, the Group acquired an additional 23 percent interest in ATET d.o.o., thus becoming a
100 percent owner of the company.
In 2022, the Group acquired an additional 0.04 percent interest in Geoplin d.o.o., thus
becoming a 74.34 percent owner of the company.
In 2023, payments for investments in subsidiaries of EUR 4,259,304 at the Company consisted
of a deferred payment of EUR 3,000,000 for Crodux derivati dva d.o.o. and EUR 1,259,301 for
the acquisition of a non-controlling interest in ATET d.o.o. At the Group level, deferred
consideration payment are presented within payments for invemstments in subsidiaries and
the acquisition of a non-controlling interest is presented within transactions with non-controlling
interests.
In accordance with the IAS 36, the Company tested investment impairment indicators and
determined that they do not exist for investments in subsidiaries as at 31 December 2023. It
was determined that there is no need for the impairment of investments in subsidiaries.
Impairment of an investment in a subsidiary is recognised when its carrying amount exceeds
its recoverable amount. The recoverable amount of an investment in a subsidiary is the greater
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023 – Financial Report 253
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of its value in use and its fair value less costs to sell. The impairment test used value in use,
where the estimated future cash flows are discounted to their present value using a discount
rate.
The effect of changes in the discount rate or the long-term growth rate of the remaining free
cash flows on the estimated fair value of investments is presented below:
In 2022
| Key assumptions | Change in key assumptions | Effect of | ||||||
| change in the | ||||||||
| Effect of | Effect of | discount rate | ||||||
| change in the | change in the | and the long- | Effect on | |||||
| discount rate | long-term | term growth | impairment | |||||
| on the | growth rate on | rate on the | when key | |||||
| Discount rate | Long-term growth | Discount rate | Long-term | recoverable | the recoverable | recoverable | assumptions | |
| (in EUR thousand) | (WACC) | rate (g) | (WACC) | growth rate (g) | amount | amount | amount | change |
| + 0,5 | - 0,5 | (34,471) | (23,785) | (56,098) | - | |||
| Petrol d.o.o. | 9.90% | -1% | - 0,5 | + 0,5 | 41,414 | 28,593 | 73,791 | - |
| + 0,5 | - 0,5 | (4,957) | (1,962) | (6,677) | (5,855) | |||
| Petrol d.o.o. Beograd | 11.60% | 1% | - 0,5 | + 0,5 | 5,498 | 2,147 | 7,984 | - |
| + 0,5 | - 0,5 | (1,416) | (1,036) | (2,343) | - | |||
| Petrol Crna Gora MNE d.o.o. | 11.80% | 2% | - 0,5 | + 0,5 | 1,761 | 1,115 | 3,097 | - |
| + 0,5 | - 0,5 | (693) | (171) | (844) | - | |||
| E 3, d.o.o. | 9.80% | 0% | - 0,5 | + 0,5 | 739 | 192 | 959 | - |
| + 0,5 | - | (1,569) | - | (1,569) | - | |||
| Vjetroelektrane Ljubač d.o.o. | 10.90% | - | - 0,5 | - | 1,662 | - | 1,662 | - |
| + 0,5 | - 0,5 | (530) | (431) | (876) | - | |||
| Zagorski metalac d.o.o. | 6.59% | 2% | - 0,5 | + 0,5 | 661 | 535 | 1,360 | - |
| + 0,5 | - | (1,181) | - | (1,181) | - | |||
| Vjetroelektrana Glunča d.o.o. | 10.90% | - | - 0,5 | - | 1,245 | - | 1,245 | - |
| + 0,5 | - 0,5 | (225) | (133) | (346) | (169) | |||
| MBills d.o.o. | 22.10% ; 13.90% | 2% | - 0,5 | + 0,5 | 246 | 145 | 407 | - |
| + 0,5 | - 0,5 | (551) | (483) | (1,034) | (530) | |||
| Atet d.o.o. | 7.80% | 2% | - 0,5 | + 0,5 | 651 | 582 | 1,233 | - |
In 2023
| Key assumptions | Change in key assumptions | Effect of | ||||||
| change in the | ||||||||
| Effect of | Effect of | discount rate | ||||||
| change in the | change in the | and the long- | Effect on | |||||
| discount rate | long-term | term growth | impairment | |||||
| Long-term | on the | growth rate on | rate on the | when key | ||||
| Discount rate | Long-term growth | Discount rate | growth rate | recoverable | the recoverable | recoverable | assumptions | |
| (in EUR thousand) | (WACC) | rate (g) | (WACC) | (g) | amount | amount | amount | change |
| + 0,5 | - 0,5 | (38,712) | (27,751) | (62,647) | - | |||
| Petrol d.o.o. | 9.43% | 2% | - 0,5 | + 0,5 | 44,307 | 31,755 | 81,805 | - |
| + 0,5 | - 0,5 | (2,144) | (1,712) | (3,670) | (1,075) | |||
| Petrol d.o.o. Beograd | 12.16% | 3% | - 0,5 | + 0,5 | 2,392 | 1,910 | 4,561 | - |
| + 1,0 | - 0,5 | (452) | (190) | (605) | - | |||
| Petrol Crna Gora MNE d.o.o. | 12.63% | 3% | - 1,0 | + 0,5 | 555 | 210 | 824 | - |
| + 1,0 | - 0,5 | (2,728) | (1,249) | (3,651) | - | |||
| E 3, d.o.o. | 8.35% | 2% | - 1,0 | + 0,5 | 3,727 | 1,460 | 5,856 | - |
| + 0,5 | - | (2,114) | - | (2,114) | - | |||
| Vjetroelektrane Ljubač d.o.o. | 11.77% | - | - 0,5 | - | 2,245 | - | 2,245 | - |
| + 0,5 | - | (1,543) | - | (1,543) | - | |||
| Vjetroelektrana Glunča d.o.o. | 11.77% | - | - 0,5 | - | 1,634 | - | 1,634 | - |
| + 0,5 | - 0,5 | (111) | (118) | (221) | - | |||
| MBills d.o.o. | 14.60% | 2% | - 0,5 | + 0,5 | 120 | 128 | 258 | - |
| + 0,5 | - 0,5 | (870) | (883) | (1,617) | (1,456) | |||
| Atet d.o.o. | 7.50% | 2% | - 0,5 | + 0,5 | 1,045 | 1,060 | 2,340 | - |
Options contracts
The agreement on the exchange of interests in Plinhold d.o.o. for interests in Geoplin d.o.o.
Ljubljana entered into with the Republic of Slovenia on 29 December 2017 envisages a second
stage of the exchange to take place following the fulfilment of suspensive conditions. During
this second stage of exchanging the interests, Petrol d.d., Ljubljana will acquire a 25.01 percent
interest in Geoplin d.o.o. in exchange for the 16.98 percent holding in Plinhold d.o.o. that it had
disposed of.
The second stage of the exchange is subject to suspensive conditions, the fulfilment of which
is beyond the control of any of the parties; therefore, we do not consider that the conditions for
recognising the option in the Group’s/Company’s financial statements have been met.
If the second stage under the above agreement on the exchange of interests and the
acquisition of interests from other stakeholders is implemented in full, it will cause the non-
controlling interest in the equity of the Petrol Group to decrease by EUR 30,107,463.
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Data on non-controlling interests
The financial data for each subsidiary with a non-controlling interest are summarised below.
Data for Petrol Power d.o.o., Adria-Plin d.o.o., STH Energy d.o.o. Kraljevo are shown among
others. Disclosures are made before the elimination of intercompany relationships.
In 2023, Petrol d.d. acquired an additional 23 percent interest in ATET d.o.o., thus becoming
a 100 percent owner of the company.
2022
| Petrol | |||||
| The Geoplin | Zagorski | Hidroenergija | |||
| (in EUR) | Group | metalac d.o.o. | d.o.o. Teslić | Others | Total |
| Revenue | 1,450,642,390 | 11,606,837 | 783,914 | 2,851,477 | 1,465,884,618 |
| Net profit for the year | (28,260,761) | (506,585) | 371,537 | 130,978 | (28,264,831) |
| Net profit for the year attributable to: | |||||
| Non-controlling interest | (7,250,924) | (32,578) | 74,310 | 3,261 | (7,205,931) |
| Total other comprehensive income after tax | (16,623,899) | (21,686) | - | 534 | (16,645,051) |
| Total comprehensive income for the year | (44,884,660) | (528,271) | 371,537 | 131,512 | (44,909,882) |
| Total comprehensive income attributable to: | |||||
| Non-controlling interest | (11,516,147) | (33,968) | 74,307 | 3,364 | (11,472,444) |
| Petrol | |||||
| The Geoplin | Zagorski | Hidroenergija | |||
| (in EUR) | Group | metalac d.o.o. | d.o.o. Teslić | Others | Total |
| Non-current (long-term) assets | 46,223,996 | 7,848,272 | 5,406,963 | 5,253,854 | 64,733,085 |
| Current assets | 296,065,447 | 9,273,796 | 1,871,673 | 1,415,723 | 308,626,639 |
| Non-current liabilities | (304,109) | (3,578,989) | - | (1,753,625) | (5,636,723) |
| Current liabilities | (228,178,923) | (3,373,973) | (105,693) | (8,702,885) | (240,361,474) |
| Net assets | 113,806,411 | 10,169,106 | 7,172,943 | (3,786,933) | 127,361,527 |
| Net assets attributable to: | |||||
| Non-controlling interest | 29,199,537 | 653,870 | 1,434,592 | 113,475 | 31,401,474 |
| Petrol | |||||
| The Geoplin | Zagorski | Hidroenergija | |||
| (in EUR) | Group | metalac d.o.o. | d.o.o. Teslić | Others | Total |
| Net cash from (used in) operating activities | (42,826,070) | 180,977 | 479,513 | 552,678 | (41,612,902) |
| Net cash from (used in) investing activities | 41,804,495 | (946,833) | 41,911 | (53,154) | 40,846,419 |
| Net cash from (used in) financing activities | 72,498 | (111,210) | (315,182) | (3,578) | (357,472) |
| Increase/(decrease) in cash and cash equivalents | (949,077) | (877,066) | 206,242 | 495,946 | (1,123,955) |
| Dividend payments to non-controlling interest | - | - | 78,795 | - | 78,795 |
2023
| Petrol | |||||
| The Geoplin | Zagorski | Hidroenergija | |||
| (in EUR) | Group | metalac d.o.o. | d.o.o. Teslić | Others | Total |
| Revenue | 1,014,057,610 | 14,661,044 | 3,274,316 | 4,849,957 | 1,036,842,927 |
| Net profit for the year | 2,549,210 | (236,754) | 2,515,874 | 1,771,694 | 6,600,024 |
| Net profit for the year attributable to: | |||||
| Non-controlling interest | 650,366 | (15,109) | 503,176 | 51,382 | 1,189,815 |
| Total other comprehensive income after tax | 956,590 | 2,680 | - | (1,022) | 958,248 |
| Total comprehensive income for the year | 3,505,800 | (234,074) | 2,515,874 | 1,770,672 | 7,558,272 |
| Total comprehensive income attributable to: | |||||
| Non-controlling interest | 894,417 | (14,934) | 503,175 | 51,184 | 1,433,842 |
| Petrol | |||||
| The Geoplin | Zagorski | Hidroenergija | |||
| (in EUR) | Group | metalac d.o.o. | d.o.o. Teslić | Others | Total |
| Non-current (long-term) assets | 42,537,497 | 7,385,382 | 5,427,322 | 4,955,701 | 60,305,902 |
| Current assets | 204,893,882 | 8,670,238 | 3,757,361 | 3,966,016 | 221,287,497 |
| Non-current liabilities | (202,786) | (3,406,636) | - | (1,749,554) | (5,358,976) |
| Current liabilities | (130,034,722) | (2,713,962) | (418,296) | (9,188,426) | (142,355,406) |
| Net assets | 117,193,871 | 9,935,022 | 8,766,387 | (2,016,263) | 133,879,017 |
| Net assets attributable to: | |||||
| Non-controlling interest | 29,899,083 | 633,853 | 1,753,275 | 164,663 | 32,450,874 |
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| Petrol | |||||
| The Geoplin | Zagorski | Hidroenergija | |||
| (in EUR) | Group | metalac d.o.o. | d.o.o. Teslić | Others | Total |
| Net cash from (used in) operating activities | (1,435,932) | 2,591,592 | 2,520,987 | 2,051,274 | 5,727,921 |
| Net cash from (used in) investing activities | 2,686,360 | (11,547,783) | 937,163 | (144,419) | (8,068,679) |
| Net cash from (used in) financing activities | (174,421) | 10,171,778 | (737,948) | 598,023 | 9,857,432 |
| Increase/(decrease) in cash and cash equivalents | 1,076,007 | 1,215,587 | 2,720,202 | 2,504,878 | 7,516,674 |
| Dividend payments to non-controlling interest | - | - | 184,486 | - | 184,486 |
5.20 Investments in jointly controlled entities
A more detailed overview of the Group’s structure is presented in the chapter Companies in
the Petrol Group of the business report.
Information about jointly controlled entities as at 31 December 2023
| Ownership and voting | ||||
| rights | ||||
| Name of jointly controlled | Address of jointly controlled | 31 December | 31 December | |
| entity | entity | Business activities | 2023 | 2022 |
| Slovenia | ||||
| GEOENERGO d.o.o. - V | Extraction of natural gas, oil | |||
| STEČAJU * | Mlinska ulica 5, Lendava, Slovenia | and gas condensate | 50% | 50% |
| Electricity, gas and steam | ||||
| Soenergetika d.o.o. | Stara cesta 3, Kranj, Slovenia | supply | 25% | 25% |
| Croatia | ||||
| Krapanjska cesta 8, Šibenik, | ||||
| Vjetroelektrana Dazlina d.o.o. | Croatia | Electricity production | 50% | 50% |
* GEOENERGO d.o.o. – V STEČAJU hereinafter Geoenergo d.o.o.
After analysing the contracts of members of jointly controlled entities, the Group/Company
established that it does not control those entities, disclosing them as investments in jointly
controlled entities as a result.
Balance of investments in jointly controlled entities
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Soenergetika d.o.o. | 327,566 | 1,214,374 | 210,000 | 210,000 |
| Vjetroelektrarna Dazlina d.o.o. | 22,674 | 22,816 | 23,000 | 23,000 |
| Geoenergo d.o.o. | - | 40,558 | - | - |
| Total investments in jointly controlled entities | 350,240 | 1,277,748 | 233,000 | 233,000 |
The Petrol Group
Changes in investments in jointly controlled entities
| The Petrol Group | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 1,277,748 | 704,501 |
| Attributed profit/loss | 44,439 | 665,483 |
| Dividends received | (931,389) | (115,217) |
| New acquisitions | - | 23,000 |
| Impairment | (40,558) | - |
| Foreign exchange differences | - | (19) |
| As at 31 December | 350,240 | 1,277,748 |
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In 2023, in conformity with the equity method, the Group attributed the corresponding share of
profits, in total EUR 44,439 (2022: EUR 665,483), deducting from the investments the
dividends received of EUR 931,389 (2022: EUR 115,217).
In 2022, the Group reacquired a 50 percent interest in the jointly controlled entity
Vjetroelektrana Dazlina d.o.o., which it sold in 2021.
Based on the impairment review of investments in jointly controlled entities, the Group impaired
the investment in Geoenergo by EUR 40,558 as the company is in bankruptcy proceedings as
of 19 January 2024.
No impairment needs were identified in 2022.
Significant amounts from the financial statements of jointly controlled entities
2022
| Net profit | |||||||||
| Net assets | Net assets | or loss | |||||||
| of jointly | of the | Carrying | attributable | ||||||
| Liabilities | controlled | Ownership | Petrol | amount of the | Net profit | to the Petrol | |||
| (in EUR) | Assets | (debt) | entities | interest | Group | investment | Revenue | or loss | Group |
| Soenergetika | |||||||||
| d.o.o. | 5,564,582 | 707,087 | 4,857,495 | 25% | 1,214,374 | 1,214,374 | 7,421,629 | 3,727,173 | 931,793 |
| Geoenergo | |||||||||
| d.o.o. | 3,107,184 | 2,928,991 | 178,193 | 50% | 89,097 | 40,558 | 5,863,181 | (299,384) | (149,692) |
| Vjetroelektrana | |||||||||
| Dazlina d.o.o. | 317,212 | 319,028 | (1,816) | 50% | (908) | 22,816 | 517 | (332) | (166) |
2023
| Net profit | |||||||||
| Net assets | Net assets | or loss | |||||||
| of jointly | of the | Carrying | attributable | ||||||
| Liabilities | controlled | Ownership | Petrol | amount of the | Net profit | to the Petrol | |||
| (in EUR) | Assets | (debt) | entities | interest | Group | investment | Revenue | or loss | Group |
| Soenergetika | |||||||||
| d.o.o. | 1,596,196 | 285,933 | 1,310,263 | 25% | 327,566 | 327,566 | 2,310,091 | 179,927 | 44,982 |
| Geoenergo | |||||||||
| d.o.o. | 1,370,771 | 3,810,813 | (2,440,042) | 50% | (1,220,021) | - | 2,260,142 | (2,314,929) | (1,157,464) |
| Vjetroelektrana | |||||||||
| Dazlina d.o.o. | 530,363 | 532,462 | (2,099) | 50% | (1,050) | 22,674 | 25 | (284) | (142) |
Petrol d.d., Ljubljana
Changes in investments in jointly controlled entities
| Petrol d.d. | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 233,000 | 210,000 |
| New acquisitions | - | 23,000 |
| As at 31 December | 233,000 | 233,000 |
The increase in investment in 2022 relates to Vjetroelektrana Dazlina d.o.o.
Options contracts
The original contract for the acquisition of a 50 percent interest in Vjetroelektrarna Dazlina
d.o.o. from 2017 contains a call option under which Petrol d.d., Ljubljana has an option to
acquire the remaining 50 percent interest in Vjetroelektrarna Dazlina d.o.o. at fair value. The
option is enforceable subject to suspensive conditions.
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5.21 Investments in associates
A more detailed overview of the Group’s structure is presented in the chapter Companies in
the Petrol Group of the business report.
Information about associates as at 31 December 2023
| Ownership and voting | ||||
| rights | ||||
| Name of associate | 31 December | 31 December | ||
| Address of associate | Business activities | 2023 | 2022 | |
| Slovenia | ||||
| Management of gas | ||||
| Plinhold d.o.o. | Mala ulica 5, Ljubljana, Slovenia | infrastructure | 30% | 30% |
| Construction and operation of | ||||
| Dupleška cesta 330, Maribor, | industrial and municipal water | |||
| Aquasystems d.o.o. | Slovenia | treatment plants | 26% | 26% |
| Knešca d.o.o. | Kneža 78, Most na Soči, Slovenia | Electricity production | 47.27% | 47.27% |
Balance of investments in associates
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Plinhold d.o.o. | 56,930,670 | 54,737,222 | 26,273,425 | 26,273,425 |
| Aquasystems d.o.o. | 1,313,597 | 1,309,691 | 337,052 | 337,052 |
| Knešca d.o.o. | 1,072,274 | 921,364 | - | - |
| Total investments in associates | 59,316,541 | 56,968,277 | 26,610,477 | 26,610,477 |
The Petrol Group
Changes in investments in associates
| The Petrol Group | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 56,968,277 | 55,169,626 |
| Attributed profit/loss | 3,679,698 | 2,662,912 |
| Dividends received | (1,349,918) | (864,261) |
| Attributed changes in the equity of associates | 18,484 | - |
| As at 31 December | 59,316,541 | 56,968,277 |
In 2023, in conformity with the equity method, the Group attributed the corresponding share of
2023 profits or losses to its investments, in total EUR 3,784,698 (2022: EUR 2,662,912 EUR),
deducting from the investments the dividends received of EUR 1,349,918 (2022: EUR
864,261).
Significant amounts from the financial statements of associates
2022
| Net profit | |||||||||
| Net | or loss | ||||||||
| assets | Ownershi | Net assets | Carrying | attributable | |||||
| Liabilities | of | p | of the | amount of the | Net profit | to the Petrol | |||
| (in EUR) | Assets | (debt) | associates | interest | Petrol Group | investment | Revenue | or loss | Group |
| Plinhold d.o.o. * | 346,700,000 | 125,100,000 | 221,600,000 | 30% | 65,811,876 | 54,737,222 | 100,000,000 | 5,400,000 | 1,603,719 |
| Aquasystems | |||||||||
| d.o.o. | 7,428,079 | 2,419,467 | 5,008,612 | 26% | 1,302,239 | 1,309,691 | 8,329,270 | 3,456,249 | 898,625 |
| Knešca d.o.o. | 1,546,971 | 104,412 | 1,442,559 | 47.27% | 681,897 | 921,364 | 421,841 | 216,809 | 102,485 |
* Figures are based on the estimated financial statements obtained from the associate.
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2023
| Net profit | |||||||||
| or loss | |||||||||
| Ownershi | Net assets | Carrying | attributable | ||||||
| Liabilities | Net assets | p | of the | amount of the | Net profit | to the Petrol | |||
| (in EUR) | Assets | (debt) | of associates | interest | Petrol Group | investment | Revenue | or loss | Group |
| Plinhold d.o.o. * | 327,600,000 | 98,654,252 | 228,945,748 | 30% | 68,324,738 | 56,930,670 | 67,800,000 | 8,300,000 | 2,476,986 |
| Aquasystems | |||||||||
| d.o.o. | 6,203,887 | 1,151,591 | 5,052,296 | 26% | 1,313,597 | 1,313,597 | 8,771,238 | 3,499,827 | 909,955 |
| Knešca d.o.o. | 1,986,621 | 222,506 | 1,764,115 | 47.27% | 833,897 | 1,072,274 | 870,646 | 541,973 | 256,191 |
* Figures are based on the estimated financial statements obtained from the associate.
Petrol d.d., Ljubljana
Changes in investments in associates
| Petrol d.d. | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 26,610,477 | 26,610,477 |
| As at 31 December | 26,610,477 | 26,610,477 |
Options contracts
The agreement on the exchange of interests in Plinhold d.o.o. for interests in Geoplin d.o.o.
Ljubljana entered into with the Republic of Slovenia on 29 December 2017 envisages a second
stage of the exchange to take place following the fulfilment of suspensive conditions. During
this second stage of exchanging the interests, Petrol d.d., Ljubljana will acquire a 25.01 percent
interest in Geoplin d.o.o. in exchange for the 16.98 percent holding in Plinhold d.o.o. that it had
disposed of.
The second stage of the exchange is subject to suspensive conditions, the fulfilment of which
is beyond the control of any of the parties; therefore, we do not consider that the conditions for
recognising the option in the Group’s/Company’s financial statements have been met.
5.22 Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are investments in the
shares and interests of companies, bonds and interest rate and commodity swaps.
Balance of financial assets at fair value through other comprehensive income
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Current balance of financial assets at fair value | ||||
| through other comprehensive income | ||||
| Assets arising from interest rate swaps | 20,605,792 | 34,616,805 | 18,158,026 | 30,293,507 |
| Assets arising from commodity swaps | 1,980,980 | 3,083,184 | 1,980,980 | 3,083,184 |
| Bonds | - | 334,077 | - | - |
| 22,586,772 | 38,034,066 | 20,139,006 | 33,376,691 | |
| Non-current balance of financial assets at fair value | ||||
| through other comprehensive income | ||||
| Shares of companies | 1,929,723 | 2,048,210 | 1,871,378 | 1,871,378 |
| Interests in companies | 2,064,136 | 2,064,136 | 246,536 | 246,536 |
| 3,993,859 | 4,112,346 | 2,117,914 | 2,117,914 | |
| Total financial assets at fair value through other | ||||
| comprehensive income | 26,580,631 | 42,146,412 | 22,256,920 | 35,494,605 |
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The interest rate swap assets are fully earmarked for hedging and the effects are recognised
in other comprehensive income and shown in the hedging reserve within equity.
Changes in non-current financial assets at fair value through other comprehensive
income
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| As at 1 January | 4,112,346 | 4,133,044 | 2,117,914 | 2,117,914 |
| Disposals | (118,487) | (20,698) | - | - |
| As at 31 December | 3,993,859 | 4,112,346 | 2,117,914 | 2,117,914 |
The Group’s/Company’s financial assets at fair value through other comprehensive income
are carried at fair value.
5.23 Non-current loans
Balance of non-current loans
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Loans and other financial receivables | 2,362,489 | 949,277 | 29,071,795 | 59,134,780 |
| Total non-current loans | 2,362,489 | 949,277 | 29,071,795 | 59,134,780 |
The Petrol Group
Changes in non-current loans
| The Petrol Group | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 949,277 | 991,831 |
| New loans | 193,279 | 178,621 |
| Loans repaid | (194,783) | (1,355,624) |
| Increase in financial leases | 671,081 | - |
| Reversal of allowances | - | 638,125 |
| Transfer from current loans | 744,462 | 498,189 |
| Foreign exchange differences | (827) | (1,865) |
| As at 31 December | 2,362,489 | 949,277 |
Petrol d.d., Ljubljana
Non-current loans of EUR 29,071,795 (EUR 59,134,780 as at 31 December 2022) include non-
current loans granted to Group companies totalling EUR 28,108,438 (EUR 59,087,634 as at
31 December 2022) and non-current loans granted to others of EUR 693,357 (EUR 47,146 as
at 31 December 2022).
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Non-current loans to subsidiaries are presented in the table below.
| Petrol d.d. | ||
| (in EUR) | 2023 | 2022 |
| Non-current loans to subsidiaries | ||
| Vjetroelektrarna Ljubač d.o.o. | 21,566,307 | 25,786,626 |
| Petrol d.o.o. Beograd | 5,000,000 | 10,000,000 |
| STH Energy d.o.o. Kraljevo | 1,402,492 | 1,402,492 |
| Ekoen d.o.o. | 80,000 | 173,200 |
| Ekoen S d.o.o. | 59,639 | 78,199 |
| Vjetroelektrarne Glunča d.o.o. | - | 13,308,291 |
| Petrol LPG d.o.o. | - | 6,000,000 |
| Petrol d.o.o., Zagreb | - | 2,338,826 |
| Total | 28,108,438 | 59,087,634 |
Changes in non-current loans
| Petrol d.d. | ||
| (in EUR) | 2023 | 2022 |
| As at 1 January | 59,134,780 | 83,299,185 |
| New loans | 20,820,458 | 39,227,436 |
| Transfer to current loans | (50,881,736) | (63,373,591) |
| Foreign exchange differences | (1,707) | (18,250) |
| As at 31 December | 29,071,795 | 59,134,780 |
5.24 Non-current operating receivables
The majority of non-current operating receivables consist of the receivables due to Petrol d.d.,
Ljubljana.
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Receivables arising from the sale of solar power plants | 8,466,051 | 7,013,563 | 8,451,738 | 7,007,360 |
| Other receivables | 2,191 | 2,193 | 180 | 180 |
| Total non-current operating receivables | 8,468,242 | 7,015,756 | 8,451,918 | 7,007,540 |
Receivables from the sale of solar power plants relate to the long-term instalment part of the
sale.
5.25 Inventories
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Spare parts and materials | 6,181,410 | 2,827,561 | 5,795,708 | 2,502,499 |
| Merchandise: | 199,582,715 | 262,021,704 | 110,159,109 | 148,675,864 |
| - fuel | 137,192,459 | 205,210,206 | 65,828,213 | 105,874,708 |
| - other petroleum products | 225,765 | 146,102 | 177,755 | 123,081 |
| - other merchandise | 62,164,491 | 56,665,396 | 44,153,141 | 42,678,075 |
| Total inventories | 205,764,125 | 264,849,265 | 115,954,817 | 151,178,363 |
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The Petrol Group
The Group has no inventories that are pledged as security for liabilities.
After examining the value of the goods inventories as at 31 December 2023, the Group
determined that the carrying amount of certain products exceeded their net realisable value.
Consequently, the Group revalued the inventories with a net realisable value, i.e. the estimated
selling price in the ordinary course of business less the estimated costs to sell, which was
lower than their carrying amount by EUR 2,001,290 (2022: EUR 6,194,071) taking into account
the market prices as at the date of the financial statements.
Petrol d.d., Ljubljana
The Company has no inventories that are pledged as security for liabilities.
After examining the value of goods inventories as at 31 December 2023, the Company
determined that the carrying amount of certain products exceeded their net realisable value.
Consequently, the Company revalued the inventories with a net realisable value, i.e. the
estimated selling price in the ordinary course of business less the estimated costs to sell, which
was lower than their carrying amount by EUR 1,986,925, taking into account the market prices
as at the date of the financial statements. In 2022, the Company did not impair its inventories.
5.26 Current loans
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Loans granted | 1,312,797 | 2,365,069 | 36,359,147 | 39,937,625 |
| Allowance to the value of loans granted | (779,504) | (779,400) | (718,115) | (718,115) |
| Time deposits with banks (3 months to 1 year) | 159,236 | 43,103 | 142,286 | 26,869 |
| Interest receivables | 261,432 | 73,654 | 7,845,791 | 6,616,330 |
| Allowance for interest receivables | (178,654) | (23,288) | (4,987,117) | (4,518,947) |
| Total current loans | 775,307 | 1,679,138 | 38,641,992 | 41,343,762 |
The Petrol Group
In addition to loans of EUR 532,772 granted by Petrol d.d., Ljubljana to others (EUR 1,284,433
as at 31 December 2022) (for an explanation, see the disclosure relating to the Company), the
loans granted include short-term loans of EUR 780,025 (EUR 1,080,636 as at 31 December
2022) granted to other companies, mainly in connection with the payment of goods delivered.
Petrol d.d., Ljubljana
Current loans to companies of EUR 36,359,147 (EUR 39,937,625 as at 31 December 2022)
include the current portion of loans to Group companies totalling EUR 35,826,375 (EUR
38,653,192 as at 31 December 2022) and current loans to others equalling EUR 532,772 (EUR
1,284,433 as at 31 December 2022).
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Current loans to subsidiaries are presented below.
| Petrol d.d. | ||
| (in EUR) | 31 December 2023 | 31 December 2022 |
| Current loans to subsidiaries | ||
| Petrol d.o.o., Beograd | 15,000,000 | 16,200,000 |
| Atet d.o.o. | 6,774,728 | 3,490,000 |
| Petrol LPG d.o.o. | 6,000,000 | - |
| E 3, d.o.o. | 3,759,000 | 12,200,000 |
| Petrol Power d.o.o. Sarajevo | 3,562,233 | 3,562,233 |
| Petrol Bucharest ROM S.R.L. | 603,234 | 603,234 |
| Petrol Oti Terminali d.o.o. | 69,975 | 44,975 |
| Ekoen d.o.o. | 33,200 | 33,200 |
| Ekoen S d.o.o. | 19,550 | 19,550 |
| Atet Mobility Zagreb d.o.o. | 4,455 | - |
| Petrol Crna Gora MNE | - | 2,500,000 |
| Total | 35,826,375 | 38,653,192 |
Current loans to others of EUR 532,772 (EUR 1,284,433 as at 31 December 2022) refer to
loans to companies for the payment of goods delivered of EUR 454,112 (EUR 1,198,573 as at
31 December 2022) and other loans of EUR 78,660 (EUR 85,860 as at 31 December 2022).
The Company did not have any loans arising from the sale of financial instruments as at 31
December 2023, the same as at 31 December 2022.
5.27 Current operating receivables
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Current financial assets | ||||
| Trade receivables | 824,858,769 | 883,095,961 | 556,416,110 | 585,600,764 |
| Allowance for trade receivables | (56,144,286) | (58,471,044) | (30,014,240) | (30,333,833) |
| Operating interest receivables | 1,870,604 | 1,362,471 | 2,763,821 | 2,232,069 |
| Allowance for interest receivables | (1,798,342) | (1,239,410) | (1,368,186) | (843,877) |
| Receivables from insurance companies (loss events) | 130,592 | 48,497 | 65,420 | 26,635 |
| Other operating receivables | 27,303,395 | 17,874,625 | 12,548,040 | 10,833,971 |
| Allowance for other receivables | (2,015,642) | (2,484,713) | (760,777) | (724,840) |
| 794,205,090 | 840,186,387 | 539,650,188 | 566,790,889 | |
| Current non-financial assets | ||||
| Operating receivables from state and other institutions | 7,895,943 | 5,008,957 | 47,122 | - |
| 7,895,943 | 5,008,957 | 47,122 | - | |
| Total current operating receivables | 802,101,033 | 845,195,344 | 539,697,310 | 566,790,889 |
Other operating receivables mainly represent card receivables from banks. The changes in
allowances are presented in Note 6.1.
5.28 Contract assets
The Petrol Group
Contract assets represent a transfer of goods or services to a customer before the
consideration is paid. Contract assets relate to public lighting projects. As at 31 December
2023, contract assets amounted to EUR 6,052,405 (2022: EUR 13,319,362).
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5.29 Financial assets at fair value through profit or loss
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Assets arising from commodity swaps | 3,960,075 | 2,297,589 | 3,882,986 | 2,176,692 |
| Assets arising from currency forward contracts | - | 348,745 | - | 348,745 |
| Total financial assets at fair value through profit or | ||||
| loss | 3,960,075 | 2,646,334 | 3,882,986 | 2,525,437 |
The Petrol Group and Petrol d.d., Ljubljana
Assets arising from commodity swaps represent the fair values of outstanding commodity swap
contracts for the purchase of petroleum products and electricity as at 31 December 2023.
All of the above financial assets arising from derivative financial instruments should be
considered in conjunction with outstanding contracts disclosed under other financial liabilities
in Note 5.36.
5.30 Prepayments and other assets
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Prepayments and collaterals | 70,919,121 | 80,538,388 | 29,423,366 | 27,457,632 |
| Accrued claims against Borzen | 30,551,965 | 6,460,495 | 21,990,157 | 6,460,495 |
| Excise duties receivables | 17,850,186 | 14,825,587 | 9,283,423 | 8,163,280 |
| Prepaid licences, subscriptions, specialised literature, etc. | 2,557,849 | 3,640,143 | 2,168,119 | 2,888,280 |
| Prepaid insurance premiums | 1,647,173 | 1,618,395 | 1,222,171 | 1,299,037 |
| Other deferred expenses | 6,587,244 | 8,184,855 | 4,327,834 | 5,199,473 |
| Total prepayments and other assets | 130,113,538 | 115,267,863 | 68,415,070 | 51,468,197 |
The main part of prepayments and securities receivable are securities given to suppliers for
the leasing of cross-border transport capacity abroad and for the purpose of trading (buying
and selling) electricity or natural gas in certain markets.
Among other assets, the Group/Company also discloses claims to Borzen for the difference
between the average monthly purchase cost and the regulated retail price for the supply of
electricity and natural gas. As a result, the Group recorded a reduction in costs of EUR
83,277,404 in 2023 (2022: EUR 6,460,495). And the Company recorded a reduction in costs
of EUR 52,322,823 in 2023 (2022: EUR 6,460,495).
5.31 Cash and cash equivalents
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Cash in banks | 60,958,323 | 87,958,378 | 22,829,042 | 43,687,289 |
| Short-term deposits (up to 3 months) | 28,002,701 | 14,438 | - | - |
| Cash on the way | 16,975,982 | 12,989,715 | 10,191,420 | 7,516,072 |
| Total cash and cash equivalents | 105,937,006 | 100,962,531 | 33,020,462 | 51,203,361 |
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5.32 Equity
Called-up capital
On 1 November 2022, Petrol d.d., Ljubljana, executed a split of the PETG share (in a ratio of
1:20) in accordance with the resolution of the 34
th
General Meeting following the entry into
force of the resolution on the amendment of the Articles of Association, through the entry of
the amendment of the Articles of Association in the court register, the corporate exchange act
and the prescribed procedures in the Central Register of Securities at the KDD d.o.o. and the
Ljubljana Stock Exchange.
The 34
th
General Meeting of Petrol d.d., Ljubljana, held on 21 April 2022, on the proposal of
the Management Board and the Supervisory Board of Petrol d.d., Ljubljana, adopted a
resolution on the PETG share split. The General Meeting adopted a split ratio of 1:20, which
means that the total number of PETG shares increased by a factor of 20 from 2,086,301 to
41,726,020 as a result of the amendment of the Articles of Association and the split. The share
capital of Petrol d.d., Ljubljana, amounting to EUR 52,240,977, remained unchanged following
the PETG share split.
The Company’s share capital now totals EUR 52,240,977 and is divided into 41,726,020
ordinary shares with a nominal value of EUR 1.25. All the shares have been paid up in full.
41,726,020 ordinary shares (designated PETG) are listed on the Ljubljana Stock Exchange.
The quoted share price as at 31 December 2023 was EUR 23.30 per share (EUR 20.00 as at
31 December 2022) and the book value per share of the Group as at 31 December 2023 was
EUR 22.12 (EUR 20.61 as at 31 December 2022).
Capital surplus
Capital surplus may be used under the conditions and for the purposes stipulated by law.
The Group’s capital surplus stood at EUR 80,991,385 as at 31 December 2023 and consists
of the general equity revaluation adjustment of EUR 80,080,610, which was transferred to
capital surplus on the transition to the IFRS, and the capital surplus of EUR 910,775
representing the excess of the disposal value over the carrying amount of own shares paid to
the Company’s Supervisory Board members as a bonus. The Company’s capital surplus as at
31 December 2023 was the same as the Group’s capital surplus.
In 2023, there were no changes in capital surplus.
Profit reserves
− Legal reserves and other profit reserves
Legal and other profit reserves comprise shares of profit from previous years that have been
retained for a dedicated purpose, mainly for offsetting eventual future losses Based on the
proposal of the Company’s Management Board for the approval of the annual report 2023, the
Company’s Supervisory Board in accordance with Article 230 of the Companies Act approved
the use of the net profit to create other profit reserves of EUR 46,402,790Own shares and
If the parent company or its subsidiaries acquire an ownership interest in the parent company,
the amount paid, including transaction costs less tax, is deducted from the total equity in the
form of own shares until such shares are cancelled, reissued or sold. If own shares are later
sold or reissued, the consideration received is included in the equity net of transaction costs
and related tax effects.
Petrol d.d., Ljubljana
In 2023, the number of own shares remained unchanged. As at 31 December 2023, the
Company held 494,060 own shares. The market value of the repurchased own shares totalled
EUR 11,511,598 on the above date (EUR 9,881,200 as at 31 December 2022). The Company
did not change its reserves for own shares in 2023.
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The Petrol Group
The company Geoplin d.o.o. Ljubljana owned 120,400 shares of Petrol d.d., Ljubljana as at 31
December 2023, the market value of which on that date was EUR 2,805,320 (EUR 2,408,000
as at 31 December 2022). The Group held 614,460 own shares as at 31 December 2023. The
market value of own shares was EUR 14,316,918 on the above date (EUR 12,289,200 as at
31 December 2022).
Other reserves
Other reserves of the Group/Company consist of fair value reserve and the hedging reserve.
Changes in these reserves that took place in 2023 are explained in more detail in Note 5.14.
The nature of other reserves (especially drawing) must also take into account local legislation,
which may be a matter of professional legal judgment.
The Company’s fair value reserve totalled EUR 42,782,085 as at 31 December 2023. The fair
value reserve consists of the reserves of EUR 40,513,851 resulting from the upstream merger
of Instalacija d.o.o. and the reserves of EUR 742,921 resulting from carrying financial assets
at fair value through other comprehensive income. Its value was increased by actuarial gains
resulting from the actuarial calculation of post-employment benefits on retirement totalling EUR
1,688,753 and decreased by deferred taxes of EUR 163,441.
The Group’s hedging reserves as at 31 December 2023 amount to EUR 6,077,707 and relate
to the positive valuation of interest rate swaps of EUR 15,786,927, the negative valuation of
currency forward contracts of EUR 5,262,840 and the negative valuation of commodity
derivative financial instruments of EUR 4,446,380.
The Company’s hedging reserves as at 31 December 2023 amount to EUR 15,732,898 and
relate to the positive valuation of interest rate swaps of EUR 13,781,781 and the positive
valuation of commodity derivative financial instruments of EUR 1,951,117.
Movements on the hedge reserves
| The Petrol Group | Petrol d.d. | ||||
| Currency | |||||
| Interest rate | Commodity | forward | Interest rate | Commodity | |
| (in EUR) | swaps | derivatives | contracts | swaps | derivatives |
| As at 1 January 2022 | (876,597) | 18,013 | - | (1,154,863) | 18,013 |
| Changes in fair value - gross | 35,701,883 | (9,854,828) | (8,092,022) | 31,719,264 | 2,572,956 |
| Deferred taxes | (6,743,531) | 1,872,416 | 1,537,484 | (6,026,660) | (488,862) |
| Non-controlling interests share in | |||||
| changes in fair value - gross | - | 3,188,621 | 2,076,186 | - | - |
| Deferred taxes | - | (605,838) | (394,475) | - | - |
| As at 31 December 2022 | 28,081,755 | (5,381,616) | (4,872,827) | 24,537,741 | 2,102,107 |
| Changes in fair value - gross | (14,501,224) | 1,297,818 | (982,507) | (12,624,557) | (93,762) |
| Deferred taxes | 2,206,396 | 9,458 | 458,912 | 1,868,597 | (57,228) |
| Non-controlling interests share in | |||||
| changes in fair value - gross | - | (355,027) | 250,662 | - | - |
| Deferred taxes | - | (17,013) | (117,080) | - | - |
| As at 31 December 2023 | 15,786,927 | (4,446,380) | (5,262,840) | 13,781,781 | 1,951,117 |
Interest rate swaps are designated as a hedging instrument against the variability of cash flows
from bank borrowings.
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Currency forward contracts and commodity derivative financial instruments are designated as
hedging instruments against the variability of cash flows under a gas purchase agreement with
a subsidiary, Geoplin d.o.o.
Because all the material characteristics of the hedged item and the hedging instrument are
consistent (price, period, amount and quantity), we assess that the hedges are effective and
that it is appropriate to record the effects of the hedges in other comprehensive income.
Accumulated profit
Allocation of accumulated profit for 2022
At the 37
th
General Meeting of the joint-stock company Petrol d.d., Ljubljana held on 18 May
2023, the shareholders adopted the following resolution on the allocation of accumulated profit:
As proposed by the Management Board and the Supervisory Board, the accumulated profit for
the 2022 financial year of EUR 61,847,940 was to be allocated in accordance with the
provisions of Articles 230, 282 and 293 of the Companies Act (ZGD-1) as the payment of gross
dividends of EUR 1.5 per share or the total of EUR 61,667,340 (own shares excluded). The
remaining accumulated profit of EUR 180,600 and any amounts linked to own shares arising
on the date the dividends are paid and amounts resulting from rounding off dividend payments
were to be transferred to other profit reserves.
The dividends were paid out of the net profit for 2022. In 2023, the Company paid out dividends
for the year 2022 of EUR 61,667,340.
Accumulated profit for 2023
| Petrol d.d. | ||
| (in EUR) | 31 December 2023 | 31 December 2022 |
| Compulsory allocation of net profit | ||
| Net profit | 92,805,581 | 19,383,878 |
| Net profit after compulsory allocation | 92,805,581 | 19,383,878 |
| Creation of other profit reserves | 46,402,790 | 9,691,939 |
| Determination of accumulated profit | ||
| Net profit | 46,402,790 | 9,691,939 |
| Other profit reserves | 27,814,738 | 52,156,001 |
| Accumulated profit | 74,217,528 | 61,847,940 |
Based on the proposal of the Company’s Management Board for the approval of the annual
report, the Company’s Supervisory Board in accordance with Article 230 of the Companies Act
approved the use of the net profit to create other profit reserves of EUR 46,402,790, and a
transfer of other profit reserves to accumulated profit in the amount of EUR 27,814,738 and
thus approved the accumulated profit of EUR 74,217,528.
The final dividends for the year ended 31 December 2023 have not yet been proposed and
confirmed by the owners at a General Meeting of Shareholders, which is why they have not
been recorded as liabilities in these financial statements.
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5.33 Provisions for employee post-employment and other long-term benefits
Provisions for employee post-employment and other long-term benefits comprise provisions
for post-employment benefits on retirement and jubilee benefits. The provisions amount to the
estimated future payments for post-employment benefits on retirement and jubilee benefits
discounted to the end of the reporting period. The calculation is made separately for each
employee by taking into account the costs of the post-employment benefits on retirement and
the costs of all the expected jubilee benefits until retirement.
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Post-employment benefits on retirement | 5,037,916 | 5,003,701 | 3,946,850 | 3,789,738 |
| Jubilee benefits | 2,522,618 | 2,832,984 | 1,988,125 | 2,108,880 |
| Total provisions | 7,560,534 | 7,836,685 | 5,934,975 | 5,898,618 |
The Petrol Group
Changes in the provisions for employee post-employment and other long-term benefits
| The Petrol Group | |||
| Post- | |||
| employment | |||
| (in EUR) | benefits | Jubilee benefits | Total |
| As at 1 January 2022 | 6,190,099 | 3,325,992 | 9,516,091 |
| Current service cost | 483,926 | 80,770 | 564,696 |
| Costs of interest | 9,833 | 9,308 | 19,141 |
| Post-employment benefits paid | (170,283) | (251,425) | (421,708) |
| Actuarial surplus/deficit | (1,501,561) | 76,801 | (1,424,760) |
| Reversal | (8,007) | (407,784) | (415,791) |
| Foreign exchange differences | (306) | (678) | (984) |
| As at 31 December 2022 | 5,003,701 | 2,832,984 | 7,836,685 |
| Current service cost | 522,483 | 349,961 | 872,444 |
| Costs of interest | 154,171 | 89,131 | 243,302 |
| Post-employment benefits paid | (176,463) | (240,939) | (417,402) |
| Actuarial surplus/deficit | (466,076) | (490,558) | (956,634) |
| Reversal | - | (18,074) | (18,074) |
| Foreign exchange differences | 100 | 113 | 213 |
| As at 31 December 2023 | 5,037,916 | 2,522,618 | 7,560,534 |
The calculation of the provisions for employee post-employment and other long-term benefits
is based on the actuarial calculation, which relied on the following assumptions:
− a 3.48 percent annual discount rate for companies in Slovenia (2022: 3.02 percent), which
is based on the yield of a 10-year AA-rated euro corporate bond, a 3.48 percent discount
rate for companies in Croatia (2022: 3.79 percent), a 4.01 percent discount rate for
companies in the Federation of Bosnia and Herzegovina (2022: 9.45 percent), and a 6.52
percent discount rate for companies in Serbia (2022: 7.07);
− the currently applicable amount of post-employment and jubilee benefits specified in the
internal acts;
− staff turnover, primarily depending on their age;
− mortality is based on the most recent mortality tables for the local population.
For Group companies, it is assumed that the average salaries will increase by 2 percentage
points and, in addition, that individual salaries will increase by 0.5 percentage points.
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Sensitivity analysis
| Discount rate | Salary increase | Staff turnover | ||||
| Change in | Percentage point | Percentage point | Percentage point | |||
| Change by | 1.0 | -1.0 | 1.0 | -1.0 | 1.0 | -1.0 |
| Effect on the balance of provisions for | ||||||
| employee post-employment and other | ||||||
| long-term benefits (in EUR) | (852,624) | 1,005,202 | 1,007,306 | (869,594) | (909,751) | 1,061,882 |
Petrol d.d., Ljubljana
Changes in the provisions for employee post-employment and other long-term
benefits
| Petrol d.d. | |||
| Post- | |||
| employment | Jubilee | ||
| (in EUR) | benefits | benefits | Total |
| As at 1 January 2022 | 5,244,108 | 2,725,701 | 7,969,809 |
| Current service cost | 371,525 | - | 371,525 |
| Post-employment benefits paid | (146,611) | (218,304) | (364,915) |
| Actuarial surplus/deficit | (1,679,284) | (398,517) | (2,077,801) |
| As at 31 December 2022 | 3,789,738 | 2,108,880 | 5,898,618 |
| Current service cost | 390,072 | 283,918 | 673,990 |
| Costs of interest | 114,617 | 63,781 | 178,398 |
| Post-employment benefits paid | (139,510) | (211,703) | (351,213) |
| Actuarial surplus/deficit | (208,067) | (256,751) | (464,818) |
| As at 31 December 2023 | 3,946,850 | 1,988,125 | 5,934,975 |
The calculation of the provisions for employee post-employment and other long-term benefits
is based on the actuarial calculation, which relied on the following assumptions:
− a 3.48-percent annual discount rate (2022: 3.02-percent), which is based on the yield of a
10-year AA-rated euro corporate bond,
− the currently applicable amount of post-employment and jubilee benefits specified in the
internal acts;
− staff turnover, primarily depending on their age;
− mortality is based on the most recent mortality tables for the local population.
It is assumed that the average salaries will increase by 2 percentage points and, in addition,
that individual salaries will increase by 0.5 percentage point.
Sensitivity analysis
| Discount rate | Salary increase | Staff turnover | ||||
| Change in | Percentage point | Percentage point | Percentage point | |||
| Change by | 1.0 | -1.0 | 1.0 | -1.0 | 1.0 | -1.0 |
| Effect on the balance of provisions for | ||||||
| employee post-employment and other | ||||||
| long-term benefits (in EUR) | (519,559) | 611,709 | 614,808 | (531,315) | (553,546) | 645,037 |
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5.34 Other provisions
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Long-term other provisions | ||||
| Provisions for partial non-compliance in the area of | ||||
| renewables in transport | 30,037,161 | 12,986,510 | 26,723,525 | 8,869,550 |
| Provisions for employee post-employment and other | ||||
| long-term benefits at third-party managed service | ||||
| stations | 2,436,099 | 2,576,650 | 2,436,099 | 2,576,650 |
| Provisions for lawsuits | 2,253,955 | 2,511,603 | 1,522,983 | 1,799,722 |
| Other provisions | 153,000 | 136,000 | 153,000 | 136,000 |
| 34,880,215 | 18,210,763 | 30,835,607 | 13,381,922 | |
| Short-term other provisions | ||||
| Provisions for onerous contracts | 12,110,941 | 785,846 | 3,397,085 | - |
| Other provisions | 690,000 | - | - | - |
| 12,800,941 | 785,846 | 3,397,085 | - | |
| Total other provisions | 47,681,156 | 18,996,609 | 34,232,692 | 13,381,922 |
Changes in the provisions for lawsuits and changes in other provisions
| The Petrol Group | Petrol d.d. | |||||
| Prov. for partial | Prov. for partial | |||||
| non-compl. in | non-compl. in | |||||
| the area of | the area of | |||||
| renewables in | Provisions for | Other | renewables in | Provisions for | Other | |
| (in EUR) | transport | lawsuits | provisions | transport | lawsuits | provisions |
| As at 1 January 2022 | 17,819,686 | 956,347 | 11,506,592 | 12,953,253 | 493,383 | 119,000 |
| Creation of provisions | - | 1,957,839 | 17,000 | - | 1,388,615 | 17,000 |
| Reversal | (4,823,424) | (319,900) | (11,387,592) | (4,083,703) | - | |
| Utilisation | - | (82,276) | - | - | (82,276) | - |
| Foreign exchange differences | (9,752) | (407) | - | - | - | - |
| As at 31 December 2022 | 12,986,510 | 2,511,603 | 136,000 | 8,869,550 | 1,799,722 | 136,000 |
| Creation of provisions | 20,199,481 | 382,219 | 17,000 | 17,853,975 | 243,063 | 17,000 |
| Reversal | - | (56,087) | - | - | - | - |
| Utilisation | (3,149,910) | (583,856) | - | - | (519,802) | - |
| Foreign exchange differences | 1,080 | 76 | - | - | - | - |
| As at 31 December 2023 | 30,037,161 | 2,253,955 | 153,000 | 26,723,525 | 1,522,983 | 153,000 |
Provisions for partial non-compliance in the area of renewables in transport
Considering its position, technical limitations and the legislative framework, the Group took a
number of measures to step up compliance and will continue to strive for the best possible
solutions for the environment, customers and its owners.
The provisions were estimated by considering all the relevant circumstances regarding
conformity with the required standards and legal aspects, and represent the management’s
best estimate of how likely the outflow of economic benefits from the Group/Company is.
Because the legislation is recent, it is not possible to foresee the timeframe for the settlement
of liabilities, which is why the provisions have not been discounted.
Provisions for lawsuits
In 2023, the Company and its subsidiaries were involved in civil, commercial, labour and
administrative litigation. In order to protect the legal and financial position of the
Group/Company, the Group/Company is not in a position to disclose the details of individual
matters and their status. The amount of the provisions for lawsuits is determined based on the
amount of a claim or estimated based on the expected possible amount if the actual amount
is not yet known. Provisions are made in cooperation with qualified law firms, in accordance
with applicable accounting standards, and reflect the amount in controversy and the estimated
success of pending litigation.
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The Group’s management estimates that there is a possibility that some of these lawsuits will
be lost. That is why the Group set aside long-term provisions for lawsuits and interest on
overdue amounts arising from the claims. The provisions for lawsuits totalled EUR 1,990,038
as at 31 December 2022 (EUR 2,295,570 as at 31 December 2022) while the provisions for
interest on overdue amounts arising from the claims stood at EUR 263,917 (EUR 216,033 as
at 31 December 2022).
The Company’s long-term provisions for lawsuits totalled EUR 1,305,798 as at 31 December
2023 (EUR 1,583,688 as at 31 December 2022), with the provisions for interest on overdue
amounts arising from the claims amounting to EUR 217,186 (EUR 216,033 as at 31 December
2022). The provisions were created based on the lawyers’ assessment of the matter.
Provisions for onerous contracts
As at 31 December 2023, the Group/Company has concluded contracts with customers for the
supply of electricity for 2024 and beyond. As part of the sold quantities of the Group/Company
for 2024 are purchased at prices higher than the current market purchase prices for each
customer profile and also higher than the contractual prices in the sales contracts, the costs of
fulfilling contractual commitments will exceed the expected economic benefits from the
contracts.
Accordingly, the Group has a newly established short-term provision for onerous electricity
supply contracts of EUR 6,150,085 (the Company of EUR 3,397,085). The amount was
determined based on the estimated economic benefits and the costs arising from contracts for
the supply of electricity. The projected market prices of electricity for 2024 were used in the
calculations. The Group’s provision for this in 2022 stood at EUR 785,846. The Group also has
a newly established provision for onerous natural gas supply contracts amounting to EUR
5,687,793. The calculation methodology is similar to that for electricity, with the estimated
economic benefits of sales not exceeding the costs of supplying natural gas. The Group had
no such provisions in the previous year.
Provisions for employee post-employment and other long-term benefits
Other provisions also include provisions for employee post-employment and other long-term
benefits relating to employees at third-party operated service stations of the Petrol Group. The
provisions amount to the estimated future payments for post-employment benefits on
retirement and jubilee benefits discounted to the end of the reporting period. The calculation is
performed separately for each employee by taking into account the costs of the post-
employment benefits on retirement and the costs of all the expected jubilee benefits until
retirement.
Changes in the provisions for employee post-employment and other long-term benefits
at third-party operated service stations
| Petrol d.d. | |||
| Post-employment | Jubilee | ||
| (in EUR) | benefits | benefits | Total |
| As at 1 January 2022 | 2,241,694 | 1,799,160 | 4,040,854 |
| Current service cost | 127,960 | (533,352) | (405,392) |
| Post-employment benefits paid | (51,087) | (103,895) | (154,982) |
| Actuarial surplus/deficit | (903,830) | - | (903,830) |
| As at 31 December 2022 | 1,414,737 | 1,161,913 | 2,576,650 |
| Current service cost | (63,519) | (104,878) | (168,397) |
| Post-employment benefits paid | 160,928 | 184,778 | 345,706 |
| Actuarial surplus/deficit | (143,898) | (173,962) | (317,860) |
| As at 31 December 2023 | 1,368,248 | 1,067,851 | 2,436,099 |
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The calculation of the provisions for employee post-employment and other long-term benefits
is based on the actuarial calculation, which relied on the following assumptions:
− a 3.48-percent annual discount rate (2022: 3.02-percent), which is based on the yield of a
10-year AA-rated euro corporate bond,
− the currently applicable amount of post-employment and jubilee benefits specified in the
internal acts;
− staff turnover, primarily depending on their age;
− mortality is based on the most recent mortality tables for the local population.
It is assumed that the average salaries will increase by 2 percentage points and, in addition,
that individual salaries will increase by 0.5 percentage point.
Sensitivity analysis
| Discount rate | Salary increase | Staff turnover | ||||
| Change in | Percentage point | Percentage point | Percentage point | |||
| Change by | 1.0 | -1.0 | 1.0 | -1.0 | 1.0 | -1.0 |
| Effect on the balance of provisions for | ||||||
| employee post-employment and other | ||||||
| long-term benefits (in EUR) | (209,130) | 244,883 | 246,120 | (213,875) | (223,055) | 258,440 |
5.35 Deferred income
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Long-term deferred income | ||||
| Income from grants | 27,929,212 | 29,273,409 | 26,473,236 | 27,700,709 |
| Funds received from European projects | 8,235,202 | 7,013,570 | 2,233,123 | 1,192,619 |
| Other deferred income | 3,641,543 | 3,644,290 | 814,743 | 687,768 |
| 39,805,957 | 39,931,269 | 29,521,102 | 29,581,096 | |
| Short-term deferred income | ||||
| Income from grants | 2,876,736 | 2,899,809 | 2,837,142 | 2,855,782 |
| Funds received from European projects | 385,660 | 1,218,112 | 385,660 | 1,218,112 |
| Other deferred income | 2,356,170 | 652,322 | 2,238,410 | 569,312 |
| 5,618,566 | 4,770,243 | 5,461,212 | 4,643,206 | |
| Total deferred income | 45,424,523 | 44,701,512 | 34,982,314 | 34,224,302 |
The Petrol Group
Changes in deferred income
| Funds received | Other | |||
| Income from | from European | deferred | ||
| (in EUR) | grants | projects | income | Total |
| As at 1 January 2022 | 27,598,505 | 3,001,727 | 3,847,212 | 34,447,444 |
| Increase | 5,915,240 | 7,955,227 | 654,232 | 14,524,699 |
| Decrease | (4,241,934) | (3,941,574) | (850,156) | (9,033,664) |
| Foreign exchange differences | 1,598 | (1,810) | (6,998) | (7,210) |
| As at 31 December 2022 | 29,273,409 | 7,013,570 | 3,644,290 | 39,931,269 |
| Increase | 3,661,076 | 2,067,590 | 502,758 | 6,231,424 |
| Decrease | (5,005,281) | (846,193) | (506,184) | (6,357,658) |
| Foreign exchange differences | 8 | 235 | 679 | 922 |
| As at 31 December 2023 | 27,929,212 | 8,235,202 | 3,641,543 | 39,805,957 |
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Deferred income refers to funds received based on European projects and cohesion funding
in the area of energy solutions.
Petrol d.d., Ljubljana
Changes in deferred income
| Funds received | Other | |||
| Income from | from European | deferred | ||
| (in EUR) | grants | projects | income | Total |
| As at 1 January 2022 | 26,492,535 | 2,098,170 | 868,366 | 29,459,071 |
| Increase | 5,318,197 | 2,045,004 | 172,244 | 7,535,445 |
| Decrease | (4,110,023) | (2,950,555) | (352,842) | (7,413,420) |
| As at 31 December 2022 | 27,700,709 | 1,192,619 | 687,768 | 29,581,096 |
| Increase | 3,661,076 | 1,743,153 | 450,885 | 5,855,114 |
| Decrease | (4,888,549) | (702,649) | (323,910) | (5,915,108) |
| As at 31 December 2023 | 26,473,236 | 2,233,123 | 814,743 | 29,521,102 |
5.36 Borrowings and other financial liabilities
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Current borrowings and other fin. liabilities | ||||
| Bank loans | 70,011,290 | 85,954,276 | 33,610,872 | 59,493,518 |
| Bonds issued | 33,252,298 | 300,831 | 33,252,298 | 300,831 |
| Liab. to banks arising from currency forward contracts | 10,422,565 | 8,837,601 | 1,348,035 | 745,579 |
| Liabilities to banks arising from interest rate swaps | 489,076 | - | 489,076 | - |
| Other loans and financial liabilities | 428,281 | 1,563,725 | 155,187,964 | 165,271,773 |
| 114,603,510 | 96,656,433 | 223,888,245 | 225,811,701 | |
| Non-current borrowings and other fin. liabilities | ||||
| Bank loans | 335,661,995 | 357,416,530 | 268,685,376 | 300,538,159 |
| Bonds issued | 10,996,457 | 43,816,929 | 10,996,457 | 43,816,929 |
| Loans obtained from other companies | 378,957 | 379,543 | 21,000,000 | 21,000,000 |
| 347,037,409 | 401,613,002 | 300,681,833 | 365,355,088 | |
| Total borrowings and other fin. liabilities | 461,640,919 | 498,269,435 | 524,570,078 | 591,166,789 |
The Petrol Group
In 2023, the average interest rate on short-term and long-term sources of finance (including
interest rate hedging) stood at 2.24 percent p.a. (2022: 1.91 percent p.a.).
The lending banks require that the financial covenants defined in the loan agreements are
maintained at the Petrol Group level. Failure to meet the prescribed covenant values may result
in the early loan maturity. The Group is in compliance with all financial covenants at the end of
year, which demonstrates a healthy liquidity position and confirms the banks’ confidence in the
Group’s continued operations.
Derivative financial instruments
Liabilities arising from currency forward contracts for the purchase of US dollars, which stood
at EUR 10,422,565 represent the fair values of outstanding currency forward contracts as at
31 December 2023 (2022: EUR 8,837,601). The above financial liabilities arising from
derivative financial instruments should be considered in conjunction with outstanding contracts
disclosed under financial assets at fair value through profit or loss in Note 5.29.
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Among the currency forward liabilities, a part of the liability in the amount of EUR 9,074,530 is
earmarked for hedging and the effect of these currency forward contracts is recognised in other
comprehensive income and shown in the hedging reserve within equity.
Bonds issued
Bond liabilities refer to the bonds issued by Petrol d.d., Ljubljana and listed on the Ljubljana
Stock Exchange as PET4 and PET5 bonds.
On 22 February 2017, Petrol d.d., Ljubljana issued PET4 bonds at the total nominal amount of
EUR 11,000,000 and an interest rate of 1.5 percent + 6 M EURIBOR p.a. The bond maturity
date is 22 February 2027.
On 21 June 2017, Petrol d.d., Ljubljana issued PET5 bonds at the total nominal amount of
EUR 32,828,000. The interest rate is 1.2 percent p.a. The bond maturity date is 21 June 2024.
Petrol d.d., Ljubljana
In 2023, the average interest rate on short-term and long-term sources of finance (including
interest rate hedging) stood at 2.30 percent p.a. (2022: 1.69 percent p.a.). The average interest
rate calculation does not include interest rates on loans received by group companies.
The Company’s liabilities arising from derivative financial instruments and bonds are explained
in more detail in the note pertaining to the Group.
Other loans obtained by the Company relate mainly to loans from subsidiaries amounting to
EUR 164,145,435 (2022: EUR 177,154,655), as shown in the table below.
| Petrol d.d. | ||
| (in EUR) | 31 December 2023 | 31 December 2022 |
| Petrol d.o.o. | 84,133,907 | 96,031,378 |
| Geoplin d.o.o. Ljubljana | 37,300,000 | 38,500,000 |
| IGES d.o.o. | 15,820,616 | 15,803,898 |
| Petrol BH Oil Company d.o.o. Sarajevo | 11,700,000 | 11,700,000 |
| Petrol Trade Handelsgesellschaft m.b.H. | 10,709,177 | 10,193,496 |
| Petrol Geo d.o.o. | 3,665,544 | 2,866,518 |
| MBills d.o.o. | 400,000 | 1,650,000 |
| Geoenergo d.o.o. | 300,000 | 300,000 |
| Petrol Skladiščenje d.o.o. | 116,191 | 109,365 |
| Total | 164,145,435 | 177,154,655 |
Changes in borrowings and other financial liabilities
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| As at 1 January | 498,269,435 | 499,655,101 | 591,166,789 | 676,925,182 |
| Proceeds from borrowings | 1,552,485,681 | 1,884,402,641 | 2,777,680,740 | 2,577,234,111 |
| Repayment of borrowings | (1,592,468,739) | (1,891,704,933) | (2,849,458,380) | (2,662,608,090) |
| Change in fair value of financial instruments | 2,074,040 | 6,046,358 | 1,091,532 | (2,046,881) |
| Interest expense | 22,326,600 | 9,869,568 | 22,587,337 | 10,015,746 |
| Interest paid | (21,066,732) | (9,853,535) | (18,497,940) | (8,353,279) |
| Foreign exchange differences | 20,634 | (145,765) | - | - |
| As at 31 December | 461,640,919 | 498,269,435 | 524,570,078 | 591,166,789 |
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5.37 Lease liabilities
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Non-current lease liabilities | 99,759,274 | 101,100,126 | 27,578,972 | 27,331,350 |
| Current lease liabilities | 21,054,721 | 17,498,969 | 4,318,028 | 3,965,318 |
| Total lease liabilities | 120,813,995 | 118,599,095 | 31,897,000 | 31,296,668 |
The Group’s lease liabilities include liabilities arising from contracts for the leased assets, the
value of which was determined in accordance with the IFRS 16.
Changes in lease liabilities
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| As at 1 January | 118,599,095 | 106,759,763 | 31,296,668 | 29,453,129 |
| Increase | 23,271,760 | 96,549,794 | 5,251,471 | 5,711,402 |
| Cancellation | (621,682) | (67,938,761) | - | - |
| Lease payments | (20,484,188) | (16,611,194) | (4,651,139) | (3,867,863) |
| Interest expense | 4,114,463 | 4,557,812 | 1,345,775 | 1,315,973 |
| Interest paid | (4,114,463) | (4,557,812) | (1,345,775) | (1,315,973) |
| Foreign exchange differences | 49,010 | (160,507) | - | - |
| As at 31 December | 120,813,995 | 118,599,095 | 31,897,000 | 31,296,668 |
The cancellation of the lease contracts was mainly due to the upstream merger of Crodux
derivati dva d.o.o. by Petrol d.o.o. Croatia.
5.38 Non-current operating liabilities
All non-current operating liabilities include the liabilities of Petrol d.d., Ljubljana.
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Liabilities arising from interests acquired | 24,000 | 2,024,000 | 24,000 | 2,024,000 |
| Liabilities arising from assets received for administration | 506,968 | 572,382 | 506,968 | 572,382 |
| Total non-current operating liabilities | 530,968 | 2,596,382 | 530,968 | 2,596,382 |
The Petrol Group and Petrol d.d., Ljubljana
The Group’s/Company’s liabilities arising from assets received for administration relate largely
to property, plant and equipment received for administration from municipalities under
concession agreements. Liabilities are reduced in line with the depreciation of the assets
received for administration.
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5.39 Current operating liabilities
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Current financial liabilities | ||||
| Trade liabilities | 732,510,278 | 829,990,796 | 583,652,292 | 598,342,065 |
| Liabilities arising from interests acquired | 2,450,000 | 3,947,693 | 2,450,000 | 3,450,000 |
| Liabilities associated with the allocation of profit or loss | 768,880 | 768,880 | 768,880 | 768,880 |
| Other liabilities | 1,632,158 | 3,507,389 | 1,665,900 | 3,463,423 |
| 737,361,316 | 838,214,758 | 588,537,072 | 606,024,368 | |
| Current non-financial liabilities | ||||
| Excise duty liabilities | 68,474,917 | 116,169,181 | 51,712,805 | 101,934,781 |
| Value added tax liabilities | 50,480,396 | 103,251,423 | 19,609,923 | 73,163,760 |
| Other liabilities to the state and other state institutions | 12,898,659 | 4,815,981 | 7,925,634 | 1,720,853 |
| Liabilities to employees | 11,690,842 | 10,274,352 | 7,532,216 | 6,529,867 |
| Liabilities for environmental charges and contributions | 10,970,072 | 4,486,633 | 8,435,837 | 1,886,975 |
| Social security contribution liabilities | 2,062,835 | 1,945,001 | 1,113,862 | 952,677 |
| Import duty liabilities | 1,680,803 | 2,946,580 | - | - |
| 158,258,524 | 243,889,151 | 96,330,277 | 186,188,913 | |
| Total current operating and other liabilities | 895,619,840 | 1,082,103,909 | 684,867,349 | 792,213,281 |
In 2023, the liabilities associated with the allocation of profit or loss increased based on the
General Meeting resolution on the payment of dividends of EUR 61,667,340 (2022: EUR
61,667,340) and decreased based on the payment of the 2022 dividends of EUR 61,667,340
(2022: EUR 61,667,340) to shareholders and the payment of dividends from previous years
totalling EUR 0 (2022: EUR 6,932).
Among the trade liabilities is a liability to Gazprom measured at fair value of EUR 3,550
thousand.
The liabilities for shares in companies purchased are mainly liabilities for the payment of the
purchase price of Crodux Derivati Dva d.o.o. amounting to EUR 2,000,000.
5.40 Commodity derivative instruments
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Fair value through profit or loss | 786,130 | 16,956,682 | 233,737 | 15,519,612 |
| Fair value of derivatives used for hedging | 11,036,203 | 12,915,774 | - | 487,990 |
| Total commodity derivative instruments | 11,822,333 | 29,872,456 | 233,737 | 16,007,602 |
A part of the commodity derivative instruments in the amount of EUR 11,036,203 is designated
as hedging and the effect from these commodity derivatives is recognised in other
comprehensive income and shown in the hedging reserve within equity.
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5.41 Contract liabilities
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Short-term prepayments and securities given | 21,360,140 | 20,018,795 | 14,668,007 | 16,295,826 |
| Deferred prepaid card revenue | 3,338,151 | 3,016,958 | 2,309,293 | 2,071,191 |
| Deferred revenue from rebates and discounts granted | 568,122 | 86,523 | - | - |
| Other | 24,163 | 31,299 | - | - |
| Total contract liabilities | 25,290,576 | 23,153,575 | 16,977,300 | 18,367,017 |
Revenue related to prepayments and securities received from customers is expected to be
recognised in the financial statements within two months of the received prepayment or
security.
5.42 Other liabilities
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Accrued labour costs | 14,772,434 | 4,384,421 | 14,266,708 | 3,883,773 |
| Accrued costs of materials and goods | 6,799,106 | 3,119,094 | 2,215,060 | 648,811 |
| Accrued other costs | 5,517,159 | 4,505,825 | 2,725,837 | 1,988,259 |
| Accrued costs of services | 5,452,832 | 3,434,650 | 3,650,557 | 1,802,423 |
| Liabilities for network charges | 5,004,682 | 1,228,013 | 4,131,661 | 846,337 |
| Accrued annual leave expenses | 3,845,052 | 3,964,599 | 2,452,130 | 2,279,179 |
| Accrued costs of electricity and gas | 3,573,475 | 2,682,375 | 6,687,455 | 13,468,189 |
| Accrued costs of services provided to energy solutions | 2,034,953 | 2,728,252 | - | - |
| Accrued expenses for tanker demurrage | 1,446,767 | 968,947 | 1,349,135 | 968,947 |
| Accrued costs of intellectual services | 352,785 | 515,916 | 182,548 | 301,793 |
| Accrued concession fee costs | 318,841 | 360,333 | 318,841 | 356,736 |
| Accrued motorway site lease payments | 153,030 | 531,993 | 153,030 | 531,993 |
| Accrued charges for payment cards | 4,607 | 474,296 | - | 472,236 |
| Accrued contractual penalties | - | 3,664,115 | - | 2,933,191 |
| Total other liabilities | 49,275,723 | 32,562,829 | 38,132,962 | 30,481,867 |
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6. Financial instruments and risk management
This chapter presents disclosures about financial instruments and risks. Risk management is
explained in the risk management section of the business report.
For 2023, we also highlight environmental and climate risks, as the Petrol Group is facing a
new challenge of integrating and segmenting the risks associated with a comprehensive ESG
approach.
In 2023, we included these risks as Level III in the Risk categories within the Petrol Group
table. In addition, we obtained an ESG rating, which is better than that of some comparable
companies in Europe.
6.1 Credit risk
In 2023, the Group/Company continued to actively monitor the balances of trade receivables
and to apply strict terms based on which open account sales are approved, requiring an
adequate range of high-quality collaterals and pursuing the active collection of receivables.
The Expected Credit Loss (ECL) is calculated as the product of:
− Unsecured receivables from the partner, for the calculation of which credit insurance, bank
guarantees, high-quality guarantees, mortgages and any Earnings at Default (EAD)
liabilities to the partner are taken into account as eligible collateral,
− Probabilities of default by the partner based on an internally developed model that takes
into account the Group’s business data with the partner and the partner’s financial data (5
selected financial indicators with statistically strong explanatory power), the external credit
rating of the country in which the partner is domiciled and the estimated cyclicality of the
industry in which the company operates (Probability of Default – PD).
The Group and the Company use a simplified lifetime expected credit loss model to value
receivables in accordance with the IFRS 9.
The carrying amount of financial assets has the maximum exposure to credit risks and was as
follows on 31 December 2023:
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 |
| Financial assets at fair value through other | ||||
| comprehensive income | 26,580,631 | 42,146,412 | 22,256,920 | 35,494,605 |
| Non-current loans | 2,362,489 | 949,277 | 29,071,795 | 59,134,780 |
| Non-current operating receivables | 8,468,242 | 7,015,756 | 8,451,918 | 7,007,540 |
| Contract assets | 6,052,405 | 13,319,362 | 211,844 | 11,722,300 |
| Current loans | 775,307 | 1,679,138 | 38,641,992 | 41,343,762 |
| Current operating receivables (excluding rec. | ||||
| from the state) | 794,205,090 | 840,186,387 | 539,650,188 | 566,790,889 |
| Financial assets at fair value through profit or | ||||
| loss | 3,960,075 | 2,646,334 | 3,882,986 | 2,525,437 |
| Cash and cash equivalents | 105,937,006 | 100,962,531 | 33,020,462 | 51,203,361 |
| Total assets | 948,341,245 | 1,008,905,197 | 675,188,105 | 775,222,674 |
The item most exposed to credit risk on the reporting date was the current operating
receivables. As at 31 December 2023, compared to the end of 2022, they decreased by 5.65
percent in the Group and 4.79 percent in the Company in nominal terms.
Financial assets at fair value through profit or loss mainly consist of derivative financial
instruments.
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The Group’s current operating receivables by maturity
| Breakdown by maturity | ||||||
| Up to | Including 30 | Including 60 | More than | |||
| 30 days | to 60 days | to 90 days | 90 days | |||
| (in EUR) | Not yet due | overdue | overdue | overdue | overdue | Total |
| Trade receivables | 738,315,493 | 71,183,742 | 9,407,479 | 3,515,484 | 2,202,719 | 824,624,917 |
| Interest receivables | 6,188 | 1,933 | 33,538 | 16,781 | 64,621 | 123,061 |
| Other receivables (excluding | ||||||
| receivables from the state) | 14,610,337 | 787,652 | 188 | 758 | 39,474 | 15,438,409 |
| Total as at 31 December 2022 | 752,932,018 | 71,973,327 | 9,441,205 | 3,533,023 | 2,306,814 | 840,186,387 |
| Breakdown by maturity | ||||||
| Including 30 | Including 60 | More than | ||||
| Up to 30 days | to 60 days | to 90 days | 90 days | |||
| (in EUR) | Not yet due | overdue | overdue | overdue | overdue | Total |
| Trade receivables | ||||||
| Expected loss rate | 2% | 2% | 2% | 88% | 73% | |
| Gross value | 693,753,105 | 58,506,817 | 14,129,197 | 3,830,103 | 54,639,547 | 824,858,769 |
| Allowance | (11,481,030) | (1,083,595) | (245,025) | (3,379,091) | (39,955,545) | (56,144,286) |
| 682,272,075 | 57,423,222 | 13,884,172 | 451,012 | 14,684,002 | 768,714,483 | |
| Operating interest receivables | ||||||
| Expected loss rate | 95% | - | - | - | 97% | |
| Gross value | 958,124 | - | - | - | 912,480 | 1,870,604 |
| Allowance | (912,256) | - | - | - | (886,086) | (1,798,342) |
| 45,868 | - | - | - | 26,394 | 72,262 | |
| Other receivables (excluding | ||||||
| receivables from the state) | ||||||
| Expected loss rate | 6% | 6% | 6% | 90% | 49% | |
| Gross value | 23,463,661 | 2,975,880 | 1,543 | 193 | 992,710 | 27,433,987 |
| Allowance | (1,346,361) | (183,324) | (98) | (174) | (485,685) | (2,015,642) |
| 22,117,300 | 2,792,556 | 1,445 | 19 | 507,025 | 25,418,345 | |
| Total as at 31 December 2023 | 704,435,243 | 60,215,778 | 13,885,617 | 451,031 | 15,217,421 | 794,205,090 |
The Company’s current operating receivables by maturity
| Breakdown by maturity | ||||||
| Up to | Including 30 | Including 60 | More than | |||
| 30 days | to 60 days | to 90 days | 90 days | |||
| (in EUR) | Not yet due | overdue | overdue | overdue | overdue | Total |
| Trade receivables | 513,737,535 | 27,798,258 | 4,482,811 | 1,589,324 | 7,659,003 | 555,266,931 |
| Interest receivables | - | - | - | - | 1,388,192 | 1,388,192 |
| Other receivables (excluding | ||||||
| receivables from the state) | 9,531,621 | 563,655 | 188 | 758 | 39,544 | 10,135,766 |
| Total as at 31 December 2022 | 523,269,156 | 28,361,913 | 4,482,999 | 1,590,082 | 9,086,739 | 566,790,889 |
| Breakdown by maturity | ||||||
| Including 30 | Including 60 | More than | ||||
| Up to 30 days | to 60 days | to 90 days | 90 days | |||
| (in EUR) | Not yet due | overdue | overdue | overdue | overdue | Total |
| Trade receivables | ||||||
| Expected loss rate | 2% | 2% | 2% | 74% | 50% | |
| Gross value | 482,971,082 | 24,571,334 | 6,898,363 | 2,622,012 | 39,353,319 | 556,416,110 |
| Allowance | (7,782,047) | (451,861) | (133,885) | (1,947,712) | (19,698,735) | (30,014,240) |
| 475,189,035 | 24,119,473 | 6,764,478 | 674,300 | 19,654,584 | 526,401,870 | |
| Interest receivables | ||||||
| Expected loss rate | 99% | - | - | - | 31% | |
| Gross value | 765,434 | - | - | - | 1,998,387 | 2,763,821 |
| Allowance | (758,556) | - | - | - | (609,630) | (1,368,186) |
| 6,878 | - | - | - | 1,388,757 | 1,395,635 | |
| Other receivables (excluding | ||||||
| receivables from the state) | ||||||
| Expected loss rate | 5% | 5% | - | 85% | 31% | |
| Gross value | 11,857,173 | 125,437 | - | 129 | 630,721 | 12,613,460 |
| Allowance | (556,943) | (5,925) | - | (110) | (197,799) | (760,777) |
| 11,300,230 | 119,512 | - | 19 | 432,922 | 11,852,683 | |
| Total as at 31 December 2023 | 486,496,143 | 24,238,985 | 6,764,478 | 674,319 | 21,476,263 | 539,650,188 |
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Changes in allowances for the current operating receivables of the Group
| Allowance for | Allowance for | ||
| current operating | current interest | ||
| (in EUR) | receivables | receivables | Total |
| As at 1 January 2022 | (59,089,851) | (1,192,941) | (60,282,792) |
| Creation/reversal of allowances affecting profit or loss | (7,598,209) | (99,466) | (7,697,675) |
| Changes in allowances not affecting profit or loss | 249,964 | (290,411) | (40,447) |
| Write-offs | 5,462,098 | 343,417 | 5,805,515 |
| Foreign exchange differences | 20,241 | (9) | 20,232 |
| As at 31 December 2022 | (60,955,757) | (1,239,410) | (62,195,167) |
| Allowance for | Allowance for | ||
| current operating | current interest | ||
| (in EUR) | receivables | receivables | Total |
| As at 1 January 2023 | (60,955,757) | (1,239,410) | (62,195,167) |
| Creation/reversal of allowances affecting profit or loss | 1,031,395 | 17,367 | 1,048,762 |
| Changes in allowances not affecting profit or loss | 12,543 | (677,953) | (665,410) |
| Write-offs | 1,751,523 | 101,659 | 1,853,182 |
| Foreign exchange differences | 368 | (5) | 363 |
| As at 31 December 2023 | (58,159,928) | (1,798,342) | (59,958,270) |
Changes in allowances for the current operating receivables of the Company
| Allowance for | Allowance for | ||
| current operating | current interest | ||
| (in EUR) | receivables | receivables | Total |
| As at 1 January 2022 | (31,923,202) | (943,204) | (32,866,406) |
| Creation/reversal of allowances affecting profit or loss | (2,734,572) | - | (2,734,572) |
| Changes in allowances not affecting profit or loss | - | (193,123) | (193,123) |
| Write-offs | 3,599,101 | 292,450 | 3,891,551 |
| As at 31 December 2022 | (31,058,673) | (843,877) | (31,902,550) |
| Allowance for | Allowance for | ||
| current operating | current interest | ||
| (in EUR) | receivables | receivables | Total |
| As at 1 January 2023 | (31,058,673) | (843,877) | (31,902,550) |
| Creation/reversal of allowances affecting profit or loss | (654,678) | - | (654,678) |
| Changes in allowances not affecting profit or loss | - | (564,855) | (564,855) |
| Write-offs | 938,334 | 40,546 | 978,880 |
| As at 31 December 2023 | (30,775,017) | (1,368,186) | (32,143,203) |
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Collateralisation of receivables
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Current trade receivables | 824,858,769 | 883,095,961 | 556,416,110 | 585,600,764 |
| Allowances | (56,144,286) | (58,471,044) | (30,014,240) | (30,333,833) |
| Current trade receivables including allowances | 768,714,483 | 824,624,917 | 526,401,870 | 555,266,931 |
| Overdue current trade receivables (gross amount) | 143,245,822 | 130,909,575 | 73,445,029 | 62,527,269 |
| Share of overdue receivables in outstanding receivables | 17 % | 15 % | 13 % | 11 % |
| Current operating receivables over EUR 100,000 | ||||
| secured with high-quality collaterals: | ||||
| Credit insurance | 253,311,160 | 283,079,740 | 114,753,340 | 126,186,073 |
| Supplier (offsetting transaction) | 197,450,774 | 210,720,716 | 187,055,208 | 166,740,382 |
| Bank guarantee | 10,460,974 | 12,705,138 | 2,894,052 | 3,162,336 |
| Lien | 9,312,497 | 10,151,491 | 4,951,855 | 5,666,766 |
| High-quality guarantee | 6,968,149 | 8,726,199 | 6,568,149 | 7,923,843 |
| Received prepayments and collaterals | 5,590,201 | 9,353,964 | 5,064,499 | 9,181,402 |
| Total current operating receivables over EUR | ||||
| 100,000 secured with high-quality collaterals | 483,093,755 | 534,737,248 | 321,287,103 | 318,860,802 |
| Collateral coverage (v %) | 87 % | 79 % | 87 % | 84 % |
The presented collaterals include only high-quality collaterals, such as bank or corporate
guarantees, offsetting transactions (suppliers), credit insurance with insurance companies and
mortgages. Bills of exchange, enforcement drafts and promissory notes are excluded because
they have a lower level of collectability.
The receivable from the Group’s largest single customer stood at EUR 105,575,883 as at 31
December 2023 (the customer is a company), accounting for 12.82 percent of the Group’s
trade receivables. The receivable from the Company’s largest single customer stood at EUR
105,575,883 as at 31 December 2023 (the customer is a company), accounting for 18.97
percent of the Company’s trade receivables.
The receivables mainly relate to receivables from domestic and foreign customers arising from
the wholesale of goods and services and the sale of goods to holders (natural persons) of the
Petrol Club card.
The structure of wholesale and retail customers is diversified, meaning there is no significant
exposure to a single customer. The Group had 41,670 active customers (legal persons) as at
31 December 2023. The Group/Company has an IT-based system of grades, ratings and
blocks in place, enabling it to constantly monitor its customers.
The Group/Company improves the system for the monitoring of credit risks on a steady basis.
In 2023, the system of limits adopted at the Petrol Group level was applied consistently. The
Group/Company measures the degree of receivables management in days’ sales outstanding.
| The Petrol Group | Petrol d.d. | |||
| (in days) | 2023 | 2022 | 2023 | 2022 |
| Days sales outstanding | ||||
| Contract days | 40 | 27 | 36 | 23 |
| Overdue receivables in days | 5 | 3 | 3 | 2 |
| Total days sales outstanding | 45 | 30 | 39 | 25 |
Commodity loans granted to buyers in order to reschedule the settlement of receivables are
largely secured (usually through mortgages).
The loans granted by the Company refer mainly to the loans to subsidiaries. The Company
regularly assesses the possibility of the loans’ repayment, the possibility of realising the
collateral or whether the value of the collateral is still adequate compared to the value of the
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investment. If the Company considers that a loan is not fully collectable, an allowance is made
for the uncollectable amount. The Company systematically monitors the operations of Group
companies, thus adequately limiting credit risk. The Group/Company did not create any
allowance for loans in 2023 and 2022 as the estimated expected credit losses are immaterial.
The majority of the Petrol Group’s cash and cash equivalents are held in bank accounts with
banks that are part of banking groups with a high external rating (“investment grade”) by
Standard & Poor’s, Moody’s and Fitch. The credit risk from these exposures is consequently
assessed as very low, with only 0.5 percent of cash and cash equivalents at unrated banks.
6.2 Liquidity risk
In 2023, the Petrol Group continued to pay close attention to developments in the EU and
globally. In view of the ongoing war in Ukraine and additional tensions in the Middle East, the
Petrol Group continues to be intensively active and to pay greater attention and caution to
liquidity risk management, especially in connection with the potential increased volatility in the
energy market.
Successful management of the Group’s/Company’s liquidity risk in line with Standard & Poor’s
guidelines remains a key objective despite the challenging circumstances.
The Group/Company manages liquidity risks through:
- maintaining the level of debt at an appropriate level (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 the Group level;
- the annual planning of funds required by the Petrol Group;
- the daily planning and simulating of cash flows for the parent company and its
subsidiaries performed by day and for two or three months in advance, which is
currently an extremely important tool;
- a common approach to banks in domestic and foreign financial markets,
- computer-assisted system for managing the cash flows of the parent company and all
its subsidiaries;
- the centralised collection of available cash through cash pooling.
Despite some easing of the energy commodity price situation in 2023, the Group’s focus on
optimising cash flows and ensuring a stable liquidity position remains high. To this end, a new
long-term green financing facility was also obtained at the end of 2023, which further
strengthened the Group’s liquidity position.
In addition, the Group/Company has credit lines at its disposal both in Slovenia and abroad,
the size of which enables the Group to meet all its due liabilities at any given moment.
The majority of financial liabilities arising from long-term and short-term loans are held by the
parent company, which also generates the majority of the revenue.
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The Group’s liabilities by maturity
| Contractual cash flows | ||||||
| Carrying | ||||||
| amount of | More than 5 | |||||
| (in EUR) | liabilities | Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | years |
| Non-current borrowings and other | ||||||
| financial liabilities | 401,613,002 | 433,536,129 | - | - | 372,631,738 | 60,904,391 |
| Non-current lease liabilities | 101,100,126 | 109,074,515 | - | - | 85,655,698 | 23,418,817 |
| Non-current operating liabilities | ||||||
| (excluding other liabilities) | 2,024,000 | 2,024,000 | - | - | 2,024,000 | - |
| Current borrowings and other finacial | ||||||
| liabilities | 96,656,433 | 110,096,768 | 61,187,352 | 48,909,416 | - | - |
| Current lease liabilities | 17,498,969 | 21,007,713 | 11,041,027 | 9,966,686 | - | - |
| Liabilities arising from commodity | ||||||
| forward contracts* | - | 1,636,926,610 | 756,687,613 | 622,733,589 | 257,505,408 | - |
| Current operating liabilities (excluding | ||||||
| liabilities to the state, employees and | ||||||
| arising from advance payments) | 838,214,758 | 838,214,758 | 837,450,259 | 764,499 | - | - |
| Commodity derivative instruments | 29,872,456 | 29,872,456 | 29,872,456 | - | - | - |
| As at 31 December 2022 | 1,486,979,744 | 3,180,752,949 | 1,696,238,707 | 682,374,190 | 717,816,844 | 84,323,208 |
The current financial liabilities include derivative financial instruments totalling EUR 8,837,601.
| Contractual cash flows | ||||||
| Carrying | ||||||
| amount of | More than 5 | |||||
| (in EUR) | liabilities | Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | years |
| Non-current borrowings and other | ||||||
| financial liabilities | 347,037,409 | 378,330,773 | - | - | 372,294,805 | 6,035,968 |
| Non-current lease liabilities | 99,759,274 | 120,378,836 | - | - | 73,543,153 | 46,835,683 |
| Non-current operating liabilities | ||||||
| (excluding other liabilities) | 24,000 | 24,000 | - | - | 24,000 | - |
| Current borrowings and other finacial | ||||||
| liabilities | 114,603,510 | 132,935,288 | 85,597,612 | 47,337,676 | - | - |
| Current lease liabilities | 21,054,721 | 23,616,157 | 12,244,724 | 11,371,433 | - | - |
| Liabilities arising from commodity | ||||||
| forward contracts* | - | 733,408,829 | 319,919,815 | 283,494,586 | 129,994,428 | - |
| Current operating liabilities (excluding | ||||||
| liabilities to the state, employees and | ||||||
| arising from advance payments) | 737,361,316 | 737,361,316 | 736,893,967 | 467,349 | - | - |
| Commodity derivative instruments | 11,822,333 | 11,822,333 | 11,822,333 | - | - | - |
| As at 31 December 2023 | 1,331,662,563 | 2,137,877,532 | 1,166,478,451 | 342,671,044 | 575,856,386 | 52,871,651 |
The current financial liabilities include derivative financial instruments totalling
EUR 10,911,641.
The Company’s liabilities by maturity
| Contractual cash flows | ||||||
| Carrying | ||||||
| amount of | More than 5 | |||||
| (in EUR) | liabilities | Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | years |
| Non-current borrowings and other | ||||||
| financial liabilities | 365,355,088 | 397,362,215 | - | - | 315,808,328 | 81,553,887 |
| Non-current lease liabilities | 27,331,350 | 36,394,573 | - | - | 16,335,004 | 20,059,569 |
| Non-current operating liabilities | ||||||
| (excluding other liabilities) | 2,024,000 | 2,024,000 | - | - | 2,024,000 | - |
| Current borrowings and other finacial | ||||||
| liabilities | 225,811,701 | 240,808,279 | 200,158,490 | 40,649,789 | - | - |
| Current lease liabilities | 3,965,318 | 5,162,635 | 2,691,072 | 2,471,563 | - | - |
| Liabilities arising from commodity | ||||||
| forward contracts* | - | 1,625,382,552 | 748,075,117 | 619,802,027 | 257,505,408 | - |
| Current operating liabilities (excluding | ||||||
| liabilities to the state, employees and | ||||||
| arising from advance payments) | 606,024,368 | 606,024,367 | 605,806,817 | 217,550 | - | - |
| Commodity derivative instruments | 16,007,602 | 16,007,602 | 16,007,602 | - | - | - |
| Contingent liab. for guarantees issued** | - | 368,063,707 | 368,063,707 | - | - | - |
| As at 31 December 2022 | 1,246,519,427 | 3,297,229,930 | 1,940,802,805 | 663,140,929 | 591,672,740 | 101,613,456 |
The current financial liabilities include derivative financial instruments totalling EUR 745,579.
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| Contractual cash flows | ||||||
| Carrying | ||||||
| amount of | More than 5 | |||||
| (in EUR) | liabilities | Liability | 0 to 6 months | 6 to 12 months | 1 to 5 years | years |
| Non-current borrowings and other | ||||||
| financial liabilities | 300,681,833 | 327,843,222 | - | - | 327,843,222 | - |
| Non-current lease liabilities | 27,578,972 | 36,578,527 | - | - | 17,035,833 | 19,542,694 |
| Non-current operating liabilities | ||||||
| (excluding other liabilities) | 24,000 | 24,000 | - | - | 24,000 | - |
| Current borrowings and other finacial | ||||||
| liabilities | 223,888,245 | 240,887,378 | 96,671,194 | 144,216,184 | - | - |
| Current lease liabilities | 4,318,028 | 5,619,397 | 3,129,952 | 2,489,445 | - | - |
| Liabilities arising from commodity | ||||||
| forward contracts* | - | 727,965,886 | 316,833,117 | 281,138,341 | 129,994,428 | - |
| Current operating liabilities (excluding | ||||||
| liabilities to the state, employees and | ||||||
| arising from advance payments) | 588,537,072 | 588,537,072 | 588,199,816 | 337,256 | - | - |
| Commodity derivative instruments | 233,737 | 233,737 | 233,737 | - | - | - |
| Contingent liab. for guarantees issued** | - | 542,532,723 | 542,532,723 | - | - | - |
| As at 31 December 2023 | 1,145,261,887 | 2,470,221,942 | 1,547,600,539 | 428,181,226 | 474,897,483 | 19,542,694 |
* Liabilities arising from commodity forward contracts entered into for purchasing purposes represent contractual
cash outflows based on these contracts. At the same time, the Group/Company will receive corresponding
payments based on offsetting commodity contracts entered into for selling purposes.
** A maximum amount of contingent liabilities is allocated to the period in which the Company can be requested to
make a payment.
The current financial liabilities include derivative financial instruments totalling EUR 1,837,112.
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6.3 Foreign exchange risk
The Group
| The Petrol Group | ||||||||
| 31 December 2022 | ||||||||
| (in EUR) | EUR | USD | HRK | BAM | RSD | RON | Other | Total |
| Cash and cash equivalents | 54,580,906 | 7,933,042 | 19,251,321 | 3,514,250 | 10,561,710 | 4,340,968 | 780,334 | 100,962,531 |
| Current operating receivables (excluding rec. from the state) | 664,758,580 | 3,185,317 | 101,803,591 | 38,109,671 | 31,832,732 | 442,479 | 54,017 | 840,186,387 |
| Non-current operating receivables | 7,013,743 | - | - | - | 2,013 | - | - | 7,015,756 |
| Current loans | 1,321,649 | - | 340,265 | 990 | - | - | 16,234 | 1,679,138 |
| Non-current loans | 52,798 | - | 894,523 | - | - | 1,956 | - | 949,277 |
| Non-current operating liabilities (excluding other liabilities) | (2,024,000) | - | - | - | - | - | - | (2,024,000) |
| Current operating liabilities (excluding liabilities to the state, | ||||||||
| employees and arising from advance payments) | (651,101,201) | (143,987,078) | (37,239,860) | (2,000,207) | (3,710,871) | - | (175,541) | (838,214,758) |
| Non-current borrowings and other financial liabilities | (351,703,263) | - | (49,909,739) | - | - | - | - | (401,613,002) |
| Non-current lease liabilities | (94,209,290) | - | - | (2,930,085) | (3,960,751) | - | - | (101,100,126) |
| Current borrowings and other financial liabilities | (96,375,479) | - | (280,954) | - | - | - | - | (96,656,433) |
| Current lease liabilities | (16,459,073) | - | - | (401,466) | (638,430) | - | - | (17,498,969) |
| Commodity derivative instruments | (15,398,684) | (14,473,772) | (29,872,456) | |||||
| Exposure of the statement of financial position | (499,543,314) | (147,342,491) | 34,859,147 | 36,293,153 | 34,086,403 | 4,785,403 | 675,044 | (536,186,655) |
| Nominal value of currency forward contracts | (450,436,390) | 440,579,195 | - | - | - | 9,857,195 | - | - |
| Net exposure of the statement of financial position | (949,979,704) | 293,236,704 | 34,859,147 | 36,293,153 | 34,086,403 | 14,642,598 | 675,044 | (536,186,655) |
| The Petrol Group | |||||||
| 31 December 2023 | |||||||
| (in EUR) | EUR | USD | BAM | RSD | RON | Other | Total |
| Cash and cash equivalents | 76,271,007 | 1,885,637 | 8,238,436 | 10,559,276 | 3,196,175 | 5,786,475 | 105,937,006 |
| Current operating receivables (excluding rec. from the state) | 725,035,613 | 1,127,708 | 35,609,602 | 31,136,326 | 442,479 | 853,362 | 794,205,090 |
| Non-current operating receivables | 8,466,231 | - | - | 2,011 | - | - | 8,468,242 |
| Current loans | 758,774 | - | 302 | - | - | 16,231 | 775,307 |
| Non-current loans | 2,360,267 | - | - | - | 2,222 | - | 2,362,489 |
| Non-current operating liabilities (excluding other liabilities) | (24,000) | - | - | - | - | - | (24,000) |
| Current operating liabilities (excluding liabilities to the state, | |||||||
| employees and arising from advance payments) | (548,516,230) | (181,173,131) | (2,706,561) | (1,421,777) | (883,997) | (2,659,620) | (737,361,316) |
| Non-current borrowings and other financial liabilities | (347,037,409) | - | - | - | - | - | (347,037,409) |
| Non-current lease liabilities | (92,875,420) | - | (3,406,747) | (3,477,107) | - | - | (99,759,274) |
| Current borrowings and other financial liabilities | (114,603,510) | - | - | - | - | - | (114,603,510) |
| Current lease liabilities | (19,899,890) | - | (485,534) | (669,297) | - | - | (21,054,721) |
| Commodity derivative instruments | - | (11,822,333) | (11,822,333) | ||||
| Exposure of the statement of financial position | (310,064,567) | (189,982,119) | 37,249,498 | 36,129,432 | 2,756,879 | 3,996,448 | (419,914,429) |
| Nominal value of currency forward contracts | (446,951,137) | 446,951,137 | - | - | - | - | - |
| Net exposure of the statement of financial position | (757,015,704) | 256,969,018 | 37,249,498 | 36,129,432 | 2,756,879 | 3,996,448 | (419,914,429) |
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The Company
| Petrol d.d. | ||||||||
| 31 December 2022 | ||||||||
| (in EUR) | EUR | USD | HRK | BAM | RSD | RON | Other | Total |
| Cash and cash equivalents | 38,154,909 | 7,914,181 | 106,873 | - | 29,396 | 4,300,827 | 697,175 | 51,203,361 |
| Current operating receivables (excluding rec. from the state) | 564,992,018 | 898,973 | 403,841 | - | - | 442,479 | 53,578 | 566,790,889 |
| Non-current operating receivables | 7,007,540 | - | - | - | - | - | - | 7,007,540 |
| Current loans | 41,042,883 | - | 300,879 | - | - | - | - | 41,343,762 |
| Non-current loans | 56,795,954 | - | 2,338,826 | - | - | - | - | 59,134,780 |
| Non-current operating liabilities (excluding other liabilities) | (2,024,000) | - | - | - | - | - | - | (2,024,000) |
| Current operating liabilities (excluding liabilities to the state, | ||||||||
| employees and arising from advance payments) | (461,963,051) | (143,881,855) | (5,961) | - | - | - | (173,500) | (606,024,367) |
| Non-current borrowings and other financial liabilities | (365,355,088) | - | - | - | - | - | - | (365,355,088) |
| Non-current lease liabilities | (27,331,350) | - | - | - | - | - | - | (27,331,350) |
| Current borrowings and other financial liabilities | (225,449,533) | - | (362,168) | - | - | - | - | (225,811,701) |
| Current lease liabilities | (3,965,318) | - | - | - | - | - | - | (3,965,318) |
| Commodity derivative instruments | (15,398,684) | (608,918) | (16,007,602) | |||||
| Exposure of the statement of financial position | (393,493,720) | (135,677,619) | 2,782,290 | - | 29,396 | 4,743,306 | 577,253 | (521,039,094) |
| Nominal value of currency forward contracts | (151,093,284) | 141,236,089 | - | - | - | 9,857,195 | - | - |
| Net exposure of the statement of financial position | (544,587,004) | 5,558,470 | 2,782,290 | - | 29,396 | 14,600,501 | 577,253 | (521,039,094) |
| Petrol d.d. | |||||||
| 31 December 2023 | |||||||
| (in EUR) | EUR | USD | BAM | RSD | RON | Other | Total |
| Cash and cash equivalents | 23,671,558 | 529,488 | 152 | 29,366 | 3,078,244 | 5,711,654 | 33,020,462 |
| Current operating receivables (excluding rec. from the state) | 538,876,149 | - | - | - | - | 774,039 | 539,650,188 |
| Non-current operating receivables | 8,451,918 | - | - | - | - | - | 8,451,918 |
| Current loans | 38,641,992 | - | - | - | - | - | 38,641,992 |
| Non-current loans | 29,071,795 | - | - | - | - | - | 29,071,795 |
| Non-current operating liabilities (excluding other liabilities) | (24,000) | - | - | - | - | - | (24,000) |
| Current operating liabilities (excluding liabilities to the state, | |||||||
| employees and arising from advance payments) | (254,284,242) | (149,016,175) | - | - | (943,761) | (184,292,894) | (588,537,072) |
| Non-current borrowings and other financial liabilities | (300,681,833) | - | - | - | - | - | (300,681,833) |
| Non-current lease liabilities | (27,578,972) | - | - | - | - | - | (27,578,972) |
| Current borrowings and other financial liabilities | (223,888,245) | - | - | - | - | - | (223,888,245) |
| Current lease liabilities | (4,318,028) | - | - | - | - | - | (4,318,028) |
| Commodity derivative instruments | - | (233,737) | (233,737) | ||||
| Exposure of the statement of financial position | (172,061,908) | (148,720,424) | 152 | 29,366 | 2,134,483 | (177,807,201) | (496,425,532) |
| Nominal value of currency forward contracts | (126,733,121) | 126,733,121 | - | - | - | - | - |
| Net exposure of the statement of financial position | (298,795,029) | (21,987,303) | 152 | 29,366 | 2,134,483 | (177,807,201) | (496,425,532) |
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The following exchange rates prevailed in 2023 and 2022:
| 31 December | 31 December | |
| Per 1 euro | 2023 | 2022 |
| USD | 1.1050 | 1.0666 |
| HRK | - | 7.5365 |
| BAM | 1.9558 | 1.9558 |
| RSD | 117.4100 | 117.2900 |
| CZK | 24.7240 | 24.1160 |
| RON | 4.9756 | 4.9495 |
| MKD | 61.6110 | 61.6000 |
| HUF | 382.8000 | 400.8700 |
| CHF | 0.9260 | 0.9847 |
| BGN | 1.9558 | 1.9558 |
As far as foreign exchange risks are concerned, the Group/Company is most exposed to the
risk of changes in the EUR/USD exchange rate arising from the procurement of petroleum
products and natural gas, as these are primarily purchased in US dollars and sold in the
domestic or foreign markets in the local currencies.
The Group hedges against the exposure to changes in the EUR/USD exchange rate by fixing
the exchange rate to secure cash flows from purchases of petroleum products and natural gas.
The hedging instruments used in this case are currency forward contracts entered into with
banks.
The effect of currency forward contracts
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Unrealised loss | (10,422,565) | (8,837,601) | (1,348,035) | (745,579) |
| Unrealised gain | - | 348,745 | - | 348,745 |
| Realised loss | (3,374,893) | (7,457,219) | (8,223,451) | (15,549,241) |
| Realised gain | 9,234,991 | 19,339,011 | 8,888,213 | 19,339,011 |
| Total effect of currency forward contracts | (4,562,467) | 3,392,936 | (683,273) | 3,392,936 |
The effect of currency forward contracts should be considered together with foreign exchange
differences arising on the purchase of petroleum products and natural gas. The total effect of
currency forward contracts and foreign exchange differences was as follows: expenses of
EUR 3,693,056 (2022: revenue of EUR 2,622,222) for the Group and revenue of
EUR 1,412,309 (2022: revenue of EUR 2,778,784).
Given that currency forward contracts for hedging against foreign exchange risks are entered
into with high-quality European banks, the Group/Company considers that the counterparty
default risk is minimal. The Group is also exposed to foreign exchange risks in doing business
with its subsidiaries in SE Europe. Considering the low volatility of the exchange rates of local
currencies in SE Europe markets and the relatively low exposure, the Group/Company
believes that it is not exposed to significant risks in this area. To control these risks, the
Group/Company relies on natural hedging to the largest possible extent.
During 2023, the Group/Company was also exposed to certain other currencies (RON), which
was hedged using derivative financial instruments. Exposure to currencies in other markets in
which the Group/Company is present through its companies is either smaller or the currencies
are considerably less volatile compared to the euro. We estimate that a change in the
exchange rate would not have a material impact on profit or loss.
The Group/Company regularly monitors its open currency position and sensitivity based on the
VaR method for all the currencies to which it is exposed.
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An unfavourable change in any currency pair by 10 percent would decrease the net profit by a
maximum of EUR 3,599,305 (2022: EUR 3,372,503), with the EUR/BAM currency pair being
treated as fixed.
6.4 Price and volumetric risk
The Group/Company is exposed to price and volumetric risks arising from trade in energy
commodities. They are managed primarily by aiming to align the purchases and sales of
energy commodities in terms of quantities, as well as the purchase and sales conditions, thus
securing its margin. Depending on the business model of the energy commodity, caps are set
to limit the exposure to price and volumetric risks.
To hedge the sales margin in petroleum product operations, the Group/Company uses
primarily derivatives, specifically commodity swaps. The volume of derivative hedging
transactions entered into depends on the quantitative exposure and a limit defining the
maximum open position for a given time period, consistent with the default risk appetite. Almost
all investments are held in investment grade groups. The partners in these transactions include
global financial institutions or suppliers of goods.
As part of the management of volumetric and price risks in petroleum product operations,
regular adjustments to retail and wholesale plans were made and appropriate financial hedging
transactions were entered into in the event of volume deviations from the limit system. The
changes to the regulations had no impact on the price and volumetric risk management system
itself, but there was an impact on the sale of petroleum products.
The Group/Company is also exposed to price and volumetric risks in its electricity and natural
gas business through sales to its customers in the retail and wholesale markets. The Group
uses derivative financial instruments (currency forward contracts) to hedge the risk of price
volatility. The volume of derivatives entered into to hedge the price and volumetric risk depends
on the forecast sales volumes for future periods and the limit system, with the aim being to buy
volumes in stages.
The Group/Company has wind and solar farms in Croatia for electricity generation; in addition
to using such generated electricity for own consumption, it also sells it on the market. The
Group uses derivatives (currency forward contracts) to hedge the risk of electricity price
volatility. The volume of derivative transactions entered into to hedge the price risk of electricity
sales depends on the forecast generation volumes for future periods and the Group’s limit
system, the aim being to gradually sell off the volumes.
The Group is also exposed to price risks in electricity trading. The group manages these risks
with an assortment of limit systems defined depending on the business partner and the value
at risk, and with appropriate processes in place to monitor and control these risks.
Derivatives held for trading are mainly derivatives for the purchase and sale of electricity. The
Group has net open derivative positions at the reporting date that are not designated as
hedging instruments. The fair value of the instruments is calculated based on the market prices
for electricity.
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The increases in energy commodity prices in recent years have significantly increased the
price and volumetric risks, which is why the Petrol Group regularly monitors the adequacy of
the limit systems in place and, where necessary, updates and supplements them.
The effect of commodity swaps
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Unrealised loss | (11,822,333) | (29,872,456) | (233,737) | (16,007,602) |
| Unrealised gain | 5,941,055 | 5,380,773 | 5,863,966 | 5,259,876 |
| Realised loss | (142,066,185) | (528,826,694) | (151,997,707) | (535,263,668) |
| Realised gain | 201,228,615 | 517,714,046 | 201,550,567 | 519,804,227 |
| Total effect of commodity swaps | 53,281,152 | (35,604,331) | 55,183,089 | (26,207,167) |
For electricity trading, the changes in market prices of electricity influence calculation of market
value of electricity contracts (“mark-to-market”).
Market value (fair value) of contracts changes daily depending on the market price movements
and trade positioning withing Group’s prescribed limits. An increase (decrease) in the change
in market electricity prices of ±3 percent as at 31 December 2023 would mean that the market
value (fair value) of the contracts would decrease (increase) by ±621,233 EUR. This calculation
includes both physical and financial transactions.
In the petroleum products and gas business, commodity swaps are used to hedge retail
transactions and are therefore not used for trading purposes and no net position calculations
and stress tests are performed.
6.5 Interest rate risk
The Group/Company is exposed to interest rate risks because it takes out loans with a floating
interest rate, which are mostly EURIBOR-based. In 2023, the Group/Company continued to
monitor exposure to changes in net interest expenses in the case of interest rate changes.
The exposure to interest rate risks is hedged using the following instruments:
− partly through ongoing operations, the Group’s/Company’s interest rate on past due
operating receivables being indirectly EURIBOR-based;
− partly through forward markets by entering into interest rate swaps;
− taking out loans 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.
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EURIBOR interest rates in 2023 and 2022
| 6-month | 3-month | 1-month | |
| Euribor | Euribor | Euribor | |
| Value as at 31/12/2022 (in percent) | 2.693 | 2.132 | 1.884 |
| Value as at 31/12/2023 (in percent) | 3.861 | 3.909 | 3.845 |
| Change in interest rate (in percentage points) | 1.168 | 1.777 | 1.961 |
| The lowest value in 2023 (in percent) | 2.732 | 2.162 | 1.854 |
| The highest value in 2023 (in percent) | 4.143 | 4.002 | 3.893 |
| Change between the lowest and the highest interest | |||
| rate (in percentage points) | 1.411 | 1.840 | 2.039 |
| Average value in 2022 (in percent) | 0.682 | 0.348 | 0.094 |
| Average value in 2023 (in percent) | 3.694 | 3.433 | 3.245 |
| Change in average interest rate (in percentage points) | 3.012 | 3.085 | 3.151 |
Interest rate swaps by maturity
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| 6 to 12 months | 23,428,571 | 34,000,000 | 23,428,571 | 34,000,000 |
| 1 to 5 years | 314,571,429 | 323,000,000 | 264,571,429 | 273,000,000 |
| Total interest rate swaps | 338,000,000 | 357,000,000 | 288,000,000 | 307,000,000 |
The effect of interest rate swaps
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Unrealised gain/(loss) on effective transactions | (14,501,224) | 35,701,883 | (12,624,557) | 31,719,264 |
| Realised loss | - | (329,734) | - | (329,734) |
| Total effect of interest rate swaps | (14,501,224) | 35,372,149 | (12,624,557) | 31,389,530 |
The Group’s/Company’s exposure to the risk of changing interest rates was as follows:
Financial instruments with a fixed interest rate
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Loans | 963,357 | 1,486,919 | 61,772,329 | 95,514,226 |
| Borrowings and other financial liabilities | (67,828,000) | (91,328,000) | (221,264,257) | (257,150,704) |
| Net financial instruments with a fixed interest rate | (66,864,643) | (89,841,081) | (159,491,928) | (161,636,478) |
Financial instruments with a variable interest rate
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Loans | 2,174,439 | 1,141,496 | 5,941,458 | 4,964,316 |
| Borrowings and other financial liabilities | (393,812,919) | (406,941,435) | (303,305,821) | (334,016,085) |
| Net financial instruments with a variable interest | ||||
| rate | (391,638,480) | (405,799,939) | (297,364,363) | (329,051,769) |
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Value of borrowings hedged using interest rate swaps
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Interest rate swaps (notional amount) | 338,000,000 | 357,000,000 | 288,000,000 | 307,000,000 |
| Total interest rate swaps | 338,000,000 | 357,000,000 | 288,000,000 | 307,000,000 |
A change in the interest rate of 100 or 200 basis points on the reporting date would have
increased (decreased) the net profit or loss by the amounts indicated below. Cash flow
sensitivity analysis in the case of instruments with a variable interest rate assumes that all
variables, in particular foreign exchange rates, remain unchanged. When performing the
calculation, the value of the receivables (liabilities) with variable interest rates is further
decreased by the total amount of interest rate swaps. This analysis was prepared in the same
manner for both years.
Change in profit or loss in the case of an increase by 100 or 200 bp
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Cash flow variability (net)–100 bp | (536,385) | (487,999) | (93,644) | (220,518) |
| Cash flow variability (net)–200 bp | (1,072,770) | (975,999) | (187,287) | (441,035) |
Change in profit or loss in the case of a decrease by 100 or 200 bp
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Cash flow variability (net)–100 bp | 536,385 | 487,999 | 93,644 | 220,518 |
| Cash flow variability (net)–200 bp | 1,072,770 | 975,999 | 187,287 | 441,035 |
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6.6 Capital adequacy management
The main purpose of capital adequacy management is to ensure the best possible financial
stability, long-term solvency and the maximum shareholder value. The Group/Company also
achieves this through a stable dividend pay-out policy.
The financial stability of the Group/Company is also demonstrated by the S&P rating obtained
at the end of June 2014. S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s ‘BBB-' long-
term rating, its 'A-3' short-term credit rating and its 'stable' credit rating outlook on 22 December
2023.
In 2023, the Petrol Group continued to implement its strategic focus in the area of indebtedness
and maintained the net debt/equity ratio at acceptable levels that provide the Group with a
stable position for future operations.
| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Non-current borrowings and other financial liabilities | 347,037,409 | 401,613,002 | 300,681,833 | 365,355,088 |
| Non-current lease liabilities | 99,759,274 | 101,100,126 | 27,578,972 | 27,331,350 |
| Current borrowings and other financial liabilities | 114,603,510 | 96,656,433 | 223,888,245 | 225,811,701 |
| Current lease liabilities | 21,054,721 | 17,498,969 | 4,318,028 | 3,965,318 |
| Total | 582,454,914 | 616,868,530 | 556,467,078 | 622,463,457 |
| Total equity | 923,042,488 | 860,166,621 | 618,551,940 | 597,990,971 |
| Debt/Equity | 0.63 | 0.72 | 0.90 | 1.04 |
| Cash and cash equivalents | 105,937,006 | 100,962,531 | 33,020,462 | 51,203,361 |
| Net financial liabilities | 476,517,908 | 515,905,999 | 523,446,616 | 571,260,096 |
| Net debt/Equity | 0.52 | 0.60 | 0.85 | 0.85 |
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6.7 Carrying amount and fair value of financial instruments
Presentation of financial assets and liabilities
The Petrol Group
| The Petrol Group | ||||||
| 31 December 2022 | ||||||
| Fair value | ||||||
| Fair value | Fair value of | through other | ||||
| through profit or | derivatives used | comprehensive | Total carrying | |||
| (in EUR) | loss | for hedging | Amortised cost | income | amount | |
| Fin. assets at FV through | ||||||
| other comprehensive | Equity instruments | - | - | - | 4,112,346 | 4,112,346 |
| income | ||||||
| Loans | - | - | 949,277 | - | 949,277 | |
| Operating receivables | - | - | 7,015,756 | - | 7,015,756 | |
| Total non-current financial assets | - | - | 7,965,033 | 4,112,346 | 12,077,379 | |
| Contract assets | - | - | 13,319,362 | - | 13,319,362 | |
| Loans | - | - | 1,679,138 | - | 1,679,138 | |
| Operating rec. (excluding receivables from the state) | - | - | 840,186,387 | - | 840,186,387 | |
| Fin. assets at FV through | Commodity derivatives | 2,297,589 | - | - | - | 2,297,589 |
| profit or loss | Currency forward contracts | 348,745 | - | - | - | 348,745 |
| Fin. assets at FV through | Interest rate swaps | - | 34,616,805 | - | - | 34,616,805 |
| other comprehensive | Commodity derivatives | - | 3,083,184 | - | - | 3,083,184 |
| income | Bonds | - | - | - | 334,077 | 334,077 |
| Cash and cash equivalents | - | - | 100,962,531 | - | 100,962,531 | |
| Total current financial assets | 2,646,334 | 37,699,989 | 956,147,418 | 334,077 | 996,827,818 | |
| Total financial assets | 2,646,334 | 37,699,989 | 964,112,451 | 4,446,423 | 1,008,905,197 | |
| Borrowings and other | Borrowings | - | - | (357,796,073) | - | (357,796,073) |
| financial liabilities | Debt securities | - | - | (43,816,929) | - | (43,816,929) |
| Lease liabilities | - | - | (101,100,126) | - | (101,100,126) | |
| Operating liabilities (excluding other liabilities) | - | - | (2,024,000) | - | (2,024,000) | |
| Total non-current financial liabilities | - | - | (504,737,128) | - | (504,737,128) | |
| Borrowings and other | Borrowings | - | - | (87,518,001) | - | (87,518,001) |
| financial liabilities | Debt securities | - | - | (300,831) | - | (300,831) |
| Currency forward contracts | (745,579) | (8,092,022) | - | - | (8,837,601) | |
| Lease liabilities | - | - | (17,498,969) | - | (17,498,969) | |
| Oper. liab. (excluding liab. to the state and employees) | - | - | (838,214,758) | - | (838,214,758) | |
| Commodity derivative instruments | (16,956,682) | (12,915,774) | - | - | (29,872,456) | |
| Total current financial liabilities | (17,702,261) | (21,007,796) | (943,532,559) | - | (982,242,616) | |
| Total financial liabilities | (17,702,261) | (21,007,796) | (1,448,269,687) | - | (1,486,979,744) | |
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| The Petrol Group | ||||||
| 31 December 2023 | ||||||
| Fair value | ||||||
| Fair value | Fair value of | through other | ||||
| through profit or | derivatives used | comprehensive | Total carrying | |||
| (in EUR) | loss | for hedging | Amortised cost | income | amount | |
| Fin. assets at FV through | ||||||
| other comprehensive | Equity instruments | - | - | - | 3,993,859 | 3,993,859 |
| income | ||||||
| Loans | - | - | 2,362,489 | - | 2,362,489 | |
| Operating receivables | - | - | 8,468,242 | - | 8,468,242 | |
| Total non-current financial assets | - | - | 10,830,731 | 3,993,859 | 14,824,590 | |
| Contract assets | - | - | 6,052,405 | - | 6,052,405 | |
| Loans | - | - | 775,307 | - | 775,307 | |
| Operating rec. (excluding receivables from the state) | - | - | 794,205,090 | - | 794,205,090 | |
| Fin. assets at FV through | Commodity derivatives | 3,960,075 | - | - | - | 3,960,075 |
| profit or loss | ||||||
| Fin. assets at FV through | Interest rate swaps | - | 20,605,792 | - | - | 20,605,792 |
| other comprehensive | Commodity derivatives | - | 1,980,980 | - | - | 1,980,980 |
| income | ||||||
| Cash and cash equivalents | - | - | 105,937,006 | - | 105,937,006 | |
| Total current financial assets | 3,960,075 | 22,586,772 | 906,969,808 | - | 933,516,655 | |
| Total financial assets | 3,960,075 | 22,586,772 | 917,800,539 | 3,993,859 | 948,341,245 | |
| Borrowings and other | Borrowings | - | - | (336,040,952) | - | (336,040,952) |
| financial liabilities | Debt securities | - | - | (10,996,457) | - | (10,996,457) |
| Lease liabilities | - | - | (99,759,274) | - | (99,759,274) | |
| Operating liabilities (excluding other liabilities) | - | - | (24,000) | - | (24,000) | |
| Total non-current financial liabilities | - | - | (446,820,683) | - | (446,820,683) | |
| Borrowings | - | - | (70,439,571) | - | (70,439,571) | |
| Borrowings and other | Debt securities | - | - | (33,252,298) | - | (33,252,298) |
| financial liabilities | Interest rate derivatives | - | (489,076) | - | - | (489,076) |
| Currency forward contracts | (1,348,035) | (9,074,530) | - | - | (10,422,565) | |
| Lease liabilities | - | - | (21,054,721) | - | (21,054,721) | |
| Oper. liab. (excluding liab. to the state and employees) | - | - | (737,361,316) | - | (737,361,316) | |
| Commodity derivative instruments | (786,130) | (11,036,203) | - | - | (11,822,333) | |
| Total current financial liabilities | (2,134,165) | (20,599,809) | (862,107,906) | - | (884,841,880) | |
| Total financial liabilities | (2,134,165) | (20,599,809) | (1,308,928,589) | - | (1,331,662,563) | |
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Petrol d.d., Ljubljana
| Petrol d.d. | ||||||
| 31 December 2022 | ||||||
| Fair value | ||||||
| Fair value | Fair value of | through other | ||||
| through profit or | derivatives used | comprehensive | Total carrying | |||
| (in EUR) | loss | for hedging | Amortised cost | income | amount | |
| Fin. assets at FV through | Equity instruments | - | - | - | 2,117,914 | 2,117,914 |
| other comprehensive income | ||||||
| Loans | - | - | 59,134,780 | - | 59,134,780 | |
| Operating receivables | - | - | 7,007,540 | - | 7,007,540 | |
| Total non-current financial assets | - | - | 66,142,320 | 2,117,914 | 68,260,234 | |
| Contract assets | - | - | 11,722,300 | - | 11,722,300 | |
| Loans | - | - | 41,343,762 | - | 41,343,762 | |
| Operating rec. (excluding receivables from the state) | - | - | 566,790,889 | - | 566,790,889 | |
| Fin. assets at FV through | Commodity derivatives | 2,176,692 | - | - | - | 2,176,692 |
| profit or loss | Currency forward contracts | 348,745 | - | - | - | 348,745 |
| Fin. assets at FV through | Interest rate swaps | - | 30,293,507 | - | - | 30,293,507 |
| other comprehensive income | Commodity derivatives | - | 3,083,184 | - | - | 3,083,184 |
| Cash and cash equivalents | - | - | 51,203,361 | - | 51,203,361 | |
| Total current financial assets | 2,525,437 | 33,376,691 | 671,060,312 | - | 706,962,440 | |
| Total financial assets | 2,525,437 | 33,376,691 | 737,202,632 | 2,117,914 | 775,222,674 | |
| Borrowings and other | Borrowings | - | - | (321,538,159) | - | (321,538,159) |
| financial liabilities | Debt securities | - | - | (43,816,929) | - | (43,816,929) |
| Lease liabilities | - | - | (27,331,350) | - | (27,331,350) | |
| Operating liabilities (excluding other liabilities) | - | - | (2,024,000) | - | (2,024,000) | |
| Total non-current financial liabilities | - | - | (394,710,438) | - | (394,710,438) | |
| Borrowings and other | Borrowings | - | - | (224,765,291) | - | (224,765,291) |
| financial liabilities | Debt securities | - | - | (300,831) | - | (300,831) |
| Currency forward contracts | (745,579) | - | - | - | (745,579) | |
| Lease liabilities | - | - | (3,965,318) | - | (3,965,318) | |
| Oper. liab. (excluding liab. to the state and employees) | - | - | (606,024,368) | - | (606,024,368) | |
| Commodity derivative instruments | (15,519,612) | (487,990) | - | - | (16,007,602) | |
| Total current financial liabilities | (16,265,191) | (487,990) | (835,055,808) | - | (851,808,989) | |
| Total financial liabilities | (16,265,191) | (487,990) | (1,229,766,246) | - | (1,246,519,427) | |
| Petrol d.d. | ||||||
| 31 December 2023 | ||||||
| Fair value | ||||||
| Fair value | Fair value of | through other | ||||
| through profit or | derivatives used | comprehensive | Total carrying | |||
| (in EUR) | loss | for hedging | Amortised cost | income | amount | |
| Fin. assets at FV through | Equity instruments | - | - | - | 2,117,914 | 2,117,914 |
| other comprehensive income | ||||||
| Loans | - | - | 29,071,795 | - | 29,071,795 | |
| Operating receivables | - | - | 8,451,918 | - | 8,451,918 | |
| Total non-current financial assets | - | - | 37,523,713 | 2,117,914 | 39,641,627 | |
| Contract assets | - | - | 211,844 | - | 211,844 | |
| Loans | - | - | 38,641,992 | - | 38,641,992 | |
| Operating rec. (excluding receivables from the state) | - | - | 539,650,188 | - | 539,650,188 | |
| Fin. assets at FV through profit | Commodity derivatives | 3,882,986 | - | - | - | 3,882,986 |
| or loss | ||||||
| Fin. assets at FV through | Interest rate swaps | - | 18,158,026 | - | - | 18,158,026 |
| other comprehensive income | Commodity derivatives | - | 1,980,980 | - | - | 1,980,980 |
| Cash and cash equivalents | - | - | 33,020,462 | - | 33,020,462 | |
| Total current financial assets | 3,882,986 | 20,139,006 | 611,524,486 | - | 635,546,478 | |
| Total financial assets | 3,882,986 | 20,139,006 | 649,048,199 | 2,117,914 | 675,188,105 | |
| Borrowings and other financial | Borrowings | - | - | (289,685,376) | - | (289,685,376) |
| liabilities | Debt securities | - | - | (10,996,457) | - | (10,996,457) |
| Lease liabilities | - | - | (27,578,972) | - | (27,578,972) | |
| Operating liabilities (excluding other liabilities) | - | - | (24,000) | - | (24,000) | |
| Total non-current financial liabilities | - | - | (328,284,805) | - | (328,284,805) | |
| Borrowings | - | - | (188,798,836) | - | (188,798,836) | |
| Borrowings and other financial | Debt securities | - | - | (33,252,298) | - | (33,252,298) |
| liabilities | Interest rate derivatives | - | (489,076) | - | - | (489,076) |
| Currency forward contracts | (1,348,035) | - | - | - | (1,348,035) | |
| Lease liabilities | - | - | (4,318,028) | - | (4,318,028) | |
| Oper. liab. (excluding liab. to the state and employees) | - | - | (588,537,072) | - | (588,537,072) | |
| Commodity derivative instruments | (233,737) | - | - | - | (233,737) | |
| Total current financial liabilities | (1,581,772) | (489,076) | (814,906,234) | - | (816,977,082) | |
| Total financial liabilities | (1,581,772) | (489,076) | (1,143,191,039) | - | (1,145,261,887) | |
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Presentation of financial assets and liabilities disclosed at fair value according to the
fair value hierarchy
The Petrol Group
Fair value of assets
| 31 December 2023 | 31 December 2022 | |||||||
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets at fair value | ||||||||
| through profit or loss | - | 3,960,075 | - | 3,960,075 | - | 2,646,334 | - | 2,646,334 |
| Fin. assets at fair value through | ||||||||
| other comprehensive income | - | 22,586,772 | 3,993,859 | 26,580,631 | - | 37,699,989 | 4,446,423 | 42,146,412 |
| Total assets at fair value | - | 26,546,847 | 3,993,859 | 30,540,706 | - | 40,346,323 | 4,446,423 | 44,792,746 |
| Non-current loans | - | - | 2,362,489 | 2,362,489 | - | - | 949,277 | 949,277 |
| Current loans | - | - | 775,307 | 775,307 | - | - | 1,679,138 | 1,679,138 |
| Non-current operating | ||||||||
| receivables | - | - | 8,468,242 | 8,468,242 | - | - | 7,015,756 | 7,015,756 |
| Current operating receivables | ||||||||
| (excluding rec. from the state) | - | - | 794,205,090 | 794,205,090 | - | - | 840,186,387 | 840,186,387 |
| Contract assets | - | - | 6,052,405 | 6,052,405 | - | - | 13,319,362 | 13,319,362 |
| Cash and cash equivalents | - | 105,937,006 | - | 105,937,006 | - | 100,962,531 | - | 100,962,531 |
| Total assets with fair value | ||||||||
| disclosure | - | 105,937,006 | 811,863,533 | 917,800,539 | - | 100,962,531 | 863,149,920 | 964,112,451 |
| Total assets | - | 132,483,853 | 815,857,392 | 948,341,245 | - | 141,308,854 | 867,596,343 | 1,008,905,197 |
The fair value of financial assets at fair value through other comprehensive income has been
estimated:
- using the capitalised yield method, assuming a required pre-tax rate of return of 9.9 percent
and 13.4 percent (2022: 6.5 percent) and a long-term growth rate of 2 percent (2022: 1.5
percent); and
- using the discounted cash flow method, assuming a required rate of return of 7.45 percent
and a long-term growth rate of 2.0 percent.
An increase of 0.5 percentage points in those assumptions would result in the fair value rising
by EUR 600,673 (2022: EUR 925,879). A decrease of 0.5 percentage points in those
assumptions would result in the fair value being reduced by EUR 446,586 (2022: EUR
770,121).
Fair value of liabilities
| 31 December 2023 | 31 December 2022 | |||||||
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities | - | (10,911,641) | - | (10,911,641) | - | (8,837,601) | - | (8,837,601) |
| Commodity derivative instruments | - | (11,822,333) | - | (11,822,333) | - | (29,872,456) | - | (29,872,456) |
| Total liabilities at fair value | - | (22,733,974) | - | (22,733,974) | - | (38,710,057) | - | (38,710,057) |
| Non-current borrowings and other | ||||||||
| financial liabilities | - | - | (347,037,409) | (347,037,409) | - | - | (401,613,002) | (401,613,002) |
| Non-current lease liabilities | - | - | (99,759,274) | (99,759,274) | - | - | (101,100,126) | (101,100,126) |
| Current borrowings and other | ||||||||
| financial liabilities (excluding | ||||||||
| liabilities at fair value) | - | - | (103,691,869) | (103,691,869) | - | - | (87,818,832) | (87,818,832) |
| Current lease liabilities | - | - | (21,054,721) | (21,054,721) | - | - | (17,498,969) | (17,498,969) |
| Non-current operating liabilities | ||||||||
| (excluding other liabilities) | - | - | (24,000) | (24,000) | - | - | (2,024,000) | (2,024,000) |
| Current operating liab. (excluding | ||||||||
| liab. to the state, employees and | ||||||||
| liabilities at fair value) | - | - | (737,361,316) | (737,361,316) | - | - | (838,214,758) | (838,214,758) |
| Total liabilities with fair value | ||||||||
| disclosure | - | - | (1,308,928,589) | (1,308,928,589) | - | - | (1,448,269,687) | (1,448,269,687) |
| Total liabilities | - | (22,733,974) | (1,308,928,589) | (1,331,662,563) | - | (38,710,057) | (1,448,269,687) | (1,486,979,744) |
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Petrol d.d., Ljubljana
Fair value of assets
| 31 December 2023 | 31 December 2022 | |||||||
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets at fair value | ||||||||
| through profit or loss | - | 3,882,986 | - | 3,882,986 | - | 2,525,437 | - | 2,525,437 |
| Fin. assets at fair value through | ||||||||
| other comprehensive income | - | 20,139,006 | 2,117,914 | 22,256,920 | - | 33,376,691 | 2,117,914 | 35,494,605 |
| Total assets at fair value | - | 24,021,992 | 2,117,914 | 26,139,906 | - | 35,902,128 | 2,117,914 | 38,020,042 |
| Non-current loans | - | - | 29,071,795 | 29,071,795 | - | - | 59,134,780 | 59,134,780 |
| Current loans | - | - | 38,641,992 | 38,641,992 | - | - | 41,343,762 | 41,343,762 |
| Non-current operating | ||||||||
| receivables | - | - | 8,451,918 | 8,451,918 | - | - | 7,007,540 | 7,007,540 |
| Current operating receivables | ||||||||
| (excluding rec. from the state) | - | - | 539,650,188 | 539,650,188 | - | - | 566,790,889 | 566,790,889 |
| Contract assets | - | - | 211,844 | 211,844 | - | - | 11,722,300 | 11,722,300 |
| Cash and cash equivalents | - | 33,020,462 | - | 33,020,462 | - | 51,203,361 | - | 51,203,361 |
| Total assets with fair value | ||||||||
| disclosure | - | 33,020,462 | 616,027,737 | 649,048,199 | - | 51,203,361 | 685,999,271 | 737,202,632 |
| Total assets | - | 57,042,454 | 618,145,651 | 675,188,105 | - | 87,105,489 | 688,117,185 | 775,222,674 |
The fair value of financial assets at fair value through other comprehensive income has been
estimated:
- using the capitalised yield method, assuming a required pre-tax rate of return of 13.4 percent
(2022: 8.0 percent) and a long-term growth rate of 2.0 percent (2022: 1.5 percent); and
- using the discounted cash flow method, assuming a required rate of return of 7.45 percent
and a long-term growth rate of 2.0 percent.
An increase of 0.5 percentage points in those assumptions would result in the fair value rising
by EUR 392,673 (2022: EUR 433,086). A decrease of 0.5 percentage points in those
assumptions would result in the fair value being reduced by EUR 287,586 (2022:
EUR 265,914).
Fair value of liabilities
| 31 December 2023 | 31 December 2022 | |||||||
| (in EUR) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities | - | (1,837,111) | - | (1,837,111) | - | (745,579) | - | (745,579) |
| Commodity derivative | ||||||||
| instruments | - | (233,737) | - | (233,737) | - | (16,007,602) | - | (16,007,602) |
| Total liabilities at fair value | - | (2,070,848) | - | (2,070,848) | - | (16,753,181) | - | (16,753,181) |
| Non-current borrowings and | ||||||||
| other | ||||||||
| financial liabilities | - | - | (300,681,833) | (300,681,833) | - | - | (365,355,088) | (365,355,088) |
| Non-current lease liabilities | - | - | (27,578,972) | (27,578,972) | - | - | (27,331,350) | (27,331,350) |
| Current borrowings and other | ||||||||
| financial liabilities (excluding | ||||||||
| liabilities at fair value) | - | - | (222,051,134) | (222,051,134) | - | - | (225,066,122) | (225,066,122) |
| Current lease liabilities | - | - | (4,318,028) | (4,318,028) | - | - | (3,965,318) | (3,965,318) |
| Non-current operating | ||||||||
| liabilities | ||||||||
| (excluding other liabilities) | - | - | (24,000) | (24,000) | - | - | (2,024,000) | (2,024,000) |
| Current operating liab. | ||||||||
| (excluding | ||||||||
| liab. to the state, employees | ||||||||
| and | ||||||||
| liabilities at fair value) | - | - | (588,537,072) | (588,537,072) | - | - | (606,024,368) | (606,024,368) |
| Total liabilities with fair | ||||||||
| value | ||||||||
| disclosure | - | - | (1,143,191,039) | (1,143,191,039) | - | - | (1,229,766,246) | (1,229,766,246) |
| Total liabilities | - | (2,070,848) | (1,143,191,039) | (1,145,261,887) | - | (16,753,181) | (1,229,766,246) | (1,246,519,427) |
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Changes in Level 3 assets measured at fair value
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| As at 1 January | 4,446,423 | 4,467,121 | 2,117,914 | 2,117,914 |
| Disposals | (452,564) | (20,698) | - | - |
| As at 31 December | 3,993,859 | 4,446,423 | 2,117,914 | 2,117,914 |
6.8 Environmental and climate risks
Climate change is classified as an environmental risk, but it is also a source of structural
change that affects economic activity and, indirectly, social, governance and financial systems.
It has a long-term impact on the business activities and sectors concerned. The Group
operates in sectors (energy, transport, infrastructure and others) with a higher probability of
physical risks. These are also the sectors to be affected by the transition to a low-carbon
economy. In particular, assets directly or indirectly related to the extraction, processing,
combustion or use of fossil fuels, as well as assets that are not energy efficient, may be subject
to sudden and severe devaluation.
Geographically, the impact of climate change is expected to vary, so we will analyse the
geographical areas in which we operate separately. The first step towards integrating an
integrated ESG approach to risk, which we started in 2022, is the integration of
environmental/climate risks into the Group’s/Company’s overall risk management. A
comprehensive ESG/climate risk assessment is under preparation. For more information, see
the Business section in the Risk Management chapter and the Environment chapter.
The Group supports the Paris Agreement and the EU’s 2050 decarbonisation commitments,
which means that it is actively engaged in mitigating and adapting to climate change, while
continuing its efforts to deliver the energy needed for societal well-being securely and at an
affordable price. It aims to reduce greenhouse gas emissions in the most economically and
environmentally efficient way, at the lowest cost to the economy and the population, and with
a positive impact on human health and safety (see the business section in the Strategic
orientations and objectives for the sustainable development of the Petrol Group).
In accordance with the Taxonomy Regulation (Regulation (EU) 2020/852 of the European
Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU) 2019/2088), the Group/Company
reports the indicators for Taxonomy-eligible or Taxonomy-aligned economic activities for the
2023 financial year. The reporting/analysis for the 2023 financial year covers all six of the
European Union’s environmental objectives:
1. climate change mitigation,
2. climate change adaptation,
3. sustainable use and protection of water and marine resources,
4. transition to a circular economy,
5. pollution prevention and control, and
6. protection and restoration of biodiversity and ecosystems.
Reporting for 2023, as for 2022, not only includes an assessment of eligibility, but also an
assessment of the alignment of the activity with the EU Taxonomy.
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The following 21 Taxonomy-eligible activities of the Petrol Group in Slovenia and Croatia have
been identified within the five NACE
1
macro-sectors:
Energy
4.1 Electricity generation using solar photovoltaic technology
4.3 Electricity generation from wind power
4.8 Electricity generation from bioenergy
4.9 Transmission and distribution of electricity
4.14 Transmission and distribution networks for renewable and low-carbon gases
4.15 District heating/cooling distribution
4.20 Cogeneration of heat/cool and power from bioenergy
4.22 Production of heat/cool from geothermal energy
4.24 Production of heat/cool from bioenergy
4.30 High-efficiency cogeneration of heat/cool and power from
gaseous fossil fuels
4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and
cooling system
Water supply, sewerage, waste management and remediation
5.1 Construction, extension and operation of water collection, treatment and supply
systems
5.2 Renewal of water collection, treatment and supply systems
5.3 Construction, extension and operation of wastewater collection and treatment
Transport
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
6.15 Infrastructure enabling low-carbon road transport and public transport
Construction and real estate activities
7.3 Installation, maintenance and repair of energy efficiency equipment
7.4 Installation, maintenance and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)
7.5 Installation, maintenance and repair of instruments and devices for measuring,
regulating and controlling the energy performance of buildings
7.6 Installation, maintenance and repair of renewable energy technologies
Information and communication
8.2 Data-driven solutions for GHG emissions reductions
All Taxonomy-eligible activities are included in the climate change mitigation objective and are
also aligned with the Taxonomy (environmentally sustainable economic activities) after a
review of the technical criteria.
Energy transition towards a low-carbon company and the development of new technologies
are transforming established ways of how energy commodities are produced, sold and used.
The Group/Company is committed to making a transition to green energy and is dedicating a
significant share of its investments to achieving it. In 2023, the Group invested EUR 28,918,777
into fixed assets for environmentally sustainable activities (aligned with the Taxonomy) and the
Company EUR 14,048,624.
1
NACE – Nomenclature of Economic Activities – European statistical classification of economic activities
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In 2023, the Group recorded EUR 125,165,977 and the Company EUR 105,948,186 of costs
from environmentally sustainable activities (aligned with the Taxonomy). These costs were
recorded by the Group/Company under the cost of services (mainly subcontracting and
maintenance costs), cost of materials (mainly energy costs), labour costs, depreciation and
amortisation costs and other costs (mainly concession fees).
Taxonomy-aligned activities contributed 1.94 percent of the turnover from products or services
or the turnover of the Petrol Group companies in Slovenia and Croatia included in the analysis
in 2023 (EUR 131,575,569 out of a total turnover from products or services of EUR
6,798,684,495). Turnover from products or services includes revenue from contracts with
customers and other income. The turnover from products or services of the companies
included in the analysis accounted for 97.21 percent of the Petrol Group’s total turnover from
products or services in 2023. The turnover from products or services from Taxonomy-aligned
activities in the Company in 2023 amounted to EUR 109,117,689.
In 2023
| The Petrol Group | Petrol d.d. | |||||
| Investments | Investments | |||||
| (in EUR) | in PPE | Revenues | Costs | in PPE | Revenues | Costs |
| A.) TAXONOMY - ELIGIBLE ACTIVITIES | ||||||
| A.1 Environmentally sustainable activities (Taxonomy-aligned) | ||||||
| 4.1 Electricity generation using solar photovoltaic technology | 11,683,621 | 7,375,056 | 4,972,224 | 4,951,581 | 1,459,114 | 806,083 |
| 4.3 Electricity generation from wind power | 1,338,653 | 4,412,320 | 3,488,073 | - | - | - |
| 4.8 Electricity generation from bioenergy | - | 345,289 | 622,902 | - | 345,289 | 622,902 |
| 4.9 Transmission and distribution of electricity | 849 | 4,097,894 | 3,599,988 | 849 | 4,097,894 | 3,599,988 |
| 4.14 Transmission and distribution networks for renewable and | ||||||
| low-carbon gases | 1,445,800 | 15,803,327 | 12,642,534 | 933,842 | 11,997,653 | 9,223,705 |
| 4.15 District heating/cooling distribution | 162,944 | 15,415,491 | 5,300,835 | 150,817 | 14,209,696 | 3,943,352 |
| 4.20 Cogeneration of heat/cool and power from bioenergy | 54,406 | 1,715,210 | 1,839,434 | 54,406 | 1,649,660 | 1,805,353 |
| 4.22 Production of heat/cool from geothermal energy | - | - | 309,082 | - | - | 309,082 |
| 4.24 Production of heat/cool from bioenergy | 89,310 | 2,141,415 | 3,539,490 | - | 1,950,598 | 3,449,812 |
| 4.30 High-efficiency co-generation of heat/cool and power from | ||||||
| fossil gaseous fuel | - | 9,216,946 | 13,703,253 | - | 4,854,387 | 10,332,814 |
| 4.31 Production of heat/cool from fossil gaseous fuels in an | ||||||
| efficient district heating and cooling system | - | 1,893,691 | 3,046,719 | - | 1,653,260 | 2,450,904 |
| 5.1 Construction, extension and operation of water collection, | ||||||
| treatment and supply systems | - | 4,678,866 | 4,866,393 | - | 4,678,866 | 4,866,393 |
| 5.2 Renewal of water collection, treatment and supply systems | - | 3,571,609 | 3,867,365 | - | 3,571,609 | 3,867,365 |
| 5.3 Construction, extension and operation of waste water collection | ||||||
| and treatment | 233,020 | 3,003,633 | 2,069,814 | 233,020 | 3,003,633 | 2,069,814 |
| 6.5 Transport by motorbikes, passenger cars and light commercial | ||||||
| vehicles | 1,118,264 | 596,061 | 814,200 | - | 195,061 | 391,202 |
| 6.15 Infrastructure enabling low-carbon road transport and public | ||||||
| transport | 1,875,138 | 2,444,951 | 3,858,156 | 1,557,793 | 1,248,934 | 2,012,032 |
| 7.3 Installation, maintenance and repair of energy efficiency | ||||||
| equipment | 10,578,375 | 26,434,358 | 27,048,469 | 5,829,601 | 25,772,583 | 26,620,339 |
| 7.4 Installation, maintenance and repair of charging stations for | ||||||
| electric vehicles in buildings (and parking spaces attached to | ||||||
| buildings) | - | 9,250,777 | 9,197,382 | - | 9,250,777 | 9,197,382 |
| 7.5 Installation, maintenance and repair of instruments and devices | ||||||
| for measuring, regulation and controlling energy performance of | ||||||
| buildings | 11,854 | - | - | 11,854 | - | - |
| 7.6 Installation, maintenance and repair of renewable energy | ||||||
| technologies | 3,288 | 18,661,473 | 20,079,984 | 1,606 | 18,661,473 | 20,079,984 |
| 8.2 Data-driven solutions for GHG emissions reductions | 323,256 | 517,203 | 299,682 | 323,256 | 517,203 | 299,682 |
| Total | 28,918,777 | 131,575,569 | 125,165,977 | 14,048,624 | 109,117,689 | 105,948,186 |
Commitment to the green transition remains key and the Group/Company will increase the
share of renewable energy (RES) generation in the region. In the area of energy solutions,
most activities will continue to be focused on the industrial and household segments.
The Group/Company did not make any provisions for climate change or impair any assets or
inventories. In 2023, there were no changes in the estimated useful lives of the
Group’s/Company’s fixed assets due to climate change. For more information, see the
Environmentally sustainable economic activities and sustainable investments chapter in the
Business section.
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7. Related party transactions
Petrol d.d., Ljubljana is a joint-stock company listed on the Ljubljana Stock Exchange. The
ownership structure as at 31 December 2023 is disclosed in the Chapters Share and
Ownership Structure and Companies in the Petrol Group of the business report.
All of the Group/Company-related party transactions were carried out based on the market
conditions applicable to transactions with unrelated parties.
Companies in the Petrol Group
| The Petrol Group | Petrol d.d. | |||
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Revenue from contracts with customers: | ||||
| Subsidiaries | - | - | 920,022,921 | 1,278,693,637 |
| Jointly controlled entities | 1,077,419 | 4,450,996 | 17,888 | 34,299 |
| Associates | 57,712 | 38,746 | 57,712 | 38,746 |
| Cost of goods sold: | ||||
| Subsidiaries | - | - | 175,511,835 | 134,397,651 |
| Jointly controlled entities | 71,442 | 115,850 | - | - |
| Costs of materials: | ||||
| Subsidiaries | - | - | 695,843 | 908,547 |
| Jointly controlled entities | 1,629 | 4,645 | - | - |
| Costs of services: | ||||
| Subsidiaries | - | - | 2,166,906 | 1,103,313 |
| Jointly controlled entities | 4,960 | 3,977 | - | - |
| Gain on derivatives: | ||||
| Subsidiaries | - | - | 8,459,366 | 4,687,243 |
| Loss on derivatives: | ||||
| Subsidiaries | - | - | 7,938,474 | 1,658,727 |
| Fin. inc./expenses from interests in Group companies: | ||||
| Subsidiaries | - | - | 1,588,428 | 723,160 |
| Jointly controlled entities | 44,439 | 665,483 | 931,389 | 115,217 |
| Associates | 3,679,698 | 2,662,912 | 1,246,921 | 814,437 |
| Finance income from interest: | ||||
| Subsidiaries | - | - | 1,766,695 | 1,296,282 |
| Jointly controlled entities | 10,415 | 1,793 | 10,415 | 1,793 |
| Other finance income: | ||||
| Subsidiaries | - | - | 109,780 | 132,036 |
| Associates | 344 | - | 344 | - |
| Finance expenses for interest: | ||||
| Subsidiaries | - | - | 3,558,181 | 2,180,053 |
| Jointly controlled entities | 348 | - | 348 | - |
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| The Petrol Group | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Investments in Group companies: | ||||
| Subsidiaries | - | - | 555,292,232 | 554,032,932 |
| Jointly controlled entities | 350,240 | 1,277,748 | 233,000 | 233,000 |
| Associates | 59,316,541 | 56,968,277 | 26,610,477 | 26,610,477 |
| Non-current loans: | ||||
| Subsidiaries | - | - | 28,108,437 | 59,087,634 |
| Current operating receivables: | ||||
| Subsidiaries | - | - | 43,763,743 | 83,627,973 |
| Jointly controlled entities | 950 | 1,100,698 | 950 | 15,433 |
| Associates | 1,397 | 1,568 | 1,284 | 1,487 |
| Current loans: | ||||
| Subsidiaries | - | - | 37,948,028 | 40,046,732 |
| Jointly controlled entities | 450,794 | 247,383 | 450,794 | 247,383 |
| Prepayments and other assets: | ||||
| Subsidiaries | - | - | 43,840 | 5,542,493 |
| Non-current borrowings: | ||||
| Subsidiaries | - | - | 21,000,000 | 21,000,000 |
| Current borrowings: | ||||
| Subsidiaries | - | - | 154,797,116 | 164,958,704 |
| Jointly controlled entities | 300,000 | 300,000 | 300,000 | 300,000 |
| Current operating liabilities: | ||||
| Subsidiaries | - | - | 29,050,646 | 8,515,784 |
| Jointly controlled entities | 844 | 898,293 | - | 876,704 |
| Associates | - | - | ||
| Current deferred income: | ||||
| Subsidiaries | - | - | 113,032 | - |
| Contract liabilities: | ||||
| Subsidiaries | - | - | 1,710 | 2,527 |
| Commodity derivative instruments: | ||||
| Subsidiaries | - | - | 60,830 | - |
| Other liabilities: | ||||
| Subsidiaries | - | - | 3,829,578 | 11,321,656 |
Remuneration of the Supervisory Board and committee members of Petrol d.d.,
Ljubljana
2023
| Basic SB | Attendance | Payment for | Travel | ||||
| (in EUR) | Function | payment | fees | specific tasks | expenses | Sum gross | Sum net |
| Janez Žlak | President of the Supervisory Board | 26,250 | 6,875 | 11,250 | 1,056 | 45,431 | 33,042 |
| Deputy President of the Supervisory | |||||||
| Borut Vrviščar | Board | 22,125 | 6,600 | 8,250 | - | 36,975 | 26,892 |
| Aleksander Zupančič | Member of the Supervisory Board | 18,750 | 8,855 | 7,500 | 3,377 | 38,482 | 27,988 |
| Alenka Urnaut | Member of the Supervisory Board | 20,625 | 8,580 | 7,500 | - | 36,705 | 26,696 |
| Mario Selecky | Member of the Supervisory Board | 18,750 | 6,050 | 7,500 | - | 32,300 | 25,033 |
| Mladen Kaliterna | Member of the Supervisory Board | 18,750 | 8,855 | 7,500 | - | 35,105 | 25,532 |
| Alen Mihelčič | Member of the Supervisory Board | 18,750 | 6,875 | 7,500 | - | 33,125 | 24,092 |
| Robert Ravnikar | Member of the Supervisory Board | 18,750 | 8,855 | 7,500 | - | 35,105 | 25,532 |
| Marko Šavli | Member of the Supervisory Board | 18,750 | 6,875 | 7,500 | - | 33,125 | 24,092 |
| External member of the Audit | |||||||
| Sabina Merhar | Committee | 4,500 | 2,200 | - | - | 6,700 | 4,873 |
| Total: | 186,000 | 70,620 | 72,000 | 4,433 | 333,053 | 243,770 |
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Remuneration of the Management Board members of Petrol d.d., Ljubljana
2022
| Variable remuneration - gross*** | |||||||
| Fixed | Based on | Based on | |||||
| remuneration - | quantitative | qualitative | |||||
| (in EUR) | gross** | criteria | criteria | Total | Benefits | Sum gross | Sum net |
| Nada Drobne Popović, President of the | |||||||
| Management Board | 249,159 | 93,695 | 99,000 | 192,695 | 45,570 | 487,424 | 190,133 |
| Jože Bajuk, Member of the Management Board | 212,017 | 79,620 | 84,000 | 163,620 | 35,836 | 411,473 | 167,997 |
| Matija Bitenc, Member of the Management Board | 212,042 | 79,620 | 84,000 | 163,620 | 34,889 | 410,551 | 170,546 |
| Jože Smolič, Member of the Management Board | 212,000 | 79,620 | 84,000 | 163,620 | 26,706 | 402,326 | 170,304 |
| Zoran Gračner, Worker Director | 128,953 | 25,742 | 19,873 | 45,615 | 3,306 | 177,874 | 97,797 |
| Total: | 1,014,171 | 358,297 | 370,873 | 729,170 | 146,307 | 1,889,648 | 796,777 |
2023
| Variable remuneration – gross*** | ||||||||
| Fixed | Based on | Based on | ||||||
| remuneration | quantitative | qualitative | Termination | |||||
| (in EUR) | – gross** | criteria | criteria | Total | payments | Benefits | Sum gross | Sum net |
| Sašo Berger, President of the Management | ||||||||
| Board from 23 November 2023 (Member of the | ||||||||
| Management Board from 15 September 2023) | 80,054 | 205 | 164 | 369 | - | 181 | 80,604 | 37,077 |
| Marko Ninčević, Member of the Management | ||||||||
| Board from 1 September 2023 | 85,533 | 242 | 194 | 436 | - | 209 | 86,178 | 40,266 |
| Jože Smolič, Member of the Management Board | 233,730 | 88,552 | 70,829 | 159,381 | - | 27,466 | 420,577 | 160,920 |
| Nada Drobne Popović, President of the | ||||||||
| Management Board till 22 November 2023 | 243,119 | 104,022 | 83,203 | 187,225 | 150,000 | 31,128 | 611,472 | 230,458 |
| Jože Bajuk, Member of the Management Board | ||||||||
| till 2 August 2023 | 128,615 | 146,696 | 117,335 | 264,031 | 7,391 | 11,828 | 411,865 | 176,615 |
| Matija Bitenc, Member of the Management | ||||||||
| Board till 7 December 2023 | 217,583 | 88,552 | 70,829 | 159,381 | - | 26,471 | 403,435 | 163,404 |
| Zoran Gračner, Worker Director | 139,993 | 29,352 | 23,478 | 52,830 | - | 2,538 | 195,361 | 106,116 |
| Total: | 1,128,627 | 457,621 | 366,032 | 823,653 | 157,391 | 99,821 | 2,209,492 | 914,856 |
* Travel expenses, costs of accommodation and subsistence allowance are not disclosed as, by their nature, they
do not represent Management Board’s remuneration.
** Fixed remuneration – gross comprises the basic salary and pay for annual leave.
*** Variable remuneration – gross comprises the annual bonus and the performance bonus.
The total remuneration paid in 2023 by the Company to members of the Workers’ Council was
EUR 8,332.
The Company and the Group had no receivables from or liabilities to Supervisory Board
members as at 31 December 2023.
The Company and the Group had no receivables from or liabilities to Management Board
members as at 31 December 2023, except for liabilities and termination payments arising from
December salaries payable in January 2024.
In 2023, members of the Company’s Management Board and Supervisory Board were not
remunerated for the functions performed in the management and supervisory bodies of the
Petrol Group’s subsidiaries, except in the case of Geoplin d.o.o., where two members of the
Management Board of Petrol d.d., Ljubljana have a management contract, and of E 3, d.o.o.,
where one member of the Management Board of Petrol d.d., Ljubljana has a management
contract. The total gross payments to members of the Management Board in 2023 amounted
to EUR 118,041 (2022: EUR 84,010).
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8. Contingent liabilities
Contingent liabilities for guarantees issued
The maximum contingent liabilities of Petrol d.d., Ljubljana for guarantees issued stood at
EUR 425,145,144 as at 31 December 2023 (31 December 2022: EUR 264,599,582) and were
as follows:
| Petrol d.d. | Petrol d.d. | |||
| 31 December | 31 December | 31 December | 31 December | |
| (in EUR) | 2023 | 2022 | 2023 | 2022 |
| Guarantee issued to: | Value of guarantee issued | Guarantee amount used | ||
| Petrol d.o.o. | 196,539,359 | 176,237,013 | 124,950,629 | 110,590,551 |
| Geoplin d.o.o. Ljubljana | 166,226,780 | 21,000,000 | 51,339,177 | - |
| Vjetroelektrane Glunča d.o.o. | 20,000,000 | - | 20,000,000 | - |
| E 3, d.o.o. | 15,000,000 | 15,000,000 | 8,183,806 | 3,812,407 |
| Petrol BH Oil Company d.o.o. Sarajevo | 6,843,642 | 5,437,589 | 1,153,304 | 166,588 |
| Petrol LPG d.o.o. | 4,700,000 | 4,700,000 | - | - |
| Petrol d.o.o. Beograd | 4,332,300 | 3,999,800 | 678,070 | 1,023 |
| Petrol Trade Handelsgesellschaft m.b.H. | 3,000,000 | 3,000,000 | 3,000,000 | 1,800,000 |
| Petrol Crna Gora MNE d.o.o. | 1,050,000 | 3,000,000 | 221,299 | 206,682 |
| Petrol LPG HIB d.o.o | 1,012,358 | 460,163 | - | - |
| Vjetroelektrarna Ljubač d.o.o. | - | 23,792,130 | - | - |
| Aquasystems d.o.o. | - | 373,318 | - | 373,318 |
| Total | 418,704,439 | 257,000,013 | 209,526,285 | 116,950,569 |
| Bills of exchange issued as security | 117,387,579 | 103,464,125 | 117,387,579 | 103,464,125 |
| Other guarantees | 6,440,705 | 7,599,569 | 6,440,705 | 7,599,569 |
| Total contingent liabilities for guarantees issued | 542,532,723 | 368,063,707 | 333,354,569 | 228,014,263 |
The value of the guarantee issued represents the maximum value of the guarantee issued,
whereas the guarantee amount used represents a value corresponding to a company’s liability,
as reported on 31 December, for which the guarantee has been issued.
Contingent liabilities for lawsuits
The total value of the lawsuits against the Company as a defendant and debtor currently stands
at EUR 2,923,919. As at 31 December 2023, interest on overdue amounts arising from the
claims stood at EUR 331,989. The Company’s management estimates that there is a
possibility that some of these lawsuits could be lost. As a result, the Company set aside long-
term provisions. See the explanation in Note 5.34.
The total value of the lawsuits against the Group as defendant and debtor totals EUR
4,746,794. As at 31 December 2023, interest on overdue amounts arising from the claims
stood at EUR 378,720. The Group’s Management Board estimates that there is a possibility
that some of these lawsuits could be lost. As a result, the Group set aside long-term provisions.
See the explanation in Note 5.34.
9. Events after the reporting date
On 22 February 2024, the Government of the Republic of Slovenia adopted Decree amending
Decree on Setting Prices for Certain Petroleum Products, capping the margin on diesel at EUR
0.0783 per litre and on NMB-95 at EUR 0.0794 per litre in the period from 27 February to 25
March 2024.
On 25 March 2024, the Government of the Republic of Slovenia adopted Decree amending
Decree on Setting Prices for Certain Petroleum Products, keeping the margin on diesel capped
at EUR 0.0783 per litre, on NMB-95 at EUR 0.0794 per litre and on extra-light fuel oil at EUR
0.08 per litre until 20 June 2024.
There were no events after the reporting date that would significantly affect the presented
financial statements for 2023.
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10. Financial statements of Petrol d.d., Ljubljana by activity in accordance with
the Electricity Supply Act, the Gas Supply Act and the Heat Supply from
Distribution Systems Act
10.1 Introduction
The energy part comprises an overview of the financial statements that the Company is
obliged to disclose in accordance with the Electricity Supply Act (Official Gazette of the RS No.
172/2021), the Gas Supply Act (Official Gazette of the RS Nos. 204/2021 and 121/2022) and
the Heat Supply from Distribution Systems Act (Official Gazette of the RS No. 44/2022), which
stipulate that undertakings performing energy activities in the field of electricity or natural gas
or heat supply have to prepare, audit and publish annual financial statements in the manner
prescribed by law for companies, irrespective of their legal form and ownership.
In accordance with Article 66 of the Services of General Economic Interest Act (Official Gazette
of the RS, No. 32/93 and 30/98), the Company has to separately monitor all accounting records
that enable the calculation of costs, expenses and revenue according to the principles
applicable to companies.
According to the provisions of the Electricity Supply Act, the Gas Supply Act and the Heat
Supply from Distribution Systems Act, the annual report shall also include the rules and criteria
based on which assets, liabilities, revenue and expenses are allocated to individual energy
activities.
10.2 Accounting policies for separating financial statements
In separating the financial statements, the principles of prudence and accuracy were taken into
account. The Company maintains separate accounting records for each activity, thus enabling
the close monitoring of all forms of revenue and expenses. At the same time, the Company
discloses in its books fixed assets separately for individual activities.
The Company prepares separate financial statements in the electricity segment for the
following activities:
− electricity generation – energy activity, market activity;
− distribution of electricity (closed distribution system) – energy activity, regulated activity,
acquired the status of a closed distribution system in the area of the Ravne ironworks and
Štore ironworks;
− supply of electricity – energy activity, market activity.
The Company prepares separate financial statements in the natural gas segment for the
following activities:
− the natural gas distribution (distribution system operator) – energy activity, regulated
activity, optional service of general economic interest;
− the natural gas distribution (closed distribution system) – energy activity, regulated activity,
acquired the status of a closed distribution system in the area of the Štore ironworks;
− supply of natural gas – energy activity, market activity.
The Company prepares separate financial statements in the heat segment for the following
activities:
− heat generation – energy activity, regulated activity;
− distribution and supply of heat – energy activity, regulated activity, optional service of
general economic interest.
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The Company also prepares separate financial statements in the municipal and wastewater
treatment segment.
Among other activities, the Company discloses all other marketing activities.
Within the Company, two areas are organised in the energy segment – the area of Energy and
Environmental Systems and the area of Energy Commodity and Electricity Management,
where the listed energy activities are carried out. The areas are organised separately, each
area having its own executive director and its own specifics of organisation.
The Company carries revenues and expenses in orders, cost centres and profit centres.
Assets and liabilities are carried under profit centres. Intangible non-current assets, property,
plant and equipment and investment property that have already been activated are carried
under tasks or cost centres.
Within an individual energy activity, the Company has open profit centres up to the level of an
individual local community or individual energy system, so that we have recognised revenues
and expenses directly on individual activities as much as possible. Each activity has a profit
centre – general, where the total income and expenses for each individual activity are
recorded. The sum of all the income at the profit centres represents the direct revenues of an
individual activity, and the sum of all expenses represents the direct costs of an individual
activity.
Criterion 1:
Direct costs by activity, together with the direct costs at the profit centre – general, are the
basis for the division of indirect income and indirect costs and expenses.
The Energy and Environmental Systems organisational unit supports Energy and
Environmental Systems, where the general costs belonging to the entire area are carried.
Within this area, we perform energy activities: the electricity generation, the distribution of
electricity – closed distribution system, the natural gas distribution (as an open and closed
distribution system), heat generation and heat distribution. In addition to these activities, we
perform the activity of municipal and wastewater treatment. We also perform other energy
marketing activities, which the Company presents in separate financial statements among
other activities.
Criterion 2:
Direct costs by individual activity, together with the direct costs at the profit centre – general,
represent the sum of individual activities performed in Energy and Environmental Systems and
are the basis for the division of indirect costs and expenses carried under support for Energy
and Environmental Systems – 1st coverage for Energy and Environmental Systems.
The Energy Product and Electricity Management organisational unit supports Energy
Commodity and Electricity Management – general, where the general costs belonging to the
entire area are recorded.
Within this area, we perform energy activities: supply of electricity, supply of natural gas. We
also perform other energy marketing activities, which the Company presents in separate
financial statements among other activities.
Criterion 3:
Direct costs by individual activity, together with the direct costs at the profit centre – general,
represent the sum of individual activities performed in the field of Energy Product and Electricity
Management and are the basis for the division of indirect costs and expenses carried under
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the support for Energy Commodity and Electricity Management – 1st coverage for Energy
Commodity and Electricity Management.
The Company has organised support functions, which it defines as support functions for
energy activities in the areas of Energy and Environmental Systems and Energy Commodity
and Electricity Management:
− “Customer Support and Sales-Contact Centre”,
− “Back office”,
− “IT” and “Business intelligence”.
They are recorded by individual cost centres and are first allocated to the Energy and
Environmental Systems and Energy Commodity and Electricity Management organisational
units (and further by individual activity) according to the applied criteria 4 and 5.
Criterion 4:
Support functions, which the Company defines as support functions for Energy and
Environmental Systems and related costs – 2
nd
coverage for Energy and Environmental
Systems are in total:
− Customer support – PO – 95 percent of all costs;
− Customer support – FO – 95 percent of all costs;
− Back office – 95 percent of all costs;
− IT – general – 15 percent of all costs;
− Business Intelligence – 95 percent of all costs.
Sum of costs – 2
nd
coverage for Energy and Environmental Systems represent indirect costs
from the 2
nd
coverage.
Direct costs by individual activity, together with the direct costs at the profit centre – general,
represent the sum of individual activities performed in Energy and Environmental Systems and
are the basis for the division of the indirect costs and expenses carried under the support
functions of Energy and Environmental Systems – 2
nd
coverage for Energy and Environmental
Systems.
Criterion 5:
Support functions, which the Company defines as support functions for Energy Product and
Electricity Management and related costs – 2
nd
coverage for Energy Commodity and Electricity
Management are in total:
− Customer support – PO – 5 percent of all costs;
− Customer support – FO – 5 percent of all costs;
− Back office – 5 percent of all costs;
− IT – general – 1 percent of all costs;
− Business Intelligence – 5 percent of all costs.
Sum of costs – 2
nd
coverage for Energy Commodity and Electricity Management represent
indirect costs from the 2
nd
coverage.
Direct costs by individual activity, together with the direct costs at the profit centre – general,
represent the sum of individual activities performed in the field of Energy Product and Electricity
Management and are the basis for the division of indirect costs and expenses carried under
the support functions of Energy Commodity and Electricity Management – 2
nd
coverage for
Energy Product and Electricity Management.
All costs that belong to other support functions in the Company as a whole or in shares that
are organised in the Company are shown among the other activities of the Company.
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Criterion 6:
Financial expenses for interest on loans are calculated and attributed to individual activities.
The basis for calculating interest is 50 percent of the average value of the non-current assets
of an individual activity at the beginning of the year and at the end of the year. The interest rate
is calculated as the average annual interest rate applicable to the Company for long-term and
short-term loans.
Criterion 7:
The statement of profit or loss was divided into the following steps:
− Sales revenue includes revenue from the sale of goods, revenue from the sale of services,
other sales revenue and internal revenue and is divided by individual activities directly by
recorded revenues (profit centre).
− The cost of goods sold represents the cost of energy commodities sold, goods sold and
materials sold and is carried directly under each activity; the purchase value, which is
carried under the cost centre that is defined as indirect, is distributed by individual activity
according to criteria 1 to 5.
− Costs of materials are all direct costs of materials that relate to an individual activity; each
individual activity also accounts for a proportional share of the indirect costs of materials
with criteria 1 to 5 applied.
− Costs of services include all direct costs of services that relate to an individual activity;
each individual activity also accounts for a proportionate share of the indirect costs of
services with criteria 1 to 5 applied.
− Labour costs are direct labour costs that relate to an individual activity; each individual
activity also accounts for a proportionate share of indirect labour costs with criteria 1 to 5
applied.
− The depreciation and amortisation charge is the direct depreciation charge that relates to
an individual activity; each individual activity also accounts for a proportionate share of the
indirect depreciation charge with criteria 1 to 5 applied.
− Other costs are direct other costs that relate to an individual activity; each individual activity
also accounts for a proportionate share of indirect other costs and indirect internal costs
with criteria 1 to 5 applied.
− Other income is direct other revenue that relates to an individual activity; each individual
activity also accounts for a proportionate share of indirect other revenue with criteria 1 to 3
applied.
− Other expenses are direct other revenue that relate to an individual activity; each individual
activity also accounts for a proportionate share of indirect other expenses with criteria 1 to
3 applied.
− Finance income from dividends paid by subsidiaries, associates and jointly controlled
entities is carried under separate financial statements under the other activities of the
Company.
− Finance income is carried under separate financial statements under the other activities of
the Company.
− Finance expenses, other than finance expenses from accrued interest on long-term and
short-term loans, are carried under separate financial statements under the other activities
of the Company.
− The current tax expense on an individual activity is calculated according to the applicable
tax rate. The difference compared to the total tax charged for the Company is carried under
separate financial statements under the other activities of the Company.
− Deferred tax is carried under separate financial statements under the other activities of the
Company.
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Criterion 8:
The statement of financial position was divided into the following steps:
Non-current (long-term) assets
− Intangible assets are carried directly under individual activities and the indirect part is
recognised among other activities.
− Right-of-use assets are carried directly under individual activities and the indirect part is
recognised among other activities.
− Items of property, plant and equipment are carried directly under individual activities and
the indirect part is recognised among other activities.
− Investment property is carried directly under individual activities and the indirect part is
recognised among other activities.
− Other non-current (long-term) assets are carried under other activities.
Current assets
− Operating receivables are carried directly under individual activities.
− Other current assets are carried under other activities.
Equity
− The called-up capital and capital surplus were determined on 31 December 2015 as the
difference between assets and liabilities at that time.
− The net profit or loss for the year is calculated in the statement of profit or loss for the year
for each activity.
− Other equity items are carried under other activities.
Non-current liabilities
− Provisions for employee post-employment and other long-term benefits are carried under
other activities.
− Other provisions are carried directly under individual activities.
− Deferred income is carried directly under individual activities.
− Deferred income is carried directly under individual activities.
− Financial liabilities that are not non-current financial liabilities from the calculated balance
of long-term loans by individual activity are carried under separate financial statements
under the other activities of the Company.
− Lease liabilities are carried directly under individual activities.
− Operating liabilities are carried directly under individual activities.
− Deferred tax liabilities are carried under other activities.
Current liabilities
− Other financial liabilities, other than current financial liabilities from accrued interest on
short-term loans are carried under the separate financial statements under the other
activities of the Company.
− Lease liabilities are carried directly under individual activities.
− Operating liabilities are carried directly under individual activities.
− Corporate income tax liabilities are carried under other activities.
− Contract liabilities are carried directly under individual activities.
− Other liabilities are carried directly under individual activities.
Criterion 9:
Current and non-current financial liabilities from loans are calculated and attributed to an
individual activity. The basis for calculating the balance of loans is 50 percent of the average
value of the non-current assets of an individual activity at the beginning of the year and at the
end of the year. Of this calculated value of loans, we carry 80 percent of the value among non-
current financial liabilities and 20 percent of the value among current financial liabilities.
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Criterion 10:
The sum of all items of “Non-current (long-term) assets” and “Current assets” represents “Total
assets”.
The sum of “Equity”, “Non-current liabilities” and “Current liabilities” represents the “Total
liabilities”.
If we determine the value of “Assets” as lower than “Liabilities”, the calculated difference is
carried under other receivables by individual activity.
If we determine the value of “Assets” as higher than “Liabilities”, the calculated difference is
carried under other operating liabilities by individual activity.
The criteria apply from the 2020 financial year onwards.
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10.3 Presentation of the financial statements by the activities of Petrol d.d., Ljubljana
10.3-1 Statement of profit or loss by activity
| Municipal | |||||||||||
| Closed | wastewater and | ||||||||||
| Natural gas | Closed natural | electricity | run-off | ||||||||
| distribution | Natural gas | gas distribution | Heat | Electricity | Electricity | distribution | rainwater | ||||
| (in EUR) | system operator | supply | system | Heat generation | distribution | production | supply | system | treatment | Other activities | Total |
| Revenue from contracts with customers | 11,448,148 | 104,430,127 | 549,210 | 6,791,375 | 2,374,822 | 5,729,480 | 1,055,377,429 | 4,097,894 | 3,502,234 | 4,108,828,499 | 5,303,129,218 |
| Cost of goods sold | - | (98,714,061) | - | 922 | (640) | - | (1,016,699,000) | - | - | (3,750,026,086) | (4,865,438,865) |
| Costs of materials | (2,379,790) | (585) | (392,630) | (5,428,734) | (652,508) | (4,689,321) | (7,555) | (1,653,140) | (1,049,928) | (36,246,331) | (52,500,522) |
| Costs of services | (1,263,751) | (56,231) | (22,667) | (658,280) | (334,012) | (375,272) | (953,592) | (225,819) | (806,572) | (141,147,665) | (145,843,861) |
| Labour costs | (1,596,360) | (172,384) | (82,965) | (1,485,242) | (1,197,299) | (593,933) | (922,945) | (870,108) | (806,687) | (97,287,884) | (105,015,807) |
| Depreciation and amortisation | (2,848,318) | (4,303) | (30,119) | (611,316) | (618,179) | (487,350) | (42,465) | (728,100) | (522,037) | (40,547,791) | (46,439,978) |
| Other costs | (778,827) | (352) | (1,216) | (437,120) | (41,738) | (593,226) | (3,398,832) | (76,089) | (32,307) | (29,373,585) | (34,733,292) |
| Gain on derivatives | - | - | - | - | - | - | - | - | - | 207,414,533 | 207,414,533 |
| Loss on derivatives | - | - | - | - | - | - | - | - | - | (152,231,444) | (152,231,444) |
| Other income | 68,455 | - | - | 18,297 | 34,969 | - | - | 1,377 | 298 | 7,045,915 | 7,169,311 |
| Other expenses | - | - | - | - | - | - | - | - | - | (105,178) | (105,178) |
| Operating profit or loss | 2,649,557 | 5,482,211 | 19,613 | (1,810,098) | (434,585) | (1,009,622) | 33,353,040 | 546,015 | 285,001 | 76,322,983 | 115,404,115 |
| Finance income from dividends | |||||||||||
| paid by subsidiaries, associates | |||||||||||
| and jointly controlled entities | - | - | - | - | - | - | - | - | - | 3,766,738 | 3,766,738 |
| Finance income | - | - | - | - | - | - | - | - | - | 66,334,395 | 66,334,395 |
| Finance expenses | (444,328) | (47) | (3,346) | (62,598) | (99,431) | (37,026) | (533) | (137,433) | (40,495) | (76,311,601) | (77,136,838) |
| Net finance expense | (444,328) | (47) | (3,346) | (62,598) | (99,431) | (37,026) | (533) | (137,433) | (40,495) | (9,977,206) | (10,802,443) |
| Profit before tax | 2,205,229 | 5,482,164 | 16,267 | (1,872,696) | (534,016) | (1,046,648) | 33,352,507 | 408,582 | 244,506 | 70,112,515 | 108,368,410 |
| Income tax expense | (418,992) | (1,041,611) | (3,091) | 355,812 | 101,462 | 198,863 | (6,336,977) | (77,630) | (46,456) | (8,294,209) | (15,562,829) |
| Net profit for the year | 1,786,237 | 4,440,553 | 13,176 | (1,516,884) | (432,554) | (847,785) | 27,015,530 | 330,952 | 198,050 | 61,818,306 | 92,805,581 |
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10.3-2 Statement of financial position by activity
| Municipal | |||||||||||
| Closed | wastewater and | ||||||||||
| Natural gas | Closed natural | electricity | run-off | ||||||||
| distribution | Natural gas | gas distribution | Heat | Electricity | Electricity | distribution | rainwater | ||||
| (in EUR) | system operator | supply | system | Heat generation | distribution | production | supply | system | treatment | Other activities | Total |
| ASSETS | |||||||||||
| Non-current (long-term) assets | |||||||||||
| Intangible assets and right to use | |||||||||||
| of leased assets | 36,482,584 | 1,596 | - | 1,956,074 | 5,256,496 | 727,403 | 28,832 | 32,085 | 3,194,208 | 133,479,381 | 181,158,659 |
| Property, plant and equipment | 439,359 | 1,921 | 283,113 | 3,194,963 | 2,960,063 | 2,386,592 | 22,222 | 11,371,116 | 141,908 | 345,144,088 | 365,945,345 |
| Investment property | - | - | - | 30,226 | - | - | - | - | - | 11,102,886 | 11,133,112 |
| Investments in subsidiaries | - | - | - | - | - | - | - | - | - | 555,292,232 | 555,292,232 |
| Investments in jointly controlled entities | - | - | - | - | - | - | - | - | - | 233,000 | 233,000 |
| Investments in associates | - | - | - | - | - | - | - | - | - | 26,610,477 | 26,610,477 |
| Financial assets at fair value through | |||||||||||
| other comprehensive income | - | - | - | - | - | - | - | - | - | 2,117,914 | 2,117,914 |
| Loans | - | - | - | - | - | - | - | - | - | 29,071,795 | 29,071,795 |
| Operating receivables | - | - | - | - | - | - | - | - | - | 8,451,918 | 8,451,918 |
| Deferred tax assets | - | - | - | - | - | - | - | - | - | 9,752,558 | 9,752,558 |
| 36,921,943 | 3,517 | 283,113 | 5,181,263 | 8,216,559 | 3,113,995 | 51,054 | 11,403,201 | 3,336,116 | 1,121,256,249 | 1,189,767,010 | |
| Current assets | |||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | 115,954,817 | 115,954,817 |
| Contract assets | - | - | - | - | - | - | - | - | - | 211,844 | 211,844 |
| Loans | - | - | - | - | - | - | - | - | - | 38,641,992 | 38,641,992 |
| Operating receivables | 31,471,112 | 107,977,372 | 1,165,300 | 3,788,747 | 5,143,157 | 98,324 | 443,659,303 | 16,058,491 | 649,505 | (70,314,001) | 539,697,310 |
| Corporate income tax assets | - | - | - | - | - | - | - | - | - | - | - |
| Financial assets at fair value through | |||||||||||
| profit or loss | - | - | - | - | - | - | - | - | - | 3,882,986 | 3,882,986 |
| Financial assets at fair value through | |||||||||||
| other comprehensive income | 20,139,006 | 20,139,006 | |||||||||
| Prepayments and other assets | - | - | - | - | - | - | - | - | - | 68,415,070 | 68,415,070 |
| Cash and cash equivalents | - | - | - | - | - | - | - | - | - | 33,020,462 | 33,020,462 |
| 31,471,112 | 107,977,372 | 1,165,300 | 3,788,747 | 5,143,157 | 98,324 | 443,659,303 | 16,058,491 | 649,505 | 209,952,176 | 819,963,487 | |
| Total assets | 68,393,055 | 107,980,889 | 1,448,413 | 8,970,010 | 13,359,716 | 3,212,319 | 443,710,357 | 27,461,692 | 3,985,621 | 1,331,208,425 | 2,009,730,497 |
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| Municipal | |||||||||||
| Closed | wastewater and | ||||||||||
| Natural gas | Closed natural | electricity | run-off | ||||||||
| distribution | Natural gas | gas distribution | Heat | Electricity | Electricity | distribution | rainwater | ||||
| (in EUR) | system operator | supply | system | Heat generation | distribution | production | supply | system | treatment | Other activities | Total |
| EQUITY AND LIABILITIES | |||||||||||
| Equity attributable to owners | |||||||||||
| of the controlling company | |||||||||||
| Called-up capital | 16,544,318 | 2,569,303 | (2,474) | 3,597,624 | 1,000,013 | (2,658,811) | 5,794,600 | 4,508,757 | - | 20,887,647 | 52,240,977 |
| Capital surplus | 16,544,318 | 2,569,303 | (2,474) | 3,597,624 | 1,000,013 | (2,658,811) | 5,794,600 | 4,508,757 | - | 49,638,055 | 80,991,385 |
| Legal reserves | - | - | - | - | - | - | - | - | - | 61,749,884 | 61,749,884 |
| Reserves for own shares | - | - | - | - | - | - | - | - | - | 4,708,359 | 4,708,359 |
| Own shares | - | - | - | - | - | - | - | - | - | (2,604,670) | (2,604,670) |
| Other profit reserves | - | - | - | - | - | - | - | - | - | 316,608,074 | 316,608,074 |
| Fair value reserve | - | - | - | - | - | - | - | - | - | 42,782,085 | 42,782,085 |
| Hedging reserve | - | - | - | - | - | - | - | - | - | 15,732,898 | 15,732,898 |
| Retained earnings | - | - | - | - | - | - | - | - | - | 46,342,948 | 46,342,948 |
| Net profit or loss for the year | 1,786,237 | 4,440,553 | 13,176 | (1,516,884) | (432,554) | (847,785) | 27,015,530 | 330,952 | 198,050 | (30,987,275) | - |
| Total equity | 34,874,873 | 9,579,159 | 8,228 | 5,678,364 | 1,567,472 | (6,165,407) | 38,604,730 | 9,348,466 | 198,050 | 524,858,005 | 618,551,940 |
| Non-current liabilities | |||||||||||
| Provisions for employee | |||||||||||
| post-employment and other | |||||||||||
| long-term benefits | - | - | - | - | - | - | - | - | - | 5,934,975 | 5,934,975 |
| Other provisions | - | - | - | - | - | - | - | - | - | 30,835,607 | 30,835,607 |
| Deferred income | - | - | - | 75,602 | 203,333 | 153,000 | - | - | - | 29,089,167 | 29,521,102 |
| Borrowings and other fin. liabilities | 15,126,046 | 1,594 | 113,908 | 2,130,997 | 3,384,894 | 1,260,474 | 18,160 | 4,678,569 | 1,378,568 | 272,588,623 | 300,681,833 |
| Lease liabilities | 39,982 | 409 | - | - | - | - | 4,225 | - | 22,136 | 27,512,220 | 27,578,972 |
| Operating liabilities | 506,968 | - | - | 83,573 | 27,578 | - | - | - | - | (87,151) | 530,968 |
| 15,672,996 | 2,003 | 113,908 | 2,290,172 | 3,615,805 | 1,413,474 | 22,385 | 4,678,569 | 1,400,704 | 365,873,441 | 395,083,457 | |
| Current liabilities | |||||||||||
| Other provisions | - | - | - | - | - | - | - | - | - | 3,397,085 | 3,397,085 |
| Deferred income | - | - | - | - | - | - | - | - | - | 5,461,212 | 5,461,212 |
| Borrowings and other fin. liabilities | 3,781,511 | 398 | 28,477 | 532,749 | 846,224 | 315,118 | 4,540 | 1,169,642 | 344,642 | 216,864,944 | 223,888,245 |
| Lease liabilities | - | - | - | - | - | - | - | - | - | 4,318,028 | 4,318,028 |
| Operating liabilities | 13,249,536 | 94,913,171 | 1,297,800 | 452,150 | 7,313,920 | 7,545,098 | 399,957,912 | 12,264,313 | 2,041,766 | 145,831,683 | 684,867,349 |
| Commodity derivative instruments | - | - | - | - | - | - | - | - | - | 233,737 | 233,737 |
| Corporate income tax liabilities | - | - | - | - | - | - | - | - | - | 18,819,182 | 18,819,182 |
| Contract liabilities | 31,661 | (8,950) | - | 16,575 | 15,979 | - | 93,502 | 702 | - | 16,827,831 | 16,977,300 |
| Other liabilities | 782,478 | 3,495,108 | - | - | 316 | 104,036 | 5,027,288 | - | 459 | 28,723,277 | 38,132,962 |
| 17,845,186 | 98,399,727 | 1,326,277 | 1,001,474 | 8,176,439 | 7,964,252 | 405,083,242 | 13,434,657 | 2,386,867 | 440,476,979 | 996,095,100 | |
| Total liabilities | 33,518,182 | 98,401,730 | 1,440,185 | 3,291,646 | 11,792,244 | 9,377,726 | 405,105,627 | 18,113,226 | 3,787,571 | 806,350,420 | 1,391,178,557 |
| Total equity and liabilities | 68,393,055 | 107,980,889 | 1,448,413 | 8,970,010 | 13,359,716 | 3,212,319 | 443,710,357 | 27,461,692 | 3,985,621 | 1,331,208,425 | 2,009,730,497 |