The Slovenia Times

Petrol says price regulation to affect annual results


Ljubljana - Fuel price regulation in Slovenia and Croatia will affect energy company Petrol's business in the first half of the year, so the Slovenian group does not expect to achieve the planned results, its management says in a statement posted on Tuesday on the website of the Ljubljana Stock Exchange, where Petrol stock has already lost 3.6% today.

The Slovenian company posted the statement after the management's report on the impact of price regulation was discussed by the supervisory board on Monday.

Petrol expects the group's gross profit to be by EUR 53 million lower than planned, EBITDA will drop by EUR 79 million and net profit by EUR 54 million.

The supervisors tasked the management to take all the necessary steps to get reimbursed for the damage resulting from "a disproportionate measure of regulation of retail prices of petroleum products".

In the first six months, Petrol's sales of motor fuels in Slovenia were higher than planned due to significantly lower prices than in neighbouring countries.

However, the company was forced to sell bellow cost, making a loss on every litre sold. It stresses that it sold below cost for over 90% of the time when prices were capped.

The management will thus prepare a supplementary business plan for 2022 and inform the public about the figures when it releases its January-June financials.

For entire 2022, Petrol planned a gross profit of EUR 643.9 million, EBITDA should reach EUR 297.8 million and net profit EUR 158.3 million.

Petrol notes that it submitted a EUR 51.3 million claim to the government for the loss of income from regulation in the period between 15 March and 30 April, and expects the state to meet its obligation in full as soon as possible.

The damage and loss of profit continued after 11 May, when the government capped fuel prices again, until today, when a new two-week pricing model kicked in.

Petrol intends to submit a claim for this period to the government as soon as the damage has been calculated.

The company is also worried about the government's planned measures to also regulate electricity and natural gas prices, which will further affect its business.

In Croatia, Petrol's business will be affected by the capping of fuel prices outside motorways as of today for two weeks.

The energy company says it will continue to take the necessary measures to protect its interests while providing uninterrupted fuel supply.


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