Petrol (PETG) Q2 2024 earnings summary

Executive summary

• Operations aligned with plans despite negative petroleum product sales at most Slovenian stations due to regulation; EBITDA reached EUR 123.7 million, up year-over-year and above plan.

• Increased fuel volumes in all key markets except EU, with growth in electricity and natural gas sales and customer base.

• Regulatory changes in Slovenia and Croatia impacted margins, but cost control and segment diversification supported results.

Financial highlights

• Revenue from contracts with customers: EUR 2.95 billion, down 14% year-over-year due to lower energy commodity prices.

• Gross profit: EUR 320.6 million, up 2% year-over-year; EBITDA: EUR 123.7 million, up 6%.

• Net profit: EUR 52.1 million, down 1% year-over-year; operating profit: EUR 71.7 million.

• Net debt reduced to EUR 412.9 million; equity at EUR 920.8 million as of June 30, 2024.

• Earnings per share: EUR 1.20; book value per share: EUR 22.07.

Outlook and guidance

• 2024 targets: sales revenue EUR 5.8 billion, gross profit EUR 705.6 million, EBITDA EUR 304.6 million, net profit EUR 156.5 million.

• Regulatory margin increases in July 2024 expected to support year-end objectives, but margins remain unsustainably low for long-term growth.

• EUR 130 million planned investments, with 44% for energy transition projects; low margins constrain investment capacity.