Annual Report 2013 Annual Report of the Petrol Group and Petrol D.D., Ljubljana 2013
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ANNUAL REPORT 2013 ANNUAL REPORT OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA 2013 Petrol, Slovenska energetska družba, d.d., Ljubljana Dunajska cesta 50, 1527 Ljubljana Phone: +386 1 47 14 232 Fax: +386 1 47 14 660 www.petrol.si Published by: Petrol d.d., Ljubljana Content and graphic design: SM JWT Studio Marketing Editing and production: SM JWT Studio Marketing Photos: Primož Korošec, Petrol d.d., Ljubljana archive. February 2014 [Annual Report Petrol 2013] 2 3 [Annual Report Petrol 2013] [Statement of the Management Board] Pursuant to Article 60a of the Companies Act, members of the Management Board and the Supervisory Board of Petrol d.d., Ljubljana represent that the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for the year 2013, including the cor- porate governance statement, has been prepared and published in accordance with the Companies Act, Financial Instruments Market Act and International Financial Reporting Standards. As provided in Article 110 of the Financial Instruments Market Act, members of the Management Board of Petrol d.d., Ljubljana, which comprises Tomaž Berločnik, President of the Management Board, Rok Vodnik, Member of the Management Board, Janez Živko, Member of the Management Board, and Samo Gerdin, Member of the Management Board/Worker Director, declare that to the best of their knowledge and belief: ∙ the financial report of the Petrol Group and Petrol d.d., Ljubljana for the year 2013 has been drawn up in accordance with Internati- onal Financial Reporting Standards 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 companies included in the consolidation as a whole; ∙ the business report of the Petrol Group and Petrol d.d., Ljubljana for the year 2013 gives a fair view of the development and results of the Company’s operations and its financial position, including the description of material risks that the company Petrol d.d., Lju- bljana and other companies included in the consolidation are exposed to as a whole. Ljubljana, 17 February 2014 Samo Gerdin Janez Živko Tomaž Berločnik Rok Vodnik Member of the Member of the President of the Member of the Management Board/Worker Director Management Board Management Board Management Board 4 5 [Annual Report Petrol 2013] [Contents] · Statement of the Management Board. 4 BUSINESS REPORT 2013 . 9 · Business highlights of 2013. 10 · Letter from the President of the Management Board . 12 BUSINESS PERFORMANCE IN 2013 . 15 · Strategic orientations . 16 · The Petrol Group in its region. 18 · The management and governance system . 19 · Analysis of business performance in 2013. 26 · Events after the end of the accounting period. 29 · Petrol’s shares. 30 · Business risks. 34 BUSINESS ACTIVITIES. 43 · Oil and merchandise sales . 44 · Key impacts on operations. 44 · Sales performance . 46 · Procurement and logistics . 49 · Gas and heat . 51 · Electricity . 53 · Environmental and energy solutions. 54 SUSTAINABLE DEVELOPMENT. 57 · Sustainable development . 58 · Employees . 59 · Measurement of customer satisfaction . 63 · Quality control. 65 · Investments. 69 · Information technology . 71 · Environmental protection . 73 · Social responsibility. 75 THE PETROL GROUP . 79 · The Petrol Group companies . 80 · The parent company . 81 · Subsidiaries. 82 · Jointly controlled entities . 87 · Associates . 88 REPORT OF THE SUPERVISORY BOARD . 91 · Successful operations and efficient supervision. 92 FINANCIAL REPORT 2013 . 97 6 7 [Annual Report Petrol 2013] BUSINESS REPORT 2013 On 10 December 2013 we opened the Dul service station next to the A2 motorway (Ljubljana–Obrežje). This is already the th 476 service station of the Petrol Group. Come see us! 8 9 [Annual Report Petrol 2013] [Business highlights of 2013] Number of service stations Volume of petroleum products sold 500 476 3.0 462 2.77 441 454 450 2.54 2.5 2.38 400 2.35 350 2.0 300 250 1.5 200 million tons 1.0 Results Index 150 THE PETROL GROUP UM 2013 2012 2013 / 2012 Number of service stations 100 0.5 Net sales EUR million 3,947.3 3,754.0 105 50 Gross profit EUR million 337.6 328.3 103 0 0.0 Operating profit EUR million 93.8 84.9 110 2010 2011 2012 2013 2010 2011 2012 2013 Net profit EUR million 52.8 53.9 98 Equity EUR million 467.7 433.7 108 Total assets EUR million 1,620.3 1,571.5 103 1 EBITDA EUR million 133.5 123.0 109 Revenue from the sale of merchandise Operating profit EBITDA / Average fixed assets % 16.5 15.4 108 472.2 474.8 EBITDA / Gross profit % 39.6 37.5 106 480 100.0 93.8 441.7 Operating costs / Gross profit % 74.0 76.8 96 440 421.5 90.0 84.9 81.0 Net debt / Equity2 1.13 1.34 85 400 80.0 3 360 Earnings per share EUR 25.6 26.2 98 70.0 320 63.0 Share price as at period end EUR 218.0 236.4 92 60.0 280 Volume of petroleum products sold million tons 2.8 2.5 109 240 50.0 Volume of liquefied petroleum gas sold thousand tons 68.5 63.5 108 EUR million EUR million 200 40.0 Volume of natural gas sold million m3 121.8 128.8 95 160 30.0 Electricity sold TWh 4.9 2.4 201 120 20.0 Revenue from the sale of merchandise EUR million 474.8 472.2 101 80 10.0 Investments in fixed assets EUR million 86.1 117.4 73 40 Number of service stations as at period end 476 462 103 0 0.0 2010 2011 2012 2013 2010 2011 2012 2013 Number of employees (including at third-party managed service stations) as at period end 3,945 3,818 103 1 EBITDA = Operating profit + Depreciation and amortisation net of depreciation of environmental fixed assets 2 Net debt / Equity = (Non-current and current financial liabilities − Cash and cash equivalents) / Equity 3 Earnings per share = Net profit for the year attributable to owners of the controlling company / Weighted average number of ordinary shares issued, excluding own shares EBITDA Breakdown of the Petrol Group’s investments in 2013 160.0 4% Other activities 140.0 133.5 123.0 Oil and merchandise 120.0 115.6 45% sales in Slovenia 100.0 95.8 80.0 EUR million 60.0 40.0 Oil and merchandise sales in SE Europe 20.0 19% 0.0 2010 2011 2012 2013 32% Energy operations 10 11 [Annual Report Petrol 2013] Efficient purchasing and logistics are important competitive ad- A testament to the good work performed by our employees is a vantages of Petrol and a guarantee of uninterrupted and timely series of awards, notably the European and global communica- supply. In 2012 already, Petrol greatly increased the safety and tion awards: EMErald and Gold Quill for the Code of Conduct reliability of its supply chain for fuel in Slovenia and in the wider and Values of Petrol and the Primus award for excellent man- region, at the same time enabling the development and boost- ager communication. ing of trading activity in petroleum products in the neighbouring markets. This has already yielded results, as the fuel from the I am proud that Petrol – as a group of the future – has been Sermin storage facility has been successfully sold to Central Eu- built on good and open mutual relations. I am certain that only ropean countries. partnership and trust allow us to realise our mission and at the same time achieve business excellence and success. The re- Comprehensive energy supply was a priority of the Petrol Group’s sults and the progress, and above all the internal reshuffling operations in 2013 as well. Natural and liquefied petroleum gas, accomplished in 2013 are the outcome of all of our team work two purest fossil fuels of the highest quality, are supplied to cus- and cooperation. tomers through networks and gas storage tanks. Liquefied pe- troleum gas is becoming ever more popular as motor fuel and is In 2013 the sales revenue of the Petrol Group totalled EUR 3.9 already available at 157 service stations. Petrol has been gaining billion or 5 percent more than in 2012, and its gross profit was ground in electricity supply and trading in Slovenia and in the wid- EUR 337.6 million, up 3 percent over 2012. Operating profit er region. In 2013 Petrol supplied electricity to over 30 thousand stood at EUR 93.8 million, having grown by 10 percent from [Letter from the President of the households, increased sales to industry consumers and intensi- 2012. Net profit amounted to EUR 52.8 million or 2 percent fied its involvement in the international electricity market. Wood less than in 2012. Management Board] as an energy product used for heating has been re-establishing its prominent position. Petrol supplies several Slovene munici- A stable dividend policy supporting the long-term maximisa- palities with the heat produced from wood biomass. Significant tion of shareholder returns is one of the main business commit- Dear shareholders, business partners and co-workers, The economic crisis, which is reflected in diminished purchasing energy and environmental savings are achieved through renova- ments of the Petrol Group. In 2013 a dividend of EUR 10.0 per power of the population and the price of motor fuels, which was tions of boiler rooms, electricity and heat cogeneration and ef- share was paid for the 2012 business year. Every day, Petrol consolidates its position of a modern energy mostly higher than in the neighbouring countries, had a negative ficient production of heat.