Petrol’s Five-Year management strategy announces that in 2025, the Group is planned to achieve EBITDA in the amount of EUR 336m (including announced acquisition of Crodux), with net profit amounting to EUR 180m. The net debt to EBITDA ratio is planned to be less than 1.
On Friday Petrol Group announced its strategy for the period 2021-2025 where it recognises the importance of sustainable development. In its strategy Petrol presents that in the 2021 -2025 period its goal is a transition to low-carbon energy company, via partnership with employees, social environment, industry, public sector and households. Petrol’s Five-Year management strategy announces that in 2025, the Group is planned to achieve EBITDA in the amount of EUR 336m, the figure including announced acquisition of Crodux. In 2019 Petrol’s its EBITDA was at EUR 197m, while in 2021 Petrol plans to achieve EBITDA of EUR 214m without announced acquisition of Crodux Petrol Group. EBITDA in the amount of EUR 336m for 2025 gives us a CAGR of 9.4% when we compare it to 2019. In 2025 Petrol Group plans to achieve net profit of EUR 180m, also 6-year CAGR of 9.4%. The net debt to EBITDA ratio is planned to be less than 1.The business plan is based on the assumption that Petrol Group will remain the first choice for energy transition projects in the region by offering integrated services with high added value. In 2025 Petrol estimates to achieve energy savings of 73 GWh for end-customers through energy renovation projects, while in 2020 it achieved energy savings of 51 GWh for end-customers.
Petrol Group also aims to develop and strengthen their presence in the supply and sale of natural gas and electricity, in the sale of liquefied petroleum gas and in energy efficiency projects. In renewable electricity production, Petrol Group plans to position itself to become a major supplier in SE Europe. Renewables production segment plays a particular role in the energy transition. At the end of 2025, Petrol plans to have facilities with 160 MW of production power for electricity from renewable energy sources. This is 78% more than in 2020 when they had facilities with production power of 35 MW. Facilities are located in Bosnia & Herzegovina (hydroelectric power), where electricity is produced at four small hydroelectric plants on rivers Jezernica and Kozica as well as at the small hydroelectric power plant Jeleč. Also in Croatia (wind power) Petrol produces electricity at Glunča wind power plant, while in 2020 the construction of 30 MW Ljubač wind power plant was launched.
Another important pillar of Petrol’s sustainable and innovative business is the development of new solutions in the field of electric mobility and mobility services. When it comes to mobility, Petrol Group focuses on two segments. The first segment is linked to the charging infrastructure, which means setting up, managing, and maintaining the infrastructure for the charging of electric vehicles as well as providing the charging service. The second segment is comprised of mobility services, such as operating leases, fleet electrification and fleet management services. By 2025 the Group plans to have 1,575 charging points with the charging infrastructure for electric vehicles, while at the end of 2020 Group had 171 charging points. In the period this gives average annual growth rate of 56%.
In this strategic period, Petrol Group plans to remain present in all markets, focusing on:
· Slovenia, where Petrol plans to consolidate its position of a leading energy company and partner in the energy transition;
· Croatia, where Petrol plans to use their sales network to expand its portfolio of customers in the field of energy products and energy transition services and invest in renewable electricity production; · Serbia, where Petrol plans to increase its share in the energy product sales market.
The dividend policy target for the strategic period 2021 – 2025 is 50% of the Group’s net profit, which is somewhat above previous years’ pay-out ratio. As a reminder, in 2020 Petrol paid dividend of EUR 22 per share, giving a dividend yield of 6.5% at the time of the announcement. This was at 43% of Groups net profit while pay-out ratio was around 40% in previous years. Here you can see Petrol’s historical dividends.
Investments are expected to total EUR 698m in the period 2021 – 2025, of which 35 percent will be dedicated to the energy transition. So Petrol Group expects to invest EUR 247m from 2021-2025 in energy transition and for carbon footprint reduction, while EUR 451m is aimed at expansion and upgrade of the retail network and digitalisation.
