Slovenia’s Petrol Reports Profit More Than Tripled in 2010

Petrol Group d.d., Slovenia’s biggest energy company, said 2010 profit more than tripled after a loss from its units wasn’t repeated. Shares surged.

Net income soared to 35.5 million euros ($50 million) from 10.4 million euros a year earlier, the Ljubljana-based company said in a statement to the city stock exchange. Revenue rose 20 percent to 2.8 billion euros, the company said.

“Last year, sales of oil products have been very good and we didn’t have to write down the value of our assets, especially in Istrabenz (ITBG),” Aleksander Salkic, Petrol’s spokesman said by telephone today.

Petrol in 2007 bought a third of Istrabenz Group d.d., a holding company with interests in food, energy and tourism that was struggling with debt repayments.

The Slovenian company, which focuses on business in the Balkans, may benefit from an accord with the Russia’s OAO Gazprom Neft. The two companies signed an agreement to cooperate in the supply and distribution of oil products in southeastern Europe during a recent visit by Premier Vladimir Putin to Slovenia.

“Results are slightly above our expectations,” Milan Smiljanic, head of trading at Ljubljana-based brokerage Perspektiva d.d. said in a telephone interview. The company owns Petrol shares. “The deal with Gazprom Neft is also likely to have a positive effect for Petrol.”

Petrol rose the most in almost two years in Ljubljana. The stock advanced 25.05 euros, or 10.9 percent, to close at 259 euros at the Ljubljana stock exchange, the biggest gain since June 2009. That gives Petrol a market value of 541.4 million euros.

To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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