Jugopetrol recorded a significant increase in profitability during the first half of 2026, with stronger fuel sales, improved procurement conditions and higher demand from aviation, marine and retail customers supporting a sharp rise in earnings.
The Montenegrin petroleum-products distributor reported net profit of €9.48 million for January-June 2026, compared with approximately €3.4 million in the same period of 2025. The increase of around €6.1 million lifted profit to almost 2.8 times last year’s level. Revenue increased from €111 million to approximately €156 million, representing growth of more than 40 per cent. The company also recorded an 8 per cent increase in physical fuel volumes, indicating that higher earnings were supported by stronger sales activity rather than only by changes in fuel prices.
Operating profit rose from approximately €4 million to €11.2 million, while the operating margin expanded from around 3.6 per cent to 7.2 per cent. The net profit margin increased from approximately 3.1 per cent to 6.1 per cent.
Stronger sales across key business segments
Jugopetrol attributed the first-half performance to increased sales across major customer categories, the opening of new petrol stations, improved supply agreements, the return of previous wholesale customers and higher demand from aviation and nautical tourism. Inventory management also contributed to earnings during a period of uncertainty in international oil markets. Geopolitical tensions in the Middle East increased concerns over crude oil and refined-product supply, prompting customers to increase precautionary stocks.
The company expanded its strategic reserves while using the regional supply capabilities of majority shareholder HELLENiQ ENERGY to manage procurement and product availability.
HELLENiQ Energy International owns 54.35 per cent of Jugopetrol, while the remaining shares are held by minority investors. Jugopetrol shares trade on the Montenegro Stock Exchange under the ticker JGPK. Retail sales increased by 5 per cent, supported by higher mobility, precautionary purchases and the opening of a petrol station on the Bar–Boljare motorway.
The company operates its retail network under the EKO brand and has expanded additional services at stations, including convenience retail, cafés, car washes, lubricants and electric-vehicle charging options. Commercial and industrial fuel sales benefited from stronger construction activity, including demand from infrastructure projects, coastal development, residential construction and tourism investments.
Aviation and marine fuel drive volume growth
Aviation fuel was the fastest-growing segment during the first six months of 2026. Jet-fuel sales increased by 27 per cent as low-cost airlines expanded operations, introduced new routes and increased flight frequencies to Montenegro’s airports. Additional low-cost capacity in Podgorica and new connections to European destinations increased demand for aircraft refuelling services.
Marine fuel sales to ships and yachts increased by 8 per cent. Jugopetrol linked the growth primarily to the removal of excise duties on fuel supplied to private yachts, which improved Montenegro’s competitiveness as a Mediterranean bunkering destination.
The measure affected demand linked to nautical centres including Porto Montenegro, Portonovi, Luštica Bay, the Port of Kotor and other coastal locations. Higher yacht fuel sales also support related spending on marina services, technical maintenance, crew services, provisions, restaurants, transport and accommodation.
Costs rise with expanded operations
Jugopetrol’s higher activity was accompanied by increased operating expenses. Total costs rose from €105.1 million to €142.6 million, mainly due to higher fuel purchasing costs and increased sales volumes. Employee-related expenses increased from approximately €1.5 million to €1.7 million. Revenue increased by about €45 million, while operating expenses grew by approximately €37.5 million, contributing to stronger operating leverage during the reporting period. The company ended June with accumulated retained earnings of approximately €35.2 million, providing capacity for potential dividends, retail-network investment, storage improvements and working-capital financing.
Liquidity affected by inventory and expansion
The company’s liquidity indicators weakened during the period. The quick ratio declined from 1.55 to 0.95, while the cash ratio fell from 0.59 to 0.32. Jugopetrol attributed the decline to investment in strategic fuel stocks, infrastructure and expansion of the retail network. The company’s first-half balance sheet also reflected the repayment of a long-standing value-added tax receivable from the state.
Jugopetrol’s VAT claim decreased from €22.8 million at the end of 2025 to €12.9 million at the end of June 2026, indicating that the company collected close to €10 million during the reporting period. The receivable accumulated after the state stopped refunding overpaid VAT in March 2021. Management later reported that the remaining confirmed VAT credit was collected in July 2026.
Future growth linked to transport, tourism and energy transition
Jugopetrol’s first-half results were supported by several sectors connected to Montenegro’s wider economic activity, including tourism, aviation, maritime transport, construction and consumer mobility. Fuel demand from aviation and marine tourism remains closely linked to seasonal activity, while construction-related sales depend on the broader investment cycle. Inventory gains can also vary depending on future petroleum price movements.
The company’s longer-term strategy is also affected by the gradual electrification of transport and EU climate-policy alignment. Jugopetrol’s existing network, storage infrastructure and commercial relationships provide a platform for potential expansion into electric charging, alternative fuels, convenience retail and broader energy services. The company’s first-half earnings, stronger sales volumes and recovery of the VAT receivable provide additional financial capacity for future investment while maintaining its balance sheet position.
