LUKOIL MACEDONIA and LUKOIL CROATIA: How does the company operate in two different markets?

LUKOIL MACEDONIA has been one of the most significant players in the oil derivatives market in North Macedonia for more than two decades. With continuous investments in the development of the sales network, the quality of fuels, the modernization of gas stations and the improvement of services, LUKOIL has managed to build a recognizable brand and a loyal customer base both in the Macedonian market and in the markets of neighboring countries .

According to available data from the Energy Regulatory Commission , today LUKOIL is the second largest chain of gas stations in North Macedonia and one of the drivers of competition in the domestic market .

With around 40 gas stations spread across the country, the company has a significant impact on fuel supply, but also on setting modern standards in the retail sale of petroleum products.

Precisely for this reason, LUKOIL MACEDONIA deservedly found itself among the companies that are part of the family of 200 LARGEST AND MOST SUCCESSFUL , as one of the companies that successfully overcome the challenges of the unstable energy market and manage to ensure continuity in operations.

A market that remains dependent on global developments

The last few years have shown that the oil derivatives sector is one of the most sensitive and is almost always "first hit" by global economic and geopolitical developments.

The war in Ukraine, disrupted supply chains, high inflation, and volatile crude oil prices have created serious challenges for companies across the region.

After the turbulent years of 2022 and 2023, the market gradually began to stabilize during 2024. Although crude oil prices continued to fluctuate, they moved within significantly more predictable ranges than in previous years, allowing companies to better plan their purchases and costs.

The situation is further specific for North Macedonia, as the country does not have its own crude oil production and is almost entirely dependent on imports. This means that any major price movement on world stock markets is almost immediately reflected on the domestic market – which in turn affects all other segments of the economy .

Given that crude oil and a large portion of oil derivatives are traditionally traded in US currency, this means that domestic companies are also exposed to the risk of movements in the US dollar exchange rate.

For these reasons, it becomes clear that the performance of companies in this industry does not depend solely on their sales strategy or organizational efficiency, but to a large extent on factors over which they have no direct influence.

Stable demand and strong competition

Despite numerous challenges, the domestic market remained relatively stable during 2024. Fuel demand did not experience major fluctuations, and supply functioned without significant interruptions.

North Macedonia is still dominated by a few large companies with developed retail networks. If we look closely at the way they operate, it is clear that competition is most often driven by the quality of services, additional content at gas stations, loyalty programs and pricing policies.

Although the country follows global trends and the number of electric vehicles is gradually growing, and European policies are increasingly encouraging the use of alternative fuels, diesel remains the most common fuel in Macedonia.

The reasons for this are well known – the large number of diesel cars, the dominance of freight transport and the significant share of commercial vehicles in the total vehicle fleet.

This means that the traditional business of selling gasoline and diesel remains the main source of income for all companies in the sector , and LUKOIL Macedonia, as a company whose primary activity is the sale of petroleum derivatives, does not deviate from this norm.

Revenue growth and significant profit improvement

In such conditions, the financial results that LUKOIL MACEDONIA achieved in 2024 deserve special attention and analysis within the framework of the 200 LARGEST AND MOST SUCCESSFUL project.

The company ranked 21st on the ranking of the largest companies in North Macedonia and 77th among the most successful companies .

During 2024, LUKOIL MACEDONIA achieved total revenues of 9,410,011,522 denars , while profit before tax reached 261,094,812 denars .

Compared to the previous year, revenues grew by 5.89 percent , which is a solid result for an industry in which growth most often depends on the movement of fuel prices and total consumption and , as we mentioned at the very beginning, on external factors that cannot be predicted.

Even more impressive is the fact that pre-tax profit increased by as much as 64.37 percent, which represents growth more than ten times faster than revenue growth .

It is one of the most important indicators of the quality of operations, as it shows that the company has not only increased its financial result through higher turnover, but also through more efficient management of operating costs, better organization, and more efficient use of resources.

The pre-tax profit margin in 2024 was around 2.77 percent, which is a solid result for a company operating in a sector with relatively low trade margins and high price competition.

Calculated in euros, according to an average exchange rate of approximately 61.5 denars per euro, LUKOIL MACEDONIA generated revenues of approximately 153 million euros in 2024, while profit before tax amounted to approximately 4.25 million euros.

The company employed an average of 545 people, which further confirms its role as one of the largest employers in the oil derivatives trade sector.

LUKOIL MACEDONIA vs. LUKOIL CROATIA – What does the regional comparison show?

When LUKOIL MACEDONIA's financial results are placed in a broader regional context, it becomes clear that the company is achieving results that exceed the size of the domestic market.

Although Macedonia is one of the smallest economies in the region, with limited consumption and a relatively small population, LUKOIL manages to maintain a strong competitive position and be one of the key players in the oil derivatives sector.

Unlike Macedonia, Croatia has a significantly larger market. The country has almost twice as many inhabitants, a developed tourism industry that generates huge additional demand for fuel in the summer months, as well as much larger transit traffic. All these factors naturally create conditions for companies operating there to achieve significantly higher revenues.

On the other hand, competition in Croatia is far more pronounced than in North Macedonia. The market is led by large regional companies such as INA, which has a dominant position, and PETROL DOO, Zagreb, a Slovenian group that has significantly expanded its presence on the Croatian market in recent years.

In such an environment, LUKOIL Croatia must compete with companies that have much greater financial and market capacities.

Interestingly, despite the differences in the size of the two markets, LUKOIL has an almost identical retail network. In Macedonia, the company has around 40 gas stations, while in Croatia it has around 44 sales facilities.

This shows that the two companies have similar physical sales capacity, but operate in completely different economic conditions.

According to publicly available financial reports, LUKOIL Croatia generated revenues of approximately 339 million euros in 2024, which is about 2.2 times more than LUKOIL MACEDONIA's revenues, which amounted to approximately 153 million euros .

At first glance, this difference seems significant, but when considering the size of the Croatian market, the number of inhabitants, tourist traffic and total fuel consumption, it can be concluded that this relationship is completely expected.

Different markets – different dynamics

The comparison of the growth dynamics between the two companies is also interesting.

LUKOIL Croatia achieved significantly higher revenue growth than LUKOIL MACEDONIA in 2024. The Croatian company's revenue increased by 34.71 percent, while the Macedonian company's revenue grew by 5.89 percent.

However, the numbers show another interesting aspect.

At LUKOIL MACEDONIA, profit before tax grew by 64.37 percent, or more than ten times faster than revenue growth.

Such a ratio most often indicates that the company has managed to improve operational efficiency, better control costs, and manage its resources more effectively.

On the other hand, at LUKOIL Croatia, the growth in results was largely supported by significantly higher sales volumes, which is expected in a market with much higher fuel consumption.

It is important to note, however, that these two companies cannot be completely directly compared in terms of profitability, as the publicly available financial data is not identical.

For LUKOIL MACEDONIA, pre-tax profit is available, while for LUKOIL Croatia, net profit, i.e. profit after tax, is most often reported. Therefore, a direct comparison of profit margins would require data calculated on the same basis.

Good positioning in the domestic market

Despite operating in a significantly smaller market, LUKOIL MACEDONIA manages to maintain its position as the second largest gas station chain in the country and one of the leaders in the competition in the sector.

The company successfully maintains its sales network, invests in the modernization of gas stations, offers additional services to consumers and continuously works to improve the user experience.

The financial results for 2024 show that the company has not only managed to increase turnover, but also significantly improve operating efficiency, which is one of the most important indicators of long-term stability.

In a situation where the energy sector remains exposed to numerous global risks – from geopolitical tensions, through crude oil price fluctuations, to the accelerated energy transition – such results are further confirmation that the company is successfully adapting to changing market conditions.

Although LUKOIL Croatia operates in a significantly larger market and generates more than twice the revenue of LUKOIL MACEDONIA, the comparison shows that the Macedonian company is successfully using its position on the domestic market. Stable revenue growth, significant profit increase and improved operational efficiency place it among the most successful companies in the oil derivatives trading sector in Macedonia.

At the same time, the regional comparison confirms that market size is not the only factor that determines the quality of operations. Efficient management, cost optimization, a developed sales network and consumer trust are factors that can significantly improve the competitiveness of a company, regardless of the size of the economy in which it operates.

Given the achieved results and the continuous presence on the domestic market, LUKOIL MACEDONIA remains one of the companies that successfully confirms its position among the largest and most successful business systems in the country.