30 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, Aug 15, 2022
Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation 15 August 2022 Hizmete Özel / Confidential
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by variables and changes in und
Slide 3: Q2 2022 – Tüpraş Highlights
Q2 2022 – Tüpraş Highlights Domestic Product Sales Volume (1000 tonnes) Strong sales trend continued 4000 16% 40% Q2 2021 Q2 2022 • White products posted double-digit growth rates year on year, indicating 3000 20% better demand dynamics during post-pandemic. 2000 26% 17% • Jet fuel demand continued
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q2 2022 – Key Market Highlights
Q2 2022 – Key Market Highlights Increase in Brent Prices in Q2, while OPEC+ continued to miss target Global demand supported crack in high season, while refined product production volumes inventories continued to decline in Q2 Global Oil Market mn bbl/d $/bbl mn 42 119 124 140 bbl Jan Feb Mar Apr Ma
Slide 6: Quarterly Crack Margin Comparison ($/bbl)
Quarterly Crack Margin Comparison ($/bbl) Pent up demand coinciding with supply issues emanating from Russia-Ukraine War and increasing refining costs led to record high mid-distillate & gasoline cracks in Q2’22. Diesel Jet Fuel 2017-2019 • Decreasing Russian 2017-2019 • Air traffic continues to 202
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Average differentials widened despite the fact that heavy grades became more expensive in Q2 while crude oil demand was strong due to continued self-sanctioning in Europe. 0 -4 Arab Heavy Basrah Heavy -8 Kirkuk CPC Average* -12 Russia Iran OPEC+ Cut O
Slide 8: Operations
Operations Hizmete Özel / Confidential
Slide 9: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş produced 7.1 million tons in Q2 2022. • Capacity utilization for Q2 2022 was 100%, higher both on q-o-q and y-o-y. Quarterly Production (Million Tons) Capacity Utilization (%) 2019 2020 2021 2022 Crude Oil Semi Product Feedstock Total 8 9
Slide 10: Product Sales in Q2 2022 (Million Tons)
Product Sales in Q2 2022 (Million Tons) • Tüpraş generated 7.3 million tons of sales in Q2 2022, 6% higher y-o-y. • Y-o-y growth in domestic jet fuel, gasoline, and diesel sales were strong with robust demand. Total Product Sales Domestic Sales of Selected Products Domestic Product Sales Internation
Slide 11: Financials
Financials Hizmete Özel / Confidential
Slide 12: Income Statement (Million TL)
Income Statement (Million TL) Q2 Q2 H1 H1 Details of Income Statement Million TL % % 2022 2021 2022 2021 • Y-o-y increase in Opex is mainly Net Sales 135,785 33,688 303% 212,326 53,509 297% driven by logistics expenses COGS -118,048 -30,724 284% -189,285 -49,018 286% increasing to 1 bn TL due to hig
Slide 13: Profit Before Tax Bridge (Q2 2021 – Q2 2022)
Profit Before Tax Bridge (Q2 2021 – Q2 2022) Strong crack margins and wider differentials boosted PBT despite elevated energy expenses and TL devaluation. Million TL 15/08/2022 Hizmete Özel / Confidential www.tupras.com.tr 13 Earnings Presentation
Slide 14: Financial Highlights
Financial Highlights EBITDA (mn TL) Q1 Q2 Q3 Q4 Net Income¹ (mn TL) Q1 Q2 Q3 Q4 20,734 11,507 13,688 16,066 10,611 8,908 3,319 7,267 3,713 1,887 1,392 1,766 4,039 526 -2,494 988 542 3,778 545 2,739 1,027 186 1,700 738 378 870 376 896 956 -375 -760 2,210 2,512 4,668 1,495 383 -155 -2,265 1,033 851 97
Slide 15: Balance Sheet Analysis
Balance Sheet Analysis Net Debt bn TL In Billion TL In Billion $ bn $ Redemption Schedule (Billion TL) 2.2 TL Hard Currency $ equivalent 12.0 12.7 40 11.2 37.5 8.4 9.4 30 0.8 0.8 0.3 0.0 0.0 0.0 -0.3 20 1.3 12.9 13.8 2.3 1.4 0.8 0.9 10 4.6 -5.4 0.2 0.1 0.6 Dec-18 Dec-19 Dec-20 Dec-21 Mar-22 Jun-22 0
Slide 16: FX Exposure Management (30 June 2022)
FX Exposure Management (30 June 2022) Consolidated Hard Consolidated Hard Currency Assets Currency Liabilities Million $ Payables & Other Cash Liabilities 1,640 5,058 Tüpraş continues to employ strict FX Receivables & Other Assets ST Financial Loans policies to mitigate currency risks 192 312 • RUP:
Slide 17: Outlook for 2022
Outlook for 2022 Hizmete Özel / Confidential
Slide 18: 2022 Refinery Maintenance Schedule
2022 Refinery Maintenance Schedule Refinery Unit Starting Quarter Duration (weeks) Purpose Status Crude Oil & Vacuum Q1 15 Done Batman Seasonal Crude Oil & Vacuum Q4 4 Planned Vacuum Q1 6 Periodic Done Lube Complex Q1 7 Maintenance Done İzmir Crude Oil Q4 9 Planned CCR & Isom. & Desulp. Revamp Q4 9
Slide 19: 2022 Expectations
2022 Expectations Med Complex Refining Margin Expectation Withdrawn Tüpraş Net Refining Margin 13 - 14 $/bbl • 26-27 mt production, 28-29 mt sales and 90 - 95% capacity utilization Consolidated Capex ~200 million $ • ~45% of capex for sustainability focused energy efficiency and environmental projec
Slide 20: H1 2022 Results
H1 2022 Results Refining Margins ($/bbl) Capacity Utilization (%) 18.0 Tüpraş Net Margin 16.0 14.0 Tüpraş FY 100 Target 90 92% total capacity 12.0 80 utilization in H1 2022 10.0 70 8.0 60 6.0 13.0 50 92.0 13.8 mn tons of 40 4.0 30 sales and 13.1 mn 2.0 20 tons of production 0.0 10 in H1 2022 0 H1 20
Slide 21: Strategic Transition Plan - Latest Updates
Strategic Transition Plan - Latest Updates ZERO CARBON ELECTRICITY BIOFUELS The takeover process of Entek, our We are in the installation phase to produce first breakthrough in the field of sustainable aviation fuel, We will use zero-carbon electricity generation, Honeywell's UOP Ecofining™ technolo
Slide 22: www.tupras.com.tr
www.tupras.com.tr 15/08/2022 Hizmete Özel / Confidential www.tupras.com.tr 22 Earnings Presentation
Slide 23: Appendix
Appendix Hizmete Özel / Confidential
Slide 24: Turkish Market, 5M 2022
Turkish Market, 5M 2022 Q1 Apr + May Diesel Million Jet1 Tons 9.3 9.6 9.5 8.7 1.9 1.6 4.1 3.2 4.0 4.1 + 58.3% - 1.1% 0.8 1.0 1.0 0.7 0.1 0.4 5.2 5.6 5.6 5.4 1.0 0.9 0.9 0.6 2019 2020 2021 2022 2019 2020 2021 2022 Gasoline LPG 1.2 1.6 1.4 1.4 1.4 0.9 0.9 0.8 0.5 0.7 0.5 0.6 0.6 0.4 0.2 0.4 + 34.5% -0
Slide 25: OPET
OPET Opet has 1,827 fuel stations as of June 2022 end. Opet Sunpet 1,827 1,766 1,802 Market Share 1,670 as of May 2022 1,615 1,560 1,504 1,444 588 604 1,393 563 1,325 1,356 463 495 18.8% 24.2% 434 431 427 435 410 418 White Black Product Product 1,073 1,126 1,152 1,175 1,203 1,214 1223 915 938 966 1,
Slide 26: Q2 Product Yields
Q2 Product Yields Q2 2021 Q2 2022 Other Other Bitumen 3% LPG Bitumen 2% LPG Kok 6% 3% 3% Kok 7% 4% Gasoline 3% Other Gasoline Fuel Oil 21% Other white 22% 7% Black Prod. 2% Fuel Oil white Light 9% Black Prod. 2% Light 17% Distil. Distil. 26% 19% Naphtha 26% Naphtha 1% 1% Mid. Distil. Jet Mid. Distil
Slide 27: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 30.06.2022 31.12.2021 Diff. Diff. (%) Current Assets 120,342 65,429 54,913 84 Cash & C. Equivalents 37,503 20,400 17,103 84 Trade Receivables 26,999 13,517 13,482 100 Derivatives 2,601 3,818 -1,217 -32 Inventories 46,901 23,756 23,145 97 Pre-paid expenses 374 186 18
Slide 28: Tüpraş and Med Margins ($/bbl)
Tüpraş and Med Margins(*) ($/bbl) Average Margins Tüpraş Net Margin Med Margin 44.7 19.8 5.7 3.7 1.7 1.3 1.6 -0.2 2019 2020 2021 Q2 2022 Gross Inventory Clean Gross Clean NET Net ($/bbl) Med Margin Margin Effect Margin Margin Margin Q2 2022 25.6 0.0 25.6 19.8 19.8 44.7 H1 2022 19.3 2.2 17.1 10.9 13.
Slide 29: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q2 2022 Q2 2021 375 253 240 130 114 93 56 35 20 0 0 4 0 0 0 0 Diesel Jet Fuel HVGO ASR F. Oil LSFO Naphtha Alkylate MTBE 15/08/2022 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 29
Slide 30: www.tupras.com.tr
www.tupras.com.tr 15/08/2022 Hizmete Özel / Confidential www.tupras.com.tr 30 Earnings Presentation