Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q1 2024 Earnings Presentation
31 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, May 30, 2024
Slide 1: 1Q24 Results Investor Presentation
1Q24 RESULTS INVESTOR PRESENTATION MAY 2024
Slide 2: Welcome to Our Earnings Presentation
Welcome to Our Earnings Presentation Page 03-04 1Q24 FINANCIAL HIGHLIGHTS Page 05-09 INDUSTRY ENVIRONMENT Page 10-20 OPERATING & FINANCIALS RESULTS Page 21-22 Petkim ranked first in the STAR REFINERY Aegean Exporters' Association's Earnings Presentation 1Q24 "Stars of Export 2023" list, both in Page
Slide 3: Financial Highlights
Sales FINANCIAL HIGHLIGHTS ₺16.6 BN 1% YoY EBITDA Net Income ₺187.1 MN 1,1% Margin (113%) YoY ₺833.7 MN 0,34 TL/Share (125%) YoY Earnings Presentation 1Q24 Cash Net Debt ₺4.2 BN 0,7x Current Ratio (9%) QoQ ₺30.2 BN 7,4x Net Debt / EBITDA* 88% YoY *IAS 29 is not applied to this figure. 3
Slide 4: Highlights
2024 Highlights Solid performance marked by continued low volumes despite 01 higher base chemical pricing due to restocking momentum post Red Sea related distruptions Petkim’s average gross unit margin held up well at USD160/ton Low volumes reflecting optimization-focused initiatives and 02 broadly
Slide 5: Industry Environment
INDUSTRY Earnings Presentation 1Q24 ENVIRONMENT Global Petrochemical Market Petrochemical Market in Türkiye 5
Slide 6: Monthly naphtha-ethylene spread and Platts index
Monthly naphtha - ethylene spread (CIF MED spot prices) USD/ton Industry Environment 348 357 296 248 200 217 Ethylene-naphtha spread increased 150 226 115 118 by about 58% from USD113/ton in 200 183 50 91 70 4Q23 to USD179/ton in 1Q24 120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5-year Max-Mi
Slide 7: Key trends in the industry
Industry Environment Key trends in the industry Product groups spread (over naphtha CIF MED) USD/MT Demand weakness and oversupply persists Firming naphtha costs due to pressures of geopolitical tensions in the Middle East 600 Restocking momentum post Red Sea related disruptions 500 Integrated produ
Slide 8: Product groups spread over naphtha
Industry Product groups spread Environment (over naphtha CIF MED), USD/MT Polymers Fibers HDPE LDPE PP PVC MEG ACN PTA DEG 800 550 600 400 400 250 200 0 100 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 -200 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 Earnings Presentation 1Q24
Slide 9: Türkiye's Petrochemical Sector Overview
Türkiye’s Petrochemical consumption in Türkiye (k tons) Petrochemical Domestic consumption Petkim domestic sales Sector Overview 3.000 2.542 2.231 2.285 2.209 2.147 2.500 2.000 1.500 Surplus (k tons) 1.000 Türkiye domestic demand is primarily met by imports 500 226 230 281 248 265 0 Arom 1Q23 2Q23 3
Slide 10: Operating & Financial Results
OPERATING & FINANCIAL RESULTS Earnings Presentation 1Q24 10
Slide 11: Capacity Utilization & Gross Production
Capacity Utilization Capacity utilization rates (%) Thermoplastics Fiber Aromatics Ethylene Other & Gross Production 80% 87% 95% 76% 74% 85% 102% 105% 101% 63% 75% 99% 65% 87% 89% 100% 87% 85% 55% 88% 45% 75% 40% 35% 50% 17% 18% 25% 11% 18% 15% 17% 22% 19% 5% The temporary production 0% 0% 7% -5% 1Q
Slide 12: Petrochemical Product Sales
Petrochemical Product Sales Breakdown of petchem sales (USD mn) Thermoplastics Fiber Aromatics Other Trade Breakdown by percentage in 1Q24 130 131 26% 77 93 Total petchem sales 41% Earnings Presentation 1Q24 $508mn 79 79 12 12 15% 187 208 2% 16% 1Q23 1Q24 Thermoplastics Fiber Aromatics Other Trade 1
Slide 13: Breakdown of Sales
Breakdown of Sales Total volume: Sales volume (k tons) 136 Revenue breakdown (%) 81 55 452k tons 40 25 28 Export 22 23 31 9 33% PVC LDPE HDPE PP ACN Benzene C4 P-X Others Trade Total revenue: Revenue (TRY mn) 3.470 4.230 2.549 Domestic 1.646 67% ₺16,401mn 928 1.075 950 680 478 380 4 12 Exports break
Slide 14: Breakdown of Total COGS
Breakdown of Total COGS COGS breakdown (%) Inventory gain/loss (USD mn) Other Trade Depreciation Labour costs Energy Raw materials Inventory gain/loss Naphtha prices 700 661 631 638 6% 578 585 564 600 560 24% 549 537 549 549 525 529 23% 502 488 6% 500 5% 6% 9% 7% 6 5 5 5 2 9% 400 1 2 1 1 1 1 300 -3
Slide 15: Feedstock vs. Product Prices of Petkim
Feedstock vs. Product Prices of PETKIM Thermoplastics and naphtha spread Petchem unit margins* USD/ton USD/ton 400 1.100 2.400 700 350 1.308 1.245 1.305 1.231 1.266 1.283 300 650 1.203 1.142 1.150 1.112 1.161 900 2.000 1.064 1.035 1.072 1.058 600 217 250 181 184 1.600 700 550 158 200 128 140 1.200 6
Slide 16: Income Statement
PETKIM 1Q24 TRY mn Q1‘23 Q1’24 YoY Δ (%) Income Sales 16,349 16,568 1% Cost of sales (17,937) (16,681) (7%) Statement Gross profit (1.588) (114) %93 Gross profit % (10%) (1%) - Marketing and sales expenses (306) (273) (11%) General administrative expenses (738) (784) 6% Operating profit (2,631) (1,1
Slide 17: Impact of Inflation Accounting on Income Statement
Impact of Inflation Accounting on Income Statement Revenues COGS Gross Profit (TRY bn) (TRY bn) (TRY bn) +2,1 +1,0 16,6 16,7 14,6 -1,1 15,6 13,2 1,4 1,0 14,5 -0,1 4Q23 1Q24 1Q24 (w IAS29) 4Q23 1Q24 1Q24 (w IAS29) 4Q23 1Q24 1Q24 (w IAS29) -TRY700mn depreciation EBITDA Profit Before Tax Net Profit (TR
Slide 18: Naturally Currency Hedged Position Led to EBITDA Improvement
Petkim’s Naturally Currency Hedged Position Led to an Improvement in YoY EBITDA Q124 segments’ results (TRY mn) 113% Yearly Earnings Presentation 1Q24 change in EBITDA (TRY mn) Pricing delta 18 ₺120mn
Slide 19: Balance Sheet
TRY mn 12M’23 3M’24 QoQ Δ (%) PETKIM 3M24 Cash and cash equivalents 4,648 4,226 (9%) Balance Sheet Trade receivable 8,683 8,890 2% Inventory 7,066 5,948 (16%) Other receivables 141 96 (32%) Other current assets 2,859 2,690 (6%) Current assets 23,397 21,849 (7%) Non current assets 86,823 85,251 (2%)
Slide 20: Liquidity Highlights
Liquidity Highlights Maturity profile (USD mn) 7% USD TRY EUR Long term Short term 4% 348 248 USD131 mn 196 137 34 85 6 89% 2024 2025 2026 2027 2028 Cash flow from operations and investment activities* (USD mn) Net debt position* (TRY bn) CFI CFO Net debt position Net debt/EBITDA 74 81 60 100 35 16,
Slide 21: STAR Refinery
STAR REFINERY Earnings Presentation 1Q24 21
Slide 22: STAR Refinery Operating and Financial Highlights
STAR Refinery Operating and Financial Highlights Q1 2024 Figures Capacity utilization Crude processed (yearly) STAR Refinery completed the quarter with a net 113% 13mn tons income of USD181mn, particularly with a positive net income impact in 1Q2024 Product sales Domestic sales 3mn tons 42% Earnings
Slide 23: Sustainability & ESG
SUSTAINABILITY & ESG Earnings Presentation 1Q24 23
Slide 24: Sustainability Strategy: Climate/CO2 Targets
Our Sustainability Strategy Will be Built on Two Pillars - Climate/CO2 Targets Short-term2 Mid-term Long-term 2021-2025 2025-2030 2030 onwards Decarbonization ๏ Implement energy efficiency, ๏ Develop internal carbon pricing ๏ Achieve long term decarbonization approach for future investments to targe
Slide 25: Petkim's ESG Risk Rating Score
Petkim’s ESG Risk Rating Score is 25.4 Best Corporate Governance World Finance 2023 25.4 Medium Risk Sustainalytics ESG Risk Rating 2023 NEGL LOW MED HIGH SEVERE 0-10 10-20 20-30 30-40 40+ Emissions, ๏ Environmental Policy Europe & Effluents and Waste ๏ Environmental Management System Emerging EMEA
Slide 26: Supporting Slides
SLIDES SUPPORTING Earnings Presentation 1Q24 26
Slide 27: Diversified Business Profile Through Ancillary Infrastructure Energy Investments
Diversified Business Profile Through Ancillary Infrastructure Energy Investments ๏ Türkiye’s first privately constructed Refinery ๏ Lower naphtha procurement costs ๏ Target processing capacity of 13m tons p.a. ๏ Replacement of some of the heavy naphtha feedstock with reformate / mixed-xylene ๏ Owned
Slide 28: Petrochemical Complex Flow Chart
Petrochemical Complex Flow Chart Petkim has fully integrated operations LDPE (350,000 ton/year) Bag, greenhouse covers, film, cable, toys, pipes, bottles, hose, packaging HDPE (96,000 ton/year) Construction and water pipes, packaging film, toys, bottles, soft drink crates, barrels Ethylene MEG (89,0
Slide 29: Petkim Stock Performance
PETKIM Stock Performance Unit mn 200 450 400 160 350 300 120 250 200 80 150 100 40 50 0 0 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 Volume PETKM TI Equity XU100 Index Earning Presentation 1Q24 Closing price Market capitaliz
Slide 30: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Petkim Petrokimya Holding A.Ş. (the “Company”) or any member of its group nor should it or any part of it form
Slide 31: petkim.com.tr
petkim.com.tr Earnings Presentation 1Q24 Scan QR Code to See more 31
Petkim Petrokimya Holding A.Ş. — Q1 2024 Earnings Presentation on 6ix