Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q2 2024 Earnings Presentation
31 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, August 2024
Slide 1: 2Q24 Results Investor Presentation
2Q24 RESULTS INVESTOR PRESENTATION AUG 2024
Slide 2: Welcome to Our Earnings Presentation
Welcome to Our Earnings Presentation Page 03-04 2Q24 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 2Q24 "Stars of Export 2023" list, both in Page
Slide 3: Financial Highlights
Sales FINANCIAL HIGHLIGHTS ₺18.7 BN 4% QoQ EBITDA Net Income ₺698 MN 4% Margin 244% QoQ ₺1.8 BN 0,67 TL/Share 97% QoQ Earnings Presentation 2Q24 Cash Net Debt ₺5.3 BN 0,7x Current Ratio 16% QoQ ₺31.9 BN 6,4x Net Debt / EBITDA* 5% QoQ *IAS 29 is not applied to this figure. 3
Slide 4: 2Q24 Highlights
2Q24 Highlights 01 Solid performance marked by high co-product prices despite high raw material costs Petkim’s average gross unit margin was USD131/ton 02 Higher trade contribution with higher volume on price advantageous products USD14.2mn trading gross profit achieved 03 Largely strong and stabili
Slide 5: Industry Environment
INDUSTRY Earnings Presentation 2Q24 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 Ethylene-naphtha spread 200 217 decreased by about 21% from 226 200 115 150 118 183 91 USD179/ton in 1Q24 to USD142/ton in 120 132 50 70 112 118 2Q24 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5
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 Deepening geopolitical tensions in the Middle East 600 Elevated freight costs 500 Profitability remains thin, realigning with that suffered in previous downturn
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 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 -200 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 Earnings Presentation 2Q24
Slide 9: Türkiye's Petrochemical Sector Overview
Türkiye’s Petrochemical Petrochemical consumption in Türkiye (k tons) Sector Overview Domestic consumption Petkim domestic sales 3.000 2.542 2.285 2.336 2.147 2.209 2.500 2.000 1.500 Surplus (k tons) 1.000 Türkiye domestic demand is primarily met by imports 500 230 281 248 265 248 0 Arom 2Q23 3Q23 4
Slide 10: Operating & Financial Results
OPERATING & FINANCIAL RESULTS Earnings Presentation 2Q24 10
Slide 11: Capacity Utilization & Gross Production
Capacity Utilization Capacity utilization rates (%) Thermoplastics Fiber Aromatics Ethylene Other & Gross Production 87% 95% 76% 74% 76% 85% 105% 63% 75% 99% 101% 102% 65% 89% 100% 87% 85% 55% 87% 91% 45% 75% 35% 50% 17% 18% 25% 40% 11% 9% 15% 17% 22% 19% 23% 5% With the resolution of temporary 0% 7
Slide 12: Petrochemical Product Sales
Petrochemical Product Sales Breakdown of petchem sales (USD mn) Thermoplastics Fiber Aromatics Other Trade Breakdown by percentage in 2Q24 140 180 15% 92 85 35% Total petchem sales Earnings Presentation 2Q24 84 $565mn 79 13 23 32% 222 4% 197 14% 1Q24 2Q24 Thermoplastics Fiber Aromatics Other Trade 1
Slide 13: Breakdown of Sales
Breakdown of Sales Total volume: Sales volume (k tons) 150 Revenue breakdown (%) 80 76 476k tons 30 28 31 20 22 23 15 1 Export PVC LDPE HDPE PP ACN MEG Benzene C4 P-X Others Trade 42% Total revenue: Revenue (TRY mn) 3.580 5.920 Domestic 2.884 58% 1.351 ₺18,542mn 897 732 1.127 714 666 650 17 4 Export
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 700 638 609 6% 596 595 585 564 600 560 549 549 549 30% 529 537 23% 525 502 500 488 6% 6% 7% 5% 5 5 9% 8% 400 2 1 2 1 1 1 2 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 2.400 750 1.100 350 1.355 1.376 1.347 2.000 1.283 1.280 1.209 700 300 900 650 208 250 1.600 600 700 194 197 200 550 1.200 696 127 150 639 677 662 646 98 500 578 500 800 450 86 100 300 65
Slide 16: Income Statement
PETKIM 2Q24 TRY mn Q1‘24 Q2’24 QoQ Δ (%) Income Sales 17,961 18,708 4% Cost of sales (18,084) (18,128) 0% Statement Gross profit (123) 579 (571%) Gross profit % (1%) 3% - Marketing and sales expenses (296) (332) 12% General administrative expenses (850) (801) (6%) Operating profit (1,268) (554) (56%
Slide 17: Impact of Inflation Accounting on Income Statement
Impact of Inflation Accounting on Income Statement Revenues COGS Gross Profit (TRY bn) (TRY bn) +2.1 (TRY bn) +0.7 18.7 18.0 -1.4 18.1 16.0 14.6 2.0 15.6 1.0 0.6 1Q24* 2Q24* 2Q24 (w IAS29) 1Q24* 2Q24* 2Q24 (w IAS29) 1Q24* 2Q24* 2Q24 (w IAS29) -TRY729mn depreciation -0.7 EBITDA Profit Before Tax Net
Slide 18: EBITDA Bridge and Segment Results
EBITDA improved mainly due to positive pricing delta, FX and volume & efficiency Q224 segments’ results (TRY mn) 244% Yearly Earnings Presentation 2Q24 change in EBITDA (TRY mn) Pricing delta 18 ₺89mn
Slide 19: Balance Sheet
TRY mn 3M’24 6M’24 QoQ Δ (%) PETKIM 6M24 Cash and cash equivalents 4,581 5,332 16% Balance Sheet Trade receivable 9,637 9,409 (2%) Inventory 6,448 7,428 15% Other receivables 104 43 (59%) Other current assets 2,916 2,661 (9%) Current assets 23,686 24,873 5% Non current assets 92,417 90,598 (2%) As v
Slide 20: Liquidity Highlights
Liquidity Highlights Maturity profile (USD mn) USD TRY EUR Long term Short term 15% 398 378 USD162 mn 52% 33% 72 167 34 6 51 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 16,1x Earnings Pres
Slide 21: STAR Refinery
STAR REFINERY Earnings Presentation 2Q24 21
Slide 22: STAR Refinery Operating and Financial Highlights
STAR Refinery Operating and Financial Highlights Q2 2024 Figures Capacity utilization Crude processed (yearly) STAR Refinery completed the quarter with a net 113% 13mn tons income of USD273mn, particularly with a positive net income impact in 2Q2024 Product sales Domestic sales 2,9mn tons 43% Earnin
Slide 23: Sustainability & ESG
SUSTAINABILITY & ESG Earnings Presentation 2Q24 23
Slide 24: Our Sustainability Strategy Built on Two Pillars
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 ๏ Develop internal carbon pricing ๏ Achieve long term decarbonization ๏ Implement energy efficiency, 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 2024 NEGL LOW MED HIGH SEVERE 0-10 10-20 20-30 30-40 40+ Emissions, ๏ Environmental Policy Europe & Effluents Emerging EMEA and Waste ๏ Environmental Management System
Slide 26: Supporting Slides
SLIDES SUPPORTING Earnings Presentation 2Q24 26
Slide 27: Diversified Business Profile Through Ancillary Investments
Diversified Business Profile Through Ancillary Infrastructure Energy Investments ๏ Türkiye’s first privately constructed refinery ๏ Lower naphtha procurement costs ๏ Target processing capacity of 13mn tons p.a. ๏ Replacement of some of the heavy naphtha feedstock with reformate / mixed-xylene ๏ Incr
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 Earnings Presentation 2Q24 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 Closing price Market capitali
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 2Q24 Scan QR Code to See more 31
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