31 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, Aug 11, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation 11 August 2021 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 2021 Tüpraş Highlights
Q2 2021 Tüpraş Highlights mn/tons Sales Volume Q2 Strong demand improved sales in Q2, backed by higher international 6.2 6.7 6.3 6.9 08 sales 5.3 26% 11% 19% 5.0 26% 06 • Mobility in Turkey edged higher especially in June, led to historically high 22% 16% 04 gasoline sales, signalling much better de
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q2 2021 – Key Market Highlights
Q2 2021 – Key Market Highlights Brent prices maintained its uptrend with improved demand Global gasoline stocks started to move down as summer conditions and supportive OPEC+ decisions season begins, being positive for cracks Global Oil Market 73 75 550 5 year range 2021 66 65 69 Gasoline stocks 62
Slide 6: Quarterly Crack Margin Comparison ($/bbl) 2016 - 2021
Quarterly Crack Margin Comparison ($/bbl) 2016 - 2021 Stock levels of diesel is still elevated resulting in historically lower cracks. Upward trend in gasoline cracks continues. 2021 2020 2016-2020 Min - Max Diesel Due to ongoing weak jet Jet Fuel Air traffic started to fuel demand, refineries regai
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Differentials widened in Q2 with OPEC’s adhesion to its April decision and the trend goes on after OPEC+’s agreement on easing cuts by 2 mb/d between Aug-Dec in July meeting 2 00 -2 Arab Heavy -4 Basrah Heavy Kirkuk -6 Ural -8 Average* -10 Iran OPEC+
Slide 8: Operations
Operations Hizmete Özel / Confidential
Slide 9: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş produced 6.5 million tons in Q2 2021. • Capacity utilization for Q2 2021 was 91% - higher both on y-o-y and q-o-q Quarterly Production (Million Tons) Capacity Utilization (%) 2018 2019 2020 2021 Crude Oil Semi Product Feedstock Total 8 10
Slide 10: Product Sales in Q2 (Million Tons)
Product Sales in Q2 (Million Tons) Tüpraş generated 6.9 million tons of sales in Q2 2021. Mid-distillate sales were strong by resilient domestic demand. Total product sales increased 30% y-o-y, almost reached to pre-pandemic 2019 levels. Total Product Sales Domestic Sales of Selected Products Domest
Slide 11: Financials
Kapak fotolarını yenilesek mi? Financials Hizmete Özel / Confidential
Slide 12: Tüpraş Net Margin and Med Complex Margin Comparison ($/bbl)
Tüpraş Net Margin and Med Complex Margin Comparison ($/bbl) Q2 Margins Tüpraş Net Med Margin 12.3 7.8 • Tüpraş net refining margin was significantly 5.8 better y-o-y, supported with strong inventory 4.6 4.4 effect, better crack margins and lower opex/bbl. 2.8 1.7 0.9 0.3 -0.6 Q2 2017 Q2 2018 Q2 2019
Slide 13: Income Statement (Million TL)
Income Statement (Million TL) EBITDA realized as 2,512 mn TL in Q2 2021. Q2 Q2 H1 H1 Million TL % % 2021 2020 2021 2020 Net Sales 33,688 9,280 263% 53,509 26,219 104% COGS -30,724 -8,390 266% -49,018 -26,239 87% Gross Profit 2,964 890 233% 4,491 -20 - Operating Expenses -691 -520 33% -1,248 -977 28%
Slide 14: Q2 Profit Before Tax Bridge (2021-2020)
Q2 Profit Before Tax Bridge (2021-2020) Despite much narrower differentials and elevated FX, Q2 2021 PBT performed strongly with inventory gains, increase in total sales volume, better crack margins and lower interest expenses. Million TL 11/08/2021 Hizmete Özel / Confidential www.tupras.com.tr 14 E
Slide 15: Financial Highlights
Financial Highlights EBITDA (mn TL) Q4 Net Income¹ (mn TL) Q4 3,242 Q3 3,812 Q3 3,713 Q2 493 Q2 1,887 Q1 992 1,766 Q1 939 3,116 1,457 542 526 1,237 3,778 1,027 186 2,345 -2,494 1,700 3,681 1,528 869 870 738 378 376 -375 956 -155 -760 1,542 545 2,512 2,210 1,495 383 -2,265 1,575 977 1,033 851 1,170 4
Slide 16: Balance Sheet Analysis
Balance Sheet Analysis Net Debt Redemption Schedule (Billion TL) bn TL bn $ In Billion TL In Billion $ TL Hard Currency 20 17.8 6 12.3 5 15 9.8 12.0 12.2 12.5 11.0 11.3 4 9.4 6.5 10 8.4 3 6.2 2 5 2.3 2.3 1.7 1.7 1.9 1 1.4 1.6 1.5 0.1 0.3 1.3 1.3 0 0 Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 M
Slide 17: FX Exposure Management (30 June 2021)
FX Exposure Management (30 June 2021) Consolidated Hard Consolidated Hard Currency Assets Currency Liabilities Million $ Payables & Other Cash Liabilities 192 2,980 Tüpraş continues to employ strict FX Receivables & ST Financial Loans Other Assets policies to mitigate currency risks 147 715 • RUP: 1
Slide 18: Outlook for 2021
Outlook for 2021 Hizmete Özel / Confidential
Slide 19: 2021 Refinery Maintenance Schedule
2021 Refinery Maintenance Schedule Refinery Unit Starting Quarter Duration (weeks) Purpose Status Batman Crude Oil & Vacuum Q1 7* Seasonal Done Crude Unit Q1 9 Done CCR Q1 10 Done Revamp / Opportunity FCC Q1 9 Done Maintenance İzmir Isomerization Q1 10 Done Desulphurizer Q1 11 Done Vacuum Q4 6 Perio
Slide 20: 2021 Expectations
2021 Expectations Med Complex Refining Margin 0.0 - 0.5 $/bbl Tüpraş Net Refining Margin 2.5 - 3.5 $/bbl • 25-26 mt production, 26-27 mt sales and 85 - 90% capacity utilization Consolidated Capex ~200 million $ • ~40% of capex for sustainability focused energy efficiency and environmental projects 1
Slide 21: H1 2021 Results
H1 2021 Results Capacity Utilization (%) Refining Margins ($/bbl) H1 2021 77.8 78% total capacity utilization in H1 2021 Med Margin Tüpraş Net Margin 0 10 20 30 40 50 60 70 80 90 100 Med FY Tüpraş FY Exp Target Operationals 0.0 H1 2021 FY Target 6.9 mn tons of sales and H1 2021 26 26 6.5 mn tons of
Slide 22: www.tupras.com.tr
www.tupras.com.tr 11/08/2021 Hizmete Özel / Confidential www.tupras.com.tr 22 Earnings Presentation
Slide 23: Appendix
Appendix Hizmete Özel / Confidential
Slide 24: Turkish Market, 5M 2021
Turkish Market, 5M 2021 Million Tons Diesel ¹Jet Fuel +9.7% +2.7% 8.7 9.6 1.0 1.0 5M 2020 5M 2021 5M 2020 5M 2021 +13.5% Gasoline LPG -0.4% 0.9 1.4 1.4 0.8 5M 2020 5M 2021 5M 2020 5M 2021 ¹Transit flight consumption included 11/08/2021 Hizmete Özel / Confidential Earnings Presentation www.tupras.com
Slide 25: OPET
OPET Opet has 1,779 fuel stations as of June 2021 end. Opet Sunpet 1,766 1,779 Market Share 1,670 as of May 2021 1,615 1,560 1,504 1,444 1,325 1,356 1,393 495 563 570 17.30 % 9.52 % 1,279 434 463 431 427 435 410 418 White Black 394 Product Product 1,073 1,126 1,152 1,175 1,203 1,209 915 938 966 1,00
Slide 26: Crack Margin Effect on Tüpraş in Q2 (FOB Italy Prices)
Crack Margin Effect on Tüpraş in Q2 (FOB Italy Prices) Product Price ($/ton) Tüpraş Crack Margin ($/bbl) Product Q2 2021 Q2 2020 Production Yields Q2 2021 Q2 2020 LPG 487 199 5,0% -25,5 -11,5 Gasoline 648 263 22,2% 11,0 3,3 Naphtha 575 201 1,3% -4,0 -6,5 Jet Fuel 559 211 11,9% 2,3 -2,4 Diesel 549 26
Slide 27: Q2 Product Yields
Q2 Product Yields Q2 2020 Q2 2021 LPG Other Other3% Bitumen 3% LPG Bitumen Kok 6% 3% 2% 15% Gasoline 4% 18% Gasoline Other Other Kok Fuel Oil 21% white white 4% Light 7% Black Prod. 2% Light Black Prod.2% Distil. Naphtha Fuel Oil 14% Distil. 13% 25% 0% 3% 25% Jet Naphtha 9% 1% Mid. Distil. Mid. Dist
Slide 28: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 30.06.2021 31.12.2020 Diff. Diff. (%) Current Assets 43,653 30,663 12,990 42 Cash & C. Equivalents 19,365 19,825 -460 -2 Trade Receivables 6,005 1,736 4,269 246 Derivatives 420 380 40 10 Inventories 15,065 7,701 7,364 96 Pre-paid expenses 313 234 80 34 Other Current
Slide 29: Tüpraş and Med Margins ($/bbl)
Tüpraş and Med Margins ($/bbl) Average Margins Tüpraş Net Margin Med Margin 10 9.3 8 6 4.6 3.7 3.3 4 1.7 1.3 2 1.1 0.6 0.0 0 -0.2 -2 2018 2019 2020 H1 2020 H1 2021 Gross Inventory Clean Gross Clean NET Net ($/bbl) Med Margin Margin Effect Margin Margin Margin Q2 2021 8.8 1.8 7.0 2.8 4.6 0.3 H1 2021
Slide 30: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q2 2021 Q2 2020 346 240 228 130 118 99 56 20 25 0 0 4 0 0 0 0 Diesel Jet Fuel HVGO ASR F. Oil LSFO Naphtha Alkylate MTBE 11/08/2021 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 30
Slide 31: www.tupras.com.tr
www.tupras.com.tr 11/08/2021 Hizmete Özel / Confidential www.tupras.com.tr 31 Earnings Presentation