30 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, Jul 31, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation 31 July 2023 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 2023 – Tüpraş Highlights
Q2 2023 – Tüpraş Highlights Crack Margin* Energy cost/bbl EBITDA (mn $) $/bbl Strong Profitability with Lower Cost Base 30 1,043 993 1,200 25 880 20 644 735 1,000 • Lower cost base with the decrease in energy costs and wider 15 800 10 600 differentials resulted in strong EBITDA generation 5 0 -5 400
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q2 2023 – Key Market Highlights
Q2 2023 – Key Market Highlights Brent prices moved higher in April with OPEC’s production cut Services-led growth continues in Europe while contraction in industrial decision and kept in sideways after macro-related sell-off activities persist, leading to longer balance in mid-distillate inventories
Slide 6: Quarterly Crack Margin Comparison ($/bbl)
Quarterly Crack Margin Comparison ($/bbl) Mid-distillate cracks weakened from the high base of previous year while gasoline margins remained strong with better demand dynamics 5 year range 2022 2023 Diesel Jet Fuel 45.3 45.4 -• Diesel cracks were lower 44.9 -• Jet fuel cracks were 42.2 compared to h
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Differentials narrowed in Q2 with OPEC’s cut decision. As Basrah Heavy provides wider discounts compared to rest of the slate, average differentials continued to be supportive for operational profitability in Q2 0 -4 Arab Heavy Basrah Heavy -8 Kirkuk
Slide 8: Operations
Operations Hizmete Özel / Confidential
Slide 9: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş produced 5.9 million tons in Q2 2023. • Capacity utilization for Q2 2023 was 83%, due to continued maintenances in 2nd quarter Quarterly Production (Million Tons) Capacity Utilization (%) 2021 2022 2023 Crude Oil Semi Product Feedstock To
Slide 10: Product Sales in Q2 2023 (Million Tons)
Product Sales in Q2 2023 (Million Tons) • Tüpraş generated 7.3 million tons of sales in Q2 2023, remained flat y-o-y. • Domestic sales were 4% higher y-o-y in Q2 2023 with better gasoline, jet fuel and bitumen sales. Total Product Sales Domestic Sales of Selected Products Domestic Product Sales Inte
Slide 11: Electricity Production & Sales in Q2 2023
Electricity Production & Sales in Q2 2023 • Entek generated 318 GWh electricity in Q2 2023. • Total Zero Carbon Electricity (ZCE) sales from production decreased by 23% y-o-y in Q2 2023 due to lower hydrology Total Production (GWh) Total ZCE Sales from Production (GWh) Entek’s Installed Capacity 387
Slide 12: Financials
Financials Hizmete Özel / Confidential
Slide 13: Income Statement (Million TL)
Income Statement (Million TL) Q2 Q2 H1 H1 Million TL % % 2023 2022** 2023 2022** Net Sales 104,405 137,484 -24% 197,232 215,130 -8% COGS -86,931 -119,367 27% -165,761 -191,317 13% Gross Profit 17,474 18,118 -4% 31,471 23,813 32% Operating Expenses -2,644 -2,080 -27% -4,849 -3,161 -53% Income/Loss fr
Slide 14: Profit Before Tax Bridge (Q2 2022 – Q2 2023)
Profit Before Tax Bridge (Q2 2022 – Q2 2023) Favorable differentials, lower energy costs, higher inventory gain and net interest income partially offset the negative impact coming from weaker cracks that were lowered from high base of last year Million TL 31/07/2023 Hizmete Özel / Confidential www.t
Slide 15: Financial Highlights
Financial Highlights EBITDA (mn TL) Net Income1 (mn TL) 55,587 41,045 5,024 1,103 16,431 10,799 27,340 14,067 11,554 13,965 17,766 3,495 12,136 526 17,589 6,748 4,039 545 16,366 15,204 7,217 -2,494 2019 2020 2021* 2022* 2023 2019 2020 2021* 2022* 2023 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Current Rati
Slide 16: Balance Sheet Analysis
Balance Sheet Analysis Net Debt/Cash Cash Currency Redemption Schedule bn TL In Billion TL In Billion $ bn $ bn TL Breakdown TL Hard Currency 50 46.4 12.0 8.4 9.4 bn TL 40 25 23.6 -0.9 -0.5 -0.4 30 20 1.4 1.3 0.9 20 15 10.2 10 -8.6 -10.1 10 5 2.1 0.5 -16.5 0 0 Dec-19 Dec-20 Dec-21* Dec-22* Mar-23 Ju
Slide 17: Outlook for 2023
Outlook for 2023 Hizmete Özel / Confidential
Slide 18: 2023 Refinery Maintenance Schedule
2023 Refinery Maintenance Schedule Refinery Unit Starting Quarter Duration (weeks) Purpose Planned Crude Oil & Vacuum Q1 7 Completed Batman Seasonal Crude Oil & Vacuum Q4 9 Planned FCC Q1 7 Completed Crude Oil, Vacuum, CCR, Q1 9 Revamp Completed İsom. İzmir Lube Complex Q1 9 Completed Crude Oil , Va
Slide 19: 2023 Expectations
2023 Expectations Tüpraş Net Refining Margin 10$/bbl -11$/bbl • 24-25 mn tons annual production, 29-30 mn tons annual sales and 85 - 90% average capacity utilization Consolidated Capex ~350 million $ • ~60% of capex for sustainability focused energy efficiency and environmental projects 31/07/2023 H
Slide 20: H1 2023 Results
H1 2023 Results Refining Margins ($/bbl) Capacity Utilization (%) 100 18.0 Tüpraş Net Refining Margin Tüpraş FY 90 16.0 80 Target 14.0 70 12.0 60 Tüpraş FY 10.0 Target 50 8.0 40 76.7 6.0 30 4.0 9.6 20 2.0 10 0.0 0 H1 2023 H1 2023 Operationals Total Capex (mn $)(*) H1 2023 FY Target 400 350 300 30 Ot
Slide 21: Strategic Transition Plan - Latest Updates
Strategic Transition Plan - Latest Updates ZERO CARBON ELECTRICITY BIOFUELS Total Installed Capacity (MW) 15 Hydro 66 Basic engineering studies were completed to produce sustainable aviation fuel, We Wind will use Honeywell's UOP Ecofining™ Solar technology in our İzmir refinery. 264 Applications Wi
Slide 22: www.tupras.com.tr
www.tupras.com.tr 31/07/2023 Hizmete Özel / Confidential www.tupras.com.tr 22 Earnings Presentation
Slide 23: Appendix
Appendix Hizmete Özel / Confidential
Slide 24: Turkish Market, 5M 2023
Turkish Market, 5M 2023 Q1 Apr May Diesel Jet1 Million 9.6 9.9 Tons 9.3 9.5 8.7 1.8 2.1 2.4 2.1 1.6 1.9 2.0 1.5 2.2 2.0 1.9 2.0 1.6 0.4 0.5 +5.0% 1.0 1.0 0.4 +23.0% 0.4 0.4 0.1 0.4 5.2 5.6 5.6 5.4 5.6 0.0 0.2 0.2 1.0 0.9 0.9 1.1 0.6 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Gasoline LPG 1.8
Slide 25: OPET
OPET Opet has 1,876 fuel stations as of June 2023 end. Opet Sunpet Total 1,857 1876 1,766 1,802 Market Share 1,670 as of May 2023 1,615 1,560 1,504 1,444 615 633 1,356 1,393 563 588 463 495 19.7% 22.3% 434 431 427 435 418 White Black Product Product 1,242 1243 1,073 1,126 1,152 1,175 1,203 1,214 938
Slide 26: Q2 Product Yields
Q2 Product Yields Q2 2022 Q2 2023 Other Other Bitumen 2% LPG Bitumen 2% LPG Kok 7% 3% 4% 12% 3% Gasoline Gasoline Kok Other Other 20% 22% 4% white Fuel Oil white Light 9% Black Prod. 2% Light Fuel Oil Black Prod. 2% Distil. Distil. 18% 19% 4% 25% Naphtha 26% Naphtha 1% 1% Mid. Distil. Mid. Distil. 5
Slide 27: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 30.06.2023 31.12.2022* Diff. Diff. (%) Current Assets 128,564 119,711 8,853 7 Cash & C. Equivalents 46,409 49,770 -3,361 -7 Trade Receivables 30,631 21,418 9,213 43 Derivatives 1,892 3,597 -1,705 -47 Inventories 39,450 36,046 3,404 9 Pre-paid expenses 601 749 -148 -
Slide 28: Tüpraş and Med Margins ($/bbl)
Tüpraş and Med Margins(*) ($/bbl) Average Margins Tüpraş Net Margin Med Margin 28.2 28.3 16.5 9.6 5.7 1.3 1.6 -0.2 2020 2021 2022 2023 Gross Inventory Clean Gross Clean NET Net Processed ($/bbl) Med Margin Margin Effect Margin Margin Margin Barrel Q2 2023 17.8 1.7 16.0 8.1 9.8 23.9 44.8 H1 2023 19.0
Slide 29: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q2 2023 Q2 2022 738 413 338 250 253 93 114 80 60 39 35 0 0 0 0 0 0 Diesel Jet Fuel HVGO ASR F. Oil LSFO LPG Naphtha Gasoline MTBE 31/07/2023 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 29
Slide 30: www.tupras.com.tr
www.tupras.com.tr 31/07/2023 Hizmete Özel / Confidential www.tupras.com.tr 30 Earnings Presentation