27 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, May 22, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation www.tupras.com.tr 22 May 2024 Hizmete Özel / Confidential
Slide 2: Disclaimer
Disclaimer With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflation accounting provisions. Accor
Slide 3: Q1 2024 – Tüpraş Highlights
Q1 2024 – Tüpraş Highlights Firm Operational Performance Strong Cash Position Million $ $/bbl Tüpraş WACM* • Differentials widened compared to previous quarter, and are still better 21.1 compared to long term averages while 18.7 remaining below of Q1 of the previous 15.7 14.5 year. 11.7 • Even thoug
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q1 2024 – Key Market Highlights
Q1 2024 – Key Market Highlights Brent price increased due to OPEC cut decision and heightened geopolitical risk related to Red Tüpraş’ capacity utilization positively diverged from European and global peers on year-on-year comparison. Sea tensions, Iran – Israel conflict and drone attacks on Russian
Slide 6: Quarterly Crack Margin Comparison ($/bbl)
Quarterly Crack Margin Comparison ($/bbl) Cracks were lower compared to the high base of last year, excluding HSFO, which improved with OPEC+’s cut decision. 5 year range 2024 2023 Diesel Jet Fuel +• Geopolitical tensions in Russia +• Recovery to pre-pandemic with the drone attacks and Red levels in
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Differentials widened in Q1 following the geopolitical tensions. Basrah Heavy continued to provide wider discounts compared to the rest of the slate. 0 -4 Arab Heavy Basrah Heavy -8 Kirkuk CPC Average* -12 OPEC+ Iran OPEC+ Cut disagreement Russia OPEC
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 Q1 2024. • Capacity utilization for Q1 2024 was 82%, higher year on year despite RUP maintenance. Quarterly Production (Million Tons) Capacity Utilization (%) 2022 2023 2024 Crude Oil Semi Product Feedstock To
Slide 10: Product Sales in Q1 2024 (Million Tons)
Product Sales in Q1 2024 (Million Tons) • Tüpraş’ sales are up by 10% compared to Q1 2023 reaching to 7.0 million tons in Q1 2024. • Exports grew by 60% year on year primarily driven by gasoline and high performance of Tupras Trading UK. Total Product Sales Domestic Sales of Selected Products Domest
Slide 11: Electricity Production & Sales in Q1 2024
Electricity Production & Sales in Q1 2024 • 344 GWh Zero Carbon Electricity is sold in Q1’24. • Total Zero Carbon Electricity (ZCE) sales from production increased by almost 2x y-o-y in Q1’24. • Preliminary works on the acquired pre-license of 653 MW has started. Total ZCE Sales EBITDA Total Install
Slide 12: Financials
Financials Hizmete Özel / Confidential
Slide 13: Income Statement (Million TL)
Income Statement (Million TL) Million TL Q1 2024 Q1 2023 % Net Sales 165,473 160,251 3% COGS -152,298 -136,485 12% Gross Profit 13,175 23,766 -45% Operating Expenses -5,853 -5.251 11% Income/Loss from other operations -3,342 -911 267% Operating Profit 3,979 17,604 -77% Inc./Loss from Equity pick ups
Slide 14: Profit Before Tax Bridge (2023 Q1 – 2024 Q1)
Profit Before Tax Bridge (2023 Q1 – 2024 Q1) Weakened crack margins and narrowed differentials combined with scheduled RUP maintenance led to a lower PBT compared to the same period last year. Million TL 22/05/2024 Hizmete Özel / Confidential www.tupras.com.tr 14 Earnings Presentation
Slide 15: Financial Highlights
Financial Highlights EBITDA (mn TL) Net Income* (mn TL) Cash Currency Redemption Schedule Breakdown bn TL bn TL TL Hard Currency 120 120 90.6 80 80 40 40 34.6 2.4 0.4 1.5 0 0 Hard Currency TL 1 year 1-2 years 2-3 years Over 3 years * Excluding minority interest Net Debt & Net Debt / EBITDA Working C
Slide 16: Outlook for 2024
Outlook for 2024 Hizmete Özel / Confidential
Slide 17: 2024 Refinery Maintenance Schedule
2024 Refinery Maintenance Schedule RUP Maintenance Refinery Unit Starting Quarter Duration (weeks) Purpose Planned Preparation and planning phase: 2022 Crude Oil & Q4 5 Planned Vacuum Periodic Desulphurizer Q4 5 Maintenance Planned Maintenance start: March 1 İzmit • Catalyst changes RUP Q1 13 Ongoin
Slide 18: 2024 Expectations
2024 Expectations Tüpraş Crack Margin expectation ~14 $/bbl • ~26 mn tons annual production, ~30 mn tons annual sales and 85-90% average capacity utilization Consolidated Capex ~500 million $ 22/05/2024 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 18
Slide 19: 1Q 2024 Results
1Q 2024 Results Tüpraş Crack Margin ($/bbl) Capacity Utilization (%) Tüpraş Crack Margin 100 16.0 Tüpraş FY Tüpraş FY 80 Target 12.0 Target 60 8.0 14.5 82.1 40 4.0 20 0.0 Q1 2024 0 Q1 2024 Operationals (million tons) Total Capex (mn $) Q1 2024 FY Target 600 500 30 400 26 29 25 200 79 5.9 7.0 0 Produ
Slide 20: www.tupras.com.tr
www.tupras.com.tr 22/05/2024 Hizmete Özel / Confidential www.tupras.com.tr 20 Earnings Presentation
Slide 21: Appendix
Appendix Hizmete Özel / Confidential
Slide 22: Turkish Market, 2M 2024
Turkish Market, 2M 2024 Jan Feb Diesel Jet Fuel1 Milion 3.6 3.6 tons 3.4 3.5 3.5 0.7 0.7 0.7 0.6 1.8 1.7 1.7 1.7 1.8 0.3 0.3 0.4 0.4 0.3 +2.3% 0.2 +3.7% 1.8 1.7 1.7 1.8 2.0 0.3 0.3 0.3 0.3 0.2 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Gasoline 0.6 LPG 0.7 0.5 0.6 0.6 0.5 0.5 0.3 0.5 0.4 0.3
Slide 23: OPET
OPET Opet has 1,865 fuel stations as of March 2024 end. 6% of the fuel stations have EV chargers installed. Opet Sunpet 1,802 1,857 1,866 1,865 1,766 1,615 1,670 1,504 1,560 Market Share* 1,393 1,444 615 626 626 495 563 588 434 463 435 431 19% 427 1,073 1,126 1,152 1,175 1,203 1,214 1,242 1,240 1,23
Slide 24: Q1 Product Yields
Q1 Product Yields Q1 2023 Q1 2024 Other Other Bitumen 2% LPG Bitumen 1% LPG 8% 4% Kok 8% 3% Kok 2% 4% Gasoline 17% Other Gasoline Other white 23% Fuel Oil white Light Fuel Oil 1% Light 6% Black Prod. 2% 13% Black Prod. Distil. Distil. 18% Naphtha 24% 26% 25% 4% Naphtha 0% Mid. Distil. Mid. Distil. 5
Slide 25: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 31.03.2024 31.12.2023 Diff. Diff. (%) Current Assets 212,345 231,451 -19,105 -8 Cash & C. Equivalents 90,587 112,790 -22,203 -20 Trade Receivables 38,753 46,531 -7,778 -17 Derivatives 1,978 2,375 -397 -17 Inventories 62,304 51,162 11,142 22 Pre-paid expenses 1,525 1
Slide 26: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q1 2024 Q1 2023 800 817 350 216 185 155 163 117 28 24 39 49 45 5 13 Diesel Jet Fuel HVGO ASRFO LSFO LPG Naphtha Gasoline MTBE 22/05/2024 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 26
Slide 27: www.tupras.com.tr
www.tupras.com.tr 22/05/2024 Hizmete Özel / Confidential www.tupras.com.tr 27 Earnings Presentation