Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q2 2023 Earnings Presentation
27 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, Aug 9, 2023
Slide 1: 2Q23 Results Investor Presentation
2Q23 Results Investor Presentation 1
Slide 2: 2Q23 financial highlights
2Q23 financial highlights TL10.6bn TL196mn TL221mn Sales 15% QoQ EBITDA 1,8% margin Net 0,05 TL/share 318% QoQ Income 69% QoQ TL10.9bn TL19.2bn Cash 1.3x current ratio Net 16,1x net debt/ EBITDA 90% QoQ Debt 19% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Ongoing weak demand and oversupply remain key concerns
Ongoing weak demand and oversupply remain key concerns 2Q23 highlights Reduction in naphtha prices supported the margins Petkim average gross unit margins improved from USD33/ton to USD56/ton in 2Q23 Optimization-based strategies have been used for efficient operations and profitability Petkim’s pro
Slide 4: Industry Environment
Industry Environment Global petrochemical market Petrochemical market in Turkey Hizmete Özel (Dış Taraflar) 4
Slide 5: Industry environment
Industry environment Monthly naphtha - ethylene spread (CIF MED spot prices) Monthly average Platts index* USD/tonne USD/tonne 1.320 1.532 2.600 1.249 1.424 1.380 2.400 1.218 2.200 1.200 1.123 2.000 899 872 942 1.001 1.005 1.800 900 781 783 819 812 876 1.600 1.040 754 681 1.400 600 937 928 854 1.200
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 1050 Demand weakness and over-supply persists 950 Deterioration in competitiveness and large destocking 850 750 The weakness in demand stemmed from inflationary pressures 650 and hikes in interest ra
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT 1700 Polymers Fibers 1500 1400 1100 1100 800 700 500 300 200 -100 HDPE LDPE PP PVC MEG ACN PTA DEG Aromatics Others 1100 900 1080 700 780 500 480 300 180 100 -120 Benzene Paraxylene OrthoXylene PGP Crude C4 PA PY-GAS Source: S
Slide 8: Türkiye’s petrochemical sector overview
Türkiye’s petrochemical sector overview Türkiye domestic demand is primarily met by imports Surplus (k ton) PVC LDPE HDPE PP ACN MEG PTA PA P-X 0 -200 -400 -600 Deficit 2Q22 3Q22 4Q22 1Q23 2Q23 (k ton) Petrochemical consumption in Türkiye (k ton) Products market share (cumulative) Domestic consumpti
Slide 9: Operating and Financial Results
Operating and Financial Results Hizmete Özel (Dış Taraflar) 9
Slide 10: Capacity utilization and gross production
Capacity utilization and gross production Capacity utilization rates (%) Gross production (k ton) 100% 87% 638 516 366 572 636 120% 81% 80% 90% 800 100% 102% 105% 80% 90% 93% 66% 700 87% 70% 87% 88% 80% 48% 600 308 87% 60% 70% 80% 500 213 69% 54% 50% 194 60% 74% 400 163 50% 52% 40% 98 106 21% 40% 30
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 2Q23 Total petchem sales: USD510mn 392 381 24% Thermoplastics 106 36% Fiber 124 126 92 73 211 Aromatics 84 57 82 87 Other 39 45 77 101 25 11 18 Trade 22 17% 266 217 170 182 182 3% 20% 2Q22 3Q22 4Q22 1Q23 2Q23
Slide 12: In 2Q23, Petkim achieved TL 10,499mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 477k ton TL10,499mn 126 2.530 2.069 84 1.673 59 42 40 41 854 32 535 769 845 504 17 22 13 348 357 7 1 8 In 2Q23, Petkim achieved TL 10,499mn sales Exports breakdown via 477k ton sales Export Revenue (TL mn) Total export: TL4,702mn Reve
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 2Q23 total COGS: 2Q23 inventory loss: TL10,210mn USD11mn 890 2% 4% 1% 901 845 801 752 26% 24% Other 733 665 45% 701 599 596 634 614 631 629 637 555 572 49% 44% 2% 3% Trade 601 532 6% 4% 10% 9% 501 1% Depreciation 2% 401 6% 1% 3%
Slide 14: Feedstock vs. product prices of Petkim
Feedstock vs. product prices of Petkim Thermoplastics and naphtha spread Petchem unit margins* USD/tonne USD/tonne 500 3.200 1.100 1.949 1.400 450 1.857 2.800 1.682 1.000 1.200 400 1.559 2.400 1.325 900 350 1.304 1.356 1.266 1.245 1.308 1.305 1.231 1.203 293 1.000 1.059 260 300 2.000 1.198 800 1.012
Slide 15: PETKIM 2Q23 income statement
PETKIM 2Q23 income statement FY Q2 TL mn Q2‘22 Q2’23 YoY Δ (%) Q1‘23 Q2’23 QoQ Δ (%) Sales 14,369 10,612 (26%) 9,198 10,612 15% Cost of sales (12,910) (10,233) (21%) (9,217) (10,233) 11% Gross profit 1,458 379 (74%) (19) 379 (2042%) Gross profit % 10% 4% 0% 4% Marketing and sales expenses (130) (203
Slide 16: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 7,4 8,0 4,7 3,4 3,6 Export 683 687 Domestic 465 477 7,0 6,2 5,8 434 5,5 5,5 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Financial EBITDA and net income (k TL) Margins (%) highlights 2.520 18% EBITDA 1.392 1.508 11% 9% margin 759 765 EBITDA 10% Net income 2%
Slide 17: EBITDA improved due to positive pricing delta, volume and FX
EBITDA improved due to positive pricing delta, volume and FX 2Q23 segments’ results (mn TRY) 318% Quarterly change in EBITDA (mn TRY) Pricing delta: positive 17 TRY231mn
Slide 18: Liquidity highlights
Liquidity highlights Deposits* (%) Maturity profile (mn USD) USD422mn 11% USD TRY EUR 15% 293 365 345 74%* 35 44 31 13 6 2023 2024 2025 2026 2027 2028 (*) FX-protected deposits account for 5% of USD deposits Long term Short term Cash flow from operations and CAPEX (mn USD) Net debt position (bn TL)
Slide 19: Sustainability and ESG
Sustainability and ESG SOCAR Türkiye 2022 Sustainability Report Hizmete Özel (Dış Taraflar) 19
Slide 20: Our sustainability strategy will be built on two pillars
Our sustainability strategy will be built on two pillars Climate/CO2 Targets 3 2 Long- term3 1 2030 onwards Mid-term Achieve long term decarbonization targets Short-term 2 2025-2030 for decreased emissions: Decarbon- 2021-2025 Develop internal carbon pricing approach 40% reduction by 2035 for Scop
Slide 21: Petkim completed the assessment with a score of 21.1
Petkim completed the assessment with a score of 21.1 Petkim received Best Corporate Governance ESG Risk Rating award by World Finance in 2023 21.1 Medium Risk NEGL LOW MED HIGH SEVERE 0-10 10-20 20-30 30-40 40+ Strength areas You can access our article on World Emissions, Effluents Environmental P
Slide 22: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 22
Slide 23: PETKIM 2Q23 balance sheet
PETKIM 2Q23 balance sheet TL mn 3M’23 6M’23 Financial highlights 3M’23 6M’23 Cash and cash equivalents 5,743 10,900 Net debt position (16,099) (19,151) Trade receivable Working capital (4,135) (5,103) 4,182 5,672 Inventory Days sales outstanding 40 46 4,361 4,552 Other receivables Days payable outst
Slide 24: Diversified business profile through ancillary infrastructure and energy investments
Diversified business profile through ancillary infrastructure and energy investments Description Benefits to Petkim Turkey’s first privately constructed Refinery Lower naphtha procurement costs Target processing capacity of 10m tons p.a. Replacement of some of the heavy naphtha feedstock wit
Slide 25: 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 plant MEG
Slide 26: PETKIM stock performance
PETKIM stock performance Mn unit 600 380 500 330 400 280 300 230 200 180 130 100 80 0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Volume PETKM TI Equity XU100 Index Market capitalization Free float Closin
Slide 27: 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
Petkim Petrokimya Holding A.Ş. — Q2 2023 Earnings Presentation on 6ix