32 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, May 9, 2022
Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation 9 May 2022 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: Q1 2022 – Tüpraş Highlights
Q1 2022 – Tüpraş Highlights Sharp hikes in Natural Gas prices capped NRM growth ($/bbl) • Strong hikes in Natural Gas tariff limited Net Refining Margin (NRM) performance in Q1’22 despite historically high cracks. • Inventory gains continue to support NRM. • Ongoing strength of cracks indicates robu
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q1 2022 – Key Market Highlights
Q1 2022 – Key Market Highlights European refined product stocks continued to be drawn down with Brent Crude Price surged above 100$/bbl after Russia-Ukraine war dwindling supply and ongoing strong demand Global Oil Market mn bbl Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $/ bbl Brent Prices 340
Slide 6: Quarterly Crack Margin Comparison ($/bbl) 2017 - 2022
Quarterly Crack Margin Comparison ($/bbl) 2017 - 2022 Ongoing post-pandemic recovery in demand and supply issues emanating from Russia-Ukraine War led to record high mid-distillate cracks in Q1’22. 2022 2021 2017-2021 Min - Max Diesel Improving PMIs and post- Jet Fuel + pandemic recovery Air traffic
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Average differentials widened due to Ural, but other heavy grades are getting more expensive with self sanctioning. 4 0 -4 -8 Arab Heavy -12 Basrah Heavy -16 Kirkuk -20 Ural -24 Average* -28 Russia -32 OPEC+ Cut Iran OPEC+ Cut OPEC+ Ukraine Sanctions
Slide 8: Operations
Operations Hizmete Özel / Confidential
Slide 9: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş produced 6.0 million tons in Q1 2022. • Capacity utilization for Q1 2022 was 85%, down q-o-q due to seasonal maintenance. Quarterly Production (Million Tons) Capacity Utilization (%) 2019 2020 2021 2022 Crude Oil Semi Product Feedstock To
Slide 10: Product Sales in Q1 2022 (Million Tons)
Product Sales in Q1 2022 (Million Tons) • Tüpraş generated 6.5 million tons of sales in Q1 2022, 29% higher y-o-y. • Y-o-y growth in domestic jet fuel, gasoline, and diesel sales were strong with increasing domestic demand. Total Product Sales Domestic Sales of Selected Products Domestic Product Sal
Slide 11: Financials
Financials Hizmete Özel / Confidential
Slide 12: Tüpraş Net Margin and Med Complex Margin Comparison ($/bbl)
Tüpraş Net Margin and Med Complex Margin Comparison ($/bbl) Q1 Margins Tüpraş Net Med Margin 9.5 • Tüpraş net refining margin was better y-o-y, supported with record high crack margins especially during March and y-o-y wider 4.8 5.2 differentials. 4.0 4.2 3.6 1.2 1.8 1.5 • Med Margin was higher than
Slide 13: Income Statement (Million TL)
Income Statement (Million TL) Q1 Q1 Million TL % 2022 2021 Net Sales 76,541 19,821 286% COGS -71,237 -18,294 289% Gross Profit 5,304 1,527 247% Key Highlights of Income Statement Operating Expenses -1,050 -557 89% Income/Loss from other operations -1,498 -1,584 -5% • Y-o-y increase in Opex is mainly
Slide 14: Profit Before Tax Bridge (Q1 2021 – Q1 2022)
Profit Before Tax Bridge (Q1 2021 – Q1 2022) Despite elevated energy expenses and TL devaluation; strong crack margins, inventory gains and wider differentials were supportive for PBT . Million TL 09/05/2022 Hizmete Özel / Confidential www.tupras.com.tr 14 Earnings Presentation
Slide 15: Financial Highlights
Financial Highlights EBITDA (mn TL) Q1 Q2 Q3 Q4 Net Income¹ (mn TL) Q1 Q2 Q3 Q4 13,688 3,319 3,713 1,392 8,908 7,267 1,766 988 542 526 1,887 186 -2,494 1,027 1,700 4,668 870 896 3,778 4,039 2,739 378 376 -375 -760 738 -155 956 545 -2,265 2,210 2,512 4,668 1,495 383 977 1,170 -185 1,033 851 477 -420
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 12.8 5 10.9 15 12.0 12.2 12.5 12.7 11.0 11.3 11.2 4 8.4 9.4 9.3 7.6 10 3 2 5 2.3 2.3 1.9 1.6 1 1.4 1.3 1.5 1.3 0 1.0 0.8 0.9 0 0.6 0.2 0.0 Jun-20 Jun-21 Dec-18 Dec-19 Dec
Slide 17: FX Exposure Management (31 March 2022)
FX Exposure Management (31 March 2022) Consolidated Hard Consolidated Hard Currency Assets Currency Liabilities Million $ Payables & Other Cash Liabilities 1,003 4,098 Tüpraş continues to employ strict FX Receivables & ST Financial Loans Other Assets policies to mitigate currency risks 540 323 • RUP
Slide 18: Outlook for 2022
Outlook for 2022 Hizmete Özel / Confidential
Slide 19: 2022 Refinery Maintenance Schedule
2022 Refinery Maintenance Schedule Refinery Unit Starting Quarter Duration (weeks) Purpose Status Crude Oil & Vacuum Q1 15 Done Batman Seasonal Crude Oil & Vacuum Q4 4 Planned Vacuum Q1 6 Periodic Done Maintenance Lube Complex Q1 7 Done İzmir Crude Oil Q4 9 Planned CCR & Isomerization Q4 9 Revamp Pl
Slide 20: 2022 Expectations
2022 Expectations Med Complex Refining Margin Expectation Withdrawn Tüpraş Net Refining Margin 8 - 9 $/bbl • Elevated cracks to normalize towards the end of Q2 • 26-27 mt production, 28-29 mt sales and 90 - 95% capacity utilization Consolidated Capex ~300 million $ • ~45% of capex for sustainability
Slide 21: Q1 2022 Results
Q1 2022 Results Capacity Utilization (%) Refining Margins ($/bbl) Q1 2022 84.5 85% total capacity utilization in Q1 2022 Tüpraş Net Margin 0 10 20 30 40 50 60 70 80 90 100 Tüpraş FY Target Operationals (mn Ton) Q1 2022 FY Target 6.5 mn tons of sales and 6.0 mn tons of Q1 2022 29 5.2 27 production in
Slide 22: Strategic Transition Plan – Latest Updates
Strategic Transition Plan – Latest Updates Transfer of Entek Shares Roadmap of Transaction Entek’s Installed Capacity Expert valuation report completed Conversion rates disclosed at Public Disclosure Platform on 25 April 2022 60 17.5 subject to approval by the Capital Markets Board (CMB) MW 112 MW M
Slide 23: www.tupras.com.tr
www.tupras.com.tr 09/05/2022 Hizmete Özel / Confidential www.tupras.com.tr 23 Earnings Presentation
Slide 24: Appendix
Appendix Hizmete Özel / Confidential
Slide 25: Turkish Market, 2M 2022
Turkish Market, 2M 2022 January February Diesel Million 3.6 Jet1 Tons 3.4 3.5 3.3 1.8 1.7 1.8 0.7 0.7 + 58.4% 1.7 + 1.6% 0.6 0.3 0.3 0.4 0.3 1.8 0.2 1.6 1.7 1.7 0.4 0.3 0.3 0.2 2019 2020 2021 2022 2019 2020 2021 2022 LPG Gasoline 0.6 0.6 0.5 0.5 0.5 0.3 0.4 0.3 0.3 0.3 0.2 + 42.7% 0.3 0.2 -2.6% 0.2
Slide 26: OPET
OPET Opet has 1,812 fuel stations as of March 2022 end. Opet Sunpet 1,766 1,802 1812 Market Share 1,670 as of February 2022 1,615 1,560 1,504 1,444 588 592 1,393 563 1,325 1,356 495 19.5% 22.9% 434 463 431 427 435 410 418 White Black Product Product 1,073 1,126 1,152 1,175 1,203 1,214 1220 915 938 9
Slide 27: Crack Margin Effect on Tüpraş in Q1 (FOB Italy Prices)
Crack Margin Effect on Tüpraş in Q1 (FOB Italy Prices) Product Price ($/ton) Tüpraş Crack Margin ($/bbl) Product Production Q1 2022 Q1 2021 Q1 2022 Q1 2021 Yields LPG 778 511 5.1% -32.2 -15.4 Gasoline 923 558 20.8% 12.3 7.9 Naphtha 846 522 2.8% -5.9 -2 Jet Fuel 919 494 13.3% 15.4 1.9 Diesel 892 487
Slide 28: Q1 Product Yields
Q1 Product Yields Q1 2021 Q1 2022 Other Other Bitumen 2% LPG Bitumen LPG 7% 3% Kok 2% Kok 5% 4% 5% Gasoline 4% Other 19% Gasoline Fuel Oil Fuel Oil Other white 20% 2% 8% white Black Prod. 2% Light Black Prod. 2% Light 14% Distil. 17% Distil. 25% Naphtha 26% 3% Naphtha 2% Mid. Distil. Jet Mid. Distil
Slide 29: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 31.03.2022 31.12.2021 Diff. Diff. (%) Current Assets 78,451 65,429 13,022 20 Cash & C. Equivalents 19,579 20,400 -821 -4 Trade Receivables 19,191 13,517 5,674 42 Derivatives 550 3,818 -3,268 -86 Inventories 34,126 23,756 10,370 44 Pre-paid expenses 420 186 233 125 O
Slide 30: Tüpraş and Med Margins ($/bbl)
Tüpraş and Med Margins ($/bbl) Average Margins Tüpraş Net Margin Med Margin 10 9.5 8 5.7 6 5.2 3.7 4 1.7 1.3 1.6 2 0 -0.2 -2 2019 2020 2021 Q1 2022 Gross Inventory Clean Gross Clean NET Net ($/bbl) Med Margin Margin Effect Margin Margin Margin Q1 2021 7.7 2.5 5.2 -1.0 1.5 -0.2 12M 2021 10.5 2.1 8.4
Slide 31: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q1 2022 Q1 2021 351 271 270 197 183 152 134 63 35 20 0 0 0 0 0 0 Diesel Jet Fuel HVGO ASR F. Oil LSFO Naphtha Alkylate MTBE 09/05/2022 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 31
Slide 32: www.tupras.com.tr
www.tupras.com.tr 09/05/2022 Hizmete Özel / Confidential www.tupras.com.tr 32 Earnings Presentation