Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q3 2024 Earnings Presentation
31 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, November 2024
Slide 1: 3Q24 Results Investor Presentation
3Q24 RESULTS INVESTOR PRESENTATION NOV 2024
Slide 2: Welcome to Our Earnings Presentation
Welcome to Our Earnings Presentation Page 03-04 3Q24 FINANCIAL HIGHLIGHTS Page 05-09 INDUSTRY ENVIRONMENT Page 10-20 OPERATING & FINANCIALS RESULTS Page 21-22 Petkim was awarded two prizes STAR REFINERY in the 2024 Europe & Emerging Earnings Presentation 3Q24 EMEA Equity Awards organized Page 23-25
Slide 3: Financial Highlights
Sales FINANCIAL HIGHLIGHTS ₺17.2 BN (15%) QoQ EBITDA Net Income (₺573) MN (3%) Margin (175%) QoQ (₺3) BN 1,05 TL/Share (256%) QoQ Earnings Presentation 3Q24 Cash Net Debt ₺3.2 BN 0,7x Current Ratio (45%) QoQ ₺35.9 BN 9,2x Net Debt / EBITDA* 13% QoQ *IAS 29 is not applied to this figure. 3
Slide 4: 3Q24 Highlights
3Q24 Highlights 01 Weak performance driven by low product margins, planned and unplanned shutdowns Petkim’s gross unit margin was USD54/ton and the CUR was 58% Petkim was unable to take advantage of the synergies with 02 STAR Refinery Petkim was unable to sell products such as C5, arom naphtha, and
Slide 5: Industry Environment
INDUSTRY Earnings Presentation 3Q24 ENVIRONMENT Global Petrochemical Market Petrochemical Market in Türkiye 5
Slide 6: Industry Environment: Naphtha-Ethylene Spread and Platts Index
Monthly naphtha - ethylene spread (CIF MED spot prices) USD/ton Industry Environment 348 357 296 248 200 217 328 Ethylene-naphtha spread increased 226 115 150 118 by about 53% from USD142/ton in 200 183 208 50 91 70 2Q24 to USD217/ton in 3Q24 120 132 112 118 Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 7: Key Trends in the Industry
Industry Environment Key trends in the industry Product groups spread (over naphtha CIF MED) USD/MT Demand weakness and oversupply persists Deepening geopolitical tensions in the Middle East 600 Turbulent energy costs 500 Profitability remains weak, settling close to that suffered in previous downtu
Slide 8: Product Groups Spread over Naphtha
Industry Product groups spread Environment (over naphtha CIF MED), USD/MT Polymers Fibers HDPE LDPE PP PVC MEG ACN PTA DEG 800 550 600 400 400 250 200 0 100 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 -200 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Earnings Presentation 3Q24
Slide 9: Türkiye's Petrochemical Sector Overview
Türkiye’s Petrochemical Petrochemical consumption in Türkiye (k tons) Sector Overview Domestic consumption Petkim domestic sales 3.000 2.542 2.285 2.336 2.289 2.209 2.500 2.000 1.500 Surplus (k tons) 1.000 Türkiye domestic demand is primarily met by imports 500 281 248 265 248 203 0 Arom 3Q23 4Q23 1
Slide 10: Operating & Financial Results
OPERATING & FINANCIAL RESULTS Earnings Presentation 3Q24 10
Slide 11: Capacity Utilization & Gross Production
Capacity Utilization Capacity utilization rates (%) Thermoplastics Fiber Aromatics Ethylene Other & Gross Production 76% 95% 74% 76% 85% 70% 99% 75% 101% 63% 102% 65% 89% 100% 78% 55% 87% 91% 85% 84% 45% 75% 35% 18% 50% 17% 25% 11% 9% 9% 15% 22% 23% 19% 5% Temporary production 0% 7% 11% -5% 3Q23 4Q2
Slide 12: Petrochemical Product Sales
Petrochemical Product Sales Breakdown of petchem sales (USD mn) Thermoplastics Fiber Aromatics Other Trade Breakdown by percentage in 3Q24 146 189 145 29% 87 Total petchem sales 39% 89 Earnings Presentation 3Q24 72 $500mn 88 83 14 83 24 5 14% 233 1% 207 195 17% 1Q24 2Q24 3Q24 Thermoplastics Fiber Ar
Slide 13: Breakdown of Sales
Breakdown of Sales Total volume: Sales volume (k tons) Revenue breakdown (%) 154 74 44 461k tons 28 39 35 31 29 23 3 1 Export PVC LDPE HDPE PP ACN MEG Benzene C4 P-X Others Trade 46% Total revenue: Revenue (TRY mn) Domestic 3.553 4.935 54% 2.012 ₺17,064mn 942 1.271 1.334 1.115 899 841 143 21 Exports
Slide 14: Breakdown of Total COGS
Breakdown of Total COGS COGS breakdown (%) Inventory gain/loss* (USD mn) Other Trade Depreciation Labour costs Energy Raw materials Inventory gain/loss Naphtha prices 700 642 609 612 6% 596 595 579 564 600 560 549 549 549 30% 529 537 525 25% 488 500 6% 6% 5% 5% 5 5 8% 9% 400 1 2 1 1 2 2 1 1 -2 -1 30
Slide 15: Feedstock vs. Product Prices of Petkim
Feedstock vs. Product Prices of PETKIM Thermoplastics and naphtha spread Petchem unit margins USD/ton USD/ton 1.400 400 1.420 1.442 1.412 2.400 800 350 1.200 1.344 1.342 1.266 1.276 1.293 1.243 750 300 2.000 1.000 700 206 218 250 1.600 650 800 203 200 600 133 600 729 1.200 550 150 670 709 694 677 60
Slide 16: Income Statement 3Q24
PETKIM 3Q24 TRY mn Q2’24* Q3’24 QoQ Δ (%) Income Sales 20,376 17,219 (15%) Cost of sales (19,745) (18,392) (7%) Statement Gross profit 631 (1,173) (286%) Gross profit % 3% (7%) - Marketing and sales expenses (361) (298) (18%) General administrative expenses (873) (668) (24%) Operating profit (603) (
Slide 17: Impact of Inflation Accounting on Income Statement
Impact of Inflation Accounting on Income Statement Revenues COGS Gross Profit (TRY bn) (TRY bn) +2.3 (TRY bn) +0.7 18 18.4 -1.6 16 16.1 2 17.2 0.4 16.5 -1.2 2Q24* 3Q24* 3Q24 (w IAS29) 2Q24* 3Q24* 3Q24 (w IAS29) 2Q24* 3Q24* 3Q24 (w IAS29) -Δ TRY795mn depreciation EBITDA Profit Before Tax Net Profit (
Slide 18: EBITDA Change by Segment
EBITDA decreased mainly due to negative pricing delta, volume & efficiency and inventories Q324 segments’ results (TRY mn) (175%) Yearly Earnings Presentation 3Q24 change in EBITDA (TRY mn) Pricing delta 18 (₺817)mn
Slide 19: Balance Sheet 9M24
TRY mn 6M’24* 9M’24 QoQ Δ (%) PETKIM 9M24 Cash and cash equivalents 5,807 3,174 (45%) Balance Sheet Trade receivable 10,248 8,802 (14%) Inventory 8,091 8,650 7% Other receivables 47 12 (74%) Other current assets 2,899 3,258 12% Current assets 27,092 23,896 (12%) Non current assets 98,679 95,005 (4%)
Slide 20: Liquidity Highlights
Liquidity Highlights Maturity profile (USD mn) USD TRY EUR Long term Short term 16% 468 17% USD93 mn 398 67% 182 34 22 6 12 2024 2025 2026 2027 2028 Cash flow from operations and investment activities (USD mn) Net debt position* (TRY bn) CFI CFO Net debt position Net debt/EBITDA Earnings Presentatio
Slide 21: STAR Refinery
STAR REFINERY Earnings Presentation 3Q24 21
Slide 22: STAR Refinery Operating and Financial Highlights
STAR Refinery Operating and Financial Highlights Q3 2024 Figures Capacity utilization Crude processed (yearly) In September, STAR Refinery initiated its first planned shutdown, which lasted approximately 2 62% 13mn tons months, and the TA was succesfully completed at the end of the October Product s
Slide 23: Sustainability & ESG
SUSTAINABILITY & ESG Earnings Presentation 3Q24 23
Slide 24: Sustainability Strategy Built on Two Pillars
Our Sustainability Strategy Will be Built on Two Pillars - Climate/CO2 Targets Short-term2 Mid-term Long-term 2021-2025 2025-2030 2030 onwards Decarbonization ๏ Implement energy efficiency, ๏ Develop internal carbon pricing ๏ Achieve long term decarbonization approach for future investments to targe
Slide 25: Petkim's ESG Risk Rating Score
Petkim’s ESG Risk Rating Score is Best Corporate 22,7 Governance World Finance 2024 22,7 Medium Risk Sustainalytics ESG Risk Rating 2024 NEGL LOW MED HIGH SEVERE 0-10 10-20 20-30 30-40 40+ Europe & Emissions, ๏ Environmental Policy Emerging EMEA Effluents and Waste ๏ Environmental Management System
Slide 26: Supporting Slides
SLIDES SUPPORTING Earnings Presentation 3Q24 26
Slide 27: Diversified Business Profile Through Ancillary Infrastructure Energy Investments
Diversified Business Profile Through Ancillary Infrastructure Energy Investments ๏ Türkiye’s first privately constructed refinery ๏ Lower naphtha procurement costs ๏ Target processing capacity of 13mn tons p.a. ๏ Replacement of some of the heavy naphtha feedstock with reformate / mixed-xylene ๏ Owne
Slide 28: 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 MEG (89,0
Slide 29: Petkim Stock Performance
PETKIM Stock Performance Unit mn Volume PETKM TI Equity XU100 Index 200 450 180 400 160 350 140 300 120 250 100 200 80 150 60 100 40 50 20 Earnings Presentation 3Q24 0 0 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-
Slide 30: 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
Slide 31: petkim.com.tr
petkim.com.tr Earnings Presentation 3Q24 Scan QR Code to See more 31
Petkim Petrokimya Holding A.Ş. — Q3 2024 Earnings Presentation on 6ix