30 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, Apr 28, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation 28 April 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: Q1 2023 – Tüpraş Highlights
Q1 2023 – Tüpraş Highlights Falling gas prices and widening differentials offset low capacity Strong profitability and proactive cash management utilization impact and weaker cracks maintained net cash position Q1 2022 Q4 2022 Q1 2023 bn. TL 85% 84% • Production was lower y-o-y in 71% Q1 due to plan
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q1 2023 – Key Market Highlights
Q1 2023 – Key Market Highlights Brent prices remained volatile with recessionary concerns and Mid-distillate inventories were on the rise in Europe due to strong demand OPEC’s production cut decision ahead of price cap decision in Feb Global Oil Market Russia’s Production Banking 90 Cut Decision Die
Slide 6: Quarterly Crack Margin Comparison ($/bbl)
Quarterly Crack Margin Comparison ($/bbl) Despite recent weakening, mid-distillate and gasoline margins remain materially above vs last year’s Q1 Diesel Jet Fuel • Diesel cracks were 2017- 2017- • Despite laggard Chinese 2023 2022 2021 materially higher compared 2023 2022 2021 2019 avg. 2019 avg. de
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Wider differentials continued to support operational profitability in Q1 with Basrah Heavy providing wider discounts compared to the rest of the slate. 0 -4 Arab Heavy Basrah Heavy -8 Kirkuk CPC Average* -12 OPEC+ disagreement Russia Iran OPEC+ Cut OP
Slide 8: Operations
Operations Hizmete Özel / Confidential
Slide 9: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş produced 5.0 million tons in Q1 2023. • Capacity utilization for Q1 2023 was 71%, due to busy maintenance schedule in the 1st quarter Quarterly Production (Million Tons) Capacity Utilization (%) 2021 2022 2023 Crude Oil Semi Product Feeds
Slide 10: Product Sales in Q1 2023 (Million Tons)
Product Sales in Q1 2023 (Million Tons) • Tüpraş generated 6.3 million tons of sales in Q1 2023, 4% lower y-o-y. • Domestic sales were 3% higher y-o-y in Q1 2023 with better gasoline, jet fuel and bitumen sales. Total Product Sales Domestic Sales of Selected Products Diesel Jet Fuel Gasoline Bitumen
Slide 11: Electricity Production & Sales in Q1 2023 (GWh)
Electricity Production & Sales in Q1 2023(GWh) • Entek generated 274 GWh electricity in Q1 2023. • Total Zero Carbon Electricity (ZCE) sales from production decreased by 37% y-o-y in Q1 2023 due to lower hydrology Total Production (GWh) Total ZCE Sales from Production (GWh) 365 Entek’s Installed Cap
Slide 12: Financials
Financials Hizmete Özel / Confidential
Slide 13: Income Statement (Million TL)
Income Statement (Million TL) Q1 Q1 Million TL % 2023 2022(**) Net Sales 92,826 77,646 20% COGS -78,829 -71,950 -10% Gross Profit 13,997 5,695 146% Operating Expenses -2,206 -1,081 -104% Income/Loss from other operations -620 -1,522 59% Operating Profit 11,171 3,092 261% Inc./Loss from Equity pick u
Slide 14: Profit Before Tax Bridge (Q1 2022 – Q1 2023)
Profit Before Tax Bridge (Q1 2022 – Q1 2023) Strong cracks coupled with wider differentials boosted PBT in Q1 2023 despite higher energy costs y-o-y. Million TL 28/04/2023 Hizmete Özel / Confidential www.tupras.com.tr 14 Earnings Presentation
Slide 15: Financial Highlights
Financial Highlights EBITDA (mn TL) Net Income¹ (mn TL) 55,587 41,045 14,067 12,136 6,748 4,039 5,024 3,495 545 526 1,103 -2,494 2019 2020 2021 2022 Q1 2022 Q1 2023 2019 2020 2021 2022 Q1 2022 Q1 2023 Current Ratio & Net Debt / EBITDA Return on Average Equity (%) Net Debt /EBITDA Current Ratio 17.1
Slide 16: Balance Sheet Analysis
Balance Sheet Analysis Net Debt bn TL In Billion TL In Billion $ bn $ Redemption Schedule (Billion TL) TL Hard Currency $ equivalent 12.0 8.4 9.4 50 39.1 -0.9 -0.5 40 2.0 1.4 1.3 0.9 30 0.5 0.1 0.0 0.0 0.1 0.9 20 16.5 -8.6 10.5 10 1.9 1.1 -16.5 0.3 0.3 Dec-19 Dec-20 Dec-21* Dec-22* Mar-23 0 Cash & 1
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 11$/bbl -12$/bbl • 24-25 mn tons production, 28-29 mn tons sales and 85 - 90% capacity utilization Consolidated Capex ~350 million $ • ~60% of capex for sustainability focused energy efficiency and environmental projects 28/04/2023 Hizmete Özel / Confiden
Slide 20: Q1 2023 Results
Q1 2023 Results Refining Margins ($/bbl) Capacity Utilization (%) 18.0 Tüpraş Net Margin 16.0 14.0 100 Tüpraş FY 90 70.7 % total capacity 12.0 Target 80 utilization in Q1 2023 10.0 70 8.0 60 6.0 50 6.3 mn tons of sales 40 4.0 9.3 30 70.7 and 5.0 mn tons of 2.0 20 production in Q1 0.0 10 2023 0 Q1 20
Slide 21: Strategic Transition Plan - Latest Updates
Strategic Transition Plan - Latest Updates ZERO CARBON ELECTRICITY BIOFUELS As of Dec’22 end we have initiated ZCE capacity installations in our refineries with a total of 122.6 MW Solar & 12.6 MW Wind PP Basic engineering studies were completed Total Applications & Approvals (MW) Refineries Solar W
Slide 22: www.tupras.com.tr
www.tupras.com.tr 28/04/2023 Hizmete Özel / Confidential www.tupras.com.tr 22 Earnings Presentation
Slide 23: Appendix
Appendix Hizmete Özel / Confidential
Slide 24: Turkish Market, 1M 2023
Turkish Market, 1M 2023 Jan Diesel Jet1 Million Tons 1.8 1.8 1.7 1.7 1.6 0.4 0.3 0.3 0.3 1.8 1.7 1.7 1.8 +5.4% 1.6 0.2 + 19.0% 0.4 0.3 0.3 0.3 0.2 0.0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Gasoline LPG 0.3 0.4 0.3 0.3 0.2 0.2 0.2 0.3 0.2 0.2 0.3 +17.8% 0.3 0.4 + 45.2% 0.2 0.3 0.2 0.2 0.2
Slide 25: OPET
OPET Opet has 1,866 fuel stations as of March 2023 end. Opet Sunpet Total 1,857 1866 1,766 1,802 Market Share 1,670 as of January 2023 1,615 1,560 1,504 1,444 588 615 623 1,356 1,393 495 563 20.3% 30.2% 434 463 431 427 435 418 White Black Product Product 1,126 1,152 1,175 1,203 1,214 1,242 1243 938
Slide 26: Q1 Product Yields
Q1 Product Yields Q1 2022 Q1 2023 Other Other Bitumen LPG Bitumen 2% LPG Kok 2% 4% 5% 4% Kok 8% 4% Gasoline 4% Gasoline Other 17% Fuel Oil Other 20% white 8% white Fuel Oil Light Black Prod. 2% Light 6% Black Prod. 2% Distil. Distil. 17% 18% Naphtha 26% 25% 4% Naphtha 2% Mid. Distil. Mid. Distil. 55
Slide 27: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 31.03.2023 31.12.2022* Diff. Diff. (%) Current Assets 100,818 119,711 -18,893 -16 Cash & C. Equivalents 39,147 49,770 -10,624 -21 Trade Receivables 17,067 21,418 -4,351 -20 Derivatives 2,410 3,597 -1,187 -33 Inventories 35,412 36,046 -634 -2 Pre-paid expenses 360 74
Slide 28: Tüpraş and Med Margins ($/bbl)
Tüpraş and Med Margins(*) ($/bbl) Average Margins Tüpraş Net Margin Med Margin 32.7 28.2 16.5 9.3 5.7 1.3 1.6 -0.2 2020 2021 2022 2023 Gross Inventory Clean Gross Clean NET Net Processed ($/bbl) Med Margin Margin Effect Margin Margin Margin Barrel Q1 2023 20.5 0.5 20.1 8.8 9.3 32.7 38.4 12M 2022 23.
Slide 29: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q1 2023 Q1 2022 817 351 350 271 185 197 152 163 24 39 45 35 0 0 0 0 0 0 Diesel Jet Fuel HVGO ASR F. Oil LSFO LPG Naphtha Gasoline MTBE 28/04/2023 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 29
Slide 30: www.tupras.com.tr
www.tupras.com.tr 28/04/2023 Hizmete Özel / Confidential www.tupras.com.tr 30 Earnings Presentation