29 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, Oct 25, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation 25 October 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: Q3 2023 – Tüpraş Highlights
Q3 2023 – Tüpraş Highlights Net Refining Margin ($/bbl) Sales Volume & Capacity Utilization Strongest Quarter of 2023 with High Utilization 120% Mn ton 9.0 Rate and Favourable Net Refining Margin 99% 20.4 100% 83% 8.5 20.0 8.0 • Highest quarterly net refining margin was 71% 8.4 80% 7.5 19.0 achieved
Slide 4: Market
Market Hizmete Özel / Confidential
Slide 5: Q3 2023 – Key Market Highlights
Q3 2023 – Key Market Highlights Brent moved higher in Q3, mainly driven by seasonal demand In Q3, EU refinery utilization rates hit its lowest point in 2023 while oil together with lower OPEC+ supply demand in Europe increased Global Oil Market ($/bbl) OPEC+ Cut Voluntary Cut Decisions from Saudi (m
Slide 6: Quarterly Crack Margin Comparison ($/bbl)
Quarterly Crack Margin Comparison ($/bbl) Better seasonal dynamics were supportive for cracks in Q3, as mid-distillates kept weaker year on year while gasoline and HSFO improved 5 year range 2022 2023 Diesel Jet Fuel 45.3 45.4 -• Diesel cracks were lower 44.9 -• Jet fuel cracks moved in 42.2 36.7 co
Slide 7: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Differentials narrowed in Q3 following OPEC+’s cut decision. 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+ OPEC+ Cut disagreement Russia Iran Sanction
Slide 8: Operations
Operations Hizmete Özel / Confidential
Slide 9: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş produced 7.1 million tons in Q3 2023. • Capacity utilization for Q3 2023 reached 99% with completed maintenances Quarterly Production (Million Tons) Capacity Utilization (%) 2021 2022 2023 Crude Oil Semi Product Feedstock Total 8 98 100 9
Slide 10: Product Sales in Q3 2023 (Million Tons)
Product Sales in Q3 2023 (Million Tons) • Tüpraş generated 8.4 million tons of sales in Q3 2023. • Domestic sales were up by 2% year on year in Q3 2023 with higher gasoline and jet fuel sales. Total Product Sales Domestic Sales of Selected Products Domestic Sales International Sales Diesel Jet Fuel
Slide 11: Electricity Production & Sales in Q3 2023
Electricity Production & Sales in Q3 2023 • Entek generated 447 GWh electricity in Q3 2023. • Total Zero Carbon Electricity (ZCE) sales from production increased by 5% y-o-y in Q3 2023 Total Production (GWh) Total ZCE Sales from Production (GWh) 438 447 Entek’s Installed Capacity 365 347 82 66 112 1
Slide 12: Financials
Financials Hizmete Özel / Confidential
Slide 13: Income Statement (Million TL)
Income Statement (Million TL) Q3 Q3 9M 9M Million TL % % 2023 2022 2023 2022 Net Sales 185.137 150.609 23% 382.369 365.739 5% COGS -152.334 -131.111 -16% -318.095 -322.428 1% Gross Profit 32.803 19.498 68% 64.274 43.311 48% Operating Expenses -3.752 -1.989 -89% -8.601 -5.150 -67% Income/Loss from ot
Slide 14: Profit Before Tax Bridge (Q3 2022 – Q3 2023)
Profit Before Tax Bridge (Q3 2022 – Q3 2023) Strong cracks, higher inventory and positive net fx & interest impact boosted PBT, while differentials were relatively weak Million TL 03/11/2023 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 57,436 41,045 35,272 16,366 30,096 17,589 21,306 14,067 17,766 3,495 11,554 15,204 7,217 16,431 526 10,799 4,039 545 6,748 5,024 12,136 -2,494 1,103 2019 2020 2021* 2022* 2023 2019 2020 2021* 2022* 2023 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q
Slide 16: Balance Sheet Analysis
Balance Sheet Analysis Net Debt/Cash Cash Currency Redemption Schedule bn TL In Billion TL In Billion $ bn $ bn TL Breakdown TL Hard Currency 100 60 4 86.6 bn TL 40 3 80 1.4 1.3 25 0.9 2 21.5 20 8.4 9.4 12.0 1 60 20 -0.5 -0.4 0 -0.9 0 40 15 -20 -8.6 -1 9.5 -10.1 10 -16.5 -2 -40 -1.9 20 -3 5 0.5 2.0
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 annual production, 29-30 mn tons annual sales and 85 - 90% average capacity utilization Consolidated Capex ~350 million $ • ~60% of capex for sustainability focused energy efficiency and environmental projects 03/11/2023 H
Slide 20: 9M 2023 Results
9M 2023 Results Refining Margins ($/bbl) Capacity Utilization (%) 100 18.0 Tüpraş Net Refining Margin Tüpraş FY 90 16.0 80 Target 14.0 70 12.0 Tüpraş FY 60 10.0 Target 50 8.0 40 84.1 6.0 13.3 30 4.0 20 2.0 10 0.0 0 9M 2023 9M 2023 Operationals Total Capex (mn $)(*) 9M 2023 FY Target 400 350 300 30 2
Slide 21: www.tupras.com.tr
www.tupras.com.tr 03/11/2023 Hizmete Özel / Confidential www.tupras.com.tr 21 Earnings Presentation
Slide 22: Appendix
Appendix Hizmete Özel / Confidential
Slide 23: Turkish Market, 7M 2023
Turkish Market, 7M 2023 Q1 Q2 July Diesel 14.8 Jet Fuel1 Million 14.4 13.7 13.5 13.5 Tons 2.5 2.7 2.5 2.6 2.1 2.9 3.0 2.6 6.3 6.1 6.5 0.5 0.6 6.1 5.3 1.7 0.5 +9.4% +18.1% 1.3 1.3 1.4 0.2 0.4 1.2 5.6 5.6 5.6 0.2 0.8 5.2 5.4 1.0 0.9 0.9 1.1 0.6 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Gasolin
Slide 24: OPET
OPET Opet has 1,866 fuel stations as of September 2023 end. Opet Sunpet Total 1,857 1866 1,766 1,802 Market Share 1,670 as of July 2023 1,615 1,560 1,504 1,444 588 615 624 1,356 1,393 495 563 19.5% 23.7% 434 463 431 427 435 418 White Black Product Product 1,242 1242 1,073 1,126 1,152 1,175 1,203 1,2
Slide 25: Q3 Product Yields
Q3 Product Yields Q3 2022 Q3 2023 Other Other LPG Bitumen 2% LPG Bitumen 2% 3% 4% 14% 12% Gasoline Kok Gasoline Kok Other Other 22% 3% 21% 3% white white 2% Light Fuel Oil 2% Light Black Prod. Black Prod. Distil. Fuel Oil Distil. 5% 22% 20% 25% 6% 25% Naphtha Naphtha 0% 0% Mid. Distil. Mid. Distil.
Slide 26: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 30.09.2023 31.12.2022* Diff. Diff. (%) Current Assets 196.666 119.711 76.955 64 Cash & C. Equivalents 86.621 49.770 36.850 74 Trade Receivables 42.096 21.418 20.679 97 Derivatives 1.958 3.597 -1.639 -46 Inventories 52.182 36.046 16.136 45 Pre-paid expenses 1.513 749
Slide 27: Tüpraş and Med Margins ($/bbl)
Tüpraş and Med Margins(*) ($/bbl) Average Margins Tüpraş Net Margin Med Margin 28.0 28.7 15.7 13.3 4.3 1.5 1.0 -0.2 2020 2021 2022 2023 Gross Inventory Clean Gross Clean NET Net Processed ($/bbl) Med Margin Margin Effect Margin Margin Margin Barrel Q3 2023 24.3 1.1 23.2 17.8 19.0 29.5 54.5 9M 2023 2
Slide 28: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q3 2023 Q3 2022 906 918 332 270 243 149 106 126 96 38 60 0 0 20 0 0 0 0 Diesel Jet Fuel HVGO ASR F. Oil LSFO LPG Naphtha Gasoline MTBE 03/11/2023 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 28
Slide 29: www.tupras.com.tr
www.tupras.com.tr 03/11/2023 Hizmete Özel / Confidential www.tupras.com.tr 29 Earnings Presentation