Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q3 2023 Earnings Presentation
27 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, Nov 8, 2023
Slide 1: 3Q23 Results Investor Presentation
3Q23 Results Investor Presentation 1
Slide 2: 3Q23 financial highlights
3Q23 financial highlights TL13.2bn TL1.566mn TL2.346mn Sales 24% QoQ EBITDA 11,9% margin Net 0,95 TL/share 699% QoQ Income 961% QoQ TL4bn TL25.1bn Cash 1.3x current ratio Net 12,6x net debt/ EBITDA -63% QoQ Debt 31% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Improved profitability through management initiatives
Improved profitability through management initiatives Petkim was able to access to low-cost feedstock thanks to revised agreement with STAR Refinery Petkim’s average gross unit margins improved from USD56/ton in 2Q23 to USD168/ton in 3Q23 Optimization-focused initiatives resulted in cost efficient o
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 2.000 1.123 1.000 1.040 1.800 942 1.001 1.005 900 899 872 1.600 781 783 819 812 876 759 800 754 681 683 928 936 1.400 700 924 932 1.200 600 890 878 873 869 872 1.000 754 500
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 750 Demand weakness and over-supply persists 650 550 Escalated feedstock and energy costs 450 Standard naphtha cracker margins tumbled by August as a contrasting view of petrochemical and oil markets
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Polymers 1000 Fibers 800 800 650 600 500 400 350 200 0 200 -200 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&P
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 C-5 Arom Caustic Styrene Naphtha 0 -200 -400 -600 Deficit 3Q22 4Q22 1Q23 2Q23 3Q23 (k ton) Petrochemical consumption in Türkiye (k ton) Products market shar
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% 700 516 366 572 636 589 100% 90% 120% 80% 90% 105% 76% 80% 600 102% 66% 80% 99% 213 87% 70% 48% 88% 500 194 191 70% 87% 87% 80% 60% 400 163 60% 50% 106 107 50% 74% 300 80 120 103 28 54% 40% 15
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 3Q23 Total petchem sales: USD487mn 381 24% Thermoplastics 124 116 126 36% Fiber 73 211 84 79 Aromatics 82 87 39 45 77 101 103 Other 25 11 18 22 16 Trade 16% 217 182 182 174 170 3% 21% 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 12: In 3Q23, Petkim achieved TL 13,045mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 483k ton TL13,045mn 128 3.097 2.528 2.199 84 65 42 38 1.004 1.030 1.104 35 31 741 533 15 24 12 382 308 105 14 8 1 In 3Q23, Petkim achieved TL 13,045mn sales Exports breakdown via 483k ton sales Export Revenue (TL mn) Total export: TL4
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 3Q23 total COGS: 3Q23 inventory gain: TL11,462mn USD10mn 1% 1% 733 2% 4% 665 629 637 701 634 614 631 633 599 596 607 Other 555 572 26% 24% 25% 601 532 547 501 49% 44% 2% 3% 3% Trade 6% 4% 6% 5 6 5 5 10% 9% 8% 401 2 Depreciation
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 2.800 900 1.400 450 1.559 2.400 1.200 400 1.325 800 1.304 1.356 1.266 1.245 1.308 1.305 1.231 1.203 2.000 1.198 1.142 1.150 1.000 293 350 1.064 1.035 700 300 1.600 800 826 600 217 2
Slide 15: PETKIM 3Q23 income statement
PETKIM 3Q23 income statement FY Q3 TL mn Q3‘22 Q3’23 YoY Δ (%) Q2‘23 Q3’23 QoQ Δ (%) Sales 14,201 13,189 (7%) 10,612 13,189 24% Cost of sales (13,277) (11,462) (14%) (10,233) (11,462) 12% Gross profit 924 1,727 87% 379 1,727 356% Gross profit % 7% 13% 4% 13% Marketing and sales expenses (139) (245)
Slide 16: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 8,0 4,7 4,7 3,4 3,6 Export 687 8,3 Domestic 465 434 477 483 6,2 5,5 5,5 5,8 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 Financial EBITDA and net income (k TL) Margins (%) highlights 2.346 18% EBITDA 1.508 1.566 margin 11% 9% 759 765 EBITDA 12% Net income 2%
Slide 17: EBITDA improved mainly due to positive pricing delta, FX and inventory
EBITDA improved mainly due to positive pricing delta, FX and inventory 3Q23 segments’ results (mn TRY) 699% Quarterly change in EBITDA (mn TRY) Pricing delta: TRY541mn 17
Slide 18: Liquidity highlights
Liquidity highlights Deposits* (%) Maturity profile (mn USD) USD147mn 12% USD TRY EUR 390 12% 345 129 90 76%* 6 44 31 6 2023 2024 2025 2026 2027 2028 (*) FX-protected deposits account for 6% of USD deposits Long term Short term Cash flow from operations and CAPEX (mn USD) Net debt position (bn TL) 1
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 Petkim received Best Corporate Governance assessment with a score of 21.1 award by World Finance in 2023 ESG Risk Rating 21.1 Medium Risk Institutional Investor 2023 Europe and NEGL LOW MED HIGH SEVERE Emerging EMEA Equity Awards – Best IR 0-10 10-20 20-30 30-40 40+ Team in Basi
Slide 22: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 22
Slide 23: PETKIM 3Q23 balance sheet
PETKIM 3Q23 balance sheet TL mn 6M’23 9M’23 Financial highlights 6M’23 9M’23 Cash and cash equivalents 10,900 4,021 Net debt position (19,151) (25,118) Trade receivable Working capital (5,103) (1,106) 5,672 6,814 Inventory Days sales outstanding 46 52 4,552 4,943 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 Türkiye’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 wi
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 600 430 500 380 330 400 280 300 230 200 180 100 130 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 Aug-23 Sep-23 Oct-23 Volume PETKM TI Equity XU100 Index Market capital
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
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