28 slides from Turkiye Petrol Rafinerileri A.s's earnings presentation, Aug 5, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation www.tupras.com.tr 5 August 2024 Hizmete Özel / Confidential
Slide 2: Disclaimer
Disclaimer With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflation accounting provisions. Accor
Slide 3: Q2 2024 – Tüpraş Highlights
Q2 2024 – Tüpraş Highlights Strong Q2 Sales Outperform Last 7 Years Higher Capacity Utilization Rate • In 2024, capacity utilization Tüpraş Sales Volume (mton) has been significantly • With the steady demand for oil Tüpraş Capacity Utilization Rate improved y/y due to 7,8 7,4 7,1 6,9 7,3 7,3 product
Slide 4: Tüpraş Strategy - Highlights
Q ’ Tüpraş Strategy - Highlights ZERO CARBON SUSTAINABLE REFINING BIOFUELS ELECTRICITY Investment in SAF production - 416 MW installed Petrochemicals Secured feedstock capacity for zero İzmit &İzmir Refinery supply carbon electricity Investment of 256 mn US for the İzmit We are strategically priorit
Slide 5: Market
Market Hizmete Özel / Confidential
Slide 6: Q2 2024 – Key Market Highlights
Q2 2024 – Key Market Highlights Capacity additions in 2024 were partially mitigated with the closure of refineries in Europe and Red Sea tensions disrupted trade routes and crack margins were supported in Q1. As inventory levels increase North America so far. in the Q2, cracks started to show a down
Slide 7: Quarterly Crack Margin Comparison ($/bbl)
Quarterly Crack Margin Comparison ($/bbl) Mid-distillate cracks were higher y/y due to ongoing geopolitical tensions despite elevated inventories. HSFO remains strong while gasoline is slightly below y/y. 5 year range 2024 2023 Diesel Jet Fuel +• High demand in aviation +• Diesel cracks are higher y
Slide 8: Heavy Crude Price Differentials to Brent ($/bbl)
Heavy Crude Price Differentials to Brent ($/bbl) Differentials narrowed in Q2 following the extention of P C+’s cut decisions. 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+ Iran OPEC+ Cut disagreemen
Slide 9: Operations
Operations Hizmete Özel / Confidential
Slide 10: Capacity Utilization and Quarterly Production Volume
Capacity Utilization and Quarterly Production Volume • Tüpraş pro uce 6.8 million tons in Q2 2024. • Capacity utilization for Q2 2024 was 93%, higher y/y despite RUP maintenance. Quarterly Production (Million Tons) Capacity Utilization (%) 2022 2023 2024 Crude Oil Semi Product Feedstock Total 8 98 9
Slide 11: Product Sales in Q2 2024 (Million Tons)
Product Sales in Q2 2024 (Million Tons) • Tüpraş’ sales are up y 7% compared to Q2 2023 reaching to 7.8 million tons. • International sales grew by 56% y/y driven by gasoline and HSFO. Total Product Sales Domestic Sales of Selected Products Domestic Sales International Sales Diesel Jet Fuel Gasoline
Slide 12: Electricity Production & Sales in Q2 2024
Electricity Production & Sales in Q2 2024 • 640 GWh Zero Carbon Electricity is sold in Q ’ . • ZCE sales from production increased by almost 1,5x y-o-y in Q ’ with the addition of Kinik WPP and better hydrology. Total ZCE Sales Total Installed Capacity from Production (GWh) EBITDA (Mn TL) 640 66 MW
Slide 13: Financials
Financials Hizmete Özel / Confidential
Slide 14: Income Statement (Million TL)
Income Statement (Million TL) Q2 Q2 H1 H1 Million TL % % 2024 2023 2024 2023 Net Sales 190,716 183,630 4% 370,097 357,349 4% COGS -173,284 -154,319 12% -338,383 -302,275 12% Gross Profit 17,432 29,310 -41% 31,714 55,074 -42% Operating Expenses -6,861 -5,265 30% -13,206 -10,957 21% Income/Loss from o
Slide 15: Profit Before Tax Bridge (2023 Q2 – 2024 Q2)
Profit Before Tax Bridge (2023 Q2 – 2024 Q2) Higher sales, lower energy expenses and strong net interest income supported the PBT despite narrower differentials and scheduled RUP maintenances negative impact. Million TL Q Sales nergy RUP Perio ic Crack Margin Cru e n entory et nterest Monetary ther
Slide 16: Financial Highlights
Financial Highlights EBITDA (mn TL) Net Income* (mn TL) Cash Currency Redemption Schedule Breakdown bn TL bn TL TL Hard Currency 120 120 88,0 80 80 40 40 29,9 2,9 0 0 Q Q Q Q Hard Currency TL 1 year Over 1 year * Excluding minority interest Net Debt & Net Debt / EBITDA Working Capital (bn TL) Financ
Slide 17: Outlook for 2024
Outlook for 2024 Hizmete Özel / Confidential
Slide 18: 2024 Refinery Maintenance Schedule
2024 Refinery Maintenance Schedule Refinery Unit Starting Quarter Duration (weeks) Purpose Planned Crude Oil & Vacuum Q4 5 Postponed Desulphurizer Q4 5 Periodic Maintenance Postponed İzmit RUP Q1 13 Completed FCC Q2 6 Periodic Maintenance Completed FCC Q3&Q4 21 Revamp Planned İzmir Crude Oil , Vacuu
Slide 19: 2024 Expectations
2024 Expectations Tüpraş Crack Margin expectation ~12 $/bbl • ~26 mn tons annual production, ~30 mn tons annual sales and 85-90% average capacity utilization Consolidated Capex ~400 million $ 01/10/2024 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 19
Slide 20: Q2 2024 Results
Q2 2024 Results Tüpraş Crack Margin ($/bbl) Capacity Utilization (%) Tüpraş Crack Margin 100 16,0 Tüpraş Y 80 Target 12,0 Tüpraş Y Target 60 8,0 14,5 87,8 11,5 40 4,0 20 0,0 Q1 2024 Q2 2024 0 1H 2024 Operationals (million tons) Total Capex (mn $) 400 1H 2024 FY Target 400 30 26 178 200 12,7 14,8 0 P
Slide 21: www.tupras.com.tr
www.tupras.com.tr 01/10/2024 Hizmete Özel / Confidential www.tupras.com.tr 21 Earnings Presentation
Slide 22: Appendix
Appendix Hizmete Özel / Confidential
Slide 23: Turkish Market, 5M 2024
Turkish Market, 5M 2024 Q1 Apr May Million Diesel Jet1 Tons 9,6 9,9 10,0 9,5 2,0 8,7 2,0 1,8 2,1 2,4 2,2 1,6 1,6 0,5 0,5 1,5 2,2 2,0 1,9 2,0 0,4 1,0 1,0 0,4 0,4 0.0% 0,4 0,1 0,0 +3.5% 5,6 5,6 5,6 5,8 0,2 5,4 1,1 1,1 0,9 0,9 0,6 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Gasoline LPG 1,8 1,8 1
Slide 24: OPET
OPET Opet has 1,873 fuel stations as of June 2024 end. 7% of the fuel stations have EV chargers installed. Opet Sunpet 1.802 1.857 1.866 1,865 1.766 1.615 1.670 1.504 1.560 Market Share* 1.393 1.444 615 626 626 495 563 588 434 463 19% 435 431 427 1.073 1.126 1.152 1.175 1.203 1.214 1.242 1.240 1,239
Slide 25: Q2 Product Yields
Q2 Product Yields Q2 2023 Q2 2024 Other Other 2% LPG Bitumen 1% LPG Bitumen 4% 3% Kok 10% 12% Gasoline 1% Gasoline Kok Other Other 20% 22% 4% white white Light Light 2% Fuel Oil Black Prod. 1% Fuel Oil Black Prod. Distil. Distil. 14% 25% 4% 20% 24% Naphtha 26% Naphtha 1% 1% Mid. Distil. Mid. Distil.
Slide 26: Tüpraş Balance Sheet (Million TL)
Tüpraş Balance Sheet (Million TL) 31.06.2024 31.12.2023 Diff. Diff. (%) Current Assets 211,849 250,904 -39,055 -16 Cash & C. Equivalents 88,003 122,270 -34,267 -28 Trade Receivables 44,952 50,442 -5,490 -11 Derivatives 1,053 2,575 -1,522 -59 Inventories 65,206 55,462 9,743 18 Pre-paid expenses 1,678
Slide 27: Finished Product and Semi Product Imports (Thousand Tons)
Finished Product and Semi Product Imports (Thousand Tons) Product Imports Q2 2024 Q2 2023 1.795 1.547 763 523 404 151 203 243 63 113 105 28 9 13 39 Diesel Jet Fuel HVGO ASRFO LSFO LPG Naphtha Gasoline MTBE 01/10/2024 Hizmete Özel / Confidential Earnings Presentation www.tupras.com.tr 27
Slide 28: www.tupras.com.tr
www.tupras.com.tr 01/10/2024 Hizmete Özel / Confidential www.tupras.com.tr 28 Earnings Presentation