Q4 2017 Analyst Teleconference - Microsoft · 2018-02-14 · Q4 2017 Analyst Teleconference February 2018 Priorities in 2017 4 Tüpraş transformed itself with the implementation

Q4 2017 Analyst Teleconference

14 February 2018

Q4 2017 Analyst Teleconference www.tupras.com.tr

February 2018

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 a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.

Neither Tüpraş nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation.


February 2018

2017 Key Highlights

3

31.5Million tons of

Sales

101.4 %

Crude Capacity Utilization

30.4Million tons

Processed(Total)

4.5Billion TL

Profit Before Tax

5.9Billion TL

EBITDA

In Full Year 2017, Tüpraş generated record sales of 31.5 mt and EBITDA of 5.9b TL.

8.1$/bbl

Net Refining Margin


February 2018

Priorities in 2017

4

Tüpraş transformed itself with the implementation of RUP. After this significant step-change, new Tüpraş focused furthermore on its core business operations, logistics, energy efficiency and financial strength in 2017.

• Invested 185,4 m USD in core refinery business to strengthen our asset base, optimize our system from procurement to sales, implement latest digital technologies and increase our energy efficiency.

• Revised internal processes with focus on safety and environment.

• Acquired two Suezmax vessels for over 100m USD to enhance our logistics and procurement advantage

• Established railway logistics company to transport petroleum products within Turkey in order to serve our customers and reduce our transportation costs.

• Successfully completed 700m USD Eurobond sale to build financial flexibility.

Core Business Focus

Logistics Edge

Balance Sheet Strength

Market


February 2018

Market Conditions in Fourth Quarter of 2017

6

Refining Environment

Strong Global Economies

Maintenance Season earlier in

the quarter

Import needs of West Africa and Latin America

Heating Oil Demand

Increase in Product Supply due to End of

Refinery Maintenances and High Capacity

Utilizations

Increase in Trade Flows to Europe

Political Instabilities

End of Driving Season and Harsh

Winter in U.S.

After peaking in the Q3 of 2017 due to unexpected supply disruptions, product cracks reverted back to their normalization trend in the fourth quarter of 2017.


February 2018

Quarterly Product Crack Margins in 2015 - 2017 ($/bbl)

7

Gasoline

10

12

14

16

18

20

Q1 Q2 Q3 Q4

13,314,3 15,0

10,9

15,214,5

10,9

12,813

19,4 18,9

13,5

Diesel

6

8

10

12

14

16

Q1 Q2 Q3 Q4

10,5 10,7

13,1 12,4

7,99,2 8,9

11,2

15,7 15,2 14,6

10,8

2015 2016 2017 Jet Fuel

6

8

10

12

14

16

Q1 Q2 Q3 Q4

9,5 9,9

12,4 12,0

7,3 7,7 8

10,2

14,4

11,210,5

9,4

Fuel Oil

-16-14-12-10-8-6-4-2

Q1 Q2 Q3 Q4

-5,3-3,9

-5,8-7,8

-11,5-12,6

-7,8-5,7

-9,1-10,2

-12 -12,5

While diesel & jet cracks remained above their 2016 levels throughout 2017, gasoline & fuel oil cracks declined significantly in the last quarter reflecting the lower demand and higher supply environment.

(0.01)


February 2018

Turkish Petroleum Market - 11 Months 2017, (Million tons)

8

Diesel consumption in Turkey in the first 11 months of 2017 grew significantly driven by infrastructure projects and demand from heavy duty vehicles. In addition, jet fuel consumption was back on track in 2017.

*Bunker excluded Source: EMRA

2017

2016

0 4 8 12 16

20,40

22,20

Diesel

+3.0%

Jet Fuel

2017

2016

0 0 0 0 1

0,52

0,44

Fuel Oil*

2017

2016

0 1 2 2 3

2,06

2,12

Gasoline

+8.9%

+3.1% -15.3%

2017

2016

0 1 2 3 4 5

4,10

4,22


February 2018

Price DifferentialsUral Differentials

Crude Price Differentials ($/bbl)

9

Light – heavy crude differentials continued to narrow in Q4 of 2017 mainly driven by OPEC cuts and increase in geopolitic concerns.

-4

-3

-2

-1

0

1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015 2016 2017

-12

-9

-6

-3

0

11Q

111

Q2

11Q

311

Q4

12Q

412

Q2

12Q

312

Q4

13Q

113

Q2

13Q

313

Q4

14Q

114

Q2

14Q

314

Q4

15Q

115

Q2

15Q

315

Q4

16Q

116

Q2

16Q

316

Q4

17Q

117

Q2

17Q

317

Q4

Iran Heavy Kirkuk Kuwait Basra Heavy Arab Heavy Ural

-0,35-1,23

-1,30-1,59

2012-2017 Differential Range

Brent Brent

Operations


February 2018

Capacity Utilization* (%)

Capacity Utilization and Quarterly Production Volume

11

*Nameplate capacity calculated by standard 330 days of operations.

Quarterly Production (Mil. Tons)Full Year Q4

0

30

60

90

120

2014 2015 2016 2017

101,4100,998,1

71,3

Crude Oil Other

0

30

60

90

120

2014 2015 2016 2017

89,7

107,5106,3

78,9

4

5

6

7

8

9

Q1 Q2 Q3 Q4

7,1

7,8 7,7

6,36,6 6,7

7,27,4

5,6

6,97,3 7,4

4,5 4,6

5,4 5,5

2014 2015 2016 2017

74,9

102,5 105,3 108,1

81,9

111,6 110,6

94,6

2017 full year capacity utilization was an all time high of %108.1. The fourth quarter capacity decline was primarily due to the İzmir CDU maintenance announced earlier in 2017.


February 2018

Sales

12

0

10

20

30

40

2014 2015 2016 2017

25,724,822,216,9

Domestic Sales Export

0

2

4

6

8

2014 Q4 2015 Q4 2016 Q4 2017 Q4

6,46,46,2

4,3

Full Year Domestic Sales of Key Products (mt)

Full Year Total Sales (mt) Total Sales in Q4 (mt)

0

10

20

30

2014 2015 2016 2017

3,53,42,91,9

2,22,22,01,8 4,44,34,53,6 11,110,69,06,5

Diesel Jet Fuel Gasoline Bitumen

0

2

4

6

2014 Q4 2015 Q4 2016 Q4 2017 Q4

1,00,90,90,5

0,50,50,50,4 1,01,01,10,9 2,92,92,61,7

Domestic Sales of Key Products in Q4 (mt)

Tüpraş achieved highest total sales of 31.5mt in 2017.

22,228,7 30,3 31,5 6,1

7,9 7,7 7,3


February 2018

Retail Fuel Distribution -OPET

13

Market share as of November

White Product: 17.8% Black Product: 23%

0

400

800

1200

1600

2010 2011 2012 2013 2014 2015 2016 2017

434431

435427418410394394

1.1261.073

1.009966938915885830

Opet Sunpet

1.224 1.279 1.325 1.356 1.3931.444

1.5041.560

Opet expanded its retail footprint from 1.504 stations in 2016 to 1.560 stations in 2017.


February 2018

Our Marine and Railway Logistics Companies

14

Körfez Ulaştırma A.Ş.

•On June 16th, Freight Train Operator Certificate, •On September 20th, Safety Management

Certificate received •Operates with 491 cistern wagons and 5 diesel

locomotives

Target2,5 mn tons/year transport

% 10 Market share

Turkey's First Private Railway Operator

DİTAŞ

Became one of the largest with new tanker investments

306.925 DWT1 Crude Oil Tanker 1 Crude Oil/Product

Tanker 7 Product Tankers

621.831 DWT3 Crude Oil

1 Crude Oil/Product 7 Product Tankers

31 bin DWT2 Product Tankers under construction

+11 tugboats8 mooring boats2 service boats1 pilot boat

Financials


February 2018

Tüpraş Net Margin and Med Complex Margin ($/bbl)

16

0

2

4

6

8

10

2014 2015 2016 2017

5,34,0

4,8

2,0

8,1

6,06,5

3,2

Tüpraş Net Med Complex

0

2

4

6

8

10

2014 2015 2016 2017

4,15,1

3,53,8

6,78,1

5,24,6

Full Year 4th Quarter

• Excluding the 0.55 $/bbl inventory effect in full year 2017, Tüpraş Clean Net margin was 7.54 $/bbl, 2,2 $/bbl higher than the Med margin.

• Excluding 1.8 $/bbl inventory effect in Q4 of 2017, Tüpraş Clean Net margin was 4.87 $/bbl.Hedging operations excluded from above calculations.

Tüpraş’ 8.1$/bbl Net Margin in 2017 outperformed Med Complex margin by 2.8 $/bbl and was above its full year guidance of 7.5-8.0 $/bbl.


February 2018

Income Statement (In TL)

17

In Full Year 2017, Tüpraş doubled its operating profit and increased its EBITDA by 73%.

Million TL FY 2016 FY 2017 % Diff. 4Q 2016 4Q 2017 % Diff.

Net Sales 34.855 53.948 55 10.759 14.604 36

Gross Profit 3.649 6.214 70 1.599 1.400 -12

Operating Expenses -995 -1.150 16 -294 -357 21

Income/Loss from other operations -296 -206 30 -319 -265 17

Operating Profit 2.357 4.857 106 987 778 -21

Income/Loss from equity investment 159 234 48 29 61 111

Operating Profit Before Fin. Income/Loss 2.516 5.092 102 1.016 839 -17

Net Financial Income / Expense -572 -618 -8 -120 -85 29

Profit Before Tax & Minorities 1.944 4.474 130 896 754 -16

Net Profit 1.793 3.812 113 803 493 -39

* EBITDA (mn.TL) 3.396 5.882 73 1.505 1.237 -18

* EBITDA (mn. TL) CCS 2.914 5.270 81 1.282 896 -30

For P&L, USD/TL rates: 2017 12M 3,6450, 2016 12M 3,0186 *According to international standards, in our EBITDA calculation, FX related items are not included.


February 2018

Full Year Profit Before Tax Bridge, 2016-2017

18

Increase of 2.5 Billion TL over 2016 was primarily due to product pricing and crack margins and was partially offset by crude oil differentials.

4.474,0

340

1.507

1.398

277

1.944,0205

Profit Before Tax in 2016

Operational Optimization

Crude Oil Differentials

*Inventory Effect Crack Margin Global Product

Price Increases Other Profit Before Tax in 2017

516

Million TL

*Excluding Hedge


February 2018

Q4 Profit Before Tax Bridge, 2016-2017

19

Decline in crude oil differentials offset increase in inventory valuation and crack improvements. İzmir maintenance impacted capacity utilization as well as product yield.

753,8

231

462

895,7

PBT in 2016 Crude Oil Differentials

*Inventory Effect

Crack Differences Net FX Effect Other PBT in 2017

295

181

89

115

Operational Optimization

Million TL

*Excluding Hedge


February 2018

Net Debt- Debt/Rolling EBITDA

EBITDA

Financial Highlights (mn $)

20

0

500

1.000

1.500

2.000

2.500

3.000

2012

-R

2013

2014

H1

2014

9M

2014

2015

H1

2015

9M

2015

2016

H1

2019

9M

2016

2017

Q1

2017

H1

2017

9M

2017

1.7291.2401.6801.5551.7291.7512.3912.3702.7482.5771.6631.5981.8691.340551

Net Debt

0

1

2

3

4

5

6

0,8

2,4

3,5 3,6

4,9

3,32,8

1,7 2,01,6 1,5

1,1 1,0 0,71,1

Net Debt/*R. EBITDA

0

0

0

0

0

1

2011

2012

2013

2014

2015

2016

Q1

2016

H1

2016

9M

2016

2017

Q1

2017

H1

2017

9M

2017

0,41

0,490,55

0,45

0,220,16

0,110,04

0,35

0,260,24

0,320,3

In summary, Tüpraş generated record high ~1.6b USD in EBITDA and ~1.05b USD in Net Income in 2017.

Net Income

Return of Average Equity

0,41

0,22

-50

250

550

850

1150

1450

1750

2012 2013 2014 2015 2016 2017

123

256

2859147271

283

197

268175435309 405

113273171

75752352711223172161

1.046

594

938667629817

-50250550850

115014501750

2012 2013 2014 2015 2016 2017

321

480422

-11

89106

435

294

410

226315361

431

237415

-27

78153 4271141501507995

1st Q2nd Q3rd Q4th Q715 560

338

1.397

1.125

1.614USD USD

Net Debt/Rolling EBITDA was calculated with USD figures


February 2018

Balance Sheet Analysis

21

0,0

0,6

1,2

1,8

2,4

3,0

Mar

.14

Jun.

14

Sep.

14

Dec

.14

Mar

.15

Jun.

15

Sep.

15

Dec

.15

Mar

.16

Jun.

16

Sep.

16

Dec

.16

Mar

.17

Jun.

17

Sep.

17

Dec

.17

2,32,2

1,6

2,01,7

2,5

1,61,6

1,00,8

1,01,2

1,71,61,3

1,7

0,4

0,8

1,2

1,6

2,0

Mar

.14

Jun.

14

Sep.

14

Dec

.14

Mar

.15

Jun.

15

Sep.

15

Dec

.15

Mar

.16

Jun.

16

Sep.

16

Dec

.16

Mar

.17

Jun.

17

Sep.

17

Dec

.17

1,361,57

1,151,090,91

0,750,91

0,700,88

1,07

0,66

0,200,09

0,510,520,71

0

1

2

3

4

Mar

.14

Jun.

14

Sep.

14

Dec

.14

Mar

.15

Jun.

15

Sep.

15

Dec

.15

Mar

-16

Jun-

16

Sep-

16

Dec

.16

Mar

.17

Jun.

17

Sep.

17

Dec

.17

2,22

2,71

2,192,62

2,021,981,69

1,231,361,591,71,74

2,46

3,043,283,1

0,00,71,42,12,93,64,35,0

Mar

.14

2014

1h

2014

9M

Dec

14

Mar

.15

Jun.

15

Sep.

15

Dec

.15

Mar

-16

Jun-

16

Sep-

16

Dec

.16

Mar

.17

Jun.

17

Sep.

17

Dec

.17

1,41,31,1

0,60,61,11,21,00,60,60,50,4

0,30,30,30,9

2,62,12,13,02,93,12,82,92,83,03,13,33,02,92,92,8

LT Loans ST Loans

Tüpraş has a robust financial structure.

Cash & Cash Equivalents (Billion $) Receivables (Billion $)

Payables (Billion $)Financial Loans (Billion $)

2,22

1,362,3

4,03,7

3,2 3,2 3,33,7 3,6 3,6

3,43,9 4,0 4,2

3,43,6

3,2 3,4

For P&L, USD/TL rates: 2017 12M 3,6450, 2016 12M 3,0186


February 2018

FX Risk Exposure (31 December 2017)

22

Cash flow hedge accounting : 1,254 mn $

Consolidated Assets

Consolidated Liabilities

Cash1.996

Receivables & other assets

35

Stock1,341

Forward & CFH2,410

Payables1,935

ST Financial 1.199

• RUP : 304• Eurobond : 700• Other : 195

LT Financial 2,510

• RUP Loans : 964• Eurobond 700• Other Credits : 846

139 mn $

Million $

Tüpraş conducts strict FX Exposure Management.


February 2018

Capex (mn $) Margins ($/bbl)

2017 Expectations vs 12 Months Results

23

40

45

50

55

60

65

70

J-17

F-17

M-1

7

A-17

M-1

7

J-17

J-17

A-17

S-17

O-1

7

N-1

7

D-1

7

64,262,657,456

51,648,646,550,452,551,655,154,7

Brent Price ($/bbl)

020406080

100120140

14'Q

1

14'Q

2

14'Q

3

14'Q

4

15'Q

1

15'Q

2

15'Q

3

15'Q

4

16'Q

1

16'Q

2

16'Q

3

16'Q

4

17'Q

1

17'Q

2

17'Q

3

17'Q

4

CPU Average

94,6114,8116,5106,4110,510910299,7111,6110,3104

84,181,980,76968

Capacity Utiliation (%)

Expected Full Capacity Utilization in 2017; achieved 108.1% capacity utilization. Our expectation was 50-55 $/bbl; 2017 average was 54.3 $/bbl.

0

2

4

6

8

10

17 Q1 17 Q2 17 Q3 17 Q4

4,1

6,55,45,0

6,7

8,98,28,7Tüpraş Net MarginMed Margin

Net Tüpraş refinery margin for 12M was 8,1 $/bbl above target of 7,50 - 8,00 $/bbl.

0

80

160

240

320

400

2015 2016 2017

117,6

185,4213,0

344,0 Tüpraş Ditaş

Tüpraş core refining business capex guidance for 2017 was 200 Million dollars.

74,9

102,5 105,3 108,1

Outlook for 2018


February 2018

Priorities for Tüpraş in 2018

25

Ensure sustainable and reliable operations by prioritizing safety and environment

Increase system and financial efficiency in new Tüpraş after RUP through investments including energy and logistics projects

Improve process capability of our refineries and prepare for IMO 2020 market opportunity

Build international trading capabilities


February 2018

2018 Refinery Maintenance Schedule & Capacity Utilization

26

Even after the 2018 maintenance schedule, we aim to exceed our full total capacity utilization target and reach 104.6%.

Unit Quarter Duration (weeks) Reason

İzmir

Plt 7000 Crude Oil Unit Q4 ’17- Q1’ 18 11-13 in 2018 Revamp

Hydrocracker, DHP & Platformer Q1 5-6Periodic Maintenance

Plt 4000 FCC Q2 5-6

İzmit

Plt 2 Crude Oil & Vacuum Unit Q4 5-6

Periodic Maintenance



Plt 47 Hydrocracker Complex Q2 4-5

Plt 63 CCR & DHP Q4 5-6

Kırıkkale All Units Q1 6-7 Battery Shutdown

Batman Plt. 100/Crude Oil & Vacuum Q1 4-5 Periodic Maintenance

2018 Crude Capacity Utilization 26.8 mn tons (95.4%)

2018 Total Capacity Utilization 29.4 mn tons (104.6%)


February 2018

2018 Expectations

27

The average Brent crude oil price in 2018 is expected to be 55-60 dollars per barrel.

We expect Med Complex margins to be between 4.75 – 5.00 dollars per barrel band in 2018.

Net Tüpraş refinery margin is expected to be in the region of 7,50 - 8,00 dollars per barrel

• Full Total Capacity Utilization using imported semi-products such as ASRFO and HVGO • Production: approximately 28.3 million tons • Total sales: 31.0 million tons

Refining investments is expected to be around 250 Million dollars.

Brent Price Estimation

Med Complex Margin

Tüpraş Net Margin

Operations

Investment

Appendix


February 2018

12M Product Yields

29

White Product %76.56

Production 27,93 mn tons

API 30,62

White Product %76.27


API 30,26

2016

Bitumen%12

Fuel Oil%7

Coke%3

Other%2

ULSD%33

Jet%17

Naphtha%1

Gasoline%20

LPG%4

Black Prod.%22,3

Mid. Distil.%50,4

Light Distil.%25,5

Other%1,7

Bitumen%12

Fuel Oil%7

Coke%3

Other%2

ULSD%33

Jet%17

Naphtha%1

Gasoline%20

LPG%4

Black Prod.%22,6

Mid. Distil.%50,3

Light Distil.%25,0

Other%2,1

2017


February 2018

Q4 Product Yields

30

White Products %77.57


API 30,1

White Products %73.74


API 30,0

2016

Bitumen%13

Fuel Oil%5

Coke%3

Other%1

ULSD%39

Jet%14

Naphtha%1

Gasoline%20

LPG%3

Black Prod.%21,2

Mid. Distil.%52,8

Light Distil.%24,8

Other%1,2

Bitumen%16

Fuel Oil%6

Coke%3

Other%3

ULSD%31

Jet%16

Naphtha%1

Gasoline%21

LPG%3

Black Prod.%25,2

Mid. Distil.%47,0

Light Distil.%24,9

Other%2,9

2017


February 2018

Production by Segment (million tons) vs Crude Oil API

31

0

1

2

3

4

5

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

2,0

2,42,72,52,82,42,1

2,0

2,52,3

1,81,6

1,01,41,31,11,0

1,31,31,0

1,31,61,31,0

Jet Dizel

0,5

1,0

1,5

2,0

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

1,31,51,51,51,51,51,41,41,51,5

1,31,2

Gasoline Naphtha

0,5

1,0

1,5

2,0

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

0,20,2

0,20,20,20,20,2

0,1

0,20,2 1,01,2

0,90,41,01,00,8

0,6

0,80,9

0,7

0,4

0,40,40,5

0,9

0,40,30,4

1,0

0,50,3

1,11,0

Fuel Oil Bitumen Coke

26

28

30

32

34

36

Q 1 Q 2 Q 3 Q 4

30,029,630,4

31,130,130,530,831,1

30,330,3

32,233,1

2015 2016 2017

Middle Distillate Light Distillate

Black Product Crude Oil API

2,53,1

3,8 3,83,0 3,4

3,7 3,9 3,64,0 3,9

3,0 1,3 1,41,6 1,6 1,5 1,5 1,6 1,6 1,5 1,7 1,6

1,4

1,4

1,9

1,5 1,61,7

1,4 1,51,6 1,5 1,7

1,81,6


February 2018

Product Yields (%)

32

%0

%15

%30

%45

%60

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

%31%32%34%36%39%34%32%30

%35%32%27%28

%16%19%17%16%14%18%19%16%18

%21%19%18

Diesel Bitumen

%0

%5

%10

%15

%20

%25

%30

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

%21%19%20%21%20%21%21%22%21%20%20%22

Gasoline Nafta

%0

%5

%10

%15

%20

%25

%30

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

%3%3

%3%3%3%3%3

%2

%3%3

%1

%16%15%12

%6%13%14%13

%9

%12%13

%10%8

%6%5%7%12

%5%5%5

%15

%7%5

%17%18

Fuel Oil Asphalt Coke

Middle Distillate Light Distillate

Black Product

%46 %46%53 %52

%45%51 %52 %53 %52 %51 %51

%47 %23%21 %21 %22 %22 %23 %22 %22 %22

%20 %21 %22

%25%23%21%21%21%22%21

%26

%21%21

%27%26


February 2018

Crack Margin Effect on Tüpraş in 12M (FOB Italy Prices)

33

Product Price, $/ton Tüpraş Crack Margin, $/bbl2017 2016 2016 Yield 2017 2016

LPG 435,2 308,3 %3,3 -15,5 -16,2Gasoline 549,0 462,3 %19,5 13,4 13,3Naptha 467,2 366,6 %1,0 -1,5 -2,3Jet Fuel 512,7 408,9 %15,4 10,9 8,3Diesel 491,0 394,6 %30,4 11,7 9,3Diesel 1000 478,0 384,9 %1,2 9,9 8,0Fuel Oil 1% 315,0 222,3 %0,9 -5,7 -9,4Fuel Oil 3,5% 298,5 205,2 %5,7 -8,2 -12,1Diğer 276,3 200,3 %16,8 -8,5 -10,5

94,4Total Crack Margin,$/bbl 5,5 3,7Dated Brent Avg. $/Bbl 54,3 43,7Margin Differences, $/bbl +1,86Total Processed, mn bbl 213.29Total Effect, mn $ 383.6Total Effect, mn TL 1.398,1

Higher product cracks in 2017 over 2016 indicates a +1.9 $/bbl margin difference, yielding a 1.4 billion TL contribution to Tüpraş Financials.


February 2018

Inventory Effect* Analysis

34

Million USD2016 2017

Crude Product Total Crude Product Total

1st Quarter -9 -13,4 -22,4 26,9 56,2 83,2

2nd Quarter 46,9 70,1 117,0 -30,5 -21,9 -52,4

3rd Quarter 2,3 12,8 15,2 36,9 31,1 67,9

4th Quarter 64,8 58,5 123,4 85,5 84,5 170,0

Oct 20,4 11,7 32,1 34,5 28,1 62,6

Nov 8,3 4,9 13,2 39,6 31,4 71,0

Dec 36,2 41,9 78,1 11,4 25,0 36,4

12 Months 105,1 128,0 233,1 118,8 149,9 268,7

*FX effect Included, hedging excluded


February 2018

Income Statement (In USD)

35

Million USD FY 2016 FY 2017 % Diff. 4Q 2016 4Q 2017 % Diff.

Net Sales 11.547 14.801 28 3.332 3.855 16Gross Profit 1.209 1.705 41 510 366 -28Operating Expenses -330 -316 4 -91 -95 -5Income/Loss from other operations -98 -57 42 -106 -73 31

Operating Profit 781 1.333 71 314 198 -37

Income/Loss from equity investment 53 64 22 8 16 93

Operating Profit Before Fin. Income/Loss 834 1.397 68 322 214 -34

Net Financial Income /Expense -190 -170 11 -35 -21 40

Profit Before Tax & Minorities 644 1.227 91 287 192 -33

Net Profit 594 1.046 76 256 123 -52

* EBITDA (mn.$) 1.125 1.614 43 480 321 -33

* EBITDA (mn.$) CCS 972 1.453 50 418 235 -44



February 2018

Tüpraş Balance Sheet

36

Million USD 31.12.2017 31.12.2016 Difference % DifferenceCurrent Assets 5.399 3.884 1.516 39

Cash & C. Equivalents 2.334 1.719 614 36Receivables 1.355 911 444 49Derivatives 92 10 82 832Inventories 1.403 1.025 377 37

Pre-paid expenses 17 28 -11 -41Other Current Assets 199 190 9 5

Long Term Assets 4.718 4.987 -269 -5Financial Assets & Subsidiaries 303 264 39 15

Fixed Assets 3.263 3.338 -75 -2Derivatives 27 105 -78 -75

Pre-paid expenses 26 68 -41 -61Deferred Tax 813 917 -104 -11

Other Long Term Assets 286 296 -11 -4Total Assets 10.118 8.871 1.247 14Short Term Liabilities 4.686 3.597 1.089 30

Financial Loans 1.398 556 842 151Payables 2.219 2.020 199 10

Derivatives 47 8 39 461Deferred Incomes 5 4 1 24

Provisions 24 18 5 29Other ST Liabilities 993 990 3 0

Long Term Liabilities 2.654 2.953 -299 -10Financial Loans 2.592 2.892 -300 -10

Payables & Provisions 59 59 0 1Derivatives 1 1 0 76

Other LT Liabilities 1 2 0 -8Equity 2.750 2.298 452 20

Minority Interests 28 22 5 24Total Liabilities 10.118 8.871 1.247 14


February 2018

Financial Highlights

37

Million TL 2013 2014 2015 2016 2017

Cash & Cash Equivalents 3.663,1 3.898,4 3.027,5 6.050,7 8.802,1

Total Financial Debt 6.522,0 7.755,0 9.919,4 12.919,4 15.051,0

Net Debt 2.858,9 3.856,6 6.891,9 6.083,5 6.248,9

EBITDA 1.066,1 739,5 3.798,9 3.396,3 5,881,7

Net Debt /EBITDA 2,68 5,22 1,81 1,79 1,06


February 2018

Profitability Indicators, 2016-2017

38

FY(%)

4th Q(%)

2016 2017 2016 2017Dtd.Brent Price, ($/bbl) 43,69 54,27 24,22 49,46 61,39 24

Processed Crude API 30,62 30,26 -1,18 30,10 30,00 -0,3

White Product Yield, (%) 76,56 76,27 -0,29 77,57 73,74 -3,8

Med. Complex Margin,($/bbl) 3,97 5,34 34,5 5,05 4,10 -18,8

Tüpraş Net Margin,($/bbl) 6,03 8,07 33,8 10,06 6,67 -33,7

Operating Profit, (mn.TL) 2.357 4.857 106,1 987 778 -21

Operating Profit for EBITDA, (mn. TL) 2.855 5.308 85,9 1.371 1.091 -20,4

EBITDA (mn.TL)-CMB 2.898 5.431 87 1.122 924 -17,6

EBITDA (mn.TL)-CMB- CCS 2.416 5.464 126 899 1.228 37

EBITDA *(mn.TL) 3.396 5.882 73 1.505 1.237 -18

EBITDA* (mn. TL) CCS 2.914 5.270 81 1.282 896 -30



February 2018

12M Trading Activities

39

Finished Products

High Sulfur Diesel import increased, and ULSD imports decreased due to RUP working with full capacity.

0

200

400

600

800

1000

1200

1400

HS. Diesel ULSD Jet

30

1.158956

203

1.240

466

2016 2017

Product Imports, Ton*000

30

Intermediates

HVGO + LCGO imports increased and LSFO decreased for the conversion units.

0

200

400

600

800

1000

1200

1400

HVGO + LCGO+LCO ASR F.Oil LSFO

757

242

1.129 1.097

0

634

2016 2017

Intermediate Imports, Ton*000

Documents

Q4 2017 Analyst Teleconference - Microsoft · 2018-02-14 · Q4 2017 Analyst Teleconference February 2018 Priorities in 2017 4 Tüpraş transformed itself with the implementation