Türkiye Petrol Rafinerileri (TUPRS) Q1 2025 earnings summary

Executive summary

• Q1 2025 white product yield reached 84.4%, the highest since Q1 2021, following major maintenance completions in 2023 and 2024, positioning operations to benefit from favorable crack margins as the season progresses.

• Operational efficiency improvements and a healthy spread between operating costs and crack margins supported profitability, despite normalization from previous record highs.

• FX losses from Turkish lira depreciation were offset by inventory gains and net interest income, maintaining a strong net cash position.

• Revenue for Q1 2025 was TRY158.6 billion, down from TRY228.5 billion in Q1 2024, reflecting a significant year-over-year decline.

• The company completed the acquisition of two Romanian solar power companies, Eco Sun and Euromec, as part of its strategic transformation plan.

Financial highlights

• Revenues reached TRY 159 billion ($4.2 billion) in Q1 2025, impacted by lower crude prices and crack margins; gross profit was TRY 13 billion.

• Net income for Q1 2025 was TRY 97 million, with a reported EBITDA of TRY 9.6 billion and CCS EBITDA of TRY 6.3 billion.

• Operating profit before financial income/expense was TRY3.8 billion, compared to TRY5.9 billion in Q1 2024.

• Cash and cash equivalents at period end were TRY31.9 billion, down from TRY101.9 billion at Q1 2024 and TRY65.2 billion at year-end 2024.

• Net debt to EBITDA stood at negative 0.5x, with net cash of TRY 25.5 billion at quarter-end.

Outlook and guidance

• Net refining margin guidance for 2025 remains at $5–$6 per barrel; Q1 margin was $4.1 per barrel due to seasonality.

• Production and sales guidance unchanged at 26 million tons and 30 million tons, respectively, with expected capacity utilization of 90–95%.

• CAPEX target for 2025 is $600 million, with $83 million spent in Q1.

• Dividend distribution of TRY29.3 billion in two installments was approved, with the first payment in March and the second scheduled for September 2025.

• The company expects to recover deferred tax assets related to investment incentives within five years, based on long-term business plans and macroeconomic assumptions.