Türkiye Petrol Rafinerileri (TUPRS) Q2 2024 earnings summary

Executive summary

• Achieved highest Q2 sales volume in seven years at 7.8 million tons, up 7% year-over-year, driven by record international sales and strong domestic demand.

• Maintained high operational efficiency with 93.5% capacity utilization despite major maintenance.

• EBITDA for Q2 was TRY 12.4 billion, down 54% year-over-year, reflecting margin pressures and limited inventory gains.

• Net income for Q2 was TRY 5 billion, down 46% year-over-year, impacted by narrower differentials and scheduled maintenance.

• Strong cash reserves and negative net debt to EBITDA, supported by reduced working capital needs and interest income.

Financial highlights

• Q2 2024 revenue reached TRY 191 billion ($5.8 billion), up 4% year-over-year.

• Gross profit for Q2 was TRY 17 billion, down 41% year-over-year.

• Net cash position at quarter-end was TRY 55 billion, with net debt to EBITDA at -1.2x.

• Operating profit for Q2 was TRY 10.6 billion, down 25% year-over-year.

• Routine maintenance negatively impacted profit before tax by TRY 4.4 billion.

Outlook and guidance

• Crack margin guidance for 2024 revised down to $12 per barrel due to weaker market conditions.

• Production and sales guidance unchanged: ~26 million tons production, ~30 million tons sales for 2024.

• Capacity utilization expected at 85%-90% for the year.

• Consolidated CapEx target for 2024 revised to $400 million, with some investments postponed.

• Financial statements prepared under inflation accounting (IAS 29/TMS 29) due to high inflation in Turkey.