Türkiye Petrol Rafinerileri (TUPRS) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2025, with resilient cash generation and prudent balance sheet management amid volatile market conditions.

• Q2 2025 saw record domestic gasoline sales, with 1.4 million tons sold, more than double Q2 2018 levels, driven by a 19.6% year-over-year increase in gasoline demand and a shift in vehicle preferences.

• Moody's upgraded the credit rating following Turkey's own rating upgrade, reflecting improved financial credibility.

• Cash reserves reached $2.3 billion at quarter-end, supported by operational performance, improved working capital, and a $500 million sustainability-linked club loan.

• The group completed the acquisition of two Romanian solar companies, Eco Sun and Euromec, in January 2025.

Financial highlights

• Revenue for Q2 2025 was TRY 183 billion ($4.6 billion); H1 2025 revenue was TRY 351.3 billion, down from TRY 499.8 billion in H1 2024.

• Net income for Q2 2025 was TRY 8.9 billion; H1 2025 net income was TRY 8.99 billion, up from TRY 7.23 billion year-over-year.

• EBITDA for Q2 2025 was TRY 15 billion; H1 2025 EBITDA was TRY 25.2 billion, down 18% year-over-year.

• Gross profit for Q2 2025 was TRY 17.8 billion, a 24% decrease year-over-year; H1 2025 gross profit was TRY 31.8 billion.

• Net debt/EBITDA improved to -0.9x for H1 2025, reflecting a strong balance sheet.

Outlook and guidance

• Net refining margin guidance for 2025 remains at $5–$6 per barrel; Q2 margin was $5.3 per barrel.

• Production and sales guidance unchanged: ~26 million tons production, ~30 million tons sales, 90–95% capacity utilization.

• Consolidated CapEx target for 2025 is $600 million; $232 million spent in H1.

• Management expects to recover deferred tax assets from investment incentives within five years.

• No changes in segment structure; focus remains on refining and electricity, with continued international expansion in renewables.