3Q23 Results
Investor Presentation
3Q23 financial highlights
Sales | TL13.2bn |
24% QoQ |
TL1.566mn
EBITDA 11,9% margin 699% QoQ
Net | TL2.346mn |
0,95 TL/share | |
Income | |
961% QoQ | |
TL4bn | |
Cash | 1.3x current ratio |
-63% QoQ |
TL25.1bn | |
Net | 12,6x net debt/ |
Debt | EBITDA |
31% QoQ | |
Hizmete Özel (Dış Taraflar) | 2 |
Improved profitability through management initiatives
Petkim was able to access to low-cost feedstock thanks to revised agreement with STAR Refinery
Petkim's average gross unit margins improved from USD56/ton in 2Q23 to USD168/ton in 3Q23
Optimization-focused initiatives resulted in cost efficient operations and improved profitability
Petkim's production capacity level was around 65%
Higher trade contribution in the total portfolio mainly due to lower trading cost and depreciation in TL
USD9.9mn trading gross profit has been recorded
STAR Refinery welcomed Petkim as its new shareholder
Petkim completed its acquisition of 12% indirect share of STAR Refinery
New award for Petkim from Institutional Investor 2023 Europe and Emerging EMEA Equity Awards
Petkim was awarded in the Best Team in IR category in basic materials sector
Hizmete Özel (Dış Taraflar) | 3 |
Industry Environment
Global petrochemical market Petrochemical market in Turkey
Hizmete Özel (Dış Taraflar)
Industry environment
Monthly naphtha - ethylene spread (CIF MED spot prices)
USD/tonne | ||||||||||||||||
2.000 | 1.123 | 1.000 | ||||||||||||||
1.800 | 899 | 872 | 942 | 1.001 1.005 | 900 | |||||||||||
781 | 783 | 819 | 812 | 876 | 759 | |||||||||||
1.600 | 754 | 681 | 683 | 800 | ||||||||||||
1.400 | 700 | |||||||||||||||
1.200 | 600 | |||||||||||||||
1.000 | 754 | 661 | 610 | 642 | 654 | 672 | 694 | 644 | 656 | 632 | 667 | 500 | ||||
800 | 580 | 580 | 536 | 566 | 400 | |||||||||||
600 | 300 | |||||||||||||||
400 | 369 | 357 | 349 | 200 | ||||||||||||
238 | 232 | 248 | 296 | |||||||||||||
200 | 171 | 141 | 165 | 200 | 218 | 115 | 50 | 91 | 100 | |||||||
0 | 0 | |||||||||||||||
Spread | Naphtha | Ethylene |
Monthly average Platts index*
USD/tonne
1.040
928 | 924 | 932 | 936 | |||||||||||||||||||||||||||
890 | 878 | 873 | 869 | 872 | ||||||||||||||||||||||||||
843 | 850 | |||||||||||||||||||||||||||||
813 | ||||||||||||||||||||||||||||||
757 | 768 | |||||||||||||||||||||||||||||
(*) compilation of ethylene, propylene, benzene, toluene, PX, LDPE and PP.
Ethylene prices decreased by 19%, while the cost of naphtha raised by 5% in 3Q23 compared with the 2Q23
Ethylene-naphtha spread considerably narrowed by about 70% from USD287/ton in 2Q23 to USD85/ton in 3Q23
Petrochemical prices rebounded in August on the back of rising feedstock costs, however gains were not enough to lift margins
3Q23 PLATTs index decreased by approximately 4% in comparison with the previous quarter
Hizmete Özel (Dış Taraflar) | 5 |
Industry environment
Product groups spread (over naphtha CIF MED), USD/MT
750
650
550
450
350
250
150
50
Aromatics Polymers Fibers Others Overall
Source: S&P Global Commodity Insights
Key trends in the industry
Demand weakness and over-supply persists
Escalated feedstock and energy costs
Standard naphtha cracker margins tumbled by August as a contrasting view of petrochemical and oil markets led revenue to diverge from upstream costs
Naphtha based producers were pushed to increase polymer prices in August as integrated margins approached breakeven
Polyester value chain profitability remains weak due to oversupply and weak demand, with MEG persistently below breakeven
Improving gasoline market continued to influence heavily on the aromatics chain
Hizmete Özel (Dış Taraflar) | 6 |
Industry environment
Product groups spread (over naphtha CIF MED), USD/MT
Polymers | 1000 | Fibers | |||||
800 | 800 | ||||||
650 | 600 | ||||||
500 | 400 | ||||||
350 | 200 | ||||||
200 | 0 | ||||||
-200 | |||||||
HDPE | LDPE | PP | PVC | MEG | ACN | PTA | DEG |
1100 | Aromatics | Others | |||||
900 | 1080 | ||||||
700 | 780 | ||||||
500 | 480 | ||||||
300 | 180 | ||||||
100 | -120 | ||||||
Benzene | Paraxylene | OrthoXylene | PGP | Crude C4 | PA | PY-GAS | |
Source: S&P Global Commodity Insights | |||||||
Hizmete Özel (Dış Taraflar) | 7 | ||||||
Türkiye's petrochemical sector overview
Türkiye domestic demand is primarily met by imports
Surplus | Arom | |||||||||||||||||||
(k ton) | PVC | LDPE | HDPE | PP | ACN | MEG | PTA | PA | P-X | C-5 | Caustic | Styrene | ||||||||
Naphtha | ||||||||||||||||||||
0 | ||||||||||||||||||||
-200 | ||||||||||||||||||||
-400 | ||||||||||||||||||||
-600 | ||||||||||||||||||||
Deficit | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | |||||||||||||||
(k ton) |
3.000
2.500
2.000
1.500
1.000
500
0
Petrochemical consumption in Türkiye (k ton)
Domestic consumption | Petkim domestic sales | |
2.109 | 1.977 | 2.231 | 2.147 | 2.542 |
251 | 225 | 226 | 230 | 281 |
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
Products market share (cumulative)
C-5 | 58% | |
PA | 51% | |
LDPE | 47% | |
P-X | 21% | |
STYRENE | 16% | |
CAUSTIC | 16% | |
ACN | 15% | |
HDPE | 9% | |
PP | 6% | 11% total |
AROM… | 6% | market share |
PVC | 6% | |
MEG | 4% | |
PTA | 1% |
Hizmete Özel (Dış Taraflar) | 8 |
Operating
and Financial
Results
Hizmete Özel (Dış Taraflar)
Capacity utilization and gross production
Capacity utilization rates (%) | Gross production (k ton) | ||||||||||||||
87% | 100% | 516 | 366 | 572 | 636 | 589 | |||||||||
80% | 700 | 100% | |||||||||||||
90% | |||||||||||||||
120% | 76% | 90% | |||||||||||||
102% | 105% | 80% | 600 | ||||||||||||
66% | 99% | 213 | 80% | ||||||||||||
48% | 88% | 87% | 70% | 500 | 194 | 191 | |||||||||
87% | 87% | 70% | |||||||||||||
163 | |||||||||||||||
60% | |||||||||||||||
80% | 60% | ||||||||||||||
400 | |||||||||||||||
106 | |||||||||||||||
74% | 50% | 103 | 107 | 50% | |||||||||||
80 | |||||||||||||||
54% | 300 | 120 | 28 | ||||||||||||
40% | 16 | 40% | |||||||||||||
21% | 52% | 40% | 15 | 55 | |||||||||||
40% | 32% | 30% | 200 | 162 | 160 | 161 | 162 | 30% | |||||||
18% | 17% | 22% | 23 | ||||||||||||
20% | 97 | 20% | |||||||||||||
17% | 100 | 127 | |||||||||||||
0% | 97 | 116 | 112 | 10% | |||||||||||
12% | 10% | 71 | |||||||||||||
8% | |||||||||||||||
0 | 0% | ||||||||||||||
0% | |||||||||||||||
0% | |||||||||||||||
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | ||||||
Thermoplastics | Fiber | Aromatics | Ethylene | Other | Ethylene | Thermoplastics | Fiber | Aromatics | Other |
In line with its cost optimization strategy, Petkim reduced capacity through suspending uneconomical plants such as MEG, PTA Petkim generated 589kton gross production and capacity utilization rate was 65% in 3Q23
Hizmete Özel (Dış Taraflar) | 10 |
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Disclaimer
Petkim Petrokimya Holding AS published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 10:50:54 UTC.