Turkiye Petrol Rafinerileri : 3Q 2016 Financial Results

Turkish Petroleum Refineries Corporation (TÜPRAŞ)

THE CONSOLIDATED INCOME STATEMENT

In accordance with Capital Market Board Regulations

Unaudited Income Statement			Unaudited Income Statement
(1000 TL)			(1000 USD)
01.07. 2016 - 30.09.2016	01.07.2015- 30.09.2015	% change	01.07. 2016 - 30.09.2016	01.07.2015- 30.09.2015	% change
Revenue	9.450.882	10.445.504	(10)	3.199.061	3.685.562	(13)
Cost of sales	(8.533.401)	(9.232.818)	(8)	(2.888.044)	(3.251.867)	(11)
Gross profit (loss)	917.481	1.212.686	-24	311.017	433.695	-28
General administrative expenses	(183.689)	(174.269)	5	(62.081)	(61.776)	0
Marketing expenses	(55.797)	(51.840)	8	(18.872)	(18.405)	3
Research and development expenses	(7.129)	(4.880)	46	(2.409)	(1.666)	45
Other operating income	(56)	40.125	(100)	(177)	14.216	(101)
Other operating expenses	(67.041)	(427.732)	(84)	(22.840)	(156.101)	(85)
Operating profit (loss)	603.769	594.090	2	204.638	209.963	-3
Income/(expense) from investment activities	10	557	(98)	4	207	(98)
Income (loss) from investments accounted by equity method	61.476	31.882	93	20.851	11.871	76
Operating profit (loss) before financial income (expense)	665.255	626.529 6		225.493	222.040	2
Financial income	197.164	508.224	(61)	67.013	184.384	(64)
Financial expense	(308.649)	(636.718)	(52)	(104.485)	(228.498)	(54)
Profit (loss) before tax from continued operations	553.770	498.035	11	188.021	177.926	6
Tax income (expense)	31.968	252.478	(87)	11.020	90.673	(88)
Taxes on income	(54.677)	(6.947)	687	(18.565)	(2.533)	633
Deferred tax income (expense)	86.645	259.425	(67)	29.585	93.207	(68)
Net profit (loss) from continued operations	585.738	750.513	-22	199.040	268.599	-26
Other comprehensive income:
Items to be reclassified to profit or loss	(85.512)	(511.213)	(83)	(29.072)	(191.812)	(85)
Changes in currency translation	773	3.981	(81)	264	1.451	(82)
Gains (losses) on hedging	(106.990)	(643.994)	(83)	(36.374)	(238.462)	(85)
Tax effect of other comprehensive income to be reclassified to profit or loss	20.705	128.800	(84)	7.039	47.693	(85)
Deferred tax (expense) income	20.705	128.800	(84)	7.039	47.693	(85)
Other comprehensive income (expense)	(85.512)	(511.213)	(83)	(29.072)	(191.812)	(85)
Total comprehensive income (expense)	500.226	239.300	109	169.968	76.787	121

Distribution of income (loss) for the period:
Non-controlling interests	4.868	490	893	1.646	96	1.620
Attributable to equity holders of the parent	580.870	750.023	(23)	197.394	268.504	(26)
Distribution of total comprehensive income
Non-controlling interests	4.173	340	1.127	1.409	41	3.360
Attributable to equity holders of the parent	496.053	238.960	108	168.559	79.240	113
Earnings (loss) per share from continued operations
Earnings per share with nominal value Kr 1 each (Kr)	2,32	3,00	(23)	0,79	1,07 (26)
EBITDA CMB :	01.07. 2016 - 30.09.2016	01.07.2015- 30.09.2015	% change
Operating profit (loss)	603.769	594.090	1,6
Total Depreciation	136.361	131.477	3,7
EBITDA, (1000 TRY)	740.130	725.567	2
EBITDA, (1000 USD)	250.703	256.848 -2

Turkish Petroleum Refineries Corporation (TÜPRAŞ)

THE CONSOLIDATED INCOME STATEMENT

In accordance with Capital Market Board Regulations

Unaudited Income Statement			Unaudited Income Statement
(1000 TL)			(1000 USD)
01.01. 2016 - 30.09.2016	01.01.2015- 30.09.2015	% change	01.01. 2016 - 30.09.2016	01.01.2015- 30.09.2015	% change
Revenue	24.095.452	27.994.812	(14)	8.215.012	10.539.422	(22)
Cost of sales	(22.045.598)	(25.157.894)	(12)	(7.516.143)	(9.471.385)	(21)
Gross profit (loss)	2.049.854	2.836.918	-28	698.869	1.068.036	-35
General administrative expenses	(529.290)	(446.637)	(446.637)	(180.454)	(168.149)	7
Marketing expenses	(151.591)	(130.820)	(130.820)	(51.683)	(49.251)	5
Research and development expenses	(20.593)	(17.073)	(17.073)	(7.021)	(6.428)	9
Other operating income	99.846	103.358	103.358	34.041	38.912	(13)
Other operating expenses	(77.688)	(778.111)	(778.111)	(26.487)	(292.941)	(91)
Operating profit (loss)	1.370.538	1.567.635	-13	467.266	590.180	-21
Income/(expense) from investment activities	(126)	769	769	(43)	290	(115)
Income (loss) from investments accounted by equity method	130.147	41.259	41.259	44.372	15.533	186
Operating profit (loss) before financial income (expense)	1.500.559	1.609.663	-7	511.595	606.002	-16
Financial income	328.715	1.002.239	1.002.239	112.071	377.321	(70)
Financial expense	(780.951)	(1.433.523)	(1.433.523)	(266.254)	(539.689)	(51)
Profit (loss) before tax from continued operations	1.048.323	1.178.379	-11	357.411	443.633	-19
Tax income (expense)	(44.460)	563.675	(108)	(15.158)	212.211	(107)
Taxes on income	(103.118)	(12.790)	(12.790)	(35.157)	(4.815)	630
Deferred tax income (expense)	58.658	576.465	576.465	19.999	217.026	(91)
Net profit (loss) from continued operations	1.003.863	1.742.054	-42	342.253	655.844	-48

Other comprehensive income:
Items to be reclassified to profit or loss	(137.615)	(734.511)	(81)	(46.918)	(276.527)	(83)
Changes in currency translation	743	7.358	7.358	253	2.770	(91)
Gains (losses) on hedging	(171.878)	(927.338)	(927.338)	(58.599)	(349.122)	(83)
Tax effect of other comprehensive income to be reclassified to profit or loss	33.520	185.469	(82)	11.428	69.825	(84)
Deferred tax (expense) income	33.520	185.469	185.469	11.428	69.825	(84)
Other comprehensive income (expense)	(137.615)	(734.511)	(81)	(46.918)	(276.527)	(83)
Total comprehensive income (expense)	866.248	1.007.543	-14	295.335	379.317	-22

Distribution of income (loss) for the period:
Non-controlling interests	13.564	6.799	6.799	4.624	2.560	81
Attributable to equity holders of the parent	990.299	1.735.255	1.735.255	337.629	653.285	(48)
Distribution of total comprehensive income
Non-controlling interests	12.617	6.542	6.542	4.302	2.463	75
Attributable to equity holders of the parent Earnings (loss) per share from continued operations	853.631	1.001.001	1.001.001	291.034	376.855	(23)
Earnings per share with nominal value Kr 1 each (Kr)	3,95	6,93	(42,93)	1,35	2,61	(48,32)
EBITDA CMB :	01.01. 2016 - 30.09.2016	01.01.2015- 30.09.2015	% change
Operating profit (loss)	1.370.538	1.567.635	-12,6
Total Depreciation	406.223	317.159	28,1
EBITDA, (1000 TRY)	1.776.761	1.884.794	-6
EBITDA, (1000 USD)	605.762	709.583	-15

CB Dollar Rate, USD/TL 2,9331 2,6562

Turkish Petroleum Refineries Corporation (TUPRAS)

CONSOLIDATED BALANCE SHEET

In accordance with Capital Market Board Regulations

Unaudited Balance Sheet (1000 TL)	Audited Balance Sheet (1000 TL)	% change	Unaudited Balance Sheet (1000 USD)	Audited Balance Sheet (1000 USD)	% change
30-Sep-2016	31-Dec-2015		30-Sep-16	31-Dec-2015
Current assets	13.367.090	8.674.981	54	4.461.794	2.983.554	50
Cash and cash equivalents	7.326.601	3.027.546	142	2.445.543	1.041.253	135
Trade receivables (net)	2.208.088	2.539.832	(13)	737.037	873.515	(16)
Due from related parties	334.871	658.673	(49)	111.776	226.535	(51)
Trade receivables from unrelated parties	1.873.217	1.881.159	(0)	625.260	646.980	(3)
Other receivables	36.583	25.815	42	12.211	8.878	38
Due from unrelated parties	36.583	25.815	42	12.211	8.878	38
Derivatives	16.892	18.845	(10)	5.638	6.481	(13)
Inventories	2.918.390	2.102.161	39	974.128	722.988	35
Prepaid expenses	135.747	132.093	3	45.311	45.430	(0)
Assets related to current period tax	95.202	4.317	2.105	31.777	1.485	2.040
Other current assets	629.587	824.372	(24)	210.150	283.523	(26)
Non-current assets	17.150.771	16.795.135	2	5.724.747	5.776.288	(1)
Financial investments	4.000	4.000	-	1.335	1.376	(3)
Investment accounted by equity method	851.107	762.217	12	284.091	262.146	8
Investment property	4.621	4.621	-	1.542	1.589	(3)
Property, plant and equipment	11.575.007	11.479.744	1	3.863.616	3.948.185	(2)
Intangible assets(net)	50.331	59.409	(15)	16.800	20.432	(18)
Other intangible assets	50.331	59.409	(15)	16.800	20.432	(18)
Derivatives	219.034	250.027	42	73.111	85.991	(15)
Prepaid expenses	254.911	179.695	0	85.087	61.802	38
Deferred tax assets	3.206.441	3.202.503	16	1.070.276	1.101.425	(3)
Other non-current assets	985.319	852.919	20	328.889	293.341	12
TOTAL ASSETS	30.517.861	25.470.116	20	10.186.542	8.759.842	16
Current Liabilities	13.239.573	8.828.240	50	4.419.231	3.036.264	46
Short-term financial liabilities (net	640.233	94.023	581	213.703	32.337	561
Current portion of long-term financial liabilities(net)	2.711.041	1.777.358	53	904.917	611.280	48
Trade payables (net)	5.880.263	3.878.036	52	1.962.770	1.333.758	47
Due to related parties	59.029	80.273	(26)	19.703	27.608	(29)
Other trade payables	5.821.234	3.797.763	53	1.943.067	1.306.150	49
Payables related to employee benefits	38.566	70.129	(45)	12.873	24.119	(47)
Other payables	11.000	14.288	(23)	3.672	4.914	(25)
Other payables to unrelated parties	11.000	14.288	(23)	3.672	4.914	(25)
Derivatives	182.341	40.379	352	60.864	13.887	338
Deferred income	2.176	23.111	(91)	726	7.948	(91)
Current period corporate tax provision	152.702	133.346	15	50.970	45.861	11
Short-term provisions	132.309	70.604	87	44.163	24.283	82
Employee benefits	56.877	7.952	615	18.985	2.735	594
Other provisions	75.432	62.652	20	25.178	21.548	17
Other current liabilities	3.488.942	2.726.966	28	1.164.572	937.875	24
Non-current Liabilities	9.472.978	8.273.427	14	3.145.074	2.836.079	11
Long-term financial liabilities(net)	9.220.623	8.048.039	15	3.077.747	2.767.932	11
Long-term provisions	197.872	193.973	2	66.048	66.712	(1)
Employee benefits	197.872	193.973	2	66.048	66.712	(1)
Deferred incomes	2.367	2.560	(8)	790	880	(10)
Other non-current liabilities	50.652	27.244	86	16.907	9.370	80
Derivatives	1.464	1.611	(9)	489	554	(12)
TOTAL LIABILITIES	22.712.551	17.101.667	33	7.581.211	5.881.712	29
EQUITY	7.805.310	8.368.449	(7)	2.622.238	2.887.499	(9)
Share capital	250.419	250.419	-	83.587	86.126	(3)
Adjustment to share capital	1.344.243	1.344.243	-	448.694	462.320	(3)
Share premiums/discounts	172	172	-	57	59	(3)
Accumulated other comprehensive income/(expense) not to be reclassified to profit or loss	(3.622)	(3.622)	-	(1.209)	(1.246)	(3)
Revaluation and reclassification gains/(losses)	(3.622)	(3.622)	-	(1.209)	(1.246)	(3)
Actuarial gain/(loss) arising from defined benefit plans	(3.622)	(3.622)	-	(1.209)	(1.246)	(3)
Accumulated other comprehensive income/(expense) to be reclassified to profit or loss	(547.299)	(410.631)	33	(172.853)	(192.832)	(10)
Hedging gains/(losses)	(647.859)	(510.448)	27	(216.249)	(175.556)	23
Cash flow hedge gains/(losses)	(647.859)	(510.448)	27	(216.249)	(175.556)	23
Currency translation differences	18.299	17.556	4	15.938	(45.567)	(135)
Share of other comprehensive income accounted for investment using equity method that will be reclassified to profit or loss	82.261	82.261	-	27.458	28.292	(3)
Restricted reserves	331.337	163.401	103	110.597	56.198	97
Retained earnings	5.363.804	4.410.959	22	1.790.382	1.517.045	18
Net Income for the period	990.299	2.550.168	(61)	337.629	938.045	(64)
Total equity attributable to equity holders of the parent	7.729.353	8.305.109	(7)	2.596.884	2.865.715	(9)
Non-controlling interest	75.957	63.340	20	25.354	21.784	16
TOTAL EQUITY AND LIABILITIES	30.517.861	25.470.116	20	10.186.542	8.759.842	16

Foreign Exchange Rate TL/USD 2,9959 2,9076

Production KEY OPERATIONAL DATA

Products	9M 2016	9M 2015	2016/2015 mton %
LPG	733.459	652.016	81.443	12
NAPTHA	217.713	216.487	1.226	1
SOLVENT	6.095	7.344	(1.250)	(17)
GASOLINES	4.288.868	4.024.475	264.393	7
JET FUEL	3.458.952	3.753.381	(294.429)	(8)
KEROSENE	62.769	77.039	(14.270)	(19)
GASOIL	6.543.576	5.678.591	864.985	15
FUEL OIL	1.687.721	2.498.081	(810.360)	(32)
BITUMEN	2.475.686	2.034.213	441.473	22
HVGO	40.446	75.502	(35.055)	(46)
LUBE OIL	101.222	110.885	(9.664)	(9)
SULPHUR	208.773	166.246	42.527	26
COKE	456.203	262.879	193.324	74
OTHERS	36.454	28.860	7.595	26
TOTAL	20.317.938	19.585.999	731.939	4

Total Sales

Products	9M 2016	9M 2015	2016/2015 mton %
LPG	869.836	768.143	101.693	13
NAPTHA	178.537	214.360	(35.823)	(17)
SOLVENT	6.414	7.502	(1.088)	(15)
GASOLINES	4.251.174	4.024.446	226.729	6
JET FUEL	3.628.273	3.744.202	(115.929)	(3)
KEROSENE	12.765	44.546	(31.781)	(71)
GASOIL	7.999.720	6.630.336	1.369.384	21
FUEL OIL	2.386.565	2.952.687	(566.122)	(19)
BITUMEN	2.492.825	1.973.876	518.949	26
LUBE OIL	86.304	92.060	(5.756)	(6)
SULPHUR	208.358	157.721	50.637	32
COKE	477.098	234.072	243.026	104
OTHERS	31.990	33.743	(1.753)	(5)
TOTAL	22.629.859	20.877.694	1.752.165	8

Export

Products	9M 2016	9M 2015	2016/2015 mton %
LPG	19.528	20.032	(505)	(3)
NAPTHA	9.046	26.867	(17.821)	(66)
GASOLINES	2.115.460	2.220.404	(104.943)	(5)
REFORMATE	503.315	262.706	240.609	92
JET FUEL	126.090	125.286	805	1
GASOIL	48.183	50.549	(2.367)	(5)
FUEL OIL	1.248.722	2.121.360	(872.638)	(41)
ASRFO	159.239	0	159.239	0
SOLVENT	2.129	3.265	(1.136)	(35)
TOTAL	4.231.713	4.830.470	(598.757)	(12)