Turkiye Petrol Rafinerileri : Press Release for Q1 2017 Financial Results

4 May 2017

Tüpraş achieved a strong financial performance with full capacity utilization in a positive market environment.

Tüpraş, by utilizing its record level investment - RUP, with full capacity and enjoying the continuing positive trend in the refining sector since the end of 2016, continues to create high added value for our country.
Supply cuts due to the realization of previously postponed refinery maintenances in Q1 2017 along with the shut downs and fire at Middle East refineries left a positive impact on crack margins. On the other hand, increases in product-based profitability, driven by rising demand for heating fuel due to winter conditions and favorable growth figures in leading economies, have increased the Mediterranean margin by 30% compared to Q1 2016, to $5.01/bbl. In the same period, at net margin Tüpraş outperformed the increase in Mediterranean Margin by the effective use of high complexity brought by the Residuum Upgrade Unit and its heavy crude oil processing flexibility, and with its strong operational management.
Tüpraş, which operated at full capacity in Q1 2017, increased its sales by 5% compared to last year by selling 7.2 million tons with 7.5 million tons of throughput reached including 'semi-products'.

Operational and Financial Data
		Q1 2016	Q1 2017	Diff.
Operational	Total Throughput (Thousand Tons)	7,006	7,477	471
	Total Sales (Thousand Tons)	6,875	7,215	340
Financial	Sales Revenue (Million TL)	6,191	12,370	6,179
	Operating Profit (Million TL)	274	1,312	1,038
	Profit Before Tax (Million TL)	96	1,052	956
	Net Profit (Million TL)	83	876	793

Thanks to the 5% increase in sales volume and the average oil price which was 58% higher than last year, sales revenue in 2017 reached 12.4 billion TL, nearly doubling from last year. Supported by the increase in international refining profitability and with the help of its financial and operational performance, Tüpraş achieved an Operating Profit of 1,312 million TL in Q1 2017. Thanks to the successful financial risk management strategies, operational profitability in the fluctuating financial environment has been preserved and Profit Before Tax of 1,052 million TL and Net Profit of 876 million TL have been realized. Tüpraş, with its strong financial structure and operational success, has generated cash of 873 Million TL from its operations in Q1 2017 and has been able to maintain its investment grade rating and appearance despite the downward revisions made in the country's note. Tüpraş regularly reduces its net debt level, which increased by the RUP related loans; net debt/EBITDA ratio reached 1.22, the lowest level in the last three years. Tüpraş, which continues its investments, made a total investment of US$ 46.6 million in Q1 2017. Tüpraş, with its increasing global competitive power, will continue to fulfill its operational and financial objectives by meeting the fuel needs of the country at the highest quality, and to create added value for its shareholders, business partners and our country.
Corporate Communications Directorate