Turkiye Petrol Rafinerileri : Press Release for Q3 2017 Financial Results

14 February 2018

Tüpraş continued to be one of the locomotives of our country's economy by utilizing its full capacity.

Crude oil price did not exceed the $60/bbl level for the first 9 months of 2017, however it closed the year at $66.5/bbl following the rising tensions in Middle East, declining trend in US inventories and OPEC & Russia's decision to continue the production cut. Annual average crude oil price in 2017 was realized at $54.3/bbl, 24% above last year.

Subsequent to relatively weak crack margins in 2016, the normalization trend in 2017 continued also in the last quarter although it has deteriorated at this period to an extent due to seasonally decreasing demand and high global refinery capacity utilization. 2017 average Mediterranean margin was realized at $5.3/bbl, and Tüpraş margin reached $8.1/bbl, surpassing the Mediterranean margin and the targets.

2017 has been a year when records in 2016 have been broken again. Tüpraş increased its production volume by 1 million tons compared to last year and reached a total production of 28.9 million tons in 2017. Along with trade activities, total sales amounted to 31.5 million tons, of which 25.7 million tons were domestic and 5.8 million tons were exports.

Operational and Financial Data
		2016	2017	Diff. (%)	Q4 2016	Q4 2017	Diff. (%)
Operational	Total Throughput (Thousand Tons)	29,601	30,369	2.6	7,767	6,643	-14.5
	Total Sales (Thousand Tons)	30,255	31,493	4.1	7,625	7,316	-4.1
Financial	Sales Revenue (Million TL)	34,855	53,948	54.8	10,760	14,604	35.7
	Operating Profit (Million TL)	2,357	4,857	106.1	987	778	-21.2
	Profit Before Tax (Million TL)	1,944	4,474	130.1	896	754	-15.8
	Net Profit (Million TL)	1.793	3,812	112.6	803	493	-38.6

Q4 2017 sales revenue increased by 36% compared to last year and realized at 14.6 billion TL, and due to the increase in crude oil price by 24%, rise in $/TL exchange rate by 20.8% along with 4% growth in sales volume, Tüpraş generated a sales revenue of 53.9 billion TL.

Tüpraş achieved an operating profit of 778 million TL and a profit before tax of 754 million TL in Q4 2017 with managing its risks with right policies in a period of high volatility. An operating profit of 4.9 billion TL and a net profit of 3.8 billion TL were reached in the full year.

Tüpraş, which invested $185.4 million in refining and $117.6 million in maritime in 2017, became an important player in railway transportation as well next to maritime after forming a subsidiary, Körfez Ulaştırma A.Ş., for railway transport operations to strengthen its logistics capabilities.

Tüpraş will continue to create added value for its shareholders, business partners and our country by achieving its operational and financial objectives with its increasing global competitive power.

We kindly present to public attention.

Corporate Communications Department