TURKEY’S LARGEST INDUSTRIAL ENTERPRISE
Operating four oil refineries, with a total of 28.1 million tons annual crude oil processing capacity, Tüpraş is Turkey’s largest industrial enterprise. In addition, a majority stake ( 79,98 %) in shipping company DİTAŞ and 40% share ownership of petrol retailer Opet, creates synergies and adds value to the operations. The roots of Tüpraş, an integrated petroleum company with a large market share, corporate reliability, production complexes and affiliates, dates back to İPRAŞ (İstanbul Petrol Rafinerisi A.Ş.) founded by the U.S. Caltex Company. In 1983, İPRAŞ and three other publicly owned refineries were brought under the Tüpraş umbrella by arrangements made for a more effective operation of State Economic Enterprises.
The first step for operational diversification of Tüpraş was the purchase in 2001 of the Petkim Yarımca facilities, putting in place the ready-to-operate infrastructure for enlargement projects that were needed by the refining operations.
According to the Nelson Complexity Index used as an indicator for technical ratings of refineries, the existing refinery complexity of Tüpraş is equal to the complexities of refineries in France on the Mediterranean coast. The existing refinery complexity of Tüpraş (7.25) is higher than the Mediterranean refinery complexity (5.95).
TRANSPORTATION AND DISTRIBUTION PARTNERSHIPS
With crude oil and petroleum products tankers, as well as its expertise in petroleum transportation, DİTAŞ plays an important role in Tüpraş operations: Tüpraş owns a 79.98% share of DİTAŞ. In addition to this affiliation, which provides the logistics for Tüpraş, another affiliate, Opet Petrolcülük A.Ş. joined Tüpraş on December 27, 2006. By acquiring 40% of Opet Petrolcülük A.Ş. shares at US$ 380 million, Tüpraş will be able to follow the requirements and demands of the market more closely and provide a rapid response. Opet, which is the fastest growing Company in the industry, is considered a significant element of Tüpraş’s vision for expanding its services. The vertical integration launched with Opet minimizes Tüpraş’s long time risk while facilitating its potential as a global player in the international arena.
A PROCESS ADDING VALUE TO THE COMPANY AND THE INDUSTRY
July 10, 1990 was a turning point in the history of Tüpraş, which had served for many years as a state economic enterprise, when it was handed over to the Privatization Administration. The Initial Public Offering was carried out in 1991 within the framework of the privatization plan whereby Class A shares corresponding to 2.5% of Tüpraş' equity were offered to the public. By the end of 1999, approximately 3.58% of Tüpraş shares were traded on the İstanbul Stock Exchange. In April 2000, the secondary offering of Tüpraş was completed and the ratio of Class a shares traded on the İstanbul and London Stock Exchanges to total equity reached 34.24%. Tüpraş shares totaling 14.76% were sold to international buyers on the ISE Wholesale Market on March 4, 2005. As a result, 49% of Tüpraş shares are now publicly traded.
During 2005, events that held vital importance for the future of Tüpraş took place. The auction on September 12, 2005 by the Privatization Administration for the block sale of 51% of state-owned Tüpraş’s shares was granted to the Koç-Shell Joint Venture Group at a value of US$ 4.14 billion. Resolution No: 2005/1128 of the Supreme Board of Privatization on November 7, 2005 approved the result of the auction. Accordingly, a Share Purchase Agreement was signed with Koç Holding on January 26, 2006, endorsing the actual transfer of the shares.
EXCELLENT INFRASTRUCTURE, STRONG LOGISTIC AND TOP POSITION IN STORAGE
Tüpraş controls all of Turkey’s refining capacity. In terms of geographical location, its refineries are deployed adjacent to consumption areas and is best suited to meet the needs of the country; doubling the competitive strength of Tüpraş. Tüpraş owns 59% of the total petroleum products storage capacity in Turkey, composing of 1.7 million tons of crude oil, 1.3 million tons of white product and 0.9 million tons of black product. Having such a privileged position, the obligation to reserve an amount of at least 90 days petroleum stock required by Turkey will transform into a significant working potential for Tüpraş.
Strengthening its superior position in the market with Opet, the company with the second highest capacity in terms of terminal and storage advantages, Tüpraş has reached coverage of the entire country, including especially the market east of the Black Sea and Mediterranean regions far from Tüpraş’ own refineries. Tüpraş is now able to meet the needs of the end user throughout all of Turkey, thus reinforcing its dominance in the domestic market by exchanging products and locations with Opet and Aygaz. Tüpraş produces its own power and utilities utilized at its refineries. With the 40 MW cogeneration unit that went on line in 2006 at the İzmit Refinery, Tüpraş has increased its cost advantage while lowering operational risk even more.
STRONG FINANCIAL STRUCTURE
Through product sales, along with collection of taxes and funds like VAT (Value Added Tax) and Private Consumption Tax, Tüpraş is collecting revenue for the government and also an additional income is obtained through effective fund and cash management. Enjoying high level of liquidity as a company acting in the petroleum sector, despite its continued technological investments and the highest amount of dividend distribution, Tüpraş still strengthens its financial parameters and liquidity position. In 2006, Tüpraş took advantage of its strong liquidity position and was able to increase its domestic market share and provide sales flexibility for its customers, effectively blocking the import advantage of other companies and initiating new ventures to sell the goods sent on consignment.