22.2 Million Tons of Total Sales and 179 Million Dollars Worth of Investment from TÜPRAŞ in the First 9 Months

Tüpraş achieved a remarkable growth of 11% in its production, reaching 21.2 million tons in the first 9 months of 2019. The company recently disclosed its financial results for the third quarter of 2019, highlighting its pivotal role in meeting Turkey's fuel demands by delivering a total of 22.2 million tons of sales during the first 9 months of the year.

Tüpraş unveiled its financial results for Q3 2019, emphasizing its unwavering commitment to fulfilling Turkey's fuel requirements throughout the first nine months of the year while maintaining operational efficiency.

Despite the planned maintenance and improvement shutdown of the Fuel Oil Conversion Facility at Tüpraş İzmit Refinery from February 26, 2019, to May 13, 2019, Tüpraş achieved an impressive 11% growth in production during the first nine months compared to the previous year. Total production for this period reached 21.2 million tons, with 7.5 million tons produced in the third quarter alone.

In the third quarter of the year, Tüpraş achieved domestic sales of 6.4 million tons, with total sales reaching 7.8 million tons. For the first nine months, the total sales amounted to 22.2 million tons.

The company reported sales revenue of 68 billion TL, reflecting a 7% growth in the first 9 months.

However, in the third quarter of 2019, Tüpraş faced some challenges, with sales revenues totaling 23 billion TL, experiencing a 23% decline compared to the previous year. This decline can be attributed to an 18% decrease in the average crude oil price for the same period. Despite this, the company's total sales revenues for the first nine months of the year amounted to 68 billion TL, showing a 7% growth.

The refinery margin in the third quarter was negatively impacted by rising costs due to reduced demand, uncertainties in the global economy, expectations of a slowdown, and decreased heavy crude oil supply resulting from geopolitical developments. Other factors contributing to weak refining margins included regulatory changes concerning domestic crude oil prices and price increases in the heavy crude oil processed by Tüpraş.

Furthermore, increased operational costs due to higher natural gas tariffs and financial expenses compared to the previous year resulted in a net loss of 155 million TL in the third quarter of 2019.

Tüpraş has also taken proactive steps to prepare for the International Maritime Organization (IMO) regulation change scheduled for January 1st, 2020. The company successfully completed maintenance activities on its most complex units in the first 9 months of the year, ensuring full compliance with the IMO 2020 regulation.

During the first nine months of the year, Tüpraş invested a total of $179 million in refining and logistics. The company is poised to continue achieving its operational and financial objectives while enhancing its global competitiveness, thereby creating added value for its shareholders, business partners, and the country.

 

Operational and Financial Results
		Q3 2019	Q3 2018	Diff (%)	9M 2019	9M 2018	Diff (%)
Operational (Thousand Tons)	Total Production	7,537	7,690	-2%	21,195	19,081	11%
	Total Sales	7,839	8,703	-10%	22,210	22,263	-0,2%
Financial (Million TL)	Sales Revenue	23,309	30,247	-23%	67,970	63,749	7%
	Operating Profit	608	802	-24%	2,169	2,559	-15%
	Profit Before Tax	-146	678		127	2.075
	Net Profit	-155	542		340	1.947