Ömer M. Koç, Chairman of Board of Directors of Koç Holding and Tüpraş

Ömer M. Koç, Chairman of Board of Directors of Koç Holding and Tüpraş:

“Successfully managing its operations within the framework of strong risk policies in 2018, Tüpraş has managed to maintain its working capital and strong balance sheet, recording a net profit of 3.8 billion USD. Tüpraş continued to invest in sustainability in 2018, with its total investments in refining exceeding 6 billion USD.”

The 59th General Assembly Meeting of Tüpraş was organized in the company’s head office in Körfez, Kocaeli on 20 March 2019; in which financial statements of Tüpraş for the year 2018 were approved and Board of Directors was released. Ömer M. Koç, Ali Y. Koç, Rahmi M. Koç, Semahat Sevim Arsel, Levent Çakıroğlu, Yağız Eyüboğlu and Erol Memioğlu were elected as the members of Board of Directors; Muharrem Hilmi Kayhan, Ayşe Canan Ediboğlu and Kamil Ömer Bozer were elected as independent members of Board of Directors and Zafer Sönmez was elected as Representative of the C Group shares of Privatization Administration / Independent Member of Board of Directors to be commissioned until the General Assembly Meeting to be held in 2020.

The Board of Director’s proposal for distribution of profit for the year 2018 and the date of distribution was accepted and accordingly a cash dividend of TL 15.15 gross per share and TL 12.8775 net per share is to be paid to shareholders; depending on their tax obligation status, from the current period profit for the year 2018.

Ömer M. Koç, Chairman of Board of Directors of Koç Holding and Tüpraş, highlighted in his message for shareholders in the General Assembly that total amount of investments by Tüpraş in the last 13 years has exceeded 6 billion USD and said, “Tüpraş has continued to perform its operations in line with all global and local developments that affect our sector. Backed by its capability to process heavy and high-sulfur crude oil and the ever-expanding crude oil supply pool, 20 different varieties of crude oil were purchased from 12 countries to achieve the most optimal charge composition. Tüpraş realized 25.7 million tons of production in 2018 with a 95.9% capacity utilization rate, despite the modernization work being carried out in İzmir Refinery crude oil unit and the important planned maintenance stoppages in İzmit and Kırıkkale refineries. Tüpraş recorded domestic sales of 25.6 million tons and total sales of 29.8 million tons, with total turnover reaching TL 88.6 billion particularly as a result of strong demand and the record sales volumes achieved in diesel and jet fuel products. Despite being a period marked by significant operational and financial risks, Tüpraş successfully managed its operations within the framework of strong risk policies in 2018 and maintained its working capital and strong balance sheet, recording a net profit of TL 3.8 billion.

Stating that Tüpraş opened a Trade Office in London in 2018 in order to strengthen its operational efficiency by integrating with international markets, Ömer M. Koç added, “In line with the work on the digital transformation initiated last year, Tüpraş started to implement Industry 4.0 projects that significantly improved the refinery processes. Our Data Analytics Centers, opened in 2018 at the METU and ITU Technocities, have started to provide analytical services to other companies with the experience and knowledge gained in this context. In 2018, Tüpraş continued to create economic value added through its production, while at the same time continuing to carry out social projects in the fields of culture, the arts and education to meet the needs of our country. Tüpraş, a supporter of the HeforShe movement under the leadership of our Group, conducts training and sponsorship activities in order to raise awareness of women’s empowerment both in the workplace and in society.

The main priority in all of the operational and financial achievements we have reached, and one on which we shall never compromise, is occupational safety and technical safety, as guided by the wise words of the late Vehbi Koç, the founder of the Koç Group, who stated ‘Our most important capital is our human resources’. By reviewing all of our processes through this awareness, our highest responsibility is to ensure that our work processes become ever safer with each passing day.

Despite the difficulties experienced, we completed 2018 with a successful set of business results. In the view of the decline in global trade, the difficulties posed by the financial conditions around the world and the mounting uncertainties in the commodity markets, it is clear that 2019 will be a challenging year, especially for developing countries. Thanks to our operational efficiency and strong financial structure, I have the utmost confidence that Tüpraş will achieve successful business results next year as well.”