Press Release for 2Q 2016 Financial Results

Crude oil price, which was 39 $/bbl at the end of the first quarter of 2016, closed the second quarter at the level of 48 $/bbl with the impact of wildfires in Canada, terrorist incidents in Nigeria, political disputes in Libya and decreasing number of wells in America on production.

In the first half of 2016, demand for gasoline in international markets has increased with the effect of rising consumption in countries such as China, India and USA. However, demand for diesel fuel and jet fuel has remained weak due to the economic weakness as well as monsoon rains and terrorist attacks. Increasing global capacity utilization rates due to the high gasoline cracks added with the increasing Chinese production after the permissions granted to small-scale refineries for crude oil processing despite the low demand in China created excess supply of products. Consequently, since the demand for the products other than gasoline have not increased enough, the oversupply decreased crack margins and profitability of refineries decreased around 50% globally yoy.

Despite the fact that international refinery profits have been cut in half and despite the halts, Tüpraş achieved full-capacity utilization in the first half of 2016.

In the first six months of 2016, sales of Tüpraş reached to 14.5 Million Tons with an increase of 12% (1,588 Thousand Tons), while the domestic sales increased by 23% (2,180 Thousand Tons) thanks to the strong domestic demand.

Operational and Financial Data First Half Year 2015 First Half Year 2016 Difference
Total Charge Amount (Thousand Tons)                     13,217                     14,171                     954
Domestic Sales Amount (Thousand Tons)                       9,291                     11,471                  2,180
Total Sales Amount (Thousand Tons)                     12,942                     14,530                  1,588
Sales Revenues (Million TL)                     17,549                     14,645                   -17%
Operating Profit (Million TL)                          974                          767                   -21%
Profit Before Tax (Million TL)                          680                          495                   -27%
Net Profit for the Period (Million TL)                          985                          409                   -58%

Despite the increase in sales quantity and exchange rate, our sales revenue in H1 2016 was 17% lower than H1 2015 due to the 31 % decrease in oil prices yoy. Although global refining margins were weaker in H1 2016, Tüpraş achieved to have an Operating Profit of 767 Million Turkish Liras thanks to the increase in its capacity utilization and sales. After the affect of non-operating profit and net financing expenses, Consolidated Profit before Tax is 495 Million Turkish liras and Net Profit for the Period is 409 Million Turkish Liras.

Tüpraş carried out significant projects with a total investment value of 5.5 Billion Dollars in the last decade and carries on projects in 2016, which will have a favorable impact on its profitability. In this manner, total investment expenditure of Tüpraş is 127.9 Million Dollars in the first half of 2016.

Tüpraş, will sustainably continue its operational and financial achievements and keep creating added value for its shareholders, business partners and for the country, thanks to its strong human resources.

We kindly present to the public attention.

Corporate Communication Department