Press Release for 3Q 2015 Financial Results

Continuing increases in supply along with a variety of political and economic developments, kept the price of crude oil low but volatile. From 55 dollars per barrel at the beginning of the year, oil prices fell to 45 dollars a barrel before rebounding as high as 65 dollars due to higher than expected demand, falling rig counts in the USA and geopolitical factors. Positive developments in the Iran Sanctions related negotiations increased expectations of supply growth, and with the perception of increasing economic risks in China and Emerging Countries oil prices fell to 47 $/bbl at the end of September.

With the support of high seasonal consumption and low oil prices, Gasoline and Gasoil price ratios in the Mediterranean market increased in the third quarter, and the benchmark Mediterranean refinery margin increased from 3.45 $/bbl last year to 4.92 $/bbl, while for the nine-month period increased from 1.31$/bbl to 5.26 $/bbl. During the same period, Tüpraş’s net refining margin was increased from 2.71 $/bbl to 6.89 $/bbl.

With the positive contribution of improvement in margins and production at The Residuum Upgrading Complex which had started in May, Tüpraş reached full capacity utilization in the third quarter and broke company records for a 9-month period with the average capacity utilization of 99%.

As well as the high production achieved with The Residuum Upgrading Complex, supported by our customer-focused sales strategy, Tüpraş's domestic sales increased by 27%, more rapidly than the country's demand growth in the nine-month period. Exports were supported by full capacity utilization and strong Mediterranean product ratios, rising 38%. Total sales, therefore, increased by 30% (4.8 million tons) compared to last year to reach 20.9 million tons.

Operational and Financial Data

	9 Months 2014	9 Months 2015	Difference
Total Volume Processed (ton*000)	15,293	20,968	5,674
Domestic Sales (ton*000)	12,594	16,047	3,454
Total Sales (ton*000)	16,105	20,878	4,772
Revenues (Million TL)	30,686	27,995	-%9
Operating Profit (Million TL)	448	1,610	259%
Profit/Loss Before Tax (Million TL)	279	1,178	323%
Net Profit (Million TL)	1,246	1,735	39%

Despite significant sales volume increases and Turkish Lira depreciation, sales revenues fell 9% due to a 48% decrease in crude oil prices versus last year. However, high performance in the global refinery margin environment, high capacity utilization, the Residuum Upgrading Project coming into operation, and large increases in sales, compared to last year, meant that operating profits grew by 1,162 Million TL to reach 1,610 Million TL. Despite foreign exchange losses due to a weakening currency, consolidated pre-tax profits rose by 899 Million TL to reach 1,178 Million TL. Together with a contribution of 576 million TL for tax incentives from RUP, net income for the period was 1,735 million TL.

Including expenditure on the Residuum Upgrading Project, investments in the first 9 months of 2015 reached 275.7 Million Dollars. The Residuum Upgrading Project units are all producing at full capacity.

Whilst striving to ensure the guarantee of supply of the highest quality products to the Turkish market, by sustainably realizing operational and financial targets, we continue to generate greater value for our shareholders, other stakeholders, and society in the future.

For the information of the public.
The Corporate Communications Department