Press Release for 3Q 2016 Financial Results

The direction of crude oil price, which closed the first half of 2016 with around 48 $/bbl levels, was negative in the summer months. However, prices tended to increase at the end of September, especially after the agreement of OPEC for supply limitation, and closed the third quarter with the same levels as the beginning of the quarter.

In the first 9 months of 2016, global gasoline demand, supported by vehicle sales and a lower crude oil price environment, remained strong despite the beginning of the low season. Diesel and Jet demand, on the other hand, was lower than last year due to the weakness in industrial consumption and stagnation in tourism. Consequently, profitability of refining in the Mediterranean region was 30% lower than last year. Higher inventory levels caused by increased capacity utilization to meet the gasoline demand continued to put pressure on diesel and jet margins throughout the third quarter. However, with the higher than usual maintenance shutdowns which started at the end of September and the increase in agricultural consumption, profitability of these products increased.

Compared to 2015, Tüpraş increased its sales by 8% (1,752 thousand tons), reaching 22.6 million tons of total sales in the first 9 months of 2016 with the effect of full capacity utilization. Continuing strong demand in Turkey helped domestic sales increase by 15% (2,351 thousand tons).

Operational and Financial Data

	3rd Q 2015	3rd Q 2016	Diff.	9M 2015	9M 2016	Diff.
Total Throughput (Thousand Tons)	7,750	7,663	-87	20,968	21,833	865
Domestic Sales (Thousand Tons)	6,756	6,927	171	16,047	18,398	2,351
Total Sales (Thousand Tons)	7,935	8,100	165	20,877	22,630	1,752
Sales Revenue (Million TL)	10,446	9,451	-10%	27,995	24,095	-%14
Operating Profit (Million TL)	627	665	6%	1,610	1,501	-%7
Profit Before Tax (Million TL)	498	554	11%	1,178	1,048	-%11
Net Profit for the Period (Million TL)	750	581	-23%	1,735	990	-%43

Despite the increase in total sales and the dollar rate, since crude oil prices were 25% lower than last year, sales revenue decreased by 14%. However, even with the weak international refining margins in the first 9 months of 2016, Tüpraş’s Operating Profit realized as 1,501 Million TL with the help of full capacity utilization and increasing sales. Profit Before Tax was 1,048 Million TL, with the Net Profit for the period amounting to 990 Million TL.

Tüpraş, continuously improving and progressing itself with its projects amounting to 5.5 billion dollars in the last 10 years, continued its investments with 202.7 million dollars of spending in the first 9 months of 2016.

While trying to achieve its operational and financial targets through fulfilling our country’s need for fuel by the help of its enhanced competitive power, Tüpraş will continue to create added value for its shareholders, business partners, and our country.

Kindly submitted to the public for information.

Corporate Communications Directorate