Press Release for 4Q 2015 Financial Results

Price of crude oil starting with the level of 55 USD/barrel in 2015 closed the year with the level of USD 36 due to economic risks in China and emerging countries, crude oil production and stock increase occurring on a global basis, lifting of the crude oil export ban of the USA and to the expectation for lifting the economic sanctions to Iran. Correspondingly, the crude oil consumption in 2015 increased to 94.4 million barrel/day with an increase of 1.61 million barrels per day thanks to the demand supported by the low price environment.

With the positive effect of gasoline, jet fuel, and diesel ratios and thanks to the support of the low oil price for global consumption over the year, Mediterranean Refinery Margin increased from 1.95 USD per barrel to 4.38 USD per barrel in the period of 12 months, and in the same period, the net refining margin of Tüpraş reached to 6.47 USD per barrel from 3.21 USD per barrel with the effect of Fuel Oil Conversion Unit.

By means of the margin improvement in the Mediterranean market and Fuel Oil Conversion Unit which started production in May, Tüpraş reached full capacity utilization in the period of 12 months.

With the contribution of the high level of production achieved by Fuel Oil Conversion Unit, Tüpraş’s domestic sales volume in the period of 12 months increased 32%, surpassing consumption growth in Turkey. By the help of full capacity utilization and strong Mediterranean petroleum product ratios, the exports have increased 22% (6.5 million tons) and total sales have increased 29% reaching 28.7 million tons per year.

Operational and Financial Data

	2014	2015	Difference
Total Charge Quantity (Thousand Ton)	21,050	28,807	7,757
Domestic Sales Quantity (Thousand Ton)	16,861	22,245	5,384
Total Sales Quantity (Thousand Ton)	22,194	28,739	6,545
Sales Revenue (Million TL)	39,723	36,893	-%7
Operating Income (Million TL)	419	2,824	574%
Profit Before Tax (Million TL)	184	2,225	1,112%
Net Profit for the year (Million TL)	1,459	2,550	75%

In spite of the increase in sales quantity and USD Currency, sales revenue was 7% lower than 2014 with the effect of 47% lower oil prices compared with last year. However, the operating income increased to 2,824 Million TL due to the high capacity utilization reached by the help of the start of the production in the Fuel Oil Conversion Unit, high performance in the international refinery margins, and the increased white product efficiency. In spite of exchange difference expenses resulting from the increase in USD Currency, the Profit Before Consolidated Tax became 2,225 Million TL, correspondingly with the increase in the operating income. The Net Profit of The Year was 2,550 Million TL with the contribution of the Deferred Tax Income of 472 Million TL arising from Investment Incentive of Fuel Oil Conversion Project.

Capital Expenditure of 343.6 Million USD in total was made in 2015, including the spending for the Fuel Oil Conversion Project.

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's attention.
The Corporate Communication Department