Press Release for Q1 2018 Financial Results

Despite investment related activities and planned maintenances, Tüpraş continued to respond to the strong domestic demand during 2018 1Q. 
Starting the year 2018 at $66,6/bbl, crude oil price has been supported by continuing compliance of OPEC countries and Russia to the cut agreement along with the increasing geopolitical risks in the Middle East. However, increasing US production had an adverse impact, balancing crude prices at $67,3/bbl on average, with 1% increase in 3 months.
Thanks to the strong economic activities during the first quarter supported by hard winter conditions, diesel and jet crack margins have been above last year while gasoline and fuel oil margins fell short of 2017 1Q. During the same period, price difference between light and heavy crude oils has been narrowed with the impact of continuing OPEC cut agreement. Mediterranean margin was realized at $4,0/bbl while Tüpraş margin averaged at $4,8/bbl, falling short vs. that of 2017 1Q ($8,7/bbl) due to above mentioned impacts.  
Despite decrease in production due to planned maintenance activities, Tüpraş continued to respond to the strong domestic demand during 2018 1Q, increasing its domestic sales by 5% and reaching to 5,2 million tons, while total sales has reached to 6,2 million tons. 

Operational and Financial Results
  1Q 2018 1Q 2017 Diff (%)
Operational Total Production (KTon) 5.180 7.080 -27
Domestic Sales (KTon) 5.203 4.956 5
Total Sales (KTon) 6.201 7.215 -14
Financial Sales Revenue (Million TL) 13.421 12.370 8
Operating Profit (Million TL) 690 1.312 -47
Profit Before Tax (Million TL) 472 1.052 -55
Net Profit (Million TL) 387 876 -56

Tüpraş 2018 1stquarter sales increased by 8% vs. last year and reached to 13,4 billion TL, mainly due to increasing product prices driven by 24% increase in crude oil price and 3% increase in USD/TL forex rate.  
Operating profit has declined by 47% and profit before tax has declined by 55% vs. last year and resulted as 690 million TL and 472 million TL respectively, due to narrowing heavy-light crude oil price differences, deterioration in overall crack margin and planned maintenances.  
Tüpraş has continued its investments in line with company’s targets during the first three months of the year, with a capital expenditure of $63 million on refinery. 2018 year-end operation targets of Tüpraş, which is already shared with the investors, have not been changed and targets of full capacity production along with Tüpraş refinery margin surpassing Mediterranean margin have been addressed again. 
Tüpraş will continue to create added value for its shareholders, business partners and our country by achieving its operational and financial objectives with its increasing global competitive power.
We kindly present to public attention.
Corporate Communications Department