Press Release for Q2 2018 Financial Results

Crude oil price, which started April at $67/bbl level, climbed by %16 during Q2 2018 due to increasing geopolitical risks–mainly Iran–as well as supply disruptions in Libya, Canada and Venezuela. Crude price reached $77.9/bbl by the end of first half of the year and the average price for the first six months was realized at $70.6/bbl.  
In Q2 of 2018, middle distillate cracks–supported by increasing global economic activity, air traffic demand growth and infrastructure investments–were higher than last year; while gasoline and fuel oil cracks fell below last year’s levels. Over the same period, light-heavy crude differentials widened slightly with the effect of refinery maintenances. Mediterranean refining margin in Q2 2018 was $4.4/bbl; while Tüpraş net refinery margin was realized at $12.3/bbl, the best among Q2s over the last 10 years, due to increasing production, FX-stock effect and successful operational activities. In H1 2018, Tüpraş net margin was $8.9/bbl. 
Despite the decline in production due to planned maintenance in Q2 2018, Tüpraş continued to meet the demand of Turkey, with its domestic sales volume of 6.7 million tons. The total sales volume reached 7.4 million tons in Q2, and the total sales of H1 amounted at 13.6 million tons.

Operational and Financial Results
  Q2 2018 Q2 2017 Diff (%) H1 2018 H1 2017 Diff (%)
(Thousand Tons)
Total Production 6,210 7,798 -20.4 11,391 14,877 -23.4
Total Sales 7,359 8,063 -8.7 13,560 15,278 -11.2
(Million TL)
Sales Revenue 20,081 12,631 59.0 33,502 25,000 34.0
Operating Profit 1,066 1,478 -27.9 1,756 2,790 -37.1
Profit Before Tax 925 1,435 -35.5 1,397 2,487 -43.8
Net Profit 1,035 1,464 -29.3 1,422 2,339 -39.2

Following the effects of crude price hike of 16% and FX rate increase of %15, Tüpraş’ sales revenue for Q2 2018 increased by 59%, compared to the same period of last year, and reached 20.1 billion TL, while net profit decreased by 29% to 1,035 million TL. The net profit for the first 6 months was 1,422 million TL.
In the first half of the year, a total investment of $92.6 million was made in refining. Our company's 2018 activities continue as planned. Thereof, no change has been made to the year-end guidance.
The $700 million Eurobond which matured in May 2018, was renewed with a coupon rate of 4.5% in September 2017. Following this, our strengthened balance sheet with diversified funding sources does not require long-term borrowing and is in square FX position. The continuity of strong balance sheet to support our company's operations will be of primal focus also in the coming period.
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