Press Release for Q3 2017 Financial Results

In a more favorable global refining environment in 2017 compared to last year, Tüpraş continued to carry out its production as a result of its integrated structure and create value for our country and industry. Crude oil price increased from 49 US$ per barrel at the beginning of the third quarter to 57.2 US$ per barrel at the end of the quarter due to OPEC and non-OPEC nations’ compliance to the production-cut agreement, political instabilities in the Northern Iraq and decrease in global stocks. In the third quarter of 2017, refinery fires and strikes in Europe over July and August, as well as the hurricane season in the United States with a significant kick-off in the last week of August disrupted supply of petroleum products. During this time, strong demand increased product margins. As a result of the improving product margins in the third quarter of 2017, the average Mediterranean margin increased to 6.5 US$ per barrel; during the same period, Tüpraş net margin reached to 8.95 US$ per barrel given its higher complexity. During this period, Tüpraş achieved 7.7 million tons of production, and together with trading activities, generated 7.7 million tons of domestic sales and 1.2 million tons of international sales, totaling 8.9 million tons.

Operational and Financial Data

2016 9M 2017 9M Diff. (%) 2016 Q3 2017 Q3 Diff. (%)
Total Charge (Thousand Tons) 21,833 23,726 8.7 7,663 8,064 5.2
Total Sales (Thousand Tons) 22,630 24,177 6.8 8,100 8,899 9.9


Sales Revenue (Mil. TL) Operating Profit (Mil. TL) Profit Before Tax (Mil. TL) Net Profit for the Period (Mil. TL)
24,095 1,501 1,048 990
39,344 4,253 3,720 3,318

As a result of the increases of 13.6% in the average crude oil price, 18.6% in the average USD/TL exchange rate and 10% in sales volume over the same period in 2016, 2017 third quarter net sales increased by 52% to 14.3 Billion TL. Over this period, Tüpraş increased its operating profit to 1.356 Billion TL. With the correct financial risk management policies in place, Tüpraş achieved 1.23 Billion TL profit before tax in the third quarter of 2017. As a result, in the first nine months of 2017, Tüpraş increased its sales revenue to 39.3 Billion TL and its net profit to 3.3 Billion TL. Company balance sheet has been strengthened with the issuance of 700 million US$ Eurobond with 7-year-maturity in the international markets. With the corporate governance rate increase from 94.15 to 94.67 in the third quarter of 2017, Tüpraş continued its investments in line with its targets and made 124.3 million US$ refinery related investments and 73.5 million US$ marine investments during the first nine months of 2017. Our operational processes benefit successfully from our investments exceeding 6 Billion US$ over the last decade.

In refining production where many different areas of expertise are coordinated simultaneously, our work safety rules make up the core value of our work culture without compromise. Despite this fact, our work processes, in line with international standards, are being reviewed after the recent unfortunate event. We are deeply saddened by the loss of our four colleagues due to the incident that took place in İzmir Refinery. Once again, we wish the deceased to rest in peace, and offer our condolences to their families. Tüpraş will continue to stand with families who suffer from the injury or the loss of their loved ones.

Corporate Communications Department