Total Sales of Tüpraş in H1 2019 Reached 14.4 Million Tons

Tüpraş, Turkey's leading industrial company, has announced its Q2 2019 financial results. Tüpraş, which supports its operations with a strong balance sheet and effective financial risk management policies, increased its production volume by 11% year-on-year to 6.9 million tons. Tüpraş continues to meet the demand of Turkey with dedication by its operational power. The company realized a total sales of 14.4 million tons in the first half of 2019 and successfully continued its responsibility in meeting the fuel need of Turkey.

Tüpraş, Turkey's largest industrial company, has announced its financial results of the second quarter of 2019. Tüpraş successfully fulfilled its responsibility in meeting the fuel need of Turkey again in the first half of 2019 by supporting its operations with effective financial risk management and continuity of its strong balance sheet.

The planned maintenance and improvement shutdown of the Fuel Oil Conversion Facility in Tüpraş İzmit Refinery, which began on 26 February 2019, was completed by 13 May 2019, 14 days before the planned date. The units started production safely at full capacity. Despite extensive and long-term maintenance works during this period, production in the second quarter of 2019 rose by 11% year-on-year and reached 6.9 million tons.

Sales reached 14.4 million tons with a growth of 6% in the first six months of the year. Tüpraş, which continues to meet the demand of Turkey with dedication by its operational power, reached domestic sales of 5.5 million tons and a total sales of 7.1 million tons in Q2 2019. The total sales in the six-month period amounted to 14.4 million tons.

Crude oil price, which started April at $69.2/bbl level, followed an upward trend in April and May but due to worries about global economic slowdown, it decreased by 4.4% in Q2 and closed the first half of the year at $66.2/bbl.

Tüpraş net refinery margin was realized above the Mediterranean margin. Refining profitability was adversely affected in the second quarter due to weak product margins and narrowing heavy-light crude differentials. In this period, the Mediterranean refining margin decreased by 61% year-on-year to $1.7/bbl, while Tüpraş net refinery margin was realized at $2.8/bbl.

Sales revenue amounted to 24 billion TL in Q2. Sales revenue increased by 19% with FX effect and reached 24.0 billion TL in the second quarter of 2019, and in the six-month period, it was realized at 44.7 billion TL. Profit after tax decreased by 15% year-on-year to 870 million TL due to weak refining profitability and higher financing costs compared to last year. Net profit for the first six months amounted to 495 million TL.

Tüpraş, which invested a total of $70 million in CAPEX in refining through the first half of the year, will continue to realize its operational and financial objectives and create added value for its shareholders, business partners, and our country with its increasing global competitive power.
 

Operational and Financial Results
  Q2 2019 Q2 2018 Diff (%) H1 2019 H1 2018 Diff (%)
Operational (Thousand Tons) Total Production 6,918 6,210 11 13,658 11,391 20
Total Sales 7,130 7,359 -3 14,371 13,559 6
 
Financial
(Million TL)
Sales Revenue 23,953 20,081 19 44,661 33,502 33
Operating Profit  1,333 1,066 25 1,561 1,756 -11
Profit Before Tax  584 925 -37 274 1,397 -80
Net Profit  870 1,027 -15 495 1,405 -65
 
Operational and Financial Results
  Q2 2019 Q2 2018 Diff (%) H1 2019 H1 2018 Diff (%)
Operational (Thousand Tons) Total Production 6,918 6,210 11 13,658 11,391 20
Total Sales 7,130 7,359 -3 14,371 13,559 6
 
Financial
(Million TL)
Sales Revenue 23,953 20,081 19 44,661 33,502 33
Operating Profit  1,333 1,066 25 1,561 1,756 -11
Profit Before Tax  584 925 -37 274 1,397 -80
Net Profit  870 1,027 -15 495 1,405 -65