Total Sales of Tüpraş in Q1 2019 Reached 7.2 Million Tons

Tüpraş, Turkey's leading industrial company, has reported its financial results for the first quarter of 2019. Despite planned maintenance activities in the Fuel Oil Conversion Unit at the İzmit Refinery, Tüpraş achieved a production of 6.7 million tons with 94% capacity utilization during the first quarter, ensuring Turkey's fuel needs were met. Domestic sales totaled 5.2 million tons, exports reached 2.1 million tons, resulting in total sales of 7.2 million tons.

In this period, the price of Brent crude, which began January at $53.9 per barrel, increased by 26% to $68.0 per barrel by the end of the first quarter. This was due to reduced supply resulting from high compliance with production cuts by OPEC countries and Russia, as well as sanctions. The average crude oil price for the first quarter was $63.2 per barrel.

Factors affecting the sector's profitability in the first three months of the year included expectations of a global economic slowdown, narrowing heavy-light crude differentials, and refinery maintenance.

The sales revenue for the first quarter of 2019 amounted to 20.7 billion TL, driven by a 17% increase in sales volume and a 41% increase in the average foreign exchange rate compared to the same period the previous year. However, a net loss of 375 million TL was recorded in the first quarter due to rising crude oil and natural gas costs, production loss from maintenance activities at the İzmit Refinery’s Fuel Oil Conversion Unit, higher funding costs, and depreciation of the Turkish Lira compared to the previous year. Investment expenditure for the period was $33 million.

Despite challenges such as decreased heavy oil supply, uncertainties from US-China trade tensions, and heavy maintenance activities, Tüpraş successfully met Turkey’s fuel needs during the first quarter of 2019. The planned maintenance work at the İzmit Refinery’s Fuel Oil Conversion Unit, which began on February 26, 2019, proceeded without disruption and is on track to be completed.

Tüpraş remains committed to achieving its operational and financial objectives, while creating added value for shareholders, business partners, and the country. This is supported by its increasing global competitive power, effective financial risk management policies, and maintaining a strong balance sheet.

Operational and Financial Results

  Q1 2019 Q1 2018 Diff (%)
(Thousand Tons)
Total Production 6,740 5,184  30 
Total Sales 7,241 6,203 17
(Million TL)
Sales Revenue  20,708 13,421 54
Operating Profit  228 690 -67
Profit Before Tax  -310 472 -166
Net Profit -375 378 -199