Tüpraş announced the financial results for the fourth quarter of 2020. Tüpraş had a capacity utilization of 84 % while total production and sales realized as 6.1 and 6.3 million tons, respectively, as pressure on demand for petroleum products started to ease.
In 2020 Tüpraş made 806 million TL worth of investments while continuing its projects on modernization and energy efficiency. Due to the adverse impact of COVID-19, the annual production of Tüpraş declined by 17% to 23.4 million tons while total annual sales decreased to 24.5 million tons by 16%.
The decline in mobility driven COVID-19 has kept the global petroleum products demand under pressure throughout 2020. As an outcome of the dramatic drop in global flight numbers, jet fuel crack margins were especially affected falling to historically low levels – even below zero for the first time ever.
On the other hand, in parallel with these developments, excess diesel supply as the result of refineries shifting their production from jet fuel to diesel caused diesel crack margins to fall to historically weak levels. Brent price, which was quite volatile throughout the year, increased with the OPEC + production cuts, which were effective especially in the second half of the year, but remained 35% lower than last year, averaging at 41.7 $/bbl in 2020.
Margins narrowed to historically low levels following the decline in demand and the increasing costs due to the limited supply of heavy crude oil, negatively affected the profitability of the refining sector. In addition to these developments, Tüpraş recorded a pre-tax loss of TL 3.8 billion in 2020 due to the depreciation of TL and increased interest rates.
Despite the high volatility in global markets, Tüpraş maintained its strong balance sheet in the current period thanks to its well-disciplined and effective financing policies and it also successfully continued its mission of meeting the fuel needs of our country without any disruption. Tüpraş will continue to create value for its shareholders, business partners and our country with its strong human capital and global competitiveness.
|Operational and Financial Results|
|Q4 2020||Q4 2019||Diff. (%)||2020||2019||Diff. (%)|
|Operational (Thousand Tons)||Total Production||6,085||6,917||-12||23,389||28,112||-17|
|Profit Before Tax||-113||-439||74||-3,795||-311||-1,119|