Source - RNS
RNS Number : 4686X
Turkiye Petrol Rafinerileri AS
10 August 2018
 

Türkiye Petrol Rafinerileri A.Ş. ("Tüpraş")

 

Q2 2018 Financial Results

 

 

Tüpraş increased its domestic sales of diesel and jet fuel by %10 in the first half of 2018 compared to last year.

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 (%)

Operational
(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


Financial
(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.

Find below the 1 January - 30 June 2018 condensed interim consolidated financial statements.

 

More detailed information on results releases could be found on company website: www.tupras.com.tr



 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated.)

 


 Reviewed

 Audited

 Assets

30 June 2018

31 December 2017




 Current assets

21.951.521

                                    20.366.024




 Cash and cash equivalents

5.886.217

                                       8.802.069




 Trade receivables

6.768.881

                                       5.027.033

    Due from related parties

2.334.838

                                       1.399.601

    Trade receivables from third parties

4.434.043

                                       3.627.432

 Other receivables

169.479

                                             84.267

    Other receivables from third parties

169.479

                                             84.267

 Derivative Instruments

243.515

                                          346.909

 Inventories

7.702.377

                                       5.291.090

 Prepaid expenses

145.896

                                             62.397

 Other current assets

1.035.156

                                          752.259




 Non-current assets

18.250.450

                                    17.796.955




 Financial investments

-

                                               9.000

 Investments accounted for using the equity method

1.168.969

                                       1.134.364

 Investment properties

4.621

                                               4.621

 Property, plant and equipment

12.297.931

                                    12.303.437

 Intangible assets

58.694

                                             65.187

    Other intangible assets

58.694

                                             65.187

 Derivative instruments

163.841

                                          100.560

 Prepaid expenses

221.891

                                             99.276

 Deferred tax assets

3.239.259

                                       3.067.871

 Other non-current assets

1.095.244

                                       1.012.639




 Total assets

40.201.971

                                    38.162.979




 Liabilities






 Current liabilities

20.724.569

                                    17.675.669




 Short-term financial liabilities

473.480

                                          340.875

 Current portion of long term financial liabilities

3.154.204

                                       4.932.839

 Trade payables

12.520.349

                                       8.213.166

    Due to related parties

110.987

                                          115.456

    Trade payables, third parties

12.409.362

                                       8.097.710

 Liabilities for employee benefits

82.216

                                          119.833

 Other payables

14.445

                                             36.797

    Due to related parties

5

                                             23.463

    Other payables to third parties

14.440

                                             13.334

 Derivative instruments

256.818

                                          177.137

 Deferred income

2.107

                                             20.428

 Current income tax liabilities

36.535

                                             21.296

 Provisions

114.582

                                             89.924

    Provisions for employee benefits

41.347

                                             12.629

    Other provisions

73.235

                                             77.295

 Other current liabilities 

4.069.833

                                       3.723.374




 Non-current liabilities

11.424.576

                                    10.009.649




 Long-term financial liabilities

11.181.848

                                       9.777.270

 Provisions

225.859

                                          223.734

    Provisions for employee benefits

225.859

                                          223.734

 Deferred income

3.558

                                               4.112

 Derivative Instruments

12.251

                                               3.364

 Other non-current liabilities 

1.060

                                               1.169




 Total liabilities

32.149.145

                                    27.685.318




 Equity

8.052.826

                                    10.477.661




 Share capital

250.419

                                          250.419

 Adjustment to share capital

1.344.243

                                       1.344.243

 Accumulated other comprehensive income/(expense) not to be



 reclassified to profit or loss

(3.361)

                                             (3.361)

    Gains/ losses on revaluation and remeasurement

(2.211)

                                             (2.211)

       Actuarial gain/(loss) arising from defined benefit plans

(2.211)

                                             (2.211)

   Actuarial gain/(loss) arising from defined benefit plans



   using equity method that will not be reclassified to profit or loss

(1.150)

                                             (1.150)

 Accumulated other comprehensive income/(expense)



 to be reclassified to profit or loss

(1.383.554)

                                        (960.973)

    Hedging gains/(losses)

(1.574.376)

                                     (1.141.847)

         Cash flow hedge gains/(losses)

(1.574.376)

                                     (1.141.847)

    Share of other comprehensive income of investments accounted for



    using equity method that will be reclassified to profit or loss

190.822

                                          180.874

 Restricted reserves

597.086

                                          279.668

 Retained earnings

5.739.481

                                       5.651.805

 Net income

1.405.128

                                       3.811.546




 Total equity attributable to equity holders of the parent

7.949.442

                                    10.373.347




 Non-controlling interests

103.384

                                          104.314




 Total equity and liabilities

40.201.971

                                    38.162.979

 

The condensed interim consolidated financial statements for the period ended 30 June 2018 have been approved by the Board of Directors on 9 August 2018.

 



 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTH INTERIM PERIOD ENDED 30 JUNE 2018

 (Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated.)

 

 


 Reviewed


 Reviewed



 1 January -

 1 April - 

 1 January - 

 1 April - 


30 June 2018

30 June 2018

30 June 2017

30 June 2017






 Revenue

33.502.180

        20.080.772

25.000.318

12.630.679

 Cost of sales 

(30.212.223)

       (17.860.005)

(21.796.759)

(11.035.588)






 Gross profit 

3.289.957

2.220.767

3.203.559

1.595.091






 General administrative expenses

(410.883)

(214.997)

(368.617)

(189.753)

 Marketing, selling and distribution expenses

(124.770)

(57.605)

(119.754)

(63.937)

 Research and development expenses

(9.586)

(4.676)

(8.790)

(3.973)

 Other operating income

269.962

163.922

139.980

84.748

 Other operating expenses

(1.258.202)

(1.041.121)

(56.556)

55.577






 Operating profit / (loss)

1.756.478

1.066.290

2.789.822

1.477.753






 Expense from investment activities

(6.710)

(327)

(12.147)

(13.073)

 Income/(loss) from investments accounted by





    equity method

144.657

86.071

118.887

61.762






 Operating profit before financial





    income/(expense)

1.894.425

1.152.034

2.896.562

1.526.442






 Financial income

2.102.026

1.448.210

227.153

64.792

 Financial expense (-)

(2.599.434)

(1.675.037)

(637.158)

(156.406)






 Profit/(loss) before tax from continued operations

1.397.017

925.207

2.486.557

1.434.828






 Tax income / (expense)

25.060

110.083

(147.277)

28.693

    Taxes on income (-)

(38.460)

(33.342)

(259.687)

(147.419)

    Deferred tax income / (expense)

63.520

143.425

112.410

176.112






 Net profit/(loss) from continued operations

1.422.077

1.035.290

2.339.280

1.463.521






 Other comprehensive income:





 Items to be reclassified to profit or loss

             (440.460)

(323.914)

               114.915

               190.470

 Share of other comprehensive income accounted for investment 





 using equity method that will be reclassified to profit or loss

                   9.948

7.666

                    (119)

                 (1.305)

      Gain/(loss) from translation of foreign currency of 





      investments using equity method

                   9.948

7.666

                    (119)

                 (1.305)

Income/(expense) relating to avoidance of risk of cash flow

             (558.276)

(408.347)

               142.479

               237.460

      Income/(loss) of avoidance of risk of cash flow

             (558.276)

(408.347)

               142.479

               237.460

 Tax effect of other comprehensive income/(loss) to





 be reclassified to profit or loss

               107.868

76.767

               (27.445)

               (45.685)

      Deferred tax income/(expense) 

               107.868

76.767

               (27.445)

               (45.685)






 Other comprehensive income/(expense)

             (440.460)

(323.914)

               114.915

               190.470






 Total comprehensive income

               981.617

               711.376

            2.454.195

            1.653.991






 Distribution of income for the period:





 Non-controlling interests

                 16.949

8.598

                 13.297

                   6.362

 Attributable to equity holders of the parent 

            1.405.128

1.026.692

            2.325.983

            1.457.159






 Distribution of total comprehensive income





 Non-controlling interests

                    (930)

(5.431)

                 14.349

                   8.170

 Attributable to equity holders of the parent

               982.547

716.807

            2.439.846

            1.645.821






 Earnings (loss) per share from continued operations





 Earnings per share with





    nominal value kr. 1 each (kr.)

                     5,61

                     4,10

                     9,29

                     5,82

 

 

 

 



 

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH INTERIM PERIOD ENDED 30 JUNE 2018

 (Amounts expressed in thousands of Turkish Lira ("TRY"), unless otherwise indicated)

 


                       Reviewed                            Reviewed


1 January -

1 January -


30 June 2018

30 June 2017

Cash flows from operating activities

2.023.996

2.107.420




 Profit/(loss)

1.422.077

2.339.280

 Adjustment for reconciliation of profit/(loss)

709.262

720.999

 Adjustment for depreciation and amortisation expense

310.247

284.666

 Adjustments for stock impairment(cancelation)

(920)

13.470

   Adjustments for stock impairment

(920)

13.470

 Adjustment for provisions

27.416

76.851

 Adjustment for interest (income) and expense

305.547

117.118

 Adjustment for unrealized foreign currency translation differences

(1.548.823)

43.977

 Adjustment for fair value (gain) or loss

(340.798)

(9.692)

 Adjustment for income of investments accounted by equity method

(144.657)

(118.887)

 Adjustment for tax expenses(income)

(25.060)

147.277

 Adjustment for (gain) / loss on sales of property, plant and equipment

6.710

12.147

 Adjustment for other items related with  cash flow of  investment or financial activities

2.121.391

138.693

  Other adjustments  for reconciliation of profit/(loss)

(1.791)

15.379

 Changes in working capital

(52.665)

(759.023)

 Adjustment for decrease/(increase) in trade receivables

(1.769.182)

(827.861)

 Adjustment for decrease/(increase) in other receivables related  with operations

(533.822)

(265.737)

 Adjustment for decrease/(increase) in assets of derivative instruments

40.113

-

 Adjustment for decrease/(increase) in inventories

(2.410.367)

(593.219)

 Adjustment for increase/(decrease) in trade payables

4.347.017

617.253

 Adjustment for increase/(decrease) in other payables related with operations

185.008

310.541

 Adjustment for decrease/(increase) in liabilities of derivative instruments

88.568

-

Cash flows from operating activities

2.078.674

2.301.256

 Tax returns/(payments)

(23.221)

(160.448)

Other cash inflow/(outflow)

(31.457)

(33.388)




Cash flows from investing activities

(307.964)

(308.221)




 Cash outflows in subsidiaries regarding additional share purchases

-

(1.500)

 Cash inflows from the sales of property, plant and equipment and intangible assets

810

2.456

 Cash outflows from the purchase of property, plant and equipment and intangible assets

(428.774)

(379.177)

 Dividends received

120.000

70.000




Cash flows from financing activities

(6.288.683)

(2.339.240)




 Cash inflows from financial liabilities

19.020.669

23.009.300

 Cash outflows from financial liabilities

(22.098.167)

(23.685.054)

 Cash inflows from derivative instruments

585.678

8.175

 Cash outflows from derivative instruments

(115.305)

-

 Dividends paid

(3.406.452)

(1.557.107)

 Interest paid

(441.124)

(350.662)

 Interest received

166.018

236.108




Net increase/(decrease) in cash and cash equivalents before the effect of foreign currency translation differences

(4.572.651)

(540.041)




Impact of foreign currency translation differences on cash and cash equivalents

1.548.823

(43.977)




Net increase/(decrease) in cash and cash equivalents

(3.023.828)

(584.018)




Cash and cash equivalents at beginning of period

7.592.735

5.022.402




Cash and cash equivalents at end of period

4.568.907

4.438.384

 

 

 


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