REG - Turkiye Petrol Rafin - Half-year Report

Turkiye Petrol Rafinerileri ASAnnouncement

10/08/2018 10:00

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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