REG - Turkiye Petrol Rafin - 1st Quarter Results

Turkiye Petrol Rafinerileri ASAnnouncement

10/05/2018 08:25

2018-05-10T07:20:51.783Zreuters.comtag:reuters.com,2018-05-10:newsml_RSJ6291Na:13TXT
This file is provided for EAP sample purposes only; it's structure and detail are subject to change, and should not be used as a definitive reference for actual development and processing.2018-05-10T07:20:51.783Z2018-05-10T07:20:51.783Z____UCDP:parsn_lse_10.54.4.69_1.2.37235:2019-06-10T07:20:51.783Z3RSJ6291NaREG - Turkiye Petrol Rafin  - 1st Quarter ResultsOil & Gas Refining and Marketing (NEC) (TRBC level 5)Energy (TRBC level 1)Oil & Gas (TRBC level 3)Oil & Gas Refining and Marketing (TRBC level 4)Emerging Market CountriesWestern EuropeUnited KingdomTurkeyEuropeSouth-West AsiaAsia / PacificMiddle EastAsiaSouth-Eastern EuropeSuggested SourcesNews AnnouncementsRegulatory Corporate News AnnouncementsCompany NewsEurope daily earnings hits & missesTurkiye Petrol Rafinerileri AS








RNS Number : 6291N
Turkiye Petrol Rafinerileri AS
10 May 2018
 

Türkiye Petrol Rafinerileri A.Ş. ("Tüpraş")
 
Q1 2018 Financial Results
 
 
Tüpraş announces its financial and a summary of operational results for the three months ended 31 March 2018 ("Q1 2018" or the "Quarter").
Tüpraş continued to respond to domestic demand in Q1 2018 during ongoing maintenance operations. Despite investment related activities and planned maintenances, Tüpraş continued to respond to the strong domestic demand during the quarter.
Starting the year 2018 at $66,6/bbl, crude oil price has been supported by continuing compliance of OPEC countries and Russia to the cut agreement along with the increasing geopolitical risks in the Middle East. However, increasing US production had an adverse impact, balancing crude prices at $67,3/bbl on average, with 1% increase in 3 months.
Thanks to the strong economic activities during the first quarter supported by hard winter conditions, diesel and jet crack margins have been above last year while gasoline and fuel oil margins fell short of Q1 2017. During the same period, price difference between light and heavy crude oils has been narrowed with the impact of continuing OPEC cut agreement. Mediterranean margin was realized at $4,0/bbl while Tüpraş margin averaged at $4,8/bbl, falling short vs. that of Q1 2017 ($8,7/bbl) due to above mentioned impacts. 
Despite decrease in production due to planned maintenance activities, Tüpraş continued to respond to the strong domestic demand during Q1 2018, increasing its domestic sales by 5% and reaching to 5,2 million tons, while total sales has reached to 6,2 million tons.
 



 Operational and Financial Results








Q1 2018


Q1 2017


Diff (%)




Operational


Total Production (KTon)


5,180


7,080


-27




Domestic Sales (KTon)


5,203


4,956


5




Total Sales (KTon)


6,201


7,215


-14










Financial


Sales Revenue (Million TL)


13,421


12,370


8




Operating Profit (Million TL)


690


1,312


-47




Profit Before Tax (Million TL)


472


1,052


-55




Net Profit (Million TL)


387


876


-56



 
Tüpraş Q1 2018 sales increased by 8% vs. last year and reached to 13,4 billion TL, mainly due to increasing product prices driven by 24% increase in crude oil price and 3% increase in USD/TL forex rate. 
Operating profit has declined by 47% and profit before tax has declined by 55% vs. last year and resulted as 690 million TL and 472 million TL respectively, due to narrowing heavy-light crude oil price differences, deterioration in overall crack margin and planned maintenances. 
Tüpraş has continued its investments in line with company's targets during the first three months of the year, with a capital expenditure of $63 million on refinery. 2018 year-end operation targets of Tüpraş, which is already shared with the investors, have not been changed and targets of full capacity production along with Tüpraş refinery margin surpassing Mediterranean margin have been addressed again.
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.
 
 
Find below the 1 January - 31 March 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 31 MARCH 2018
(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated.)

 











 Unaudited


Audited




 Assets






31 March 2018


31 December 2017






















 Current assets






20,311,172


                                    20,366,024






















 Cash and cash equivalents






6,716,597


                                       8,802,069




 Trade receivables






5,495,351


                                       5,027,033




    Due from related parties






1,755,940


                                       1,399,601




    Trade receivables from third parties






3,739,411


                                       3,627,432




 Other receivables






95,708


                                             84,267




    Other receivables from third parties






95,708


                                             84,267




 Derivative instruments






462,106


                                          346,909




 Inventories






6,716,365


                                       5,291,090




 Prepaid expenses






45,006


                                             62,397




Other current assets






780,039


                                          752,259






















 Non-current assets






17,873,327


                                    17,796,955






















 Financial investments






-


                                               9,000




 Investments accounted for using the equity method






1,075,232


                                       1,134,364




 Investment properties






4,621


                                               4,621




 Property, plant and equipment






12,283,981


                                    12,303,437




 Intangible assets






62,403


                                             65,187




    Other intangible assets






62,403


                                             65,187




 Derivative instruments






130,120


                                          100,560




 Prepaid expenses






202,303


                                             99,276




 Deferred tax assets






3,019,067


                                       3,067,871




 Other non-current assets






1,095,600


                                       1,012,639






















 Total assets






38,184,499


                                    38,162,979






















 Liabilities


































 Current liabilities






21,068,892


                                    17,675,669






















 Short-term financial liabilities






433,920


                                          340,875




 Current portion of long term financial liabilities






5,943,452


                                       4,932,839




 Trade payables






8,661,336


                                       8,213,166




    Due to related parties






69,442


                                          115,456




    Trade payables, third parties






8,591,894


                                       8,097,710




 Liabilities for employee benefits






81,289


                                          119,833




 Other payables






1,693,818


                                             36,797




    Due to related parties






8,616


                                             23,463




    Other payables to third parties






1,685,202


                                             13,334




 Derivative instruments






143,398


                                          177,137




 Deferred income






3,694


                                             20,428




 Current income tax liabilities






4,522


                                             21,296




 Provisions






125,788


                                             89,924




    Provisions for employee benefits






26,688


                                             12,629




    Other provisions






99,100


                                             77,295




 Other current liabilities






3,977,675


                                       3,723,374






















 Non-current liabilities






9,774,157


                                    10,009,649






















 Long-term financial liabilities






9,544,275


                                       9,777,270




 Provisions






219,767


                                          223,734




    Provisions for employee benefits






219,767


                                          223,734




 Deferred income






3,951


                                               4,112




 Derivative Instruments






5,050


                                               3,364




 Other non-current liabilities 






1,114


                                               1,169






















 Total liabilities






30,843,049


                                    27,685,318






















 Equity






7,341,450


                                    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)




   Share of other comprehensive income of investments accounted for 
















   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






(1,073,669)


                                        (960,973)




    Hedging gains/(losses)






(1,256,825)


                                     (1,141,847)




         Cash flow hedge gains/(losses)






(1,256,825)


                                     (1,141,847)




    Share of other comprehensive income of investments accounted for
















    using equity method that will be reclassified to profit or loss






183,156


                                          180,874




 Restricted reserves






597,086


                                          279,668




 Retained earnings






5,739,481


                                       5,651,805




 Net income






378,436


                                       3,811,546






















 Total equity attributable to equity holders of the parent






7,232,635


                                    10,373,347






















 Non-controlling interests






108,815


                                          104,314






















 Total equity and liabilities






38,184,499


                                    38,162,979



The condensed interim consolidated financial statements for the period ended 31 March 2018 have been approved by the Board of Directors on 9 May 2018.




 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTH INTERIM PERIOD ENDED 31 MARCH 2018

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












 Unaudited


 Unaudited












 1 January -


 1 January - 








 


31 March 2018


31 March 2017






















 Revenue






13,421,408


12,369,639




 Cost of sales 






(12,352,218)


(10,761,171)






















 Gross profit / (loss)






1,069,190


1,608,468






















 General administrative expenses 






(195,886)


(178,864)




 Marketing, selling and distribution expenses 






(67,165)


(55,817)




 Research and development expenses 






(4,910)


(4,817)




 Other operating income






106,040


55,232




 Other operating expenses 






(217,081)


(112,133)






















 Operating profit / (loss)






690,188


1,312,069






















 Income from investment activities






                                    -  


926




 Expense from investment activities






(6,383)


-




 Income/(loss) from investments accounted by
















    equity method






58,586


57,125






















 Operating profit before financial
















    income / (expense)






742,391


1,370,120






















 Financial income






653,816


162,361




 Financial expense






(924,397)


(480,752)






















 Profit / (loss) before tax from continued operations






471,810


1,051,729






















 Tax income / (expense)






(85,023)


(175,970)




    Taxes on income (-)






(5,118)


(112,268)




    Deferred tax income / (expense)






(79,905)


(63,702)






















 Net profit (loss) from continued operations






386,787


875,759






















 Other comprehensive income:


































 Items to be reclassified to profit or loss






          (116,546)


           (75,555)




 Share of other comprehensive income accounted for investment 
















 using equity method that will be reclassified to profit or loss






                2,282


               1,186




      Gain/(loss) from translation of foreign currency of
















      investments using equity method






                2,282


               1,186




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






          (149,929)


           (94,981)




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






          (149,929)


           (94,981)




 Tax effect of other comprehensive income/(loss) to
















 be reclassified to profit or loss






              31,101


             18,240




      Deferred tax income/(expense)   






              31,101


             18,240






















 Other comprehensive income/(expense) 






          (116,546)


           (75,555)






















 Total comprehensive income






            270,241


           800,204






















 Distribution of income for the period:
















 Non-controlling interests






                8,351


               6,935




 Attributable to equity holders of the parent






            378,436


           868,824






















 Distribution of total comprehensive income
















 Non-controlling interests






                4,501


               6,179




 Attributable to equity holders of the parent






            265,740


           794,025






















 Earnings (loss) per share from continued operations
















 Earnings per share with
















    nominal value kr. 1 each (kr.)






                  1.51


                 3.47



 




 
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTH INTERIM PERIOD ENDED 31 MARCH 2018

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

 











                                  Unaudited












1 January -


1 January -












31 March 2018


31 March 2017




Cash flows from operating activities






(618,947)


872,904






















 Profit/(loss)






386,787


875,759




 Adjustment for reconciliation of profit/(loss)






630,756


574,869




 Adjustment for depreciation and amortisation expense






155,462


142,377




 Adjustments for stock impairment(cancelation)






2,275


5,877




   Adjustments for stock impairment






2,275


5,877




 Adjustment for provisions






43,136


35,491




 Adjustment for interest (income) and expense






104,756


80,059




 Adjustment for unrealized foreign currency translation differences






(445,696)


(67,870)




 Adjustment for fair value (gain) or loss






20,291


3,605




 Adjustment for income of investments accounted by equity method






(58,586)


(57,125)




 Adjustment for tax expenses(income)






85,023


175,970




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






6,383


(926)




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






710,698


247,285




  Other adjustments  for reconciliation of profit/(loss)






7,014


10,126




 Changes in working capital






(1,588,481)


(513,568)




 Adjustment for decrease/(increase) in trade receivables






(475,677)


(756,180)




 Adjustment for decrease/(increase) in other receivables
















related  with operations






(104,595)


(79,324)




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






(144,757)


-




 Adjustment for decrease/(increase) in inventories






(1,427,550)


(796,613)




 Adjustment for increase/(decrease) in trade payables






457,891


920,510




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






138,260


198,039




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






(32,053)


-




 Cash flows from operating activities






(570,938)


937,060




 Tax returns/(payments)






(21,892)


(45,512)




 Other cash inflow/(outflow)






(26,117)


(18,644)






















Cash flows from investing activities






(122,828)


(104,787)






















 Cash inflows from the sales of property, plant and equipment
















 and  intangible assets






552


1,315




 Cash outflows from the purchase of property plant and
















equipment and intangible assets






(243,380)


(176,102)




 Dividends received






120,000


70,000






















Cash flows from financing activities






(1,844,636)


423,963






















 Cash inflows from financial liabilities






8,823,513


14,097,037




 Cash outflows from financial liabilities






(8,874,590)


(13,673,346)




 Cash inflows from derivative instruments






14,054


-




 Cash outflows from derivative instruments






(68,767)


-




 Dividends paid






(1,728,721)


-




 Interest paid






(108,731)


(99,868)




 Interest received






98,606


100,140






















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






(2,586,411)


1,192,080






















Impact of foreign currency translation differences on cash and cash equivalents






445,696


67,870






















Net increase/(decrease) in cash and cash equivalents






(2,140,715)


1,259,950






















Cash and cash equivalents at beginning of period






7,592,735


5,022,402






















Cash and cash equivalents at end of period






5,452,020


6,282,352



 



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