REG - Turkiye Petrol Rafin - 2Quarter_Half_Yearly_Results <Origin Href="QuoteRef">TUPRS.IS</Origin>

Turkiye Petrol Rafinerileri ASAnnouncement

29/10/2014 12:09

RNS Number : 8879O
Turkiye Petrol Rafinerileri AS
12 August 2014
TURKISH PETROLEUM REFINERIES CORPORATION (TUPRAS)
2Q 2014Results 
12 08 2014
Press Release
1. Weakness in the Mediterranean Refining Market continued to effect operations
2. Maintenance related to the RUP investment was completed
3. Preparations for the now 96.6% completed project were finished at all refineries
Despite a slowdown in emerging markets, Brent crude oil prices rose from 106 dollars per barrel at the start of the quarter to 111 dollars per barrel at the end. Recovery in the USA and Europe had an impact, but the main reason was the perception of increased geopolitical risk due to events in Ukraine and Iraq
Commissioning of new refineries in Asia and the Middle East, together with record high capacity utilisations of US refineries, to take advantage of cheaper WTI crude oil led to increases of supply into European markets. The end of the maintenance season increased the impact of this. With poor demand growth in major emerging economies, the price ratios for all major products were weak, and the Med Complex margin fell to 0.37 dollars per barrels in the 1st half of the year, versus 2.68 dollars per barrel in the same period last year
As well as the impact of weak market conditions, maintenance and poor refinery economics kept capacity utilisations down, and Tupras net refinery margin fell to 1.05 dollars per barrel for the 1st half of the year, versus 1.88 dollars per barrel for the same period last year
As well as maintenance and RUP preparations, the lack of demand for asphalt, and the poor differential between high and low sulphur diesel, meant that production and sales volumes fell. Domestic sales were down 1.1 million tons (290,000 tons of asphalt and 800,000 tons of diesel). With the regional market oversupplied and export margins poor, exports fell 428,000 tons, bringing total sales down 1.5 million tons for the period, totalling 9.7 million tons. 
Despite weak prices and a fall in volumes, a 19.4% change in the exchange rate meant that revenues grew by 3.1%
Operational and Financial Data
1st Half 2013
1st Half 2014
Diff.
Total Volume Processed (ton*000)
10,453
9,625
-828
Domestic Sales (ton*000)
8,783
7,682
-1,100
Total Sales (ton*000)
11,263
9,734
-1,529
Revenues (Million TL)
18,315
18,874
%3
Operating Profit (Million TL)
-9
252
261
Profit Before Tax (Million TL)
-77
149
225
Net Profit (Million TL)
266
869
%226
A pre-tax loss of 77 million TL in 2013 was translated into a pre-tax profit of 149 million TL in 2014, thanks to stronger operating profits. Buoyed by a tax incentive of 727 million TL for the RUP investment, net profit reached 869 million TL for the period
As of the end of June, the Residuum Upgrading project was 96.6% completed. Expenditure in the first six months reached 1.07 billion TL, taking the cumulative expenditure to 2.4 Billion US dollars. The 2.7 Billion dollar project is expected to generate a billion dollars of value added and positively affect the current account by the same amount each year
Whilst striving to ensure guarantee of supply of the highest quality products to the Turkish market, we continued to invest in a project that will raise the company's profile in the sector, contribute to the nation's current account, is currently providing employment for thousands of workers and will help us to generate greater value for our shareholders and other stakeholders in the future.
THE CONSOLIDATED INCOME STATEMENT
In accordance with Capital Market Board Regulations

Audited Income Statement
Audited Income Statement
(1000 TL)
(1000 USD)
01.01 2014 30.06.2014
01.01 2013 30.06.2013
%
change
01.01 2014 30.06.2014
01.01 2013 30.06.2013
%
change
Revenue 
18.874.173
18.315.276
3
8.723.638 
10.123.971
(14)
Cost of sales (-) 
(18.437.150)
(17.837.253)
3
(8.521.646)
(9.859.739)
(14)
GROSS OPERATING PROFIT
437.023
478.023
-9 
201.992
264.232
-24 
General administrative expenses (-) 
(232.537)
(219.222)
6
(107.479)
(121.177)
(11)
Marketing, selling & distribution expenses (-) 
(74.126)
(95.441)
(22)
(34.261)
(52.756)
(35)
Research & development expenses (-) 
(6.998)
(7.575)
(8)
(3.234)
(4.187)
(23)
Other operating income 
153.568
58.342
163
70.979
32.249
120
Other operating expenses (-) 
(25.243)
(223.452)
(89)
(11.667)
(123.516)
(91)
OPERATING PROFIT/ (LOSS) 
251.687
(9.325)
(2.799)
116.330
(5.154)
-2.357 
Income/ (expense) from investment activities
(22)
507
(104)
(10)
280
(104)
Income from investments accounted by equity method
29.373
26.628
10
13.576
14.719
(8)
OPERATING PROFIT/ (LOSS) BEFORE FINANCIAL INCOME/LOSS 
281.038
17.810
1.478
129.896
9.845
1.219 
Financial income 
97.199
380.334
(74)
44.925
210.234
(79)
Financial expenses (-) 
(229.621)
(474.863)
(52)
(106.131)
(262.486)
(60)
PROFIT BEFORE TAXATION
148.616
(76.719)
(294)
68.690
(42.407)
-262 
Income Tax expense
725.594
345.284
110
335.369
190.860
76
 -Tax expense for the period
(1.302)
(654)
99
(602)
(362)
66
 -Deferred tax income/(expense)
726.896
345.938
110
335.971
191.221
76
PROFIT FOR THE PERIOD
874.210
268.565
226
404.060
148.452
172 
Other comprehensive income 






Items to be reclassified to profit or loss 
(72)
1.041
(107)
(33)
575
(106)
 Changes in currency translation differences 
(72)
1.041
(107)
(33)
575
(106)
Other comprehensive income/(expense) after taxation
(72)
1.041
(107)
(33)
575
(106)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
874.138
269.606
224
404.026
149.028
171 







Distribution of Profit for the Period






 Non-controlling interesests
5.322
2.443
118
2.460
1.350
82
 Attributable to equity holders of the Company
868.888
266.122
226
401.600
147.102
173
Distribution of Total Comprehensive Income for the Period






 Non-controlling interesest
5.322
2.443
118
2.460
1.350
82
 Attributable to equity holders of the Company
868.816
267.163
225
401.567
147.677
172
Earnings per share 
3,47
1,06
227
1,60
0,59
174







EBITDA Calculation:
01.01 2014 30.06.2014
01.01 2013 30.06.2013
% change



OPERATING PROFIT/ (LOSS) 
251.687
-9.325
-2.799



Income/ (expense) from investment activities


-



Income from investments accounted by equity method
29.373
26.628
10



 Credit finance gains
-79.160
-52.005
52



 Credit finance charges
4.421
4.874
-9



 Foreign exchange gains on trade payables,net
-69.627
0
-



 Foreign exchange gains on trade receivables,net
0
-2.417
-100



 Foreign exchange loss on trade payables,net
0
194.586
-100



 Foreign exchange loss on trade receivables,net
4.281
0
-



Total Depreciation
125.252
120.137
4



EBITDA, (1000 TRY)
266.227
282.478
-6



EBITDA, (1000 USD)
123.050
156.143
-21



CONSOLIDATED BALANCE SHEET
In accordance with Capital Market Board Regulations

Audited Balance Sheet (1000 TL) 
Audited Balance Sheet (1000 TL)
%
change
Audited Balance Sheet (1000 TL) 
Audited Balance Sheet (1000 TL)
%
change

30-Jun-2014
31-Dec-2013

30-Jun-2014
31-Dec-2013

Current assets 
8.627.048
9.764.538
(12)
4.062.846
4.575.054
(11)
Cash and cash equivalents
2.752.432
3.663.114
(25)
1.296.238
1.716.307
(24)
Trade receivables (net) 
1.045.754
1.956.634
(47)
492.490
916.757
(46)
 Due from related parties
60.312
343.355
(82)
28.404
160.875
(82)
 Other trade receivables 
985.442
1.613.279
(39)
464.087
755.882
(39)
Other receivables 
54.088
38.933
39
25.472
18.242
40
 Due from unrelated parties
54.088
38.933
39
25.472
18.242
40
Inventories
4.068.590
3.456.300
18
1.916.073
1.619.407
18
Prepaid expenses
121.574
198.693
(39)
57.254
93.095
(38)
Assets related to current period tax
229
1.330
(83)
108
623
(83)
Other current assets 
584.381
449.534
30
275.210
210.624
31
Non-current assets 
13.093.970
11.374.849
15
6.166.511
5.329.546
16
Financial investments
4.000
4.000
-
1.884
1.874
1
Investment accounted by equity method
763.469
804.168
(5)
359.550
376.783
(5)
Investment property 
4.621
4.621
-
2.176
2.165
1
Property, plant and equipment 
9.267.592
8.321.563
11
4.364.506
3.898.966
12
Intangible assets(net) 
35.295
39.367
(10)
16.622
18.445
(10)
 Other intangible assets 
35.295
39.367
(10)
16.622
18.445
(10)
Prepaid expenses
453.868
405.292
12
213.746
189.895
13
Deferred tax assets
2.057.093
1.330.197
55
968.773
623.247
55
Other non-current assets 
508.032
465.641
9
239.254
218.170
10
TOTAL ASSETS 
21.721.018
21.139.387
3
10.229.358
9.904.600
3
Current Liabilities 
9.768.359
10.396.466
(6)
4.573.658
4.866.143
(6)
Short-term financial liabilities (net
262.676
909.587
(71)
123.705
426.176
(71)
Current portion of long-term financial liabilities(net)
289.938
165.084
76
136.544
77.348
77
Trade payables (net) 
6.921.903
6.793.651
2
3.259.821
3.183.082
2
 Due to related parties
31.473
40.555
(22)
14.822
19.002
(22)
 Other trade payables
6.890.430
6.753.096
2
3.244.999
3.164.080
3
Payables related to employee benefits
30.808
65.524
(53)
14.509
30.700
(53)
Other payables
4.271
9.563
(55)
2.011
4.481
(55)
 Other payables to unrelated parties
4.271
9.563
(55)
2.011
4.481
(55)
Derivatives
19.776
-
-
9.313
-
-
Deferred income
56.653
10.656
432
26.680
4.993
434
Current period corporate tax provision
1.302
6.178
(79)
613
2.895
(79)
Short-term provisions
70.224
363.747
(81)
33.071
170.429
(81)
 Employee benefits
19.237
4.097
370
9.060
1.920
372
 Other provisions
50.987
359.650
(86)
24.012
168.510
(86)
Other current liabilities
2.110.808
2.072.476
2
994.070
971.033
2
Non-current Liabilities 
6.336.170
5.604.407
13
2.983.974
2.625.876
14
Long-term financial liabilities(net)
6.169.139
5.447.345
13
2.905.312
2.552.286
14
Long-term provisions
162.059
152.003
7
76.321
71.219
7
 Employee benefits
162.059
152.003
7
76.321
71.219
7
Other non-current liabilities 
4.972
5.059
(2)
2.342
2.370
(1)
EQUITY 
5.616.489
5.138.514
9
2.671.726
2.412.580
11
Equity attributable to equity holders of the parent






Share capital 
250.419
250.419
-
117.933
117.331
1
Adjustment to share capital 
1.344.243
1.344.243
-
633.062
629.829
1
Share premium
172
172
-
81
81
1
Other comprehensive reatined gain/loss not classified on profit and loss
(2.672)
(2.672)
-
(1.258)
(1.252)
1
 Actuarial gain/(loss) arising from defined benefit plans
(2.672)
(2.672)
-
(1.258)
(1.252)
1
Other comprehensive reatained gain/loss classified on profit and loss
56.967
57.039
(0)
39.851
(58.582)
(168)
 Currency translation differences
9.303
9.375
(1)
17.404
(80.914)
(122)
 Financial assets fair value reserve
47.664
47.664
-
22.447
22.332
1
Restricted reserves 
163.401
221.417
(26)
76.953
103.742
(26)
Retained earnings 
2.884.837
2.025.761
42
1.358.593
949.145
43
Net Income for the period
868.888
1.197.223
(27)
401.600
629.375
(36)
Total equity attributable to equity holders of the parent 
5.566.255
5.093.602
9
2.626.814
2.369.668
11
Non-controlling interest
50.234
44.912
12
44.912
42.912
5
TOTAL EQUITY AND LIABILITIES 
21.721.018
21.139.387
3
10.229.358
9.904.600
3


CONSOLIDATED STATEMENTS OF CASH FLOWS
In accordance with Capital Market Board Regulations

Audited Cash Flow (1000 TL)

30-Jun-2014
30-Jun- 2013
% change
A. Cash flows from operating activities
295.602
116.336
154




Profit/(loss) before taxation
874.210
268.565
226
Adjustment for reconciliation of profit/(loss) before taxation
(512.941)
140.941
(464)
 - Adjustment for depreciation and amortisation expense
125.252
120.137
4
 - Adjustment for provisions
26.547
30.017
(12)
 - Adjustment for interest income and expense
100.009
22.562
343
 - Adjustment for unincurred foreign currency translation differences
72
(1.041)
(107)
 - Adjustment for value gain or loss
19.776
-
-
 - Adjustment for income of investments accounted by equity method
(29.373)
(26.628)
10
 - Adjustment for deferred tax income
(725.594)
(345.284)
110
 - Adjustment for (profit) on sales of property, plant and equipment,net
22
(507)
(104)
 - Adjustment for other items related with cash flow of investment or financial activities
(35.505)
345.703
(110)
 - Other adjustments 
5.853
(4.018)
(246)
Changes in working capital
263.978
(242.524)
(209)
 - Adjustment for increase/decrease in Inventories
(619.517)
(169.543)
265
 - Adjustment for increase/decrease in trade receivables
912.248
(689.622)
(232)
 - Adjustment for increase/decrease in other receivables related with operations
(192.393)
(297.603)
(35)
 - Adjustment for increase/decrease in trade payables
128.258
552.615
(77)
 - Adjustment for increase/decrease in other payables related with operations
35.382
361.629
(90)
Cash flows from operating activities
625.247
166.982
274
- Tax payments/returns
(5.077)
(38.828)
(87)
- Payment for penalty
(309.011)
-
-
- Other cash inflow/outflow
(15.557)
(11.818)
32
B. Cash flows from investing activities
(997.231)
(1.094.292)
(9)
Cash inflows from the sale of property, plant and equipment and intangible assets
76
525
(86)
Cash outflows from the purchase of property, plant and equipment and intangible assets
(1.067.307)
(1.187.581)
(10)
Cash inflows from the sale of other long-term assets
-
12.764
(100)
Cash outflow from the purchase of other long-term assets
-
-
-
Dividends received
70.000
80.000
(13)




C. Cash flows from financing activities
(255.151)
398.449
(164)
Cash inflows from financial liabilities
222.232
1.384.763
(84)
Dividend paid
(396.163)
(964.114)
(59)
Interest received
67.473
105.970
(36)
Interest paid
(148.693)
(128.170)
16
Before net increase/decrease in cash and cash equivalents before the effect of foreign currency translation differences
(956.780)
(579.507)
65




D. Impact of foreign currency translation differences on cash and cash equivalents
(72)
1.041
(107)
Net increase/decrease in cash and cash equivalents
(956.852)
(578.466)
65
E. Cash and cash equivalents at beginning of period
3.087.870
2.764.509
12
Cash and cash equivalents at end of period
2.131.018
2.186.043
(3)
For any further information released today or the financials, please contact us or visit www.tupras.com.tr
Tuncay ONBILGIN
Investor Relations & Strategic Planning Management
E-mail : tuncay.onbilgin@tupras.com.tr
Direct Line : +90 262 316 3269

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