REG - Turkiye Petrol Rafin - 3rd Quarter Results

Turkiye Petrol Rafinerileri ASAnnouncement

12/11/2018 12:40

RNS Number : 0785H
Turkiye Petrol Rafinerileri AS
12 November 2018
 


Türkiye Petrol Rafinerileri A.Ş. ("Tupras")
 
Q3 2018 Financial Results
 
 
Tüpraş realized full capacity production in third quarter following the completion of majority of planned maintanence
Tüpraş continued to meet the fuel demand of Turkey by increasing its domestic diesel and jet fuel sales by 7% in 9M 2018, compared to last year.
Crude oil price, which started July at $76.7/bbl level, climbed by 9% during Q3 2018 due to increasing geopolitical risks & supply problems, and reached $83,7/bbl by the end of 9M. The average crude price for 9M was realized at $72.1/bbl.
In Q3 2018, diesel and jet fuel cracks-supported by global economic growth, air traffic demand increase and infrastructure investments-were higher than last year, while gasoline and fuel oil cracks fell below last year's levels. On the the other hand, diesel and jet fuel consumption in Turkish market grew by 8% and 12.3% respectively in 8M 2018.
In Q3 2018, Tüpraş continued to meet the demand of Turkey with its full capacity production; domestic sales volume was realized at 7.7 million tons, while total sales reached 8.7 million tons. The total sales volume for 9M was 22.3 million tons.




Operational and Financial Results




 


Q3 2018


Q3 2017


Diff (%)


9M 2018


9M 2017


Diff (%)


 




Operational (Thousand Tons)


Total Production 


7,690


7,666


0.3


19,081


 22,543


-15.4


 




Total Sales


8,702


8,899


-2.2


22,262


24,177


-7.9


 




 




Financial
(Million TL)


Sales Revenue


30,247


14,344


110.9


63,749


39,344


62.0


 




Operating Profit


802


1,290


-37.8


2,559


4,079


-37.3


 




Profit Before Tax


678


1,234


-45.0


2,075


3,720


-44.2


 




Net Profit


551


1,000


-44.9


1,973


3,339


-40.9


 




 
Tüpraş Q3 2018 sales revenue increased by 110.9% to 30.2 billion TL, following the effect of crude price hike of 44% and FX rate increase of 60%, compared to same period of last year. Net profit for Q3 decreased by 45% to 551 million TL and 9M net profit was realized at 1,973 million TL.
In 9M 2018, a total investment of $97 million was made in refining.
Within the framework of our corporate risk policies, our balance sheet-managed by strong financing policies, effective FX position management and early long-term borrowings-does not have a new long-term borrowing requirement in the period we are in. 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.
More detailed information on results releases could be found on company website: www.tupras.com.tr
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2018

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





 


 


 Unaudited


 Audited




 Assets


 Notes


30 September 2018


31 December 2017




 


 


 


 




 Current assets


 


30.250.105


                                    20.366.024




 


 


 


 




 Cash and cash equivalents


              4


9.957.795


                                       8.802.069




 Trade receivables


              6


9.319.393


                                       5.027.033




    Due from related parties


 6, 31


2.862.216


                                       1.399.601




    Trade receivables from third parties


 


6.457.177


                                       3.627.432




 Other receivables


              7


102.835


                                             84.267




    Other receivables from third parties


 


102.835


                                             84.267




 Derivative Instruments


           20


473.808


                                          346.909




 Inventories


              8


8.495.315


                                       5.291.090




 Prepaid expenses


           14


131.489


                                             62.397




 Other current assets


           15


1.769.470


                                          752.259




 


 


 


 




 Non-current assets


 


18.816.080


                                    17.796.955




 


 


 


 




 Financial investments


              9


-


                                               9.000




 Investments accounted for using the equity method


           10


1.234.658


                                       1.134.364




 Investment properties


           11


4.621


                                               4.621




 Property, plant and equipment


           12


12.273.361


                                    12.303.437




 Intangible assets


           13


58.275


                                             65.187




    Other intangible assets


 


58.275


                                             65.187




 Derivative instruments


           20


262.238


                                          100.560




 Prepaid expenses


           14


318.033


                                             99.276




 Deferred tax assets


           29


3.518.545


                                       3.067.871




 Other non-current assets


           15


1.146.349


                                       1.012.639




 


 


 


 




 Total assets


 


49.066.185


                                    38.162.979




 


 


 


 




 Liabilities


 


 


 




 


 


 


 




 Current liabilities


 


27.092.966


                                    17.675.669




 


 


 


 




 Short-term financial liabilities


              5


1.486.188


                                          340.875




 Current portion of long term financial liabilities


              5


3.947.735


                                       4.932.839




 Trade payables


              6


16.638.463


                                       8.213.166




    Due to related parties


 6, 31


173.933


                                          115.456




    Trade payables, third parties


 


16.464.530


                                       8.097.710




 Liabilities for employee benefits


           18


85.705


                                          119.833




 Other payables


           19


24.567


                                             36.797




    Due to related parties


 19, 31


2.395


                                             23.463




    Other payables to third parties


 


22.172


                                             13.334




 Derivative instruments


           20


931.278


                                          177.137




 Deferred income


           16


34.383


                                             20.428




 Current income tax liabilities


           29


170.843


                                             21.296




 Provisions


           17


170.467


                                             89.924




    Provisions for employee benefits


 


54.719


                                             12.629




    Other provisions


 


115.748


                                             77.295




 Other current liabilities 


           15


3.603.337


                                       3.723.374




 


 


 


 




 Non-current liabilities


 


14.455.601


                                    10.009.649




 


 


 


 




 Long-term financial liabilities


              5


14.187.782


                                       9.777.270




 Provisions


           17


242.136


                                          223.734




    Provisions for employee benefits


 


242.136


                                          223.734




 Deferred income


           16


3.236


                                               4.112




 Derivative Instruments


           20


21.441


                                               3.364




 Other non-current liabilities 


           15


1.006


                                               1.169




 


 


 


 




 Total liabilities


 


41.548.567


                                    27.685.318




 


 


 


 




 Equity


 


7.517.618


                                    10.477.661




 


 


 


 




 Share capital


           23


250.419


                                          250.419




 Adjustment to share capital


           23


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


 


(2.438.089)


                                        (960.973)




    Hedging gains/(losses)


 


(2.648.055)


                                     (1.141.847)




         Cash flow hedge gains/(losses)


 


(2.648.055)


                                     (1.141.847)




    Share of other comprehensive income of investments accounted for


 


 


 




    using equity method that will be reclassified to profit or loss


 


209.966


                                          180.874




 Restricted reserves


           23


597.086


                                          279.668




 Retained earnings


 


5.739.481


                                       5.651.805




 Net income


 


1.946.730


                                       3.811.546




 


 


 


 




 Total equity attributable to equity holders of the parent


 


7.436.509


                                    10.373.347




 


 


 


 




 Non-controlling interests


 


81.109


                                          104.314




 


 


 


 




 Total equity and liabilities


 


49.066.185


                                    38.162.979




 
The condensed interim consolidated financial statements for the period ended 30 September 2018 have been approved by the Board of Directors on 7 November 2018.
 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2018

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

 
 




 


 


 Unaudited


 


 Unaudited


 




 


 


 1 January -


 1 July - 


 1 January - 


 1 July - 




 


 


30 September


30 September


30 September


30 September




 


Note


2018


2018


2017


2017




 


 


 


 


 


 




 Revenue


       24


63.749.246


30.247.066


39.344.061


14.343.743




 Cost of sales 


       24


(56.549.450)


(26.337.227)


(34.530.568)


(12.733.809)




 


 


 


 


 


 




 Gross profit 


 


7.199.796


3.909.839


4.813.493


1.609.934




 


 


 


 


 


 




 General administrative expenses


       25


(648.235)


(237.352)


(593.003)


(224.386)




 Marketing, selling and distribution expenses


       25


(205.683)


(80.913)


(188.111)


(68.357)




 Research and development expenses


       25


(15.663)


(6.077)


(12.322)


(3.532)




 Other operating income


       26


508.152


238.190


170.358


30.378




 Other operating expenses


       26


(4.279.650)


(3.021.448)


(111.058)


(54.502)




 


 


 


 


 


 




 Operating profit / (loss)


 


2.558.717


802.239


4.079.357


1.289.535




 


 


 


 


 


 




 Expense from investment activities


       27


(6.598)


112


(11.550)


597




 Income/(loss) from investments accounted by


 


 


 


 


 




    equity method


       10


191.202


46.545


184.980


66.093




 


 


 


 


 


 




 Operating profit before financial


 


 


 


 


 




    income/(expense)


 


2.743.321


848.896


4.252.787


1.356.225




 


 


 


 


 


 




 Financial income


       28


5.162.486


3.060.460


450.278


223.125




 Financial expense (-)


       28


(5.830.612)


(3.231.178)


(982.841)


(345.683)




 


 


 


 


 


 




 Profit/(loss) before tax from continued operations


 


2.075.195


678.178


3.720.224


1.233.667




 


 


 


 


 


 




 Tax income / (expense)


 


(102.431)


(127.491)


(381.126)


(233.849)




    Taxes on income (-)


 


(174.730)


(136.270)


(488.426)


(228.739)




    Deferred tax income / (expense)


       29


72.299


8.779


107.300


(5.110)




 


 


 


 


 


 




 Net profit/(loss) from continued operations


 


1.972.764


550.687


3.339.098


999.818




 


 


 


 


 


 




 Other comprehensive income:


 


 


 


 


 




 Items to be reclassified to profit or loss


 


                (1.526.355)


(1.085.895)


               126.743


                 11.828




 Share of other comprehensive income accounted for investment 


 


 


 


 


 




 using equity method that will be reclassified to profit or loss


 


                      29.092


19.144


                      380


                      499




      Gain/(loss) from translation of foreign currency of 


 


 


 


 


 




      investments using equity method


 


                      29.092


19.144


                      380


                      499




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


 


               (1.933.822)


(1.375.546)


               157.057


                 14.578




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


 


               (1.933.822)


(1.375.546)


               157.057


                 14.578




 Tax effect of other comprehensive income/(loss) to


 


 


 


 


 




 be reclassified to profit or loss


 


                    378.375


270.507


               (30.694)


                 (3.249)




      Deferred tax income/(expense) 


 


                    378.375


270.507


               (30.694)


                 (3.249)




 


 


 


 


 


 




 Other comprehensive income/(expense)


 


               (1.526.355)


(1.085.895)


               126.743


                 11.828




 


 


 


 


 


 




 Total comprehensive income


 


                    446.409


            (535.208)


            3.465.841


            1.011.646




 


 


 


 


 


 




 Distribution of income for the period:


 


 


 


 


 




 Non-controlling interests


 


                      26.034


9.085


                 20.911


                   7.614




 Attributable to equity holders of the parent 


 


                 1.946.730


541.602


            3.318.187


               992.204




 


 


 


 


 


 




 Distribution of total comprehensive income


 


 


 


 


 




 Non-controlling interests


 


                    (23.205)


(22.275)


                 21.630


                   7.281




 Attributable to equity holders of the parent


 


                    469.614


(512.933)


            3.444.211


            1.004.365




 


 


 


 


 


 




 Earnings (loss) per share from continued operations


 


 


 


 


 




 Earnings per share with


 


 


 


 


 




    nominal value kr. 1 each (kr.)


       30


                          7,77


                     2,16


                   13,25


                     3,96




 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE NINE MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2018

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

 




 


 


                       Unaudited                            Unaudited




 


 


1 January -


1 January -




 


Notes


30 September 2018


30 September2017




Cash flows from operating activities


 


2.854.585


4.057.792




 


 


 


 




 Profit/(loss)


 


1.972.764


3.339.098




 Adjustment for reconciliation of profit/(loss)


 


1.136.031


1.227.057




 Adjustment for depreciation and amortisation expense


12, 13


466.184


427.737




 Adjustments for stock impairment(cancelation)


 


1.708


-




   Adjustments for stock impairment


8


1.708


-




 Adjustment for provisions


17


113.040


89.701




 Adjustment for interest (income) and expense


28


573.958


112.051




 Adjustment for unrealized foreign currency translation differences


28


(4.766.116)


(55.001)




 Adjustment for fair value (gain) or loss


 


(131.742)


55.476




 Adjustment for income of investments accounted by equity method


10


(191.202)


(184.980)




 Adjustment for tax expenses(income)


29


102.431


381.126




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


27


6.598


11.550




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


28


4.971.880


358.230




  Other adjustments  for reconciliation of profit/(loss)


 


(10.708)


31.167




 Changes in working capital


 


(167.733)


(143.011)




 Adjustment for decrease/(increase) in trade receivables


 


(4.402.088)


(2.352.739)




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


 


(1.237.992)


(588.269)




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


 


(288.577)


1.432




 Adjustment for decrease/(increase) in inventories


 


(3.205.933)


(847.734)




 Adjustment for increase/(decrease) in trade payables


 


8.491.217


2.545.983




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


 


(296.578)


779.533




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


 


772.218


318.783




Cash flows from operating activities


 


2.941.062


4.423.144




 Tax returns/(payments)


 


(25.183)


(314.278)




Other cash inflow/(outflow)


 


(61.294)


(51.074)




 


 


 


 




Cash flows from investing activities


 


(535.140)


(633.011)




 


 


 


 




 Cash outflows in subsidiaries regarding additional share purchases


 


-


(2.500)




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


 


970


3.072




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


 


(656.110)


(703.583)




 Dividends received


10


120.000


70.000




 


 


 


 




Cash flows from financing activities


 


(6.126.036)


(1.911.106)




 


 


 


 




 Cash inflows from financial liabilities


5


29.690.145


33.024.695




 Cash outflows from financial liabilities


5


(32.194.993)


(33.240.818)




 Cash inflows from derivative instruments


 


547.234


26.242




 Cash outflows from derivative instruments


 


(345.057)


(104.620)




 Dividends paid


 


(3.406.452)


(1.557.107)




 Interest paid


 


(685.768)


(450.863)




 Interest received


 


268.855


391.365




 


 


 


 




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


 


 
(3.806.591)


1.513.675




 


 


 


 




Impact of foreign currency translation differences on cash and cash equivalents


 


4.766.116


55.001




 


 


 


 




Net increase/(decrease) in cash and cash equivalents


 


959.525


1.568.676




 


 


 


 




Cash and cash equivalents at beginning of period


 


7.592.735


5.022.402




 


 


 


 




Cash and cash equivalents at end of period


4


8.552.260


6.591.078




 
 




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