12 Nov 2018 12:39
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 |
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Total Sales | 8,702 | 8,899 | -2.2 | 22,262 | 24,177 | -7.9 |
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Financial (Million TL) | Sales Revenue | 30,247 | 14,344 | 110.9 | 63,749 | 39,344 | 62.0 |
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Operating Profit | 802 | 1,290 | -37.8 | 2,559 | 4,079 | -37.3 |
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Profit Before Tax | 678 | 1,234 | -45.0 | 2,075 | 3,720 | -44.2 |
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Net Profit | 551 | 1,000 | -44.9 | 1,973 | 3,339 | -40.9 |
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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.)
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| Unaudited | Audited |
Assets | Notes | 30 September 2018 | 31 December 2017 |
|
|
|
|
Current assets |
| 30.250.105 | 20.366.024 |
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|
|
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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 |
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|
|
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Non-current assets |
| 18.816.080 | 17.796.955 |
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|
|
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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 |
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|
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Total assets |
| 49.066.185 | 38.162.979 |
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|
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Liabilities |
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|
|
|
|
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Current liabilities |
| 27.092.966 | 17.675.669 |
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|
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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 |
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|
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Non-current liabilities |
| 14.455.601 | 10.009.649 |
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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 |
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|
|
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Total liabilities |
| 41.548.567 | 27.685.318 |
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|
|
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Equity |
| 7.517.618 | 10.477.661 |
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|
|
|
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) |
|
|
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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 |
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|
|
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Total equity attributable to equity holders of the parent |
| 7.436.509 | 10.373.347 |
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|
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Non-controlling interests |
| 81.109 | 104.314 |
|
|
|
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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 |
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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) |
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Gross profit |
| 7.199.796 | 3.909.839 | 4.813.493 | 1.609.934 |
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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) |
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Operating profit / (loss) |
| 2.558.717 | 802.239 | 4.079.357 | 1.289.535 |
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Expense from investment activities | 27 | (6.598) | 112 | (11.550) | 597 |
Income/(loss) from investments accounted by |
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equity method | 10 | 191.202 | 46.545 | 184.980 | 66.093 |
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Operating profit before financial |
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income/(expense) |
| 2.743.321 | 848.896 | 4.252.787 | 1.356.225 |
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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) |
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Profit/(loss) before tax from continued operations |
| 2.075.195 | 678.178 | 3.720.224 | 1.233.667 |
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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) |
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Net profit/(loss) from continued operations |
| 1.972.764 | 550.687 | 3.339.098 | 999.818 |
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Other comprehensive income: |
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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 |
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|
|
|
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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 |
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|
|
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) |
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Other comprehensive income/(expense) |
| (1.526.355) | (1.085.895) | 126.743 | 11.828 |
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Total comprehensive income |
| 446.409 | (535.208) | 3.465.841 | 1.011.646 |
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Distribution of income for the period: |
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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 |
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Distribution of total comprehensive income |
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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 |
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Earnings (loss) per share from continued operations |
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Earnings per share with |
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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 |
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|
|
|
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) |
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Cash flows from investing activities |
| (535.140) | (633.011) |
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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 |
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Cash flows from financing activities |
| (6.126.036) | (1.911.106) |
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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 |
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Net increase/(decrease) in cash and cash equivalents before the effect of foreign currency translation differences |
|
(3.806.591) | 1.513.675 |
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Impact of foreign currency translation differences on cash and cash equivalents |
| 4.766.116 | 55.001 |
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Net increase/(decrease) in cash and cash equivalents |
| 959.525 | 1.568.676 |
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Cash and cash equivalents at beginning of period |
| 7.592.735 | 5.022.402 |
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Cash and cash equivalents at end of period | 4 | 8.552.260 | 6.591.078 |