Türkiye Petrol Rafinerileri : Tüpraş made 1.3 Billion TL investment and 27.6 million tons of sales in 2021

16 February 2022

Turkey’s leading industrial company, Tüpraş, announced the financial results for the last period of 2021. In the last quarter of the year, Tüpraş announced its ‘Strategic Transition Plan’ for new business areas with the goal of becoming carbon neutral in 2050, and made a total investment of 1.3 billion TL in 2021, 55% of which was in the field of sustainability.

Tüpraş announced the financial results for the fourth quarter of 2021. Tüpraş had a capacity utilization of 98% while total production and sales realized as 7 and 7.7 million tons, respectively. Tüpraş recorded 25.1 million tons of production, 27.6 million tons of product sales volume and TL 151 Billion total revenue in 2021.

Tüpraş continues its investments in modernization and energy efficiency and has made a total investment of TL 1.3 billion in 2021, 55% of which is sustainability investments.

In the last quarter of the year, while the OPEC+ countries kept their decision to ease supply control, the uncertainty arisen from Omicron variant regarding global oil demand and the statements regarding USA’s strategic oil reserves use, caused volatility in Brent prices. Brent price reached $78.8/v level as of the end of September, and closed the year at $77/v, displaying a volatile course within the quarter.

In the fourth quarter, gasoline, diesel and jet cracks remained strong as a result of the tight supply due to the maintenance of the refineries in Europe, the strong demand profile despite the effect of the Omicron variant, and the reflection of the rising energy costs on the product prices. Each product cracks reached pre-pandemic levels in December.

While the increase in cracks and strong sales supported the operating profit of the company in the last quarter, increase in natural gas costs limited the improvement in refining operations. Tüpraş recorded a pre-tax profit of 669 million TL in the fourth quarter, backed by inventory gain resulting from elevated Brent prices. The company’s profit before tax for 2021 was 2.2 billion TL.

While maintaining strong balance sheet with well-disciplined and effective financial policies Tüpraş’s performance continues to approach pre-pandemic levels in terms of ratios with improved operating profitability.

Tüpraş, which has been the pioneer of energy in Turkey since its establishment, announced its “Strategic Transition Plan” on November 24, 2021. In line with its plan, which aims to be the leader in the future of the energy industry, the company has committed to reduce its carbon emissions from its operations by 27 percent by 2030 compared to 2017, and to be carbon neutral in 2050, with the investments in new areas and energy efficiency projects. Tüpraş announced that it will focus on four business areas: Sustainable Refining, Biofuels, Zero Carbon Electricity and Green Hydrogen, within the scope of the Strategic Transition Plan, which sets the roadmap from 2022 to 2050.

Tüpraş successfully continued its mission of meeting the fuel needs of our country without any disruption and throughout its transformation journey, with the aim of leading the future of the energy industry and its safe operation approach, will continue to create value for its shareholders, business partners and our country with its strong human capital and global competitiveness.

Operational and Financial Results
	Q4 2021	Q4 2020	Diff. (%)	2021	2020	Diff. (%)
Operational	Total Production	7.0	6.1	16	25.1	23.4	7
(Million Tons)	Total Sales	7.7	6.3	22	27.6	24.5	13
Financial (Million TL)	Sales Revenue	56,470	19,990	182	150,972	63,244	139
Operating Profit	-3,045	620		465	-619
Profit Before Tax	669	-113		2,161	-3,795
Net Profit*	1,392	376		3,319	-2,494
*Excluding Minority Interest