Tüpraş Continues to Meet Turkey's Energy Needs

Tüpraş released its financial results for the first quarter of 2020. In the first quarter of the year, Tüpraş produced 6.0 million tons and sold 6.2 million tons, with investment spending of TRY 320 million during this period. Petroleum product demand started the year weakly due to slowdown in the global economy and above-seasonal air temperatures. Following the implementation of quarantine measures to prevent the Coronavirus (Covid-19) pandemic affecting the world, an unprecedented demand contraction began to occur. As global aviation activities came to a near standstill due to cancellations of international and regional flights, the largest negative impact occurred in jet fuel demand. Due to voluntary and mandatory lockdowns affecting more than half of the world's population, road fuel demand also suffered from this weakness, and falling demand pressured product margins.

Historic Decline in Oil Prices

Brent crude oil, which started the year at USD 66/barrel, declined approximately 21 percent in light of developments on the demand side and fell to USD 52/barrel at the beginning of March. When OPEC's meeting on 5 March failed to reach a conclusion on continuing production cuts to support oil prices, a simultaneous supply and demand crisis occurred for the first time in history, and Brent prices fell to approximately USD 18/barrel by the end of March.

Sharp Decline in Oil Prices Results in Major Inventory Loss

Tüpraş produced 6.0 million tons with 84.6 percent capacity utilization in the first quarter of 2020 and achieved total product sales of 6.2 million tons, of which 4.6 million tons were domestic. Tüpraş's first quarter 2020 revenue declined 18 percent to TRY 16.9 billion. Tüpraş recorded a net loss of TRY 2,265 million in the first quarter of 2020 due to the impact of inventory loss resulting from the decline in oil prices, in addition to the low refinery profitability environment. Tüpraş maintained its strong balance sheet during the volatile period through its strong and disciplined financing policies. Effective financial management aimed at ensuring the continuity of a strong balance sheet will continue to be essential in supporting Tüpraş's operations in the coming period.

Tüpraş Continues to Meet Turkey's Fuel Needs with a Safe Operations Approach

Operating with a priority on safe production, Tüpraş has taken necessary measures in line with current recommendations and directives from all competent authorities, particularly the World Health Organization and T.C. Ministry of Health, since the first days of the pandemic and has successfully fulfilled its duty to meet Turkey's fuel needs without any disruption. Aware of the company's strategic importance in meeting Turkey's energy needs, Tüpraş continued its projects in modernization and energy efficiency in the first quarter of 2020, implementing total investment spending of TRY 320 million. Tüpraş will continue to create added value for its shareholders, business partners and the country with its strong human resources and global competitiveness.  

Operational and Financial Data		Q1 2020	Q1 2019	Change (%)
Operational (Thousand Tons)	Total Production	6,040	6,740	-10
	Total Sales	6,214	7,241	-14
Financial (Million TRY)	Sales Revenue	16,940	20,708	-18
	Operating Profit	-1,716	228
	Profit Before Tax	-2,798	-310
	Net Period Profit	-2,265	-375