Petkim Breaks Net Profit Record in Its 57-Year History

Petkim Sets Net Profit Record in 57-Year History During a period marked by rising petrochemical product demand alongside supply constraints, product portfolio diversity and uninterrupted production delivered net profit records for Petkim in both dollar and Turkish lira terms. The company closed 2021 with TRY 5.5 billion in net profit. Petkim, a group company of SOCAR, one of Turkey's largest industrial holdings, announced its 2021 financial results. According to the figures, the company completed 2021 with net profit records in both dollar and Turkish lira terms. The company generated TRY 5.5 billion in net profit at the end of 2021. The company increased its sales by 137 percent compared to 2020, bringing them to TRY 28.7 billion for the full 2021 year. Anar Mammadov, Head of SOCAR Turkey Refinery and Petrochemistry Business Unit and General Manager of Petkim, noted that the company's broad product portfolio contributed to this success, stating: "As in 2020, increased hygiene needs in 2021 kept demand for packaging materials high. With the uninterrupted production of STAR Refinery, Petkim's capacity utilization rate increased from 87.9 percent in 2020 to 92.6 percent in 2021. This has once again proven how correct an investment STAR Refinery was. Despite pandemic restrictions, we continued to supply products to ensure domestic manufacturers, particularly those engaged in exports, maintained their production." he said. In addition to production sales, the company also increased its commercial sales compared to the previous period, with commercial sales exceeding 33 percent of total sales, generating USD 65 million in profit from commercial sales. Noting that they spent 2020 maintaining strong liquidity to be prepared for the uncertainties related to pandemic effects at that time, Mammadov stated that in 2021 they optimized liquidity to reduce finance expenses, thereby reducing short-term debt by USD 460 million compared to the previous year. "In 2021, we demonstrated effective financial risk management and reduced our net interest expenses. Another factor contributing to this success has been our continued strengthening in 2021 of our value creation and optimization initiatives program, which began in 2016," he said.

"Our Contribution to the National Economy Continues with TRY 1.1 Billion in Corporate Tax"

Mammadov continued: "Alongside production sales, with our commercial sales also increasing during this period, in addition to the strong performance we delivered as a company, we generated significant financial value for our national economy through TRY 1.1 billion in corporate tax accrued from our annual profit. While achieving all these successes, we also managed to rank among the world's top 10 companies in our category in the global ESG rating that reflects our environmental, social and governance performance. I believe that both our economic achievements and the performance we demonstrated in our sustainability targets are more meaningful than ever during a period when adverse conditions persist in global markets," he said. Mammadov noted that an encouraging development for 2021 was the increase in both the duration and amount of their strategic investment incentive certificate.