Petkim's Profitability Continues

Petkim Maintains Profitability Petkim announced that despite margin compression in the petrochemicals sector, it closed 2022 with net profit of TRY 6.5 billion, supported by strong cash position, creditworthiness and effective planning methods. Petkim, a group company of SOCAR Türkiye, disclosed its 2022 financial results. According to the announcement, Petkim generated net profit of TRY 6.5 billion at the end of 2022. The company increased sales by 70 percent compared to 2021, raising them to TRY 49 billion, while also boosting cash assets to TRY 13 billion. In a year marked by significant margin compression in the petrochemicals sector, the company's strong financial performance was driven by skilled workforce, sound management approach, cash position, creditworthiness and integration with STAR Refinery. The company completed its scheduled maintenance shutdown last year, a critical operation for sustainability and efficiency conducted every four years, ahead of schedule and below projected costs thanks to operational efficiency and strategic management approach. Despite falling product prices and margins globally from the first quarter onwards, the company increased its net period profit to TRY 6.5 billion. The company also executed successful cash management in 2022. This strong liquidity enabled the company to pay its USD 500 million Eurobond maturing in January 2023 using internal resources, while securing USD 300 million in new long-term external funding. As a result, the Eurobond payment was successfully completed in 2023 while long-term debt was reduced by USD 200 million.

Project Earth rolled out at the company

In 2022, the S4/HANA project Project Earth, initiated by SOCAR Türkiye with SAP, was launched at Petkim. Through this project, conducted with the aim of becoming a data-driven company, enterprise processes such as accounting operations and invoice approvals can be managed end-to-end, and data flow can be realized between SOCAR Türkiye and group companies.

Sustainable production

2022 was a year of significant developments in sustainability and climate change mitigation efforts in both Turkey and Europe. In line with steps taken to reduce absolute emissions resulting from the activities of SOCAR Türkiye and its group companies, the company earned the right to obtain ISCC (International Sustainability and Carbon Certification) Plus certification, which certifies the implementation of sustainable production requirements. Under the scope of the certificate, Petkim will be able to produce bio, circular and bio-circular products. Source