Tüpraş Announces Financial Results for 2021

Tüpraş Announces 2021 Financial Results In the fourth quarter of the year, Tüpraş unveiled its "Strategic Transformation Plan" targeting carbon neutrality by 2050 and new business areas, having invested a total of TRY 1.3 billion in 2021, of which 55% was directed to sustainability initiatives. In the fourth quarter, the company achieved production of 7 million tonnes and sales of 7.7 million tonnes with 98% capacity utilization. Thus, Tüpraş reached total production of 25.1 million tonnes and sales of 27.6 million tonnes in 2021, generating revenue of TRY 151 billion. Continuing its investments in modernization and energy efficiency, Tüpraş made total capital expenditure of TRY 1.3 billion in 2021, of which 55% was directed toward sustainability targets. In the fourth quarter of the year, OPEC+ countries maintained their decision to ease supply controls, while the uncertainty created by the Omicron variant on global oil demand and U.S. announcements regarding the use of strategic petroleum reserves led to volatile movements in Brent crude oil prices. Brent crude oil price, which stood at USD 78.8/barrel at the end of September, showed volatility during the quarter and closed the year at USD 77/barrel. In the fourth quarter, despite supply constraints due to refinery maintenance in Europe and the impact of the Omicron variant, strong product margins for gasoline, diesel and jet fuel were sustained as a result of the robust demand profile and the pass-through of rising energy costs to product prices; all three product margins reached pre-pandemic levels during December. The rise in product margins and strong sales in the last quarter supported the company's operating profit, while increases in natural gas costs had a limiting effect on refining activity improvements. With the impact of inventory gains resulting from the rise in Brent crude oil prices, Tüpraş recorded a pre-tax profit of TRY 669 million in the fourth quarter of the year. The company's pre-tax profit for 2021 reached TRY 2.2 billion.

Success Achieved Through Disciplined and Effective Financing Policies

Since its establishment, Tüpraş has been a pioneer of energy in Turkey. On 24 November 2021, the company announced its "Strategic Transformation Plan". In line with the plan that aims to maintain leadership in the future of the energy sector, the company committed to reducing carbon emissions from its operations by 27% by 2030 compared to 2017 levels through investments in new energy sources and the contribution of energy efficiency projects, and to achieve carbon neutrality by 2050. Under its Strategic Transformation Plan, which sets out the roadmap from 2022 to 2050, Tüpraş announced its focus on four business areas: Sustainable Refining, Biofuels, Zero-Carbon Electricity and Green Hydrogen. Tüpraş, while fulfilling its duty to meet the country's petroleum product needs, will continue to create added value for shareholders, business partners, all stakeholders and the country throughout its transformation journey, focusing on conducting all its activities with a safe operating philosophy and leveraging its competent human resources and global competitive strength.