Tüpraş Invests TRY 240 Million in First Quarter

Tüpraş Invested TRY 240 Million in First Quarter Tüpraş disclosed its financial results for the first three months of 2022. Under its Strategic Transformation Plan, Tüpraş aims to reach a zero-carbon electricity generation portfolio of approximately 1 GW by 2030, and has initiated the necessary steps to acquire shares of power producer Entek Elektrik. Tüpraş announced its financial results for the first quarter of 2022. The company achieved 6 million tonnes of production and 6.5 million tonnes of sales with 85% capacity utilization in the first three months, reaching revenue of TRY 76.5 billion. Tüpraş continued its modernization, energy efficiency and transformation investments, implementing total capital expenditure of TRY 240 million, of which 45% was directed toward sustainability objectives. The uncertainty created by the Russia-Ukraine war, expectations of declining oil supply, and the sanctions package announced against Russia rapidly drove up Brent crude oil prices, closing at USD 110/bbl at the end of March. The rise in Brent crude oil prices, increased energy costs, and particularly the disruption in middle distillate and intermediate product supplies exported from Russia to Europe pushed middle distillate product margins to record levels.

Net Profit of TRY 896 Million

While product margins reached their five-year averages in the first two months of the year, high increases in natural gas prices, particularly related to production, had a limiting effect on refining operating profitability. With product margins moving upward in March and the impact of inventory gains resulting from the rise in Brent crude oil prices, Tüpraş recorded net profit of TRY 896 million in the first quarter. While maintaining a strong balance sheet through disciplined and effective financing policies and improving operating profitability, financial performance ratios continued to sustain the strong levels achieved at the end of 2021.  

Target: Zero Carbon

Within the scope of the Carbon Transformation Program led by Koç Holding, Tüpraş took the necessary steps to acquire shares in power producer Entek Elektrik from Aygaz and Koç Holding, in line with its Strategic Transformation Plan launched in November of last year. As significant quantities of zero-carbon electricity will be required for green hydrogen production, which is among the company's strategic priorities, the aim is to reach a zero-carbon electricity generation portfolio of approximately 1 GW by 2030. The acceleration of steps taken in the zero-carbon electricity field is targeted through the alignment of Entek's existing renewable electricity capacity and growth plans with Tüpraş's strategic objectives. While Tüpraş fulfills its duty to continuously meet the country's petroleum product needs, along its transformation journey where it targets leadership in the energy sector's future, it will continue to conduct all activities with a safe operating approach; creating added value for shareholders, business partners, all stakeholders and the country through competent human resources and global competitiveness.