Tüpraş Continues to Meet Turkey's Energy Needs

Türkiye's refiner Tüpraş disclosed its financial results for the second quarter of 2020. In the second quarter, Tüpraş achieved total production of 4.9 million tonnes and sales of 5.3 million tonnes, while investments in the first half of the year reached TRY 450 million. During the second quarter of the year, as quarantine measures to prevent the Covid-19 pandemic continued to affect the world, Tüpraş maintained its productivity-focused production approach combined with strong and disciplined financial policies to continuously meet Turkey's energy needs. In the second quarter of 2020, Tüpraş produced 4.9 million tonnes at 69.5% capacity utilization and achieved total product sales of 5.3 million tonnes, of which 4.1 million tonnes were domestic. The contraction in demand experienced domestically and internationally due to the pandemic continued to have an impact during the second three-month period of the year. The greatest impact was observed in jet fuel demand as global aviation activities came to a standstill; during the same period, demand for road fuels was also weakened by movement and travel restrictions affecting more than half of the world's population. High levels of product inventories, particularly in April and May, created significant pressure on product margins. From June onwards, as precautionary measures began to be eased and economies entered the reopening process, demand-side recovery signals were observed, leading to product margins entering an upward trend. Brent crude oil price, which closed March at $18/barrel, continued its weak performance in April and fell to $13/barrel, the lowest level in the past 20 years on a daily basis. Starting from May, Brent crude oil price entered a recovery trend due to increased optimism regarding the fight against the pandemic and supply restrictions imposed by OPEC members and other crude oil producers, reaching $42/barrel by end of June.

Izmir Refinery Returns to Production as Demand Recovers

In order to minimize the negative effects of the decline in demand due to the Covid-19 pandemic, Tüpraş's Izmir Refinery, which halted production on 5 May, gradually returned to production as of 1 July in line with recovery signals in demand. During this period, particularly due to greater impact on jet fuel demand, production optimization was applied and jet fuel production rates were reduced. In the second quarter of 2020, Tüpraş produced 4.9 million tonnes at 69.5% capacity utilization and achieved total product sales of 5.3 million tonnes, of which 4.1 million tonnes were domestic. As a result of declining sales and falling prices caused by reduced demand, Tüpraş's second quarter 2020 revenue was TRY 9.3 billion. Tüpraş, as a result of the negative effects created by Covid-19 measures on petroleum product demand and weakness in product margins, recorded a net loss of TRY 185 million in the second quarter of 2020. Through its effective financial policies, Tüpraş maintained a strong balance sheet during this volatile period. The company continues to create added value for its qualified human resources and global competitiveness as well as for its shareholders, business partners and Turkey.

Tüpraş Continues to Meet Turkey's Fuel Requirements with Safe Operations

Since the first days of the pandemic, Tüpraş, having taken the necessary precautions in line with current recommendations and directives from all competent authorities, particularly the World Health Organization and the Turkish Ministry of Health, and considering the guidance of the Koç Holding Crisis Center, continues to successfully fulfill its duty to meet Turkey's fuel requirements without any disruptions while maintaining safe production as a priority. Aware of its strategic importance in meeting Turkey's energy needs, Tüpraş continued its projects in modernization and energy efficiency during the second quarter of 2020, carrying out total investment expenditures of TRY 450 million in the first half of the year.    

Operational and Financial Data
		Q2 2020	Q2 2019	Change (%)	H1 2020	H1 2019	Change (%)
Operational (Thousand Tonnes)	Total Production	4,911	6,918	-29	10,952	13,658	-20
	Total Sales	5,301	7,131	-26	11,514	14,372	-20
Financial (Million TRY)	Sales Revenue	9,280	23,953	-61	26,219	44,661	-41
	Operating Profit	278	1,333	-79	-1,438	1,561	-192
	Profit Before Tax	-329	584	-156	-3,127	274	-1,243
	Net Period Profit	-185	870	-121	-2,450	495	-595