Tüpraş has announced its financial results for the fourth quarter of 2019. Tüpraş has acheived a capacity utilization rate of 96.2% with 6.9 million tons of production in the last quarter of the year while domestic and total sales of Tüpraş realized as 5.3 and 7.0 million tons for the same period, respectively.
In 2019, Tüpraş has made 236 million dollars of investment while increasing its total production by 9.4% y-o-y to 28.1 million tons and making 29.2 millions of sales in total.
Sluggish oil products demand due to slowing global economy and mild weather conditions has weighed heavily on refining margins in the fourth quarter. OPEC+ cut decision along with the ongoing Iran and Venezula sanctions constrained heavy crude supply in the last quarter. In this fragile refining margin environment during the fourth quarter of 2019, the operating profit of Tüpraş realized as 61 million TL whereas the net profit was 186 million TL.
Production increased despite the maintenance in Fuel Oil Conversion FacilityTüpraş has completed the periodical maintenance and improvement shutdown for Fuel Oil Conversion Facility in Tüpraş İzmit Refinery 14 days earlier than the planned date while maintaining precedence for production safety and has restarted operation at full capacity. Despite extensive and long-term maintenance works during this period, Tüpraş continued to meet the fuel demand of Turkey successfully.
Tüpraş, being the leading refiner in Turkey and as one of the prominent refineries in Europe, has established a new office in London in 2019 with the purpose of closely monitoring international market opportunities, supporting import and export operations and creating additional value from supply chain and sales activities. Tüpraş aims at a wider integration with the global energy landscape by the support of the London Trading Office.
Economic and geopolitical developments have affected the refinining sectorUncertainties in the global economy and expectations for slowdown during 2019 have put pressure on demand. Refining margins were affected adversely by the economic turmoil along with geopolitical developments, which increased costs by constraining heavy crude supply. As a result of escalating financing expenses besides frail operational profitability, net profit declined by 86% to 526 million TL.
Tüpraş continued its investments on modernatizion and energy efficiency with 236 million dollars in 2019.
IMO 2020 maritime fuel regulation change is anticipated to positively affect complex refineries such as Tüpraş while the impact of global political and social events on oil and oil product will be monitored closely in 2020.
|Operational and Financial Results|
|Operational (Thousand Tons)||Total Production||6,917||6,614||4.6||28,112||25,695||9|
Financial (Million TL)
|Profit Before Tax||-439||1,649||-311||3,724|