1Q18 Results

Investor Presentation

03/05/2018

Ethylene - Naphtha spread averaged US$ 707/ton in 1Q18

  • Ethylene-naphthaspreads increased by 18% from the average of US$ 600/ton in the 4Q17 to US$ 707/ton in the 1Q18.

Ethylene - Naphtha spread averaged US$ 705/ton in 2Q17

• Naphtha crackers in Europe were producing lower margins when compared with Q1 2017.

• Increased feedstock price and much lower by-product contribution have squeezed margins.

* As of 27.04.2018

PLATT's Index averaged US$ 1.072 per ton in 1Q18

  • PLATT's index increased to $1.072 per ton in 1Q18 from $1.020 per ton in 4Q17.
  • In 1Q18 PLATT's index is %10,6 above 2017 average.
  • The petrochemical pricing index show that petrochemical prices were under pressure in the first quarter.

* As of 27.04.2018

Feedstock vs. Product Prices in 1Q18

•

•

•

•

Petkim Naphtha Cost and Margins

1.200

350

288

290

300

1.000

269

267

263

251

245

236

218

233

250

800

217

208

200

600

169

139

138

150

400

100

200

50

-

-

Jan-17

Feb-17

Mar-17

Apr-17

May-17Jun-17

Jul-17

Aug-17

Sep-17

Oct-17Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

Margin (Right Axis)

Unit Price

Unit Cost

Cyclicality and volatility of the earnings in petrochemicals continues to be one of the greatest challenges facing the industry

There has been some correction in unit cost margins over Q1 driven by higher priced naphtha, lower priced aromatics and lower capacity utilization

The ability to pass increasing cost down the value chain depend greatly on the balance of supply and demand

Co-product values such as propylene, c4 and Py-Gas also impact unit cost margins

Costs and Operational Efficiency in 1Q18

Plant Cost Base Breakdown 1Q18

9,2%

Raw material

4,3%

7,1%

Energy

Labor

Other

79,4%

Ethylene Facility Capacity Utilization Rate

96%

99%

97%

100%

102%

98%

98%

86%

84%

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

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Disclaimer

Petkim Petrokimya Holding AS published this content on 14 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2023 10:34:01 UTC.