1Q19 Results

Investor Presentation

1

Ethylene - Naphtha spread averaged US$ 447/ton in 1Q19

  • Ethylene-naphthaspread increased by 9% from US$ 409/ton in 4Q18 to US$ 447/ton in 1Q19.
  • The slowdown in the global economy and global trade in the first quarter of this year reduced the demand for petrochemical products.
  • Furthermore, the domestic demand for petrochemical products decreased together with the economic contradiction of Turkey. However, slowdown for domestic producers has been limited with the declining import demand due to the exchange rate fluctuations.
  • In such periods when the domestic market shrinks, Petkim's, as a sole petrochemical producer, export performance increases in line with the strategy of opening up to new markets.
  • For the second quarter however, more optimistic atmosphere is expected in the market due to major turnarounds in Europe and economic revival in summer.

2

PLATTs Index averaged US$ 893 per ton in 1Q19

  • PLATTs index decreased to US$893 per ton in 1Q19 from US$954 per ton in 4Q18.
  • In 1Q19 PLATTs index was %15 below 2018 average.
  • The price fluctuations in oil prices was slightly reflected in the prices of monomer products. On the other hand, prices of polymer products have not changed significantly.
  • The downward trend in spreads that started in the last quarter of 2018 remained flat in February. However, the upward trend has begun since March.
  • The increase in ACN prices after the sharp drop starting in the mid of the third quarter of 2018, recovered in the first quarter of 2019. This made the spread in fiber raw materials increase.

3

Feedstock vs. Product Prices

  • Thermoplastics spread has been slightly turning up starting with the begining of March.
  • As the destocking activity within the sector starting in spring recovered demand pushing petchem prices up.
  • Higher demand, supported with increasing prices creates a favourable market conditions for Petkim and is expected to continue in further months.

4

Costs and Operational Efficiency in 1Q19

5

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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.