3Q23 Results

Investor Presentation

3Q23 financial highlights

Sales

TL13.2bn

24% QoQ

TL1.566mn

EBITDA 11,9% margin 699% QoQ

Net

TL2.346mn

0,95 TL/share

Income

961% QoQ

TL4bn

Cash

1.3x current ratio

-63% QoQ

TL25.1bn

Net

12,6x net debt/

Debt

EBITDA

31% QoQ

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2

Improved profitability through management initiatives

Petkim was able to access to low-cost feedstock thanks to revised agreement with STAR Refinery

Petkim's average gross unit margins improved from USD56/ton in 2Q23 to USD168/ton in 3Q23

Optimization-focused initiatives resulted in cost efficient operations and improved profitability

Petkim's production capacity level was around 65%

Higher trade contribution in the total portfolio mainly due to lower trading cost and depreciation in TL

USD9.9mn trading gross profit has been recorded

STAR Refinery welcomed Petkim as its new shareholder

Petkim completed its acquisition of 12% indirect share of STAR Refinery

New award for Petkim from Institutional Investor 2023 Europe and Emerging EMEA Equity Awards

Petkim was awarded in the Best Team in IR category in basic materials sector

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3

Industry Environment

Global petrochemical market Petrochemical market in Turkey

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Industry environment

Monthly naphtha - ethylene spread (CIF MED spot prices)

USD/tonne

2.000

1.123

1.000

1.800

899

872

942

1.001 1.005

900

781

783

819

812

876

759

1.600

754

681

683

800

1.400

700

1.200

600

1.000

754

661

610

642

654

672

694

644

656

632

667

500

800

580

580

536

566

400

600

300

400

369

357

349

200

238

232

248

296

200

171

141

165

200

218

115

50

91

100

0

0

Spread

Naphtha

Ethylene

Monthly average Platts index*

USD/tonne

1.040

928

924

932

936

890

878

873

869

872

843

850

813

757

768

(*) compilation of ethylene, propylene, benzene, toluene, PX, LDPE and PP.

Ethylene prices decreased by 19%, while the cost of naphtha raised by 5% in 3Q23 compared with the 2Q23

Ethylene-naphtha spread considerably narrowed by about 70% from USD287/ton in 2Q23 to USD85/ton in 3Q23

Petrochemical prices rebounded in August on the back of rising feedstock costs, however gains were not enough to lift margins

3Q23 PLATTs index decreased by approximately 4% in comparison with the previous quarter

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5

Industry environment

Product groups spread (over naphtha CIF MED), USD/MT

750

650

550

450

350

250

150

50

Aromatics Polymers Fibers Others Overall

Source: S&P Global Commodity Insights

Key trends in the industry

Demand weakness and over-supply persists

Escalated feedstock and energy costs

Standard naphtha cracker margins tumbled by August as a contrasting view of petrochemical and oil markets led revenue to diverge from upstream costs

Naphtha based producers were pushed to increase polymer prices in August as integrated margins approached breakeven

Polyester value chain profitability remains weak due to oversupply and weak demand, with MEG persistently below breakeven

Improving gasoline market continued to influence heavily on the aromatics chain

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6

Industry environment

Product groups spread (over naphtha CIF MED), USD/MT

Polymers

1000

Fibers

800

800

650

600

500

400

350

200

200

0

-200

HDPE

LDPE

PP

PVC

MEG

ACN

PTA

DEG

1100

Aromatics

Others

900

1080

700

780

500

480

300

180

100

-120

Benzene

Paraxylene

OrthoXylene

PGP

Crude C4

PA

PY-GAS

Source: S&P Global Commodity Insights

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Türkiye's petrochemical sector overview

Türkiye domestic demand is primarily met by imports

Surplus

Arom

(k ton)

PVC

LDPE

HDPE

PP

ACN

MEG

PTA

PA

P-X

C-5

Caustic

Styrene

Naphtha

0

-200

-400

-600

Deficit

3Q22

4Q22

1Q23

2Q23

3Q23

(k ton)

3.000

2.500

2.000

1.500

1.000

500

0

Petrochemical consumption in Türkiye (k ton)

Domestic consumption

Petkim domestic sales

2.109

1.977

2.231

2.147

2.542

251

225

226

230

281

3Q22

4Q22

1Q23

2Q23

3Q23

Products market share (cumulative)

C-5

58%

PA

51%

LDPE

47%

P-X

21%

STYRENE

16%

CAUSTIC

16%

ACN

15%

HDPE

9%

PP

6%

11% total

AROM…

6%

market share

PVC

6%

MEG

4%

PTA

1%

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8

Operating

and Financial

Results

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Capacity utilization and gross production

Capacity utilization rates (%)

Gross production (k ton)

87%

100%

516

366

572

636

589

80%

700

100%

90%

120%

76%

90%

102%

105%

80%

600

66%

99%

213

80%

48%

88%

87%

70%

500

194

191

87%

87%

70%

163

60%

80%

60%

400

106

74%

50%

103

107

50%

80

54%

300

120

28

40%

16

40%

21%

52%

40%

15

55

40%

32%

30%

200

162

160

161

162

30%

18%

17%

22%

23

20%

97

20%

17%

100

127

0%

97

116

112

10%

12%

10%

71

8%

0

0%

0%

0%

3Q22

4Q22

1Q23

2Q23

3Q23

3Q22

4Q22

1Q23

2Q23

3Q23

Thermoplastics

Fiber

Aromatics

Ethylene

Other

Ethylene

Thermoplastics

Fiber

Aromatics

Other

In line with its cost optimization strategy, Petkim reduced capacity through suspending uneconomical plants such as MEG, PTA Petkim generated 589kton gross production and capacity utilization rate was 65% in 3Q23

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10

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Disclaimer

Petkim Petrokimya Holding AS published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 10:50:54 UTC.