3Q16 Results - Investor Presentation - Petkim · 3Q16 Results - Investor Presentation ... •STAR...
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Transcript of 3Q16 Results - Investor Presentation - Petkim · 3Q16 Results - Investor Presentation ... •STAR...
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Ethylene – Naphtha spread averaged US$ 611/ton in 3Q16
• Naphtha and ethylene prices are quite stable with a healthy margin.
• On the back of low oil prices, advantageous naphtha prices are the main driver of the petrochemical market.
3
PLATT’s Index averaged US$ 881per ton in 3Q16
• PLATT’s index increased to $881 per ton in 3Q16 from $852per ton in 2Q16.
• Healthy demand in the 3rd quarter is reflected to the product prices.
4
• Feedstock vs. Product Prices in 3Q16
• Due to an unplanned shut down in ethylene unit, CUR and
production volumes were lower than expected. However, on the
back of high demand on Petrochemical industry, deficit in supply
can not be covered with higher production from other facilities.
Thus increases prices.
• Despite low production volumes, Petkim reached high
operational profit level with high margins.
• In terms of margins Petkim was quite successful to utilise global
petrochemical market conditions.
• Maximum production and fast sales strategy that started with
2015 still prevails.
• Depreciation of TL favors Petkim’s operational performance
both due to USD denominated revenue and 15% TL
denominated COGS. Additionally, fluctuations in USD/TRY
currency with expectation of further depreciation of TL
strengthens market position of Petkim against importers.
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• PETKIM 3Q16– In 3Q16 Petkim recorded TL 975mn sales via 365kton volume
3Q16 Revenue: TL 969mn
3Q16 Export Sales: TL 252mn 3Q16 Volume: 365k ton
• PETKIM 2Q16 Income Statement
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TL mn 3Q15 3Q16
Sales 3.375,1 3.253,5 Cost of sales (2.814,0) (2.585,1)
Gross Profit 561,1 668,4 Gross profit % 16,6% 20,5%
Marketing and sales expenses (22,0) (31,2) General admin. Expenses (86,0) (103,1) R&D Expenses (8,4) (9,7)
Operating profit 444,8 524,3 Other income / (expenses) (38,2) 47,5 Financial income 351,5 195,0 Financial expense (312,0) (174,3)
Profit before tax 446,1 592,5 Income tax (8,0) (112,5) Deferred tax 65,1 35,5
Net Profit / (loss) 503,2 515,4 Net profit % 14,9% 15,8%
Severance (13,0) 2,7 Depreciation 84,8 81,7
EBITDA 516,5 608,7 EBITDA % 15,3% 18,7%
• PETKIM 2Q16 Balance Sheet
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TL mn 12M15 9M16
Cash and cash equivalents 1.502,0 807,4
Trade receivables 551,4 532,6
Inventory 363,5 503,7
Other receviables 261,6 22,0
Other current assets 89,1 106,6
Current assets 2.767,6 1.972,5
Non current assets 2.693,1 3.319,8
Total Assets 5.460,7 5.292,2
Short term borrowings 372,6 422,0
Trade payables 1.141,6 798,7
Other payables 70,3 135,2
Current liabilities 1.584,4 1.356,0
Long term borrowings 914,3 916,5
Other non-current liabilities 156,6 178,7
Shareholders’ equity 2.805,4 2.841,1
Total liabilities 5.460,7 5.292,2
Net debt position 215 -531
Working Capital 35 260
Days sales outstanding 44 44
Days payable outstanding 109 81
Days sales of inventory 35 51
PETKIM – Debottlenecking Investments are completed as of November 2014
In addition to c.50% capacity increase, PETKİM will
also benefit on energy cost.
Capacity (tons /year) : 105,000
Project finance (E/D ratio) : 100% Debt
Investment amount : US$ 20mn
Ethylene Capacity Increase PTA Capacity Increase
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With the completion of the project ethylene
production capacity increased by 13%
Capacity (tons /year) : 588,000
Project finance (E/D ratio) : 20:80
Investment amount : US$ 118mn
PETLIM – Goldman Sachs has purchased 30% stake in Petlim for a total consideration of US$ 250mn
• PETLIM Port Project has 1.5 million TEU container handling capacity, 42
hectare main port area, 8 hectare off-dock service area terminal port.
• APMT and Petkim’s 70% subsidiary PETLIM has a revenue sharing
agreement for the 28 years (+4 years option) of the operational period.
• Our partner in port operations, APMT (group company of Maersk Group)
paid US$ 25mn in July 2013, as the first installment of US$ 65mn upfront
fees for the Operation Rights.
• The infrastructure investment is carried out by Petlim. Petlim’s part of
investment is US$ 276mn, of which around US$ 70mn will be equity and
the remaining will be financed by project financing.
• Goldman Sachs has purchased 30% stake in Petlim for a total
consideration of US$ 250mn
• First phase of the project is completed.
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Petkim - Wind Power Plant
• Petkim is setting up a wind power plant with a total capacity of 51MW
at the Petkim Peninsula
• The WPP is planned to generate 200GWh electricity per annum.
• PETKİM signed an agreement with ALSTOM RENOVABLES ESPAÑA S.L.U
and ALSTOM Power ve Ulaşım A.Ş (Alstom Türkiye) consortium on
28/03/2014 amounting to €55 million which will be covering a full range
of basic and detailed engineering study, material procurement,
construction, electric work and installation and commissioning.
Picture above is presented for only representative purposes
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STAR Refinery
• STAR Refinery will have 10 million tons /year crude oil refining capacity.
• Petkim signed a 20-year off-take agreement with STAR Rafineri A.Ş to offtake
270,000 tonnes mixed-xylene and 1,600,000 tonnes naphtha annually.
• Naphtha price will be set as the Platts’ FOB MED spot market price plus
US$ 6 margin per tonne and mixed-xylene price will be based on ICIS’s
Rotterdam Paraxylene Spot Price multiplied by 0.74.
• It is expected that PETKIM’s feedstock cost will be reduced US$ 30 per
tonne as a result of this agreement. The offtake pricing terms in the
agreement are in line with the market prices.
• Other than the logistics cost savings, as a result of the synergies
created by the refinery and the petrochemicals integration, there will
be significant cost benefits for Petkim including quality standardization
and stabilization, and the reduction in inventory costs.
• The aggregate investment amount will reach US$ 5.7bn.
• On May 30th 2014, US$ 3,290 million project finance portion of the STAR
Refinery investment has been signed with a number of 23 local and
international financial institutions including Export Credit Agencies (ECAs),
commercial banks and development banks.
• US$ 2,690 million of the project finance has a maturity of 18 years with 4 years
grace period, while the remaining US$ 600 million has a maturity of 15 years
with 4 years grace period.
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Naphtha
Ethylene
Propylene
Aromatics
Ethylene Plant
LDPE
(337.000 ton/year)
HDPE
(96.000ton/year)
MEG
(89.000ton/year)
VCM
PVC
(150.000ton/year)
PP
(144.000 ton/year)
Bag, greenhouse covers, film, cable, toys, pipes, bottles, hose,
packaging
Construction and water pipes, packaging film, toys, bottles,
soft drink crates, barrels
Polyster fiber, polyester film, antifreeze
Pipe, window shades, cable, bottles, building
materials, packaging film, floor tiles, serum bags
ACN
(90.000 ton/year)
Knitting yarn, ropes, tablecloths, napkins, doormats,
hoses, radiator pipes, fishing nets, brushes
Textile fibers, artificial wool, ABS resins (acrylonitrile
butadiene)
Benzene
(144.000 ton/year)
Toluen
(16.000 ton/year)
PA
(49.000 ton/year)
P-X
(92.000 ton/year)
PTA
(105.000 ton/year)
Detergent, solvents, explosives, pharmaceuticals,
cosmetics, parts of white goods
Polyester fiber, polyester resin, films, plasticizers,
synthetic chemicals
Polyester industry
LPG
(320.000 ton/year) C4
(140.000ton/year)
C5 Mixtures
(80.000 ton/year)
Appendix 1. Petrochemical Complex Flow Chart
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Appendix 2. PETKIM’s Ownership Structure
Petkim Stock Performance
Closing Price as of 30 September 2016 (TRY/Share) TL 4.55
Market Cap (TRY mn) TL 6,825
Free Float (%) 47,6
State Oil Company of Azerbaijan
Republic
SOCAR Turkey Energy
SOCAR Turkey
Petrochemicals
ISE Ticker: PETKM
Free Float : 43.7%
Petlim Port
87%
100%
51%
1.32%
43.7%
70%
SOCAR Turkey Yatırım A.Ş.
(RHAŞ 60%)
(MED 40%)
Refinery Holding
(RHAŞ)
100%
STAR Refinery
100%
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Goldman Sachs
Goldman Sachs 30%
We welcome your questions, comments and suggestions. Our corporate headquarters office address is:
Petkim Petrochemical Holding Corp. PO. Box.12
Aliağa, 35800 İzmir/ TURKEY
To contact us with respect to shareholding relations for individual and corporate investors, please call directly or send an e-mail to:
Also, please visit our web site at www.petkim.com.tr for further information and queries.
Semih ATALAY
SOCAR Turkey Investor Relations Manager
Direct: +90212 305 0142
Erdem ÜNLÜER
SOCAR Turkey Investor Relations Supervisor
Direct: +90212 305 0018
Mustafa Çağatay
Corporate Governance and IR Coordinator
Phone: +90 (232) 616 12 40 ext.2501
Email: [email protected]
Investor Relations
This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite
or otherwise acquire, any securities of Petkim Petrokimya Holding A.Ş. (the “Company”) or any member of its group nor should it or any part of it form the
basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group nor shall it
or any part of it form the basis of or be relied on in connection with any contract, investment decision or commitment whatsoever. This presentation has
been made to you solely for your information and background and is subject to amendment. This presentation (or any part of it) may not be reproduced or
redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional
advisers) or published in whole or in part for any purpose without the prior written consent of the Company.
Disclaimer