Q2 2026 Turkiye Petrol Rafinerileri AS Earnings Call Transcript
Key Points
- Tupras-Turkiye Petrol Rafinerileri AS (IST:TUPRS) delivered a robust financial performance in Q2 2026, with EBITDA increasing by 180% year-on-year to TRY55 billion, driven by strong refining margins and high capacity utilization.
- The company achieved a record-high white product yield of 83% for the second quarter, the highest since 2017, and maintained a high capacity utilization rate of 96%, demonstrating operational resilience and flexibility.
- Management raised its full-year 2026 net refining margin guidance to $13-$15 per barrel from $6-$7, reflecting a strong refining environment and the company's ability to capture value through effective execution.
- Tupras-Turkiye Petrol Rafinerileri AS (IST:TUPRS) ended the quarter with a strong net cash position of TRY130 billion (around $2.8 billion), and generated $2.3 billion in free cash flow in the first half, providing financial flexibility and supporting future shareholder returns.
- The company's diversified crude procurement strategy, sourcing from 14 countries with 24 different grades, including new types and cargoes from the US SPR, helped mitigate the impact of volatile crude differentials and geopolitical risks.
- The company faces ongoing uncertainty from geopolitical tensions, particularly in the Middle East and Russia, which could lead to renewed volatility in crude differentials and put upward pressure on costs, especially from September onwards.
- Tupras-Turkiye Petrol Rafinerileri AS (IST:TUPRS) expects a gradual normalization of product market conditions from August onward, which could lead to softer crack margins in the second half of the year.
- The company's working capital balance is at an unusually negative level, which management does not view as sustainable and expects to gradually normalize, potentially impacting cash flow in the coming periods.
- The electricity generation business saw a decline in EBITDA due to a softer pricing environment, despite higher production volumes, although an improvement is expected in the second half.
- The company's investment in four new tanker ships, totaling around $400 million, represents a significant capital commitment, with deliveries not expected until 2029, which could tie up capital and increase financial exposure to the shipping market.
Ladies and gentlemen, thank you for standing by. I'm Paulina, your Chorus Call operator. Welcome and thank you for joining the two-part conference call and live webcast to present and discuss the second-quarter 2026 financial results.
At this time, I would like to turn the conference over to Mr. Gokhan Dizemen, CFO; and Ms. Gulsen Ayaz, Investor Relations and Enterprise Risk Executive Director. Ms. Ayaz, you may now proceed.
Hello, everyone. Good evening from Tupras quarters in Istanbul, and welcome to our teleconference.
Thank you for being with us today. I'm Gulsen Ayaz. As some of you already know, I have recently joined Associate Investor Relations and Enterprise Trust Executive.
I'm here with Gokhan Dizemen, CFO, and my colleagues from Tupras International Reporting.
For the next hour today, we will review the second quarter industry backdrop and discuss our operational and financial performance, followed by a Q&A
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