Petkim Petrokimya Holding Anonim Sirketi (PETKM) Q2 2024 earnings summary

Executive summary

• Achieved ₺1.8bn net profit in Q2 2024, up 97% quarter-over-quarter, with ₺18.7bn in sales and ₺698mn EBITDA, reflecting strong operational performance despite high feedstock costs.

• Petkim reported a net profit of ₺2.7bn for H1 2024, reversing a net loss of ₺5.8bn in H1 2023.

• Recognized as the top exporter in both overall and chemical categories by Ege Exporters Association for 2023.

• STAR Refinery contributed $31mn in equity income and maintained robust operations ahead of planned maintenance.

• Included in multiple BIST Participation Indices, enhancing market visibility.

Financial highlights

• Net sales rose 4% sequentially to ₺18.7bn in Q2 2024; H1 2024 revenue was ₺36.7bn, stable year-over-year.

• Net profit surged 97% quarter-over-quarter to ₺1.8bn in Q2 2024; H1 2024 net profit was ₺2.7bn.

• EBITDA increased 244% to ₺698mn in Q2 2024; gross profit improved to ₺456mn in H1 2024.

• Net debt stood at ₺31.9bn as of June 2024; net debt/EBITDA ratio improved to 6.4x.

• Cash position improved by 16% to ₺5.3bn at period end; current ratio at 0.7x.

Outlook and guidance

• Management expects continued margin pressure from high naphtha costs and weak demand but aims to offset with product mix optimization and operational efficiencies.

• STAR Refinery anticipated to remain a stable dividend contributor in the medium term.