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

Executive summary

• Achieved solid performance in 2Q24, driven by high co-product prices despite elevated raw material costs and a strong Turkish lira negatively impacting financials.

• Interim consolidated financial statements for the six months ended June 30, 2024, were reviewed and found to present fairly in all material respects in accordance with Turkish Financial Reporting Standards.

• Included in multiple BIST Participation Indices, reflecting improved market recognition.

• STAR Refinery contributed robustly, with USD31mn net income from equity pick-up.

• The group operates in petrochemicals and port segments, with a workforce of 2,398 as of June 30, 2024.

Financial highlights

• EBITDA reached ₺698mn, up 244% quarter-over-quarter, with a 4% margin.

• Net income was ₺1.8bn in 2Q24, up 97% QoQ; net profit for H1 2024 was ₺2.64bn, a turnaround from a ₺5.88bn loss last year.

• Revenue for January–June 2024 was ₺36.67bn, nearly flat year-over-year.

• Gross profit margin improved from -1% to 3% sequentially; gross profit reached ₺456mn, compared to a gross loss of ₺2.30bn YoY.

• Cash and cash equivalents increased to ₺5.33bn from ₺5.04bn at year-end.

Outlook and guidance

• OPEX optimizations are mitigating currency headwinds.

• Continued focus on efficiency and volume improvements to support profitability.

• STAR Refinery expected to remain a stable dividend payer over the medium term.

• The group expects to recover deferred tax assets related to investment incentives within 8–10 years.

• No significant post-balance sheet events were reported.