Petkim Petrokimya Holding Anonim Sirketi (PETKM) Q3 2024 earnings summary

Executive summary

• Weak product margins, planned and unplanned shutdowns, and high inflation led to underperformance in Q3 2024.

• Petkim's gross unit margin was $54/ton and capacity utilization rate was 58%.

• Net loss for Q3 2024 was ₺3.0 billion, while the nine-month net loss narrowed to ₺94.1 million from ₺9.6 billion year-over-year.

• Synergies with STAR Refinery were limited due to maintenance shutdowns.

• Petkim received two IR awards and a corporate governance award in 2024.

Financial highlights

• Q3 2024 sales: ₺17.2 billion, down 15% QoQ; nine-month revenue: ₺57.2 billion, down from ₺61.9 billion YoY.

• EBITDA: -₺573 million in Q3; gross loss for nine months: ₺675.7 million.

• Net loss: -₺3.0 billion in Q3; EPS: ₺1.05/share; nine-month EPS loss: ₺0.0503.

• Net debt/EBITDA: 9.2x, net debt position increased 13% QoQ.

• Cash position: ₺3.2 billion at period end, down 45% QoQ and from ₺5.5 billion at year-end.

Outlook and guidance

• Management continues OPEX optimizations to address inflation and currency pressures.

• STAR Refinery expected to resume normal operations after maintenance, supporting future synergies.