Petkim Petrokimya Holding Anonim Sirketi (PETKM) Q4 2024 earnings summary

Executive summary

• Petkim reported a net loss of 6.8 billion TL for 2024, reversing a net profit of 10.7 billion TL in 2023, mainly due to lower sales and higher costs in a high-inflation environment.

• Petkim achieved $449 million in exports in 2024, maintaining its position as the Aegean region's export leader.

• The board approved a major investment master plan for new production units and modernization, with feasibility studies completed in 2024.

• STAR Rafineri completed its first major turnaround, increasing production capacity and extending maintenance intervals.

• The company continued to apply inflation accounting (TMS 29) due to Turkey's high inflation, significantly impacting reported results.

Financial highlights

• Revenue was 77.4 billion TL in 2024, down 11% year-over-year, with both domestic and international sales falling.

• Net loss for Q4 2024 was ₺6.7 billion, a 109% increase in losses compared to the previous quarter.

• EBITDA was ₺738 million in Q4 2024, up 21% quarter-over-quarter, with a margin of 4%.

• Gross margin remained negative at -1.2 billion TL, reflecting cost pressures.

• Cash position rose to ₺8.2 billion at year-end, up 142% sequentially.

Outlook and guidance

• Petkim is advancing a master plan for new ethylene, polypropylene, and polyethylene units, with final investment decision targeted for 2026.

• Pre-FEED and FEED studies are underway, pending regulatory and board approvals.

• Management is focused on improving operational efficiency and profitability through both short- and long-term initiatives.

• STAR Rafineri expected to provide stable dividends in the medium term.

• Sustainability strategy aims for 40% carbon reduction by 2035 and carbon neutrality by 2050 (Scope 1 & 2).