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

Executive summary

• 4Q24 was the weakest quarter in recent years, with compressed product margins, persistent inflation, and a net loss of TRY 6.79 billion, reversing a net profit of TRY 10.70 billion in 2023 due to operational losses and impairment charges.

• Export value reached $449 million, making the company the export champion of the Aegean Region.

• Operational synergies with STAR Refinery contributed $4 million net income in 4Q24.

• Significant impairment losses were recorded, including TRY 4.65 billion for port operations and a total of $134 million in year-end financials.

• The master plan for new process units and modernization was officially announced, with feasibility studies completed.

Financial highlights

• 4Q24 sales were ₺16.6 billion, down 9% sequentially; full-year revenue was TRY 77.38 billion, down 11% year-over-year.

• Net loss was ₺6.7 billion (TRY 6.79 billion), a 109% increase in losses quarter-over-quarter; EPS was -2.05 TL.

• Cash and cash equivalents rose to ₺8.2 billion (TRY 8.17 billion); net debt stood at ₺35.5 billion.

• Gross profit margin fell to -3% from -7% in the previous quarter; gross loss for 2024 was TRY 1.24 billion.

• Inventory loss of $2 million was recorded in 4Q24.

Outlook and guidance

• The master plan includes new ethylene, PP, and HDPE/LLDPE plants, with final investment decision expected in 2026; further technical and commercial analyses are planned.

• Decarbonization and circular economy initiatives target a 40% reduction in Scope 1 & 2 emissions by 2035 and carbon neutrality by 2050.

• Despite current liabilities exceeding current assets by TRY 13.52 billion, management expects no liquidity issues due to strong equity and access to financing.