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

Executive summary

• 4Q24 marked the weakest quarter in recent years due to compressed product margins and persistent inflationary pressures impacting profitability.

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

• Operational synergies with STAR Refinery continued, contributing $4 million net income in 4Q24.

• A $134 million impairment loss was recorded in year-end financials.

• The master plan for new process units and modernization was officially announced.

Financial highlights

• 4Q24 sales were ₺16.6 billion, down 9% sequentially; EBITDA was ₺0.7 billion with a 4% margin.

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

• Cash position rose to ₺8.2 billion, up 142% sequentially; net debt stood at ₺35.5 billion.

• Gross profit margin fell to -3% from -7% in the previous quarter.

• 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.

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