Petkim Petrokimya Holding Anonim Sirketi (PETKM) Q4 2025 earnings summary

Executive summary

• Operational efficiency and financial resilience were maintained despite challenging market conditions, with a $600mn impact from management initiatives in debt and cost optimization.

• Reported a net loss of 10,259,752 TL for 2025, compared to a net loss of 8,892,542 TL in 2024, reflecting continued operational challenges in a high-inflation environment.

• STAR Refinery delivered strong operational performance, contributing TRY 1.7bn net profit and achieving a record 123% capacity utilization in 2025.

• Inflation accounting adjustments had a significant negative impact, with a TRY 9bn reduction in net profit for the year.

• Published TSRS-compliant sustainability and integrated annual reports for 2025.

Financial highlights

• Net sales for 2025 were TRY 89.1bn, down 12% year-over-year; net loss widened to TRY 10.3bn from TRY 8.9bn.

• EBITDA for 2025 was negative TRY 2.9bn, a 67% improvement from the previous year but still negative.

• Q4 2025 net sales were TRY 22.5bn, down 3% quarter-on-quarter; net loss for the quarter was TRY 5.3bn, a 314% increase quarter-on-quarter.

• Cash position at year-end was TRY 4.3bn, down 57% quarter-on-quarter.

• Net financial debt stood at TRY 46.5bn at year-end, up 12% quarter-on-quarter.

Outlook and guidance

• Cost and debt optimization initiatives are expected to continue delivering savings into 2026.

• Master Plan investment decisions for new ethylene, PP, and HDPE/LLDPE plants targeted for 2026, with feasibility and pre-engineering studies ongoing.

• Despite net losses and liquidity pressure, management expects to meet obligations due to strong equity and credit access.