Türkiye Petrol Rafinerileri (TUPRS) Q1 2026 earnings summary

Executive summary

• Achieved 95% capacity utilization in Q1 2026, the highest first-quarter level since 2017, with record production of 6.8 million tons and sales up 15% year-on-year to 7.4 million tons, driven by strong domestic demand.

• Net income for Q1 2026 surged to TRY 3.7 billion, up from TRY 127 million in Q1 2025, supported by robust financial discipline and liquidity.

• Navigated significant global disruptions, particularly around the Strait of Hormuz, impacting oil flows and tightening product markets.

• Strategic transition plan focuses on sustainable refining, zero-carbon electricity, green hydrogen, and biofuels.

• Distributed TRY 33 billion in cash dividends in two installments, with the first paid in March 2026 and the second scheduled for September 2026.

Financial highlights

• Revenues reached TRY 258.3 billion ($5.8 billion), up 24% year-on-year, with gross profit at TRY 21.6 billion and EBITDA at TRY 16.7 billion.

• Profit before tax was TRY 10.4 billion; net profit margin for Q1 2026 was 1.4%.

• Net debt-to-EBITDA at -1x; ended quarter with TRY 74.7 billion net cash and a negative gearing ratio of -6.4%.

• Dividend payout ratio maintained at ~80%, with a projected $6 billion in dividends for 2025–2035.

• Total assets grew to TRY 704.7 billion as of March 2026.

Outlook and guidance

• Expect solid operating environment in Q2 2026, with full impact of recent market trends to be more visible.

• Maintain net refining margin guidance at $6–$7 per barrel; production and sales targets unchanged at ~29 million and ~30 million tons, respectively.

• Capacity utilization expected between 95%-100%; consolidated CapEx target for 2026 is $700 million.

• Strategic plan targets ROACE >25%, net debt/EBITDA <2.0x, and capex/EBITDA <0.5x through 2035.

• Management expects continued volatility in commodity and currency markets and maintains a focus on risk management and hedging strategies.