Türkiye Petrol Rafinerileri (TUPRS) Q2 2026 earnings summary

Executive summary

• Delivered robust operational and financial performance in Q2 and H1 2026, with high capacity utilization and strong product yields, driven by favorable market conditions.

• Net profit surged year-on-year, reaching TRY 50.3 billion in H1 2026, with EBITDA up to TRY 67.9 billion and free cash flow more than covering dividends and CapEx.

• Maintained a strong cash position and financial flexibility, supporting ongoing operations and future shareholder returns.

• White product yield reached 83% and capacity utilization 96% in Q2, the highest since 2017.

• The group operates primarily in refining and electricity, with refining as the dominant segment.

Financial highlights

• Net sales increased by up to 60% year-on-year in Q2 2026, driven by stronger crack margins and higher sales volumes.

• Operating profit rose nearly fourfold year-on-year to TRY 59.0 billion; net profit reached TRY 50.3 billion; EBITDA for H1 2026 was TRY 67.9 billion.

• Gross margin improved to 12.7% for H1 2026; earnings per share rose to TRY 25.87.

• Cash and cash equivalents increased to TRY 195.8 billion as of June 30, 2026; net financial liabilities turned negative, with a net cash position of TRY 102.2 billion.

• Net debt/EBITDA ratio turned negative, reflecting a net cash position.

Outlook and guidance

• Raised full-year net refining margin guidance to $13–15 per barrel, up from $6–7, reflecting improved market conditions and strong year-to-date performance.

• Annual production expected at ~29 million tonnes and sales at ~30 million tonnes; capacity utilization forecasted at 95–100% for the year.

• Production, sales, and CapEx guidance unchanged; consolidated CAPEX guidance maintained at ~$700 million.

• Routine maintenance scheduled for 2026; deferred tax assets from investment incentives expected to be recovered within five years.

• The company expects to benefit from a reduced corporate tax rate (12.5%) for manufacturing income starting in 2027.