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 profit for Q1 2026 surged to TRY 3.7 billion, up from TRY 127 million in Q1 2025, supported by robust financial discipline and strong cash reserves.

• Maintained uninterrupted operations and high production despite volatile macro and geopolitical conditions, including disruptions around the Strait of Hormuz.

• 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, driven by higher utilization and strong product margins.

• Gross profit rose 25% year-on-year to TRY 21.6 billion; reported EBITDA was TRY 16.7 billion, with CCS EBITDA at TRY 11.8 billion.

• Net income for Q1 was TRY 3.7 billion after a TRY 6.6 billion tax expense; profit before tax more than tripled year-on-year to TRY 10.4 billion.

• Net debt to EBITDA at negative 1x, reflecting a strong net cash position and negative gearing ratio of -6.4%.

• Working capital improved to -9.1 billion TL by March 2026 due to effective cash cycle management.

Outlook and guidance

• Net refining margin guidance maintained at $6–$7 per barrel for 2026, despite Q1 margin of $9.7 per barrel exceeding the upper range.

• Production and sales guidance unchanged: ~29 million tons production and ~30 million tons sales expected for 2026, with capacity utilization expected between 95%–100%.

• Consolidated CapEx target for 2026 is $700 million, with a focus on sustainability and efficiency projects.

• Management expects continued market volatility and maintains a focus on risk management and hedging strategies.

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