What are the operating areas of Turcas Petrol A.Ş.? 

Turcas Petrol A.Ş. (“Turcas”) operates in liberalising Turkish Energy Market with its 86 years of deep experience and diversified portfolio. Turcas has an investment holding structure with participations in leading oil and energy companies.

Turcas has strategic partnerships in each of the businesses it operates. In fuel distribution business, Turcas has 30% share in Shell & Turcas Petrol A.Ş. JV whereas The Shell Company of Turkey Ltd. has 70% share.

In power generation business, Turcas has 30% share in RWE & Turcas South Power Generation JV whereas RWE has 70% share.

What are the expectations for Shell & Turcas Petrol A.Ş. for 2017?

Shell & Turcas Petrol A.Ş. (STAŞ) continues to be the market leader in gasoline and lubricants sales (25%) and #3 in White Products, which consists of the sum of Gasoline and Diesel sales, with a market share of 17% as of 2016 year end.  STAŞ has been the market leader in sales per station ratio (throughput), which is the key indicator of profitability in the sector.

STAŞ's network consists of 1.017 nationwide Shell-branded stations as of 2016 year end. As has been the case, STAŞ will continue to seek for new opportunities in order to grow its station network and hence further strengthen its market leader position.

In 2017, EBITDA of STAŞ is expected to reach TL 925 mln (vs TL 987 mln in 2016) with a sales volume of 5.900 ths m3 (vs 5.971 ths m3 in 2016). Net debt of STAŞ is expected to decline to TL 800 mln (2016: TL 1 bln).

What are the latest developments in RWE & Turcas Güney Elektrik Üretim A.Ş. (“RTG”)?

800 MW Denizli natural gas fired combined cycle power plant which has been jointly constructed by RWE (70%) and Turcas Elektrik Üretim A.Ş. (“TEÜAŞ”), (30%) is operational since June 2013.

The project cost is around 600 million Euro. In order to finance its share of 180 million Euro in the Project; (i) Turcas injected 30 million Euro as equity, (ii) 120 million Euro has been raised from Bayern LB and Portigon AG (former West LB) under ECA (Euler Hermes) coverage with 3+10 years tenor, (iii) 55 million USD has been raised from Industrial Development Bank of Turkey (TSKB) as the Commercial Facility with 3+7 years of tenor on a pro rota pari passu basis.

After the commercial operation of the Plant, these project finance loans are being serviced through the back to back Shareholder Loan repayments from the JV. Please note that majority of the financial liabilities shown in the consolidated financial statements of Turcas Petrol A.Ş. consist of these credits.

In accordance with the amendment agreement signed between TEÜAŞ and TSKB, Bayern LB and Portigon A.G. (Consortium Banks) at 1H16, maturities of above mentioned loans obtained from Consortium Banks for the financing of Denizli CCPP have been extended by 2 years. Therefore, maturity of the loan obtained from TSKB is extended to 2022 from 2020 previously. Meanwhile, maturity of the loan obtained from Bayern LB and Portigon A.G. is extended to 2025 from 2023 previously. As a result of these maturity extensions, there has been no increase in cost of credit. Therefore, Turcas has guaranteed a total of EUR 20 mln reduction in principal and interest repayments between 2016 and 2020.

In 2017, RTG’s EBITDA is expected to be realized at TL 25 mln (2016: TL 15 mln) with electricity sales of 3.100 GWh (2016: 3.227 GWh) and gas consumption of 600 mcm (2016: 575 mcm).

You have divested from STAR refinery in May 2014. What is the rationale behind this decision?

In view of the rising project cost lowering our estimated return from this project, we have decided to divest from STAR refinery project.

What are the latest developments in your Kuyucak geothermal power plant project?

18MW geothermal power plant project in Aydın Province, Kuyucak-Pamukören region, which is under construction and 92% owned by Turcas Kuyucak Jeotermal Elektrik Üretim A.Ş. (“TKJ”), is expected to start commercial operations in the fourth quarter of 2017.

On 1 March 2016, TKJ secured the financing of the project via project finance loan agreement signed with Türkiye Sınai Kalkınma Bankası A.Ş. amounting to EUR 15 mln and USD 40.5 mln in cash and TL 10 mln in non-cash with a maximum grace period of 30 months and a total maturity of 14 years. Total project cost amounts to USD 71.2 million (including financing costs) implying Debt/Equity ratio of 80%.

Till date, TKJ has drilled 6 successful production wells and 2 re-injection wells. TKJ is expected to generate average EBITDA of USD 9.5 Million per annum thanks to the feed-in tariff (FIT) mechanism (USc 10.5/kWh) for the first 10 years of operation and local manufacturing  support mechanism for the first 5 years of operation (an additional FIT of USc 1.3/kWh). TKJ financials are fully consolidated under Turcas Petrol financials. 

What is the “Dividend Distribution Policy” of Turcas?

The Board of Directors of Turcas takes into consideration the Company’s Articles of Association, relevant laws, legislation, market conditions, planned capex investments and their financing while deciding on the distribution of dividends.

How can we access your financial statements?

You can access our Financial Statements under Investor Relations menu, at our website.

How can we access “Annual Reports” of Turcas Petrol A.Ş.? 

You can access our annual reports under Annual Reports in the Investor Relations menu, at our website.

Does your Company have a “Corporate Governance Compliance Report and Disclosure Policy”?

You can access our Corporate Governance Compliance Report and Disclosure Policy in Corporate Governance Compliance Report section under the Investor Relations menu, at our website. 

How can we access your Investor Presentation?

Our Investor Presentation can be found under Investor Presentation & Fact Sheet at our website.