Ladies and gentlemen, thank you for standing by. I am Mina, your call operator. Welcome, and thank you for joining the Tüpraş conference call and live webcast to present and discuss the fourth quarter 2023 financial results. At this time, I would like to turn the conference over to Mr. Doğan Korkmaz, CFO, and Mr. Levent Bayar, Head of Investor Relations. Mr. Bayar, you may now proceed. Hi everyone. First of all, sorry about the delay as we had some issues with the uploading facilities. Good evening to all from Tüpraş headquarters in Istanbul, and welcome to our teleconference. I am Levent Bayar, head of investor relations. I am here with Doğan Korkmaz, CFO, and team members from Tüpraş investor relations and reporting departments. Over the next hour, we will first go over our operational and financial results for the fourth quarter of 2023 and the year of 2023. Then we will continue with the Q&A session. I'll draw your attention to our cautionary statement. During today's presentation, we will make forward-looking statements that refer to our estimates, plans, and expectations. Actual results and outcomes could differ materially. Please refer to our financial reports and material disclosures for more details. These documents are available on our website. In the next two slides, we will provide you with a brief summary of the key highlights regarding the year of 2023. Then we will go into detail for each subject on the following slides. Let's take a look at 2023 global market and company highlights. Brent crude prices experienced fluctuations due to macroeconomic uncertainties, OPEC+ policy choices, continued supply from non-OPEC producers, and escalating geopolitical tensions, which stood out as primary factors. Brent crude price reached a high of $98 per barrel in September before easing off and settling at around $78 per barrel at the end of the year. Cracks remained higher than historical averages. Mid distillates kept the high momentum with low inventories in Europe with the change in the trading routes after sanctions imposed on Russian products. Gasoline experienced a boost from the warmer season and improved demand dynamics. High-sulfur fuel oil gained support from OPEC+ cutback decisions. Tüpraş completed all essential maintenances in the first half of the year, leading to increased utilization rates in the latter half. This enabled us to capture the advantage of the robust crack margins. We concluded the year with sales exceeding 30 million tons, attributed to a surging domestic demand and enhanced performance from our trading activities. We had a $16 per barrel net refining margin in 2023, while EBITDA and net profit reached respectively to TRY 97.3 billion and TRY 53.6 billion. As you know, we covered this section in two main components: developments in global oil markets and developments in Turkish markets. Let's start with the top left box. Beginning with Saudi Arabia and Russia's strategic output cuts and riding on sustained high demand through the end of October, Brent crude prices maintained levels above the average. However, the influence of additional supplies from non-OPEC producers slowed down the potential price surge. OPEC+'s further production cuts in November only mildly lifted prices due to the usual seasonal decrease in demand. The year kicked off amidst heightened tensions in the Red Sea region, which were partially curtailed too with the new policies and security measures enforced by the United States and the European Union, leading to a renewed increase in Brent crude prices entering into January compared with the previous December. The geopolitical conjuncture also affected the trade routes, and the need for rerouting increased the cargo durations by 30 days. As a result, inventory levels dropped below those of the previous year, which in turn supported the crack margins, as you can see on the top right graph. Now, taking a look at the bottom row, Turkish markets. This year was marked by a synchronous rise in both prices and interest rates. Inflation soared to 64.77% on a year-over-year basis. In response to these inflationary pressures, the central bank increased interest rates by 35,000 basis points since the start of the year, bringing them to 42.5% in an effort to control the inflationary tide. Sales of automobiles and light vehicles climbed by 40%, which in turn positively influenced the demand in the gasoline market. Additionally, the demand for jet fuel has rebounded to pre-pandemic levels, driven by a significant 15% annual increase in the number of flights. Let's take a look at the cracks for the fourth quarter of 2023 in comparison to last year's and last past five years' average on this page. In the fourth quarter, diesel cracks averaged at $27.2 per barrel, which was lower due to the high rates of the previous year. Together with a period of seasonally weak demand and restart of several French refineries following strike-induced outages, the diesel crack narrowed on a quarter-on-quarter basis. Jet fuel cracks averaged at $27.9 per barrel in the fourth quarter, a decrease influenced by the comparably high average figures from the prior year. Jet fuel supply was increased as European refineries started to shift more from the diesel due to the stronger economics for aviation fuel. On the other hand, the increase in supply balanced out with higher commercial flights as European air traffic is catching up with the pre-pandemic levels. Gasoline cracks averaged at $12.2 per barrel in the fourth quarter, which was lower quarter-on-quarter with weaker demand year-on-year due to the switching into winter grade. High-sulfur fuel oil cracks averaged around -$18.6 per barrel in the fourth quarter, up by $14 per barrel, showing improvement year-on-year. OPEC's production cut decision played a significant role in supporting high-sulfur fuel oil cracks. As non-OPEC production increases, we see a lowered crack margin compared to the previous quarter. Overall, the shift by refineries to sweeter crude grades supported the HSFO crack margins throughout the year. In the first months of 2024, mid distillates were positively impacted by Red Sea conflicts as the rerouting caused an extra 30 days of cargo duration. Diesel cracks have reached to $36 per barrel levels in February and averaged at $30.6 per barrel. Jet grades stayed seasonally pressured compared to diesel, cracks ending February at $25.9 per barrel. Gasoline cracks were at $18.9 per barrel, supported by Red Sea conflicts, intensified outages in the US, and strong Asian demand. High-sulfur fuel oil cracks improved to -$14.5 per barrel, kept tight balance with Red Sea diversions. Moving over to the crude price differentials. Over the year of 2023, with the OPEC+ cut decisions, heavy crude differentials continued to narrow in the fourth quarter as a result of lower crude supply after OPEC+'s November cut decision. In terms of our own slate, the impact has been somewhat muted with the help of wider differentials offered by Basra Heavy in this quarter. Currently, the forecast for heavy crude oil price differentials has been influenced by the conflicts in the Red Sea region. This has led to more significant differentials at the start of 2024. While this trend might persist, our major maintenance in the RUP means we won't be able to capture these margins as we have in the previous years. It's worth noting that with the normalization in the region, there is a potential for narrowing down the differentials. Yet, the overall market performance will be shaped by the geopolitical landscape, potential further decisions on reducing oil production, increased supply from non-OPEC countries, and demand dynamics. Now, let's take a look at Tüpraş operations, starting with the production volume. On the left side, you'll find details on our production quantities. In the fourth quarter of 2023, we achieved a production output of 7 million tons, bringing the annual total to 25 million tons. The completion of major maintenance in the first half of the year paved the way for enhanced production in the second half. For the total crude distillation, we reached a capacity utilization rate of 89.5%. For processing other feedstock, the utilization rate stood at 8%, culminating in a system-wide rate of 97% during the fourth quarter of 2023. As a result, the overall annual utilization rate was brought to 77% for crude distillation and 10% for other feedstock, with a combined total utilization of 87%. Moving over to the sales. Let's start with the chart on the left-hand side. In the fourth quarter, our domestic sales and international sales stood at 6.1 million and 2 million tons, respectively, summing up to 8.1 million tons in total. Our domestic sales were down by 3% year-over-year. 13% contraction in domestic diesel sales and 8% weaker bitumen sales were more than compensated by strong performance in gasoline and jet fuel that increased by 16% and 15% year-over-year, respectively. Now, let's move to the electricity operations. This slide summarizes the electricity production and sales activities of ENTEK and Tüpraş in the year of 2023. In 2023, 59% of the electricity generated was from hydropower, 18% was from wind power, and the rest was CCGT and solar. Out of 1,049 GWh of zero-carbon electricity produced, around 34% was sold to feed-in tariff, which is $73 per MWh. The rest was sold to spot market. ENTEK received pre-license rights for installations up to 653 MW capacity with 11 wind power and storage stations. Kınık wind power plant with 50 MW was also taken over within the fourth quarter. Now, let's move to the financials. Now, let's take a look at the P&L items in detail for the year of 2023. According to the announcements from the Capital Markets Board, all corporations are required to apply inflation accounting methods for the year 2023. Consequently, financial statements from 2022 have been restated using inflation accounting principles to maintain compatibility. The financial figures for 2022 have been revised in line with the principles of inflation accounting. Additionally, the numbers have been scaled up by a factor of 1.65 in accordance with 2023 CPI in order to reflect the purchasing power of 2023. With this adjustment, financial figures ended up with year-on-year decline in 2023. Revenues came in at TRY 687 billion, equivalent of almost $29 billion in 2023 full year. Cost of goods sold stood at TRY 577 billion, affected by decrease in Brent prices and lower energy costs. Natural gas tariff price for Tüpraş in 2023 is 12% lower than the last year's tariff. Gross profit was TRY 110 billion with lower cracks and lower energy costs. Mismatch between Turkish lira depreciation and inflation rate has also ended up with negative impact on our gross profit. Operational expenses were predominantly affected by higher administrative expenses, mostly due to increase in personnel expenses. Loss from other operations was 20% lower than last year. TRY 1 billion income was recorded from equity investments, coming dominantly from OPEC. In 2023, TRY 5.2 billion net financial expenses decreased from TRY 13.5 billion as was an outcome of an increase in net cash position. The monetary loss of TRY 12 billion in 2023 primarily stems from adjustments for inflation on retained earnings that have been carried over from 2022. This impact is lessened by the positive influence of cash holdings. As a conclusion of this, we have recorded TRY 57.9 billion of profit before tax in 2023. Below PBT, we have recorded TRY 3.9 billion tax expense, which was lower with higher reserve tax account year-on-year. As a result, we have recorded TRY 53.6 billion of net income in the fourth quarter of 2023. Now, for the EBITDA, our EBITDA CCS materialized at TRY 94 billion. Year-over-year decrease was mainly driven by inflation outpacing the depreciation of Turkish lira. While our hedging methodology helped us to mitigate the Brent pricing risk for approximately two-thirds of our crude oil inventory, we have recorded over TRY 3 billion positive inventory effect, mainly due to depreciation in Turkish lira. Consequently, our reported EBITDA materialized at TRY 97 billion. Now, let's take a look at the profit before tax bridge. As you can see from the waterfall chart, TRY 4.3 billion negative impact came from crack margins. Despite crack margins still performing above the average, this reflects a normalization when compared to the higher margins of the previous year. Energy costs were lower with lower natural gas tariffs, and total positive impact from here was TRY 2.2 billion. Monetary and inflationary effects created a negative TRY 10 billion, mainly due to recorded monetary loss with the inflationary-adjusted retained earnings. The negative impact of monetary loss is partially mitigated with the increase in interest gains. All in all, 2023 profit before taxes materialized at TRY 57.8 billion. Now, let's take a look at the financial highlights. In 2023, we have recorded TRY 97.3 billion of EBITDA, decreasing from TRY 102.9 billion EBITDA in 2022 after inflationary accounting adjustments kept strong with high performance. Accordingly, we recorded TRY 53.6 billion of net profit in 2023. We maintained our net cash position with strong EBITDA generation and disciplined working capital management, and with ongoing delivering, our net debt to EBITDA materialized at negative 0.6 times as of the end of 2023. With strong cash generation, our current ratios stood at 1.3 times. On the bottom right panel, we have net return on equity, which was at 28% as of the end of 2023 and 43% in 2022 after inflationary accounting adjustments. Please be aware, previous year's ratios are unadjusted. Let's continue with the details of our balance sheet. Cash and cash equivalents and financial liabilities at the end of 2023 was TRY 98 billion and TRY 35 billion, respectively. We ended the year with TRY 63.7 billion of net cash, mainly with the help of strong operational cash generation. On the working capital side, with the help of the measures that we have been implementing and with lower volatility in prices, our working capital requirement turned to negative TRY 13.1 billion as of the end of the fourth quarter. We ended the quarter with TRY 98 billion cash position, more than double of the outstanding debt. Now, looking at the maintenance calendar for 2023, we operated with 97% utilization rate in the fourth quarter as major maintenances were completed within the first half of the year. We have kicked off our maintenance in RUP on the 1st of March, which was set to last for 92 days, and there is no change in relation to our guidance of $196 million EBITDA loss. On this side, we have our expectations for 2024. Now, looking into the details, we expect to generate around $14 per barrel Tüpraş crack margin. Since net refining margin is a metric that is exposed to inflation, in order to provide a more stable reference of performance, we decided to go with Tüpraş crack margin from now on. Regarding production and sales figures, we expect approximately 26 million tons of production and approximately 30 million tons of sales. We expect capacity utilization to be within a range of 85%-90%, mainly due to plant maintenance shared in detail in our previous slide. Our consolidated CAPEX target for 2024 is $500 million. On this slide, we would like to sum up key figures for the last year and compare them with our 2023 guidance. We had a net refining margin of $16 per barrel in 2023, which is above our full-year guidance range, $14-15 per barrel, largely driven by robust crack performance. Capacity utilization was at 87.5% in 2023, which is in line with our guidance range of 85%-90%. In 2023, we have produced 24.9 million tons and sold 29.5 million tons and came in parallel with our guidance. We have spent $354 million of CAPEX in 2023, which is slightly above our $350 million target. This slide concludes our presentation, and we can now proceed with the Q&A session. The first question is from the line of Anna Kishmariya with UBS. Please go ahead. Good evening. Hope you can hear me. I have several questions, to be honest. Thank you for the presentation. Could you please and thank you very much for providing the numbers pre-inflation accounting, but could you please give a sense of what would CCS EBITDA look like for full year 2023 if excluding this inflation impact? Also, you again had a very big working capital release, even though I think after third quarter, we were expecting some reversal of release. Should we expect this happening early this year or whether it's new normality and this will stay? And two final questions. One, on CAPEX, what is driving such an increase in CAPEX estimates year-on-year? And finally, on the dividends, should we expect it to be split in 2 halves or whether it will be single payment as before last year? Thank you very much. Let me take the first one, Anna. We have actually provided 2 slides on the inflation unadjusted figures at the end of the appendix part sorry, at the beginning of the appendix part. The growth that you are going to observe in EBITDA would be similar for EBITDA CCS as well in terms of calculation. Understood. Thank you. Hi. It's Doğan here. Let me move on with the other questions of yours. In terms of working capital requirement, yeah, I mean, some kind of normalization should be expected, although the business dynamics hasn't changed much since the previous quarter. Going forward, with especially the effect of increased days during voyages to avoid stress, I would expect a bit of normalization in working capital getting closer to zero levels. But other than that, there hasn't been a major correction in any items under the working capital requirement. As to the CAPEX question, it went up to $500 million for this year, 100 of which is going to ship purchases of our subsidiary DİTAŞ. So that's the main difference to what we have achieved this year, together with a couple of investments in electricity, new business line in our portfolio. As to dividends, at the moment, obviously, we're announcing this amount. Anything on the top of that would really depend on the market conditions in Turkey, together with the sector-specific performance in the rest of the year. If anything is on the positive side, we would definitely consider a second distribution as we have done last year. Thank you very much. The line cut during your answer for CapEx. Can you please repeat why was the difference $100 million? What does it indicate to you? Sure. Sure. Sure. $100 million comes from a tanker purchase of our subsidiary DİTAŞ. Thank you very much. Thank you. The next question comes from the line of Gustavo Campos with Jefferies. Please go ahead. Hello. Congratulations on the results. Thank you very much for taking my questions. Just wanted to quickly check in on the refinancing of the upcoming bond. How are you planning to address this maturity? How are you planning to are you planning to potentially refinance it on the Eurobond market or just pay it off with internal generation and further reduce that stack? If you could provide some color on that, that would be great. Thank you. Sure. Thank you for your question. We will be definitely following the market in terms of the pricing and the success of other Eurobonds being issued from corporations in Turkey and in emerging markets. Having this much cash in hand, we will definitely try to avoid negative carry as much as we can. Therefore, we decided to use the time in between and not to issue a Eurobond until today. Going forward, if you see a window of opportunity in the market in the first half, we might squeeze a transaction in between. But realistically, I would expect it to be closer to the maturity of the outstanding bond, if not after that, depending on the overall interest rate environment, I must say, following on Fed's decisions and comments. I would definitely like to keep that liquidity in the market when it comes to Eurobonds, but we're not in a rush and have that negative carry, I mean, early just to keep that liquidity out in the market. Therefore, if needed, we might pay it back with the cash in hand and then, waiting on the interest rate developments in the market, make a new issue following the maturity either at the end of this year or at the beginning of next year. So it pretty much depends on the interest rate environment at the moment. Okay. Thank you very much. So just to clarify, it would be most likely to be in the second half of this year or beginning of next year, right? And what kind of? I'm sorry if I misunderstood because the connection kind of glitched for a second. And what kind of maturity and what kind of size would you be considering, just refinancing the current amount or potentially upsizing? Thanks again for taking time. Okay. Obviously, when it comes to eurobonds, it's part of our long-term financing arrangement. And within that portfolio, we would definitely like to match it with our CAPEX. Realistically, CAPEX maturities in refining would be between five to seven years. The outstanding bond is for that very reason, was for seven years. But it would, again, depend on the market conditions as well. In ideal conditions, we would definitely try to go for seven years, but having a benchmark at five years maturity would definitely be okay as well. All right. That's great to hear. Thank you very much. I appreciate it. Thank you. The next question comes from the line of Ildar Khaziev with HSBC. Please go ahead. Yes. Hi. Thank you very much. Just a quick technical question. So I've seen two numbers for net refining margin in 2023. I think one was $16 per barrel. That's page 20 of your presentation. And then it's, I think, 12.7 on page 23. Is this difference due to the impact of the inflation accounting? And if yes, what I mean, I'm surprised because in dollar terms, it should be the same, no? Or there's something else? In terms of 2023's financial performance, everything is reindexed with the inflationary coefficient. So that's why it's going up in dollar terms. It's not only consisting of cracks or differentials. You need to also factor in the other OPEX, depreciation, and costs, which are attributable to indexing. Thank you. Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you. Thank you once again for joining us this evening for the final quarterly call of 2023. Before we conclude, I'd like to share a few closing remarks. Operationally, it has been another remarkable quarter marked by record high profitability and a robust cash generation. During the first half of the year, we have completed most of our maintenance activities, allowing us to close the second half with higher capacity utilization. Peak utilization helped us capture the most out of the strong crack environment and deliver high profit. Looking ahead into 2024, the first item in our agenda is routine maintenance, which we have started on time and hope for a safe and swift completion. 2024 will also be a year where we will continue to take ambitious steps in our strategic transition plan. We are currently in planning phase of several licenses granted to ENTEK in 2023. We will also share with you our first integrated annual report, which will include several new disclosures as well as detailing developments on the pledges we have shared so far. I appreciate your time and trust in our company. Thank you all for listening to us this evening.