Interim report
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CONVENIENCE TRANSLATION INTO ENGLISH OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (ORIGINALLY ISSUED IN TURKISH) TÜRKİYE PETROL RAFİNERİLERİ A.Ş. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY - 31 MARCH 2025
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. TABLE OF CONTENTS PAGE INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION…………………....1 INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME…………………………………………………………….2 INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY…………………… 3 INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW……….……..……………….. 4 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION…………………………………………………………………………………5 - 44 NOTE 1 ORGANIZATION OF THE GROUP AND NATURE OF OPERATIONS……………………………......5-6 NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL INFORMATION………………………………………..…………………………………..7-12 NOTE 3 BUSINESS COMBINATIONS……………………………………………………………………......… 12-13 NOTE 4 SEGMENT REPORTING…...…………………………………………………………………………....13-15 NOTE 5 CASH AND CASH EQUIVALENTS………………………………………………………………….....15-16 NOTE 6 FINANCIAL INVESTMENTS……………………………………………………………………………....16 NOTE 7 FINANCIAL LIABILITIES……………………………………………………………………………... 16-19 NOTE 8 TRADE RECEIVABLES AND PAYABLES…………………………………………………………….… 19 NOTE 9 INVENTORIES…………………………………………………………………………………………....... 20 NOTE 10 INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD………………………………….........20 NOTE 11 PROPERTY, PLANT AND EQUIPMENT……………………………………………………………......... 21 NOTE 12 INTANGIBLE ASSETS…………………………………………………………………………………...... 22 NOTE 13 PREPAID EXPENSES……………………………………………………………………………………… 22 NOTE 14 OTHER ASSETS AND LIABILITIES…………………………………………………………………....... 23 NOTE 15 PROVISIONS……………………………………………………………………………………………….. 24 NOTE 16 LIABILITIES FOR EMPLOYEE BENEFITS……………………………………………………………… 24 NOTE 17 OTHER RECEIVABLES AND PAYABLES……………………………………………………………… 24 NOTE 18 DERIVATIVE INSTRUMENTS………………………………………………………………………........ 25 NOTE 19 COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES………………………………...26-27 NOTE 20 EQUITY…………………………………………………………………………………………………..27-29 NOTE 21 REVENUE AND COST OF SALES………………………………………………………………………… 29 NOTE 22 EXPENSES BY NATURE………………………………………………………………………………….. 30 NOTE 23 OTHER OPERATING INCOME/(EXPENSES)……………………………………………………………. 30 NOTE 24 INCOME FROM INVESTMENT ACTIVITIES…………………………………………………………… 30 NOTE 25 FINANCIAL INCOME/(EXPENSES)…………………………………………………………………........ 31 NOTE 26 MONETARY GAIN/LOSS………….…………………………………………………………………........ 31 NOTE 27 TAX ASSETS AND LIABILITIES…………………………………………………………………….... 31-33 NOTE 28 EARNINGS PER SHARE………..…………………………………………………………………………. 33 NOTE 29 RELATED PARTY TRANSACTIONS……………………………………………………………….….34-36 NOTE 30 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT…………………………... 36-43 NOTE 31 ADDITIONAL INFORMATION TO THE STATEMENT OF CASH FLOWS………..….………………..44 NOTE 32 SUBSEQUENT EVENTS…………………………………………………………………………………....44
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 1 Unaudited Audited ASSETS Notes 31 March 2025 31 December 2024 Current assets 179,148,864 204,267,072 Cash and cash equivalents 5 46,670,970 80,934,206 Financial investments 6 26 26 Trade receivables 8 44,435,651 40,802,182 Due from related parties 8, 29 8,680,454 9,774,400 Trade receivables from third parties 35,755,197 31,027,782 Other receivables 17 383,935 209,810 Other receivables from third parties 383,935 209,810 Derivative instruments 18 3,853,659 1,617,019 Inventories 9 66,045,417 66,343,403 Prepaid expenses 13 1,857,184 1,948,271 Other current assets 14 15,902,022 12,412,155 Non-current assets 296,751,257 295,559,287 Financial investments 703,419 708,072 Investments accounted for using the equity method 10 13,689,929 14,366,881 Property, plant and equipment 11 248,876,438 248,919,092 Right of use asset 1,035,128 989,410 Intangible assets 7,734,064 6,702,678 Goodwill 3,418 3,418 Other intangible assets 12 7,730,646 6,699,260 Derivative instruments 18 73,972 52,183 Prepaid expenses 13 5,612,173 4,401,404 Deferred tax assets 27 992,291 978,525 Other non-current assets 14 18,033,843 18,441,042 Total assets 475,900,121 499,826,359 LIABILITIES Current liabilities 165,536,869 163,739,016 Short-term financial liabilities 7 4,648,972 4,149,149 Current portion of long term financial liabilities 7 5,196,919 5,815,885 Trade payables 8 90,818,736 114,333,873 Due to related parties 8, 29 1,037,177 1,331,773 Trade payables, third parties 89,781,559 113,002,100 Liabilities for employee benefits 16 1,559,863 1,202,284 Other payables 17 21,720,730 662,416 Due to related parties 17, 29 7,614,389 449,222 Other payables to third parties 14,106,341 213,194 Derivative instruments 18 4,732,393 3,124,041 Deferred income 350,260 413,872 Current income tax liabilities 27 22,922 897,012 Short-term provisions 15 3,771,478 2,544,274 Short-term provisions for employee benefits 618,433 128,812 Other provisions 3,153,045 2,415,462 Other current liabilities 14 32,714,596 30,596,210 Non-current liabilities 23,854,204 21,034,532 Long Term Barrowings 7 11,228,926 10,934,427 Long-term provisions 15 1,830,858 1,832,185 Long-term provisions for employee benefits 1,830,858 1,832,185 Deferred income - 42,041 Derivative Instruments 18 447,682 492,716 Deferred Tax Liability 27 10,332,133 7,718,564 Other Long Term Liabilities 14,605 14,599 Total liabilities 189,391,073 184,773,548 Equity 286,509,048 315,052,811 Share capital 20 1,926,796 1,926,796 Adjustment to share capital 20 40,260,071 40,260,071 Accumulated other comprehensive income/(expense) not to be reclassified to profit or loss 27,729,790 27,710,321 Gains/ losses on revaluation and remeasurement 26,987,662 26,987,662 Gain on revaluation of properties 11 27,201,479 27,201,479 Actuarial gain/(loss) arising from defined benefit plans (213,817) (213,817) Share of other comprehensive income of investments accounted for using equity method that will not be reclassified to profit or loss 742,128 722,659 Accumulated other comprehensive income/(expense) to be reclassified to profit or loss 1,578,014 993,463 Currency translation differences (220,546) (207,592) Hedging gains/(losses) (729,771) (1,134,240) Cash flow hedge gains/(losses) (729,771) (1,134,240) Share of other comprehensive income of investments accounted for using equity method that will be reclassified to profit or loss 2,528,331 2,335,295 Restricted reserves 20 12,556,879 15,526,386 Retained earnings 197,867,065 204,039,347 Net income/ (loss) 97,077 20,158,211 Total equity attributable to equity holders of the parent 282,015,692 310,614,595 Non-controlling interests 4,493,356 4,438,216 Total equity and liabilities 475,900,121 499,826,359 This consolidated financial information as of and for the year ended 31 March 2025 has been approved for issue by the Board of Directors on 29 April 2025. The accompanying notes form an integral part of these consolidated financial statements.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 2 Unaudited Unaudited 1 January- 1 January- Notes 31 March 2025 31 March 2024 Revenue 21 158,623,387 228,524,890 Cost of sales 21,22 (145,458,378) (210,330,068) Gross profit (loss) 13,165,009 18,194,822 General administrative expenses 22 (4,238,443) (4,846,765) Marketing expenses 22 (2,065,209) (3,098,986) Research and development expenses 22 (113,053) (137,560) Other operating income 23 2,389,817 3,985,730 Other operating expenses 23 (5,247,164) (8,601,721) Operating profit (loss) 3,890,957 5,495,520 Income/ (expenses) from investment activities 24 6,789 (489) Income (loss) from investments accounted by equity method 10 (56,057) 389,397 Operating profit before financial income (expense) 3,841,689 5,884,428 Financial income 25 4,185,313 10,429,420 Financial expense 25 (3,448,907) (5,954,112) Monetary loss/gain 26 (2,044,703) (7,746,675) Profit (loss) before tax from continued operations 2,533,392 2,613,061 Tax (expense) income (2,413,265) (2,039,594) Taxes on (expense) income 27 (135,049) (725,654) Deferred tax (expense) income 27 (2,278,216) (1,313,940) Net income (loss) from continued operations 120,127 573,467 Other comprehensive income: Items not to be reclassified to profit or loss 19,469 - Share of other comprehensive income accounted for investment using equity method that will be not reclassified to profit or loss 19,469 - Actuarial gain (loss) arising from defined benefit plans accounted for investment using equity method 10 19,469 - Items to be reclassified to profit or loss 616,641 (5,123,729) Currency translation differences related to the translation of foreign businesses (12,317) (208,283) Gains (losses) on foreign currency translation differences related to the translation of foreign operations (12,317) (208,283) Share of other comprehensive income accounted for investment using equity method that will be reclassified to profit or loss 193,036 172,685 Gain (loss) from translation of foreign currency of investments using equity method 10 193,036 172,685 Income (expense) relating to avoidance of risk of cash flow 548,577 (6,893,672) Income (loss) of avoidance of risk cash flow 548,577 (6,893,672) Tax effect of other comprehensive income (loss) to be reclassified to profit or loss (112,655) 1,805,541 Deferred tax income (expense) 27 (112,655) 1,805,541 Other comprehensive income (expense) 636,110 (5,123,729) Total comprehensive income (expense) 756,237 (4,550,262) Distribution of income for the period: Non-controlling interests 23,050 131,059 Attributable to equity holders of the parent 97,077 442,408 Distribution of total comprehensive income Non-controlling interests 55,140 196,831 Attributable to equity holders of the parent 701,097 (4,747,093) Earnings per share from continued operations Earnings per share with nominal value Kr1 each (Kr) 28 0.05 0.23 The accompanying notes form an integral part of these consolidated financial statements.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 3 Accumulated other comprehensive income/(expense) Accumulated other comprehensive income/(expense) not to be reclassified to profit or loss that will be reclassified to profit or loss Gains/(losses) on valuation and remeasurement Hedge gains/ (losses) Total retained earnings Share Capital Adjustments to share capital Gain on revaluation of properties Actuarial gains/(losses) arising from defined benefit plans Share of other comprehensive income of investments accounted for using equity method that will be not reclassified to profit or loss Currency translation differences Cash flow hedge gains/(losses Share of other comprehensive income of investments accounted for using equity method that will be reclassified to profit or loss Restricted reserves Retained earnings Net income/ (expense) Equity holders of parent Non controlling interest Total equity Unaudited 1 January 2024 1,926,796 40,260,071 182,408 (682,364) 710,244 571,111 1,226,631 1,596,707 10,172,162 177,926,355 85,138,666 319,028,787 3,460,243 322,489,030 Transfers - - - - - - - - - 85,138,666 (85,138,666) - - - - Net profit for the period - - - - - - - - - - 442,409 442,409 131,058 573,467 - Other comprehensive income - - - - - (208,283) (5,153,903) 172,685 - - - (5,189,501) 65,772 (5,123,729) Total comprehensive income - - - - - (208,283) (5,153,903) 172,685 - - 442,409 (4,747,092) 196,830 (4,550,262) 31 March 2024 1,926,796 40,260,071 182,408 (682,364) 710,244 362,828 (3,927,272) 1,769,392 10,172,162 263,065,021 442,409 314,281,695 3,657,073 317,938,768 Unaudited 1 January 2025 1,926,796 40,260,071 27,201,479 (213,817) 722,659 (207,592) (1,134,240) 2,335,295 15,526,386 204,039,347 20,158,211 310,614,595 4,438,216 315,052,811 Transfers - - - - - - - - 2,920,357 17,237,854 (20,158,211) - - - Dividends paid - - - - - - - - (5,889,864) (23,410,136) - (29,300,000) - (29,300,000) - Net profit for the period - - - - - - - - - - 97,077 97,077 23,050 120,127 - Other comprehensive income - - - - 19,469 (12,954) 404,469 193,036 - - - 604,020 32,090 636,110 Total comprehensive income - - - - 19,469 (12,954) 404,469 193,036 - - 97,077 701,097 55,140 756,237 31 March 2025 1,926,796 40,260,071 27,201,479 (213,817) 742,128 (220,546) (729,771) 2,528,331 12,556,879 197,867,065 97,077 282,015,692 4,493,356 286,509,048 The accompanying notes form an integral part of these consolidated financial statements.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. INTERIM CONSOLIDATED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 4 Unaudited Unaudited 1 January- 1 January- Notes 31 March 2025 31 March 2024 Cash flows from operating activities (20,221,077) (21,488,822) Profit/(loss) for the period 120,127 573,467 Adjustment for reconciliation of profit/(loss) for the period 10,469,958 2,195,960 Adjustment for depreciation and amortisation expense 11, 12 3,003,126 2,955,206 Adjustments for Impairement Loss (Reversal of Impairment Loss) of inventories 9,31 (71,983) (226,438) Adjustment for provisions 31 1,582,545 1,602,784 Adjustment for interest (income) and expense 25 (1,040,408) (7,540,503) Adjustment for unrealized foreign currency translation differences (436,965) 2,881,897 Adjustment for fair value (gain) or loss 1,025,429 (7,466,724) Adjustment for undistributed profit accounted by equity method 10 59,685 (389,397) Adjustment for bargained acquisition profit 3 (7,831) - Adjustment for tax expenses(income) 27 2,413,265 2,039,594 Adjustment for (gain)/loss on sales of property, plant and equipment 24 (6,789) (507) Adjustment for other items related with cash flow of investment or financial activities 25 55,462 128,087 Other adjustments for reconciliation of profit/(loss) 270,076 88,744 Monetary loss/gain 3,624,346 8,123,217 Changes in working capital (29,918,142) (21,669,889) Adjustment for decrease/(increase) in trade receivables (3,608,175) 10,781,745 Adjustment for decrease/(increase) in other assets related with operations (3,865,284) 96,235 Adjustment for decrease/(increase) in derivative assets (2,258,429) 522,449 Adjustment for decrease/(increase) in inventories 369,969 (15,160,514) Adjustment for increase/(decrease) in trade payables (23,729,099) (24,078,053) Adjustment for increase/(decrease) in other liabilities related with operations 1,609,558 (191,582) Adjustment for decrease/(increase) in derivative liabilities 1,563,318 6,359,831 Cash flows from operating activities (19,328,057) (18,900,462) Tax returns/(payments) 27 (942,958) (2,262,099) Other cash inflow/(outflow) 49,938 (326,261) Cash flows from investing activities (3,084,296) (7,265,948) Dividends received 10 833,400 - Cash inflows from the sales of property, plant and equipment and intangible assets 7,837 (42,294) Cash outflows from the purchase of property, plant and equipment and intangible assets (2,941,371) (2,672,333) Cash outflows from the purchase of shares in other businesses or funds (8,813) - Cash outflows from acquisitions/payments to gain control of subsidiaries 3 (975,349) - Other cash inflow/(outflow) - (4,551,321) Cash flows from financing activities (4,943,162) 9,039,157 Cash inflows from financial liabilities 7 14,847,070 12,989,641 Cash outflows from financial liabilities 7 (13,315,617) (11,987,847) Cash inflows from derivative instruments 72,696 43,311 Cash outflows from derivative instruments (662,203) (762,634) Cash outflows from payments of rent agreements 7 (102,533) (36,138) Dividends paid (7,970,323) - Interest paid (2,266,292) (1,647,160) Interest received 4,454,040 10,439,984 Net increase/(decrease) in cash and cash equivalents before the effect of foreign currency translation differences (28,248,535) (19,715,613) Inflation effect on cash and cash equivalents (5,815,982) (16,139,290) Impact of foreign currency translation differences on cash and cash equivalents 774,728 1,082,655 Net increase/(decrease) in cash and cash equivalents (33,289,789) (34,772,248) Cash and cash equivalents at the beginning of the period 5 65,173,082 136,724,769 Cash and cash equivalents at the end of the period 5 31,883,293 101,952,521 The accompanying notes form an integral part of these consolidated financial statements.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 5 1. Organization and nature of operations of the group Türkiye Petrol Rafinerileri A.Ş. (“Tüpraş” or the “Company”) was established on 16 November 1983. The Company is mainly engaged in the following fields: • To provide and refine all kinds of crude oil, petroleum, and chemical products, to sustain all kinds of commercial operations of produced and imported crude oil, petroleum and chemical products including export along with the storage and transportation activities during production and selling stages and to establish and operate domestic and foreign refineries for this purpose. • To establish and operate factories and facilities in petrochemical and other related industries, • To provide the necessary raw and supplementary materials and process, produce or trade these materials in order to obtain petrochemical and other related products, • To package the products produced during various phases of production and to establish a packaging industry for this purpose, to evaluate and/or to sell waste, by products and substandard products, to establish and operate the necessary facilities for the destruction of the waste products, • To establish and operate facilities and plants related with all kinds of energy and energy related industries within the framework of the laws and regulations. To obtain, use and trade all kinds of equipment, materials and chemical substances for this purpose, • Domestic and foreign wholesale and retail purchase, sale, import, export, storage, marketing of all kinds of petroleum products, LPG and natural gas, with other real and legal persons to operate partially or completely in these purposes and subjects, such as distribution and marketing company or similar other establishing partnerships or appropriating the stocks and documents representing the shares of existing partnerships, selling them when necessary, buying or transferring the participation shares. The main operations of Tüpraş and its subsidiaries (collectively referred as “the Group”) are in Turkey and the Group’s business segment has been identified as refining, trading of petroleum products, electricity production and supply. The Company is registered at the Capital Markets Board (“CMB”) of Turkey and its shares have been quoted at Borsa İstanbul A.Ş. (“BIST”) since 1991. As of 31 March 2025 , the principal shareholders and their respective shareholdings in the Company are as follow (Note 20): (%) Enerji Yatırımları A.Ş. 46.40 Koç Holding A.Ş. 6.35 Koç Family Members and Companies owned by Koç Family Members 0.47 Publicly held 46.78 100.00 The parent of the Company is controlled by Koç Holding A.Ş., Koç Family and the companies owned by Koç Family.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 6 1. Orgaziation and nature of operations of the group (Continued) The nature of the business of the subsidiaries and joint ventures of the Group is as follows: Subsidiaries Country of incorporation Nature of business Ditaş Deniz İşletmeciliği ve Tankerciliği A.Ş. (“Ditaş”) Turkey Crude oil and petroleum products transportation Üsküdar Tankercilik A.Ş. (“Üsküdar”) Turkey Crude oil and petroleum products transportation T Damla Denizcilik A.Ş. (“Damla”) Turkey Mooring and tug service Kadıköy Tankercilik A.Ş. (“Kadıköy”) Turkey Crude oil and petroleum products transportation Beykoz Tankercilik A.Ş. (“Beykoz”) Turkey Crude oil and petroleum products transportation Sarıyer Tankercilik A.Ş. (“Sarıyer”) Turkey Crude oil and petroleum products transportation Kartal Tankercilik A.Ş. (“Kartal”) Turkey Crude oil and petroleum products transportation Maltepe Tankercilik A.Ş. (“Maltepe”) Turkey Crude oil and petroleum products transportation Salacak Tankercilik A.Ş. (“Salacak”) Turkey Crude oil and petroleum products transportation Karşıyaka Tankercilik A.Ş. (“Karşıyaka”) Turkey Crude oil and petroleum products transportation Bakırköy Tankercilik A.Ş. (“Bakırköy”) Turkey Crude oil and petroleum products transportation Karaköy Tankercilik A.Ş. (“Karaköy”) Turkey Crude oil and petroleum products transportation Çengelköy Tankercilik A.Ş. (“Çengelköy”) Turkey Crude oil and petroleum products transportation Pendik Tankercilik A.Ş. (“Pendik”) Turkey Crude oil and petroleum products transportation Tuzla Tankercilik A.Ş. (“Tuzla”) Turkey Crude oil and petroleum products transportation Göztepe Tankercilik A.Ş. (“Göztepe”) Turkey Crude oil and petroleum products transportation Kuruçeşme Tankercilik A.Ş. (“Kuruçeşme”) Turkey Crude oil and petroleum products transportation Balat Tankercilik A.Ş. (“Balat”) Turkey Crude oil and petroleum products transportation Florya Tankercilik A.Ş. (“Florya”) Turkey Crude oil and petroleum products transportation Tarabya Tankercilik A.Ş. (“Tarabya”) Turkey Crude oil and petroleum products transportation Adalar Tankercilik A.Ş. (‘‘Adalar’’) Turkey Crude oil and petroleum products transportation Ditaş Maritime (Ditaş Branch) (“Ditaş Maritime”) England Ship chartering and freight trading activities Körfez Ulaştırma A.Ş. (“Körfez”) Turkey Air, sea, land and rail transportation Tupras Trading Ltd. (“Tupras Trading”) England Crude oil and petroleum products trade Entek Elektrik Üretimi A.Ş. (“Entek”) Turkey Electricity and steam production and trade Eltek Elektrik Enerjisi İthalat İhracat ve Toptan Ticaret A.Ş. (“Eltek”) Turkey Electricity trade Enspire Enerji Yatırımları ve Hizmetleri A.Ş. (‘‘Enspire’’) Turkey Establishing a power generation facility Enkar Doğal Enerji Üretim ve Sanayi Ticaret A.Ş. (“Enkar”) Turkey Establishing a power generation facility Esinti Enerji Üretim Ticaret ve Sanayi A.Ş. (“Esinti”) Turkey Electricity production and trade Eco Sun Niculesti S.R.L. (“Eco Sun”) Romania Electricity production and trade Euromec-Ciocanari S.R.L. (“Euromec”) Romania Establishing a power generation facility Tüpraş Enerji Girişimleri A.Ş. (“Tüpraş Ventures”) Turkey Technology and venture investments Country of Joint ventures Incorporation Nature of business OPET Petrolcülük A.Ş. (“Opet”) Turkey Petroleum products retail distribution THY Opet Havacılık Yakıtları A.Ş. Turkey Jet fuel supply services Opet International Limited England Petroleum products trading Opet Trade B.V. The Netherlands Petroleum products trading Opet Trade Singapore (In liquidation) (*) Singapore Petroleum products trading Opet Market ve Akaryakıt İstasyon İşletmeciliği A.Ş. Turkey Petroleum products trading and retail Opet Fuchs Madeni Yağ San. ve Tic. A.Ş. Turkey Lube oil trading Op Ay Akaryakıt Ticaret Ltd. Şti. Turkey Petroleum products trading Akdeniz Akaryakıt Depolama Nakliyat ve Tic. A.Ş. Turkey Petroleum products trading Opet Aygaz Gayrimenkul A.Ş. Turkey Real estate WAT Mobilite Çözümleri Teknoloji ve Ticaret A.Ş. Turkey Electric vehicle charging stations Demre 7 Tankercilik A.Ş. Turkey Crude oil and petroleum products transportation Demre 8 Tankercilik A.Ş. Turkey Crude oil and petroleum products transportation Vice 2 Tankercilik A.Ş. Turkey Crude oil and petroleum products transportation (*) Ceased its activities since July 2015. The average number of employees of the Group as of 31 March 2025 is 6,167 (31 December 2024 – 6,236). The address of the registered office of the Company is as follows: Türkiye Petrol Rafinerileri A.Ş. Gülbahar Mahallesi Büyükdere Caddesi No:101/A Şişli, İstanbul
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 7 2. Basis of presentation of consolidated financial statements 2.1. Basis of presentation 2.1.1. Financial reporting standards The consolidated financial statements and disclosures have been prepared in accordance with the communiqué numbered II-14,1 “Communiqué on the Principles of Financial Reporting in Capital Markets” (the Communiqué) announced by the Capital Markets Board (“CMB”) on 13 June 2013 which is published on Official Gazette numbered 28676. In accordance with article 5th of the Communique, companies should apply Turkish Financial Reporting Standards (“TFRS”) and interpretations regarding these standards as published by the Public Oversight Accounting and Auditing Standards Authority of Turkey (“POA”). The consolidated financial statements are presented in accordance with the formats specified in the "Announcement on TMS Taxonomy" published by the POA on 3 July 2024 and the Financial Table Examples and User Guide published by the CMB. The Group and the group companies established in Turkey maintain their books of account and prepare their statutory financial statements (“Statutory Financial Statements”) in accordance with rules and principles published by POA, the Turkish Commercial Code (“TCC”), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. These consolidated financial statements have been prepared under the historical cost convention except for derivative instruments that are carried at fair value. These consolidated financial statements are based on the statutory records with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with the Turkish Financial Reporting Standards. Financial reporting in hyperinflationary economy With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after 31 March 2025 . TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy. According to the standard, financial statements prepared in the curren cy of a hyperinflation ary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Gro up has therefore presented its consolidated financial statements as of 31 March 2024 and 31 December 2024, on the purchasing power basis as of 31 March 2025. Pursuant to the decision of the Capital Markets Board (“CMB”) dated 28 December 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of TAS 29 starting from their annual financial reports for the periods ending on 31 December 2023. The adjustments made in accordance with TAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (“CPI”) of Turkey published by the Turkish Statistical Institute ("TURKSTAT"). As of 31 March 2025, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows: Date Index Conversion Factor Three-year Inflation Rate 31 March 2025 2,954.69 1.00000 250% 31 December 2024 2,684.55 1.10063 291% 31 March 2024 2,139.47 1.38104 309%
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 8 2. Basis of presentation of consolidated financial statements (Continued) 2.1. Basis of presentation (Continued) 2.1.1. Financial reporting standards (Continued) The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows: ● The current period consolidated financial statements prepared in TRY are expressed in terms of the purchasing power at the balance sheet date, and amounts from previous reporting periods are also adjusted and expressed in terms of the purchasing power at the end of the reporting period. ● Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation -adjusted values of non -monetary items exceed their recoverable amount or net rea lizable value, the provisions of TAS 36 “Impairment of Assets” and TAS 2 “Inventories” are applied, respectively. ● Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients. ● All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements. ● The effect of inflation on the Group's net monetary asset position in the current period is recorded in the monetary gain/loss account in the consolidated income statement (Note 26). Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Turkish Lira (“TRY”), which is the functional currency of Tüpraş and the presentation currency of the Group. Going concern The Group prepared consolidated financial statements in accordance with the going concern assumption. 2.1.2. Amendments in Turkish Financial Reporting Standards (“TFRS”) The new standards, amendments and interpretations The accounting policies adopted in preparation of the consolidated financial statements as of 31 March 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and IFRIC (International Financial Reporting Interpretations Committee) interpretations effective as of 1 January 2025. The effects of these standards and interpretations on the Group’s financial position and performance have been disclosed in the related paragraphs.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 9 2. Basis of presentation of consolidated financial statements (Continued) 2.1. Basis of presentation (Continued) 2.1.2. Amendments in Turkish Financial Reporting Standards (“TFRS”) (Continued) a) The new standards, amendments and interpretations which are effective as of 1 January 2025 are as follows: - Amendments to TAS 21- Non-fungibility The mentioned amendments have not an impact on the financial position and performance of the Group. b) Standards issued but not yet effective and not early adopted Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective. - Amendments to TFRS 10 and TAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Group will assess the effects of these changes after the mentioned standards have been finalized. - TFRS 17 - The new Standard for insurance contracts The mentioned standard has no impact on the Group’s consolidated financial statements. c) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA) The following amendments to TFRS 9 and TFRS 7 as well as TFRS 18 and TFRS 19 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Group will make the necessary changes to its consolidated financial statements after the amendments and new standards are issued and become effective under TFRS. - Amendments to TFRS 9 and TFRS 7 – Classification and measurement of financial instruments - Annual Improvements to IFRS Accounting Standards – Volume 11 - Amendments to TFRS 9 and TFRS 7 – Contracts Concerning Electricity Generated from Natural Resources - TFRS 18 – The new Standard for Presentation and Disclosure in Financial Statements The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group. - TFRS 19 – Subsidiaries without Public Accountability: Disclosures TFRS 19 does not have any impact on the Group's financial statements.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 10 2. Basis of presentation of consolidated financial statements (Continued) 2.1. Basis of presentation (Continued) 2.1.3. Financial statements of subsidiaries operating in foreign countries The financial statements of subsidiaries and joint ventures operating in foreign countries have been prepared in accordance with the laws and regulations applicable in the countries in which they operate and have been prepared by reflecting the necessary adjustments in order to provide accurate presentation in accordance with Turkish Financial Reporting Standards. In this context, the Group's subsidiaries and joint ventures operating in foreign countries prep are their financial statements in the functional currency of US Dollars, assets and liabilities are translated into Turkish Lira using the foreign exchange rate on the consolidated balance sheet date, and income and expenses are translated into Turkish Lira using the average exchange rate. Exchange differences resulting from the use of closing and average exchange rates and index effects resulting from T AS 29 are followed under the foreign currency translation differences account in the other comprehensive income statement and shareholders' equity. 2.1.4. Principles of consolidation a) The consolidated financial statements for period ended 31 March 2025 have been prepared in accordance with principles stated on the consolidated financial statements for the period ended 31 December 2024 and include financial statements of Tüpraş, and its Subsidiaries. b) As of 31 March 2025, and 31 December 2024, the voting rights and effective partnership shares of the subsidiaries and joint ventures that were consolidated are as follows. 31 March 2025 31 December 2024 Direct and indirect voting right possessed by the company (%) Proportion of effective interest (%) Direct and indirect voting right possessed by the company (%) Proportion of effective interest (%) Subsidiary Ditaş 79.98 79.98 79.98 79.98 Üsküdar 79.98 79.98 79.98 79.98 Damla 79.98 79.98 79.98 79.98 Beykoz 79.98 79.98 79.98 79.98 Kadıköy 79.98 79.98 79.98 79.98 Sarıyer 79.98 79.98 79.98 79.98 Kartal 79.98 79.98 79.98 79.98 Maltepe 79.98 79.98 79.98 79.98 Salacak 79.98 79.98 79.98 79.98 Karşıyaka 79.98 79.98 79.98 79.98 Bakırköy 79.98 79.98 79.98 79.98 Karaköy 79.98 79.98 79.98 79.98 Çengelköy 79.98 79.98 79.98 79.98 Pendik 79.98 79.98 79.98 79.98 Tuzla 79.98 79.98 79.98 79.98 Göztepe 79.98 79.98 79.98 79.98 Kuruçeşme 79.98 79.98 79.98 79.98 Balat 79.98 79.98 79.98 79.98 Florya 79.98 79.98 79.98 79.98 Tarabya 79.98 79.98 79.98 79.98 Adalar (*) 79.98 79.98 79.98 79.98 Ditaş Maritime (**) 79.98 79.98 79.98 79.98 Kilyos (***) 79.98 79.98 - - Körfez 100.00 100.00 100.00 100.00 Tupras Trading 100.00 100.00 100.00 100.00 Entek 99.23 99.23 99.23 99.23 Eltek 99.23 99.23 99.23 99.23 Enspire 99.23 99.23 99.23 99.23 Enkar 99.23 99.23 99.23 99.23 Esinti 86.92 84.84 85.33 83.26 Eco Sun (***) 99.23 99.23 - - Euromec (***) 99.23 99.23 - - Tüpraş Ventures 100.00 100.00 100.00 100.00 (*) Adalar Tankercilik A.Ş. was established on 28 February 2024. (**) Ditaş Maritime began operations on 31 October 2024. (**) Kilyos Tankercilik A.Ş was established on 12 March 2025. Eco Sun Niculesti S.R.L. and Euromec - Ciocanari S.R.L. companies were acquired on 30 January 2025.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 11 2. Basis of presentation of consolidated financial statements (Continued) 2.1. Basis of presentation (Continued) 2.1.4. Principles of consolidation (Continued) The financial position statements and income statements of the Subsidiaries have been consolidated using the full consolidation method, and the registered contributory value of the shares owned by the company is mutually clarified with the relevant equity. Transactions and balances within the scope of consolidation between the Company and Subsidiaries are mutually written off. The book values of the subsidiary shares owned by the Company and the dividends arising from these shares have been netted off from the related equity and comprehensive income statement accounts. c) Joint ventures are companies in which the Group has joint control. Joint control is the contractually agreed sharing of control. Control exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Group’s interest in joint ventures is accounted for with the equity method. Investments accounted by equity method are presented in consolidated statement of financial position with additions or deductions of changes on share of the Group on net ass ets of the affiliate and with deduction of provisions for the decline in the value. The table below shows the total interest of the Group in its joint ventures accounted by using the equity method as of 31 March 2025 and 31 December 2024: 31 March 2025 31 December 2024 Direct and indirect voting right possessed by the company (%) Proportion of effective interest (%) Direct and indirect voting right possessed by the company (%) Proportion of effective interest (%) Joint ventures accounted by equity method Opet 50.00 41.67 50.00 41.67 Opet International Limited (*) 50.00 41.67 50.00 41.67 Opet Trade B.V.(*) 50.00 41.67 50.00 41.67 Opet Trade Singapore (In liquidation) (*) (***) 50.00 41.67 50.00 41.67 Opet Market ve Akaryakıt İstasyon İşletmeciliği A.Ş. (*) 50.00 41.67 50.00 41.67 THY Opet Havacılık Yakıtları A.Ş. (**) 25.00 20.84 25.00 20.84 Opet Fuchs Madeni Yağ San. ve Tic. A.Ş. (**) 25.00 20.84 25.00 20.84 Op Ay Akaryakıt Ticaret Ltd. Şti.(**) 25.00 20.84 25.00 20.84 Akdeniz Akaryakıt Depolama Nakliyat ve Tic. A.Ş. (**) 16.67 13.89 16.67 13.89 Opet Aygaz Gayrimenkul A.Ş. (**) 25.00 20.84 25.00 20.84 WAT Mobilite Çözümleri Teknoloji ve Ticaret A.Ş. (**) 21.92 19.92 21.92 19.92 Demre 7 Tankercilik A.Ş. (*) (****) 50.00 41.67 50.00 41.67 Demre 8 Tankercilik A.Ş. (*) (****) 50.00 41.67 50.00 41.67 Vice 2 Tankercilik A.Ş. (****) 50.00 41.67 50.00 41.67 (*) The relevant companies are accounted for in Opet's financial statements by taking them into the scope of consolidation. (**) The relevant companies are accounted for in Opet's financial statements using the equity method. (***) They have ceased their activities as of July 2015. (****) Demre 7 and Demre 8 Tankercilik A.Ş. companies were established on 21 February 2024. Vice 2 Tankercilik A.Ş. company was established on 31 October 2024. d) The non-controlling shareholders’ share of the net assets and results for the period for the subsidiaries are classified separately in the consolidated statement of financial position and statements of comprehensive income as non-controlling interests.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 12 2. Basis of presentation of consolidated financial statements (Continued) 2.2. Comparatives and adjustment of prior periods’ financial statements Comparative Information and Restatement of Prior Period Consolidated Financial Statements The current period consolidated financial statements of the Group include comparative financial information to enable the determination of the trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to the changes in the presentation of the current period consolidated financial statements. Comparative Figures As explained in Note 2.1.1, figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the currency of the reporting period end. Information disclosed for prior periods is also expressed in the currency of the reporting period. 2.3. Changes in accounting policies, estimates and errors Any change in accounting policies resulting from the first time adoption of a new TFRS is made either retrospectively or prospectively in accordance with the transition requirements of TFRS. Changes without any transition requirement, material changes in accounting policies or material errors are corrected, retrospectively by restating the prior period consolidated financial statements. 2.4. Summary of significant accounting policies The condensed interim consolidated financial statements for the period ended 31 March 2025 have been prepared in accordance with TAS 34 for the preparation of interim financial statements of TFRS. In addition, the condensed interim consolidated financial s tatements as of 31 March 2025 have been prepared by applying the accounting policies that are consistent with the accounting policies applied during the preparation of the consolidated financial statements for the year ended 31 December 2024, except for th e accounting policy changes effective from 1 January 2025. Therefore, these condensed interim consolidated financial statements should be evaluated together with the consolidated financial statements for the year ended 31 December 2024. 3. Business combinations Within the scope of the international expansion plans of its subsidiary Entek, which has determined the Group's Strategic Transformation Plan as one of the new business areas, for the solar power plant that will operate in the Zero Carbon Electricity busin ess area, 100% of the shares of Eco Sun Niculesti S.R.L. and Euromec -Ciocanari S.R.L. companies located in Romania were acquired by Enspire, a subsidiary of the Group, on 30 January 2025. The shares of the companies were transferred to Enspire by paying a total of EUR29,200 thousand up to this stage, based on the current purchase price of EUR33,200 thousand, subject to post -closing adjustments such as tax regulations, incentives to be received by the project if it is granted, and net cash/debt. Tüpraş started to consolidate the companies in question on a line-by-line basis after the transaction date. The purchase price, the fair values of the acquired assets and liabilities used provisionally within the scope of TFRS 3 are summarized in the table below:
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 13 3. Business combinations (Continued) 30 January 2025 Consideration in cash 977,945 Deferred consideration 170,604 Total consideration transferred 1,148,549 Cash and cash equivalents 2,596 Other current assets 6,486 Property, plant and equipment (Not 11) 400,904 Intangible assets (Not 12) 1,109,211 Shareholder loan (143,824) Trade payables and other payables (51) Deferred tax liability (Not 27) (218,942) Total fair value of identifiable net assets (provisional) 1,156,380 Group’s share (provisional) 1,156,380 Gain on bargain purchase (provisional) (7,831) Total purchase price (provisional) 1,148,549 In the consolidated statement of profit or loss, Eco Sun and Euromec have made no contribution to consolidated revenue after the date of acquisition. In the same period, Eco Sun and Euromec companies did not contribute to the consolidated Group net profit for the period. If Eco Sun and Euromec had been included in the consolidation as of 1 January 2025, there would be no change in the Group's consolidated revenue amount. As of 31 March 2025, the total amount of acquisition costs, which are included in the general and administrative expenses, is TRY16,984 thousand. As of the balance sheet date, the details of the cash outflow resulting from the acquisition are as follows: Total purchase price – cash 977,945 Cash and cash equivalents - acquired (2,596) Cash outflow from acquisition (net) 975,349 4. Segment reporting The Group management has decided to use industrial segments as the reporting format for operating segments, considering that the Group's risks and returns are affected by developments in the energy sector. The Group management thinks that the Group operates under the industrial divisions formed by these two sectors, since the Group's field of activity is the refining and the electricity sectors as of the date of acquisition of Entek shares. The Group has presented the segment reporting it has prepared for the refining and electricity sectors in the consolidated financial statements. The performance of the segments is taken into account by the profit before interest, depreciation and tax.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 14 4. Segment reporting (Continued) a) Analysis of information by segments 1 January- 31 March 2025 Refining Electric Consolidated Total Revenue 156,370,144 2,253,243 158,623,387 Cost of sales (143,458,557) (1,999,821) (145,458,378) Gross profit (loss) 12,911,587 253,422 13,165,009 Operating expenses (6,178,770) (237,935) (6,416,705) Other operating income 2,325,331 64,486 2,389,817 Other operating expenses (5,211,290) (35,874) (5,247,164) Operating profit 3,846,858 44,099 3,890,957 Income/ (expenses) from investment activities 6,778 11 6,789 Income (loss) from investments accounted by equity method (56,057) - (56,057) Operating profit before financial income (expense) 3,797,579 44,110 3,841,689 Financial income 3,796,623 388,690 4,185,313 Financial expense (3,142,358) (306,549) (3,448,907) Monetary loss/gain (1,993,926) (50,777) (2,044,703) Profit (loss) before tax from continued operations 2,457,918 75,474 2,533,392 Tax (expense) income from continued operations (2,369,146) (44,119) (2,413,265) Net income (loss) from continued operations 88,772 31,355 120,127 1 January- 31 March 2024 Refining Electric Consolidated Total Revenue 226,054,305 2,470,585 228,524,890 Cost of sales (208,385,666) (1,944,402) (210,330,068) Gross profit (loss) 17,668,639 526,183 18,194,822 Operating expenses (7,833,876) (249,435) (8,083,311) Other operating income 3,975,002 10,728 3,985,730 Other operating expenses (8,589,046) (12,675) (8,601,721) Operating profit 5,220,719 274,801 5,495,520 Income/ (expenses) from investment activities 435 (924) (489) Income (loss) from investments accounted by equity method 389,397 - 389,397 Operating profit before financial income (expense) 5,610,551 273,877 5,884,428 Financial income 10,071,343 358,077 10,429,420 Financial expense (5,520,771) (433,341) (5,954,112) Monetary loss/gain (7,859,486) 112,811 (7,746,675) Profit (loss) before tax from continued operations 2,301,637 311,424 2,613,061 Tax (expense) income from continued operations (1,984,795) (54,799) (2,039,594) Net income (loss) from continued operations 316,842 256,625 573,467 b) Assets by segments 31 March 2025 31 December 2024 Refining 444,669,203 469,141,355 Electric 31,230,918 30,685,004 Total 475,900,121 499,826,359
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 15 4. Segment reporting (Continued) c) Depreciation and amortization Depreciation and amortization 31 March 2025 31 March 2024 Refining 2,778,615 2,593,477 Electric 224,511 361,730 Total 3,003,126 2,955,207 5. Cash and cash equivalents 31 March 2025 31 December 2024 Cash at banks Demand deposits 1,763,675 2,874,050 Time deposits 30,119,618 62,299,032 Demand deposits (blocked) 4,874,409 5,481,548 Time deposits (blocked) 14,737 2,998 Revenue share (blocked) 9,488,841 8,823,433 Time deposit interest accruals 409,690 1,453,145 Total 46,670,970 80,934,206 As required by the Petroleum Market License Regulation, the revenue share collected from the customers by the Group is held at banks and considered as blocked deposit in the Company’s books. The revenue share was invested as demand deposits with government debt securities interest rate and overnight interest rate as of 31 March 2025, and 31 December 2024 (Note 14). In addition, demand blocked deposits amounting to TRY 4,874,409 thousand loans are available for derivative transactions carried out in foreign exchanges ( 31 December 2024 – TRY5,435,193 thousand and for used investment credit TRY46,355 thousand). Time blocked deposits amounting to TRY14,737 thousand are available for time electricity market and renewable energy resources guarantee system (31 December 2024 – TRY2,998 thousand). Time deposits and other cash and cash equivalents As of 31 March 2025 and 31 December 2024 the maturity and the currency information of the time deposits are as follows: 31 March 2025 Effective rate of interest (%) Less than 1 month 1 - 3 months Total TRY 43.81 17,481,418 - 17,481,418 USD 3.68 9,201,796 - 9,201,796 EUR 3.99 3,323,578 112,826 3,436,404 Time deposit 30,006,792 112,826 30,119,618 31 December 2024 Effective rate of interest (%) Less than 1 month 1 - 3 months Total TRY 49.98 41,772,520 1,485,850 43,258,370 USD 4.15 16,181,352 - 16,181,352 EUR 3.65 1,993,184 858,489 2,851,673 GBP 0.01 7,637 - 7,637 Time deposit 59,954,693 2,344,339 62,299,032
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 16 5. Cash and cash equivalents (Continued) Cash and cash equivalents included in the consolidated statements of cash flows for the periods ended 31 March 2025 and 2024 are as follows: 31 March 2025 31 March 2024 Cash and cash equivalents 46,670,970 119,438,943 Less: Blocked deposits (Revenue share) (9,488,841) (7,569,736) Less: Blocked demand deposits (4,874,409) (7,379,032) Less: Blocked time deposits (14,737) (5,067) Less: Time deposit interest accruals (409,690) (2,532,587) Cash and cash equivalents 31,883,293 101,952,521 6. Financial investments Short-term Financial Investments: 31 March 2025 31 December 2024 Investment fund 26 26 Total 26 26 7. Financial liabilities 31 March 2025 31 December 2024 Short-term borrowings: Short-term bank borrowings 4,331,827 4,011,986 Interest accruals of bank borrowings 317,145 137,163 Total 4,648,972 4,149,149 Short-term portion of long-term borrowings: Short-term portion of long-term bank borrowings 1,572,978 1,825,203 Bonds issued 2,402,610 2,681,470 Interest accruals of bank borrowings 561,054 527,447 Interest accruals of bonds issued 530,083 643,509 Lease liabilities 130,194 138,256 Total 5,196,919 5,815,885 Long-term borrowings: Long-term bank borrowings 6,376,428 5,618,429 Bonds issued 4,397,390 4,802,814 Lease liabilities 455,108 513,184 Total 11,228,926 10,934,427 Total borrowings 21,074,817 20,899,461 Tüpraş has issued a bond on 23 July 2024 with a nominal value of TRY4,000,000 thousand, with a maturity of 727 days, coupon payment every 3 months and repayment of principal and coupon at maturity, with 100 bps additional yields on TRYREF reference rate. Tüpraş has issued a bond on 12 August 2024 with a nominal value of TRY2,800,000 thousand, with a maturity of 730 days, coupon payment every 3 months and repayment of principal and coupon at maturity, with 100 bps additional yields on TRYREF reference rate.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 17 7. Financial liabilities (Continued) As of 31 March 2025 and 31 December 2024, the currency and effective interest rate information for short and long-term borrowings are as follows: 31 March 2025 Effective interest rate Original Thousand (%) currency TRY Short-term borrowings: TRY bank borrowings 54.66 1,400,315,523 1,400,316 USD bank borrowing 5.81 67,888,457 2,931,511 4,331,827 Interest accruals 317,145 Total short-term financial liabilities 4,648,972 Short-term portion of long-term borrowings: TRY bank borrowings 57.63 862,903,845 862,904 TRY bonds issued 53.61 2,402,610,000 2,402,610 USD bank borrowings 6.01 14,268,700 538,866 EUR bank borrowings 4.28 4,206,388 171,208 TRY lease liabilities 27.92 86,989,000 86,989 EUR lease liabilities 3.23 302,295 12,304 GBP lease liabilities 4.55 633,245 30,901 4,105,782 Interest accruals 1,091,137 Total short-term portion of long-term borrowings 5,196,919 Long-term borrowings: TRY borrowings 57.63 2,131,392,969 2,131,393 TRY bonds issued 53.61 4,397,390,000 4,397,390 USD borrowings 6.01 94,229,915 3,558,649 EUR bank borrowings 4.28 16,863,726 686,386 TRY lease liabilities 27.92 191,816,000 191,816 EUR lease liabilities 3.23 5,049,494 205,524 GBP lease liabilities 4.55 1,183,860 57,768 11,228,926 Interest accruals - Total long-term borrowings 11,228,926
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 18 7. Financial liabilities (Continued) 31 December 2024 Effective interest rate Original Thousand (%) currency TRY Short-term borrowings: TRY bank borrowings 54.14 1,855,190,086 1,855,190 USD bank borrowing 5.34 61,232,083 2,156,796 4,011,986 Interest accruals 137,164 Total short-term financial liabilities 4,149,150 Short-term portion of long-term borrowings: TRY borrowings 58.34 993,378,072 993,378 TRY bond issued 58.68 2,681,470,009 2,681,470 USD bank borrowings 6.47 18,786,321 661,716 EUR bank borrowings 4.61 4,629,680 170,108 TRY lease liabilities 30.29 96,740,974 96,741 EUR lease liabilities 3.20 368,565 13,542 GBP lease liabilities 4.55 632,232 27,974 4,644,929 Interest accruals 1,170,956 Total short-term portion of long-term borrowings 5,815,885 - Long-term borrowings: TRY borrowings 58.29 2,292,302,365 2,292,302 TRY bond issued 58.68 4,850,524,600 4,850,525 USD borrowings 5.86 71,705,045 2,525,688 EUR borrowings 4.61 20,486,338 752,727 TRY lease liabilities 27.52 223,080,000 223,080 EUR lease liabilities 3.23 6,156,451 226,206 GBP lease liabilities 4.55 1,444,164 63,899 10,934,427 Interest accruals - Total long-term borrowings 10,934,427 As of 31 March 2025 and 31 December 2024, the redemption schedule of long-term bank borrowings is as follows: 31 March 2025 31 December 2024 1-2 years 7,167,395 7,713,551 2-3 years 2,395,902 1,261,289 3-4 years 427,384 469,468 4-5 years 242,909 286,429 Over 5 years 995,336 1,203,690 Total 11,228,926 10,934,427
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 19 7. Financial liabilities (Continued) The movement of borrowings as of 31 March 2025 and 2024 is as follows: 2025 2024 1 January 20,899,461 56,136,021 New financial borrowings 14,785,782 12,966,919 Principal payments (13,315,617) (11,987,847) Increase due to lease liabilities 61,288 22,722 Decrease due to payment of lease liabilities (102,533) (36,138) Changes in interest accruals 103,885 118,100 Changes in foreign exchange rates 442,198 3,964,552 Monetary loss/gain (1,799,647) (7,406,919) 31 March 21,074,817 53,777,410 8. Trade receivables and payables Short-term trade receivables: 31 March 2025 31 December 2024 Trade receivables 36,100,401 31,397,508 Due from related parties (Note 29) 8,680,454 9,774,400 Doubtful trade receivables 7,325 8,062 Other trade receivables 2 37 Less: Unearned credit finance income (345,206) (369,763) Less: Expected credit loss (7,325) (8,062) Total short-term trade receivables (net) 44,435,651 40,802,182 Tüpraş discounts the domestic receivables by using domestic government bonds and foreign receivables by using monthly SOFR. As of 31 March 2025, TRY5,800,000 thousand collected from factoring companies within the scope of irrevocable factoring has been deducted from trade receivables (31 December 2024 – TRY9,063,688 thousand). Movement of the provision for doubtful receivables for the years ended 31 March 2025 and 2024 is as follows: 2025 2024 1 January 8,062 11,877 Monetary gain/loss (737) (1,555) 31 March 7,325 10,322 Short-term trade payables: 31 March 2025 31 December 2024 Trade payables 90,186,300 113,620,752 Due to related parties (Note 29) 1,037,177 1,331,773 Less: Unrealized credit finance charges trade payables (404,741) (618,652) Total short-term trade receivables (net) 90,818,736 114,333,873 Tüpraş discounts short-term trade payables by using monthly SOFR.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 20 9. Inventories 31 March 2025 31 December 2024 Raw materials and supplies 11,898,529 9,290,527 Work-in-progress 14,016,033 15,282,775 Finished goods 16,263,648 15,692,089 Trade goods 542,331 578,208 Goods in transit (*) 22,802,431 25,045,123 Other inventories 522,445 526,664 Total 66,045,417 66,415,386 Provision for impairment of inventory - (71,983) Total 66,045,417 66,343,403 (*) The goods in transit mainly consist of crude oil stocks. 10. Investments accounted for using the equity method 31 March 2025 31 December 2024 Participation share (%) Amount Amount OPET Petrolcülük A.Ş. 41.67 13,689,929 14,366,881 13,689,929 14,366,881 The movement in the investments accounted for using the equity method during the period ended 31 March 2025 and 2024 is as follows: 2025 2024 1 January 14,366,881 13,179,645 Investments accounted for using the equity method; Shares in current period profit (59,685) 389,397 Dividend payment (833,400) (1,150,959) Actuarial gain/(loss) arising from defined benefit plans 19,469 - Currency translation differences 193,036 172,685 Transactions with non-controlling shareholders 3,628 - 31 March 13,689,929 12,590,768 Consolidated summary financial statements of investments accounted for using the equity method (before Group’s effective interest) are as follows: 31 March 2025 31 December 2024 Current assets 36,399,558 34,823,666 Non-current assets 39,525,600 39,843,716 Total assets 75,925,158 74,667,382 Short term liabilities 34,468,552 33,475,227 Long term liabilities 8,603,404 6,714,400 Equity 32,853,202 34,477,755 Total liabilities 75,925,158 74,667,382 1 January- 1 January- 31 March 2025 31 March 2024 Sales (net) 79,762,831 98,856,096 Gross profit 3,792,113 3,187,283 Operating profit 962,817 898,593 Net income/(loss) for the period (134,527) 934,478
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 21 11. Property, plant and equipment The movements of property, plant and equipment and related accumulated depreciation for the period ended 31 March 2025 and 2024 are as follows: 1 January 2025 Acquisitions (*) Additions Disposals Currency translation differences 31 March 2025 Cost: Lands 74,478,921 399,393 - - 17,719 74,896,033 Land improvements 66,996,049 - - - - 66,996,049 Buildings 15,547,103 - 227 - - 15,547,330 Machinery and equipment 238,222,244 - 7,157 - (3,042) 238,226,359 Motor vehicles 28,571,703 - 11,747 - - 28,583,450 Furniture and fixtures 3,381,222 - 13,338 (312) (546) 3,393,702 Construction in progress 14,913,315 1,511 2,253,431 - 243 17,168,500 Special costs 429,496 - - - 26,635 456,131 Other tangible assets 716,355 - 2,679 - - 719,034 443,256,408 400,904 2,288,579 (312) 41,009 445,986,588 Accumulated depreciation: Land improvements (40,538,306) - (571,952) - - (41,110,258) Buildings (6,553,259) - (74,185) - - (6,627,444) Machinery and equipment (137,144,181) - (1,646,590) 116 608 (138,790,047) Motor vehicles (7,758,692) - (338,529) 8 - (8,097,213) Furniture and fixtures (1,902,105) - (114,079) 325 (70) (2,015,929) Special costs (298,097) - (19,460) - 445 (317,112) Other tangible assets (142,676) - (9,471) - - (152,147) (194,337,316) - (2,774,266) 449 983 (197,110,150) Net book value 248,919,092 248,876,438 (*) Due to acquisition of Eco Sun and Euromec realized of 30 January 2025 (Note 3). 1 January 2024 Additions Transfers Disposals 31 March 2024 Currency translation differences Cost: Lands 41,077,474 - - - - 41,077,474 Land improvements 62,740,546 5,430 - - - 62,745,976 Buildings 15,043,477 - - (157) - 15,043,320 Machinery and equipment 233,437,459 20,171 - - - 233,457,630 Motor vehicles 27,516,443 2,029 - (20,908) - 27,497,564 Furniture and fixtures 2,738,856 23,849 2,659 (4,353) - 2,761,011 Construction in progress 13,697,418 1,894,052 (2,659) - - 15,588,811 Special costs 428,026 6,869 - (1) - 434,894 Other tangible assets 565,421 - - (5,465) - 559,956 397,245,120 1,952,400 - (30,884) 399,166,636 Accumulated depreciation: Land improvements (38,705,487) (489,456) - - - (39,194,943) Buildings (6,292,261) (67,232) - - - (6,359,493) Machinery and equipment (131,123,966) (1,846,543) - - 1,677 (132,968,832) Motor vehicles (6,442,390) (276,539) - 75,593 - (6,643,336) Furniture and fixtures (1,676,462) (75,515) - 255 1,110 (1,750,612) Special costs (225,223) (14,063) - - 3,825 (235,461) Other tangible assets (98,153) (16,039) - - - (114,192) (184,563,942) (2,785,387) - 75,848 6,612 (187,266,869) Net book value 212,681,178 211,899,767 The depreciation expenses of the right of use assets for the three -month interim period ending on 31 March 2025 are TRY89,964 thousand (31 March 2024: TRY62,035 thousand). As of 31 March 2025, there are no pledges on property, plant and equipment (31 December 2024: None).
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 22 12. Intangible assets Other intangible assets: The movements of intangible assets and related accumulated amortization for the period ended 31 March 2025 and 2024 are as follows: 1 January 2025 Acquisitions (*) Additions Disposals Currency translation differences 31 March 2025 Cost: Rights and software 2,065,379 - 1,705 (90) - 2,066,994 Development expenses 1,929,010 - 9,968 - - 1,938,978 Other intangible assets 7,081,536 1,109,211 1,610 (1,095) 48,973 8,240,235 11,075,925 1,109,211 13,283 (1,185) 48,973 12,246,207 Accumulated amortization: Rights and software (1,601,760) - (44,024) - - (1,645,784) Development expenses (1,484,063) - (43,823) - - (1,527,886) Other intangible assets (1,290,842) - (51,049) - - (1,341,891) (4,376,665) - (138,896) - - (4,515,561) Net book value 6,699,260 7,730,646 (*) Due to acquisition of Eco Sun and Euromec realized of 30 January 2025 (Note 3). 1 January 2024 Additions Disposals 31 March 2024 Cost: Rights and software 1,854,274 - (1,236) 1,853,038 Development expenses 1,696,653 63,514 - 1,760,167 Other intangible assets 7,077,305 1,922 (1,512) 7,077,715 10,628,232 65,436 (2,748) 10,690,920 Accumulated amortization: Rights and software (1,370,123) (66,617) 78 (1,436,662) Development expenses (1,359,475) (29,076) - (1,388,551) Other intangible assets (1,140,171) (12,091) - (1,152,262) (3,869,769) (107,784) 78 (3,977,475) Net book value 6,758,463 6,713,445 13. Prepaid expenses Short-term prepaid expenses 31 March 2025 31 December 2024 Insurance and other expenses 1,311,274 1,283,773 Advances given 545,910 657,246 Advances given to third parties for property, plant and equipment - 7,252 Total 1,857,184 1,948,271 Long-term prepaid expenses: 31 March 2025 31 December 2024 Advances given to third parties for property, plant and equipment 4,250,886 2,912,328 Other prepaid expenses 823,681 252,421 Advances given to related parties for property, plant and equipment (Note 29) 537,606 1,236,655 Total 5,612,173 4,401,404
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 23 14. Other assets and liabilities Other current assets: 31 March 2025 31 December 2024 Deferred Value Added Tax (“VAT”) 10,384,919 7,020,862 Deferred Special Consumption Tax (“SCT”) 1,871,365 1,192,441 Taxes and funds to be offsetted 1,051,925 1,691,483 Income accruals 632,107 811,321 VAT to be refunded 605,873 38,777 Spare parts and material stocks 566,167 831,013 Deferred VAT 231,259 137,706 Other current assets 558,407 688,552 Total 15,902,022 12,412,155 Other non-current assets: 31 March 2025 31 December 2024 Spare parts and material stocks 18,032,808 18,429,575 Other 1,035 11,467 Total 18,033,843 18,441,042 Other short-term liabilities: 31 March 2025 31 December 2024 Deferred value added tax (“VAT”) 10,384,919 7,020,862 Revenue share 9,547,314 8,874,503 SCT payable 9,023,296 10,540,334 Deferred Special Consumption Tax (“SCT”) 1,871,365 1,192,441 VAT payable 922,750 1,215,333 Taxes and liabilities payable 461,739 1,218,359 Expense accruals 15,655 17,229 Other 487,558 517,149 Total 32,714,596 30,596,210 Deferred VAT and SCT include VAT and SCT amounts related to export committed sales and are classified within “Other current assets” under assets and within “Other current liabilities” under liabilities. Such SCT and VAT amounts are offset when the export transaction is certified and the related taxes are cancelled by the tax office. According to the Petroleum Market Law, financing needs of refinery owners to maintain the National Petroleum Stock are supplied by the revenue share, which is a surplus added to the sales price, limited to a ceiling of USD 10/ton as determined by Energy Market Regulatory Authority (“EMRA”). In the case of importation of petroleum products, the revenue share is to be paid to the refinery owner by the importer. The Group has been collecting the revenue share over the sales of petroleum products and non-refinery imports of petroleum products since 1 January 2005, the date the relevant article of the regulation came into force. The Group has been collecting revenue share for LPG sales since 16 September 2005 in addition to the revenue share collected for petroleum products, in accordance with the Liquefied Petroleum Gas (“LPG”) Market Regulation. It has been decided by the National Petroleum Reserves Commission that the investment management of the revenue share collected will be conducted by the General Directorate of Tüpraş, and the collected amount will be invested in overnight reverse repurchase agreements. Based on these decisions, the income shares calculated as of 31 March 2025 in the amount of TRY 9,547,314 thousand ( 31 December 2024 : TRY 8,874,503 thousand) are recognized under "Other Short -Term Liabilities" without being associated with the comprehensive income statement. Regarding the calculated Income Share, the amount of TRY9,488,841 thousand, which is evaluated as blocked government domestic borrowing interest rates in banks and time deposits and overnight interest deposits, is classified as "Income sh are (blocked)" under "Cash and Cash Equivalents" (31 December 2024: TRY8,823,433 thousand) (Note 5).
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 24 15. Provisions Provision for employee benefits: Short-term provision for employee benefits: 31 March 2025 31 December 2024 Personnel bonus accruals 556,385 65,946 Seniority incentive bonus provision 62,048 62,866 Total 618,433 128,812 Long-term employee benefits: 31 March 2025 31 December 2024 Provision for employment termination benefits 1,321,759 1,361,452 Provision for unused vacation 368,017 314,999 Seniority incentive bonus provision 141,082 155,734 Total 1,830,858 1,832,185 Other short-term provisions: 31 March 2025 31 December 2024 Provision for demurrage 1,502,595 1,836,366 Provision for cost expense 1,343,498 290,335 EMRA participation share (*) 283,684 247,720 Provisions for pending claims and law suits 23,268 41,041 Total 3,153,045 2,415,462 (*) EMRA participation share is the participation fee that is paid by the refinery license owners in accordance with the Petroleum Market License Regulation, calculated by multiplying net sales with the participation share rate determined by EMRA. 16. Liabilities for employee benefits 31 March 2025 31 December 2024 Due to the personnel 944,873 854,705 Social security withholdings payment 614,990 347,579 Total 1,559,863 1,202,284 17. Other receivables and payables Other receivables 31 March 2025 31 December 2024 Receivable from insurance recoveries 233,502 68,406 Receivable from personnel 135,543 126,144 Deposits and guarantees given 14,890 15,260 Other doubtful receivables 8,647 9,525 Less: Provision for other doubtful receivables (8,647) (9,525) Total 383,935 209,810 Other payables 31 March 2025 31 December 2024 Dividend payables to unrelated parties 13,720,585 1,435 Dividend payables to related parties (Note 29) 7,610,527 - Deposits and guarantees received 385,756 211,759 Other payables to related parties (Note 29) 3,862 449,222 Total 21,720,730 662,416
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 25 18. Derivative instruments 31 March 2025 31 December 2024 Fair values Fair values Purchase contract amount Sales contract amount Assets Liabilities Purchase contract amount Sales contract amount Assets Liabilities Cash flow hedge Interest rate swap 633,874 633,874 26,562 - 836,117 836,117 57,297 - Commodity derivative 46,497,365 46,497,365 3,649,804 4,480,905 50,479,566 50,479,566 1,557,401 2,859,657 Derivatives held for trading Currency forwards 6,539,757 6,536,208 22,891 4,670 9,655,940 9,839,544 - 60,812 Foreign currency swap 2,695,861 2,695,861 - 28,942 1,677,613 1,677,613 2,321 - Commodity derivative 4,140,593 4,140,593 154,402 - 4,546,803 4,546,803 - 16,508 Cross currency swap 320,906 526,608 - 217,876 278,754 462,720 - 187,064 Short term derrivative instruments 3,853,659 4,732,393 1,617,019 3,124,041 Cash flow hedge Interest rate swap 1,757,017 1,757,017 73,972 20,716 1,875,904 1,875,904 52,183 - Derivatives held for trading Cross currency swap 628,861 1,031,980 - 426,966 734,210 1,218,777 - 492,716 Long term derrivative instruments 73,972 447,682 52,183 492,716 Total derrivative instruments 3,927,631 5,180,075 1,669,202 3,616,757 As of 31 March 2025 , forward foreign exchange transactions consist of forward transactions which generate a sales obligation of USD86,490 thousand in exchange of TRY3,262,799 thousand and AED320,163 thousand against a total of USD86,677 thousand (As of 31 December 2024, forward foreign exchange transactions consist of forward and currency swap transactions which generate a sales obligation of adjusted by 2025 purchasing power USD249,071 thousand for in exchange of TRY9,655,940 thousand). As of 31 March 2025, interest rate swap consists of exchange of floating rate instalment payments of long -term borrowings and bonds amounting to USD23,590 thousand and TRY1,500,000 thousand (31 December 2024: USD27,370 thousand and adjusted by 2025 purchasing power TRY1,650,945 thousand) with fixed rate installment payments for cash flow hedging. As of 31 March 2025 , cross currency swap transactions consist of swaps with fixed interest rate transaction of foreign currency indexed floating interest rate USD 25,149 thousand (31 December 2024: USD26,129 thousand) and fixed interest rate long-term borrowings amounting to TRY1,558,588 thousand (31 December 2024: Adjusted by 2025 purchasing power TRY1,681,497 thousand). As of 31 March 2025, and 31 December 2024, goods purchase and sale transactions consist of 61,680 thousand barrels (31 December 2024 – 58,920 thousand barrels) crude oil purchase and sale transactions realized in various maturities to hedge the risk of crude oil price changes in the Group's hig hly probable future sales. There is no ineffective portion of these derivative instrument transactions.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 26 19. Commitments and contingent assets and liabilities 31 March 2025 31 December 2024 Guarantees received: Original currency(*): TRY amount: Original currency(*): TRY amount(**): Letter of guarantees received 10,976,570 11,074,822 - Letter of guarantees in TRY 5,098,540 5,098,539 4,986,824 4,986,825 - Letter of guarantees in USD 123,192 4,652,414 127,000 4,923,501 - Letter of guarantees in EUR 29,707 1,209,138 28,067 1,135,039 - Letter of guarantees in other currencies - 16,479 - 29,457 Guarantee notes received 32,121 - - Guarantee notes in USD 851 32,121 - - Guarantee letters received 1,888,280 1,971,364 - Guarantee letters received in USD 50,000 1,888,280 50,851 1,971,364 Guarantee letters of credit 6,870,318 8,560,979 - Letters of credit in USD 181,920 6,870,318 220,827 8,560,979 Direct debiting limits 1,313,484 1,530,957 - TRY direct debiting limits 1,313,483 1,313,484 1,530,956 1,530,957 Total guarantees received 21,080,773 23,138,122 Guarantees given: Letter of credits given 12,001,153 21,518,218 - Letter of credits in USD 317,780 12,001,153 555,054 21,518,218 Letter of guarantees given 11,717,410 16,347,250 - Letter of guarantees in TRY 11,008,181 11,008,182 15,582,128 15,582,127 - Letter of guarantees in USD 3,260 123,121 2,837 109,989 - Letter of guarantees in EUR 14,400 586,107 16,200 655,134 Letters of guarantee given to customs offices 5,753,687 2,744,711 - Letter of guarantees in TRY 5,509,476 5,509,476 2,502,068 2,502,069 - Letter of guarantees in EUR 6,000 244,211 6,000 242,642 Guarantee bond 509,297 536,137 -Guarantee bond in TRY 181,068 181,068 199,289 199,289 -Guarantee bond in USD 8,619 325,502 8,619 334,140 -Guarantee bond in EUR 67 2,727 67 2,708 Letters of guarantee given to banks 379,477 507,166 - Letter of guarantees in USD 10,048 379,477 13,082 507,166 Guarantees 3,855,568 3,995,263 - Guarantees in USD 100,800 3,806,772 101,800 3,946,564 - Guarantees in other currencies 1,000 48,796 1,000 48,699 Total guarantees given 34,216,592 45,648,745 (*) Original balance amounts are expressed in thousands of currencies. (**) Previous year's TRY equivalent amounts of guarantees with original balance amounts in foreign currency have been prepared on the basis of 2025 purchasing power. As of 31 March 2025 , and 31 December 2024 , the received guarantees consist of guarantees received from customers and vendors, while the given guarantees consist of guarantees provided to public institutions and customs offices through letters of credit. As of 31 March 2025 , the guarantees provided to banks amount to TRY351,692 thousand (31 December 2024 – TRY470,060 thousand) for loans used by the Group's consolidated companies and TRY27,785 thousand (31 December 2024 – TRY37,107 thousand) for derivative transactions.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 27 19. Commitments and contingent assets and liabilities (Continued) Collaterals, pledges, mortgages given by the Group as of 31 March 2025 and 31 December 2024 are as follows: 31 March 2025 31 December 2024 A. CPMs given for companies in the name of its own legal personality 29,981,546 41,146,316 - TRY 16,698,725 18,283,485 - USD 12,449,775 21,962,347 - EUR 833,046 900,484 - Other - - B. CPMs given on behalf of the fully consolidated companies 4,235,046 4,502,429 - USD 4,186,249 4,453,730 - EUR - - - Other 48,797 48,699 C. CPMs given for continuation of its economic activities on behalf of third parties - - D. Total amount of other CPMs - - i) Total amount of CPMs given on behalf of the majority shareholder - - ii) Total amount of CPMs given to on behalf of other Group - - iii) Total amount of CPMs given on behalf of third parties which are not in scope of C. - - Total 34,216,592 45,648,745 20. Equity The Company’s shareholders and their shareholding percentages as of 31 March 2025 and 31 December 2024 are as follows: 31 March 2025 Share (%) 31 December 2024 Share (%) Enerji Yatırımları A.Ş. 893,997 46.40 893,997 46.40 Koç Holding A.Ş. 122,298 6.35 122,298 6.35 Koç Family Members and Companies owned by Koç Family Members 9,155 0.47 9,174 0.47 Publicly held 901,346 46.78 901,327 46.78 Paid-in Capital 1,926,796 100.00 1,926,796 100.00 Adjustments to share capital (*) 40,260,071 40,260,071 Total Capital 42,186,867 42,186,867 (*) Capital adjustment differences represent the difference between the inflation-adjusted total amounts of cash and cash-like additions to paid-in capital and the amounts before inflation adjustment. As of 31 March 2025, the historical values and inflation adjustment effects of the following accounts under the Company's equity are as follows according to TFRS and TPL financial statements: 31 March 2025 (TFRS) Historical value Inflation adjustment effect Indexed value Share capital 1,926,796 40,260,071 42,186,867 Legal reserves 4,522,834 8,034,045 12,556,879 31 March 2025 (TPL) Historical value Inflation adjustment effect Indexed value Share capital 1,926,796 9,875,933 11,802,729 Legal reserves 8,289,352 10,124,330 18,413,682
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 28 20. Equity (Continued) The Company's registered capital ceiling is TRY500,000 thousand, divided into 50,000,000,000 shares, each with a nominal value of 1 kuruş ("kr."). The Company's issued capital consists of 192,679,559,799 ( 31 December 2024: 192,679,559,799) A group shares, each with a nominal value of 1 kuruş ( 31 December 2024 - 1 kr.), and one privileged C group share owned by the Privatization Administration. According to the Company's Articles of Association, the C group shareholder has the right to appoint one member. Any decision that may affect the fuel needs of the Turkish Armed Forces is subject to the approval of the C group shareholder. Accumulated profits at statutory values can be distributed, except for the provision related to statutory reserves mentioned below. Restricted reserves The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code (“TCC”). The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum until the tot al reserve reaches 20% of the Company’s paid -in share capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash distributions in excess of 5% of the paid-in share capital. Under the TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless the reserve exceeds 50% of paid-in share capital. In accordance with Turkish Financial Reporting Standards the aforementioned amounts should be classified under “Restricted Reserves”. On 31 March 2025 , the restricted reserves of the Company amount to TRY 12,556,879 thousand (31 December 2024 – TRY 15,526,386 thousand). Dividend distribution Listed companies distribute dividends in accordance with the Communiqué No. II-19.1 issued by the CMB which is effective from 1 February 2014. Companies distribute dividends in accordance with their dividend payment policies settled and dividend payment decision taken in general assembly and also in conformity with relevant legislations. The communiqué does not constitute a minimum dividend rate. Companies distribute dividends in accordance with the method defined in their dividend policy or articles of incorporation. In addition, dividends can be distributed by fixed or variable instalments and advance dividend can be paid in accordance with prof it on year-end financial statements of the Company. In accordance with the Turkish Commercial Code (TCC), unless the required reserves and the dividend for shareholders as determined in the article of association or in the dividend distribution policy of the company are set aside, no decision may be made t o set aside other reserves, to transfer profits to the subsequent year or to distribute dividends to the holders of usufruct right certificates, to the members of the board of directors or to the employees; and no dividend can be distributed to these persons unless the determined dividend for shareholders is paid in cash. The proposal to distribute a nominal amount of TRY29,300,000 thousand as cash dividend in two installments based on the company's net distributable profit for the year 2024, previous year earnings, extraordinary reserves and distributable general legal reserve funds with no restrictions on use, as determi ned by the TPL records within the interim period ending as of 31 March 2025, was approved at the Ordinary General Assembly meeting dated 27 March 2025. While making the relevant distribution, to full-taxpayer institutions and limited -taxpayer institution partners who obtain dividends through a workplace or permanent representative in Turkey; 778.49461% and TRY7.7849461 gross=net cash dividend share for each share with a nominal value of TRY1.00 in the first installment; and to other shareholders, 778.49461% and TRY7.7849461 gross for each share with a nominal value of TRY1.00.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 29 20. Equity (Continued) Dividend distribution (continued) It has been decided that 661.72041% and TRY6.6172041 net cash dividend be paid, and for the second installment 742.16486% and TRY7.4216486 gross=net cash dividend be paid; and to other shareholders 742.16486% and TRY7.4216486 gross for a share with a nominal value of TRY1.00; 630.84013% and TRY6.3084013 net cash dividend be paid; thus, to full taxpayer institutions and limited taxpayer institution partners who obtain dividends through a workplace or permanent representative in Turkey; a total of 1,520.65947% and TRY15.2065947 gross=net cash dividend be paid for a share with a nominal value of TRY1,00; It has been decided to distribute a total of 1,520.65947% gross dividend for a share with a nominal value of TRY1.00; a total of 1,292.56054% net dividend for a share with a nominal value of TRY1.00 to other shareholders. In this context, it has been decided that the payment date for the first installment of the nominal amount of TRY15,000,000. thousand, corresponding to 51.19% of the total nominal amount of TRY29,300,000 thousand to be distributed, will be determined as 28 March 2025, and the payment date for the second installment of the nominal amount of TRY14,300,000 thousand, corresponding to 48.81%, will be determined as 30 September 2025. In the first installment, the closed shares that are not traded on the stock exchange were paid on 28 March 2025, while the payment for the open shares was made on 3 April 2025. The proposal to distribute TRY20,000,000 as cash dividend from the remaining balance of the net distributable period profit for the year 2023, according to records prepared in accordance with TPL, after the allocation of the general legal reserve, for the period ending as of 3 1 December 2024 was approved at the Ordinary General Assembly Meeting dated 1 April 2024. While the relevant distribution is being made, one share with a nominal value of TRY1.00 and 1,037.99% is given to full -fledged corporations and limited taxpayer partners who receive dividends through a workplace or permanent representative in Turkey. TRY10.380 gross, TRY10.380 net dividend payment to other shareholders at a rate of 1,037.99% and a cash dividend of TRY10.380 gross and at a rate of 934.19% TRY9.342 net cash dividend was paid for one share with a nominal value of TRY1.00 . The company has decided to distribute a total of TRY23,000,000 in dividends from the balance remaining after the allocation of second -tier legal reserves covered by past year profits according to Capital Markets Board ("CMB") regulations and extraordinary reserves according to records prepared in accordance with TPL, following the Extraordinary General Assembly Meeting held on 24 September 2024. During the distribution, full taxpayer corporations and limited tax -payer corporate partners earning dividends th rough a business place or permanent representative in Türkiye received a gross = net cash dividend of TRY11,937 which is 1,193.69% for each share with a nominal value of TRY1.00; other shareholders at a rate of 1,193.69% and a cash dividend of TRY11 ,937 gross and at a rate of 1,074.32% and TRY10 ,743 net cash dividend was paid for one share with a nominal value of TRY1,00. 21. Revenue and cost of sales 1 January - 1 January - 31 March 2025 31 March 2024 Domestic revenue 120,875,849 179,645,972 Export revenue 39,550,672 51,131,800 Gross revenue 160,426,521 230,777,772 Less: Sales discounts (1,802,275) (2,226,485) Less: Sales returns (859) (26,397) Sales (net) 158,623,387 228,524,890 Cost of goods sold (145,458,378) (210,330,068) Gross profit 13,165,009 18,194,822
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 30 22. Expenses by nature 1 January- 1 January- 31 March 2025 31 March 2024 Raw material, manufactured and consumable material (131,195,769) (193,033,635) Personnel expenses (5,722,107) (5,549,504) Energy expenses (4,570,498) (5,816,196) Depreciation and amortization (Note 11-12) (3,003,126) (2,955,206) Outsourced services (2,328,211) (2,122,273) Repair, maintenance and maintenance expenses (2,378,188) (4,863,230) Transportation, distribution and storage expenses (1,123,173) (2,406,008) Insurance expenses (441,057) (452,146) Tax duties and fees (230,074) (219,014) Donations (140,150) (185,688) Lawsuit and consultancy expenses (129,251) (124,258) Advertising expenses (108,705) (99,907) Information technology expenses (107,829) (92,335) Subscription fees (94,770) (109,555) Transportation and travel expenses (76,325) (78,812) Rent expenses (47,829) (113,128) Office expenses (11,839) (18,139) Other (166,182) (174,345) Total expenses by nature (151,875,083) (218,413,379) 23. Other operating income /(expenses) 1 January- 1 January- Other operating income: 31 March 2025 31 March 2024 Credit finance gains 1,641,336 3,015,071 Foreign exchange gain from trade receivables 345,029 730,179 Rent income 25,819 11,847 Gain on bargain purchase (Note 3) (*) 7,831 - Other 369,802 228,633 Total other operating income 2,389,817 3,985,730 *The amount mentioned pertains to the acquisition of Eco Sun and Euromec companies. 1 January- 1 January- Other operating expense: 31 March 2025 31 March 2024 Foreign exchange loss from trade payables (3,582,555) (6,039,278) Credit finance charges (1,192,241) (2,103,115) Other (472,368) (459,328) Total other operating expense (5,247,164) (8,601,721) 24. Income/(expenses) from investment activities 1 January - 1 January - 31 March 2025 31 March 2024 Gain on sales of property plant and equipment and intangible assets 6,789 507 Financial investments fair value change - (996) Total income/(expense) from investment activities 6,789 (489)
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 31 25. Financial income/(expenses) 1 January- 1 January- 31 March 2025 31 March 2024 Financial income: Interest income on deposits 3,410,585 9,305,762 Foreign exchange gain on deposits 774,728 1,082,655 Gains on derivative instruments - 41,003 Total financial income 4,185,313 10,429,420 Financial expense: Interest expense (2,370,177) (1,765,259) Losses on derivative instruments (506,689) (51,232) Foreign exchange loss on borrowings (497,660) (4,092,639) Other (74,381) (44,982) Total financial expense (3,448,907) (5,954,112) Profits and losses arising from derivative instruments include gains and losses from forward foreign exchange transactions and interest rate swap transactions 26. Explanations regarding net monetary position gains/(loses) Non-monetary items 31 March 2025 Statement of financial position items (2,010,656) Financial investments 18,854 Inventories 1,707,879 Other current assets 408,285 Long-term financial investments 2,165,583 Tangible fixed assets and right of use assets 26,209,962 Intangible fixed assets 743,310 Other non-current assets 307,911 Deferred tax asset/(liability) (541,784) Capital adjustment differences (6,771,791) Other comprehensive income/expense not to be reclassified to profit or loss (115,531) Other comprehensive income/expense to be reclassified to profit or loss (2,512,664) Restricted reserves (1,667,766) Retained earnings (21,962,904) Income Statement Items (34,047) Revenue (3,607,828) Cost of sales 3,411,205 Research and development expenses: 1,288 Marketing expenses 53,047 General administrative expenses 90,659 Other income from main operations (132,202) Other expenses from main operations 172,606 Income from investment activities (638) Finance income (92,815) Finance expense 70,631 Net monetary position gains/(losses) (2,044,703) 27. Tax assets and liabilities 31 March 2025 31 December 2024 Current period corporate tax provision 68,868 2,649,440 Prepaid taxes (45,946) (1,752,428) 22,922 897,012
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 32 27. Tax assets and liabilities (Continued) Turkish tax legislation does not permit a parent company, its subsidiaries, and its joint ventures to file a consolidated tax return , Therefore, provisions for taxes, as reflected in these consolidated financial statements, have been calculated on an individual-entity basis. Corporate tax rate in Turkey as of 31 March 2025 is 25% (2024: %25), Corporation tax is payable on the total income of the companies after adjusting for certain disallowable expenses, corporate income tax exemptions (participation exemption, investment allowance, etc,) and allowances (as research and development expenditures deduction). The tax amounts reflected in the profit or loss statements for the years ending 31 March 2025 and 2024 are summarized below: 1 January - 1 January - 31 March 2025 31 March 2024 Tax income/ (expenses) Current tax expense (135,049) (725,654) Deferred tax income/(expense) (2,278,216) (1,313,940) (2,413,265) (2,039,594) The analysis of cumulative temporary differences and the related deferred tax assets and liabilities in respect of items for which deferred income tax has been provided as of 31 March 2025 and 31 December 2024 using the enacted tax rates are as follows: Cumulative temporary differences Deferred tax (liability)/asset 31 March 2025 31 December 2024 31 March 2025 31 December 2024 Investment incentives(*) - - 10,569,579 11,195,250 Accumulated deductible financial losses (**) (681,251) (683,528) 170,313 170,882 Property, plant, equipment and intangible assets 113,770,525 105,869,426 (23,860,587) (21,800,103) Employment termination benefits (1,438,670) (1,580,051) 359,667 395,002 Inventories (7,866,630) (10,817,090) 1,966,657 2,704,273 Provision for unused vacation liability (308,586) (272,363) 77,147 68,092 Deferred financial income (expense), net (216,888) (561,386) 54,222 140,347 Provision lawsuits (23,268) (39,919) 5,817 9,979 Derivative instruments (1,445,740) (1,934,594) 361,435 483,648 Other (3,823,631) 473,724 955,908 (107,409) Deferred tax assets, net (9,339,842) (6,740,039) (*) In the first quarter of 2011, within the scope of the decree of the Council of Ministers dated 14 July 2009 and numbered 2009/15199, the Company was granted a Large -Scaled Investment Incentive Certificate for Residuum Upgrading Project (RUP) , Investment expenditures made within the scope of this certificate are subject to 30% contribution from the government, where the contribution is provided as a reduction in corporate tax payable by 50%. As of 7 October 2013, Residuum Upgrading Project was granted Strategic Investment Incentive by Incentive Implementation and Foreign Investment Department of Ministry of Economy of Republic of Turkey which became applicable after 19 October 2012. Expenditures made within the scope of Strategic Investment Incentive Certificate are subject to 50% contribution from the government, where the contribution is provided as a reduction in corporate tax payable by 90%. The company has performed the revaluation of the unutilized investment incentives for both certificates by using the 3,3% revaluation rate. In addition to the government contribution within the scope of Strategic Investment Incentive, the Company benefits from VAT exemption, VAT refund, customs duty exemption, incentive for employer share of insurance premium and interest incentive from this certificate. There are two priority and one regional comprehensive incentive certificates for the expansion investments made by Körfez, on e of the company's subsidiaries . Within the scope of these 3 incentive certificates, in order to continue its main activities, investment expenditures were made for technical machinery as well as locomotives and wagon investments. With these documents, the company benefits from a 40% investment contribution rate, 80% corporate tax reduction, VAT exemption, customs tax exemption, employer's insurance premium support and interest support incentives. (**) The deferred tax effect of deductible financial losses is calculated separately for each company within the scope of consolid ation of the Group a deferred tax asset of TRY681,251 thousand is created from the deductible financial losses of TRY170,313 thousand on 31 March 2025, to be used within the next 5 years ( 31 December 2024: Deductible financial losses: TRY683,528 thousand deferred tax asset: TRY170,882 thousand).
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 33 27. Tax assets and liabilities (Continued) Tax advantages obtained under the investment incentive system: Earnings of the Group that are derived from investments linked to an investment incentive certificate are subject to corporate tax at discounted rates for a certain period, which starts when the investment starts to partly or fully operate and ends when the maximum investment contribution amount is reached. Within this scope, the Group has accounted for TRY 10,569,579 thousand ( 31 December 2024 : TRY 11,195,250 thousand) of tax advantages as deferred tax assets which are expected to be recovered in the foreseeable future in the consolidated financial statements as of 31 March 2025. TRY625,671 thousand of deferred tax loss is recognized in the consolidated profit or loss statement for the period between 1 January – 31 March 2025, from accounting of such deferred tax assets. Deferred tax assets are recognized for deductible temporary differences, carry forward tax losses and indefinite - life investment incentives which allows payment of corporate tax at discounted rates, as long as it is probable that sufficient taxable income will be generated in the future . In this context, the Group recognizes deferred tax assets from investment incentives based on long -term plans, including taxable profit projections derived from business models, which are re-evaluated at each balance sheet date to assess recoverability of such deferred tax assets. The Group expects to recover such deferred tax assets within 5 years from the balance sheet date . In the sensitivity analysis performed as of 31 March 2025 and 31 December 2024, when the inputs of key macroeconomic and sectoral assumptions that form the business plans are increased/decreased by 10%, there is no change in the projected 5-year recovery periods of deferred tax assets related to investment incentives . The movement of deferred taxes is as follows: 2025 2024 Deferred tax asset/(liability), net 1 January (6,740,039) 9,233,951 Charge for the period (2,278,216) (1,313,940) Charge to equity: - Hedging cash flow gains/(losses) (112,655) 1,805,541 - Acquisitions (Note 3) (218,942) - - Currency translation differences 10,010 - 31 March (9,339,842) 9,725,552 28. Earnings per share 1 January - 1 January - 31 March 2025 31 March 2024 Profit for the year attributable to shareholders of the Group 97,077 442,408 Weighted average number of Shares with nominal value of Kr1 each 192,679,559,800 192,679,559,800 Basic and diluted earnings per share in Kr 0.05 0.23
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 34 29. Related party transactions Related party transactions were classified according to the following groups and contain all descriptions in this footnote. (1) Joint ventures (2) Koç Holding group companies (3) Parent, indirect parent a) Deposits: 31 March 2025 31 December 2024 Yapı ve Kredi Bankası A.Ş. (2) 1,438,107 11,821,855 Total 1,438,107 11,821,855 b) Due from related parties: 31 March 2025 31 December 2024 Opet Petrolcülük A.Ş. (1) 7,612,909 8,455,526 THY OPET Havacılık Yakıtları A.Ş. (1) 749,284 685,249 Aygaz A.Ş. (3) 111,189 187,813 Opet Fuchs Madeni Yağ San. ve Tic. A.Ş. (1) 50,825 80,730 Other (2) 156,247 365,082 Total 8,680,454 9,774,400 As of 31 March 2025 , Tüpraş has TRY2,400,000 thousand trade receivables from related parties that it has collected from factoring companies (31 December 2024: None). c) Trade payables: 31 March 2025 31 December 2024 Zer Merkezi Hizmetler ve Ticaret A.Ş. (2) 287,478 324,014 Opet Petrolcülük A.Ş. (1) 270,162 302,224 Koç Sistem Bilgi ve İletişim A.Ş. (2) 126,684 139,360 RAM Sigorta Aracılık Hizmetleri A.Ş. (2) 123,767 50,600 Ark İnşaat San. Tic. A.Ş. (2) 54,377 88,516 Otokoç Otomotiv Tic. ve San. A.Ş. (2) 26,401 23,988 KocDigital Çözümler A.Ş. (2) 22,737 23,199 Divan Turizm İşletmeleri A.Ş. (2) 12,667 45,288 Moment Eğitim Araştırma Sağlık Hizmetleri ve Ticaret A.Ş (2) 412 66,171 Türk Traktör ve Ziraat Makineleri A.Ş. (2) 7 113,021 Other (2) 112,485 155,392 Total 1,037,177 1,331,773 d) Other payables: 31 March 2025 31 December 2024 Enerji Yatırımları A.Ş. (3) 6,634,928 - Koç Holding A.Ş. (3) 911,514 449,222 Temel Ticaret ve Yatırım A.Ş. (3) 37,257 - Koç Ailesi Üyeleri (3) 30,690 - Total 7,614,389 449,222 TRY7,610,527 thousand of other payables consist of dividend payables to related parties.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 35 29. Related party transactions (Continued) e) Advances given for property, plant and equipment 31 March 2025 31 December 2024 RMK Marine Gemi Yapım Sanayii ve Deniz Taşımacılığı İşletmesi A.Ş. (2) 402,050 1,213,009 Ark İnşaat San. Tic. A.Ş. (2) 135,368 23,646 Other (2) 188 - Total 537,606 1,236,655 f) Lease liabilities: 31 March 2025 31 December 2024 Otokoç Otomotiv Tic. ve San. A.Ş. (2) 141,227 152,518 Koç Ailesi Üyeleri (3) 72,137 80,462 Temel Ticaret ve Yatırım A.Ş. (3) 11,161 4,825 Zer Merkezi Hizmetler ve Ticaret A.Ş. (2) 5,527 6,083 Total 230,052 243,888 g) Product and service sales: 1 January - 1 January - 31 March 2025 31 March 2024 Opet Petrolcülük A.Ş. (1) 23,120,522 31,921,987 THY OPET Havacılık Yakıtları A.Ş. (1) 2,866,311 4,331,718 Aygaz A.Ş. (3) 1,020,597 741,319 Yapı ve Kredi Bankası A.Ş. (2) 254,162 98,504 Türk Traktör ve Ziraat Makineleri A.Ş. (2) 171,395 22,907 Arçelik A.Ş. (2) 156,342 307 Ford Otomotiv Sanayi A.Ş. (2) 140,490 239,200 Opet Fuchs Madeni Yağ San. ve Tic. A.Ş. (1) 35,506 136,842 Other (2) 492,350 232,107 Total 28,257,675 37,724,891 h) Product and service purchases: 1 January - 1 January - 31 March 2025 31 March 2024 Opet Petrolcülük A.Ş. (1) 760,733 2,189,964 Zer Merkezi Hizmetler ve Ticaret A.Ş. (2) 314,260 351,374 Koç Sistem Bilgi ve İletişim A.Ş. (2) 195,669 75,943 Koç Holding A.Ş. (3) (**) 121,370 116,638 Aygaz A.Ş. (3) 118,381 196,545 Ark İnşaat San. Tic. A.Ş. (2) 59,009 41,433 Arçelik Pazarlama A.Ş. (2) 45,694 2,549 Setur Servis Turistik A.Ş. (2) 39,331 52,109 Otokoç Otomotiv Tic. ve San. A.Ş. (2) 37,514 31,110 Opet Fuchs Madeni Yağ San. ve Tic. A.Ş. (1) 32,192 37,122 THY OPET Havacılık Yakıtları A.Ş. (1) 28,364 42,213 Divan Turizm İşletmeleri A.Ş. (2) 15,089 14,152 Ram Sigorta Aracılık Hizmetleri A.Ş. (2) (*) 10,504 53,453 Other (2) 48,540 61,018 Total 1,826,650 3,265,623 (*) It includes the paid and accrued premium amounts within the scope of policies signed with insurance companies which are not related parties, via Ram Sigorta Aracılık Hizmetleri A.Ş. which operates as an insurance agency. (**) Consists of the Group’s share of invoices issued by Koç Holding, the ultimate parent of Tüpraş in accordance with the “11-Intra-group Services” of General Communique numbered 1 on Distribution of Hidden Income through Transfer Pricing which represents the services provided for financing, legal, tax and remuneration of senior management by the ultimate parent to its group companies.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 36 29. Related party transactions (Continued) i) Fixed asset purchases: 1 January - 1 January - 31 March 2025 31 March 2024 Ark İnşaat San. Tic. A.Ş. (2) 86,340 774,983 KocDigital Çözümler A.Ş. (2) 85,161 - Koç Sistem Bilgi ve İletişim A.Ş. (2) 74,355 668,423 Other (2) 2,479 115,526 Total 248,335 1,558,932 j) Remuneration of board of directors and executive management: Tüpras’ senior executives have been determined as the Chairman and Members of the Board of Directors, the General Manager, Assistant General Managers and Directors directly reporting to the General Manager . For the period ending on 31 March 2025, the total amount of benefits provided to the Company's top executives is adjusted by 31 March 2025 purchasing power TRY33,448 thousand (31 March 2024 –TRY32,834 thousand). k) Time deposit interest income: 1 January - 1 January - 31 March 2025 31 March 2024 Yapı ve Kredi Bankası A.Ş. (2) 421,782 3,312,821 Total 421,782 3,312,821 l) Donations: As of 31 March 2025 , total donation amount paid to related parties is TRY 49 thousand (31 March 2024 – TRY666 thousand), 30. Financial instruments and financial risk management The Group’s activities expose it to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest rates . The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group. Credit risk: The Group is exposed to credit risk due to trade receivables arising from forward sales and deposits held in banks. The Group management mitigates credit risk related to receivables from customers by setting credit limits for each customer individually and, if necessary, by obtaining collateral. For customers deemed risky, sales are made only through cash collection. The Group's collection risk mainly arises from trade receivables. Trade receivables are evaluated by the Group management considering past experiences and current economic conditions, and after allocating an appropriate amount of provision for doubtful receivables, they are presented net in the consolidated balance sheet.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 37 30. Financial instruments and financial risk management (Continued) Credit risk (Continued): Credit risks of the Group for each financial instrument type as of 31 March 2025 and 31 December 2024 are as follows: 31 March 2025 Receivables Bank deposits Deriative instruments Other Trade Receivables Other Receivables Related Parties Other Parties Related Parties Other Parties Maximum exposed credit risk as of reporting date 8,680,454 35,755,197 123,485 355,871 46,670,970 3,927,631 - - Secured portion of the maximum credit risk by guarantees, etc, - 4,654,558 - - - - - A, Net book value of financial asset either are not due or not impaired 8,680,454 35,114,975 123,485 355,871 46,670,970 3,927,631 - B, Net book value of overdue but not impaired financial assets - 640,222 - - - - - C, Net book value of the impaired assets - - - - - - - - Overdue(gross book value) - 7,325 - 8,647 - - - - Impairment (-) - (7,325) - (8,647) - - - - Secured portion of the net value by guarantees, etc,* - - - - - - - - Not due yet (gross book value) - - - - - - - - Impairment (-) - - - - - - - - Secured portion of the net value by guarantees, etc, - - - - - - - D, Components which are including credit risk except financial statement - - - - - - - 31 December 2024 Receivables Bank deposits Deriative instruments Other Trade Receivables Other Receivables Related Parties Other Parties Related Parties Other Parties Maximum exposed credit risk as of reporting date 9,774,400 31,027,782 - 209,810 80,934,206 1,669,202 - - Secured portion of the maximum credit risk by guarantees, etc, - 2,877,526 - - - - - A, Net book value of financial asset either are not due or not impaired 9,774,400 29,944,026 - 209,810 80,934,206 1,669,202 - B, Net book value of overdue but not impaired financial assets - 1,083,756 - - - - - C, Net book value of the impaired assets - - - - - - - - Overdue(gross book value) - 8,062 - 9,525 - - - - Impairment (-) - (8,062) - (9,525) - - - - Secured portion of the net value by guarantees, etc, - - - - - - - - Not due yet (gross book value) - - - - - - - - Impairment (-) - - - - - - - - Secured portion of the net value by guarantees, etc, - - - - - - - D, Components which are including credit risk except financial statement - - - - - - - Maturity analysis of past due and not impaired trade receivables 31 March 2025 Receivables Bank deposits Deriative instruments Other Trade Receivables Other Receivables Overdue (1-30 days) 600,960 - - - - Overdue (1-3 months) 25,251 - - - - Overdue (3-12 months) 13,251 - - - - Overdue (1-5 years) 760 - - - - Overdue (5+ years) - - - - - Total 640,222 - - - - 31 December 2024 Receivables Bank deposits Deriative instruments Other Trade Receivables Other Receivables Overdue (1-30 days) 749,532 - - - - Overdue (1-3 months) 326,939 - - - - Overdue (3-12 months) 7,276 - - - - Overdue (1-5 years) 9 - - - - Overdue (5+ years) - - - - - Total 1,083,756 - - - - During the impairment test of financial assets, the Group considered the indicators regarding uncollectibility of receivables that are due . The Group has guarantees received amounting to TRY 599,872 thousand (31 December 2024: TRY30,644 thousand) for trade receivables overdue but not impaired. Major part of receivables without guarantees are from government entities which regularly make sales, and any collection risk is not projected.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 38 30. Financial instruments and financial risk management (Continued) Credit risk (Continued) The credit quality of trade receivables that are neither past due nor impaired The Group categorizes the details of credit quality of trade receivables that are neither past due nor impaired or receivables whose conditions are examined under four groups. The details of credit quality of such trade receivables as of 31 March 2025 and 31 December 2024 are as follows: 31 March 2025 31 December 2024 Group 1 453 - Group 2 5,360,791 8,200,408 Group 3 38,314,959 31,190,766 Group 4 119,226 327,252 Total 43,795,429 39,718,426 Group 1 - New customers (less than three months) Group 2 - State owned enterprises Group 3 - Existing customers with no payment defaults in previous periods (have been customers by more than three months) Group 4 - Customers with previous record of collection delays but from which all receivables due are collected (Excluding Group 1 and 2) Market risk: Tüpraş identifies commodity price, interest rate and currency risk as major components of market risk, foreign exchange and interest risk are evaluated separately based on portfolio and product. Commodity price risk The Company is exposed to effects of fluctuation in oil prices related to its crude oil inventory held for production. For the elimination of commodity price risk, the management regularly reviews the amount of stocks. Sales prices’ of Tüpraş’s products are determined based on Mediterranean product prices, which is described as the "closest accessible free market formation in the world" by the Turkish Petroleum Market Law N, 5015, and USD selling rates. Within the framework of legal definitions, changes of prices in Mediterranean petroleum products market and changes in USD exchange rate are assessed daily by the management and the new selling price based on these two factors is updated when it differs significantly upwards or downwards from the current sales price. Since instability in crude oil prices may cause unwanted and unexpected fluctuations in net profit and cash flows, the Company has consituted hedging policy in order to eliminate this risk, within this framework, short- and long-term hedging transactions are made by using various derivative instruments (Note 18). Product crack risk Besides the fluctuations in crude oil prices, in order to eliminate fluctuation risk in product prices profit margins of the products (crack) can be fixed by using various derivative instruments (hedging). Therefore, a hedging policy has been created by comparing historical price levels and by hedging a certain percentage of the total sales volume at certain crack levels (Note 18). Foreign exchange risk The Group is exposed to foreign exchange risk due to operations in foreign currency . These risks are managed by analysis of the foreign currency monetary assets and liabilities in the consolidated financial statements, by a comprehensive risk tracking system which includes natural hedging and similar practices .
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 39 30. Financial instruments and financial risk management (continued) Market risk (Continued): Foreign exchange risk (continued) The table below summarizes the net balance sheet foreign currency position risk and components that are managed within the risk tracking system of the Group as at 31 March 2025 and 31 December 2024. 31 March 2025 31 December 2024 TRY USD(*) TRY(**) USD(*) Monetary assets 20,751,951 549,493 30,659,657 790,853 Monetary liabilities (86,579,665) (2,292,553) (111,529,210) (2,868,137) Monetary assets / (liabilities) foreign currency position (65,827,714) (1,743,060) (80,869,553) (2,077,284) Non-monetary assets 346,241 9,168 776,478 20,029 Net foreign currency position of derivative financial instruments 2,493,267 66,019 8,780,829 226,498 Net foreign currency asset / (liability) position (62,988,206) (1,667,873) (71,312,246) (1,830,757) Cash flow hedging 1,931,446 51,143 352,826 9,101 Net foreign currency position after cash flow hedging (61,056,760) (1,616,730) (70,959,420) (1,821,656) Inventory in natural hedge scope (***) 65,406,221 1,731,899 67,323,156 1,736,573 Net foreign currency position after cash flow hedging and natural hedge 4,349,461 115,169 (3,636,264) (85,083) (*) Dollar equivalent amounts are determined through dividing total TRY equivalent positions to exchange rate of dollar as at bal ance sheet date. (**) Previous year's TRY equivalent amounts of guarantees with original balance amounts in foreign currency have been prepared on the basis of 2025 purchasing power. (***) The Group manages its foreign currency risk arising from foreign currency denominated financial liabilities and trade payable s by regularly considering and reflecting the foreign exchange rate changes in the determination of petroleum product prices . As of 31 March 2025, the Group has crude oil and petroleum products inventories amounting to TRY65,406,221 thousand (31 December 2024: TRY67,323,156 thousand).
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 40 30. Financial instruments and financial risk management (Continued) 31 March 2025 31 December 2024 TRY equivalent USD EUR GBP Other TRY equivalent USD EUR GBP Other (In terms of functional currency (In terms of functional currency(*) Trade receivables 3,819,979 100,825 301 - - 1,696,194 43,602 145 - - Monetary financial assets (including cash, banks) 16,931,972 353,719 85,296 2,088 - 28,963,463 650,496 92,176 360 - Other 346,241 6,919 1,266 685 - 776,478 15,529 3,666 538 - Current assets 21,098,192 461,463 86,863 2,773 - 31,436,135 709,627 95,987 898 - Total assets 21,098,192 461,463 86,863 2,773 - 31,436,135 709,627 95,987 898 - Trade payables 73,606,320 1,923,345 23,055 649 - 99,557,353 2,540,075 24,147 2,211 - Financial liabilities 2,086,794 49,333 4,737 633 - 3,033,314 72,436 4,876 574 - Other monetary liabilities 6,242,532 166,000 50 (586) - 5,044,492 130,879 - (604) - Other payables 97,130 - 483 1,588 - 309,509 7,481 - 400 - Current liabilities 82,032,776 2,138,678 28,325 2,284 - 107,944,668 2,750,871 29,023 2,581 - Financial liabilities 4,546,889 94,434 22,323 1,474 - 3,584,542 65,149 24,257 1,600 - Non-current liabilities 4,546,889 94,434 22,323 1,474 - 3,584,542 65,149 24,257 1,600 - Total liabilities 86,579,665 2,233,112 50,648 3,758 - 111,529,210 2,816,020 53,280 4,181 - Net asset/(liability) position of off-balance sheet foreign currency derivatives 2,493,267 142,711 (71,159) - - 8,780,829 290,634 (61,484) - - Total amount of off-balance sheet derivative financial assets 50,513,581 1,407,743 15,300 - (3,273,409) 67,760,591 1,747,857 - - - Total amount of off-balance sheet derivative financial liabilities (48,020,314) (1,265,032) (86,459) - 3,273,409 (58,979,762) (1,457,223) (61,484) - - Net foreign currency asset/(liability) position (62,988,206) (1,628,938) (34,945) (985) - (71,312,246) (1,815,759) (18,777) (3,283) - Amounts subject to cash flow hedge accounting 1,931,446 51,143 - - - 352,826 9,101 - - - Net foreign currency position after cash flow hedging (61,056,760) (1,577,795) (34,945) (985) - (70,959,420) (1,806,658) (18,777) (3,283) - Net monetary foreign currency asset/(liability) position (65,730,584) (1,778,568) 35,432 (82) - (80,560,045) (2,114,441) 39,041 (3,421) - Fair value of derivative instruments Used for hedging 18,221 482 - - - (60,812) (1,569) - - - (*) Previous year's TRY equivalent amounts of guarantees with original balance amounts in foreign currency have been prepared based on 2025 purchasing power.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“TRY”) in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.) 41 30. Financial instruments and financial risk management (Continued) The table below summarizes the effect of foreign currency rate changes on net balance sheet foreign currency position of the Group as of 31 March 2025 and 31 December 2024. Statement of foreign currency risk sensitivity 31 March 2025 Profit/Loss Equity Appreciation of Depreciation of foreign currency Appreciation of Depreciation of foreign currency foreign currency foreign currency 10% change in USD rate: USD net assets/ liabilities (6,716,869) 6,716,869 (237,741) 237,741 Amount hedged for USD risk (-) 849,410 (849,410) - - USD net effect (5,867,459) 5,867,459 (237,741) 237,741 10% change in EUR rate Euro net assets/ liabilities 144,213 (144,213) - - Amount hedged for Euro risk (-) (289,632) 289,632 - - EUR net effect (145,419) 145,419 - - TOTAL (6,012,878) 6,012,878 (237,741) 237,741 Statement of foreign currency risk sensitivity 31 December 2024 Profit/Loss Equity Appreciation of Depreciation of foreign currency Appreciation of Depreciation of foreign currency foreign currency foreign currency 10% change in USD rate: USD net assets/ liabilities (8,197,226) 8,197,226 (244,049) 244,049 Amount hedged for USD risk (-) 1,387,596 (1,387,596) - - USD net effect (6,809,630) 6,809,630 (244,049) 244,049 10% change in EUR rate Euro net assets/ liabilities 157,879 (157,879) - - Amount hedged for Euro risk (-) (248,642) 248,642 - - EUR net effect (90,763) 90,763 - - TOTAL (6,900,393) 6,900,393 (244,049) 244,049 The Group accounted investment loans in scope of cash flow hedge accounting and foreign exchange income / expense arising from these loans are recognised in equity . 10% increase and decrease effect of foreign exchange rates are calculated with the same method and the calculated foreign exchange gains / losses are presented as hedged portion in the foreign exchange sensitivity table . Furthermore, the hedged portion of foreign exchange gains / losses via forwards and cross currency swap transactions is classified as the amount hedged against the US dollar in the statement of exchange rate sensitivity analysis.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 42 30. Financial instruments and financial risk management (Continued) Export and import 1 January - 1 January - 31 March 2025 31 March 2024 Export USD (equivalent of thousand TRY) 44,283,577 51,319,500 Total 44,283,577 51,319,500 Import USD (equivalent of thousand TRY) 157,147,615 176,154,208 Total 157,147,615 176,154,208 Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debt . The gearing ratios as of 31 March 2025 and 31 December 2024 are as follows: 31 March 2025 31 December 2024 Total financial liabilities (Note 7) 21,074,817 20,899,461 Less: Cash and cash equivalents (Note 5) (32,292,983) (66,626,227) Less: Financial investments (Note 6) (26) (26) Net financial liabilities (11,218,192) (45,726,792) Total shareholders’ equity 286,509,048 315,052,811 Total capital invested 275,290,856 269,326,019 Gearing ratio (4.08%) (16.98%) Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The estimated fair values of financial instruments have been determined by the Group, using available market information and appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to estimate the fair value , Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Group could realise in a current market exchange. Financial liabilities The fair values of short-term financial liabilities and other financial liabilities are estimated to be their fair values since they are short term . The fair values of long -term bank borrowings with variable interest are considered to approximate their respective carrying values, since the initial rates applied to bank borrowings are updated periodically by the lender to reflect active market price quotations.
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 43 30. Financial instruments and financial risk management (Continued) Fair value hierarchy table: The Group classifies the fair value measurement of each class of financial instruments according to the source, using the three-level hierarchy, as follows: Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted) Level 2: The fair value of financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions . Assumptions and inputs used in valuation techniques include risk -free and benchmark interest rates, credit spreads and other variables used in estimating discount rates, bond and equity prices, foreign currency exchange rates, equity and equity index pric es and expected price volatilities and correlations. Level 3: Valuation techniques does not contain observable market inputs Fair value hierarchy table as of 31 March 2025 is as follows: Financial assets at fair value in statement of financial position Level 1 Level 2 Level 3 Derivative financial assets - 3,927,631 - Financial invenstments - 26 - Lands - 74,896,033 - Financial liabilities at fair value in statement of financial position Derivative financial liabilities - 5,180,075 - Fair value hierarchy table as of 31 December 2024 is as follows: Financial assets at fair value in statement of financial position Level 1 Level 2 Level 3 Derivative financial assets - 1,669,202 - Financial invenstments - 26 - Lands - 74,478,921 - Financial liabilities at fair value in statement of financial position Derivative financial liabilities - 3,616,757 -
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TÜRKİYE PETROL RAFİNERİLERİ A.Ş. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2025 (Amounts expressed in thousands of Turkish Lira (“T RY”) in terms of the purchasing power of the T RY at 31 March 2025, unless otherwise indicated.) 44 31. Additional information for the cash flow statement The cash flow statements are presented together with the consolidated financial statements. The details of the lines 'Adjustments for provisions' and 'Adjustments for impairment loss (reversal of impairment loss) of inventories ' shown in the consolidated cash flow statements are as follows: 1 January- 1 January- 31 March 2025 31 March 2024 Adjustments for provisions: Provisions for cost expense 1,082,265 192,414 Provision for demurrage 246,986 586,716 Provision for employment termination benefits 98,249 143,280 Provision for unused vacation 86,262 174,131 Provision for EMRA participation share 60,030 445,794 Provision for seniority incentive bonus 22,047 56,357 Provisions for pending claims and lawsuits (13,294) 4,092 Total 1,582,545 1,602,784 1 January- 1 January- 31 March 2025 31 March 2024 Adjustments for impairment loss (reversal of impairment loss) of inventories: Provision for inventory impairment (71,983) (226,438) Total (71,983) (226,438) 32. Subsequent Events None. ……………