Petkim achieves a historical 59-year record-breaking net profit of TRY 5.5 billion in 2021

In a period in which demand was increasing for petrochemical products while supply shortages prevailed, Petkim’s diverse product portfolio and uninterrupted production led to a record-breaking net profit, on the basis of both dollars and liras. Petkim closed off 2021 with a net profit of TRY 5.5 billion.

Petkim, a company in the SOCAR Türkiye group, Türkiye’s largest industrial holdings corporation, announced its financial results for 2021. Accordingly, Petkim completed 2021 with a record-breaking net profit in terms of both dollars and TRY. Petkim’s year-end net profit for 2021 stands at TRY 5.5 billion. Petkim’s total sales in 2021 rose by 137 percent over 2020, reaching TRY 28.7 billion.

Commenting that this achievement was due to the production that was made possible through the company’s wide range of products in its portfolio, SOCAR Türkiye Refinery and Petrochemical Business Unit President and Petkim General Manager Anar Mammadov said, “As in 2020, hygienic needs rose in 2021," + " causing a rise in particular in packaging materials. Bolstered by the continuous operation of the STAR Refinery, Petkim’s capacity utilization rate rose from 87.9 in 2020 to 92.6% in 2021. This result pointed once again to how appropriate it was to invest in the STAR Refinery. Despite the restrictions forced by the pandemic, we continued to provide local exporting manufacturers with products to keep up their production levels.”

Besides sales from production, Petkim also increased its commercial sales over the last period, The share of Petkim’s commercial sales within total sales surpassed 33 percent, resulting in a profit of 65 million dollars from sales. Adding that the company had spent 2020 trying to maintain strong liquidity in order to be ready for the uncertainties caused by the pandemic, Anar Mammadov continued to say that in 2021, the company was able to optimize liquidity and reduce finance expenditure. This way, he commented, short term debts were brought down compared to the year before " + "by 460 million dollars. He continued, “Thanks to our effective financial risk management during 2021, we also registered a drop in net interest expenditure.” Mammadov further said, “Another element that contributed to our success in 2021 was that we further strengthened the initiative we had started in 2016 to create value and achieve optimization.”

“WE CONTINUE TO CONTRIBUTE TO THE COUNTRY’S ECONOMY WITH A CORPORATE TAX PAYMENT OF TRY 1.1 BILLION”

Anar Mammadov remarked, “In this period, when not only sales from production but also commercial sales increased, our strong performance as a company was evidenced in the creation of a substantial financial value for our country’s economy through a TRY 1.1 billion payment accruing on the basis of our annual profit. Besides these achievements, our company’s environmental, social and corporate governance performance led to our placement in the top 10 companies in the ESG ratings in our category. I believe that our economic success and our " + "performance in the context of meeting our sustainability targets in the midst of the adverse circumstances prevailing in global markets, are more meaningful than they have ever been.

Mammadov explained that another gratifying development in 2021 had been the extension and increase effected in the company’s strategic investment incentive certificate.