Tüpraş Investor Presentation August 2019
Financial Policy
Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty risk, commodity,
interest rate and currency exposure.
Leverage
& Liquidity
Counterparty
Risk Policy
Interest
Rate & Fx
Proactive in liquidity risk management & targets/limits for financial ratios:
Net financial debt/EBITDA
Net financial debt/Equity
Current ratio
Share of long term debt
Deposit is kept within bank-based limits.
Credit rating assessment and strong capital base.
Cap on the maximum deposit allocated to a single bank.
Threshold for deposits subject to banks shareholders' equity.
The fixed/floating profile of financial debt.
Proactive management of FX risk with derivative instruments
Zero FX exposure target.
Inventory Hedging Policy:
Commodity
Hedging
Policy
Operational hedge: Optimum stock policy & forward pricing mechanism.
Financial hedge: Expected inventory exposure for the year end is hedged by using derivatives.
Hedging ratio increasing throughout the year.
Crack Margin Hedging Policy:
Financial hedge: Crack margin (gasoline, diesel, jet fuel, fuel oil) risk mitigation by using derivatives.
Statistical mechanical approach: Historical average prices + standard deviations.
Hedge ratio between %0-%50 with up to 1 year hedge tenor.
Investor Presentation
www.tupras.com.tr
KEY FINANCIALS
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