Fitch expects growth in revenues of petrochemical complex of SOCAR in Turkey
Baku, Azerbaijan, Dec. 24
By Azad Hasanli - Trend:
Consolidated revenues of the Petkim petrochemical complex owned by Azerbaijan’s state oil company SOCAR in Turkey will be about 2 billion Turkish liras in 2019, Trend reports via Fitch Ratings, the international rating agency.
The Fitch Ratings report has affirmed Petkim’s Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook.
Petkim’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) are expected at 1.7 billion liras in 2018 (1.8 billion liras in 2017) before growing to 2.2 billion liras in 2020 as prices and sales volumes recover, according to the report.
Turkey’s GDP growth is expected at 0.6 percent in 2019, down from 3.5 percent in 2018, before the recovery towards 3.9 percent in 2020, according to Fitch’s forecasts.
“We expect elevated domestic inflation and unemployment to hit sales volumes and prices, particularly in construction-exposed high-density polyethylene (PE) and PVC markets, in 2019,” reads the report.
“We expect Petkim to fully realize its $65 million-$70 million of annual savings on logistic costs once the STAR refinery [also owned by SOCAR in Turkey] ramps up by mid-2019,” the report said.
Petkim produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported. The production capacity of Petkim is 3.6 million tons per year. The complex includes 14 plants that produce 20 different types of products.
The production capacity of Petkim is 3.6 million tons per year.
Petkim shareholders are SOCAR Turkey Petrokimya AS (51 percent), while 49 percent is in free circulation on the stock exchange.
(1 USD = 5.2841 TRY on Dec. 24)
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