Turkey’s petrochemical firm manages to post profit

Turkey’s petrochemical firm manages to post profit

İZMİR/ISTANBUL - Hürriyet Daily News
Turkey’s petrochemical firm manages to post profit

Petkim’s industrial complex in the Aegean province of İzmir is seen. DHA photo

Petrochemicals maker Petkim posted a net profit of 1.15 million Turkish Liras ($595,000) in the second quarter, finishing in the black despite forecasts that it would lose 9 million liras.

Turkey’s sole petrochemical company managed to record a slight profit thanks to low naphtha prices, production optimization and the positive impact of market-oriented sale policies on profit margins.
It posted a 31.4 million-lira loss in last year’s second quarter.

However, despite returning to profit, Petkim’s sales fell 18 percent to 930.3 million liras.

Volatility in demand produced the drop in turnover, Petkim General Manager Sadettin Korkut said Aug. 16 in a statement released by the company after the announcement of the figures.

“Stagnation continued its rising trend in the second quarter from May on, but the fall in prices has begun to pick up since the second half of May,” he said.

However, prices in the petrochemical market were not immune to market speculation that rose after the United States’ Federal Reserve said it would taper its bond-buying program soon, and they fell like all other commodities through June, Korkut said.

In addition to positive reflection of production optimization and dynamic market-oriented sales policies on the profits, the decline in naphtha prices cut the expenses of the petrochemical giant.

Petkim port to be trade hub

Petkim has been controlled by Socar Turkey, the Turkish enterprise of Azeri energy giant Socar, since its privatization in 2008.

Socar has introduced several upgrade and expansion programs for the complex in the Aegean province of İzmir, including the $2.5 billion Star refinery, a wind power plant and a container port.

The planned Petkim container port is one of the projects that will transform Izmir’s Aliağa district, where it is located, into a hub for trade between Europe, Asia and Eurasia, Aliağa Chamber of Commerce Chairman Adnan Saka told Anadolu Agency on Aug. 16.

The Turkish Transportation Ministry has also been building another port in the region, North Aegean Port, which is slated to be one of world’s largest 10 harbors when it is completed.

“When the North Aegean and Petkim Container ports are completed, they will draw the eastern Mediterranean’s freight, which has been heading to … Malta for years, over here,” Saka said.

Petkim has begun to build the container port in cooperation with one of the world’s largest port management groups, the Danish APM Terminal group, Yavuz said, adding that it would become operational within 20 months.