BGC Partners: PETKM 4Q18 Earnings Review... Worse
Petkim reported a net loss of TL44mn (vs. TL365mn net profit in 4Q17) in 4Q18, worse than market consensus of TL77mn net profit and our expectation of TL55mn net profit. The company posted an EBITDA of TL75mn (-84% YoY) in 4Q18, lower than market consensus of TL185mn and our expectation of TL173mn. Main deviation from our expectations was a lower than expected gross profit possibly due to inventory loss and weaker petrochemical margins. On a cumulative basis, net profit and EBITDA reached TL872mn (-38% YoY) and TL1,478mn (-17% YoY) in 2018, respectively. We expect the earnings announcement to have a negative impact on the stock performance. We expect Petkim to distribute a gross DPS of TL0.25 (TL408mn total dividend), pointing to a dividend yield of 4.5%.Petkim Petrokimya Holdings is engaged in the production of petrochemical products. The product portfolio of Co. comprises goods such as thermoplastics, fibers, and raw material for paints, products which constitute primary inputs for a number of industries. These products are also used for the plastic, chemical, packaging, piping, paint, construction, agriculture, automotive, electricity, electronics, and textiles industries, as well as the pharmaceutical, detergent, and cosmetics sectors. Co. sells its products in the domestic market and in international markets.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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