The effect of privatization on Tüpraş's financial indicators and a comparative analysis with a European oil company

The purpose of this study is to conduct financial analysis of the Turkish Petroleum Refineries Corporation (TUPRAS) starting from the pre-privatization period, to reveal the financial & non-financial indicators at the time of the public and private sectors, as well as the comparative study of financial analysis with a European refinery, to determine common and different points and evaluate the results. TUPRAS, as an industrial enterprise that has strategic importance, it is among the most important companies of Turkey. Due to the special structure, its activities could affect the whole of Turkey economically and socially. In all aspects, TÜPRAS is one of the leading companies that its financial indicators worth careful examination. The importance of this study is to reveal the long-term financial analysis results of TUPRAS, to determine the similarities and differences in the public and private sector periods, and to evaluate the results by comparing them with a European oil company, Hungary-based MOL Group. As a result of this study it has been observed that; the equity-weighted financing structure before privization of TUPRAS has turned into a liability-weighted structure, current ratio declined due to short-term borrowing but continued to maintain cash strength, borrowings are transferred to investment and especially the tangible fixed assets has increased significantly, the company activities continue to be maintained effectively and profitability has increased significantly due to the investments, but the profitability has not been reflected in the results due to the effect of financing expenses in recent years. In comparison of TUPRAS and MOL, it is concluded that; despite TUPRAS's liability -weighted structure, MOL has more equity-weighted structure, the liquidity ratios of MOL and the effectiveness of its activities in general are lagging behind TUPRAS, although the profitability of MOL is in a decreasing trend, the recent profitability performance of MOL is better than TUPRAS.