Tupras Turkiye Petrol Rafinerileri AS (TUPRS), Turkey’s sole oil refiner, headed for the biggest decline in two weeks as crude prices slipped after the possibility of a military strike against Syria waned.
Tupras shares fell 2.5 percent, poised for the biggest drop since Sept. 3, to 42.40 liras at the 3:09 p.m. in Istanbul, paring this month’s advance to 5.5 percent. Almost 1.1 million shares traded, about 1.4 times the three-month daily average, according to data compiled by Bloomberg. The Borsa Istanbul National 100 (XU100) Index rose less than 0.1 percent to 74,290.12.
Brent crude futures fell for a second day following a weekend agreement between the U.S. and Russia on disarming Syria’s chemical weapons that eased the threat of an imminent military strike. The commodity is down 6.1 percent from a seven-month high of $116.61 on Aug. 28. Syria’s border with Iraq puts the country as near as 240 kilometers (150 miles) to almost a fifth of the production capacity of the Organization of Petroleum Exporting Countries, data compiled by Bloomberg show.
“Oil’s decline won’t affect refinery margins in the short run, but investors think it may hurt inventories,” Erdem Kayli, an analyst at Ata Invest in Istanbul, said by phone. “Tupras is negatively affected from oil price volatility that comes with rising regional tension.”
Kocaeli, Turkey-based Tupras reported second-quarter net income of 137.6 million liras ($69 million), up 1.4 percent from the same period last year. The refiner’s net margin dropped 28 percent to $2.63 per barrel, according to an investor presentation on its website.
Tupras trades at 10.1 times estimated 12-month earnings, data compiled by Bloomberg show. That compares with a multiple of 14 for Poland’s PKN Orlen SA and 11.3 for Israel’s Paz Oil Co. (PZOL) Three analysts recommend buying shares of Tupras, while 23, including Ata Invest’s Kayli, say hold and seven recommend selling, according to data compiled by Bloomberg.
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