Bloomberg News

Iran Sanctions May Cost Tupras $160 Million, Ekspres Says

January 04, 2012

Jan. 4 (Bloomberg) -- A disruption in the supply of Iranian oil from any new sanctions may trim $160 million from Turkish refiner Tupras Turkiye Petrol Rafinerileri AS earnings this year, Istanbul-based brokerage Ekspres Invest said.

Tupras signed a contract in August with the National Iranian Oil Co. to purchase 9 million metric tons of crude a year, and imports under that agreement continue, the company said today in response to Bloomberg questions.

Turkey’s government “will be against the sanctions due to the economic damage they could cause in Turkey,” which imports around 30 percent of its oil from neighboring Iran, Ekspres said in a report today. The problem could be exacerbated as a disruption would increase demand for foreign currency in Turkey, where the central bank is battling to defend the lira after a drop of 18 percent last year, the brokerage said.

Oil imports from Iran are currently paid in lira, Ekspres said.

Turkey is likely to get a “waiver” should any new sanctions pushed for by the U.S. be imposed on Iran, and further dips in the company’s share price should be seen as opportunities to buy, Ekspres said.

Tupras shares sank 6.5 percent to 38.70 liras in Istanbul trading today.

--Editors: Peter Branton, Stephen Kirkland

To contact the reporter on this story: Benjamin Harvey in Istanbul at

To contact the editor responsible for this story: Gavin Serkin at

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