Bloomberg News

Tupras Cut to Neutral From Buy at Goldman Sachs on Iran Oil Risk

March 13, 2012

Tupras Turkiye Petrol Rafinerileri AS (TUPRS), Turkey’s sole refiner, was reduced to neutral from buy at Goldman Sachs Group Inc. (GS) as the company may need to cut its purchase of cheaper Iranian oil.

“Pressure on Turkish banks due to sanctions on Iran is making it increasingly difficult for Tupras to buy Iranian crude, a key leg of our Buy case,” the report by Goldman analysts including Henry Morris in London said. “Our Buy case was based on the company’s unique ability versus its peers to purchase cheap Middle Eastern crudes. In particular the option to process Iranian crude.”

Goldman lowered its target price on the shares to 49 liras from 54 liras.

“Despite this setback, Tupras remains in a better position than any of its peers, with a captive market for its products in Turkey and an enviable position right next to the major oil supply regions of Middle East, Russian and Caspian,” the report said.

Tupras rose for the first time in three days, up 0.7 percent to 42.1 liras, as of 10:33 a.m. in Istanbul.

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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