Tupras exposed to weak lira, forex moves - HSBC

19 November 2008 15:06  [Source: ICIS news]

PRAGUE (ICIS news)--HSBC has revised down the outlook for Turkey's Tupras oil and petrochemicals group on its very large exposure to foreign exchange positions that could be hit by the weakening new Turkish lira, the bank's analysts said on Wednesday.

HSBC cut its Tupras price target from lira (TL) 32 a share to TL26.50 a share, but kept the stock's “overweight” rating.

In its third-quarter financial statement issued last week, Tupras said the weakness of the Turkish lira, which has fallen around 30% against the dollar this year with further depreciation likely, cost it lira TL615m ($370m, €294m) in October.

Tupras recorded an 18% rise in net profit to TL427.3m in the third quarter compared with the same period last year, with sales up 56% to TL9.5bn.

Turkish business leaders are lobbying the government to arrange a new deal with the IMF to re-establish investor confidence in Turkey following the expiry in May of a $10bn stand-by loan.

($1 = TL1.66/€1 = TL2.09)

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By: Will Conroy
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