Page 76 - TURKRptSept19

On July 19, Fitch Ratings downgraded Tupras to BB- from BB+ following a sovereign downgrade of Turkey.
Fitch said it believed the commissioning of the STAR refinery, operated by Azerbaijani competitor Socar, would be rating-neutral for Tupras with no material impact on the company's results forecast.
Tupras is owned by Koc Group, Turkey’s largest conglomerate. Some 49% of shares in the refiner are traded on the stock exchange.
Norway’s sovereign wealth fund holds a 1.02% stake in Tupras.
Tupras operates a total of four refineries in Izmit, Izmir, Kirikkale and Batman, with a total annual crude oil processing capacity of 28.1mn tonnes (561,000 barrels per day).
In October 2017, Tupras issued a $700mn seven-year bond with a yield of 4.5%.
Switzerland-based Stadler Rail and Korfez Ulastirma, the logistics affiliate of Turkey’s largest refinery Tupras, have signed a contract for the supply of seven Co'Co' hybrid locomotives of the EURODUAL type, as well as spare parts and a full service maintenance agreement for eight years. The first locomotive is expected to be delivered by 2021 and Korfez Ulastirma will use them in freight transport services. Korfez Ulastirma, a wholly owned subsidiary of Tupras, became the first private operator in Turkey to secure a licence for freight transportation since the government began issuing licences for the use of its main lines two years ago. The company started operations in December 2017 and transports around 3mn tonnes of products annually. It owns some 440 wagons and has 10 owned/leased locomotives.
● Others
Petkim’s net income declined by 14% y/y to TRY319mn in Q2 while revenues rose by 32% y/y to TRY3.11bn. The market also expected a TRY319mn profit in the quarter.
Aygaz’s net income declined by 19% y/y to TRY121mn in Q2, beating the market expectation of TRY94mn. H1 profit also declined to TRY131mn from TRY204mn a year ago.
Istanbul-based conglomerate Tekfen Holding has announced that Azfen, a 40% subsidiary of Tekfen Construction and Installation Co. Inc., has signed a $195mn contract with BP Exploration (Caspian Sea) Ltd. As part of the agreement, Azfen will manufacture, assemble and deliver a single integrated deck comprising a topside platform, drilling facilities and living quarters, with a total weight of 16,936 tonnes. “Duration of work is 38 months from commencement date of the contract. Total value of the contract is
76 TURKEY Country Report September 2019 www.intellinews.com