Turkish oil refiner Tupras, owned by Koc Holding, posted an 87% jump in fourth-quarter profit, helped by higher refining margins.

Net profit was 213 million lira ($84.7 million) in the last three months of the year, compared with 114 million lira in the same period of 2013, according to a filing.

The company had been expected to post a net 155 million lira, according to a Reuters poll of seven brokerages.

“In the fourth quarter, increased maintenance globally, unplanned refinery outages and slowing supply, along with quickly falling crude oil prices, saw Mediterranean refining margins (widen),” Tupras said in an e-mailed statement.

Full-year profit was 22% higher at 1.46 billion lira, while sales declined 3% to 39.7 billion lira, it said.

“Despite a 55 million lira provision against a tax fine, forex-related gains … of 88 million lira was the main reason for the outperformance on the bottom line,” said analysts at Deniz Invest in a note.

Looking ahead, Tupras said it expects production to hit 27.5 million tonnes in 2015, or 95% of capacity usage, once its $2.7 billion residuum upgrade project (RUP) is fully commissioned this month. Output was 21 million tonnes last year.

Tupras said it will invest another $60 million to complete the RUP, part of total investments of $220 million this year.

Source: Trade Arabia