Global Investment Holdings (GIH or the Group) reports consolidated revenues of TL280.5mn for the first half of 2016, representing an increase of 20% compared to the same period last year; while announcing a consolidated EBITDA of TL79.3mn.

GIH announced its financial results for H1 2016. According to the disclosure, consolidated net revenues reached TL280.5mn compared to TL234.1mn last year, representing an increase of 20%.  All business divisions under the Company contributed to this increase, with the Port and Power/Gas/Mining divisions contributing the most.

GIH also announced that, in the first half of 2016, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to TL79.3mn, compared to an EBITDA of TL77.7mn in the same period last year.

On a divisional basis, the Group’s Port Division revenues reached TL153.9mn in the first half of 2016, representing 28% increase over the same period of 2015. A significant portion of this increase is attributable to the contributions from the Group’s cruise port operations. Although affected by the seasonality and the tension in East Med; thanks to GPH’s well diversified cruise port network, GPH ports excluding Turkey managed to organically increase  total cruise passengers by 1.6% YoY in H1 2016. The increase was mainly driven by Singapore and Barcelona. When Valletta Cruise Port (VCP) acquisition effect for H1 2015 is excluded, total passenger base including Turkey indicates a pleasing 11.2% YoY inorganic increase in H1 2016. On the other hand,  the division’s EBITDA was TL83.1mn in H1 2016 compared to an EBITDA of TL62.2mn in H1 2015, indicating 34% increase. Despite the seasonality effect in both cruise and partially commercial segments as well as tension in the East Med, GPH managed to maximize revenue and EBITDA creation, in 1H 2016 thanks to contributions from Valletta Cruise Port since its acquisition in November 2015,   increasing share of turnaround passengers driven by Barcelona and Malaga, tariff flexibility at operational ports due to underlying concessions as well as tariff adjustments. Apart from the contribution of Group’s cruise business, GPH revenues – which are mainly denominated in USD and EUR – further benefited from the depreciation of TL in value against those currencies during the first half of 2016.

The Power/Gas/Mining Division reported revenues of TL97.2mn in the first six months of 2016, representing a 4% increase over the same period in 2015, mainly driven by the Company’s feldspar mining and power generation operations. Naturelgaz revenues stood at TL70.0mn as compared to TL77.7mn over the same period in 2015. GIH’s Power/Gas/Mining Division EBITDA consisted of CNG, feldspar mining and energy efficiency operations.  Reported EBITDA was TL9.6mn in H1 2016 compared to a TL12.5mn in H1 2015. 2015 figure included gains from asset sales amounting to 2.0mTL. Other than this, the decline is mainly attributable to lower average gas sales prices in 1H 2016 compared to 1H 2015, which is in line with the budget. Also, the shift of projected gas sales to some customers (asphalt and food) from the first half to the second half of the year has resulted in a temporary decrease in EBITDA.

GIH reported a consolidated net loss of TL45.1mn in H1 2016, compared to a net loss of TL51.6mn in H1 2015. The reasons for the loss were non-cash depreciation charges, and increase in net interest expenses. Depreciation and amortisation charges have increased from TL65.0mn in H1 2015 to TL77.7mn in H1 2016. Also, the Group has incurred TL70.8mn net interest expenses in 2016.

Commenting on the recent developments, GIH’s CFO, Kerem Eser, underlined the significance of the recent addition of Venice Cruise Port to GPH’s Portfolio. “The Terminals are in a strategic position, not only due to the uniqueness of Venice, but also the location. Venice attracts c.22mn tourists per annum, where VTP passengers make up for 1.6mn of those annually as of 2015. Moreover, Venice is one of the rare ‘marquee’ cruise destinations, where the city centre and the port are so closely linked, with a transit system which represents a good infrastructure. Mr. Eser also mentioned that,  “in line with its aggressive inorganic growth strategy, GPH started negotiations on the share purchase of operating companies of Brindisi, Cagliari, Catania and Ravenna Cruise Ports in Italy to further solidify GPH’s dominant presence in the Mediterranean.  After Venice Cruise Port, once the acquisitions of the other Italian ports are completed, Global Ports’ passenger base is expected to boost to an astounding c.7.5mn. ” 

Mr. Eser, further commented on the highlights of the first half of the year, indicating that a proposal was approved, pursuant to Resolution of GIH’s General Assembly, to distribute a gross TL 0.051680, and a net TL 0.043928 per share in August, implying a dividend yield of 3.3%.

He further stated that aside from its CNG and Mining operations, the Group will continue its growth policy in renewable energy generation, by further developing its solar energy and biomass projects all the while seeking new opportunities in this budding sector.

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