Global Investment Holdings Announces Consolidated Net Revenues of TL66.5mn for Q1 2014

Global Investment Holdings (GIH or the Group) reports consolidated revenues of TL66.5mn for the 1st Quarter of 2014, representing an increase of 54% compared to the same period last year.

GIH announced its financial results for the first quarter of 2014. According to the disclosure, the consolidated net revenues reached TL66.5mn compared to TL43.2mn, representing an increase of 54% for the same period last year. The TL23.3mn difference is due to the robust operating performance of all main business divisions in the group portfolio. Port and Energy Divisions, in particular, were the largest contributors to the group consolidated revenues.

GIH also announced that, at the end of first quarter of 2014, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to TL11.0mn, compared to TL5.5mn for the same period last year, including TL2.8mn in goodwill gains from asset acquisitions.

On a divisional basis, the Group’s Port Division revenues reached TL36.3mn in the first quarter of 2014, representing a 64% increase over the same period in 2013. Commercial port activities, and, in particular, the operational performance of the Port of Antalya and the Port of Bar were instrumental in the increase. The Group’s Port Division reported an EBITDA of TL15.8mn in Q1 2014, compared to an EBITDA of TL8.6mn for the same period in 2013, representing an improvement of 84%. The Port of Bar and the Barcelona Port, the two most recent additions to the Group’s ports portfolio, contributed to consolidated EBITDA by TL1.3mn and TL1.7mn, respectively.

The Energy Division reported revenues of TL22.7mn in the first quarter of 2014. The division revenues in the first three months of 2014 included sales from CNG and mining operations. Reported EBITDA was TL3.3mn in the first quarter of 2014 compared to a TL2.4mn in the same period of 2013, including TL2.8mn in goodwill gains from asset acquisitions.

GIH reported a net loss of TL26.5mn in Q1 2014, versus a consolidated net loss of TL19.8mn in Q1 2013. The main reasons behind the loss in Q1 2014 were depreciation and amortization charges of TL20.0mn (an increase of TL8.4mn compared to the same period in 2013) and foreign exchange differences amounting to TL2.7mn incurred on Group’s long term loans (an increase of TL1.9mn compared to the same period in 2013).

The Chief Financial Officer of the Group, Kerem Eser, commenting on the highlights of the previous quarter, indicated that following the undisputable success of its Turkish ports, the Port Division has been maintaining its focus on inorganic growth overseas. “In that vein, after the acquisition of 43% of the Barcelona Port in partnership with RCCL, the Division signed a preliminary protocol to increase its shares to 78.07%. The container volume of the Port of Bar which was acquired last year, grew by 42% and contributed TL5.9mn to consolidated revenues. Subsequently, the consortium won the Lisbon Port tender in January 2014 and the concession agreement is expected to be signed upon securing the necessary permissions.
Furthermore, Mr. Eser underlined that, the Energy Division made substantial progress in the first quarter of 2014. “Naturelgaz’s CNG sales volume increased by 72% in the first quarter, compared to same period last year, and with the contribution of the new contract with Çaykur secured in Q1 2014, the Company’s profitability will increase significantly in 2014.”
Finally, Mr. Eser indicated that Tres Enerji, the Group’s power solution company (tri/co-generation) and Straton, the feldspar mining company, which were acquired last year started to contribute positively to consolidated figures in the first quarter of 2014. Also helped with the ongoing investments, both companies were expected to show substantial volume improvements during the year.

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About GIH
Global Yatırım Holding A.Ş. (Global Investment Holdings) was regrouped as a holding company on October 2004 (www.globalyatirim.com.tr) to hold a diversified portfolio of investments in a number of businesses, including infrastructure, real estate, energy, and financial services. Global Investment Holdings is listed on the Borsa Istanbul (as “GLYHO.IS”) and utilizes its experience in the finance sector, for industrial business opportunities.