GIH 9M 2024 Financial Results
11 November 2024
Global Investment Holdings (“GIH”), a diversified conglomerate operating in 19 different countries across 4 continents, announced its 9-month consolidated results which ended 30 Sept 2024, and commented on recent developments.
Global Investment Holdings reported Consolidated Net Profit of 1.1bn TL in 9M 2024, compared to a net profit of 597mn TL in 9M 2023. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) is 12.5bn TL; while Consolidated Operating EBITDA is 5.2bn TL.
Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:
“We have left behind an exceptionally challenging quarter, marked by ongoing macroeconomic difficulties and geopolitical sensitivities. In such an environment, as Global Investment Holdings, we have focused on areas where we can make an impact and have continued our mission to create value for all our stakeholders.
In the third quarter, despite inflationary pressures and challenging market conditions, our resilient and strategically diversified structure continued to support our operational profitability. We aim to maintain this performance in the final quarter of the year.
I am pleased to share with you one of the most significant recent developments. “As of August 9, 2024, GPH has been delisted from the London Stock Exchange and is now a private company. As part of this process and following the tender offer for our indirect subsidiary, Global Ports Holding Plc (GPH), our Group purchased a total of 23,835,233 GPH shares at a price of 4.02 USD per share. Additionally, it was decided to convert our Company’s 23.9 mn USD receivables from GPH into shares through a capital increase (5,945,273 new shares). Following these transactions, our Group’s ownership in GPH’s issued share capital has now increased to 90.30%. I believe private ownership will enable GPH to better execute its strategy of continuing to expand and develop its cruise port portfolio globally, without the distraction, challenges and costs of the requirements of being a publicly listed company.”
The Chairman continued: “Consus Enerji’s offer was accepted for a tender announced by the Ministry of Energy and Transport of the Commonwealth of the Bahamas and the Bahamas Power and Light Company for the electricity needs of two islands, including 65 MW natural gas and solar power plants, and 20 MW storage systems, with a total capacity of 85 MW, and for the sale of electricity at a unit price based on US Dollars for a period of 25 years. The investment process for the project is anticipated to be completed by 2026, with the power plants being commissioned and becoming fully operational. To participate in the tendered project with a 49% partnership, Consus Bahamas Energy Ltd., a wholly owned subsidiary of Consus Enerji, has been successfully incorporated in the Commonwealth of the Bahamas.”
Naturelgaz also increase in sales volume was mainly driven by Citygas sales. The number of districts and towns reached 129 by the end of Sep 2024.
İstanbul Asset Management has also had a good third quarter in 2024. Assets under management have increased substantially to over 106bn TL as of September 2024. Meanwhile, our Group’s asset management companies’ combined AUM recorded 54% increase YTD, reaching c.109bn TL.“
Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:
“We have completed a challenging quarter, marked by macroeconomic difficulties and geopolitical uncertainties. Throughout this period, as Global Investment Holdings, we continued to support our operational profitability through our diversified structure. I am also pleased to share that, as previously committed, we fulfilled our dividend payment of 80mn TL in October.”
Global Investment Holdings reported 12.5bn TL revenues (excluding IFRIC-12 Construction Revenue) in 9M 2024, indicating a 4% increase yoy on an inflation adjusted basis.
Global Investment Holdings’ consolidated operating EBITDA is 5.2bn TL in 9M 2024 indicating a 13% increase yoy on an inflation adjusted basis.
GIH reported a consolidated net profit of 1,1bn TL in 9M 2024, compared to a net profit of 597mn TL in 9M 2023, indicating 84% increase yoy. The bottom line incorporated non-cash expenses of depreciation & amortization amounting to 1,8mn TL and net foreign exchange loss amounting to 118mn TL.
On a divisional basis:
On the ports side,
Number of calls at GPH`s consolidated ports in Jan-Sep 2024 was 23% higher than Jan-Sep 2023 levels, while number of passengers visiting GPH`s consolidated ports in Jan-Sep 2024 was 30% higher than 2023 levels.
Average occupancy rates of the cruise ships visiting GPH`s consolidated ports reached 113% in Aug 2024.
Revenues surged by 23% in 9M 2024 compared to 9M 2023, reaching TL 6,096mn, while adjusted EBITDA jumped by 22% compared to 9M 2023 reaching 3,882bn TL in 9M 2024.
Naturelgaz, Sales volume reached 215mn Sm3 in 9M 2024, representing an increase of 24% yoy.
Citygas sales volume increased by 35% yoy, reaching 100mn Sm3 .
Due to inflation accounting and decline in natural gas prices, revenues decreased by 10% yoy, standing at 3,654bn TL in 9M 2024 yoy, despite volume growth. EBITDA was flat yoy, standing at 691mn TL
Gross profit was flat yoy, standing at 856mn TL, based on company standalone financials.
Profit before tax, increased by 139% yoy, reaching 215mn TL in 9M 2024, based on company standalone financials.
The power division, reported 982mn TL revenues in 9M 2024, indicating a 18% decrease. The lower Market Clearing Price (PTF) compared to the same period of the previous year and the implementation of inflation accounting practices were influential in the mentioned decrease in consolidated revenues.
EBITDA decreased by 5% to 292mn TL in 9M 2024 yoy.
The mining division, because of the decline in demand from the local and European markets, achieved a sales volume of 191,513 tons in 9M 2024, representing a 28% decrease yoy.
The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 147,046 tons while domestic sales volume was realized at 44,467 tons for the period.
The mining division announced revenues of 388.5mn TL in 9M 2024 with 22% decrease.
The operating EBITDA was 89mn TL in 9M 2024, indicating 19% decline yoy. The decline in EBITDA was mainly attributable to lower sales volume as well as contracting operating margins as a result of higher inflation rates compared to fx rate hikes. The increasing focus on high value-add products provided a positive impact on EBITDA performance, largely compensating the decline in sales volume.
The real estate division registered 4% decrease in revenues and 7% increase in EBITDA in 9M 2024 yoy, with revenues and EBITDA standing at 158mn TL and 78mn TL, respectively.
The brokerage & asset management division revenues stood at 1,156mn TL 9M 2024, registering a 8% increase yoy, thanks to the contribution from increasing transaction volumes, while operating EBITDA was 240mn TL registering 26% decrease yoy.
Indebtedness:
Holding consolidated net debt stood at 966mn USD (32.9bn TL) at 9M 2024. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 1.0bn USD. (Ports division: 938mn USD).
For further information, please contact:
GIH Investor Relations
Tel: +90 212 244 60 00
E-mail: investor@global.com.tr
