Global Investment Holdings (“GIH”), a diversified conglomerate operating in 14 different countries across 4 continents, announced its full year consolidated results which ended 31 March 2023, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 237mn TL in Q1 2023, compared to a net profit of TL 77mn in Q1 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 98% in Q1 2023 over Q1 2022, reaching TL 1.8bn; while Consolidated Operating EBITDA rose 173% to TL 482mn in the same period.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:
“Once again, my sincere condolences for all our citizens who lost their lives in the earthquake that occurred on 06.02.2023 and devastated us as nation. The enormous damage we have witnessed requires long-term and comprehensive support. To help bind up the wounds, all of our Group Companies have provided and continue to provide any aid to the region since the early moments of the earthquake; while also taking part in permanent projects to help those who are left behind can hold on to life.”

“Having left a very successful year behind and recovered from the pandemic despite various challenges, I am pleased to say that we have made a promising start to 2023 with a robust Q1 performance. Our major business lines demonstrated strong revenue, EBITDA and Net Profit generation, with record earnings from Ports and Gas businesses. I am confident that this momentum will only continue to build and drive success for the rest of the year.”

The Chairman emphasize that: ”I couldn’t be more excited that we have successfully completed our investment in Nassau Cruise Port, the single largest port in the Caribbean, and are set to reap the rewards of this investment, with the port’s grand opening on May 25th, marking the start of a new chapter in our success story. Our unwavering commitment to delivering excellence has driven this accomplishment, and we look forward to creating new opportunities and achieving even greater heights in the future”

The Chairman continued: “In the first quarter of 2023, cruise business continued to accelerate and we encountered a stronger-than-expected demand for cruising, which has translated into a robust booking environment and led to higher occupancy rates. I am glad to see that booking window is completely back to normal and all major cruise lines have reported record booking trends for 2023; hence expecting occupancy levels to reach historical records by summer 2023. The global cruise fleet was effectively fully deployed by the start of the important Caribbean winter season and the Caribbean cruise market experienced the strongest recovery in occupancy levels. On GPH front, despite Q1 being the low season in the Mediterranean; thanks to our geographic diversification and presence in the Caribbean, we have eliminated the seasonality impact to a large extent.

Average occupancy rate of the cruise ships visiting GPH’s ports was 103.2% in February 2023 as opposed to a mere 47% in February 2022. Looking into the rest of the year, current call reservations at GPH’s consolidated cruise ports for Apr 2023- Mar 2024 period are 4,632, implying passenger volumes in excess of 11.8 million (Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m). 

The Chairman added, “As you may recall, we ended 2022 operating in 27 cruise ports across 14 countries. I am pleased to inform you that in the first quarter of this year, the joint venture in which GPH owns an 80% stake, Servicios Portuarios Canarios (“Sepcan”) has signed a 15-year cruise port concession for the operation of the Alicante Cruise Port, following the award of preferred bidder status by the Port Authority of Alicante. We are excited to begin this new venture and look forward to expanding our presence in the region.”

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:
“As known, Naturelgaz had an outstanding and a profitable year in 2022. In order to share this success with its investor, the company distributed a total dividend of 350 mn TL from its 2022 distributable profit. Global Investment Holdings received a dividend flow of 245 mn TL, which corresponds to our 70% stake in Naturelgaz in April 2023. After a remarkable 2022 despite a challenging environment, we are glad to announce a robust set of results in the first quarter of 2023, which we expect to continue for the coming nine months.”

Global Investment Holdings reported 1.8 bn TL revenues (excluding IFRIC-12 Construction Revenue) in Q1 2023, indicating a robust 98% increase yoy with strong contribution from major business divisions, with gas division, ports and brokerage&asset management divisions contributing the most.

Global Investment Holdings’ consolidated operating EBITDA soared by 173% in Q1 2023 yoy and reached 482mn TL, driven by a solid contribution from major business divisions, especially due to the returns from the ports business. Increase in inflation was higher than the increase in FX rates, which put pressure on EBITDA margins in some of our business lines such as mining and power.

GIH reported a consolidated net profit of 236.8mn TL in Q1 2023, compared to a net profit of TL 77mn in Q1 2022. The bottom line incorporated TL 232.3mn of non-cash charges of which TL 224.8mn was depreciation and amortization, and TL 7.5mn in net foreign exchange loss.
Depreciation and amortization charges, increased from TL 172.4mn in Q1 2022 to TL 224.8mn in Q1 2023.

The Group’s net interest expenses increased from TL 44.6mn TL in Q1 2022 to TL 151.5mn in Q1 2023, mainly driven by the increase in LIBOR and depreciation of TL in Q1 2023 yoy.

On a divisional basis:
On the ports side, average occupancy rates of the cruise ships visiting GPH`s consolidated ports in February 2023 reached 103.2% as opposed to a mere 47% in February 2022. Number of calls at GPH`s ports in March 2023 was 24% higher than March 2022 level, while passenger movements at GPH ports in March 2023 standalone was 127% higher than March 2022 level. Current cruise call reservations at GPH’s consolidated cruise ports for Apr 2023- Mar 2024 period are 4,632, implying passenger volumes in excess of 11.8 million. Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m.

In line with occupancy rates returning to normal and full deployment of the global cruise fleet. Revenue and EBITDA generation continued to accelerate:
Revenues (excluding IFRIC-12 Construction Revenue) surged by 173% in Q1 2023 compared to Q1 2022, reaching TL 466mn , while adjusted EBITDA jumped by 413% compared to Q1 2022 reaching TL 262,5mn in Q1 2023

Naturelgaz, sales volume reached 75mn Sm3 in Q1 2023, representing an increase of 11% yoy. Citygas sales volume increased by 46% yoy, reaching 51.2mn Sm3. Revenues increased by 85% yoy in Q1 2023, reaching TL 850mn, reflecting the increase in sales volume especially in Citygas, Bulk CNG and the increase in gas prices. EBITDA increased by 75% yoy in Q1 2023, reaching TL 112mn. The decrease in seasonality thanks to the increase in Citygas sales volume, effective cost management, and the effects of price differentials due to the higher-than-expected increases in natural gas price index contributed significantly to the EBITDA growth.

Naturelgaz’s net cash surplus amounting to 335mn TL as of December 31, 2022, increased to TL 500mn net cash surplus as of March 31, 2023. In addition, Naturelgaz distributed a dividend payment of TL 350 mn to shareholders on April 4, 2023. (GIH received TL 245 mn dividend corresponding to its 70% stake.)

The power division’s revenues, operations of which include distributed power (cogeneration/ trigeneration), biomass and solar based renewable energy production, and wholesale energy services, have risen 33% yoy in Q1 2023, generating 167mn TL. The division generated 42mn TL EBITDA in Q1 2023, indicating an 11% increase yoy. The main reason for the limited increase compared to the same period of the previous year is the negative impact of the rising TL inflation rates affecting both production and operational costs.

The mining division The Company realized 138,542 tons of product sales volume in Q1 2023, up by 12% yoy, despite steady decrease in feldspar demand in export markets driven by the recession in Europe, thanks mainly to striking increase in demand from local markets. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 88,020 tons while domestic sales volume was realized at 50,522 tons for the period.

The company announced revenues of 100mn TL in Q1 2023, indicating 46% increase YoY. Sustaining sales volume was mainly driven by the improvement and diversification of customer portfolio. The operating EBITDA was 18mn TL in Q1 2023, indicating an 18% decline yoy. The decline in EBIDTA was mainly due to the increase in inflation rates affecting the cost base, realizing higher than the increase in product sales prices in the same period.

The real estate registered 7,9mn TL increase in revenues and 3,3mn TL increase in EBITDA in Q1 2023 yoy, with revenues and EBITDA standing at 22,5mn TL and 9,7mn TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations

The brokerage & asset management division revenues stood at 174mn TL in Q1 2023, registering a 176% increase yoy, thanks to the contribution from increasing transaction volumes and full consolidation of İstanbul Asset Management, while operating EBITDA was 57mn TL registering a 215% increase yoy

Indebtedness:
Holding consolidated net debt stood at 583.9 mn USD (TL 11.2 bn) at the Q1 2023. Meanwhile, excluding GIH, consolidated gross debt of our operational divisions stood at 532.8mn USD. (Ports division: $497.1mn).

Consolidated Net Debt/EBITDA multiplier declined further to 3.5x at Q1 2023 year-end from 3.8x at 31.12.2022 (2021 year-end: 11.6x). However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier declines to 2.6x at Q1 2023 from 2.8x at 31.12.2022. When entire ports business is excluded, Net Debt/EBITDA multiplier is 1.0x at Q1 2023

For further information, please contact:
GIH Investor Relations
Tel: +90 212 244 60 00
E-mail: investor@global.com.tr

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