JCR Eurasia Rating has revised the ratings of Global Investment Holdings as ‘BBB+ (Trk)’ and ‘BB+’ on the long term national and international scale and affirmed the outlooks on the ratings as ‘Stable’. The sovereign rating of Republic of Turkey was downgraded by one notch to ‘BB+’ on April 10, 2020. The Holding’s Long Term International Ratings, which were previously assigned as ‘BBB-’ are downgraded by one notch to ‘BB+’ and aligned with sovereign rating of Republic of Turkey. Additionally, despite the fact that the outlook of Turkey’s sovereign rating is determined as ‘Negative’ by Japan Credit Rating Agency Ltd. On April 10,2020, JCR Eurasia Rating has assigned ‘Stable’ outlooks on the international long and short term local currency rating perspectives of Global Investment, considering the Holding’s foreign currency generation capacity.

In its periodic review, JCR Eurasia Rating has evaluated Global Investment Holdings (“GIH”) and the Ongoing Bond Issues in an investment-level category on the national scale and revised the ratings on the Long Term National Scale from ‘A- (Trk)’ to ‘BBB+ (Trk)’ and the Long Term International Scale from ‘BBB-’ to ‘BB+’ with ‘Stable’ outlooks. Moreover, the ratings for the outstanding or prospective debt instrument issuances determined as ‘BBB+ (Trk)' for the long term and ‘A-2 (Trk)' for the short term. Additionally, GIH’s Short Term National Rating changed at ‘A-2 (Trk) / Stable’. The rating action is driven by the Covid-19 pandemic that has engulfed the world is causing unprecedented disruption to both global economies and the global travel sector. On the other hand, GIH’s resilience was also confirmed by JCR Eurasia Rating. Despite the fact that the outlook of Turkey’s sovereign rating is determined as ‘Negative’ on April 10,2020, JCR Eurasia Rating has assigned ‘Stable’ outlooks on the international long and short term local currency rating perspectives of Global Investment, considering the Holding’s foreign currency generation capacity.

Global Investment Holdings’ main shareholders are deemed adequate in terms of financial power considering the diversification of sectors involved and competitive advantage. In this regard, the major shareholders have the adequate willingness and experience to ensure long-term liquidity and equity within their financial capability when required and the Company's Sponsor Support Grade has been determined as (2), which denotes adequate external support.

The Stand-Alone grade, denoting GIH’s ability to fulfil the liabilities with its own resources, has been determined as (B), indicating that level of capacity to utilize internal resources are adequate, considering the GIH’s activities in different sectors, income generation capacity and equity and indebtedness levels.

Other notes and details of the ratings are:

Long Term International Foreign  Currency	:	BB+/ (Stable Outlook)
Long Term International Local Currency	:	BB+/ (Stable Outlook)
Long Term International Issue Rating	:	BB+
Long Term National Local Rating	:	BBB+ (Trk) / (Stable Outlook)
Long Term National Issue Rating	:	BBB+ (Trk)
Short Term International Foreign Currency	:	B / (Stable Outlook)
Short Term International Local Currency	:	B / (Stable Outlook)
Short Term International Issue Rating	:	B
Short Term National Local Rating	:	A-2 (Trk) / (Stable Outlook)
Short Term National Issue Rating	:	A-2 (Trk)
Sponsor Support	:	2
Stand Alone	:	B

 

Having incorporated sustainability to its business model, Global Investment Holdings (“GIH”) is again among the BIST Sustainability Index constituents, along with other Borsa Istanbul companies which demonstrate high performance in sustainability.

Global Investment Holdings was assessed to be listed again in the BIST Sustainability Index. Global Investment Holdings’ comprehensive policies in areas related to sustainability and improvements in specific environmental indicators as well as countering bribery reporting played an important role in being listed again in the new period of BIST Sustainability Index, which provides companies reputational and competitive advantages.

The BIST Sustainability Index, which was established with the aim of increasing understanding, knowledge and practices of sustainability among Borsa Istanbul companies, evaluated companies according to the environment, biodiversity, climate change, human rights, board structure, anti-bribery, supply chain, occupational health and safety criteria. As a result of the evaluation conducted by the independent research and rating agency Vigeo EIRIS, 58 companies have managed to be listed in the index.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated that: “2020, marking the 30th anniversary of the Group foundation, continues to be a uniquely challenging year due to the impact of Covid-19. I want to emphasise that the health and safety of our employees is always our first thought and never more so than at this challenging time in the face of the global coronavirus crisis. Ensuring the business continuity and providing humanitarian assistance to our employees and across our regions of presence are our key priorities today. At the same time, we must act responsibly to protect the long-term success of GIH and deliver on our commitments to all stakeholders that rely on our global role. As Global Investment Holdings, we have made sustainability the focus of all our operations since our establishment; and our robust and diversified portfolio and our capable management team give me confidence that we will continue to contribute to the development of Turkey and to provide our shareholders with sustainable returns through responsible investment. We are pleased to be included in the BIST Sustainability Index again this period, which provides a reliable option for investors in the stock market. Moreover, we continued to improve our Corporate Governance Rating score thanks to our fair, accountable and responsible management structure.”

In the scope of Capital Markets Board’s (“CMB”) Communiqué on “Rating Activities and Rating Agencies in Capital Markets”, Global Investment Holdings’ Corporate Governance Rating has been reviewed by Kobirate Uluslararası Kredi Derecelendirme ve Kurumsal Yönetim Hizmetleri A.S. (Kobirate International Credit and Corporate Governance Rating: "Kobirate”). Accordingly, Global Investment Holdings’ Corporate Governance Rating has been upgraded to 9.12 (out of 10.0) from 9.06 a year ago, indicating that the Company achieved a substantial compliance with CMB’s Corporate Governance Principles.

Kobirate has reviewed Corporate Governance Practices of Global Investment Holdings under four main categories, while improvements in “Board of Directors” and “Public Disclosure & Transparency” categories contributed to the overall rating improvement. More specifically, the set up of the Nomination and Remuneration Committee (Board of Directors); as well as the continuation of enhanced scope and content of the annual report (Public Disclosure & Transparency), had a positive impact on the overall rating.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated that: "We are proud to be amongst best performers in corporate governance practice in Turkey. We have taken corporate governance as an integral part of our corporate culture, and we progress with “responsible investment” mentality. Such approach affects the decision-making mechanism of Boards of Directors that shape the future of the company.

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that, the Port Network Authority of the Ionian Sea ("Port Authority") has awarded Global Ports Holding a 20-year concession to manage the services for cruise passengers in the Port of Taranto, Italy.

The cruise port infrastructure in Taranto is currently undergoing a state funded, c€28m investment program, including the building of a new cruise terminal. The construction of these new facilities is expected to be completed by the end of 2020.

GPH and Port Authority will now work towards agreeing the terms of a concession agreement. Following the successful execution of the concession agreement, GPH will use its global expertise and operating model to manage the cruise port operations in Taranto. The concession is expected to start in Q1 2021.

In 2019, the Taranto Cruise Port welcomed c9k cruise passengers, with a pre Covid-19 forecast of over 14k passengers in 2020.

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that, its partner Baleària Group ("Baleària") has been awarded a 35-year concession agreement for the ferry and cruise port of Valencia, with a 15-year extension option. As part of this agreement, GPH will operate and manage Valencia Cruise Port throughout the period of the concession. All parties will now work together to conclude the agreement that is expected to be signed in Q1 2021. A further announcement, as appropriate, will be made in due course.

Under the terms of the agreement, Baleària will invest up to $37m into the port infrastructure, including two new state of the art smart terminals, as well as investment into ferry piers, car parking and retail and F&B areas. The concession is expected to start in Q1 2021, with the expected two-year investment phase starting at the same time.

The new terminals will set a new benchmark for sustainability in the passenger transport industry, producing 100% of their electricity needs from their own renewable energy sources (photovoltaic, wind, renewable hydrogen and biofuel), with all waste generated being recycled.

In 2019, the port of Valencia received 203 cruise ship calls and welcomed c435,000 cruise passengers, with a pre Covid-19 forecast of over 500,000 passengers in 2020.

Emre Sayin, Global Ports Holding's Chief Executive Officer, said:
"We are very grateful to Valencia Port Authority for placing their trust in GPH as the operator of Valencia Cruise Port. The project presented by our partners, Baleària Group, in collaboration with GPH, will set a new benchmark for excellence and sustainability in the passenger transport industry.
Valencia Cruise Port is an important addition to our cruise port network, further strengthening our presence and capabilities in Iberia and the West Med. We very much look forward to growing cruise passenger volumes in Valencia in a sustainable and responsible way."

About Baleària Group
Baleària Group is the leading shipping line for passenger and freight transport on Balearic Islands crossings to the Spanish mainland. It also operates a number of other passenger ferry services in the Mediterranean and Caribbean.
In 2019, Baleària handled c4.5m passengers and 6.1 metres of cargo, generating turnover of €452m.

Global Investment Holdings, a diversified conglomerate operating in 13 different countries on 4 continents, today announces its financial results for the nine months ended 30 September 2020.

Global Investment Holdings reports Consolidated Net Revenues of 1,223.4mn TL in the first nine months of 2020, representing an increase of 13% compared to the same period last year; while announcing an Operating EBITDA of 250.0mn TL.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated that “The Group's overall performance in the first nine months of 2020 was lower compared to the same period last year, mainly due to the COVID-19 pandemic, although the Group's performance particularly in mining and real estate businesses in the third quarter showed remarkable improvement compared to the second quarter as pandemic restrictions were partially eased. The performance indicators of the Group for 9M 2020 reflect the management's efforts aimed at ensuring financial stability and enhancing the Company's performance.”

The Chairman continued “There were several highlights of the quarter for me and I can proudly say that, as Global Investment Holdings, our operations are right on track in line with our growth strategy by means of new acquisitions and investments mainly into core businesses, which are ports infrastructure, clean energy and asset management. On the ports side, we have signed a Share Sale and Purchase Agreement with QTerminals W.L.L. regarding transfer of Port Akdeniz shares held by GPH to QTerminals. This move is fully aligned with our strategy to become a pure play global cruise port operator and we will continue to pursue growth and innovation in the exciting cruise port market. Another pleasing development comes from the gas side; following the signing of an SPA to purchase 100% of SOCAR Turkey LNG; the acquisition has been successfully concluded at a total consideration of 32.4mn TL. Such acquisition will further strengthen the position of Naturelgaz in LNG, bulk CNG, and auto-CNG businesses; increasing volume and geographical coverage while diversifying the product portfolio. In the third core business line, our subsidiary Actus Asset Management and Istanbul Portfoy finalized their merger, creating the largest domestic and independent asset management company in Turkey. We have an option to buy additional 40% of the shares in the merged entity.”

Commenting on the results, The Chief Financial Officer of the Group, Ferdağ Ildır, stated that “Like all businesses, our performance has been relatively dampened due to COVID-19 impacts and despite our operational resilience. We continue to navigate through these unprecedented times by focusing on what we control best: safety of our employees, efficient operations and lean cost structure. We also remain optimistic that with the agility of our employee and strategic capabilities, we will get back on track and stronger than before.”

Global Investment Holdings reported 1,223.4mn TL revenues for the first three quarters of the year, compared to 1,083.7mn TL last year, representing an increase of 13%. The revenue growth over the period was broad based, with particularly pleasing growth from power and brokerage & asset management divisions. Covid-19 outbreak put material pressure on revenues. If such pandemic had not occurred, total consolidated revenues would have registered 56% increase yoy (32% yoy excluding IFRIC 12 impact).

At the end of first nine months of 2020, Operational Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted 250.0mn TL, compared to an EBITDA of 425.8mn TL in the same period last year. The notable solid contribution from the power and brokerage & asset management divisions in particular was offset by the expected weak performance of the ports and real estate divisions in the period. Covid-19 outbreak pressured EBITDA as well. If such pandemic had not occurred, total consolidated operating EBITDA would have registered 36% increase yoy.

On a divisional basis,
The gas division distributed 122.4mn Sm3 sales volume in 9M 2020 as opposed to 127.9mn Sm3 for the same period of 2019, mainly due to the impact of the Covid-19 pandemic. The lockdown measures between March and May, and the contraction in economic activity have affected the production capacity of some customers. In addition, the delay of the season openings in tea and asphalt sectors caused a forward shift in purchases for the whole year. These shifts do not affect the annual sales volume, but may cause changes in volume phasing. On the financial front, revenues remained flat yoy at 326.6mn TL. Despite the slight volume decrease, gas division’s turnover and pricing retained the same level in the period yoy. Meanwhile, the gas division’s operating EBITDA came in at 72.8mn TL in the period, down 12% yoy and translating into a 22.3% EBITDA margin. Such decline has stemmed from lower sales volume as well as same pricing level despite increase in costs in parallel with inflation.

The ports division’s revenues were 561.5mn TL at the end of nine months of 2020, up by 9% yoy, while operating consolidated EBITDA fell by 67% yoy to 113.0mn TL. Due to the application of IFRIC-12 for Nassau Cruise Port the capex incurred for this project is accounted for as revenue including a margin of 2%. In 9M 2020, IFRIC-12 increased reported revenue by 269.0mn TL (40.1mn USD) and EBITDA by 5.4mn TL (0.8mn USD). The expenditure for the construction activities is recognised as operating expenses. The margin is non-cash. The adverse effect of COVID 19, coupled with the unfavourable impact of the uncertainties around global trade on commercial operations, put pressure on margins. Despite the materially negative impact of Covid-19 on our operations; the inherent flexibility in GPH's business model, including the extensive use of outsourced service providers, means that many of the costs expand and contract in line with cruise traffic or cargo volumes, which should help to protect margins. On the other hand, the ports division’s financials benefited from the first time contribution from our Caribbean ports, as well as the favourable currency environment in Turkey.

Passenger volumes for the 9 months fell 63%, falling very sharply in Q3 by 99%. The better relative performance in the 9M period vs Q3 reflects the first time contribution from Nassau Cruise Port and Antigua in Q1 2020, before the onset of the Covid-19 crisis. Q3 passenger volumes of just 11k passengers reflected the effective global shutdown of cruise industry in the period and the very modest return to cruising in the Mediterranean towards the end of the period. The near term outlook for Cruise over the remainder of 2020 and 2021 is highly uncertain and looks materially more challenging than the outlook at the time of half year results in August 2020. While a number of cruise lines have commenced sailing in the Mediterranean and Asia, volumes remain very low. As we head into winter in the Northern Hemisphere, the global cruise industry remains in near shutdown and the potential end of the significant travel restrictions in Europe cannot be assessed with certainty due to the ongoing and even increasing impacts of Covid-19. While in North America and the Caribbean, there remains significant uncertainty as to when cruising will recommence in a meaningful way. The recent issuing of a “Framework for Conditional Sailing Order for Cruise Ships” by the Centers for Disease Control and Prevention (CDC) provides a more formal structure for the return to cruising. However, there is little to suggest there will be a meaningful return, if any at all, to cruising in 2020 or even Q1 2021. The first quarter is normally an important trading period for our Caribbean ports, no meaningful cruise activity in this period will have a significant negative impact on our recovery hopes in 2021. On the commercial ports business, while the commercial ports are exposed to global economic growth and macro-economic factors, which have been impacted by Covid-19, trading at these ports in Q3 has been broadly in line with H1 trading. For the 9M period, Throughput Container volumes fell 14% and General & Bulk Cargo volumes rose 50%.

The power division, which includes co/tri-generation- along with biomass- and solar-based renewable power production, reported 189.3mn TL revenues in the period, nearly doubling yoy. The increase was mainly attributable to the commencement of 10.8MW Mardin solar power plant, selling electricity at the feed-in tariff rate of US$0.133/kWh and the pleasing performance of operational plants. With all plants fully under operation, the division’s EBITDA has also improved substantially from 2.1mn TL in 9M 2019 to 65.2mn TL in 9M 2020. The eye-catching EBITDA growth is mainly attributable to solid operational performance in power plants as well as first time consolidation effect of the high margin solar based renewable power plant.

The mining division realized 270,915 tons of product sales in 9M 2020, down by 27% yoy, mainly due to the Covid-19 lockdown in export markets. The mining division reported revenues of 59.8mn TL, down 18% yoy, while operating EBITDA for the period fell by just 5% yoy to 15.0mn TL. Such decline has stemmed from the lockdown in Europe; however, both sales volume and profitability are expected to continue their recovery during the last quarter of the year with the increasing demand from the export markets. The mining division’s performance in the third quarter showed remarkable improvement compared to the second quarter and same period last year in parallel to some gradual improvement in the economic activities in the export markets. The division reported EBITDA of 8mn TL in Q3 2020, almost doubling yoy and tripling qoq.

The real estate division reported revenues of 22.0mn TL and an operating EBITDA of 7.9mn TL in the first three quarters of the year, compared to 32.1mn TL and 15.7mn TL, respectively in same period last year. The weakness was driven mainly by the lower rent revenues throughout 9M 2020 due to the safety precautions against Covid-19, as Van Shopping Centre has remained closed partially in March and entirely in April and May. On the other hand, the real estate division has started to recover as pandemic restrictions were partially eased and reported improved quarterly results with an EBITDA of 5.1mn TL in Q3 2020 as opposed to a negative EBITDA of 1.0mn TL in Q2 2020.

The brokerage & asset management division reported revenues of 64.2mn TL in 9M 2020, indicating a solid 73% yoy increase, while operating EBITDA increased substantially, reaching 17.4mn TL as opposed to 1.1mn TL in 9M 2019. The outstanding performance was attributable to the increase in trading volumes, as well as effective cost management.

GIH reported a consolidated net loss of 318.5mn TL in the first nine months of 2020, compared to a net loss of 86.3mn TL in in the same period last year. The net loss stemmed mainly from non-cash depreciation and foreign currency translation differences incurred on Group’s long term borrowings. The bottom line incorporated 549.1mn TL non-cash charges, of which 332.3mn TL are depreciation and amortization and 216.8mn TL net foreign exchange losses. When adjusted for the non-cash charges, the bottom line turns to positive. Depreciation and amortization charges have increased from 269.7mn TL in 9M 2019 to 332.3mn TL in 9M 2020, purely as a result of foreign currency valuations. 51.1mn TL (82%) of the increase in Depreciation and amortization was due to the depreciation of Turkish Lira against hard currencies. Also, the Group has incurred 216.8mn TL net non-cash foreign exchange losses, compared to 44.0mn TL in the same period last year. The Group’s net interest expenses in the period was 229.9mn TL (34.3mn USD), as opposed to 163.2mn TL (29.0mn USD) a year ago. 35.8mn TL (53.6%) of the increase in net interest expenses was due to the depreciation of Turkish Lira against hard currencies

Covid-19 crisis management and actions
Covid-19 outbreak was declared as a pandemic by the World Health Organization (WHO) on March 11, 2020 and precautions taken against the pandemic continue to cause unfavourable results in operations and negatively affect economic conditions in all countries which are exposed to the epidemic. As a result of pandemic, asset prices, liquidity, foreign exchange rates, interest rates and many other subjects have been affected, and the ultimate severity of the outbreak is uncertain at this time.

Group; from the very beginning, closely keeps monitoring all developments and takes necessary measures in order to effectively manage the negative impact of the Covid-19 outbreak on its consolidated financial position, consolidated financial performance and consolidated cash flows.

The Group’s key focus areas for the coming period are, deleveraging, positive FCF generation, operational profitability and efficiency. Group will also keep on doing its duties in the best way, carry out innovative and pioneering works and add value to every field that it operates.

The business line which is affected the most from COVID-19 is our ports division. Then comes real estate (shopping malls), also there is a relatively minor impact on our mining business. The business lines are susceptible to the uncertainties regarding Covid-19, particularly given the recent increase in the number of daily new cases which may create short-term volatilities as governments would tighten measures against the Covid-19 likely resulting in slowdown in economic activities.

Since the duration and spread of Covid-19 impact in the World and in Turkey has not been clearly estimated, as the severity and duration of the impact become clearer, a more distinct and healthy assessment can be made by the Group management for medium and long term.

Further to our announcement on February 6, 2020 regarding the signing of an SPA to purchase 100% of SOCAR Turkey LNG; the acquisition has been successfully concluded at a total consideration of 32.4mn TL, upon obtaining all regulatory approvals and completion of the pre-conditions. The purchase price has been fully paid, in cash. As of October 30, 2020, Socar LNG Turkey shares have been transferred to Naturel Doğal Gaz Yatırımları A.Ş. ("Naturel Doğal Gaz"), a 100% subsidiary of Global Investment Holdings; while Naturel Doğalgaz, together with Socar Turkey LNG are planned to merge under Naturelgaz, a 95.5% subsidiary of Global Investment Holdings and Turkey’s & Europe’s leading CNG (Compressed Natural Gas) supplier and distributor in terms of mother station infrastructure and bulk sales volume, until the end of 2020.

Such acquisition will further strengthen the position of Naturelgaz in LNG, bulk CNG, and auto-CNG businesses; increasing volume and geographical coverage while diversifying the product portfolio. This acquisition is a perfect fit to Naturelgaz’ strategies to enter into the LNG business, grow in bulk CNG, and establish an auto-CNG station network on critical routes of heavy duty vehicle transportation in Turkey. Currently, the infrastructure of Naturelgaz roughly consists of 10 bulk CNG plants, 3 auto-CNG stations, 296 CNG road tankers and 47 industrial scale compressors; while post-acquisition the infrastructure will enlarge to 12 bulk CNG plants, 11 auto-CNG stations, 345 CNG road tankers and 67 CNG compressors, expansion coming from new regions. In addition to CNG infrastructure, the acquisition will also bring 44 LNG tanks and equipment along with 6 LNG road tankers. In 2019, Naturelgaz distributed overall 167.0 mn Sm3 of CNG, while SOCAR Turkey LNG distributed 35.4 mn Sm3 of CNG & LNG.

Considering the synergies and all the positive impact through such merger under Naturelgaz, the Board of Directors of Naturelgaz resolved to withdraw the IPO application to CMB, which had been submitted with pre-merger 1H 2020 financials.

In this context, all possible strategic options will be evaluated to reach a final decision regarding Naturelgaz. Such review embraces the renewal of Naturelgaz’ IPO application to CMB with 2020 year-end financials to reflect the company’s expected net income for 2020 and the acquisition effect; as well as reconsideration of the strategic options including strategic partnership proposals received during the IPO process.

A further announcement will be made when it is appropriate to do so.

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that following a period of exclusive negotiations it has entered into a conditional sale and purchase agreement to sell Ortadoğu Antalya Liman İşletmeleri ("Port Akdeniz") to QTerminals W.L.L. ("QTerminals"), a Qatari commercial port operating company, for an enterprise value of $140m. The net cash proceeds for GPH from this transaction at closing will be determined by deducting net debt of Port Akdeniz at closing as well as paying transaction-related costs and taxes. A small portion of the purchase price will be withheld by the buyer and paid 12 months after closing of the transaction.

Port Akdeniz, the Group's largest commercial port concession, operates Port Akdeniz-Antalya in Turkey, under a concession agreement which runs until August 2028. Port Akdeniz-Antalya is a leading commercial cargo export port in Turkey, currently specialising in handling cargo containers and general and bulk cargo destined for global markets including those in Asia and the Middle East. In the year ended 31 December 2019, Port Akdeniz reported Container Throughput volumes of 150.9k TEU and General and Bulk cargo volumes of 589k tons, generating revenue of $47.5m and EBITDA of $37.4m.

This conditional agreement follows the Strategic Review announced by the board on the 5 July 2019 and GPH's announcement on the 11 March 2020 that it had entered into exclusive negotiations over the sale of Port Akdeniz. The sale remains conditional, inter alia, upon obtaining certain regulatory clearances and approvals from various Turkish governmental authorities. The timing of the closing process is uncertain but could be concluded as early as Q4 2020, however there can be no certainty as to the final outcome. A further announcement will be made when it is appropriate to do so.

A successful closing of the sale will be an important element of the Group' refinancing strategy for the $250m Eurobond due November 2021. While the board of Global Ports Holding believes the proposed disposal will also allow the GPH board and senior management to focus time and resources on continued investment into further growth opportunities in the global cruise port market. On completion of the sale, GPH will effectively become a pure-play global cruise port operator.

While a range of restrictions currently remain in place in regard to the return of meaningful cruise activity, the Company believes that the continued demand for cruising, as evidenced by strong booking patterns reported by the major cruise lines for 2021, is very supportive to the long term health of cruise tourism.

Global Ports Holding's Chairman and Co-founder Mehmet Kutman said:
"Port Akdeniz has been an integral part of GPH since 2006, and it has played a pivotal role in the successful development of the Group over the years. However, as GPH continues to pursue growth in the exciting cruise port market, it is now time for the stewardship of Port Akdeniz to pass to an organisation that is primarily focused on the Commercial port market.

I believe QTerminals, as a leading global commercial port operator, will prove to be an ideal home for Port Akdeniz and that all local stakeholders will benefit from QTerminals stewardship of the port in the years ahead.

The sale will further advance the already strong bilateral relations between Turkey and Qatar and it is a deal that I expect to be warmly received by all local, regional and government stakeholders."

About QTerminals:
QTerminals is a terminal operating company jointly established by Mwani Qatar (51% shareholding) and Milaha (49% shareholding) to provide container, general cargo, RORO, livestock and offshore supply services in Phase 1 of Hamad Port, Qatar's gateway to world trade. QTerminals is responsible for enabling Qatar's imports and exports, its maritime trade flows and stimulating economic growth locally and regionally.

Operated by Global Ports Holding Plc, the world’s largest cruise port operator, Valletta Cruise Port will be welcoming “first international cruise ship sailing” after the global COVID-19 lay-up.

Valletta Cruise Port will host MSC Grandiosa on Friday the 21st August, which will be operating under a strict and comprehensive health and safety protocol that applies equally both on land and at sea. Despite Valletta Cruise Port being open since the 1st July, no cruise ships have called since March 2020.

For the first cruise ship post COVID-19 sailing the Mediterranean and the first cruise ship in the world calling at different ports and countries, health and safety measures are being taken by all stakeholders including MSC Cruises, the local authorities and us in concert to create end to end control and ease of mind for passengers and the public. The measures include universal testing for all guests and crew prior to embarkation. Additionally, guests will not be allowed to go ashore independently but only on protected excursions thus also protecting the communities they visit.

MSC Cruises restarted its operations earlier this week with MSC Grandiosa sailing from Genoa on a 7-night Western Mediterranean Cruise. Prior to embarkation all guests will go through universal health screening that includes three comprehensive steps –, a temperature check, a health questionnaire and a COVID-19 antigen swab test. Depending on the screening results and according to the guest’s medical or travel history, a secondary health screening and follow-up molecular testing will take place. Any guest who tests positive, displays symptoms or a temperature will be denied boarding. Following guidelines from the European Centre for Disease Prevention and Control, guests travelling from countries categorised as high risk will also be required to take a molecular RT-PCR test, to be done within 72 hours prior to joining the ship. All crew members will be tested two times for COVID-19 and go through a 14-day isolation period and a third and final molecular RT-PCR test prior to embarkation. Crew will also be regularly tested during their contract, at least twice a month in addition to ongoing health monitoring.

The ship will also be sailing with a maximum occupancy rate of 70 percent, allowing for 10 square meters of space per passenger.

Stephen Xuereb, CEO of Valletta Cruise Port and COO of Global Ports Holding Plc commented, “We are excited to be welcoming MSC Grandiosa back to Valletta. The safety and well-being of guests, personnel and the local community is our upmost priority. In the last months together with the local health and tourism authorities and the cruise lines, we have been busy working on protocols that ensure a safe, secure and seamless experience for our guests.”

Emre Sayin, CEO of Global Ports Holding Plc said, “For a company like ours, which handles thousands of cruise calls in a normal year, one call does not seem so significant. But this call is an
important milestone because it is the first international cruise call to one of the 19 cruise ports we operate since the whole world locked down as a result of the pandemic. I also find it comforting that the measures go beyond anything we have seen so far: Everyone involved in the journey is tested either in the ship or in the port. This will give cruise-goers and local communities ease of mind. As GPH, we are ready to host cruise guests, adopting protocols which have been accredited with the ‘Safe Travel’ stamp by the World Travel and Tourism council. The GPH ports already accredited are Barcelona, Malaga, Antigua, Kusadasi, Bodrum, Zadar and of course Valletta.”

Global Investment Holdings, a diversified conglomerate operating in 13 different countries on 4 continents, today announces its half year results for the six months ended 30 June 2020.

Global Investment Holdings reports Consolidated Net Revenues of 739.9mn TL in the first half of 2020, representing an increase of 16% compared to the same period last year; while announcing an Operating EBITDA of 147.6mn TL.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated that “The results for the six months were significantly impacted by the outbreak of COVID-19, which has had a devastating impact on both global economies and global travel sectors, particularly from late February 2020 onwards. We went into this pandemic in a strong position with healthy levels of capital and liquidity, however undoubtedly profits are lower in a period where our focus has rightly been on the safety and well-being of our teams and ensured business continuity.”

The Chairman continued “The macroeconomic, consumer and competitive backdrop for the second half of the year contains considerable uncertainties. Given the ongoing uncertainty and risks from COVID-19, we are cautious on the speed of recovery but remain confident in the Group's ability to fulfil its longer-term growth ambitions.”

Mr. Kutman added that “Looking ahead, our robust and diversified portfolio and our capable management team give me confidence that we will continue to provide our shareholders with sustainable returns through responsible investment. I would like to thank our employees around the globe for their solidarity and perseverance during these challenging times.” 

Commenting on the results, The Chief Financial Officer of the Group, Ferdağ Ildır, stated that “We had a solid start to the year, followed by a slowdown in economic activity since late February due to COVID-19 pandemic. The public health and economic crisis linked to COVID-19 intensified during second quarter of the year, creating an extremely challenging market environment. This crisis has had an unprecedented impact on our businesses and the communities we serve across the world. Despite the uncertainty that surrounds us today, we continue to take actions to protect our performance, conserve cash and plan for future growth, all underpinned by a strong balance sheet. We are confident that by maintaining a steadfast focus on our strategic priorities of operational excellence and efficiency, while ensuring continuous effective cost management, we are well-positioned to capitalise on the opportunities these challenging times create."

GIH announced its financial results for the first half of 2020. Consolidated net revenues reached 739.9mn TL compared to 636.1mn TL last year, representing an increase of 16%. The revenue growth over the period was broad based, with particularly pleasing growth from power and brokerage & asset management divisions. Covid-19 outbreak put material pressure on revenues. If such pandemic had not occurred, total consolidated revenues would have registered 49% increase yoy.

In the first half of 2020, Operational Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to 147.6mn TL, compared to an EBITDA of 228.0mn TL in the same period last year. The notable solid contribution from the power and brokerage & asset management divisions in particular was offset by the expected weak performance of the ports and real estate divisions in the period. Covid-19 outbreak pressured EBITDA as well. If such pandemic had not occurred, total consolidated operating EBITDA would have registered 26% increase yoy.

On a divisional basis,

The gas division distributed 68.7mn Sm³ sales volume in H1 2020 as opposed to 72.0mn m³ for the same period of 2019, mainly due to the impact of the Covid-19 pandemic. The lockdown measures between March and May, and the contraction in economic activity have affected the production capacity of some customers. In addition, the delay of the season openings in tea and asphalt sectors caused a forward shift in purchases for the whole year. These shifts do not affect the annual sales volume, but may cause changes in volume phasing. On the financial front, revenues increased by 7% yoy, reaching 183.7mn TL; mainly attributable to the enhancement in pricing. Meanwhile, the gas division’s operating EBITDA reached 35.7mn TL, up by 4% yoy and translating into a 19.5% EBITDA margin. The gas division managed to expand EBITDA generation through H1 2020 thanks to the strong revenue growth, increase in gas margin and effective cost management.

The ports division’s revenues were 348.0mn TL at the end of first half of 2020, up by 14% yoy, while operating consolidated EBITDA fell by 57% yoy to 84.4mn TL. Due to the application of IFRIC-12 for Nassau Cruise Port the capex incurred for this project is accounted for as revenue including a margin of 2%. In Q2 2020, IFRIC-12 increased reported revenue by 144,6mn TL (22.0mn USD) and EBITDA by 3.2mn TL (0.5mn USD). The expenditure for the construction activities is recognised as operating expenses. The margin is non-cash. The adverse effect of COVID 19, coupled with the unfavourable impact of the uncertainties around global trade on commercial operations, put pressure on margins. Despite the materially negative impact of Covid-19 on our operations; the inherent flexibility in GPH's business model, including the extensive use of outsourced service providers, means that many of the costs expand and contract in line with cruise traffic or cargo volumes, which should help to protect margins. On the other hand, the ports division’s financials benefited from the first time contribution from our Caribbean ports, as well as the favourable currency environment in Turkey.

The global cruise industry effectively shut down in Q2 2020, for the first time in its history and as a result our cruise ports have experienced a sharp fall in revenues. Overall in H1 2020 the ports division welcomed 1.3mn cruise passengers with a 35.7% decline compared to the same period last year. The passenger number refers to consolidated and managed portfolio, hence excluding equity accounted associate ports La Goulette, Lisbon Singapore and Venice. With the strong first time contribution from the new ports in the Caribbean in Q1 2020 helping to offset the impact of the shutdown of the cruise industry in Q2 2020. While cruise operations continue to be significantly impacted by the Covid-19 crisis and volumes remain very low versus historical standards, the ports division expects a steady increase in cruise ship calls and passenger volumes over the remainder of the year. And it is encouraging to note that the cruise line partners continue to report strong bookings for 2021. In the meantime, the ports division continues to work closely with all relevant partners and health authorities on the safe return to cruising across its portfolio.  On the commercial ports business, while the commercial ports are exposed to global economic growth and macro-economic factors, which have been impacted by Covid-19, trading at these ports in Q2 has been broadly in line with Q1 trading. General & Bulk Cargo volumes grew 27.3% yoy in H1 2020, while TEU throughput fell by 13.8% yoy in H1 2020. Despite the Covid-19 crisis, Q2 General & Bulk Cargo volumes rose 3.5% qoq and Q2 TEU Throughput fell just 10.6% qoq.

The power division, which includes co/tri-generation- along with biomass- and solar-based renewable power production, reported 120.8mn TL revenues in the period, almost doubling yoy. The increase was mainly attributable to the commencement of 10.8MW Mardin solar power plant, selling electricity at the feed-in tariff rate of US$0.133/kWh and the pleasing performance of operational plants. With all plants fully under operation, the division’s EBITDA has also improved substantially from negative 0.4m TL in H1 2019 to 37.5mn TL in H1 2020. The eye-catching EBITDA growth is mainly attributable to solid operational performance in power plants as well as first time consolidation effect of the high margin solar based renewable power plant.

The mining division realized 163,525 tons of product sales in H1 2020, down by 38% yoy, mainly due to the Covid-19 lockdown in export markets. The mining division reported revenues of 34.5mn TL, down 32% yoy, while operating EBITDA for the period fell by 39% yoy to 7.0mn TL. Such decline has stemmed from the lockdown in Europe; however both sales volume and profitability are expected to recover during the second half of the year with the increasing demand from the export markets.

The real estate division reported revenues of 12.8mn TL and an operating EBITDA of 2.9mn TL in the first half of the year, compared to 21.4mn TL and 10.3mn TL, respectively in same period last year. The weakness was driven mainly by the lower rent revenues throughout H1 2020 within the scope of safety precautions against Covid-19, as Van Shopping Centre has remained closed in part of March and whole of April and May.

The brokerage & asset management division reported revenues of 40.2mn TL in H1 2020, indicating a sturdy 63% yoy increase, while operating EBITDA increased substantially, reaching 11.6mn TL as opposed to 0.8mn TL in H1 2019. The outstanding performance was attributed to the increase in trading volumes, as well as effective cost management.

GIH reported a consolidated net loss of 237.4mn TL in the first half of 2020, compared to a net loss of 99.8mn TL in in the same period last year. The net loss stemmed mainly from non-cash depreciation and foreign currency translation differences incurred on Group’s long term borrowings. The bottom line incorporated 355.0mn TL non-cash charges, of which 233.7mn TL are depreciation and amortization and 121.3mn TL net foreign exchange losses. When adjusted for the non-cash expenses, the bottom line turns to positive. Depreciation and amortization charges have increased from 178.9mn TL in H1 2019 to 233.7mn TL in H1 2020, purely as a result of foreign currency valuations. Also, the Group has incurred 121.3mn TL net non-cash foreign exchange losses, compared to 62.5mn TL in the same period last year. The Group’s net interest expenses in the period was 149.6mn TL (23.2mn USD), as opposed to 101.0mn TL (18.0mn USD) a year ago. 18mn TL (37%) of the increase in net interest expenses was due to the depreciation of Turkish Lira against hard currencies.

Covid-19 crisis management and actions

Currently the world is facing unprecedented challenges due to the COVID-19 pandemic. The pandemic hit industries and the global economy as a whole so fast and to such an extent and with such a severity which nobody could have predicted. Around the globe, the tourism, catering, hospitality, travel and aviation industries are the ones most affected as countries are closing their borders, suspending flights and enforcing strict travel restrictions within the context of their measures implemented to contain pandemics.

2020, marking the 30^th anniversary of the Group foundation, continues to be a uniquely challenging year due to the impact of COVID-19. Despite the gradual easing in the measures taken by the governments across all our operations, there are still uncertainties going forward and in some operating regions challenges related to COVID-19 persist.

Ever since the beginning of the crisis, the Group has acted quickly and attempted to prepare in the best possible way for future market requirements by immediately reducing its running costs to a significant extent. Additional cost savings measures are taken across all group companies even if revenue generation has not been, and is not expected to be affected from Covid-19 crisis. Despite the Group being particularly affected by the pandemic in all divisions and countries at a time, the board and senior management is convinced that the strong innovative power, the flexible corporate culture and a very focused team will cope very well with the challenges of the competition, and the Group will emerge stronger from this crisis.

The Group’s key focus areas for the coming period are, deleveraging, positive FCF generation, operational profitability and efficiency. Group will also keep on doing its duties in the best way, carry out innovative and pioneering works and add value to every field that it operates.

The business line which is affected the most from COVID-19 is the ports division. Looking into the remainder of 2020, the near term outlook for cruise remains highly uncertain. Yet, a number of cruise lines have recently commenced sailings and more are planning to do so over the remainder of 2020. However, understandably there remains considerable uncertainty over these sailings. Looking into 2021 and beyond, it is very encouraging to see such strong booking trends across the cruise industry and across all regions. While on-board distancing measures will mean cruise ship occupancy levels are likely to be down in 2021, the level of continued consumer demand is very encouraging for 2021 and beyond. In light of the exceptional circumstances that have engulfed the cruise industry, the board and management took several significant actions to protect the balance sheet and long term future of the business. These actions have resulted in cash costs in a no cruise environment being reduced to such an extent that management believe GPH can remain in operation even under a scenario of no cruise ships calling at its cruise ports until 2022.

With respect to the Initial Public Offering (“Offering”) of the shares of Naturelgaz Sanayi ve Ticaret A.Ş. (“Naturelgaz”), a 95.5% subsidiary of Global Investment Holdings (“GIH”) and Turkey’s & Europe’s leading CNG (Compressed Natural Gas) supplier and distributor in terms of mother station infrastructure and bulk sales volume; The Board of Directors of Global Investment Holdings resolved on 12th August 2020 to approve and participate in the Offering. The Offering will comprise 25,000,000 newly issued shares to be offered by Naturelgaz in addition to 9,090,909 existing shares by the existing shareholders. 8,854,775 of the existing shares shall be offered by GIH, of which 4,267,451 will be for the purpose of exchanging same number of privileged shares currently held by a minority shareholder, leaving GIH with net offered shares of 4,587,324. GIH shall also make 3,409,091 existing shares available pursuant to an over-allotment option. Hence, at the Offering all existing minority shareholders at Naturelgaz with total shares of 4,503,585 would have sold their shares, whereas including the over-allotment option total net number of shares offered by GIH would be 7,996,415. Once the offering is materialized, there will be no privileged shares in the company's share structure. The shares will trade on Borsa Istanbul. GIH will remain the largest individual shareholder in Naturelgaz following the Offering; while the free-float is expected to be c.30% upon the completion of the offering including the over-allotment option.

Additionally, on 10th August 2020, Vakıf Yatırım Menkul Değerler A.Ş. and Global Menkul Değerler A.Ş. were appointed as Lead Manager and Co-Lead Manager, respectively, in connection with the offering.

Pursuant to CMB's Communiqué on Shares (VII-128.1), the application for the approval of the draft Domestic Prospectus prepared for the initial public offering of Naturelgaz' shares has been submitted to the Capital Markets Board of Turkey on 14th August 2020. The draft Domestic Prospectus is also available on Naturelgaz’ website at www.naturelgaz.com

Completion of the Offering is conditional upon (i) receipt of customary regulatory approvals of the Capital Markets Board of Turkey and Borsa Istanbul and (ii) finalizing the book-building process.

A further announcement on the initial public offering of Naturelgaz will be made when it is appropriate to do so.

As of June 30th, 2020, our Group Chief Financial Officer Mehmet Kerem Eser has left his position at Global Investment Holdings. Our Board Member in many Group Companies, Ercan Ergül, in addition to his current roles and responsibilities, will assume the roles and responsibilities of the acting Group Chief Financial Officer position through September 1st, 2020.

With effect from September 1st, 2020:

-Ferdağ Ildır, in the capacity of Global Ports Holding Chief Financial Officer, will be appointed Group Chief Financial Officer of Global Investment Holdings.

“Ferdağ Ildır was appointed Chief Financial Officer of Global Ports Holding in 2010. Prior, she was the Chief Financial Officer of Kuşadası Cruise Port, Bodrum Cruise Port and Port Akdeniz – Antalya. Before joining the Global Ports Holding, Ferdağ Ildır was Accounting Division Manager at the Teba Group from 2004 to 2005. From 1993 to 2004, she held various positions at Arthur Andersen and Ernst & Young. Ferdağ Ildır holds a BS degree in Economics from Dokuz Eylül University.”

-Jan Fomferra, in the capacity of Global Investment Holdings Corporate Finance Director, will be appointed Chief Financial Officer of Global Ports Holdings.

“Jan Fomferra started his career in investment banking at Barclays Capital and IEG – Investment Banking, where he advised on international M&A and structured financing transactions. Prior to joining Global Investment Holdings in 2016, he was the Managing Director of IEG – Global Corporate Finance Advisory. Prior to that, Jan Fomferra was Head of Structured Finance of Fresenius VAMED Germany from 2010 to 2012, and part of the corporate finance team at Deutsche Bahn from 2009 to 2010. Jan Fomferra holds a Master’s degree from ESCP Europe.”

Global Investment Holdings reports Consolidated Net Revenues of 323.5mn TL in the first quarter of 2020, representing a notable increase of 24% compared to the same period last year; while announcing an Operating EBITDA of 85.1mn TL, implying an 8% growth yoy

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated that “Before commenting on the first quarter of 2020 financial results, I want to emphasise that the health and safety of our employees is always our first thought and never more so than at this challenging time in the face of the global coronavirus crisis. Ensuring the business continuity and providing humanitarian assistance to our employees and across our regions of presence are our key priorities today. At the same time, we must act responsibly to protect the long-term success of GIH and deliver on our commitments to all stakeholders that rely on our global role.”

Drawing attention to the good results and careful risk management that ensured Global Investment Holdings’ steady performance in this challenging environment, the Chairman continued: The impact of COVID-19 came late in what was until that point a good quarter. The strength of Global Investment Holdings lies in our diversification by business, geography and currency, which allows us to remain resilient through the developing economic downturn. Over the last 30 years, GIH has successfully overcome many challenges. Despite all the challenges we face as a consequence of COVID-19, I am confident that GIH will emerge from this pandemic, well placed to continue to serve the communities and economies in which we operate, and our shareholders.

The Chairman further stated “As the world is facing unprecedented times with the novel COVID-19 outbreak whose impact we began to feel late in the quarter, we managed to close the first quarter of this year with overall good performance thanks to our 30 years of experience and robust infrastructure. We preserved our financial structure through our diversified portfolio, foreign currency earning activities, meticulous risk policies and efficient management. We maintained a disciplined approach to cost management through the first quarter, while not losing sight of our long-term strategic priorities, which will position our businesses well when the recovery comes.”

Mr. Kutman added that “Whilst we maintained our momentum in the first quarter of the year, the outcome for the remainder of 2020 remains challenging and uncertain. We have adequate liquidity and solvency headroom and management will continue to monitor and regularly review the longer term impact of the COVID-19 pandemic on the Group. At the same time, we are taking all appropriate actions to preserve cash, reduce and defer both capital spending and operating costs and secure additional financing in order to strengthen and maintain our liquidity.

GIH announced its financial results for the first quarter of 2020. Consolidated net revenues reached 323.5mn TL compared to 260.4mn TL last year, representing a robust increase of 24%. This strong performance was broad based, with particularly pleasing growth from power division in the period.

In the first three months of 2020, Operational Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to 85.1mn TL, compared to an EBITDA of 78.7mn TL in the same period last year, which represents an 8% growth. The power division was the major contributor to the EBITDA increase.

On a divisional basis,
The gas division, achieved 32.3mn m3 sales volume in Q1 2020, compared to 31.3mn m3 for the same period of 2019. The higher volume was achieved by focusing on new customer acquisitions to reduce the effects of seasonality and increase market share. Revenues surged by 16% yoy, reaching 84.9mn TL; mainly attributable to the increase in sales volume generated by new sales channels and enhancement in pricing. Meanwhile, the gas division’s operating EBITDA reached 14.2mn TL in the quarter, up by 7% yoy. The gas division managed to expand EBITDA generation in Q1 2020 thanks to the strong revenue growth, increase in gas margin and effective cost management.

The ports division’s revenues were 130.5mn TL at the end of first three months of 2020, up by 18% yoy, while operating consolidated EBITDA fell by 6% yoy to 62.9mn TL. The adverse effect of COVİD 19, coupled with the unfavourable impact of the uncertainties around global trade on commercial operations, put pressure on margins. The travel restrictions imposed globally following the widespread outbreak of the Covid-19 virus, have had a materially negative impact on the cruise business. The realised impact on our operations during the quarter has been relatively minor. This is due to the seasonal nature of the Mediterranean cruise season, with the peak summer season not starting until May. While cruise operations continue to be significantly impacted by the Covid-19 crisis, there are signs that some cruise ships could resume sailing in Q3 2020. At the same time, the inherent flexibility in GPH's business model, including the extensive use of outsourced service providers, means that many of our costs expand and contract in line with cruise traffic or cargo volumes, which should help to protect margins. On the other hand, the ports division’s financials benefited from the first time contribution from our Caribbean ports, as well as the favourable currency environment in Turkey.

Passenger volumes rose 146% yoy to 1.25m in Q1 2020, driven by the first time contribution from the new Caribbean ports. Despite the Covid-19 impact, the reported passenger and revenue figures highlight the strong contribution that our new Caribbean ports are expected to make to the portfolio in the years ahead, both in terms of financial contribution and in terms of the geographic and seasonal balance that they bring to the portfolio.

The power division, which includes co/tri-generation- along with biomass- and solar-based renewable power production, reported 54.8mn TL revenues in the period, more than doubling yoy. The increase was mainly attributable to the commencement of 10.8MW Mardin solar power plant, selling electricity at the feed-in tariff rate of US$0.133/kWh and the pleasing performance of power plants. With all plants fully under operation, the division’s EBITDA has also improved substantially from -1.9m TL in Q1 2019 and reached 10.9mn TL in Q1 2020. The outstanding EBITDA growth is mainly attributable to solid operational performance in power plants as well as first time consolidation effect of the high margin solar based renewable power plant.

The mining division realized 117,736 tons of product sales in Q1 2020, down by 12% yoy, mainly due to slower demand from export markets. The division reported revenues of 24.0mn TL, slightly down 6% yoy due to slower demand from export markets, while operating EBITDA for the quarter was 4.5mn TL, down by 25% yoy. Product demand mix from the customers focusing primarily on bulk products for the period resulted in decrease in profit margins, which is expected to be recovered in the following quarters with expected orders for processed product lines.

The real estate division reported revenues of 9.8mn TL and an operating EBITDA of 3.9mn TL in the first quarter of the year, compared to 11.7mn TL and 6.0mn TL, respectively in same period last year. Higher revenue recognition in real estate sales had boosted the numbers in Q1 2019.

The brokerage & asset management division reported revenues of 19.5mn TL in Q1 2020, indicating a 42% yoy increase, while operating EBITDA almost tripled yoy, reaching 4.7mn TL. Strong operational performance can be attributed to the increase in trading volumes, as well as effective cost management.

GIH reported a consolidated net loss of 131.0mn TL in the first quarter of 2020, compared to a net loss of 82.4mn TL in in the same period last year. Despite higher revenue recognition along with EBITDA maximization, the net loss stemmed mainly from non-cash depreciation and foreign currency translation differences incurred on Group’s long term borrowings. Depreciation and amortization charges have increased from 85.3mn TL in Q1 2019 to 111.3mn TL in Q1 2020, purely as a result of foreign currency valuations. Also, the Group has incurred 71.0mn TL net non-cash foreign exchange losses, compared to 51.8mn TL in the same period last year. Net interest expenses in the quarter were 71.2mn TL, compared to previous year’s 45.0mn TL, and the increase is solely attributable to the weakness in TL against hard currencies.

Covid-19 crisis management and actions
The Covid-19 pandemic led to unprecedented restrictions on the movement of people, goods and services worldwide. Great swathes of the global economy came to a halt as the world battles a health care crisis unseen in modern times. The COVID-19 continues to affect all geographies in which GIH operates. The Group is faced with a vastly changed economic landscape and murky outlook. With its core business in particular, cruise operations, virtually on hold due to temporary global travel restrictions, the challenges of 2020 will be immense. Yet, there are signs that some cruise ships could resume sailing in Q3 2020.

Looking at the possible consequences of the crisis, the board and senior management works on various scenarios to ensure proactive management for any probable outcome. While there is a significant amount of uncertainty over the immediate future, the plans have been put in place to protect the business from the impact of this unprecedented crisis, by reducing costs, conserving cash, and safeguarding the balance sheet.

The business line which is affected the most from COVID-19 is our ports division. Yet, the inherent flexibility in the ports division’s business model, including the extensive use of outsourced service providers, means that many of the costs expand and contract in line with cruise traffic or cargo volumes. Clearly in the current circumstances such costs in the Cruise operations have currently dropped to almost zero. The port division has taken further actions to reduce the cost base and conserve cash. Operating expenses across the ports group have now been reduced by 75% for May to Dec 2020, generating a full year 2020 operating expenses reduction of 60%. Additional cost savings measures are taken across all group companies even if revenue generation has not been, and is not expected to be affected from Covid-19 crisis.

Across the portfolio, all but essential maintenance capex has been suspended and will remain suspended until the situation becomes clearer and the global economy starts to return towards normal. Capex at the new ports, Nassau Cruise Port and Antigua Cruise Port, in the Caribbean is expected to continue as planned.

In Antigua, the Group's cash investment was paid from the Group's cash resources in 2019 and the balance of the required investment will be funded through an already committed bank loan from a syndicate of lenders. In Nassau, the design and engineering of the marine components of the project has been completed and the construction is expected to commence in June 2020, with an expected completion date of April 2022. The scheduled capex over the next 12 months of up to 130mn USD is to be fully financed by bond issuance in both local and international markets and the remaining portion of 30mn USD of the existing bridge loan of 50mn USD is to be converted into a long term loan on same terms of the bond.

Nassau Cruise Port has recently raised 150mn USD through the issuance of a 20-year bond. Such a successful action during the biggest crisis the travel industry has ever faced, is testament to both the strength of our transformational plans for Nassau Cruise Port and the continued long term attractiveness of the cruise industry.

Global Ports Holding Plc ("GPH" or "the Company"), the world's largest independent cruise port operator, is pleased to announce that following discussions with its advisors and a review of the order book, Nassau Cruise Port Limited ("NCP") has decided to issue its private bond offering for a total offering of $150m. Today's announcement follows the announcement on 18th May 2020 that Nassau Cruise Port had raised over $130m through its private bond offering.

Management believes that the significant level of demand for this bond is testament to the continued long term attractiveness of the cruise industry and the strength of our transformational plans for Nassau Cruise Port. The 20-year, multi-currency (Bahamian and US Dollar) bond will mature in 2040 and has been placed with over 200 domestic and international investors. It will pay a semi-annual coupon of 8.0% starting in June 2021. The principle will be repaid in ten equal annual instalments from June 2031. The bond is non-recourse to GPH or any other Group entity other than NCP.

Nassau Cruise Port Project

The redevelopment of the port facility in Nassau is scheduled to occur in three phases. The first phase of the project, which involves the demolition of current buildings and structures, is well underway. Phase two will commence within the next 60 days and involves completing the marine works, which includes material purchases, an expansion of the berthing capacity of the port, and upgrades to existing infrastructure. In phase three, we will complete the landside works, including the new arrivals terminal and plaza, Junkanoo Museum, retail Market Place, amphitheatre, and other food and beverage and entertainment spaces. The project will also see the port integrated into Bay Street with the expectation that it will serve as a catalyst for the wider development of downtown Nassau.

The funds raised through this bond offering will be used to support the work for phases one and two. In the middle of 2021, Nassau Cruise Port, through the Bahamas Investment Fund (BIF), will raise equity and additional debt in order to finance the project through to completion. The equity raise will mean thousands of Bahamians will have an opportunity to invest in BIF, facilitating broad-based Bahamian ownership in this project.

Notes for Editors

Nassau Cruise Port ("NCP") is 49% owned by Global Ports Holding ("GPH"), 49% owned by the Bahamas Investment Fund ("BIF") and 2% owned by Yes Foundation, with Global Ports Holding operating the port. BIF is a Bahamian retail fund which provides a unique opportunity for tens of thousands of Bahamian investors to invest in equity and debt in the project. The YES Foundation will be established as a charitable entity promoting Youth, Sports and Education for Bahamians. Its primary focus will be on helping young Bahamians succeed by investing in programs to help ensure that they develop the leadership, technical, and life skills to make a meaningful contribution to their local community.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GPH/14557254.html

Global Ports Holding Plc ("GPH" or "the Company"), the world's largest independent cruise port operator, is pleased to announce that Nassau Cruise Port Limited ("NCP") has successfully raised over $130m in USD-equivalent Bahamian Dollar and USD, through its private bond offering. The 20-year bond will mature in 2040 and pay a semi-annual coupon of 8.0% starting in June 2021. The principle will be repaid in ten equal annual instalments from June 2031. The bond is non-recourse to GPH or any other Group entity other than NCP.

Emre Sayin, Chief Executive Officer, said:
"I am delighted that Nassau Cruise Port has successfully raised over $130m through the issuance of a 20-year bond. In these challenging times for so many industries and the global tourism market in general, it is testament to both the strength of our transformational plans for Nassau Cruise Port and the continued long term attractiveness of the cruise industry that the bond issuance has been so successful.

This project will create much-needed jobs and help support many local businesses in what is an uncertain time for many Bahamians. Once complete, Nassau Cruise Port's redevelopment will offer cruise passengers, locals and tourists an exceptional port and waterfront experience and one that will rival any in the world."

Nassau Cruise Port Project
The redevelopment of the port facility in Nassau is scheduled to occur in three phases. The first phase of the project, which involves the demolition of current buildings and structures, is well underway. Phase two will commence within the next 60 days and involves completing the marine works, which includes material purchases, an expansion of the berthing capacity of the port, and upgrades to existing infrastructure. In phase three, we will complete the landside works, including the new arrivals terminal and plaza, Junkanoo Museum, retail Market Place, amphitheatre, and other food and beverage and entertainment spaces. The project will also see the port integrated into Bay Street with the expectation that it will serve as a catalyst for the wider development of downtown Nassau.

The funds raised through this bond offering will be used to support the work for phases one and two. In the middle of 2021, Nassau Cruise Port, through the Bahamas Investment Fund (BIF), will raise equity and additional debt in order to finance the project through to completion. The equity raise will mean thousands of Bahamians will have an opportunity to invest in BIF, facilitating broad-based Bahamian ownership in this project.

Global Investment Holdings announces Consolidated Net Revenues of 1,441.0mn TL and an Operating EBITDA of 563.3mn TL in 2019, which indicate a robust 28% and 21% growth compared to 2018, respectively.

Evaluating Global Investment Holdings’ financial results for 2019, Chairman & CEO, Mehmet Kutman, stated that “The last two years presented a challenging operating environment for our companies with significant global volatility as well as political uncertainty. A generally increasing risk premium in emerging markets, escalating geopolitical risks in neighbouring countries and political uncertainties in the domestic market due to consecutive elections put a halt to private investments across many sectors. Despite these challenges, as Global Investment Holdings, we have left behind a year in which we experienced significant developments in line with our global growth vision.”

Drawing attention to the solid results and careful risk management that ensured Global Investment Holdings’ steady performance in this challenging environment, the Chairman continued: “We, Global Investment Holdings, continue to expand our global presence as we strive to contribute to the development of Turkey and improve our competitiveness. We shall continue to invest with the same determination to grow, to take bold steps in our role as leader and play our part in the development of Turkey.”

Commenting on the results, CFO Mehmet Kerem Eser stated that “Thanks to the strategy we stuck to, and the measures we took, we achieved continued growth, despite such a tough year. Due to volatile markets in 2019, we have attached more importance to liquidity and liability management, in addition to our growth and profitability targets. Our diversified portfolio structure, effective balance sheet and risk management approach were positively reflected in our financial results. We are pleased to have completed 2019 maintaining our robust balance sheet structure.”

Mr. Eser further said that “Our main target was to maintain and improve the positive results we had achieved while we placed greater importance on being efficient, competitive and profitable in our core businesses.”

GIH announced its financial results for 2019. Consolidated net revenues reached 1,441.0mn TL compared to 1,128.4mn TL in 2018, representing a strong increase of 28%. Nearly all business divisions under the Company contributed to this increase, with the gas division contributing the most.

In 2019, Operational Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to 563.3mn TL, compared to 465.0mn TL in 2018, which represents a robust 21% growth. The gas division was the major contributor to the EBITDA increase.

On a divisional basis,

The gas division, achieved 167.0mn m3sales volume in 2019, compared to 138.4mn m3 for 2018. This increase was achieved by focusing on new customer acquisitions to reduce the effects of seasonality and to increase market share. Revenues nearly doubled yoy, reaching 428.4mn TL; mainly attributable to the increase in sales volume generated by new sales channels and better pricing due to the Botaş tariff hike. Meanwhile, the gas division’s operating EBITDA reached 101.1mn TL in 2019, more than doubling yoy and translating into c.7pp EBITDA margin expansion. The gas division managed to maximize EBITDA creation in 2019 thanks to the increase in sales volume generated by new sales channels, increase in gas margin and effective cost management.

The ports division’s revenues were 668.5mn TL at the end of 2019, up by 11% yoy, while operating consolidated EBITDA increased by 9% yoy, reaching 437.1mn TL.

The power division, which includes co/tri-generation- and biomass-based renewable power production, reported 148.5mn TL revenues in 2019, up by a solid 79% over the previous year. The increase was mainly attributable to the commencement of 12MW Mardin biomass power plant, selling electricity at the feed-in tariff rate of US$0.133/kWh and the pleasing performance of co/tri-gen business. The power division’s EBITDA increased more than two-fold, reaching 18.3mn TL. The outstanding EBITDA growth is mainly attributable to improving plant operating capability and operating performance.

The mining division realized 483,454 tons of sales, a slight 3% yoy volume reduction in 2019. It reported 96.0mn TL in revenues for the year, a 23% increase yoy thanks to ongoing success in export markets. The mining business operating EBITDA came out at 32.7mn TL in 2019, an increase of 49% yoy. Despite contracting sales volume, improving production performance and sustaining sales volume of high value-add products were the main contributors to profitability.

The real estate division reported revenues of 42.5mn TL and an operating EBITDA of 21.1mn TL in 2019, compared to 61.1mn TL and 25.6mn TL, respectively in 2018. Higher revenue recognition in Skycity office project upon completion had boosted the numbers in 2018.

The brokerage & asset management division reported revenues of 53.5mn TL in 2019, an 11% yoy increase, and an operating EBITDA of 2.7mn TL, compared to 2.9mn TL in the previous year. The Group’s 80% subsidiary Actus Asset Management’s Equity Funds (Equity Intensive Funds) ranked first among all mutual funds in the market with 73.0% return in 2019, compared to the BIST 100’s 25.4% return. Meanwhile, Actus’ pension fund Vakif Emeklilik Variable Mutual Fund, has had the highest return in its peer group comprising 70 pension funds, with 47.0% return, compared to 27.9% return of its benchmark.

GIH reported a consolidated net loss of 131.0mn TL in 2019, compared to a net loss of 89.9mn TL in 2018. Despite higher revenue recognition along with EBITDA maximization, the net loss stemmed from non-cash depreciation and foreign currency translation differences incurred on Group’s long term borrowings. Depreciation and amortization charges have increased from 290.5mn TL in 2018 to 370.2mn TL in 2019, purely as a result of foreign currency valuations, as well as 21.7mn TL additional charge in 2019 due to first time application of IFRS 16. Also, the Group has incurred 76.0mn TL net non-cash foreign exchange losses, compared to 89.7mn TL in the previous year. Net interest expenses in the year were 253.9mn TL, compared to previous year’s 197.1mn TL, and the increase is solely attributable to the weakness in TL against hard currencies and 15.0mn TL additional charge due to IFRS 16.

On the operational front, developments are on track in line with the growth strategy by means of new acquisitions and investments mainly into core businesses, which are ports infrastructure, clean energy and asset management.

On the ports side, during 2019, Global Investment Holdings was successful in expanding the global reach of its portfolio. The Group grew its network in the Caribbean, winning the cruise port concessions for Nassau Cruise Port in the Bahamas, and Antigua Cruise Port in Antigua & Barbuda. Apart from the remarkable steps taken in the Caribbean, the Group also added to its presence in Asia, with a management contract for Ha Long Cruise Port in Vietnam, while extending the Marina Bay Cruise Centre Singapore concession to 2027, further anchoring its presence in the fast-growing Asia-Pacific region. Additionally Group’s JV successfully acquired the operator of La Goulette Cruise Port in Tunisia. Group now operates 21 ports, including two commercial ports, across 13 countries.

During the year, Global Investment Holdings took major steps forward with its clean energy efforts. In the second core business area, GIH added its first solar power plant, Ra Solar, to renewable portfolio with 10.8MWp installed capacity in Mardin in Turkey. GIH’s first international solar plant, Barsolar, will sell electricity with a capacity of 6MWp in Bar in Montenegro and is scheduled to become operational in 2020. The combined installed capacity in renewable energy and energy efficiency investments increased to 100.1 MW, of which 46.0 MW is from renewable sources.

Moreover, Naturelgaz, the compressed natural gas subsidiary, signed an agreement to purchase 100% of SOCAR Turkey LNG. There are also tentative plans for an IPO for Naturelgaz in 2020, depending on the market conditions.

In the third core business line, subsidiary Actus Asset Management and Turkey’s largest domestic and independent asset management company İstanbul Asset Management have reached an agreement to merge creating, the largest domestic and independent asset management company in Turkey. The transaction is expected to be finalized in 2020.

Naturelgaz, a 95.5% subsidiary of Global Investment Holdings and Turkey’s & Europe’s leading CNG (Compressed Natural Gas) supplier and distributor in terms of mother station infrastructure and bulk sales volume, has signed an SPA (Share Purchase Agreement) to purchase 100% of SOCAR Turkey LNG. Such transaction is subject to regulatory approvals as well as completion of the pre-conditions. After the share transfer, Naturelgaz and SOCAR Turkey LNG are planned to merge under Naturelgaz.

Such acquisition will further strengthen the position of Naturelgaz in LNG, bulk CNG, and auto-CNG businesses; increasing volume and geographical coverage while diversifying the product portfolio. This acquisition is a perfect fit to Naturelgaz’ strategies to enter into the LNG business, grow in bulk CNG, and establish an auto-CNG station network on critical routes of heavy duty vehicle transportation in Turkey.

Currently, the infrastructure of Naturelgaz roughly consists of 10 bulk CNG plants, 3 auto-CNG stations, 296 CNG road tankers and 47 industrial scale compressors; while post-acquisition the infrastructure will enlarge to 12 bulk CNG plants, 11 auto-CNG stations, 345 CNG road tankers and 67 CNG compressors, expansion coming from new regions. In addition to CNG infrastructure, the acquisition will also bring 44 LNG tanks and equipment along with 6 LNG road tankers.

In 2019, Naturelgaz distributed overall 167.0 mn Sm3 of CNG, while SOCAR Turkey LNG distributed 35.4 mn Sm3 of CNG & LNG.

Hasan Tahsin Turan, CEO of Naturelgaz stated that “We are very excited to have taken a solid step towards our growth strategy. Thanks to this acquisition, we will be reaching out to new regions in bulk CNG in Turkey, entering into the LNG business with a ready-to-use infrastructure and customer portfolio. Moreover, we believe in the future of auto-CNG business and its environmental and economic benefits. With this transaction, we will be increasing our auto-CNG station network considerably, to be able to capitalize on the future potential of this business.”

About SOCAR Turkey LNG
SOCAR Turkey LNG is operating with 2 industrial CNG and 8 auto-CNG stations as a subsidiary of SOCAR Turkey, since 2013. The company has LNG and CNG sales license from the Energy Market Regulatory Authority (EMRA). SOCAR Turkey LNG, which offers LNG and CNG for industrial usage also CNG as an alternative fuel to vehicle fleets of institutions operating in sectors such as industry, tourism, construction, transportation, currently serves in with 10 stations.

About Naturelgaz
Naturelgaz, a 95.5% subsidiary of GIH, is Europe’s and Turkey’s leading CNG (Compressed Natural Gas) distributor in terms of station infrastructure and bulk sales volume. The company focuses on the sales and distribution of bulk CNG to industrial and commercial customers – such as factories, power generators, hotels, asphalt plants – in addition to cities (households) not connected to a natural gas pipeline due to economic or geographic constraints.

Naturelgaz CNG infrastructure consists of 10 bulk CNG plants, 3 auto-CNG stations, 296 CNG road tankers and 47 industrial scale compressors. All facilities and equipment established and used by the company conform to international standards and regulations.

CNG Plants: Izmir, Bursa, Adapazarı, Antalya, Konya, Kayseri, Kırıkkale, Osmaniye, Rize, Elazığ
Auto CNG Stations: Istanbul (Alibeyköy), Bolu, Kocaeli (Çayırova)

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that, further to the Group’s announcement on 20th August 2019, Creuers Del Port de Barcelona SA (“Creuers”) has completed the purchase of Autoridad Portuaria de Malagas’s (Malaga Port Authority) 20.0% holding in the Malaga cruise port concession for €1.5m. This increases Creuers ownership of the Malaga cruise port concession to 100% and GPH’s effective ownership to 62% from 49.6%. This transaction is in line with GPH’s strategy to buy out, at fair value, minority shareholdings where possible and appropriate to do so.

Global Investment Holdings’ CNG subsidiary applied to the Capital Markets Board of Turkey to get approval to make the necessary amendments on its Articles of Association for the initial public offering...

Naturelgaz, a 95.5% subsidiary of Global Investment Holdings and Turkey’s & Europe's leading CNG (Compressed Natural Gas) supplier and distributor in terms of mother station infrastructure and bulk sales volume, has made an application to the Capital Markets Board of Turkey on January 20, 2020 to get approval to amend its Articles of Association in accordance with the capital markets legislation for the purpose of initial public offering of its shares.

Naturelgaz focuses on the sales and distribution of bulk CNG to industrial and commercial customers – such as factories, power generators, hotels, asphalt plants – in addition to cities (households) not connected to a natural gas pipeline due to economic or geographic constraints. Naturelgaz CNG infrastructure consists of 12 CNG plants and stations, 4 co-operation plants, 50,200 CNG cylinders and 47 industrial scale compressors. All facilities and equipment established and used by the company conform to international standards and regulations.

2018 was a turnaround year for Naturelgaz, in which the company has achieved outstanding progress in strengthening its financial position and operational capability. In 2018, Naturelgaz distributed overall 138 mn Sm3 of CNG, capturing a 16.9% share of the total non-piped natural gas market in Turkey. The company recorded a 25.2% market share through the hinterlands covered by its filling plants.

On the financial front, revenues increased by 32.0%, reaching 242.1mn TL, while operating EBITDA almost quadrupled, reaching 40.0mn TL and translating into c.11pp EBITDA margin expansion in 2018. On top of 2018 solid financial performance, as the best performer in 9M 2019 among all business segments, Naturelgaz’ revenues nearly doubled, reaching 325.2mn TL. Meanwhile, Naturelgaz’ operating EBITDA reached 82.3mn TL in the period, nearly tripling and translating into c.9pp EBITDA margin expansion.

As being Turkey’s and Europe’s leading CNG distributor and best in class operation capability, Naturelgaz has a growth plan in four main areas; 

- In Turkey, there are many zones that natural gas has not reached either because of geographical obstacles or poor economics. Supplying CNG into pipeline of remote towns in Turkey, in cooperation with local gas distributors, where there is no natural gas distribution infrastructure

- Carrying the experience and investments to the surrounding markets such as Africa where the is underdeveloped power infrastructure and strong growth

- Developing Auto CNG projects in cooperation with OEM producers and conversion companies

- To increase the number of projects by supplying integrated CNG solutions to well operators

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that, further to the Group's announcement on 24 May 2019, Goulette Cruise Holding Ltd, its joint venture with MSC Cruises S.A. ("MSC"), has completed the acquisition of Goulette Shipping Cruise, the company that operates the cruise terminal in La Goulette, Tunisia, from Al Karama Holding.

The concession to operate the cruise port was awarded to Goulette Shipping Cruise in 2006 on a 30-year basis, with a right to extend the term for an additional 20 years. While passenger volumes have been low in recent years, in 2010, La Goulette welcomed c900k passengers and between 2011-2014 it welcomed on average 441k cruise passengers per annum.