Emerged out of the pandemic stronger: Stunning Profit, Revenue, EBITDA growth…

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 14 different countries across 4 continents, announced its 9-month consolidated results which ended 30 September 2022, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 262.2mn TL in 9M 2022, compared to a net loss of TL 398.7mn in the same period 2021. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 340% in 9M 2022 over the same period in 2021, reaching TL 4,628.7mn; while Consolidated Operating EBITDA rose 760% to TL 1,630.3mn in the same period.

 

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:

GIH has delivered an outstanding set of results in the third quarter of 2022 despite challenging macroeconomic conditions. The third quarter of the year was a period in which inflationary pressures came to the fore due to increased energy and commodity prices driven by geopolitical tensions and compelling macroeconomic effects. I am having the pleasure to say that we have emerged out of the pandemic stronger with an expanded ports portfolio on a wider geography, deleveraged balance sheet, successful IPOs of our gas and power generation businesses, dividend upstream and such. We had made a promising start to the year in Q1; which had continued into Q2. The ongoing accelerated growth continued strongly in Q3 2022, presenting itself in outstanding revenue, EBITDA and profit figures and confirming normalization. We have always trusted in the structure of companies in our portfolio. Our positive profitability has increased on a consolidated basis with normalized commercial life after the pandemic. All our business lines, with gas and ports businesses contributing the most, demonstrated superior performances in the third quarter of 2022.

The restart of the cruise business continued to dramatically progress and third quarter results were better than expectations thanks to the higher occupancy rates driven by strong demand. Occupancy rates for the cruise ships continued to improve, averaging between 90-95%; while in the Caribbeans, occupancy rates reached c.105% by the end of Q3 2022. The cruise industry currently expects occupancy rates to improve further and reach triple digits (pre-pandemic levels) by the end of the year.

The Chairman added, “We have continued our strategic expansion in the ports despite the continuing challenges of the pandemic. In Q1, we had added Tarragona Cruise Port in Spain and Crotone Cruise Port in Italy to our network and in Q2 we had received final acceptance for the concessions for three cruise ports in the Canary Islands: Las Palmas de Gran Canaria, Arrecife (Lanzarote) and Puerto del Rosario (Fuerteventura). In Q3, we had signed a 30-year concession agreement with the Puerto Rico Ports Authority for San Cruise Port, Puerto Rico, marking a significant development in our strategic ambitions in the Caribbean. Adding on, recently, we have signed a Memorandum of Understanding (MoU) with the Government of St Lucia for a 30-year concession, with a potential 10-year extension option for the cruise related operations in St Lucia. Under the terms of the MoU, both parties have entered into an exclusive period. During this period, GPH and the Government of St Lucia will continue to carry out extensive due diligence, and both parties will work towards successfully signing the concession agreement. In addition, GPH will invest in a material upgrade of the cruise port facilities, including the expansion of the existing berth in Point Seraphine, which will allow the handling of Oasis class ships, as well as transforming the retail experience.

The Chairman added: “Our gas business continued its accelerated growth in the third quarter of 2022. The Company's market share in the total non-piped (CNG & LNG) natural gas market is 33.2% and in bulk CNG product is 82.5%. Our gas business decreased seasonality effect to a large extend, thanks to the increase in City Gas coverage (number of counties supplied by City Gas business line increased from 80s to triple digits).

The Chairman continued: “I am proud to say that our power generation subsidiary, Consus Enerji (operating in renewables and distributed power) successfully completed its IPO process in April 2022, marking a major milestone in its history. Such IPO brought us closer to our goals to list all operational companies under Global Investment Holdings’ umbrella, ensuring profitability hence dividends to our shareholders and adopting and introducing best practice transparency and corporate governance principles across the Group. Furthermore, Consus is also planning to complete hybrid solar farm investments with 3.6 MW capacity during Q4 2022 and Q1 2023 in its biomass plant areas in parallel with the new resource regulation to improve generation performance as well as plant efficiencies. Accordingly, the generation licenses of two biomass power plants have been amended, by which the facilities will operate as hybrid renewable power plants and generate electricity from both biomass and solar energy (primary source: biomas, secondary source: solar). Furthermore, in October 2022, Consus applied to EMRA to increase the hybrid capacity to 11.7MW in total. In distributed power, Consus has initiated developing solar power plants on BOT and BTO basis for large-scale industrial and commercial enterprises to compensate their electricity consumption for a potential capacity in excess of 200MW.

The Chairman added: “Ardus Gayrimenkul Yatırımları A.Ş., 100% subsidiary of GIH has sold its shares in Pera Gayrimenkul Yatırım Ortaklığı A.Ş., previously a subsidiary of GIH and GIH has sold its shares in Pera Gayrimenkul Yatırım Ortaklığı A.Ş. As a result, GIH has no direct or indirect shares left in Pera Gayrimenkul Yatırım Ortaklığı A.Ş”.

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:

“Our Group has been taking solid effective steps to reduce its effective debt burden, a process we started in 2021. The listing of our subsidiaries Naturelgaz and Consus Enerji, the sale of our commercial port in Antalya, and the capital increase process of GIH resulted as holding stand-alone gross debt decline by 46% in US$ terms in 2021, while marking a further 14% decline in 2022 third quarter. Meanwhile, EBITDA generation was remarkably boosted in Q3 2022 (Jul-Sep) thanks to the bolstering activity in all of our business lines. Accordingly, our Net Debt / EBITDA was positively impacted, declining further to 4.3x at Q3 2022 from 6.7x at Q2 2022. Looking ahead, we maintain our positive stance along the year and beyond.

Global Investment Holdings reported 4.6 bn TL revenues (excluding IFRIC-12 Construction Revenue) in 9M 2022, indicating a robust 340% increase yoy with strong contribution from all business divisions, with the gas division and port division contributing the most. The improvement in revenue generation has gained stronger momentum in Q3 2022 (Jul-Sep), in line with strengthening activity in underlying businesses, marking a 5 times increase over Q3 2021.

Global Investment Holdings’ consolidated operating EBITDA soared by 760% in 9M 2022 yoy and reached 1.6mn TL, driven by a solid contribution from all business divisions, with the Ports and Gas division contributing the most. Strong EBITDA generation gained further momentum in Q3 2022 (Jul-Sep) in line with the increasing occupancy rates and cruise lines having returned to service with full fleet capacity.

GIH reported a consolidated net profit of 262.2m TL in 9M 2022, compared to a net loss of TL 398.7m in 9M 2021. The bottom line incorporated TL 739.3 of non-cash charges of which TL 529.4m were depreciation and amortization, and TL 209.9m in net foreign exchange loss. Meanwhile, TL 104.7m one-off income included project expenses and IFRS related adjustments such as non-cash valuation gain from investment properties.

Depreciation and amortization charges, increased from TL 266,2.2m in 9M 2021 to TL 529.4m in 9M 2022. If the FX rate had remained the same as 9M 2021 average, depreciation and amortization expense would have been TL 256.1m lower.

The Group’s net interest expenses increased from TL 216.5m TL in 9M 2021 to TL 347.8m in 9M 2022. If average FX rate had maintained its 9M 2021 level, net interest expense would have been TL 170.6m lower than the reported figure in 9M 2022.

On a divisional basis:

Naturelgaz maintained its solid financial position and recorded significant growth in 9M 2022. Sales volume reached 163.2mn Sm³ in 9M 2022, representing an increase of 17% yoy. Citygas sales, whose share in the total sales volume increased gradually in 2021 and 9M 2022, continued its rapid growth in the third quarter of the year as well. Citygas sales volume increased by 72% yoy, reaching 44.3mn Sm³. Revenues increased by 496% yoy in 9M 2022, reaching TL 2,4 mn, reflecting the increase in sales volume especially in Citygas, Bulk CNG. Gross profit reached TL659.4 mn in 9M 2022, representing an increase of 597% yoy, based on company standalone financials. EBITDA increased by 813% yoy in 9M 2022, reaching TL 604mn. 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.

Profit before tax, which was TL 25.6mn in Q3 2021, increased to TL 535.4mn in the third quarter of 2022, based on company standalone financials. Naturelgaz’s net financial debt amounting to 2.4mn TL as of June 30, 2022, has turned into 192,6mn TL net cash surplus as of September 30, 2022. In addition, Naturelgaz distributed a gross dividend payment of TL 35.8 mn to shareholders on May 9, 2022.

On the ports side, Average occupancy rates improved to above 90 during Q3 2022( Consolidated port, volume-weighted). Major cruise lines expect occupancy rates to improve and reach triple digits (pre-pandemic levels) in 2023. In the Caribbeans, occupancy rates already exceeded 100% at GPH`s ports. While the average occupancy rates of the cruise ships visiting GPH`s consolidated ports in January 2022 was 42% only, it continued to increase gradually over the months and reached 97% in August 2022. Number of calls at GPH`s consolidated ports in 2022 standalone was 24% higher than September 2019 (prepandemic) levels, while number of passengers visiting GPH ports in September 2022 standalone was 7% higher than 2019 levels (2019 levels are adjusted to include full year for Nassau and Antigua). In Jan-Sep 2022, total consolidated passenger numbers reached 76% of Jan-Sep 2019; while total consolidated call numbers were %11 higher than Jan-Sep 2019. Meanwhile, current cruise call reservations for calendar year 2023 are 4,538, implying passenger volumes in excess of 11 million assuming pre-pandemic occupancy rates. These expected values compare favourably to the actual number of cruise calls in the last pre-pandemic year 2019, where GPH consolidated ports reached 3,346 cruise calls (Adjusted to include full year for Nassau and Antigua)

Revenue and positive EBITDA generation gained further momentum in Q3 2022 in line with the increasing occupancy rates and cruise lines having returned to service with full fleet capacity. Accordingly, revenues surged by 707% yoy, reaching 1.2bn TL (excluding IFRIC-12 Construction Revenue) in 9M 2022, while adjusted EBITDA marked a positive 737 mn TL in 9M 2022 as opposed to -21.5mn TL in 9M 2021.

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 80% yoy in 9M 2022, generating 447mn TL. The division generated 165mn TL EBITDA in 9M 2022, indicating a 73% increase yoy, which is mainly attributable to the increase in electricity prices and FX rates. All sub-segments of the power division contributed to the revenue growth of the power division in 9M 2022 compared to the same period in 2021. On the EBITDA front, all sub-segments except for distributed power contributed to the EBITDA growth in 9M 2022 compared to a year ago. The EBITDA decline in distributed power sub-segment was due to the gas restrictions in Q1 2022 and the increase in gas prices.

Registering a major milestone in its history, Consus Enerji has successfully completed its IPO process in April 2022. Trading on Borsa Istanbul for Consus shares commenced on 20^th April 2022 with 30% free float, while GIH remains the largest individual shareholder with 72.4% stake.

The mining division realized 423,853 tons of product sales volume in the third quarter of 2022, up by 10% yoy, mainly due to strong feldspar demand from export markets. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume reached 342,401 tons while domestic sales volume was realized at 81,452 tons for the period.

The mining division reported revenues of 268mn TL, surging by 122% yoy in 9M 2022, thanks to the growth of export sales and hard currency earnings through export markets. Such performance indicates a strong demand in the export markets. Operating EBITDA soared by 113% in 9M 2022 YoY, reaching 92mn TL, driven by the sales volume increase and dominancy of hard currency denominated revenues

The real estate division registered 29mn TL increase in revenues and 16mn TL increase in EBITDA in 9M 2022 yoy, with revenues and EBITDA standing at 51mn TL and 25mn TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations. Rental revenues increased by 25mn TL with the post-pandemic normalization, while real estate sales inreased by 4.5mn TL

The brokerage & asset management division’s revenues reached 236mn TL in 9M 2022, 127% increase yoy, thanks to the contribution from increasing in transaction volumes and full consolidation of İstanbul Asset Management. Meanwhile, operating EBITDA stood at 69mn TL in 9M 2022 (44mn TL in 9M 2021).

Indebtedness:

Since 2021, we have intended to decrease our indebtedness rapidly and have made good progress towards this goal. The listing of our subsidiaries Naturelgaz and Consus Enerji, the sale of our commercial port in Antalya, and the capital increase process of GIH melted down holding stand-alone gross debt by 46% in US$ terms in 2021, while marking a further 14% decline in 9M 2022. (Gross debt decreased from USD 55.8 mn at the end of 2021 to USD 47.8mn at 30.09.2022.)

Holding consolidated net debt decreased from 556.6 mn USD (TL 7.223 mn ) at the end of 2021 to 549.5mn USD (TL 10.167 mn ) at 30.09.2022. Meanwhile, excluding GIH, consolidated gross debt of our operational divisions stood at 622.3mn USD, of which 551mn USD belongs to our ports division GPH.

Consolidated Net Debt/EBITDA multiplier declined to 4.3x at 30.09.2022 from 11.6x at the end of 2021. However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier declines to 3.2x at 30.09. 2022. When entire ports business is excluded, Net Debt/EBITDA multiplier declines further to 1.0x at 30.09.2022.

For further information, please contact:

GIH Investor Relations
Tel: +90 212 244 60 00
E-mail: investor@global.com.tr

Impressive set of results with strong contribution from all business lines…

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 13 different countries across 4 continents, announced its first half consolidated results which ended 30 June 2022, and commented on recent developments.
Full year figures for Global Investment Holdings reported Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) of TL 2,410.7m for the first half of 2022 with 285% increase over the same period in 2021. Consolidated Operating EBITDA rose 565% to TL 714.2m in the same period.
Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:

“We had made a good start to the year with promising Q1 numbers; and, I am now having the pleasure to have seen that a large-scale recovery from the pandemic was well underway in the second quarter of 2022, even with a stronger pace. All our business lines demonstrated superior performances in the second quarter of 2022, underlining the ongoing return to normalisation.

The restart of the cruise business continues to dramatically progress thanks to the widespread easing of travel restrictions and strong pent-up demand. The easing of restrictions coincided with the start of the main Caribbean cruise season, paving the way for GPH ports in the Caribbean to experience a significant and sustained recovery in volumes. Cruise lines returned their entire fleets back into operation in June 2022, in time for the peak summer season. Occupancy rates for the cruise ships continued to improve, averaging between 80-85% by the end of Q2 2022. The cruise industry currently expects occupancy rates to continue to improve and average around 90% in Q3 2022 and reach triple digits (pre-pandemic levels) by the end of the year. At GPH ports, number of calls in June 2022 was 19% higher than June 2019 (prepandemic) levels, while number of passengers reached %80 of March 2019 levels.”

The Chairman added, “We have continued our strategic expansion in the ports despite the continuing challenges of the pandemic. We had added Tarragona Cruise Port in Spain and Crotone Cruise Port in Italy to our network in Q1 2022. Adding on, we have recently received final acceptance for the concessions for three cruise ports in the Canary Islands: Las Palmas de Gran Canaria, Arrecife (Lanzarote) and Puerto del Rosario (Fuerteventura). The concession for Las Palmas, the largest port among the three, is for 40 years and the concessions for the two other ports are 20 years. Furthermore, this week we have signed a 30-year concession agreement with the Puerto Rico Ports Authority for San Cruise Port, Puerto Rico, marking a significant development in our strategic ambitions in the Caribbean. San Juan Cruise Port, which handled 1.8m unique passengers in 2019 (including c. 0.4m homeport passengers, i.e. 2.2m passenger movements), will become the third-largest cruise port in GPH's global network. The addition of this fantastic location to our cruise port network marks a further important step in our growth strategy and will grow cruise passenger volumes across our network to over 16 million passengers per annum; while increasing our global cruise market share to 10%. The growth we have delivered is not just about adding new ports. We now have a more balanced network of cruise ports in terms of regional exposure and seasonality. In 2017, the majority of the cruise activity was centred in the Med, with 88% of the passenger volume; whereas now, Mediterranean represents 50% of the passenger volume at our consolidated and managed ports.”

The Chairman continued: “I am proud to say that our power generation subsidiary, Consus Enerji (operating in renewables and distributed power) successfully completed its IPO process in April 2022, marking a major milestone in its history. Consus’s IPO was one of the crucial and momentous steps according to the Group Strategy that was set out back in 2020. Accordingly, our ultimate goals are listing all operational companies under Global Investment Holdings’ umbrella, ensuring profitability hence dividends to our shareholders and adopting and introducing best practice transparency and corporate governance principles across the Group.”

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:
“Our Group has been taking solid effective steps to reduce its effective debt burden, a process we started in 2021. The listing of our subsidiaries Naturelgaz and Consus Enerji, the sale of our commercial port in Antalya, and the capital increase process of GIH melted down holding stand-alone gross debt by 46% in US$ terms in 2021, while marking a further 9% decline in 2022 first half. Meanwhile, EBITDA generation was remarkably boosted in Q2 2022 (Apr-Jun) thanks to the drastically lessening impact of Covid 19 and bolstering activity in all of our business lines. Accordingly, our Net Debt / EBITDA was positively impacted. Looking ahead, we maintain our positive stance along the year and beyond. According to our forecasts, for FY 2022, we expect to triple our consolidated revenues and quadruple consolidated EBITDA yoy.”

Global Investment Holdings reported 2.4 bn TL revenues (excluding IFRIC-12 Construction Revenue) in 6M 2022, indicating a robust 285% increase yoy with strong contribution from all business divisions, with the gas division contributing the most. The improvement in revenue generation has gained stronger momentum in Q2 2022 (Apr-Jun), in line with the radically diminishing impact of Covid 19 and strengthening activity in underlying businesses, marking a 5 times increase over Q2 2021.

Global Investment Holdings’ consolidated operating EBITDA soared by 565% in 6M 2022 yoy and reached 714.2mn TL, driven by a solid contribution from all business divisions, with the Ports and Gas division contributing the most. Strong EBITDA generation gained further momentum in Q2 2022 (Apr-Jun) in line with the radically diminishing impact of Covid 19 and strengthening activity in underlying businesses, displaying a 9 times increase over Q2 2021.

GIH reported a consolidated net profit of 81.3m TL in 6A 2022, compared to a net loss of TL 417.7m in 6A 2021. The bottom line incorporated TL 406.2 of non-cash charges of which TL 339.4m were depreciation and amortization, and TL 66.8m in net foreign exchange loss. Meanwhile, TL 112.5m one-off income included project expenses and IFRS related adjustments such as non-cash valuation gain from investment properties.

Depreciation and amortization charges, increased from TL 173,2.2m in 6A 2021 to TL 339.4m in 6M 2022. If the FX rate had remained the same as 6A 2021 average, depreciation and amortization expense would have been TL 153.4m lower.

The Group’s net interest expenses increased from TL 155.2m TL in 6M 2021 to TL 171.2m in 6M 2022. If average FX rate had maintained its 6M 2021 level, net interest expense would have been TL 82.9m lower than the reported figure in 6M 2022.

On a divisional basis:

Naturelgaz maintained its solid financial position and recorded significant growth in 6M 2022. Sales volume reached 115.8mn Sm3 in 6M 2022, representing an increase of 30% yoy. Citygas sales, whose share in the total sales volume increased gradually in 2021 and 6A 2022, continued its rapid growth in the second quarter of the year as well. Citygas sales volume increased by 74% yoy, reaching 41.8mn Sm3. Revenues increased by 432% yoy in 6M 2022, reaching TL 1,235 mn, reflecting the increase in sales volume especially in Citygas, Bulk CNG and the increase in gas prices. Gross profit reached TL303.3 mn in 6M 2022, representing an increase of 422% yoy, based on company standalone financials. EBITDA increased by 618% yoy in 6M 2022, reaching TL 260.7mn. The decrease in seasonality thanks to the increase in Citygas sales volume, effective cost management, and improvement in gas margin contributed significantly to the EBITDA growth.

Profit before tax, which was TL 6.1mn in Q2 2021, increased to TL 223.7mn in the second quarter of 2022, based on company standalone financials. As of June 30, 2022, Naturelgaz's net debt amount was TL 2.4m. In addition, Naturelgaz distributed a gross dividend payment of TL 35.8 mn to shareholders on May 9, 2022.

• On the ports side, major cruise lines have returned to service with full fleet capacity in June 2022, while port operations kept gaining acceleration at high speed. Occupancy rates improved to average between 80-85% by the end of Q2 2022. Major cruise lines expect occupancy rates to improve and average around 90% in Q3 2022 and reach triple digits (pre-pandemic levels) by the end of the year. Occupancy rates of the cruise ships visiting GPH ports in the Caribbeans in June 2022 surpassed 100%, while averaging around 65% at GPH’s Mediterranean ports. Number of calls at GPH ports in July 2022 standalone was 10% higher than July 2019 (prepandemic) levels, while number of passengers visiting GPH ports in July 2022 standalone reached %99 of July 2019 levels. The improvement was mainly driven by the strong passenger increase at Ege Port Kuşadası. Total consolidated number of passengers reached 68% of January-July 2019 levels during January-July 2022; while total consolidated number of calls were %8 higher than January-July 2019 levels.

Revenue and positive EBITDA generation gained further momentum in Q2 2022 in line with the diminishing impact of travelling restrictions, cruise lines returning to service with full fleet capacity and increasing occupancy rates. Accordingly, revenues surged by 755% yoy, reaching 587.1mn TL (excluding IFRIC-12 Construction Revenue) in 6M 2022, while consolidated adj. EBITDA marked a positive 299 mn TL in 6M 2022 as opposed to -22.8mn TL in 6A 2021.

The power division’s s revenues, which include distributed energy facilities (cogeneration/trigeneration), biomass and solar based renewable energy production rose 59% yoy in 6M 2022, generating 263mn TL, mainly driven by the increase in electricity prices and FX rates. The division generated 84.6mn TL EBITDA in the first half of 2022, indicating a 31% increase yoy, which is mainly attributable to the increase in electricity prices and FX rates.

Registering a major milestone in its history, Consus Enerji has successfully completed its IPO process in April 2022. Trading on Borsa Istanbul for Consus shares commenced on 20th April 2022 with 30% free float, while GIH remains the largest individual shareholder with 70% stake.

The mining division realized 270,584 tons of product sales volume in the second quarter of 2022, up by 14% yoy, mainly due to strong feldspar demand from export markets. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume reached 214,926 tons while domestic sales volume was realized at 55,658 tons for the period.

The mining division announced revenues of 156.3mn TL in the first half of 2022, indicating 115% increase yoy. The operating EBITDA was 53.1mn TL in 6A 2022, indicating a robust 91% growth yoy. Volume growth driven by the strengthening demand in the export markets, as well as dominancy of hard currency denominated revenues were factors supporting the improvement in profitability during the period.

The real estate division registered 19.9m TL increase in revenues and 9.7m TL increase in EBITDA in 6M 2022 yoy, with revenues and EBITDA standing at 31.7m TL and 12.1m TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations. Rental revenues increased by 15.3m TL with the drastically declining pandemic impact, while real estate sales inreased by 4.5m TL.

The brokerage & asset management division’s revenues reached 136.2mn TL in 6M 2022, a 85% increase yoy, thanks to the contribution from increasing in transaction volumes and full consolidation of İstanbul Asset Management. Meanwhile, operating EBITDA stood at 39.5mn TL in 6M 2022 (31.6mn TL in 6M 2021).

Indebtedness:

Since 2021, we have intended to decrease our indebtedness rapidly and have made good progress towards this goal. The listing of our subsidiaries Naturelgaz and Consus Enerji, the sale of our commercial port in Antalya, and the capital increase process of GIH melted down holding stand-alone gross debt by 46% in US$ terms in 2021, while marking a further 9% decline in 2022 first half. (Gross debt decreased from USD 55.8 mn at the end of 2021 to USD 50.9mn at 30.06.2022.)

Holding consolidated net debt decreased from 556.6 mn USD (TL 7.223 mn ) at the end of 2021 to 550.9mn USD (TL 9.182 mn ) at 30.06.2022. Meanwhile, excluding GIH, consolidated gross debt of our operational divisions stood at 627.4mn USD, of which 549.6mn USD belongs to our ports division GPH.

Consolidated Net Debt/EBITDA multiplier declined to 6.7x at 30.06.2022 from 11.6x at the end of 2021. However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier declines to 5.1x at 30.06. 2022. When entire ports business is excluded, Net Debt/EBITDA multiplier declines further to 1.5x at 30.06.2022.

 

For further information, please contact:

GIH Investor Relations
Tel: +90 212 244 60 00
E-mail: investor@global.com.tr

A good start to the year, leaving the clouds behind…

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 13 different countries across 4 continents, announced its first quarter consolidated results which ended 31 March 2022, and commented on recent developments.

Full year figures for Global Investment Holdings reported Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) of TL 901.8m for the first quarter of 2022 with a 194% increase over the same period in 2021. Consolidated Operating EBITDA rose 283% to TL 176.4m in the same period.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:

“After two years of disruption by the pandemic, I am happy to see that the effects of the pandemic are now finally fading away and that we have made a good start to 2022 with a large-scale recovery underway. Almost all our business lines demonstrated superior performances in the first quarter of 2022, underlining the ongoing return to normalisation.

Thankfully today, the global cruise industry is operating almost normally and the restart of the cruise business continues to dramatically progress thanks to the stringent protocols and strong pent-up demand. Over the past two months, global cruise demand has materially surpassed both pre-Omicron and 2019 levels. As of now, major cruise lines have returned to service with 95% of fleet capacity and are expecting 100% fleet deployment by Summer 2022, in time for the peak summer season. Omicron moderated load factors in January and February; yet load factors improved for the rest of the quarter, standing at 65-70% by the end of March 2022. Again, major cruise lines expect load factors to improve, averaging between 75-80% in the second quarter, and reach triple digits by the end of the year. At GPH ports, the number of calls in March 2022 was 14% higher than March 2019 (pre-pandemic) levels, while the number of passengers visiting GPH ports in March 2022 reached 62% of March 2019 levels (This ratio was 35% in January 2022 and 47% in February 2022). The indicators for GPH’s Caribbean ports, Nassau and Antigua (high season) show that March 2022 numbers have reached and even exceeded March 2019 numbers.”

The Chairman added, “We have continued our strategic expansion in the ports. We have added Tarragona Cruise Port in Spain and Crotone Cruise Port in Italy to our network, further strengthening our presence in the Mediterranean. Tarragona is a 12-year concession, with a 6-year extension option; while Crotone is a 4-year renewable concession.”

The Chairman continued: “I am proud to say that our power generation subsidiary, Consus Enerji (operating in renewables and distributed power) successfully completed its IPO process in April 2022, marking a major milestone in its history. I would like to welcome our new shareholders who share our vision. I would like to extend my sincere gratitude to all my colleagues who worked very hard to make this successful transaction happen. We look forward with confidence to the next stage of our development as a listed company. I would also like to add that Consus’s IPO was one of the crucial and momentous steps according to the Group Strategy that was set out back in 2020. Accordingly, our ultimate goals are listing all operational companies under Global Investment Holdings’ umbrella, ensuring profitability hence dividends to our shareholders and adopting and introducing best practice transparency and corporate governance principles across the Group.”

The Chairman added: “With respect to the current tragic war situation in Ukraine, we extend our sympathies and condolences to the country and its people who continue to be affected. We are hoping for a quick resolution.”

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated: “Our Group has been taking solid effective steps to stabilise its liquidity position and manage its long and short-term debt obligations. Our company continues to aim to reduce its effective debt burden, a process we started in 2021. The listing of NaturelGaz, the sale of our commercial port in Antalya, the capital increase process of GIH melted down holding stand-alone debt by nearly half in 2021. The listing of Consus Enerji should also help reduce the relative debt levels in the following quarters. As a Group, we have received gross proceeds of TL519.8mn from the offering; of which TL 283.5mn is at Global Investment Holdings level and TL 263.3mn is at Consus Enerji level. At the Holding level, proceeds will predominantly be used to pay off debt at. At Consus Enerji level, proceeds will be used for new investments, working capital requirements and debt reduction.”

Global Investment Holdings reported 901.8mn TL revenues (excluding IFRIC-12 Construction Revenue) in Q1 2022, indicating a robust 194% increase yoy with strong contribution from all business divisions, with the gas division contributing the most. The sequential trend in Q1 2022 compared to Q1 2021 confirms that the improvement in performance has gained further momentum in Q1 2022, in line with the diminishing impact of Covid 19 and strengthening activity in underlying businesses.

Global Investment Holdings’ consolidated operating EBITDA soared by 283% in Q1 2022 yoy and reached 176.4mn TL, driven by a solid contribution from the gas, power, mining, real estate divisions, with the ports division contributing the most to the increase. Strong EBITDA generation continued in Q1 2022 in line with the diminishing impact of Covid 19 and strengthening activity in underlying businesses.

GIH reported a consolidated net profit of 76.8m TL in Q1 2022, compared to a net loss of TL 184.7m in Q1 2021. The bottom line incorporated TL 166.4m of non-cash charges of which TL 172.4m were depreciation and amortization, and TL 6.0m in net foreign exchange gain. Meanwhile, TL 105.1m one-off income/(expenses) included project expenses and IFRS related adjustments such as non-cash valuation gain from investment properties

Depreciation and amortization charges, increased from TL 89,3.2m in Q1 2021 to TL 172.4m in Q1 2022. If the FX rate had remained the same as 2021 average, depreciation and amortization expense would have been TL 81.1m lower. Also, the Group has incurred TL 6,0m in net non-cash foreign exchange gain, compared to TL 114.7m foreign exchange loss in Q1 2021.

The Group’s net interest expenses decreased from TL 78.4m TL in Q1 2021 to TL 44.6m in Q1 2022 thanks to the decrease in consolidated net debt. If the average FX rate had maintained its 1Q 2021 level, net interest expense would have been TL 22.3m lower than the reported figure in Q1 2022.

On a divisional basis:
Naturelgaz maintained its solid financial position in Q1 2022 thanks to its operational capability and increased operations in the Citygas business line. Sales volume reached 67.9mn Sm3 in Q1 2022, representing an increase of 41% yoy. Citygas sales, whose share in the total sales volume increased gradually in 2021, continued its rapid growth in the first quarter of the year as well. Citygas sales volume increased by 84% yoy, reaching 35.1mn Sm3. Naturelgaz improved its net cash position to 58.1mn TL as of 31.03.2022. In addition, the Shareholders’ Meeting held on April 28, 2022 agreed to distribute a gross dividend payment of TL 35.8 mn.

Revenues increased by 267% yoy in Q1 2022, reaching TL 458.0 mn, reflecting the increase in sales volume especially in Citygas, Bulk CNG, but of course also the increase in gas prices. Gross profit reached TL 80,5 mn based on company standalone financials in Q1 2022. Thus, the Company realized approximately 60% of the gross profit of 2021, in the first quarter of 2022. EBITDA increased by 189% yoy in Q1 2022, reaching TL 63.9mn. Profit before tax, which was TL 0.3mn in Q1 2021, increased to TL 41.8mn in the first quarter of 2022.

On the ports side, the outlook for the cruise industry continues to improve with accelerated recovery. Major cruise lines have returned to service with 95% of fleet capacity; while expecting 100% fleet deployment by Summer 2022, in time for the peak summer season in the Mediterranean. Omicron moderated load factors in January and February; yet load factors improved to 65-70% by the end Q1 2022. Major cruise lines expect load factors to improve and average between 75-80% in Q2 2022, and reach triple digits by the end of 2022. Number of calls at GPH ports in March 2022 was 14% higher than March 2019 (pre-pandemic) levels; while number of passengers visiting GPH ports in March 2022 reached 62% of March 2019 levels (Jan 22: 35%, Feb 22: 47%). The indicators for GPH’s Caribbean ports, Nassau and Antigua (high season) show that March 2022 numbers have reached and even exceeded March 2019 numbers. Number of calls in Nassau in March 2022 was 20% higher than March 2019 levels, while number of passengers reached 72% of March 2019 levels. Similarly, number of calls in Antigua in March 2022 was 19% above March 2019 levels, and number of passengers reached 56% of March 2019 levels. On a cumulative basis during January-March 2022; total consolidated number of calls totally caught up with March 2019 numbers, while total consolidated number of passengers reached 48% of March 2019 levels. Numerically, passenger volumes of 867k in Q1 2022 were up from the 10k in Q1 2021, while number of calls increased from 12 in Q1 2021 to 632 in Q1 2022.

Revenue and positive EBITDA generation gained further momentum in Q1 2022 in line with the diminishing impact of Covid. The ports division reported 170.5mn TL revenues (excluding IFRIC-12 Construction Revenue) in Q1 2022, up 489% yoy. When cruise-only revenue is considered, the improvement becomes more striking in Q1 2022 with nearly 9-fold increase yoy. Meanwhile, operating consolidated adjusted EBITDA marked a positive 51.2mn TL in Q1 2022 as opposed to -20.1mn TL in Q1 2021.

The power division reported 126.1mn TL revenues in Q1 2022, a 65% increase yoy. Meanwhile, the division generated 37.7mn TL EBITDA in Q1 2022, indicating a 46% increase YoY, which is mainly attributable to the increase in electricity prices and FX rates.

Registering a major milestone in its history, Consus Enerji has successfully completed its IPO process in April 2022. Trading on Borsa Istanbul for Consus shares commenced on 20th April 2022 with 30% free float, while GIH remains the largest individual shareholder with 70% stake.

The mining division realized 124,187 tons of product sales volume in the first quarter of 2022, up by 25% yoy, mainly due to strong feldspar demand from export markets. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume reached 104,549 tons while domestic sales volume was realized at 19,638 tons for the period. The mining division announced revenues of 68.6mn TL in the first quarter of 2022, indicating 136% increase YoY. The operating EBITDA was 22.6mn TL in Q1 2022, indicating a robust 101% growth yoy and delivering a 32.9% operating EBITDA margin. Volume growth mainly driven by the strengthening demand in the export markets as well as dominancy of hard currency denominated revenues were factors supporting the improvement in profitability during the period.

The real estate division registered 9.3m TL increase in revenues and 6.0m TL increase in EBITDA in Q1 2022 yoy, with revenues and EBITDA standing at 14.6m TL and 6.4m TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations. Rental revenues increased by 7.3m TL with the end of the pandemic impact, while real estate sales increased by 2.0m TL.

The brokerage & asset management division’s revenues stood at 63.1mn TL in Q1 2022, registering a 50% increase yoy; while operating EBITDA was 18.1m TL as opposed to 21.3mn TL in Q1 2021. The decrease in EBITDA was mainly attributable to the decrease in brokerage trading volumes

Indebtedness:

Holding consolidated net debt decreased from 556.6 m USD at the end of 2021 to 544.8 m USD at the end of Q1 2022.

For 2021, we had intended to decrease our indebtedness rapidly and have made good progress towards this goal. We continue to focus on deleveraging in 2021. The Group has received gross proceeds of TL519.8mn from the initial public offering of Consus Enerji in April 2022; of which TL 283.5mn is at Global Investment Holdings level. Global Investment Holdings will use such proceeds to pay off debt at the holding level, which should help improve debt levels in the coming periods.

Major operational developments and corporate activity

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, namely ports infrastructure, renewable energy and asset management.

Global Ports Holding continuously monitors potential public and private acquisitions around the world. This led, for example, to, Tarragona Port Authority ("Port Authority") awarding Global Ports Holding a 12-year concession, with a 6-year extension option, to manage the services for cruise passengers in Tarragona, Spain. In Q3 2021, a €30m investment into the port infrastructure in Tarragona Port was completed. This investment programme included a new cruise pier in the "moll de balears" which can now handle the world's largest cruise ships, while berth capacity has been doubled to four ships at any one time. In addition, as well as expanding the general area available for cruise operations, the Port Authority has invested in the provision of shore power, which will significantly reduce the Co2 emissions from cruise ships while they are in port. Under the terms of the agreement, GPH will invest up to €5.5m into building a new state of the art modular cruise terminal, which will utilise solar power to ensure the sustainable provision of the terminal's energy needs. The new terminal will provide cruise passengers with an improved port experience, including retail and F&B opportunities, while new coach and car parking facilities will significantly improve the ports transport infrastructure. The innovative modular design of the terminal will provide maximum flexibility to adapt the terminal to meet future capacity needs and to provide a vibrant and exciting event space in Tarragona. In 2019, prior to the increase in berth capacity, Tarragona cruise port welcomed c130k cruise passengers. Tarragona is situated less than an hour's drive from Barcelona airport and the recently completed investment into the port infrastructure and the planned new terminal will significantly improve the port's attractiveness for turnaround operations in the region. In addition, a Concession Agreement has been signed with the Port Authority System of the South Tyrrhenian and Ionian seas (ports of Gioia Tauro, Corigliano, Crotone, Palmi and Vibo Valentia) for a 4-year renewable concession to manage the services for cruise passengers in the Port of Crotone, Italy. GPH will invest in improving systems, equipment and technology to improve the operational performance of the cruise port and to ensure environmental protections and safety and security programs.

Global Investment Holdings’ power generation subsidiary, Consus Enerji operating in renewables and distributed power had applied to the Capital Markets Board of Turkey for the purpose of initial public offering (IPO). Consus Enerji has successfully completed the IPO process in April 2022. The IPO, priced at 4.50 TL per share and executed with fixed price-equal allocation and direct sale from the stock exchange, has received a pleasing interest with 550.9 million TL demand from 173,974 retail investors. Accordingly, 115,500,000 shares subject to the offering, including the over-allotment option have been entirely subscribed, marking a 30% free float for the company. Based on the offer price, the total market capitalisation of Consus Enerji at the commencement of trading was approximately 1.8 billion TL. Trading on Borsa Istanbul for Consus shares commenced on 20th April 2022, with the ticker “CONSE.IS”. Meanwhile, half of the offering size has been reserved for price stability, while such transactions could be implemented for one month, starting from the commencement of trading. The offering comprised from issuance of new ordinary shares and sale of existing shares. The Company issued 52,500,000 new shares, increasing the total number of shares from 333,000,000 to 385,500,000. In addition, GIH sold 52,500,000 existing shares and also an additional 10,500,000 shares were made available pursuant to an over-allotment option, leaving GIH with net offered shares of 63,000,000. After the IPO, GIH remains the largest individual shareholder of Consus Enerji with 70% stake. 

At the Holding level, the authorized capital ceiling permit given by the Capital Markets Board was valid for five years, expiring by the end of 2022. GIH’s Board of Directors resolved on 24th March 2022 to make the necessary amendments to the Articles of Association to extend the ceiling for another five years and to increase the ceiling to TL 9 billion; and hence, to apply to the Capital Markets Board and the Ministry of Trade to obtain the necessary approvals. Once the regulatory approvals are obtained, amendments to the Articles of Association will be presented to the first Annual General Assembly’s approval.

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

Recovery speeds-up in all business lines…

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 13 different countries across four continents, announced its full year consolidated results which ended 31 December 2021, and commented on recent developments.

Full year figures for Global Investment Holdings reported Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue and revenues from Port Akdeniz which was sold in January 2021) of TL 1,793.7m for the full year in 2021 with a 64% increase over 2020. Consolidated Operating EBITDA (excluding Port Akdeniz) rose 153% to TL 424.9m.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:

“2021 was a year in which all our business lines mounted a strong recovery from the mixed performance caused by Covid in 2020, though they were still affected to varying degrees. Obviously, the effects of the pandemic are not wholly over, yet, the worst is over. Although we do not expect all business lines to be back to normal before 2023, we are pleased to see that the health crisis appears to be coming under control. This especially affects our cruise business, Global Ports Holding, where we have seen increased demand from cruise lines, currently running at 73% of fleet deployment. Thankfully today, the global cruise industry is operating almost normally and booking activity displays a sequential improvement. By the end of January 2022, booking levels have almost returned to pre-Omicron levels; indicating that the recovery should accelerate as the variant subsides. Most cruise lines expect close to 100% fleet deployment by Summer 2021, in time for the peak summer season. In line with such backdrop, the improvement in performance has gained further momentum in Q4 2021 in our ports business and across our entire Group. Furthermore, in February 2022 standalone, the number of calls has almost caught up with February 2019 numbers (96% of Feb 2019 levels), with Nassau having received even more calls in February 2022 than it did in February 2019. I am pleased to say that our ports division returned to positive EBITDA in July-September and in October-December with an increased pace. Nonetheless, while the revenue and profit performance of the ports division was still lacking in 2021, they performed much better than the previous year, with passenger numbers ahead of our expectations. I am very happy to see that all our business divisions displayed a superior performance in the last quarter of 2021, each and every of them contributing to the revenue and EBITDA growth, confirming the gradual switch to normalization.”

“We have continued our strategic expansion in the ports. We signed a 20-year agreement with the Port of Kalundborg to provide services for cruise passengers in Kalundborg Port, Denmark. Kalundborg is Global Ports Holding’s first port in Northern Europe; it marks an important milestone in the continued, combined growth and diversification of the company.”

“The other division we have that was most exposed to the Covid pandemic (albeit because of disruptions to trade) was mining, which I am pleased to say raised its EBITDA by nearly 2.5x. This was a direct result of international trade returning to a semblance of normality.”

“The final division that was materially exposed to the effects of the pandemic, real estate, improved its performance, with an 11% increase in EBITDA. This performance, while less eye-catching than either mining’s or the ports’, was as expected given that the Turkish vaccination program did not really take off until the middle of 2021.”

“A combination of established and now practically universally available vaccines and new treatments, and if are lucky a further diminution of Covid’s virulence should result in a still stronger 2022 for these divisions.”

The Chairman continued:
“The performance of our energy division, much less sensitive to the pandemic, was of critical importance in 2021 as it had been in 2020. The performance of both NaturelGaz and Consus Enerji were as one would expect. Despite the pandemic, the Turkish economy performed well in 2020 and surged in 2021. And in line with that, electricity market conditions were supportive. On the electricity generation side, all divisions contributed to the group’s performance. This was partly a result of our continued efforts to improve engineering at our biomass facilities, but both solar and co-generation facilities also performed strongly. In 2021, NaturelGaz’s EBITDA rose 3% to TL 98.9 million, while Consus’s EBITDA rose 54% to TL 148.2m”

The Chairman continued:
“Finally, both our financial subsidiaries had a strong performance in 2021. The merger of our asset management subsidiary with Istanbul Portföy Yönetimi in September 2020 had created one of the leading firms operating in that sector in Turkey, and we exercised our option to raise our stake in the new company to 66.6% in September 2021. I am pleased that assets under management rose from TL6.4 billion at 2020 year-end to TL23.9 billion at the end of 2021. Our brokerage subsidiary, Global Menkul Değerler had another strong year in 2021. Trading volume rose 10% to TL 247.6 billion.”

The Chairman concluded:
“Our company continues to aim to reduce its effective debt burden, a process we started with the listing of NaturelGaz. In addition, our sale of our commercial port in Antalya provided the company with a needed buffer as well as allowing us to focus on our core ports business. Also, we have successfully completed the capital increase process of GIH, which resulted in total proceeds of TL 487,180,209 to GIH. As promised, we have used the total amount of the funds from the Capital Increase in debt repayment, melting down holding solo gross debt nearly by half YoY to TL 724.6m (US$ 55.8m) at 2021YE. Through measures designed to limit cost increases, a continued improvement at the ports, and also through an eventual IPO at Consus, we believe the reduction in relative debt levels will continue.

“With respect to the current unacceptable war in Ukraine, we extend our sympathies and condolences to the country and its people. Distasteful as it is to comment on the financial consequences of a war when there is so much suffering, we have to consider its impact on our businesses. Our current expectations are that natural gas prices may rise yet further, but that this will not have a negative or positive net impact on our businesses in the energy division. With regard to the cruise division, the Black Sea was a far periphery, and while some impact may perhaps be expected at our ports in Turkey, we do not see a material impact overall. We see very little or no impact on all our other business lines.”

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated: “Our Group has been taking solid effective steps to stabilise its liquidity position and manage its long and short-term debt obligations through i) completion of the refinancing of Eurobond ii) the successful IPO of its natural gas subsidiary, Naturelgaz, on Borsa Istanbul, iii) equity injection through a rights issue in GIH, iv) the completion of the sale of the Group’s largest commercial port, Port Akdeniz, and v) the anticipated IPO of Consus Energy. We have completed the capital increase process of GIH, which resulted in total proceeds of just over TL 487.1 million to Global Investment Holdings. The total amount of the funds from the Capital Increase were used in repayment of the TL Bonds (amounting to a payment of 172.2m TL in the first three quarters and an additional 17.3m TL in October 2021) and the € 31.3mn bank loan in accordance with the fund utilization report, which should significantly reduce net interest expenses in the following quarters.”

Global Investment Holdings reported TL 1,793.7m revenues (excluding IFRIC-12 Construction Revenue and revenues from Port Akdeniz, which was sold in January 2021) in FY 2021, a robust 64% YoY growth with strong contribution from all business divisions. The sequential trend in FY 2021 compared to FY 2020 confirms that the improvement in performance has gained stronger momentum in Q4 2021 across the Group, in line with the ongoing deceleration in Covid-19 impact and strengthening activity in underlying businesses.

In FY 2021, Global Investment Holdings’ consolidated operating EBITDA jumped 153% yoy and reached TL 424.9m, driven by a strong contribution from all business divisions. EBITDA generation, which began to gain pace in Q3 2021 was much stronger in Q4 across the Group, in line with the decelerating impact of Covid-19 and strengthening activity in underlying businesses.

GIH reported a consolidated net loss of TL 111.1m in FY 2021, compared to a net loss of TL 298.6m in FY 2020. The net loss stemmed mainly from non-cash depreciation and foreign currency translation differences incurred on the Group’s long term borrowings. The bottom line incorporated TL 636.1m of non-cash charges of which TL 394.4m were depreciation and amortization, and TL 241.7m in net foreign exchange losses. Meanwhile, TL 326.1m one-off income/(expenses) included IPO expenses, project expenses, and IFRS related adjustments such as a non-cash impairment provision which relate to Venezia and Adria impairment, non-cash valuation gain from investment properties and non-cash bargain purchase gain from acquisition of İstanbul Portföy. Had the pandemic not occurred, a profit would have been shown despite the depreciation of TL against hard currencies.

Depreciation and amortization charges, despite the depreciation of Turkish Lira against hard currencies, decreased from TL 474.2m in FY 2020 to TL 394.4m in FY 2021, purely as a result of Port Akdeniz’s sale (removal of Port Akdeniz’s depreciation amounting to TL 154.9m). If the FX rate had remained the same as 2020 average, depreciation and amortization expense would have been TL 83.3m lower (excluding the amortization effect of Port Akdeniz). Also, the Group has incurred TL 241.7m in net non-cash foreign exchange losses, compared to TL 193.3m in FY 2020.

The Group’s net interest expenses in FY 2021 were TL 276.5m, as opposed to TL 319.1m the previous year. In 2021, the Group’s net interest expense decreased by 30% in US$ terms, yet the decrease in TL terms was 13% due to the depreciation of TL against hard currencies.

On a divisional basis:
Naturelgaz maintained its solid financial position despite Covid-19 impact thanks to its operational capability, efficient cost management structure and increased operations in CityGas business line. In December 2021, performance has reached a historic record level in sales volume and revenue, while such momentum continues into 2022. Naturelgaz’s net financial debt amounted to TL 85.5m at the end of 2020, but turned into a net cash position of TL 39.6m as of the end of 2021. In addition, a total of TL 32.5m in gross dividends was paid to the shareholders.

Sales volume reached 202.9mn Sm3 in 2021, representing an increase of 17% compared to 2020. The higher volume was mainly due to the increase in Citygas sales, while inorganic growth achieved by the acquisition of LNG and CNG operations of SOCAR Turkey at the end 2020 has also made a significant contribution to the increase in LNG sales volume. Revenues increased by 53% yoy, reaching TL 692.0m, reflecting the increase in sales volume especially in Citygas, the addition of LNG revenues as a result of SOCAR LNG merger and the increase in gas prices. Increasing sales volume, especially in the city gas business, increased LNG revenues after the acquisition of SOCAR LNG, and the increase in natural gas prices, contributing significantly to the increase in total revenues. Operating EBITDA was TL 98.9m. Despite the 15% increase in gross profit yoy, the 2021 EBITDA increase was limited to 3% due to the rise in operating expenses stemming from the Socar LNG acquisition as well as one-off IPO related expenses.

On the ports side, consolidated and managed portfolio passenger volumes of 1.5m in 2021 were up from the 1.3m reported in 2020; note 2020 passenger volumes included the largely pre-pandemic Q1 2020 and, in particular, the strong contribution from GPH’s Caribbean cruise ports. Thankfully, the global cruise industry is moving ever closer to operating almost normally, and booking activity shows a sequential improvement. From mid-December 2021, the cruise industry, like other tourism industries, was affected by the Omicron variant and the measures have been taken by many Governments in response to the variant. From mid-December and into February, cruise ship occupancy rates fell, while booking trends for 2022 also have been affected for a period. However, the peak of the variant seems to be behind and most governments are now well into the process of removing most Covid measures. By the end of January 2022, booking levels have almost returned to pre-Omicron levels; indicating that the recovery should accelerate. Most cruise lines expect close to 100% fleet deployment in Summer 2021, in time for the peak season in the Mediterranean. In line with such backdrop, the improvement in performance has gained further momentum in Q4 2021. On a like-for-like basis, during Q4 2021, our cruise ports received 68% of the calls and 42% of the passengers received for the same period in 2019. Furthermore, In February 2022, the number of calls has almost reached the levels achieved in February 2019 (96% of Feb 2019 levels), with Nassau having received even more calls in February 2022 than in February 2019, an important milestone in our continued recovery. Recent events in Ukraine may add some uncertainty, particularly concerning North American demand for tourism in Europe. However, currently, we have not seen any cancellations due to the situation in Ukraine, while the medium to long-term outlook is very positive, demand for cruising remains strong, and the industry expects cruise volumes to recover to pre-pandemic levels quickly.

The ports division’s revenues (excluding IFRIC-12 Construction Revenue and Port Akdeniz, Antalya which was sold in January 2021) increased by 76% in FY 2021, reaching TL 285.7m; while operating consolidated adjusted EBITDA came out at a positive TL 20.2m in FY 2021 vs a loss of TL 32.4m in FY 2020. Revenues and EBITDA in 9M 2020 benefited from the pre-pandemic first time contribution from the Caribbean ports. In line with the reduced impact of Covid due to the gradual easing of travel restrictions and the increase in number of cruise ships returning to sailing, ports’ revenue nearly quadrupled in Q4 2021 YoY, reaching TL 134.6m. Positive EBITDA generation accelerated in Q4 2021, with adjusted EBITDA reaching TL 41.8m in Q4 2021 vs TL -25.1mn in Q4 2020.

The power division’s revenues, which includes distributed energy facilities (co-generation /tri-generation), biomass and solar based energy production, rose 41% yoy, generating TL 368.6m, mainly driven by the solid performance of the operational plants. Likewise, the division generated TL 148.2m TL EBITDA in 2021, a rise of 54% YoY. The solid EBITDA growth was mainly attributable to solid operational performance in power plants.

The mining division realized 531,728 tons of product sales in 2021, up by 45% yoy, mainly due to strong feldspar demand from export markets. Export-related sales volume reached 480,204 tons while domestic sales volume came in at 51,524. The division reported revenues of TL 182.6m in 2021, more than doubling YoY. The operating EBITDA was TL 66.5m, surging 137% yoy and delivering a 35.2% operating EBITDA margin, showing significant improvement compared to the same period last year (30.5% in 2020). Volume growth mainly driven by the strengthening demand in the export markets, as well as dominancy of hard currency denominated revenues were factors supporting the improvement in profitability during the period.

The real estate division’s revenues increased by 11% yoy, standing at TL 32.7m in FY 2021, thanks to the increase in rental revenues in line with the easing of the pandemic impact starting from the second half of 2021. Meanwhile, the division reported an operating EBITDA of 13.4mn TL, compared to 11.9mn TL a year ago, indicating a 13% increase. The improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations and is sign of a slow turnaround following Covid.

The brokerage & asset management division revenues reached 227.5mn TL, registering a robust 124% increase yoy; while operating EBITDA nearly tripled, reaching 87.9mn TL, driven by the increase in trading volumes and İstanbul Portföy’s first time full consolidation effect.

Indebtedness:
Holding standalone gross debt decreased by 46% in US$ terms to US$55.8m by 2021YE from $103.6m at 2020YE. On the other hand, the Group’s consolidated net debt increased to $556.6mn from $521.1mn at 30.09.2021. However, this increase is driven by the Nassau debt where major construction is taking place; when Nassau debt were excluded, net debt would see a $25.4m decrease at 2021YE (compared to 30.09.2021).

For 2021, we had intended to continue decreasing our indebtedness rapidly and have made good progress towards this goal. In line with this focus, we completed the capital increase process of GIH in the third quarter, with total proceeds of TL 487.1m to GIH. The total amount of the funds from the capital increase were used in repayment of the TL Bonds (amounting to TL 172.2m in the first three quarters and an additional 17.3mn TL in October 2021) and the € 31.3m bank loan in accordance with the fund utilization report.

Major operational developments and corporate activity
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, namely ports infrastructure, renewable energy and asset management. During 2021, the strategic focus remained on the core businesses and how to best insulate the Group from the impact of Covid-19.

A major development on the ports side during the period was the divestment of our concession in Port Akdeniz, in order to position Global Ports Holding Plc (GPH) as a pure-play global cruise port operator. Agreed in October 2020, this was finalised in January 2021, with the sale being materialized to QTerminals of Qatar. The sale's successful closing was also an essential element of the Group's refinancing strategy for the US$ 250m 8.125% Senior Unsecured Notes due 2021 (Eurobond) issued by GPH's wholly-owned subsidiary Global Liman Isletmeleri A.S. On 7 April 2021, an offer was launched for up to US$ 75m of the Eurobond, which expired on 16 April 2021. Following the unmodified Dutch Auction procedure conducted in connection with the Offer, the total amount of cash used in connection with the offer is US$ 44.7m excluding accrued interest on the notes validly tendered and accepted. Following the completion of the tender offer, US$ 200.3m of the Eurobond remained outstanding. Furthermore, GPH completed its five-year loan agreement for up to US$ 261.3m, with leading global investment firm. As a result, GPH has concluded the early repayment of the US$ 200.3m Eurobond outstanding amount, plus accrued interest. This new investment will strengthen GPH's balance sheet and provide flexible growth capital for GPH to pursue expansion opportunities at a dynamic juncture in the global cruise industry.

Global Ports Holding continuously monitors potential public and private acquisitions around the world. This led, for example, to, GPH signing a 20-year concession agreement to manage the cruise passenger terminal of the Port of Taranto, Italy on 30 April 2021. This has enhanced and further strengthened the GPH's presence in the cruise sector's core markets. Another recent development on the ports side, was the signing of a 20-year lease agreement with the Port Authority of Kalundborg to manage the cruise services in Kalundborg Port, Denmark in October 2021. Kalundborg Port is GPH's first cruise port in North Europe, marking an important milestone in the continued development and growth of the Group. In addition, following a public tender process, the Port Authority of Las Palmas has awarded preferred bidder status to Global Ports Canary Islands S.L. ("GPCI"), an 80:20 joint venture between GPH and Sepcan S.L., to operate cruise port concessions for Las Palmas Cruise Ports. The concessions cover the port of Las Palmas de Gran Canaria, port of Arrecife (Lanzarote) and Puerto del Rosario (Fuerteventura), which have tenures of 40 years, 20 years and 20 years respectively. The Group, GPCI and the Port Authority of Las Palmas are working towards agreeing on the terms of the concession agreements. The concessions are expected to commence before the end of the current financial year, although there can be no certainty as to the timing or that the final conditions will be satisfied. Furthermore, GPH has been awarded a 12-year concession to manage the cruise services in Tarragona, Spain. In Q3 2021, a €30m investment into the port infrastructure in Tarragona Port was completed. This investment programme included a new cruise pier in the "moll de balears" which can now handle the world's largest cruise ships, while berth capacity has been doubled to four ships at any one time. Under the terms of the agreement, GPH will invest up to € 5.5m into building a new state of the art modular cruise terminal, which will utilise solar power to ensure the sustainable provision of the terminal's energy needs. In 2019, prior to the increase in berth capacity, Tarragona cruise port welcomed c130k cruise passengers. Tarragona is situated less than an hour's drive from Barcelona airport and the recently completed investment into the port infrastructure and the planned new terminal will significantly improve the port's attractiveness for turnaround operations in the region.

In the second core business area, Naturelgaz, the non-pipeline natural gas subsidiary, took a significant step towards and listed on Borsa Istanbul on 1st April 2021 following the completion of exceptionally successful IPO. The IPO has received overwhelming investor demand, with 75.3 times domestic retail investor oversubscription, 28.8 times domestic institutional investor oversubscription, and 3.5 times international institutional investor oversubscription, with total demand exceeding TL 15.5bn. Norges Bank Investment Management, out of Norway, acquired 8.3% of the total shares offered in the IPO. Naturelgaz received gross proceeds of TL 127m which will be used to develop and expand its business. The Company, while improving its leadership position in Turkey, also envisages expanding its operations to sub-Saharan countries where lack of pipeline infrastructure creates an opportunity to transport natural gas to power and industrial plants. Moreover, on 10 February 2021, Naturelgaz signed an agreement with Petrol Ofisi to create synergies in the Auto CNG business. Such development 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.

Furthermore, Consus Enerji, the fully-owned subsidiary of Global Investment Holdings operating in renewable energy generation and energy efficiency, applied to the Capital Markets Board (CMB) for approval to amend the Articles of Association for the purpose of an IPO. Following the CMB approval, Consus Enerji fulfilled all the requirements and procedures to amend its Articles of Association for IPO purposes. Meanwhile, the application for the approval of the draft Domestic Prospectus prepared for the initial public offering of Consus Enerji shares has been submitted to the Capital Markets Board of Turkey on 18 February 2022.

In 2021, GIH raised its issued share capital in cash, from TL 325,888,409.93 to TL 650,000,000. The capital increase resulted in total proceeds of TL 487,180,209.05 to GIH. The total amount of the funds from the Capital Increase were used in repayment of the TL Bonds and the Euro bank loan in accordance with the fund utilization report, which should significantly reduce net interest expenses in the following quarters In the third core business line, pursuant to Capital Markets Board’s approval to exercise its option to buy an additional 40% of Istanbul Asset Management in September 2021, GIH exercised its option and increased its stake in Istanbul Asset Management from 26.6% to 66.6%, hence paving the way for full consolidation. Through the exercise of the option, Global Investment Holdings acquired 5,673,600 shares, with a nominal value of TL 1 each, corresponding to 40% of the share capital of Istanbul Asset Management for a consideration of TL 77,352,322, which has been fully paid in cash. Meanwhile, existing managing partners’ (Hasan Turgay Ozaner, Tufan Deriner and Alpaslan Ensari) stake stands at 22.3% after the transaction.

More on the finance front, 100% subsidiary of GIH, GYH Danışmanlık ve Yönetim Hizmetleri A.Ş. has been established to collect the Group’s financial services companies under one roof. All of the shares corresponding to 66.6% of Istanbul Portföy Yönetimi A.Ş. and 75% of the capital of Global Menkul Değerler A.Ş have been transferred to this new subsidiary.

As for ratings, GIH’s Corporate Governance Rating has been upgraded to 9.14 from 9.12 by Kobirate in the last quarter of 2021. Again in Q4 2021, JCR Eurasia Rating has evaluated the consolidated structure of GIH and the “Outstanding Bond Issues” in an investment grade on the national scale and assigned a LT rating of BBB (Trk), LT Int’l rating of BB with Stable outlooks.

For further information, please contact:

GIH Investor Relations
Tel: +90 212 244 60 00
E-mail: investor@global.com.tr

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that the Tarragona Port Authority ("Port Authority") has awarded Global Ports Holding a 12-year concession, with a 6-year extension option, to manage the services for cruise passengers in Tarragona, Spain.

In Q3 2021, a €30m investment into the port infrastructure in Tarragona Port was completed. This investment programme included a new cruise pier in the "moll de balears" which can now handle the world's largest cruise ships, while berth capacity has been doubled to four ships at any one time. In addition, as well as expanding the general area available for cruise operations, the Port Authority has invested in the provision of shore power, which will significantly reduce the Co2 emissions from cruise ships while they are in port.

Under the terms of the agreement, GPH will invest up to €5.5m into building a new state of the art modular cruise terminal, which will utilise solar power to ensure the sustainable provision of the terminal's energy needs. The new terminal will provide cruise passengers with an improved port experience, including retail and F&B opportunities, while new coach and car parking facilities will significantly improve the ports transport infrastructure. The innovative modular design of the terminal will provide maximum flexibility to adapt the terminal to meet future capacity needs and to provide a vibrant and exciting event space in Tarragona.

In 2019, prior to the increase in berth capacity, Tarragona cruise port welcomed c130k cruise passengers. Tarragona is situated less than an hour's drive from Barcelona airport and the recently completed investment into the port infrastructure and the planned new terminal will significantly improve the port's attractiveness for turnaround operations in the region.

The addition of Tarragona to GPH’s cruise port network means than upon the successful conclusion of all outstanding and previously announced concession agreements, the total number of cruise ports GPH operates and manages will rise to 23.

Emre Sayin, Chief Executive Officer, said:
"Tarragona Cruise Port is an important addition to our cruise port network, strengthening our growing presence and capabilities in the Iberian Peninsula and the West Med.

We are very grateful to Tarragona Port Authority for placing their trust in GPH as the operator of Tarragona Cruise Port and we very much look forward to working with all stakeholders to grow cruise passenger volumes in Tarragona sustainably and responsibly."