Global Investment Holdings reported Consolidated Net Profit of 1.1bn TL in 9M 2024, compared to a net profit of 597mn TL in 9M 2023. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) is 12.5bn TL; while Consolidated Operating EBITDA is 5.2bn TL.

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

“We have left behind an exceptionally challenging quarter, marked by ongoing macroeconomic difficulties and geopolitical sensitivities. In such an environment, as Global Investment Holdings, we have focused on areas where we can make an impact and have continued our mission to create value for all our stakeholders.

In the third quarter, despite inflationary pressures and challenging market conditions, our resilient and strategically diversified structure continued to support our operational profitability. We aim to maintain this performance in the final quarter of the year.

I am pleased to share with you one of the most significant recent developments. “As of August 9, 2024, GPH has been delisted from the London Stock Exchange and is now a private company. As part of this process and following the tender offer for our indirect subsidiary, Global Ports Holding Plc (GPH), our Group purchased a total of 23,835,233 GPH shares at a price of 4.02 USD per share.  Additionally, it was decided to convert our Company’s 23.9 mn USD receivables from GPH into shares through a capital increase (5,945,273 new shares). Following these transactions, our Group’s ownership in GPH’s issued share capital has now increased to 90.30%. I believe private ownership will enable GPH to better execute its strategy of continuing to expand and develop its cruise port portfolio globally, without the distraction, challenges and costs of the requirements of being a publicly listed company.”

The Chairman continued: “Consus Enerji’s offer was accepted for a tender announced by the Ministry of Energy and Transport of the Commonwealth of the Bahamas and the Bahamas Power and Light Company for the electricity needs of two islands, including 65 MW natural gas and solar power plants, and 20 MW storage systems, with a total capacity of 85 MW, and for the sale of electricity at a unit price based on US Dollars for a period of 25 years. The investment process for the project is anticipated to be completed by 2026, with the power plants being commissioned and becoming fully operational. To participate in the tendered project with a 49% partnership, Consus Bahamas Energy Ltd., a wholly owned subsidiary of Consus Enerji, has been successfully incorporated in the Commonwealth of the Bahamas.”

Naturelgaz also increase in sales volume was mainly driven by Citygas sales. The number of districts and towns reached 129 by the end of Sep 2024.

İstanbul Asset Management has also had a good third quarter in 2024. Assets under management have increased substantially to over 106bn TL as of September 2024. Meanwhile, our Group’s asset management companies’ combined AUM recorded  54% increase YTD, reaching c.109bn TL.“

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

 “We have completed a challenging quarter, marked by macroeconomic difficulties and geopolitical uncertainties. Throughout this period, as Global Investment Holdings, we continued to support our operational profitability through our diversified structure. I am also pleased to share that, as previously committed, we fulfilled our dividend payment of 80mn TL in October.”

Global Investment Holdings reported 12.5bn TL revenues (excluding IFRIC-12 Construction Revenue) in 9M 2024, indicating a 4% increase yoy on an inflation adjusted basis.

Global Investment Holdings’ consolidated operating EBITDA is 5.2bn TL in 9M 2024 indicating a 13% increase yoy on an inflation adjusted basis.

GIH reported a consolidated net profit of 1,1bn TL in 9M 2024, compared to a net profit of 597mn TL in 9M 2023, indicating 84% increase yoy. The bottom line incorporated non-cash expenses of depreciation & amortization amounting to 1,8mn TL and net foreign exchange loss amounting to 118mn TL.

On a divisional basis:

On the ports side,

Number of calls at GPH`s consolidated ports in Jan-Sep 2024 was 23% higher than Jan-Sep 2023 levels, while number of passengers visiting GPH`s consolidated ports in Jan-Sep 2024 was 30% higher than 2023 levels.

Average occupancy rates of the cruise ships visiting GPH`s consolidated ports reached 113% in Aug 2024.

Revenues surged by 23% in 9M 2024 compared to 9M 2023, reaching TL 6,096mn, while adjusted EBITDA jumped by 22% compared to 9M 2023 reaching 3,882bn TL in 9M 2024.

Naturelgaz, Sales volume reached 215mn Sm3 in 9M 2024, representing an increase of 24% yoy.

Citygas sales volume increased by 35% yoy, reaching 100mn Sm3 .

Due to inflation accounting and decline in natural gas prices, revenues decreased by 10% yoy, standing at  3,654bn TL in 9M 2024 yoy, despite volume growth. EBITDA was flat yoy, standing at 691mn TL

Gross profit was flat yoy, standing at 856mn TL, based on company standalone financials.

Profit before tax, increased by 139% yoy, reaching 215mn TL in 9M 2024, based on company standalone financials.

The power division, reported 982mn TL revenues in 9M 2024, indicating a 18% decrease. The lower Market Clearing Price (PTF) compared to the same period of the previous year and the implementation of inflation accounting practices were influential in the mentioned decrease in consolidated revenues.

EBITDA decreased by 5% to 292mn TL in 9M 2024 yoy.

The mining division, because of the decline in demand from the local and European markets, achieved a sales volume of 191,513 tons in 9M 2024, representing a 28% decrease yoy.

The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 147,046 tons while domestic sales volume was realized at 44,467 tons for the period.

The mining division announced revenues of 388.5mn TL in 9M 2024 with 22% decrease.

The operating EBITDA was 89mn TL in 9M 2024, indicating 19% decline yoy. The decline in EBITDA was mainly attributable to lower sales volume as well as contracting operating margins as a result of higher inflation rates compared to fx rate hikes. The increasing focus on high value-add products provided a positive impact on EBITDA performance, largely compensating the decline in sales volume.

The real estate division registered 4% decrease in revenues and 7% increase in EBITDA in 9M 2024 yoy, with revenues and EBITDA standing at 158mn TL and 78mn TL, respectively.

The brokerage & asset management division revenues stood at 1,156mn TL 9M 2024, registering a 8% increase yoy, thanks to the contribution from increasing transaction volumes, while operating EBITDA was 240mn TL registering 26% decrease yoy.

Indebtedness:

Holding consolidated net debt stood at 966mn USD (32.9bn TL) at 9M 2024. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 1.0bn USD. (Ports division:  938mn USD).

• Consolidated Net Debt/EBITDA multiplier is 4.9x at 9M 2024. However, When entire ports business is excluded, Net Debt/EBITDA multiplier stands at 1.5x at 9M 2024.
• As a result of the project financing for the San Juan and St. Lucia ports, Net Debt rose by 117mn USD. However, with only 7.3mn USD of EBITDA from these ports being consolidated in the financial statements for the first nine months of the year, the Net Debt/EBITDA ratio has increased post-2023.
• Additionally, the primary reason for the increase in the consolidated Net Debt/EBITDA ratio in the last quarter is the 123mn EUR (approximately 137mn USD) 7-year financing obtained from abroad for the delisting process of the port operations segment.”

For further information, please contact:

GIH Investor Relations

Tel: +90 212 244 60 00

E-mail: investor@global.com.tr

The post GIH 9M 2024 Financial Results appeared first on Global Yatırım Holding.

Global Investment Holdings reported Consolidated Net Profit of 692mn TL in 6M 2024, compared to a net profit of 321mn TL in 6M 2023. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) is 7.4bn TL; while Consolidated Operating EBITDA is 2.9bn TL.

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

“Under the challenging macroeconomic environment, we have navigated through a difficult second quarter. We are currently experiencing a transitional period marked by economic slowdown and the misalignment between inflation and exchange rates. As Global Investment Holdings, we have announced our consolidated financial results for the second quarter of 2024. Despite persistent high inflation, rising operational costs, and challenging price/demand dynamics, Global Investment Holdings maintained its resilience and concluded the quarter with a steady performance.” 

I am pleased to share with you one of the most significant recent developments. “As of August 9, 2024, GPH has been delisted from the London Stock Exchange and is now a private company. As part of this process and following the tender offer for our indirect subsidiary, Global Ports Holding Plc (GPH), our Group purchased a total of 23,835,233 GPH shares at a price of 4.02 USD per share.  Additionally, it was decided to convert our Company’s 23.9 mn USD receivables from GPH into shares through a capital increase (5,945,273 new shares). Following these transactions, our Group’s ownership in GPH’s issued share capital has now increased to 90.16%”

GIH believes that while GPH’s listing helped to raise the profile of GPH initially, for the past several years due to the continuing low trading liquidity in the shares, GIH believes that GPH’s listing significantly hinders GPH, and GPH would be best positioned to continue its next phase of growth as a private company. GIH believes that as an infrastructure group, GPH should be able to freely execute growth strategies and have access to flexible long-term financing to remain competitive. Private ownership would therefore enable GPH to better execute its strategy of continuing to expand and develop its cruise port portfolio globally, without the distraction, challenges and costs of the requirements of being a publicly listed company. 

The Chairman emphasized that: “We have added two more ports to our portfolio in 6M 2024, namely, San Juan Cruise Port in Puerto Rico (30-year concession agreement) and Liverpool Cruise Port in UK (50-year agreement). Moreover, GPH has commenced operations at the Saint Lucia Cruise Port as of May 2024. 

The Chairman continued: In addition, following a public tender process, a majority-owned consortium (the “Consortium”) between GPH (51%), local shareholder, Steya (40%) and Ocean Infrastructures Management (9%) has been awarded preferred bidder status for a 15-year concession agreement with Agence Nationale des Ports (“ANP”), to operate the Casablanca new cruise terminal.

The Chairman continued: “In order to further strengthen their balance sheets and enhance their financial capacity, our Gas and Power divisions successfully completed their capital increase processes, standing out strong to drive growth. After Naturelgaz’s bonus issue, the company’s issued capital has been increased by 200%, to 690mn TL, which was fully funded through internal resources. On the other hand, Power generation portfolio of the Group completed a 100% rights issue in August 2024, raising its issued capital to 771mn TL. The funds raised were used to repay financial debt.

In addition to these, Consus Enerji’s offer were accepted for a tender announced by the Ministry of Energy and Transport of the Commonwealth of the Bahamas and the Bahamas Power and Light Company for the electricity needs of two islands, including 65 MW natural gas and solar power plants, and 20 MW storage systems, with a total capacity of 85 MW, and for the sale of electricity at a unit price based on US Dollars for a period of 25 years. The investment process for the project is anticipated to be completed by 2026, with the power plants being commissioned and becoming fully operational. To participate in the tendered project with a 49% partnership, Consus Bahamas Energy Ltd., a wholly owned subsidiary of Consus Enerji, has been successfully incorporated in the Commonwealth of the Bahamas.

İstanbul Asset Management has also had a good second quarter in 2024. Assets under management have increased substantially to over 108bn TL as of August 2024. “

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

 “Despite the challenging macroeconomic conditions we are facing, I am pleased to highlight the balanced and stable performance our group has demonstrated in financial indicators in 6M 2024. Additionally, I am happy to share that we have submitted our application for a bonus capital increase, which will be fully funded through internal resources. During our general assembly meeting held on August 15, we also reaffirmed our commitment to our shareholders by deciding to distribute dividends by the end of this year.”

Global Investment Holdings reported 7.4bn TL revenues (excluding IFRIC-12 Construction Revenue) in 6M 2024, indicating a 8% increase yoy on an inflation adjusted basis.

Global Investment Holdings’ consolidated operating EBITDA is 2.9bn TL in 6M 2024 indicating a 25% increase yoy on an inflation adjusted basis.

GIH reported a consolidated net profit of 692.5mn TL in 6M 2024 with a strong 116% increase on an inflation adjusted basis. The bottom line incorporated non-cash expenses of depreciation & amortization amounting to TL 1,1bn and net foreign exchange loss amounting to TL 138.5mn.  In addition, due to the application of IAS 29, there was a monetary gain amounting to TL 336.0 mn in 6M 2024.

On a divisional basis:

On the ports side,

Number of calls at GPH`s consolidated ports in Jan-Aug 2024 was 22% higher than Jan-Aug 2023 levels, while number of passengers visiting GPH`s consolidated ports in Jan-Aug 2024 was 29% higher than 2023 levels.

Average occupancy rates of the cruise ships visiting GPH`s consolidated ports in July 2024 was 115%.

Revenues surged by 37% in 6M 2024 compared to 6M 2023, reaching 3.3bn TL, while adjusted EBITDA jumped by 33% compared to 6M 2023 reaching 2.1bn TL in 6M 2024.

Naturelgaz, Sales volume reached 156mn Sm3 in 6M 2024, representing an increase of 21% yoy. The increase in sales volume was mainly driven by Citygas sales. Citygas sales volume increased by 35% yoy, reaching 94mn Sm3 . The number of districts and towns reached 124 by 6M 2024.

Due to inflation accounting and decline in natural gas prices, revenues decreased by 14% yoy , standing at 2.3bn TL in 6M 2024 yoy, despite volume growth.

Operating profit increased yoy in 6M 2024, thanks to recent investments for cost efficiency as well as volume growth. EBITDA increased by 7% yoy, reached at 469mn TL.

Due to an increase in volume and contributions from cost management, gross profit increased 8% yoy in 6M 2024 reached 575mn TL.

Profit before tax, which was 71mn TL in 6M 2023, nearly doubled, reaching 135mn TL in 6M 2024, based on company standalone financials.

The power division, reported 617.2mn TL revenues in 6M 2024, indicating a 13% decrease yoy. The lower Market Clearing Price (PTF) compared to the same period of the previous year and the implementation of inflation accounting practices were influential in the mentioned decrease in consolidated revenues.

EBITDA increased by a 4% to 170.7mn TL in 6M 2024 yoy.

Net profit increased by a 72% to 21.7mn TL in 6M 2024 yoy. In addition to the increase in operational profitability, monetary gains from the implementation of inflation accounting and deferred tax income were factors that positively affected the period’s net profit, while the increase in financing expenses due to rising borrowing costs negatively impacted the net profit for the period.

The mining division, because of the decline in demand from the local and European markets, achieved a sales volume of 118,291 tons in 6M 2024, representing a 40% decrease yoy.

The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 88,931 tons while domestic sales volume was realized at 29,360 tons for the period.

The mining division announced revenues of 241.5mn TL in 6M 2024 with 21% decrease.

The operating EBITDA was 61.8mn TL in 6M 2024, indicating a 2% decline yoy. The decline in EBITDA was mainly attributable to lower sales volume as well as contracting operating margins as a result of higher inflation rates compared to fx rate hikes. The increasing focus on high value-add products provided a positive impact on EBITDA performance, largely compensating the decline in sales volume.

The real estate division registered 6% increase in revenues and 8% increase in EBITDA in 6M 2024 yoy, with revenues and EBITDA standing at 96mn TL and 44mn TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations.

The brokerage & asset management division revenues stood at 719mn TL 6M 2024, registering a 27% increase yoy, thanks to the contribution from increasing transaction volumes, while operating EBITDA was 192mn TL registering a 12% increase yoy.

Indebtedness:

Holding consolidated net debt stood at 844mn USD (27.7bn TL) at 6M 2024. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 1.0bn USD. (Ports division:  915mn USD).

• Consolidated Net Debt/EBITDA multiplier is 4.4x at 6M 2024. However, When entire ports business is excluded, Net Debt/EBITDA multiplier stands at 1.6x at 6M 2024.
• As a result of the project financing for the San Juan and St. Lucia ports, Net Debt rose by USD 111 million. However, with only USD 5.3 million of EBITDA from these ports being consolidated in the financial statements for the first half of the year, the Net Debt/EBITDA ratio has increased post-2023.

For further information, please contact:

GIH Investor Relations

Tel: +90 212 244 60 00

E-mail: investor@global.com.tr

The post GIH 1H 2024 Financial Results appeared first on Global Yatırım Holding.

Global Investment Holdings reported Consolidated Net Profit of 2,007.8mn TL in FY 2023, compared to a net profit of TL 1,141.6mn in FY 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) is TL 12.176bn; while Consolidated Operating EBITDA is TL 4.690bn.

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

“I’m thrilled to announce that, despite numerous challenges, we’ve had an outstanding financial year. Global Investment Holdings has consistently demonstrated its ability to navigate through volatility with success. Our robust financial health and strong foundation are testament to our diversified portfolio, cautious management, and effective business strategies. I am pleased to report that in 2023 our performance across most business lines was well ahead of inflation as well as budget figures and that our expansion continues. Our Gas and Mining business segments have experienced a decline in performance in 2023 compared to the previous year due to market conditions beyond our control in the sectors in which they operate. To compensate, it was the best ever year for our ports business, which is set to grow strongly again in 2024.

The Chairman continued: “Our cruise port operations is now back to normal and has exceeded its budget figures by a great margin. We have delivered on our promises and reached 30 cruise ports in 17 different countries. 2023 marked a period of robust performance for Global Ports Holding, outpacing both our plans and the achievements of the previous year. Passenger movements at our ports surpassed our budget by 11% in 2023; while we expect to welcome at least 20 million passengers at our ports next year (including the new ports) which would translate into an EBITDA of over U$150m.

2024 is on its way to become a record year for the cruise industry. The publicly traded cruise companies had all reported a strong 2023 and with record forward bookings, that is, higher occupancies, at higher prices, for 2024. Cruise demand is so strong that, according to Cruise Industry News, the industry expects a robust 11% growth in 2024 YoY in passenger capacity worldwide. In a five-year horizon, worldwide fleet is expected to expand to 487 ships in 2028 from 437 ships in 2023. Likewise, worldwide passenger capacity is expected to increase to 39.0 million in 2028 from 30.6 million in 2023.”

The Chairman emphasized that “In 2023, GPH has significantly expanded its global footprint, signing concession agreements for Alicante Cruise Port in Spain (15 years) and Bremerhaven Cruise Port in Germany (10 years), and extending its presence in the Americas with a 30-year concession for St Lucia Cruise Port, which includes a 10-year extension option. Additionally, GPH secured a 19-year extension for Ege Port in Turkey until 2052 and increased its ownership in a number of ports (Barcelona, Malaga, Singapore and Lisbon) when it purchased the remaining 38% holding in Barcelona Port Investments S.L. (BPI) from the minority shareholder. Financially, GPH has strengthened its position by refinancing the Nassau Cruise Port bond, which increased in the nominal outstanding amount and reduced its interest cost, saving $2 million annually. In September, GPH raised $330 million through secured private placement notes at a 7.87% fixed coupon, earmarked for repaying debt and supporting Caribbean expansion. These notes, set to fully amortize over 17 years, have been recognized with an investment grade credit rating, highlighting GPH’s strong financial management and strategic growth.

The Chairman continued: “2023 was earmarked as a pivotal investment year for Naturelgaz, with a clear focus on augmenting capacity and reducing operational costs. The company’s investment strategy was multifaceted, involving the commissioning of new industrial CNG facilities and the aforementioned forays into solar energy. Additionally, all investment expenditures for the year fully funded through the company’s equity, thanks to its strong balance sheet. By year’s end, the company’s service reach has extended to 128 districts and towns, spanning all seven regions of the country, particularly marking substantial achievements in the city gas segment.

The Chairman added, “Consus , our energy business line performed much in line with its budget figures but the natural gas price did not increase as expected and increasing operation costs had a negative impact on our trigen/cogen business arm. As of the end of 2023, the total installed capacity of Consus Enerji’s operational power plants is 98 MW, of which 43.8 MW comes from renewables. The remaining 54.2 MW comes from distributed power plants (cogeneration and trigeneration). Consus Enerji will have increased its total installed capacity to over 110 MW when ongoing investment processes for projects will be completed.

In mining division, the global economic slowdown, particularly in our main export market, Europe, led to reduced sales volumes in 2023. Despite overall volume contraction, we anticipate sustained demand for quality/processed products, which, although smaller in volume compared to unprocessed/bulk feldspar, offer higher margins.”

İstanbul Asset Management has also had an excellent year, given the gyrations in economic policy. Assets under management have increased substantially to nearly over 68 bn TL.

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

“I am happy to state that 2023 was another year of success. Despite continuous expansion and heavy investment periods, as a Group, we managed to keep our financial ratios at comfortable levels. With the refinancing projects we have carried out, we have achieved an approximate annual interest savings of 10 million dollars across the group, shaping according to changing market conditions. We will continue to closely monitor market conditions.”

Global Investment Holdings reported 12.176 bn TL revenues (excluding IFRIC-12 Construction Revenue) in FY 2023, indicating a 11% decrease yoy on an inflation adjusted basis. Without inflation accounting, revenues indicate a 34% increase in FY 2023 yoy. When Gas and Mining businesses are excluded, revenues indicate a strong 98% increase.

Global Investment Holdings’ consolidated operating EBITDA is 4,690.3mn in FY 2023, remaining flat yoy on an inflation adjusted basis. Without inflation accounting, EBITDA indicates a 52% increase in FY 2023 yoy. When Gas and Mining businesses are excluded, EBITDA indicates a robust 106% increase.

GIH reported a consolidated net profit of 2,007.8mn TL in FY 2023 with a strong 76% increase on an inflation adjusted basis; while without inflation accounting, net profit marks a 41% increase. The bottom line incorporated TL 1.7bn of income and expense, of which TL 1,681.2mn were depreciation and amortization, TL 303.0mn net foreign exchange loss and 288 million TL monetary gain due to the application of IAS 29.

On a divisional basis:

On the ports side, average occupancy rates of the cruise ships visiting GPH`s consolidated ports in December 2023 was 105%. Number of calls at GPH`s ports in FY 2023 was 23% higher than FY 2022 level, while passenger movements at GPH ports in FY 2023 was 67% higher than FY 2022 level. The passenger movements in 2023 exceeded the budget by 11%

Revenues surged by 42% (pre-IAS 29: 119% increase) in 2023 compared to 2022, reaching TL 4.8bn, while adjusted EBITDA jumped by 55% (pre-IAS 29: 135% increase) compared to 2022 reaching TL 3.1bn in 2023.

Revenues decreased by 42% in FY 2023 yoy (Pre IAS 29: 16% decrease), standing at TL 4,019bn. Gross profit decreased by 57% in 2023 yoy, standing at TL 783mn according to Naturelgaz’s standalone financials. (Pre IAS 29: 28% decrease), EBITDA narrowed down by 57% in FY 2023 yoy (Pre IAS 29: 34% decrease), standing at TL 712.2mn.

• The most significant factor suppressing revenues, gross profitability, and EBITDA was the positive effect of the public index in 2022, arising from sales to the public.
• Another factor limiting profitability was the rise in depreciation expenses resulting from increased investments in 2023 which target to increase capacity and cut costs.

Naturelgaz’s net cash surplus stood at 212.1mn TL at 31 December 2023 as opposed to 335mn TL at 31 December, 2022. In addition, Naturelgaz is planning to distribute a gross dividend payment of TL 320 mn to shareholders on May 9, 2024.

The power division reported 1,170.1mn TL revenues in 2023, indicating a 6% increase yoy (Pre IAS 29: 68% increase). EBITDA decreased by a 16% to 290.9mn TL in 2023 yoy (Pre IAS 29: 17% increase). The decrease in EBITDA was mainly due to high TL inflation which caused operating margins to shrink for business lines with hard currency earnings and the narrowing margin between electricity prices and natural gas prices in the Distributed Power segment, as well.

The mining division because of the decline in demand from the local and European markets, achieved a sales volume of 318,531 tons in 2023, representing a 36% decrease yoy. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 233,203 tons while domestic sales volume was realized at 85,329 tons for the period.

The mining division announced revenues of 465.1 mn TL in 2023 with 29% decrease (Pre IAS 29: 10% increase). The operating EBITDA was 117.8 mn TL in 2023, indicating a 43% decline yoy (Pre IAS 29: 8% decrease). The decline in EBITDA was mainly attributable to lower sales volume as well as contracting operating margins as a result of higher inflation rates compared to FX rate hikes.

The real estate division registered 20% increase in revenues (Pre IAS 29: 82% increase) and 21% increase in EBITDA (Pre IAS 29: 78% increase) in 2023 yoy, with revenues and EBITDA standing at 163.9mn TL and 80.4mn TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations

The brokerage & asset management division revenues stood at 1,442.8mn TL 2023, registering a 9% increase yoy (Pre IAS 29: 64% increase), thanks to the contribution from increasing transaction volumes, while operating EBITDA was 498.1mn TL registering a 5% decrease (Pre IAS 29: 57% increase) yoy.

Indebtedness:

Gross Debt/EBITDA fell below 5.0x and stood at 4.9x.

Holding consolidated net debt stood at 662.4mn USD (TL 19.5 bn) at 2023 year-end. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 835,5mn USD. (Ports division: 687,4mn USD).

• Consolidated Net Debt/EBITDA multiplier is 3.9x at 2023 as opposed to 3.6x at 2022 year-end. However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier is 3.0x at FY2023 versus 2.6x 2022 year-end. When entire ports business is excluded, Net Debt/EBITDA multiplier stands at 1.2x at FY2023 as opposed to 0.8x 2022 year-end. The main reasons for the increase in the Net Debt / EBITDA multiplier have been dividend payments of subsidiaries, payment to Privatization Authority regarding Ege Port concession extension, Capex and Additional borrowing by the GPH (Issuance of Bonds; Global Ports Group Finance LTD).

The post GIH FY 2023 Financial Results appeared first on Global Yatırım Holding.

Global Investment Holdings reported Consolidated Net Profit of 2,007.8mn TL in FY 2023, compared to a net profit of TL 1,141.6mn in FY 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) is TL 12.176bn; while Consolidated Operating EBITDA is TL 4.690bn.

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

“I’m thrilled to announce that, despite numerous challenges, we’ve had an outstanding financial year. Global Investment Holdings has consistently demonstrated its ability to navigate through volatility with success. Our robust financial health and strong foundation are testament to our diversified portfolio, cautious management, and effective business strategies. I am pleased to report that in 2023 our performance across most business lines was well ahead of inflation as well as budget figures and that our expansion continues. Our Gas and Mining business segments have experienced a decline in performance in 2023 compared to the previous year due to market conditions beyond our control in the sectors in which they operate. To compensate, it was the best ever year for our ports business, which is set to grow strongly again in 2024.

The Chairman continued: “Our cruise port operations is now back to normal and has exceeded its budget figures by a great margin. We have delivered on our promises and reached 30 cruise ports in 17 different countries. 2023 marked a period of robust performance for Global Ports Holding, outpacing both our plans and the achievements of the previous year. Passenger movements at our ports surpassed our budget by 11% in 2023; while we expect to welcome at least 20 million passengers at our ports next year (including the new ports) which would translate into an EBITDA of over U$150m.

2024 is on its way to become a record year for the cruise industry. The publicly traded cruise companies had all reported a strong 2023 and with record forward bookings, that is, higher occupancies, at higher prices, for 2024. Cruise demand is so strong that, according to Cruise Industry News, the industry expects a robust 11% growth in 2024 YoY in passenger capacity worldwide. In a five-year horizon, worldwide fleet is expected to expand to 487 ships in 2028 from 437 ships in 2023. Likewise, worldwide passenger capacity is expected to increase to 39.0 million in 2028 from 30.6 million in 2023.”

The Chairman emphasized that “In 2023, GPH has significantly expanded its global footprint, signing concession agreements for Alicante Cruise Port in Spain (15 years) and Bremerhaven Cruise Port in Germany (10 years), and extending its presence in the Americas with a 30-year concession for St Lucia Cruise Port, which includes a 10-year extension option. Additionally, GPH secured a 19-year extension for Ege Port in Turkey until 2052 and increased its ownership in a number of ports (Barcelona, Malaga, Singapore and Lisbon) when it purchased the remaining 38% holding in Barcelona Port Investments S.L. (BPI) from the minority shareholder. Financially, GPH has strengthened its position by refinancing the Nassau Cruise Port bond, which increased in the nominal outstanding amount and reduced its interest cost, saving $2 million annually. In September, GPH raised $330 million through secured private placement notes at a 7.87% fixed coupon, earmarked for repaying debt and supporting Caribbean expansion. These notes, set to fully amortize over 17 years, have been recognized with an investment grade credit rating, highlighting GPH’s strong financial management and strategic growth.

The Chairman continued: “2023 was earmarked as a pivotal investment year for Naturelgaz, with a clear focus on augmenting capacity and reducing operational costs. The company’s investment strategy was multifaceted, involving the commissioning of new industrial CNG facilities and the aforementioned forays into solar energy. Additionally, all investment expenditures for the year fully funded through the company’s equity, thanks to its strong balance sheet. By year’s end, the company’s service reach has extended to 128 districts and towns, spanning all seven regions of the country, particularly marking substantial achievements in the city gas segment.

The Chairman added, “Consus , our energy business line performed much in line with its budget figures but the natural gas price did not increase as expected and increasing operation costs had a negative impact on our trigen/cogen business arm. As of the end of 2023, the total installed capacity of Consus Enerji’s operational power plants is 98 MW, of which 43.8 MW comes from renewables. The remaining 54.2 MW comes from distributed power plants (cogeneration and trigeneration). Consus Enerji will have increased its total installed capacity to over 110 MW when ongoing investment processes for projects will be completed.

In mining division, the global economic slowdown, particularly in our main export market, Europe, led to reduced sales volumes in 2023. Despite overall volume contraction, we anticipate sustained demand for quality/processed products, which, although smaller in volume compared to unprocessed/bulk feldspar, offer higher margins.”

İstanbul Asset Management has also had an excellent year, given the gyrations in economic policy. Assets under management have increased substantially to nearly over 68 bn TL.

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

“I am happy to state that 2023 was another year of success. Despite continuous expansion and heavy investment periods, as a Group, we managed to keep our financial ratios at comfortable levels. With the refinancing projects we have carried out, we have achieved an approximate annual interest savings of 10 million dollars across the group, shaping according to changing market conditions. We will continue to closely monitor market conditions.”

Global Investment Holdings reported 12.176 bn TL revenues (excluding IFRIC-12 Construction Revenue) in FY 2023, indicating a 11% decrease yoy on an inflation adjusted basis. Without inflation accounting, revenues indicate a 34% increase in FY 2023 yoy. When Gas and Mining businesses are excluded, revenues indicate a strong 98% increase.

Global Investment Holdings’ consolidated operating EBITDA is 4,690.3mn in FY 2023, remaining flat yoy on an inflation adjusted basis. Without inflation accounting, EBITDA indicates a 52% increase in FY 2023 yoy. When Gas and Mining businesses are excluded, EBITDA indicates a robust 106% increase.

GIH reported a consolidated net profit of 2,007.8mn TL in FY 2023 with a strong 76% increase on an inflation adjusted basis; while without inflation accounting, net profit marks a 41% increase. The bottom line incorporated TL 1.7bn of income and expense, of which TL 1,681.2mn were depreciation and amortization, TL 303.0mn net foreign exchange loss and 288 million TL monetary gain due to the application of IAS 29.

On a divisional basis:

On the ports side, average occupancy rates of the cruise ships visiting GPH`s consolidated ports in December 2023 was 105%. Number of calls at GPH`s ports in FY 2023 was 23% higher than FY 2022 level, while passenger movements at GPH ports in FY 2023 was 67% higher than FY 2022 level. The passenger movements in 2023 exceeded the budget by 11%

Revenues surged by 42% (pre-IAS 29: 119% increase) in 2023 compared to 2022, reaching TL 4.8bn, while adjusted EBITDA jumped by 55% (pre-IAS 29: 135% increase) compared to 2022 reaching TL 3.1bn in 2023.

Revenues decreased by 42% in FY 2023 yoy (Pre IAS 29: 16% decrease), standing at TL 4,019bn. Gross profit decreased by 57% in 2023 yoy, standing at TL 783mn according to Naturelgaz’s standalone financials. (Pre IAS 29: 28% decrease), EBITDA narrowed down by 57% in FY 2023 yoy (Pre IAS 29: 34% decrease), standing at TL 712.2mn.

• The most significant factor suppressing revenues, gross profitability, and EBITDA was the positive effect of the public index in 2022, arising from sales to the public.
• Another factor limiting profitability was the rise in depreciation expenses resulting from increased investments in 2023 which target to increase capacity and cut costs.

Naturelgaz’s net cash surplus stood at 212.1mn TL at 31 December 2023 as opposed to 335mn TL at 31 December, 2022. In addition, Naturelgaz is planning to distribute a gross dividend payment of TL 320 mn to shareholders on May 9, 2024.

The power division reported 1,170.1mn TL revenues in 2023, indicating a 6% increase yoy (Pre IAS 29: 68% increase). EBITDA decreased by a 16% to 290.9mn TL in 2023 yoy (Pre IAS 29: 17% increase). The decrease in EBITDA was mainly due to high TL inflation which caused operating margins to shrink for business lines with hard currency earnings and the narrowing margin between electricity prices and natural gas prices in the Distributed Power segment, as well.

The mining division because of the decline in demand from the local and European markets, achieved a sales volume of 318,531 tons in 2023, representing a 36% decrease yoy. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 233,203 tons while domestic sales volume was realized at 85,329 tons for the period.

The mining division announced revenues of 465.1 mn TL in 2023 with 29% decrease (Pre IAS 29: 10% increase). The operating EBITDA was 117.8 mn TL in 2023, indicating a 43% decline yoy (Pre IAS 29: 8% decrease). The decline in EBITDA was mainly attributable to lower sales volume as well as contracting operating margins as a result of higher inflation rates compared to FX rate hikes.

The real estate division registered 20% increase in revenues (Pre IAS 29: 82% increase) and 21% increase in EBITDA (Pre IAS 29: 78% increase) in 2023 yoy, with revenues and EBITDA standing at 163.9mn TL and 80.4mn TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations

The brokerage & asset management division revenues stood at 1,442.8mn TL 2023, registering a 9% increase yoy (Pre IAS 29: 64% increase), thanks to the contribution from increasing transaction volumes, while operating EBITDA was 498.1mn TL registering a 5% decrease (Pre IAS 29: 57% increase) yoy.

Indebtedness:

Gross Debt/EBITDA fell below 5.0x and stood at 4.9x.

Holding consolidated net debt stood at 662.4mn USD (TL 19.5 bn) at 2023 year-end. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 835,5mn USD. (Ports division: 687,4mn USD).

• Consolidated Net Debt/EBITDA multiplier is 3.9x at 2023 as opposed to 3.6x at 2022 year-end. However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier is 3.0x at FY2023 versus 2.6x 2022 year-end. When entire ports business is excluded, Net Debt/EBITDA multiplier stands at 1.2x at FY2023 as opposed to 0.8x 2022 year-end. The main reasons for the increase in the Net Debt / EBITDA multiplier have been dividend payments of subsidiaries, payment to Privatization Authority regarding Ege Port concession extension, Capex and Additional borrowing by the GPH (Issuance of Bonds; Global Ports Group Finance LTD).

For further information, please contact:

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

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