Global Investment Holdings Announces Consolidated Net Revenues of TL479.2mn and EBITDA of TL163.4mn in the first nine months of 2016

Global Investment Holdings (GIH or the Group) reports consolidated revenues of TL479.2mn for the first nine months of 2016, representing an increase of 15% compared to the same period last year; while announcing a consolidated EBITDA of TL163.4mn.

GIH announced its financial results for 9M 2016. According to the disclosure, consolidated net revenues reached TL479.2mn compared to TL415.8mn last year, representing an increase of 15%.  Most of the business divisions under the Company contributed to this increase, with the Port and Power/Gas/Mining divisions contributing the most.

GIH also announced that, in the first nine months of 2016, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to TL163.4mn, compared to an EBITDA of TL143.0mn in the same period last year.

On a divisional basis, the Group’s Port Division revenues reached TL264.7mn in 9M 2016, representing 22% increase over the same period of 2015. A significant portion of this increase is attributable to the contributions from the Group’s cruise port operations. Although affected by the tension and the Coupe attempt, the impact on GPH ports in Turkey was much more limited with 39.7% decline, compared to Turkey’s 65.3% decrease in overall cruise passengers, thanks to the world-class security measures at utmost priority at GPH ports and unique excursion choices Ege Ports offers. Driven by GPH’s well diversified cruise port network, even based on proforma 9M 2015 numbers, GPH ports excluding Turkey managed to increase total cruise passengers by 5.1% YoY in 9M 2016 organically. The increase was mainly driven by Barcelona, Malaga, Valletta and Singapore. When Valletta Cruise Port (VCP) acquisition effect for 9M 2015 is excluded, total passenger base including Turkey indicates a solid 10.0% YoY inorganic growth in 9M 2016. On the other hand, the division’s EBITDA was reported as TL156.1mn in 9M 2016 compared to TL123.6mn over the same period in 2015, implying a pleasing 26% growth YoY. Despite the Perfect Storm, GPH managed to maximize revenue and EBITDA creation in 9M 2016 thanks to Valletta Cruise Port (Malta) acquisition, increasing share of turnaround passengers in total passenger mix driven by Barcelona; tariff adjustments; tariff flexibility at operational ports due to underlying concessions; 10.4% depreciation of TL against US$ in 9M16 compared to 9M15 (which translated into c.2.5% increase in EBITDA, as approximately 70% of costs are in TL in Turkish port  operations). Also, Container and cargo yields continued to increase, further contributing to EBITDA growth in 9M 2016.

The Power/Gas/Mining Division reported revenues of TL170.4mn in the first nine months of 2016, representing a 4% increase over the same period in 2015, mainly driven by the Company’s feldspar mining and power generation operations. Naturelgaz revenues stood at TL130.0mn as compared to TL138.3mn over the same period in 2015, resulting from the effect of the decrease in average unit gas price, which is in line with the budget.  Division’s EBITDA consisting of CNG, feldspar mining and energy efficiency operations were reported as TL24.0mn in 9M 2016 compared to a TL22.1mn in 9M 2015. Naturelgaz EBITDA in 2015 included gains from asset sales amounting 2.0mTL. Adjusting for this one-off transaction, Naturelgaz EBITDA too was increased despite declining average gas sales prices in 2016.

At the bottom line, GIH reported a consolidated net loss of TL62.9mn in 9M 2016, compared to a net loss of TL61.1mn in 9M 2015, triggered mainly by non-cash depreciation charges and net interest expenses

Commenting on the recent developments, GIH’s CFO, Kerem Eser, underlined the significance of the recent addition of Ravenna Cruise Port to GPH’s Portfolio. “Ravenna is a city of mosaics, and is a favourable destination thanks to its geographical location.  Its proximity to Venice, Bologna and the Independent Republic of San Marino, as well as the reduced travel time to Florence due to the new high speed rail connections, makes it an attractive cruise destination. The traffic in the Adriatic sea is constantly increasing and Ravenna Cruise Port is very well positioned to benefit from the increasing traffic as one of the most appealing Italian cruise ship destinations. With the addition of Ravenna cruise ports to Global Ports’ existing portfolio of Barcelona, Malaga (Spain), Venice (Italy), Valletta (Malta), Lisbon (Portugal), Singapore – SATS Creuers (Singapore), Adria-Bar (Montenegro), Kuşadası, Bodrum, Antalya (Turkey), and Dubrovnik (Croatia, tender process continues), total passenger figure exceeds 7 million, which once again solidify Global Ports position as the largest cruise operator in the world.” Kerem Eser also added that negotiations on the share purchase of the previously announced other Italian ports are ongoing.

He further stated that aside from its CNG and Mining operations, the Group will continue its growth policy in renewable energy generation, by further developing its solar energy and biomass projects all the while seeking new opportunities in this budding sector.

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