- Naturelgaz, Turkey’s leading non-pipeline natural gas distribution company and a subsidiary of Global Investment Holdings, reported revenues of 125.2 mn TL in Q1 2021, up by 46% yoy. EBITDA reached 21.6 mn TL, surging by 49% yoy; while net profit amounted to 858k TL.
Commenting on the results, the CEO of Naturelgaz, Hasan Tahsin Turan, stated that “We have achieved strong results thanks to our healthy balance sheet. The Company’s net debt amounting to 105 mn TL at the end of 2020, has turned into 26 mn TL net cash surplus as of Q1 2021 due to the proceeds from the IPO. We look forward to evaluating growth opportunities in our existing business through new investments and extending our expertise to surrounding markets to realize new projects.”
Naturelgaz, Turkey’s leading non-pipeline natural gas distribution company and a subsidiary of Global Investment Holdings, announced its financial results for the first quarter of 2021. Revenues reached 125.2 mn TL, representing a robust increase of 46% compared to the same period last year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached 21.6 mn TL in the quarter, surging by 49% yoy. Naturelgaz reported a net profit of 858k TL in the first quarter of 2021, and the Company’s paid-in-capital stood at 358.1 mn TL.
Sales volume reached 48.2 mn Sm3 in the first quarter of 2021, representing a notable increase of 49% compared to the same period last year. The higher volume is mainly due to the increase in City Gas 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 sales volume.
Auto-CNG stations will rise to 21
Business development efforts continued in the first quarter of 2021, and on February 10th 2021, Naturelgaz signed an agreement with Petrol Ofisi to create synergies in the auto-CNG business. The agreement envisages the establishment of 12 new auto-CNG stations within two years in Petrol Ofisi’s or its dealers’ stations with Naturelgaz’ licenses, while revenue generation will be shared between the two parties. As a result of the agreement, the infrastructure of Naturelgaz will enlarge to 21 auto-CNG stations.
As of April 1st 2021, 30% of Naturelgaz’s shares started to trade on BIST Stars Market with “NTGAZ” ticker. The IPO of Naturelgaz, marked as the first in energy sector in 2021 and priced at 8.50 TL per share, has received overwhelming investor demand, with 75.3 times domestic individual investor oversubscription (allocation: 60%), 28.8 times domestic institutional investor oversubscription (allocation: 30%), and 3.5 times international institutional investor oversubscription (allocation: 10%) with an offer size of 293,250,000 TL.
Robust start to 2021
Commenting on the results, the CEO of Naturelgaz, Hasan Tahsin Turan, stated that “We managed to close the first quarter of this year with very successful performance. EBITDA surged by 49% compared to the same period last year. Our strong financial performance can be attributed to the increase in sales volumes as well as effective cost management. In order to mitigate the adverse effects of the pandemic, we focused on operational efficiency and careful risk management more than ever, and minimized the currency risk. We look forward to increasing our sales volume further in order to strengthen our leading position in the sector.”
Drawing attention to the improvement in liquidity and decrease in indebtedness ratio, the CEO further stated: “The Company’s net debt amounting to 105 mn TL at the end of 2020, has turned into 26 mn TL net cash surplus as of Q1 2021 due to the proceeds from IPO. Consequently, we expect a significant decline in our financial expenses in the coming period.”
Investments will continue
The CEO added that: “We are focusing on business development both in Turkey and abroad. Our utmost aim is to provide sustainable and innovative solutions to our customers. To this end, we look forward to evaluating growth opportunities in our existing business through new investments and extend our expertise to surrounding markets to realize new projects.” - Redemption of Eurobond
