Global Investment Holdings (“GIH”), a diversified conglomerate operating in 17 different countries across 4 continents, announced its full year consolidated results which ended 30 September 2023, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 530.2mn TL in 9M 2023, compared to a net profit of TL 262.2mn in 9M 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 38% in 9M 2023 over 9M 2022, reaching TL 6.4bn; while Consolidated Operating EBITDA rose 58% to TL 2.6bn in the same period.

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

“On this significant point in history when we celebrate the 100th anniversary of our Republic, we fondly remember its founders, particularly Atatürk, with respect, gratitude, and longing. We feel the excitement of carrying our Republic into the next 100 years with many successes together. As we continue to walk resolutely on the path left to us by our Great Leader, we carry the responsibility of preserving this legacy in our hearts.”

“I am proud to share that we've successfully navigated the initial nine months, even in the face of considerable challenges. Since our last webcast in August, we've witnessed a notable increase in geopolitical risks, which persist as substantial hurdles for the worldwide economy. Numerous nations are grappling with elevated inflation rates, which continue to surpass historical norms, leading to the maintenance of stringent monetary policies. Throughout this timeframe, despite the difficulties of operating in uncertain conditions with limited foresight, we consistently delivered positive results. In the first nine months of 2023, we excelled in generating impressive Net Profit, Revenue, and EBITDA compared to the corresponding period last year. I'm confident that by maintaining our current level of determination and performance, we're poised to deliver even more exceptional results in the final quarter of the year.”

The Chairman emphasize that “I'd like to commence my remarks with an exceedingly important piece of news concerning our port business. GPH has issued USD 330 million of secured private placement notes ("Notes") to insurance companies and long-term asset managers at a fixed coupon of 7.87%. The Notes have received an investment grade credit rating from two rating agencies and will fully amortize over 17 years, with a weighted average maturity of c13 years. The majority of the proceeds have been used to repay in full the outstanding senior secured loan from Sixth Street, including early repayment fees and accrued interest. The balance of proceeds from the Notes will primarily be used to fund further Caribbean expansion and the payment of transaction costs. This financing generates material savings of cash interest expenses and creates a stable, long-term funding base for the Group. Further, it secures the financing of our growth pipeline.
Additionaly, GPH reached an agreement 10-year port concession agreement, with a potential 5-year extension option, by bremenports GmbH & Co. KG ("bremenports") on behalf of the city of Bremen regarding the operations at the Cruise Terminal Columbusbahnhof Bremerhaven ("Bremerhaven Cruise Port"). The cruise facilities at Bremerhaven Cruise Port are currently undergoing a multimillion-euro investment by the local authorities, which once completed will expand and renew the port facilities. GPH expects to take over operations of the port in the first quarter of calendar year 2025, when the agreement with the current operator ends.

The Chairman continued: “Bookings remained strong throughout the third quarter, significantly exceeding 2019 levels. Closer-in demand for 2023 sailings exceeded expectations and contributed to higher load factors in the third quarter. Demand for 2024 has continued to accelerate, with bookings significantly and consistently outpacing 2019 levels. Booked load factors and rates are higher than all prior years while the booking window has continued to extend. On GPH front, average occupancy rate of the cruise ships visiting GPH's ports was 115% in August 2023. Looking into the rest of the year, current call reservations at GPH's consolidated cruise ports for Apr 2023- Mar 2024 period imply passenger volumes in excess of 11.8 mn (Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m). According to Cruise Industry News, by the end of 2027, passenger capacity in the cruise industry is forecast to grow to over 40 mn, a growth rate of 45% from pre-Covid levels.

The Chairman added, “The performance of our business continues to accelerate, driven by strong demand and excellent operational execution.

As for Gas business, despite the challenging market conditions, Naturelgaz has delivered sound results preserving its pioneer position in the market. Naturelgaz has focused on investments in 2023 which target to increase capacity and cut costs; spending nearly 230mn TL (financed by equity) in 9M 2023.

As for Power business, The Group is also planning to complete hybrid solar farm investments with 3.6 MW capacity in the last quarter of 2023 in its biomass plants 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. While the installation of those hybrid solar plants is in progress, subsequent to the new regulation which was effective in October 2022, the Group applied to the EMRA (Energy Market Regulatory Authority) to increase the hybrid capacity to 11.7 MW in total. In October 2023, the relevant application for an increase in capacity was approved by EMRA

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

“GIH has been taking major effective steps to reduce the debt burden since 2021. Holding standalone debt declined nearly by half in USD terms in the last two years. Meanwhile, profitability was remarkably boosted thanks to the bolstering activity in all of the business lines, especially the return of cruise port operations. As a result, GIH’s Net Debt / EBITDA dramatically improved, declining to 3.9x at 30.09.2023 on a consolidated basis from 11.6x at 2021 YE. Hence, with a deleveraged balance sheet, dividend upstream and strong operations from its subsidiaries, the outlook seems quite promising for the upcoming periods.”

Global Investment Holdings reported 6.4 bn TL revenues (excluding IFRIC-12 Construction Revenue) in 9M 2023, indicating a robust 38% increase yoy well above inflation, with strong contribution from major business divisions, with ports and brokerage&asset management divisions contributing the most.

Global Investment Holdings’ consolidated operating EBITDA soared by 58% in 9M 2023 yoy well above inflation, reaching 2.6bn TL and leading to margin expansion. EBITDA growth was mainly driven by a solid contribution from the ports business and brokerage&asset management.

GIH reported a consolidated net profit of 530.2mn TL in 9M 2023, compared to a net profit of TL 262.2mn in 9M 2022. The bottom line incorporated TL 823.5mn of non-cash charges of which TL 755.4mn were depreciation and amortization, and TL 68.1mn in net foreign exchange loss.
Depreciation and amortization charges, increased from TL 529.4mn in 9M 2022 to TL 755.4mn in 9M 2023.

The Group’s net interest expenses increased from TL 347.8mn TL in 9M 2022 to TL 501.9mn in 9M 2023, mainly driven by the increase in LIBOR and depreciation of TL in 9M 2023 yoy.

On a divisional basis:

On the ports side, average occupancy rates of the cruise ships visiting GPH`s consolidated ports in Aug 2023 reached 115%. Number of calls at GPH`s ports in Sep 2023 was 16% higher than Sep 2022 level, while passenger movements at GPH ports in Sep 2023 standalone was 31% higher than Sep 2022 level.

Revenues (excluding IFRIC-12 Construction Revenue) surged by 118% in 9M 2023 compared to 9M 2022, reaching TL 2,654bn , while adjusted EBITDA jumped by 133% compared to 9M 2022 reaching TL 1,716bn in 9M 2023

Naturelgaz, sales volume reached 173mn Sm3 in 9M 2023, representing an increase of 6% yoy. Citygas sales volume increased by 67% yoy, reaching 74.1mn Sm3. Revenues decreased by 12% yoy in 9M 2023, standing at TL 2,119bn. Gross profit decreased by 35% in 9M 2023 yoy, standing at TL 425 mn.; while EBITDA narrowed down by 40% yoy, standing at TL 363.9mn.

The most significant factors that suppressed Revenues, gross profitability and EBITDA were the increase in logistics and electricity expenses as well as opex, due to inflationary market conditions. As a sector dynamic, reflection of cost increases to sales prices does not happen simultaneously, but come with a lag.
Another factor limiting profitability was the rise in depreciation expenses resulting from increased investments.

Naturelgaz’s net cash surplus stood at 105.7mn TL at 30 September 2023 as opposed to 335mn TL at 31 December, 2022. I. In addition, Naturelgaz distributed a dividend payment of TL 350 mn to shareholders on April 4, 2023.

The power division reported 645.5mn TL revenues in 9M 2023, indicating a 44% increase yoy. EBITDA increased by a mere 4% to 171mn TL in 9M 2023 yoy. Limited growth in EBITDA in 9M 2023 was mainly caused by the negative impact of the TL inflation rate realizing higher than the increase in FX rates, resulting in contracting margins for businesses with hard currency revenues and TL costs.

The mining division Despite the stronger demand from the local market, sales volume declined by 38% to 266,172 tons in 9M 2023 yoy due to the decline in demand from the European markets caused by the recession. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 184,955 tons while domestic sales volume was realized at 81,217 tons for the period.

The mining division announced revenues of 267.7 mn TL in 9M 2023.

The operating EBITDA was 59.9mn TL in 9M 2023, indicating a 35% decline yoy. The decline in EBITDA was mainly attributable to lower sales volume, increased portion of domestic sales in total sales mix, and contracting operating margins as a result of higher inflation rates compared to FX rate hikes.

The real estate registered 38mn TL increase in revenues and 16,3mn TL increase in EBITDA in 9M 2023 yoy, with revenues and EBITDA standing at 89,1mn TL and 41,5mn 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 581.1mn TL in 9M 2023, registering a 147% increase yoy, thanks to the contribution from increasing transaction volumes while operating EBITDA was 289.5mn TL registering a 317% increase yoy 

Indebtedness:

Holding consolidated net debt stood at 661.4mn USD (TL 17.1 bn) at the 9M 2023. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 692,6mn USD. (Ports division: $ 611,2mn).

Consolidated Net Debt/EBITDA multiplier is 3.9x at 9M 2023 as opposed to 3.8x at 2022 year end. However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier is 3.0x at 9M 2023 versus 2.8x 2022 year end. When entire ports business is excluded, Net Debt/EBITDA multiplier stands at 1.4x at 9M 2023 as opposed to 0.9x 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 and Capex.

For further information, please contact:

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

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 14 different countries across 4 continents, announced its full year consolidated results which ended 30 June 2023, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 312.6mn TL in 6M 2023, compared to a net profit of TL 81.3mn in 6M 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 54% in 6M 2023 over 6M 2022, reaching TL 3.7bn; while Consolidated Operating EBITDA rose 75% to TL 1.25bn in the same period.

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

“I am having the pleasure to have seen that despite inflationary pressures and volatile market conditions, we have performed well across all our business lines in the first half of the year. We achieved strong performance in Net Profit, Revenue, and EBITDA generation in 6M 2023 compared to the same period last year. Revenue, and EBITDA growth was pleasingly well above inflation and I believe that we will achieve even better results with the same determination and performance in the second half of the year.”

The Chairman emphasize that:” I would like to start with two pieces of good news regarding our portfolio of ports. Firstly, we have recently signed a 30-year concession, with a potential 10-year extension option, with the Government of Saint Lucia for the cruise related operations in Saint Lucia. This agreement marks a further significant step in GPH's strategic ambitions in the Caribbean. Additionaly, GPH reached an agreement to extend its concession agreement for Ege Port, Kusadasi, a unique destination for eastern Mediterranean itineraries. The original concession agreement was due to expire in July 2033, and following this extension agreement the concession will now expire in July 2052. The upfront concession fee has been funded by a capital increase at Ege Port. This capital increase was provided by GPH only. As a result, GPH’s equity stake in Ege Port has increased to 90.5%”

The Chairman continued: “In the 6M 2023, Industry booking patterns have been rebuilt to market norms over the last 12 months, and all major cruise lines have reported record booking trends for 2023. The scheduled launch of new cruise ships in the year ahead means the number of available berths across the global cruise fleet will reach all-time highs in 2024 and, when combined with industry occupancy rates reaching pre-Covid-19 levels, the industry will be propelled to exciting new highs. In the second quarter of 2023, cruise demand remained strong, while booking volumes continued to accelerate for both 2023 and 2024. On GPH front, average occupancy rate of the cruise ships visiting GPH's ports was 109% in June 2023. Looking into the rest of the year, current call reservations at GPH's consolidated cruise ports for Apr 2023- Mar 2024 period imply passenger volumes in excess of 11.8 mn (Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m). According to Cruise Industry News, by the end of 2027, passenger capacity in the cruise industry is forecast to grow to over 40 mn, a growth rate of 45% from pre-Covid levels.

The Chairman added, “We successfully refinanced Nassau Cruise Ports local bond issued in June 2020. The refinancing resulted in an increase in the nominal outstanding amount to USD 145 mn (from USD 134.4 mn) and a reduction in the fixed coupon to 6.0% (from 8.0%), reducing the annual interest payment by USD 2.0 mn..”

As for Gas business, despite the challenging market conditions, Naturelgaz has delivered sound results preserving its pioneer position in the market. Naturelgaz has focused on investments in 2023 which target to increase capacity and cut costs; spending nearly 100mn TL (financed by equity) in 6M 2023.

As for Power business, pursuant to the agreement signed in October 2022 of a new distributed solar power plant with a capacity of 2.05 MW, the construction of which has been completed in August 2023; hence total installed capacity of the group has increased to 96.2 MW as of August 2023.

As for Brokerage&Asset Management, in the beginning of the year, we were quite hesitant due to market uncertainities. However, financial markets have gained momentum due to the tight fiscal policies put in place. I expect such momentum to continue in the second half of the year.

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:
“As known, During the last two years GPH has received additional, long-term funding support from us in the form of subordinated shareholder loans to finance project expenses for expansion projects and general corporate purposes. With the aim of reducing this debt and increasing our stake in GPH, we realized a capital increase at GPH. As a result, our stake in GPH's issued share capital has reached 66.3%. Furthermore, as GIH, we will be distributing dividends until the end of this year.”

Global Investment Holdings reported 3.7 bn TL revenues (excluding IFRIC-12 Construction Revenue) in 6M 2023, indicating a robust 54% increase yoy well above inflation, with strong contribution from major business divisions, with ports and brokerage&asset management divisions contributing the most.

Global Investment Holdings’ consolidated operating EBITDA soared by 75% in 6M 2023 yoy well above inflation, reaching 1.25bn TL and leading to margin expansion. EBITDA growth was mainly driven by a solid contribution from the ports business and brokerage&asset management.

GIH reported a consolidated net profit of 312.6mn TL in 6M 2023, compared to a net profit of TL 81.3mn in 6M 2022. The bottom line incorporated TL 488.1mn of non-cash charges of which TL 465mn were depreciation and amortization, and TL 23.1mn in net foreign exchange loss.
Depreciation and amortization charges, increased from TL 339.4mn in 6M 2022 to TL 465mn in 6M 2023.

The Group’s net interest expenses increased from TL 171.4mn TL in 6M 2022 to TL 227.5mn in 6M 2023, mainly driven by the increase in LIBOR and depreciation of TL in 6A 2023 yoy.

On a divisional basis:

On the ports side, average occupancy rates of the cruise ships visiting GPH`s consolidated ports in June 2023 reached 109%. Number of calls at GPH`s ports in July 2023 was 14% higher than July 2022 level, while passenger movements at GPH ports in July 2023 standalone was 48% higher than July 2022 level.

In line with occupancy rates returning to normal Revenue and EBITDA generation continued to accelerate. Furthermore, the increase in ancillary revenues and completion of new investments like Nassau contributed significantly to both revenue growth and expansion of EBITDA margins.

Revenues (excluding IFRIC-12 Construction Revenue) surged by 125% in 6M 2023 compared to 6M 2022, reaching TL 1,320bn , while adjusted EBITDA jumped by 173% compared to 6M 2022 reaching TL 816.5mn in 6M 2023

Naturelgaz, sales volume reached 128mn Sm3 in 6M 2023, representing an increase of 11% yoy. Citygas sales volume increased by 67% yoy, reaching 69.8mn Sm3. Revenues increased by 18% yoy in 6M 2023, reaching TL 1,458bn. Gross profit decreased by 10% in 6M 2023 yoy, standing at TL 272 mn.; while EBITDA narrowed down by 10% yoy, standing at TL 235.6mn.

The most significant factors that suppressed gross profitability and EBITDA were the increase in logistics and electricity expenses as well as opex, due to inflationary market conditions. As a sector dynamic, reflection of cost increases to sales prices does not happen simultaneously, but come with a lag.

Another factor limiting profitability was the rise in depreciation expenses resulting from increased investments.

Naturelgaz’s net cash surplus stood at 105.7mn TL at 30 June 2023 as opposed to 335mn TL at 31 December, 2022. I. In addition, Naturelgaz distributed a dividend payment of TL 350 mn to shareholders on April 4, 2023.

The power division reported 376.7mn TL revenues in 6M 2023, indicating a 43% increase yoy. EBITDA increased by a mere 2% to 86mn TL in 6M 2023 yoy. Limited growth in EBITDA in 6M 2023 was mainly caused by the negative impact of the TL inflation rate realizing higher than the increase in FX rates, resulting in contracting margins for businesses with hard currency revenues and TL costs.

The mining division Despite the stronger demand from the local market, sales volume declined by 27% to 198,451 tons in 6M 2023 yoy due to the decline in demand from the European markets caused by the recession. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 131,375 tons while domestic sales volume was realized at 67,076 tons for the period.

The mining division announced revenues of 166.5 mn TL in 6M 2023, indicating a 7% increase yoy.

The operating EBITDA was 33.4 mn TL in 6M 2023, indicating a 37% decline yoy. The decline in EBITDA was mainly attributable to lower sales volume, increased portion of domestic sales in total sales mix, and contracting operating margins as a result of higher inflation rates compared to FX rate hikes.

The real estate registered 19,5mn TL increase in revenues and 10,6mn TL increase in EBITDA in 6M 2023 yoy, with revenues and EBITDA standing at 51,2mn TL and 22,7mn 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 311.6mn TL in 6M 2023, registering a 129% increase yoy, thanks to the contribution from increasing transaction volumes while operating EBITDA was 96.7mn TL registering a 145% increase yoy

Indebtedness:

Holding consolidated net debt stood at 661.4mn USD (TL 17.1 bn) at the 6M 2023. Meanwhile, excluding GIH standalone, consolidated gross debt of our operational divisions stood at 692,6mn USD. (Ports division: $ 611,2mn).

Consolidated Net Debt/EBITDA multiplier is 3.9x at 6M 2023 as opposed to 3.8x at 2022 year end. However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier is 3.0x at 6M 2023 versus 2.8x 2022 year end. When entire ports business is excluded, Net Debt/EBITDA multiplier stands at 1.4x at 6M 2023 as opposed to 0.9x 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 and Capex.

For further information, please contact:

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

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 14 different countries across 4 continents, announced its full year consolidated results which ended 31 March 2023, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 237mn TL in Q1 2023, compared to a net profit of TL 77mn in Q1 2022. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 98% in Q1 2023 over Q1 2022, reaching TL 1.8bn; while Consolidated Operating EBITDA rose 173% to TL 482mn in the same period.

Global Investment Holdings’ Chairman & CEO, Mehmet Kutman, stated:
“Once again, my sincere condolences for all our citizens who lost their lives in the earthquake that occurred on 06.02.2023 and devastated us as nation. The enormous damage we have witnessed requires long-term and comprehensive support. To help bind up the wounds, all of our Group Companies have provided and continue to provide any aid to the region since the early moments of the earthquake; while also taking part in permanent projects to help those who are left behind can hold on to life.”

“Having left a very successful year behind and recovered from the pandemic despite various challenges, I am pleased to say that we have made a promising start to 2023 with a robust Q1 performance. Our major business lines demonstrated strong revenue, EBITDA and Net Profit generation, with record earnings from Ports and Gas businesses. I am confident that this momentum will only continue to build and drive success for the rest of the year.”

The Chairman emphasize that: ”I couldn’t be more excited that we have successfully completed our investment in Nassau Cruise Port, the single largest port in the Caribbean, and are set to reap the rewards of this investment, with the port's grand opening on May 25th, marking the start of a new chapter in our success story. Our unwavering commitment to delivering excellence has driven this accomplishment, and we look forward to creating new opportunities and achieving even greater heights in the future”

The Chairman continued: “In the first quarter of 2023, cruise business continued to accelerate and we encountered a stronger-than-expected demand for cruising, which has translated into a robust booking environment and led to higher occupancy rates. I am glad to see that booking window is completely back to normal and all major cruise lines have reported record booking trends for 2023; hence expecting occupancy levels to reach historical records by summer 2023. The global cruise fleet was effectively fully deployed by the start of the important Caribbean winter season and the Caribbean cruise market experienced the strongest recovery in occupancy levels. On GPH front, despite Q1 being the low season in the Mediterranean; thanks to our geographic diversification and presence in the Caribbean, we have eliminated the seasonality impact to a large extent.

Average occupancy rate of the cruise ships visiting GPH's ports was 103.2% in February 2023 as opposed to a mere 47% in February 2022. Looking into the rest of the year, current call reservations at GPH's consolidated cruise ports for Apr 2023- Mar 2024 period are 4,632, implying passenger volumes in excess of 11.8 million (Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m). 

The Chairman added, “As you may recall, we ended 2022 operating in 27 cruise ports across 14 countries. I am pleased to inform you that in the first quarter of this year, the joint venture in which GPH owns an 80% stake, Servicios Portuarios Canarios ("Sepcan") has signed a 15-year cruise port concession for the operation of the Alicante Cruise Port, following the award of preferred bidder status by the Port Authority of Alicante. We are excited to begin this new venture and look forward to expanding our presence in the region.”

Commenting on the results, the Chief Financial Officer of Global Investment Holdings, Ferdağ Ildır, stated:
“As known, Naturelgaz had an outstanding and a profitable year in 2022. In order to share this success with its investor, the company distributed a total dividend of 350 mn TL from its 2022 distributable profit. Global Investment Holdings received a dividend flow of 245 mn TL, which corresponds to our 70% stake in Naturelgaz in April 2023. After a remarkable 2022 despite a challenging environment, we are glad to announce a robust set of results in the first quarter of 2023, which we expect to continue for the coming nine months.”

Global Investment Holdings reported 1.8 bn TL revenues (excluding IFRIC-12 Construction Revenue) in Q1 2023, indicating a robust 98% increase yoy with strong contribution from major business divisions, with gas division, ports and brokerage&asset management divisions contributing the most.

Global Investment Holdings’ consolidated operating EBITDA soared by 173% in Q1 2023 yoy and reached 482mn TL, driven by a solid contribution from major business divisions, especially due to the returns from the ports business. Increase in inflation was higher than the increase in FX rates, which put pressure on EBITDA margins in some of our business lines such as mining and power.

GIH reported a consolidated net profit of 236.8mn TL in Q1 2023, compared to a net profit of TL 77mn in Q1 2022. The bottom line incorporated TL 232.3mn of non-cash charges of which TL 224.8mn was depreciation and amortization, and TL 7.5mn in net foreign exchange loss.
Depreciation and amortization charges, increased from TL 172.4mn in Q1 2022 to TL 224.8mn in Q1 2023.

The Group’s net interest expenses increased from TL 44.6mn TL in Q1 2022 to TL 151.5mn in Q1 2023, mainly driven by the increase in LIBOR and depreciation of TL in Q1 2023 yoy.

On a divisional basis:
On the ports side, average occupancy rates of the cruise ships visiting GPH`s consolidated ports in February 2023 reached 103.2% as opposed to a mere 47% in February 2022. Number of calls at GPH`s ports in March 2023 was 24% higher than March 2022 level, while passenger movements at GPH ports in March 2023 standalone was 127% higher than March 2022 level. Current cruise call reservations at GPH's consolidated cruise ports for Apr 2023- Mar 2024 period are 4,632, implying passenger volumes in excess of 11.8 million. Passenger volumes at all ports, including equity accounted ports La Goulette, Lisbon, Singapore, Venice are expected to be in excess of 15m.

In line with occupancy rates returning to normal and full deployment of the global cruise fleet. Revenue and EBITDA generation continued to accelerate:
Revenues (excluding IFRIC-12 Construction Revenue) surged by 173% in Q1 2023 compared to Q1 2022, reaching TL 466mn , while adjusted EBITDA jumped by 413% compared to Q1 2022 reaching TL 262,5mn in Q1 2023

Naturelgaz, sales volume reached 75mn Sm3 in Q1 2023, representing an increase of 11% yoy. Citygas sales volume increased by 46% yoy, reaching 51.2mn Sm3. Revenues increased by 85% yoy in Q1 2023, reaching TL 850mn, reflecting the increase in sales volume especially in Citygas, Bulk CNG and the increase in gas prices. EBITDA increased by 75% yoy in Q1 2023, reaching TL 112mn. 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.

Naturelgaz’s net cash surplus amounting to 335mn TL as of December 31, 2022, increased to TL 500mn net cash surplus as of March 31, 2023. In addition, Naturelgaz distributed a dividend payment of TL 350 mn to shareholders on April 4, 2023. (GIH received TL 245 mn dividend corresponding to its 70% stake.)

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 33% yoy in Q1 2023, generating 167mn TL. The division generated 42mn TL EBITDA in Q1 2023, indicating an 11% increase yoy. The main reason for the limited increase compared to the same period of the previous year is the negative impact of the rising TL inflation rates affecting both production and operational costs.

The mining division The Company realized 138,542 tons of product sales volume in Q1 2023, up by 12% yoy, despite steady decrease in feldspar demand in export markets driven by the recession in Europe, thanks mainly to striking increase in demand from local markets. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 88,020 tons while domestic sales volume was realized at 50,522 tons for the period.

The company announced revenues of 100mn TL in Q1 2023, indicating 46% increase YoY. Sustaining sales volume was mainly driven by the improvement and diversification of customer portfolio. The operating EBITDA was 18mn TL in Q1 2023, indicating an 18% decline yoy. The decline in EBIDTA was mainly due to the increase in inflation rates affecting the cost base, realizing higher than the increase in product sales prices in the same period.

The real estate registered 7,9mn TL increase in revenues and 3,3mn TL increase in EBITDA in Q1 2023 yoy, with revenues and EBITDA standing at 22,5mn TL and 9,7mn 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 174mn TL in Q1 2023, registering a 176% increase yoy, thanks to the contribution from increasing transaction volumes and full consolidation of İstanbul Asset Management, while operating EBITDA was 57mn TL registering a 215% increase yoy

Indebtedness:
Holding consolidated net debt stood at 583.9 mn USD (TL 11.2 bn) at the Q1 2023. Meanwhile, excluding GIH, consolidated gross debt of our operational divisions stood at 532.8mn USD. (Ports division: $497.1mn).

Consolidated Net Debt/EBITDA multiplier declined further to 3.5x at Q1 2023 year-end from 3.8x at 31.12.2022 (2021 year-end: 11.6x). However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier declines to 2.6x at Q1 2023 from 2.8x at 31.12.2022. When entire ports business is excluded, Net Debt/EBITDA multiplier is 1.0x at Q1 2023

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

A fruit harvesting year: Performance across all major business lines well ahead of inflation and guidance…

Global Investment Holdings (“GIH”), a diversified conglomerate operating in 14 different countries across 4 continents, announced its full year consolidated results which ended 31 December 2022, and commented on recent developments.

Global Investment Holdings reported Consolidated Net Profit of 1,172.0mn TL in FY 2022, compared to a net loss of TL 111.1mn in FY 2021. Consolidated Net Revenues (excluding IFRIC 12 Construction Revenue) surged by 300% in FY 2022 over FY 2021, reaching TL 7,175.5mn; while Consolidated Operating EBITDA rose 493% to TL 2,520.9mn in the same period.

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

“I would like to start with my sincere condolences for all our citizens who lost their lives in the earthquake that occurred on 06.02.2023. Our prayers are with their relatives and our nation, and we wish a speedy recovery to our citizens who were affected and injured by the earthquake. We as a country are going through very difficult times and in an effort to help bind up the wounds, all of our Group Companies have been working in coordination with the public institutions and civil society organizations, aiming to directly deliver natural gas, prefabricated containers, fuel, food, water and various other needs to those in need since the early moments of the earthquake; while also taking part in permanent housing, school, hospital projects and such.”

The Chairman moved to the results: “2022 has marked itself a challenging but a successful transitional year; a very successful year in many respects despite the inflationary pressures due to increased energy and commodity prices driven by geopolitical tensions and compelling macroeconomic effects. I am pleased to report that, in 2022, our performance across all major business lines was well ahead of inflation as well as guidance figures and that our expansion continues. In 2022, we completely left the financial effects of the Covid 19, going back to normal and even exceeding 2019 numbers while generating positive bottom-line throughout the entire year. The ongoing accelerated growth continued into the fourth quarter of 2022, translating into 300% and 493% growth in consolidated revenues and EBITDA, respectively; and TL1,172.0 mn consolidated net profit for the full year 2022 (as opposed to TL111.1mn net loss in FY 2021). Our major business lines, with gas and ports businesses contributing the most, demonstrated superior performances in FY 2022. I am having the pleasure to underline 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.”

The Chairman emphasized, “All our major companies are profitable, and we continue to expect good dividend flow from them, which we will continue to use to deleverage.”

The Chairman continued: “Our cruise port operations returned to normal and is continuing to accelerate with higher occupancy rates driven by strong demand. Booking volumes are now well above 2019 levels and 2023 booked position is well within historical range. There is a dramatic improvement over 2021 at our 27 cruise ports across 14 countries. The number of ships calling at our ports and the total number of passengers visiting our ports are back to or above pre-Covid levels. Occupancy rates for the cruise ships continued to improve, averaging between 90-95%; while in the Caribbeans, occupancy rates were around 100% and above in Q4 2022. Cruise demand is so strong that, according to Cruise Industry News, the industry expects a robust 18% growth in 2023 YoY in passenger capacity worldwide. In a five-year horizon, worldwide fleet is expected to expand to 494 ships in 2027 from 421 ships in 2022. Likewise, worldwide passenger capacity is expected to increase to 37.0 million in 2027 from 26.5 million in 2022.”

The Chairman added, “We did and will continue to make incremental additions to our port network. 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 Juan Cruise Port, Puerto Rico, marking a significant development in our strategic ambitions in the Caribbean. In Q4, we 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. Furthermore, an important milestone and a step-change in our global reach presented itself with Prince Rupert Cruise Port in British Columbia, Canada, for which we signed a 10-year concession, with a 10-year extension option, with the Port Authority to manage the port’s cruise services. Prince Rupert Cruise Port is GPH's first cruise port in North America. Last but not least, following a public tender process, the Port Authority of Alicante has awarded preferred bidder status to an 80:20 joint venture between GPH and its local partner Sepcan S.L, to operate a 15-year cruise port concession for Alicante Cruise Port in Spain. The consortium and Port Authority of Alicante will now work towards agreeing on the terms of the concession agreement, with the consortium currently expected to take over operations at Alicante Cruise Port in the first half of the calendar year 2023. By the end of 2023, I expect our network will have expanded to over 30 ports, and that construction of our facilities at the key port of Nassau to have been completed.”

The Chairman added: “Following its successful listing in 2021, Naturelgaz (our compressed natural gas distributor) has had another solid year, with volumes rising further. As its share of the Turkish non-pipe CNG distribution is now 83% and its share of the Turkish non-pipe CNG+LNG is 32%, organic growth has slowed somewhat compared to say 10 years ago, but market share gains were still very strong – an improvement of some 5-6 percentage points over 2021 & beating all estimates by a wide margin.”

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. Consus continues to expand, especially in its solar energy business, and projects are slated for European and Caribbean countries.”

The Chairman continued: “Our mining arm, Straton, had a mixed performance over the Covid period, but recovered smartly in 2021. Unfortunately, 2022 is proving to be more challenging, a situation we expect will continue through to mid-2023.

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. The same trends stated above, together with the strong rise in consumer expenditure in Turkey (third quarter GDP figures indicate a near-20% rise) means that our shopping center and real estate arm has had an even stronger recovery than we forecast, which again we expect will continue into the first half of 2023.”

The Chairman concluded: “Naturelgaz outperformed all estimations and left a great year behind. Beyond doubt 2022 was the Gas year. We will witness GPH’s strong come back in 2023 as the industry fully recovers and we will keep adding new destinations to the portfolio. I already call 2023 as the Port’s year.

We have been investing in technology startups for quite some time now and have also created our own investment vehicle. By placing all our subsidiaries operating in the financial sector under one umbrella we have created a sizeable financial products and services subsidiary which is called GFS Holding A.Ş (previously GYH Danışmanlık ve Yönetim Hizmetleri A.Ş.) We are planning to list GFS on the stock in the last quarter of 2023 or in the beginning of 2024. I believe 2024 will be the Finance year for our Group.”

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

“I am pleased to state that 2022 has been a very successful year for our Group to fully recover and emerge even stronger from the pandemic and its negative effects on our businesses. Each and every quarter, we delivered outstanding set of results despite all the challenges in the macro environment. As discussed in the prior quarters, we have been taking major effective steps to reduce the debt burden since 2021. An extensive process including the listing of our subsidiaries Naturelgaz and Consus Enerji, the sale of our commercial port in Antalya, and the capital nearly by half in the last two years. Meanwhile, profitability was remarkably boosted in 2022 thanks to the bolstering activity in all of our business lines, especially the return of our cruise port operations business at full speed. As a result, our Net Debt / EBITDA dramatically improved, declining further to 3.8x at Q4 2022 on consolidated basis from 4.3x at Q3 2022 (2021 YE: 11.6x). Hence, with a deleveraged balance sheet, dividend upstream and strong operations from our subsidiaries, we are positive for 2023 as presented in our guidance; while prioritizing dividend distribution after a successful and profitable recovery period.”

Global Investment Holdings reported 7.2 bn TL revenues (excluding IFRIC-12 Construction Revenue) in FY 2022, indicating a robust 300% increase yoy with strong contribution from all business divisions, with the gas division and the port division contributing the most. The improvement in revenue generation has gained stronger momentum in Q4 2022 (Sep-Dec), more than tripling YoY, in line with strengthening activity in underlying businesses.

Global Investment Holdings’ consolidated operating EBITDA soared by 493% in FY 2022 yoy and reached 2.5bn TL, driven by a solid contribution from all business divisions, with the Ports and Gas division contributing the most.

GIH reported a consolidated net profit of 1.172mn TL in FY 2022, compared to a net loss of TL 111.1mn in FY 2021. The bottom line incorporated TL 864.9mn of non-cash charges of which TL 736.2mn was depreciation and amortization, and TL 128.7mn in net foreign exchange loss.

Meanwhile, TL 1.123mn one-off income included project expenses and IFRS related adjustments such as non-cash valuation gains from investment properties.

Depreciation and amortization charges, increased from TL 394,4mn in FY 2021 to TL 736.2mn in FY 2022. If the FX rate had remained the same as FY 2021 average, depreciation and amortization expense would have been TL 341.8mn lower.

The Group’s net interest expenses increased from TL 276.5mn TL in FY 2021 to TL 626.8mn in FY 2022. If average FX rate had maintained its FY 2021 level, net interest expense would have been TL 239mn lower than the reported figure in FY 2022.

On a divisional basis:

Naturelgaz maintained its solid financial position and recorded significant growth in FY 2022. Sales volume reached 227.9mn Sm3 in FY 2022, representing an increase of 12% yoy. Citygas sales, whose share in the total sales volume increased gradually in 2021, continued its rapid growth in FY 2022 as well. Citygas sales volume increased by 54% yoy, reaching 70.1mn Sm3. Revenues increased by 441% yoy in FY 2022, reaching TL 3,7 bn, reflecting the increase in sales volume especially in Citygas, Bulk CNG and the increase in gas prices. Gross profit reached TL971.8 mn in FY 2022, representing an increase of 609% yoy, based on company standalone financials. EBITDA increased by 801% yoy in FY 2022, reaching TL 892mn. 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 30.2mn in FY 2021, increased to TL 776.9mn in FY 2022, based on company standalone financials. Naturelgaz’s net cash surplus amounting to 192,6mn TL as of September 30, 2022, increased to TL 335mn net cash surplus as of December 31, 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 in the sector improved to 90-95% during Q4 2022. In the Caribbeans, occupancy rates exceeded 100%. 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 98% in December 2022. Number of calls at GPH`s consolidated ports in Dec 2022 reached 94% of Dec 2019 (prepandemic) levels, while number of passengers visiting GPH`s consolidated ports in Dec 2022 standalone was 20% higher than 2019 levels. The ports of the Canary Islands (Las Palmas, Lanzarote and Fuerteventura) have been included in the calculation starting from Oct 2022, which was one of the main drivers for such increase in passenger numbers. In FY 2022, total consolidated passenger numbers reached 83% of FY 2019; while total consolidated call numbers were %8 higher than FY 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)

In line with increasing occupancy rates and cruise lines having returned to service with full fleet capacity, revenue and EBITDA generation displayed a robust performance, even exceeding pre-covid 2019 levels.

Revenues (excluding IFRIC-12 Construction Revenue) surged by 160% in FY 2022 compared to FY 2019, reaching TL 1.7 bn; while adjusted EBITDA jumped by 141% compared to FY 2019, reaching TL 1.0bn in FY 2022.

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 50% yoy in FY 2022, generating 553mn TL. The division generated 184mn TL EBITDA in FY 2022, indicating a 24% 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 68% stake.

The mining division realized 497,866 tons of product sales volume in 2022, down by 6% yoy, mainly due to the decrease in feldspar demand in export markets driven by the recession in Europe. The Company’s main export markets continued to be Spain, Italy and Egypt. Export related sales volume was 387,278 tons while domestic sales volume was realized at 110,588 tons for the period.

The company announced revenues of 331mn TL in FY 2022, indicating 81% increase YoY. The operating EBITDA was 106,1mn TL in FY 2022, indicating a 65% growth yoy. Diversification of customer portfolio as well as dominancy of hard currency denominated revenues were factors supporting the strong operational performance.

The real estate division registered 38,7mn TL increase in revenues and 20,5mn TL increase in EBITDA in FY 2022 yoy, with revenues and EBITDA standing at 71,4mn TL and 33,9mn TL, respectively. Operational improvement is mainly attributable to the increasing contribution from higher EBITDA generating rental operations. Rental revenues increased by 34,2mn TL with the elimination of pandemic impact, while real estate sales increased by 4.5mn TL.

The brokerage & asset management division revenues stood at 734mn TL in FY 2022, registering a 223% increase yoy, thanks to the contribution from increasing transaction volumes and full consolidation of İstanbul Asset Management, while operating EBITDA was 310.8mn TL registering a 254% increase yoy

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 amount has decreased by half in dollar terms in the last two years. (2020 YE: $103,6mn 2021YE: $55,8mn 2022 YE: $54,8mn)

Holding consolidated net debt stood at 578.1 mn USD (TL 10.8 bn ) at the end of 2022. Meanwhile, excluding GIH, consolidated gross debt of our operational divisions stood at 697.2mn USD, of which 564.7mn USD belongs to our ports division GPH.

Consolidated Net Debt/EBITDA multiplier declined further to 3.8x at 2022 year-end from 4.3x at 30.09.2022 (2021 year-end: 11.6x). However, when Nassau’s long-term debt is excluded, Net Debt / EBITDA multiplier declines to 2.8x at 2022 year-end from 3.2x at 30.09. 2022. When entire ports business is excluded, Net Debt/EBITDA multiplier declines to 0.9x at 2022 year-end.

For further information, please contact:

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