Global Yatırım (IS: GLYHO) Holding (Global Investments Holding) (GYH), which operates in 4 continents and 13 countries with its investments in various business lines, announced its financial results for the first three months of 2022. The improvement in the performance of Global Yatırım Holding gained rapid momentum in the first quarter of 2022 in parallel with the disappearing effect of Covid-19 and the strengthening of the activities of the business lines. In the first quarter, excluding the effect of IFRIC 12 compared to the same period of the previous year, the Group recorded a consolidated income of 901.8 million TL, an increase of 194 percent. With the strong contribution of all business lines, the gas business made the largest contribution to the consolidated revenue, which increased almost threefold. Global Yatırım Holdings consolidated operating profit before interest tax and amortization (EBITDA) increased by 283% and reached 176.4 million TL in the same period. The strongest contribution to consolidated EBITDA came from the ports business.
Net profit is announced for the first quarter of 2022
On the other hand, Global Yatırım Holding recorded a consolidated net profit of 76.8 million TL in the first quarter of 2022, against a net loss of 184.7 million TL in the first quarter of 2021. Within the profit figure in question, there was a total of 166.4 million TL of non-cash income/expenses, 172.4 million TL of which was depreciation expense, and 6 million TL of foreign exchange income. Meanwhile, the one-time income (expense) amounting to 105.1 million TL consists of project expenses and valuation income without cash impact.
Depreciation expenses increased from 89.3 million TL in 1Q 2021 to 172.4 million TL in 1Q 2022 due to the depreciation of the Turkish lira against other currencies. Had the average exchange rate remained the same, depreciation and amortization expenses would have been announced lower by 81.1 million TL.
The Group’s net interest expense decreased from 78.4 million TL in 1Q 2021 to 44.6 million TL in 1Q 2022. The decrease in consolidated indebtedness was effective in this recovery in net interest expense. Had the average exchange rate maintained its level in 1Q 2021, net interest expense would have been about 22.3 million TL less in 1Q 2022.
Consolidated net debt fell to 545 million USD
Consolidated net debt decreased from 556.6 million USD (7.223 million TL) at the end of 2021 to 544.8 million USD (7.979 million TL) on March 31st, 2022.
Global Yatırım Holding aimed to continue to reduce its indebtedness rapidly for 2021 and made good progress towards this target. As a group, we achieved a total gross cash inflow of 519.8 million TL. Global Yatırım Holding, while generating a gross income of 283.5 million TL from the public offering of Consus Enerji, its subsidiary operating in the field of renewable energy and distributed energy, in April 2022 (total income of the Group from the public offering is 519.8 million TL), at the holding level, this income will mainly be used for the redemption of debts. This is expected to be effective in reducing indebtedness in the coming periods.
‘The number of ships arriving at GPH ports exceeded the pre-pandemic period’
Stating that he is happy for making a good start to 2022 after the negative effects of the pandemic, Mehmet Kutman, Global Yatırım Holding’s Chairman and CEO, said, “In the first quarter of 2022, all our business lines showed superior performance and underlined the transition to normalization. Fortunately, today, the global cruise industry continues to operate as normal, and the cruise business continues to move forward thanks to the resumption of strict protocols and delayed demand. In the past two months, global cruise demand has significantly exceeded both pre-Omicron and 2019 levels. As of now, major cruise companies are returning to service with 95 percent of their fleets, while they plan to return their fleets to sail 100 percent for the upcoming peak summer season. The occupancy rate affected by the Omicron variant in January and February remained at 65-70 percent in the first quarter, improving positively for the remainder of the quarter. Major cruise companies expect their ship occupancy rates to rise to an average of 75-80 percent in the second quarter and reach triple digits by the end of the year.”
Stating that the number of ships arriving at Global Ports Holding’s (GPH) ports in March 2022 was 14 percent higher than March 2019 levels, Kutman said, “The number of passengers visiting GPH ports in March 2022 reached 62 percent of March 2019 levels (This rate was 35 percent in January 2022 and 47 percent in February 2022). GPH’s indicators for Caribbean ports, Nassau, and Antigua (peak season) show that March 2022 figures have reached or even surpassed March 2019 figures. We continue our strategic expansion in ports, and we have further strengthened our presence in the Mediterranean by including Tarragona Cruise Port in Spain and Crotone Cruise Port in Italy in our network. Tarragona is a 12-year concession with an option for a 6-year extension, while Crotone is a 4-year renewable concession.”
‘Consus’ public offering is an important step in our strategy’
Kutman continued his words as follows: “I am proud to say that Consus Enerji, our electricity generation subsidiary operating in the field of renewable and dispersible energy, completed the public offering process in April 2022, which was an important milestone in its history. I also welcome our new shareholders who share our vision. I would like to express my sincere thanks to all my colleagues who worked hard to make this successful transaction happen. As a listed company, we confidently await the next phase of our development. Also, I would like to add that the public offer of Consus is one of the most important steps according to the Group strategy determined in 2020. In this direction, our ultimate goal is to open all our companies operating under Global Yatırım Holding to the public, ensure profitability, distribute dividends to our shareholders, and adopt and promote the best transparency practices and corporate governance principles throughout the group.”
‘Continues to aim to reduce the effective debt burden’
Ferdağ Ildır, Group Director of GYH Financial Affairs and Finance, said, “Our group is taking firm and effective steps to manage its long and short-term debt obligations to stabilize its liquidity position. Our company continues its target of reducing the effective debt burden, a process that we started in 2021. The sale of our commercial port in Antalya, the listing of Naturelgaz on Borsa Istanbul, and the capital increase process of GYH, almost acquitted the holding’s solo debt in 2021. Our goal of reducing indebtedness in 2022 continues. In the public offering of Consus Enerji, we provided a gross cash inflow of 519.8 million TL as a Group, of which 236.3 million TL was at the level of Consus Enerji and 283.5 million TL was at the level of Global Yatırım Holding. While these resources are used to reduce new investments and indebtedness at the Consus level, they will be used mainly for debt redemption on the Holding side. We expect this to be effective in reducing indebtedness in the coming periods.”
Naturelgaz reached 60 percent of its 2021 gross profit in 3 months
Operating in the transported natural gas market, Naturelgaz maintained its solid financial position in the first quarter of 2022 thanks to its operational capability and increased operations in the city gas business. The company’s sales volume reached 67.9 million Sm3 in the first quarter of 2022, with an annual increase of 41 percent. City gas sales, whose share in the total sales volume increased gradually in 2021, continued their rapid growth in the first quarter of the year. City gas sales volume increased by 84 percent compared to the same period of the previous year and reached 35.1 million Sm3. As of 31.03.2022, Naturelgaz maintained its net cash position and its net cash surplus amounted to 58.1 million TL. In addition, at the General Assembly held on April 28, 2022, it was approved to distribute a 35.8 million TL gross dividend to the shareholders. Revenues, especially for city gas, increased by 267 percent compared to the same period of the previous year and reached 458 million TL in the first quarter of 2022, reflecting the increase in bulk CNG sales volume and the increase in gas prices. In the first quarter of 2022, the gross profit was 80.5 million TL based on solo financials. Thus, the Company realized about 60 percent of its 2021 gross profit in the first quarter of 2022. In the first quarter of 2022, the company’s EBITDA increased by 189% compared to the same period of the previous year and reached 63.9 million TL. Profit before tax, which was 0.3 million TL in solo financials in the first quarter of 2021, increased to 41.8 million TL in the first quarter of 2022.
The number of passengers in the port business line reached 867 thousand
The rapid recovery in the cruise sector continues. Most cruise companies are planning to return 100% of their fleet to voyage in the summer of 2022, that is, during the Mediterranean high season. In March 2022, the number of ships at GPH ports was 14 percent higher than March 2019 (pre-pandemic) levels, while the number of passengers visiting GPH ports reached 62 percent of March 2019 levels in March 2022 (This rate was 35 percent in January 2022 and 47 percent in February 2022). GPH’s indicators for Caribbean ports, Nassau, and Antigua (peak season) show March 2022 figures reaching or even surpassing March 2019 figures. In March 2022, the number of ships in Nassau was 20 percent above March 2019 levels, while passenger numbers reached 72 percent of March 2019 levels. Similarly, in March 2022, the number of ships in Antigua was 19 percent above March 2019 levels, and the number of passengers reached 56 percent of March 2019 levels. Cumulatively, in 1Q 2022, the total number of consolidated ships reached March 2019 figures, while the total number of consolidated passengers reached 48 percent of March 2019 levels. Thus, the number of passengers, which was 10 thousand in the first quarter of 2021, increased to 867 thousand in the first quarter of 2022, while the number of ships increased from 12 in the first quarter of 2021 to 632 in the first quarter of 2022. Port Management’s business line generated 170.5 million TL in revenue (excluding the IFRIC 12 impact) in the first quarter of 2022, an increase of 489% compared to the same period of the previous year. When only cruise revenues are considered, in the first quarter of 2022, cruise revenues increased about 9 times compared to the same period of the previous year.
Operational consolidated adjusted EBITDA stood out as 51.2 million TL in the first quarter of 2022. This figure was -20.1 million TL in the first quarter of 2021.
Positive EBITDA production gained strong momentum in the first quarter of 2022 in parallel with the decreasing effect of Covid due to the gradual removal of travel restrictions and the increase in the number of cruise ships returning to the voyage.
Revenues in electricity generation increased by 65 percent annually
In the energy generation business line, which includes co/tri-generation and biomass and solar-based clean energy production, a revenue of 126.1 million TL was achieved in the first quarter of 2022. This revenue represents an annual increase of 65 percent. With the rise in electricity prices and the exchange rate, EBITDA increased by 46 percent annually to 37.7 million TL in 1Q 2022. Consus Enerji completed the public offering process in April 2022, recording an important milestone in its history. Consus shares started to be traded on Borsa Istanbul on April 20, 2022, with a 30% free-float rate. Consus Enerji earned about 236 million TL from the public offering. Consus Enerji will use half of the revenue as new investments and working capital, and the other half to reduce indebtedness. After the public offering, GYH continues to be Consus Enerji’s largest shareholder with 70% of its shares.
Exports in the mine increased annual revenue by 136 percent
Due to the strong demand for feldspar, especially from export markets, the mining business line achieved a product sales volume of 124 thousand 187 tons in the first quarter of 2022, with an annual increase of 25 percent. The company’s main export markets continued to be Spain, Italy, and Egypt. During the period, the export-oriented sales volume was 104 thousand 549 tons, and the domestic sales volume was 19 thousand 638 tons. The mining division announced 68.6 million TL revenue in the first quarter of 2022, showing an annual increase of 136 percent. On the other hand, EBITDA stood at 22.6 million TL in the first quarter of 2022, indicating a strong annual growth of 101 percent. Strong demand-driven volume growth in export markets and the dominance of FX-based revenues were the factors supporting the improvement in profitability throughout the period.
Rental income increased by 7.3 million TL
The real estate business line recorded an increase of 9.3 million TL in revenues and 6 million TL in EBITDA in the first quarter of 2022, while revenues and EBITDA stood at 14.6 million TL and 6.4 million TL, respectively. The operational improvement is mainly attributable to the increased contribution of lease operations generating high EBITDA. With the end of the pandemic effect, rental incomes increased by 7.3 million TL based on solo financials, while real estate sales increased by 2 million TL.
Securities and asset management revenues up 50 percent
Securities and asset management business revenues totaled 63.1 million TL in the first quarter of 2022, up 50 percent annually, with an operational EBITDA of 18.1 million TL compared to 21.3 million TL in the first quarter of 2021. The decrease in EBITDA was largely due to the decrease in brokerage trading volumes.