Global Investment Holding Boosts Consolidated Net Profit by 84% in 9 Months
Global Investment Holding (GYH), which operates in various business sectors across four continents and 19 countries, announced its financial results for the first nine months of 2024, during which inflation accounting was applied. In the first nine months of the year, the company's consolidated revenues increased by 4%, reaching 12.5 billion TL compared to the same period last year, while net profit rose by 84% to 1.1 billion TL. The Holding's EBITDA for the same period increased by 13% to 5.2 billion TL.
Mehmet Kutman, Chairman and CEO of Global Investment Holding, stated that they aim to maintain their successful performance in the last quarter of the year: "In such an environment, we focused on areas where we could make an impact as Global Investment Holding and continued our mission to create value for all our stakeholders. Despite inflationary pressures and challenging market conditions in the third quarter, our resilient and strategically diversified structure continued to support our operational profitability."
Ferdağ Ildır, Group Financial Officer, commented, "We have completed a challenging quarter dominated by macroeconomic difficulties and geopolitical uncertainties. Throughout this period, we continued to support our operational profitability with our diversified structure as Global Investment Holding."
Global Investment Holding announced its financial results for the first nine months of 2024. The group's consolidated revenues reached 12.5 billion TL, marking a 4% increase compared to the same period last year, while maintaining stable growth by focusing on areas where it could make an impact under challenging macroeconomic conditions. Its profitability increased significantly due to its strategically diversified structure. The group's EBITDA rose to 5.2 billion TL, a 13% increase, while consolidated profit climbed by 84% to 1.1 billion TL in the first nine months. Within the net profit figure, there are non-cash depreciation expenses of 1.8 million TL and net foreign exchange losses of 118 million TL.
Continuing on the macroeconomic challenges and geopolitical sensitivities, CEO Mehmet Kutman remarked, "We have focused on areas where we could create an impact as Global Investment Holding and continued our mission to create value for all our stakeholders. We aim to sustain this performance into the last quarter of the year."
Regarding the group's companies, Kutman noted that "Consus Energy has won a tender involving approximately 65 MW from natural gas and solar power plants and about 20 MW from energy storage systems for the electricity needs of two islands announced by the Bahamian Government's Ministry of Energy and Transport and Bahamas Power and Light Company. The investment process for the project is expected to be completed in 2026, leading to the commissioning of the plants at full capacity. The electricity produced under the project is planned to be sold at a unit price in USD for 25 years."
Naturelgaz has increased its sales volume through city gas sales, reaching 129 municipalities. Istanbul Portfolio Management also had a good third quarter in 2024, with managed portfolio size rising significantly to over 106 billion TL by September 2024. Additionally, the total portfolio size of the group's portfolio management companies reached approximately 109 billion TL by the end of September 2024, marking a 54% increase compared to the end of 2023.
Ferdağ Ildır mentioned, "We completed a challenging quarter dominated by macroeconomic difficulties and geopolitical uncertainties. During this period, we continued to support our operational profitability with our diversified structure as Global Investment Holding. I am also pleased to share that we executed a dividend payment of 80 million TL in October, as previously committed. With this quarter, the group's consolidated net debt/EBITDA ratio is now at 4.9x, but this drops to 1.5x when excluding all port operations."
In the port operations sector (excluding the impact of IFRIC 12), revenues in the first nine months of 2024 increased by 23% to 6.1 billion TL, while EBITDA rose by 22% to 3.9 billion TL. The average occupancy rate of vessels arriving at Global Ports Holding's (GPH) consolidated ports was 113% in August 2024. The number of vessels arriving at GPH ports in the first nine months of 2024 was 23% higher than in the same period last year, and the number of passengers also increased by 30% during the same period.
Naturelgaz’s sales volume reached 215 million Sm3 in the first nine months of 2024, a 24% increase compared to the same period last year. The natural gas business unit's sales volume grew by 35% to 100 million Sm3 over the same period, reaching 129 municipalities. However, due to inflation accounting and a decrease in natural gas prices, revenues in the first nine months declined by 10% to 3 billion 654 million TL. EBITDA remained stable at 691 million TL year-on-year, while gross profit remained unchanged at 856 million TL. Naturelgaz's pre-tax profit reached 215 million TL, up 139% compared to the same period last year.
The electricity production segment, which includes co/trigeneration and renewable energy production from biomass and solar sources, saw revenues decrease by 18% compared to the same period last year, totaling 982 million TL. This decline was influenced by lower Market Clearing Prices and the application of inflation accounting. The EBITDA for this business unit fell 5% to 292 million TL over the nine-month period of 2024.
The mining segment experienced a 28% decline in sales volume year-on-year, totaling 191,513 tons in the first nine months due to reduced demand in both European and domestic markets. The principal export markets for the mining sector continue to be Spain, Italy, and Egypt, with exports amounting to 147,000 tons. Domestic sales volume was 44,467 tons, and revenues in this segment decreased by 22% to 389 million TL in the first nine months. The EBITDA for mining fell by 19% to 89 million TL for the same periods due to the low sales volume and the narrowing of operating margins relative to higher inflation rates compared to currency exchange rate increases. The growing interest in high-value-added products positively impacted EBITDA performance, significantly offsetting the decrease in sales volume.
In real estate, EBITDA continued to rise. The real estate business unit's revenues decreased by 4% to 158 million TL in the first nine months compared to the same period last year. However, EBITDA increased by 7% to reach 78 million TL.
In the securities and asset management sector, revenues rose by 8% to 1.2 billion TL in the first nine months, driven by increased trading volumes. Meanwhile, EBITDA decreased by 26% year-on-year to remain at 240 million TL.