Naturelgaz achieves 6.3 percent volume growth in the first nine months of 2023
Naturelgaz, operating in the transported natural gas market, increased sales volume by 6.3% year-on-year to 173.5 million Sm³ in the first nine months of 2023. The Company reported EBITDA of TRY 364.8 million and invested approximately TRY 230 million during the period.
Naturelgaz, a subsidiary of Global Investment Holdings operating in the transported natural gas market, announced its financial results for the nine months ended September 30, 2023.
City gas sales accounted for the largest share of the customer mix during the period. The Company operates in the bulk gas, city gas and auto CNG businesses. The number of districts and towns served by the city gas business reached 119 at the end of the third quarter of 2023, compared with 84 in the same period of the previous year. Through this business, Naturelgaz supplies natural gas distribution companies with transported natural gas to meet demand in districts and towns that are not connected to the pipeline network. City gas sales volume increased by 67% year-on-year to 74.1 million Sm³ in the first nine months of 2023.
Inflationary market conditions drove increases in costs and operating expenses, particularly logistics and electricity, during the first three quarters of 2023. As a result, gross profit declined by 35% year-on-year to TRY 425.8 million. Higher depreciation expenses associated with investments also constrained profitability. Profit before tax for the first nine months of 2023 was TRY 284.4 million.
“We Continue to Invest in Capacity Expansion and Cost Reduction”
Emphasizing that 2023 was an investment year for the Company, Hasan Tahsin Turan, General Manager of Naturelgaz, said that Naturelgaz was focusing on investments to increase capacity and reduce costs, with approximately TRY 230 million spent during the first three quarters. He added that the Company expected stronger financial performance in the final quarter of the year.
“In our industry, cost increases affect the Company immediately, but we have to absorb them for a period before passing them on to customers. We plan to reduce logistics and electricity expenses by opening industrial CNG facilities, purchasing tractor units and investing in solar power plants. We also aim to improve the efficiency of equipment used at customer sites through investment in a manufacturing facility for pressure reduction equipment,” Turan said.
