Naturelgaz’s EBITDA Reaches TRY 110.7 Million in the First Quarter of 2023
Naturelgaz’s gross profit increased by 50% year-on-year to TRY 121 million. EBITDA rose by 76% compared with the first quarter of 2022 to TRY 110.7 million.
Naturelgaz, a subsidiary of Global Investment Holdings operating in the transported natural gas market, announced its financial results for the first quarter of 2023.
Revenue increased by 85% year-on-year to TRY 855.4 million, while total sales volume rose by 10% to 75 million Sm³. Profit before tax increased by 113% compared with the first quarter of 2022 to TRY 88.9 million.
City gas sales accounted for the largest share of the Company’s customer mix during the first quarter. Naturelgaz operates in the bulk gas, city gas and auto CNG businesses.
Through its city gas 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. Sales volume in this business increased by 46% year-on-year to 51.2 million Sm³ during the period.
Gross profit increased by 50% year-on-year to TRY 121 million in the first quarter of 2023. EBITDA reached TRY 110.7 million, an increase of TRY 47.7 million compared with the same period of 2022.
The growth in gross profit and EBITDA was driven by higher sales volumes, increased city gas sales and a significant reduction in seasonality, enabling more effective cost management.
We Are Making Capacity-Enhancing and Cost-Reducing Investments
Evaluating Company’s financial and operational performance in the first quarter of 2023, Hasan Tahsin Turan, General Manager of Naturelgaz, said:
“First, I would like to extend my condolences to the families of those who lost their lives in the earthquake disaster in our country. As a company with facilities and operations in the affected region, we have done our best to contribute to the recovery.”
Turan continued: “Despite the difficulties caused by the natural disaster, the exceptional efforts of our employees enabled us to finish the first quarter as strongly as possible. We maintained the strong financial performance achieved in 2022 into the first quarter of 2023.”
Noting that the relative contribution of different business lines to the customer mix varies by quarter, Turan said:
“Comparing our performance with the same quarter of the previous year provides the most meaningful assessment. The first quarter is a period in which the city gas business accounts for a particularly large share of activity. As in the previous year, margins in this quarter are lower than in other quarters.
“We delivered substantial growth, generating EBITDA of TRY 110.7 million in the first quarter of 2023. Our first-quarter financial and operational results exceeded our targets for growth over the same period last year. We will continue to strengthen our leading position in the transported natural gas market and diversify our operations.”
Turan added that the Company would make investments to increase capacity and reduce costs in 2023: “We aim to expand capacity by purchasing new cylinders and opening industrial CNG facilities, while reducing logistics and electricity costs through purchases of tractor units and investments in solar power plants.”
