Aksa Enerji Raises EBITDA Margin Above 22%

Aksa Energy Lifts EBITDA Margin Above 22% Level Aksa Energy's contribution from foreign investments in Africa and Central Asia to its earnings before interest, taxes, depreciation and amortization (EBITDA) of TRY 3.02 billion in the first half of the year reached 53 percent, and EBITDA margin exceeded the 22% level. Operating in Turkey, the Turkish Republic of Northern Cyprus (TRNC), Africa and Central Asia across 8 countries with 13 power plant investments and over 2,700 megawatts of installed capacity, Aksa Energy raised its EBITDA margin from 18 percent in the first half of last year to 22.4 percent in the same period this year. Aksa Energy, whose foreign exchange-based revenues from overseas power plant investments contributed 53 percent to EBITDA, recorded net profit of TRY 2.38 billion in the first half of the year, with net profit margin reaching 18.7 percent. During the period in question, Aksa Energy's revenue stood at TRY 13.5 billion, in line with the year-end revenue expectation of TRY 27.7 billion shared with the public. Through strategic steps taken in balance sheet management, the company reduced cost of sales by 33 percent compared to the same period last year, declining from TRY 15.7 billion to TRY 10.5 billion. Aksa Energy managed to maintain its net financial debt-to-EBITDA ratio at 1.59x, a level below sector average, thanks to both the positive impact of strategic investments across different geographies on revenue diversification and profitability, as well as effective balance sheet management capability. [caption id="attachment_155865" align="aligncenter"] Cemil Kazancı[/caption] In the statement, Aksa Energy Chairman and Chief Executive Officer Cemil Kazancı noted that foreign exchange-based revenues from the company's overseas investments are reflected in financials and create a natural hedge mechanism for company revenues. Emphasizing that Aksa Energy is making concrete progress toward its 2030 targets, Kazancı stated, "As Aksa Energy, in line with our 'Sustainable High Growth' strategy, we directly contribute to the energy supply security of the countries in which we operate, providing long-term support to the prosperity and development of these countries, while creating a mutually beneficial win-win ecosystem by increasing the resource diversification of our energy production portfolio." In line with the win-win ecosystem, Kazancı noted that the company obtained preliminary licenses for storage-based wind and solar power plants with total capacity of 561.04 megawatts across 6 cities since the beginning of the year, in order to contribute to Turkey's progress toward its 2053 'zero carbon' target and reduce the country's energy imports, while strengthening Aksa Energy's production portfolio through resource diversification with renewable energy investments.

Recalling that a historic contract was signed between the Cyprus Turkish Electricity Authority (KIB-TEK) and Aksa Energy in July, Kazancı continued as follows;

With the new 15-year US dollar-denominated contract we signed, following feasibility studies, we will turn a long-held dream into reality by establishing an energy bridge between Turkey and the TRNC through submarine electricity cables. Additionally, to provide the fastest solution for uninterrupted energy access for the TRNC population, we will make an additional 35 megawatt capacity investment in our Kalecik Combined Cycle Fuel Power Plant within one year, raising our installed capacity on the island to 188 MW. As Aksa Energy, we are closely following renewable energy and energy transition-focused projects on a global scale and will continue to make steady progress toward the company's medium and long-term strategic targets with new investments. Source