Galata Wind Enerji (QWIND) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 decreased by 9% year-over-year to TRY 977 million, while net profit rose 45% to TRY 416.5 million, driven by lower tax expenses, monetary gains, and strong wind and solar generation.

• EBITDA declined 14% to TRY 714 million, and gross profit fell 18% to TRY 524 million, reflecting higher depreciation and absence of carbon credit sales.

• The company operates three wind and two solar power plants with a total installed capacity of 297.2 MW, generating 390,260 MWh in H1 2024.

• A major dividend of TRY 437 million (indexed TRY 459.1 million) was approved, to be distributed by August 29, 2024.

• Significant CapEx of TRY 928 million focused on capacity expansion projects, including Taşpınar Hybrid and Mersin.

Financial highlights

• Gross margin was 54% and EBITDA margin 73% for H1 2024, both slightly lower year-over-year.

• Free cash flow dropped 56% to TRY 271 million as of June 2024.

• Net financial debt/equity improved to 0.05, and net debt/EBITDA to 0.29.

• Cash and cash equivalents rose 289% to TRY 320 million, while financial investments fell 87%.

• Operating profit reached TRY 485.7 million, down from TRY 951.1 million in H1 2023, reflecting lower other operating income.

Outlook and guidance

• Ongoing investments will increase installed capacity from 297 MW to 1,086 MW by 2029, including European SPP projects and storage.

• The company is expanding hybrid solar capacity at Taşpınar WPP, with additional capacity to be commissioned in 2024.

• International expansion is underway via the Netherlands-based subsidiary, which recently acquired two energy companies.

• New projects are expected to benefit from FIT, PTF, or new tender/PPA pricing mechanisms.