Galata Wind Enerji (QWIND) Q3 2024 earnings summary

Executive summary

• Revenue decreased 13% year-over-year to TRY 1,682 million for the nine months ended September 2024, despite a 10% increase in total production.

• Net profit rose 32% year-over-year to TRY 605.5 million, mainly due to lower tax expenses and efficiency gains.

• Generated 599,352 MWh of electricity, with 93% from wind and 7% from solar sources.

• No carbon credit sales were realized in 2024, compared to TRY 61.8 million in 2023.

• Distributed a gross dividend of TRY 500.1 million in April 2024.

Financial highlights

• Gross margin fell to 54% from 61% year-over-year; EBITDA margin dropped to 72% from 77%.

• CapEx rose 21% to TRY 1,139 million, driven by ongoing investments.

• Net debt/EBITDA improved to 0.39 from 0.46; net financial debt/equity at 0.06.

• Free cash increased 3% to TRY 632 million as of September 2024.

• Total assets decreased 1% to TRY 12,329 million; equity increased 1% to TRY 9,660 million.

Outlook and guidance

• Ongoing investments include capacity expansions at Mersin and Taşpınar, new licenses, and European SPP projects, targeting 1,086 MW by 2029.

• Ongoing commissioning of hybrid solar capacity at Taşpınar WPP, with further expansion planned in 2024.

• YEKDEM feed-in-tariff support continues for Taşpınar WPP and SPPs, providing price stability for a portion of output.

• Future projects will utilize a mix of FIT, PTF, and new tender/PPA pricing mechanisms.

• Focus on efficiency and longer-term availability through hybrid power plant investments.