Galata Wind Enerji (QWIND) Q4 2023 earnings summary

Executive summary

• FY23 financial data is presented on a purchasing-power basis as of 31 Dec 2023; revenue declined 19% and net profit 57% YoY.

• Operating generation fell 10% YoY, while actual electricity prices declined 6% on a USD basis; 2023 investments advanced hybrid solar and capacity expansion projects.

• Installed portfolio capacity totaled 290.2 MW, with planned projects taking the stated pipeline to 576 MW.

Financial highlights

• Revenue was TL 1,859 mn in 2023, down 19% YoY; gross profit fell 33% to TL 1,106 mn as cost of sales increased ~15%.

• EBITDA was TL 1,405 mn, down 28%; net profit was TL 623.6 mn, down 57%, and EPS was TL 1.1547 versus TL 2.7123.

• Operating profit before finance expense declined 23% to TL 1,473 mn; net finance expense rose 56% to TL 467.6 mn.

• Total assets increased 5% to TL 9,160 mn and equity increased 1% to TL 7,033 mn; capex rose to TL 1,316 mn from TL 122 mn.

Outlook and guidance

• Planned capacity rises from 290 MW presently to 362 MW in 2024 and 576 MW in 2025, including Taşpınar hybrid PV, wind capacity additions and a European SPP project.

• Taşpınar hybrid PV phases of 7 MW and 25 MW were scheduled for completion by end-Q2 and end-Q4 2024; Mersin’s 39 MW capacity extension was scheduled for 2024-end.

• Alapınar WPP’s 13.6 MW project was scheduled for 2025; the first 200 MW phase of the European SPP investment was targeted for end-2025.

• Project pricing plans include existing FIT terms of $94/MWh followed by $73/MWh, while other projects were associated with PTF, a new FIT or PTF, or tender/PPA pricing.