Page 31 - TURKRptJun19

Petkim Chemicals 44 1.26 872 -38% 154 17% 8.52 1.8 8.15 1.23 5 8.7% 15.1% 3%
BIM Retailer 60 3.58 1,250 45% 215 -8% 17.59 5.79 11.25 0.71 3 3.6% 6.4% 2%
Eregli Steel 48 4.33 5,598 49% 997 -6% 4.73 0.99 2.48 0.75 -5 19.2% 30.3% -18%
Turkcell Telco 49 4.11 2,021 2% 1,224 145% 9.06 1.47 4.14 1.82 14 12.9% 44.5% -6%
Turkish
Airlines Airliner 50 2.74 4,045 533% -1,253 299% 5.34 0.5 6.69 1.11 58 4.6% 16.8% -26%
TAV Airports 40 1.37 1,455 103% 146 333% 5.3 1.4 3.71 1.64 3 21.9% 44.4% 14%
Source: Seker Invest
Turkey’s top 500 saw 2018 profits wiped out by crisis-triggered financing costs says chamber of industry. Turkey's top 500 industrial companies saw almost all their profits erased by financing costs in 2018 after the eruption of the country’s currency crisis, the Istanbul Chamber of Industry (ISO) said on May 28. Amid and following the economic turmoil caused by the collapse in value of the Turkish lira (TRY), the debt ratio of the ISO's 500 big industrial firms climbed to 67% in 2018, while their own capital ratio fell to 33%, the report said. The resource structure was thus the "most negative" on record, it added. The ISO also observed that for Turkish companies access to financing has become a "chronic problem" over the last few years. No improvement was observed last year, it said. Turkey plunged into a deep recession after the lira crisis. At its nadir, the TRY lost nearly half its value against the USD. When 2018 closed, the weakening stood at 28%, but the currency has lost around another 14% this year to date. The sudden descent of Turkey’s economy, for years fuelled by cheap credit which pushed GDP growth into ‘warp drive’, came as a huge shock to many corporates which are now struggling to service foreign-currency loans while they continue to earn in the severely depreciated lira. "Any negative development in financial stability, extreme turbulence or volatility unfortunately damages our companies even if they protect themselves," Erdal Bahcivan, ISO board chairman, told reporters when asked about weakness in the lira, Reuters reported. He reportedly added that uncertainty related to the controversial rerunning of March’s Istanbul mayoral election—set to take place on June 23—might dash the ISO's hopes that business conditions would improve after July. The ISO represents some 18,000 industrial companies based in Istanbul, Turkey's largest city and business capital. Some of its top 500, however, are based elsewhere.
The first-quarter net income of 300 Turkish companies listed on the Istanbul stock exchange declined by 21% y/y, research by Ziraat Invest shows. The decrease reflects the magnitude of Turkey’s economic slowdown. The combined revenues of the 300 companies on the Borsa Istanbul stood at TRY16bn in the first quarter. There are 510 companies listed on the exchange, but as of May 17 only those surveyed by Ziraat had released Q1 financials.
The best performing industries in Q1 were telecoms, chemicals, mining, defence and food, the research concluded.
Profits of the listed telecoms companies (Turkcell and Turk Telekom) soared 151% on an annual basis to TRY1.5bn, thanks to mobile giant Turkcell’s outstanding performance. The carrier’s profit jumped to TRY1.22bn in the quarter from TRY501mn. The net income of the listed chemicals firms (14 companies) stood at TRY777mn in Q1, marking an 80% y/y increase, while profits of the mining firms (four companies) rose by 186% y/y to TRY483mn. Profits of the listed defence firms (two) showed a 91% y/y increase to TRY618mn and the net income of the food companies (16) jumped 118% y/y to stand at TRY447mn. The combined net income of the 24 holding companies on the Borsa Istanbul rose only 7.6% y/y to TRY3bn in the first quarter. The combined profits of the six largest listed banks stood at TRY6.8bn, down from TRY8.6bn a year ago, while the net income of seven small and medium sized lenders fell by 4.1% y/y to TRY1.38bn. Reflecting the poor local demand conditions of a country in recession, the net income of six listed automakers
31 TURKEY Country Report June 2019 www.intellinews.com