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Development Bank (BSTDB) are contributing to a financial package worth $350mn for three new units at the EFELER geothermal power plant in western Turkey. Gurmat Elektrik, a renewable energy subsidiary of Guris Holding, is to deploy the finance for the expansion at EFELER that will tap into locally available geothermal resources, the EBRD said in a statement. Of the three new units, EFE-6 with 22.6 MW of capacity and EFE-7 with 25 MW are already operational. EFE-8 with a capacity of 50 MW is still under construction. When fully completed next year, the plant’s eight units will have a total installed capacity of 260 MW. Under the financing package, Gurmat Elektrik will receive a $100mn loan from the AIIB, a $60mn loan from the EBRD and a $20mn loan from the BSTDB. Turkey’s largest commercial lender Isbank is providing a $90mn loan, and the Industrial Development Bank of Turkey (TSKB) and ICBC Turkey are making loans of $50mn and $30mn, respectively. The financing is part of Turkey’s effort to develop local renewable energy sources and encourage private sector investment in the energy sector.
9.2.8 Other sector corporate news
● Arcelik
Higher tax takes toll on Turkish white goods maker Arcelik but net profit up 52%. Turkish consumer goods manufacturer Arcelik’s net profit grew by 52% y/y to TRY219mn (€35mn) in Q2 while revenues rose by 29% y/y to TRY8.43bn, the company said on July 29 in a stock exchange filing. The Q2 profit was below the market’s average expectation of TRY252mn and Seker Invest’s estimate of TRY243mn. The gap was attributable to a higher than expected effective tax rate of 23% in Q2 compared to 13.3% in Q1, Fulin Onder of the Istanbul-based brokerage said in a research note. In H1, revenues grew by 30% y/y to TRY15.3bn while net profit rose by 39% y/y to TRY444mn. Arcelik has updated its domestic white goods market contraction forecast for 2019 to 15% y/y from the previous 5% y/y while it has kept its 2% y/y growth estimate for the global market. The company also cut its revenue growth estimate to 20-25% y/y for 2019 from the previous 25-30% y/y. The Ebitda margin was also revised down to around 10.5% from 11.5%. Arcelik’s Beko is the leading home appliances brand in Europe, the UK, France and Poland while the company is also the leading appliances company in Romania, South Africa and Pakistan. The company has a 50% share on the domestic market. Arcelik did not distribute any dividends from its 2018 profit of TRY856mn.
● Others
Kordsa Inc., a 100%-owned subsidiary of Turkey’s Kordsa Teknik Tekstil, has completed the acquisition of a 95.86% stake in US-based Axiom
72 TURKEY Country Report August 2019 www.intellinews.com