Page 50 - GEORptMar20

21.6% y/y, while Georgian lari (GEL) denominated gas pipeline rental revenue was down 7.1% y/y.
Meanwhile, operating expenses increased 14.9% y/y to $130.9mn in the first half of the year. The cost of gas, the largest expense category, which combines gas purchased for resale (85% of cost of gas) and gas used by Gardabani I power plant, grew 19.6% y/y to $114.5mn.
GOGC’s adjusted Ebitda grew by 21.7% y/y to $36.6mn, supported by strong H1 revenues. This translated into an adjusted Ebitda margin of 22.8% in the half, slightly above last year’s level (22.1% in H1 2018).
But the local currency depreciated by 7% y/y against the dollar during the six months, generating a non-cash FX loss of $16.7mn in 1H19, compared to a $11.2mn gain in 1H18.
After upgrading Georgia’s sovereign rating from BB- to BB in October 2019, S&P Ratings lifted GOGC’s rating from B+ to BB-. The decision was backed by GOGC’s strong financial position (sizeable cash balance, stable earnings and steady cash flows from the electricity segment). In addition, S&P Ratings expected the commissioning of Gardabani II in late 2019 to improve the company’s financial position, after a temporary deterioration of credit metrics (high capex, lower cash balance).
9.2.2 ​Transport corporate news
US company Trammo will invest $20mn in Georgia and build a new terminal in the port of Batumi, which will connect the Asian and European markets, Georgia Today announced quoting Archil Talakvadze, Chairman of the Parliament of Georgia.
Talakvadze has met with the executive director and the members of the governing board of the US corporation Trammo in New York.
At the meeting, the Speaker talked about the investment environment, strategic co-operation with the US, standards of protection of property rights and reforms implemented in Georgia.
"Trammo CEO Edward Weiner said the decision was made because of Georgia's geostrategic position, business-friendly environment and stable country governance.
"According to Forbes, Trammo ranks 58th in the list of largest US companies," according to a release of the Parliament of Georgia.
9.2.3 ​Aviation corporate news
Azerbaijani flag carrier AZAL has temporarily ceased its Baku-Beijing flights, the airline said on January 27.
AZAL’s move appeared to be just the latest precaution taken by countries in the South Caucasus looking to avoid the spreading of China’s Coronavirus. A 22-year-old Chinese woman with a “flu-like” condition was, meanwhile quarantined in neighbouring Georgia on January 27. The woman was currently being treated and observed, Georgian officials said, adding that she did not arrive in the country from Wuhan, where the Coronavirus outbreak started, but from another city in China.
Azerbaijan has increased checks at land and air border points due to the threat of the virus.
Also, the Aliyev government has announced a “coronavirus hotline” for those who have travelled to China in the past few weeks.
Meanwhile, deputy director of the Republican Centre for Hygiene and Epidemiology of the Ministry of Health, Afag Aliyeva said: "In Azerbaijan, no
50​ GEORGIA Country Report​ March 2020 ​​www.intellinews.com