EUR denominated foreign currency loans decreased from EUR 22.6 million to EUR 19.1 million with the repayment of EUR 3.4 million, while liabilities increased by TRY 1,135 million due to USD 42M loan we utilized. Deferred tax liabilities increased by 257 million, while other short term liablities decreased by TRY 186 million, resulting in an increase in total liabilities by TRY 1,282 million.

Long Term Liabilities:

In non-current liabilities, there is a deferred tax liability of TRY 1.8 billion due to temporary differences calculated in accordance with TAS 29.

Gross Profit:

Galata Wind’s consolidated revenues decreased by 12% y-o-y to TRY 2,364 million in 2024. Despite %11 increase in total production and 2% increase in MCP, our revenues were 12% below last year due to indexation rate of 44%. In addition, in 2023, revenues from carbon credit sales amounted to TRY 57.4 million, while no carbon credit sales were realized in 2024 due to lack of favorable prices.

Cost of sales increased by 3% to TRY 1,123 million in 2024 compared to 2023. The main reason for the increase in cost of sales is the depreciation expenses amounting to TRY 613.38 million (2023: TRY 557.55 million) due to the commissioning of Phase 1 of our Taşpınar Hybrid power plant in the second quarter of 2024. In line with the 12% decline in sales revenues, gross profit decreased by 22% to TRY 1,241.27 million compared to the same period last year. Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased by 19% to TRY 1,635.81 million (2023: TRY 2,028.54 million).

Other Operating Income & Expenses:

Compared to the previous year, there has been a decrease in our deposits as a result of the investments made being covered from shareholders’ equity. Compared to the same period last year, interest income was lower, primarily due to the lower average TRY deposits during the period ( 2024: TRY 107.8 million and 2023: TRY 227.3 million). Despite the continued depreciation of the Turkish Lira against the USD and EUR in 2024, foreign exchange gains decreased by TRY 399 million due to the lower average monthly foreign currency deposits compared to the same period last year (2024: TRY 24.5 million and 2023: TRY 423 million). Other operating net income decreased by 83% to TRY110.81 million (2024: TRY30 million and 2023: TRY3.2 million) as other operating expenses increased by TRY26.8 million (2024: TRY30 million and 2023: TRY3.2 million).

Finance Expenses:

The main reason for the TRY 752.38 million increase in our financial income is the TRY 435.1 million increase in our monetary position gain compared to last year (2024: TRY 275.3 million and 2023: TRY -159.7 million). The primary reason for this increase is that in 2023, our monetary assets were higher than our liabilities. However, due to payments made for investments, particularly in the last quarter of 2023, our monetary assets decreased, resulting in monetary gains in 2024. In 2023, EUR/TRY exchange rate increased more compared to the same period of this year, and the foreign exchange loss on loans decreased to TRY 132.1 million (2023: TRY 552.9 million) due to the lower loan principal balance in this period.

Net Profit:

Galata Wind’s profit before tax in 2024 amounted to TRY 1,203.05 million (2023: TRY 1,451.09 million). In 2024, total tax expense and deferred tax expense TRY 182 million lower compared to previous year and net profit for the period decreased by 7% to TRY 834.4 million.