Enerjisa Enerji (ENJSA) Q3 2024 earnings summary

Executive summary

• Achieved strong operational performance across all segments despite a challenging macroeconomic environment, remaining on track for full-year 2024 guidance.

• Revenue for the nine months ended 30 September 2024 was TL 133.0 billion, down 26% year-over-year, with gross profit at TL 29.3 billion, a slight increase from TL 28.2 billion in the prior year.

• The period ended with a net loss of TL 4.2 billion, compared to a net profit of TL 7.3 billion in the same period last year, mainly due to higher finance expenses and deferred tax charges.

• Unique positioning in the Turkish market with robust business model and exposure to energy transition investments.

• The company operates in electricity distribution, retail, and customer solutions, with all segments contributing to revenue and profit, but retail and distribution remain the largest.

Financial highlights

• Operational Earnings rose 1% year-over-year to TL 29.9bn, outpacing inflation.

• Underlying Net Income declined 36% year-over-year to TL 3.1bn, mainly due to higher financial expenses and inflation accounting.

• Investments increased 3% year-over-year to TL 9.1bn, with the majority allocated to the Distribution segment.

• Free Cash Flow after interest and tax was TL -5.0bn, reflecting increased investments and tariff mismatches.

• Operating profit for the nine months was TL 20.3 billion, up from TL 16.6 billion year-over-year.

Outlook and guidance

• Full-year 2024 targets: Operational Earnings TL 40-45bn, Underlying Net Income TL 3.5-4.5bn, Investments TL 15-17bn, Regulated Asset Base TL 55-60bn.

• Dividend payout ratio targeted at a minimum of 80% of Underlying Net Income.

• Lower interest rate environment expected to benefit future net income and support sustainable dividend growth.

• The company continues to focus on regulated infrastructure investments and expects ongoing support from regulatory mechanisms, especially in disaster-affected regions.

• New bond issuance and loan agreements post-period-end are aimed at reinforcing financial flexibility and supporting infrastructure in earthquake-affected areas.