Tekfen reports second quarter profit

Tekfen Holding announced a net profit of TL 496 million in the second quarter of 2023. The expectation was for a net profit of TL 518 million. Tekfen Holding announced its financial results for the second quarter of 2023. The company's net profit was realized as TL 495 million, slightly below the market's net profit expectation of TL 518 million. The company had announced a loss of TL 359 million in the previous quarter. Tekfen Holding's consolidated net sales increased from TL 7.7 billion in the same quarter of the previous year to TL 8.8 billion in the second quarter of this year. Of the TL 9.25 billion in sales revenue in the second quarter, TL 5.0 billion came from agricultural industry and TL 3.75 billion from engineering and contracting services. The company's EBITDA was TL 808 million in the second quarter. The expectation on the EBITDA side was TL 901 million. The holding's consolidated EBITDA margin was 9.2 percent. In the second quarter of 2023, total domestic conventional fertilizer sales increased by 1 percent, similar to the same period of the previous year. As a result of the decline in fertilizer prices, fierce price competition occurred in the domestic market with increasing demand. In April, an update was made regarding the export ban and permission was granted for exports of 10 percent to 50 percent of the capacity depending on the product type until the end of August. However, uncertainty continues for the period after August. Libya receivables contributed 19 million dollars On the engineering side, the Libya receivables that became definite after the arbitration decision contributed approximately 19 million dollars to the profitability of the period, while approximately 10 million dollars of the Baku Olympic Stadium project receivables were collected after the period. It was announced that the backlog (remaining work amount) amount is expected to be around 1.1 - 1.2 billion dollars by the end of 2023, based on the ongoing tenders of the Holding and the new tender invitations received. The Holding also announced its expectations for 2023. Tekfen Holding targets a total sales revenue of TL 36.38 billion, of which TL 20.5 billion will come from agricultural industry, TL 15.6 billion from engineering and contracting, and TL 233 million from investments. The holding's target for 2023 is to reach TL 3 billion in EBITDA and TL 1.44 billion in net profit.