Interim / Quarterly Report • Nov 8, 2024
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
(Convenience translation of a report and financial statements originally issued in Turkish)
Condensed consolidated financial statements for the interim period ended 1 January - 30 September 2024
| TABLE OF CONTENTS | PAGE | |
|---|---|---|
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1-2 | |
| CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS | 3 | |
| CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME | 4 | |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 5 | |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | 6 | |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 7-36 | |
| NOTE 1 | ORGANISATION OF GROUP AND NATURE OF OPERATIONS | 7 |
| NOTE 2 | BASIS OF PRESENTATION OF FINANCIAL STATEMENTS | 8-13 |
| NOTE 3 | BORROWINGS 14-16 | |
| NOTE 4 | PROPERTY, PLANT AND EQUIPMENT 17-19 | |
| NOTE 5 | INTANGIBLE ASSETS | 19 |
| NOTE 6 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 20-22 | |
| NOTE 7 | DERIVATIVE FINANCIAL INSTRUMENTS | 23 |
| NOTE 8 | EQUITY 23-24 | |
| NOTE 9 | TAX ASSETS AND LIABILITIES 25-26 | |
| NOT 10 | REVENUE AND COST OF SALES | 27 |
| NOT 11 | EXPENSES BY NATURE | 28 |
| NOT 12 | OTHER OPERATING INCOME AND EXPENSE | 29 |
| NOT 13 | OTHER INCOME AND EXPENSE FROM INVESTING ACTIVITIES | 30 |
| NOT 14 | FINANCIAL INCOME AND EXPENSE | 30 |
| NOT 15 | RELATED PARTY DISCLOSURES 31-33 | |
| NOT 16 | FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 33-35 | |
| NOT 17 | FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS | 36 |
| NOT 18 | SUBSEQUENT EVENTS | 36 |
(Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| Current period | Prior period | ||
|---|---|---|---|
| Unaudited | Audited | ||
| Notes | 30 September 2024 | 31 December 2023 | |
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2.093.299.485 | 1.590.095.067 | |
| Financial investments | - | 176.754.883 | |
| Derivative instruments | 7 | - | 4.703.103 |
| Trade receivables | |||
| - Due from related parties | 15 | 9.460.658 | 170.477.527 |
| - Due from third parties | 821.652.765 | 938.868.414 | |
| Other receivables | |||
| - Due from third parties | 186.146.180 | 20.836.710 | |
| Inventories | 93.416.895 | 175.770.231 | |
| Prepaid expenses | 77.602.519 | 206.354.110 | |
| Current income tax assets | 9 | 7.113.324 | 4.385.274 |
| Other current assets | 69.109.205 | 144.956.615 | |
| Total current assets | 3.357.801.031 | 3.433.201.934 | |
| Non - current assets | |||
| Other receivables | |||
| - Due from third parties | 27.966.274 | 32.480.580 | |
| Financial investments | 931.601 | 1.019.556 | |
| Inventories | 43.844.747 | 55.265.027 | |
| Property, plant and equipment | 4 | 37.053.629.612 | 38.370.341.012 |
| Right of use assets | 323.053.913 | 288.684.233 | |
| Intangible assets | 5 | 563.461.758 | 560.784.019 |
| Prepaid expenses | 2.880.993 | 342.847.776 | |
| Deferred tax assets | 9 | - | 14.354.608 |
| Other non-current assests | 338.084.123 | 307.946.787 | |
| Total non - current assets | 38.353.853.021 | 39.973.723.598 | |
| TOTAL ASSETS | 41.711.654.052 | 43.406.925.532 |
(Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| Unaudited Audited Notes 30 September 2024 31 December 2023 LIABILITIES Current liabilities Short term borrowings 3 280.722.575 - Short term portion of long-term borrowings - Bank loans 3 1.466.650.717 9.173.083.873 - Lease payables 3 61.990.432 69.143.187 Trade payables - Due to related parties 15 40.895.302 242.850.531 - Due to third parties 1.237.120.572 1.121.406.368 Employee benefit obligations 10.823.005 16.033.020 Other payables - Other payables to third parties 236.143.853 341.433.219 Derivative instruments 7 31.246.287 51.570.477 Current income tax liabilities 9 - 979.412 Deferred income 107.979.183 77.730 Short term provisions - Provisions for employee benefits 34.348.986 40.467.460 - Other short-term provisions 6 79.165.628 115.420.856 Total current liabilities 3.587.086.540 11.172.466.133 Non-current liabilities Long term borrowings - Bank loans 3 16.189.315.880 11.875.775.152 -Lease payables 3 263.816.760 330.334.790 Other payables - Due to third parties 669.666.284 725.619.309 Long term provisions -Provisions for employee benefits 52.138.760 46.305.804 Deferred tax liabilities 9 1.247.340.635 533.214.777 Total non-current liabilities 18.422.278.319 13.511.249.832 EQUITY Share capital 8 729.164.000 729.164.000 Adjustments to share capital 8 11.532.694.825 11.532.694.825 Share premiums 1.102.512.329 1.102.512.329 Other comprehensive income/(expense) not to be reclassified to profit/loss Gains/losses on revaluation and remeasurement - Increase on revaluation of property, plant and equipment 2.807.102.746 2.907.711.979 - Losses on re-measurement of defined benefit plans (51.416.925) (43.999.810) Restricted reserves - Legal reserves 8 238.607.857 238.607.857 - Other reserves (15.892.945) (15.892.945) Accumulated income/(losses) 2.373.020.565 (4.574.757.423) Net income for the period 986.496.741 6.847.168.755 Total equity 19.702.289.193 18.723.209.567 TOTAL LIABILITIES AND EQUITY 41.711.654.052 43.406.925.532 |
Current Period | Prior Period | |
|---|---|---|---|
(Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| Current period | Prior period | ||||
|---|---|---|---|---|---|
| Unaudited | Unaudited | ||||
| 1 January - | 1 January - | 1 July - | 1 July - | ||
| Notes | 30 September 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 | |
| Revenue | 10 | 18.103.438.288 | 26.019.083.923 | 7.175.151.202 | 7.890.085.050 |
| Cost of sales (-) | 10 | (17.841.827.753) | (24.294.065.275) | (6.899.998.464) | (7.351.899.879) |
| Gross profit | 261.610.535 | 1.725.018.648 | 275.152.738 | 538.185.171 | |
| General administrative expenses (-) | (475.167.301) | (426.097.691) | (163.304.965) | (147.682.296) | |
| Other operating income | 12 | 334.911.731 | 681.965.906 | 116.036.796 | 151.761.795 |
| Other operating expenses (-) | 12 | (230.328.635) | (423.229.081) | (57.269.076) | (114.547.395) |
| Operating profit/(loss) | (108.973.670) | 1.557.657.782 | 170.615.493 | 427.717.275 | |
| Income from investment activities | 13 | 3.099.720 | 61.297.781 | (169.852) | 45.449.645 |
| Expenses from investment | |||||
| activities | 13 | (20.753.261) | (1.804.723) | (20.753.199) | (70.629) |
| Operating profit/(loss) before | |||||
| financial income/(expense) | (126.627.211) | 1.617.150.840 | 149.692.442 | 473.096.291 | |
| Financial income | 14 | 326.215.487 | 922.301.130 | 55.246.358 | 159.099.981 |
| Financial expense (-) | 14 | (3.819.677.676) | (8.863.875.190) | (1.046.518.785) | (1.675.325.847) |
| Monetary gain | 5.323.180.516 | 8.703.424.820 | 1.463.206.306 | 5.122.881.019 | |
| Profit before tax | 1.703.091.116 | 2.379.001.600 | 621.626.321 | 4.079.751.444 | |
| Tax income/(expense) | |||||
| Current income tax expense (-) | 9 | - | (32.308.347) | 23.788 | (414.629) |
| Deferred tax income | 9 | (716.594.375) | (1.111.897.613) | (341.652.252) | (1.194.164.189) |
| Net income for the period | 986.496.741 | 1.234.795.640 | 279.997.857 | 2.885.172.626 | |
| Distribution of income/(loss) | |||||
| for the period: | |||||
| Equity holders of the parent | 986.496.741 | 1.234.795.640 | 279.997.857 | 2.885.172.626 | |
| 986.496.741 | 1.234.795.640 | 279.997.857 | 2.885.172.626 | ||
| Earnings profit per share (1.000 shares) |
1,353 | 1,693 | 0,384 | 3,957 |
(Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| Current period | Prior period | |||
|---|---|---|---|---|
| Unaudited | Unaudited | |||
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
| Net income for the period | 986.496.741 | 1.234.795.640 | 279.997.857 | 2.885.172.626 |
| Other comprehensive income/ (expense) |
||||
| To be reclassified to profit or loss |
||||
| Gains on cash flow hedge |
||||
| accounting | - | 4.687.356 | - | 1.089.142 |
| Deferred tax expense | - | (460.009) | - | 115.529 |
| Not to be reclassified to profit or loss | ||||
| Actuarial gain/(loss) arising from | ||||
| defined benefit plans | (9.889.487) | (25.963.110) | (279.489) | (3.911.499) |
| Deferred tax effect | 2.472.372 | 5.192.622 | 84.002 | 782.300 |
| Other comprehensive expense | (7.417.115) | (16.543.141) | (195.487) | (1.924.528) |
| Total comprehensive expense | 979.079.626 | 1.218.252.499 | 279.802.370 | 2.883.248.098 |
(Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| Other | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| comprehensive | Other | ||||||||||
| income /(expenses) | comprehensive | ||||||||||
| not to be | income/ (expense) | ||||||||||
| reclassified | to be reclassified to | ||||||||||
| to profit or loss | profit or loss | Restricted reserves | |||||||||
| Increase on | Losses on re | ||||||||||
| revaluation of | measurement | Retained | |||||||||
| Adjustments | property, plant | of defined | earnings / | ||||||||
| Share | to share | and | benefit plans | Gains / (losses) on | Other | Legal | (accumulated | Net profit/ (loss) for | |||
| capital | capital | Share premiums | equipment(*) | cash flow hedging | reserves | reserves | losses) | the period | Total equity | ||
| 1 January 2023 | 729.164.000 | 11.532.694.825 | 1.102.512.329 | 4.667.987.482 | (41.517.977) | (4.364.614) | (15.892.945) | 238.607.857 | (7.566.654.514) | 2.860.431.774 | 13.502.968.217 |
| Transfers | - | - | - | - | - | - | - | - | 2.860.431.774 | (2.860.431.774) | - |
| Total comprehensive |
|||||||||||
| income/(expense) | - | - | - | - | (20.770.488) | 4.227.347 | - | - | - | 1.234.795.640 | 1.218.252.499 |
| Other adjustments (*) | - | - | - | (147.667.240) | - | - | - | - | 147.667.240 | - | - |
| 30 September 2023 | 729.164.000 | 11.532.694.825 | 1.102.512.329 | 4.520.320.242 | (62.288.465) | (137.267) | (15.892.945) | 238.607.857 | (4.558.555.500) | 1.234.795.640 | 14.721.220.716 |
| 1 January 2024 | 729.164.000 | 11.532.694.825 | 1.102.512.329 | 2.907.711.979 | (43.999.810) | - | (15.892.945) | 238.607.857 | (4.574.757.423) | 6.847.168.755 | 18.723.209.567 |
| Transfers | - | - | - - |
- | - | - | - | 6.847.168.755 | (6.847.168.755) | - | |
| Total comprehensive |
|||||||||||
| income /(expense) | - | - | - - |
(7.417.115) | - | - | - | - | 986.496.741 | 979.079.626 | |
| Other adjustments (*) | - | - | - (100.609.233) |
- | - | - | - | 100.609.233 | - | - | |
| 30 September 2024 | 729.164.000 | 11.532.694.825 | 1.102.512.329 | 2.807.102.746 | (51.416.925) | - | (15.892.945) | 238.607.857 | 2.373.020.565 | 986.496.741 | 19.702.289.193 |
(*) As of 30 September 2024, the depreciation difference between the acquisition cost and the carrying values of the assets subject to revaluation method amounting to TL 100.609.233 (30 September 2023: TL 147.667.240), were reclassified to accumulated losses from revaluation fund of property, plant and equipment.
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| Current Period | Prior Period | ||
|---|---|---|---|
| Unaudited | Unaudited | ||
| Notes | 1 January - 30 September 2024 |
1 January - 30 September 2023 |
|
| A. Cash flows from operating activities | 1.518.070.556 | 3.520.188.332 | |
| Net income for the period | 986.496.741 | 1.234.795.640 | |
| Adjustments to reconcile net income for the period | 259.302.507 | 2.053.165.168 | |
| Adjustments for depreciation and amortization expenses | 11 | 1.460.486.781 | 1.494.121.991 |
| Adjustments for provisions -Adjustments for provisions for employee benefits |
52.523.673 | 64.452.352 | |
| -Adjustments for litigation provisions | 6 | (6.601.204) | 1.512.102 |
| -Adjustments for other provisions | 6 | (12.760.524) | (7.498.447) |
| Adjustments for interest income | (195.804.494) | (274.442.512) | |
| Adjustments for interest expense | 1.484.805.909 | 1.973.769.762 | |
| Adjustments for financial investments | (1.107.605) | (56.269.911) | |
| Adjustments for (gain)/ loss on sale of property, plant and | |||
| equipment | (54.068) | (40.235) | |
| Adjustments for unrealized foreign currency translation differences | 2.089.696.060 | 7.216.316.669 | |
| Fair value adjustments | |||
| -Adjustments for fair value of derivative financial instruments | (30.099.135) | (56.244.009) | |
| Adjustments for tax (income) / expense | 9 | (716.594.375) | (1.144.205.960) |
| Monetary loss | (3.865.188.511) | (7.158.306.634) | |
| Changes in working capital | 314.258.443 | 337.594.523 | |
| Adjustments for (increase)/ decrease in trade receivables from related parties | 132.913.355 | 729.138.900 | |
| Adjustments for (increase)/ decrease in trade receivables from third parties | (143.014.484) | 1.600.002.311 | |
| Adjustments for (increase)/ decrease in other receivables from third parties | (200.331.526) | (12.820.054) | |
| Adjustments for (increase)/ decrease in inventories | 36.859.329 | (73.739.105) | |
| Adjustments for (increase)/ decrease in prepaid expenses | 133.664.482 | 361.684.796 | |
| Adjustments for (increase)/ decrease in other assets | (84.584.955) | (223.107.557) | |
| Adjustments for increase/ (decrease) in trade payables to related parties | (157.928.413) | (318.202.070) | |
| Adjustments for increase/ (decrease) in trade payables to third parties | 471.660.090 | (1.741.428.766) | |
| Adjustments for increase/ (decrease) in derivative financial instruments | 30.758.237 | 16.186.420 | |
| Adjustments for increase/ (decrease) in deferred income | 122.221.903 | 12.962.201 | |
| Adjustments for increase/ (decrease) in employee benefit obligations | (1.120.524) | 13.397.856 | |
| Adjustments for increase/ (decrease) in other payables | (26.839.051) | (26.480.409) | |
| Cash flows from operating activities | 1.560.057.691 | 3.625.555.331 | |
| Provisions related to provisions for employee benefits | (36.709.934) | (71.399.186) | |
| Tax receipts/(payments) | (5.277.201) | (33.967.813) | |
| B. Cash flows from investing activities | (48.373.793) | (777.284.651) | |
| Cash inflows due to sale of property, plant and equipment | 17.566.247 | 1.773.769 | |
| Cash outflows due to purchase of property, plant and equipment | 4 | (159.729.126) | (724.623.858) |
| Cash outflows due to purchase of intangible assets | 5 | (56.524.668) | (58.454.391) |
| Other cash inflows/(outflows) | 150.313.754 | 4.019.829 | |
| C. Cash flows from investing activities | (539.441.763) | (1.688.479.237) | |
| Cash inflows from financial liabilities | 7.416.781.636 | - | |
| Cash outflows from financial liabilities | (4.639.086.723) | (773.473.898) | |
| Cash outflows from payments of rent agreements | (77.588.115) | (78.460.352) | |
| Interest paid | (3.443.767.528) | (569.758.135) | |
| Interest received | 195.804.494 | 128.673.985 | |
| Other cash inflows/ (outflows) (*) | 8.414.473 | (395.460.837) | |
| Net increase/ (decrease) in cash and cash equivalents | 930.255.000 | 1.054.424.444 | |
| Inflation effect on cash and cash equivalents | (410.270.790) | (974.975.879) | |
| Cash and cash equivalents at the beginning of the period (*) | 1.554.350.249 | 2.657.453.341 | |
| Cash and cash equivalents at the end of the period (*) | 2.074.334.459 | 2.736.901.906 |
(*) Cash and cash equivalents at the beginning of the period and at the end of the period does not include interest accruals and restricted deposits, and the changes in restricted deposits are provided in "Other cash inflows / (outflows)".
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
Akenerji Elektrik Üretim A.Ş. ("the Company" or "Akenerji") is engaged in establishing, renting and operating facilities of electrical energy production plant, producing electricity and trading electricity to the customers. The Company was established by Akkök Sanayi Yatırım ve Geliştirme A.Ş. in 1989 (Akkök Sanayi Yatırım ve Geliştirme A.Ş. is registered as Akkök Holding A.Ş. on 13 May 2014). On 14 May 2009, the Company has become a joint venture between Akkök Holding A.Ş. and CEZ a.s.
The Company is registered in Turkey and its registered address is as follows;
Miralay Şefik Bey Sokak No: 15 Akhan Kat: 3-4 Gümüşsuyu / Istanbul - Turkey
The Company is registered to the Capital Markets Board ("CMB"), and its shares are publicly traded in Istanbul Stock Exchange ("ISE"). As of 30 September 2024, the Company's free float is 25,28% (31 December 2023: 25,28%).
As of 30 September 2024, the number of employees employed by Akenerji and its subsidiaries (Akenerji and its subsidiaries will be referred called as the "Group") is 296 (31 December 2023: 319).
The condensed consolidated financial statements for the interim period 1 January - 30 September 2024 were approved by the Board of Directors on 8 November 2024.
The nature of business and registered addresses of the entities included in the consolidation ("Subsidiaries") are provided below:
| Subsidiaries | Nature of business |
Registered address |
|---|---|---|
| Akenerji Elektrik Enerjisi İthalat-İhracat | ||
| ve Toptan Ticaret A.Ş. ("Akenerji Toptan") | Electricity trading | Gümüşsuyu/İstanbul |
| Akel Kemah Elektrik Üretim A.Ş. | ||
| ("Akel Kemah") | Electricity generation and trading | Gümüşsuyu/İstanbul |
| Akenerji Doğalgaz İthalat İhracat ve Toptan | ||
| Ticaret A.Ş. ("Akenerji Doğalgaz") | Natural gas trading | Gümüşsuyu/İstanbul |
| Akel Sungurlu Elektrik Üretim A.Ş. | ||
| ("Akel Sungurlu") | Electricity generation | Gümüşsuyu/İstanbul |
| 5ER Enerji Tarım Hayvancılık A.Ş. | ||
| ("5ER Enerji") | Electricity generation | Gümüşsuyu/İstanbul |
| Akenerji Company For Electric Energy Import | ||
| And Export and Wholesale Trading/Contribution Branch | ||
| ("Akenerji Toptan Khabat") | Electricity trading | Erbil/Iraq |
| Aken Europe B.V. | ||
| ("Aken B.V.") | Electricity trading | Amsterdam/Netherlands |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024 Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The accompanying consolidated financial statements have been prepared in accordance with Communiqué Serial II, No:14.1, "Principles of Financial Reporting in Capital Markets" ("the Communiqué") announced by the Capital Market Board ("CMB") of Turkey published in the Official Gazette numbered 28676 on 13 June 2013. According to Article 5 of the Communiqué, consolidated financial statements have been prepared in accordance with the Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS"/"TFRS") issued by Public Oversight Accounting and Auditing Standards Authority of Turkey ("POA").
The interim condensed consolidated financial statements have been presented in accordance with the formats specified in the "Announcement on TMS/TFRS Taxonomy" published by the POA on July 3, 2024, and the Financial Statement Examples and User Guide issued by the CMB.
In accordance with the TAS 34 "Interim Financial Reporting", entities are allowed to prepare a complete or condensed set of interim financial statements. Within this framework, the Group has adopted to prepare condensed consolidated financial statements for the interim periods. Accordingly, these interim condensed consolidated financial statements do not include all the required disclosures and notes, and therefore, should be read in conjunction with the Group's financial statements as of 31 December 2023.
The Group and its subsidiaries registered in Turkey maintain their books of account and prepare their statutory financial statements in accordance with the principles and requirements published by the CMB, the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. The interim condensed consolidated financial statements have been prepared on a historical cost basis, and necessary adjustments and reclassifications have been reflected in the statutory records to ensure proper presentation in accordance with TAS/TFRS.
With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after 31 December 2023. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy.
According to the standard, financial statements prepared using the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in terms of the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of 30 September 2023 and 31 December 2023, on the purchasing power basis as of 30 September 2024.
According to the decision numbered 81/1820 dated 28 December 2023, by the Capital Markets Board (CMB), issuers and capital market institutions subject to the Turkish Accounting/Financial Reporting Standards are required to apply the provisions of TAS 29 starting from the annual financial reports for the accounting periods ending as of 31 December 2023, in order to implement inflation accounting.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The adjustments made in accordance with TAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute (TÜİK). As of September 30, 2024, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:
| Adjustment | 3 year cumulative | ||
|---|---|---|---|
| Date | Index | correlation | inflation ratios |
| 30 September 2024 | 2.526,16 | 1,00000 | %343 |
| 31 December 2023 | 1.859,38 | 1,35860 | %268 |
| 30 September 2023 | 1.691,04 | 1,49385 | %254 |
The main components of the Group's adjustments for financial reporting in hyperinflationary economies are as follows:
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The table below shows the effective ownership percentages of subsidiaries and associates as of 30 September 2024 and 31 December 2023, along with the voting rights percentages held directly or indirectly by the Group.
| Effective ownership interest (%) | Voting rights (%) | ||||
|---|---|---|---|---|---|
| Subsidiaries | 30 September | 31 December | 30 September | 31December | |
| 2024 | 2023 | 2024 | 2023 | ||
| Akenerji Toptan | 100,00 | 100,00 | 100,00 | 100,00 | |
| Ak-el Kemah | 100,00 | 100,00 | 100,00 | 100,00 | |
| Akenerji Doğalgaz | 100,00 | 100,00 | 100,00 | 100,00 | |
| Akel Sungurlu (*) | - | - | 100,00 | 100,00 | |
| 5ER Enerji (*) | - | - | 100,00 | 100,00 | |
| Akenerji Toptan Khabat (**) | - | - | 100,00 | 100,00 | |
| Aken B.V. | 100,00 | 100,00 | 100,00 | 100,00 |
(*) Akenerji Toptan has a free purchase options of Akel Sungurlu and 5ER Enerji's shares at any time and Akenerji Toptan has the controlling power within the scope of the capacity lease agreement and usufruct right agreement, so Akel Sungurlu and 5ER Enerji have been consolidated in the financial statements using the full consolidation method.
(**) The subsidiary's branch, which operates in a different country, is separately presented.
Subsidiaries are consolidated from the date on which the control is transferred to the Group and are deconsolidated from the date that the control ceases. If necessary, accounting policies applied to subsidiaries are adjusted to ensure consistency with the accounting policies adopted by the Group.
Carrying values of the Subsidiaries' shares held by the Company are eliminated against the related equity of subsidiaries. Intercompany transactions and balances between Akenerji and its subsidiaries are eliminated on consolidation. Dividends arising from shares held by the Company in its subsidiaries are eliminated from income for the period and equity, respectively.
The accounting policies applied in the preparation of the interim condensed consolidated financial statements as of 30 September 2024, have been consistently applied with those used in the previous year, except for the new and amended TAS/TFRS and TFRIC interpretations effective as of 1 January 2024. The effects of these standards and interpretations on the Group's financial position and performance are explained in the related paragraphs.
These standards do not have a significant impact on the financial position and performance of the Group.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective.
The Group is in the process of assessing the impact of the standards on financial position or performance of the Group.
Any change in the accounting policies resulted from the first time adoption of a new standard is made either retrospectively or prospectively in accordance with the transition requirements. Changes that do not include transition provisions, significant voluntary changes in accounting policies, or identified accounting errors are applied retrospectively, and prior period financial statements are restated. If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.
The Group prepares comparative consolidated financial statements, to enable readers to determine financial position and performance trends. When there are changes in the presentation or classification of the consolidated financial statements, the prior period consolidated financial statements are reclassified accordingly to the ensure comparability.
The preparation of interim condensed consolidated financial statements requires the use of estimates and assumptions that could affect the reported amounts of assets and liabilities as of the balance sheet date, as well as the disclosure of contingent assets and liabilities and the amounts of reported income and expenses for the period. Although these estimates and assumptions are based on the best information available to the Group's management regarding current events and transactions, actual results may differ from these assumptions.
The estimates and assumptions that are material to the carrying values of assets and liabilities as well as the results of operations are outlined below:
Deferred tax assets are accounted for only where it is likely that related temporary differences and accumulated losses will be recovered through expected future profits or will be offsetted from the deferred tax liabilities incurred on the temporary differences will be recovered at the same date.
As a result of the studies performed, the Group recognized no deferred tax assets on carry forward tax losses (31 December 2023: None) as of 30 September 2024.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
Carry forward tax losses amounting to TL 3.722.792.356 (31 December 2023: TL 3.300.536.755) (Note 9). As of 30 September 2024, the deferred tax asset has not been calculated by the Group considering its expected future profits and the related deferred tax liabilities for the relevant periods.
The Group has chosen revaluation method instead of historical cost model as an accounting policy among application methods mentioned under TAS 16 for lands, land improvements, buildings, machinery and equipment belong to its power plants commencing from 30 September 2015.
In the valuation work conducted, the use of significant forward-looking estimates and assumptions (such as expected future electricity prices, spark spreads, electricity production volumes, capacity utilization rates and discount rates) requires an independent valuation firm due to the impact of sectoral and economic changes, as well as the complexity of inputs and calculations. As of 31 December 2023, the valuations of lands, land improvements, buildings, machinery and equipment were based on fair values determined by an independent valuation company licensed by the CMB.
Income Approach, discounted cash flow analysis (Level 3) is used by the valuation company for valuation reports of 31 December 2023 aims to determine fair value of lands, land improvements, buildings, machinery and equipment of Uluabat hydroelectric power plant (HPP), Ayyıldız wind farm power plant (WFPP), Burç HPP, Feke I HPP, Feke II HPP, Bulam HPP, Gökkaya HPP, Sungurlu biomass power plant (BPP), Himmetli HPP and Erzin Natural Gas Combined Cycle Power Plant (NGCCPP) which are belong to Akenerji assets.
Since long term electricity prices and spark spreads are the most important inputs of "Income Approach discounted cash flow analysis", an independent consultancy and technology firm, which operates in energy market, has been hired. In determining long-term electricity prices and spark spreads, the most important inputs to the model included in the following factors: the future trends in demand, the commissioning of new plants and decommissioning of old ones, developments in renewable energy capacity and capacity factors, expectations related to the carbon market, natural gas and coal prices, developments in electricity export and import, and the efficiency improvements of thermal power plants.
Changes in forward-looking spark spreads used in the model affect the generation of the Erzin natural gas combined cycle power plant. The generation forecasts for the hydro plants, Sungurlu and Ayyıldız are based on historical production data and feasibility reports covering a 50-year period. The discount rate used in valuation model prepared on the basis of USD has been determined as reel 10,31% which is in line with the current macroeconomic market conditions. An increase in the discount rate has a reducing effect on the fair value of the plants.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The Group considers it is appropriate to prepare its consolidated financial statements on a going concern basis in a foreseeable future.
In the period ending on 30 September 2024, the Group's total production volume decreased by 14% compared to the same period last year. The main reason for this decline is the 20% increase in natural gas costs in October 2023, while the ceiling prices in the electricity market were kept constant in the first half of this year, putting significant pressure on the production and profitability of natural gas power plants. Although the ceiling prices in the Day-Ahead Market were raised from 2700 TL/MWh to 3000 TL/MWh as of July 2024, this increase remains relatively low compared to similar practices in other liberalized electricity markets. Another development at the beginning of the third quarter was an increase in the Capacity Mechanism Budget, along with a rise in TEİAŞ's system usage fees. With rising temperatures in June persisting into July and August, changes in the ceiling price and the regulatory changes in the Capacity Mechanism that positively impacted our company, had a supportive effect on our operations. As a result, as of 30 September 2024, earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to 1.352 million TL (30 September 2023: 3.052 million TL).
The natural gas purchases for production activities at the Group's Erzin combined-cycle natural gas power plant represent a substantial portion of production costs. In 2024, the natural gas supply has continued through BOTAŞ. Despite fluctuations in global natural gas prices, there has been no change in BOTAŞ tariffs since the price increase in October 2023. Increases in natural gas transmission service and capacity fees at the beginning of 2024 have been closely monitored alongside the decline in demand in the electricity market and import costs for energy plants. Additionally, cost optimization continues through monthly assessments of opportunities to reduce natural gas costs.
Within the scope of the "Financial Restructuring" agreement signed by the Group with Yapı ve Kredi Bankası A.Ş. on November 11, 2019, a refinancing loan agreement amounting to 859 million USD was established, aimed at refinancing all existing debts of the company and extending their maturities. This loan has a total term of 13 years, with a grace period of 1.5 years. Due to the Group's debt service payments and early principal repayments, the total loan balance was reduced to 511 million USD as of 30 September 2024. According to the Loan Agreement mentioned hereby, all liabilities denominated in TRY and in USD, which are due in December 2024, were converted into USD and restructured with an 18-month maturity under the amendmend dated September 20, 2024 This adjustment alleviated the cash flow pressure on the Group, positively impacting our financial sustainability and competitive strength. The remaining 331 million USD amounted loans will continue with their existing terms, maturing in December 2032.
The Group is taking various actions to enhance its operational profitability and cash flows from operations by evaluating all opportunities that could positively contribute to its cash flows and align with its interests. Accordingly, it prepares its consolidated financial statements under the assumption that the business will continue its operations in the foreseeable future, with no anticipated risk to its going concern.
Due to the nature of the industry in which the Group operates, its business volume exhibits seasonal fluctuations. Business volume tends to be higher in the second quarter for hydroelectric power plants and in the first quarter for wind power plants. Seasonality does not have a significant impact on the business volume of the Group's remaining segments.
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The details of borrowings of the Group as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short term borrowings | ||
| - Bank loans | 280.722.575 | - |
| Total short term borrowings | 280.722.575 | - |
| Short-term portion of long term borrowings | ||
| - Bank loans | 1.466.650.717 | 9.173.083.873 |
| - Lease liabilities | 61.990.432 | 69.143.187 |
| Total short-term portion of long term borrowings | 1.528.641.149 | 9.242.227.060 |
| Long term borrowings | ||
| - Bank loans | 16.189.315.880 | 11.875.775.152 |
| - Lease liabilities | 263.816.760 | 330.334.790 |
| Total long term borrowings | 16.453.132.640 | 12.206.109.942 |
| Total short term and long term borrowings | 18.262.496.364 | 21.448.337.002 |
Letters of guarantee given, pledges and mortgages related to financial liabilities are disclosed in Note 6.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
As of 30 September 2024 and 31 December 2023, the original currencies and weighted average interest rates for short and long-term financial liabilities are as follows:
| 30 September 2024 | ||||
|---|---|---|---|---|
| Currency | Effective Interest rate % |
Original Amount |
Amount in TL | |
| Short term borrowings | TL | 26,93 | 280.722.575 | 280.722.575 |
| Total short term borrowings | 280.722.575 | 280.722.575 | ||
| Short term portion of long-term bank loans Short term portion of long-term lease liabilities Interest cost of short-term portion of long-term lease liabilities (-) Short term portion of long-term lease liabilities |
USD EUR EUR TL |
7,72 6,51 6,51 19,04 |
42.983.814 1.505.116 (290.755) 15.636.591 |
1.466.650.717 57.452.375 (11.098.534) 15.636.591 |
| Total short term portion of long term borrowings | 1.528.641.149 | |||
| Long term bank loans Long term lease liabilities Interest cost of long term lease liabilities (-) Long term lease liabilities |
USD EUR EUR TL |
7,72 6,51 6,51 19,04 |
474.467.802 5.070.731 (1.292.420) 119.593.327 |
16.189.315.880 193.556.914 (49.333.481) 119.593.327 |
| 31 December 2023 | ||||
|---|---|---|---|---|
| Effective | ||||
| Interest | Original | |||
| Currency | rate % | Amount | Amount in TL | |
| Short term portion of long-term bank loans | USD | 7,75 | 107.306.258 | 4.291.696.507 |
| Short term portion of long-term bank loans | TL | 12,28 | 3.592.945.039 | 4.881.387.366 |
| Short term portion of long-term lease liabilities | EUR | 8,98 | 1.602.697 | 70.927.353 |
| Interest cost of short-term portion of long-term | ||||
| lease liabilities (-) | EUR | 8,98 | (332.529) | (14.716.065) |
| Short term portion of long-term lease liabilities | TL | 18,76 | 9.518.524 | 12.931.899 |
| Total short term portion of long term borrowings | 9.242.227.060 | |||
| Long term bank loans | USD | 7,75 | 296.932.692 | 11.875.775.152 |
| Long term lease liabilities | EUR | 8,98 | 6.530.108 | 288.989.998 |
| Interest cost of long term lease liabilities (-) | EUR | 8,98 | (1.599.486) | (70.785.282) |
| Long term lease liabilities | TL | 18,76 | 112.130.074 | 112.130.074 |
| Total long term borrowings | 12.206.109.942 |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
As of 30 September 2024, all of the Euro finance lease liabilities of the Group are subject to floating interest rate of Euribor + 3.4% (31 December 2023: All of the Euro finance lease liabilities of the Group are subject to floating interest rate of Euribor + 3.4%).
The details of redemption schedule of the long term bank borrowings as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Up to 1 - 2 years | 7.677.508.341 | 1.597.812.357 |
| Up to 2 - 3 years | 1.614.435.422 | 1.735.454.012 |
| Up to 3 - 4 years | 1.544.512.144 | 1.817.645.845 |
| Up to 4 - 5 years | 1.352.966.438 | 1.588.670.100 |
| More than 5 years | 3.999.893.535 | 5.136.192.838 |
| 16.189.315.880 | 11.875.775.152 |
The principal repayment schedule of the Group's long-term finance lease obligations as of 30 September 2024 and 31 December 2023 is as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Up to 1-2 years | 51.575.615 | 60.236.659 |
| Up to 2-3 years | 50.148.690 | 55.539.281 |
| Up to 3-4 years | 48.844.247 | 52.888.444 |
| Up to 4-5 years | 3.257.270 | 57.269.385 |
| Up to 5-6 years | 274.490 | 1.043.534 |
| Up to 6-7 years | 321.776 | 574.048 |
| Up to 7-8 years | 377.209 | 2.356.631 |
| Up to 8-9 years | 442.191 | 1.182.651 |
| Up to 9-10 years | 518.368 | 1.102.444 |
| More than 10 years | 108.056.904 | 98.141.713 |
| 263.816.760 | 330.334.790 |
As of 30 September 2024 and 2023, the movements of borrowings are as follows:
| 2024 | 2023 | |
|---|---|---|
| 1 January | 21.448.337.002 | 26.169.178.566 |
| Foreign exchange differences | 2.089.696.060 | 7.216.316.671 |
| Current year interest expense | 1.426.028.364 | 1.609.505.142 |
| Changes in lease liabilities | 63.844.647 | 101.319.158 |
| Cash flow impact | (743.660.728) | (1.421.692.384) |
| Monetary loss | (6.021.748.981) | (10.273.834.366) |
| 30 September | 18.262.496.364 | 23.400.792.787 |
| 1 January 2024 | Additions | Transfers | Disposals | 30 September 2024 |
|
|---|---|---|---|---|---|
| Cost Lands |
2.661.003 | - | - | - | 2.661.003 |
| Land improvements (*) | 22.837.128.752 | 26.389.392 | - | - | 22.863.518.144 |
| Buildings | 5.194.614.088 | 1.328.879 | - | - | 5.195.942.967 |
| Machinery and equipment (**) | 19.915.940.944 | 14.842.743 | 179.267.967 | - | 20.110.051.654 |
| Motor vehicles | 28.738.299 | 1.878.843 | - | - | 30.617.142 |
| Furnitures and fixtures | 211.104.353 | 6.017.015 | - | (4.453.918) | 212.667.450 |
| Special costs | 138.542.460 | 1.964.679 | - | (43.846.550) | 96.660.589 |
| Construction in progress | 418.865.912 | 107.307.575 | (179.681.020) | (30.431.379) | 316.061.088 |
| 48.747.595.811 | 159.729.126 | (413.053) | (78.731.847) | 48.828.180.037 | |
| Accumulated depreciation | |||||
| Land improvements | (3.948.323.935) | (555.018.491) | - | - | (4.503.342.426) |
| Buildings | (738.229.886) | (112.172.115) | - | - | (850.402.001) |
| Machinery and equipment | (5.494.073.858) | (720.990.798) | - | - | (6.215.064.656) |
| Motor vehicles | (19.046.045) | (3.320.877) | - | - | (22.366.922) |
| Furnitures and fixtures | (156.224.080) | (4.046.282) | - | 156.941 | (160.113.421) |
| Special costs | (21.356.995) | (2.911.358) | - | 1.007.354 | (23.260.999) |
| (10.377.254.799) | (1.398.459.921) | - | 1.164.295 | (11.774.550.425) | |
| Net book value | 38.370.341.012 | 37.053.629.612 |
(*) Within the capacity increase project of Ayyıldız wind power plant, the cost of land improvement acquired through finance lease on 27 January 2017 is amounting to TL 4.175.863. As of 30 September 2024, the total amount of accumulated depreciation of related land improvement is TL 851.656.
(**) Within the capacity increase project of Ayyıldız wind power plant, the cost of machinery and equipment acquired through finance lease on 27 January 2017 is amounting to TL 414.816.933. As of 30 September 2024, the total amount of accumulated depreciation of the related machinery and equipment is TL 321.483.123.
Current period depreciation expense amounting to TL 1.395.097.901 has been included in cost of sales and TL 3.362.020 has been included in general administrative expenses.
| 1 January 2023 | Additions | Transfers | Disposals | 30 September 2023 | |
|---|---|---|---|---|---|
| Cost | |||||
| Lands | 2.318.925 | - | - | - | 2.318.925 |
| Land improvements (*) | 25.710.606.990 | 5.760.297 | 19.144.998 | - | 25.735.512.285 |
| Buildings | 4.898.696.305 | 929.927 | 114.874.223 | - | 5.014.500.455 |
| Machinery and equipment (**) | 18.164.265.863 | 254.327.173 | 445.179.446 | - | 18.863.772.482 |
| Motor vehicles | 24.589.672 | 145.638 | 3.982.328 | - | 28.717.638 |
| Furnitures and fixtures | 187.333.641 | 9.820.624 | 2.893.650 | - | 200.047.915 |
| Special costs | 50.856.690 | 38.499.341 | - | - | 89.356.031 |
| Construction in progress | 815.361.530 | 415.140.858 | (586.074.645) | - | 644.427.743 |
| 49.854.029.616 | 724.623.858 | - | - | 50.578.653.474 | |
| Accumulated depreciation | |||||
| Land improvements | (3.109.176.940) | (629.464.224) | - | - | (3.738.641.164) |
| Buildings | (596.038.393) | (105.296.366) | - | - | (701.334.759) |
| Machinery and equipment | (4.600.373.271) | (666.669.109) | - | - | (5.267.042.380) |
| Motor vehicles | (15.140.820) | (2.823.493) | - | - | (17.964.313) |
| Furnitures and fixtures | (145.603.390) | (4.504.801) | - | - | (150.108.191) |
| Special costs | (17.572.801) | (1.851.297) | - | - | (19.424.098) |
| (8.483.905.615) | (1.410.609.290) | - | - | (9.894.514.905) | |
| Net book value | 41.370.124.001 | 40.684.138.569 |
(*) Within the capacity increase project of Ayyıldız wind power plant, the cost of land improvement acquired through finance lease on 27 January 2017 is amounting to TL 4.175.863. As of 30 September 2023, the total amount of accumulated depreciation of related land improvement is TL 741.765.
(**) Within the capacity increase project of Ayyıldız wind power plant, the cost of machinery and equipment acquired through finance lease on 27 January 2017 is amounting to TL 414.816.933. As of 30 September 2023, the total amount of accumulated depreciation of the related machinery and equipment is TL 280.001.429.
Current period depreciation expense amounting to TL 1.406.966.495 has been included in cost of sales and TL 3.642.795 has been included in general administrative expenses.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
There are no borrowing costs capitalized in the cost of construction in progress for the period ended 30 September 2024 (30 September 2023: None).
Details of the guarantees, pledges and mortgages on property, plant and equipment as of 30 September 2024 and 31 December 2023 are disclosed in Note 6.
| 1 January 2024 | Additions | Transfers | Disposals | 30 September 2024 | |
|---|---|---|---|---|---|
| Costs | |||||
| Rights | 7.821.421 | 56.524.668 | 34.663.105 | (35.040) | 98.974.154 |
| Licenses | 1.015.662.974 | - | (34.250.052) | (39.382.400) | 942.030.522 |
| 1.023.484.395 | 56.524.668 | 413.053 | (39.417.440) | 1.041.004.676 | |
| Accumulated amortization | |||||
| Rights | (7.481.333) | (3.548.681) | (70.468.803) | 11.039.662 | (70.459.155) |
| Licenses | (455.219.043) | (26.646.891) | 70.468.803 | 4.313.368 | (407.083.763) |
| (462.700.376) | (30.195.572) | - | 15.353.030 | (477.542.918) | |
| Net book value | 560.784.019 | 563.461.758 | |||
| 1 January 2023 | Additions | Transfers | Disposals | 30 September 2023 | |
|---|---|---|---|---|---|
| Costs | |||||
| Rights | 7.747.692 | 2.914.118 | 74.562.431 | (7.257.937) | 77.966.304 |
| Licenses | 977.021.877 | 55.540.273 | (74.562.431) | - | 957.999.719 |
| 984.769.569 | 58.454.391 | - | (7.257.937) | 1.035.966.023 | |
| Accumulated amortization | |||||
| Rights | (7.459.769) | (2.814.739) | (64.552.706) | 2.892.748 | (71.934.466) |
| Licenses | (427.069.177) | (55.615.143) | 64.552.706 | - | (418.131.614) |
| (434.528.946) | (58.429.882) | - | 2.892.748 | (490.066.080) | |
| Net book value | 550.240.623 | 545.899.943 |
Current period amortization expense amounting to TL 18.773.920 (30 September 2023: TL 7.485.279) has been included in cost of sales and remaining TL 11.421.652 (30 September 2023: TL 50.944.603) has been included in general administrative expenses.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
As of 30 September 2024, there are various lawsuits against or in favor of the Group.These lawsuits are mainly action of debt and business cases.The Group management estimates the outcomes of these lawsuits and the financial effects thereof, and the required provisions are accounted for based on these estimates. The amount of provisions for the lawsuits as of 30 September 2024 is TL 43.686.763 (31 December 2023: TL 67.181.467).
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Litigation provision | 43.686.763 | 67.181.467 |
| Periodical maintenance provisions | 35.478.865 | 48.239.389 |
| 79.165.628 | 115.420.856 | |
The movements of litigation provision are as follows:
| 2024 | 2023 | |
|---|---|---|
| 1 January | 67.181.467 | 108.693.285 |
| Current period charges Interest charges of litigation provision Released provisions Monetary gain |
1.679.516 - (8.280.720) (16.893.500) |
1.524.944 747.383 (760.225) (36.476.862) |
| 30 September | 43.686.763 | 73.728.525 |
The commitments and contingent liabilities of the Group that are not expected to be resulted in a significant loss or liability to the Group are summarized below:
| 30 September 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Original | Original | TL | Original | TL | |
| currency | Amount | equivalent | Amount | Equivalent | |
| Letters of guarantees given | TL | 663.904.437 | 663.904.437 | 209.159.356 | 209.159.356 |
| USD | 1.549.792 | 52.832.409 | 2.693.232 | 107.715.379 | |
| EUR | 421.583 | 16.027.742 | 4.343.122 | 192.204.922 | |
| 732.764.588 | 509.079.657 |
The guarantees provided generally consist of letters of guarantee issued to various institutions and organizations related to the Group's operations (such as the Energy Market Regulatory Authority (EMRA), suppliers from whom goods and services are procured, state institutions responsible for electricity transmission and distribution, tax offices for VAT refunds), and various judicial authorities for ongoing legal cases.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
Guarantees, pledges, mortgages ("GPM") given by the Group as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Original | TL | Original | TL | ||
| Currency | currency | equivalent | currency | equivalent | |
| GPMs given by the Group A. GPMs given |
|||||
| for companies' own legal entity | TL USD EUR |
7.082.365.280 919.065.392 421.583 |
7.082.365.280 31.330.939.213 16.027.742 |
8.929.302.114 920.208.832 4.343.122 |
8.929.302.114 36.803.603.870 192.204.914 |
| B.Total amount of GPM given for the subsidiaries and associates in the scope of consolidation |
- | - | - | - | |
| C.Total amount of GPM given for the purpose of maintaining operating activities |
- | - | - | - | |
| D.Total other GPMs given i) Total amount of CPMB's given on behalf of the majority shareholder |
- - |
- - |
- - |
- - |
|
| ii) Total amount of CPMB's given to on behalf of other which are not in scope of B and C. |
- | - | - | - | |
| iii) Total amount of CPMB's given on behalf of third parties which are not in scope of C. |
- | - | - | - | |
| 38.429.332.235 | 45.925.110.898 |
Details of the guarantees given by Akenerji for its own legal entity as of 30 September 2024 are as follows:
As of 11 November 2019, within the scope of financial restructuring between our company Akenerji ("Borrower") and Yapı ve Kredi Bankası A.Ş. ("Bank"), a total of USD 859 million refinancing loan agreement for the maturity of 13 years, including a pricipal grace period of 1.5 years has been concluded, in order to provide refinancing and maturity extension of all existing debts of our company. The aforementioned Loan Agreement was amended on September 20, 2024, whereby Tranche 1 of USD 40 million principal due in 2024 and Tranche 2 of TRY 2,271,037,258 principal were repaid, while Tranche 5 of USD 180 million was utilized. Consequently, security agreements signed in 2019 and amended from time to time – including Assignment of Receivables, Assignment of Epiaş Receivables, Mortgage on Usufruct Rights and the Real Estate, Commercial Enterprise Pledge, Account Pledge, Assignment of Insurance Receivables, Assignment of Shareholder Receivables, Movable Asset Pledge, and Share Pledge Agreements – continue to be valid as collateral for the company's existing principal debts amounting to USD 511.2 million and related accrued interest and other ancillary obligations as of 30 September 2024. Under the Movable Asset Pledge Agreements signed between Akenerji and the Bank, a first-degree movable asset pledge of TRY 6,418,460,843 and a second-degree pledge of USD 917,515,600 have been established, setting an upper limit for Akenerji. Additionally, Yapı ve Kredi Bankası A.Ş. has been designated as the loss payee of insurance policies.
As of 30 September 2024, GPMs given by the Group to equity ratio is 195% (31 December 2023: 245%).
Within the scope of electricity energy sales agreements made with energy companies, the Group has committed to sell 992.192 MWh of energy physically in 2024, and within the scope of the related commitment, 992.192 MWh of energy has been sold as of 30 September 2024.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The Group has committed to purchase 185.878 MWh of physical electricity energy within the scope of electricity energy purchase agreements with energy companies in 2024 and as of 30 September 2024, 168.214 MWh of energy has been purchased under this commitment.
As of 30 September 2024, the Group has no purchase or sales agreements committed for execution in 2024 or in subsequent periods.
The Group fulfilled 100% of its annual take-or-pay commitment in the third quarter of 2024.
The Kemah Hydroelectric Power Plant project stands out as one of Turkey's leading hydroelectric projects with a high installed capacity of 198 MW, reservoir capacity, and strategic location. The State Hydraulic Works Final Project approval process of the project, which is planned to be established in Erzincan and expected to generate an average of 560 GWh of electricity per year, was completed in 2017, the license was modified in 2020 and the pre - construction period was extended. As one of the most significant investments of Akenerji Elektrik Üretim A.Ş., the project continues to undergo economic analyses focusing on conventional energy production alternatives, opportunities to benefit from YEKDEM incentives, and pumped storage systems as of 30 September 2024. The existing railway line passes through the reservoir area of the Kemah HPP, and after the project is completed, a portion of this line will be under water (inundated). The repositioning of this line is planned to be included in the upcoming period's investment plan as a public investment by the state, in coordination with Turkey Republic State Railways and the Ministry of Transport. Once the relocation plan is realized, the Group plans to proceed with the other necessary works for the investment. Due to the aforementioned economic analysis and alternative assessments and ongoing relocation plans, construction of Kemah project has not begun as of 30 September 2024, thus the project is not presented in financial statements.
| 30 September 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Original | TL | Original | TL | ||
| Currency | Currency | Equivalent | currency | Equivalent | |
| Letters of guarantees received | TL | 231.641.291 | 231.641.291 | 508.722.648 | 508.722.648 |
| EURO | 262.225 | 9.969.270 | 318.532 | 14.096.642 | |
| USD | 2.029.000 | 69.168.610 | 1.729.000 | 69.151.077 | |
| Notes of guarantees received | TL | 1.752.432 | 1.752.432 | 23.040.182 | 23.040.182 |
| USD | 745.824 | 25.425.140 | 745.824 | 29.829.111 | |
| EURO | 33.800 | 1.285.008 | 33.800 | 1.495.820 | |
| GBP | 5.675 | 258.444 | 5.675 | 288.679 | |
| Cheques of guarantees received | TL | 106.000 | 106.000 | 144.012 | 144.012 |
| USD | 16.650 | 567.599 | 16.650 | 665.914 | |
| Mortgages received | TL | 3.242.000 | 3.242.000 | 4.404.592 | 4.404.592 |
| 343.415.794 | 651.838.677 |
Letters of guarantees received, in general, comprised of the letters of guarantees received from the customers in relation to the Group's electricity sales operations.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Contract amount |
Fair value |
Contract amount |
Fair value |
|
| Forward contracts - Short - term |
- | - | 20.197.144 | 4.703.103 |
| Derivative financial assets | - | - | 20.197.144 | 4.703.103 |
| Forward contracts - Short - term |
255.907.500 | 31.246.287 | 1.781.011.100 | 51.570.477 |
| Derivative financial liabilities | 255.907.500 | 31.246.287 | 1.781.011.100 | 51.570.477 |
Movement of derivative instruments during the period is as follows:
| 2024 | 2023 | |
|---|---|---|
| 1 January | (46.867.374) | 50.072.149 |
| To be reclassified to profit or loss | ||
| - Financial (income)/expense -Monetary (loss)/gain |
3.723.752 11.897.335 |
(54.906.596) (5.190.248) |
| 30 September | (31.246.287) | (10.024.695) |
Akenerji adopted the registered capital system applicable to the companies registered on the CMB and defined a limit to its registered capital for shares. Akenerji's registered capital ceiling and paid-in capital as of 30 September 2024 and 31 December 2023 are shown below:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Limit on registered share capital (historical) | 1.500.000.000 | 1.500.000.000 |
| Issued capital | 729.164.000 | 729.164.000 |
The Company's shareholders and shareholding structure as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Share (%) | Amount | Share (%) | Amount | |
| CEZ a.s. | 37,36 | 272.425.943 | 37,36 | 272.425.943 |
| Akkök Holding A.Ş. | 20,43 | 148.989.090 | 20,43 | 148.989.090 |
| Akarsu Enerji Yatırımları San. ve Ticaret A.Ş. | ||||
| ("Akarsu") | 16,93 | 123.436.852 | 16,93 | 123.436.852 |
| Publicly held | 25,28 | 184.312.115 | 25,28 | 184.312.115 |
| 729.164.000 | 729.164.000 | |||
| Adjustment to share capital | 11.532.694.825 | 11.532.694.825 | ||
| Total paid-in capital | 12.261.858.825 | 12.261.858.825 |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The share capital of the Company consists of 72.916.400.000 shares with a nominal value of 1 (one) Kr for each where no privilege rights are provided for any kind of shares.
Hyperinflation adjustments made on equity according to TAS 29, published by CMB on 7 March 2024, are presented below:
| Equity | PPE indexed accounting entries |
CPE indexed accounting entries |
Differences classified in retained earnings |
|---|---|---|---|
| Adjustments to share capital | 14.195.150.060 | 11.532.694.825 | (2.662.455.235) |
| Share premiums | 1.521.022.110 | 1.102.512.329 | (418.509.781) |
| Restricted reserves | 332.283.917 | 238.607.857 | (93.676.060) |
Hyperinflation adjustments made on retained earnings according to TAS 29, published by CMB on 7 March 2024, are presented below:
| Retained Earnings | Balances before hyperinflation accounting |
Balances after hyperinflation accounting |
|---|---|---|
| 30 September 2023 | (7.633.570.201) | (4.558.555.500) |
| 1 January 2023 | (6.473.542.581) | (7.566.654.514) |
Share premiums presented in the consolidated financial statements represent the proceeds from the excess of the number of shares compared to their nominal values.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Legal reserves | 238.607.857 | 238.607.857 |
| 238.607.857 | 238.607.857 |
Turkish Commercial Code stipulates that the legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group's paid-in share capital. Other legal reserve is appropriated out of 10% of the distributable income after 5% dividend is paid to shareholders. Under the TCC, legal reserves can only be used for compensating losses, continuing operations in severe conditions or preventing unemployment and taking actions for relieving its effects in case general legal reserves does not exceed half of paid-in capital or issued capital.
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Current income tax expenses Prepaid taxes |
- (7.113.324) |
32.248.730 (35.654.592) |
| Current income tax liabilities/ (Current income tax assets), net |
(7.113.324) | (3.405.862) |
The Group is subject to corporate tax in Turkey. Necessary provisions have been made in the financial statements for the estimated tax liabilities of the Group related to the current period activity results.
The corporate tax rate in Turkey is 25% (31 December 2023: 25%). The corporate tax rate is applied to the net corporate income to be found as a result of adding the non-deductible expenses to the commercial earnings of the companies, and deducting the exemptions and deductions stated in the tax laws. Losses can be carried forward for offset against future taxable income for up to 5 years. However, the resulting losses cannot be deducted retrospectively from the profits of previous years.
In Turkey, there is no practice to reconcile with the tax authority on taxes payable. The corporate tax return is submitted until the evening of the 30th day of the fourth month following the end of the accounting period and is paid until the end of the month.
Companies in Turkey calculate temporary tax at the rate of 25% over their quarterly financial profits (31 December 2023: 25%) and declared until the 17th day of the second month following that period and pay it by the evening of the seventeenth day. The temporary tax paid during the year belongs to that year and is deducted from the corporate tax to be calculated over the corporate tax return to be submitted in the following year. Despite the deduction, if there is an amount of advance tax paid, this amount can be refunded or deducted in cash.
Limited tax payers, who earn income through a permanent establishment or representative and pay it to companies (dividends) resident in Turkey, not subject to withholding tax. Dividend payments made to persons other than these are subject to 10% withholding tax. The profit included to the capital is not a profit distribution.
The details of tax income / expense for the period ended 30 September 2024 and 2023 are as follows:
| 1 January - | 1 January - | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 | |
| Current income |
tax | |||
| income/(expense) | - | (32.308.347) | 23.788 | (414.629) |
| Deferred tax |
||||
| expense | (716.594.375) | (1.111.897.613) | (341.652.252) | (1.194.164.189) |
| (716.594.375) | (1.144.205.960) | (341.628.464) | (1.194.578.818) | |
| Deferred taxes | ||||
| 30 September 2024 | 31 December 2023 | |||
| Deferred tax assets | - | 14.354.608 | ||
| Deferred tax liabilities | (1.247.340.635) | (533.214.777) | ||
| Deferred tax assets, net | (1.247.340.635) | (518.860.169) |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising from its financial statements prepared in compliance with TAS and its statutory tax financial statements. The temporary differences usually result from the recognition of revenue and expenses in different reporting periods according to TAS and Tax Laws.
The tax rate used in the calculation of deferred tax assets and liabilities is 25% (31 December 2023: 25%)
The breakdown of cumulative temporary differences and the resulting deferred tax assets/liabilities provided using principal tax rates is as follows:
| Deferred tax | ||||
|---|---|---|---|---|
| Total temporary differences | assets/(liabilities) | |||
| 30 September | 31 December | 30 September | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| Investment incentives (*) | (912.479.735) | (987.413.840) | 228.119.934 | 246.853.461 |
| Derivative financial instruments | (31.246.287) | (46.867.375) | 7.811.572 | 11.716.844 |
| Provisions for lawsuits | (43.686.763) | (67.181.467) | 10.921.691 | 16.795.366 |
| Provision for employment | ||||
| termination benefit | (38.021.097) | (36.686.945) | 9.505.274 | 9.171.736 |
| Provision for unused vacation rights | (14.117.664) | (9.618.859) | 3.529.416 | 2.404.716 |
| Adjustments to property, plant and | ||||
| equipment | 6.180.396.772 | 3.218.463.624 | (1.545.099.192) | (804.615.905) |
| Adjustments to borrowings | 82.332.140 | 286.556.247 | (20.583.035) | (71.639.062) |
| Other | (233.814.828) | (281.810.722) | 58.453.705 | 70.452.675 |
(*) Within the scope of former Article 19 of Income Taxation Law, the related amount of investment incentive is mainly due to investment expenditures of Uluabat HEPP.
In accordance with the Group's assessments as of 30 September 2024, details of tax losses on which deferred taxes are not recognized, along with the year it is incurred and the maximum year it can be utilized, are provided below:
| Year incurred | Year can be used | 30 September 2024 | 31 December 2023 |
|---|---|---|---|
| 2019 | 2024 | 133.261.860 | 133.261.860 |
| 2020 | 2025 | 262.766.426 | 262.766.426 |
| 2021 | 2026 | 1.181.821.985 | 1.181.821.985 |
| 2022 | 2027 | 220.741.281 | 220.741.281 |
| 2023 | 2028 | 1.504.823.182 | 1.501.945.203 |
| 2024 | 2029 | 419.377.622 | - |
| 3.722.792.356 | 3.300.536.755 |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Revenue on sharing of imbalance savings |
8.113.715.749 | 8.582.279.081 | 2.723.065.033 | 2.290.071.057 |
| Electricity sales revenue | 8.088.249.887 | 13.753.335.573 | 3.767.789.046 | 4.547.313.776 |
| Revenue on seconder frequency | ||||
| control | 767.547.368 | 811.214.737 | 257.950.612 | 259.550.071 |
| Revenue on capacity mechanism | 337.869.516 | 210.725.787 | 203.276.846 | 52.601.289 |
| Revenue on loading orders | 220.736.001 | 2.035.257.623 | 37.201.711 | 517.598.211 |
| Other revenues | 575.319.767 | 626.271.122 | 185.867.954 | 222.950.646 |
| 18.103.438.288 | 26.019.083.923 | 7.175.151.202 | 7.890.085.050 |
| 1 January - 30 September |
1 January - 30 September |
1 July - 30 September |
1 July - 30 September |
|
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Direct raw materials consumed and cost of | ||||
| electricity purchased (*) | 15.237.095.902 | 21.547.567.369 | 6.028.178.988 | 6.452.658.528 |
| Depreciation and amortization expenses | 1.420.798.782 | 1.420.005.094 | 462.401.387 | 464.155.522 |
| Personnel expenses | 453.294.712 | 489.450.890 | 144.832.711 | 191.159.456 |
| Maintenance and repair expenses | 304.373.694 | 370.767.638 | 111.098.277 | 137.041.371 |
| Other materials and spare parts consumed | 141.486.113 | 126.148.345 | 49.741.914 | 48.646.158 |
| Insurance expenses | 118.683.927 | 124.661.580 | 36.298.311 | 36.527.632 |
| Other | 166.094.623 | 215.464.359 | 67.446.876 | 21.711.212 |
| 17.841.827.753 | 24.294.065.275 | 6.899.998.464 | 7.351.899.879 |
(*) Direct raw materials consumed comprised of cost of natural gas purchased, cost of energy purchased, imbalance sharing costs, system usage costs, and etc.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 1 January - | 1 January - | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 |
30 September 2023 |
30 September 2024 |
30 September 2023 |
|
| Direct raw materials consumed | ||||
| and | ||||
| cost of electricity purchased | 15.237.095.902 | 21.547.567.369 | 6.028.178.988 | 6.452.658.528 |
| Depreciation and amortization |
||||
| expenses (*) | 1.460.486.781 | 1.494.121.991 | 472.199.093 | 488.489.177 |
| Personnel expenses (**) | 692.163.046 | 685.894.105 | 225.535.290 | 253.108.559 |
| Maintenance and repair expenses | 304.373.694 | 370.767.638 | 111.098.277 | 137.041.371 |
| Other materials and spare parts | ||||
| consumed | 141.486.113 | 126.148.345 | 49.741.914 | 48.646.158 |
| Insurance expenses (***) | 121.384.254 | 126.348.037 | 37.151.565 | 36.991.692 |
| Consultancy expenses | 36.663.887 | 23.484.353 | 10.800.654 | 6.403.267 |
| IT expenses | 30.530.942 | 29.090.554 | 11.688.328 | 9.974.083 |
| Taxes and duties | 18.984.198 | 24.252.040 | 3.449.016 | 5.455.647 |
| Rent expenses | 16.435.756 | 1.718.355 | 6.116.210 | 461.543 |
| Vehicle expenses | 16.264.995 | 11.048.764 | 5.561.733 | 4.137.538 |
| Office expenses | 16.159.432 | 12.652.618 | 5.264.060 | 3.293.113 |
| Travel expenses | 9.035.199 | 12.702.154 | 2.967.953 | 5.089.308 |
| Advertising and sponsorship |
||||
| expenses | 2.079.336 | 1.917.013 | 755.009 | 903.717 |
| Other expenses | 213.851.519 | 252.449.630 | 92.795.339 | 46.928.474 |
| 18.316.995.054 | 24.720.162.966 | 7.063.303.429 | 7.499.582.175 |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Gains of futures and options | ||||
| market | 147.503.563 | 160.467.345 | 72.261.693 | 50.044.391 |
| Delay interests received | 57.751.485 | 141.647.077 | 1.163.225 | 16.997.862 |
| Foreign exchange gains from |
||||
| trading activities | 47.873.479 | 157.677.618 | 26.958.884 | 74.238.943 |
| Revenues from risk sharing |
||||
| agreements | 37.416.208 | - | 10.535.196 | - |
| Provisions no longer required (*) | 18.843.256 | 2.408.676 | (823.101) | 1.895.394 |
| Other income | 25.523.740 | 219.765.190 | 5.940.899 | 8.585.205 |
| 334.911.731 | 681.965.906 | 116.036.796 | 151.761.795 |
(*) As of 30 September 2024, TL 8.837.241 (30 September 2023: TL 728.839) of the provisions no longer required from litigation provisions, TL 4.454.315 from premium provisions (30 September 2023: None) and TL 5.551.700 from other no longer required provisions (30 September 2023: TL 1.679.837)
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Losses on futures and options | ||||
| market | 115.594.038 | 235.239.926 | 37.700.270 | 22.520.489 |
| Foreign exchange losses from | ||||
| trading activities | 32.968.901 | 136.900.561 | 5.857.143 | 66.174.729 |
| Delay interests charged | 17.383.510 | 19.407.478 | 1.049.147 | 2.656.904 |
| Provisions for litigations | 1.936.283 | 1.524.541 | (2.383.058) | 315.046 |
| Losses on risk sharing contracts | 103.581 | - | 103.581 | - |
| Other expenses | 62.342.322 | 30.156.575 | 14.941.993 | 22.880.227 |
| 230.328.635 | 423.229.081 | 57.269.076 | 114.547.395 |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Fair value difference gain on exchange | ||||
| rate protected deposit accounts | 2.371.142 | 61.248.811 | (48.615) | 45.419.538 |
| Dividend income | 72.825 | - | 72.825 | - |
| Profit on sale of property, plant and | ||||
| equipment | 53.247 | 48.970 | (194.062) | 30.107 |
| Other income | 602.506 | - | - | - |
| 3.099.720 | 61.297.781 | (169.852) | 45.449.645 |
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Fair value difference losses on exchange rate protected deposit accounts Other |
- 20.753.261 |
702.910 1.101.813 |
- 20.753.199 |
(43.977) 114.606 |
| 20.753.261 | 1.804.723 | 20.753.199 | 70.629 |
| 1 January - | 1 January - | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |
| 2024 | 2023 | 2024 | 2023 | |
| Foreign exchange gain | 160.840.835 | 687.490.248 | 1.495.722 | 118.463.088 |
| Interest income | 138.053.009 | 132.795.435 | 53.750.636 | 28.070.819 |
| Gain on derivative financial instruments |
27.321.643 | 102.015.447 | - | 12.566.074 |
| 326.215.487 | 922.301.130 | 55.246.358 | 159.099.981 |
| 1 January - | 1 January - | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |
| 2024 | 2023 | 2024 | 2023 | |
| Foreign exchange losses Interest and commission expenses Losses on derivative financial |
2.154.686.203 1.467.422.399 |
6.870.654.514 1.954.362.284 |
524.587.940 480.106.232 |
1.056.246.754 604.024.233 |
| instruments | 184.242.860 | 22.059.032 | 37.714.363 | 8.763.704 |
| Other financial expenses | 13.326.214 | 16.799.360 | 4.110.250 | 6.291.156 |
| 3.819.677.676 | 8.863.875.190 | 1.046.518.785 | 1.675.325.847 |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Sakarya Elektrik Perakende Satış A.Ş. ("Sepaş") (1) (**) | 225.495.969 | 900.383.354 | (9.725.234) | 250.460.048 |
| Aktek Bilgi İlet. Tekn. San. ve Tic. A.Ş. ("Aktek") (2) (**) | 37.992.945 | 31.802.460 | 8.462.641 | 13.452.081 |
| Aksa Akrilik Kimya Sanayi A.Ş. ("Aksa) (3) (**) | 31.356.160 | 42.527.565 | 13.557.486 | 9.617.294 |
| Dinkal Sigorta Acenteliği A.Ş. ("Dinkal") (4) (**) | 22.382.112 | 30.617.622 | 14.619.641 | 11.993.386 |
| Ak-Han Bak.Yön.Serv.Hiz.Güv.Mal. A.Ş. ("Ak-Han") (5) (**) | 21.687.419 | 21.566.368 | 6.490.537 | 7.699.158 |
| Cez a.s. (6) (*) | 11.322.771 | 33.005.115 | 3.043.533 | 5.694.749 |
| Akgirişim Müteahhitlik Müşavirlik Ve Çevre Teknolojileri | ||||
| San. Ve Tic. A.Ş. (7) (**) | 1.143.165 | 17.353.508 | (50.178) | 17.353.508 |
| Akiş Gayrimenkul Yatırım A.Ş. (8) ("Akiş") (**) | 966.418 | 44.143 | 346.167 | 44.143 |
| Akkök Holding A.Ş. ("Akkök") (9) (*) | 328.852 | 7.065.080 | 49.048 | 1.060.437 |
| Other | 60.123 | 1.457.117 | (2.639) | (99.103) |
| 352.735.934 | 1.085.822.332 | 36.791.002 | 317.275.701 |
(1) Comprised of purchase of electricity and sharing of instability savings.
(2) Comprised of IT services received.
(3) Comprised of sharing of instability savings.
(4) Comprised of insurances purchased from insurance companies by the intermediary of Dinkal.
(5) Comprised of building maintenance and other services received.
(6) Comprised of purchase of electricity.
(7) Comprised of service procurements related to the installation of solar power plant.
(8) Comprised of building maintenance and other services received.
(9) Comprised of rent service received.
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Sepaş (1) (**) | 667.347.934 | 8.289.959.295 | 417.146.429 | 2.547.029.510 |
| Cez a.s (2) (*) | 249.748.072 | 34.554.425 | 96.799.894 | (2.350.143) |
| Aksa (3) (**) | 24.297.488 | 59.362.573 | 7.404.953 | 18.633.050 |
| Akiş (4) (**) | 5.427.998 | - | 2.691.988 | - |
| Akkök Holding A.Ş. (5) (*) | - | 17.599.774 | - | 16.993.826 |
| Other | 41.797 | 535.016 | (686) | 201.710 |
| 946.863.289 | 8.402.011.083 | 524.042.578 | 2.580.507.953 |
(1) Comprised of sales of electricity and sharing of instability.
(2) Comprised of sales of electricity sharing of instability.
(3) Comprised of sharing of instability.
(4) Comprised of service procurements related to the installation of solar power plant.
(5) Comprised of vehicle rental and earthquake donation aids expense reflection.
(*) Shareholder.
(**) Akkök Holding group company.
(***) Cez a.s. group company.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| CEZ a.s. (1) (*) | 6.435.229 | 2.751.575 |
| Aksa (2) (**) | 2.325.007 | 4.605.037 |
| Akiş (3) (**) | 700.422 | - |
| Sepaş (4) (**) | - | 163.080.256 |
| Other | - | 40.659 |
| 9.460.658 | 170.477.527 |
(1) Comprised of receivables from sales of electricity.
(2) Comprised of receivables from sharing of instability.
(3) Comprised of service procurements related to the installation of solar power plant.
(4) Comprised of receivables from sales of electricity and sharing of instability.
The average maturity days of trade receivables from related parties is 20 days.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Dinkal (1) (**) | 19.925.866 | 189.349.737 |
| CEZ a.s. Turkey Daimi Tem. (2) (***) | 5.770.952 | 6.690.703 |
| Aktek (3) (**) | 4.996.858 | 8.240.722 |
| Aksa (4) (**) | 3.629.674 | 3.486.584 |
| Ak-Han (6) (**) | 2.737.423 | 3.186.865 |
| Akkök (5) (*) | 2.293.670 | 3.138.064 |
| CEZ a.s (7)(*) | 1.462.159 | 8.563.067 |
| Sepaş (8) (**) | 59.500 | 19.604.935 |
| Other | 19.200 | 589.854 |
| 40.895.302 | 242.850.531 |
(1) Comprised of payables to Dinkal for the insurances purchased from insurance companies by the intermediary of Dinkal.
(2) Comprised of the payables related to consultancy.
(3) Comprised of the payables related to IT services and equipment purchased.
(4) Comprised of the payables related to sharing of instability.
(5) Comprised of the payables related to office maintenance and management services received.
(6) Comprised of the payables related to consultancy and rent services received.
(7) Comprised of the payables related to electricity purchases.
(8) Comprised of the payables related to electricity and sharing of instability.
(*) Shareholder.
(**) Akkök Holding group company.
(***) Cez a.s. group company.
The average maturity days of trade payables from related parties is 30 days.
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
For the purpose of these consolidated financial statements, key management compensation consists of the payments made to Group shareholders and top management (General Manager and Vice General Managers and directors).
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Salaries and benefits | 29.337.594 | 28.069.409 | 10.151.352 | 7.939.701 |
| Bonus payment Attendance fee |
9.299.425 3.591.389 |
15.261.782 3.177.129 |
(408.189) 1.411.992 |
(1.037.996) 1.285.736 |
| 42.228.408 | 46.508.320 | 11.155.155 | 8.187.441 |
The Group is exposed to foreign exchange risk through the impact of rate changes in the translation of foreign currency. Foreign exchange risk arises from recorded assets and liabilities resulting from future commercial and financial transactions. In accordance with the Group's "Currency Risk Hedging Policies and Procedures," part of this risk is mitigated by offsetting foreign currency assets and liabilities, while the remaining portion is managed through spot foreign exchange purchases and derivative instruments. The Group management monitors and analyzes its net foreign currency position and takes balancing measures accordingly.
The details of the foreign currency assets and liabilities as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Assets | 1.360.104.526 | 1.735.095.488 |
| Liabilities | (18.049.614.472) | (16.978.793.906) |
| Net financial position | (16.689.509.946) | (15.243.698.418) |
| Net position of derivative instruments | (255.907.500) | (2.392.247.847) |
| Foreign currency position (net) | (16.945.417.446) | (17.635.946.265) |
As of 30 September 2024 and 31 December 2023, assets and liabilities denominated in foreign currency and their TL equivalent held by the Group:
| 30 September 2024 | 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| TL Equivalent | USD | Euro | Other | TL Equivalent | USD | Euro | Other | |
| Trade receivables | 166.649.026 | 4.668.282 | 192.882 | - | 189.431.802 | 4.232.250 | 455.624 | - |
| Monetary financial assets | 1.165.776.082 | 25.312.743 | 7.913.376 | 336 | 1.513.572.828 | 34.884.922 | 2.674.325 | 73 |
| Current assets | 1.332.425.108 | 29.981.025 | 8.106.258 | 336 | 1.703.004.630 | 39.117.172 | 3.129.949 | 73 |
| Monetary financial assets | 27.679.418 | - | 725.135 | - | 32.090.858 | - | 725.135 | - |
| Non-current assets | 27.679.418 | - | 725.135 | - | 32.090.858 | - | 725.135 | - |
| Total assets | 1.360.104.526 | 29.981.025 | 8.831.393 | 336 | 1.735.095.488 | 39.117.172 | 3.855.084 | 73 |
| Trade payables | 97.107.051 | 2.453.283 | 351.011 | - | 405.055.855 | 9.430.298 | 630.270 | - |
| Financial liabilities | 1.513.004.558 | 42.983.814 | 1.214.361 | - | 4.347.907.797 | 107.306.258 | 1.270.168 | - |
| Other monetary liabilities | 25.263.666 | 740.414 | - | - | 43.558.579 | 1.089.105 | - | - |
| Short-term liabilities | 1.635.375.275 | 46.177.511 | 1.565.372 | - | 4.796.522.231 | 117.825.661 | 1.900.438 | - |
| Financial liabilities | 16.333.539.313 | 474.467.802 | 3.778.311 | - | 12.093.979.868 | 296.932.692 | 4.930.622 | - |
| Other monetary liabilities | 80.699.884 | 2.365.109 | - | - | 88.291.807 | 2.207.580 | - | - |
| Long-term liabilities | 16.414.239.197 | 476.832.911 | 3.778.311 | - | 12.182.271.675 | 299.140.272 | 4.930.622 | - |
| Total liabilities | 18.049.614.472 | 523.010.422 | 5.343.683 | - | 16.978.793.906 | 416.965.933 | 6.831.060 | - |
| Net Asset(Liability) Position of Statement of Financial | ||||||||
| Position Derivative Instruments | (255.907.500) | (7.500.000) | - | - | (2.392.247.847) | (59.813.914) | - | - |
| Off statement of financial position foreign currency derivative | ||||||||
| assets | - | - | - | - | 27.439.899 | 686.086 | - | - |
| Off statement of financial position foreign currency derivative | ||||||||
| liabilities | 255.907.500 | 7.500.000 | - | - | 2.419.687.746 | 60.500.000 | - | - |
| Net foreign currency asset/(liability) position | (16.945.417.446) | (500.529.397) | 3.487.710 | 336 | (17.635.946.265) | (437.662.675) | (2.975.976) | 73 |
| Net foreign currency asset/(liability) position of monetary | ||||||||
| items | (16.689.509.946) | (493.029.397) | 3.487.710 | 336 | (15.243.698.418) | (377.848.761) | (2.975.976) | 73 |
| Total fair value of financial instruments used for foreign | ||||||||
| currency hedging | 31.246.287 | 915.749 | - | - | 34.496.730 | 1.171.836 | - | - |
| Export | 692.583.159 | 14.580.459 | 6.208.436 | - | 1.426.981.236 | 17.029.604 | 24.833.311 | - |
| Import | 550.485.368 | 16.160.479 | 832.613 | 600 | 910.360.206 | 20.783.882 | 7.592.492 | 7.228 |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD and EURO. As of 30 September 2024 and 31 December 2023, the following table details of Group's sensitivity to a 10% increase and decrease in the TL against relevant foreign currencies, all other variables held constant. The sensitivity analysis includes only monetary items in open foreign currency at the end of the year.
| 30 September 2024 | ||||
|---|---|---|---|---|
| Profit /Loss | Equity | |||
| Appreciation | Depreciation | Appreciation | Depreciation | |
| of | of | of | of | |
| foreign | foreign | foreign | foreign | |
| currency | currency | currency | currency | |
| +/- 10% fluctuation of USD rate against to TL | ||||
| 1- USD net asset/liability | (1.682.265.606) | 1.682.265.606 | - | - |
| 2- Part of hedged from USD risk (-) | - | - | - | - |
| 3- USD net effect (1+2) | (1.682.265.606) | 1.682.265.606 | - | - |
| +/- 10% fluctuation of EUR rate against to TL | ||||
| 4- EUR net asset/liability | 13.313.077 | (13.313.077) | - | - |
| 5- Part of hedged from EUR risk (-) | - | - | - | - |
| 6- EUR net effect (4+5) | 13.313.077 | (13.313.077) | - | - |
| +/- 10% fluctuation of other currencies rate against to TL 7- Other currencies net asset/liability |
1.534 | (1.534) | - | - |
| 8- Part of hedged from other currencies risk (-) | - | - | - | - |
| 9- Other currencies net effect (7+8) | 1.534 | (1.534) | - | - |
| Total (3+6+9) | (1.668.950.995) | 1.668.950.995 | - | - |
| 31 December 2023 | ||||
|---|---|---|---|---|
| Profit /Loss | Equity | |||
| Appreciation of | Depreciation | Appreciation of | Depreciation of | |
| of | ||||
| foreign | foreign | foreign | foreign | |
| currency | currency | currency | currency | |
| +/- 10% fluctuation of USD rate against to TL | ||||
| 1- USD net asset/liability | (1.511.200.028) | 1.511.200.028 | - | - |
| 2- Part of hedged from USD risk (-) 3- USD net effect (1+2) |
- (1.511.200.028) |
- 1.511.200.028 |
- - |
- - |
| +/- 10% fluctuation of EUR rate against to TL | ||||
| 4- EUR net asset/liability | (13.170.185) | 13.170.185 | - | - |
| 5- Part of hedged from EUR risk (-) | - | - | - | - |
| 6- EUR net effect (4+5) | (13.170.185) | 13.170.185 | - | - |
| +/- 10% fluctuation of other currencies rate against to TL | ||||
| 7- Other currencies net asset/liability | 371 | (371) | - | - |
| 8- Part of hedged from other currencies risk (-) | - | - | - | - |
| 9- Other currencies net effect (7+8) | 371 | (371) | - | - |
| Total (3+6+9) | (1.524.369.842) | 1.524.369.842 | - | - |
FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2024
Amounts expressed in Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2024 unless otherwise indicated.)
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The estimated fair values of financial instruments have been determined by the Group, using available market information and appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Group could realize in a current market exchange.
The following methods and assumptions have been used in estimating the fair value of financial instruments:
It is anticipated that the carrying values of financial assets, including cash and cash equivalents, measured at cost, are equal to their fair values due to their short-term nature.
The carrying values of trade receivables along with the related allowances for uncollectability are estimated to be their fair values.
The fair values of short-term bank borrowings and other monetary liabilities are considered to approximate to their respective carrying values. The carrying values of the long-term bank loans of the Group reflect their fair values due to the repricing of the loans within the scope of the Financial Restructuring made on 11 November 2019 and the amendment made on 20 September 2024.
The Group classifies the fair value measurement of each class of financial instruments according to the source, using the three-level hierarchy, as follows:
Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)
Level 2: Other valuation techniques include direct or indirect observable inputs
Level 3: Valuation techniques do not contain observable market inputs
As of 30 September 2024, the Group has short-term liabilities of TL 31.246.287 (31 December 2023: TL 51.570.477) related to derivative financial instruments classified as level 2. As of 30 September 2024, the Group does not have long-term liabilities related to derivative financial instruments (31 December 2023: None). As of 30 September 2024, there is no short-term derivative financial asset (31 December 2023: TL 4.703.103).
Fair value of the lands, land improvements, buildings, machinery and equipment of the Group's power plants were measured by a professional independent valuation company on 31 December 2023 through other valuation techniques involving direct and indirect observable inputs (Level 3) (Note 2.6).
None.
……………………………..
(36)
Have a question? We'll get back to you promptly.