Investment Journal

Galata Wind was established in 2006 and has become a subsidiary of Dogan Sirketler Grubu Holding A.S. since 2012. The company undertook an IPO in April 2021 and its shares have been publicly traded in Borsa Istanbul since then. Being publicly listed with this successful IPO allowed the company to raise equity capital and strengthened its financial structure.

Galata Wind produces renewable energy from solar power plants and wind turbines. Company operates 3 wind farms (in Balikesir, Mersin and Bursa) and 2 solar photovoltaic plants (in Corum and Erzurum) across Turkiye. It is noteworthy to emphasize that Galata Wind has a low geographical diversification in their portfolio. Hence, expanding its operations across different countries may allow the firm to be less exposed to political instability in Turkiye. In this respect, the company in July 2023 established a renewable energy company entitled “Galata Wind Energy Global BV” as a 100% subsidiary of Galata Wind A.S. to increase their solar power capacity.[1]

One important area that the company generates revenue with great future potential is carbon removal markets. Between January and March in 2023, Galata Wind sold roughly 230.849 tonnes of carbon removal certificates with the price around $5.3 in the first quarter, which accounted for 7.8% of the revenue.

Financial performance of the company seems to improve in the first quarter of 2023. Earnings per share impressively increased from 0.34 to 0.44. In the first half of 2023, the company’s revenue increased 16%, gross profit increased 6% while net profit increased by 29%. Total installed power of the firm was 269 MW and 235 MW of this energy generation was due to wind power. Company increased its pre-tax profits by 15.1% to 481.29 million TL.

Galata Wind set up a 2025 strategy which highlighted the focus on potential growth areas, increased revenues from selling carbon removal certificates, maintaining the financial strength of the firm with low debt ratios and optimizing the operational productivity. By 2025, the company is ambitiously planning to almost double its generation capacity from 269 MW to 550 MW. It also aims to reduce its scope 1 to zero by then.

Firm outsources the construction and maintenance of its wind and solar power plants, which casts doubts on the sustainability of the company’s business model. Nevertheless, Galata Wind published its first sustainability report in June 2023 and pledged to implement water-saving, zero-waste, recycling and circular economy policies.

Like many other countries, Turkiye will need to replace its fossil fuel with renewable energy sources to achieve its net zero target. In this regard, the company has great future potential to grow by providing clean energy to increasing energy demand in Turkiye.



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