Nalan Erkarakaş, the Chairman of Park Elektrik Üretim Madencilik AS, stated that there was growth of 23 percent with total assets according to balance sheet of the end of 2008 in the first 6 months following merger of two Companies.
Ciner Group, which is one of the leading groups of Turkey, merged two public Companies under the name of Park Elektrik Üretim Madencilik San ve Tic A.S. Nalan Erkarakaş, who is Chairman of the Board of the Company and Group Chairman of Ciner Group of Capital Markets, obtaining profit of 42 percent in the first half of 2009 despite of goods prices in global crisis, attracted attention that upstream movement in goods prices affects the Company positively in the last period. Erkarakaş answered our questions as follows:
What are targets of the Group after merger of two Companies?
Merger of Park Elektrik and Ceytaş, which was completed in May, 2009, brought ISE (Istanbul Stock Exchange) with a Company that carries out activity on mining and energy. The commercial title became Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.S. after the merger. Park Elektrik will have established power of 50,5 MW planned to start investment in 2010 in addition to copper mine and asphaltite mine activities that are currently carried out. It incorporates license on establishing and operating hydroelectric power plant. Our Company closely follows new growth possibilities in these two favorite sectors.
The first balance sheet was explained after the merger. How do you evaluate balance sheet data?
Balance sheet of 6 months, which has importance for being the first balance sheet explained by Park Elektrik after the merger, refers to important growth of 89 percent in real assets and of 23 percent in total assets. Financial results of the Company of 6 months have importance in terms of inclusion of asphaltite started to be produced in Silopi mine field into activities for the first time. Sales of asphaltite, which was started to be produced in the second quarter and has level of 46.245 tons, is planned to be within the range of 300.000-400.000 tons in total, in 2009. Participation of asphalite sales of 1,85 million TL in the second quarter of 2009 to total sales income in the second quarter is at a level of 11%.
WE ARE AMONG 30 SHARES THAT ARE TREATED AT THE MOST AFTER THE MERGER
Could Park Elektrik create value for small investors with the merger?
Stock certificates of Park Elektrik reaching total assets size of 349.9 million TL as of June 2009 are treated with market value of 452 million TL (303 million dollars) as of August 19th, 2009. Last market values before the merger of Park Elektrik and Ceytaş, which were merged as of May 22nd, 2009, were at a level of 331 million Liras. The Company had market value of 491 million Liras after the merger. Affect of synergy created by the merger and positive perspective on the market value was felt similarly in transaction volume of Park Elektrik. While total daily transaction volume of two Companies before the merger was at a level of 14 million Liras, average daily transaction volume of Park Elektrik of August 2009, reached 21 million Liras. The Company took place among 30 shares, which are treated at the most, in ISE after the merger with these figures. Our Company took place on the list of Fortune 500 and ISO 500, in 2009.
COPPER SALES INCREASED
Concentrated copper sales, which consist large part of sales revenue of 35 million 698 thousand Liras as of the end of June and are produced within the plants located in Siirt Madenköy, increased by 21 percent on amount basis when compared to the same period of last year. Concentrated copper sale, which was 26.113 dmt in the first 6 months of the year, was at a level of 31.600 dmt this year. However, as everyone knows, goods prices of the world decreased considerably due to global crisis. Copper prices were affected by this situation. Endorsement obtained by the Company from copper decreased to 26 percent when compared with the same period of the last year. But there is a pleasing development here, gross profitability of the Company protected its level with the rate of 42 percent despite of this decrease.
Goods prices are increasing with decrease of global crisis effect
Goods prices seem to be with upright trend again with the effect of request occurring in the world in current months. Copper prices are increasing. It is expected that these developments in global copper prices affect Company activities positively in the forthcoming periods. Copper prices, which continue in a fluctuating way in parallel with other goods prices in the last 18 months, had the level of 9000 dollars per ton, in 2008. However, it was decreased to 3.000 dollars within 2009 in parallel with deepening global crisis. Ton of copper prices was re-recovered up to levels of 6.115 dollars as of August 18th in within the global markets where expectations has been recovered within the last period.
