Message from the CEO

Dear Shareholders,

2017 started under a pessimistic cloud due to the coup attempt and the terror attacks throughout 2016. Growth estimates were around 2.5-3%, and the Turkish Lira was depreciating at an alarming rate against the US Dollar.

The risks were mitigated by measures taken to improve domesticdemand, which had a positive impact on growth. The Turkish economy grew by 11.1% in the third quarter of 2017, and Turkey achieved the highest growth among the G-20 countries.

The unemployment rate at the beginning of 2017 was high at 12%, but subsequently fell to 10.3%. We anticipate that the current account deficit, unemployment, growth, foreign debt, loan/deposit ratios and the budget deficit will also be on the agenda of the Turkish economy in 2018.

Our fundamental strategy at Akenerji is to operate our existing power plants at the optimum level in line with market prices, and to develop new projects that will create added value for our company. As one of the most prominent energy producers in Turkey, Akenerji consistently provides quality service to our country.

The Company has over 28 years experience in the energy sector. We expanded our capacity at the Ayyıldız Wind Power Plant, commissioned at the beginning of the year, and our installed power reached 1224 MW. Meeting approximately 3% of Turkey’s energy requirement, Akenerji continues to be one of the leaders in the sector.

Despite the fluctuations in the global financial markets, difficulties in the energy sector and deepening concerns about risk and fragility, Akenerji meticulously selected the best opportunities and boosted electricity generation and sales in 2017.

Following optimal strategies and measures, the Company crowned a successful financial and operational performance. Our total assets reached TL 5.798 million and our turnover TL 1.855 million in 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to TL 127 million, and all loan debts that matured in 2017 were covered by the Company’s capital.

Since all hydroelectric power plants and wind power plants in our portfolio benefited from Renewable Energy Resources Support Mechanisms (RERSM), a natural hedge mechanism was created against the risk of foreign exchange losses on US Dollar based sales. The Group’s exposure to exchange risk was further minimized by a refinancing loan received from Yapı ve Kredi Bankası A.Ş., a portion of which was obtained in TL on September 30, 2015. Alert to all short and long-term liabilities, Akenerji took the necessary steps to sustain its operations with a healthy financial structure and a proactive approach.

The Company improved capacity opportunities at our renewable energy plants in 2016. At that time, we were at the final stages of the investment to expand the installed power at Ayyıldız Wind Power Plant by 13.2 MW to 28.2 MW. All works were completed within less than a year, and the investment was commissioned in 2017.

According to the Gold Standard criteria for Greenhouse Gas Emission Reduction, the capacity enhancement at Ayyıldız power plant corresponds to the electricity requirement of approximately 15,000 houses.

Our market research is ongoing while we continue adding new wind and hydroelectric power plants to our portfolio of energy generation from renewable sources.

Akenerji continues to create added value to energy efficiency. In 2015, we took an innovative step in the energy sector with our Energy Services mission. We demonstrated our ability to take fast, innovative and competitive steps, proving that the added value and recognition claimed throughout our projects was well deserved. Akenerji Energy Services has reached 47% efficiency in electrical energy and 89% efficiency in natural gas for projects implemented without any additional investment costs, equaling its own record from 2016. Energy services, together with efficiency projects and engineering services, have demonstrated once more that the Akenerji family is a competent leader in every aspect of the energy sector.


Energy trade is one of the key areas of activity which add value to Akenerji without incurring asset based capital expenditure. In 2017, Akenerji enhanced the services it offers to the market, took precautions against risks, and achieved a successful year in terms of operational profitability.

Akenerji produced 5.70 TWh of electricity in 2017, 11% of which is from renewable resources. This corresponds to 54% more electricity generation than in 2016. Our total trade volume in 2017 was 10.2 TWh.

As in the previous year, our power plants participated in RERSM (the Renewable Energy Resources Support Mechanism). Consequently, we were able to sell the electricity we generated in foreign currency (US Dollars) and created added value. Thus, we earned 66% more income when compared to the trading reference, Day-Ahead Market.

As in previous years, we continued our success and awards for our social responsibility and sustainability activities in 2017. In all of our activities, our fundamental principles were to add value to our country, respect the environment and be of benefit to society. We reiterated that water is vital for us this year, and we continued to do our best to protect water sources to pass on to future generations. These efforts were appreciated by CDP, the world’s strongest and most efficient non-governmental organization, which focuses on the protection of natural resources. Akenerji won the CDP 2017 Water Leadership Award in 2017.

We reinforced our respect for society through informative meetings for local communities organized in our power plant regions, and by high-standard environmental and society-friendly service concepts with our GRI Sustainability Report.

The Company’s achievements were not limited to these. Akenerji was voluntarily assessed within the Borsa İstanbul (BIST) Sustainability Index, consisting of companies with excellent corporate sustainability, traded on Borsa İstanbul, and qualified to be included in the index between November 2017 and October 2018.

Akenerji’s pioneering steps in the energy sector were deemed noteworthy and again rewarded this year when we received an award at the 8th Turkish Energy Summit, which hosted leading names from the energy world.

One of our projects, whereby we deliver books and contribute to the education of students studying at schools around our power plants, won the Golden Voltage award in the Social Responsibility category.

We hope 2018 will be a better and more predictable year for the energy sector. Full liberalization of the energy market is only possible through the liberalization of the natural gas market together with the electricity market.

A transparent, competitive and predictable market system is vital for the operation of power plants, to sustain their activities, and for new investments that will ensure power supply security in both the medium and long term.

Despite the uncertainties and difficulties all over the world, in Turkey and in our sector in 2017, at Akenerji we believe we achieved our goals of being participative, cooperative and team players, the qualities most required at these times. Through powerful teamwork, cooperation and harmony between our employees we pulled through the difficult times we experienced during the year. We emerged from these difficulties in the best possible condition.

We believe our approach will also be sustainable in 2018.



Chief Executive Officer