Dear Stakeholders, Visitors,
2020 was a difficult year for our country, company and all of us. We left an enlightening yet unforgettable year behind through experiencing ever-accelerating alterations in both corporate and social life in consequence of the Covid-19 outbreak. The highest priority at our agenda last year was the health and security conditions of our employees and their families while operational and financial sustainability of our company arose thereafter. We have experienced the importance of agility and endurance together which are expressed frequently. We operated a transition process in our company and subsidiaries with confronting difficulties of pandemic and we continued our investments unceasingly in the direction of our objectives as well as relying on our country. It is my firm belief that we will start to receive the fruits of our new investments in the upcoming period.
Now, let’s take a brief glance at the 5 sectors that we operate in (fuel distribution, power generation, tourism, real estate and international trade, respectively):
1. Our flagship subsidiary and the leading player of the Turkish fuel distribution and lubricants industry, Shell & Turcas has been deeply affected by the pandemic. Despite the negative impacts of (i) the lockdowns, (ii) a vast amount of inventory loss by oil price declines, (iii) narrow profit margins, (iv) the competition authority fines, and similar challenges, Shell & Turcas has remained to be the most preferred fuel brand in Turkey as well as successfully accomplishing the renewals of the maturing contracts of more than 600 dealers and completing the related investments. In fact, by the end of the year, we managed to increase the total number of fuel stations from 1030 to 1070 by adding 40 new sites to our most valuable network, and now, we aim to reach 1100 within 2021. Our Derince Lubricant and Grease Production Plant maintained its exports to over 60 countries worldwide. Therefore, we have entered the upcoming 5-year period with a dealer network that preserves and improves the leading position of Shell & Turcas, focussing on profitability goals, being well-prepared for increasing our market share and great hopes in brief.
2. Operating under the RWE & Turcas joint venture company, Denizli Natural Gas Fired Combined Cycle Power Plant was our relatively-less-affected subsidiary by the pandemic. In fact, we achieved the highest capacity utilization rate in 2020 since the beginning of our operations in 2013 as the results of effective strategies and climate impacts.
18 MW Turcas Kuyucak (Aydın) Geothermal Power Plant did not get affected by the pandemic, as well. We uninterruptedly maintained our production and investments with self-will and intense work pace. Due to the pandemic caused delays in delivery of the new equipment and supply, we proceeded with our investments and in the end re-maximized our production output. Occupational health & safety efforts, zero occupational accident policy, quality & environment works remained to be in the forefront as usual. We were highly motivated by obtaining the “Integrated Management System'' certificates at the end of 2020.
3. Conrad Istanbul Bosphorus, the flagship investment of Aksoy Holding in tourism, has been most impacted, however, thanks also to the short working hours support by the Government, we achieved to keep the hotel open at all times and retain employment in spite of the extremely low occupancy rates seen for the first time in 28 years of operation. Despite the moral support with the progress that started mid-year, occupancy rates decreased again with the second wave of the pandemic. We are excited about the progress in vaccines for operational months and years following Q2 2021. This gives us major hope for the future. Despite all, we were recognized in such an unprecedented period, with 3 awards at the 2020 edition of the World Travel Awards that is known for rewarding excellent hotels in the USA, Middle East, Africa and Europe. With a proven success to receive the awards of “Europe's Leading City Hotel” and “Turkey's Leading Conference Hotel'' for the last three years, we were also proud of being awarded as “Turkey's Leading Business Hotel” in addition to these 2 awards in 2020 and also increasing our motivation for the future.
4. We continued the construction works of our high-end real estate project Epique Island without losing velocity and achieved completion in the beginning of summer 2020. Thanks to its top notch features and quality, Epique Island got re-branded by The Ritz-Carlton - the most luxurious brand of the Marriott International, world’s leading hospitality and hotel management company - as The Ritz-Carlton Residences, Bodrum, making us the first stand-alone residence project for the group in Europe, Middle East and Africa. Our iconic property will be managed by The Ritz-Carlton for the next 30 years as of Q2 2021 with a dedicated residential management team committed to delivering the world-renowned legendary service of the brand. Aksoy Holding and The Ritz-Carlton Residences, Bodrum will retain their meaningful contributions to the high value-added tourism and real estate revenues of Turkey.
5. Operating in the fields of export, transit trade and distribution of the world-renowned lubricant brands such as Shell, Hyundai Oilbank, Gazpromneft and Rosneft, our subsidiaries Aksoy International & Aksoy Middle East well sustained their international operations in 2020. Although we couldn’t fully reach our sales targets due to the pandemic, we are confident to regain all lost revenues of the year in 2021 and even expand our geographic reach by extending our supply and distribution network to West Africa.
We are aware that companies should have responsibility to their communities alongside their financial sustainability. Hence we pay regard to environmental and social impacts of all our services and operations. We, as Aksoy Holding, take crucial responsibilities to leave a healthy future for next generations in terms of sustainable energy, efficient use of natural resources, waste minimization, recycling and also defining our operational principles accordingly.
On the other hand, we continue to make contributions to the community with social responsibility projects on education, environment, culture, arts and sports. We keep providing service and adding value to all our sectors of operation with 43 years of experience, financial power, dignity, human resources as well as our business approach based on excellence, assiduity, integrity and ethical values.
On behalf of our Board of Directors, I would like to extend my sincerest thanks and regards to all our staff and stakeholders who have trustfully accompanied us along our journey that aspires to realize investments for our country through generating innovative ideas and creating added value.
CEO & Vice Chairman