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UPDATE 1-Turkey's Sabanci looks for income boost after flat 2012
March 7, 2013 / 3:06 PM / 5 years ago

UPDATE 1-Turkey's Sabanci looks for income boost after flat 2012

* Sabanci expects higher sales, profit from energy arm

* Plans IPO for its energy, insurance units (Adds details, quotes)

ISTANBUL, March 7 (Reuters) - Turkey’s Sabanci Holding said it expects the start of hydropower plants this year to boost income after posting a slip in net profit for 2012 on Thursday.

Net profit slipped to 1.86 billion lira ($1.03 billion) from 2011’s 1.88 billion despite sales rising 9 percent to 11.6 billion lira.

Fourth-quarter net profit was 657.3 million lira and sales were 3.03 billion, according to calculations by Reuters.

“Our hydropower plant projects will become operational in 2013 and 2014 and will have a significant contribution on our income and profitability in the coming years,” Chief Executive Zafer Kurtul said.

Slower economic growth in Turkey last year hit corporate profits. Despite the slowdown, Sabanci exceeded its targets, it said.

Sabanci shares rose 3.4 percent after the income statement. They gained 85 percent in 2012, outperforming the stock exchange’s 52 percent advance.

Initial public offerings for energy unit Enerjisa and insurer Avivasa will boost Sabanci share values further, said, without specifying dates for these.

Sabanci’s growth this year will exceed that of the wider Turkish economy, which the government projects will expand to about 4 percent, Kurtul said.

1 = 1.798 liras Writing by Ece Toksabay; editing by Ayla Jean Yackley and Jason Neely

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