2017 was confirmed as a year which volatility had become the new norm across the world. Unlike what we are accustomed to, we have entered a new era. Today, political, social and economic uncertainties prevail not only in underdeveloped and emerging markets, but also in the developed world.
A regional glance reveals that we have left behind a year where major geopolitical developments transpired – in Iran, Southern Cyprus and Greece in addition to Syria and Iraq – across our surrounding region which directly impacted the Turkish economy.
In Turkey, two major macroeconomic trends determined the course of the economy in 2017: First, the Turkish government adhered to its reform agenda in the face of global and regional challenges. Second, growth and development of markets were supported with various mechanisms led by the Credit Guarantee Fund (KGF). Thanks to these two factors, Turkey’s economic growth outperformed forecasts in 2017.
These global, regional and local dynamics impact our Company and the way we conduct our business. After all, as a popular modern-day expression: Turcas is a “resilient company” against challenges. The Company has stood out with its entrepreneurial reputation for 87 years. Turcas has facilitated billions of dollars of foreign direct investment by multinational corporations in every business line it operates. Just as Turkey continues to grow regardless of major challenges, we, as Turcas, maintain both our resilience against rapidly changing market conditions and our vision for growth despite all the risks we encounter.
Looking across our business, Shell & Turcas Petrol, our subsidiary operating in fuel distribution and lubricants, recorded strong profitability in 2017 while maintaining market leadership and its pioneering position in the sector. The 800 MW Denizli Natural Gas Fired Combined Cycle Power Plant, owned by our subsidiary in conventional electricity production RWE & Turcas South Power Generation, achieved a technically excellent performance by leveraging its advanced technology competitive edge. In the renewable energy segment, we are proud that the project of Kuyucak Geothermal Power Plant with 18 MW installed capacity in Aydın began commercial operation in Q4 as planned.
The Republic of Turkey is going through a period of major challenges with both national and regional dimensions. To help our country emerge from this historic turn stronger than ever, we, as Turcas Family, are working as hard as ever to create value for our country. I would like to thank all our stakeholders, my colleagues, and our shareholders, who place their trust in our vision and invest in our Company, for sharing this journey with us for 87 years.
Chairman of the Board of Directors