Sailing Through Inflation: Hat-San’s Strategic Expansion and the Billion-Lira Panamax Pivot

1. Introduction

The maritime industry is a theater of staggering proportions, where steel behemoths the size of skyscrapers are maintained and birthed through an intricate industrial ballet. In the heart of Turkey’s maritime corridor, Hat-San has emerged as a formidable player, transitioning from a private family-backed venture into a trailblazing public entity. Since opening its ledger to the global investment community, the company has navigated the classic industrial tension: aggressive physical expansion versus the accounting complexities of a volatile, high-inflation economy.

2. The BIST Pioneer: Breaking the “Dry Dock” for Investors

On September 22, 2023, Hat-San secured its place in history as the first shipyard in Turkey to list on Borsa İstanbul (BIST). This milestone, executed under the stewardship of Pekar Grup, brought unprecedented institutional transparency to an industry traditionally defined by private ownership and heavy capital requirements. By debuting on the Ana Pazar (Main Market), Hat-San effectively invited the public to capitalize on Turkey’s growing dominance in ship repair and specialized construction.

“The public offering consisted of 33,462,907 TL in capital increase and 10,837,093 TL in partner sales, resulting in 44,300,000 TL in nominal capital being offered to the public and bolstering the company’s issued capital to 221,500,000 TL.”

This move was more than a capital raise; it was a pivot toward a new era of corporate governance. For an industry where assets are measured in thousands of tons, the transition to public listing ensures that performance is now also measured in shareholder value and audited financial rigor.

3. Scaling Up: The 19,000-Ton Panamax Pivot

While the shipyard is well-known for its HS25 “HULK” dock—a 25,000-MT lifting capacity behemoth completed in 2022—the company’s latest strategic expansion arrived on November 13, 2025. Hat-San successfully launched its new Panamax floating dock, a massive structure measuring 230 meters in length and 46.4 meters in width with a 19,000-ton lifting capacity. This project represents a targeted investment in the Panamax vessel class, designed to increase global competitiveness by providing high-tier repair services to larger merchant fleets.

This infrastructure growth is backed by significant financial weight, with over 1.44 billion TL invested in tangible assets during the 2025 cycle. By absorbing these costs now, Hat-San is positioning itself to handle a higher volume of heavy-tonnage maintenance, effectively future-proofing its revenue streams against shifting global trade routes.

4. The Global Fleet: From Yalova to the Arctic

Hat-San’s engineering prowess extends far beyond standard repairs, reaching into highly specialized niches that demand extreme technical precision. The company’s portfolio is diverse, featuring the delivery of the “M/T Kaya Bener” bunker tanker and rugged icebreaker tugs designed for the Ukrainian fleet. Furthermore, the delivery of “Live Fish Carrier” vessels for Norwegian owners highlights a sophisticated ability to serve high-tech aquaculture markets in unforgiving climates.

This industrial reach is supported by a massive physical footprint in Yalova. In 2021, Hat-San reached a critical scale by acquiring a neighboring shipyard, bringing its total operational area to 100,000 m². This expansion allows for the simultaneous management of new-build projects and intensive repair cycles, diversifying the company’s risk across multiple maritime sub-sectors.

5. The Financial Paradox: Resilient EBITDA Amidst Inflationary Shocks

The 2025 financial data presents a classic “accounting paradox” often seen in hyper-inflationary environments. While Hat-San maintained strong top-line momentum with 4.73 billion TL in net sales, the balance sheet recorded a net loss of 191.3 million TL. This figure, however, is largely a non-cash reporting phenomenon driven by “TMS 29” (High Inflation Accounting), which requires adjustments to reflect the erosion of purchasing power on non-monetary assets.

Crucially, the company’s operational core remains robust, with an EBITDA of 234.5 million TL for 2025. While the “red ink” on the net profit line might catch a casual observer’s eye, a technical analysis reveals a business that is operationally profitable and actively absorbing the costs of massive physical expansion.

6. Beyond Ships: The World-Class Powership Niche

One of the most technically demanding segments of Hat-San’s portfolio is its conversion business, particularly the integration of naval architecture with energy engineering. The shipyard famously completed the “Karadeniz Powership Osman Khan,” the world’s largest energy ship conversion. This high-barrier-to-entry niche involves transforming existing hulls into floating power plants capable of providing rapid electricity to coastal regions.

Hat-San continues to dominate this space, having signed contracts for two additional energy ships as recently as 2023. These projects demonstrate a level of engineering sophistication that few global yards can match. By repurposing massive industrial assets for the global energy market, Hat-San provides a unique, sustainable solution that bridges the gap between traditional shipbuilding and essential infrastructure.

7. Conclusion: Navigating Future Waters

As we look toward 2026, Hat-San is entering a harvest period for its recent investments. The new 19,000-ton Panamax floating dock received its official operating permit on January 27, 2026, and has already commenced activities. This immediate transition to revenue-generation signals that the heavy investment costs of 2025 are beginning to translate into operational cash flow.

The question remains: is Turkey poised to become the world’s premier “maritime hospital” and engineering hub? Hat-San’s trajectory suggests that by combining aggressive infrastructure growth with the agility to navigate economic volatility, the Turkish maritime sector is well-positioned to command a larger share of the global blue economy.

Briefing Document: Hat-San Gemi İnşaa Bakım Onarım Deniz Nakliyat Sanayi ve Ticaret A.Ş. (2025 Annual Review)

Executive Summary

This briefing document provides a comprehensive analysis of the 2025 fiscal year activities and financial standing of Hat-San Gemi İnşaa Bakım Onarım Deniz Nakliyat Sanayi ve Ticaret A.Ş. (Hat-San). Established in 2008 and headquartered in Istanbul, Hat-San is the first Turkish shipyard to be listed on Borsa İstanbul (BIST), having completed its IPO in September 2023.

The 2025 fiscal year was marked by a significant operational milestone: the completion and launch of a 19,000-ton lifting capacity (TLC) Panamax floating dock, representing a substantial capital investment intended to bolster long-term production and repair capabilities. However, the period also saw a shift in financial performance, moving from a net profit in 2024 to a net loss of approximately 191.3 million TL in 2025. This downturn is attributed to global cost pressures, sectoral fluctuations, and the implementation of high-inflation accounting (TMS 29). Despite the current loss, the company maintains a strong equity structure (5.8 billion TL) and is focusing on operational efficiency and high-value-added projects to restore profitability.

——————————————————————————–

1. Corporate Profile and Governance

1.1. Ownership and Capital Structure

• Parent Company: Hat-San is a subsidiary of Pekar Grup İnşaat A.Ş., which holds a 79.80% stake. Pekar Grup is a diversified conglomerate involved in mining, construction, foreign trade, and energy.
• Capitalization: As of December 31, 2025, the company has an authorized capital ceiling of 940 million TL and a fully paid-in capital of 221.5 million TL.
• Share Classes: The capital is divided into Group A (privileged) and Group B shares. Group A shareholders (the Pepe family) hold the privilege of nominating board members and possess 2 votes per share in general assembly meetings.
• BIST Listing: The company’s shares trade on the BIST Main Market under the ticker “HATSN.” Its market value as of year-end 2025 was approximately 8.56 billion TL.

1.2. Management and Personnel

• Board of Directors: Led by Chairman Mehmed Halid İsmail Pepe. The board consists of five members, including two independent directors (İsmail Vural and İrfan Gündüz).
• Workforce: The company employed 333 personnel as of December 31, 2025. Labor relations are governed by a collective bargaining agreement with the Turkish Port, Dock, and Shipbuilding Workers’ Union.
• Governance Committees: The board is supported by an Audit Committee, a Corporate Governance Committee, and an Early Detection of Risk Committee. In late 2025, a Sustainability Committee was also established.

——————————————————————————–

2. Operational Overview

2.1. Core Business Segments

Hat-San operates in three primary areas of the maritime industry:

1. New Shipbuilding: Construction of various vessels including bunker tankers, fishing trawlers, and specialized floating structures (e.g., floating docks for the Turkish Navy and international clients).
2. Repair and Maintenance: Providing comprehensive services such as sandblasting, engine maintenance, ballast water management system (BWTS) installation, and scrubber system integration.
3. Conversion Projects: Executing complex revisions, including vessel lengthening and the conversion of ships into specialized energy vessels (e.g., “Karadeniz Powership Osman Khan”).

2.2. Key 2025 Milestone: The 19,000 TLC Floating Dock

A central highlight of the 2025 activity report is the completion of the 19,000-ton lifting capacity floating dock.

• Specifications: 230 meters long and 46.4 meters wide.
• Timeline: Construction was completed and the dock was launched on November 13, 2025. Following testing and legal procedures, it received its operating license and commenced activities on January 27, 2026.

——————————————————————————–

3. Financial Performance and Analysis

3.1. Key Financial Indicators (2025 vs. 2024)

3.2. Financial Commentary

• Revenue Stability: Despite a slight decrease in net sales, the company maintained a high project volume. Significant revenue was generated from international repair contracts, including multiple million-dollar agreements with foreign firms throughout the second half of 2025.
• Profitability Pressure: The dramatic drop in gross profit and the resulting net loss were influenced by “global cost pressures” and sectoral fluctuations. Furthermore, the application of TMS 29 (High Inflation Accounting) significantly impacted the reporting of monetary and non-monetary items.
• Investments: Hat-San made tangible fixed asset investments totaling 1.44 billion TL during 2025, primarily focused on increasing production capacity and operational efficiency.
• Dividends: Due to the long-term investment strategy, economic conditions, and the need to strengthen the financial structure, the company decided not to distribute dividends from the 2024 profit, opting to retain earnings for future growth.

——————————————————————————–

4. Risk Management and Regulatory Environment

4.1. Identified Risks

• Financial Risks: The company is exposed to foreign exchange volatility (due to FX-denominated inputs), liquidity risks, and credit risks.
• Operational Risks: Potential delays in project timelines, supply chain disruptions, and health and safety requirements are cited as primary operational concerns.
• Sectoral Risks: Fluctuations in global demand for shipping and variations in raw material costs (e.g., steel) directly impact performance.

4.2. Regulatory and Legal Matters

• Competition Authority Investigation: Hat-San is one of 33 enterprises subject to an investigation by the Turkish Competition Board regarding potential violations of the Law on the Protection of Competition in the shipbuilding sector. The company notes that an investigation does not imply a finding of guilt or a guaranteed penalty.
• Audit Opinion: AKC Bağımsız Denetim A.Ş. provided a “positive opinion” for the 2025 financial statements, confirming they reflect the company’s financial position fairly in accordance with Turkish Accounting Standards.
• Incentives: The company utilized various government incentives in 2025, including social security premium discounts and a significant Central Bank foreign exchange incentive of 83.7 million TL.

——————————————————————————–

5. Strategic Outlook

Hat-San management aims to recover profitability by leveraging its newly commissioned 19,000 TLC floating dock. The strategic focus for the 2026 period includes:

• Capacity Utilization: Integrating the new floating dock to increase the volume of repair and maintenance services.
• Efficiency: Optimizing production processes to reduce the impact of rising global costs.
• Market Positioning: Focusing on high-value-added conversion and shipbuilding projects for international clients.
• Sustainability: Strengthening ESG (Environmental, Social, and Governance) practices through the newly formed Sustainability Committee and the adoption of the “Information Security Policy.”

“The investments made in 2025, specifically in tangible fixed assets, aim to increase the Company’s production capacity, operational efficiency, and long-term competitiveness.” — Management Evaluation, 2025 Activity Report