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SOCAR reveals consolidated financial report for 2019

30 June 2020 15:20 (UTC+04:00)
SOCAR reveals consolidated financial report for 2019

By Akbar Mammadov

Azerbaijan’s State Oil Company (SOCAR) has revealed its consolidated financial report for 2019.

According to the report, shared in the company’s website on June 30, SOCAR’s profit was $383.2 million (AZN 651 million), while its total non-current assets was $27.2 billion (AZN 46.2 billion).

Thus, in 2019, SOCAR's current assets and current liabilities decreased slightly by less than 1 per cent.

The report shows that in the reporting year, the company's revenue amounted to $49.3 billion (AZN 83.8 billion). An important part of this indicator falls on the share of trade in oil and oil products by third parties.

Despite the limited turnover of crude oil and petroleum products traded from third parties last year, the efficiency of trade operations and their profit ratio have been increased.

During the reporting period, 92.7 per cent of the company's total revenues were recorded in foreign markets, of which $37.5 billion (AZN 63.7 billion) fell to the share of trade turnover through SOCAR Trading and SOCAR Energy Holding companies in Switzerland.

In manufacturing and transportation industries where profit ratio is high, the company's revenues continued to grow last year. Thus, this increased constituted 88.6 per cent in Turkey and 4.3 per cent in Georgia.

In 2019, $30.1 billion (AZN 51.1 billion) was gained from the sale of crude oil, and $13.06 billion (AZN 22.2 billion) from the sale of oil products respectively.

The largest increase in the company's revenues was recorded in the sale of natural gas with 25 per cent, due to increased production at the “Shah Deniz-2” project and the Umid field.

The report noted that SOCAR ended 2019 with the profit ($383.2 million).

According to the audited financial statements, the company's gross profit amounted to $3.4 billion (AZN5.8 billion), profit for $383.2 million (AZN651 million), total current assets - $11.3 billion (AZN 19.2 billion), total current liabilities -$10.1 billion (AZN17.3 billion).

Its total non-current assets amounted $27.2 billion (AZN 46.2 billion), and total non-current liabilities amounted to $14 billion (AZN 23.8 billion).

During the reporting period, SOCAR's total equity exceeded $14.3 billion (AZN24,3 billion), and cash and cash equivalents increased to $4.2 billion (AZN 7.1 billion).

According to the report, last year, SOCAR increased its stake in some subsidiaries: its share in SOCAR Polymer increased from 52.15 per cent to 57.01 per cent, and at the Baku Shipyard from 70.21 per cent to 87.47 per cent.

It should be noted that the company's financial report prepared as of December 2019, is presented to the public after a positive opinion by the reputable international audit company Ernst & Young Holdings (CIS) B.V.


Akbar Mammadov is AzerNews’ staff journalist, follow him on Twitter: @AkbarMammadov97

Follow us on Twitter @AzerNewsAz

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