SOCAR’s net profit declines, operating profit up

  04 June 2019    Read: 854
  SOCAR’s net profit declines, operating profit up

The net profit of the Azerbaijani state oil company SOCAR decreased by 1.71 times compared to 2018, reports referring to the company's consolidated financial report for 2018.

According to the report, net profit amounted to 1.22 billion manats in 2018, while 2.09 billion manats in 2017.

The company managed to work by gaining profit despite the exchange rate volatility led to an increase in costs.

An increase in the company's expenses is also associated with an increase in the tax burden by almost twofold as a result of the increase in the company's share in the development of the Azeri-Chirag-Gunashli (ACG) field.

As is known, after the signing of the updated agreement, the company's share also increased by more than twofold - from 11.65 percent to 25 percent.

The company's revenues amounted to 58.5 billion manats from the sale of crude oil in the reporting period, while revenues from oil products - 40.1 billion manats.

"In 2017 - 2018, SOCAR restored its financial indicators of the pre-crisis level, preceding the period of falling world oil prices and today it works by getting profit," SOCAR President Rovnag Abdullayev said.

“We managed to achieve a positive balance thanks to the rising prices in the world oil markets, commissioning of the STAR refinery and a polypropylene production plant, which ensured growth in profit from the sale of petrochemical products, as well as through an increase in the sales of natural gas upon the Shah Deniz Stage 2 project,” he said.

"In the coming years, we will try to maintain this positive dynamics through the implementation of new projects and their rational use," Abdullayev added.

According to the report, SOCAR Group’s total assets amounted to 62.1 billion manats, while the total debt obligations - 13.7 billion manats in 2018. SOCAR's total capital increased and reached 24 billion manats compared to the previous year.

SOCAR’s total income has increased by 24 times over the past 10 years, while the total capital - more than tripled. The audit report has been approved by Ernst & Young.

(1.7 AZN = 1 USD on June 4)

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