The net loss of the State Oil Company of Azerbaijan (SOCAR) in 2020 amounted to 1.7 billion manat. According to HAQQIN.AZ with reference to the company’s website, this is stated in the SOCAR financial statement last year.
According to the document, this is the second similar case from 2008 to 2020, since the company began to provide a consolidated financial report.
So, in 2015, due to the devaluation, the company completed the reporting year with a net loss, all the other years – from 2008 to 2019 – with profit.
In 2020, the general assets of SOCAR were estimated at 64.2 billion manat, current assets – 18.3 billion manat, long-term assets – at 45.9 billion manat, current obligations – 20.6 billion manat, long-term liabilities – at 21.6 billion manat. In the reporting year, SOCAR total capital amounted to 21.9 billion manat, cash – 6.2 billion manat, the ratio of general obligations to general assets – 66%.
The document states that in 2020, which was remembered by the restless period in the history of the global oil industry, SOCAR due to positive results in the development of oil and gas fields, transportation and sale of hydrocarbons managed to reduce the possible net loss.
In the reporting year, the total turnover of the company amounted to 49.6 billion manat. The reduction of turnover affected the sharp decline in oil prices and natural gas in the world market, as well as a significant reduction in the margin of income from oil and petrochemical products.
Despite the fact that 2020 has become a difficult period for an upstream segment, that is, to develop oil and gas fields, SOCAR, implementing measures to optimize in this area, received a profit in the amount of 1.4 billion manat, and In the segment of trade, distribution and sale – 0.3 billion manat. It is even more than the total net profit of 1.6 billion manat, obtained in 2019 on these two segments.
Nevertheless, the company faced the economic consequences of a pandemic in other areas of its activities and in some foreign countries, including in the Turkish market, and also suffered losses due to the difference in the exchange rate. The sum of these losses exceeded the positive results achieved in other segments, which ultimately led to losses.