As a result of successful reforms and business mergers in the reporting year, SOCAR's total assets increased by 31.6% and reached 94.7 billion manat, while the company's equity capital increased by 39.6%, amounting to 48.7 billion manat.
The State Oil Company of Azerbaijan (SOCAR) ended 2024 with positive results thanks to ongoing structural reforms, acquisitions and investments that strengthen the company's market position, as well as cost optimization.
As reported to Trend by SOCAR, over the past year the company has implemented a number of successful business acquisition deals, including a gradual increase in its stake in Southern Gas Corridor CJSC and STAR Oil Refinery, acquisition of stakes in Umm Lulu, SARB, Bin Nasher and Al Bateel concessions, purchase of shares in Azər-Türk Bank, deals under the Joint Development and Production Sharing Agreement (JDPSA) for the Azeri, Chirag and deepwater Gunashli fields, acquisition of an additional stake in the Baku-Tbilisi-Ceyhan oil pipeline, as well as the transfer of Azercontract JSC to SOCAR management.
SOCAR's credit obligations in 2024 were reduced by 2.0 billion manat compared to 2023, however, due to new business acquisitions (Southern Gas Corridor CJSC and STAR plant), 7.8 billion manat of debts of these enterprises were added to SOCAR's existing credit obligations. In addition, in 2023, SOCAR's debt obligations increased by 2.9 billion manat due to the refinancing of joint ventures' debts.
Overall, thanks to effective financial policies over the past three years, SOCAR’s credit obligations, excluding business acquisitions, have decreased by 7.8 billion manat, and taking into account the debts of joint ventures, by 10.6 billion manat.
Taking into account other long-term debt obligations of the company, over three years (excluding business acquisitions and refinancing of JV debts), the total volume of credit and long-term debt obligations of SOCAR decreased by 9.1 billion manat, and taking into account the joint ventures – by 11.9 billion manat.
It is noted that the consolidated financial statements of SOCAR as of December 31, 2024 received a “clean” (unreserved) opinion from the reputable international audit company Ernst & Young Holdings (CIS) B.V.