The final approval has been reached in the SOCAR Turkey acquisition of German EWE's subsidiaries. Vagif Aliyev, Chairman of SOCAR Turkey said: ''Bursagaz, Kayserigaz, Enervis, EWE Energy and Millenicom will continue their operations under the SOCAR Turkey’s ownership adding value to the Turkish and Azerbaijani economies.
SOCAR Turkey has completed the acquisition of Bursagaz, Kayserigaz, Enervis, EWE Energy and Millenicom. Chairman of SOCAR Turkey Vagif Aliyev, CEO Zaur Gahramanov, as well as the CEO of EWE AG Stefan Dohler and CFO of EWE AG Wolfgang Mücher took part in the signing of final agreement.
After the signing of the sale contracts in January 2019 and obtaining final approval on the issue recently, the five companies will operate from now under the umbrella of SOCAR Turkey together with STAR Refinery, TANAP, Petkim, SOCAR Terminal and Petkim Wind Power Plant.
Vagif Aliyev, Chairman of SOCAR Turkey said Bursagaz and Kayserigaz joining the group complemented SOCAR’s natural gas value chain in Turkey. ''Since entering the Turkish market, we have taken the dynamics and productivity of the sector where we operate into consideration and have focused on integration in all of our investment projects. For 12 years, we have been supplying natural gas to Turkey. Since 2013, SOCAR Turkey has been involved in natural gas sales here. We are the biggest partner of TANAP, the largest Turkish-Azerbaijani project, which provides natural gas transportation. Now by bringing Bursagaz and Kayserigaz to SOCAR Turkey we are starting to distribute natural gas. I believe the synergy created by this large integration is very important for both the company and the economies of our friendly countries. I would like to say our new staff “Welcome to the SOCAR family”, he added.
The companies acquired together with Bursagaz and Kayserigaz will further strengthen SOCAR Turkey, Aliyev said and added: “We have been distributing natural gas in Azerbaijan and all over Georgia except Tbilisi for a long time. Maintaining customer satisfaction at the highest level, we will expand our natural gas distribution experience to Bursa and Kayseri. Natural gas operations have an important role in our growth today and the future. We want to grow these activities and will continue to seek new opportunities in the future.”
Aliyev also mentioned that Millenicom, a telecommunication company, is among the companies purchased and it will help create an important synergy together with the 1850-km SOCAR Fiber, which is constructed along TANAP.
Hereby SOCAR releases its latest financial report for 2018.
Over the accounting period up to 2018 the company boosted its total revenue to AZN 111.2 billion 1, an increase on the previous year. The cost of sales amounted to AZN 105.5 billion 2 and net operational cost was AZN 2.1 billion 3. The company’s operational income has increased to AZN 3.6 billion 4 last year. Despite the increase in expenses due to volatility of currency rate in some foreign countries, where SOCAR is operating, the company managed to finish the year with net profit, which amounted to AZN 1.2 billion 5. Crude oil and oil products sales amounted to AZN 58.5 billion 6 and AZN 40.1 billion 7 respectively.
Rovnag Abdullayev, SOCAR President said: "In 2017 and 2018, SOCAR managed to raise its financial performance back to the pre-crisis level and made both years profitable. The company has achieved a positive balance in the turnover last year due to a rise in the world market oil prices, higher revenues from the petrochemical products by the commissioning of the STAR Refinery and Polypropylene plant and the rise in natural gas sales from the Shah Deniz-2 project. We will endeavor to maintain this positive result in the coming years through the completion and sustainable development of our new projects."
According to the audited financial statements, last year SOCAR Group’s total assets amounted to AZN 62.1 billion 8 and credit liabilities to AZN 13.7 billion 9. SOCAR’s total capital increased to AZN 24 billion 10, as compared to the previous year.
SOCAR's gross revenues have grown by 24 times and its total capital tripled over the past decade.
As in previous years, Ernst & Young Holdings (CIS) B. V. gave positive feedback on SOCAR's financial statements prepared for December 31, 2018. As in the previous reporting year, the audit opinions were obtained a month earlier owing to additional measures taken in 2018. Please follow the link here for SOCAR's consolidated financial statements for 2018.
1 - AZN 111,198 milyon manat
2 - AZN 105,468 million
3 - AZN 2,135 million
4 - AZN 3,595 million
5 - AZN 1,224 million
6 - AZN 58,462 million
7 - AZN 40,093 million
8 - AZN 62,136 million
9 - AZN 13,672 million
10 - AZN 23,944 million