News Archive

30 June 2020

Financial report 2019


• Net profit AZN 651 million

• Non-current assets AZN 46,2 billion

• Cash and cash equivalents AZN 7,1 billion

• SOCAR’s current assets and liabilities decreased slightly by less than 1% SOCAR has released its consolidated financial statements for 2019. In the reporting year, the company's total turnover (revenue) amounted to AZN 83.8 billion. Trading oil and oil products from third parties represents a significant part of SOCAR's turnover. Although the total turnover of crude oil and oil products traded from third parties decreased, the efficiency and profit margin of trading operations were higher in 2019. During the reporting period, 92.7 % of the company's total revenue was recorded in foreign markets, of which AZN 63.7 billion fell to the share of trade turnover through SOCAR Trading and SOCAR Energy Holding operated in Switzerland.

The company's revenues continued to grow last year in areas with higher profit margins, such as production and transportation. As a result, SOCAR's revenues increased by 88.6 % in Turkey and 4.3 % in Georgia .

Last year, AZN 51.1 billion was earned from the sale of crude oil and AZN 22.2 billion from the sale of oil products, respectively. The growth in sales of natural gas by 25% was the largest increase in SOCAR's revenues recorded last year. The reason is the growing production at the Shah Deniz and the Umid fields.

According to the audited financial statements, SOCAR finished 2019 with AZN 5.8 billion in gross profit, while the company's net profit amounted to AZN 651 million.

In the reporting year, SOCAR's current assets amounted to AZN 19.2 billion, and current liabilities - to AZN 17.3 billion. SOCAR's long-term assets amounted to AZN 46.2 billion, long-term liabilities - to AZN 23.8 billion. Total capital was more than AZN 24.3 billion, cash and cash equivalents grew up to AZN 7.1 billion.

Last year, SOCAR increased its stake in some subsidiaries: SOCAR's share in SOCAR Polymer increased from 52.15 % to 57.01 %, and at the Baku Shipyard from 70.21 % to 87.47 %.

SOCAR's financial statements as of December 31, 2019, as in previous years, have been audited and confirmed by Ernst & Young Holdings (CIS) B.V. You can find the complete text of SOCAR's consolidated financial statements for 2019 here.

4 June 2020

South Caucasus Pipeline technical operatorship transfers to SOCAR


The South Caucasus Pipeline Company (SCPC) announces that as from 20 March 2020 technical operatorship of the South Caucasus Pipeline (SCP) has been transferred from BP Exploration (Shah Deniz) Limited to SOCAR Midstream Operations Limited, a fully-owned subsidiary of SOCAR. The South Caucasus Pipeline is one of the key sections of the Southern Gas Corridor. This is in accordance with the revised SCP Pipeline Owners’ Agreement, signed in December 2013 as part of the final investment decision on the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects. The agreement provides for SOCAR to become the technical operator of SCP on the first anniversary of the SCPX construction completion date.

The transfer covers the operation of all dedicated SCP facilities in Azerbaijan and Georgia. The facilities that are common to both the Baku-Tbilisi-Ceyhan (BTC) pipeline and SCP will continue to be operated by bp in its capacity as common operator. There is no change to the operatorship of the Sangachal Terminal, BTC or the Western Route Export Pipeline (WREP) which will all continue to be operated by bp.

SOCAR and bp will continue to work together during 2020 to effectively implement all aspects of the transition process.

Rovnag Abdullayev, President of SOCAR, said: “We have been the commercial operator of SCP since 2015, conducting all commercial operations of the pipeline on a high level. Now SOCAR takes over the technical operatorship of SCP as envisaged in the pipeline owners’ agreement.

“As an SCPC shareholder, we have always been pleased with the safety of SCP operations, which have been among the best in the industry. We would like to thank bp for their excellent partnership and operatorship. As the new technical operator we will use our successful international experience and work closely with all of our partners to sustain the high level of safety, reliability and environmental performance of SCP.”

Gary Jones, bp’s Regional President for Azerbaijan, Georgia and Turkey, said:

“We welcome SOCAR as the new technical operator of SCP. As the biggest shareholder in Shah Deniz and SCPC, we remain committed to working with SOCAR to ensure continued safe and reliable operation of the pipeline.

“We believe SOCAR has great experience of safe and efficient project delivery. This was demonstrated during the four years of successful construction followed by the safe operation of TANAP. In addition, SOCAR has been a very effective commercial operator of SCP for nearly five years now. We remain committed to helping SOCAR in the planned management of change process to ensure that the transition is completed safely and with no impact on the overall gas transportation operations.

“We are proud of our staff and workforce whose commitment and dedication have been key to the excellent safety performance of the entire export system. We are confident that with the transfer of operatorship the same level of commitment to safe operations and the high quality of capabilities of the staff will continue”.