BAKU, Azerbaijan, July 9. The State Oil Company of Azerbaijan (SOCAR) closed the past year with positive results, thanks to structural reforms, strategic acquisitions, and investments to strengthen its market position, as well as cost optimization measures, a source in SOCAR told Trend.
According to the source, the company carried out several successful business acquisitions last year, including phased acquisitions in Southern Gas Corridor CJSC and the STAR Refinery, share purchases in the Umm Lulu, SARB, Bin Nasher, and Al Bateel concessions, acquisition of Azer-Turk Bank OJSC, additional shares in the Azeri-Chirag-Gunashli (ACG) deepwater fields and Baku–Tbilisi–Ceyhan (BTC) pipeline, and the transfer of Azercontract OJSC under SOCAR’s ownership.
As a result of these reforms and consolidations, SOCAR's total assets grew by 31.6 percent in 2024, reaching 94.7 billion manat ($55.9 billion). The company’s total equity also strengthened significantly, rising 39.6 percent to 48.7 billion manat ($28.7 billion).
SOCAR’s loan liabilities were reduced by two billion manat ($1.18 billion) compared to 2023. However, due to the newly acquired businesses (Southern Gas Corridor CJSC and the STAR refinery), an additional 7.8 billion manat ($4.6 billion) in debt was added to SOCAR’s obligations. Additionally, in 2023, the company’s debt increased by 2.9 billion manat ($1.71 billion) due to refinancing of joint venture liabilities.
Overall, thanks to a prudent financial policy, SOCAR has reduced its loan obligations (excluding acquisitions) by 7.8 billion manat ($4.6 billion) over the past three years, and by 10.6 billion manat ($6.25 billion) including joint ventures.
Below is data on loan obligations (in billion manat) and the Debt/EBITDA ratio from 2021 through 2024.
Taking into account SOCAR’s other long-term debt obligations, over the past three years, the company has reduced its total credit and long-term liabilities - excluding business acquisitions and joint venture debt refinancing - by 9.1 billion manat ($5.37 billion), and by 11.9 billion manat ($7 billion) including joint ventures.
SOCAR’s consolidated financial statement as of December 31, 2024, received an unqualified (clean) opinion from the reputable international audit firm Ernst & Young Holdings (CIS) B.V.
