BAKU, Azerbaijan, October 19. The State Oil Fund of Azerbaijan (SOFAZ) ended 2025 with a net profit of 26.9 billion manat ($15.8 billion), 3.4 times higher than in 2024, with investments in gold accounting for the largest share of its investment income.
According to Trend's calculations based on the fund’s financial statements, the fund’s total comprehensive income reached 27.36 billion manat ($16.1 billion) at the end of last year, compared with 7.5 billion manat ($4.4 billion) in 2024.
During the reporting period, investments in gold bars played a particularly important role in increasing SOFAZ’s investment income. The fund’s income from gold investments reached 16.85 billion manat ($9.91 billion), nearly five times higher than the almost 3.39 billion manat ($1.99 billion) recorded a year earlier.
Income from gold investments significantly exceeded income from the fund’s other investment categories. This demonstrates the substantial contribution of gold assets to the increase in overall profit.
Revenues from bond and equity investments rise
In 2025, SOFAZ’s income from bond investments amounted to 4.14 billion manat ($2.44 billion). This was around 6.1 times higher than the almost 680.17 million manat ($400.1 million) recorded in 2024.
Income from equity investments also increased. Last year, the fund earned 5.292 billion manat ($3.11 billion) from this category, compared with 3.2 billion manat ($1.89 billion) in 2024. Thus, income from equity investments rose by 64.7% year-on-year.
The fund generated about 360.87 million manat ($212.3 million) in income from private equity funds, up 4.2% from 346.2 million manat ($203.7 million) a year earlier.
Income from infrastructure funds also grew. In 2025, these investments generated 98.08 million manat ($57.7 million) for SOFAZ, compared with 31.63 million manat ($18.6 million) in 2024, representing an increase of 3.1 times.
Income from investment property amounted to nearly 73.18 million manat ($43.0 million), down 13.9% from 84.95 million manat ($50.0 million) a year earlier.
Losses recorded in certain investment categories
Not all of the fund’s investment categories delivered positive results in 2025. Real estate funds recorded a loss of 14.05 million manat ($8.3 million), compared with income of 32.29 million manat ($19 million) in 2024.
Meanwhile, derivative financial instruments generated income of 25.4 million manat ($14.9 million). By comparison, these instruments recorded a loss of nearly 6.35 million manat ($3.7 million) in 2024.
Foreign exchange losses on financial instruments measured at amortized cost amounted to 809,000 manat ($476,000), down from about 108.05 million manat ($63.6 million) in the previous year.
Interest income calculated using the effective interest rate method totaled 154.64 million manat ($90.97 million), a decrease of 29.2% compared with 2024. Other income amounted to 31.94 million manat ($18.8 million), down 17.5% year-on-year.
At the same time, SOFAZ’s share of the post-tax financial results of joint ventures generated income of 43.64 million manat ($25.7 million). This was 71.3% higher than the 25.47 million manat ($15 million) recorded in 2024.
Operating expenses reached 140.9 million manat ($82.9 million)
In 2025, SOFAZ’s operating expenses amounted to 140.93 million manat ($82.9 million), up 78.2% from 79.1 million manat ($46.5 million) a year earlier.
The fund’s income tax payments totaled 2.97 million manat ($1.75 million), down from 4.78 million manat ($2.8 million) in 2024. Thus, income tax payments decreased by 37.9%.
The figures presented in the financial statements demonstrate that higher investment income had a significant impact on the fund’s financial performance. In particular, returns from gold, bonds, and equities were the main contributors to the increase in SOFAZ’s profit in 2025.
SOFAZ’s assets exceed 125.7 billion manat ($73.9 billion)
As of January 1, 2026, SOFAZ’s assets totaled 125.72 billion manat ($73.95 billion), representing an annual increase of 22.5%.
As of the same date, the fund’s liabilities amounted to about 471.7 million manat ($277.5 million), an increase of 11.3% compared with the end of 2024.
The fund’s equity rose to roughly 125.25 billion manat ($73.68 billion), also recording an annual increase of 22.5%.
Thus, both SOFAZ’s assets and equity increased substantially by the end of 2025. Net profit exceeding 26.9 billion manat ($15.8 billion) and assets reaching 125.7 billion manat ($73.9 billion) were among the key financial results of the reporting year.
The State Oil Fund of Azerbaijan was established by a presidential decree dated December 29, 1999. Its primary objective is to ensure the accumulation and effective management of revenues and other funds generated from the exploration and development of the country’s oil and gas reserves, as well as from the fund’s own activities, in the interests of present and future generations of Azerbaijani citizens.
