Baku, Azerbaijan, July 9
By Fidan Babayeva – Trend:
The net profit of the State Oil Fund of Azerbaijan (SOFAZ) made up over 4.3 billion manat ($2.5 billion) in 2019 against net loss in the amount of 768.4 million manat ($452 million) a year before, Trend reports referring to the financial statements of SOFAZ for 2019, confirmed by the PricewaterhouseCoopers (PWC) international audit company.
During the reporting period, interest income of SOFAZ calculated by effective interest rate method amounted to 40.9 million manat or $24 million (a 52.4-percent drop), dividend income to 390.3 million manat or almost $229.6 million (an increase of 46.6 percent), rental income to 75.7 million manat or $44.5 million (a 54.8-percent drop), and income from gold ingots to over 1.1 billion manat or $700 million (a 37.3-time growth).
Meanwhile, loss of the fund on exchange rates amounted to 524.2 million manat or $308.3 million (down 69.3 percent).
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include accumulation of resources and placement of assets abroad in order to minimize the negative effect to the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
($1=1.7 AZN on July 9)
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