BAKU, Azerbaijan, October 6. Fitch Ratings has acknowledged a positive shift in the liquidity of Petkim, the petrochemical complex operating under Azerbaijan's state oil company SOCAR in Türkiye, compared to its fiscal year-end 2022 situation, Trend reports.
As of the conclusion of June 2023, Petkim held approximately 10.5 billion liras ($380 million) in cash and cash equivalents, while simultaneously carrying 16.5 billion liras ($597 million) in short-term debt.
In a significant financial move, Petkim successfully repaid a $500 million bond in January 2023, using cash reserves, and secured a $300 million three-year term loan. However, despite these developments, Fitch cautions that Petkim's reliance on domestic banks, the rollover of short-term debt, and the potential need for support from its parent company remain areas of concern.
Fitch's outlook further anticipates that Petkim will maintain a cash balance ranging between $100 million and $150 million from 2023 to 2026. This forecasted cash level is notably lower than historical figures and could potentially heighten Petkim's dependence on short-term funding in the event of significant fluctuations in working capital.
Petkim is the first and the sole integrated petrochemical facility in Türkiye. It is the largest exporter in the Aegean region. Petkim’s production capacity is 3.6 million tons per year. The petrochemical complex produces around 60 different types of products and exports to 78 countries. The complex meets about 20 percent of Türkiye’s demand for petrochemical products.
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