BAKU, Azerbaijan, October 6. The latest deal on reducing the indirect share of Petkim, the petrochemical complex of Azerbaijan’s state oil company SOCAR in Türkiye, in STAR oil refinery, has positively affected Petkim's leverage, Trend reports via Fitch.
In a recent development, Petkim, in conjunction with its majority shareholder SOCAR Turkiye Enerji A.Ş. (STEAŞ), has reached an agreement to reduce Petkim's indirect shareholding in the STAR refinery. The reduction will see Petkim's share decrease from 18 percent to 12 percent. As part of this agreement, Petkim has already made a payment of $480 million for its corresponding 12 percent stake in STAR, with the formal share transfer officially concluded in October 2023.
The initial terms of this agreement, set in 2018, originally outlined a $720 million payment for an 18 percent indirect shareholding.
Importantly, Fitch Ratings has adjusted its evaluation, no longer including the final $240 million installment in the adjusted debt calculations. The rating agency believes that this adjustment has a positive impact on Petkim's leverage, simultaneously diminishing the potential for higher share dividend payments from STAR in the future.
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.
Petkim reported a net profit of 221.2 million Turkish lira ($8.2 million) in the second quarter of 2023.
The profit growth was 68.7 percent, or 90.4 million lira ($3.3 million), compared to the first quarter. The company's profit in the first quarter was 130.8 million lira ($4.8 million).
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