BAKU, Azerbaijan, October 25. Azerbaijan’s state oil company SOCAR is anticipated to sustain a robust financial standing until 2026, Trend reports with reference to Fitch Ratings.
“SOCAR's leverage has historically been relatively high compared with its peer group, but declined from 2022. This reflects higher cash-flow generation due to higher oil and gas prices. We expect that SOCAR will maintain a strong financial profile over forecast period until 2026 under Fitch's oil and gas price deck,” says the rating agency.
This positive outlook contributes to Fitch’s upward adjustment of SOCAR's Standalone Credit Profile (SCP).
The rating agency notes that the 'bb-' SCP takes into consideration the company's operational scale, albeit it remains subject to constraints related to corporate governance factors, including substantial limitations concerning the disclosure of information.
SOCAR operates in diverse sectors, encompassing oil and gas field exploration, oil, gas, and gas condensate extraction, processing, and transportation, alongside the distribution of oil and petrochemical products in both domestic and international markets. Furthermore, the company plays a crucial role in supplying natural gas to both industrial enterprises and the general population of Azerbaijan, as well as extending its services to Europe.
Beyond Azerbaijan, SOCAR is actively involved in numerous international ventures, spanning countries such as Türkiye, Georgia, Romania, Switzerland, Germany, and Ukraine. Additionally, the company engages in significant trading operations primarily based in Switzerland, Singapore, and Nigeria.
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