More than half of SOCAR’s income is generated in Switzerland – How? |
Azerbaijan State Oil Company of the Republic ofSOCAR) announced last year’s financial report. In the report SOCARIt is noteworthy that a significant increase in the volume of turnover and profit was recorded. During the past year SOCARturnover increased by 56.3 percent to 77 billion It reached 500 million manats. According to the report, the company made 19% of the sales of oil products last year billion 282 million manats, gas 7 from the sale billion 74 million manats and 6 billion 748 million manats were earned from the sale of petrochemical products.
Report The main reason for the company’s income growth during According to the calculations of the World Bank, in 2021 the average price of one barrel of crude oil in the global market will be 69 dollars has been This indicator is 2020It is 67 percent more compared to the year. In an official statement, the company justified the increase in its income not only by the increase in oil prices, but also by the integrated activity of enterprises and the added value created by digital energy technologies.
As a result of all this, SOCAR’s profit margin 10. increased from 2 percent to 11.4 percent. And the company’s operating profit 10 increased to 4.93 billion manats. Thus, the company ended last year with a net profit of 2 billion 120 million manats. This is when the company’s consolidated financial statements begin to be prepared 20It is the highest profit figure recorded in a year since 08. Last year, SOCAR paid 1 billion 162 million manats of profit tax to the state budget. It is worth reminding that one year ago – 2020SOCAR suffered a loss of 1 billion 734 million manats.
It is clear from SOCAR’s financial report that the tradition has not been broken and the main part of the company’s income is still generated in Switzerland. The company earned a total of 44 billion 625 million manats from its activities in Switzerland in 2021. This means nearly 58 percent of SOCAR’s last year’s income. In other words, the company earned more than half of its annual revenue from Switzerland. SOCAR has been operating in this country since 2012. A network of filling stations under the SOCAR brand has been opened in Switzerland, and thus retail sales of petroleum products are carried out. The subsidiary in Switzerland is called SOCAR Energy Switzerland.
SOCAR entered the Swiss energy market at the end of 2011 by purchasing the shares of “Esso Ecco Schweiz GmbH” for $330 million. According to that contract, these enterprises were transferred to the company:
SOCAR entered the Swiss energy market at the end of 2011 by purchasing the shares of “Esso Ecco Schweiz GmbH” for $330 million. According to that contract, these enterprises were transferred to the company:
-a retail network that includes more than 160 gas stations;
– the company’s fuel marketing entity for industrial and wholesale customers (this entity sells municipal fuel volumes and cylinder gas to independent distributors throughout Switzerland);
– Gas filling plant in Wangen-Olten;
-Geneva and Zurich weather shares of aviation refueling stations and related joint ventures in its ports;
– shares in a Swiss supply and distribution company that controls a joint venture with terminals and pipelines.
Currently, the number of SOCAR gas stations in Switzerland exceeds 200.
The second foreign country where SOCAR earns the most revenue Turkey has been In 2021, SOCAR’s income from Turkey increased by 2.3 times compared to 2020 and reached the equivalent of 17 billion 567 million manats. “SOCAR Turkey” was the 8th most exporting company among the companies operating in Turkey last year. The subsidiary company in Turkey was established in 2006, and it is responsible for implementing projects in the fields of oil refining and petrochemicals in this country, natural gas created for shopping. “SOCAR Turkey” also has a control package (51 percent) of the shares of the petrochemical complex “Petkim Petrokimya Holding” of Turkey.
In this regard, “Petkim” is SOCAR’s biggest asset in Turkey. Petkim Limancılık Ticaret A.Ş., a subsidiary of Petkim, is one of the three largest ports in Turkey, and SOCAR invested 400 million in this terminal. USA invested around USD. “PETKIM” Wind Power Plant, which is considered as SOCAR’s renewable energy project, has a capacity of 51 MW. 55 million euros have been invested in this project. Besides, 2018“STAR” oil refinery, implemented by SOCAR with an investment of more than 6 billion dollars, was commissioned in 2008. The company has invested more than 16 billion dollars in Turkey so far.
After Switzerland and Turkey, SOCAR earned the most revenue in Azerbaijan (7 billion 804 million manats or 10 percentage). 2 billion 223 million manats were earned from the activities in the United Arab Emirates, and 1 billion 45 million manats were earned from the activities in Georgia.
One point of SOCAR’s activity in foreign countries last year is noteworthy – the company sold its shares in two companies. We are talking about SOCAR’s 50 percent stake in Uzbekistan-registered Neftegaztechnologia LLC and 33 percent stake in Romania’s AGRI LNG Project Company.