Last year SOCAR has invested 1,127,000,000 AZN against planned 1,368,000,000 AZN.
According to Fitch Ratings, during three years (2015-2017) SOCAR’s investments will exceed 5 billion AZN.
Fitch reported that over 80% of SOCAR’s debt is in US dollars. But the company receives majority of its income in USD as well. Growth of the state support, for instance, state guarantees for the majority part of the company’s debt in combination with rise of sovereign ratings could lead to a positive rating.
The financial condition of the company does not raise any concerns. During six months this year volume of SOCAR’s funds totaled 2.9 billion AZN, of which 81% was in USD bank accounts and 5% in Euro. As one can see, this was enough to cover a short-term debt to the amount of 2.7 billion AZN. During the first semi-annual period this year SOCAR’s long-term debt increased from 3.6 billion AZN up to 5.8 billion AZN.
Fitch considers independent solvency of SOCAR is comparable to a medium rating BB, which reflects limited resources of the company, decline of extraction on the old oil fields, outdated oil refineries, developed pipeline system, growing portfolio at the international refining and sales section as well as retail assets and adequate indexes of solvency.
