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Revenues of Southern Gas Corridor CJSC rise

Oil&Gas Materials 2 July 2020 19:07
Revenues of Southern Gas Corridor CJSC rise

BAKU, Azerbaijan, July 2

By Leman Zeynalova – Trend:

Revenues of Azerbaijan’s Southern Gas Corridor closed joint-stock company (CJSC) rose from $253.5 million in 2018 to $452.6 million in 2019, Trend reports with reference to the consolidated financial statement of the company.

The company’s gross profit stood at $205.3 million in 2019, as compared to $120.7 million in 2018.

Its operating profit amounted to $127.2 million in 2019, versus $92.5 million in 2018.

Southern Gas Corridor CJSC’s cash generated from operations totaled $353.8 million in 2019, while this figure equaled to $150.4 million in 2018.

Net cash flows from operating activities increased from $152.6 million to $355.6 million, while cash and cash equivalents at the ends of the year dropped from $304.6 million to $95.2 million.

In order to ensure the delivery of Azerbaijani gas to the European markets, on 29 October 2013 the President of the Republic of Azerbaijan signed a decree establishing a State Commission with the purpose of ensuring state control over and providing state support in regard to the effective implementation of the full-field development of Shah Deniz gas-condensate field (“SD2”), South Caucasus Pipeline Expansion (“SCPX”), implementation of Trans-Anatolian Pipeline (“TANAP”) and Trans Adriatic Pipeline (“TAP”).

Subsequently, the President of the Republic of Azerbaijan signed a decree dated 25 February 2014 on the establishment of “Southern Gas Corridor” Closed Joint-Stock Company (“SGC”) with the purpose of consolidating, managing and financing the State’s interests in the Projects. SGC was founded on 31 March 2014 by the State (the Ministry of Economy of Azerbaijan Republic) (51 percent) and SOCAR (49 percent).

In accordance with the aforementioned decree, all of SOCAR’s participating interests in the Projects were transferred to SGC, which undertook onward financing of these participating interests (the completion of the transfer of 10 percent stakes in Shah Deniz and South Caucasus Pipeline projects will take place in 2023 subject to the fulfillment of certain conditions precedent).

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Follow the author on Twitter: @Lyaman_Zeyn

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