BAKU, Azerbaijan, June 1
Trend:
Azercosmos has ended 2019 with a net profit of 3.62 million manat ($2.1 million), while the company's total profit was 14.04 million manat ($8.2 million), Trend reports referring to the company's financial statement.
In 2019, the company's revenues increased by 41.2 percent compared to 2018, EBITDA margin increased from 64 percent to 73 percent.
The coverage geography of satellite services and the expansion of cooperation with leading international companies also played a role in this growth.
Thank to cooperation with international companies on the use of the Azerspace-2 satellite Azercosmos’ financial revenues from leasing operations increased 2.6 times compared to 2018 and reached 12.24 million manat ($7.2 million).
In general, 90 percent of Azercosmos's revenues come from the export of satellite services to more than 20 countries.
According to the results of 2019, Azercosmos ranks first among state and non-state exporters in terms of exports' volume in the service sector. The company's export portfolio consists mainly of leading companies in the US, the UK, France, Germany and Malaysia.
At the same time, the accumulated losses of Azercosmos in 2019 decreased by 1.9 percent to 307 million manat ($180.5 million).
At this point, it should be noted that the accumulated damage is not directly related to the operational activities of Azercosmos, mainly (85 percent) due to the depreciation of the manat as a result of devaluations in previous years and therefore the negative exchange rate difference reflected in the financial statements prepared in manat.
Thus, according to the requirements of International Accounting Standards, the negative exchange rate difference on liabilities on loans in foreign currency to finance satellite projects should be recognized in the financial statements as a technical loss in Azerbaijani manat.
According to the company's history and forecasts of growth in profits and revenues, at least part of the total accumulated losses related to operating activities can be replaced by profit in the coming years.