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                               SOCAR announces financial report 2020<br><br> The company has managed to reduce the expected losses during the pandemic as a result of optimization Gallery                            
                           
                               
                               
                                   1 July 2021                                                                    

SOCAR announces financial report 2020

The company has managed to reduce the expected losses during the pandemic as a result of optimization

                               
                               

In 2020, a year remembered as the most turbulent period in the history of the world oil industry, SOCAR managed to reduce the expected net loss due to its positive performance in the development of oil and gas fields, transportation and sales of hydrocarbons. The company's total turnover in the reporting year amounted to AZN 49.6 billion. The turnover decrease was due to the sharp price decline on the global crude oil and natural gas markets, as well as due to the collapse of petrochemical revenue margins.

Although 2020 was a difficult period mainly in the upstream segment, SOCAR earned AZN 1.4 billion in this segment thank to substantial optimization measures implemented , and AZN 300 million in trade, distribution and sales. This is even more than the total net profit of AZN 1.6 billion in 2019 for these two segments.

However, the company suffered from economic effects of the pandemic in other areas of its operations, including foreign exchange losses in Turkey, where a major part of SOCAR’s foreign investment is concentrated. The amount of these losses surpassed the positive results obtained in other segments, ultimately resulting in loss. Thus, SOCAR's net loss for the year amounted to AZN 1.7 billion. Since 2008, when the company began publishing its consolidated financial statements, this is the second year, which SOCAR finished with a net loss result. In 2015, the company closed the reporting year with a net loss due to devaluation, while all other years between 2008 and 2019 resulted in net profit.

In 2020, the value of SOCAR's total assets is estimated at AZN 64.2 billion, current assets amount to AZN 18.3 billion and long-term assets equal to AZN 45.9 billion. SOCAR’s current liabilities are AZN 20.6 billion, long-term liabilities are AZN 21,6 billion. In the reporting year, SOCAR's total capital and cash reserves amounted to AZN 21.9 billion and AZN 6.2 billion, respectively. The ratio of total liabilities to total assets was 66%.

It should be noted that the company's financial statements were published after obtaining the positive opinion by the international audit company Ernst & Young Holdings (CIS) B.V. You can view SOCAR's latest financial report here.