Azerbaijani State Oil Fund’s profit exceeded forecast amount by 15 percent in 2018

The total income of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) reached 17.614 billion manats, which exceeded the forecast amount (15.310 billion manats) by 15 percent , Trend reports referring to the report of the Chamber of Accounts following the execution of SOFAZ’s budget-2018.

SOFAZ’s expenses for 2018 reached more than 11.46 billion manats, which is less than the forecast amount (11.480 billion manats) by 0.2 percent. As a result, by the end of the year, the budget had a surplus of more than 6.158 billion manats and funds in the amount of more than $3.6 billion were transferred for accumulation.

The growth of oil prices and production at the Azeri-Chirag-Gunashli fields contributed to the increase in SOFAZ’s revenues.

SOFAZ’s revenues were formed through the sale of hydrocarbons, acre, transit and bonus payments, as well as asset management. Virtually all income (94.5 percent) was formed through revenues from the sale of oil and gas. Some 4.3 percent accounts for bonuses, while 1.02 percent for asset management.

As a result of fluctuations in the exchange rate of the currencies included in SOFAZ’s investment portfolio, extra-budgetary expenditures amounted to about 1.59 billion manats. Extra-budgetary revenues reached 32.5 million manats due to fluctuations in gold prices. As a result, extra-budgetary expenditure reached $913.7 million (1.55 billion manats).

(1.7 AZN = 1 USD on June 27)