Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-June 2019 reached AZN 10,698.3 million, while budget expenditures constituted AZN 4,499.4 million.
Report informs citing SOFAZ that revenue of AZN 8,557.1 mln. was received from implementation of oil and gas agreements, including AZN 7,780.7 mln. from the sale of profit oil and gas, AZN 766.4 mln. as bonus payments, AZN 8.9 mln. as transit payments and AZN 1.1 mln. as acreage fee.
The revenues from managing SOFAZ’s assets for January-June 2019 amounted to AZN 2,141.2 mln.
SOFAZ’s extra-budgetary revenues related to the revaluation of foreign exchange totaled AZN 513.1 mln.
As per 2019 budget of the Fund, AZN 4,413.0 mln. were transferred to the state budget. The expenditure in the amount of AZN 74.9 mln. were directed to financing the improvement of social-economic condition of refugees and internally displaced persons. SOFAZ’s administrative and operational expenses for the reporting period were AZN 11.5 mln.
The assets of SOFAZ as of June 30, 2019 have increased by 10.25% compared to the beginning of 2019 (USD 38,515.2 mln.) and stood at USD 42,463.7 mln. The increase was mainly due to SOFAZ inflows from the sale of profitable oil and gas, as well as, from the investment returns. During the current period each asset class positively contributed to the overall investment portfolio return, while the equity investments returns were significantly higher compared to other assets classes. Thus, despite the negative return (-6.6%) on the equity sub-portfolio for the last year, the return number for the first six month of the current year amounted to 13.1%.