SOFAZ funds soared $ 1.6 billion this year

Baku. 28 July. REPORT.AZ/ In January-June this year, funds of the State Oil Fund of Azerbaijan (SOFAZ) increased by 1 643,9 mln USD (including non-budget revenues $ 1,288.8 million USD) or by 4.96% and made 34,790.9 million USD.

Report informs, Chamber of Accounts says.

According to information, during the reporting period, total volume of SOFAZ revenues amounted to 6 127.2 mln AZN or 3 504.7 mln USD and implemented at the level of 73.2% against the amount considered in the budget (8 370.6 million AZN), while Fund's expenditures made 5 533.8 mln AZN or 3 149.6 mln USD and implemented at the level of 38.2% against the amount envisaged in the budget (14,483.9 mln AZN).

Non-budget revenues, which is the base currency of the Fund, are estimated at 1 288.8 mln in the US dollar. During the same period, the Fund did not have off-budget expenditures in US dollars.

Profitability of the Fund's investment portfolio in the first half of the year amounted to 1.12%, which is 0.62 percentage points higher than the corresponding figure of the previous year.

According to the Chamber, increase in profitability can be attributed to less execution of expenditures against the planned amount and higher profitability on equity investments compared to the corresponding figures of the previous year.

The main reason for 73.2% implementation of overall gross revenues of the fund during the six-month period was $ 53 per barrel of average weighted sales price of profit oil for the six-month period, despite crude oil export price was estimated at $ 40/barrels in the state budget.

In general, the Fund's resources made 57 474.2 million AZN to July 1, 2017 in manats.

38.2% implementation of Fund's expenses during the 6-month period can be explained with 32.7% less implementation of transfer to the Central Bank of Azerbaijan (CBA) (2 448, 3 million AZN) against the amount considered (7 500.0 mln AZN) in order to ensure macroeconomic stability.

The transfer considered to the 2017 state budget by SOFAZ in the amount of 6,100.0 mln AZN implemented at the level of 2 991.0 mln AZN or 49.1% in the first six months of the current year.