CIIC Works at Loss, but Issues Dividends

Baku / 03.10.17 / Turan: CJSC Caspian International Investment Company (CIIC), whose main shareholders are investors from the Arabian Gulf, completed 2016 with a profit. However, the source of profit is not economic activity, but the difference in the exchange rate, due to which the shareholders were given dividends.

In 2016, according to the balance sheet, the company in which JSC Azerbaijan Investment Company has a 24% equity interest, gained AZN 834,000 from the investment activity in the capital of several companies, of which 145,600 manats is recorded in profit. However, due to high administrative expenses, the result of CIIC's operating activity became negative by 940,000 manat.

But still CIIC managed to complete 2016 with a profit, as it did in the previous year. Part of the profit (493,000 manat) is interest income on bank accounts, and over 3 million manat is the exchange rate difference. It should be noted that following the results of 2015 CIIC shareholders were affected by the devaluation, the amount of which exceeded 9.5 million manat.

According to the report http://ciic.az/#!/mediainformation/annual-reports, the net profit of CIIC in 2015 and 2016 was 5.5 million and 2 million manat. At the end of 2015, the shareholders distributed over 3.9 million manat among themselves. And in February of this year, the shareholders were given dividends for a total of 4 million manat.

CIIC was established in 2008. In 2016, the company Saham Holding left the shareholders by selling its stake (14.48%) to Aref Investments Company.

CIIC takes part in the capital of seven Azerbaijani companies (Amara LLC - 100%, A-Agro LLC - 68%, Salat LLC - 68%, Agro Trading LLC - 100%, A-Plastic LLC - 53.1% and T-Tomatoes LLC - 33%). ------08B