In quarter 2, 2016 Oil Fund’s incomes dropped by 2.3% despite growth of oil prices

During 6 months, 2016 State Oil Fund (SOFAZ) assets increased by 4.6% and reached $35,117,900,000.

SOFAZ reported that during 6 months its incomes totaled 3,991,000,000 AZN, while costs – 2,256,700,000 AZN.

By April 1, 2016 SOFAZ’s assets totaled $34,246,000,000 (growth by 2% against early 2016). During quarter 2, 2016 SOFAZ received income worth 1,967,900,000 AZN. During quarter 1, 2016 it totaled 2,023,100,000 AZN. During quarter 2, 2016 average oil price was $12.00 higher per barrel. This means that with stable production in the country, the costs (capex+opex) to maintain this success have increased significantly.

The income from sale of profitable oil and gas of Azerbaijan in SOFAZ totaled 3,680,600,000 AZN, transit incomes -8.8 million AZN and bonus payments – 0.1 million AZN. During this period income from management of the Fund’s resources totaled 301.5 million AZN.

From January to June majority of the SOFAZ’s costs fell to transfers to the state budget – 1,760,000,000 AZN. Costs for improvement of living conditions of refugees totaled 55.2 million AZN, for upgrade of the Samur-Absheron irrigation system – 19.6 million AZN, for construction of the Baku-Tbilisi-Kars railway – 35.3 million AZN, for construction of the Southern Gas Corridor project – 241.9 million AZN, to fund Azerbaijan’s share in construction of STAR oil refinery – 127 million AZN, to fund the state program to train Azerbaijani youth abroad between 2007 and 2015 – 9.2 million AZN and the administrative costs for SOFAZ management – 8.5 million AZN.

SOFAZ’s extra-budgetary costs related to change of currency rates totaled 65.4 million AZN.