JSC Azeravtoyol Receives Long-term Loan from State

The state-run JSC Azeravtoyol promulgated in the media a comprehensive financial report on its activities in 2015, which leaves questions with no answers.

In 2015 by the Cabinet of Ministers decree dated 15 July, from the state budget under the guarantee of the Ministry of Finance, JSC Azeravtoyol was issued a long-term (10 years) loan in the amount of over 249 million AZN for 1% per annum. Overall, as of December 31, 2015, the volume of long-term debt on the loans of this road maintenance company exceeded 609.4 million AZN. The message of this government's decision was made public for the first time.

Last year the company enjoyed short-term bank loans in the amount of 52 million AZN. At the beginning of this year, the size of short-term loans reached 5 million AZN.

In general, in 2015 JSC Azeravtoyol performed the operation, construction and repair of highways totaling 372.3 million AZN (VAT included). The bulk of the costs (169.7 million AZN or 47.9%) accounted for the materials for the construction and repair of roads.

The average number of employees in 2015 was about 11,000 people, of which payroll was 34 million AZN.

At the beginning of 2016, the carrying value of fixed assets of JSC Azeravtoyol was 695 million AZN, the wear of which is estimated at 264.7 million AZN.

No less interesting are the figures on uncompleted capital investment, the amount of which on January 1, 2016 is estimated at 6 billion 667 million AZN. Over the year, their volume grew by 446 million AZN. Besides, JSC has to be installed equipment worth about 137 million AZN. Probably, most of the road and transport facilities that were built and put into operation have not yet been accepted by the state commission.

The state budget for the year, including VAT, was paid 23 million AZN. At the end of 2015 Azeravtoyol had a profit of 156,400 AZN. --- 08D