SOCAR and Its Panamanian Partners Work Unprofitably in Azerbaijan

CJSC Ekol Muhendislik Khidmetleri published the annual and financial reports (http://goo.gl/jo0GTd) for 2015, according to which, the company's loss decreased by 37% compared to the year 2014 and amounted to 1.4 million manats.

In 2015, revenues for environmental services in Azerbaijan totaled 9.4 million AZN, 23% less than in the previous year. Operating losses for the year reached 3 million manats. However, due to the equity of the company AAS-Ekol in the income in the amount of 1.5 million AZN, the consolidated loss of Ekol Muhendislik Khidmetleri declined by about half.

In 2014-2015, the company’s undistributed profit fell from 11.2 million to 7.5 million manats.

CJSC Ekol Muhendislik Khidmetleri was established in 2006. Its shareholders are SOCAR - 51% and Lancer Services S.A. (Panama Republic) - 49%. Nothing is known about the founders of Lancer Services S.A. This is not mentioned on the http://lancer-sa.com/ corporate website. From this resource it is clear that it operates only in Azerbaijan. The Panama registry has no information about that, either (http://www.panamaregistry.org/lancer-services-s-a).

Recently, an international network of investigative journalists released documents on offshore companies in Panama, under the name of the notorious Panama Papers. The name Lancer Services S.A. is not present in them yet.   ----08D