Southern Gas Corridor reports significant growth in profitability

The Southern Gas Corridor CJSC (SGC) has reported a notable increase in its net profit for the first half of this year, reflecting strong operational performance and effective financial management.

"Southern Gas Corridor" CJSC (SGC) has reported a net profit of 901.55 million US dollars for the first half of 2024, marking a 24.1% increase compared to the same period last year, Azernews reports.

According to the company's financial report, operating income for the January-June period reached 1.63 billion US dollars, a 17.2% year-on-year increase. At the same time, SGC's cost of sales rose by 49.2% to 365.62 million US dollars, while general administrative expenses amounted to 185.18 million US dollars, reflecting a 12.7% rise. The company's transportation costs also saw a significant increase of 55.8%, totaling 107.78 million US dollars.

Other financial highlights include a 26.3% growth in other income, reaching 35.30 million US dollars, and a substantial 75.2% rise in interest income, totaling 80.87 million US dollars. Revenues from affiliated enterprises increased by 1.8%, amounting to 35.43 million US dollars. Additionally, SGC recorded income from exchange rate differences of 6.81 million US dollars, a 2.5-fold increase, while savings on income tax payments amounted to 12.88 million US dollars.

As of July 1, 2024, SGC’s total assets stood at 14.75 billion US dollars, a slight increase of 0.3% from the previous year. The company’s liabilities decreased by 9.8%, amounting to 7.47 billion US dollars, while its equity grew by 13.2%, reaching 7.28 billion US dollars.

SGC was established to consolidate, manage, and finance the state’s participation in major energy projects, including the "Shah Deniz" gas-condensate field, the Trans-Anatolian Gas Pipeline (TANAP), and the Trans-Adriatic Pipeline (TAP). The company has an authorized capital of 2.42 billion US dollars, with 51% of shares owned by the Ministry of Economy and 49% by the State Oil Company of Azerbaijan (SOCAR).