BAKU

Azerbaijan’s state energy firm SOCAR’s subsidiary in Turkey expects an almost 59 percent annual rise in EBITDA to $1 billion by the end of 2021, according to Zaur Gakhramanov, the company head.

He said that for the return on investments made by the company in projects in Turkey, EBITDA should be on average $750 million per year.

“This will allow us to both earn and pay off loans,” Gahramanov said.

The company has attracted a $1.3 billion syndicated loan in the summer of 2021 and plans to repay it by 2026.

According to Gakhramanov, the company plans to include clean energy projects in its portfolio and develop electric vehicle production in order to diversify its business amid unstable situation on oil markets.

“As for the risks associated with fluctuations in the exchange rate of the Turkish national currency, we do not see big risks in this regard. These risks are estimated at about $100 million and these are acceptable risks,” Gakhramanov said.

Gakhramanov said that the company had identified three main directions for its future development: strengthening its position in the Turkish petrochemical market, which is one of the most attractive in the world, an increase in gas sales in the Turkish market, which amounts to 4.5 billion cubic meters as of 2021 and sustainable development.

He added that the volume of investments made by SOCAR in projects in Turkey for 12 years amounted to $16.5 billion. In the next couple of years, this figure will reach $19.5 billion.

SOCAR Turkiye Enerji was established at the end of 2006 to implement investment projects in the oil refining, petrochemical spheres and trade in natural gas in Turkey.

SOCAR Turkiye Enerji is the owner of a controlling stake in the petrochemical complex of Turkey Petkim Petrokimya Holding. The company in Turkey has also built an oil refinery “STAR”, a container terminal, a power plant, and is also engaged in the supply of gas to the domestic market, the supply of petroleum products to aircraft refuelling points at the airports of a number of major cities in Turkey.