OREANDA-NEWS. August 1, 2011. Ernst & Young Holding has published its audit conclusion on the activities of the State Oil Company of Azerbaijan (SOCAR) in 2010 on the consolidated balance sheet. The auditor informs of a rise in SOCAR accounts receivable by 13.98% and in accounts payable by 17.63%.

According to the conclusion, last year Company’s accounts receivable rose from AZN 2.1 bn up to AZN 2.405 bn. Accounts payable increased from AZN 2.087 bn up to AZN 2.455 bn.

Such dynamics is alarming fact against the background of decisions taken last year. On the one hand, the government made decisions to write off mutual debts in the energy sector that was expected to reduce the amount of SOCAR accounts receivable by at least AZN 1.3 bn, but this did not happen. On the other hand, direct loan of the Central Bank of Azerbaijan (AZN 750 million) should have helped reduce SOCAR accounts payable - the loan was taken precisely for this purpose.

In 2010, SOCAR Group assets increased from AZN 14.8 bn up to AZN 15.726 bn, while overall capital from AZN 8.04 bn up to AZN 8.16 bn.

Company’s net income fell last year from AZN 893.578 million to AZN 655.7 million, while profit before taxation from AZN 1.369 bn to AZN 1.238 bn.

At that, SOCAR earnings for 2010 increased from AZN 4.155 bn up to AZN 5.527 bn (including the volume of sales - from AZN 2.078 bn up to AZN 3.29 bn). Overall income rose from AZN 2.117 bn up to AZN 2.233 bn.