MOSCOW (MRC) -- The trading arm of Azerbaijan's state oil firm, Socar, expects to lose around USD9 M because of bad debts with Morocco's troubled refiner Samir, it stated along with record 2015 results published this week in Malta, said Hydrocarbonprocessing.
The refiner that runs Morocco's only refinery at Mohammedia has been ordered into liquidation after racking up millions in debt to creditors and approximately USD1.3 B in unpaid taxes to the government. Socar Trading Holding Ltd., headquartered in Geneva, estimated a net USD9 M loss with Samir after taking into account partial debt recovery through insurance.
Samir, in which Saudi billionaire Mohammed al-Amoudi's Corral Holdings has a 67.3% stake, was granted in June another six months to attract a buyer. Socar Trading said it made a record net profit for the year of USD91.4 M, up from USD27.1 M in 2014 on the back of profitable third party business, the gradual ramp up of storage operations at the Russian oil terminal Ust-Luga and the dismissal of non-performing traders.
Revenues were down in 2015 at USD22.65 B versus USD39.02 B in 2014. The gross volume of commodities traded fell year-on-year to 47.7 M tons from 48.6 M tons. Just under half the volume was system barrels, 10.2 M tons was third party crude oil and 15 M tons were refined products.
Socar expanded its presence in Africa in 2015 by buying a 20% stake in Benin's Octogone Stockage de Produits Petroliers that deals with crude storage.
Socar Trading is also set to expand in Angola after setting up a new company, STL Oil and Gas SA, in which it holds a 49% stake. It already has a presence on the trading side in Nigeria and Egypt.
According to the Switzerland's company registry, STL's purpose is to hold and manage investments in the upstream oil and gas industry in Angola.
Earlier this year, Socar Trading's chief executive told Reuters that it was also looking to renew deals with Iran.
As MRC informed earlier, Cryogenmash company, included in Gazprombank Group, will develop and deliver a nitrogen unit for the construction project of SOCAR Polymer company’s plants for the production of polypropylene and high density polyethylene.
SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.
MRC