Deloitte appreciates Azerbaijani electrical power producer's financial activity

"Azerenerji" JSC is taking important steps towards the improvement of its activities and enhancing business relations with its partners.

On April 12, an event dedicated to the activities of Azerenerji has been organized with participation of representatives from Cabinet of Ministers of Azerbaijan Republic, Ministries, International Financial Institutions, Commercial Banks and Audit Firms.

An audit had been conducted in accordance with International Financial Reporting Standarts (IFRS) in Azereberji in a short period of time and received positive opinion from one of "Big 4" firms "Deloitte & Touce"

In recent years Azerenerji is carryng out successfully a number of corporate reforms as well. New structures have been created aiming at determination of sustainable and strong development strategy. The company is conducting complex actions in connection with the application of Enterprise Resource Planning and advanced Billing systems for the purpose of strengthening the financial reporting and sales system within the company.

The total amount of Azerenerji’s debts include 1.7 billion Azerbaijan Manat. 80% of this debt is long-term being state-guaranteed loans.

The borrowed loans have been used for financing of major projects in power sector.

As the debts are long-term (10 to 40 years), they don’t have a significant impact on Company’s current financial status. As the power sector is one of the priority spheres for Azerbaijan Government, large investment of capital was allocated. The significant part of the investment were directed the construction of new power plants and rehabilitation of generation capacities. The implemented works improved the energy supply in the country and Azerenerji has become a company holding the most modern generation capacity equipment among CIS countries. Worth to mention that, the total capital of the company reached 1.4 billion manats in the recent year.

Azerenerji’s another major field of activity contains the rehabilitation of the old infrastructure for the purpose of decreasing the losses in transmission and distribution grids. To this regard, the long term loans are being allocated from International financial Institutions (Asian Development Bank etc.), and relevant Eurobond issuance is planned in the future as well.

Azerenerji is also increasing exports to the foreign countries. In the last five years Azerenerji became a net electricity exporter. In mid-2012 electric power export to Turkey and Europe is planned within the framework of "Azerbaijan-Georgia-Turkey" Power Bridge Project. The increase of energy export will eventually result in significant growth of the company.


/Trend/