The oil and gas revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) amounted to AZN 4 914.7 million during the period of January-June 2020. AZN 4 130.1 million was received from the implementation of oil and gas agreements. The average net price of crude oil for these months constituted $38.7. During this period, AZN 767.8 million was generated from bonus payments, AZN 10.6 million from transit revenues and AZN 6.2 million from acreage payments.

On aggregate, SOFAZ’s budget expenditures constituted AZN 5 824.8 million during January-June of the current year. Despite the sharp decline in crude oil prices throughout this period, SOFAZ has ensured the implementation of its functions related to the protection of macroeconomic and fiscal balance, the fulfilment of obligations to the consolidated and state budget. Thus, AZN 5 675.0 million were transferred to the state budget, while AZN 140.0 million were directed to financing the improvement of social-economic condition of internally displaced persons and AZN 77.9 thousand were allocated to the “State Program on Raising Competitiveness of Higher Education in Azerbaijan in 2019-2023”. During this period, SOFAZ’s administrative and operational expenses for the reporting period were AZN 9.7 million.

In light of the devastating impact the novel coronavirus is having on the global economy, SOFAZ’s assets have also come under pressure by the on-going fluctuations in the financial markets in the first half of 2020. Nevertheless, as noted earlier, SOFAZ has managed to navigate a safe passage through the unprecedented global pandemic, by ensuring its investment portfolio is optimal and robust to a range of possible scenarios. There was also rising optimism about the global economy in the second quarter of the year – especially in developed countries – as governments took a steady approach in lifting the stringent lockdown restrictions to prevent the virus's resurgence, together with fiscal and monetary easing measures to support the economy. Given the positive tendency in the global financial markets during the second quarter, the major equity indices have surged by 18%-20% during the period. As a result, the Fund’s second quarter performance figures also showed strong gains.

During the second quarter (April-June), revenues from the management of SOFAZ’s assets totalled AZN 1 953.8 million, while extra-budgetary revenues related to the foreign exchange movements amounted to AZN 1 216.1 million.

Considering the results for the first quarter (January-March), the market value change of SOFAZ assets stemming from the short-term market volatility has declined by AZN 194.9 million during January-June of the current year. During this period, extra-budgetary revenues related to the foreign exchange movements totalled AZN 935 million.

Consequently, the value of the Fund's assets under management as of June 30, 2020 increased by USD 1 873.8 million compared to the end of the first quarter of 2020 (USD 41 349.5 million) and stood at USD 43 223.3 million.