Southern Gas Corridor Closed Joint-Stock Company (“SGC”) has, for the first time in its history, obtained a Long-Term Issuer Default Rating (IDR) from the international rating agency “Fitch Ratings.” Following an extensive and independent financial analysis, SGC’s Long-Term Issuer Default Rating has been affirmed at "BBB-" / Stable, which is an investment-grade level.

Additionally, “Fitch Ratings” has confirmed SGC's Standalone Credit Profile (SCP) at "bbb-". This is one of the highest Standalone Credit Profile indicators issued not only in Azerbaijan but also across the CIS region. According to “Fitch Ratings,” SGC's rating is constrained by the sovereign rating of Azerbaijan ("BBB-"). Future positive changes in the country's sovereign rating will also have a direct effect on the Company’s rating. This rating once again proves SGC's financial stability and reliability in international financial markets.

For reference, since 2016 to date, SGC had only obtained an Issuance Rating on its Financial instrument, Eurobonds (under a state guarantee).

The full disclosure from the international rating agency “Fitch Ratings” can be reviewed via this link.

SGC is a closed joint-stock company established for the purpose of holding, managing, and financing the Republic of Azerbaijan’s participation shares in the Southern Gas Corridor projects. The Company was founded under the Decree of the President of the Republic of Azerbaijan dated February 25, 2014, No. 287. 51% of SGC's shares are owned by SOCAR, and 49% are held by the Ministry of Economy of the Republic of Azerbaijan, acting on behalf of the State.

The principal part of Southern Gas Corridor CJSC’s (“SGC”) revenues is generated from the sale of crude oil and natural gas, as well as services related to the transportation of natural gas. In 2024 SGC's revenues amounted to US$ 3.2 billion, an increase of 6.0% compared to 2023.

At the same time, SGC closed the fiscal year with a net profit of US$ 1.7 billion, an increase of 33.9% compared to 2023, raising its total equity by 15.9%.

SGC's short and long-term borrowings decreased by 44.0% in the reporting year.

It is noteworthy that the consolidated financial statements of SGC for the year ended 31 December 2024, were audited by a reputable international audit firm "Ernst & Young Holdings (CIS) B.V." and received an unqualified opinion.

Financial statements are available at the following link.

SGC is the entity holding, managing and financing the participating interests of the Republic of Azerbaijan in the Southern Gas Corridor projects. It was incorporated pursuant to Presidential Decree No. 287 dated 25 February 2014. 51% of shares in SGC’s share capital is owned by SOCAR, while 49% of shares is held by the Ministry of Economy of the Republic of Azerbaijan on behalf of the Republic of Azerbaijan.

The principal part of Southern Gas Corridor CJSC’s (“SGC”) revenues is generated from the sale of crude oil and natural gas, as well as services related to the transportation of natural gas. In 2023 SGC's revenues amounted to US$ 3.1 billion, an increase of 15.7% compared to 2022.

At the same time, SGC closed the fiscal year with a net profit of US$ 1.3 billion, increasing its total equity by 22.2%.

SGC's short and long-term borrowings decreased by 9.3% in the reporting year.

It is noteworthy that the consolidated financial statements of SGC for the year ended 31 December 2023, were audited by a reputable international audit firm "Ernst & Young Holdings (CIS) B.V." and received an unqualified opinion.

Financial statements are available at the following link.

SGC is the entity holding, managing and financing the participating interests of the Republic of Azerbaijan in the Southern Gas Corridor projects. It was incorporated pursuant to Presidential Decree No. 287 dated 25 February 2014. 51% of shares in SGC’s share capital is held by the Ministry of Economy of the Republic of Azerbaijan, while 49% of shares is owned by SOCAR.

On 5 June 2024, Southern Gas Corridor CJSC (“SGC”) entered into a sale and purchase agreement with MVM Group (owned by the Republic of Hungary) for the sale of a 5% stake in the Production Sharing Agreement for Shah Deniz offshore gas-condensate field in the territory of Azerbaijan and a 4% stake in Azerbaijan Gas Supply Company Limited (“AGSC”), the exclusive special-purpose vehicle established for the marketing and sale of natural gas produced from Shah Deniz gas-condensate field. The agreement was signed during Baku Energy Week.

The Shah Deniz is one of the world’s largest natural gas-condensate fields and was discovered in 1999. The field is located on the deepwater shelf of the Caspian Sea, approximately 70 km southeast of Baku. The Shah Deniz project is set up as an unincorporated joint venture partnership operated by bp.

Shah Deniz facilities can produce up to 29 billion cubic meters of natural gas and roughly 60 million barrels of condensate annually. The field has significant hydrocarbon reserves and has been producing reliably and steadily for almost 20 years. A total of more than 218 billion cubic meters of natural gas and 371 million barrels of condensate have been produced from the field since inception.

SGC is pleased to welcome MVM Group into the Shah Deniz Production Sharing Agreement to cooperate alongside other leading global energy companies including bp (29.99%), Lukoil (19.99%), TPAO (19%) and NICO (10%) in the unincorporated joint venture.

The transaction is a further testament to Azerbaijan’s key role in European energy security aimed at long-term cooperation and marks the entry of a new energy player in Azerbaijani oil & gas market. The closing of the transaction is expected to take place in Q3’2024 after the satisfaction of customary conditions precedent. Following the closing of the transaction, SGC will hold a 16.02% participating interest in the project.

SGC is the entity holding, managing and financing the participating interests of the Republic of Azerbaijan in the Southern Gas Corridor projects. It was incorporated pursuant to Presidential Decree No. 287 dated 25 February 2014. 51% of shares in SGC’s share capital is held by the Ministry of Economy of the Republic of Azerbaijan, while 49% of shares is owned by SOCAR.