BAKU, Azerbaijan, October 19. The State Oil
Fund of Azerbaijan (SOFAZ) ended 2025 with a net profit of 26.9
billion manat ($15.8 billion), 3.4 times higher than in 2024, with
investments in gold accounting for the largest share of its
investment income.


According to Trend's
calculations based on the fund’s financial statements, the fund’s
total comprehensive income reached 27.36 billion manat ($16.1
billion) at the end of last year, compared with 7.5 billion manat
($4.4 billion) in 2024.


During the reporting period, investments in gold bars played a
particularly important role in increasing SOFAZ’s investment
income. The fund’s income from gold investments reached 16.85
billion manat ($9.91 billion), nearly five times higher than the
almost 3.39 billion manat ($1.99 billion) recorded a year
earlier.


Income from gold investments significantly exceeded income from
the fund’s other investment categories. This demonstrates the
substantial contribution of gold assets to the increase in overall
profit.


Revenues from bond and equity investments
rise


In 2025, SOFAZ’s income from bond investments amounted to 4.14
billion manat ($2.44 billion). This was around 6.1 times higher
than the almost 680.17 million manat ($400.1 million) recorded in
2024.


Income from equity investments also increased. Last year, the
fund earned 5.292 billion manat ($3.11 billion) from this category,
compared with 3.2 billion manat ($1.89 billion) in 2024. Thus,
income from equity investments rose by 64.7% year-on-year.


The fund generated about 360.87 million manat ($212.3 million)
in income from private equity funds, up 4.2% from 346.2 million
manat ($203.7 million) a year earlier.


Income from infrastructure funds also grew. In 2025, these
investments generated 98.08 million manat ($57.7 million) for
SOFAZ, compared with 31.63 million manat ($18.6 million) in 2024,
representing an increase of 3.1 times.


Income from investment property amounted to nearly 73.18 million
manat ($43.0 million), down 13.9% from 84.95 million manat ($50.0
million) a year earlier.


Losses recorded in certain investment
categories


Not all of the fund’s investment categories delivered positive
results in 2025. Real estate funds recorded a loss of 14.05 million
manat ($8.3 million), compared with income of 32.29 million manat
($19 million) in 2024.


Meanwhile, derivative financial instruments generated income of
25.4 million manat ($14.9 million). By comparison, these
instruments recorded a loss of nearly 6.35 million manat ($3.7
million) in 2024.


Foreign exchange losses on financial instruments measured at
amortized cost amounted to 809,000 manat ($476,000), down from
about 108.05 million manat ($63.6 million) in the previous
year.







Interest income calculated using the effective interest rate
method totaled 154.64 million manat ($90.97 million), a decrease of
29.2% compared with 2024. Other income amounted to 31.94 million
manat ($18.8 million), down 17.5% year-on-year.


At the same time, SOFAZ’s share of the post-tax financial
results of joint ventures generated income of 43.64 million manat
($25.7 million). This was 71.3% higher than the 25.47 million manat
($15 million) recorded in 2024.


Operating expenses reached 140.9 million manat ($82.9
million)


In 2025, SOFAZ’s operating expenses amounted to 140.93 million
manat ($82.9 million), up 78.2% from 79.1 million manat ($46.5
million) a year earlier.


The fund’s income tax payments totaled 2.97 million manat ($1.75
million), down from 4.78 million manat ($2.8 million) in 2024.
Thus, income tax payments decreased by 37.9%.


The figures presented in the financial statements demonstrate
that higher investment income had a significant impact on the
fund’s financial performance. In particular, returns from gold,
bonds, and equities were the main contributors to the increase in
SOFAZ’s profit in 2025.


SOFAZ’s assets exceed 125.7 billion manat ($73.9
billion)


As of January 1, 2026, SOFAZ’s assets totaled 125.72 billion
manat ($73.95 billion), representing an annual increase of
22.5%.


As of the same date, the fund’s liabilities amounted to about
471.7 million manat ($277.5 million), an increase of 11.3% compared
with the end of 2024.


The fund’s equity rose to roughly 125.25 billion manat ($73.68
billion), also recording an annual increase of 22.5%.


Thus, both SOFAZ’s assets and equity increased substantially by
the end of 2025. Net profit exceeding 26.9 billion manat ($15.8
billion) and assets reaching 125.7 billion manat ($73.9 billion)
were among the key financial results of the reporting year.


The State Oil Fund of Azerbaijan was established by a
presidential decree dated December 29, 1999. Its primary objective
is to ensure the accumulation and effective management of revenues
and other funds generated from the exploration and development of
the country’s oil and gas reserves, as well as from the fund’s own
activities, in the interests of present and future generations of
Azerbaijani citizens.