BAKU, Azerbaijan, December 5. The Southern Gas Corridor close joint-stock company (CJSC) is expected to distribute most annually generated cash as dividends to SOCAR and Azerbaijani state from 2026, TurkicWorld reports via Fitch Ratings.
"We forecast Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) net leverage at around 0.5x on average over 2025-2028 (0.3x in 2024), driven by continued strong cash flow generation and low capex. We forecast that from 2026, SGC will distribute most annually generated cash as dividends to SOCAR and the state. We focus our analysis on SGC's consolidated profile, which includes full consolidation of TANAP (implying dividends to minorities), proportionate consolidation of the stakes in Shah Deniz PSA and in South Caucasus Pipeline, and dividends from the share in TAP," reads the latest Fitch report.
The rating agency analysts expect SGC's rating construction to be unchanged following the potential sale of a stake in the company to XRG, an investment platform of Abu Dhabi National Oil Company.
"We believe Azerbaijan will keep control and decision-making power of SGC. The transaction may be positive from a corporate governance and technological perspective, and ease access to financing if parties decide to increase projects' capacity."
