ASCO’s financial results for the first half of 2026: Revenue up by just 3.6%, while net profit surges nearly 38-fold
State-owned “Azerbaijan Caspian Shipping” CJSC (ASCO) concluded the January–June period of the current year with 23.38 million manats in net profit, demonstrating a sharp increase in operational efficiency
Sea-news.az reports citing Marja.az, that “Azerbaijan Caspian Shipping” CJSC (ASCO) has released its semi-annual financial report for 2026. The financial indicators achieved during the reporting period show that profit multiplied as a result of operational efficiency and strict cost control.
Key Financial Indicators and Profit Dynamics
- Net Profit: ASCO completed the first half of the year with 23 million 386 thousand manats in net profit. During the same period last year, this figure was a mere 618 thousand manats, meaning net profit grew 37.8-fold (an increase of 22 million 768 thousand manats) year-over-year.
- Revenues: The company’s total revenues rose from 247 million 462 thousand manats in January–June 2025 to 256 million 421 thousand manats (a 3.6% or 8 million 959 thousand manat increase).
- Revenue Sources: Growth was primarily driven by maritime transport services (rising from 99 million 929 thousand manats to 113 million 105 thousand manats, or 13.2%). Meanwhile, revenues from cargo and passenger transportation decreased from 130 million 79 thousand manats to 127 million 584 thousand manats (down 1.9%).
Operating Profit and Cost Optimization
A standout feature of ASCO’s results is that despite moderate revenue growth, net profit soared dramatically. This dynamic is explained by declining costs and enhanced operational efficiency:
- EBIT (Earnings Before Interest and Taxes): Rose from 1 million 208 thousand manats in the first half of last year to 19 million 726 thousand manats, representing more than a 16-fold increase.
- EBITDA: Reached 83 million 831 thousand manats, up from 50 million 403 thousand manats (a 66.3% increase).
- Expenses: Total operating expenses, which stood at 246 million 254 thousand manats in the first half of 2025, dropped by approximately 3.9% to 236 million 695 thousand manats in 2026. Alongside revenue growth, a cost reduction of ~9.6 million manats enabled a massive 18.5 million manat surge in EBIT.
- Foreign Exchange: While the company suffered a 2 million 776 thousand manat loss from exchange rate differences in the first half of last year, it generated a 2 million 704 thousand manat gain during the same period in 2026, delivering a positive year-over-year profit impact of ~5.5 million manats.
Margins and Asset Position
Improvements in operational efficiency directly impacted the company’s profitability metrics:
- Net Profit Margin: Climbed from roughly 0.25% last year to 9.1%.
- EBITDA Margin: Reached 32.7%, up from 20.4%.
- Assets and Liabilities: As of June 30, 2026, ASCO’s total assets stood at 1 billion 789 million 666 thousand manats (compared to 1 billion 795 million 538 thousand manats a year prior, a slight decrease of 5 million 872 thousand manats or 0.3%). Total liabilities increased from 510 million 312 thousand manats to 603 million 904 thousand manats (an 18.3% rise). Total equity stood at 1 billion 185 million 762 thousand manats.
