Caspian Drilling Company Limited (CDC), in which Azerbaijan's State Oil Company (SOCAR) holds a controlling stake, recorded a net profit of $62.13 million in 2025, down 7.4% from $67.12 million a year earlier, despite improvements in revenue and operating profitability. According to the company's audited annual financial statements, revenue increased by 1.2% year on year to $201.15 million, while the cost of sales declined by 8.5% to $126.55 million. The reduction in production and service costs helped lift gross profit by 23.1% to $74.60 million, indicating an improvement in the profitability of the company's core drilling operations.
Operating profit also increased, rising by 15.7% to $73.39 million. However, higher administrative expenses and a substantial change in the company's income tax position weighed on its final financial result. General and administrative expenses rose by 24.3% to $14.71 million, while other operating income declined by 49.8% to $11.46 million.
Despite these developments, CDC's pre-tax profit increased by 23.1% to $78.99 million. The decline in net profit was primarily associated with a change in taxation. While the company recorded an income tax benefit of $2.98 million in 2024, it recognised an income tax expense of $16.85 million in 2025.
The shift in the tax position more than offset the increase in pre-tax earnings, resulting in lower net profitability for the year. Nevertheless, the company's accumulated retained earnings continued to grow, increasing by 18.4% from $338.49 million to $400.62 million. CDC's financial position strengthened in several areas during 2025.
Total assets rose by 9.4% to $834.47 million, while shareholders' equity increased by 9.9% to $686.92 million. Total liabilities grew by 6.8% to $147.55 million. The company's cash and cash equivalents increased by 3.3% to $242.11 million, while trade and other receivables rose by 14.1% to $46.27 million.
Inventories also increased, reaching $58.81 million, up 6.6% compared with the previous year. Meanwhile, trade and other payables climbed by 47.2% to $28.78 million, and the short-term portion of bank deposits declined by 14.4% to $27.39 million. A notable change was recorded in the structure of CDC's balance sheet.
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