The international rating agency S&P Global Ratings has revealed that AzerEnergy’s annual capital expenditure in 2024-2025 is expected to be around 340-350 million manats ($200-210 million), compared to 696 million manats (over $409 million) in 2023. This reduction in spending is projected to result in a positive annual free operating cash flow of approximately 110 million manats.

This is while S&P forecasts a moderate increase in AzerEnergy’s net debt to 1.2-1.3 billion manats in 2024-2025, as the company plans to issue new debt obligations to support its capital investment plan. As a result, the ratio of funds from operations (FFO) to debt is expected to exceed 30% over the next two years. S&P notes that capital investments may further increase if the government directs AzerEnergy to continue investing.