hello, I have a project, and my company is SOCAR - State Oil Company of Azerbaijan...

hello, I have a project, and my company is SOCAR - State Oil Company of Azerbaijan Republic.

I have to write;

- WHAT CAN HAPPEN / what is happening with this company now - when the pandemia is out?

- what is generally changing in our environment?

you can analyze according to the same industry as SOCAR is. thanks.

Expert Solution

There is no doubt in the fact that the company would have to bear losses because the demand is low now, there are less buyers in the market and the oil has to sell to fetch revenue but it’s not happening because of the pandemic. The initial few months could be ok to survive since the company has some surplus cash in the bank but it would start feeling the heat once the funds start drying up. In such a situation the company could ask for help from its regular customers to which it supplies with the intention of repaying in some form or the other in the long term business relationships.

Generally the demand is getting lesser in the environment and also since the manufacturing units are sealed and stopped functioning so the supply is also quite less so this lack of demand is making the company lose a lot of money and sooner or later the financial burden would arrive which is not beneficial for the short term as well as the long term plans for the company would go for a toss.

keosha answered 1 week ago

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