Azeraluminium Supervisory Board held a meeting to discuss draft budget for 2023


November 15, Fineko/ The Supervisory Board of Azeraluminium LLC held a meeting and discussed the draft budget for 2023.

Azerbaijan Industrial Corporation reports that the budget for the next year has been prepared taking into account the necessary recommendations and tasks.

The draft budget for 2023 has been prepared based on three scenarios: basic, pessimistic and optimistic.

"When preparing the budget, the situation in the global economy was taken into account. In particular, after the damage caused to the global economy by the COVID-19 pandemic, the energy crisis caused by the Russian-Ukrainian war, the continuing decline in economic activity in the global aluminum industry, problems with traditional logistics routes and a number of other equally serious risks, the global economy faced the threat of stagflation," the corporation stressed.

In addition, the sharp volatility in global stock markets has created difficulties in drawing up long-term plans.

Therefore, when preparing the draft budget, the above factors were taken into account, possible measures for diversification and optimization of risky sales markets and logistics routes were considered.

"It was decided to reduce sales volumes to a minimum in the months when minimum prices are forecast. As a result, it is planned to meet the working capital needs at the expense of bank loans. In addition, in order to ensure the continuity of production, a plan has been drawn up for the purchase of raw materials and materials not on traditional schedules, but on more appropriate schedules, taking into account the risks mentioned above," the company stressed.