Quarterly report on production and financial activities

KP "Kremenchukvodokanal"

as of 01.04.2024

KP "Kremenchukvodokanal", whose main goal is to provide city residents with quality and timely services for centralized water supply and centralized wastewater disposal, has long been operating in difficult financial and economic conditions. According to the results of the reporting period, the company received results for the first quarter of 2024 with a loss of -5 thousand UAH.

The main reason for the loss is the increase in material costs, as well as a decrease in the volume of services provided. During the mentioned period, KP "Kremenchukvodokanal" provided the following services:

There was a decrease in the actual volume of services provided. This decrease in sales also affects the reduction of expected income.

        In monetary terms, the production of centralized water supply and centralized wastewater services for the 1st quarter of 2024 amounted to 62,272.6 thousand UAH.

KP "Kremenchukvodokanal" is licensed by the National Commission for State Regulation of Energy and Utilities (NERC). According to the Law of Ukraine "On State Regulation in the Field of Utilities" and the Law of Ukraine "On the National Commission for State Regulation in the Fields of Energy and Utilities," the functions and powers related to the establishment, regulation, application of tariffs, and supervision and control over the company`s activities are carried out by NERC.

By NERC Resolution No. 2874 dated 22.12.2021 "On the establishment of tariffs for centralized water supply and centralized wastewater services for KP `Kremenchukvodokanal`," effective from January 1, 2022, the following tariffs were established:

- For centralized water supply: 11.92 UAH per 1 cubic meter (excluding VAT)

- For centralized wastewater services: 14.58 UAH per 1 cubic meter (excluding VAT)

The company is working on establishing economically justified tariffs for the above-mentioned services. Current legislation does not impose a moratorium on changing (increasing) tariffs in the field of centralized water supply and centralized wastewater services. However, the NERC`s policy during wartime is imperfect, and as a result, economically justified tariffs have not been established for the period from 2022 to the 1st quarter of 2024. As of now, NERC is considering the possibility of reviewing tariffs to balance the interests of consumers, water supply, and sewage enterprises, and the state. This is a complex process that requires consideration of several factors.

        Total current accounts payable amount to:

        

        There is also accounts receivable, which as of 01.04.2024 amounts to 124,254 thousand UAH, including for centralized water supply and wastewater services (consumer debt):

    Despite the martial law in the country, the issue of water purification does not lose its relevance but only gains importance. The main task assigned to the enterprise is to provide high-quality services of centralized water supply and wastewater disposal to the population, enterprises, institutions, and organizations of the city of Kremenchuk and Kremenchuk district. In addition, the responsibilities of the enterprise include the timely elimination of water supply and sewerage network breaks, the elimination of backups, the replacement of worn-out pipes and shut-off regulating fittings on emergency sections, and other functions.

Production Activity Indicators for the 1st Quarter of 2024

Water Supply:

- Water extracted from all drinking water sources: 4 863.8 thous.m³;

- Average daily water extraction volume 53.4 thous.m³;

- Drinking water consumption for technological needs to the network: 308.7 thous.m³;

- Water losses to the network: 46.8 thous.m³;

- Technical water sold: 855.8 thous.m³;

- Supplied to the water supply and distribution system: 3 652.5 thous.m³ of drinking water;

- Average daily volume of water supplied to the water supply and distribution system 40.1 thous.m³;

- Drinking water consumption for technological needs in the network: 90.6 thous.m³;

- Water losses and unaccounted water losses from the network: 1 084.6 thous.m³ of water;

- Total drinking water supply volume: 2 477.3 thous.m³;

- The total length of water supply networks on the balance sheet is 440.15 km,

including:

- trunk pipelines 69.32 km;

- street network 174.88 km;

- inner-quarter and yard 195.95 km;

- Worn-out and emergency networks 121.83 km, or 27.7 % of the total length.

Wastewater Disposal:

- Volume of wastewater treated at sewage treatment plants 4 235.7 thous.m³ ;

- Average daily volume of wastewater treated at sewage treatment plants 46.5 thous.m³;

- Total volume of wastewater services 2 244.7 thous.m³;

- Total length of sewer networks on balance is 272.69 km,

including:

- Pressure pipelines 43.04 km;

- Street network 98.82 km;

- Inner-quarter and yard network 130.83 km;

- Worn-out and emergency networks 203.21 km, or 76.4% of the total length.

Implementation of the Investment Program of KP "Kremenchukvodokanal"

for the 1st Quarter of 2024

№	Activities	Cost, thous. UAH	Execution, thous. UAH
WATER SUPPLY
1.1.1	Replacement (capital repair) of the cold water supply pump equipment of PNS-6 at Heroes of Krut St., 17-A in Kremenchuk	4,103.46	885.00
1.2.3.1	Capital repair of the block network section along Cooperative St. (from Bryhadna St. to Yurii Kondratiuk St.) in Kremenchuk. Adjustment	5,648.09	244.22
1.7.1	Project "Urban Infrastructure Development"	3,136.63	1,508.54
1.7.2	Development of project and cost documentation	298.53	0.00
Total water supply		13,186.71	2,637.76
WATER DRAINAGE
2.4.1	Acquisition of sludge vacuum machine	2,791.67	0.00
2.4.2	Acquisition of dump truck	3,879.17	0.00
2.5.1	Reconstruction of pressure sewage collector from SP 15 to Kriukiv KOS in Kremenchuk. (adjustment)	901.81	0.00
2.5.2	Capital repair of the aeration system with replacement of disk aerators in the bioreactors at the sewage treatment plant section of the water supply workshop of Kremenchukvodokanal in Kremenchuk, Poltava region	2,964.78	226.74
2.6.1	Project "Urban Infrastructure Development"	14,435.52	6,942.67
Total drainage		24,972.95	7,169.41
Total		38,159.66	9,807.17
		26%