Financial and Operational Report of ME "Volynpryrodresurs" (VPR) for the First Nine Months of 2023 Compared to the First Half of 2023

The Municipal Enterprise "Volynpryrodresurs" of the Volyn Regional Council operates to contribute to the Volyn Regional Budget and pays taxes to the state budget. 

ME "Volynpryrodresurs" continues to improve its amber and peat extraction performance by enhancing the efficiency of its business processes.

The following trends demonstrate the growth in performance indicators for 2023:

1. Revenue in Q2 increased by 8.8% compared to Q1.

2. Revenue in Q3 increased by 24.4% compared to Q2.

3. Profit in Q2 increased by 28.5% compared to Q1.

4. Profit in Q3 increased by 25.8% compared to Q2.

These figures reflect the enterprise’s efforts to enhance its capacity, increase extraction volumes, and optimize production processes.

Comparison of Key Indicators for Q3 2023 and the First Half of 2023

In the third quarter of 2023, the Municipal Enterprise "Volynpryrodresurs" of the Volyn Regional Council continued its successful extraction of amber and peat. Accordingly, the financial and economic performance indicators are provided below, including those related to the implementation of the joint activity agreement with LLC "Mineral Extraction" and the agreement with the State Enterprise "Volyntorff."

The following data compares the performance for Q3 2023 and the first half of 2023 under the joint activity agreement with LLC "Nadrovidobuvannya" and the agreement with the State Enterprise "Volyntorff"

Видобуток бурштину та дохід від його реалізації

The Municipal Enterprise "Volynpryrodresurs" holds four special permits (Nos. 6172, 6173, 6174, and 6175) for subsoil use for the purpose of amber extraction.

Under the joint activity agreement with LLC "Mineral Extraction," ME "Volynpryrodresurs" extracted 7,677.713 kg of amber of various fractions and quality groups in the first half of 2023, selling 8,410.627 kg for a total of 60.187 million UAH. In the third quarter of 2023, the enterprise extracted 5,022.148 kg of amber and sold 5,292.948 kg for a total of 40,823,616.47 UAH. The amber stock in the warehouse as of the end of Q3 2023 amounted to 920.019 kg.

Amber sales are conducted based on prices approved by the classifier of the State Gemological Center of the Ministry of Finance of Ukraine and the conclusions of gemological object assessments.

Peat Extraction and Revenue from Sales

ME "Volynpryrodresurs" holds four special permits (Nos. 6176, 6177, 6178, and 6179) for subsoil use for the purpose of extracting peat suitable for briquette production and compost preparation.

Comparison of Peat Extraction Costs and Volumes for Q3 2023 and the First Half of 2023

In 2023, peat extraction was conducted at the "Koza-Berezyna" peat bog in the Kamian-Kashyrskyi District, serving as the raw material base for the peat briquette plant of the State Enterprise "Volyntorff" in Soyne. Extraction also continued at the "Velyke Bahno" deposit in the Kolky community, with peat supplied for processing to the Manevychi peat briquette plant, a branch of the State Enterprise "Volyntorff." 

As of September 30, 2023, the remaining stock of milled peat in stockpiles from the 2023 extraction season at the deposits was as follows:

• "Velyke Bahno": 26,856 tonnes 

• "Koza Berezyna": 19,928 tonnes

Dividends Paid to the Volyn Regional Council

For the first half of 2023, based on quarterly financial and economic performance, 2,319,655.00 UAH was paid to the general fund of the Volyn Regional Budget from a 15% share of net profit.

In comparison, for Q3 2023, 1,588,939.00 UAH was paid from a 15% share of net profit. This indicates a positive quarterly growth in all profitability indicators for the enterprise.
 

For the first nine months of 2023, ME "Volynpryrodresurs" exceeded its plan by 78.77% in revenue and by 83.96% in profit.