In 2013, the loss of state water company exceeded AZN 1 billion

JSC Azersu, the state monopoly on water supply and sanitation services in 2013 suffered losses totaling 1 billion. 34.4 million AZN. As of January 1 this year, the cumulative losses of the company, given its 9 subsidiaries exceeds 3.5 billion AZN, the audit report of the financial report of the company for the past year said.

The financial position of JSC Azersu can be regarded as very unfavorable: its current liabilities (about 460 million AZN) exceed its current assets by 374.4 million AZN.

Losses of water are produced mainly by the investment activities of the state for the construction and modernization of water supply and sanitation. At the beginning of this year, public investment in that sector in accordance with international loans (163.3 million. Manat) was 3 billion. 156 million. Manat. Just last year, the amount of these investments amounted to 867 million. Manat.

  In 2013, revenues from the sale of JSC Azersu water decreased compared to the previous year by 2.6 million AZN to 110.3 million AZN. Water runoff from the company was saved 17,154,700 manats, 5.4 times more than in 2012. In addition, by providing technical specifications, sales counters, conducting research and design work have been earned 7.4 million AZN (+0.6 million AZN). In general, the cash receipts of the company for the past year amounted to 134.8 million AZN, increasing by 9.7%.

Last year, the cost of sales amounted to 93.2 million AZN, decreasing by 12.2 million AZN. However, taking into account the administrative (30.6 million AZN), sales and distribution (74.5 mln. AZN) and depreciation of fixed assets (987.5 million AZN) JSC Azersu costs totaled 1 billion 186 million AZN.

As of 1st January 2014 the debts of the population of water supply and sewerage services were 45.2 million AZN, and of the “not population” category - 13 million AZN. Note that these debts are periodically devalued and the company writes off bad debts. - 08D-