Advertisement
UK markets close in 39 minutes
  • FTSE 100

    8,199.94
    -54.24 (-0.66%)
     
  • FTSE 250

    20,489.42
    -215.85 (-1.04%)
     
  • AIM

    801.24
    -7.12 (-0.88%)
     
  • GBP/EUR

    1.1756
    +0.0007 (+0.06%)
     
  • GBP/USD

    1.2717
    -0.0047 (-0.37%)
     
  • Bitcoin GBP

    53,201.66
    -149.05 (-0.28%)
     
  • CMC Crypto 200

    1,455.76
    -28.94 (-1.95%)
     
  • S&P 500

    5,279.20
    -26.84 (-0.51%)
     
  • DOW

    38,516.67
    -336.19 (-0.87%)
     
  • CRUDE OIL

    79.82
    -0.01 (-0.01%)
     
  • GOLD FUTURES

    2,346.10
    -10.40 (-0.44%)
     
  • NIKKEI 225

    38,556.87
    -298.50 (-0.77%)
     
  • HANG SENG

    18,477.01
    -344.15 (-1.83%)
     
  • DAX

    18,508.25
    -169.62 (-0.91%)
     
  • CAC 40

    7,958.42
    -99.38 (-1.23%)
     

AS Tallinna Vesi’s financial results for the first quarter of 2023

Tallinna Vesi
Tallinna Vesi

In the first quarter of 2023, AS Tallinna Vesi earned €14.6 million in revenue and €3.50 million in net profit. The level of investments in fixed assets in the first quarter increased by 68% compared to the previous period, reaching €4.7 million.

In 2023, the sales from water services increased by 18.6% in the first quarter compared to the same period last year.

Sales from water services provided to commercial customers in the main service area increased by approximately 11% in the first quarter, reaching €4.27 million. “Sales in the first quarter increased due to sales price reflecting increased direct production cost and the increase in water consumption by the hospitality and leisure establishments in the capital area. The increase in sales was also influenced by the significant increase in construction volumes," said Aleksandr Timofejev, CEO of Tallinna Vesi. Sales from water services provided to private customers increased by 23.2% in the first quarter compared to a year ago, reaching €6.04 million.

ADVERTISEMENT

The Company's gross profit for the first quarter was €5.71 million, increasing by €1.33 million compared to the same period last year. "The recovery in gross profit is related to the sales price reflecting the increase in production cost. Gross profit increased by 30.4% compared to the same period last year," Timofejev explained.

The Company’s operating profit in the first quarter amounted to €4.1 million, which is €1.07 million more compared to the same period last year.

The Company’s net profit was €3.5 million in the first quarter of 2023, which is €0.62 more than in the same period in 2022.

Compared to the first quarter of 2022, the sales from construction services provided by the subsidiary Watercom increased by 119.7%, or €0.44 million. The increase in sales is mainly related to the increase in construction volumes in 2023 and the projects carried over from 2022 to 2023.

Tallinna Vesi has increased investments in fixed assets to ensure the sustainability of its infrastructure and the service continuity. In the first three months of this year, AS Tallinna Vesi has invested as much as €4.7 million in fixed assets, which is 68% more compared to the same period last year.

The investment plan for the following years is prepared based on the Public Water Supply and Sewerage Development Plan for the next 12 years, ordered by the City of Tallinn and prepared by AS Infragate, which can be found as a document on the website of the City of Tallinn. “Current and future investments will continue to ensure the high-quality drinking water for the residents of Tallinn and help to keep the natural environment cleaner, increasing both the average life span of pipelines and the efficiency of treatment systems by means of modern technologies and materials. That way, we can ensure the continuity of a vital service at an affordable price and with the least possible disruption to residents’ daily life," said Timofejev.

AS Tallinna Vesi will gradually switch to remote readable water meters, which will free customers from the obligation of reporting their water meter readings every month. The first three thousand customers have already received their new smart meters and this year, the installation will continue at an accelerated pace. The plan is to cover the entire service area of AS Tallinna Vesi with remote water meters by 2026.

As an important project, the installation of a new pump was completed in the main wastewater pumping station at the Wastewater Treatment Plant at Paljassaare. Projects currently in progress include the installation of a valve between the suction basins at the main wastewater pumping station, reconstruction of digesters, installation of a cogeneration plant and reconstruction of aeration tanks, additional screens for the main wastewater pumping station, reconstruction of screens at the wastewater treatment plant and reconstruction of secondary clarifiers.

Additionally, AS Tallinna Vesi has started studies to identify the potential for heat recovery from the air of air blowers and is participating in a research project funded by Interreg on the application of various technologies to remove PFASs from wastewater. The Company is also involved in another Interreg project, aiming to test new technologies for removing APIs from wastewater.


Main financial indicators

€ million,
except key ratios

1st quarter

Change 2023/ 2022

2023

2022

2021

Sales

14.60

12.05

11.78

21.1%

Gross profit

5.71

4.38

5.18

30.4%

Gross profit margin %

39.13

36.36

43.97

7.6%

Operating profit before depreciation and amortisation

6.02

4.64

6.23

29.6%

Operating profit before depreciation and amortisation margin %

41.22

38.53

52.83

7.0%

Operating profit

4.07

3.00

4.66

35.6%

Operating profit - main business

3.91

2.92

4.50

34.2%

Operating profit margin %

27.89

24.92

39.55

11.9%

Profit before taxes

3.53

2.91

4.57

21.3%

Profit before taxes margin %

24.16

24.13

38.78

0.1%

Net profit

3.50

2.88

4.55

21.6%

Net profit margin %

23.97

23.88

38.59

0.4%

ROA %

1.38

1.12

2.09

23.0%

Debt to total capital employed %

55.19

54.17

54.83

1.9%

ROE %

3.11

2.46

4.70

26.2%

Current ratio

1.46

3.20

4.48

-54.4%

Quick ratio

1.38

3.13

4.42

-55.9%

Investments into fixed assets

4.67

2.78

2.28

68.0%

Payout ratio %

na

na

na

 

Gross profit margin – Gross profit / Net sales
Operating profit before depreciation and amortisation – Operating profit + depreciation and amortisation
Operating profit before depreciation and amortisation margin – Operating profit before depreciation and amortisation / Net sales
Operating profit margin – Operating profit / Net sales
Net profit margin – Net profit / Net sales
ROA – Net profit / Average Total assets for the period
Debt to Total capital employed – Total liabilities / Total capital employed
ROE – Net profit / Average Total equity for the period
Current ratio – Current assets / Current liabilities
Quick ratio – (Current assets – Stocks) / Current liabilities
Payout ratio - Total Dividends per annum/ Total Net Income per annum
Main business – water services related activities, excl. connections profit and government grants, construction services, doubtful receivables


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ thousand

 

 

 

 

as of 31 March

as of 31 December

ASSETS

 

 

 

Note

2023

2022

2022

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

3

12,889

37,570

12,650

 

Trade receivables, accrued income and prepaid expenses

 

 

7,679

6,228

8,989

 

Inventories

 

 

 

 

1,319

922

1,197

TOTAL CURRENT ASSETS

 

 

 

21,887

44,720

22,836

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

Property, plant, and equipment

 

 

4

232,513

212,732

229,869

 

Intangible assets

 

 

 

5

765

690

688

TOTAL NON-CURRENT ASSETS

 

 

 

233,278

213,422

230,557

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

255,165

258,142

253,393

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Leases

 

 

 

963

464

883

 

Loans

 

 

 

3,630

3,630

3,630

 

Trade and other payables

 

 

 

7,752

6,587

10,225

 

Prepayments

 

 

 

 

2,596

3,302

3,749

TOTAL CURRENT LIABILITIES

 

 

 

14,941

13,983

18,487

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

Deferred income from connection fees

 

 

 

40,950

37,727

39,150

 

Leases

 

 

 

 

1,60

1,297

1,607

 

Loans

 

 

 

 

76,716

80,348

76,708

 

Provision for possible third-party claims

 

 

6

6,018

6,018

6,018

 

Deferred tax liability

 

 

 

 

523

402

496

 

Other payables

 

 

 

 

89

68

101

TOTAL NON-CURRENT LIABILITIES

 

 

 

125,899

125,860

124,080

TOTAL LIABILITIES

 

 

 

 

140,840

139,843

142,567

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Share capital

 

 

 

 

12,000

12,000

12,000

 

Share premium

 

 

 

 

24,734

24,734

24,734

 

Statutory legal reserve

 

 

 

1,278

1,278

1,278

 

Retained earnings

 

 

 

 

76,313

80,287

72,814

TOTAL EQUITY

 

 

 

 

114,325

118,299

110,826

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

 

255,165

258,142

253,393


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ thousand

 

 

                   Quarter 1

 

for the year ended 31 December

 

 

 

 

Note

2023

2022

 

 

2022

 

 

 

 

 

 

 

 

 

 

Revenue

 

7

14,599

12,053

 

 

54,558

Cost of goods and services sold

 

9

-8,887

-7,670

 

 

-37,660

GROSS PROFIT

 

 

5,712

4,383

 

 

16,898

 

 

 

 

 

 

 

 

 

 

Marketing expenses

 

9

-215

-199

 

 

-703

General administration expenses

 

9

-1,303

-1,131

 

 

-4,399

Other income (+)/ expenses (-)

 

10

-122

-48

 

 

-476

OPERATING PROFIT

 

 

4,072

3,005

 

 

11,320

 

 

 

 

 

 

 

 

 

 

Financial income

 

11

10

1

 

 

8

Financial expenses

 

11

-555

-97

 

 

-682

PROFIT BEFORE TAXES

 

 

3,527

2,909

 

 

10,646

 

 

 

 

 

 

 

 

 

 

Income tax

 

12

-28

-30

 

 

-2,240

 

 

 

 

 

 

 

 

 

 

NET PROFIT FOR THE PERIOD

 

3,499

2,879

 

 

8,406

COMPREHENSIVE INCOME FOR THE PERIOD

3,499

2,879

 

 

8,406

 

 

 

 

 

 

 

 

 

 

Attributable profit to:

 

 

 

 

 

 

 

Equity holders of        A-shares

 

 

3,499

2,879

 

 

8,406

 

 

 

 

 

 

 

 

 

 

Earnings per A-share (in euros)

 

13

0,17

0,14

 

 

0,42


CONSOLIDATED STATEMENT OF CASH FLOWS

€ thousand

 

3 months

for the year ended 31 December

 

 

 

Note

2023

2022

2022

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Operating profit

 

4,072

3,005

11,320

 

 

Adjustment for depreciation/amortisation

4,5,9,10

1,945

1,639

6,817

 

 

Adjustment for revenues from connection fees

10

-145

-134

-544

 

 

Profit (-)/loss (+) from sale of property, plant and equipment, and intangible assets

 

0

-3

-32

 

Change in current assets involved in operating activities

1,191

202

-2,841

 

Change in liabilities involved in operating activities

 

-1,357

-811

309

TOTAL CASH FLOWS FROM OPERATING ACTIVITIES

5,706

3,898

15,029

 

 

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES

 

 

 

 

 

Acquisition of property, plant, and equipment, and
intangible assets

 

-5,304

-3,327

-20,701

 

Compensations received for construction of pipelines, incl connection fees

 

288

665

1,593

 

Proceeds from sale of property, plant and equipment, and intangible assets

0

3

53

 

Interest received

 

10

1

9

TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES

-5,006

-2,658

-19,046

 

 

 

 

 

 

 

CASH FLOWS USED IN FINANCING ACTIVITIES

 

 

 

 

 

Interest paid and loan financing costs, incl swap interests

-258

-117

-616

 

Lease payments

 

-203

-112

-524

 

Repayment of loans

 

0

0

-3,636

 

Dividends paid

12

0

0

-12,835

 

Withheld income tax paid on dividends

12

0

0

-165

 

Income tax paid on dividends

12

0

0

-2,116

TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES

-461

-229

-19,892

 

 

 

 

 

 

 

CHANGE IN CASH AND CASH EQUIVALENTS

 

239

1,011

-23,909

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD

3

12,650

36,559

36,559

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD

3

12,889

37,570

12,650


More information:
Maria Tiidus
Head of Communications
Tallinna Vesi
Ph: 626 2271
E-mail: maria.tiidus@tvesi.ee

Attachment