The 2008 Audited Annual Accounts of AS Tallinna Vesi corresponded to the
preliminary financial results published on 30 January 2009. In 2008 the turnover
of AS Tallinna Vesi totalled to 719.9 million kroons, increasing by 11% compared
to the previous year. Revenues from water supply and wastewater services
increased by 9.8% compared to 2007, amounting to 658.3 million kroons.
Sales volumes in the main service area decreased by 3%, which was compensated by
the growth of sales volumes to customers outside the main service area.
According to Ian Plenderleith, the Chairman of the Management Board of AS
Tallinna Vesi, 2008 was a challenging year for the entire economy and the
Company.
“Taking into consideration the complicated economic environment, the financial
results of the Company were in accordance with our expectations. During the
first half of the year the very high levels of inflation caused significant cost
increases for the Company. The second half of 2008 was charecterised by a number
of commercial companies restructuring their production, which reduced our sales
volumes. Furthermore, throughout the whole of 2008 we continued to witness
“population shift”, with domestic customers moving from Tallinn to the
neighbouring municipalities reducing sales volumes in the services area. This
fall in sales volumes was offset by sales to customers living outside the
service area, which is a clear demonstration of the ongoing success of our
strategy to expand our EU compliant water and wastewater services into the areas
surrounding Tallinn and helped to protect our financial performance,”explained
Plenderleith.
The Company's net profit was 296 million kroons, an increase of 6.5% compared to
2007. At the same time the Company invested 306.3 million kroons into the
development of the public water supply and sewerage system of Tallinn.
In 2009 the Company plans to invest around 350 million EEK of investments.
On the basis of the results of the 2008 financial year the Management Board of
AS Tallinna Vesi proposed to the Supervisory Council to pay dividends of 230
million kroons (14.7 million euros), which is 7.6% less than last year. This
proposal has to be approved by the Annual General Meeting of the Company's
shareholders to be held in May 2009. If approved, 11.50 kroons (0.73 euros)
shall be paid as the dividend per A-share and10 000 kroons (639.12 euros) shall
be paid as the dividend for the B-share owned by the City of Tallinn.
“The proposal of the Management Board was made after taking into account the
interests of all stakeholder groups. We have thoroughly analyzed our operating
costs, financing needs and capital requirements for the business plan period to
ensure we continue to meet or exceed all our service levels and are able to make
large-scale investments to improve the drinking water and sewerage systems for
the citizens of Tallinn. In the current economic climate the risks to company
performance are considerably greater than in past years and against this
background we feel it is most appropriate to reduce our dividend payout this
year. We recognize our responsibilities to all the owners of the company,
individual shareholders, pension funds, institutional investors & the City of
Tallinn, and their need to receive a return on their investment that is fair but
protects the long-term interests of the company,” said Ian Plenderleith
In 2008 the Company reduced the level of leakages to the lowest ever level -
17.3%, which is well below the contract target of 26%. The quality of drinking
water in the capital city was the highest ever, at 98% compliance with the
requirements set by the European Commission well above the 95% target.
“I am delighted that we have delivered the challenging quality objectives we
set for ourselves. It is our ongoing commitment to continue to improve the
quality of drinking water for the residents of Tallinn” added Plenderleith.
In 2008 a total of 34km of sewerage pipeline, 14.4km of storm water pipeline and
2.9km of drinking water pipeline were constructed, mainly in the areas of Nõmme,
Pirita, Haabersti and Kristiine. This created an opportunity for more than 1300
properties to connect to the public water supply and sewerage system. The
network extension programme will continue in 2009, when approximately 1400 more
properties will have the connection opportunity. In 2009 the Company is planning
to reconstruct more than 16km of water pipeline and more than 5km of sewerage
pipeline.
During the period of 2001-2008 AS Tallinna Vesi has invested altogether 1,8
billion kroons.
The 2008 Audited Annual Accounts of AS Tallinna Vesi are published in full on
the website of Tallinn Stock Exchange
http://www.nasdaqomxbaltic.com/upload/reports/tve/2008_ar_en_eek.pdf
Additional information:
Priit Koff
Head of Communication
AS Tallinna Vesi
Priit.koff@tvesi.ee
6262209
AS Tallinna Vesi is the largest water utility in Estonia providing drinking
water and wastewater disposal services to approximately one third of the people
of Estonia. AS Tallinna Vesi shares are listed on the main list of the Tallinn
Stock Exchange.