AS Tallinna Vesi’s sales revenues in the 3rd quarter of 2019 were €16.49 million, remaining stable year-on-year.
80.8% of the sales comprise of the sales of water and wastewater services, which increased by 2.5% to €13.32. Sales to domestic customers and sales to outside service areas increased in the total amount of €0.21 million, whilst sales to commercial clients remained stable.
Higher revenues from main services were balanced by lower construction services revenues due to delay in starting of construction of some big projects won from the market.
The gross profit in the 3rd quarter of 2019 increased by 3.8% to €8.92 million being impacted by lower maintenance costs and costs related to construction services.
The operating profit increased by 2.9% to €7.52 million year-on-year, being additionally impacted by the loss of disposing assets.
The net profit for the 3rd quarter of 2019 increased by 2.7% to €7.33 million year-on-year, being additionally impacted by slightly higher net financial expenses.
The new approved tariffs will become effective on 1 December 2019, i.e. the company will apply the new tariffs to the services to be provided from that date onwards. The prices of water and wastewater services in the main service area will decrease on average by 27% for domestic customers and by 15% for commercial customers.
MAIN FINANCIAL INDICATORS
| € million, except key ratios | 3rd quarter | Change 2019/ 2018 | 9 months | Change 2019/ 2018 | ||||
| 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||
| Sales | 16.49 | 16.49 | 15.33 | 0.00% | 47.30 | 46.55 | 43.84 | 1.6% |
| Gross profit | 8.92 | 8.59 | 8.57 | 3.8% | 25.97 | 25.81 | 25.30 | 0.6% |
| Gross profit margin % | 54.12 | 52.10 | 55.86 | 3.9% | 54.91 | 55.45 | 57.71 | -1.0% |
| Operating profit before depreciation and amortisation | 9.01 | 8.73 | 9.08 | 3.1% | 25.47 | 25.91 | 25.76 | -1.7% |
| Operating profit before depreciation and amortisation margin % | 54.63 | 52.95 | 59.24 | 3.2% | 53.85 | 55.66 | 58.76 | -3.3% |
| Operating profit | 7.52 | 7.31 | 7.42 | 2.9% | 21.01 | 21.65 | 21.09 | -2.9% |
| Operating profit - main business | 7.19 | 7.07 | 7.11 | 1.6% | 20.36 | 21.15 | 20.64 | -3.7% |
| Operating profit margin % | 45.60 | 44.31 | 48.39 | 2.9% | 44.42 | 46.50 | 48.10 | -4.5% |
| Profit before taxes | 7.33 | 7.14 | 7.04 | 2.7% | 20.35 | 20.94 | 20.36 | -2.8% |
| Profit before taxes margin % | 44.47 | 43.28 | 45.93 | 2.7% | 43.03 | 44.98 | 46.44 | -4.3% |
| Net profit | 7.33 | 7.14 | 7.04 | 2.7% | 16.81 | 19.14 | 17.66 | -12.2% |
| Net profit margin % | 44.47 | 43.28 | 45.93 | 2.7% | 35.53 | 41.11 | 40.28 | -13.6% |
| ROA % | 2.89 | 2.97 | 3.23 | -3.0% | 6.64 | 8.11 | 8.13 | -18.1% |
| Debt to total capital employed % | 59.29 | 59.89 | 56.47 | -1.0% | 59.29 | 59.89 | 56.47 | -1.0% |
| ROE % | 7.27 | 7.58 | 7.59 | -4.1% | 16.21 | 20.85 | 19.03 | -22.2% |
| Current ratio | 5.14 | 4.99 | 4.74 | 3.0% | 5.14 | 4.99 | 4.74 | 3.0% |
| Quick ratio | 5.10 | 4.96 | 4.69 | 2.8% | 5.10 | 4.96 | 4.69 | 2.8% |
| Investments into fixed assets | 4.66 | 4.29 | 2.39 | 8.5% | 10.76 | 7.36 | 5.90 | 46.3% |
| Payout ratio % | na | 62.11 | 99.72 | na | na | 62.11 | 99.72 | 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 and wastewater activities, excl. connections profit and government grants, construction, design and asphalting services, doubtful debt
| STATEMENT OF COMPREHENSIVE INCOME | 3rd quarter | 3rd quarter | 9 months | 9 months | 12 months | ||
| (€ thousand) | 2019 | 2018 | 2019 | 2018 | 2018 | ||
| Revenue | 16,487 | 16,494 | 47,301 | 46,550 | 62,780 | ||
| Costs of goods sold | -7,565 | -7,900 | -21,327 | -20,739 | -28,594 | ||
| GROSS PROFIT | 8,922 | 8,594 | 25,974 | 25,811 | 34,186 | ||
| Marketing expenses | -89 | -87 | -297 | -293 | -386 | ||
| General administration expenses | -1,120 | -1,100 | -4,408 | -3,695 | -5,025 | ||
| Other income/ expenses (-) | -195 | -97 | -256 | -176 | -1,836 | ||
| OPERATING PROFIT (+)/LOSS (-) | 7,518 | 7,310 | 21,013 | 21,647 | 26,939 | ||
| Interest income | 12 | 5 | 30 | 14 | 21 | ||
| Interest expense | -199 | -176 | -691 | -723 | -1,010 | ||
| PROFIT (+)/LOSS (-) BEFORE TAXES | 7,331 | 7,139 | 20,352 | 20,938 | 25,950 | ||
| Income tax on dividends | 0 | 0 | -3,544 | -1,800 | -1,800 | ||
| NET PROFIT (+)/LOSS (-) FOR THE PERIOD | 7,331 | 7,139 | 16,808 | 19,138 | 24,150 | ||
| COMPREHENSIVE INCOME (+)/LOSS (-) FOR THE PERIOD | 7,331 | 7,139 | 16,808 | 19,138 | 24,150 | ||
| Attributable profit (+)/loss(-) to: | |||||||
| Equity holders of A-shares | 7,330 | 7,138 | 16,807 | 19,137 | 24,149 | ||
| B-share holder | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | ||
| Earnings per A share (in euros) | 0.37 | 0.36 | 0.84 | 0.96 | 1.21 | ||
| Earnings per B share (in euros) | 600 | 600 | 600 | 600 | 600 |
| STATEMENT OF FINANCIAL POSITION | ||||
| (€ thousand) | 30/09/2019 | 30/09/2018 | 31/12/2018 | |
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | 61,125 | 56,756 | 61,769 | |
| Trade receivables, accrued income and prepaid expenses | 8,439 | 8,181 | 7,631 | |
| Inventories | 539 | 441 | 498 | |
| TOTAL CURRENT ASSETS | 70,103 | 65,378 | 69,898 | |
| NON-CURRENT ASSETS | ||||
| Property, plant and equipment | 185,550 | 177,639 | 179,185 | |
| Intangible assets | 594 | 709 | 665 | |
| Right-of-use assets | 602 | 0 | 0 | |
| TOTAL NON-CURRENT ASSETS | 186,746 | 178,348 | 179,850 | |
| TOTAL ASSETS | 256,849 | 243,726 | 249,748 | |
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Current portion of long-term borrowings | 4,010 | 2,032 | 3,823 | |
| Trade and other payables | 6,719 | 7,531 | 6,047 | |
| Derivatives | 271 | 301 | 207 | |
| Prepayments | 2,639 | 3,239 | 2,955 | |
| TOTAL CURRENT LIABILITIES | 13,639 | 13,103 | 13,032 | |
| NON-CURRENT LIABILITIES | ||||
| Deferred income from connection fees | 28,981 | 21,562 | 22,745 | |
| Borrowings | 90,503 | 93,626 | 91,919 | |
| Derivatives | 50 | 112 | 173 | |
| Provision for possible third party claims | 19,068 | 17,522 | 19,068 | |
| Other payables | 36 | 48 | 46 | |
| TOTAL NON-CURRENT LIABILITIES | 138,638 | 132,870 | 133,951 | |
| TOTAL LIABILITIES | 152,277 | 145,973 | 146,983 | |
| 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 | 66,560 | 59,741 | 64,753 | |
| TOTAL EQUITY | 104,572 | 97,753 | 102,765 | |
| TOTAL LIABILITIES AND EQUITY | 256,849 | 243,726 | 249,748 | |
| CASH FLOWS STATEMENT | 9 months | 9 months | 12 months | |
| (€ thousand) | 2019 | 2018 | 2018 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Operating profit | 21,013 | 21,647 | 26,939 | |
| Adjustment for depreciation/amortisation | 4,457 | 4,263 | 5,790 | |
| Adjustment for revenues from connection fees | -277 | -216 | -295 | |
| Other non-cash adjustments | 0 | -11 | -20 | |
| Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets | 154 | -48 | -115 | |
| Change in current assets involved in operating activities | -843 | -458 | 54 | |
| Change in liabilities involved in operating activities | 195 | 946 | 1,939 | |
| TOTAL CASH FLOW FROM OPERATING ACTIVITIES | 24,699 | 26,123 | 34,292 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Acquisition of property, plant and equipment, and intangible assets | -6,147 | -6,922 | -10,736 | |
| Compensations received for construction of pipelines, incl connection fees | 2,205 | 2,752 | 3,716 | |
| Proceeds from sales of property, plant and equipment and intangible assets | 7 | 79 | 160 | |
| Interest received | 25 | 11 | 17 | |
| TOTAL CASH FLOW FROM INVESTING ACTIVITIES | -3,910 | -4,080 | -6,843 | |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Interest paid and loan financing costs, incl swap interests | -764 | -1,075 | -1,394 | |
| Lease payments | -306 | -184 | -258 | |
| Repayment of loans | -1,818 | 0 | 0 | |
| Dividends paid | -14,965 | -7,201 | -7,201 | |
| Withheld income tax paid on dividends | -36 | 0 | 0 | |
| Income tax on dividends | -3,544 | -1,800 | -1,800 | |
| TOTAL CASH FLOW FROM FINANCING ACTIVITIES | -21,433 | -10,260 | -10,653 | |
| CHANGE IN CASH AND CASH EQUIVALENTS | -644 | 11,783 | 16,796 | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 61,769 | 44,973 | 44,973 | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 61,125 | 56,756 | 61,769 |
Karl Heino Brookes
Chairman of the Management Board
+372 62 62 200
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