AS Tallinna Vesi´s financial results for the 2nd quarter of 2021

Tallinn, ESTONIA


AS Tallinna Vesi’s sales revenue for the second quarter of 2021 was12.97 million, showing a 7.3% increase on the same period last year. The revenue was reflected by higher commercial consumption due to the easement of COVID-19 restrictions and increase in construction revenues.

Sales to private customers in the main service area decreased by 0.9% to €5.10 million, due to reduced household consumption attributable to the easement of COVID-19 restrictions.

In the main service area, the sales revenue from commercial customers increased by 17.2% to €3.46 million as a result of their consumption being higher by €0.51 million. As a result of relaxation of the pandemic restrictions the hospitality sector reopened in June, and less people were working from home.

The gross profit for the 2nd quarter of 2021 was €5.23 million, being 10.5% higher due to increased sales revenue. The operating profit was €5.20 million, having increased by €0.61 compared to the same period last year. The main factor impacting the operating profit was higher sales revenue resulting from increased consumption of commercial customers.

The net profit for the 2nd quarter of 2021 was €3.07 million, showing an increase of €2.92 million compared to the same period in 2020. The increase in the net profit was mainly impacted by lower dividend related tax cost, accompanied by higher operating profit and lower interest costs.

In the second quarter of 2021 the construction revenue of subsidiary Watercom increased year-on-year due to pipe and road construction procurements won during 2020 and the first half of 2021 in Tallinn and surrounding municipalities. The sales revenue from construction services for the 2nd quarter was €1.57 million, indicating a 33.8% increase compared to the same period in 2020.

MAIN FINANCIAL INDICATORS

€ million,
except key ratios

2nd quarterChange 2021/ 2020

6 monthsChange 2021/ 2020

202120202019202120202019
Sales12.9712.0916.157.3%24.7525.2730.81-2.0%
Gross profit5.234.738.7910.5%10.4110.7917.05-3.5%
Gross profit margin %40.3439.1654.443.0%42.0742.7055.34-1.5%
Operating profit before depreciation and amortisation6.806.148.0710.8%13.0313.3216.46-2.2%
Operating profit before depreciation and amortisation margin %52.4450.7649.963.3%52.6352.7053.43-0.1%
Operating profit5.204.596.6013.2%9.8610.2613.49-3.9%
Operating profit - main business4.964.326.4015.0%9.469.9413.18-4.8%
Operating profit margin %40.0937.9940.885.5%39.8340.6143.79-1.9%
Profit before taxes5.114.516.3413.4%9.6810.0613.02-3.8%
Profit before taxes margin %39.4037.2939.235.7%39.1039.8242.25-1.8%
Net profit3.070.152.791909.2%7.625.719.4833.5%
Net profit margin %23.701.2717.291772.8%30.8022.5930.7536.3%
ROA %1.210.061.091950.1%3.022.223.7835.7%
Debt to total capital employed %57.2059.6361.32-4.1%57.2059.6361.32-4.1%
ROE %2.750.142.701896.8%6.965.279.4832.1%
Current ratio2.753.233.90-14.9%2.753.233.90-14.9%
Quick ratio2.693.183.87-15.4%2.693.183.87-15.4%
Investments into fixed assets3.354.272.70-21.5%5.637.856.11-28.3%
Payout ratio %na77.7072.05 na77.7072.05 

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 debt


STATEMENT OF COMPREHENSIVE INCOME2nd quarter2nd quarter6 months6 months12 months
€ thousand20212020202120202020
      
Revenue12,96812,08924,75225,26951,717
Cost of goods and services sold-7,737-7,355-14,340-14,478-29,491
GROSS PROFIT5,2314,73410,41210,79122,226
      
Marketing expenses-104-109-224-226-433
General administration expenses-992-1,213-2,544-2,508-4,576
Other income (+)/ expenses (-)1,0641,1802,2152,2054,567
OPERATING PROFIT5,1994,5929,85910,26221,784
      
Financial income21272431
Financial expenses-91-96-187-223-473
PROFIT BEFORE TAXES5,1104,5089,67910,06321,342
      
Income tax on dividends-2,036-4,355-2,056-4,355-4,610
      
NET PROFIT FOR THE PERIOD3,0741537,6235,70816,732
COMPREHENSIVE INCOME FOR THE PERIOD3,0741537,6235,70816,732
      
Attributable profit to:     
Equity holders of A-shares3,0741527,6235,70716,731
B-share holder0.000.600.000.600.60
      
Earnings per A share (in euros)0.150.010.380.290.84
Earnings per B share (in euros)06000600600


STATEMENT OF FINANCIAL POSITION

 
   
€ thousand30/06/202130/06/2021 31/12/2020
     
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents37,01148,826 44,514
Trade receivables, accrued income and prepaid expenses5,9906,081 7,019
Inventories835742 701
TOTAL CURRENT ASSETS43,83655,649 52,234
     
NON-CURRENT ASSETS    
Property, plant and equipment205,295194,467 202,802
Intangible assets583629 629
TOTAL NON-CURRENT ASSETS205,878195,096 203,431
     
TOTAL ASSETS249,714250,745 255,665
     
LIABILITIES AND EQUITY    
     
CURRENT LIABILITIES    
Current portion of long-term lease liabilities390493 393
Current portion of long-term loans3,6303,630 3,630
Trade and other payables9,06710,828 7,084
Derivatives070 0
Prepayments2,8802,233 2,445
TOTAL CURRENT LIABILITIES15,96717,254 13,552
     
NON-CURRENT LIABILITIES    
Deferred income from connection fees35,98832,865 34,564
Leases1,2771,552 1,400
Loans82,15485,785 83,978
Provision for possible third party claims7,22112,035 9,628
Deferred tax liability1950 255
Other payables3423 32
TOTAL NON-CURRENT LIABILITIES126,869132,260 129,857
TOTAL LIABILITIES142,836149,514 143,409
     
EQUITY    
Share capital12,00012,000 12,000
Share premium24,73424,734 24,734
Statutory legal reserve1,2781,278 1,279
Retained earnings68,86663,219 74,243
TOTAL EQUITY106,878101,231 112,256
     
TOTAL LIABILITIES AND EQUITY249,714250,745 255,665


CASH FLOWS STATEMENT6 months6 months 12 months
€ thousand20212020 2020
     
CASH FLOWS FROM OPERATING ACTIVITIES    
Operating profit9,85910,262 21,784
Adjustment for depreciation/amortisation3,1683,054 6,283
Adjustment for revenues from connection fees-251-225 -542
Other non-cash adjustments-2,407-2,407 -4,814
Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets0-11 -14
Change in current assets involved in operating activities892938 140
Change in liabilities involved in operating activities126-481 -215
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES11,38711,130 22,622
     
CASH FLOWS USED IN INVESTING ACTIVITIES    
Acquisition of property, plant and equipment, and intangible assets-5,084-5,450 -15,682
Compensations received for construction of pipelines, incl connection fees1,351718 1,998
Proceeds from sales of property, plant and equipment and intangible assets028 32
Interest received930 35
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES-3,724-4,674 -13,617
     
CASH FLOWS USE D IN FINANCING ACTIVITIES    
Interest paid and loan financing costs, incl swap interests-204-367 -719
Lease payments-205-259 -555
Received loans00 0
Repayment of loans-1,818-1,818 -3,636
Dividends paid-12,841-19,888 -19,888
Withheld income tax paid on dividends00 -113
Income tax paid on dividends-98-73 -4,355
TOTAL CASH FLOW USED IN FINANCING ACTIVITIES-15,166-22,405 -29,266
     
CHANGE IN CASH AND CASH EQUIVALENTS-7,503-15,949 -20,261
     
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD44,51464,775 64,775
     
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD37,01148,826 44,514


Aleksandr Timofejev

CEO

Member of the Management Board

+372 62 62 200

aleksandr.timofejev@tvesi.ee


Kristi Ojakäär

CFO

Member of the Management Board

+372 62 62 200

kristi.ojakaar@tvesi.ee

Attachment



Attachments

Final Q2'2021 EN