AS Tallinna Vesi's half-year profit decreased by 4 per cent

AS Tallinna Vesi's profit-before-tax decreased by 4 per cent to 172,9 million
kroons in the first six months of 2009, the company's sales revenues increased
by 3,6% to 381,7 million kroons. 

AS Tallinna Vesi's chairman of the management board Ian Plenderleith said that
the fall in profit was due to the payment of a one-off financial cost that was
necessary to secure the financing for the comprehensive network extension
program during 2008 to 2010. “The Company repaid and fully refinanced the loan
of EBRD due to the need to finance the extensive network extension program and
related investment outflows until 2011,” specified Plenderleith. 

Over 19 kilometres of sewerage pipe have been laid during the first six months
of the year, forming a half of the volume planned for 2009. The Company
invested 85,5 million kroons during the six months, including 62,2 million
kroons into the development and expansion of water and sewerage networks. 

Sales volumes of water and sewerage services decreased in all customer
segments, especially in the commercial customers group. „The lower sales
volumes in the commercial customer segment are indicative of general
cost-saving measures or smaller production volumes,“ noted Plenderleith. 

The Company's profit-before-tax was 172,9 million kroons in the first half of
the year, 4 per cent behind the first half of 2008 and the Company's net profit
was 111,8 million kroons in the first six months, decreasing by nearly 2 per
cent compared to the first half of 2008. 

The water quality in Tallnn has been on the best level ever, as 99,7 per cent
of the water samples taken at the customer's tap met the required standards.
The level of leakages has been reduced to 16,7 per cent thanks to new
technologies, meaning that the daily water loss has been reduced by 12,000 m3
since 2002, nearly equal to the daily water production in Tartu. 

The Company has concluded the agreement with AS Maardu Vesi to rent the Maardu
water utility's assets, eventually granting the residents of Maardu access to
clean drinking water and wastewater treatment that meets Europan Union
requirements. Tallinna Vesi has been operating the assets of AS Maardu Vesi
since 1st of July 2009. 

Priit Koff
Head of Communications
priit.koff@tvesi.ee
+3726262209