During the 1st quarter of 2012 the total sales increased by 4,7% to 13 million euros. Sales from water and wastewater services in main service area increased by 2,7 %, mainly due to an even increase in all commercial sectors supported also by a slight increase from domestic sector.
“The Company continues to focus on the improvement of operational performance and customer service,” said Ian Plenderleith, insisting that all operating and quality indicators have been on the highest level ever. “The most remarkable improvements have been in removing pollution from the wastewater discharged into the Baltic Sea. Compared to the 1st quarter of 2011, the biofilter has enabled to reduce the volume of discharge of nitrogen by 51,2%.
The operating profit from main business activities increased by 4,2% year on year. Total operating profit increased by 0,5% year on year due to less constructions in the first quarter. The profit before taxes decreased by 21,0% in the 1st quarter of 2012, being impacted by non-cash negative movement in fair value of financial instruments opposed to positive movement in 1st quarter of 2011.
In the first quarter of 2011, the court granted a temporary injunction for the period of court proceedings to protect the Company from the unilateral breach of privatization agreement by the Estonian Authorities. Due to the fact that the 2011 tariff application and current tariff disputes are almost identical, the court has now combined both cases together. No court date has yet been established to hear the court case regarding the legality of the tariffs established by the privatization contract. This means that tariffs will remain at current levels until the courts have made a final decision on the legality of the privatization contract.
“The Company has continuously stated its belief in fully transparent regulation and its willingness to enter into meaningful and evidence-based dialogue that takes into account the privatization contract signed in 2001,” said Plenderleith.
Mariliis Mia Topp
AS Tallinna Vesi
Head of Communications
62 62 275
mariliis.topp@tvesi.ee