Tallinna Vesi’s second-quarter sales were €15.5 million
AS Tallinna Vesi’s sales in the second quarter of this
year were €15.5 million, remaining at the level of the same period
last year. The company’s operating profit for the second quarter
was €4.46 million, an increase of 8%, and its net profit was €2.19
million, a decrease of 5.2%, mainly due to an increase in the
interest cost on loans.
“The vital water services that Tallinna Vesi provide were at a
high level throughout the quarter – drinking water met 100% of all
the requirements in place. The quality of the treated effluent
discharged to the Baltic Sea exceeded the standards set by law in
all parameters. The company’s staff has been taking care of the
day-to-day operation of the service, while continuing to prepare
for the future – ensuring uninterrupted service is our common goal
and requires ongoing investment in the water and wastewater
network,” said Aleksandr Timofejev, CEO of Tallinna Vesi.
He pointed out that the positive impact of the investments made
so far to ensure that consumers have access to vital water services
at an affordable price can already be seen. “We have received
confirmation that we are moving in the right direction with the
investments in our business plan. We want to continue to be the
leading water company in Estonia, both in terms of quality and
providing water at an affordable price,” said Timofejev. In total,
Tallinna Vesi plans to invest more than €60 million this year.
The company pumped 7 million m3 of clean water into
the water network and treated nearly 12.5 million
m3 of wastewater in the second quarter of 2024. During
the second quarter, 778 water samples were taken from the
customers’ taps. According to Timofejev, clean tap water is ensured
by an efficient water treatment process and regular monitoring of
the water network, as well as ongoing preventive maintenance and
timely investments.
Sales from water services sold to business customers in the
second quarter of 2024 in the main service area of Tallinna Vesi
were €4.50 million, which is 1.8% more than the year before. Sales
from water services provided to private customers in the second
quarter were at the same level as a year earlier and amounted to
€6.18 million.
The company’s operating profit for the second quarter was €4.46
million. Operating profit increased by 8% or €0.33 million compared
to the year before. The company’s net profit was €2.19 million,
which is €0.12 million less than in the same period of the previous
year. The decrease in net profit was mainly driven by an increase
in interest costs on loans.
In the second quarter of 2024, the proceedings regarding the
application for a new price for water services were finalised and
the price change was approved by the Competition Authority. The new
prices in the Tallinn, Saue and Maardu areas took effect on 1 July
2024 and will affect the company’s sales starting from the third
quarter.
In addition to the ongoing need to invest in the water and
wastewater network and to reduce the environmental impact, the need
for water price adjustments is also due to increases in a number of
input costs, such as electricity, chemicals and maintenance. It
also results from the obligation under the Public Water Supply and
Sewerage Act to harmonise the price for water services for private
and business customers.
More than half of the planned investment, or nearly €38 million,
is intended for the development and rehabilitation of pipelines.
The total investment in pipelines also includes up to €10 million
for the construction of stormwater pipelines financed by the City
of Tallinn. Planned investments in water and wastewater treatment
plants amount up to €19 million. “We have set ourselves the goal of
working together with the City of Tallinn and other partners as
much as possible in planning and carrying out the pipeline works
this year so as to disrupt city life and traffic as little as
possible, save the environment and carry out the works in a
cost-effective manner,” Aleksandr Timofejev explained.
For more than a year now, an innovative and effective ice
pigging technology has been used to maintain the water mains. This
is a technology in which an ice slurry is made of water and table
salt and pumped through the mains. By the end of the second
quarter, almost one fourth of the water network had been cleaned
using the new technology, which helps to maintain high water
quality. In addition, water quality has been supported by
investments in water pumping stations in recent years to provide
secondary chlorination in various parts of the city. Additional
disinfection will ensure that the requirements set for tap water
quality are met at various points across the city where chlorine
levels in the water are normally very low, especially in summer
when the water temperatures in the network get high.
One of the goals of the company’s customer service is to notify
customers about water interruptions well in advance. In the second
quarter, we notified our customers at least 1 hour before unplanned
water interruption took place in 98% of cases and the average
duration of a water interruption was 3 hours and 17 minutes. To
reduce the inconvenience caused by water interruptions, we continue
installing additional isolation valves on the water network.
In the second quarter of 2024, the effluent discharged from the
Paljassaare Wastewater Treatment Plant met all the requirements in
place. The high quality of the treated effluent is demonstrated by
pollutant levels well below the limits set by law. During the
second quarter of 2024, the company took out more than 163 tonnes
of debris, 53 tonnes of grit, 481 tonnes of nitrogen and 63 tonnes
of phosphorus from the wastewater.
Over the next three years, we will be investing nearly €9
million to enhance the biological treatment of wastewater by
reconstructing the secondary clarifiers at the wastewater treatment
plant. Other major multi-annual projects include the installation
of mechanical screens at the headworks before the plant and the
replacement of the screens at the treatment plant, which are
important environmental projects designed to keep the Baltic Sea
clean.
Timofejev also highlighted the cogeneration plant at the
Paljassaare Wastewater Treatment Plant that was accepted at the end
of the second quarter from the partner who carried out the
construction. This plant will allow to use biogas to generate a
significant part of the electricity needed for the wastewater
treatment process, in addition to heat. Reconstructions are ongoing
on the digesters and aeration tanks at the wastewater treatment
plant. This year we will also start installing new, more efficient
air blowers, expand our methanol tank fleet and begin preparations
for the installation of a solar power plant.
Renovations are ongoing on high-speed filters at the water
treatment plant. The designs are being prepared for upgrading the
ozone production technology used in water treatment and for the
reuse of backwash water from the filters in B building. There are
also plans for the replacement of sedimentation technology used in
the clarifiers with flotation technology. The aim of these projects
is to reduce the plant’s own water and energy consumption and to
increase its production capacity.
The rate of water loss in the water network remained low at
12.96% in the second quarter of the year. This is a better result
than in the same period last year (13.62%). The low rate of water
loss is ensured with the continuous on-line monitoring of the water
network and the timely implementation of the network rehabilitation
programme.
By the end of the second quarter, we had rehabilitated and
constructed more than 17 kilometres of pipelines, of which over 9
kilometres were built using environmentally friendly no-dig
techniques. Tallinna Vesi is working closely with the City of
Tallinn and other partners, such as AS Utilitas Tallinn, to plan
and carry out the work so that as much work as possible can be
carried out at the same time, with as little disruption to city
life and traffic as possible.
By the end of the second quarter, we had installed over 11,500
smart water meters, which means that more than 52% of our customers
now have remote water meters. The aim is to increase the share of
customers with smart meters to 60% in 2024, and to have all
customers in our service area equipped with smart meters by the end
of 2026 at the latest.
We strive to provide our customers and consumers with a reliable
service, part of which is the availability of important information
about the service and the speed at which the enquiries are
answered. In the second quarter of 2024, we responded to written
enquiries within 2 days in 99.7% of cases, thus maintaining a high
level.
At the beginning of the second quarter, we opened nearly 60
public water taps in Tallinn, where residents can get free drinking
water until the end of September. In addition, we supported
community events by providing tanks with fresh water.
We signed a cooperation agreement with the Estonian Paralympic
Committee to support the preparation of athletes participating in
the Paris Paralympic Games from 28 August to 8 September. We also
joined the Diversity Charter and received recognition from the
Ministry of Defence for our outstanding contribution to national
defence.
For several years now, we have taken part in the employer
reputation survey conducted by Kantar Emor. As the results show, we
have moved up from last year’s position, now ranking 20th in the
top that was put together based on the survey conducted among
working people.
AS Tallinna Vesi is the largest water utility in Estonia,
providing services to nearly 25,000 private customers and
businesses and 500,000 end consumers in Tallinn and its surrounding
municipalities. Tallinna Vesi is listed on the main list of the
Nasdaq Tallinn Stock Exchange. The largest shareholdings in the
company are held by the City of Tallinn (55.06%) and the energy
group Utilitas (20.36%). 24.58% of the company’s shares are freely
floating on the Nasdaq Tallinn Stock Exchange.
MAIN FINANCIAL INDICATORS
€
million
except key ratios
|
2nd
quarter |
2024/2023
|
6
months |
2024/2023
|
|
2024 |
2023 |
2022 |
2024 |
2023 |
2022 |
| Sales |
15.55 |
15.41 |
13.00 |
0.9% |
30.49 |
30.01 |
25.05 |
1.6% |
| Gross profit |
6.33 |
5.80 |
4.42 |
9.0% |
12.39 |
11.52 |
8.80 |
7.6% |
| Gross profit margin % |
40.68 |
37.66 |
33.98 |
8.0% |
40.63 |
38.38 |
35.12 |
5.9% |
| Operating profit before
depreciation and amortisation |
6.49 |
6.10 |
4.69 |
6.5% |
12.72 |
12.11 |
9.34 |
5.0% |
| Operating profit before
depreciation and amortisation margin % |
41.74 |
39.57 |
36.09 |
5.5% |
41.70 |
40.37 |
37.26 |
3.3% |
| Operating profit |
4.46 |
4.13 |
3.08 |
8.0% |
8.58 |
8.20 |
6.09 |
4.7% |
|
Operating profit - main business |
4.17 |
3.81 |
2.83 |
9.3% |
8.33 |
7.73 |
5.74 |
7.9% |
| Operating profit margin % |
28.66 |
26.79 |
23.70 |
7.0% |
28.15 |
27.33 |
24.29 |
3.0% |
| Profit before taxes |
3.42 |
3.41 |
2.98 |
0.4% |
6.45 |
6.93 |
5.88 |
-7.0% |
| Profit before taxes margin
% |
21.99 |
22.12 |
22.88 |
-0.6% |
21.15 |
23.11 |
23.48 |
-8.5% |
| Net profit |
2.19 |
2.31 |
0.96 |
-5.2% |
5.20 |
5.81 |
3.84 |
-10.5% |
| Net profit margin % |
14.10 |
15.02 |
7.36 |
-6.1% |
17.07 |
19.37 |
15.31 |
-11.9% |
| ROA % |
0.77 |
0.90 |
0.38 |
-14.7% |
1.83 |
2.27 |
1.52 |
-19.0% |
| Debt to total capital employed
% |
60.76 |
57.66 |
57.09 |
5.4% |
60.76 |
57.66 |
57.09 |
5.4% |
| ROE % |
1.89 |
2.06 |
0.85 |
-8.4% |
4.54 |
5.26 |
3.46 |
-13.7% |
| Current ratio |
0.69 |
1.31 |
1.81 |
-47.3% |
0.69 |
1.31 |
1.81 |
-47.3% |
| Quick ratio |
0.63 |
1.24 |
1.75 |
-49.2% |
0.63 |
1.24 |
1.75 |
-49.2% |
| Investments into fixed
assets |
11.39 |
5.77 |
4.95 |
97.4% |
18.04 |
10.44 |
7.73 |
72.8% |
| Payout
ratio % |
- |
79.41 |
78.52 |
|
- |
79.41 |
78.52 |
|
Gross profit margin – Gross profit / Net
sales
Operating profit margin – Operating 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
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 receivables
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
| € thousand |
|
|
|
|
|
|
|
ASSETS |
|
|
|
Note |
as of 30 June 2024 |
as of 31 December
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
| |
Cash and cash
equivalents |
|
|
3 |
3,923 |
14,736 |
|
|
|
Trade receivables,
accrued income and prepaid expenses |
|
|
8,988 |
8,608 |
|
|
|
Inventories |
|
|
|
|
1,202 |
1,137 |
|
| TOTAL
CURRENT ASSETS |
|
|
|
14,113 |
24,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
| |
Property, plant,
and equipment |
|
|
4 |
269,839 |
256,108 |
|
|
|
Intangible
assets |
|
|
|
5 |
1,394 |
1,293 |
|
|
TOTAL NON-CURRENT ASSETS |
|
|
|
271,233 |
257,401 |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL
ASSETS |
|
|
|
|
285,346 |
281,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
| |
Current portion of
long-term lease liabilities |
|
|
|
1,011 |
697 |
|
|
|
Current portion of
long-term loans |
|
|
|
3,571 |
3,594 |
|
|
|
Trade and other
payables |
|
|
|
12,275 |
10,886 |
|
|
|
Prepayments |
|
|
|
|
3,762 |
3,604 |
|
| TOTAL
CURRENT LIABILITIES |
|
|
|
20,619 |
18,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
| |
Deferred income
from connection fees |
|
|
|
47,761 |
44,653 |
|
|
|
Leases |
|
|
|
|
2,575 |
1,892 |
|
|
|
Loans |
|
|
|
|
95,963 |
92,835 |
|
|
|
Provision for
possible third-party claims |
|
|
6 |
6,018 |
6,018 |
|
|
|
Deferred tax
liability |
|
|
|
|
242 |
505 |
|
|
|
Other
payables |
|
|
|
|
94 |
128 |
|
|
TOTAL NON-CURRENT LIABILITIES |
|
|
|
152,653 |
146,031 |
|
| TOTAL
LIABILITIES |
|
|
|
|
173,272 |
164,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
| |
Share capital |
|
|
|
|
12,000 |
12,000 |
|
|
|
Share premium |
|
|
|
|
24,734 |
24,734 |
|
|
|
Statutory legal
reserve |
|
|
|
1,278 |
1,278 |
|
|
|
Retained earnings |
|
|
|
|
74,062 |
79,058 |
|
|
TOTAL EQUITY |
|
|
|
|
112,074 |
117,070 |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL
LIABILITIES AND EQUITY |
|
|
|
285,346 |
281,882 |
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
| € thousand |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
Quarter 2 |
for the 6 months
ended 30 June |
|
|
|
|
|
|
|
|
2024 |
2023 |
2024 |
2023 |
|
|
| Revenue |
|
7 |
15,552 |
15,405 |
30,489 |
30,005 |
|
|
| Cost of
goods and services sold |
|
9 |
-9,225 |
9,603 |
-18,102 |
-18,490 |
|
|
| GROSS
PROFIT |
|
|
6,327 |
5,802 |
12,387 |
11,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing
expenses |
|
9 |
-241 |
-205 |
-475 |
-419 |
|
|
| General
administration expenses |
|
9 |
-1,531 |
-1,317 |
-3,025 |
-2,620 |
|
|
| Other
income (+)/ expenses (-) |
|
10 |
-98 |
-153 |
-303 |
-275 |
|
|
| OPERATING
PROFIT |
|
|
4,457 |
4,127 |
8,584 |
8,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial
income |
|
11 |
67 |
26 |
149 |
36 |
|
|
|
Financial expenses |
|
11 |
-1,104 |
-747 |
-2,285 |
-1,302 |
|
|
| PROFIT
BEFORE TAXES |
|
|
3,420 |
3,406 |
6,448 |
6,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax |
|
|
-1,226 |
-1,093 |
-1,244 |
-1,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE PERIOD |
|
2,194 |
2,313 |
5,204 |
5,814 |
|
|
|
COMPREHENSIVE INCOME FOR THE PERIOD |
2,194 |
2,313 |
5,204 |
5,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable profit to: |
|
|
|
|
|
|
|
|
| Equity holders of
A-shares |
|
|
2,194 |
2,313 |
5,204 |
5,814 |
|
|
| Earnings per A
share (in euros) |
|
12 |
0.11 |
0.12 |
0.26 |
0.29 |
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand |
|
for the 6 months ended 30 June |
|
|
|
|
|
Note |
2024 |
2023 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| |
Operating
profit |
|
8,584 |
8,200 |
|
|
|
|
Adjustment for
depreciation/amortisation |
9,10 |
4,131 |
3,914 |
|
|
|
|
Adjustment for revenues from
connection fees |
10 |
-340 |
-292 |
|
|
|
|
Other non-cash
adjustments |
|
-91 |
-157 |
|
|
|
|
Profit (-)/loss (+) from sale
of property, plant and equipment, and intangible assets |
|
-55 |
-22 |
|
|
|
Change in current
assets involved in operating activities |
-446 |
343 |
|
|
|
Change
in liabilities involved in operating activities |
|
351 |
-526 |
|
| TOTAL CASH
FLOWS FROM OPERATING ACTIVITIES |
12,134 |
11,460 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN INVESTING ACTIVITIES |
|
|
|
|
| |
Acquisition of
property, plant, and equipment,
and intangible assets |
|
-13,800 |
-10,495 |
|
|
|
Compensations
received for construction of pipelines, including connection
fees |
|
952 |
1,724 |
|
|
|
Proceeds from sale
of property, plant and equipment,
and intangible assets |
98 |
24 |
|
|
|
Interest received |
|
149 |
36 |
|
| TOTAL CASH
FLOWS USED IN INVESTING ACTIVITIES |
-12,601 |
-8,711 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN FINANCING ACTIVITIES |
|
|
|
|
| |
Interest and loan
financing costs paid |
-2,572 |
-1,243 |
|
|
|
Lease
payments |
|
-584 |
-593 |
|
|
|
Received
loans |
|
5,000 |
45,500 |
|
|
|
Repayment of
loans |
|
-1,818 |
-39,318 |
|
|
|
Dividends
paid |
|
-10,069 |
-6,515 |
|
|
|
Income
tax paid on dividends |
|
-303 |
-278 |
|
|
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES |
-10,346 |
-2,447 |
|
|
|
|
|
|
|
|
|
| CHANGE IN
CASH AND CASH EQUIVALENTS |
|
-10,813 |
302 |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD |
3 |
14,736 |
12,650 |
|
|
|
|
|
|
|
|
|
CASH AND
CASH EQUIVALENTS AT THE END
OF THE PERIOD |
3 |
3,923 |
12,952 |
|
Additional information:
Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(+372) 626 2200
taavi.groon@tvesi.ee
Tallinna Vesi As (LSE:0JPY)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Tallinna Vesi As (LSE:0JPY)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
