AS Tallinna Vesi’s net profit for the 9 months of 2016 decreased by 5% year-on-year
The Company’s sales revenue for the 9 months of 2016 was EUR 44.46 million, showing an increase of 7.4% or EUR 3.07 million compared to the same period in 2015. At the same time, AS Tallinna Vesi’s net profit for the 9 months decreased by 5% or EUR 0.68 million year-on-year. Such decrease in the net profit was a result of higher legal costs, which are related to the ongoing tariff dispute, and of higher financial costs.
The Company’s tariffs are frozen at the 2010 tariff level and any changes in revenues from the main activities, i.e. the sales of water and wastewater services, are fully driven by consumption. Whilst the revenues from sales of water and wastewater services in the main service area grew, the revenues from outside areas saw a slight decline. The highest growth in sales – an increase of over EUR 2 million year-on-year – was achieved in the area of construction and asphalting services.
An increase of 3.9% or EUR 0.95 million in the gross profit was mainly induced by considerably higher sales and lower chemical costs, which were offset by higher costs on electricity, salary and depreciation.
AS Tallinna Vesi is involved in two court proceedings in connection with the Services Agreement and the tariffs, both locally and internationally. During the 9 months of 2016, no hearings were held at either level.
The last hearings of the international arbitration proceedings will be held on 7 – 11 November 2016 and 14 – 15 November 2016. The hearings will be public and broadcasted on the ICSID website. In addition, all material documents issued during the arbitration process will also be disclosed on the ICSID website. Mariliis Mia Topp
AS Tallinna Vesi
Head of Communications
Ph: (+372) 62 62 275
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