AS Tallinna Vesi´s financial results for the 2nd quarter of 2019AS Tallinna Vesi’s sales revenue in the 2nd quarter of 2019 was €16.15 million, showing a 1.1% increase year-on-year. As the tariffs are still frozen at the 2010 level, the increase is related to higher consumption. 83.3% of the sales comprise of the sales of water and wastewater services, which increased by 0.7% to €13.45 year-on-year. Sales to domestic customers in the main service area and sales to outside service areas increased, whilst the sales to corporate clients showed a declining trend. While the first half-year was successful in construction and asphalting sector due to higher revenues in the 1st quarter of 2019, the revenues in the 2nd quarter of 2019 remained below the results of the same period in 2018. The gross profit in the 2nd quarter of 2019 decreased by 1.2% to €8.79 million. Despite higher revenues, gross profit was impacted by higher costs related to electricity, chemicals, staff and sludge disposal. The operating profit decreased by 12.4% to €6.60 million year-on-year, being additionally impacted by higher administrative expenses resulting from the extra legal costs related to the ICSID award. The net profit for the 2nd quarter of 2019 decreased by 48.9% to €2.79 million year-on-year. In 2019 the dividend payment per share increased from €0.36 per share to €0.75 per share. Higher dividend payment induced also higher income tax on dividend.
MAIN FINANCIAL INDICATORS € million,
except key ratios | 2nd quarter | Change 2019/ 2018 | 6 months | Change 2019/ 2018 | | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | | Sales | 16.15 | 15.98 | 14.73 | 1.1% | 30.81 | 30.06 | 28.51 | 2.5% | | Gross profit | 8.79 | 8.90 | 8.53 | -1.2% | 17.05 | 17.22 | 16.73 | -1.0% | | Gross profit margin % | 54.44 | 55.68 | 57.89 | -2.2% | 55.34 | 57.29 | 58.70 | -3.4% | | Operating profit before depreciation and amortisation | 8.07 | 8.96 | 8.69 | -9.9% | 16.46 | 17.18 | 16.68 | -4.2% | | Operating profit before depreciation and amortisation margin % | 49.96 | 56.04 | 59.02 | -10.9% | 53.43 | 57.15 | 58.49 | -6.5% | | Operating profit | 6.60 | 7.54 | 7.18 | -12.4% | 13.49 | 14.34 | 13.67 | -5.9% | | Operating profit - main business | 6.40 | 7.35 | 7.06 | -12.9% | 13.18 | 14.08 | 13.53 | -6.4% | | Operating profit margin % | 40.88 | 47.18 | 48.78 | -13.4% | 43.79 | 47.70 | 47.95 | -8.2% | | Profit before taxes | 6.34 | 7.27 | 6.96 | -12.8% | 13.02 | 13.80 | 13.32 | -5.6% | | Profit before taxes margin % | 39.23 | 45.47 | 47.25 | -13.7% | 42.25 | 45.91 | 46.72 | -8.0% | | Net profit | 2.79 | 5.47 | 4.26 | -48.9% | 9.48 | 12.00 | 10.62 | -21.0% | | Net profit margin % | 17.29 | 34.20 | 28.92 | -49.4% | 30.75 | 39.92 | 37.25 | -23.0% | | ROA % | 1.09 | 2.32 | 1.96 | -52.9% | 3.78 | 5.16 | 4.95 | -26.8% | | Debt to total capital employed % | 61.32 | 61.64 | 58.54 | -0.5% | 61.32 | 61.64 | 58.54 | -0.5% | | ROE % | 2.70 | 5.97 | 4.61 | -54.8% | 9.48 | 13.60 | 11.89 | -30.3% | | Current ratio | 3.90 | 5.00 | 3.70 | -22.0% | 3.90 | 5.00 | 3.70 | -22.0% | | Quick ratio | 3.87 | 4.96 | 3.65 | -22.0% | 3.87 | 4.96 | 3.65 | -22.0% | | Investments into fixed assets | 2.70 | 2.21 | 1.30 | 21.8% | 6.11 | 3.07 | 3.51 | 99.2% | | Payout ratio % | na | 62.11 | 99.72 | na | na | 62.11 | 99.72 | na |
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 and wastewater activities, excl. connections profit and government grants, construction, design and asphalting services, doubtful debt
| STATEMENT OF COMPREHENSIVE INCOME | 2nd quarter | 2nd quarter | | 6 months | 6 months | | 12 months | | (€ thousand) | 2019 | 2018 | | 2019 | 2018 | | 2018 | | | | | | | | | | | Revenue | 16,149 | 15,979 | | 30,813 | 30,056 | | 62,780 | | Costs of goods sold | -7,358 | -7,082 | | -13,762 | -12,839 | | -28,594 | | GROSS PROFIT | 8,791 | 8,897 | | 17,051 | 17,217 | | 34,186 | | | | | | | | | | | Marketing expenses | -96 | -94 | | -208 | -206 | | -386 | | General administration expenses | -2,026 | -1,216 | | -3,288 | -2,595 | | -5,025 | | Other income/ expenses (-) | -67 | -48 | | -61 | -79 | | -1,836 | | OPERATING PROFIT (+)/LOSS (-) | 6,602 | 7,539 | | 13,494 | 14,337 | | 26,939 | | | | | | | | | | | Interest income | 10 | 5 | | 18 | 9 | | 21 | | Interest expense | -276 | -279 | | -491 | -547 | | -1,010 | | PROFIT (+)/LOSS (-) BEFORE TAXES | 6,336 | 7,265 | | 13,021 | 13,799 | | 25,950 | | | | | | | | | | | Income tax on dividends | -3,544 | -1,800 | | -3,544 | -1,800 | | -1,800 | | | | | | | | | | | NET PROFIT (+)/LOSS (-) FOR THE PERIOD | 2,792 | 5,465 | | 9,477 | 11,999 | | 24,150 | | COMPREHENSIVE INCOME (+)/LOSS (-) FOR THE PERIOD | 2,792 | 5,465 | | 9,477 | 11,999 | | 24,150 | | | | | | | | | | | Attributable profit (+)/loss(-) to: | | | | | | | | | Equity holders of A-shares | 2,791 | 5,464 | | 9,476 | 11,998 | | 24,149 | | B-share holder | 0.60 | 0.60 | | 0.60 | 0.60 | | 0.60 | | | | | | | | | | | Earnings per A share (in euros) | 0.14 | 0.27 | | 0.47 | 0.60 | | 1.21 | | Earnings per B share (in euros) | 600 | 600 | | 600 | 600 | | 600 |
| STATEMENT OF FINANCIAL POSITION | | | | | (€ thousand) | 30/06/2019 | 30/06/2018 | 31/12/2018 | | | | | | | ASSETS | | | | | CURRENT ASSETS | | | | | Cash and cash equivalents | 58,895 | 52,154 | 61,769 | | Trade receivables, accrued income and prepaid expenses | 8,278 | 8,151 | 7,631 | | Inventories | 526 | 441 | 498 | | TOTAL CURRENT ASSETS | 67,699 | 60,746 | 69,898 | | | | | | | NON-CURRENT ASSETS | | | | | Property, plant and equipment | 182,428 | 174,713 | 179,185 | | Intangible assets | 645 | 771 | 665 | | Right-of-use assets | 600 | 0 | 0 | | TOTAL NON-CURRENT ASSETS | 183,673 | 175,484 | 179,850 | | TOTAL ASSETS | 251,372 | 236,230 | 249,748 | | | | | | | LIABILITIES AND EQUITY | | | | | CURRENT LIABILITIES | | | | | Current portion of long-term borrowings | 4,020 | 478 | 3,823 | | Trade and other payables | 10,124 | 7,955 | 6,047 | | Derivatives | 247 | 411 | 207 | | Prepayments | 2,961 | 3,308 | 2,955 | | TOTAL CURRENT LIABILITIES | 17,352 | 12,152 | 13,032 | | | | | | | NON-CURRENT LIABILITIES | | | | | Deferred income from connection fees | 27,017 | 20,475 | 22,745 | | Borrowings | 90,534 | 95,239 | 91,919 | | Derivatives | 115 | 181 | 173 | | Provision for possible third party claims | 19,068 | 17,522 | 19,068 | | Other payables | 45 | 47 | 46 | | TOTAL NON-CURRENT LIABILITIES | 136,779 | 133,464 | 133,951 | | TOTAL LIABILITIES | 154,131 | 145,616 | 146,983 | | | | | | | EQUITY | | | | | Share capital | 12,000 | 12,000 | 12,000 | | Share premium | 24,734 | 24,734 | 24,734 | | Statutory legal reserve | 1,278 | 1,278 | 1,278 | | Retained earnings | 59,229 | 52,602 | 64,753 | | TOTAL EQUITY | 97,241 | 90,614 | 102,765 | | TOTAL LIABILITIES AND EQUITY | 251,372 | 236,230 | 249,748 | | | | | | | | | | | | CASH FLOWS STATEMENT | 6 months | 6 months | 12 months | | (€ thousand) | 2019 | 2018 | 2018 | | | | | | | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | Operating profit | 13,494 | 14,337 | 26,939 | | Adjustment for depreciation/amortisation | 2,969 | 2,839 | 5,790 | | Adjustment for revenues from connection fees | -179 | -141 | -295 | | Other non-cash adjustments | 0 | -11 | -20 | | Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets | -5 | -39 | -115 | | Change in current assets involved in operating activities | -663 | -427 | 54 | | Change in liabilities involved in operating activities | 570 | 484 | 1,939 | | TOTAL CASH FLOW FROM OPERATING ACTIVITIES | 16,186 | 17,042 | 34,292 | | | | | | | CASH FLOWS FROM INVESTING ACTIVITIES | | | | | Acquisition of property, plant and equipment, and intangible assets | -3,093 | -3,418 | -10,736 | | Compensations received for construction of pipelines, incl connection fees | 1,668 | 1,676 | 3,716 | | Proceeds from sales of property, plant and equipment and intangible assets | 7 | 67 | 160 | | Interest received | 15 | 8 | 17 | | TOTAL CASH FLOW FROM INVESTING ACTIVITIES | -1,403 | -1,667 | -6,843 | | | | | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | Interest paid and loan financing costs, incl swap interests | -509 | -710 | -1,394 | | Lease payments | -209 | -120 | -258 | | Repayment of loans | -1,818 | 0 | 0 | | Dividends paid | -14,965 | -7,201 | -7,201 | | Income tax on dividends | -156 | -163 | -1,800 | | TOTAL CASH FLOW FROM FINANCING ACTIVITIES | -17,657 | -8,194 | -10,653 | | | | | | | CHANGE IN CASH AND CASH EQUIVALENTS | -2,874 | 7,181 | 16,796 | | | | | | | CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 61,769 | 44,973 | 44,973 | | | | | | | CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 58,895 | 52,154 | 61,769 |
Karl Heino Brookes Chairman of the Management Board +372 62 62 200 karl.brookes@tvesi.ee
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