Published: 2020-01-31 07:45:00 CET
Tallinna Vesi
Quarterly report

AS Tallinna Vesi´s financial results for the 4th quarter of 2019

AS Tallinna Vesi’s sales revenues in the 4th quarter of 2019 were €16.12 million, showing a 0.7% decrease year-on-year. From 1 December 2019 the domestic tariffs in the main services area decreased on average 27% and commercial tariffs 15%.

87.0% of the sales comprise of the sales of water services, which decreased by 2.8% to €14.03. Sales to domestic and commercial customers in the main service area decreased in the total amount of €0.71 million affected by new tariffs from 1/12/2019, whilst sales to outside service areas increased by €0.14 million. The prices of water and wastewater services in the main service area decreased from 1 December 2019 on average by 27% for domestic customers and by 15% for commercial customers.

13.0% of the sales comprise of construction and other services revenues, which increased by 16.2% to €2.09 million.

The gross profit in the 4th quarter of 2019 decreased by 4.7% or €0.40 million to €7.98 million being impacted by lower water and wastewater revenues from main service area and higher electricity costs and were balanced by lower maintenance costs.

The operating profit increased year-on-year by 109.1% or €5.77 million to €11.06 million, being impacted by €4.63 million positive change in the provision for third-party claims in 4th quarter of 2019.

The net profit for the 4th quarter of 2019 increased year-on-year by 118.5% or €5.94 million to €10.95 million, being additionally impacted by €0.17 million lower net financial expenses.

 

MAIN FINANCIAL INDICATORS

€ million,
except key ratios
4th quarterChange 2019/ 201812 monthsChange 2019/ 2018
201920182017201920182017
Sales16.1216.2315.97-0.7%63.4262.7859.821.0%
Gross profit7.988.388.79-4.7%33.9534.1934.09-0.7%
Gross profit margin %49.4951.6155.04-4.1%53.5354.4556.99-1.7%
Operating profit before depreciation and amortisation12.726.82-8.7386.5%38.1832.7317.0416.7%
Operating profit before depreciation and amortisation margin %78.8642.01-54.6287.7%60.2152.1328.4915.5%
Operating profit11.065.29-10.22109.1%32.0826.9410.8719.1%
Operating profit - main business10.825.07-10.40113.6%31.1926.2210.2518.9%
Operating profit margin %68.6132.61-64.00110.4%50.5742.9118.1617.9%
Profit before taxes10.955.01-10.44118.5%31.3025.959.9220.6%
Profit before taxes margin %67.9330.88-65.36120.0%49.3641.3316.5919.4%
Net profit10.955.01-10.44118.5%27.7624.157.2214.9%
Net profit margin %67.9330.88-65.36120.0%43.7738.4712.0713.8%
ROA %4.212.03-4.64107.5%10.8310.103.277.2%
Debt to total capital employed % 56.05 58.85 62.43-4.8% 56.05 58.85 62.43-4.8%
ROE %9.955.00-11.4799.1%25.4325.618.24-0.7%
Current ratio5.485.365.512.8%5.485.365.512.2%
Quick ratio5.445.335.462.4%5.445.335.462.1%
Investments into fixed assets5.333.043.5875.2%16.0910.409.4754.8%
Payout ratio %na62.1199.720.0%na62.1199.720.0%

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 services related activities, excl. connections profit and government grants, construction services, doubtful debt

 

STATEMENT OF COMPREHENSIVE INCOME4th quarter4th quarter 12 months12 months
(€ thousand)20192018 20192018
      
Revenue16,12216,229 63,42362,780
Costs of goods sold -8,143-7,854 -29,470-28,594
GROSS PROFIT7,9798,375 33,95334,186
      
Marketing expenses-93-93 -390-386
General administration expenses-1,281-1,330 -5,689-5,025
Other income/ expenses (-)4,457-1,660 4,201-1,836
OPERATING PROFIT11,0625,292 32,07526,939
      
Interest income87 3821
Interest expense-118-287 -809-1,010
PROFIT BEFORE TAXES10,9525,012 31,30425,950
      
Income tax on dividends00 -3,544-1,800
      
NET PROFIT FOR THE PERIOD10,9525,012 27,76024,150
COMPREHENSIVE INCOME FOR THE PERIOD10,9525,012 27,76024,150
      
Attributable profit to:     
Equity holders of A-shares10,9515,011 27,75924,149
B-share holder0.600.60 0.600.60
      
Earnings per A share (in euros)0.550.25 1.391.21
Earnings per B share (in euros)600600 600600

 

STATEMENT OF FINANCIAL POSITION  
(€ thousand)31/12/201931/12/2018
   
ASSETS  
CURRENT ASSETS  
Cash and cash equivalents64,77561,769
Trade receivables, accrued income and prepaid expenses7,2397,631
Inventories504498
TOTAL CURRENT ASSETS72,51869,898
   
NON-CURRENT ASSETS  
Property, plant and equipment189,627179,185
Intangible assets710665
TOTAL NON-CURRENT ASSETS190,337179,850
TOTAL ASSETS262,855249,748
   
LIABILITIES AND EQUITY  
CURRENT LIABILITIES  
Current portion of long-term lease liabilities 352191
Current portion of long-term bank loans3,6313,632
Trade and other payables6,7186,047
Derivatives221207
Prepayments2,3232,955
TOTAL CURRENT LIABILITIES13,24513,032
   
NON-CURRENT LIABILITIES  
Deferred income from connection fees31,07022,745
Leases964624
Loans87,59291,295
Derivatives0173
Provision for possible third party claims14,44219,068
Other payables1846
TOTAL NON-CURRENT LIABILITIES134,086133,951
TOTAL LIABILITIES147,331146,983
   
EQUITY  
Share capital 12,00012,000
Share premium24,73424,734
Statutory legal reserve1,2781,278
Retained earnings77,51264,753
TOTAL EQUITY115,524102,765
TOTAL LIABILITIES AND EQUITY262,855249,748
   
   
   
   
CASH FLOWS STATEMENT12 months12 months
(€ thousand)20192018
   
CASH FLOWS FROM OPERATING ACTIVITIES  
Operating profit32,07526,939
Adjustment for depreciation/amortisation6,1095,790
Adjustment for revenues from connection fees-389-295
Other non-cash adjustments-4,6241,526
Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets138-115
Change in current assets involved in operating activities39154
Change in liabilities involved in operating activities318393
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES34,01834,292
   
CASH FLOWS USED IN INVESTING ACTIVITIES  
Acquisition of property, plant and equipment, and intangible assets-10,441-10,736
Compensations received for construction of pipelines, incl connection fees3,0103,716
Proceeds from sales of property, plant and equipment and intangible assets24160
Interest received3617
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES-7,371-6,843
   
CASH FLOWS USE D IN FINANCING ACTIVITIES  
Interest paid and loan financing costs, incl swap interests-1,056-1,394
Lease payments-404-258
Received loans37,5000
Repayment of loans-41,1360
Dividends paid-14,965-7,201
Withheld income tax paid on dividends -360
Income tax on dividends -3,544-1,800
TOTAL CASH FLOW USED IN FINANCING ACTIVITIES-23,641-10,653
   
CHANGE IN CASH AND CASH EQUIVALENTS3,00616,796
   
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD61,76944,973
   
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD64,77561,769

 

Karl Heino Brookes

Chairman of the Management Board

+372 62 62 200  

karl.brookes@tvesi.ee

Attachment


Q4 2019 Final report ENG.pdf