Published: 2020-04-24 07:45:00 CEST
Tallinna Vesi
Quarterly report

AS Tallinna Vesi´s financial results for the 1st quarter of 2020

AS Tallinna Vesi’s sales revenues in the 1st quarter of 2020 were €13.18 million, showing a 10.1% decrease year-on-year. From 1 December 2019 the domestic tariffs in the main services area decreased on average 27% and commercial tariffs 15%.

In comparison with the last year, the total water services consumption was higher in the 1st quarter of 2020, however, since the middle of March, the coronavirus has been having an adverse impact on consumption. The 22.6% lower sales revenue from private customers in the 1st quarter of 2020 was mainly attributable to the 27% reduction in the tariffs, whereas, the consumption of private customers increased. The sales revenue from commercial customers dropped by 17.1% year-on-year. The tariffs for commercial customers fell by 15% starting from December 2019 and the consumption of commercial customers has decreased since the middle of March.

9% of the sales comprise of construction and other services revenues, which increased by 83.0% to €1.19 million.

The gross profit in the 1st quarter of 2020 decreased by 26.7% or €2.20 million to €6.06 million being impacted by lower water and wastewater revenues from private and commercial customers within the service area, mostly affected by new tariffs from 1 December 2019 accompanied by higher staff costs and other costs of goods sold.

The operating profit decreased year-on-year by 17.7% or €1.22 million to €5.67 million. Besides above-mentioned changes in gross profit, the operating profit was impacted by €1.20 million positive change in the provision for third-party claims in the 1st quarter of 2020.

The net profit for the 1st quarter of 2020 was €5.56 million, showing a decrease by 16.9% or €1.13 million, being additionally impacted by lower net financial expenses.

Dividend proposal

Supervisory Board of AS Tallinna Vesi has also approved the dividend proposal to pay the shareholders a dividend of €1.00 per A-share and €600 per B-share for the financial year of 2019. The proposal will be submitted for approval to the Annual General Meeting of Shareholders on 28 May 2020. The share capital of the Company consists of 20 million A-shares and 1 preference share i.e. B-share.

Company´s retained profits as of 31 December 2019 were €77,512,000, including the net profit for 2019 in the amount of €27,760,000. The proposed dividend payment amounts to €20,000,600.

Subject to approval at the Annual General Meeting, the dividend payment will be made on 28 June 2020 and the list of shareholders entitled to receive dividends is fixed based on the share ledger as at 23.59 on 12 June 2020.

MAIN FINANCIAL INDICATORS

€ million,
except key ratios
1st quarterChange 2020/ 2019
202020192018
Sales13.1814.6614.08-10.1%
Gross profit6.068.268.32-26.7%
Gross profit margin %45.9656.3359.10-18.4%
Operating profit before depreciation and amortisation7.188.398.22-14.5%
Operating profit before depreciation and amortisation margin %54.4857.2458.40-4.8%
Operating profit5.676.896.80-17.7%
Operating profit - main business5.626.786.74-17.0%
Operating profit margin %43.0247.0148.29-8.5%
Profit before taxes5.566.696.53-16.9%
Profit before taxes margin %42.1545.5946.42-7.5%
Net profit5.566.686.53-16.9%
Net profit margin %42.1545.5846.42-7.5%
ROA %2.092.632.83-20.3%
Debt to total capital employed %54.8157.78 60.56-5.1%
ROE %4.706.307.33-25.5%
Current ratio5.876.286.98-6.5%
Quick ratio5.836.246.93-6.6%
Investments into fixed assets3.593.410.855.2%
Payout ratio %nanana0.0%

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 INCOME1st  quarter1st quarter 12 months
€ thousand20202019 2019
     
Revenue13 18014 664 63 423
Cost of goods and services sold-7 123-6 404 -29 470
GROSS PROFIT6 0578 260 33 953
     
Marketing expenses-117-112 -390
General administration expenses-1 295-1 261 -5 689
Other income/ expenses (-)1 0256 4 201
OPERATING PROFIT5 6706 893 32 075
     
Financial income128 38
Financial expenses-127-216 -809
PROFIT BEFORE TAXES5 5556 685 31 304
     
Income tax on dividends00 -3 544
     
NET PROFIT FOR THE PERIOD5 5556 685 27 760
COMPREHENSIVE INCOME FOR THE PERIOD5 5556 685 27 760
     
Attributable profit to:    
Equity holders of A-shares5 5546 684 27 759
B-share holder0,600,60 0,60
     
Earnings per A share (in euros)0,280,33 1,39
Earnings per B share (in euros)600600 600


STATEMENT OF FINANCIAL POSITION    
€ thousand31/03/202031/03/2019 31/12/2019
     
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents68 65868 828 64 775
Trade receivables, accrued income and prepaid expenses6 2777 390 7 239
Inventories602537 504
TOTAL CURRENT ASSETS75 53776 755 72 518
     
NON-CURRENT ASSETS    
Property, plant and equipment191 732181 835 189 627
Intangible assets666623 710
TOTAL NON-CURRENT ASSETS192 398182 458 190 337
TOTAL ASSETS267 935259 213 262 855
     
LIABILITIES AND EQUITY    
CURRENT LIABILITIES    
Current portion of long-term lease liabilities362421 352
Current portion of long-term bank loans3 6313 631 3 631
Trade and other payables6 7215 694 6 718
Derivatives158139 221
Prepayments1 9902 334 2 323
TOTAL CURRENT LIABILITIES12 86212 219 13 245
     
NON-CURRENT LIABILITIES    
Deferred income from connection fees31 90225 792 31 070
Leases1 2311 138 964
Loans87 59791 299 87 592
Derivatives0201 0
Provision for possible third party claims13 23819 068 14 442
Other payables2646 18
TOTAL NON-CURRENT LIABILITIES133 994137 544 134 086
TOTAL LIABILITIES146 856149 763 147 331
     
EQUITY    
Share capital12 00012 000 12 000
Share premium24 73424 734 24 734
Statutory legal reserve1 2781 278 1 278
Retained earnings83 06771 438 77 512
TOTAL EQUITY121 079109 450 115 524
TOTAL LIABILITIES AND EQUITY267 935259 213 262 855


CASH FLOWS STATEMENT3 months3 months 12 months
€ thousand20202019 2019
     
CASH FLOWS FROM OPERATING ACTIVITIES    
Operating profit5 6706 893 32 075
Adjustment for depreciation/amortisation1 5101 502 6 109
Adjustment for revenues from connection fees-111-86 -389
Other non-cash adjustments-1 2040 -4 624
Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets-11-5 138
Change in current assets involved in operating activities865208 391
Change in liabilities involved in operating activities162-224 318
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES6 8818 288 34 018
     
CASH FLOWS USED IN INVESTING ACTIVITIES    
Acquisition of property, plant and equipment, and intangible assets-2 986-1 670 -10 441
Compensations received for construction of pipelines, incl connection fees275787 3 010
Proceeds from sales of property, plant and equipment and intangible assets287 24
Interest received117 36
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES-2 672-869 -7 371
     
CASH FLOWS USE D IN FINANCING ACTIVITIES    
Interest paid and loan financing costs, incl swap interests-173-258 -1 056
Lease payments-153-102 -404
Received loans00 37 500
Repayment of loans00 -41 136
Dividends paid00 -14 965
Withheld income tax paid on dividends00 -36
Income tax paid on dividends00 -3 544
TOTAL CASH FLOW USED IN FINANCING ACTIVITIES-326-360 -23 641
     
CHANGE IN CASH AND CASH EQUIVALENTS3 8837 059 3 006
     
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD64 77561 769 61 769
     
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD68 65868 828 64 775


Karl Heino Brookes

Chairman of the Management Board

+372 62 62 200  

karl.brookes@tvesi.ee


Attachment


Q1 2020 Final report ENG.pdf