AS Tallinna Vesi’s financial results for the first quarter of 2023
April 28 2023 - 1:00AM
AS Tallinna Vesi’s financial results for the first quarter of 2023
In the first quarter of 2023, AS
Tallinna Vesi earned €14.6 million in revenue and €3.50 million in
net profit. The level of investments in fixed
assets in the first quarter increased by 68% compared to the
previous period, reaching €4.7 million.
In 2023, the sales from water services increased
by 18.6% in the first quarter compared to the same period last
year.
Sales from water services provided to commercial
customers in the main service area increased by approximately 11%
in the first quarter, reaching €4.27 million. “Sales in the first
quarter increased due to sales price reflecting increased direct
production cost and the increase in water consumption by the
hospitality and leisure establishments in the capital area. The
increase in sales was also influenced by the significant increase
in construction volumes," said Aleksandr Timofejev, CEO of Tallinna
Vesi. Sales from water services provided to private customers
increased by 23.2% in the first quarter compared to a year ago,
reaching €6.04 million.
The Company's gross profit for the first quarter
was €5.71 million, increasing by €1.33 million compared to the same
period last year. "The recovery in gross profit is related to the
sales price reflecting the increase in production cost. Gross
profit increased by 30.4% compared to the same period last year,"
Timofejev explained.
The Company’s operating profit in the first
quarter amounted to €4.1 million, which is €1.07 million more
compared to the same period last year.
The Company’s net profit was €3.5 million in the
first quarter of 2023, which is €0.62 more than in the same period
in 2022.
Compared to the first quarter of 2022, the sales
from construction services provided by the subsidiary Watercom
increased by 119.7%, or €0.44 million. The increase in sales is
mainly related to the increase in construction volumes in 2023 and
the projects carried over from 2022 to 2023.
Tallinna Vesi has increased investments in fixed
assets to ensure the sustainability of its infrastructure and the
service continuity. In the first three months of this year, AS
Tallinna Vesi has invested as much as €4.7 million in fixed assets,
which is 68% more compared to the same period last year.
The investment plan for the following years is
prepared based on the Public Water Supply and Sewerage Development
Plan for the next 12 years, ordered by the City of Tallinn and
prepared by AS Infragate, which can be found as a document on the
website of the City of Tallinn. “Current and future investments
will continue to ensure the high-quality drinking water for the
residents of Tallinn and help to keep the natural environment
cleaner, increasing both the average life span of pipelines and the
efficiency of treatment systems by means of modern technologies and
materials. That way, we can ensure the continuity of a vital
service at an affordable price and with the least possible
disruption to residents’ daily life," said Timofejev.
AS Tallinna Vesi will gradually switch to remote
readable water meters, which will free customers from the
obligation of reporting their water meter readings every month. The
first three thousand customers have already received their new
smart meters and this year, the installation will continue at an
accelerated pace. The plan is to cover the entire service area of
AS Tallinna Vesi with remote water meters by 2026.
As an important project, the installation of a
new pump was completed in the main wastewater pumping station at
the Wastewater Treatment Plant at Paljassaare. Projects currently
in progress include the installation of a valve between the suction
basins at the main wastewater pumping station, reconstruction of
digesters, installation of a cogeneration plant and reconstruction
of aeration tanks, additional screens for the main wastewater
pumping station, reconstruction of screens at the wastewater
treatment plant and reconstruction of secondary clarifiers.
Additionally, AS Tallinna Vesi has started
studies to identify the potential for heat recovery from the air of
air blowers and is participating in a research project funded by
Interreg on the application of various technologies to remove PFASs
from wastewater. The Company is also involved in another Interreg
project, aiming to test new technologies for removing APIs from
wastewater.
Main financial
indicators
|
€ million,except key ratios |
1st quarter |
Change 2023/
2022 |
|
2023 |
2022 |
2021 |
| Sales |
14.60 |
12.05 |
11.78 |
21.1% |
| Gross profit |
5.71 |
4.38 |
5.18 |
30.4% |
| Gross profit margin % |
39.13 |
36.36 |
43.97 |
7.6% |
| Operating profit before
depreciation and amortisation |
6.02 |
4.64 |
6.23 |
29.6% |
| Operating profit before
depreciation and amortisation margin % |
41.22 |
38.53 |
52.83 |
7.0% |
| Operating profit |
4.07 |
3.00 |
4.66 |
35.6% |
|
Operating profit - main business |
3.91 |
2.92 |
4.50 |
34.2% |
| Operating profit margin % |
27.89 |
24.92 |
39.55 |
11.9% |
| Profit before taxes |
3.53 |
2.91 |
4.57 |
21.3% |
| Profit before taxes margin
% |
24.16 |
24.13 |
38.78 |
0.1% |
| Net profit |
3.50 |
2.88 |
4.55 |
21.6% |
| Net profit margin % |
23.97 |
23.88 |
38.59 |
0.4% |
| ROA % |
1.38 |
1.12 |
2.09 |
23.0% |
| Debt to total capital employed
% |
55.19 |
54.17 |
54.83 |
1.9% |
| ROE % |
3.11 |
2.46 |
4.70 |
26.2% |
| Current ratio |
1.46 |
3.20 |
4.48 |
-54.4% |
| Quick ratio |
1.38 |
3.13 |
4.42 |
-55.9% |
| Investments into fixed
assets |
4.67 |
2.78 |
2.28 |
68.0% |
| Payout
ratio % |
na |
na |
na |
|
Gross profit margin – Gross profit / Net salesOperating profit
before depreciation and amortisation – Operating profit +
depreciation and amortisationOperating profit before depreciation
and amortisation margin – Operating profit before depreciation and
amortisation / Net salesOperating profit margin – Operating profit
/ Net salesNet profit margin – Net profit / Net salesROA – Net
profit / Average Total assets for the periodDebt to Total capital
employed – Total liabilities / Total capital employedROE – Net
profit / Average Total equity for the periodCurrent ratio – Current
assets / Current liabilitiesQuick ratio – (Current assets – Stocks)
/ Current liabilitiesPayout ratio - Total Dividends per annum/
Total Net Income per annumMain business – water services related
activities, excl. connections profit and government grants,
construction services, doubtful receivables
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
| € thousand |
|
|
|
|
as of 31 March |
as of 31 December |
|
ASSETS |
|
|
|
Note |
2023 |
2022 |
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
| |
Cash and cash
equivalents |
|
|
3 |
12,889 |
37,570 |
12,650 |
|
|
Trade receivables,
accrued income and prepaid expenses |
|
|
7,679 |
6,228 |
8,989 |
|
|
Inventories |
|
|
|
|
1,319 |
922 |
1,197 |
| TOTAL
CURRENT ASSETS |
|
|
|
21,887 |
44,720 |
22,836 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
| |
Property, plant,
and equipment |
|
|
4 |
232,513 |
212,732 |
229,869 |
|
|
Intangible
assets |
|
|
|
5 |
765 |
690 |
688 |
|
TOTAL NON-CURRENT ASSETS |
|
|
|
233,278 |
213,422 |
230,557 |
|
|
|
|
|
|
|
|
|
|
|
| TOTAL
ASSETS |
|
|
|
|
255,165 |
258,142 |
253,393 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
| |
Leases |
|
|
|
963 |
464 |
883 |
|
|
Loans |
|
|
|
3,630 |
3,630 |
3,630 |
|
|
Trade and other
payables |
|
|
|
7,752 |
6,587 |
10,225 |
|
|
Prepayments |
|
|
|
|
2,596 |
3,302 |
3,749 |
| TOTAL
CURRENT LIABILITIES |
|
|
|
14,941 |
13,983 |
18,487 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
| |
Deferred income
from connection fees |
|
|
|
40,950 |
37,727 |
39,150 |
|
|
Leases |
|
|
|
|
1,60 |
1,297 |
1,607 |
|
|
Loans |
|
|
|
|
76,716 |
80,348 |
76,708 |
|
|
Provision for
possible third-party claims |
|
|
6 |
6,018 |
6,018 |
6,018 |
|
|
Deferred tax
liability |
|
|
|
|
523 |
402 |
496 |
|
|
Other
payables |
|
|
|
|
89 |
68 |
101 |
|
TOTAL NON-CURRENT LIABILITIES |
|
|
|
125,899 |
125,860 |
124,080 |
| TOTAL
LIABILITIES |
|
|
|
|
140,840 |
139,843 |
142,567 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
76,313 |
80,287 |
72,814 |
|
TOTAL EQUITY |
|
|
|
|
114,325 |
118,299 |
110,826 |
|
|
|
|
|
|
|
|
|
|
|
| TOTAL
LIABILITIES AND EQUITY |
|
|
|
255,165 |
258,142 |
253,393 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
| € thousand |
|
|
Quarter 1 |
|
for the year ended 31 December |
|
|
|
|
|
Note |
2023 |
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
7 |
14,599 |
12,053 |
|
|
54,558 |
| Cost of
goods and services sold |
|
9 |
-8,887 |
-7,670 |
|
|
-37,660 |
| GROSS
PROFIT |
|
|
5,712 |
4,383 |
|
|
16,898 |
|
|
|
|
|
|
|
|
|
|
|
| Marketing
expenses |
|
9 |
-215 |
-199 |
|
|
-703 |
| General
administration expenses |
|
9 |
-1,303 |
-1,131 |
|
|
-4,399 |
| Other
income (+)/ expenses (-) |
|
10 |
-122 |
-48 |
|
|
-476 |
| OPERATING
PROFIT |
|
|
4,072 |
3,005 |
|
|
11,320 |
|
|
|
|
|
|
|
|
|
|
|
| Financial
income |
|
11 |
10 |
1 |
|
|
8 |
|
Financial expenses |
|
11 |
-555 |
-97 |
|
|
-682 |
| PROFIT
BEFORE TAXES |
|
|
3,527 |
2,909 |
|
|
10,646 |
|
|
|
|
|
|
|
|
|
|
|
| Income tax |
|
12 |
-28 |
-30 |
|
|
-2,240 |
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE PERIOD |
|
3,499 |
2,879 |
|
|
8,406 |
|
COMPREHENSIVE INCOME FOR THE PERIOD |
3,499 |
2,879 |
|
|
8,406 |
|
|
|
|
|
|
|
|
|
|
|
|
Attributable profit to: |
|
|
|
|
|
|
|
| Equity holders of
A-shares |
|
|
3,499 |
2,879 |
|
|
8,406 |
|
|
|
|
|
|
|
|
|
|
|
| Earnings per
A-share (in euros) |
|
13 |
0,17 |
0,14 |
|
|
0,42 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand |
|
3
months |
for the year ended 31 December |
|
|
|
|
Note |
2023 |
2022 |
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| |
Operating
profit |
|
4,072 |
3,005 |
11,320 |
|
|
|
Adjustment for
depreciation/amortisation |
4,5,9,10 |
1,945 |
1,639 |
6,817 |
|
|
|
Adjustment for revenues from
connection fees |
10 |
-145 |
-134 |
-544 |
|
|
|
Profit (-)/loss (+) from sale
of property, plant and equipment, and intangible assets |
|
0 |
-3 |
-32 |
|
|
Change in current
assets involved in operating activities |
1,191 |
202 |
-2,841 |
|
|
Change
in liabilities involved in operating activities |
|
-1,357 |
-811 |
309 |
| TOTAL CASH
FLOWS FROM OPERATING ACTIVITIES |
5,706 |
3,898 |
15,029 |
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN INVESTING ACTIVITIES |
|
|
|
|
| |
Acquisition of
property, plant, and equipment, and intangible assets |
|
-5,304 |
-3,327 |
-20,701 |
|
|
Compensations
received for construction of pipelines, incl connection fees |
|
288 |
665 |
1,593 |
|
|
Proceeds from sale
of property, plant and equipment, and intangible assets |
0 |
3 |
53 |
|
|
Interest received |
|
10 |
1 |
9 |
| TOTAL CASH
FLOWS USED IN INVESTING ACTIVITIES |
-5,006 |
-2,658 |
-19,046 |
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN FINANCING ACTIVITIES |
|
|
|
|
| |
Interest paid and
loan financing costs, incl swap interests |
-258 |
-117 |
-616 |
|
|
Lease
payments |
|
-203 |
-112 |
-524 |
|
|
Repayment of
loans |
|
0 |
0 |
-3,636 |
|
|
Dividends
paid |
12 |
0 |
0 |
-12,835 |
|
|
Withheld income
tax paid on dividends |
12 |
0 |
0 |
-165 |
|
|
Income
tax paid on dividends |
12 |
0 |
0 |
-2,116 |
| TOTAL CASH
FLOWS USED IN FINANCING ACTIVITIES |
-461 |
-229 |
-19,892 |
|
|
|
|
|
|
|
|
| CHANGE IN
CASH AND CASH EQUIVALENTS |
|
239 |
1,011 |
-23,909 |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE PERIOD |
3 |
12,650 |
36,559 |
36,559 |
|
|
|
|
|
|
|
|
| CASH AND
CASH EQUIVALENTS AT THE END OF THE
PERIOD |
3 |
12,889 |
37,570 |
12,650 |
More information:Maria TiidusHead of CommunicationsTallinna
VesiPh: 626 2271E-mail: maria.tiidus@tvesi.ee
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