Published: 2021-04-30 08:00:00 CEST
Tallinna Vesi
Quarterly report

AS Tallinna Vesi´s financial results for the 1st quarter of 2021

AS Tallinna Vesi’s sales revenue for the first quarter of 2021 was11.78 million, showing 10.6% reduction on the same period last year. The revenues reflect lower commercial consumption brought about by the COVID-19 restrictions, whereas higher domestic consumption gave a slight increase in the sales revenue from private customers.

Sales to private customers in the main service area increased by 1.7% to €5.11 million, due to reduced consumption of businesses and higher household consumption, both of which were attributable to the COVID-19 restrictions.

In the main service area, the sales revenue from commercial customers dropped by 21.5% to €3.26 million as a result of their consumption being lower by €0.89 million. The hospitality sector has seen the greatest impact from the pandemic, affecting the volumes of the water services provided by the Company.

The gross profit for the 1st quarter of 2021 was €5.18 million, being 14.5% lower due to reduced sales revenue. The operating profit was €4.66 million, having decreased by €1.01 compared to the same period last year. The main factor impacting the operating profit was lower sales revenue resulting from decreased consumption.

The net profit for the 1st quarter of 2021 was €4.55 million, showing a decrease of €1.01 million compared to the same period of 2020. The decline in the net profit was predominantly a consequence of lower operating profits. Deferred tax also contributed to the decrease in net profit, whilst lower interest costs had a positive impact on profitability.

Snowy winter made an impact on the construction revenues in comparison with the previous year: in the 1st quarter, subsidiary OÜ Watercom continued to work on the projects secured in 2020, both in Tallinn and across Estonia. The sales revenue from constructions services for the 1st quarter was €0.76 million, indicating a 25.7% decline compared to the same period of 2020. The decrease in revenue was primarily related to a lower revenue from pipe construction services, which were partly balanced by higher revenues from road construction services.

MAIN FINANCIAL INDICATORS

€ million,
except key ratios

1st quarterChange 2021/ 2020

202120202019
Sales11.7813.1814.66-10.6%
Gross profit5.186.068.26-14.5%
Gross profit margin %43.9745.9656.33-4.3%
Operating profit before depreciation and amortisation6.237.188.39-13.3%
Operating profit before depreciation and amortisation margin %52.8354.4857.24-3.0%
Operating profit4.665.676.89-17.8%
Operating profit - main business4.505.626.78-20.0%
Operating profit margin %39.5543.0247.00-8.1%
Profit before taxes4.575.566.68-17.7%
Profit before taxes margin %38.7842.1545.58-8.0%
Net profit4.555.561.01-18.1%
Net profit margin %38.5942.1545.58-8.4%
ROA %1.772.092.74-15.5%
Debt to total capital employed %54.8354.8157.780.0%
ROE %3.974.706.85-15.4%
Current ratio4.485.876.28-23.7%
Quick ratio4.425.836.24-24.2%
Investments into fixed assets2.283.593.41-36.5%
Payout ratio %nanana 

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
€ thousand20212020 2020
     
Revenue11,78413,180 51,717
Cost of goods and services sold-6,603-7,123 -29,491
GROSS PROFIT5,1816,057 22,226
     
Marketing expenses-121-117 -433
General administration expenses-1,551-1,295 -4,576
Other income (+)/ expenses (-)1,1511,025 4,567
OPERATING PROFIT4,6605,670 21,784
     
Financial income512 31
Financial expenses-95-127 -473
PROFIT BEFORE TAXES4,5705,555 21,342
     
Income tax on dividends-210 -4,610
     
NET PROFIT FOR THE PERIOD4,5495,555 16,732
COMPREHENSIVE INCOME FOR THE PERIOD4,5495,555 16,732
     
Attributable profit to:    
Equity holders of A-shares4,5485,554 16,731
B-share holder0.600.60 0.60
     
Earnings per A share (in euros)0.230.28 0.84
Earnings per B share (in euros)600600 600


STATEMENT OF FINANCIAL POSITION

 
   
€ thousand31/03/202131/03/2020 31/12/2020
     
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents47,12268,658 44,514
Trade receivables. accrued income and prepaid expenses6,5146,277 7,019
Inventories809602 701
TOTAL CURRENT ASSETS54,44575,537 52,234
     
NON-CURRENT ASSETS    
Property. plant and equipment203,516191,732 202,802
Intangible assets634666 629
TOTAL NON-CURRENT ASSETS204,150192,398 203,431
     
TOTAL ASSETS258,595267,935 255,665
     
LIABILITIES AND EQUITY    
     
CURRENT LIABILITIES    
Current portion of long-term lease liabilities393362 393
Current portion of long-term loans3,6303,631 3,630
Trade and other payables5,9436,721 7,084
Derivatives0158 0
Prepayments2,1821,990 2,445
TOTAL CURRENT LIABILITIES12,14812,862 13,552
     
NON-CURRENT LIABILITIES    
Deferred income from connection fees35,61131,902 34,564
Leases1,3311,231 1,400
Loans83,96687,597 83,978
Provision for possible third-party claims8,42413,238 9,628
Deferred tax liability2760 255
Other payables3526 32
TOTAL NON-CURRENT LIABILITIES129,643133,994 129,857
TOTAL LIABILITIES141,791146,856 143,409
     
EQUITY    
Share capital12,00012,000 12,000
Share premium24,73424,734 24,734
Statutory legal reserve1,2781,278 1,279
Retained earnings78,79283,067 74,243
TOTAL EQUITY116,804121,079 112,256
     
TOTAL LIABILITIES AND EQUITY258,595267,935 255,665


CASH FLOWS STATEMENT3 months3 months 12 months
€ thousand20212020 2020
     
CASH FLOWS FROM OPERATING ACTIVITIES    
Operating profit4,6605,670 21,784
Adjustment for depreciation/amortisation1,5671,510 6,283
Adjustment for revenues from connection fees-125-111 -542
Other non-cash adjustments-1,204-1,204 -4,814
Profit/loss(+) from sale and write off of property. plant and equipment. and intangible assets0-11 -14
Change in current assets involved in operating activities402865 140
Change in liabilities involved in operating activities-54162 -215
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES5,2466,881 22,622
     
CASH FLOWS USED IN INVESTING ACTIVITIES    
Acquisition of property. plant and equipment. and intangible assets-2,923-2,986 -15,682
Compensations received for construction of pipelines. incl connection fees508275 1,998
Proceeds from sales of property. plant and equipment and intangible assets028 32
Interest received111 35
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES-2,414-2,672 -13,617
     
CASH FLOWS USE D IN FINANCING ACTIVITIES    
Interest paid and loan financing costs. incl swap interests-121-173 -719
Lease payments-102-153 -555
Received loans00 0
Repayment of loans00 -3,636
Dividends paid00 -19,888
Withheld income tax paid on dividends00 -113
Income tax paid on dividends00 -4,355
TOTAL CASH FLOW USED IN FINANCING ACTIVITIES-223-326 -29,266
     
CHANGE IN CASH AND CASH EQUIVALENTS2,6093,883 -20,261
     
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD44,51464,775 64,775
     
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD47,12368,658 44,514


Kristi Ojakäär

Member of the Management Board

+372 62 62 200

kristi.ojakaar@tvesi.ee


Aleksandr Timofejev

Member of the Management Board

+372 62 62 200  

aleksandr.timofejev@tvesi.ee

Attachment



2021 Q1 final report ENG.pdf