Due to the new reduced tariffs and lower consumption, induced by the spread of
coronavirus, the sales revenue of AS Tallinna Vesi in the 2(nd) quarter of 2020
was EUR12.09 million, i.e. 25.1% lower compared with the same period of 2019.
The sales revenue from private customers was EUR5.10 million, showing a decrease
of 21.9% due to the new reduced tariffs. The tariffs impact was partly balanced
by higher consumption of apartment blocks, which is the company's largest
private customer segment, because large number of people were working from home
due to the arrangements regarding coronavirus.
In the main service area, the sales revenue from commercial customers dropped by
45.1% year-on-year to EUR2.95 million, which was mainly attributable to 35% less
consumption and lower tariffs as well. Consumption in commercial customer
segment was adversely impacted by coronavirus, because very many companies were
closed from mid-March to the end of May to prevent the spread of the virus.
The gross profit of the 2(nd) quarter of 2020 was EUR4.73 million, showing a
46.2% decrease mostly due to lower sales revenues. The operating profit was
EUR4.59 million, lower by EUR2.01 million year-on-year. Besides changes in tariffs
and consumption, the operating profit was also impacted by EUR1.20 million change
in the provision for third-party claims and lower legal costs related to the
tariff dispute.
The net profit for the 2(nd) quarter of 2020 was EUR0.15 million. It showed a
94.5% decrease compared to the same period last year and was additionally
impacted by higher dividend tax payments and lower financial expenses.
Coronavirus also affected the sale of construction services, because the start
of several new developments in Tallinn was postponed due to the emergency
situation declared in Estonia and consequent effects. At the same time, the
subsidiary Watercom continued the works on several larger projects they had been
awarded in 2019 in Tallinn and other areas of Estonia. The revenue from
construction services decreased by 18.6% or EUR0.27 million year-on-year.
MAIN FINANCIAL INDICATORS
EUR million, 2(nd) quarter 6 months
except key Change Change
ratios 2020 2019 2018 2020/ 2019 2020 2019 2018 2020/ 2019
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Sales 12.09 16.15 15.98 -25.1% 25.27 30.81 30.06 -18.0%
Gross profit 4.73 8.79 8.90 -46.2% 10.79 17.05 17.22 -36.7%
Gross profit
margin % 39.16 54.44 55.68 -28.1% 42.70 55.34 57.29 -22.8%
Operating
profit before
depreciation
and
amortisation 6.14 8.07 8.96 -23.9% 13.32 16.46 17.18 -19.1%
Operating
profit before
depreciation
and
amortisation
margin % 50.76 49.96 56.04 1.6% 52.70 53.43 57.15 -1.4%
Operating
profit 4.59 6.60 7.54 -30.4% 10.26 13.49 14.34 -24.0%
Operating
profit - main
business 4.32 6.40 7.35 -32.6% 9.94 13.18 14.09 -24.6%
Operating
profit margin
% 37.99 40.88 47.18 -7.1% 40.61 43.79 47.70 -7.3%
Profit before
taxes 4.51 6.34 7.27 -28.9% 10.06 13.02 13.80 -22.7%
Profit before
taxes margin
% 37.29 39.23 45.47 -4.9% 39.82 42.25 45.91 -5.8%
Net profit 0.15 2.79 5.47 -94.5% 5.71 9.48 12.00 -39.8%
Net profit
margin % 1.27 17.29 34.20 -92.7% 22.59 30.75 39.92 -26.5%
ROA % 0.06 1.09 2.32 -94.6% 2.22 3.78 5.16 -41.2%
Debt to total
capital
employed % 59.63 61.32 61.64 -2.8% 59.63 61.32 61.64 -2.8%
ROE % 0.14 2.70 5.97 -94.9% 5.27 9.48 13.60 -44.4%
Current ratio 3.23 3.90 5.00 -17.2% 3.23 3.90 5.00 -17.2%
Quick ratio 3.18 3.87 4.96 -17.8% 3.18 3.87 4.96 -17.8%
Investments
into fixed
assets 4.27 2.70 2.21 58.2% 7.85 6.11 3.07 28.6%
Payout ratio
% na 72.05 62.11 na 72.05 62.11
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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 2(nd) 2(nd)
COMPREHENSIVE INCOME quarter quarter 6 months 6 months 12 months
EUR thousand 2020 2019 2020 2019 2019
Revenue 12,089 16,149 25,269 30,813 63,423
Cost of goods and
services sold -7,355 -7,358 -14,478 -13,762 -29,470
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GROSS PROFIT 4,734 8,791 10,791 17,051 33,953
Marketing expenses -109 -96 -226 -208 -390
General
administration
expenses -1,213 -2,026 -2,508 -3,288 -5,689
Other income (+)/
expenses (-) 1,180 -67 2,205 -61 4,201
-------------------------------------------------------------------------------
OPERATING PROFIT 4,592 6,602 10,262 13,494 32,075
Financial income 12 10 24 18 38
Financial expenses -96 -276 -223 -491 -809
Other financial
income (+)/ expenses
(-) 0 0 0 0 0
-------------------------------------------------------------------------------
PROFIT BEFORE TAXES 4,508 6,336 10,063 13,021 31,304
Income tax on
dividends -4,355 -3,544 -4,355 -3,544 -3,544
NET PROFIT FOR THE
PERIOD 153 2,792 5,708 9,477 27,760
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COMPREHENSIVE INCOME
FOR THE PERIOD 153 2,792 5,708 9,477 27,760
Attributable profit
to:
-------------------------------------------------------------------------------
Equity holders of A-
shares 152 2,791 5,707 9,476 27,759
B-share holder 0.60 0.60 0.60 0.60 0.60
Earnings per A share
(in euros) 0.01 0.14 0.29 0.47 1.39
Earnings per B share
(in euros) 600 600 600 600 600
STATEMENT OF FINANCIAL POSITION
EUR thousand 30/06/2020 30/06/2019 31/12/2019
ASSETS
CURRENT ASSETS
-------------------------------------------------------------------------------
Cash and cash equivalents 48,826 58,895 64,775
Trade receivables, accrued income and
prepaid expenses 6,081 8,278 7,239
Inventories 742 526 504
-------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 55,649 67,699 72,518
NON-CURRENT ASSETS
-------------------------------------------------------------------------------
Property, plant and equipment 194,467 183,028 189,627
Intangible assets 629 645 710
-------------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 195,096 183,673 190,337
-------------------------------------------------------------------------------
TOTAL ASSETS 250,745 251,372 262,855
LIABILITIES AND EQUITY
CURRENT LIABILITIES
-------------------------------------------------------------------------------
Current portion of long-term lease
liabilities 493 388 352
Current portion of long-term loans 3,630 3,632 3,631
Trade and other payables 10,828 10,124 6,718
Derivatives 70 247 221
Prepayments 2,233 2,961 2,323
-------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 17,254 17,352 13,245
NON-CURRENT LIABILITIES
-------------------------------------------------------------------------------
Deferred income from connection fees 32,865 27,017 31,070
Leases 1,552 1,048 964
Loans 85,785 89,486 87,592
Derivatives 0 115 0
Provision for possible third party claims 12,035 19,068 14,442
Other payables 23 45 18
-------------------------------------------------------------------------------
TOTAL NON-CURRENT LIABILITIES 132,260 136,779 134,086
-------------------------------------------------------------------------------
TOTAL LIABILITIES 149,514 154,131 147,331
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 63,219 59,229 77,512
-------------------------------------------------------------------------------
TOTAL EQUITY 101,231 97,241 115,524
-------------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY 250,745 251,372 262,855
CASH FLOWS STATEMENT 6 months 6 months 12 months
EUR thousand 2020 2019 2019
CASH FLOWS FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Operating profit 10,262 13,494 32,075
Adjustment for depreciation/amortisation 3,054 2,969 6,109
Adjustment for revenues from connection
fees -225 -179 -389
Other non-cash adjustments -2,407 0 -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 activities 938 -663 391
Change in liabilities involved in operating
activities -481 570 318
-------------------------------------------------------------------------------
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 11,130 16,186 34,018
CASH FLOWS USED IN INVESTING ACTIVITIES
-------------------------------------------------------------------------------
Acquisition of property, plant and
equipment, and intangible assets -5,450 -3,093 -10,441
Compensations received for construction of
pipelines, incl connection fees 718 1,668 3,010
Proceeds from sales of property, plant and
equipment and intangible assets 28 7 24
Interest received 30 15 36
-------------------------------------------------------------------------------
TOTAL CASH FLOWS USED IN INVESTING
ACTIVITIES -4,674 -1,403 -7,371
CASH FLOWS USE D IN FINANCING ACTIVITIES
-------------------------------------------------------------------------------
Interest paid and loan financing costs,
incl swap interests -367 -509 -1,056
Lease payments -259 -209 -404
Received loans 0 0 37,500
Repayment of loans -1,818 -1,818 -41,136
Dividends paid -19,888 -14,965 -14,965
Withheld income tax paid on dividends 0 0 -36
Income tax paid on dividends -73 -156 -3,544
-------------------------------------------------------------------------------
TOTAL CASH FLOW USED IN FINANCING
ACTIVITIES -22,405 -17,657 -23,641
-------------------------------------------------------------------------------
CHANGE IN CASH AND CASH EQUIVALENTS -15,949 -2,874 3,006
-------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE PERIOD 64,775 61,769 61,769
-------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD 48,826 58,895 64,775
Karl Heino Brookes
Chairman of the Management Board
+372 62 62 200
karl.brookes@tvesi.ee (https://www.globenewswire.com/Tracker?data=ylcNe-
3F3FLka4eLvHeGMcRuXyAA2xSI9Gq80foEdoKuI79SQ0EvoV5ycfpP4_5vynG5KKdwi9U4XaRB6YWWsb
bMaNNvI-4YHIKk5uR0t4E=)
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