AS Tallinna Vesi Reports €16 Million in Q1 Sales Boost
AS Tallinna Vesi Sees Positive Sales Growth in the First Quarter
In an encouraging development, AS Tallinna Vesi reported sales reaching €16 million during the first quarter of 2025. This growth is attributed to a combination of increased consumption volumes and an anticipated price adjustment.
This figure signifies an increase of 5.9% compared to the same period last year. Specifically, revenue from water services aimed at business customers totaled €4.16 million, which unfortunately reflects a slight decline of 2.8% from the previous year. In contrast, the revenue generated from private customers surged by 17.6%, amounting to €7.3 million. This shift in the customer landscape has been influenced by recent legal mandates requiring equal pricing for private and business clients.
Financial Performance Highlights
The company's success is also evident in its net profit, which stood at €3.44 million, an increase of €0.43 million from the same quarter in 2024. This rise is primarily due to adjustments in service pricing and decreased financial costs associated with lower Euribor rates.
AS Tallinna Vesi continues to pursue a more sustainable operational model, aiming to minimize its environmental impact. This is part of a broader strategy supported by significant investments, including the establishment of a combined heat and power (CHP) plant. CEO Aleksandr Timofejev stated, "In the first quarter alone, we generated 2.2 GWh of energy with biogas derived from our wastewater treatment processes, which has helped reduce costs by €250,000, translating to more affordable water services for our consumers."
Strategic Investments for Future Sustainability
As part of its effort to reinforce its infrastructure and uphold the continuous provision of essential services, AS Tallinna Vesi has allocated a total investment of €61 million for the year. Timofejev remarked, "Our investments are essential for the sustainability of water infrastructure, especially given the challenges posed by climate change, like the unprecedented rainfall we experienced in January, which increased treatment plant inflow dramatically." He emphasized the need for ongoing investments in the construction of separate stormwater systems to ensure the city's resilience to heavy rains.
Projects already in motion include upgrades to treatment facilities, with emergency generators being installed in pumping stations to guarantee service continuity during potential power interruptions. Critical enhancements to the wastewater treatment process are also underway, focusing on improving the removal of debris in initial treatment phases, thereby optimizing the overall efficiency of wastewater management.
Commitment to Water Quality and Community Engagement
The quality of tap water remains a priority for AS Tallinna Vesi, maintaining excellent standards and meeting 100% of quality requirements in the first quarter. Timofejev remarked, "We strive daily to deliver the highest quality tap water to our customers. In the past year, we have invested significantly in upgrading our water network and have efficiently cleaned over 140 kilometers of water pipelines utilizing innovative ice-pigging techniques." To enhance customer service, a real-time outage map is now available online, offering transparency regarding planned maintenance and emergency water service interruptions.
Moreover, the company has been proactive in educating the public on the importance of potable water and has actively participated in career fairs across universities to attract new talent.
A recent survey by Kantar Emor acknowledged AS Tallinna Vesi as part of the top five green infrastructure companies, highlighting its long-term dedication to ecological sustainability.
Effluent Quality and Water Loss Improvements
In the first quarter of 2025, the Paljassaare Wastewater Treatment Plant reported effluent quality exceeding regulatory standards. AS Tallinna Vesi successfully removed over 240 tonnes of debris, 40 tonnes of sand, 479 tonnes of nitrogen, and 59 tonnes of phosphorus from wastewater, contributing to the health of the Baltic Sea.
The company also achieved a reduction in the water loss rate within its distribution network, dropping to 15.88% from 16.55% a year ago. To sustain low water loss rates, continuous monitoring and a planned rehabilitation program for the water network are in place.
Infrastructure Rehabilitation and Smart Meter Installation
By the end of the first quarter, AS Tallinna Vesi had rehabilitated approximately 7 kilometers of pipelines, with over half of that using no-dig methods. Ongoing projects in key areas like Lastekodu Street and Paljassaare are progressing with community collaboration to ensure minimal disruptions to local lives.
Moreover, the installation of smart meters has reached 67% of the customer base, with plans to upgrade all customer meters by 2026. These smart meters will facilitate timely leak detection, benefitting both the environment and residents by preventing significant damages from water emergencies.
AS Tallinna Vesi is the largest water utility company in Estonia, providing services to around 25,000 private and business customers, alongside approximately 500,000 end consumers in Tallinn and neighboring regions. The company is publicly traded on the Nasdaq Tallinn Stock Exchange, with major stockholders including the City of Tallinn (55.06%) and Utilitas energy group (20.36%), while 24.58% of shares are publicly available.
Frequently Asked Questions
What were AS Tallinna Vesi's sales in the first quarter?
AS Tallinna Vesi reported sales of €16 million in the first quarter of 2025.
How did sales compare to the previous year?
Sales increased by 5.9% compared to the first quarter of 2024.
What is the company's commitment to sustainability?
AS Tallinna Vesi is investing in sustainable operations and reducing its environmental footprint, including investments in a CHP plant.
What is the current water loss rate for AS Tallinna Vesi?
The water loss rate in the distribution network is currently 15.88%.
How many customers have smart meters installed?
As of the end of the first quarter, 67% of AS Tallinna Vesi's customers have smart meters installed.
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