Sales revenues of AS Tallinna Vesi down by 4,1% in

Sales revenues of AS Tallinna Vesi were EUR 13.78 million during the 1^st quarter of 2017, being down by 4.1% compared to the same period of 2016. 

The operating profit (EUR 6.49 million) decreased by 1.5% or EUR 0.13 million year-on-year. Lower operating profit was mainly related to reduced storm water revenues and construction and asphalting services revenues, as well as higher electricity costs. The Company’s tariffs are frozen at the 2010 level and changes in revenues from the main activities, i.e. the sales of water and wastewater services, are fully driven by consumption.

The Company’s net profit increased due to lower financial expenses by 12.8% or EUR 0.72 million and reached EUR 6.36 million in the 1^st quarter of 2017. Increase in the net profit was positively impacted by the non-monetary revaluation of swap contracts, as in 2016 the impact was negative. Net profit excluding the influence of revaluation of swap contracts reached EUR 6.11 million, a 3% decrease compared to the 1^st quarter of 2016 (EUR 6.29 million). 

AS Tallinna Vesi is involved in two court proceedings with regards to the Services Agreement and the tariffs, both locally and internationally. The Company is expecting a final judgements in 2017.

         Riina Käi          AS Tallinna Vesi          CFO          Ph: (+372) 62 62 262          riina.kai@tvesi.ee