Singapore markets closed
  • Straits Times Index

    2,855.82
    -1.66 (-0.06%)
     
  • Nikkei

    26,644.71
    +107.40 (+0.40%)
     
  • Hang Seng

    26,894.68
    +75.23 (+0.28%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • BTC-USD

    17,046.27
    +321.47 (+1.92%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Gold

    1,781.90
    -23.60 (-1.31%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • FTSE Bursa Malaysia

    1,607.59
    -4.52 (-0.28%)
     
  • Jakarta Composite Index

    5,783.33
    +23.42 (+0.41%)
     
  • PSE Index

    6,791.46
    -136.29 (-1.97%)
     

AS Tallinna Vesi´s financial results for the 3rd quarter of 2020

Tallinna Vesi
·9-min read

AS Tallinna Vesi’s sales revenue for the third quarter of 2020 were €13.28 million, showing a decrease of 19.5% compared to the same period last year. This was caused by the reduced tariffs and lower commercial consumption resulting from the coronavirus outbreak. Nevertheless, we have seen a partial increase in commercial consumption during the third quarter compared to the second quarter, which hopefully signals a partial recovery.

Sales to private customers in the main service area decreased by 23.8% to €4.90 million, due to the reduced tariffs. The impact of reduced tariffs was partly balanced by higher consumption of apartment blocks, which is the largest private customer segment of the Company. This was the result of the coronavirus, as large number of people worked from home also during the 3rd quarter.

In the main service area, the sales revenue from commercial customers dropped by 29.8% to €3.71 million, which was mainly attributable to 18% less consumption and reduced tariffs. In the commercial customer segment, the hospitality sector has seen the greatest impact from the pandemic, resulting in reduced consumption. However, the 3rd quarter saw some increase in commercial consumption compared to the 2nd quarter, which hopefully indicates a partial recovery from the effects of coronavirus.

The gross profit for the 3rd quarter of 2020 was €5.80 million, showing a 35% decrease mostly due to lower sales revenues. The operating profit was €5.77 million, lower by €1.75 million year-on-year. Besides the negative changes in tariffs and consumption, the operating profit was positively impacted by €1.2 million reduction in the provision, formed for possible third-party claims, which was also reduced in the 2nd quarter.

The net profit for the 3rd quarter of 2020 was €5.64 million, showing a decrease of 23.1% compared to the same period last year. In addition to the changes in the operating profit, the net profit was positively affected by lower interest costs.

Coronavirus also affected the sale of construction services, because a number of new developments in Tallinn were postponed. In the 3rd quarter, the subsidiary Watercom continued the delivery of large projects in Tallinn and elsewhere in Estonia, which had been awarded in 2019. The construction revenue reduced by 17.3% or €0.36 million compared to the same period last year. The decrease in revenues was mainly attributable to reduced revenues from construction services, which were partly offset by higher revenues from road construction.

The Company has just reviewed its dividend policy for going forward. ASTV aims to distribute 50%-80% of the annual profit as dividends. Dividend payments shall be assessed annually considering ASTV’s earnings, investment needs, liquidity position and long-term financial objectives.

MAIN FINANCIAL INDICATORS

€ million,
except key ratios

3rd quarter

Change 2020/ 2019

9 months

Change 2020/ 2019

2020

2019

2018

2020

2019

2018

Sales

13.28

16.49

16.49

-19.5%

13.28

16.49

16.49

-19.5%

Gross profit

5.80

8.92

8.59

-35.0%

5.80

8.92

8.59

-35.0%

Gross profit margin %

43.69

54.12

52.10

-19.3%

43.69

54.12

52.10

-19.3%

Operating profit before depreciation and amortisation

7.35

9.01

8.73

-18.5%

7.35

9.01

8.73

-18.5%

Operating profit before depreciation and amortisation margin %

55.33

54.63

52.95

1.3%

55.33

54.63

52.95

1.3%

Operating profit

5.77

7.52

7.31

-23.3%

5.77

7.52

7.31

-23.3%

Operating profit - main business

5.44

7.19

7.07

-24.4%

5.44

7.19

7.07

-24.4%

Operating profit margin %

43.43

45.60

44.31

-4.8%

43.43

45.60

44.31

-4.8%

Profit before taxes

5.64

7.33

7.14

-23.1%

5.64

7.33

7.14

-23.1%

Profit before taxes margin %

42.45

44.47

43.28

-4.6%

42.45

44.47

43.28

-4.6%

Net profit

5.64

7.33

7.14

-23.1%

5.64

7.33

7.14

-23.1%

Net profit margin %

42.45

44.47

43.28

-4.6%

42.45

44.47

43.28

-4.6%

ROA %

2.24

2.89

2.97

-22.4%

2.24

2.89

2.97

-22.4%

Debt to total capital employed %

57.73

59.29

59.89

-2.6%

57.73

59.29

59.89

-2.6%

ROE %

5.42

7.27

7.58

-25.5%

5.42

7.27

7.58

-25.5%

Current ratio

3.66

5.14

4.99

-28.8%

3.66

5.14

4.99

-28.8%

Quick ratio

3.62

5.10

4.96

-29.0%

3.62

5.10

4.96

-29.0%

Investments into fixed assets

5.92

4.66

4.29

27.1%

5.92

4.66

4.29

27.1%

Payout ratio %

na

72.05

62.11

na

72.05

62.11

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 INCOME

3rd quarter

3rd quarter

9 months

9 months

12 months

€ thousand

2020

2019

2020

2019

2019

Revenue

13,276

16,487

38,545

47,301

63,423

Cost of goods and services sold

-7,476

-7,565

-21,954

-21,327

-29,470

GROSS PROFIT

5,800

8,922

16,591

25,974

33,953

Marketing expenses

-94

-89

-320

-297

-390

General administration expenses

-1,123

-1,120

-3,631

-4,408

-5,689

Other income (+)/ expenses (-)

1,182

-195

3,387

-256

4,201

OPERATING PROFIT

5,765

7,518

16,027

21,013

32,075

Financial income

3

12

28

30

38

Financial expenses

-133

-199

-357

-691

-809

Other financial income (+)/ expenses (-)

0

0

0

0

0

PROFIT BEFORE TAXES

5,635

7,331

15,698

20,352

31,304

Income tax on dividends

0

0

-4,355

-3,544

-3,544

NET PROFIT FOR THE PERIOD

5,635

7,331

11,343

16,808

27,760

COMPREHENSIVE INCOME FOR THE PERIOD

5,635

7,331

11,343

16,808

27,760

Attributable profit to:

Equity holders of A-shares

5,634

7,330

11,342

16,807

27,759

B-share holder

0.60

0.60

0.60

0.60

0.60

Earnings per A share (in euros)

0.28

0.37

0.57

0.84

1.39

Earnings per B share (in euros)

600

600

600

600

600


STATEMENT OF FINANCIAL POSITION

€ thousand

30/09/2020

30/09/2020

31/12/2019

ASSETS

CURRENT ASSETS

Cash and cash equivalents

45,868

61,125

64,775

Trade receivables, accrued income and prepaid expenses

6,827

8,439

7,239

Inventories

695

539

504

TOTAL CURRENT ASSETS

53,390

70,103

72,518

NON-CURRENT ASSETS

Property, plant and equipment

198,839

186,152

189,627

Intangible assets

598

594

710

TOTAL NON-CURRENT ASSETS

199,437

186,746

190,337

TOTAL ASSETS

252,827

256,849

262,855

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Current portion of long-term lease liabilities

397

379

352

Current portion of long-term loans

3,631

3,631

3,631

Trade and other payables

7,757

6,719

6,718

Derivatives

28

271

221

Prepayments

2,757

2,639

2,323

TOTAL CURRENT LIABILITIES

14,570

13,639

13,245

NON-CURRENT LIABILITIES

Deferred income from connection fees

33,278

28,981

31,070

Leases

1,465

1,013

964

Loans

85,791

89,490

87,592

Derivatives

0

50

0

Provision for possible third party claims

10,832

19,068

14,442

Other payables

25

36

18

TOTAL NON-CURRENT LIABILITIES

131,391

138,638

134,086

TOTAL LIABILITIES

145,961

152,277

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

68,854

66,560

77,512

TOTAL EQUITY

106,866

104,572

115,524

TOTAL LIABILITIES AND EQUITY

252,827

256,849

262,855

CASH FLOWS STATEMENT

9 months

9 months

12 months

€ thousand

2020

2019

2019

CASH FLOWS FROM OPERATING ACTIVITIES

Operating profit

16,027

21,013

32,075

Adjustment for depreciation/amortisation

4,634

4,457

6,109

Adjustment for revenues from connection fees

-341

-277

-389

Other non-cash adjustments

-3,610

0

-4,624

Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets

-14

154

138

Change in current assets involved in operating activities

221

-843

391

Change in liabilities involved in operating activities

-249

195

318

TOTAL CASH FLOWS FROM OPERATING ACTIVITIES

16,668

24,699

34,018

CASH FLOWS USED IN INVESTING ACTIVITIES

Acquisition of property, plant and equipment, and intangible assets

-10,114

-6,147

-10,441

Compensations received for construction of pipelines, incl connection fees

1,618

2,205

3,010

Proceeds from sales of property, plant and equipment and intangible assets

32

7

24

Interest received

34

25

36

TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES

-8,430

-3,910

-7,371

CASH FLOWS USE D IN FINANCING ACTIVITIES

Interest paid and loan financing costs, incl swap interests

-519

-764

-1,056

Lease payments

-452

-306

-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

-113

-36

-36

Income tax paid on dividends

-4,355

-3,544

-3,544

TOTAL CASH FLOW USED IN FINANCING ACTIVITIES

-27,145

-21,433

-23,641

CHANGE IN CASH AND CASH EQUIVALENTS

-18,907

-644

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

45,868

61,125

64,775

Karl Heino Brookes

Chairman of the Management Board

+372 62 62 200

karl.brookes@tvesi.ee

Attachment