AS Tallinna Vesi´s financial results for the 4th quarter of 2019
AS Tallinna Vesi’s sales revenues in the 4th quarter of 2019 were €16.12 million, showing a 0.7% decrease year-on-year. From 1 December 2019 the domestic tariffs in the main services area decreased on average 27% and commercial tariffs 15%.
87.0% of the sales comprise of the sales of water services, which decreased by 2.8% to €14.03. Sales to domestic and commercial customers in the main service area decreased in the total amount of €0.71 million affected by new tariffs from 1/12/2019, whilst sales to outside service areas increased by €0.14 million. The prices of water and wastewater services in the main service area decreased from 1 December 2019 on average by 27% for domestic customers and by 15% for commercial customers.
13.0% of the sales comprise of construction and other services revenues, which increased by 16.2% to €2.09 million.
The gross profit in the 4th quarter of 2019 decreased by 4.7% or €0.40 million to €7.98 million being impacted by lower water and wastewater revenues from main service area and higher electricity costs and were balanced by lower maintenance costs.
The operating profit increased year-on-year by 109.1% or €5.77 million to €11.06 million, being impacted by €4.63 million positive change in the provision for third-party claims in 4th quarter of 2019.
The net profit for the 4th quarter of 2019 increased year-on-year by 118.5% or €5.94 million to €10.95 million, being additionally impacted by €0.17 million lower net financial expenses.
MAIN FINANCIAL INDICATORS
| € million, except key ratios | 4th quarter | Change 2019/ 2018 | 12 months | Change 2019/ 2018 | ||||
| 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||
| Sales | 16.12 | 16.23 | 15.97 | -0.7% | 63.42 | 62.78 | 59.82 | 1.0% |
| Gross profit | 7.98 | 8.38 | 8.79 | -4.7% | 33.95 | 34.19 | 34.09 | -0.7% |
| Gross profit margin % | 49.49 | 51.61 | 55.04 | -4.1% | 53.53 | 54.45 | 56.99 | -1.7% |
| Operating profit before depreciation and amortisation | 12.72 | 6.82 | -8.73 | 86.5% | 38.18 | 32.73 | 17.04 | 16.7% |
| Operating profit before depreciation and amortisation margin % | 78.86 | 42.01 | -54.62 | 87.7% | 60.21 | 52.13 | 28.49 | 15.5% |
| Operating profit | 11.06 | 5.29 | -10.22 | 109.1% | 32.08 | 26.94 | 10.87 | 19.1% |
| Operating profit - main business | 10.82 | 5.07 | -10.40 | 113.6% | 31.19 | 26.22 | 10.25 | 18.9% |
| Operating profit margin % | 68.61 | 32.61 | -64.00 | 110.4% | 50.57 | 42.91 | 18.16 | 17.9% |
| Profit before taxes | 10.95 | 5.01 | -10.44 | 118.5% | 31.30 | 25.95 | 9.92 | 20.6% |
| Profit before taxes margin % | 67.93 | 30.88 | -65.36 | 120.0% | 49.36 | 41.33 | 16.59 | 19.4% |
| Net profit | 10.95 | 5.01 | -10.44 | 118.5% | 27.76 | 24.15 | 7.22 | 14.9% |
| Net profit margin % | 67.93 | 30.88 | -65.36 | 120.0% | 43.77 | 38.47 | 12.07 | 13.8% |
| ROA % | 4.21 | 2.03 | -4.64 | 107.5% | 10.83 | 10.10 | 3.27 | 7.2% |
| Debt to total capital employed % | 56.05 | 58.85 | 62.43 | -4.8% | 56.05 | 58.85 | 62.43 | -4.8% |
| ROE % | 9.95 | 5.00 | -11.47 | 99.1% | 25.43 | 25.61 | 8.24 | -0.7% |
| Current ratio | 5.48 | 5.36 | 5.51 | 2.8% | 5.48 | 5.36 | 5.51 | 2.2% |
| Quick ratio | 5.44 | 5.33 | 5.46 | 2.4% | 5.44 | 5.33 | 5.46 | 2.1% |
| Investments into fixed assets | 5.33 | 3.04 | 3.58 | 75.2% | 16.09 | 10.40 | 9.47 | 54.8% |
| Payout ratio % | na | 62.11 | 99.72 | 0.0% | na | 62.11 | 99.72 | 0.0% |
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 | 4th quarter | 4th quarter | 12 months | 12 months | |
| (€ thousand) | 2019 | 2018 | 2019 | 2018 | |
| Revenue | 16,122 | 16,229 | 63,423 | 62,780 | |
| Costs of goods sold | -8,143 | -7,854 | -29,470 | -28,594 | |
| GROSS PROFIT | 7,979 | 8,375 | 33,953 | 34,186 | |
| Marketing expenses | -93 | -93 | -390 | -386 | |
| General administration expenses | -1,281 | -1,330 | -5,689 | -5,025 | |
| Other income/ expenses (-) | 4,457 | -1,660 | 4,201 | -1,836 | |
| OPERATING PROFIT | 11,062 | 5,292 | 32,075 | 26,939 | |
| Interest income | 8 | 7 | 38 | 21 | |
| Interest expense | -118 | -287 | -809 | -1,010 | |
| PROFIT BEFORE TAXES | 10,952 | 5,012 | 31,304 | 25,950 | |
| Income tax on dividends | 0 | 0 | -3,544 | -1,800 | |
| NET PROFIT FOR THE PERIOD | 10,952 | 5,012 | 27,760 | 24,150 | |
| COMPREHENSIVE INCOME FOR THE PERIOD | 10,952 | 5,012 | 27,760 | 24,150 | |
| Attributable profit to: | |||||
| Equity holders of A-shares | 10,951 | 5,011 | 27,759 | 24,149 | |
| B-share holder | 0.60 | 0.60 | 0.60 | 0.60 | |
| Earnings per A share (in euros) | 0.55 | 0.25 | 1.39 | 1.21 | |
| Earnings per B share (in euros) | 600 | 600 | 600 | 600 |
| STATEMENT OF FINANCIAL POSITION | ||
| (€ thousand) | 31/12/2019 | 31/12/2018 |
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | 64,775 | 61,769 |
| Trade receivables, accrued income and prepaid expenses | 7,239 | 7,631 |
| Inventories | 504 | 498 |
| TOTAL CURRENT ASSETS | 72,518 | 69,898 |
| NON-CURRENT ASSETS | ||
| Property, plant and equipment | 189,627 | 179,185 |
| Intangible assets | 710 | 665 |
| TOTAL NON-CURRENT ASSETS | 190,337 | 179,850 |
| TOTAL ASSETS | 262,855 | 249,748 |
| LIABILITIES AND EQUITY | ||
| CURRENT LIABILITIES | ||
| Current portion of long-term lease liabilities | 352 | 191 |
| Current portion of long-term bank loans | 3,631 | 3,632 |
| Trade and other payables | 6,718 | 6,047 |
| Derivatives | 221 | 207 |
| Prepayments | 2,323 | 2,955 |
| TOTAL CURRENT LIABILITIES | 13,245 | 13,032 |
| NON-CURRENT LIABILITIES | ||
| Deferred income from connection fees | 31,070 | 22,745 |
| Leases | 964 | 624 |
| Loans | 87,592 | 91,295 |
| Derivatives | 0 | 173 |
| Provision for possible third party claims | 14,442 | 19,068 |
| Other payables | 18 | 46 |
| TOTAL NON-CURRENT LIABILITIES | 134,086 | 133,951 |
| TOTAL LIABILITIES | 147,331 | 146,983 |
| EQUITY | ||
| Share capital | 12,000 | 12,000 |
| Share premium | 24,734 | 24,734 |
| Statutory legal reserve | 1,278 | 1,278 |
| Retained earnings | 77,512 | 64,753 |
| TOTAL EQUITY | 115,524 | 102,765 |
| TOTAL LIABILITIES AND EQUITY | 262,855 | 249,748 |
| CASH FLOWS STATEMENT | 12 months | 12 months |
| (€ thousand) | 2019 | 2018 |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Operating profit | 32,075 | 26,939 |
| Adjustment for depreciation/amortisation | 6,109 | 5,790 |
| Adjustment for revenues from connection fees | -389 | -295 |
| Other non-cash adjustments | -4,624 | 1,526 |
| Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets | 138 | -115 |
| Change in current assets involved in operating activities | 391 | 54 |
| Change in liabilities involved in operating activities | 318 | 393 |
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 34,018 | 34,292 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | ||
| Acquisition of property, plant and equipment, and intangible assets | -10,441 | -10,736 |
| Compensations received for construction of pipelines, incl connection fees | 3,010 | 3,716 |
| Proceeds from sales of property, plant and equipment and intangible assets | 24 | 160 |
| Interest received | 36 | 17 |
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -7,371 | -6,843 |
| CASH FLOWS USE D IN FINANCING ACTIVITIES | ||
| Interest paid and loan financing costs, incl swap interests | -1,056 | -1,394 |
| Lease payments | -404 | -258 |
| Received loans | 37,500 | 0 |
| Repayment of loans | -41,136 | 0 |
| Dividends paid | -14,965 | -7,201 |
| Withheld income tax paid on dividends | -36 | 0 |
| Income tax on dividends | -3,544 | -1,800 |
| TOTAL CASH FLOW USED IN FINANCING ACTIVITIES | -23,641 | -10,653 |
| CHANGE IN CASH AND CASH EQUIVALENTS | 3,006 | 16,796 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 61,769 | 44,973 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 64,775 | 61,769 |
Karl Heino Brookes
Chairman of the Management Board
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