Tallinna Vesi’s fourth-quarter sales were €17.67 million
AS Tallinna Vesi’s sales amounted to €17.67 million in the fourth quarter of 2024, growing due to an increase in consumption volumes and the impact of a price change in the second half of the year.
Sales increased by 13.8% compared to the fourth quarter of 2023. Sales from water services provided to business customers in the fourth quarter of 2024 in the main service area of Tallinna Vesi were €4.3 million, which is 7.3% less than the year before. Sales from water services provided to private customers increased by 19.3% in the fourth quarter compared to the same period of the previous year, totalling €7.39 million. These trends in sales are linked to the obligation imposed by law to synchronize the price of the service for private and business customers.
The company’s operating profit for the fourth quarter was €5.27 million. Operating profit increased by 1.22 million euros compared to the year before. The operating profit for 2024 was €18.98 million, an increase of €1.63 million compared to the previous year. The main drivers were the implementation of investments, the reduction in the cost of purchased energy and the start of energy production from wastewater.
According to Aleksandr Timofejev, CEO of Tallinna Vesi, the positive effects of commissioning the combined heat and power (CHP) plant are already apparent. “By producing heat and electricity from biogas at the CHP plant, we have been able to meet over 15% of our total energy needs with energy produced by ourselves, which has increased the sustainability of our operations,” said Timofejev. With the new investments, the company is moving towards an increasingly sustainable operating model and is reducing its impact on the environment, he added.
The company’s net profit in the fourth quarter of 2024 was €4.2 million, which is €1.2 million more than in the same period of the previous year. The Group’s profit before tax for the twelve months of the year was 14.78 million euros, an increase of 4% or 0.57 million euros, compared to the same period last year. Net profit for the twelve months was €13.28 million, an increase of 3.4% or €0.44 million compared to 2023.
The Group’s net financial expenses were 1.00 million euros in the fourth quarter, which is 0.22 million euros more than in the same period last year. The increase in financial costs was due to higher interest costs.
The quality of tap water was excellent throughout 2024, meeting 99.6% of all quality requirements. The compliance in the fourth quarter was 99.5%. “We work hard every day to provide our customers and consumers with the highest quality tap water. Throughout the year, we continued to make significant investments in the water network and cleaned more than 140 kilometres of water pipes using ice-pigging technology,” said Timofejev.
In the fourth quarter of 2024, Tallinna Vesi continued to explain to the public how the vital water services work and to promote the benefits of drinking tap water. The company participated in the Impact Day sustainability festival and opened the doors of its water treatment plant to the public during the Open House Tallinn architecture weekend.
The effluent treated at the Paljassaare Wastewater Treatment Plant met all requirements during the twelve months of 2024. The good quality of the treated effluent is demonstrated by pollutant levels well below the limits set by law. During 2024, we took out more than 730 tonnes of debris, 200 tonnes of grit, 1800 tonnes of nitrogen and 240 tonnes of phosphorus from wastewater.
The water loss rate in the distribution network remained at a low level of 12.67% in the fourth quarter of the year, although it was higher than the year before (11.35%). In the twelve months of 2024, the water loss rate was 13.67%, compared to 12.93% in the previous year. To keep water losses low, the company is carrying out continuous online monitoring of the distribution network and is continuing with its planned water network rehabilitation programme.
By the end of the fourth quarter of 2024, Tallinna Vesi had rehabilitated more than 45 kilometres of network, 18 km of which was done using no-dig methods.
In 2024, major works were carried out in all the largest districts of the city. In Lasnamäe, one of the main water pipelines in Tondiloo Park was replaced. In Mustamäe and Õismäe, the pipelines supplying booster pumping stations in Tondi and Siili streets were reconstructed. In the city centre, water pipelines were rehabilitated in Järvevana Road and Masina, Lastekodu, Liivalaia and Suur-Ameerika streets. Extensive works were also carried out in Põhja-Tallinn, covering Paljassaare Road, Kopli and Paavli streets, Putukaväil, Kolde Avenue and Ehte Street.
Particular attention has been paid to the construction of separate sewer systems, which will allow stormwater to be discharged directly into the sea, rather than to the wastewater treatment plant.
In 2024, investment projects continued at the treatment plants, such as the renovation of the clarifiers at the Ülemiste Water Treatment Plant and the preparation of two major projects, one to upgrade and reconstruct the ozone production used in water treatment and the other to replace the sedimentation technology currently used in the clarifiers with flotation technology. These projects aim to reduce the energy consumption and increase the reliability of the treatment plant and to increase its production capacity.
One of the major projects at the Paljassaare Wastewater Treatment Plant was the reconstruction of the digesters, which was completed in 2024.
At the end of 2024, the subsidiary Watercom invested in equipment that allows the company to rehabilitate pipelines using a no-dig method, i.e. without digging a trench. The plan is to launch that service in 2025.
By the end of the fourth quarter of 2024, Tallinna Vesi had installed smart water meters for over 60% of its customers. The company plans to replace the water meters of all customers in its service area with smart meters by the end of 2026 at the latest. The new meters provide information on water consumption, allowing us to detect leaks in customer pipes as early as possible. This helps to protect the environment and minimises the potential damage to property caused by water accidents.
In 2024, Tallinna Vesi invested approximately €50 million in its fixed assets. This was €15 million more than in the year before. These investments will ensure the continuity of water services in our service area and improve the quality of the services we provide. The value of fixed assets totals €298.3 million.
Tallinna Vesi aims to continue investments to future-proof its infrastructure and ensure the continuity of the vital services it provides at prices consumers can afford.
The total investments planned for 2025 amount up to €61 million. Major investments include improvements to the treatment process and the start of construction of new ozone technology at the water treatment plant. In the wastewater treatment, investments include the reconstruction of mechanical screens and the continued reconstruction of secondary clarifiers. In 2025, the company plans to build and rehabilitate 45 kilometres of its network.
AS Tallinna Vesi is the largest water utility in Estonia, providing services to nearly 25,000 private and business customers and nearly 500,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the company are held by the City of Tallinn (55.06%) and the energy group Utilitas (20.36%). 24.58% of the company’s shares are freely floating on the Nasdaq Tallinn Stock Exchange.
MAIN FINANCIAL INDICATORS
| € million except key ratios | 4th quarter | 2024/2023 | 12 months | Variance 2024/2023 | ||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||
| Sales | 17.67 | 15.52 | 16.03 | 13.8% | 64.38 | 61.14 | 54.56 | 5.3% |
| Gross profit | 7.38 | 5.91 | 4.52 | 24.8% | 26.67 | 24.07 | 16.90 | 10.8% |
| Gross profit margin % | 41.74 | 38.07 | 28.21 | 9.6% | 41.43 | 39.36 | 30.97 | 5.3% |
| Operating profit before depreciation and amortisation | 7.52 | 6.17 | 4.65 | 21.8% | 27.51 | 25.40 | 18.14 | 8.3% |
| Operating profit before depreciation and amortisation margin % | 42.54 | 39.78 | 29.00 | 7.0% | 42.73 | 41.55 | 33.24 | 2.8% |
| Operating profit | 5.27 | 4.05 | 2.80 | 30.0% | 18.98 | 17.35 | 11.32 | 9.4% |
| Operating profit – main business | 4.76 | 3.55 | 2.50 | 34.3% | 17.88 | 15.99 | 10.31 | 11.8% |
| Operating profit margin % | 29.82 | 26.12 | 17.45 | 14.2% | 29.49 | 28.38 | 20.75 | 3.9% |
| Profit before taxes | 4.27 | 3.07 | 2.44 | 38.9% | 14.78 | 14.21 | 10.65 | 4.0% |
| Profit before taxes margin % | 24.14 | 19.79 | 15.22 | 22.0% | 22.96 | 23.23 | 19.51 | -1.2% |
| Net profit | 4.15 | 2.98 | 2.36 | 39.4% | 13.28 | 12.84 | 8.41 | 3.4% |
| Net profit margin % | 23.49 | 19.18 | 14.70 | 22.5% | 20.63 | 21.01 | 15.41 | -1.8% |
| ROA % | 1.34 | 1.08 | 0.94 | 24.1% | 4.46 | 4.80 | 3.30 | -0.34 |
| Debt to total capital employed % | 61.71 | 58.47 | 56.26 | 5.5% | 61.71 | 58.47 | 56.26 | 3.24 |
| ROE % | 3.51 | 2.58 | 2.15 | 36.5% | 11.20 | 11.27 | 7.43 | -0.07 |
| Current ratio | 0.76 | 1.30 | 1.24 | -41.5% | 0.76 | 1.30 | 1.24 | -0.54 |
| Quick ratio | 0.70 | 1.24 | 1.17 | -43.5% | 0.70 | 1.24 | 1.17 | -0.54 |
| Investments into fixed assets | 16.11 | 12.09 | 9.47 | 33.3% | 49.53 | 34.93 | 25.13 | 14.60 |
| Payout ratio % | – | 79.41 | 78.52 | – | 79.41 | 78.52 | ||
Gross profit margin – Gross profit / Net sales
Operating profit margin – Operating 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
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 receivables
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| € thousand | |||||||||
| ASSETS | Note | as of 31 December 2024 | as of 31 December 2023 | ||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | 3 | 3,589 | 14,736 | ||||||
| Trade receivables, accrued income and prepaid expenses | 10,746 | 8,608 | |||||||
| Inventories | 1,180 | 1,137 | |||||||
| TOTAL CURRENT ASSETS | 15,515 | 24,481 | |||||||
| NON-CURRENT ASSETS | |||||||||
| Property, plant, and equipment | 4 | 296,264 | 256,108 | ||||||
| Intangible assets | 5 | 2,062 | 1,293 | ||||||
| TOTAL NON-CURRENT ASSETS | 298,326 | 257,401 | |||||||
| TOTAL ASSETS | 313,841 | 281,882 | |||||||
| LIABILITIES AND EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Current portion of long-term lease liabilities | 875 | 697 | |||||||
| Current portion of long-term loans | 3,441 | 3,594 | |||||||
| Trade and other payables | 13,581 | 10,886 | |||||||
| Prepayments | 2,646 | 3,604 | |||||||
| TOTAL CURRENT LIABILITIES | 20,543 | 18,781 | |||||||
| NON-CURRENT LIABILITIES | |||||||||
| Deferred income from connection fees | 50,106 | 44,653 | |||||||
| Leases | 2,178 | 1,892 | |||||||
| Loans | 114,241 | 92,835 | |||||||
| Provision for possible third-party claims | 6 | 6,018 | 6,018 | ||||||
| Deferred tax liability | 494 | 505 | |||||||
| Other payables | 108 | 128 | |||||||
| TOTAL NON-CURRENT LIABILITIES | 173,145 | 146,031 | |||||||
| TOTAL LIABILITIES | 193,688 | 164,812 | |||||||
| EQUITY | |||||||||
| Share capital | 12,000 | 12,000 | |||||||
| Share premium | 24,734 | 24,734 | |||||||
| Statutory legal reserve | 1,278 | 1,278 | |||||||
| Retained earnings | 82,141 | 79,058 | |||||||
| TOTAL EQUITY | 120,153 | 117,070 | |||||||
| TOTAL LIABILITIES AND EQUITY | 313,841 | 281,882 | |||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| € thousand | ||||||||||||
| Note | Quarter 4 | for the 12 months ended 31 December | ||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | 7 | 17,670 | 15,522 | 64,377 | 61,141 | |||||||
| Cost of goods and services sold | 9 | -10,295 | -9,612 | -37,705 | -37,074 | |||||||
| GROSS PROFIT | 7,375 | 5,910 | 26,672 | 24,067 | ||||||||
| Marketing expenses | 9 | -228 | -216 | -908 | -818 | |||||||
| General administration expenses | 9 | -1,719 | -1,391 | -6,261 | -5,278 | |||||||
| Other income (+)/ expenses (-) | 10 | -160 | -250 | -521 | -621 | |||||||
| OPERATING PROFIT | 5,268 | 4,053 | 18,982 | 17,350 | ||||||||
| Financial income | 11 | 23 | 46 | 191 | 119 | |||||||
| Financial expenses | 11 | -1,026 | -1,028 | -4,394 | -3,263 | |||||||
| PROFIT BEFORE TAXES | 4,265 | 3,071 | 14,779 | 14,206 | ||||||||
| Income tax | -116 | -95 | -1,496 | -1,362 | ||||||||
| NET PROFIT FOR THE PERIOD | 4,149 | 2,976 | 13,283 | 12,844 | ||||||||
| COMPREHENSIVE INCOME FOR THE PERIOD | 4,149 | 2,976 | 13,283 | 12,844 | ||||||||
| Attributable profit to: | ||||||||||||
| Equity holders of A-shares | 4,149 | 2,976 | 13,283 | 12,844 | ||||||||
| Earnings per A share (in euros) | 13 | 0.21 | 0.15 | 0.66 | 0.64 | |||||||
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | for the 12 months ended 31 December | ||||||||
| Note | 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| Operating profit | 18,982 | 17,350 | |||||||
| Adjustment for depreciation/amortisation | 9,10 | 8,526 | 8,055 | ||||||
| Adjustment for revenues from connection fees | 10 | -701 | -604 | ||||||
| Other non-cash adjustments | 32 | -16 | |||||||
| Profit (-)/loss (+) from sale of property, plant and equipment, and intangible assets | -62 | -34 | |||||||
| Change in current assets involved in operating activities | -2,182 | 430 | |||||||
| Change in liabilities involved in operating activities | 1,652 | -667 | |||||||
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 26,247 | 24,514 | |||||||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||||
| Acquisition of property, plant, and equipment, and intangible assets | -42,730 | -28,885 | |||||||
| Compensations received for construction of pipelines, including connection fees | 1,996 | 2,535 | |||||||
| Proceeds from sale of property, plant and equipment, and intangible assets | 111 | 37 | |||||||
| Interest received | 191 | 119 | |||||||
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -40,432 | -26,194 | |||||||
| CASH FLOWS USED IN FINANCING ACTIVITIES | |||||||||
| Interest and loan financing costs paid | -5,506 | -3,413 | |||||||
| Lease payments | -1,144 | -1,233 | |||||||
| Received loans | 25,000 | 57,500 | |||||||
| Repayment of loans | -3,604 | -41,136 | |||||||
| Dividends paid | 12 | -10,069 | -6,515 | ||||||
| Withheld income tax paid on dividends | 12 | -131 | -85 | ||||||
| Income tax paid on dividends | 12 | -1,508 | -1,352 | ||||||
| TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES | 3,038 | 3,766 | |||||||
| CHANGE IN CASH AND CASH EQUIVALENTS | -11,147 | 2,086 | |||||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 3 | 14,736 | 12,650 | ||||||
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3 | 3,589 | 14,736 | ||||||
Taavi Gröön
AS Tallinna Vesi
Chief Financial Officer
(+372) 62 62 200
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