AS Tallinna Vesi´s financial results for the 2nd quarter of 2020
Due to the new reduced tariffs and lower consumption, induced by the spread of coronavirus, the sales revenue of AS Tallinna Vesi in the 2nd quarter of 2020 was €12.09 million, i.e. 25.1% lower compared with the same period of 2019. The sales revenue from private customers was €5.10 million, showing a decrease of 21.9% due to the new reduced tariffs. The tariffs impact was partly balanced by higher consumption of apartment blocks, which is the company’s largest private customer segment, because large number of people were working from home due to the arrangements regarding coronavirus.In the main service area, the sales revenue from commercial customers dropped by 45.1% year-on-year to €2.95 million, which was mainly attributable to 35% less consumption and lower tariffs as well. Consumption in commercial customer segment was adversely impacted by coronavirus, because very many companies were closed from mid-March to the end of May to prevent the spread of the virus.The gross profit of the 2nd quarter of 2020 was €4.73 million, showing a 46.2% decrease mostly due to lower sales revenues. The operating profit was €4.59 million, lower by €2.01 million year-on-year. Besides changes in tariffs and consumption, the operating profit was also impacted by €1.20 million change in the provision for third-party claims and lower legal costs related to the tariff dispute.The net profit for the 2nd quarter of 2020 was €0.15 million. It showed a 94.5% decrease compared to the same period last year and was additionally impacted by higher dividend tax payments and lower financial expenses.Coronavirus also affected the sale of construction services, because the start of several new developments in Tallinn was postponed due to the emergency situation declared in Estonia and consequent effects. At the same time, the subsidiary Watercom continued the works on several larger projects they had been awarded in 2019 in Tallinn and other areas of Estonia. The revenue from construction services decreased by 18.6% or €0.27 million year-on-year.MAIN FINANCIAL INDICATORSGross 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
Karl Heino BrookesChairman of the Management Board+372 62 62 200 karl.brookes@tvesi.ee
AttachmentQ2 2020 Final report ENG
