Atnaujinta: 2024.07.02 21:57 (GMT+3)
AS Tallinna Vesi FINANCIAL RESULTS 01.11.2005
RESULTS OF OPERATIONS IN THE NINE MONTHS TO 30 SEPTEMBER 2005
Key performance indicators
Amounts in million EEK
9 months 9 months Change
2005 2004
Sales 440,8 403,8 9,2%
Main operating activities 409,6 356,4 14,9%
Other operating activities 31,1 47,4 -34,3%
Gross profit 264,9 213,6 24,0%
Gross profit margin % 60,1% 52,9% 13,6%
Operating profit 208,9 194,7 7,3%
Operating profit margin % 47,4% 48,2% -1,7%
Profit before taxes 167,6 153,9 8,9%
Profit before taxes margin 38,0% 38,1% -0,3%
Net profit 132,2 127,6 3,6%
ROA % 5,6% 5,9% -5,3%
Debt to total capital 57,2% 56,2% 1,8%
employed
ROA - Net profit /Total Assets
Debt to Total capital employed - Total Liabilities / Total capital employed
CEO of Tallinna Vesi, Bob Gallienne: "The Company is pleased to announce quarter
3 results in line with expectations. Profit before tax for the quarter increased
by 55.2 mln kroons due to revenue growth and strong cost control. The company
continues to outperform its contractual levels of service and has once again
received official confirmation from the Supervisory Foundation that all 97 levels
of service were fully met in 2004. To ensure compliance with the water quality
standards, which will come into effect in 2007, we are continuing to make
significant investments in fixed assets. Due to this we already are achieving a
97.08% compliance with the 2007 standards. In the third quarter of 2005 the
company invested 56.4 mln kroons in the purchase and construction of fixed
assets, significantly higher than the depreciation charge of 19 mln kroons.
Since we last reported the company has, on 14 October 2005, received the
Environmental Management and Auditing System (EMAS) certification from the
Ministry of Environment. The Company was chosen as a pilot project for this EU
award in Estonia and is very proud to be the first Company in Estonia to receive
the certification. Another clear demonstration of our committment to the
environment. In addition we implemented our new Customer Service and Billing
system which will enable us to significantly improve the range of service options
available to our customers."
Income Statement
In the first nine months of 2005 sales from the Company's main operating
activities grew by 53.2 mln EEK, or 14.9% to 409.6 mln EEK. Sales from water and
wastewater increased by 16.6%, which was in accordance with expectations and is
largely attributable to the increase in water and sewerage tariffs from 1 January
2005 for the Company's residential and commercial customers. Sales volumes of
water and wastewater supplied and treated in the residential and commercial
sectors grew, year on year, by 0.3% and 0.5% respectively. Sales volumes of
wastewater treatment services provided to surrounding municipalities outside of
the services area reached almost 734,000 m3 in the first nine months of 2005, an
increase of 5% on the corresponding period in 2004. Sales from stormwater
treatment and disposal, fire hydrant and other work and services increased to
40.96 mln EEK, or by 1.7% compared to the same period in 2004.
Profits from other operating activities the first nine months of 2005, primarily
connections income, were 3.4 mln EEK, a 1.8 mln EEK decrease from 2004 levels.
Cost of goods sold for the main operating activity was held down to 148.1 mln EEK
in the first nine months of 2005, an increase of 0.1 mln EEK or 0.1% from the
equivalent period in 2004. With inflation at 4.9% for the twelve month period to
Sept 2005 this is a real decrease and, was achieved by cost savings resulting
from improved procurements and processes in the operations activity.
The Company's gross profit for the first nine months of 2005 was 264.9 mln EEK,
which represents an increase of 51.3 mln EEK, or 24.0%, compared to a gross
profit of 213.6 mln EEK for the first nine months of 2004.
As a result of the above factors the Company achieved an improved gross profit
margin of 60.1% for the first nine months of 2005 compared to 52.9% for the first
nine months of 2004. This indicates the Company's ability to control operating
costs and to convert the sales growth in main operating activities into improved
profit margins.
General administration expenses increased by 22.8 mln EEK from 30 mln EEK in the
first nine months of 2004 up to 52.9 mln EEK in first nine months of 2005. This
was attributable to the one-off IPO costs, Tallinn Stock Exchange listing costs
and lower capitalisation of operating expenses.
Other income, net, was 1.75 mln EEK for the first nine months of 2005,
representing a decrease of 13.9 mln EEK compared to other income, net, from the
corresponding period in 2004. In 2005, other income gained from land sales has
been offset by IPO costs of 8.5 mln EEK, whereas in the first nine months of
2004, land sales and provisions released to the profit and loss account resulted
in a positive revenue stream of 15.6 mln EEK
IPO costs in total were 26.0 mln EEK, being made up of 19.9 mln EEK for
professional services and 6.1 mln EEK for the cost of a staff bonus.
The Company's operating profit for the first nine months of 2005 was 208.9 mln
EEK, which represented an increase of 14.2 mln EEK, or 7.3%, over the operating
profit of 194.7 mln EEK for the first nine months of 2004.
Income taxes increased by 9.1 mln EEK, from 26.3 mln EEK in first nine months
2004 up to 35.4 mln EEK in first nine months of 2005 as a result of the improved
dividend.
The Company's net profit for the first nine months of 2005, including the impact
of one-off IPO costs, was 132.2 mln EEK, a increase of 4.6 mln EEK compared to
the corresponding period in 2004.
Balance sheet
The Company's total assets were 2,380.0 mln EEK as at 30 Sept 2005, an increase
of 203.6 mln EEK year-on-year. Current assets increased by 85.8 mln EEK, largely
attributable to an increase in cash.
Tangible and intangible fixed assets and asset constructions in progress totalled
1,953.3 mln EEK at 30 Sept 2005, an increase of 64.7 mln EEK of the fixed asset
base in the year, demonstrating the Company's investment in assets in order to
continually improve services to customers.
Current liabilities increased by 104.0 mln EEK, reflecting an increase in
deferred income (45.6 mln EEK prepayment for the sale of fixed assets and a 47.6
mln EEK increase in the current portion of long-term loans). Long-term
liabilities increased by 34.0 mln EEK up to 1,104.4 mln EEK at the end of Sept
2005 mainly due to the final drawdown of the EBRD loan in the value of 109.6 mln
EEK in April, which was partially offset by the first repayment of principle on
the long-term loan in the amount of 43.7 mln EEK in May 2005.
Cash flow
In the first nine months of 2005, the Company's cash flow from operating
activities was 181.8 mln EEK, a 13.3 mln EEK, or 7.9%, increase compared to the
first nine months of 2004 reflecting the increased operating profit in the
period.
Total cash inflow in the first nine months was 72.8 mln EEK compared to a cash
inflow of 13.6 mln EEK in the first nine months of 2004. Cash and cash
equivalents stood at 173.8 mln EEK as at 30 Sept 2005, an increase of 76.1 mln
EEK from 30 Sept 2004.
Dividends and share performance
In first nine months of 2005, the Company paid out a dividend in a value of 112
mln EEK based on the operational results of 2004
Starting from 1 June 2005, AS Tallinna Vesi shares have been listed on the main
list of the Tallinn Stock Exchange. AS Tallinna Vesi shareholders, with a holding
over 5% as of 30 September 2005, were:
United Utilities (Tallinn) BV 35.3%
City of Tallinn 34.7%
Nordea Bank Finland Plc clients account trading 11.69%
At the end of the reporting period, 30 Sept 2005, the closing price of the AS
Tallinna Vesi share was 14.35 EUR, which is a 55.1% premium on the initial public
offering settlement price of 9.25 EUR.
INCOME STATEMENT
(thousand EEK) 9 months 9 months
2005 2004
Sales from main operating activities 409 609 356 368
Revenues from other operating activities 31 141 47 393
Net sales 440 750 403 761
Cost of goods sold main operating activities -148 107 -147 990
Cost of goods sold other operating activities -27 725 -42 147
GROSS PROFIT 264 918 213 624
Marketing expenses -4 904 -4 520
General administration expenses -52 856 -30 027
Other income/ expenses (-) 1 750 15 646
OPERATING PROFIT 208 908 194 723
Financial income / expenses (-) -41 320 -40 803
PROFIT BEFORE TAXES 167 588 153 920
Income tax on dividends -35 368 -26 277
NET PROFIT FOR THE PERIOD 132 220 127 643
Attributable to:
Equity holders of A-shares 132 210 127 633
B-share holder 10,0 10,0
Earnings per share in kroons 6,61 6,38
BALANCE SHEET
(thousand EEK) 30.09.2005 30.09.2004
ASSETS
CURRENT ASSETS
Cash at bank and in hand 173 836 97 731
Customer receivables 46 406 47 936
Other receivables 12 732 38
Accrued income and prepaid expenses 8 458 7 351
Inventories 3 114 5 093
Assets for sale 1 396 2 043
TOTAL CURRENT ASSETS 245 942 160 192
NON-CURRENT ASSETS
Shares of associated companies 0 6 181
Long-term deposit 78 590 31 904
Other long-term investment assets 0 2 525
Tangible assets 1 814 133 1 768 626
Intangible assets 26 370 18 758
Construction in progress 112 773 101 200
Unfinished pipelines - new connections 98 591 83 201
Prepayments for fixed assets 3 648 3 889
TOTAL NON-CURRENT ASSETS 2 134 105 2 016 284
TOTAL ASSETS 2 380 047 2 176 476
LIABILITIES
CURRENT LIABILITIES
Current portion of long-term finance lease 1 455 1 837
Current portion of long-term bank loans 89 744 42 126
Trade and other payables, incl. dividends 77 378 69 047
Taxes payable 18 275 17 796
Short-term provisions 228 6 329
Deferred income 69 272 15 217
TOTAL CURRENT LIABILITIES 256 352 152 352
NON-CURRENT LIABILITIES
Finance lease 687 2 128
Bank loans 1 103 598 1 068 124
Other payables 100 100
TOTAL NON-CURRENT LIABILITIES 1 104 385 1 070 352
TOTAL LIABILITIES 1 360 737 1 222 704
EQUITY CAPITAL
Share capital 200 001 200 001
Share premium 387 000 387 000
Statutory legal reserve 20 000 93 394
Accumulated profit 280 089 145 734
Net profit for the period 132 220 127 643
TOTAL EQUITY CAPITAL 1 019 310 953 772
TOTAL LIABILITIES AND EQUITY CAPITAL 2 380 047 2 176 476
CASH FLOW STATEMENT
(thousand EEK) 9 months 9 months
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 208 908 194 723
Adjustment for depreciation 58 106 60 088
Adjustment for income and expenses from -3 416 -4 859
constructions
Other finance income and expenses -1 868 -1 769
Profit from sale of fixed assets -12 043 -2 733
Expensed fixed assets 221 107
Capitalization of operating expenses -16 643 -28 506
Movement in current assets involved in -14 108 -5 457
operating activities
Movement in liabilities involved in operating -7 973 -14 547
activities
Interest paid -29 412 -28 538
Total cash flow from operating activities 181 772 168 509
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of shares of associated 0 0
company
Acquisition of fixed assets (incl pipelines -129 125 -93 820
construction)
Proceeds from pipelines financed by 40 409 37 724
construction income
Repayments of loans to third parties 0 0
Proceeds from sale of and prepayments 47 274 3 686
received for fixed assets
Proceeds from sale of real estate investments 11 700 2 250
Interest received 3 574 1 991
Total cash flow from investing activities -26 168 -48 169
CASH FLOWS FROM FINANCING ACTIVITIES
Received long-term loans 109 571 15 647
Repayment of long-term loans -43 650 -19 001
Finance lease payments -1 320 -2 131
Dividends paid -112 000 -75 000
Income tax on dividends -35 369 -26 277
Total cash flow from financing activities -82 768 -106 762
Change in cash and bank accounts 72 836 13 578
CASH AND EQUIVALENTS AT THE BEGINNING OF THE 101 000 84 153
PERIOD
CASH AND EQUIVALENTS AT THE END OF THE PERIOD 173 836 97 731
Eteri Harring
Head of Treasury and Investor Relations
Ph. + 372 6262 225
eteri.harring@tvesi.ee
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