AS Tallinna Vesi’s total sales in Q1 increased by 1.4 per cent

AS Tallinna Vesi’s total sales revenue increased by 1.4 per cent to 12.4 million Euros year-on-year in the first quarter of 2011. The Company’s operating profit from water and wastewater related activities increased by 1.7% to 6.6 million Euros in 2011 compared to 2010. In the first quarter of 2011 the net financial costs decreased as result of the change in the fair value of financial instruments that increased the profits before tax to 8 million Euros. 

AS Tallinna Vesi’s CEO Ian Plenderleith said that the Company has signed interest rate swap agreements until the year 2015 to mitigate the Company’s vulnerability to risks from changes in interest rates. „This quarter’s strong financial performance is primarily the result of the financing strategy the Company opted for last year, as the increase in Euribor rates and forecasts has contributed to a non-cash profit increase,“ explained Plenderleith, adding that another factor was the improved collection of debt.

The Company’s operating results were excellent across all the sectors. Water quality was the highest ever – 100% of all samples complied with all requirements instead of the required 95%. The level of leakages was reduced to 20,3%. A more proactive communication approach to customers gives them the possibility to get information in an easier and timely manner, thus diminishing the possibility of any negative surprises. As a new measure, altogether 97,5% of emergency service interruptions on working days were with notifications, where customers were told beforehand what would be done and by what time.
AS Tallinna Vesi‘s application to the Competition Authority for the contractual tariff increase accrording to the Services Agreement continues to be processed and the Company can not predict the final date. The Company believes that the adoption of the Anti-Monopoly Bill by the Parliament in August 2010 and the subsequent methodology established by the Competition Authority in November 2010 constitute upon implementation a unilateral breach of the privatization contract signed in 2001. The European Commission has submitted a request for information to the  Estonian authorities upon the appeal of the Company, the deadline for the Estonian authorities to respond to the Commission is in the beginning of May.