The Company’s 2015 financial results have been good compared to 2014. As the Company’s tariffs are frozen at the 2010 tariff level, the changes in the revenues from main activities, i.e. from sales of water and wastewater services, are fully driven by consumption. AS Tallinna Vesi’s 2015 total sales were EUR 55.93 million, showing an increase by 5.0% or EUR 2.69 million year on year. Sales from water and wastewater services were EUR 49.30 million, increasing 1.4% or EUR 0.70 million compared to the twelve months of 2014. Sales of construction, design and asphalting services were EUR 2.72 million, increasing by 188.9% or EUR 1.78 million year on year, showing significant increase within a year.
AS Tallinna Vesi’s 2015 operating profit was EUR 25.6 million, increasing by 3.0% or by 0.8 million euros compared to 2014. Increase in total sales and savings are balanced by increase in salary costs and continuously high legal costs related to the tariff disputes.
Financial results are a reflection of an outstanding operational performance, Water quality was the highest ever at 99.86. Also, the lowest leakage rate in the Company’s history was achieved in 2015. Although in 2014, the leakage level was at very low 16.14% level, in 2015 the leakage rate was at 14.68% level.
Yesterday, on the 28th of January 2015, AS Tallinna Vesi was announced as a winner in the Nasdaq Baltic Market Awards’s main category “The Best Investor Relations in the Baltic” for a third consecutive year. In addition, the Company got first prizes in the categories of ; Best Investor Relations according to the market professionals, Best Interactive Relations and the Most Trustworthy Company within the Nasdaq Baltic Market. AS Tallinna Vesi’s Chairman of the Management Board, Karl Heino Brookes said: “This is a fantastic achievement and a wonderful recognition of how AS Tallinna Vesi conducts its business.”
AS Tallinna Vesi is involved in two court proceedings in connection with the Services Agreement and the tariffs, locally as well as internationally. During forth quarter of 2015, there were no new hearings. Nevertheless, in 11th of November, AS Tallinna Vesi filed the appeal to the District Court regarding the 5th of June 2015 Tallinn Administrative Court’s decision to dismiss the Company’s claim.
The timetable of the international Arbitration Proceedings is public and can be found on the ICSID website, a link to which is included on the investors website as part of the 22nd June announcement. The final hearing is set for November 2016.
AS Tallinna Vesi remains open for open and meaningful discussion with Estonian authorities.