The Company’s sales revenues for the first half of 2016 were EUR 28.87 million, being 5.7% or EUR 1.56 million higher than in the same period of 2015. The sales increase was mostly down to higher revenues from water and wastewater services and construction and asphalting services.
At the same time, the operating profit for the first 6 months of 2016, was EUR 12.47 million and net profit EUR 10.91 million. Compared to the same period in 2015, the operating profit declined by 3.4% or EUR 0,45 million and net profit by 24.8% or EUR 2.11 million.
Decrease in operating profit was mostly induced by higher legal costs. The decline in the fair value of SWAP contracts of EUR 0.87 million, compared to the EUR 1.41 million positive change in the same period in 2015, had an impact on the net profit. At the same time, the interest costs for the first half of 2016 were EUR 0.65 million lower than in the first half of 2015. Consequently, the net profit for the first six months in 2016, without the effect of the change in the fair value of swap contracts, was EUR 7.3 million and EUR 7.2 million for 2015.
AS Tallinna Vesi is involved in two court proceedings in connection with the Services Agreement and the tariffs, both locally and internationally. During the first half of 2016, no hearings were held. 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 2015 announcement (please see here). The final hearing is scheduled for November 2016.