Tallinna Vesi´s Supervisory Council approved the financial results for 2023 and the dividend proposal

The Supervisory Council of AS Tallinna Vesi approved the audited financial results for 2023. The financial results have not changed from the unaudited results published on 2 February 2024.

The company’s sales revenue in 2023 was €61.14 million, compared to 2022, the sales revenue increased by 12.1%, or €6.58 million. The change in sales revenue was due to the tariff, adjusted by the increase in energy costs, which took effect on 01/10/2022. Revenue from the sale of water services increased by 13.8% to €55.62 million. The revenue from the sale of construction services was €4.77 million, which is 0.7% less than a year before.

Last year’s operating profit amounted to €17.35 million, almost recovering to 2021 levels and increasing by 53.3%, or €6.03 million, compared to the significantly lower base in 2022. The growth in operating profit was mainly influenced by the stabilization of electricity prices and the tariff change in October 2022. The net profit for 2023 amounted to €12.84 million, increasing by 52.8% or €4.44 million compared to 2022, which in the amount of €0.92 million was affected by income tax expenses arising from a smaller dividend payment.

In 2023, the company signed loan agreements for €131 million. Of this amount, €37.5 million were used to refinance a previous loan and €20 million were mobilised for additional investment needs.

The audited annual report for 2023 is attached to the announcement and can also be found on the company’s website.

Dividend proposal

AS Tallinna Vesi has formulated its dividend policy based on regulatory pricing principles for water services, which aims to give investors greater clarity about the future. According to the dividend policy, the company aims to distribute 50–80% of the its annual profit as dividends to shareholders. The dividend payouts are assessed annually considering the company’s earnings, investment needs, liquidity position and long-term financial objectives.

The Management Board of AS Tallinna Vesi proposes to the annual general meeting of shareholders that the profits for 2023 be distributed as follows:

  • to distribute €10,200 thousand of the company’s consolidated retained earnings of €79,059 thousand accumulated as of 31/12/2023 (incl. consolidated net profit of €12,844 thousand for 2023) as dividends; the shareholders shall be paid EUR 0.51 per share as dividends;
  • the rest of retained earnings shall remain undistributed;
  • no allocations shall be made from the net profit to the reserve capital.

The list of shareholders entitled to receive dividends will be established as at the end of the business day of the Nasdaq CSD settlement system on 19 June 2024. Consequently, the day of change of the rights related to the shares (ex-dividend date) is set to 18 June 2024. A person acquiring the shares from that day onwards shall not be entitled to receive dividends for 2023. Dividends will be paid to the shareholders on 27 June 2024.

The 2024 proposal to distribute €0.51 per share as dividends amounts to 79 percent of the net profit for 2023.