Estonia, Markets and Companies, Water

AS Tallinna Vesi’s net sales for the nine months in 2014 have increased by 1.6% to 39.93 million euros, compared to the same period last year. The company’s tariffs are frozen at the 2010 tariff level, therefore changes in the revenues from the main activities are fully driven by consumption, the company said.

Despite the increase in sales revenues, the operating profit for the nine months of 2014 has remained stable, increasing by 0.1% to 18.23 million euros. AS Tallinna Vesi’s operating profits continue to be affected by the legal expenses with regards to the ongoing legal disputes. In addition to the local tariff dispute AS Tallinna Vesi has commenced international arbitration proceedings against the Republic of Estonia. The company is claiming compensation for potential damages for total losses over the lifetime of the contract to 2020.

The group’s sales revenues during the third quarter 2014 have been relatively stable being slightly up compared to the same period in 2013, increasing 1.0% to 13.25 mln euros. The operating profit from group’s main activities increased 3.8% in the third quarter to 6.34 mln euros, mainly due to the lower variable costs.