AS Tallinna Vesi Total Sales Decreased 0.7 Percent in 1Q
OREANDA-NEWS. April 27, 2010. AS Tallinna Vesi's total sales decreased by 0.7 per cent to 191.4 mln EEK in he first quarter of 2010 compared to the first quarter of 2009. Revenues from the main services area in
AS Tallinna Vesi's Chairman of the Management Board Ian Plenderleith said that the continuing decline in sales volumes from the main operating activities within the service area has affected the Company's financial performance in the first quarter. „Reduction in volumes by some of our larger clients through their own lower production or moving away from the area has contributed to this decline“ said Plenderleith.
The company's net profit was 81.9 mln EEK for the first three months of 2010, having decreased by 16.8% year on year.
The reduction in net profit for the quarter has been impacted by the company's long term financing strategy to mitigate interest rate risks. „We have entered in to contracts through to 2015 which will reduce the company's exposure to interest rate risk over this period of time“.
„Looking forward the management's target is to offset the impact of the reduction in sales volumes in Tallinn by expanding its operations across the country supported by cost efficiencies from improvements in processes and work organization,“ added Plenderleith and stressed that AS Tallinna Vesi will not be cutting costs at the expense of providing its customers with premium water and wastewater services.
„The beginning of the year has been challenging from an operational perspective due to severe weather conditions, but we are committed to delivering improvements in customer service throughout 2010,“ said Plenderleith.
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