OREANDA-NEWS. The Company’s net profit for the 1st quarter of 2016 was EUR 5.64 million, being 11.7% or EUR 0.75 million lower than in the 1st quarter of 2015. The decrease of the net profit was mostly influenced by a negative change in the fair value of swap contracts in the 1st quarter of 2016. Without the effect of negative change in the fair value of swap contracts, the net profit for the 1st quarter of 2016 was EUR 6.29 million, being EUR 0.32 million higher than in the 1st quarter of 2015.

AS Tallinna Vesi’s sales revenues for the 1st quarter of 2016 were EUR 14.37 million, being up by 5.9% or EUR 0.80 million year-on-year. As the Company’s tariffs remain frozen at the 2010 level, the changes in the revenues from water and wastewater services are fully driven by consumption. In the 1st quarter of 2016, the revenues from main activities grew by EUR 0.26 million, whilst the year-on-year increase by EUR 0.42 million in the revenues from construction and asphalting services was even higher.

Yesterday, on 28.04.2016, the Supervisory Council of the Company approved the proposal to be submitted to the Annual General Meeting (AGM) of the Company, on the distribution of profit. In line with AS Tallinna Vesi’s dividend policy, Supervisory Council will make a proposal to the AGM to distribute 0.90 euros of AS Tallinna Vesi’s retained earnings of 89 007 000 euros as of 31.12.2015, incl. from the net profit of 19 858 000 euros for the year 2015, as dividends, of which 0.90 euros per share shall be paid to the owners of the A-shares and 600 (six hundred) euros per share shall be paid to the owner of the B-share.

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 quarter of 2016, no new 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 find the announcement published on Tallinn Stock Exchange here). The final hearing is set for November 2016.