OREANDA-NEWS. November 3, 2011. Company's operating profit from main services increased by 5.8% or 0.4 million euros in the 3rd quarter of 2011 compared to the same period of 2010. Profit increased mainly due to the increase in sales in the tourism sector and more efficient environmental performance, which contributed to the year-on-year comparison 0.5 million euro saving in operating costs.

According to Ian Plenderleith, the Chairman of the Management Board of AS Tallinna Vesi, the construction of biofilter is an important environmental project that will benefit the Bay of Tallinn and neighboring beach areas. "This investment in the biofilter also ensures full compliance with all the requirements of European Union today and in the future," added Plenderleith.

The total investments of AS Tallinna Vesi were 11.9 million euros during the 9 months of 2011.

The Company's 9 months' sales have increased by 2.5% and operating profit from main business by 5.6% or 1 million euro. Net profit has further increased by 5.3 million euros, entirely due to the 4.2 million euros reduction in income tax paid on dividends.

"The average real return on invested capital has been only 6.2% and this is fully in accordance with the real returns allowed by UK and Dutch regulators," said Plenderleith

AS Tallinna Vesi would like to highlight that it has fulfilled all aspects of the privatization contract, including a significant improvement in the quality requirements, as determined by the Tallinn City Government in 2001. "Efficiency and continuous improvement in operations is proven by the operational results of AS Tallinna Vesi in the 9 months of 2011," said Plenderleith

The Company's share price has dropped considerably after the claim of the Competition Authority that the privatization contract did not comply with the law. "The Competition Authority has decided to bypass the ongoing court procedure regarding the legality of the privatization contract," commented Plenderleith the Competition Authority's to reduce the current tariffs by 29%.

AS Tallinna Vesi does not believe that the prescription or the non-approval of the 2011 tariffs have ever been economically or legally justified and as such will contest both these decisions in court.