2005 - 2006 - Pinsent Masons Water Yearbook 2012

ESTONIA PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Estonia
AS Tallinna Vesi
International Water gained a 15 year concession contract serving the Estonian capital in 2000 through
biding KR1,338 million for a 50.4% stake in AS Tallinna Vesi. The contract involves KR3.98 billion in
capex over 12 years, including sewerage and stormwater systems in operation by 2006. In 2004, UU
bought out Bechtel and Edison’s stakes in International Water through a debt and equity deal with the
EBRD.
Since 2000, some KR1 billion has been spent in anticipation of meeting EU standards. The current
capital programme anticipates broad compliance by 2007. The company’s principal facilities are the
Ülemiste Water Treatment Plant, has a peak water production capacity of 123,000 m³ per day, and
currently treats an average of 80,000 m³ a day and the Paljassaare Wastewater Treatment Plant,
which has a maximum treatment capacity 350,000 m³ a day and currently treats on average 150,000
m³ a day.
The Tallinn City Government approved an application to increase water and wastewater service tariffs
by 9.6% (a K figure of 6.5% added to a CPI increase of 3.5% during the year) from 1st January 2006.
This means for domestic customers there will be a tariff of KR12.79 m³ (€0.82 m³) for water and
KR10.35 m³ (€0.66m3) for wastewater services. Business customers pay a higher tariff.
AS Tallinna Vesi, profit & loss account
Y/E 31/12 (KR million) 2002 2003 2004
Water supply services 201.2 200.9 220.7
Wastewater disposal services 178.0 180.7 204.5
Stormwater services 42.7 44.3 44.7
Fire hydrant service 1.9 1.9 2.0
Other services 9.1 6.9 6.9
Water & sewerage construction 79.6 69.2 69.7
Revenues 512.5 504.0 548.5
Operating profits 174.9 169.8 254.9
Net profits 146.2 104.5 173.0
Earnings per share (KR) 1.75 5.23 8.65
In June 2005, Tallinna Vesi was listed on the Tallinn Stock Exchange. After the IPO there is a free
float of 30.0%, with the City of Tallinn owning 34.7% and United Utilities Tallinn BV (75% United
Utilities/35% the EBRD), 35.3%. The IPO of Tallinna Vesi saw UU’s stake fall from 38% to 27%.
Contact Details:
Name: AS Tallinna Vesi
Address: Ädala St. 10, 10614, Tallinn, Estonia
Tel: + 372 262 202
Fax: + 372 262 300
Web: www.tallinnavesi.ee
Robert Gallienne (Chairman)
Roch Cheroux (Chief Operating Officer)
Ian Plendereth (Chief Financial Officer)
296 Pinsent Masons Water Yearbook 2005 – 2006