TALLINN - Tallinna Vesi (Tallinn Water) announced a huge boost in profits last year as management's cost-cutting measures achieved full effect.
The company said it posted earnings of 172.9 million kroons (11 million euros) in 2004, a 65 percent increase year-on-year, while turnover amounted to 548.5 million kroons.
Tallinn Water officials said that net profit was 24 percent higher than the company's own targets. Chairman Bob Gallienne said the company had achieved these results thanks to controlling expenses, reducing loan costs and improving management of cash flow.
The board has set aside 112 million kroons out of a retained profit of 392 million kroons for dividends. The company will keep the remainder, which will be used to finance investments as the occasion requires.
Gallienne added that the company was planning to carry out a 220 million kroon investment plan, the biggest investment since privatization. Of this, 80 million kroons will be channeled to constructing new water mains and sewage lines, and 76 million to an additional pipe-renovation program.
The main focus of the investment program is to improve the quality of water, one of the company's core goals set for 2007. Currently Tallinn Water meets requirements in the EU's drinking water directive by 92 percent. o
