Tallinna Vesi - world's most profitable water company ?

Toomas Hõbemägi

Even most optimistic analysts were surprised about third-quarter results of Tallinn's main water company Tallinna Vesi.

The company that is co-owned by City of Tallinn reported that its net profit for the third quarter was 102.3 million kroons or 15% more than a year earlier, writes Äripäev.

This is the company's best-ever quarterly profit. In the first quarter 2009, the company said its profit was 98.4 million kroons.

What is most surprising is that the company's revenues in the third quarter were only 189 million kroons which means that the company's net profit margin is an astonishing 54.3%.

Pre-tax profit and margin was even higher: 125.1 million kroons and 66.2%, respectively.

In the last five years, Tallinna Vesi has paid out 944 million  kroons in dividends, including 230 million this year.

According to analysts, this could make Tallinna Vesi the most profitable utility in the world. For instance, ten water companies listed on US stock exchange had net profit margin of between 6.7 and 20.1% last year.