We'll start again from the first slide. It was highlights of 2023. Alex, can you please make the short presentation again about the highlights?
Of course.
Thank you.
Good morning, everybody. I'm very sorry for the technical interruption what we had. I believe that the second trial will be much better. I am happy to welcome you today here. I will cover main highlights from the first quarter of 2023. I will start with not so very good news that are related to the accident at Tallinn Water premises. In January, an employee of Tallinn Water Technical Service Department had an accident at the construction site, where the employee hit his own finger with a hammer. As a result, two weeks of working time was lost. Today the person is back to work and feel himself well.
At the end of March, the company conducted a water network testing in the Nõmme area, simulating a scenario of a major power outage during which drinking water treated at the water treatment plant of Ülemiste had to be pumped to the Nõmme groundwater area. The testing was successful and covered approximately 30% of the Nõmme citizens. Tallinn Public Water Supply and Sewerage Development Plan was introduced this Tuesday by the City of Tallinn. The purpose of it is to provide a clear direction to the development of the water sector in Tallinn for next 12 years. The document provides an input to the investment plan of Tallinn Water that will be prepared after the document will be approved by the City Council. At the moment, the City Council plans to approve the document at the beginning of June.
We aim to grow investments in fixed assets to secure sustainable infrastructure and continuity of the service. The first quarter, we invested EUR 4.7 million in our capital assets. Already during first three months, company reconstructed 7 s of water and wastewater pipelines. This year, we plan to renovate over 25 kilometers of pipelines in total. In three months of 2023, the quality of tap water was excellent, with all the water samples taken meeting the strict standards for the water quality. Within three months, the company took 769 water samples and 100% of which met all requirements according to the quality standards. Also, the wastewater treated at the wastewater treatment plant at Paljassaare met all the strict requirements in the first quarter.
The level of water loss in the water network was low, it was 16.7% remaining at a significantly lower level compared to the same period last year. In 2022, in the first quarter, the result was 20.8%. It is also extremely important for us to provide our customers and consumers with a reliable service, part of which is the ability of important information about the service and the speed at which we answer to the questions. We are especially pleased that in the first quarter, we responded to all written customer contacts within two days. A little bit about the Watercom results. Watercom profits in 2023 first quarter was EUR 138,000.
In addition to the usual maintenance work, we started cleaning of the water pipes by using a modern ice pigging method that is still very new to the Nordic countries. Over 20 kilometers of water pipes were washed during first three months of the year. Early stage information and samples indicate that this is a very effective method for water pipes maintenance. Ice pigging maintenance brought an increase in the number of customer contacts related to the water pressure and water quality. Company plans to improve notification of the customers before maintenance work are started during the second quarter of this year. The company will gradually switch to remote readable water meters, which will free customers from the obligation of reporting their water readings every month. By the end of first quarter, 12.2% of our customers have been provided with a smart water meter.
The project should be completed by the end of 2026. A little bit about investments. We constantly put in effort to improve our vital services. In the first quarter, we carried out investments projects for EUR 4.7 million. This year, work will continue on Kalamaja, Jõe and Pronksi streets. Rehabilitation of pipelines has already started on Rahakooli Road, Rebase and Naritsa streets, using no-dig method in the area between Sipoo Avenue and Kukuze Street. Additional pressure pipe has been built for the Teletorn sewer pumping station to ensure security of wastewater service. Our capital investments into the network ensure uninterrupted water and wastewater services and reliability of water supply to consumers also in the future. At the water treatment plant of Ülemiste, reconstruction works are currently underway on the filters. Shortly, we will start with the reconstruction of switchboards.
Preparations ongoing for the reconstruction of the clarifiers and the fish ladder in Vaskjala. The main pumping station at Paljassaare got the new pump during the 1st quarter of 2023. Reconstruction of digesters, installation of cogeneration plant, and reconstruction of aerotanks are under preparation. Major design contracts have been conducted over design of the screens at the main pumping station. The reconstruction of the screens at the wastewater treatment plant and the reconstruction of secondary clarifiers are ongoing as well. Additionally, we have started studies to identify the potential for the heat recovery from the air that is coming from the air blowers. The operational results of first quarter of 2023 were very good. The quality of the drinking water in Tallinn was excellent, being 100% compliant with all requirements.
Top-level tap water was ensured by an effective water treatment process, continuous preventive maintenance works in the water network, and investments made in recent years in water pumping stations. In the first quarter, ice pigging equipment washed approximately 20 km of water pipes. Wastewater processed at Paljassaare Wastewater Treatment Plant guarantees a high level of quality. Treated wastewater was fully compliant with all the set requirements in the first quarter. The significantly lower indicators of pollutants are the proof of excellent quality of effluent discharge to the Baltic Sea. Our goal is to deliver high-quality service to our customers, and within three months, our customer satisfaction was 4.0 out of five, which is a good result. The leakage rate in the first quarter of 2023 was at 16.67%, remaining at a significantly lower level compared to the same period last year.
Last year, result was 20.8%. We always try to minimize disturbance on our customers and do everything to keep water supply 24/7. The average water interruption per property lasted three hours and 30 minutes, which is shorter than last year. In terms of enhancing the reliability of water services to our customers, within the three months, we have reconstructed over 7 km of water pipes. I will give over to Taavi, who will cover the finance. Thank you.
Thank you, Alex. Thank you very much. I'll give a short overview of the financial performance, further details as always, in our reportings, reports. To start off with a quick comment on economic forecast. Latest forecast from SEB Pank finds that conditions are improving for economic recovery. The recovery is built on a downturn in second half of the last year, the economy will still stand around 0.6% smaller compared to last year. Higher interest rates mean that growth in borrowing and investment will be slower consequently, it will offer less support for the economy. Compared to now moving on to our financial results.
Compared to the first quarter in 2022, the total sales revenue increased by 21%, amounting to EUR 14.6 million. The sales were mainly impacted by higher water services revenues, accompanied by higher construction revenues. The gross profit of the first quarter in 2023 was EUR 5.7 million, recovering by 30% compared to the same period last year. The gross profit recovery is primarily impacted by sales revenue and underlying price adjustment caused by increase in costs of goods and services sold. Dimension increase could already be observed in Q1 2022. In the first quarter of 2023, the operating profit was EUR 4.1 million, EUR 1.1 million higher than in the same period in 2022, being mainly impacted by recovery of gross profit, negated partly by higher administrative and marketing expenses.
Compared to the first quarter in 2022, the net profit of the company was EUR 0.6 million higher, amounting to EUR 3.5 million, further impacted by increase in interest expenses due to changes in base rate, which is Euribor. Now let's take a closer look at revenues expense and expenses. Total sales revenue for the Q1 in 2023 increased by 21%, amounting to EUR 14.6 million. The first quarter, the total revenue from water services increased 19%, EUR 2.1 million compared to the first quarter of 2022, when revenues amounted to EUR 13.7 million. Increased sales were primarily a result of tariff water services price adjustment starting from 1st of October 2022.
The price adjustment was driven by increase in direct production costs. Revenues were also supported by higher commercial customer volumes. In the first quarter, the private customer revenues increased compared to the same period in 2022 by 23% to EUR 6 million, reflecting the change in water price services. Commercial customer revenues in main service area increased compared to the same period last year by 11% to EUR 4.3 million. Driven by price adjustment and also increase in volumes to commercial customers. The volumes were impacted by higher consumption of hotels and spas, shopping centers, and rental services. Also keeping in mind that the operations of these services were partly still impacted by limitations in Q1 of 2022.
Construction services showed in the first quarter an increase of over 2x or EUR 3.4 million and amounted to EUR 0.8 million. Accordingly, were also higher construction services costs. The increase was mainly related to pipe and road construction projects continued from last year. Now let's follow up with a quick look at the costs. The total costs of good sales increased by 16% or EUR 1.22 million in the first quarter and amounted to EUR 8.9 million. Total direct production costs increased in Q1 by 4% or EUR 0.1 million, primarily due to higher chemicals costs.
In the first quarter, construction services costs increased by 2x or zero and amounted to EUR 0.6 million and were related to higher construction services revenues mentioned earlier. Salary costs increased by 17% to EUR 2.4 million. The cost increase was mainly affected by average 9.5% salary increase, accompanied by higher number of employees. We've filled a number of vacant positions, which has had a partial impact also on the staff salary costs. Administrative and marketing expenses increased in the first quarter by 14% to EUR 1.5 million, driven also mainly by higher salaries and professional services costs. Finally, let's take a look at the cash flows.
As of 31st of March 2023, the company's cash balance stood at 12.9 million EUR, forming 5.1% of total assets. Compared to the end of last quarter, the cash balance has increased by 0.2 million EUR, mainly as a result of higher operating cash flows. The biggest contribution to the cash flows comes from main operations. During the three months of 2023, total operating cash flow amounted to 5.7 million EUR, which is 1.8 million EUR higher than in the comparative period of last year. The company's collection and receivables collection of receivables continues to be high, being 99.72% on average.
The net cash flows from investing activities during the three months of 2023 resulted in a cash outflow of EUR 5 million, which is EUR 2.3 million more than in the same period last year. Company's financing cash outflows during Q1 were at EUR 0.5 million, which is EUR 0.2 million more than in the same period of last year. I will conclude my overview with this. Thank you very much for your time. We will now take some time for your questions.
Thank you both for the presentation, and now we will proceed with the questions. You will have now a few minutes to submit your questions, and please feel free to type in any questions you might have. Thank you.