Q3 2024 Basic Sanitation Company of the State of Sao Paulo SABESP Earnings Call (English, Portuguese) Transcript
Key Points
- Companhia De Saneamento Basico Do Estado De Sao Paulo (SBS) reported a significant increase in net revenue of around 7%, translating into a 17% increase in EBITDA.
- The company generated operational cash of BRL1.6 billion, which was almost entirely reinvested in the asset base.
- A 6.4% tariff readjustment in 2024 resulted in a net positive effect of close to 5% on revenue.
- The new concession contract extended the useful life of assets, contributing positively to financial results.
- SBS completed BRL1.4 billion in investments this quarter, with plans to accelerate CapEx execution significantly in the coming months.
- The transition from a state-owned to a private company required several management adjustments, incurring additional costs.
- The company faced a net cost increase of around 9%, primarily due to a 12% rise in consumption for reservoir management.
- The inclusion of the Cad Unico in the vulnerable tariff category generated a negative effect of almost BRL30 billion.
- There are challenges in adapting to the new concession contract, which imposes various obligations and quality indicators.
- The company is undergoing a transition period, which has caused delays in some projects and legal proceedings.
(spoken in Portuguese)
(spoken in Portuguese) -- right after the approval of the antitrust in 2013. I spent 10 years across three different regions, mostly as a CFO. And a little less than one year ago, I left to ComBio, the largest thermal energy company in the country, where I had heavily involved in business focused on improving sustainability for our country and making a positive impact for our population.
Just recently, with the privatization process nearing completion, I received this invitation to join this very special project, which is SABESP. Since October 1, I have been here, and I'm ever more confident on our team's stability to bring universal sanitation to our concession area.
Today, we're going to talk about the Q3 results in a brief manner because this is a result of the previous
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