Q2 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) achieved a record-high EBITDA margin of over 50% in the first half of 2024, reflecting significant operational efficiency improvements.
- The company successfully maintained government guarantees on its debts post-privatization, a unique achievement in privatization processes.
- SBS has implemented a robust investment plan, with BRL27 billion in projects contracted for 2025-2029, focusing on water and sewage infrastructure improvements.
- The company has made significant strides in customer service, establishing a dedicated customer office and implementing innovative credit recovery strategies.
- SBS has reduced its operational costs, including a 6.7% nominal decrease in OpEx per cubic meter, contributing to improved financial performance.
- The company faces challenges related to regulatory adjustments and potential revenue impacts from reforms and cancellations.
- There is uncertainty regarding the integration and future strategy with the new shareholder, Equatorial, pending regulatory approvals.
- SBS's financial results were negatively impacted by foreign exchange variations, despite hedging strategies.
- The company anticipates potential volatility in bad debt reduction efforts due to changes in processes and contract models.
- There are ongoing challenges in achieving universalization goals, particularly in informal households and areas with high water loss.
(video playing)
Very well. I hope you can hear me. Welcome to Subex Q2 earnings call. My name is Luiz Roberto Tiberio. I'm Investor Relations Superintendent, and we have here with us today, Andre Salcedo, the CEO of the company; Catia Pereira, CFO and IR Director; Caio Melo, Customer Director; and Marcelo Miyagi, Accounting Superintendent.
Before I turn it over to Andre Salcedo, I'd like to share some information and orientation with you. This call has simultaneous translation into English and is being recorded. The presentation and the video will be available for download at sabesp.ri web portal where you can also download the press release. We will take questions only in writing. You can use the Q&A feature of the platform. This is going to be a 90-minute webcast and there's going to be time for questions and answers at the end.
It is important to note that -- wanted to highlight that forward-looking statements that might be shared here, projections and financial operating goals are
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