SABESP Files 6-K Report for Q1 2024

TL;DR

SABESP filed its Q1 2024 6-K, standard foreign issuer report.

AI Summary

Companhia de Saneamento Básico do Estado de São Paulo (SABESP) filed a Form 6-K on May 10, 2024, reporting for the period ending March 31, 2024. The filing is a report of a foreign issuer pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934. SABESP is the Basic Sanitation Company of the State of Sao Paulo, located in Brazil.

Why It Matters

This filing provides essential regulatory information for investors tracking SABESP's financial and operational status as a foreign issuer.

Risk Assessment

Risk Level: low — This is a routine regulatory filing for a foreign issuer and does not contain new material financial information or significant corporate events.

Key Players & Entities

• Companhia de Saneamento Básico do Estado de São Paulo (company) — Registrant
• SABESP (company) — Registrant Abbreviation
• 0001292814-24-001996 (filing_id) — Accession Number
• May 10, 2024 (date) — Filing Date
• March 31, 2024 (date) — Reporting Period End Date
• Rua Costa Carvalho, 300 (address) — Principal Executive Offices
• Sao Paulo, S.P., 05429-900 (address) — Principal Executive Offices Location
• Brazil (location) — Country of Incorporation

FAQ

Key Financial Figures

• $303.9 million — ies with an expected potential loss of R$303.9 million on December 31, 2022. The impact of th

Filing Documents

• sbs20240510_6k.htm (6-K) — 613KB
• sbs202405106k_001.jpg (GRAPHIC) — 2KB
• sbs202405106k_002.jpg (GRAPHIC) — 4KB
• sbs202405106k_003.jpg (GRAPHIC) — 134KB
• sbs202405106k_004.jpg (GRAPHIC) — 117KB
• 0001292814-24-001996.txt ( ) — 968KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For May, 2024 (Commission File No. 1-31317) Companhia de Saneamento Bsico do Estado de So Paulo - SABESP (Exact name of registrant as specified in its charter) Basic Sanitation Company of the State of Sao Paulo - SABESP (Translation of Registrant's name into English) Rua Costa Carvalho, 300 So Paulo, S.P., 05429-900 Federative Republic of Brazil (Address of Registrant's principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F ______ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)__. Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)__. Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ______ No ___X___ If "Yes" is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): EARNINGS RESULTS 1Q24 Videoconference May 10, Friday 10:00 a.m. (New York) / 11:00 a.m. (Brasília) Simultaneously translation Click here to access the replay ri.sabesp.com.br/en/ Earnings Results 1Q24 Page 3 Highlights Adjusted EBITDA totaled R$ 2,428.8 million in 1Q24, up by R$ 393.8 million (+19.4%) over the R$ 2,035.0 million reported in 1Q23. Consequently, the adjusted EBITDA margin reached 37.0% compared to 35.7% in 1Q23, and the adjusted EBITDA margin (excluding construction revenue) reached 46.5% compared to the 45.0% reported in 1Q23. Excluding the effects of the agreement with AAPS (Sabesp’s Association of Retirees and Pensioners), adjusted EBITDA was R$ 2,591.2 million in 1Q24, with an adjusted EBITDA margin of 39.5%. Net income came to R$ 823.3 million in 1Q24, up by R$ 76.1 million (+10.2%) over the R$ 747.2 million recorded in 1Q23. Excluding the agreement with AAPS, net income totaled R$ 985.7 million in 1Q24. Revenue from sanitation services Increase of R$ 751.8 million (+15.3%), impacted by (i) a 9.6% tariff adjustment implemented since May 2023; and (ii) a 5.3% increase in total billed volume. R$ million 1Q24 1Q23 Var. (R$) % Revenues from sanitation services 5,661.1 4,909.3 751.8 15.3 Billed volume (million m 3 ) 1,085.6 1,030.5 55.1 5.3 Average tarifs 5.2 4.8 0.5 9.5 Impacts from the exchange variation In April 2024, the Company executed derivative financial agreements with the financial institutions defined in the Financial Risk Policy to reduce the exposure of the total balance in foreign currency of existing debts, totaling US$ 531 million, against fluctuations in the foreign exchange market and mitigate the impacts of these fluctuations on the Company’s economic and financial results. The agreements are valid until December 2024. 1Q24 1Q23 Foreign currency debt - R$ million 2,631.1 2,634.0 Foreign currency debt as a percentage of total debt - % 12.0 14.0 U.S. dollar variation in the quarter - % 3.2 (2.6) Yen variation in the quarter - % (3.5) (3.3) The Company executed derivative financial agreements with selected financial institutions to reduce the exposure of the total balance in foreign currency of the outstanding debt, totaling US$ 531 million, against fluctuations in the foreign exchange market and mitigate the impacts of these fluctuations on the Company’s economic and financial results. The agreements are valid until December 2024 AAPS Agreement An agreement between SABESP and AAPS (Sabesp’s Association of Retirees and Pensioners) regarding financial compensation for the migration of retirees, former employees, pensioners, and dependents between health plans was approved in January 2024 to address the current and future deficits related to beneficiaries who joined the migration, in addition to the withdrawal by AAPS of the lawsuit seeking the merger of active and inactive asset masses into a single plan, which could have led to post-employment liabilities with an expected potential loss of R$303.9 million on December 31, 2022. The impact of this agreement generated a non-recurring expense of R$ 162.4 million, accounted for under general expenses in 1Q24. Payments will be made in 60 monthly installments starting in March 2024. Earnings Results 1Q24 Page 4 1. Result for the period (Consolidated) R$ million 1Q24 1Q23 Var. (R$) % Revenue from sanitation services 5,661.1 4,909.3 751.8 15.3 COFINS and PASEP/TRCF taxes (437.7) (390.4) (47.3) 12.1 (=) Revenue from sanitation services, net 5,223.4 4,5

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