SABESP Files 6-K for Q2 2024 Financials

TL;DR

SABESP dropped its Q2 2024 financials on 9/30.

AI Summary

Companhia de Saneamento Básico do Estado de São Paulo (SABESP) filed a Form 6-K on September 30, 2024, reporting its financial information as of June 30, 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 financial updates for SABESP, a major Brazilian water and sanitation company, allowing investors to assess its performance and financial health.

Risk Assessment

Risk Level: low — This filing is a routine financial disclosure for a foreign issuer and does not contain significant new risks.

Key Players & Entities

• Companhia de Saneamento Básico do Estado de São Paulo-SABESP (company) — Filer
• SABESP (company) — Registrant
• 0001292814-24-003602 (accession_number) — Filing identifier
• 20240630 (date) — Reporting period end date
• 20240930 (date) — Filing date

FAQ

Key Financial Figures

• $145.8 million — CE FOR DOUBTFUL ACCOUNTS Decrease of R$145.8 million or 67.1%, from R$217.4 million in 2Q23
• $217.4 million — ease of R$145.8 million or 67.1%, from R$217.4 million in 2Q23 to R$71.6 million in 2Q24, as a
• $71.6 million — 67.1%, from R$217.4 million in 2Q23 to R$71.6 million in 2Q24, as a result of another Feir&at
• $76.5 million — ght a non-recurring positive impact of R$76.5 million. The % PECLD/Sanitation Revenue closed
• $2,717.0 m — ation to 1H24, the investment made was R$2,717.0 million, of which R$1,217.6 million in wa
• $1,217.6 million — t made was R$2,717.0 million, of which R$1,217.6 million in water and R$1,499.4 million in sewag
• $1,499.4 million — f which R$1,217.6 million in water and R$1,499.4 million in sewage. The accumulated cash disburs
• $1,738.8 million — , including from previous periods, was R$1,738.8 million. 13. Public-Private Partnership - PPP

Filing Documents

• sbspr2q24_6k.htm (6-K) — 559KB
• image_001.jpg (GRAPHIC) — 58KB
• image_002.jpg (GRAPHIC) — 99KB
• image_003.jpg (GRAPHIC) — 4KB
• image_004.jpg (GRAPHIC) — 3KB
• image_005.jpg (GRAPHIC) — 75KB
• 0001292814-24-003602.txt ( ) — 890KB

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 August, 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): Page 1 Page 2 Earnings Results 2Q24 Page 3 Highlights Adjusted EBITDA (*) totaled R$ 2,970.5 million in 2Q24, up by R$ 778.1 million (+35.5%) over the R$ 2,192.4 million reported in 2Q23. Consequently, the adjusted EBITDA margin reached 54.2% compared to 44.8%. Net income came to R$ 1,209.4 million in 2Q24, up by R$ 465.7 million (+62.6%) over the R$ 743.7 million recorded in 2Q23. Revenue from sanitation services Increase of R$ 740.6 million (+14.3%) over 2Q23, impacted by (i) a 9.6% tariff adjustment since May 2023; (ii) a 6.4% tariff adjustment since May 2024; and (iii) a 3.2% increase in total billed volume. R$ million 2Q24 2Q23 Var. (R$) % Revenues from sanitation services 5,932.9 5,192.3 740.6 14.3 Billed volume (million m 3 ) 1,080.3 1,047.2 33.1 3.2 Average tarifs (R$/m³) 5.5 5.0 0.5 10.8 Impacts from the exchange variation In 2Q24, the exchange variation was negative, due to the appreciation of the U.S. dollar and Yen in the period, compared to a positive variation reported in 2Q23, as a result of the depreciation, as shown below. 2Q24 2Q23 Foreign currency debt - R$ million 2,899.4 2,475.7 Foreign currency debt as a percentage of total debt - % 13.3 13.2 U.S. dollar variation in the quarter - % 11.2 (5.1) Yen variation in the quarter - % 4.7 (12.8) The Company contracted derivative financial instruments (hedge) with Bank of America Merrill Lynch, Múltiplo S.A., CitiBank S.A., Itaú Unibanco Holding S.A., J.P. Morgan, and Banco Santander (Brazil) S.A., according to the Financial Risk Policy, used from April 10, 2024 to April 16, 2024, to mitigate the exchange risk, with a corresponding average cost of approximately DI+0.13% p.a. As of June 30, 2024, 12 swap transactions were in effect, with a notional value of US$ 272,009 thousand and ¥ 38,932,983 thousand to hedge the interest rate and exchange variation. The agreements are valid until December 2024. Financial expenses related to foreign currency agreements, excluding the effects of the hedge operation, totaled R$ 246.9 million in 2Q24. Given that the hedge operations were contracted in April 2024, there was a period during which the risk of exchange rate variation was not protected, impacting R$ 104.0 million of this total. Hedge gains came to R$ 91.6 million in the period; therefore, total financial expenses, net of the hedge operation, totaled R$ 155.3 million. (*) excluding the IDP/AAPS/Construction Margin Earnings Results 2Q24 Page 4 1. Result for the period (Consolidated) R$ million 2Q24 2Q23 Var. (R$) % 1H24 1H23 Var. (R$) % Revenue from sanitation services 5,932.9 5,192.3 740.6 14.3 11,594.0 10,101.6 1,492.4 14.8 COFINS and PASEP/TRCF taxes (457.3) (301.0) (156.3) 51.9 (894.9) (691.4) (203.5) 29.4 (=) Revenue from sanitation services, net 5,475.6 4,891.3 584.3 11.9 10,699.1 9,410.2 1,288.9 13.7 Construction revenue 1,273.8 1,263.2 10.6 0.8 2,610.6 2,442.8 167.8 6.9 (=) Net operating income 6,749.4 6,154.5 594.9 9.7 13,309.7 11,853.0 1,456.7 12.3 Construction costs (1,245.2) (1,234.8) (10.4) 0.8 (2,551.9) (2,387.8) (164.1) 6.9 Costs and expenses (3,302.4) (3,909.4) 607.0 (15.5) (6,909.8) (7,083.2) 173.4 (2.4) Other operating income (expenses), net 6.8 50.5 (43.7) (86.5) 13.9 65.1 (51.2) (78.6) Equity results 7.9 10.0 (2.1) (21.0) 16.7 16.4 0.3 1.8 (=) Earnings before financial result, income tax, and social contribution 2,216.5 1,070.8 1,145.7 107.0 3,878.6 2,463.5 1,415.1 57.4 Fin

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