SABESP Files 6-K Report for Q3 2024

TL;DR

SABESP dropped its Q3 2024 update on 11/18 - check financials!

AI Summary

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SABESP) filed a Form 6-K on November 18, 2024, reporting its financial information as of September 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 crucial financial updates for investors and analysts tracking SABESP, a major Brazilian water and sanitation company, allowing them to assess its performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine financial filing (6-K) and does not contain new material events or significant changes.

Key Players & Entities

• Companhia de Saneamento Básico do Estado de São Paulo - SABESP (company) — Registrant
• SABESP (company) — Registrant Abbreviation
• 20241118 (date) — Filing Date
• 20240930 (date) — Reporting Period End Date
• Rua Costa Carvalho, 300 (address) — Principal Executive Offices
• 001-31317 (filing_id) — SEC File Number

FAQ

Filing Documents

• sbspr3q24_6k.htm (6-K) — 704KB
• sbspr3q246k_001.jpg (GRAPHIC) — 66KB
• sbspr3q246k_002.jpg (GRAPHIC) — 108KB
• sbspr3q246k_003.jpg (GRAPHIC) — 4KB
• sbspr3q246k_004.jpg (GRAPHIC) — 86KB
• 0001292814-24-004254.txt ( ) — 1069KB

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 November, 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 3Q24 Page 3 Highlights Adjusted EBITDA totaled R$ 10,586 million in 3Q24 (disregards construction margin), up by R$ 8,200 million (+343.6%) over the R$ 2,387 million reported in 3Q23. Consequently, the adjusted EBITDA margin reached 78.6% compared to 46.6% in 3Q23. Excluding the non-recurring effects and the construction margin, as described below, adjusted EBITDA totaled R$ 2,785 million in 3Q24, with an adjusted EBITDA margin of 60.0%. Net income came to R$ 6,111 million in 3Q24, up by R$ 5,266 million (+622.2%) over the R$ 846 million recorded in 3Q23. Excluding the non-recurring effects and the construction margin, net income totaled R$ 1,173 million in 3Q24 Financial Asset (indemnity) With the completion of the privatization process and the signing of the agreement with URAE-1, on July 23, 2024, the Company began to use the bifurcation model for assets related to the concession, previously classified solely as intangible assets. This model consists of segregating assets that will be realized through tariffs (intangible assets) and those that will be compensated (financial asset). The financial asset refers to reversible investments not fully amortized by the end of the agreement (October 2060), which will be compensated according to the contractual provision. The recording of this financial asset generated an impact of R$ 8,820 million on the period’s gross revenue. For further information, refer to Note 15 of the Quarterly Information for September 2024. Transition The new management decided to review the expected continuity of assets under construction (a loss of R$ 194 million). Furthermore, it reassessed the calculations of certain lawsuits (a provision of R$ 309 million recorded under General Expenses and Financial Expenses). In addition, the new management incurred expenses with transition consulting services as well as costs related to the privatization offering, totaling R$ 47 million, which are not expected to recur. Earnings Results 3Q24 Page 4 1. Result for the period (Consolidated) R$ million 3Q24 3Q23 Var. (R$) % 9M24 9M23 Var. (R$) % Revenue from sanitation services 6,072 5,539 533 9.6 17,666 15,641 2,025 12.9 Water/Sewage Contra Account (FAUSP) (157) - (157) - (157) - (157) - Financial Asset (indemnity) 8,820 - 8,820 - 8,820 - 8,820 - Taxes (PIS/COFINS/TRCF) (1,269) (419) (851) 203.0 (2,164) (1,110) (1,054) 94.9 (=) Net revenue from sanitation services 13,466 5,120 8,345 163.0 24,165 14,531 9,634 66.3 Construction revenue 1,531 1,333 199 14.9 4,142 3,776 366 9.7 (=) Net operating income 14,997 6,453 8,544 132.4 28,307 18,306 10,000 54.6 Construction costs (1,497) (1,303) (194) 14.9 (4,049) (3,691) (358) 9.7 Costs and expenses (3,481) (3,454) (27) 0.8 (10,391) (10,537) 147 (1.4) Other operating income (expenses), net (170) 6 (176) (2,928.3) (156) 71 (227) (319.1) Equity pickup 9 7 2 31.3 26 23 2 10.4 (=) Earnings before financial result, income tax, and social contribution 9,858 1,709 8,150 477.0 13,737 4,172 9,565 229.3 Financial result (525) (431) (94) 21.7 (1,325) (705) (620) 88.0 (=) Earnings before income tax and social contribution 9,333 1,278 8,056 630.6 12,412 3,467 8,945 258.0 Income tax and social contribution (3,222) (431) (2,791) 647.0 (4,268) (1,130) (3,137) 277.6 (=) Net income 6,111 847 5,266 622.2 8,145 2,337 5,807 248.5 Earnings per share (R$)* 8.94 1.24 11.92 3.42 * Number of shares = 683,509

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View this 6-K filing on SEC EDGAR