SABESP(US:SBS)2021-08-18 14:39Financial Data and Key Metrics Changes - The company reported a net income of BRL 773 million for Q2 2021, a significant increase of 104% compared to BRL 378 million in Q2 2020, primarily driven by favorable financial results due to currency appreciation [33][38] - Adjusted EBITDA decreased by BRL 128 million to BRL 1.5 billion, but excluding nonrecurring effects from Q2 2020, it showed an increase of BRL 66 million [25][32] - Total billed volume increased by 1.6% year-over-year, with water volume up 0.7% and sewage volume up 2.7% [28] Business Line Data and Key Metrics Changes - Revenue from sanitation services grew by 6% from BRL 3.7 billion in Q2 2020 to BRL 3.9 billion in Q2 2021, mainly due to tariff adjustments [30] - Net revenue increased from BRL 4.4 billion to BRL 4.6 billion, reflecting growth in service revenues [31] - Construction revenue remained stable compared to the previous year [31] Market Data and Key Metrics Changes - The average tariff increased by 3% compared to Q2 2020, and if excluding nonrecurring effects, the increase was 9.2% [26] - The company managed to reduce foreign currency exposure from 34% to 19% due to local debt issuance and currency appreciation [27] Company Strategy and Development Direction - The company has created a superintendency for new business and market expansion, focusing on opportunities under the new regulatory framework established by Law 14,026 of 2019 [12] - The company is optimistic about its ability to connect more residences to its sewage collection and treatment system, with significant progress reported in the Pinheiros River project [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite external challenges such as the pandemic and climatic issues, stating that the infrastructure built in recent years has positioned the company well [18][51] - The management highlighted the importance of the new regulatory framework and the company's readiness to comply with the new requirements [41] Other Important Information - The company issued BRL 1.2 billion in debentures to refinance maturing debt, indicating proactive financial management [43] - A state law was promulgated to rationalize sanitation areas, which aligns with the company's operational regions [14] Q&A Session Summary Question: Were there any questions from participants? - There were no questions from participants during the Q&A session, indicating a clear presentation of the company's results and outlook [46][48]