SABESP(US:SBS)2019-11-18 18:53Financial Data and Key Metrics Changes - In Q3 2019, net income reached R$1.2 billion, a significant increase of 113.9% compared to R$565 million in Q3 2018, primarily driven by R$1.3 billion in extraordinary revenues from an agreement with the municipality of Sao Paulo [8][19] - Net operating revenues increased to R$5.4 billion from R$3.8 billion in Q3 2018, marking a 42% growth [9][19] - Adjusted EBITDA rose to R$3 billion, up 109% from R$1.4 billion in the same period last year, with an adjusted EBITDA margin of 55.6% compared to 37.6% in Q3 2018 [10][19] Business Line Data and Key Metrics Changes - Total billed volume increased by 2.8%, with water services growing by 2.4% and sewage services by 3.4% compared to Q3 2018. Including Guarulhos and Santo Andre, total billed volume growth was 3.8% [7] - The operation in Santo Andre contributed R$1.3 billion to operating revenues, while Guarulhos added R$160 million in operating revenue [11][12] Market Data and Key Metrics Changes - The company has made significant progress in expanding its services in Guarulhos and Santo Andre, with successful initiatives to eliminate water rationing in Guarulhos and improve water distribution in Santo Andre [4][5] Company Strategy and Development Direction - The company aims to enhance its consumer base and is focused on cleaning the Pinheiros River by 2022, which involves substantial investments in sewage collection and treatment [5] - Innovative contracting processes are being utilized to accelerate results in sewage treatment, which is crucial for the company's image and shareholder interests [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the results and highlighted the importance of the agreements with municipalities for future growth [4][8] - The company is aware of the macroeconomic conditions affecting interest and exchange rates and is considering actions to mitigate foreign exchange exposure [25] Other Important Information - The company reversed a provision of R$173 million related to employee retirements, positively impacting salaries and benefits [13] - A new healthcare plan was implemented, resulting in savings of R$39.1 million in healthcare expenses compared to Q3 2018 [16] Q&A Session Summary - There were no questions during the Q&A session, and the conference concluded with a note of appreciation from management for the participants' time [27][28]