Companhia de Saneamento do Paraná - SANEPAR (SAPR4) Q3 2024 earnings summary

Executive summary

• Net revenue for 3Q24 rose 6.5% year-over-year to BRL 1,709.7 million, driven by tariff adjustments, higher billed volumes, and increased connections.

• Net profit declined 4.9% in 3Q24 year-over-year, mainly due to a 15.1% increase in operating costs and expenses.

• EBITDA decreased 2.5% in 3Q24 year-over-year to BRL 758.5 million, with margin dropping to 44.4%.

• Service coverage reached 100% for water and 80.8% for sewage, with 25,000 new water and 36,500 new sewage connections.

• Recognized for transparency and innovation with ANEFAC and Amanhã magazine awards.

Financial highlights

• Net revenue for 9M24 increased 10.4% year-over-year to BRL 5,072.0 million.

• Net profit for 9M24 was BRL 1,132.5 million, nearly stable versus 9M23.

• EBITDA for 9M24 was BRL 2,176.7 million, up 3.4% year-over-year.

• Operating costs and expenses increased 16.2% in the nine-month period compared to 2023.

• Cash flow from operations grew 19.1% in the nine-month period, with a strong EBITDA-to-cash conversion rate of 94.7%.

Outlook and guidance

• Tariff adjustment of 2.96% approved for 2024, with a 3rd Periodic Tariff Review scheduled for completion in May 2025.

• Legal and labor provisions are expected to normalize as major lawsuits conclude by the end of 2024 and into 2025.

• Ongoing strategic planning may adjust dividend payment periodicity, depending on financial conditions.

• The company continues to focus on universalization and quality of services, supporting investment programs to meet regulatory targets.

• Forward-looking statements highlight dependence on market conditions, regulatory changes, and economic performance.