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

Executive summary

• Net revenue increased 6.5% year-over-year in Q3 2024 and 10.4% for the nine-month period, driven by tariff adjustments and higher water and sewage volumes.

• EBITDA decreased 2.5% year-over-year to BRL 758.5 million in Q3 2024, with margin dropping to 44.4%.

• Net profit declined 4.9% in Q3 2024 and 0.5% for the nine-month period, impacted by a 15.1% increase in operating costs and expenses.

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

• Recognized with the ANEFAC Transparency Award and Southern Region's Innovation Champions Award.

Financial highlights

• Q3 2024 net revenue was BRL 1,709.7 million (+6.5% YoY); 9M24: BRL 5,072.0 million (+10.4% YoY).

• Q3 2024 EBITDA was BRL 758.4 million (margin 44.4%, -2.5% YoY); 9M24 EBITDA: BRL 2,176.7 million (+3.4% YoY).

• Q3 2024 net profit was BRL 377.5 million (22.1% margin, -4.9% YoY); 9M24: BRL 1,132.5 million (-0.5% YoY).

• Operating costs and expenses increased 15.1% in 9M24, mainly due to higher personnel and third-party services.

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

Outlook and guidance

• Tariff adjustment of 2.9577% approved for 2024, effective from May 17, 2024; periodic tariff review scheduled for completion by 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.

• Forward-looking statements highlight dependence on market conditions, regulatory changes, and access to capital.