The result represents growth of 15.60% on the same period last year
São Paulo, August 15 – Aegea Saneamento reported net income of R$120.52 million in the first six months of 2019, representing growth of 15.60% on the same period last year. Net operating revenue was R$1.04 billion in the period, 41% higher than in the second half of 2018.
“The result confirms that we are following the right path by prioritizing investments in operational improvements, which has enabled us to cut costs and capture efficiency gains, while improving the indicators of our service quality,” said Flávio Crivellari, CFO of Aegea.
Crivellari also highlighted the growth in EBITDA (earnings before interest, tax, depreciation and amortization), which in the last 12 months reached R$1.02 billion. In the first half of the year, EBITDA was R$559.05 million, representing growth of 61.77%. “These are record highs that further reinforce the company’s financial solidity,” he said. EBITDA margin in the first six months stood at 53.80%, expanding 7 p.p. from the same period of 2018, corroborating the operating efficiency gains.
The consolidation of the results from the concessionaire Águas de Manaus, which Aegea acquired in June 2018, was the main factor responsible for EBITDA growth on the prior year. The acquisition, which today already accounts for 23.10% of Aegea’s consolidated revenue, also helped to diversify the Company’s revenue sources.
In the 12 months to the second quarter of 2019, Aegea invested R$644.20 million, with the highlights the consolidation of the operations of Águas de Teresina and Águas de Manaus, its latest acquisitions. The focus on improving and expanding water supply in these cities, which effectively reversed a scenario of water shortages and service interruptions, has made it possible to grow the number of households served by sanitation services.
Another highlight in the period regarding the relationship with users and with the community where Aegea operates was the expansion in the Social Tariff program, which subsidizes water and sewage bills for underprivileged populations. The benefit varies in accordance with the local laws of each municipality. For example, in Timon, Maranhão, which is served by Aegea, 8.02% of the population receives subsidies under this special regime, and in Barcarena, Pará, 2.99% of the population receives the benefit every month.
This also has been a priority for the concession in Manaus, Amazonas, where Aegea, since it assumed the local concession, has expanded by over 71.56% the number of families covered by the program. Today, over 5,200 households in Manaus are benefitted by the Social Tariff, a figure that should increase given the series of community actions that the concessionaire has been carrying out in certain districts of the city.