Aegea Saneamento Posts Net Revenue Of R$690.2 Million In 2Q21
Growth of 27.7% comes with the signing of concession agreement for blocks 1 and 4 of CEDAE, an important step in consolidating the Company's leadership of Brazil's private sanitation sector
SÃO PAULO, Aug. 12, 2021 /PRNewswire/ -- Aegea Saneamento registered net revenue of R$690.2 million in the second quarter of 2021, up 27.7% from the same period last year. EBITDA was R$398.0 million, increasing 27.2% year on year. The Company's leverage remained stable at 2.87x. The positive result comes with the signing, on August 11, of the concession agreement for blocks 1 and 4 at the auction held by CEDAE, which will enable the Company to provide quality basic sanitation services to 9.8 million people in the city and state of Rio de Janeiro.
"We ended the second quarter of 2021 with excellent prospects and by consolidating the foundations that will sustain Aegea's growth. The financial and operational results and the total capitalization in the period, amounting to R$4.2 billion, combined with other diversified sources of funding, will help us to roll out our business plan. Our growth trajectory is the result of our capacity to adapt to different regions and challenges, which enables us to remain strong during this time of economic recovery," said André Pires, CFO of Aegea.
Total households served by Aegea reached 3.8 million in 2Q21, an increase of 29.3% from 2Q20. The number of households with water supply increased 6.1% to 2.0 million. The concessionaires Águas de Teresina, Águas de Manaus, Águas Guariroba and Prolagos accounted for 72.5% of this growth, while the balance is related to the expansion of the coverage network and the organic growth of other concessions. The number of households served by sewage collection and treatment services increased 67.8% to 1.9 million. The expansion of the customer base is mainly related to the operational startup of the concessionaires Ambiental MS Pantanal (MS), Ambiental Metrosul (RS) and Ambiental Cariacica (ES), which added 500,000 new households and accounted for 91.1% of the total expansion. The network expansion at Águas Guariroba, Ambiental Serra, Prolagos, Águas do Mirante, Águas de Manaus and Águas de Teresina, accounted for 7.0% of the growth.
Total billed volume was 132,634 thousand m³, up 23.1% from 2Q20. Water billed volume increased 7.0%, of which 77.9% resulted from the higher volume at Águas de Teresina, Águas de Manaus, Águas de Guariroba and Prolagos. Meanwhile, sewage billed volume increased 57.4%, mainly due to the operational startup of the concessionaires Ambiental Metrosul, Ambiental MS Pantanal and Ambiental Cariacica, which were responsible for 90.6% of the growth in total sewage billed volume, and the network expansions at Ambiental Serra, Ambiental Vila Velha and Águas de Teresina.
In 2Q21, Aegea's consolidated water loss rate reached 51.3%, down 3.1 percentage points from 2Q20, reflecting the Company's efforts to reduce physical and commercial losses in water distribution at its concessions, especially Águas de Teresina and Águas de Manaus.
Recent Highlights
Recent highlights include the conclusion of the new ownership structure and capital increases, with the entry of Itaúsa as a shareholder after acquiring 8.32% of the common shares held by Equipav for R$1,084.9 million, and the capital injections in Aegea amounting to R$3.6 billion through the issue of 2.59% of common shares: 2.09% subscribed to by Itaúsa for R$279.9 million and 0.50% subscribed to by GIC for R$66.0 million. Regarding the issue of class D preferred shares, 65.12% was subscribed to by GIC for R$2,090.2 million, 34.57% by Itaúsa for R$1,109.8 million and 0.31% by Equipav for R$10.0 million.
In the CEDAE concession agreement, the Company's partners were the Equipav Group, GIC and Itaúsa in the new concession Águas do Rio, responsible for the operation.
To finance the Aegea Business Plan, the company raised additional capital through a corporate restructuring process at the Águas Guariroba concession, concluded in July, with the subscription and payment of preferred shares in the amount of R$550.0 million, representing 32.08% of indirect interest in the capital stock. Aegea remains the controlling shareholder of Águas Guariroba, holding 100% of the common shares with voting rights.
In May, Aegea published the 10th edition of its Annual Sustainability Report according to the standards established by the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC) policies and the principles of the UN Global Compact, which the company signed in 2016. The report brings all the financial and operational results, as well as the premises on the Environmental, Social and Governance (ESG) issues, underscoring our commitment to transparency in our interactions with all stakeholders.
Fight against coronavirus
With the spread of the coronavirus, the Company kept its crisis committee functioning and continues to follow the safety measures and procedures established at the start of the pandemic. The measures taken proved effective in maintaining the services provided, which became even more essential to the population, and in ensuring the health and safety of employees, service providers and the public served by the concessionaires. "We continue to maintain all the required protocols and precautions while providing our services, which are essential to the public. As Health Ambassadors, we are committed to caring for people and to taking health and dignity to the different "Brazils" where our concessions are located, as part of our important contribution to achieving universal access to basic sanitation in Brazil, which is critical to our country's development," said Pires.
About Aegea
Aegea Saneamento is the leader in private sanitation, operating through its concessionaires in several Brazilian states. Aegea has grown significantly, from serving six cities in 2010 to 153 cities across 12 states in 2021 (including the new concessions in Rio de Janeiro), benefitting over 21 million people. This growth was only possible thanks to Aegea's business model, which is based on operating efficiency, achievement of targets, responsible investments and compliance with ESG principles. For more information, visit http://www.aegea.com.br/
SOURCE Aegea Saneamento
Share this article