PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
registrant in connection with Rule 12g3-2(b):
 |
CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations
|
SABESP announces 2Q15 results São Paulo, August 13, 2015 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its results for the second quarter of 2015 (2Q15). The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2014. |
SBSP3: R$ 15.47/share
|
R$ million
|
|
1. Financial highlights
|
R$ million | ||||||||
|
|
2Q15 |
2Q14 |
Chg. (R$) |
% |
1H15 |
1H14 |
Chg. (R$) |
% |
|
(+) Gross operating revenue |
2,047.2 |
2,224.0 |
(176.8) |
(7.9) |
4,051.7 |
4,668.4 |
(616.7) |
(13.2) |
|
(+) Construction revenue |
904.8 |
678.7 |
226.1 |
33.3 |
1,493.2 |
1,210.0 |
283.2 |
23.4 |
|
(-) COFINS and PASEP taxes |
129.1 |
148.6 |
(19.5) |
(13.1) |
253.4 |
332.3 |
(78.9) |
(23.7) |
|
(=) Net operating revenue |
2,822.9 |
2,754.1 |
68.8 |
2.5 |
5,291.5 |
5,546.1 |
(254.6) |
(4.6) |
|
(-) Costs and expenses |
1,465.1 |
1,650.8 |
(185.7) |
(11.2) |
2,254.3 |
3,166.4 |
(912.1) |
(28.8) |
|
(-) Construction costs |
885.2 |
664.2 |
221.0 |
33.3 |
1,461.6 |
1,184.7 |
276.9 |
23.4 |
|
(+) Equity result |
(0.1) |
- |
(0.1) |
- |
1.0 |
(0.3) |
1.3 |
(433.3) |
|
(+) Other operating revenue/expenses, net |
11.7 |
5.2 |
6.5 |
125.0 |
43.8 |
(37.8) |
81.6 |
(215.9) |
|
(=) Earnings before financial result, income tax and social contribution |
484.2 |
444.3 |
39.9 |
9.0 |
1,620.4 |
1,156.9 |
463.5 |
40.1 |
|
(+) Financial result |
155.4 |
(21.6) |
177.0 |
(819.4) |
(830.3) |
5.9 |
(836.2) |
n.m. |
|
(=) Earnings before income tax and social contribution |
639.6 |
422.7 |
216.9 |
51.3 |
790.1 |
1,162.8 |
(372.7) |
(32.1) |
|
(-) Income tax and social contribution |
302.3 |
120.3 |
182.0 |
151.3 |
134.6 |
382.8 |
(248.2) |
(64.8) |
|
Net Income |
337.3 |
302.4 |
34.9 |
11.5 |
655.5 |
780.0 |
(124.5) |
(16.0) |
|
Earnings per share* (R$) |
0.49 |
0.44 |
|
|
0.96 |
1.14 |
|
|
|
* Total shares = 683,509,869 |
Adjusted EBITDA Reconciliation (Non-accounting measures)
|
R$ million | ||||||||
|
|
2Q15 |
2Q14 |
Chg. (R$) |
% |
1H15 |
1H14 |
Chg. (R$) |
% |
|
Net income |
337.3 |
302.4 |
34.9 |
11.5 |
655.5 |
780.0 |
(124.5) |
(16.0) |
|
(-) Income tax and social contribution |
302.3 |
120.3 |
182.0 |
151.3 |
134.6 |
382.8 |
(248.2) |
(64.8) |
|
(+) Financial result |
(155.4) |
21.6 |
(177.0) |
(819.4) |
830.3 |
(5.9) |
836.2 |
n.m. |
|
(+) Other operating revenues/expenses, net |
(11.7) |
(5.2) |
(6.5) |
125.0 |
(43.8) |
37.8 |
(81.6) |
(215.9) |
|
(=) Adjusted EBIT* |
472.5 |
439.1 |
33.4 |
7.6 |
1,576.6 |
1,194.7 |
381.9 |
32.0 |
|
(+) Depreciation and amortization |
284.1 |
222.6 |
61.5 |
27.6 |
537.4 |
482.9 |
54.5 |
11.3 |
|
(=) Adjusted EBITDA ** |
756.6 |
661.7 |
94.9 |
14.3 |
2,114.0 |
1,677.6 |
436.4 |
26.0 |
|
(%) Adjusted EBITDA margin |
26.8 |
24.0 |
|
|
40.0 |
30.2 |
|
|
(*) Adjusted EBIT is net income before: (i) other operating revenues/expenses; (ii) financial result; and (iii) income tax and social contribution.
(**) Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues/expenses, net.
In 2Q15, net operating revenue, including construction revenue, reached R$ 2.8 billion; a 2.5% increase compared to 2Q14.
Costs and expenses, including construction costs, totaled R$ 2.4 billion, up by 1.5% compared to R$ 2.3 billion recorded in 2Q14.
Adjusted EBIT, in the amount of R$ 472.5 million, grew 7.6% from R$ 439.1 million recorded in the same quarter of the previous year.
Adjusted EBITDA, in the amount of R$ 756.6 million, increased 14.3% from R$ 661.7 million recorded in 2Q14 (R$ 3,355.1 million in the last 12 months).
The adjusted EBITDA margin was 26.8% in 2Q15, versus 24.0% in 2Q14 (30.6% in the last 12 months). Excluding construction revenues and construction costs, the adjusted EBITDA margin was 38.4% in 2Q15 (31.2% in 2Q14 and 42.4% in the last 12 months).
Net income totaled R$ 337.3 million, 11.5% higher than R$ 302.4 million recorded in 2Q14.
2. Gross operating revenue
Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 2.0 billion, a drop of R$ 176.8 million or 7.9%, when compared to the R$ 2.2 billion recorded in 2Q14.
The main factors that led to this variation were:
· Bonus granted within the Water Consumption Reduction Incentive Program, with a R$ 231.0 million impact in 2Q15, versus the R$ 88.1 million granted in 2Q14, leading to a decrease of 6.4% in gross operating revenue;
· Decrease of 7.5% in the Company’s total billed volume (8.3% in water and 6.3% in sewage); and
· Decrease in the average billed price, due to the migration of clients to lower volume of consumption ranges.
The decline in gross operating revenue was mitigated by the application of contingency tariff, in the amount of R$ 123.0 million, and by the application of the following adjustments:
Page 2 of 11
|
|
· 6.5% repositioning tariff index since December 2014; and
· 15.2% tariff increase (7.8% ordinary tariff adjustment and 6.9% Extraordinary Tariff Revision) since June 2015, with a 1.5% impact in the quarter.
3. Construction revenue
Construction revenue increased R$ 226.1 million or 33.3%, when compared to 2Q14. The variation was mainly due to higher investments in 2Q15.
4. Billed volume
The following tables show the water and sewage billed volume, quarter-on-quarter and semester-on-semester, per customer category and region.
|
WATER AND SEWAGE BILLED VOLUME (1) PER CUSTOMER CATEGORY - million m3 | |||||||||
|
|
|
Water |
|
|
Sewage |
|
Water + Sewage |
| |
|
Category |
2Q15 |
2Q14 |
% |
2Q15 |
2Q14 |
% |
2Q15 |
2Q14 |
% |
|
Residential |
358.0 |
382.0 |
(6.3) |
301.3 |
319.2 |
(5.6) |
659.3 |
701.2 |
(6.0) |
|
Commercial |
39.4 |
42.7 |
(7.7) |
37.5 |
40.3 |
(6.9) |
76.9 |
83.0 |
(7.3) |
|
Industrial |
8.0 |
9.9 |
(19.2) |
9.7 |
10.9 |
(11.0) |
17.7 |
20.8 |
(14.9) |
|
Public |
10.7 |
13.3 |
(19.5) |
8.4 |
10.3 |
(18.4) |
19.1 |
23.6 |
(19.1) |
|
Total retail |
416.1 |
447.9 |
(7.1) |
356.9 |
380.7 |
(6.3) |
773.0 |
828.6 |
(6.7) |
|
Wholesale |
52.4 |
63.1 |
(17.0) |
5.9 |
6.6 |
(10.6) |
58.3 |
69.7 |
(16.4) |
|
Total |
468.5 |
511.0 |
(8.3) |
362.8 |
387.3 |
(6.3) |
831.3 |
898.3 |
(7.5) |
|
|
1H15 |
1H14 |
% |
1H15 |
1H14 |
% |
1H15 |
1H14 |
% |
|
Residential |
727.0 |
792.6 |
(8.3) |
609.9 |
659.5 |
(7.5) |
1,336.9 |
1,452.1 |
(7.9) |
|
Commercial |
79.9 |
87.7 |
(8.9) |
75.6 |
82.3 |
(8.1) |
155.5 |
170.0 |
(8.5) |
|
Industrial |
16.5 |
20.1 |
(17.9) |
19.6 |
22.0 |
(10.9) |
36.1 |
42.1 |
(14.3) |
|
Public |
21.2 |
27.1 |
(21.8) |
16.5 |
20.9 |
(21.1) |
37.7 |
48.0 |
(21.5) |
|
Total retail |
844.6 |
927.5 |
(8.9) |
721.6 |
784.7 |
(8.0) |
1,566.2 |
1,712.2 |
(8.5) |
|
Wholesale |
105.7 |
138.5 |
(23.7) |
12.4 |
13.1 |
(5.3) |
118.1 |
151.6 |
(22.1) |
|
Total |
950.3 |
1,066.0 |
(10.9) |
734.0 |
797.8 |
(8.0) |
1,684.3 |
1,863.8 |
(9.6) |
|
WATER AND SEWAGE BILLED VOLUME (1) PER REGION - million m3 | |||||||||
|
|
Water |
|
|
Sewage |
|
|
Water + Sewage |
| |
|
Region |
2Q15 |
2Q14 |
% |
2Q15 |
2Q14 |
% |
2Q15 |
2Q14 |
% |
|
Metropolitan |
267.1 |
292.8 |
(8.8) |
231.7 |
251.2 |
(7.8) |
498.8 |
544.0 |
(8.3) |
|
Regional (2) |
149.0 |
155.1 |
(3.9) |
125.2 |
129.5 |
(3.3) |
274.2 |
284.6 |
(3.7) |
|
Total retail |
416.1 |
447.9 |
(7.1) |
356.9 |
380.7 |
(6.3) |
773.0 |
828.6 |
(6.7) |
|
Wholesale |
52.4 |
63.1 |
(17.0) |
5.9 |
6.6 |
(10.6) |
58.3 |
69.7 |
(16.4) |
|
Total |
468.5 |
511.0 |
(8.3) |
362.8 |
387.3 |
(6.3) |
831.3 |
898.3 |
(7.5) |
|
|
1H15 |
1H14 |
% |
1H15 |
1H14 |
% |
1H15 |
1H14 |
% |
|
Metropolitan |
535.0 |
601.9 |
(11.1) |
462.6 |
514.1 |
(10.0) |
997.6 |
1,116.0 |
(10.6) |
|
Regional (2) |
309.6 |
325.6 |
(4.9) |
259.0 |
270.6 |
(4.3) |
568.6 |
596.2 |
(4.6) |
|
Total retail |
844.6 |
927.5 |
(8.9) |
721.6 |
784.7 |
(8.0) |
1,566.2 |
1,712.2 |
(8.5) |
|
Wholesale |
105.7 |
138.5 |
(23.7) |
12.4 |
13.1 |
(5.3) |
118.1 |
151.6 |
(22.1) |
|
Total |
950.3 |
1,066.0 |
(10.9) |
734.0 |
797.8 |
(8.0) |
1,684.3 |
1,863.8 |
(9.6) |
(1) Unaudited
(2) Including coastal and interior region
Page 3 of 11
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|
5. Costs, administrative and selling expenses
In 2Q15, costs, administrative and selling expenses, grew 1.5% (R$ 35.3 million). Excluding construction costs, total costs and expenses dropped 11.2%. As a percentage of net revenue, cost and expenses were 84.1% in 2Q14 and 83.3% in 2Q15.
|
R$ million | ||||||||
|
|
2Q15 |
2Q14 |
Chg. (R$) |
% |
1H15 |
1H14 |
Chg. (R$) |
% |
|
Payroll and benefits |
528.8 |
551.4 |
(22.6) |
(4.1) |
1,063.4 |
1,048.1 |
15.3 |
1.5 |
|
Supplies |
43.1 |
46.9 |
(3.8) |
(8.1) |
91.7 |
94.1 |
(2.4) |
(2.6) |
|
Treatment supplies |
63.6 |
64.6 |
(1.0) |
(1.5) |
135.9 |
134.3 |
1.6 |
1.2 |
|
Services |
270.0 |
351.6 |
(81.6) |
(23.2) |
566.0 |
666.2 |
(100.2) |
(15.0) |
|
Electric power |
208.3 |
144.5 |
63.8 |
44.2 |
367.4 |
284.5 |
82.9 |
29.1 |
|
General expenses |
48.7 |
190.0 |
(141.3) |
(74.4) |
103.1 |
342.7 |
(239.6) |
(69.9) |
|
Tax expenses |
18.3 |
17.6 |
0.7 |
4.0 |
38.2 |
37.3 |
0.9 |
2.4 |
|
São Paulo state government reimbursement |
- |
- |
- |
- |
(696.3) |
- |
(696.3) |
- |
|
Sub-total |
1,180.8 |
1,366.6 |
(185.8) |
(13.6) |
1,669.4 |
2,607.2 |
(937.8) |
(36.0) |
|
Depreciation and amortization |
284.1 |
222.6 |
61.5 |
27.6 |
537.4 |
482.9 |
54.5 |
11.3 |
|
Credit write-offs |
0.2 |
61.6 |
(61.4) |
(99.7) |
47.5 |
76.3 |
(28.8) |
(37.7) |
|
Sub-total |
284.3 |
284.2 |
0.1 |
0.0 |
584.9 |
559.2 |
25.7 |
4.6 |
|
Costs and expenses |
1,465.1 |
1,650.8 |
(185.7) |
(11.2) |
2,254.3 |
3,166.4 |
(912.1) |
(28.8) |
|
Construction costs |
885.2 |
664.2 |
221.0 |
33.3 |
1,461.6 |
1,184.7 |
276.9 |
23.4 |
|
Costs, adm., selling and construction expenses |
2,350.3 |
2,315.0 |
35.3 |
1.5 |
3,715.9 |
4,351.1 |
(635.2) |
(14.6) |
|
% of net revenue |
83.3 |
84.1 |
|
|
70.2 |
78.5 |
|
|
5.1. Payroll and benefits
In 2Q15 payroll and benefits dropped R$ 22.6 million or 4.1%, due to the following:
· R$ 15.9 million in provisions for severance payments (TAC); and
· R$ 10.7 million in expenses related to the Profit Sharing Program, due to a higher reversion of provision in 2Q15, as a result of achievements lower than the targets estimated for the period.
The average wage increase of 6.8%, since May 2014 and of 9.7% since May 2015 were offset by the 4.4% drop in the number of employees, that reduced from 14,799 in 2Q14 to 14,147 this quarter.
5.2. Supplies
In 2Q15, expenses with supplies decreased R$ 3.8 million or 8.1%, from R$ 46.9 million to R$ 43.1 million, mostly due to lower use of materials in preventive and corrective maintenance in several water and sewage systems, thus, resulting in a reduction of R$ 3.0 million.
5.3. Services
Services expenses, in the amount of R$ 270.0 million, dropped R$ 81.6 million or 23.2%, in comparison to R$ 351.6 million in 2Q14. The main factors were:
· Advertising campaigns, in the amount of R$ 38.3 million, mainly due to the intensification in 2Q14, for the rational use of water;
· Estimate of service expenses, totaling R$ 22.1 million, especially due to the lower expense related to advertising campaigns in 2Q15; and
· Expenses with risk contracts for credit recovery, in the amount of R$ 7.8 million.
5.4. Electric power
Electric power expenses totaled R$ 208.3 million, an increase of R$ 63.8 million or 44.2% in comparison to the R$ 144.5 million in 2Q14, chiefly due to the following:
· Average increase of 82.0% in the regulated market tariffs (ACR), with a 10.3% decrease in consumption; and
· Average increase of 210.4% in the grid market tariffs (TUSD).
Page 4 of 11
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The regulated market (ACR) accounts for 69.2% of the total electric power consumed by the Company, while the grid market represents 11.5% of total consumption.
5.5. General expenses
General expenses dropped R$ 141.3 million or 74.4%, totaling R$ 48.7 million, versus the R$ 190.0 million recorded in 2Q14 mainly due to:
· R$ 117.8 million decrease in the provision for lawsuits; and
· Lower provision for the Municipal Fund for Environmental Sanitation and Infrastructure, in the amount of R$ 13.3 million, as a result of the decrease in revenues with the municipality of São Paulo.
5.6. Depreciation and amortization
R$ 61.5 million increase or 27.6%, reaching R$ 284.1 million in comparison to the R$ 222.6 million recorded in 2Q14, mostly related to the addition intangible assets in operation.
5.7. Credit write-offs
Credit write-offs decreased R$ 61.4 million, especially due to higher allowance for losses occurred in 2Q14, in municipalities served with water on wholesale basis.
6. Other operating revenues and expenses, net
Other net operational revenues and expenses reported an upturn of R$ 6.5 million, mainly due to the gain from selling surplus energy in 2Q15, in the amount of R$ 9.7 million.
7. Financial result
|
R$ million | ||||
|
|
2Q15 |
2Q14 |
Chg. |
% |
|
Financial expenses, net of revenues |
(64.5) |
(74.4) |
9.9 |
(13.3) |
|
Net monetary and exchange variation |
219.9 |
52.8 |
167.1 |
316.5 |
|
Financial result |
155.4 |
(21.6) |
177.0 |
(819.4) |
7.1. Financial revenues and expenses
|
R$ million | ||||
|
|
2Q15 |
2Q14 |
Chg. |
% |
|
Financial expenses |
|
|
|
|
|
Interest and charges on international loans and financing |
(25.1) |
(23.1) |
(2.0) |
8.7 |
|
Interest and charges on domestic loans and financing |
(81.0) |
(79.9) |
(1.1) |
1.4 |
|
Other financial expenses |
(48.9) |
(45.3) |
(3.6) |
7.9 |
|
Total financial expenses |
(155.0) |
(148.3) |
(6.7) |
4.5 |
|
Financial revenues |
90.5 |
73.9 |
16.6 |
22.5 |
|
Financial expenses net of revenues |
(64.5) |
(74.4) |
9.9 |
(13.3) |
7.1.1. Financial expenses
Financial expenses grew R$ 6.7 million. The main reasons were:
· R$ 3.3 million upturn in other financial expenses, mainly due to the increased recognition of interest arising from the startup of a sewage treatment station, financed through leasing; and
Page 5 of 11
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· R$ 2.0 million increase in interest and charges on international loans and financing, especially due to the total debt increase, resulting from new funding.
7.1.2. Financial revenues
Financial revenues increased R$ 16.6 million, due to interest mainly over instalment agreement in 2Q15.
7.2. Monetary and exchange rate variation on assets and liabilities
|
R$ million | ||||
|
|
2Q15 |
2Q14 |
Chg. |
% |
|
Currency exchange variation on loans and financing |
208.9 |
84.2 |
124.7 |
148.1 |
|
Monetary variation on loans and financing |
(41.6) |
(28.9) |
(12.7) |
43.9 |
|
Other monetary variations |
17.8 |
(13.1) |
30.9 |
(235.9) |
|
Monetary/exchange rate variation on liabilities |
185.1 |
42.2 |
142.9 |
338.6 |
|
Monetary/exchange rate variation on assets |
34.8 |
10.6 |
24.2 |
228.3 |
|
Monetary/exchange rate variation, net |
219.9 |
52.8 |
167.1 |
316.5 |
7.2.1. Monetary/currency exchange variation on liabilities
The effect on the monetary/currency exchange variation on liabilities in 2Q15 was R$ 142.9 million, higher than in 2Q14, especially due to:
· An increase of R$ 124.7 million in expenses with exchange rate change on loans and financing, due to a higher depreciation of the US dollar and the Yen versus the Brazilian Real in 2Q15 (3.3% and 5.0%, respectively), when compared to the depreciation recorded in 2Q14 (2.7% and 1.0%, respectively);
· R$ 30.9 million decrease in other monetary variation expenses, chiefly due to the reversion of R$ 25.6 million regarding provision for lawsuits in 2T15; and
· An upturn of R$ 12.7 million in expenses with monetary variation on loans and financing, due to the increase in the IPCA in 2Q15 compared to 2Q14 (2.26% and 1.54%, respectively).
7.2.2. Monetary/Exchange rate variation on assets
R$ 24.2 million increase, mainly due to the monetary updates on judicial deposits.
8. Income tax and social contribution
Recorded a R$ 182.0 million upturn, due to the increase in taxable income in 2Q15 and to the impacts of deferred income tax and social contribution, versus 2Q14.
9. Indicators
9.1. Operating
As a result of the water crisis, there was a substantial reduction in the water production volume, down by 14.6% in the quarter and 18.1% in the semester.
There was also a substantial decline in the index that measures water losses per connection per day (IPDT) which came to 272 liters/connection x day versus 356 liters/connection x day on the same period last year.
This reduction was the result not only of loss control initiatives, but also of the water crisis and the consequent need to reduce the network pressure as a demand management mechanism.
.
Page 6 of 11
|
|
|
Operating indicators * |
2Q15 |
2Q14 |
% |
|
Water connections (1) |
8,310 |
8,100 |
2.6 |
|
Sewage connections (1) |
6,753 |
6,542 |
3.2 |
|
Population directly served - water (2) |
25.4 |
25.1 |
1.2 |
|
Population directly served - sewage (2) |
22.6 |
22.1 |
2.3 |
|
Number of employees |
14,147 |
14,799 |
(4.4) |
|
Water volume produced - quarter (3) |
606 |
710 |
(14.6) |
|
Water volume produced - semester (3) |
1,219 |
1,488 |
(18.1) |
|
IPM - Measured water loss (%) |
28.5 |
30.8 |
(7.5) |
|
IPDt (liters/connection x day) |
272 |
356 |
(23.6) |
(1) Total connections, active and inactive, in thousand units at the end of the period
(2) In million inhabitants, at the end of the period. Not including wholesale
(3) In millions of cubic meters
(*) Unaudited
9.2. Financial
|
Economic Indexes * (quarter end) |
2Q15 |
2Q14 |
|
Amplified Consumer Price Index (IPCA) - % |
2.26 |
1.54 |
|
Referential Rate (TR) - % |
0.40 |
0.15 |
|
Interbank Deposit Certificate (CDI) - % |
13.64 |
10.80 |
|
US DOLAR (R$) |
3.1026 |
2.2025 |
|
YEN (R$) |
0.02541 |
0.0218 |
(*) Unaudited
10. Loans and financing
On June 24, 2015, the Company fully redeemed the 16th debenture issue, totaling R$ 500 million. No premium was paid.
|
R$ million | ||||||||
|
INSTITUTION |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 and onwards |
Total |
|
Local market |
|
|
|
|
|
|
|
|
|
Caixa Econômica Federal |
34.1 |
71.8 |
76.3 |
80.6 |
84.0 |
87.6 |
741.8 |
1,176.2 |
|
Debentures |
61.6 |
359.5 |
883.7 |
595.2 |
685.7 |
380.2 |
575.2 |
3,541.1 |
|
BNDES |
27.0 |
68.8 |
73.8 |
73.7 |
73.7 |
56.1 |
286.7 |
659.8 |
|
Commercial Leasing |
5.9 |
19.5 |
20.6 |
21.7 |
23.0 |
25.1 |
387.9 |
503.7 |
|
Others |
0.3 |
0.6 |
0.7 |
0.6 |
- |
- |
- |
2.2 |
|
Interest and charges |
57.0 |
29.4 |
- |
- |
- |
- |
- |
86.4 |
|
Local market total |
185.9 |
549.6 |
1,055.1 |
771.8 |
866.4 |
549.0 |
1,991.6 |
5,969.4 |
|
International market |
|
|
|
|
|
|
|
|
|
BID |
59.2 |
118.4 |
172.1 |
94.2 |
94.2 |
94.2 |
1,085.2 |
1,717.5 |
|
BIRD |
- |
- |
- |
- |
4.7 |
9.5 |
127.7 |
141.9 |
|
Eurobonds |
- |
434.2 |
- |
- |
- |
1,081.4 |
- |
1,515.6 |
|
JICA |
27.8 |
55.6 |
56.6 |
57.6 |
83.3 |
83.3 |
951.1 |
1,315.3 |
|
BID 1983AB |
- |
74.3 |
74.3 |
74.0 |
54.9 |
54.2 |
70.6 |
402.3 |
|
Interest and charges |
29.4 |
- |
- |
- |
- |
- |
- |
29.4 |
|
International market total |
116.4 |
682.5 |
303.0 |
225.8 |
237.1 |
1,322.6 |
2,234.6 |
5,122.0 |
|
Total |
302.3 |
1,232.1 |
1,358.1 |
997.6 |
1,103.5 |
1,871.6 |
4,226.2 |
11,091.4 |
Page 7 of 11
|
|
11. Capex
In the second quarter of 2015 R$ 969.6 million were invested, totaling R$ 1.5 billion investments in the first six months of 2015.
12. Conference calls
|
In Portuguese August 18, 2015 9:30 am (US EST) / 10:30 am (Brasília) Dial in: 55 (11) 3728-5971 ou 55 (11) 3127-4971 Code: Sabesp
Replay available for 7 days Dial in: 55 (11) 3127-4999 Code: 60830050
Click here to access the webcast
|
In English August 18, 2015 2:00 pm (Brasília) / 1:00 pm (US EST) Dial in: 1 (412) 317-6776 Code: Sabesp
Replay available for 7 days Dial in: 1(412) 317-0088 Code: 10067911
Click here to access the webcast
|
For more information, please contact:
Mario Arruda Sampaio
Phone.(55 11) 3388-8664
E-mail: maasampaio@sabesp.com.br
Angela Beatriz Airoldi
Phone.(55 11) 3388-8793
E-mail: abairoldi@sabesp.com.br
Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
Page 8 of 11
|
|
Income Statement
|
Brazilian Corporate Law |
R$ '000 | |
|
|
2Q15 |
2Q14 |
|
Gross Operating Revenue |
2,952,002 |
2,902,766 |
|
Water Supply - Retail |
1,116,535 |
1,148,197 |
|
Water Supply - Wholesale |
11,261 |
59,220 |
|
Sewage Collection and Treatment |
880,702 |
973,299 |
|
Sewage Collection and Treatment - Wholesale |
4,816 |
6,883 |
|
Construction Revenue - Water |
551,489 |
280,864 |
|
Construction Revenue - Sewage |
353,271 |
397,886 |
|
Other Services |
33,928 |
36,417 |
|
Taxes on Sales and Services - COFINS and PASEP |
(129,150) |
(148,613) |
|
Net Operating Revenue |
2,822,852 |
2,754,153 |
|
Operating Costs |
(2,105,409) |
(1,830,133) |
|
Gross Profit |
717,443 |
924,020 |
|
Operating Expenses |
|
|
|
Selling |
(146,971) |
(215,232) |
|
Administrative |
(97,932) |
(269,704) |
|
Other operating revenue (expenses), net |
11,777 |
5,209 |
|
Operating Income Before Shareholdings |
484,317 |
444,293 |
|
Equity Result |
(115) |
49 |
|
Earnings Before Financial Results, net |
484,202 |
444,342 |
|
Financial, net |
(53,569) |
(105,534) |
|
Exchange gain (loss), net |
208,961 |
83,957 |
|
Earnings before Income Tax and Social Contribution |
639,594 |
422,765 |
|
Income Tax and Social Contribution |
|
|
|
Current |
(225) |
(135,474) |
|
Deferred |
(302,054) |
15,131 |
|
Net Income (loss) for the period |
337,315 |
302,422 |
|
Registered common shares ('000) |
683,509 |
683,509 |
|
Earnings per shares - R$ (per share) |
0.49 |
0.44 |
|
Depreciation and Amortization |
(284,087) |
(222,594) |
|
Adjusted EBITDA |
756,512 |
661,727 |
|
% over net revenue |
26.8% |
24.0% |
Page 9 of 11
|
|
Balance Sheet
|
Brazilian Corporate Law |
R$ '000 | |
|
ASSETS |
06/30/2015 |
12/31/2014 |
|
Current assets |
|
|
|
Cash and cash equivalents |
803,031 |
1,722,991 |
|
Trade accounts receivable |
1,144,774 |
1,034,820 |
|
Accounts receivable from related parties |
128,407 |
121,965 |
|
Inventories |
55,330 |
66,487 |
|
Restricted cash |
20,171 |
19,750 |
|
Recoverable taxes |
112,331 |
148,768 |
|
Other accounts receivable |
199,222 |
100,664 |
|
Total current assets |
2,463,266 |
3,215,445 |
|
|
|
|
|
Noncurrent assets |
|
|
|
Trade accounts receivable |
165,243 |
189,458 |
|
Accounts receivable from related parties |
689,267 |
102,018 |
|
Escrow deposits |
81,614 |
69,488 |
|
Deferred income tax and social contribution |
75,100 |
209,478 |
|
Water National Agency – ANA |
127,855 |
122,634 |
|
Other accounts receivable |
81,319 |
87,286 |
|
|
|
|
|
Investments |
24,134 |
21,223 |
|
Investment properties |
61,549 |
54,039 |
|
Intangible assets |
27,043,222 |
25,979,526 |
|
Property, plant and equipment |
307,434 |
304,845 |
|
Total noncurrent assets |
28,656,737 |
27,139,995 |
|
|
|
|
|
Total assets |
31,120,003 |
30,355,440 |
|
|
|
|
|
LIABILITIES AND EQUITY |
06/30/2015 |
12/31/2014 |
|
Current liabilities |
|
|
|
Trade payables and contractors |
254,389 |
323,513 |
|
Current portion of long-term loans and financing |
859,871 |
1,207,126 |
|
Accrued payroll and related charges |
353,717 |
387,971 |
|
Taxes and contributions |
70,590 |
74,138 |
|
Interest on shareholders' equity payable |
126,887 |
214,523 |
|
Provisions |
597,144 |
625,092 |
|
Services payable |
302,680 |
318,973 |
|
Public-Private Partnership – PPP |
38,977 |
38,047 |
|
Program Contract Commitments |
201,762 |
189,551 |
|
Other liabilities |
86,073 |
101,642 |
|
Total current liabilities |
2,892,090 |
3,480,576 |
|
|
|
|
|
Noncurrent liabilities |
|
|
|
Loans and financing |
10,231,564 |
9,578,641 |
|
Deferred Cofins and Pasep |
131,135 |
129,351 |
|
Provisions |
378,834 |
595,255 |
|
Pension obligations |
2,810,893 |
2,729,598 |
|
Public-Private Partnership – PPP |
504,378 |
330,236 |
|
Program Contract Commitments |
41,790 |
18,208 |
|
Other liabilities |
191,425 |
189,172 |
|
Total noncurrent liabilities |
14,290,019 |
13,570,461 |
|
|
|
|
|
Total liabilities |
17,182,109 |
17,051,037 |
|
|
|
|
|
Equity |
|
|
|
Capital stock |
10,000,000 |
10,000,000 |
|
Earnings reserves |
3,672,149 |
3,694,151 |
|
Other comprehensive income |
(389,748) |
(389,748) |
|
Accrued earnings |
655,493 |
- |
|
Total equity |
13,937,894 |
13,304,403 |
|
|
|
|
|
Total equity and liabilities |
31,120,003 |
30,355,440 |
Page 10 of 11
|
|
Cash Flow
|
Brazilian Corporate Law |
R$ '000 | ||
|
|
|
Jan-Jun/2015 |
Jan-Jun/2014 |
|
Cash flow from operating activities |
|
| |
|
Profit before income tax and social contribution |
790,096 |
1,162,789 | |
|
Adjustment for: |
|
| |
|
Depreciation and amortization |
537,395 |
482,852 | |
|
Residual value of property, plant and equipment and intangible assets written-off |
3,491 |
1,801 | |
|
Allowance for doubtful accounts |
47,520 |
76,328 | |
|
Provision and inflation adjustment |
(171,045) |
95,467 | |
|
GESP Agreement |
(696,283) |
- | |
|
Interest calculated on loans and financing payable |
232,201 |
216,351 | |
|
Inflation adjustment and foreign exchange gains (losses) on loans and financing |
773,054 |
(139,278) | |
|
Interest and inflation adjustment losses |
12,123 |
10,850 | |
|
Interest and inflation adjustment gains |
(28,367) |
(5,626) | |
|
Financial charges from customers |
(111,328) |
(99,846) | |
|
Margin on intangible assets arising from concession |
(31,627) |
(25,287) | |
|
Provision for Consent Decree (TAC) |
(43,148) |
23,986 | |
|
Equity result |
(999) |
319 | |
|
Provision from São Paulo agreement |
(3,808) |
(18,051) | |
|
Provision for defined contribution plan |
4,605 |
3,515 | |
|
Pension obligations |
164,130 |
144,647 | |
|
Other adjustments |
(2,298) |
60,967 | |
|
1,475,712 |
1,991,784 | ||
|
Changes in assets |
| ||
|
Trade accounts receivable |
(18,269) |
262,977 | |
|
Accounts receivable from related parties |
13,019 |
30,566 | |
|
Inventories |
11,045 |
(256) | |
|
Recoverable taxes |
36,437 |
- | |
|
Escrow deposits |
14,978 |
10,345 | |
|
Other accounts receivable |
(12,408) |
(39,123) | |
|
Changes in liabilities |
| ||
|
Trade payables and contractors |
(15,114) |
(18,357) | |
|
Services received |
(12,485) |
28,966 | |
|
Accrued payroll and related charges |
8,894 |
7,843 | |
|
Taxes and contributions payable |
11,317 |
(87,530) | |
|
Deferred Cofins/Pasep |
1,784 |
1,563 | |
|
Provisions |
(73,324) |
(123,598) | |
|
Pension obligations |
(82,835) |
(78,824) | |
|
Other liabilities |
(16,827) |
(13,121) | |
|
| |||
|
Cash generated from operations |
1,341,924 |
1,973,235 | |
|
| |||
|
Interest paid |
(389,020) |
(307,106) | |
|
Income tax and contribution paid |
(17,743) |
(388,216) | |
|
|
| ||
|
Net cash generated from operating activities |
935,161 |
1,277,913 | |
|
|
| ||
|
Cash flows from investing activities |
|
| |
|
Acquisition of intangibles |
(1,196,001) |
(1,130,122) | |
|
Restricted cash |
(421) |
(10,130) | |
|
Investment increase |
243 |
(17) | |
|
Purchases of tangible assets |
(14,784) |
(52,135) | |
|
Dividends received |
1,526 |
- | |
|
Net cash used in investing activities |
(1,209,437) |
(1,192,404) | |
|
|
| ||
|
Cash flow from financing activities |
|
| |
|
Loans and financing |
|
| |
|
Proceeds from loans |
388,012 |
795,911 | |
|
Repayments of loans |
(876,443) |
(326,390) | |
|
Payment of interest on shareholders'equity |
(106,985) |
(467,439) | |
|
Public-Private Partnership – PPP |
(11,333) |
(9,921) | |
|
Program Contract Commitments |
(38,935) |
(35,960) | |
|
Net cash generated by financing activities |
(645,684) |
(43,799) | |
|
|
| ||
|
Cash reduce and cash equivalents |
(919,960) |
41,710 | |
|
Represented by: |
|||
|
Cash and cash equivalents at beginning of the period |
1,722,991 |
1,782,001 | |
|
Cash and cash equivalents at end of the period |
803,031 |
1,823,711 | |
|
Cash reduce and cash equivalents |
(919,960) |
41,710 | |
Page 11 of 11
|
Companhia de Saneamento Básico do Estado de São Paulo - SABESP | ||
| By: | /s/ Rui de Britto Álvares Affonso
|
|
|
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.