Sao Paulo, Brazil-based
Companhia de Saneamento Basico do Estado de Sao Paulo, or
) reported a marginal increase in net results for the first
quarter 2013 on May 9, 2013. Earnings in the quarter came
in at R$0.73 per share (or US$0.73 per ADR) versus R$0.72 per
share (or US$0.71 per ADR) in the year-ago quarter.
SABESP generated roughly R$2,645.0 million (US$1,322.5
million) in net revenue in the quarter, up 2.6% year over year,
driven by higher water supply, sewage collection and
Billed water and sewage volume in the first quarter 2013 went
up 2.0% year over year to 923.9 million cubic meters. Of the
total volume reported, roughly 57.9% represented water variation
and about 42.1% came from sewage. The increase in billed water
and sewage volume was due to higher number of connections and
acceleration in consumption.
Water loss rate was at 25.5% versus 25.7% in the prior year
quarter. Water volume produced decreased 1.0% year over year;
water connections crept up 2.7% and sewage connections rose
SABESP reported a 2.7% year-over-year increase in its cost of
sales and services while as a percentage of revenue it was
roughly flat compared to the year-ago quarter. Gross margin in
the quarter was at 41.9%. Operating expenses, including selling
and administrative, increased 1.0% year over year and represented
14.4% of the total revenue.
Adjusted EBITDA in the quarter was around R$921.5 million
(US$460.8 million), up 3.7% year over year with a margin of
Exiting the first quarter 2013, SABESP had a cash and cash
equivalents balance of approximately R$2,127.0 million
(US$1,053.0 million), up 11.0% year over year. Loans and
financing, net of current portion increased 6.1% to R$7,990.4
million (US$3,955.6 million).
SABESP's net cash generated in the year increased 53.2% to
R$643.3 million (US$321.7 million). Capitals spent on purchase of
property, plant and equipment declined 38.8% to R$4.3 million
Following its first quarter 2013 earnings announcement, SABESP
maintained its position as one of the largest water and sewage
services providers in the world, serving roughly 24.3 million
customers for water and 21.1 million for sewage.
SABESP currently holds a Zacks Rank #3 (Hold). Another stock
to watch out for in the industry is
American States Water Company
), with a Zacks Rank #1 (Strong Buy). The company is slated to
report its first quarter, ended Mar 31, results on May 10.
American Water Works Company, Inc.
) reported earnings per share of 32 cents in the first quarter
2013, up 14.3% year over year while
Aqua America, Inc.
) reported earnings of 29 cents, compared with 19 cents reported
in the year-ago quarter.
AMER WATER WORK (AWK): Free Stock Analysis
AMER STATES WTR (AWR): Free Stock Analysis
SABESP -ADR (SBS): Free Stock Analysis Report
AQUA AMER INC (WTR): Free Stock Analysis
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