Companhia De Saneamento Basico Stock Price, News & Analysis

On February 3, 2021, Sabesp announced measures to support customers affected by the COVID-19 pandemic. The company will suspend service cuts and renegotiate debts for customers in orange and red phases until March 31, 2021. Debts will be renegotiated without fines or interest, only monetary adjustments. The installment term is set for 12 months from the negotiation date. Additionally, customers will not be registered in the credit protection registry until March 31, and any previous registrations will be canceled upon debt renegotiation.

Sabesp announced changes to the schedule of its Third Ordinary Tariff Revision, approved by the São Paulo State Energy and Sanitation Regulatory Agency (ARSESP). The revisions include a postponed public consultation for the calculation of P0 and updates to the tariff structure. Key dates include the disclosure of the preliminary technical note on February 9, 2021, and a public consultation period running until March 8, 2021. The final report and resolutions are expected by April 9, 2021. The full details are available on the ARSESP and Sabesp websites.

Sabesp announced changes to its tariff revision and structure schedules as per Resolutions Nº 1,114 and Nº 1,115 from ARSESP. Key events include the disclosure of a preliminary technical note on January 28, 2021, and public consultations from January 29 to March 1, 2021. Following this, a detailed report will be disclosed by April 9, 2021. These adjustments may impact the company's revenue structure and investor outlook.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (NYSE: SBS) reported its 3Q20 results showing a significant decline in financial performance. The company posted a net income of R$421.6 million, down R$787.3 million from R$1,208.9 million in 3Q19. Adjusted EBITDA also fell, totaling R$1,513.6 million, a decrease of R$1,495.7 million from R$3,009.3 million reported in the same quarter last year.

The Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) has announced the approval of the 27th issuance of simple, unsecured, non-convertible debentures, totaling R$ 1 billion. This issuance aims to refinance financial commitments due in 2021 and strengthen the company’s cash position. The debentures will be offered exclusively to professional investors with a maximum of 75 investors participating, but only 50 may subscribe. The offer will follow a bookbuilding procedure to establish details like the number of series and the final interest rates.

Sabesp has submitted a Commercial Proposal alongside Iguá Saneamento S.A. for Public Competition 09/2020, organized by the Infrastructure Secretariat of Alagoas. This proposal aims to secure a concession for water and sewage services in the Maceió metropolitan region. The outcome of the competition is anticipated to be announced on September 30, 2020. Sabesp commits to keeping shareholders informed about further developments related to this initiative.

Sabesp confirms its return to the São Paulo government's capitalization program, as announced by Governor João Doria. This initiative aims to enhance Sabesp's growth by enabling it to participate in concessions for sanitation, water treatment, and distribution services across other Brazilian states. Despite the potential for growth, the announcement led to a notable drop in Sabesp's shares, falling over 10% on the day of the announcement. The company reiterated there is no finalized decision on its corporate reorganization or privatization model yet.

Sabesp has announced a continuation of the exemption from water and sewage bill payments for consumers categorized as "Residencial Social" and "Residencial Favela". This decision follows previous material facts and is in line with Resolution nº 1,038 published by the São Paulo State Sanitation and Energy Regulatory Agency (ARSESP). This exemption applies to bills due in August 2020, aimed at supporting vulnerable communities during challenging economic times.

Sabesp (B3: SBSP3; NYSE: SBS) reported its 2Q20 results on August 14, 2020. The company achieved a 10.9% increase in net operating revenue, totaling R$4,432.5 million, compared to the previous year. Adjusted EBIT rose by 34.2% to R$1,082.9 million, while adjusted EBITDA increased by 28.4% to R$1,581.4 million. The adjusted EBITDA margin improved to 35.7% from 30.8% in 2Q19. However, net income declined to R$378.2 million from R$454.4 million in the same quarter last year.