COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S - SBS STOCK NEWS

On March 28, 2022, the São Paulo State Public Services Regulatory Agency (ARSESP) affirmed the economic and financial capacity of Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) to achieve full public water supply and sewage services by 2033. This decision, based on Technical Note NT.F-0012-2022, indicates progress in the approval stages for several municipalities involved in regional service provision. Notably, six municipalities have pending approvals regarding contractual adjustments.

Sabesp (NYSE: SBS) reported 2021 financial results, showcasing strong performance compared to 2020. The company's net operating revenue reached R$ 19,491.0 million, reflecting a 9.5% increase. Additionally, the net income surged to R$ 2,305.9 million, up by 136.9% from R$ 973.3 million in 2020. Adjusted EBITDA stood at R$ 6,372.7 million.

On March 17, 2022, Companhia de Saneamento Básico do Estado de São Paulo - Sabesp announced a 12.8019% tariff increase effective May 10, 2022. This increase is composed of a 10.5437% inflation adjustment, a 0.2142% efficiency factor discount, and a 2.3932% compensatory adjustment. Despite this adjustment, Sabesp's current tariff structure will remain unchanged until further notice. The new tariff charts will be available on the company’s website and customer service centers.

On February 10, 2022, Sabesp approved the 30th issuance of simple, unsecured, and non-convertible debentures for public distribution, totaling R$ 1 billion. This offer targets a maximum of 75 professional investors, with subscriptions limited to 50. The proceeds will refinance financial commitments maturing in 2022 and bolster the company's cash position. This issuance adheres to CVM regulations, ensuring a structured bookbuilding process to finalize the offer details.

Sabesp's Board of Directors has approved a Capex Plan of R$ 23.8 billion for the period 2022 to 2026. This plan focuses on enhancing water supply, sewage collection, and treatment services across São Paulo. Key allocations include R$ 9.88 billion for water supply, R$ 10.63 billion for sewage collection, and R$ 3.33 billion for sewage treatment. The investment aims to improve infrastructure and service quality, bolstering Sabesp's operational capacity for the coming years.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (B3: SBSP3; NYSE: SBS) reported its third quarter 2021 results with a net operating revenue of R$ 5,153.9 million, a 16.1% increase year-over-year. Costs and expenses rose by 13.8% to R$ 3,933.5 million. The adjusted EBIT grew 24.3% to R$ 1,224.4 million, while adjusted EBITDA increased by 18.2% to R$ 1,789.3 million. The net income reached R$ 468.6 million, compared to R$ 421.6 million in 3Q20.

SABESP has approved its 29th debenture issuance, totaling R$ 1,250,000,000 for public distribution. The issuance involves simple, non-convertible, unsecured debentures across up to three series. The funds from the first series will be used to refinance due financial commitments and recover cash. Subsequent series will finance investments in water supply and sewage systems in São Paulo municipalities. The Offer will initiate following CVM's registration and is subject to market conditions. Updates will be provided to shareholders throughout the process.

On September 29, 2021, Sabesp announced a recommendation from the State Privatization Program's Board to hire the International Finance Corporation (IFC) for consulting services. This involves analyzing potential alternatives for restructuring the company's share capital, in line with the New Sanitation Regulatory Framework and relevant state laws. The decision aims to enhance capital efficiency and will undergo evaluation by the Board at each relevant stage. Sabesp commits to keeping the market updated on any significant developments.

SABESP (B3: SBSP3; NYSE: SBS) reported a net income of R$ 773.1 million for 2Q21, up from R$ 378.2 million in 2Q20. The net operating revenue reached R$ 4,595.9 million, a 3.7% increase year-over-year. However, total costs and expenses rose by 10.4% to R$ 3,700.0 million. Adjusted EBITDA fell by 8.1% to R$ 1,453.2 million, with an adjusted EBITDA margin of 31.6%, down from 35.7% in 2Q20. Excluding construction effects, the margin was 40.0%, down from 45.7% a year earlier.