SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For March 25, 2016
(Commission File No. 1-31317)
 

 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 


Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal executive offices)



Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant is submitting the Form 6-K
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___

If "Yes" is marked, indicated below the file number assigned to the
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 2015 results

São Paulo, March 25, 2016 - 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 2015 results . 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$ 23.10/share
SBS: US$ 6.16 (ADR=1 share)
Total shares: 683,509,869
Market value: R$ 15.7 billion
Closing quote: 03/24/2016

 

 

 


 
 

 

1.     Financial highlights

    R$ million  
    2015   2014   Chg. (R$)   %   4Q15   4Q14 Chg. (R$)   %  
  Gross operating revenue   8,946.8   8,905.4   41.4   0.5   2,567.9   2,071.2   496.7   24.0  
  Construction revenue   3,336.7   2,918.0   418.7   14.3   828.3   908.3   (80.0)   (8.8)  
  COFINS and PASEP taxes   (571.9)   (610.2)   38.3   (6.3)   (173.1)   (135.9)   (37.2)   27.4  
(=)   Net operating revenue   11,711.6   11,213.2   498.4   4.4   3,223.1   2,843.6   379.5   13.3  
  Costs and expenses   (5,550.1)   (6,441.1)   891.0   (13.8)   (1,725.0)   (1,733.7)   8.7   (0.5)  
  Construction costs   (3,263.8)   (2,855.5)   (408.3)   14.3   (809.2)   (888.6)   79.4   (8.9)  
  Equity result   2.5   (2.4)   4.9   (204.2)   2.9   (1.0)   3.9   (390.0)  
  Other operating revenue (expenses), net   143.8   (3.5)   147.3   (4,208.6)   45.6   40.5   5.1   12.6  
(=)   Earnings before financial result, income tax and social contribution   3,044.0   1,910.7   1,133.3   59.3   737.4   260.8   476.6   182.7  
  Financial result   (2,456.5)   (635.9)   (1,820.6)   286.3   (86.7)   (304.0)   217.3   (71.5)  
(=)   Earnings before income tax and social contribution   587.5   1,274.8   (687.3)   (53.9)   650.7   (43.2)   693.9   (1,606.2)  
  Income tax and social contribution   (51.2)   (371.8)   320.6   (86.2)   (189.8)   74.6   (264.4)   (354.4)  
(=)   Net income   536.3   903.0   (366.7)   (40.6)   460.9   31.4   429.5   1,367.8  
  Earnings per share* (R$)   0.78   1.32       0.67   0.05      

* Total shares = 683,509,869

 

Adjusted EBITDA Reconciliation (Non-accounting measures)

 

R$ million  
    2015   2014   Chg. (R$)   %   4Q15   4Q14   Chg. (R$)   %  
  Net income   536.3   903.0   (366.7)   (40.6)   460.9   31.4   429.5   1,367.8  
  Income tax and social contribution   51.2   371.8   (320.6)   (86.2)   189.8   (74.6)   264.4   (354.4)  
  Financial result   2,456.5   635.9   1,820.6   286.3   86.7   304.0   (217.3)   (71.5)  
  Other operating revenues (expenses), net   (143.8)   3.5   (147.3)   (4,208.6)   (45.6)   (40.5)   (5.1)   12.6  
(=)   Adjusted EBIT*   2,900.2   1,914.2   986.0   51.5   691.8   220.3   471.5   214.0  
  Depreciation and amortization   1,074.1   1,004.5   69.6   6.9   265.4   278.4   (13.0)   (4.7)  
(=)   Adjusted EBITDA **   3,974.3   2,918.7   1,055.6   36.2   957.2   498.7   458.5   91.9  
  (%) Adjusted EBITDA margin   33.9   26.0       29.7   17.5      

* Total shares = 683,509,869

 

(*) 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 2015, net operating revenue, including construction revenue, reached R$ 11.7 billion; a 4.4% increase compared to 2014.

Costs and expenses, including construction costs, totaled R$ 8.8 billion, 5.2% lower than the R$ 9.3 billion recorded in 2014.

Adjusted EBIT, in the amount of R$ 2.9 billion, grew 51.5% from R$ 1.9 billion recorded in the previous year.

Adjusted EBITDA, in the amount of R$ 4.0 billion, increased 36.2% from R$ 2.9 billion recorded in 2014 .

The adjusted EBITDA margin was 33.9% in 2015, versus 26.0% in 2014. Excluding construction revenues and construction costs, the adjusted EBITDA margin was 46.6% in 2015 (34.4% in 2014).

In 2015 the Company recorded a net income of R$ 536.3 million, in comparison to a net income of R$ 903.0 million in 2014.

 

2. Gross operating revenue

Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 8.9 billion, an increase of R$ 41.4 million or 0.5%, when compared to the R$ 8.9 billion recorded in 2014.

The main factors that led to this variation were:

·          6.5% repositioning tariff index since December 2014;

·          15.2% tariff increase (7.8% ordinary tariff adjustment and 6.9% extraordinary tariff revision) since June 2015; and

·          Application of contingency tariff, with a R$ 499.7 million impact in 2015.

 

The increase in gross operating revenue was mitigated by:

 

·          Bonus granted within the Water Consumption Reduction Incentive Program, with a R$ 926.1 million impact in 2015, versus the R$ 376.4 million granted in 2014, leading to a decrease of 6.2% in gross operating revenue; and

·          Decrease of 6.8% in the Company’s total billed volume (8.0% in water and 5.2% in sewage).

 

 

 

Page 2 of 12


 
 

 

3. Construction revenue

Construction revenue increased R$ 418.7 million or 14.3%, when compared to the previous year. The variation was mainly due to higher investments in the municipalities served by the Company.


4. Billed volume

 

The following tables show the water and sewage billed volume, quarter-on-quarter and year-to-date, per customer category and region.

 

 

WATER AND SEWAGE BILLED VOLUME (1) PER CUSTOMER CATEGORY - million m3
  Water     Sewage     Water + Sewage    
Category   2015   2014   %   2015   2014   %   2015   2014   %  
Residential   1,465.0   1,548.6   (5.4)   1,232.1   1,292.7   (4.7)   2,697.1   2,841.3   (5.1)  
Commercial   160.0   172.6   (7.3)   151.9   162.4   (6.5)   311.9   335.0   (6.9)  
Industrial   32.6   38.9   (16.2)   38.9   43.0   (9.5)   71.5   81.9   (12.7)  
Public   40.6   51.7   (21.5)   33.4   39.9   (16.3)   74.0   91.6   (19.2)  
Total retail   1,698.2   1,811.8   (6.3)   1,456.3   1,538.0   (5.3)   3,154.5   3,349.8   (5.8)  
Wholesale (3)   215.5   269.1   (19.9)   24.4   24.2   0.8   239.9   293.3   (18.2)  
Total   1,913.7   2,080.9   (8.0)   1,480.7   1,562.2   (5.2)   3,394.4   3,643.1   (6.8)  
  4Q15   4Q14   %   4Q15   4Q14   %   4Q15   4Q14   %  
Residential   374.9   376.4   (0.4)   316.0   314.9   0.3   690.9   691.3   (0.1)  
Commercial   40.5   42.4   (4.5)   38.5   40.0   (3.8)   79.0   82.4   (4.1)  
Industrial   8.0   9.3   (14.0)   9.7   10.4   (6.7)   17.7   19.7   (10.2)  
Public   9.8   11.8   (16.9)   8.6   9.1   (5.5)   18.4   20.9   (12.0)  
Total retail   433.2   439.9   (1.5)   372.8   374.4   (0.4)   806.0   814.3   (1.0)  
Wholesale (3)   50.7   61.1   (17.0)   6.1   5.2   17.3   56.8   66.3   (14.3)  
Total   483.9   501.0   (3.4)   378.9   379.6   (0.2)   862.8   880.6   (2.0)  
 
WATER AND SEWAGE BILLED VOLUME (1) PER REGION - million m3
  Water     Sewage     Water + Sewage    
Region   2015   2014   %   2015   2014   %   2015   2014   %  
Metropolitan   1,084.3   1,172.4   (7.5)   939.1   1,005.4   (6.6)   2,023.4   2,177.8   (7.1)  
Regional (2)   613.9   639.4   (4.0)   517.2   532.6   (2.9)   1,131.1   1,172.0   (3.5)  
Total retail   1,698.2   1,811.8   (6.3)   1,456.3   1,538.0   (5.3)   3,154.5   3,349.8   (5.8)  
Wholesale (3)   215.5   269.1   (19.9)   24.4   24.2   0.8   239.9   293.3   (18.2)  
Total   1,913.7   2,080.9   (8.0)   1,480.7   1,562.2   (5.2)   3,394.4   3,643.1   (6.8)  
  4Q15   4Q14   %   4Q15   4Q14   %   4Q15   4Q14   %  
Metropolitan   277.6   281.2   (1.3)   240.8   242.2   (0.6)   518.4   523.4   (1.0)  
Regional (2)   155.6   158.7   (2.0)   132.0   132.2   (0.2)   287.6   290.9   (1.1)  
Total retail   433.2   439.9   (1.5)   372.8   374.4   (0.4)   806.0   814.3   (1.0)  
Wholesale (3)   50.7   61.1   (17.0)   6.1   5.2   17.3   56.8   66.3   (14.3)  
Total   483.9   501.0   (3.4)   378.9   379.6   (0.2)   862.8   880.6   (2.0)  
(1) Unaudited
(2) Including coastal and interior region
(3) Reused water volume and non-domestic sewage are included in

       

Page 3 of 12


 
 

 

5. Costs, administrative, selling and construction expenses

In 2015, costs, administrative, selling and construction expenses, dropped 5.2% (R$ 482.7 million). Excluding construction costs, total costs and expenses dropped by 13.8%. As a percentage of net revenue, costs and expenses were 82.9% in 2014 and 75.3% in 2015.

R$ million  
  2015   2014   Chg. (R$)   %   4Q15   4Q14 Chg. (R$) %  

Payroll and benefits  

2,193.7   2,123.3   70.4   3.3   578.3   539.3   39.0   7.2  

Supplies  

178.6   202.1   (23.5)   (11.6)   44.9   53.4   (8.5)   (15.9)  

Treatment supplies  

269.3   261.2   8.1   3.1   70.5   61.3   9.2   15.0  

Services  

1,162.6   1,314.9   (152.3)   (11.6)   300.1   347.6   (47.5)   (13.7)  

Electric power  

817.5   599.1   218.4   36.5   230.1   158.2   71.9   45.4  

General expenses  

466.7   719.7   (253.0)   (35.2)   219.1   189.4   29.7   15.7  

Tax expenses  

81.5   76.7   4.8   6.3   23.6   21.2   2.4   11.3  

São Paulo state government reimbursement  

(696.3)   -   (696.3)   -   -   -   -   -  

Sub-total  

4,473.6   5,297.0   (823.4)   (15.5)   1,466.6   1,370.4   96.2   7.0  

Depreciation and amortization  

1,074.1   1,004.5   69.6   6.9   265.4   278.4   (13.0)   (4.7)  

Credit write-offs  

2.4   139.6   (137.2)   (98.3)   (7.0)   84.9   (91.9)   (108.2)  

Sub-total  

1,076.5   1,144.1   (67.6)   (5.9)   258.4   363.3   (104.9)   (28.9)  

Costs, administrative and selling expenses  

5,550.1   6,441.1   (891.0)   (13.8)   1,725.0   1,733.7   (8.7)   (0.5)  

Construction costs  

3,263.8   2,855.5   408.3   14.3   809.2   888.6   (79.4)   (8.9)  

Costs, adm., selling and construction expenses  

8,813.9   9,296.6   (482.7)   (5.2)   2,534.2   2,622.3   (88.1)   (3.4)  

% of net revenue  

75.3   82.9       78.6   92.2      

 

5.1. Payroll and benefits

 

In 2015 payroll and benefits increased R$ 70.4 million or 3.3%, due to the following:

 

·          R$ 58.9 million in the provision for the pension plan, arising from changes in actuarial assumptions;

·          R$ 49.8 million, mainly due to the average wage increase of 9.7% in May 2015 and by the application of 1% related to the career and wage plan, since July 2015; and

·          R$ 12.1 million, due to the adjustment in healthcare expenses since July 2015.

 

Despite the above factors, there was a decrease of R$ 46.8 million, due to the smaller number of employees entitled to retirement (TAC).

 

  5.2. Supplies

 

In 2015, expenses with supplies decreased R$ 23.5 million or 11.6%, from R$ 202.1 million to R$ 178.6 million, mostly due to lower use of materials in preventive and corrective maintenance in water and sewage systems, expansion of computerized systems and conservation of properties and installations, in the amount of R$ 21.7 million.

 

5.3. Treatment supplies

 

Increase of R$ 8.1 million or 3.1%, mainly due to higher consumption of Polyelectrolyte, in the amount of R$ 6.6 million, at the Barueri Sewage Treatment Station.

 

 

5.4. Services

 

Services expenses, in the amount of R$ 1,162.6 million, dropped R$ 152.3 million or 11.6%, in comparison to R$ 1,314.9 million in 2014. The main factors that led to this decrease were:

 

·          Advertising campaigns, in the amount of R$ 67.4 million, mainly due to the intensification in 2014, for the rational use of water;

·          Lower expenses with water and sewage systems maintenance, in the amount of R$ 17.1 million;

Page 4 of 12


 
 

 

·          Booking of non-recurring legal services in 2014, in the amount of R$ 13.0 million, related to lawsuits referring to the collection of debt from the municipality of Diadema, in which there was a court settlement for the provision of services in the municipality;

·          R$ 11.8 million drop with contracts for credit recovery; and

·          Lower expenses with the Program for the Rational Use of Water in 2015, in the amount of R$ 9.9 million, due to the intensification of the program in 2014 when the water crisis started.

 

5.5. Electric power

 

Electric power expenses totaled R$ 817.5 million, an increase of R$ 218.4 million or 36.5% in comparison to the R$ 599.1 million in 2014, chiefly due to the following:

·          Average increase of 63.1% in the regulated market tariffs, with a 7.9% decrease in consumption; and

·          Average increase of 161.0% in the grid market tariffs (TUSD), with a 13.3% decrease in consumption.

The increases were partially offset by the 4.1% drop in tariffs and the 1.0% drop in the free market consumption.

 

In 2015 the regulated market accounted for 38.1% of the total electric power consumed by the Company, the free market accounted for 32.6% and the grid market accounted for 29.3% of total consumption.

 

5.6. General expenses

 

General expenses dropped R$ 253.0 million or 35.2%, totaling R$ 466.7 million, versus the R$ 719.7 million recorded in 2014 mainly due to:

·          R$ 185.5 million decrease in the provision for lawsuits, mainly arising from court decisions in favor of the Company;

·          Reversal of the provision, totaling R$ 17.9 million, related to the recovery of amounts with the Government of the State of São Paulo – GESP due to the disposal of employees; and

·          Lower provision for the Municipal Fund for Environmental Sanitation and Infrastructure , in the amount of R$ 17.3 million, as a result of the decrease in revenues with the municipality of São Paulo.

 

5.7. São Paulo state government reimbursement

 

In 2015, the Company entered into an agreement with the São Paulo state government to receive the undisputed amount, related to the state’s debt with the Company, for the payment of the benefits to former employees (G0) dealt with by state Law #4,819, of August 26, 1958, that generated a credit in the result in the amount of R$ 696.3 million.

 

5.8. Depreciation and amortization

 

R$ 69.6 million increase or 6.9%, reaching R$ 1,074.1 million in comparison to the R$ 1,004.5 million recorded in 2014, largely due to the beginning of operations of intangible assets, in the amount of R$ 1.8 billion.

 

5.9. Credit write-offs

 

Credit write-offs decreased R$ 137.2 million, especially due to the reversal of the provision for losses with the municipality of Guarulhos, as a result of the receipt of court-ordered debt payments in cash .

 

6. Other operating revenues and expenses, net

 

Other net operational revenues and expenses reported an upturn of R$ 147.3 million, mainly due to the following:

 

·          An increase of R$ 81.6 million in other operating revenues, largely due to the sale of real estate, totaling R$ 48.4 million, and the proceeds of R$ 42.0 million related to the Depollution Program of Hydrographic Basins; and

Page 5 of 12


 
 

 

·          A decrease of R$ 65.7 million on other operating expenses, as a result of higher provision for the write-off of works, projects and obsolete goods in 2014, in the amount of R$ 58.8 million.

7. Financial result

 

R$ million  
  2015   2014   Chg.   %  
Financial expenses, net of revenues   (435.4)   (212.0)   (223.4)   105.4  
Net monetary and exchange variation   (2,021.1)   (423.9)   (1,597.2)   376.8  
Financial result   (2,456.5)   (635.9)   (1,820.6)   286.3  

 

 

7.1. Financial revenues and expenses 

 

 

R$ million  
  2015   2014   Chg.   %  
Financial expenses          
Interest and charges on international loans and financing   (127.3)   (92.2)   (35.1)   38.1  
Interest and charges on domestic loans and financing   (326.3)   (272.9)   (53.4)   19.6  
Other financial expenses   (210.1)   (177.7)   (32.4)   18.2  
Total financial expenses   (663.7)   (542.8)   (120.9)   22.3  
Financial revenues   228.3   330.8   (102.5)   (31.0)  
Financial expenses net of revenues   (435.4)   (212.0)   (223.4)   105.4  

 

7.1.1. Financial expenses

 

Financial expenses grew R$ 120.9 million. The main reasons were:

 

·          R$ 35.1 million in interest and charges on international loans and financing, due to the higher appreciation of US dollar and the Yen versus the Brazilian Real in 2015 (47.0% and 45.9%, respectively), when compared to the previous year (13.4% and -0.5%, respectively);

·          R$ 53.4 million in interest and charges on domestic loans and financing, especially due to the higher appreciation of the CDI in 2015, in comparison to 2014 (13.2% and 10.8%, respectively); and

·          R$ 32.4 million in other financial expenses, largely due to the greater recognition of interest on works financed through leasing in 2015 .

 

7.1.2. Financial revenues

 

Financial revenues decreased R$ 102.5 million, largely due to lower interest over instalment agreements held in 2015.

 

7.2. Monetary and exchange rate variation on assets and liabilities

 

R$ million  
  2015   2014   Chg.   %  
Monetary variation on loans and financing   (171.7)   (98.3)   (73.4)   74.7  
Currency exchange variation on loans and financing   (1,992.7)   (345.7)   (1,647.0)   476.4  
Other monetary variations   (24.3)   (71.2)   46.9   (65.9)  
Monetary/exchange rate variation on liabilities   (2,188.7)   (515.2)   (1,673.5)   324.8  
Monetary/exchange rate variation on assets   167.6   91.3   76.3   83.6  
Monetary/exchange rate variation, net   (2,021.1)   (423.9)   (1,597.2)   376.8  

 

7.2.1. Monetary/currency exchange variation on liabilities

 

The effect on the monetary/currency exchange variation on liabilities in 2015 was R$ 1,673.5 million, higher than in 2014, especially due to:

 

·          An upturn of R$ 73.4 million in expenses with monetary variation on loans and financing, due to the increase in the IPCA (Amplified Consumer Price Index) in 2015 compared to 2014 (10.7% and 6.4%, respectively);

 

 

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·          Negative variation of R$ 1,647.0 million in expenses with exchange rate variation on loans and financing, due to a higher appreciation of the US dollar and the Yen versus the Brazilian Real in 2015 (47.0% and 45.9%, respectively), when compared to 2014 (13.4% and -0.5%, respectively); and

·          R$ 46.9 million decrease in other monetary variation, as a result of the lower provisions for the monetary restatement of lawsuits in 2015, chiefly due to court decisions in favor of the Company.

 

7.2.2. Monetary/Exchange rate variation on assets

An increase of R$ 76.3 million, especially due to the monetary update on the agreement with the São Paulo State Government, in 2015.

.

8. Income tax and social contribution

Dropped R$ 320.6 million, due to the decrease in taxable income in 2015, versus 2014.

 

9. Indicators



 

9.1. Operating

 

As a result of the water crisis, there was a substantial reduction in the water production volume, down by 13.1% in 2015.

 

There was also a substantial decline in the index that measures water losses per connection per day (IPDT) which came to 258 liters/connection x day in 2015 versus 319 liters/connection x day in 2014.

 

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 .

 

Operating indicators *   2015   2014   %  
Water connections ( 1 )   8,420   8,210   2.6  
Sewage connections ( 1 )   6,861   6,660   3.0  
Population directly served - water ( 2 )   25.5   25.3   0.8  
Population directly served - sewage ( 2 )   22.8   22.4   1.8  
Number of employees   14,223   14,753   (3.6)  
Water volume produced ( 3 )   2,467   2,840   (13.1)  
IPM - Measured water loss (%)   29   30   (4.4)  
IPDt (liters/connection x day)   258   319   (19.1)  
(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 million of cubic meters
(*) Unaudited

 

9.2. Financial

 

Economic Indexes * (year end)   2015   2014  
Amplified Consumer Price Index (IPCA) - %   10.67   6.41  
Referential Rate (TR) - %   1.7955   0.8593  
Interbank Deposit Certificate (CDI) - %   14.13   11.57  
US DOLAR (R$)   3.9048   2.6562  
YEN (R$)   0.03243   0.02223  
(*) Unaudited

 

 

 

Page 7 of 12


 
 

 

10. Loans and financing

 

On March 30, 2016, the Company will partially settle the 19 th issue of debentures, in the amount of R$ 300 million.

 

R$ million  
INSTITUTION 2016 2017 2018 2019 2020 2021 2022 to
2038
Total
Local market                  
Caixa Econômica Federal   49.5   54.3   57.9   59.6   61.6   64.7   716.8   1,064.4  
Debentures   361.7   891.0   864.9   959.9   397.0   189.1   417.1   4,080.7  
BNDES   73.3   79.3   79.2   79.3   61.6   61.1   260.2   694.0  
Commercial Leasing   12.0   22.5   23.6   24.9   26.3   28.3   397.3   534.9  
Others   0.7   0.7   0.5   -   -   -   -   1.9  
Interest and charges   127.9   -   -   -   -   -   -   127.9  
Local market total   625.1   1,047.8   1,026.1   1,123.7   546.5   343.2   1,791.4   6,503.8  
International market                  
IADB   149.0   221.4   123.3   123.4   123.4   123.4   1,316.5   2,180.4  
IBRD   -   -   -   8.0   15.9   15.9   198.7   238.5  
Eurobonds   546.5   -   -   -   1,362.5   -   -   1,909.0  
JICA   71.0   72.3   73.7   111.8   111.8   111.8   1,193.2   1,745.6  
BID 1983AB   93.5   93.5   92.5   69.1   66.9   30.0   57.6   503.1  
Interest and charges   41.2   -   -   -   -   -   -   41.2  
International market total   901.2   387.2   289.5   312.3   1,680.5   281.1   2,766.0   6,617.8  
Total   1,526.3   1,435.0   1,315.6   1,436.0   2,227.0   624.3   4,557.4   13,121.6  

 

 

11. Capex

 

In 2015 the Company invested R$ 3.5 billion, with R$ 2.6 billion in the São Paulo Metropolitan Region and R$ 853 million in the Regional Systems.

 

2015 Capex

 

R$ million  
Capex by segment   Water   Sewage   Total  
Metropolitan Region   1,805.5   822.9   2,628.4  
Regional Systems   377.2   476.2   853.4  
Total   2,182.7   1,299.1   3,481.8  

 

Capex Plan 2016 – 2020: R$ 12.5 billion

 

The Capex Plan for 2016 to 2020 is R$ 12.5 billion of which R$ 5.3 billion in water and R$ 7.2 billion in sewage.

 

R$ million  
  2016   2017   2018   2019   2020   Total  
Water   1,170   1,208   1,119   852   935   5,284  
Sewage Collection   466   917   1,044   1,040   1,061   4,528  
Sewage Treatment   164   429   571   704   771   2,639  
Total   1,800   2,554   2,734   2,596   2,766   12,450  

 

 

 

Page 8 of 12


 
 

 

12. Conference calls

 

 

In Portuguese

March 29, 2016

9:30 am (US EST) / 10:30 am (Brasília)

Dial in: 55 (11) 2188-0155

Code: Sabesp

 

Replay available for 7 days

Dial in: 55 (11) 2188-0400
Code: Sabesp

 

Click here to access the webcast

 

 

In English

March 29, 2016

2:00 pm (Brasília) / 1:00 pm (US EST)

Dial in: 1 (412) 317-5486

Code: Sabesp

 

Replay available for 7 days

Dial in: 1(412) 317-0088

Code: 10078347

 

Click here to access the webcast

 

 

 

 

For more information, please contact:

 

Mario Arruda Sampaio

Head of Capital Markets and Investor Relations

Phone.(55 11) 3388-8664

E-mail: maasampaio@sabesp.com.br

 

Angela Beatriz Airoldi                                                                         

Investor Relations Manager

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 9 of 12


 
 

 

Income Statement
Brazilian Corporate Law     R$ '000  
  2015   2014  
Net Operating Revenue   11,711,569   11,213,216  
Operating Costs   (8,260,763)   (7,635,599)  
Gross Profit   3,450,806   3,577,617  
Operating Expenses      
Selling   (598,125)   (736,608)  
Administrative revenue (expenses)   44,958   (924,359)  
Other operating revenue (expenses), net   143,755   (3,488)  
Operating Income Before Shareholdings   3,041,394   1,913,162  
Equity Result   2,597   (2,453)  
Earnings Before Financial Results, net   3,043,991   1,910,709  
Financial, net   (464,498)   (289,561)  
Exchange gain (loss), net   (1,991,964)   (346,305)  
Earnings before Income Tax and Social Contribution   587,529   1,274,843  
Income Tax and Social Contribution      
Current   (1,226)   (437,417)  
Deferred   (50,024)   65,557  
Net Income (loss) for the period   536,279   902,983  
Registered common shares ('000)   683,509   683,509  
Earnings per shares - R$ (per share)   0.78   1.32  
Depreciation and Amortization   (1,074,032)   (1,004,471)  
Adjusted EBITDA   3,974,268   2,918,668  
% over net revenue   33.9%   26.0%  



 

 

Page 10 of 12


 
 

 

Balance Sheet
 
Brazilian Corporate Law     R$ '000  
ASSETS   12/31/2015   12/31/2014  
 
Current assets      
Cash and cash equivalents   1,639,214   1,722,991  
Trade accounts receivable   1,326,972   1,034,820  
Accounts receivable from related parties   156,155   121,965  
Inventories   64,066   66,487  
Restricted cash   29,156   19,750  
Recoverable taxes   77,828   148,768  
Other accounts receivable   156,942   100,664  
Total current assets   3,450,333   3,215,445  
 
Noncurrent assets      
Trade accounts receivable   182,616   189,458  
Accounts receivable from related parties   715,952   102,018  
Escrow deposits   76,663   69,488  
Deferred income tax and social contribution   128,242   209,478  
Water National Agency – ANA   88,368   122,634  
Other accounts receivable   140,676   87,286  
 
Investments   28,105   21,223  
Investment properties   56,957   54,039  
Intangible assets   28,513,626   25,979,526  
Property, plant and equipment   325,076   304,845  
Total noncurrent assets   30,256,281   27,139,995  
 
Total assets   33,706,614   30,355,440  
 
 
LIABILITIES AND EQUITY   12/31/2015   12/31/2014  
Current liabilities      
Trade payables and contractors   248,158   323,513  
Current portion of long-term loans and financing   1,526,262   1,207,126  
Accrued payroll and related charges   347,976   387,971  
Taxes and contributions   107,295   74,138  
Interest on shareholders' equitypayable   127,441   214,523  
Provisions   631,890   625,092  
Services payable   387,279   318,973  
Public-Private Partnership – PPP   33,255   38,047  
Program Contract Commitments   228,659   189,551  
Other liabilities   102,101   101,642  
Total current liabilities   3,740,316   3,480,576  
 
Noncurrent liabilities      
Loans and financing   11,595,338   9,578,641  
Deferred Cofins and Pasep   132,921   129,351  
Provisions   450,324   595,255  
Pension obligations   2,832,216   2,729,598  
Public-Private Partnership – PPP   1,001,778   330,236  
Program Contract Commitments   92,055   18,208  
Other liabilities   145,060   189,172  
Total noncurrent liabilities   16,249,692   13,570,461  
 
Total liabilities   19,990,008   17,051,037  
 
Equity      
Capital stock   10,000,000   10,000,000  
Earnings reserves   4,069,988   3,694,151  
Other comprehensive income   (353,382)   (389,748)  
Total equity   13,716,606   13,304,403  
 
Total equity and liabilities   33,706,614   30,355,440  

 

 

Page 11 of 12


 
 

 

Cash Flow
Brazilian Corporate Law     R$ '000  
  2015   2014  
Cash flow from operating activities      
Profit before income tax and social contribution   587,529   1,274,843  
Adjustment for:      
Depreciation and amortization   1,074,032   1,004,471  
Residual value of property, plant and equipment and intangible assets written-off   52,040   48,248  
Allowance for doubtful accounts   2,420   139,589  
Provision and inflation adjustment   (4,706)   236,122  
Interest calculated on loans and financing payable   474,056   379,489  
Inflation adjustment and foreign exchange gains (losses) on loans and financing   2,163,754   443,414  
Interest and inflation adjustment losses   27,168   17,900  
Interest and inflation adjustment gains   (130,762)   (36,227)  
Financial charges from customers   (125,966)   (195,948)  
Margin on intangible assets arising from concession   (72,908)   (62,520)  
Provision for Consent Decree (TAC)   (15,601)   52,008  
Equity result   (2,597)   2,453  
Provision from São Paulo agreement   11,252   (23,306)  
Provision for defined contribution plan   8,349   8,395  
Pension obligations   352,710   289,294  
Other adjustments   (6,103)   43,543  
GESP Agreement   (696,283)   -  
  3,698,384   3,621,768  
Changes in assets      
Trade accounts receivable   (111,738)   363,343  
Accounts receivable from related parties   (2,818)   42,670  
Inventories   (550)   (8,699)  
Recoverable taxes   70,940   (148,578)  
Escrow deposits   35,083   4,528  
Other accounts receivable   (9,785)   (47,590)  
Changes in liabilities      
Trade payables and contractors   (18,314)   (85)  
Services received   57,054   19,071  
Accrued payroll and related charges   (24,394)   21,037  
Taxes and contributions payable   35,947   28,383  
Deferred Cofins/Pasep   3,570   (498)  
Provisions   (133,427)   (196,157)  
Pension obligations   (182,514)   (172,820)  
Other liabilities   (47,607)   (6,946)  
 
Cash generated from operations   3,369,831   3,519,427  
 
Interest paid   (710,688)   (603,563)  
Income tax and contribution paid   (17,743)   (435,612)  
 
Net cash generated from operating activities   2,641,400   2,480,252  
 
Cash flows from investing activities      
Acquisition of intangibles   (2,397,352)   (2,658,857)  
Restricted cash   (9,406)   (9,417)  
Investment increase   (2,540)   (16)  
Purchases of tangible assets   (54,794)   (89,451)  
Dividends received   4,612   -  
Net cash used in investing activities   (2,459,480)   (2,757,741)  
 
Cash flow from financing activities      
Loans and financing      
Proceeds from loans   1,303,296   1,258,101  
Repayments of loans   (1,292,322)   (529,535)  
Payment of interest on shareholders'equity   (202,115)   (467,469)  
Public-Private Partnership – PPP   (23,799)   (4,189)  
Program Contract Commitments   (50,757)   (38,429)  
Net cash generated by (used in) financing activities   (265,697)   218,479  
 
Cash reduce and cash equivalents   (83,777)   (59,010)  
 
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   1,639,214   1,722,991  
Cash reduce and cash equivalents   (83,777)   (59,010)  

 

 

Page 12 of 12

 

 

SIGNATURE   
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.
Date: March 25, 2016
 
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
 

 

 
FORWARD-LOOKING STATEMENTS

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.


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