In This Article:
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EBITDA Growth: 1.7% increase.
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Revenue Growth: 1.6% increase.
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Net Profit: CLP91.4 billion, a reduction of 5.3%.
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Income Tax Rate: Effective rate of 21%.
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Uncollectible Debt Ratio: 1.4% of income.
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Cash Flow: Negative cash flow due to reduced financial income and investment execution.
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Dividends Paid: CLP90 billion to date.
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Debt Issuance: CHF100 million in the Swiss market and CLP101 billion for investment and debt financing.
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Leverage Ratio: 1.35% due to asset revaluation.
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Return on Capital Employed (ROCE): 9.4%.
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Asset Revaluation: Increase of $390 billion in water rights.
Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aguas Andinas SA (XSGO:AGUAS-A) reported a stable growth rate in EBITDA of 1.7%, driven by increased income and effective cost management.
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The company successfully managed to continue operations despite complex weather conditions, including significant rainfall and a city blackout.
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Aguas Andinas SA has implemented a robust investment plan focused on network maintenance, operational continuity, and resilience against climate change.
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The company has revalued its water rights, increasing its asset value by $390 billion, aligning accounting values with market values.
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The VIII rate fixing process agreement, representing 85% of regulated income, is expected to positively impact future financial results.
Negative Points
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Net profit decreased by 5.3% due to lower income before taxes and reduced financial income.
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Non-sanitary sector income declined by $600 million, attributed to non-recurrent engineering service incomes from the previous year.
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The company faced extraordinary costs due to extreme climate events, impacting sewage water collectors.
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Financial results were pressured by unfavorable exchange rate impacts and reduced cash flow levels compared to the previous year.
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The company anticipates increased CapEx levels for 2025-2030, which may impact short-term financial flexibility.
Q & A Highlights
Q: How will the projects announced for 2025 to 2030 affect the company's annual investment levels? A: The projects will increase the CapEx level for 2025-2030, adding $380 million to the recurrent CapEx. The recurrent CapEx varies annually, typically exceeding $100 million, depending on the needs determined through development plans and concessions.
Q: How will the basic drought rate adjustment work for water purchases? A: The 3.85% rate growth will be operational as wells become active. A temporary rate up to 3.85% can be triggered to cover water transfer costs, adjusted retrospectively to match actual costs and income.