Q2 2025 Companhia de Saneamento de Minas Gerais COPASA MG Earnings Call (English, Portuguese) Transcript
Key Points
- COPASA MG executed a bold investment plan with year-to-date investments close to BRL1.2 billion, 32% above the same period in 2024.
- The company paid over BRL700 million in dividends in April and is planning another BRL164 million payout, indicating strong shareholder returns.
- COPASA MG completed a hedge contracted IPCA+ swap at EUR90.5 million, reducing foreign exchange exposure costs.
- The company achieved a robust operating cash generation of BRL554 million in the quarter, consistent with the previous year.
- COPASA MG maintained a AAA rating by Moody's and Fitch, reflecting solid fundamentals in demand, leverage, and cash generation.
- The company faced a challenging quarter due to a drop in volume and consumption, affected by lower temperatures.
- Net revenue growth was only 2.1% quarter-on-quarter, despite a 6.4% average increase in tariffs.
- There was an increase in provisions for court cases, amounting to BRL14 million, primarily due to labor suits.
- COPASA MG experienced a slight increase in leverage from 1.8 times to 2 times by the end of the second quarter.
- The company faced non-recurring expenses with consultancy firms, impacting the outsourced services line.
Good morning ladies and gentlemen, and welcome everyone to COPASA MG's audio conference to discuss results relative to Q2 2025. This teleconference is being recorded and the replay facility will be made available at the company's website at ri.copasa.com.br. The respective slide deck can also be downloaded from the platform. (Operator Instructions)
Before moving on, I'd like to state that forward-looking statements are based on beliefs and assumptions on the part of the company's management and also on information currently available for the company. These forward-looking statements might involve risks and uncertainties as they involve future events and therefore depend on circumstances that may or may not materialize.
Investors, analysts, and journalists should take into account that events relative to the macroeconomic environment, to the industry, and to other operating factors might lead such forward-looking numbers to differ materially from those expressed in these forward-looking statements.
I'd like now to turn the conference over to Mr. Adriano Rudek de Moura, CFO and
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