Aguas Andinas maintains sustained growth in EBITDA and cash flow in the third quarter

This Thursday, Aguas Andinas delivered the results of its balance sheet corresponding to September 30, 2022, in which it highlighted the sustained growth of its EBITDA, with an increase of 8.7% compared to the same period last year, reaching 208.387 million dollars during the fiscal year ending September. Likewise, the company continues to generate solid cash flow, which has enabled it to maintain debt in line with its investment objectives.

From Aguas Andinas they highlighted that these results were achieved in the midst of a challenging global economic environment that increased operating costs by 4,055 million dollars, influenced by high inflation in the country that did not give up and significantly increased costs labor, materials and contracts entered into in UF, as well as rising energy prices and fluctuations in the dollar. Likewise, the higher costs must be added to the compensation for the transfer of raw water for 3,578 million dollars, necessary to deal with the situation of extreme drought that the region has been experiencing in the last 13 years, with no impact on the supply to the public.

As regards the non-operating result, inflation affected the company’s financial expenses as a result of the revaluation of the debt in Unidad de Fomento (63,567 million dollars higher than the previous year), whose net income amounted to $54.431 million, 31 , 7% lower than the same period a year earlier.

The utility further detailed that, during the third quarter of 2022, the balance of cash and cash equivalents was $163,331 million, up $16,468 million from the end of June 2022. This increase is primarily explained by the higher operating flow of the long period with the obtaining of a bank loan of 30,000 million dollars, partially offset by the payment of the investments and the amortization of the debt. The company’s current cash stock, which continues to exceed the minimum cash requirements to meet short-term commitments, is being maintained at these levels to deal with any liquidity shocks in the current volatility environment.

Corporate management against climate change

On the other hand, Aguas Andinas took advantage of the instance to once again reaffirm its commitment focused on managing and mitigating the impacts of climate change, such as the severe drought that the country has been experiencing for more than 13 years.

“We continued to implement our action plan to address water scarcity and the effects of climate change, which resulted in an investment effort for the third quarter of 2022 in the amount of $86,952 million. In this sense, the completion of the works of the new Cerro Negro – Lo Mena well system should be noted, which will provide a flow rate of 1,500 l/s to supply 400,000 customers”, explained Didac Borrás, CFO of the company.

Likewise, he highlighted the forthcoming inauguration and entry into operation of the new Padre Hurtado plant, which will double its production to 2,300 liters per second and will strengthen the supply of drinking water to the inhabitants of the municipalities of Ñuñoa, Providencia, La Reina, Las Condes, Lo Barnechea and Vitacura. Furthermore, it was explained that an important focus of work was through awareness raising, which was well received by the population, and proof of this is that, at the end of the third quarter of this year, consumption decreased by 2 0, 3% compared to the same period of the previous year, a figure mainly linked to lower residential demand.

Additionally, the implementation of a new sustainable business model focused on risk mitigation, capturing efficiencies, prioritizing investments and incorporating technology, supported by a new organizational culture was highlighted. In line with the above, process improvement and digital transformation initiatives were developed that generated efficiencies of $2,923 million as of September 30, 2022.

Finally, the CFO of the company underlined that “we continue to face the most serious water crisis ever recorded and, in this scenario, we must maintain focus on management and mitigate its impact. Having said that, we will continue to work, as we have more than a decade, but it is essential to add new sources, have greater redundancy in the infrastructure and increase the resilience of the system to provide an increasingly robust supply in the face of the climate emergency”.

Aguas Andinas completed the international rating process with Standard & Poor’s, obtaining an ‘A-‘ rating, becoming the first non-state-owned corporate company in Chile to receive the highest international rating, in addition to the local ratings issued by Fitch and ICR. AAA+. This occurs in the context of the search for new funding opportunities at an international level, where Aguas Andinas has focused on achieving this qualification and which translates into a great achievement as it represents the solidity of the Company.

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