Dallas, Texas 12/18/2013 (FINANCIALSTRENDS) – The third quarter 2013 results for Companhia de Saneamento Basico (ADR) (NYSE:SBS) were very good and everybody seems to be quite optimistic about the company. As per the results there was an increase of 3.1% in the net earnings and the earnings per ADR grew by almost 30.2%. Company also got higher water supply and the tariff revision also led to an increase of 2.3% in the overall revenue of the company.
If we talk about the long term growth prospects of the company they are trying to make more and more efforts and investments. The company is also planning to achieve it target of 1.3 million new water connections and 1.7 million new sewerage connections. The company even signed a 30 year long term contract so that it can control the sewerage and water service of Diadema.
Overview of the company
Companhia de Saneamento Basico (ADR) (NYSE:SBS) is a company that provides water and sewerage services to the state of S o Paulo in Brazil; this city is considered as one of the largest cities of the world. Till the third quarter of 2013 the company managed to distribute water to approximately 24.5 million people and 21.3 million people received sewerage services. The principal share holder in SBS is the S o Paulo government and has a controlling stake of about 50.3% in the company.
SBS is considered as one of the largest sewerage and water service provider in the world and at the end of the third quarter 2013 the company has about 7.8 million water connections and about 6.3 million sewerage connections to manage. Company’s residential retail sales volume is 84.5%, commercial is 10.1%, industrial is 2.5% and public sector is around 2.9%. As the urbanization is also increasing it seems that the future is quite bright for the company and the share price will see a upward movement in the coming future.