Water & Waste - Chile

Aguas Andinas' Q3 profits down 10.4%, in line with market consensus

Aguas Andinas' Q3 profits down 10.4%, in line with market consensus

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Chile's largest water utility, Aguas Andinas, posted 16.3bn pesos (US$34.1mn) in third quarter profits, down 10.4% compared to 3Q11.

The results were in line with analysts' expectations. Financial services firm IM Trust said that the decline is mainly explained by the US$11mn impact of the tax reform to fund public education, but was partially offset by higher operational results.

Third quarter revenue increased 5.8% to 80.5bn pesos, while for the first nine months of the year, revenue grew 6.9% to 279bn pesos, the company said in its latest financial statements.

For Banchile Inversiones, revenue growth was driven by the wastewater business line, up 7.3% in 3Q12 over 3Q11, and a 4.5-5.5% revenue growth for the rest of Aguas Andinas' lines, including potable water, and other regulated and non-regulated businesses.

"Considering that results from Aguas Andinas were in line with our expectations at an operational level, we don't expect a significant reaction in the stock price," Banchile's report reads.

Third quarter Ebitda stood at 45.5bn pesos, up 5.7% from the year-ago period.

Aguas Andinas, operating in capital Santiago's metropolitan region, is controlled by Aguas de Barcelona (Agbar), which is owned by French group Suez Environnement.

For the full financial results, in Spanish, go to this link