1. Stability and predictability
We provide essential utilities and we operate in a regulated monopolistic sector, which allows for greater predictability of demand and revenue trajectories. In addition, we serve a highly dispersed customer base, mostly composed of residential clients with low delinquency rates.
The company’s portfolio is characterized by its diversification and duration, with an average maturity of 35 years. Notwithstanding, dependence on individual municipalities is also relatively low. Taken together, our 10 largest contracts responded for 32.2% of the Company’s revenue in 2023, which limits the financial impact in the event of contractual breaches.
2. Regulation in line with best practices
Corsan has been promoting contractual adjustments that already reach 85% of the Company’s revenue and which include, among other forecasts, the ordinary annual adjustment of tariffs based on inflation measured by the IPCA (official inflation rate) and the inclusion of targets for universalization, quality of service and reduction of losses of water that bring these contracts into compliance with the New Sanitation Framework.
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3. Growth potential
There are good reasons to anticipate sustainable revenue growth over the next years. This is because the expansion of waste water utilities, our main objective for the next decade, has a direct impact on Corsan’s revenue.
With 6 decades of expertise in basic sanitation, we are ready to execute an audacious investment plan and achieve the universalization goals set by the New Sanitation Legal Framework and create value for the business.
4. Contributions to sustainable development
Corsan’s activities contribute directly to SDG 6 (Clean Water and Sanitation), and indirectly to the other 16 objectives – from Good Health and Well-Being (SDG 3) to Responsible Consumption and Production (SDG 12), including Reduced Inequalities (SDG 10). Our main objective by 2033 will be to universalize waste water collection and treatment within all served municipalities, which will allow us to return to the environment a higher-quality water than that which we obtain directly from the basins.
In the context of the transformations we are going through, we have been recognized for our contribution to the ESG agenda, and for our insertion in the green bond markets.
5. Robust financials
In 2024, S&P Global affirmed the “AA+(bra)” rating for both Corsan and its sixth issue of unsecured debentures. The corporate rating outlook is “stable”. In its report, S&P highlights the low-risk profile of the water and waste water sector, which counts with resilient demand. It also points out that Corsan maintains a relevant position in the municipalities where it operates, mostly under long-term contracts, which ensures operational cash generation.