Water crisis: a study on the economic-financial performance of Brazilian sanitation companies in the face of water scarcity

Abstract

The objective of this research was to identify the economic relevance of the effects of the water crisis on the revenue and costs of Brazilian companies in the sector. The investigation was limited to publicly traded sanitation companies with active registration with the CVM - Brazilian Securities and Exchange Commission, and was carried out by collecting data from the balance sheets published by the CVM and SNIS - National Sanitation Information System, analysis of the evaluation and economic financial management indicators for service providers that presented a more reliable result and survey of the tariff structure of the sanitation companies. The economic and financial history of the companies was taken as a basis, consisting of a multiple case study from the period 2011 to 2015, considering the year 2011 as a parameter for the period in which the level of rain was below expectations. The study pointed out that of the 10 companies investigated, only two showed a solid situation, even with reduced revenue in the period of water scarcity. It is observed that the resources obtained from the collection of tariffs are insufficient to maintain and expand the operational structure necessary to provide a quality service to the population and still remunerate shareholders.