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Brazilian water and sanitation company Iguá Saneamento, formerly known as CAB Ambiental, reported sharply higher earnings in the second quarter.
The company posted a net profit of 7.7mn reais (US$1.9mn), up from 1.88mn reais in the year-ago period. Net revenues increased 13.4% to 160mn reais.
Debt service costs fell to 33mn reais versus 42mn reais while net debt ended the quarter at 1.0bn reais, up from 980mn reais a year earlier.
Iguá invested 48.4mn reais in the quarter, double the amount in the year earlier period.
Formerly owned by Galvão Participaçãoes, Iguá was recently acquired by investment fund FIP Iguá, which in turn is owned by private equity firm IG4 Capital. BNDESPar, the equity arm of federal development bank BNDES, holds 15.8% of the company.
Iguá serves 6.6mn people in 18 municipalities in the states of São Paulo, Mato Grosso, Paraná, Santa Catarina and Alagoas.