Good morning, everyone. Thank you for joining us today. Welcome to the video conference announcing the results of the first quarter 2026 for Companhia de Saneamento do Paraná, Sanepar. For those requiring simultaneous translations, this feature is available on the platform. To access it, simply click the interpretation button indicated in the global icon at the bottom of the screen, then select your language. For those listening in English, you also have the option to mute the original Portuguese audio by clicking mute original audio. Please know that this video conference is being recorded and will be made available on the company site, ri.sanepar.com.br, where the full earnings release and presentation materials is accessible. You can download the presentation directly from the chat available in English as well. During the presentation, all participants will have their microphones muted. The Q&A session will follow the presentation.
To ask questions, click the Q&A icon at the bottom of your screen and type in your question into the queue. Once your name is called, a prompt will appear to activate your mic, allowing you to ask questions. We recommend submitting all your questions at once for efficiency. If your question is not addressed during the event, please feel free to email it to ri@sanepar.com.br. Please be aware that information provided during this presentation, including any forward-looking statements regarding Sanepar's business outlook, projections, and financial targets, reflect management's current beliefs and assumptions, as well as information available at the time. These statements are subject to risks, uncertainties, and changes in circumstances that could cause actual results to differ materially.
Investors should consider general economic conditions, market factors, and other variables that could impact the company's performance and cause actual results to differ from this expressed in forward-looking statements. Now, I'll hand it over to our Chief Financial and Investor Relations Officer, Abel Demétrio.
Thank you, Rodrigo. Good morning, everyone. We are here. We have our CEO, Wilson Bley , our investor, Luciana Martins, and Accountant Director, Victor Costa. To start this presentation, I hand it over to our President, our CEO.
Good morning. Good morning, the board and all our investors and shareholders. I would like to tell everyone that it's raining here in Paraná, and this is good news to all of us. We are recovering our reservoir levels.
We are exceeding 70% with a good expectation in the so to have enough rain to recover well and to have the continuity of our services that we do so efficiently to all our municipalities. Another good news is that in the first quarter, we are delivering several works in across the state of Paraná. I have been visiting them personally. Yesterday, we delivered our administrative center in the Bacacheri neighborhood in Curitiba that serves all the north area in the region, over 150,000 inhabitants, an increase of 60% of service, bringing dignity to all our workers who exercise their daily activities. This is a very relevant fact. We also have in Curitiba our ETE Tubarão, which is in its final phase of conclusion.
The work is accelerated in Xisto , and we also have a reservoir that is the largest in Latin America in Tatuquara that we will deliver next week. This shows the robustness and how our investment plan has been executed within the conformity demanded by everyone. Last year, we had record numbers in investments, and this year, all the movements made shows that we will keep our plan. I believe that the most important subject is the precatórios, the court-ordered government debt payment. We, from the board, supported by our board, we will continue taking all the administrative measures and legal measures to maintain our understanding, which is a t echnical note , which is which follows these administrative measures. We are in constant dialogues with our regulatory agency.
We had several juridical opinions on the team to validate our decisions regarding our accounting, and we took the necessary legal measures. Do we, and this has given us some gains because our technical note is not efficient. The validity of our record is stronger, it's taking over. We will continue with the dealings in the sense of defending the understanding of our company. The news are good. The results that will be presented now also translate no relevant fact, no extraordinary fact. Everything is within our expectation, but with very good results. I thank all of you, and let's hope we have a good day today, and we are here always available and working diligently to make this company the best sanitation company in Brazil. Thank you.
President, now we will start our earnings presentation. Let's discuss some highlights. In the first quarter of 2026, we had an increase of 7.8% in our net revenue compared to the first quarter of 2025, reaching the amount of BRL 1.146 billion. Our net debt also had a reduction of practically 60%, reaching net debt of BRL 1.921 billion. Due to these precatórios that we received, which reduced our net debt. The leverage is very conservative, 0.7 x, against 1.5x in the first quarter of 2025. Default in line with what is the history of the company, especially compared to last year, which was 2.8%. This year is 2.5% of default.
We're taking the necessary commercial measures for us to always be in line, which is, at the end of the year, is 1.5%. We are working strongly with investments, expansion of the company. Our invoiced volume in water increased 1.2%, and the sewage increased 2.4%, reflecting this expansion of universalization and expansion of connections. We had over 12,000 new connection and 15,000 in new connections in sewage in the first quarter of 2026. The CapEx, as the president said, they are big, BRL 488 million in the first quarter 2025, an increase of 20.8% against one quarter of 2025. Let's talk about the operating results.
About water, the measured volume we increased 2.4 and no, 1.3% and 1.2%. Then we had 2.3 and 2.4 in sewage. We have an increase in the 12 months of 2,000 increase, which is 71,000 economies. It's important because sometimes we have one connection that serves several economies. For example, a building, for example, you have an economy that serves 10 apartments. One connection is one connection and serves 10 apartments. 71,000 economies of water is an increase of 1.6%. We have to remember that the water issue is universalized, but we still have a vegetative increase, quite robust, due to the increase of these cities.
About sewage, it's 71,292 new economies in the period of 12 months, an increase of 2.7% and 106,000 new economy. 71,000 connections and 160 economies, an increase of 3%. Next page, talking about the reservoir levels. As you can see, at the end of March, our integrated system with Curitiba, about 82% average. Today, May 15, is 77%. It reflects the relevance of the reservoirs. They are the lungs of the water necessary, and we have the fifth reservoir in phase of filling up. In December last year, we closed the dams, and this helped in the integrated system in the region of Curitiba.
It's important to say that the rains of last week and the ones foreseen and the prediction of a rain above the average in the second semester brings a good scenario, better than what we had last year, some years ago. Our service index, we are seeking universalization and seeking to meet the legal framework. We are universalizing water with 100%. In 2023, the target is 99%. The sewage, we are in 82.6%. In the line of growth of all the history shows that we are on the right path. Before 2033, we will reach the 9% determined by the Lei 14.026, which updated the new sanitation framework. On next page, some indicators. The fall in the first quarter is usually around 2%, 2.5%.
With losses, we have 221 L in line with last year, the first quarter of 2025. Our margin EBITDA is above 40%, 43.3%. ROI 9.8%. We have to remember that last year, these indicators were affected by this court or the government debt payment. Now obviously we have a different comparison compared to these indicators, especially ROI and ROE. Next slide. Let's talk about net revenue and other results. Our net revenue increased last year in the 6.3%, this year 7.8%. Basically, we had a tariff adjustment in 2025. It was close to 13%. An increase of connections bringing more revenue to the company.
Besides the tariff structures, one of the biggest consumptions is. It has a progressive table in terms of tariffs, which brings good revenue in the first quarter, almost 8% of increase. EBITDA, BRL 843 million, a reduction of 24.4% against the first quarter of 2025. Both EBITDA as the net revenue, again, we have to do the disclaimer. The first quarter of 2025 were impacted by the accounting, the 25% of the precatórios, court ordered government debt. The net revenue, where the expenses increased in 60%, BRL 1.103 billion. Again, if you compare with 2024, 2025 was affected by these precatórios court ordered payments.
This semester we have to make this to state that the comparison is compromised due to the non-recurrent event of the, in that quarter. Margin EBITDA 43.2% and the net margin is good. Let's talk about the accumulated results of the quarter. Indicates some accounts and its variations. We spoke about the net revenue personnel. We had a decrease of 46.3%. We have to highlight that last year we launched in the first quarter the PDV, which is BRL 171. When we compare to the first quarter of 2024, we had an expense of BRL 383 million. We have to remember that two years later, in the first quarter of 2025, we had over BRL 300 million.
The relevance of these programs of layoff of voluntary severance programs, which was something that demand. We always are seeking reduction of costs. PPR is a reflection of the net result reduction, and it grew to 70.8%. The cost of material was favorable, 3.9%. We observed that in the past few days we had a pressure in the increase of costs, especially because of the wars and the events that are taking place in the world. The first quarter, especially due to chemical products that fell 17.8%, which is the main account, the main expense, we had a positive result. Electricity, BRL 119,000,590, an increase of 10.6%.
Still an important reduction compared to 2024 when we spent much more and due to the entrance of free market. Third parties, there's an increase of 13.1%. General and taxes, an increase of 12%, especially in this account of municipal funds. Civil work, environmental, physical, tax person, 16 million registered. We had, in this case, a decrease of 98.6%, but these provisions registered were basically due to civil action, civil lawsuits. Healthcare and the social security provisions, we had a reduction of 4.2%. Financial expenses, BRL 72,463,000 due to the precatórios, to this court ordered payment. We are in line with the expense of 2024, which was BRL 74 million. I think it's a comfortable number for this period.
Other costs and expenses, BRL 377 million. See, although it looks like a reduction, it appears like a reduction, but this because last year we had a reversion of costs and expenses impacted by this precatórios. The main expenses that impacted this account were exactly the losses, provision of losses. In the next slide, let's talk about CapEx. The investments show a constant increase in the first quarters which are compared. 2024, BRL 425. 2025, BRL 487. This year, BRL 588 million. Obviously, this increase of 20.8% is followed by a projection in our business plan of investments for this year, which is quite robust. We intend to reach it as planned.
The composition CapEx is 38% in water, although it's universalized. We have a strong water resilience, which needs investment in sewage as search for universalization and the search for We spend 58% of investments in sewage. Other investments, 11%. These are administrative investments in informatics, technology. In this volume of resources, 41% of finance, our third parties, and then own resources, because we did not have the need in the first quarter to go after external money due to our provision of cash flow. Next slide, let's talk about our capital. Our net debt and leverage, they are very benign, very comfortable. BRL 5 billion in the long term. BRL 7 billion, considering that at the end of March, we have BRL 5 billion in cash.
We have a net debt of over BRL 1 billion, almost BRL 2 billion. A reduction of compared to the net debt of the first quarter of 2025. The cash generation, conversion of EBITDA in cash, which is important. We not only have the EBITDA, but to transform it in liquidity. We have 77% reduction. Cost of capital 12%, an increase compared to 11.1% in 2025. We have two aspects. On the one hand, the CDI starts lowering, reflecting in the CDI, this reduces the tendency of drop of the cost of debt. On the other hand, we have the inflation accumulated at the end of March, 4.14%.
There is an indication of 4.9% in inflation. The expectation at the beginning of the year was that we could go back to something close to 11%. Now we need to wait for the development of the situation. Our debt breakdown, we have, we don't have concentrated deadlines. We have an index vaccine that protects us, quite benign and predictable. We have 36% of TR, which is the reference fee. Something extremely predictable. IPCA, which is the official inflation, 29%. DI, 23%, + 3% of euro because we make the swap in DI. 26% we have ahead with our cash flows. If we increase the interest, on the other hand, we have more revenue.
4% of IPCA-E, we have 2% of without the monetary correction, 2% of TJLP. This distribution causes us to have a good management of our financial, with a very good horizon. We know that it's an atypical year because we have elections. Sometimes to find resources, we might have some volatility. The company, in this aspect, is very comfortable. Now let's go to covenants, which are the obligations, in face of it. In the BNDES is the finances of the ventures, direct financing. There are two indicators. The three of them are fulfilled. The first is the net bank debt, which We have a lot of margin, EBITDA in service of debt. It has to be bigger and/or equal to 1.5. We have two.
Other onerous debt that have to be less than or equal to 1 x EBITDA, we have 0.4%. We are in a very comfortable situation. In the Caixa contracts, Adjusted EBITDA by the net finance expense, we have 10.4, and we have the net bank debt by adjusted EBITDA, which has to be less than or equal to three, and we are six. Other onerous debt, we have 0.4. The difference of the indicator of BNDES, which EBITDA is adjusted. It's just the EBITDA. In the finance of Banco do Brasil, we have two covenants. One is we have 5.1 in which adjusted by the net finance expense, we have 0.6%. We are fulfilling the covenant with Banco do Brasil.
In the emissions with the market, which is the nine to 14, they have to be less or equal to three, and we have 0.6. Adjusted EBITDA, we have 10.4. All very comfortable. In contra-contract KfW, the level of debt, they have to be less or equal to 60%, and we have 53%. Now the next slide, our balance sheet. The net debt increased 6.2%, basically due to bigger investments. Our investments reduced in this period in 5.2%. This brought a bigger variation in our net debt. More investments, we reduced the cash flow and of course, the debt net increases. The operating working capital increased due to the receivables and the payments of last year.
Whether it's suppliers or salaries, we had a reduction in 18.8%, and salaries 4.3%. Other liabilities and assets increased in 61%. The highlight is for contracts and because of the works ongoing, which increased 72%, reaching BRL 3. 9 52 billion reais. The net asset, BRL 27 billion, with operating working capital of seven days, quite reasonable. About cash flow, as we've seen, the operational activities had a reduction of 11.1%, reaching BRL 652 million. The investments had an increase of 19.4%. The activities of financing is, we had an increase of 60.4%. In this, we had some debts paid. We paid BRL 506 million in other quarters.
In 2025, they were 266, or 177 in 2024. Part was predicted for the year was done in this first quarter. We had a reduction of BRL 248 million. Still, we have a cash flow of BRL 5 billion, 359 million. This is our presentation. Now I hand over to you, Rodrigo, for the question and answer session.
We will start now the question and answer session. For you to ask questions, you have to send them to the Q&A icon. Your name will be announced for you to ask your question. You will find a prompt to activate your mic. In case you cannot open your mic, please just type in your question so that your question will be read out loud. Our first question comes from Ronaldo Verissimo, investor.
Initially, he wants to congratulate Sanepar for its results and say, what about the dealings of the precatórios, given the expenses with electricity PPP in case. Will Sanepar still be able to maintain the level of profits?
Okay, let's divide this answer in two parts. About the results, regarding the results, Abel will talk about that. About the dealings of the precatórios, the court-ordered government debt payment, will continue until the last minute. We are making all the preparations. We had conversations with Agepar. We understand that we want to keep the understanding of what was the Nota Técnica. We have reasonable expectations.
We have opinions by renowned law firms, in the sense that our understanding is what should prevail. Recently, Aesbe, which is our association, also expressed the same ideas, with the same understanding, which was the object of the accounts recorded. All the movements, the company will always express itself in the sense of reassuring or, what it understands as reasonable and what was brought to our accountings.
Concerning the PPP and L-LR electricity, we have to remember that the precatórios is a non-recurrent event, is an one-off event. The business plan of two years ago did not even include the fruit of these precatórios, this settlement of court or this government payment claims.
The company is always looking at its projection and trying to create scenarios and simulations without these precatórios. The continuity of the company is irrespective of these precatórios. It's very important to have it to advance in universalizations, in investment, more accelerated rhythm. The company is obviously prepared to continue its life regardless of these court payments. The decisions that come from the agency needs to be implemented. The company recorded in this quarter contingent liability given its diligence in disclaimer for the society, for the investors. We say in the sense that we are very comfortable because the indicators will remain solid, but we expect to have this part which is shown in our financial report.
Thank you. Next question comes from Ricardo Bello, Banco Safra.
Congratulations for the results. What called our attention is the good control of default. How have you mitigated the results? Have you seen more pressure for the next quarter or measures or you will remain in the same line?
All the diligences that are necessary, we are taking. We created two programs of recovery of these credits. We have a fee that we understand that is proper. Within the elasticity of normality that the society can fulfill, now recently, and it was validated yesterday in the administration board, we postpone our Água, our program, which are conditions for those who are in default, for them to be able to regulate their situation based on this program.
Of course, this default, let's say bar, we can always, we can always cut the water and then and after the recovery of this credit, we can fix the situation. We are in line with what is necessary to do for us to be able to keep the indicators, which I say are the most reasonable of all the national companies. We will keep all this diligence in the sense that this default remains in, on the same level of normality. We don't see any extraordinary fact that might occur in the sense of shaking this relationship between us, the concessionary and our consumers, the end consumers.
Our next question comes from Luis Alves.
The emergency water decree has impacted the company. Is there any consequences? Was it impacting the revenue of the company for the next quarters?
The concern of, about this decree is in the sense.
We had a little problem. Just, we are asked to wait for some, wait, for the reconnection. Due to some technical problems, we are asked to wait, but I think we are about to fix these technical problems.
Now let resuming, sorry for the technical problem. As I was saying that the decree brings a warning, and it brings an additional motivation for the society for a more conscious use of water. We don't see the need for any kind of reduction in water. We are investing in new economic, especially in sewage. This brings a positive reflection in our revenue.
The decree reaffirms, for those who have not heard, it's a sign of warning for all the population prioritizing consumption. For a human consumption seems the multiple use of water sometimes brings us some kind of difficulty because in the economical development, irrigation, agriculture, the water might be used more in a more exaggerated way, causing losses in our capitalization. The decrease in line to motivate society to make a rational use of this water.
Thank you. Next question comes from Julio Cesar Aleixo, an investor. Congratulations for your results. As an investor, I'm very uncomfortable with the variations that happen in terms of judicial provisions every quarter. We have few predictability and visibility. Things are always explained in a broad ones without details. Can you improve the disclose of this line and bring the legal director to detail the probabilities of success or failure? This is Julio's question.
Thank you, Julio, for your question. Yes, indeed. In the issue of provisions, The issue of the provision, the regulatory provisions, they really created some confusion in our comparisons. Yes, we have an event that comes from 2024, which is a bigger accuracy in the closing of the legal lawsuits with several provisions being returned. Due to the conclusion of some legal lawsuits, we had some legal issues very relevant in the past, which were sued recently, which caused this specific account of Legal provisions, which were the labor issues, which was the engineering issues.
It caused some updates and several compensations, which caused this account to see some variations, very representative variations. These elements, which were these write-offs, and some legal lawsuits, They caused these variations and some problems of This causes some bigger effort to understand. Everything that is necessary to clarify, to bring more details will be done by the company. For us to always bring more information with more details. About the participation of the legal director, we can invite him in the following meetings. I see no problem regarding that. I would like to and the answer is yes. Yes, he can take part in our next meetings.
Thank you. Now, continuing, the next question comes from Aroldo Santos Teixeira, an investor.
Could you inform if the investment gains coming from the precatórios are incorporated in the company or the provision for future amortization of tariff?
Thank you, Aroldo, for your question. Yes, we recorded in the first quarter of 2025 of the original precatórios, and we updated both the regulatory liability with 75% and the 25% of the company every quarter. Yes. The 75% which goes to amortization of tariffs, it goes for amortization. The rest, the difference, is recorded in the results in favor of the company, which is basically the 25%.
Next question comes from Giuliano Ajeje from UBS.
The line of PPP increased with the project Microrregião two and three now fully operational. What is the run rate expected in 2026? At what point the increase year against year should normalize inflation? What is the expected gain of its operational efficiency in the next 12, 24 months as a result of this partnership?
Thank you, Giuliano, for your question. We have to remember that the two micro-regions that were object of bidding of PPPs, they were enforced in 2025. In fact, we only have the comparison, a proper comparison as after the 12-month period, in other words, as of 2027. We make all our projections of investment plan, cost projections, take into consideration the contracts that were signed or the four contracts, the three micro-regions that were put in practice next year.
The operational gains, they are the result of a PPP person about sewage, 128 municipalities. Of course, when we see the increase in the account of third-party services, we have to remember that PPP is reported as third-party service. All the issues with chemical material, electricity. We have all these issues of other accounts, they suffer the benefits of this model that goes to PPP. So I would say that we are in line with what was planned, whether it is due to the installments we paid and the results are of an operation done by the PPP company.
Thank you. This is one more question by Giuliano a bout the fall in industrial waters. Does it reflect migration of customers or what is the structural perspective for the industrial segment?
Our perspective is to keep our service the way it is being done and in a proper way. There is no movement, extraordinary movement in the issue of migration. Where we work in the line of innovation, new business, the possibility of reuse of water with a source, complementary source of income. We understand that this needs to be pacified together with the precatórios issue, since part of these resources that come from this additional revenue, additional source, they are directed to this. This is being done. Any assessment to reuse of water, we have to understand what is the CapEx necessary to make for this water to be transported to this industry.
Sometimes the demand might attract, as be attractive as business, the investment necessary for this kind of transportation of water, sometimes it does not pay off, does not bring any reasonable payback. That's why it's necessary a lot of responsibility, in dealing with this issue. Of course, this is an object of our new businesses within our plans of new businesses. This is very well orchestrated and being worked on.
Our next question comes from Wesley Araujo , an investor.
Considering that the company reduced drastically its leverage 4.7 x the net debt and how does administration plan to balance the CapEx to universalization of sanitization with the immense or increase of payout of dividends, given the scenario of higher operational costs with the new PPPs?
Thank you, Wesley, for your question. First of all, let's point out that the leverage is very low, 0.7%. It reflects the cash flow that is reserved, which is the precatórios issue, that it will be utilized, whether it is to for the tariffs, for the company. We have to see that we have a liability and this money will be reduced for this purpose. Concerning our policies of investment and payout of the dividends, we always follow what is determined in the business plan. Obviously, we review it annually in the sense of always aligning it with our horizons. We are very comfortable today to say that what is within the financing contracts, we keep a safe leverage to pay all our expenses. We make a projection of payout. Of course, this is not public.
The company does not publish this projection, always with an economic balance and including our accounts, all they need for resources like payments of PPPs which are hired.
Thank you. The next question comes from Luis Alves , an investor.
Two questions. The first question, how is the Miringuava Reservoir, when the levels of this reservoir will be divulged? The cost of personnel post-PPR was well explained by the Director. My doubt is whether this is the next level that should be kept by the company.
Two answers. This Miringuava Reservoir, we had an expectation, more a positive expectation. We thought we would have the filling out of the reservoir more quickly. We closed the dams. On the December last year, it was a good decision.
The accumulation of water due to the climate did not exceed 5% to 6%, but it was enough for us to use the margin during some periods for us, together with the lack of water, to give normal flow for what we need in Miringuava Treatment Station to make the distributions. There were moments. We had a good flow although this reserve is small, but it gave us some comfort, and we had no negative problem. Our expectation is very reasonable. We are working with Sanepar. We to monitor this new reservoir and to bring this into a new partnership we have with people from Sanepar and to show you investors what is the percentage of filling out and the reserve in this Miringuava reservoir.
This will be personalized in the next few days, next few months. As long as we have the accreditation of the information that we are receiving. The rains of last year filled the reservoir and we are expecting some rain for this year than what El Niño is bringing. We will see full capacity in Miringuava. All the works necessary for vegetation suppression and pavement to bring accessibility, access to the local for the residents. Prior to the dams, they were all personalized, and they were delivered. The dam is expecting to receive rain to fill its capacity.
Good morning. One information for your knowledge. On one day of rain from Tuesday to Wednesday, we had a full additional volume of 120,000 M to our reservoir in Tatuquara. We had 121 L. To fill the reservoir, we need much more, we need time to fill it up, fully fill it up completely.
About the second part of your questions about costs with personnel, the movement of PDV, which was the voluntary severance program. 127 employees left through this program. It's important for the employees because they leave with dignity. Upon hiring new employees, of course, the cost is reduced. Our analysis for the future concerning hirings depends first on the need, on the operational needs of the company to have new workers.
We have to remember that the company has been growing in its operations, so we need to serve the population well. But also, we also need sometimes to outsource some services. It's something that might be more advantageous for the company. I would say that there is no decision of hiring people that will impact the numbers of the company. Nothing will be done without a thorough analysis. Recently, we went through this salary negotiations with the unions, and we approved with all the unions a new adjustment, salary adjustment that brings some predictability, that comfort for the numbers and for the company to include in its budget.
Next question comes from Wesley Araujo, an investor.
What is the company strategy to mitigate the increase of 10% of electricity, considering that the sewage treatment is demanding more electricity?
The issue of the free market, our expectation is that the free market can keep this decrease. When we were not in the free market, of course, the issue of the price is not the price applied at the time of the implementation. We are making all the efforts necessary, all the analysis, very thorough analysis for the acquisition of energy in the free market. This corresponds to 90% of our consumption and 10% only of our consumer units.
As for our expansions, we are studying, and we will leverage and accelerate this study for us to be able to have other alternatives not to be in the current market and have a reduction that is not followed by these adjustments that are authorized by the ANEEL agency. Our expectation is the continuity in the free market for us to be within these limits. Of course, there are other initiatives, like thermal combustion, which are applying in Londrina and here in Curitiba. We are studying at every step with technology and innovation the possibility of reducing these costs that impact a lot our expenses.
Thank you. Next question comes from Guilherme Barbosa Padoan from Atena Capital.
In the line of provisions of results, the expenses acknowledge of is net of the quarter of payments or reversions. I see a lot in payments and I want to see if this amount is in the profit and loss or it is in the write-off liability.
Thank you. I will hand it over to Ozires for him to clarify this issue.
Good morning. Thank you, Guilherme, for your question. We have an explanation, and we have a table that brings the breakout of the provisions, and it is net of the payments. We have to remember that any provision that has judicial deposit when it is written off, we have provision and then it brings impact in the two lines. It makes sense, your observation that it's net, it's reported as net.
One question from Luis Alves, investor.
The level of readjustment is below inflation. Sanepar understands. Does Sanepar understand that this index was fair?
Hi, Luis. Yes, the readjustment given by Agepar, which will be enforced now in of 2.4%, is in line with what was calculated by the company. It reflects basically two indicators. One is the issue of IPCA of 4.6%, the other is the electricity cost, which had a reduction last year. That's why an indicator was below the inflation. It's in line with what was calculated and requested by the company.
Thank you. I would like to reinforce that to ask questions, you should use the icon Q&A at the bottom of your screen type in your question to join the queue. Our next question comes from Pedro Nirschl, SulAmérica Investimentos.
Does the company gain anything gained from the energy, the energy saving or this is translated into.
Yes, the company in the reduction in the, in the free market compared to the current market, it retains 25% for its company and 75% goes for the benefit of the population.
Now we close the session of Q&A question, we hand over to our, we hand it over to Abel Demétrio, our Chief Financial and Investor Relations Officer.
Thank you for your participation, I hand it over to our CEO for his final considerations.
I thank you all. I think you could see the good result of the company and the trust you can have. It's a management that follows the governance policy with a lot of responsibility, transparency, which makes the company what it is.
The biggest company of sanitation in the country. The expression I would like to leave as final message is that trust should be kept, we are making all the necessary efforts within our possibilities for us to be able to keep this space of investment, of service and quality and efficiency in the services which is essential to all the community. We bring not only sanitation, we bring public health as our biggest purpose. Thank you all.
The earning results of the first quarter of 2026 is concluded. Thank you for your participation, have a very good day.