Knight-Swift Transportation Holdings Inc
NYSE:KNX
Knight-Swift Transportation Holdings Inc
Knight-Swift Transportation Holdings Inc. is the result of a transformative merger in 2017 that brought together two of the largest players in the North American trucking industry: Knight Transportation and Swift Transportation. This unification forged the industry's most extensive network, seamlessly connecting shippers with a diverse range of logistics solutions. Operating under four primary business segments—Truckload, Logistics, LTL (Less-Than-Truckload), and Intermodal—Knight-Swift ensures an integrated approach to freight. Its vast fleet of trucks and trailers, alongside its sophisticated logistics strategies, enables the company to transport goods efficiently across long distances, catering to the dynamic needs of various industries including retail, manufacturing, and agriculture.
The company generates its revenue primarily through its Truckload segment, where it offers services such as Full Truckload (FTL) solutions, dedicated truckload service, and temperature-controlled logistics. Additionally, Knight-Swift benefits from its Logistics and Intermodal segments that capitalize on asset-light strategies to optimize freight management, brokering, and delivery. By integrating technology into its operations, Knight-Swift enhances fuel efficiency, routing, and load planning—reducing operational costs, increasing reliability, and subsequently enhancing profitability. This blend of traditional trucking with innovative solutions positions Knight-Swift as a stalwart in the transportation sector, matching operational excellence with expanding service capabilities.
Earnings Calls
In 2024, the company experienced a net profit growth of 8.8% and EBITDA increased by 3.9%, reaching BRL 2.937 billion. The EBITDA margin remained stable at 42.9%. Notably, investments surged to BRL 1.911 billion, focusing on water and sewage expansion, leading to 90,000 new connections. Operationally, billed volumes grew by 4.2% for water and 5.6% for sewage. Default levels improved to 0.7%, continuing the positive trend. With net debt at BRL 4.831 billion and a leverage ratio of 1.6x, the financial position appears robust, supporting ongoing growth and sustainability initiatives.
You don't have any saved screeners yet
Good morning, everyone. Thank you for joining us today. Welcome to the video conference announcing the results of the fourth quarter 2024 for Companhia de Saneamento do Paraná - SANEPAR.
For those requiring simultaneous translations, this feature is available on the platform. To access it, simply click on the interpretation button indicated by a globe icon at the bottom of the screen and then select your language, Portuguese or English. For those listening in English, you also have the option to mute the original Portuguese audio by clicking Mute Original Audio.
Please note that this video conference is being recorded and will be made available on the company's Investor Relations website at ri@sanepar.com.br, where the full earnings release and presentation materials are also available. You can download the presentation from the chat available in English.
[Operator Instructions] We recommend submitting all the 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 the 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 those expressed in forward-looking statements.
I'll hand over now to our Chief Financial and Investor Relations Officer, Abel Demetrio.
Thank you, Rodriguez. Good morning to everyone for participating in our video conference for the presentations of the -- presentation of the fourth quarter of 2024. In this video conference, we have our Director, Wilson Bley. I will hand over to him very soon for his initial considerations; our Administrative Director, Fernando Guedes; our Investors Officer, Leura Lucia; and the Accountant, Ozires Kloster, besides the people from Investor Relations team.
So for the introductions about the results of 2024, I hand over to our CEO, Wilson Bley.
Good morning, everyone. I'm here on a mission by the government of the State of Paraná, but I wanted to participate to share the good results of 2024. It was a hardworking year of positive results. And those you will see in the presentation that our Financial Director will present to all of you. The 2024 year brought some additional challenges. We managed to consolidate our clause of barrier was legal. And for that, we signed our 4 PPPs, kicking -- so pushing to the achievement of results of universalization in an advanced manner, not to reach 2023, but perhaps before this date, which is determined by law. This is our objective.
The objective that is traced by a strategic planning, very well structured, an investment plan. We started BRL 11.8 billion in the next cycle of 5 years and results that are extremely reasonable. Last year, we invested almost BRL 2 billion in works, in construction works. And this number is related and multiplied several times. So we are on a very accelerated pace. The licenses that might be obstacles in the past, today, they are flowing within normality. So this causes us to be able to plan, execute and have the hope, which is what we want to have that before 2032, we will reach universalization. The results, financial results were excellent.
More than BRL 1.545 billion in operational results, net result. This is a very good result. It breaks a volume of money supported together with the possibility of leverage that we have of being able to enable the accomplishment of our investment planning, our strategic planning. Innovation is something that motivates us a lot. It's something that today, I'm here in this prospection of new lines of innovation.
We had great advancements, and this caused us to diminish some costs, especially in the issue of energy. And now this is improved in our raw material, both in the treatment of water supply, and sewage is the big challenge. It's constant -- involves constant work. But be sure that all the Board with extremely adequate governance within the norms of compliance are accomplishing the best, doing their best, causing the results to be these ones: to bring excellence in the work and also the relevance of having a public company that is the largest in the Brazil and the best in Brazil.
We recently received an international award as best company -- sewage company -- sanitation company in the world. This makes us very proud of this recognition, which proves that we are on the right path, on the path of projection and advancement. The future awaits good results, and this is what will be presented to us -- to all of you today. Thank you very much. I apologize for being on this mission, but this is extremely necessary for us to be able to prospect not only innovation lines, but also new markets, bringing SANEPAR as a reference, the best company of sanitation in Brazil.
Thank you, President. So now we can start our presentation. So initially, we'll start about the highlights of 2024. We had on the fourth quarter 2024, an increase of net profit of 4.7%. In 2024, the net growth was 8.8% compared to the same period of last year. The EBITDA increased 42.8%, reaching over BRL 7 million. In 2024, there was an increase of 3.5%. In 2024, we had 13.2% of increase, reached over BRL 400 million. And in 2024, there was an increase of 2.48%. What is important is the issue in the market, the increase in the market. In 2024, we had an increase of 34,600 new water connections and also an increase of 67,800 sewage connections.
And we kept the universalization of water with 100% of service. And in sewage, we reached 81.4%. We have to remember that the company treats 100% of the sewage collected. So rounding up the numbers, we need 8.5% to reach the 90% demanded by the new legal framework of sewage. The EBITDA was 42.8% and in 2023 was 42.9%. As the President said, recently, the investments in 2024 reached BRL 1.911 billion, close to the BRL 2 billion, and still the company managed to keep very reasonable leverage levels. On the fourth -- on the third quarter, besides 2024, which we received important awards among them, the one mentioned by the President, the ANEFAC Transparency Award.
And in the next slide, we'll talk about the operating results of the company. We have a measured volume of water increasing 4.5%. It was growing a lot in the previous year, 5.4%, which shows the recovery of the volumes measured after the water crisis. Now the consumption is more normalized and the billed volume increased 4.2% in 2024. We had an increase of economies. We talked -- we had an increase of 43,000 economies, an increase of 5.5% compared to 2023. Concerning sewage, the measured volume increased more, 6.1% in 2024. Again, 2023, they had grown 7.5%, quite representative number and the billed volume increased 5.6% this year. It was a good level, representative level followed by the volume collected close to it.
The connections increase were 90,000 new economies -- economic units increase, which is important for universalization and so this is where investment is planned. About default, it was 0.7% in 2024. And for the second consecutive year, we managed to bring default to good levels. Remember that 2023, we had the recovery of credits due to the fact the company was not cutting water due to the pandemic and et cetera. So it's a second consecutive year of very favorable results. About default, I want to mention that AGEPAR, our regulating agency, also made a public consultation and other people also contributed. And it is in the first moment -- defining waging, which is a -- that default around 4.64%, 4.65%. This is after the period of 5 years.
It uses the metric between the 49th and 50th month to show that our default is adherent, especially concerning the metrics of the agency concerning what returns as tariffs. So the loss -- the losses per liters and connections is 223.1 liters, an increase of 2.5%. And the justification is that at some points of the year, we had some moments in great part of the state where the volume -- we had heat waves and the system were working obviously closer to the limit to meet the demands of water. And of course, the more pressure, the more the networks are pressured, and this is one of the reasons why we had the losses above the registered in 2022.
Next slide, we will see the reservoir levels, something that was seen at the end of 2023. It's quite stable. The fourth reservoirs that serve Curitiba and all the cities, we had a lot of rain and the rains allowed the reservoirs to keep their levels at 100%, which is important because it brings us a horizon of tranquility, at least in Curitiba and the cities nearby. We have to remember that we have the fifth reservoir, which is being executed by the company, which should reinforce all this capacity of storage of water, which is a product that is so indispensable for the supply -- for the population supply.
In the next slide, I would like to go through indicators of performance of the company, remembering that the company obviously needs a lot of capital from the market. So we have debentures in the market. So we have the debentures like which are today active from the 9th through 14th issues. These debentures, they have restrictive clauses. There are 2 of them, which is the net bank debt by adjusted EBITDA, EBITDA. It has to be lower or equal to 3. And in 2024, we reached 1.76x, so which we met what is determined. The adjusted EBITDA by net financial, it has to be bigger or equal to 1.5, and we have 9.3, so this is a good indicator. So the debentures of the market are being met, fulfilled by the company.
Besides the issues, we have the issues to the systems of sewage, which are natural -- in net financing BNDES that finance the country, the direct financing due to the private debentures. It also has covenants to be met. In this case, net bank debt by EBITDA has to be less or equal to 3, and it is 1.64. EBITDA by debt service coverage ratio bigger or equal to 1.6, and we have 2.68. And other onerous debt by EBITDA, which has to be less or equal to 1, and we have 0.39. Other onerous debts are all those obligations the company has in the face of the health, social security and other installments of debts or payments that have to -- all this amount cannot exceed the EBITDA of 1x, which is a limit, but we have good numbers here.
We also discussed BNDES, the CAIXA contract, which is a good partner of the company in the search for bringing sanitation to the population. We have covenants in Caixa Econômica Federal, which differs from the ones I mentioned is that the last item, other onerous debts, it's by adjusted EBITDA, and we have 0.42 at the end of the page and which is a little higher by the EBITDA, which is 0.39 as we saw in the contract in the BNDES. But less than half of the possibility the company has of other -- of this account.
And the next slide, we will see that we have KfW contracts. We have some resources released in 2024. It's a contract quite important because it's part of several works for improvement in the systems, improvements of the treatment of water. So we are on an advanced phase. And in this contract, besides what I mentioned, we have the level of debt, which has to be 60% maximum. But as we see the level of debt at the end of 2024 is 47.2%; last year, it was 48.2%; and 2022, 47.2%. So this shows how linear the company's operation is and this search of finding balance in our accounts.
Some indicators, EBITDA margin, 42.9%, ROIC annualized 11.4% and ROE annualized 15%, a small variation compared to what was reached in 2023 and a little higher than 2022. So it shows a sequence, which is quite linear in terms of indicators of the company, which is important in the sense that it shows the company has no surprises in its operations. And they do not reflect, obviously, in the indicators of the company as we see in other scenarios.
Now let's talk about financial performance of the quarter. We had an increase of net revenue of 4.7%, reaching BRL 1.776 billion, and it was a little lower than what we saw in 2023. Annualized, the net revenue increased more, but we can see that in 2023 in the fourth quarter, we had an increase, which was 15%, quite high. So obviously, the comparison -- comparative base in the net revenue is really linked to the increase that was higher in 2023, not necessarily the result of 2024 was below. That does mean that EBITDA increased 5.2% on the fourth quarter, reaching BRL 760 million with an EBITDA of 42.8%, in line with the EBITDA of last year of the fourth quarter, which was 42.6%. Our net profit speaking of the quarter was BRL 413 million with a margin of 23.2% and an increase of 13.2%.
The operating cost and expenses of the quarter was marked by a level manageable, more manageable, which the company or searched in the sense that it can be efficient, not higher than inflation because we know that we have all the regulation context we have to follow. But the fact is comparing the fourth quarter of '24 with '23, the increase was 4.4%, reaching BRL 1.017 billion.
Now in the next -- we have the accumulated and financial performance. So here, the net revenue shows an 8.8% growth, reaching almost BRL 7 billion, BRL 6.848 billion revenue. EBITDA was BRL 2.937 billion, an increase of 3.9% and the margin of 42.9%. Net profit and net margin BRL 1.545 billion in 12 months with a margin of 22.6% and an increase of 2.8% annual. Operating costs and expenses increased 12.9%, what we showed in the previous slide and the quarter was more -- was better, reaching BRL 3.912 billion of costs and in the expenses, those that have impact in our EBITDA and, obviously, excluding the issues, the financial lines.
Now next slide, we are going to go through the cash generation and EBITDA conversion. It was the best conversion in the past few years with 94.5% conversion. Our cash generation was BRL 2.775 billion. It's an increase of 16.5%, recovering the -- bringing result in the cash very close, which was generated in EBITDA. The net debt and leverage, we continue with the profile of debt quite favorable in terms of distribution in time. We have debt in the short term, which in the 12 months, BRL 585 million, is something that, let's say, is quite within our planning. It's nothing that is very significant compared to last year. The long-term debt, BRL 6.47 billion and total debt BRL 6.632 billion.
Well, we had cash and equivalent at the end of the year, BRL 1.801 billion, an important cash because we have an expressive volume of investment planned for 2025 to 2029. At the end of '24, we had a net debt of BRL 4.831 billion higher than the BRL 4.493 billion at the end of 2023. But in terms of leverage, it was equal to the level of 1.6x. The weighted average cost of debt here representing all the money brought by the company. We had a positive here, although now we have an increase in Selic that impacts the cost of all the companies. There are indicators linked to Selic and CDI, but in 2024, it was 10.7% our weighted average cost of debt.
And this debt is not all concentrated in one indicator. We have, for example, 1/3 of the debt, 33% connected to TR, which are fixed interest of resources of [indiscernible] in the TR index. So we have around 28% linked to IPCA, which is the official index of inflation and linked to the high indicators of market interest, 27% besides other smaller numbers like loans, IPC. So our CapEx is BRL 1.9 billion, representative number, 36% being applied in water, 57% in sewage and 7% in others, other investments. So when we look at the 3 years -- past 3 years, the investments are quite robust. 2023 and 2024 were close to BRL 2 billion, and the company has been showing an increase in its investments.
Besides investments, the company always is very careful with sustainability. In 2024, the company spent over BRL 1 billion in works, construction works close to what was mobilized. These are amounts. It's not all the works that were mobilized, but the stock of previous works that was mobilized. They are important because the regulatory metric is the immobilized works, so there is no point having works being built, but they don't make the base for the company to have the resources through the tariff to continue making other investments.
So that -- it was good work on our part by the Board, especially the investment group, counting with the Operations Board, which has a lot of volume of works and the accounting area represented by [indiscernible], which was very important in the sense that 2024 is the base year of our tariffs. There was a lot of effort so that the reports were issued and the company managed to make the mobilizations. And more important is the issue is to make the assets in operations because it's important in the sense that the more time they are being used, the more gains they bring to the company and the society as a whole.
In the next slide, we will talk about income statement as we will see the numbers in the quarterly results in more detail. So the net revenue increased 4.7%. The personnel cost was 5% growth compared to the same period of last year, in line with the salary readjustment and other additional costs that obviously impact the cost. Material increased 0.4% in the period -- in the quarter. It's also a growth close to 0. Electricity growth 11 -- there was a reduction of 11%. And this is a result of some work of migration for the free market. So we expect this migration in 2025 to bring better results, even better results. In 2024, we had an economy due to migration of free market of BRL 63.8 million against the BRL 50 million estimate.
So we exceeded our expectation -- initial expectation of savings with electricity in 2024. The third-party services, 25.8%. These are contracts of long-term contracts, maintenance contracts, operation contracts. Obviously, they cannot have an impact from one quarter to another because the maintenance of the company and the operations aligned with the growth of volume, they need -- they require an operational cost. General and tax growth increasing 28.4%. Provisions with 142% with a reduction of 89% and financial expenses was a positive account reduction of 16.7% and other costs and expenses increasing 24.8% as a result of depreciation, more mobilizations for depreciations of works, but also provisions for losses that 2024 were higher compared to the previous years. In the quarter, the total -- it was 13.2% the net result, and EBITDA an increase of 5.2%.
In the next slide, we present the accumulated results of the year 2024. So again, in this case, the net result increased 8.8%, personnel of 20.3%. It shows that besides the readjustments in salary and also the settlement of judicial things, that's why the reflection is so positive. And effectively, it becomes an expense in personnel. So that's why we have this effect in personnel account, but the returns was in provision material, we had a reduction of 2.4%. So looking at the growth of volume produced in terms of water and the sewage still the account of material had a reduction of 2.4% when compared to 2023. So the main item that brought down this account was the treatment material with a reduction of 6.2%.
Electricity in the quarter, we had the effect of the free market. In the year, we had a growth of 4.9%, which would have been higher hadn't we migrated all the operational units to the free market because we had a red flag in many months and some flags, not the green ones in 2024. And general and taxes increased to 62.8%, some judicial actions, which we had to pay, like, for example, we have to remember the issue of the accident in Ponta Grossa, BRL 3 million; some condos on the coast that we had to pay some compensations. And in this account, we have funds, environmental funds and due to the growth of revenue, the municipalities receive more funds, even the tariff of regulation, they take into consideration the revenue. So this is a reflection of general and taxes.
The provision had a reduction of BRL 240.9% in 12 months. So we had a reversion of provision of more than BRL 238 million. The provisions for health care and social security had a reduction of 19%. Financial expenses, revenues, it was an account, which was quite favorable for the company. We spent less. We had less expenses than in 2023, a reduction of 8.8%. And other costs and expenses increased 78.1% as a result of the 2 main accounts I mentioned, the depreciations and provisions for losses. The total cost and expenses for the year had an increase of 11.7%, including the financial issues. There was an increase of 2.8% as a net result in the year. EBITDA increasing 3.9%.
In this slide, we will go through the balance sheet. We have the net debt with an increase of 7.2%, reaching BRL 5.148 billion. The accounts that made up the cash and cash equivalents, financial investments, especially the financial investments, it increased 42.8% and the loans, financing and debentures increased 14.8% and dividends and interest on equity increased 3%. Operating working capital, the result was positive in the year. We reduced our operating working capital to BRL 859.892 million (sic) [ BRL 859,892. ] And the highlight is the accounts receivable from customers, which was BRL 1.411 billion against BRL 1.531 billion in 2023, a reduction of 7.8%. Other assets and liabilities increasing 8.1%. So we had a reduction of provisions of -- a reduction from BRL 689 million to BRL 852 million, so we had retirement and health care plans.
An important account was the contract assets that show assets of BRL 2.777 billion. So these are the ongoing works. The company is executing. And as they are finished, concluded, they are delivered for new work. So we see stability here as a result of this work of mobilization. So this account increased only 0.6%. And we continue with the mission of concluding the works and putting them to work. And the fixed assets, we have BRL 10 billion -- the net equity over BRL 10 billion and the operating working capital turnover versus the net equity, 45 days. It's the best result when compared to the year of 2022 and 2023, which had more days of rotation of their operating working being 47 and 55 in the previous years.
Now let's talk about the cash flow of the company. We had in 2024 operating activities increasing 16.5% as a result of the net profit adjusted in the assets and liabilities accounts. So it was quite a significant increase. The investment activities consumed almost BRL 2 billion, so thanks to the availability of cash flow and the financing activities consumed BRL 350,514,000. It has a reduction compared to 2023 of 10.2%. And thanks to loans and financing in 2024, we managed to obtain BRL 1.233 billion. We paid dividends, interest on equity payment, financing payments, almost BRL 971 million paid to our creditors. Leasing payment BRL 124 million and other variations with BRL 84,749,000. So we had -- in 2024, we had an increase of BRL 515,599,000, which causes us to be a cash flow to exceed BRL 1 billion -- at the end of the period, BRL 1.8 billion. So this was the presentation of the results of the quarter of 2024.
So I hand over the word for Rodrigo for the possible question and answers. Thank you, Rodrigo.
[Operator Instructions] Our first question is from [indiscernible]. Two points. Number one, the financial result in line of other expenses, we had an important reduction compared to 2023. Could you explain? And what do you -- what should we see as recurrent in this line? In the expenses with third-party expenses, we see a significant expense. I would like to understand why this increase happened and if this is a recurrent behavior that we should expect in the next quarters?
Thank you for your questions. In the issue of financial issue, we had in this account, the issue of the exchange rate, the company is not exposed to the foreign currency in its financing in the KfW investment since that is -- it's in Europe, the company makes a hedge, which is equivalent to DI. This brought at the end of 2024 due to the appreciation of real in face to dollar, a value -- favorable valuation. So we even -- so this was one of the components. Another issue is that this year, if I'm not wrong, we had a lower AVP than last year. Last year, due to the prolongation of contracts, the postponement of contracts with municipalities until 2048, the adjustment of assets that exceed the useful life of the contracts that were brought for the present value representing due to the increase of the deadline, and AVP higher than the realized this year. So these were 2 important elements.
Another issue is that the investments -- the company's investments follow connected to CDI, while -- so we manage -- in 2024, we managed due to our characteristic of debt, we saw that the average cost -- weighted average cost is lower than CDI, so this brings a positive margin in this financing account line. About the accounts of third parties or outsourced services, I will show you some accounts that had the main impacts. These are the accounts of maintenance and service accounts of buildings. It's significant because the company, she makes it a point to maintain a good service to the claimant -- good service to the client and making renovations for this kind of situations. So we have vigilance services increasing 25.6%.
For those who follow the company for several years, 1, 2 years ago, we had a series of robberies and this causes the stoppage of the system, especially in the water supply, causing problems to the population and, of course, taking out revenue from the company. So the company made some bids for security companies. And today, we have more points that are monitored with a better service of quality. So a charging service, also significant increase, 45%. In 2023, we did not have -- during all the year, we did not have the issue of cuts and reconnections at full steam. We have to remember the company was 42 months without making any cuts due to the pandemic and the water crisis. In 2023, we resumed the charges and the billing of the accounts, so in 2024 was a year that was compared to 2023, it is lower.
I would say that we go back to a level of normality. And the service of networks maintenance, it's one of the most important points of sanitation companies. These works, they demand interventions in sidewalks and streets, and we have to do this kind of work not to cause problems or accidents to the pedestrians. So we had an increase of 18.4% in the year in this expense as a result of an action of the company in the sense of bringing a better service. And the PPPs, which started operating in 2023 -- no, sorry, in 2024, it's an item that is around -- it's in the account of third-party services and it impacts due to the payment of the contracts for services. Some accounts, they could go back to a lower levels or more usual levels in terms of growth, which is the third-party outsourced services, like, for example, building maintenance works.
So after this renovation phase is over, so this -- we will go back to having this asset in an adequate use, so then we will not need maintenance all the year. But some maintenance is recurrent like the charging service, the company now after normalizing its operations, this is something that the company always does because this is important for the company to bring revenue and to make sure that there is no default or that the accounts are paid. So another point of maintenance of networks since we have an increase of our infrastructure, new treatment -- water treatment stations, more networks, more service, more clients. So the more the network grows, the more maintenance we have.
Now next question comes from Gisele Gushiken, BTG Pactual. Could you give us more details about the voluntary plan of resignation? How many employees adhered? What is the total estimate of indemnization of the economy that this will be generated, the savings this will be generated by the economy?
Thank you, Gisele, for your question. I will hand over to our administrative officer for him to answer.
During this week, we've concluded the adherence. The numbers are being added. We cannot talk about the numbers. We do not have the numbers right now. We will have the numbers next week, and we will be able to announce the numbers, and then we will be able to bring to the knowledge of everyone what is the saving. The saving expected to be reached with the effectiveness of this plan of voluntary resignation.
Another question from [ Antonio Marcus, law firm ]. He congratulates SANEPAR family for the results. And he questions the concession deadlines and its impact on the future results of the company, whether the intention of taking part in concessions in other states.
Well, answering your question, in 2023, the company had its contracts prorogated by the 3 micro regions in the state. It's a process conducted by our micro regions. So the contracts, they are due in 2048, so these are long-term contracts and -- which was very important because there were contracts that were due in very near 2024, 2025, 2026. And by the characteristic of the need of investment, the company, in some cases, did not manage to find financing because the financing agents, they need a contract that will guarantee the long-term, the payment of the debt.
So we were having problems in the hiring of contracts, and we could not sign many of them because the deadline was very short. So the issue of micro regions brought us an important point for the company. And with that, we could unlock new contracts, new investments and the company is making. And concerning the loss of concessions, the company has a contract sub-judice, which is -- represents 5% of our revenue, but the fact is that 95% remaining, they have long-term contracts and the company is right now comfortable concerning this issue of -- with the participation in other markets, the company -- we have to contextualize the company. At the moment, it's leaving. It's had a 100% of universalization concerning water supply. It's been universalized for some years. It's an important point.
We reached, as we saw, 81.4% with sewage. So our President mentioned that we intend to reach universalization at a faster pace than predicted in the legal framework. So we hired the PPPs that will give push in this -- the contracts with the municipalities that do not have sewage. And obviously, the company is a sanitation company. So this market in Paraná will be the first state in Brazil to meet the legal framework. And the company has no restrictions. So whether it's in this state, in other states or in other countries, so yes, I believe the company will naturally from the moment it has all everything addressed within the state of Paraná, she can look at new markets outside the state of Paraná.
Of course, looking at each case and always looking at the interest of the company, concerning the returns and the operational capacity. But I would say that, yes, in the future, the company might invest outside because we understand that this is a great company with a solid experience in operations and finances. So I think it's quite reasonable for the company to visualize other markets.
Next question is from [ Felipe Maciá ], investor. I see that the reservoirs in Curitiba are full. Is the situation extended to other areas in the state or there is any kind of drought in other areas?
See, the state of Paraná, we are suffering with the climate change, and it brings intensity of rain and many times drought. The water sector suffers with the 2 situations. Many times, excess of water also harms us, and we have difficulty in the treatment of the water. It comes with mud, with a lot of material, and that makes it difficult to treat it. In the state, we have some situations that happened recently of drought, of lack of shortage of water in -- and even in the region of Curitiba, some places, but especially due to excess of consumption, the high temperatures causes people to consume more, have more showers, use more water in their day by day. In Curitiba, we increased 25% of consumption of water.
Some regions like Lapa increased 33% of consumption. In Ponta Grossa, we also had a situation with an increase of consumption and this causes us to have to change the system, make some changes that cause some supply shortage in some areas. But SANEPAR is alert and this amount of investment we make is not only in structural works, but also emergency works, necessary work, utilization of water truck, injection of water in the network, generator use. When we have too much water, we have problem with lack of electricity and sometimes a peak of electricity causes a lot of problems in terms of resuming the system. So all that is being observed. We have action plans for each place where we try to act as fast as possible. In some situations, we cannot manage this without the client suffering the consequences.
But many times, as a result of situations when the user does not have a reservoir of water in his place, in his house. So we are trying to help the city halls in the sense that the poorer populations that have more difficulty with their own home reservoir that they are supported by SANEPAR, so that to prevent this from happening.
Rodrigo, taking advantage of our Administrative CEO here, 2 questions came here related to -- since the Director was Director of Governance and Compliance, I will hand over to him for him to answer these questions.
So the question is made in this regard is [indiscernible]. The question is about hiring of [ FIA ] for studies of viability to -- the building of a holding and other companies as a relevant fact -- as a result of a relevant fact published on May 23.
According to the question presented by [ Leandro, ] this deadline would have expired on February 11, so we come -- we want to say publicly that this contract signed with the [indiscernible] this detailed study about the viability of the building of a company -- holding company and other companies with the objective of segregating different units of SANEPAR has its deadline extended until April 12, 2025, as published in the official newspapers on January 14. And as a result of that, what caused -- what provoked this prolongation of this, it showed new possibilities of modeling, which are being evaluated.
Next question comes from Ricardo [indiscernible] Capital. Could you update about the process of the rate of payment? When will the company recognize the amount of payments? And what is the perspective of distributing this amount? Is there any possibility of destinating part of this result for CapEx? So these are Ricardo's questions.
So after 30 years of this legal dealings, finally, the company received the money and this write-off payment for this taxes was predicted to be received until December 22, but it didn't happen. There were some attempts by the leaders and, in principle, this is -- and there were some attempts to get this money in February, but this will not be happened. So we received information that probably in March 11, this money will be paid. So the company is following up the approval of these payments.
They are following all the payment of this write-off payment based on the budget of the company. And so this will demand some decisions by the company administrative, by the Board to decide on this team. We have to remember that we have issues to be overcome after this. So after all the process that will release this payment, we have accounting issues, regulatory issues, legal taxes issues. It's a complex topic. So it would be premature to talk about where to destinate this money. We have to remember that one thing is the inscription of this rate of payment in the budget of the union. But we also -- first, we need to receive this money.
So let's wait the next move, and we will always keep the market informed about the follow-up of this issue, considering how relevant it is for the company and the market. But the expectation is to have this money included in the budget of the union to be released in March, 2025.
Next question comes from Mario Roberto, Banco Safra. He brings us some points. First, when AGEPAR will conclude the process of revision of the regulatory base? And number two, we noticed a significant reduction in the line of retirement plan and health insurance. Could you comment on that? These are Mario's points.
Thank you for your question. I will answer the first question. The second, I will hand over to our accounting manager. About the third revision of the periodic, it is ongoing. We are -- we made -- there was a relevant fact on January 30, communicating that the company, the Board had approved the asset basis for AGEPAR, we -- on January 30, we sent it to the agency. It's an important point for the agency to be able to advance in its methodology to -- for the basis for the tariff of the third revision of tariff. The AGEPAR right now is making a series of diligences in its fiscal areas related to this report, which was hired by the company and also about the movement of the basis, the assets that were selected as a sample to be fiscalized.
It's -- this work has caused a lot of work for the company. It has been demanding a lot of questions. It's a rigorous work. This is what we can say that is being done by the agency. For the agency, I think, it's a strong work, all the issues related to inspections and the company is trying to answer all the questions raised by the agency. In terms of inspection, we continue this inspection of assets that were -- And about the ongoing -- the conclusion of the third RTP, we have to remember that we are anticipating it to be concluded by April 17, so we can reposition the tariff on May 17, which is when we have to -- when it is expected. The tariff is expected to be put in practice. And about -- so the meeting was called for February 25 for Tuesday.
And one of the themes is the analysis of the contributions received in the public consultation. The public consultation that talks about recoverable revenues, revenues and about other items. That how much SANEPAR has contributed, and it will define by the agenda. It is in the AGEPAR site about the methodology and the calculation for the third tariff -- the revision of tariff. So it is in the time line. They are following the time line in the sense that the tariff revision should be concluded within the deadline predicted in its time, in its schedule, which was -- which the agency disclosed. So whether it is financial updates and the agency, all the updates that required by the agency to conclude their work. Another issue, I will hand over to our accounting manager, Ozires.
Thank you for your participation, Mario, for your question. The health care plan, we have a liability. Looking at the health plan of the social security, we have BRL 380 million in the so health plan and social. So this is BRL 1.48 billion. And this is an obligation the company registered in its balance according to the norm, the accounting norm, which is the CPC that deals with the benefits post-retirement. So this balance has reduced if we compare to 2023. So basically, this obligation is brought to an independent calculation that calculates it for the company with all the process of audit. But basically, it was due to the fee used to -- the discount fee that brought this effect. So bringing us a lower obligation for 2024.
Next question comes from [ Felipe Maciá ], investor. Concerning [ Habi ] for third RTP, the number showed, is it concluded? Is it the final number in 2024 and about the unshielding of the basis by AGEPAR? Where do we stand there?
Felipe, thank you for your question. We have a relevant fact of January 30, where the company sent the report of the hired company and the updates of the movement of the basis of the shielded basis. Whether it is net or gross and second and third RTP, we had a [ DRR ] presented by the AGEPAR, company of BRL 20.2 billion. And a gross of BRL 2 billion -- over BRL 2 billion. So as a relevant fact mentioned is that this asset basis is positioned with immobilizations. In other words, all the works that were mobilized by December 31, 2023, but moved by the date base of December 30, 2024. So all the updates from '23 to '24, depreciations and payments all done in this work, the write-offs and the mobilizations of 2024, they were informed to the agencies, but they are not part of this amount.
Why are not part of this amount? Because we always -- since the agency publishes a technical notes, for the -- around 2024 with the work with the year happening, but the cut date is December 2023. That's why this is not -- it's not included. So it all depends on the date when they consider the accounts. So answering your question, the year of 2024, the mobilizations -- and this immobilization was BRL 1.913 billion in 2024. And about the accounting concept for the regulatory effect, we have to make some considerations like, for example, the administrative investments that they do not make up the basis as it was done previously. They have regulatory -- annual regulatory. We have to remove the donations, the solid residues that are not part of this issue of the asset base.
We are speaking about water and sewage and industrial water, for example. So these are some adjustments, some points of adjustments that are made compared to the mobilization number and accounted. And the level of use of -- so that we have to do in order to obtain a number that is a regulatory number. The agency received the numbers by the third quarter -- until the third quarter related to 2024. They were analyzed for the year of 2024. And now when the balance is published, the number is public, the company can add the information for the agency, sending the final numbers related to immobilizations and movements of these immobilizations related to the year of 2024.
So now we conclude the session of the question-and-answer session, and we hand over the word for Abel Demetrio.
I want to thank the participation of all of you in this video conference. And thank you for your questions, for your interest. And I wish you a year of 2025 to all of you who are here. So have a very nice day and a very nice weekend.
So have a very nice day.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]