O novo CFO da Aegea – e sua complexa missão

A Aegea recently unveiled Marco Rabello as its new CFO, bringing on an executive who previously headed the finance department at CSN. While Rabello is moving from the steel industry to sanitation, he faces a familiar task. According to a manager, Rabello has experience with a debt-ridden company. At CSN, Steinbruch is known for leveraging assets and reducing debt, culminating in the sale of the group's cement business to Huaxin.

Previously, Rabello worked in the finance department of former Odebrecht between late 2018 and 2022, during the company's recovery process and negotiations for private agreements to restructure over R$80 billion in debts. At Aegea, Rabello inherits a leverage ratio of 3.83x - or 5.98x if non-consolidated companies are included - at the end of Q3 2022.

The reduction of Aegea's debt load will be "his biggest mission," CEO Radamés Casseb told Brazil Journal. "The attraction of talented executives like Marco is part of a preparation journey for the next phase. The company has grown, capitalizing on auction victories. It's like an adolescent that has grown up. Now it needs to strengthen control process dynamics and solidify its portfolio."

Aegea grew from 3 million customers in 2014 to over 39 million today, and 29 to 892 municipalities serviced. In the period since 2019 alone, the company won 19 auctions out of 34 it contested. Rabello's profile fits the company's new phase. Shareholders - Equipav, Itaúsa and GIC - have injected almost R$10 billion in equity since 2021 to support growth and strengthen the balance sheet, but have recently become more cautious.

With over 60% of its debt indexed to the CDI and Selic at 13.75%, Aegea enters a phase of "focusing on the existing portfolio," according to Casseb. "This will naturally lead to a de-leveraging and recovery of the balance sheet over the next quarters," he said. This breathing space, according to the CEO, should also take advantage of a "structural gap" of between two and three years expected in the sanitation sector "until the birth of a new wave of projects."

Asked if Aegea could sell assets to accelerate the de-leveraging trajectory in the meantime, Casseb said "no option is off the table." Rabello will replace André Pires, who held the position from 2020 to 2026 and resigned three months ago to become a consultant for Equipav. Pires combined with the growth phase of the group after leading the finance area of Gerdau between 2004 and 2015, times of expansion and M&As, and Ultrapar between 2015 and 2020.

Rabello arrives at Aegea at a more complex moment, with high interest rates and operational challenges in the company's projects. One risk he will face is the impact of inflation on concessions, capex and PMSO, according to a manager. In this context, the CFO's mission could be supported or pressured depending on the paths of Brasília.

In recent weeks, since President Lula's re-election, the dollar has risen, as have market inflation projections, and the Central Bank has paralyzed the gradual reduction of the Selic that had been occurring since the March Copom meeting. For the CEO, high interest rates leave investors more cautious and apprehensive, but "that is temporary."

"After the election, I think everyone will believe in Brazil. We will focus, work. Infrastructure is a long-term."