AySA achieved an operating surplus after 17 years and is heading toward privatization.

The state-owned company Agua y Saneamientos Argentinos (AySA) recorded an operating surplus of $48.288 billion at constant prices in 2024, marking the first positive result of this kind since its renationalization in 2007.

This economic milestone, resulting from a strong tariff adjustment and improvements in operational efficiency, paves the way for the privatization process promoted by the national Government.

"For the first time in almost two decades, AySA not only covered its operating costs without state assistance but also caused surpluses", official sources highlighted.

From chronic deficit to sustained surplus

The improvement in the balance is mainly explained by a 317% increase in tariffs during 2024, along with debt regularization plans and a significant drop in user delinquency. Revenues went from $519.378 billion in 2023 to $907.353 billion in 2024.

This was accompanied by a reduction in operating expenses, which decreased from $690.063 billion to $638.116 billion. This adjustment allowed for a notable improvement in gross profit, which tripled: from $145.796 billion in 2023 to $446.104 billion in 2024.

"The net result took a decisive turn, going from a loss of $382.859 billion to a profit of $48.288 billion," reported from AySA.

The Government's strategy: efficiency and openness to private capital

The financial improvement was key to strengthening AySA's appeal to private investors. The Government is working on a decree that enables the partial sale of the company, under a mixed strategy: a smaller portion will go to the Stock Exchange and another will be offered through public bidding.

Currently, the national State owns 90% of the share package, while 10% belongs to the employees. That percentage will not be included in the sale process, nor will the company's physical assets (land, machinery, vehicles), which will remain state-owned.

Path to denationalization: three stages of transformation

The privatization of AySA is part of a Management Model Optimization and Transformation Plan, initiated in 2024 and divided into three phases:

• Takeover and tariff adjustment
• Operational regularization and resource efficiency
• Stabilization to achieve financial independence

This scheme allowed the company to operate without Treasury contributions, an unprecedented situation since its renationalization.

A further step in reducing the State

Within the framework of the Ley Bases, AySA is one of the companies authorized for partial privatization, along with Belgrano Cargas, SOFSE, and Corredores Viales. The process also contemplates the total sale of Enarsa and Intercargo.

"We want to ensure that this company is not renationalized again. Incorporating private investors is a way to institutionally shield it," they emphasized in the Executive.