Estre Ambiental, Inc. announced unaudited consolidated earnings results for the six months ended June 30, 2018. For the six months, the company reported revenue from services rendered of BRL 708,997,000 against BRL 671,405,000 a year ago, strong growth from Commercial and Industrial clients (+39.3%) and Value Recovery (+17.6%) together with the impact of the consolidation of 100% of Soma's results  drove this increase as well as the commencement of operations of new small-sized municipal contracts delayed from the second half of 2017, with a positive impact on the company's Public Collection and Cleaning Services (+7.5%). These factors combined with resilient Landfill operations (+1.4%) more than compensated for the change in the Oil and Gas (-33.2%) segment. Profit before finance income and expenses were BRL 50,077,000 against BRL 44,477,000 a year ago. Loss before income and social contribution taxes were BRL 22,368,000 against BRL 273,905,000 a year ago. Loss for the year from continuing operations was BRL 133,285,000 against profit for the year from continuing operations of BRL 103,374,000 a year ago. Loss for the year was BRL 119,610,000 against profit for the year of BRL 105,309,000 a year ago, this decrease was attributable to several isolated events occurring in both periods, associated primarily with our participation in the tax refinancing program offered by the Brazilian Federal Government in 2017. Loss for the year attributable to equity holders of the parent was BRL 117,275,000 against profit for the year attributable to equity holders of the parent of BRL 105,027,000 a year ago. Basic and diluted loss for the period attributable to equity holders of the parent was BRL 2.5698 against basic and diluted profit for the period attributable to equity holders of the parent was BRL 2.3014 a year ago. Basic and diluted loss from continuing operations attributable to equity holders of the parent was BRL 2.7430 against basic and diluted profit from continuing operations attributable to equity holders of the parent was BRL 2.1274 a year ago. Cash flow provided by operating activities was BRL 698,000 against BRL 51,581,000 a year ago. Acquisition of fixed assets was BRL 49,777,000 against BRL 36,210,000 a year ago. Acquisition of Intangible asset was BRL 1,360,000 against BRL 5,014,000 a year ago. Total net debt was BRL 1,993 million against BRL 1,956 million a year ago. Adjusted Net Income from continuous operations improved from a loss of BRL 15 million in first half of 2017 to a loss of BRL 3 million in first half of 2018. Adjusted EBITDA before allowances for doubtful accounts increased 2.7% to BRL 184 million in first half of 2018 vs. BRL 179 million in first half of 2017 with a margin of 25.7% in first half of 2018 vs. 26.6% in first half of 2017. This reflects, among other factors, increased competition in bidding for new contracts as well as higher corporate costs to operate as a public company. Adjusted net profit of BRL 10 million, compared with an adjusted net loss of BRL 13 million in the prior-year period.

The company anticipates that revenues for the full year will be flat, with Adjusted EBITDA margins in the mid-20% range. Results will reflect the full-year benefit of new municipal collection contracts that came on-line in the second-half of 2017, the full-year effect of public company expenses and the impacts of the Soma contract in the second half of 2018.