Pursuant to Rule 13a-16 or 15d-16 of the
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 322-3535
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____FOR IMEDIATE RELEASE
COPEL ANNOUNCES FIRST HALF 2006 RESULTS
Curitiba, Brazil, August 14, 2006-Companhia Paranaense de Energia- COPEL (NYSE: ELP / LATIBEX: XCOP / BOVESPA: CPLE3, CPLE5, CPLE6), a company that generates, transmits, and distributes power in the State of Paraná, announces today its operating results for the first half of 2006. All figures included in this report are in thousands of Reais and were prepared in accordance with Brazilian GAAP (corporate law).
HIGHLIGHTS |
- COPEL’s consolidated financial statements present, in addition to the figures of the wholly-owned subsidiaries (COPEL Geração, COPEL Transmissão, COPEL Distribuição, COPEL Telecomunicações and COPEL Participações), the figures of Compagas, Elejor and UEG Araucária.
- On April 13, through Order 769/2006, Aneel approved the constitution of guarantees by COPEL in order to guarantee the agreement concerning gas purchases for the Araucária Thermoeletric Plant (UEG Araucária). As a result, the Company reversed the payable overage. The final effect of this reversal totaled R$ 424 million.
- Net Operating Revenues: R$2,605 million - 11% up on the same period in 2005.
- Operating Income: R$1,212 million, versus R$ 322 million in the 1H05.
- Net Income: R$740 million (R$2.71 per thousand shares), versus R$197 million in the first six months of 2005.
- EBITDA (earnings before interest, taxes, depreciation and amortization): R$ 1,037 million, 112% more than the R$ 488 million recorded in the 1H05. Excluding the agreement concerning the supply of gas to the Araucaria Thermal Power Plant effects, EBITDA for the first half of 2006 would be R$738 million.
- Return on Equity: 27% p.a. Excluding the reversal effects the return on Equity would be 11%.
- Copel adjusted its retail tariffs by 5.12% on average, as of June 24.
- Billed power consumption dipped 0.6% year-on-year: Copel Distribuição’s grid market (TUSD), comprising the captive market and all free customers within the Company’s concession area, grew by 3%.
- On May 31, Copel assumed ownership of UEG Araucária, ending the judicial dispute with El Paso.
Investor Relations – Copel
ri@copel.com
www.copel.com/ir
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Companhia Paranaense de Energia – COPEL
1st Half 2006 Results
MAIN EVENTS |
- Results: COPEL closed the first half with a net income of R$ 740.4 million (R$ 2.71 per thousand shares). Second-quarter net income totaled R$ 569.7 million.
- Reversal of provisions for the gas purchase agreement:As a result of the agreement entered into by COPEL, Compagas and Petrobras for gas supply to Araucaria and the approval by Aneel, through Order 769/2006 of April 13th, 2006, of the guarantees put up by COPEL, the Company reversed provisions, that had been constituted for this purpose, as follows:
R$ million | ||
HISTORY | AMOUNTS | |
Operating Expenses – Raw-materials | 328.5 | |
Operating Expenses - PASEP/COFINS | (30.4) | |
OPERATING RESULT | 298.1 | |
Financial Revenues – Discount Granted | 283.2 | |
Financial Expenses – Fine Reversal | 72.7 | |
FINANCIAL RESULT | 355.9 | |
Income Tax and Social Contribution | (230.2) | |
EFFECT IN THE RESULT | 423.8 |
- Tariff adjustment:On June 24, COPEL adjusted its retail tariffs by 5.12% on average, 4.91% of which referring to the annual tariff (IRT) and 0.21%416,4 to the tariff’s external financial components.
- COPEL Rating: Copel's rating, measured by Fitch Ratings, went up on June 29, 2006 from A+ to AA-, due to the good results presented by the Company in the last months.
- Electric power market:Copel’s first-half billed power consumption dipped by 0.6% year-on-year. Consumption by the residential, commercial and rural segments increased by 2.6%, 4.1% and 2.4%, respectively, while that of the industrial segment fell by 6.0% due to the slowdown in agribusiness caused by drought and the consequent harvest failure, plus the appreciation of the Real against the US Dollar, which jeopardized exports.
Copel Distribuição’s grid market (TUSD) grew by 3.0% over the 1H06.
- UEG Araucária: On May 31, 2006, Copel assumed ownership of UEG Araucária, ending the judicial and arbitration disputes with El Paso over the agreements covering the electricity to be sold by the plant, which had dragged on for almost three and a half years in Brazil and France.
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In fact, the severity of the drought that affects the Brazilian South Region led the Ministry of Mines and Energy and the ONS – National Electric System Operator -ask ed Copel to initiate a series of precautionary measures, including a plant start-up. This plant start-up is monitored by specialists from the equipment manufacturers. This is regarded as necessary due to the lengthy period (since the beginning of 2003) during which the facility has been in hibernation. All the inspections undertaken to date show that the plant has been adequately maintained by Copel and the emergency procedure requested by the authorities should occur within the next few days.
- Workforce:COPEL closed the first half with a workforce of 7,991.
On June 30, COPEL Distribuição recorded a customer-to-employee ratio of 568 and Compagas, Elejor and UEG Araucária, all Copel subsidiaries, had 66, 4 and 5 employees, respectively.
COPEL’s workforce is distributed per business unit as follows:
COPEL Geração = 945 employees
COPEL Transmissão = 913 employees
COPEL Distribuição = 5,804 employees
COPEL Telecomunicações = 302 employees
COPEL Participações = 27 employees
- Aneel’s Consumer Satisfaction Index (IASC) 2005:Following a survey of 19,200 consumers nationwide, Aneel appointed Copel as the best of Brazil’s large-scale power utilities.
COPEL received an approval rating of 74.44 by consumers in its operating area, the highest among the big companies and in the south of Brazil, even surpassing the average satisfaction rating among US consumers, which is 73.
- COPEL’s shareholders benefited from returns of 58% in 2005:A survey by the Fundação Getúlio Vargas ranked Copel 9th among the 50 Brazilian listed companies that generated most value for their shareholders in 2005, with returns of 58%.
This survey has been undertaken for nine years and ranks companies according to an indicator called TSR (Total Shareholder Return), which measures how much value the firm has generated in terms of share appreciation and dividends paid to shareholders.
- Opening of Fundão Plant:The Fundão Plant, located on the Jordão River, in the mid-south of Paraná State, was inaugurated on June 28. The plant, which is part of the Elejor power complex, has an installed capacity of 120MW and the first 60MW began commercial operations on June 22. The remaining 60MW are scheduled for start-up in August.
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- “Global Reporting Initiative” – GRI:COPEL's 2005 annual report was drawn up in line with the guidelines laid down by the GRI, which develops and disseminates global parameters for evaluating the economic, social and environmental impact of a company’s activities, products and services. COPEL received a “In accordance” rating from the organization for complying with all the requirements. Only 5 other Brazilian companies received the same rating.
- ABRADEE Award:COPEL was elected the best power distributor in the south of Brazil as well as the best company in the social responsibility category in the 2006 edition of the award, sponsored by ABRADEE – Brazilian Association of Power Distributors.
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FINANCIAL AND OPERATING PERFORMANCE |
Market Expansion
COPEL’s total billed power consumption came to 9,347 GWh in the 1H06, 0.6% down year-on-year.
Residential consumption, which accounts for 25.6% of COPEL’s market, grew by 2.6%, chiefly due to increased sales of home appliances fueled by the credit expansion, and the higher number of billed consumers. The upturn would have been even higher but for lower average temperatures than in the 1HO5, which acted as a brake on consumption.
Commercial consumption, which accounts for 18.3% of the market, recorded the best performance among major customer segments, moving up 4.1% year-on-year, mainly pushed by the healthy service sector performance, plus the higher number of consumers (1.8% up on the 1H05).
The 2.4% growth in rural consumption was primarily due to the prolonged drought, which demanded greater irrigation use.
Consumption by the captive industrial segment dropped 10.3% year-on-year, chiefly due to the April/05 transfer of free customers from COPEL Distribuição to Copel Geração. COPEL’s total industrial consumption, including free consumers, fell by 6.0%, due to the slowdown in agribusiness, caused by drought and the consequent harvest failure, plus the appreciation of the Real against the US Dollar, which jeopardized exports and the domestic market.
In June, COPEL had 3,297,163 customers, 74,350 more than in June/05, an increase of 2.3% .
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Consumption per segment
GWh | ||||||||||
Segment | 2Q06 | 1Q06 | 2Q05 | 1H 06 | 1H 05 | |||||
Residential | 1,181 | 1,211 | 1,173 | 2,392 | 2,333 | |||||
Industrial (including free customers) | 1,824 | 1,761 | 1,959 | 3,584 | 3,812 | |||||
Commercial | 819 | 892 | 823 | 1,712 | 1,644 | |||||
Rural | 356 | 386 | 361 | 742 | 724 | |||||
Others | 463 | 454 | 454 | 917 | 886 | |||||
COPEL Total | 4,643 | 4,704 | 4,770 | 9,347 | 9,399 |
COPEL Distribuição’s grid market (TUSD), comprising the captive market and all free customers within the Company’s concession area, increased by 3.0% in the 1H06.
Revenues
First-half net operating revenues totaled R$2,605.4 million, 10.6% up on the R$ 2,356.3 million recorded in the same period in 2005.
This increase was primarily due to: (i) the reduction in the discounts granted to costumers who pay their bills on time, which averaged 5% as of February/05 and 4.4% as of August/05; (ii) higher “supply” revenue, due to the cancellation of the initial contract between Copel Geração and Copel Distribuição and the consequent sale of energy from Copel Geração at the first old energy auction for the 2006-2013 period; (iii) the increase in “use of transmission plant”, due to the 9.1% adjustment ratified by Aneel Resolution 150, of July 1, 2005; and (iv) the increase in “gas sale revenue”, due to higher gas distribution to third parties..
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Gross Revenue
R$ thousand | ||||||||||
Revenues | 2Q 06 | 1Q 06 | 2Q 05 | 1H 06 | 1H 05 | |||||
Residential | 483,765 | 495,912 | 460,160 | 979,677 | 907,678 | |||||
Industrial | 436,680 | 408,337 | 401,322 | 845,017 | 758,625 | |||||
Commercial | 281,853 | 304,707 | 267,053 | 586,560 | 528,495 | |||||
Rural | 60,210 | 68,713 | 60,757 | 128,923 | 122,986 | |||||
Other segments | 114,632 | 109,943 | 108,174 | 224,575 | 206,061 | |||||
Electricity sales to final customers | 1,377,140 | 1,387,612 | 1,297,466 | 2,764,752 | 2,523,847 | |||||
Electricity sales to distributors | 289,094 | 281,687 | 237,070 | 570,781 | 464,720 | |||||
Use of transmission plant | 74,082 | 69,224 | 66,636 | 143,306 | 130,828 | |||||
Telecom revenues | 12,817 | 13,873 | 13,118 | 26,690 | 25,596 | |||||
Piped gas distribution | 55,847 | 49,952 | 44,119 | 105,799 | 84,479 | |||||
Other | 16,767 | 13,277 | 20,842 | 30,044 | 41,633 | |||||
Total | 1,825,747 | 1,815,625 | 1,679,251 | 3,641,372 | 3,271,103 |
Revenue Deductions
The table below shows COPEL’s operating revenue deductions:
R$ thousand | ||||||||||
Revenue deductions | 2Q 06 | 1Q 06 | 2Q 05 | 1H 06 | 1H 05 | |||||
ICMS | 352,662 | 356,766 | 336,326 | 709,428 | 655,835 | |||||
PASEP/COFINS | 169,284 | 128,862 | 97,458 | 298,146 | 176,002 | |||||
RGR | 11,473 | 15,100 | 12,150 | 26,573 | 31,479 | |||||
Other | 512 | 1,292 | 26,305 | 1,804 | 51,448 | |||||
TOTAL | 533,931 | 502,020 | 472,239 | 1,035,951 | 914,764 |
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Operating Expenses
First-half operating expenses totaled R$1,744.5 million, 14.1% less than the R$2,029.8 million recorded in the 1H05. The main variations were:
- “Energy purchased for resale” fell 12.4%, mainly due to alterations in the methodology for calculating the CVA, authorized by Aneel in Technical Note 175 of June 2006. The main amounts booked were: R$ 135.5 million from Itaipu, R$ 109.7 million from Cien, R$ 43.4 million from Itiquira and R$ 300.3 million from the energy auction. Also, R$ 58.6 million was booked as passive CVA.
- The 25.8% increase in the “use of transmission grid line” was due to the 9.1% tariff adjustment confirmed by Aneel Resolution 150, of July 1, 2005, in addition to remuneration from new transmission assets and the net effects of CVA costs amounting to R$ 58.0 million.
- “Personnel” expenses moved up by 6.2% due to the October/05 pay rise and the increase in the number of employees.
- The 24.4% upturn in the “pension plan and other benefits” line was a result of the increase in the workforce and the booking of estimated costs for 2006, according to actuarial criteria, in compliance with CVM Deliberation 371/2000.
- The balance in the “raw material and supply for electric power production” line reflected the reversal of R$ 298.1 million due to the agreement between COPEL, Petrobras and Compagas, related to natural gas for the Araucária Plant.
- The “natural gas and supply for the gas business” line refers to all the gas acquired by Compagas from Petrobras. The decline was due to the termination of the gas purchase contract for UEG Araucária.
- The increase in “third-party services” was mainly due to higher costs from mail, technical consulting and travel.
- The upturn in “depreciation and amortization” was caused by the entry of new fixed assets in use related to Elejor and UEG Araucária.
- The increase in “regulatory charges” was chiefly due to the higher amount booked under the Energy Development Account - CDE. The total amount booked in the first half comprised R$ 115.9 million under the Fuel Consumption Account – CCC; R$ 22.8 as financial compensation for the use of water resources; R$ 75.4 million under the CDE; and R$7.5 million as Aneel’s oversight fees.
- The figures under “electric efficiency and development research” obey the criteria for investments in such programs as defined in Aneel Resolution 176, of November 28, 2005.
- The “expenses recoverable” line presented growth of 71.5%, primarily due to the reclassification of the CCC Subsidy under “other operating revenues”, as determined by Aneel Resolution 473 of March 06, 2006.
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- The increase in the “other operating expenses” account was mainly due to provisions for contingencies related to the Energética Rio Pedrinho (R$ 25.0 million) and the Consórcio Salto Natal Energética (R$ 23.8 million).
Breakdown of Operating Expenses
R$ thousand | ||||||||||
Operating Expenses | 2Q06 | 1Q06 | 2Q05 | 1H06 | 1H05 | |||||
Energy purchased for resale | 327,611 | 359,555 | 424,802 | 687,166 | 784,619 | |||||
Use of transmission grid | 122,501 | 158,060 | 111,132 | 280,561 | 222,969 | |||||
Personnel | 139,240 | 130,513 | 117,505 | 269,753 | 254,024 | |||||
Pension plans and other benefits | 29,483 | 31,505 | 24,811 | 60,988 | 49,029 | |||||
Material | 17,228 | 16,078 | 17,149 | 33,306 | 30,724 | |||||
Raw material and supply for electric | (294,839) | 6,146 | 5,908 | (288,693) | 9,332 | |||||
power production | ||||||||||
Natural gas purchased for resale and | ||||||||||
supplies for the gas business | 27,608 | 23,681 | 55,079 | 51,289 | 140,720 | |||||
Third-party services | 51,860 | 51,097 | 51,542 | 102,957 | 93,465 | |||||
Depreciation and amortization | 90,257 | 85,437 | 82,386 | 175,694 | 161,546 | |||||
Regulatory charges | 84,458 | 137,182 | 102,802 | 221,640 | 217,949 | |||||
Electric efficiency and development | ||||||||||
research | 6,370 | 22,627 | 3,116 | 28,997 | 5,382 | |||||
Taxes | 133 | 5,110 | 5,298 | 5,243 | 9,470 | |||||
Expenses recoverable | (9,679) | (13,130) | (5,548) | (22,809) | (13,298) | |||||
Other operating expenses | 117,276 | 21,146 | 30,264 | 138,422 | 63,897 | |||||
Total | 709,507 | 1,035,007 | 1,026,246 | 1,744,514 | 2,029,828 |
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CVA (Deferred Regulatory Assets)
The following table shows the charges in balances from deferred tariff costs updated by the SELIC interest rate in the first half of 2006:
R$ | ||||||||||||
thousand | ||||||||||||
Parcel A Movement | Balance | Deferral | Amort. | Monetary | Transf. | Balance | ||||||
12/31/05 | updates | 06/30/06 | ||||||||||
Asset | ||||||||||||
Purchased energy (Itaipu) | 22,712 | 36,919 | (29,352) | 10,390 | - | 40,669 | ||||||
Transp. of purchased energy | 3,227 | 2,687 | (1,838) | 642 | - | 4,718 | ||||||
Use of transmission grid charges | 70,293 | 13,073 | (77,255) | 9,466 | 5,821 | 21,398 | ||||||
Energy Development Account – CDE | 16,525 | 21,235 | (16,804) | 4,486 | - | 25,442 | ||||||
Electric Power Services Fee - ESS | 10,443 | 6,360 | (12,654) | 3,534 | - | 7,683 | ||||||
Fuel Consumption Account – CCC | 13,546 | 25,059 | (5,689) | 2,168 | - | 35,084 | ||||||
Proinfa | - | 13,105 | - | 539 | - | 13,644 | ||||||
TOTAL | 136,746 | 118,438 | (143,592) | 31,225 | 5,821 | 148,638 | ||||||
Liabilities | ||||||||||||
Energy purchased for resale | ||||||||||||
Energy | 48,936 | 84,275 | (25,700) | 18,781 | - | 126,292 | ||||||
Itaipu | 41,640 | (22,530) | (18,991) | (119) | - | - | ||||||
Use of transmission grid charges | - | (4,155) | - | 633 | 5,821 | 2,299 | ||||||
TOTAL | 90,576 | 57,590 | (44,691) | 19,295 | 5,821 | 128,591 | ||||||
EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$1,036.6 million in the first half, 112.4% up on the R$488.1 million posted in the same period in 2005. Excluding the agreement concerning the supply of gas to the Araucaria Thermal Power Plant effects, EBITDA for the first half of 2006 would be R$738,5 million.
Financial Result
Financial revenue moved up 179.1% over the 1H05, primarily due to the booking of R$283.2 million related to the discounts obtained in the negotiations between Copel, Petrobras and Compagas on the gas purchase agreement for UEG Araucária; increased interest from financial investments due to a higher cash position in the period; and gains from derivative operations.
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Financial expenses fell by 11.6%, essentially due to the reversal of R$ 72.7 million in delinquency fines from the gas purchase contract with Compagas.
Operating Result
COPEL’s first-half operating result totaled R$ 1,212.2 million, directly influenced by the reversal of amounts related to the UEG Araucária gas contract. However, even if we ignore this effect, the period operating result was still 73.5% up year-on-year.
Non-operating Result
The 1H06 non-operating result reflected the net effect of write-offs of assets and rights registered under permanent assets and R$ 41 million in equity loss from the accrued losses recorded by UEG Araucária.
Net Income
COPEL recorded a first-half net income of R$ 740.4 million, including the net effects of the UEG Araucária gas contract (R$ 423.8 million). Excluding these effects, net income would have totaled R$ 316.6 million, 61% up on the R$196.7 million recorded in the 1H05.
BALANCE SHEET AND CAPEX |
Assets
On June 30, 2006, COPEL’s total assets stood at R$ 11,072.8 million.
COPEL’s first-half capex totaled R$671.4 million, R$3.7 million of which allocated to power generation projects, R$73.8 million to transmission projects, R$144.7 million to distribution works, R$12.6 million to telecommunications and R$436.6 million spent on Araucária Thermal Plant acquisition. Elejor and Compagas, whose balance sheets are consolidated with Copel, invested R$53.2 million in generation projects, and R$6.6 million in gas pipelines, respectively.
Liabilities and Shareholders’ Equity
On June 30, 2006, COPEL’s total debt amounted to R$1,938.7 million, representing a debt/equity ratio of 31.3% . Excluding Elejor’s debt, COPEL’s debt/equity ratio would have been 26.3% .
Shareholders’ equity came to R$6,190.6 million, 16.1% more than in June/05 and equivalent to R$22.62 per thousand shares.
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Debt Profile
R$ thousand | ||||||
Foreign Currency | Short Term | Long Term | Total | |||
IDB | 22,624 | 82,644 | 105,268 | |||
National Treasury | 9,340 | 97,864 | 107,204 | |||
Eletrobras | 7 | 50 | 57 | |||
Banco do Brasil S/A | 5,028 | 11,702 | 16,730 | |||
Total Foreign Currency | 36,999 | 192,260 | 229,259 | |||
Local Currency | Short Term | Long Term | Total | |||
Eletrobras – COPEL | 46,344 | 290,591 | 336,935 | |||
Eletrobras – Elejor | - | 40,554 | 40,554 | |||
BNDES | 6,392 | 28,817 | 35,209 | |||
Debentures – COPEL | 756,638 | 266,680 | 1,023,318 | |||
Debentures – Elejor | 15,890 | 256,399 | 272,289 | |||
Other | 132 | 959 | 1,091 | |||
Total Local Currency | 825,397 | 884,000 | 1,709,397 | |||
TOTAL | 862,396 | 1,076,260 | 1,938,656 |
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ADDITIONAL INFORMATION |
Main operational and financial indicators
As of June 30, 2006
Generation | ||
Number of power plants - Copel Geração: | 18 (17 hydro and 1 thermal) | |
Number of power plants - Copel Participações: | 06 (04 hydro, 1 thermal and 1 eolic) | |
Total installed capacity - COPEL Geração: | 4,550 MW | |
Total installed capacity - COPEL Participações: | 553 MW | |
Number of automated power plants - COPEL Geração: | 12 | |
Number of step-up substations - COPEL Geração: | 11 | |
Number of automated step-up substations: | 10 | |
Availability of generating units over 10 MW: | 93.79% | |
Transmissão | ||
Transmission lines: | 7,062 km | |
Number of substations: | 129 | |
Number of automated substations: | 129 | |
Installed substation capacity: | 15,444 MVA | |
Distribuição | ||
Distribution lines: | 165,576 km | |
Number of substations: | 237 | |
Number of automated substations: | 212 | |
Installed capacity in 13.8kV and 34.5kV substations: | 1,607 MVA | |
Number of localities served: | 1,110 | |
Number of municipalities served: | 393 | |
Number of consumers: | 3,297,163 | |
DEC (outage duration per customer, in hours): | 6.65 | |
FEC (outage frequency per customer): | 6,49 times | |
Telecomunicações | ||
Optical cable – main ring: | 4,540 km | |
Self-sustained optical cable: | 4,182 km | |
Number of cities served: | 158 | |
Number of customers: | 313 | |
Administration | ||
Number of employees (wholly-owned subsidiaries): | 7,991 | |
Customer per distribution employee: | 568 | |
Financial | ||
Book value (per 1,000 shares): | R$ 22.62 | |
EBITDA: | R$1,037 million | |
Liquidity (Current Ratio): | 0.95 |
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Average Tariff for Energy Purchased
R$/MWh | ||||||
June 2006 | June 2005 | Change % | ||||
Auction – CCEAR 2005-2012 | 59.01 | 57.51 | 2.6 | |||
Auction – CCEAR 2006-2013 | 69.94 | - | - | |||
CIEN | 70.85 | 88.24 | (19.7) | |||
Itaipu * | 84.66 | 83.97 | 0.8 |
Retail Tariffs
R$/MWh | ||||||
June 2006 | June 2005 | Change % | ||||
Residential | 268.33 | 269.81 | (0.5) | |||
Industrial | 180.04 | 158.69 | 13.5 | |||
Commercial | 240.32 | 233.71 | 2.8 | |||
Rural | 164.10 | 162.33 | 1.1 | |||
Others | 179.47 | 175.21 | 2.4 | |||
Total | 214.17 | 204.45 | 4.8 |
Energy Supply Tariff
R$/MWh | ||||||
June 2006 | June 2005 | Change % | ||||
Small wholesale concessionaries | 88.43 | 83.05 | 6.5 | |||
Auction – CCEAR 2005-2012 | 58.52 | 57.50 | 1.8 | |||
Auction - CCEAR 2006-2013 | 68.54 | - | - |
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Energy Flow
GWh
Source | 1H 2006 | |
Own Generation | 6,082 | |
Purchased Energy | 13,426 | |
Itaipu | 2,310 | |
Auction – CCEAR | 5,859 | |
Cien | 1,738 | |
Itiquira | 466 | |
MRE | 2,311 | |
CCEE | 3 | |
Other | 739 | |
Total available power | 19,508 | |
State Demand | 8,964 | |
Retail | 8,740 | |
Concessionaires | 224 | |
Free Customers | 607 | |
Bilateral Agreements | 2,136 | |
Auction – CCEAR | 5,545 | |
MRE | 0 | |
CCEE | 925 | |
Losses and Differences | 1,331 | |
Basin network losses | 400 | |
Distribution losses | 832 | |
CG Contract allocation | 99 | |
MRE = Energy Reallocation Mechanism
CCEE = Electric Power Trade Chamber
CG = Center of gravity of the Submarket (difference between hired energy and energy received from CG – following the contract).
Amounts subject to changes after settlement by CCEE.
Shareholders’ Structure (in million shares)
30/06/2006
Millions of shares | ||||||||||||||||
Shareholders | COMMON | % | Preferred "A" | % | Peferred "B" | % | TOTAL | % | ||||||||
State of Paraná | 85,028 | 58.6 | - | - | - | - | 85,028 | 31.1 | ||||||||
BNDESPAR | 38,299 | 26.4 | - | - | 27,282 | 21.3 | 65,581 | 24.0 | ||||||||
ELETROBRÁS | 1,531 | 1.1 | - | - | - | - | 1,531 | 0.6 | ||||||||
Free Floating | 19,582 | 13.5 | 121 | 29.9 | 100,783 | 78.6 | 120,485 | 44.0 | ||||||||
In Brazil | 15,253 | 10.5 | 121 | 29.9 | 70,038 | 54.6 | 85,411 | 31.2 | ||||||||
ADS's | 4,329 | 3.0 | - | - | 30,745 | 24.0 | 35,074 | 12.8 | ||||||||
Other | 591 | 0.4 | 283 | 70.1 | 156 | 0.1 | 1,030 | 0.4 | ||||||||
TOTAL | 145,031 | 100.0 | 403 | 100.0 | 128,221 | 100.0 | 273,655 | 100.0 | ||||||||
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FINANCIAL STATEMENTS |
COMPANHIA PARANAENSE DE ENERGIA CNPJ 76.483.817/0001 -20 Public Company - CVM 1431-1 www.copel.com copel@copel.com |
SUMMARIZED FINANCIAL STATEMENTS
Translation from the original in portuguese (amounts expressed in thousands of Brazilian Reais)
ASSETS | ||||||||||
3Q2005 | 4Q2005 | 1Q2006 | 2Q2006 | 2Q2005 | ||||||
Current | ||||||||||
Cash in hand | 813,558 | 1,131,766 | 1,150,459 | 691,373 | 618,850 | |||||
Customers and distributors | 1,047,456 | 945,577 | 988,606 | 989,850 | 964,507 | |||||
Allowance for doubtfull accounts | (138,238) | (79,073) | (81,978) | (112,729) | (128,200) | |||||
Third-parties services, net | 5,226 | 7,349 | 8,489 | 9,389 | 3,395 | |||||
Dividends receivable | 2,152 | 3,665 | 2,573 | 1,436 | 2,152 | |||||
Services in progress | 9,748 | 12,132 | 11,625 | 14,716 | 6,863 | |||||
CRC transferred to State Government | 30,961 | 31,804 | 32,338 | 33,058 | 30,659 | |||||
Taxes and social contributions paid in advance | 82,632 | 131,038 | 103,682 | 148,790 | 96,768 | |||||
Account for compensation of "Portion A" | 150,134 | 128,187 | 86,018 | 139,427 | 204,621 | |||||
Regulatory Assets - PASEP/COFINS | 56,382 | 43,876 | 25,081 | 13,102 | - | |||||
Bonds and linked deposits | - | 43,746 | 44,271 | 21,267 | 35,291 | |||||
Material and supplies | 33,208 | 36,590 | 44,344 | 38,805 | 32,106 | |||||
Other | 76,796 | 33,587 | 43,858 | 60,508 | 41,211 | |||||
2,170,015 | 2,470,244 | 2,459,366 | 2,048,992 | 1,908,223 | ||||||
Long-term assets | ||||||||||
Customers and distributors | 99,318 | 104,483 | 99,996 | 104,023 | 105,883 | |||||
CRC transferred to State Government | 1,146,764 | 1,150,464 | 1,144,591 | 1,148,281 | 1,170,108 | |||||
Taxes and social contributions paid in advance | 563,123 | 526,505 | 523,615 | 472,967 | 539,852 | |||||
Judicial Deposits | 165,319 | 145,183 | 149,775 | 151,525 | 158,737 | |||||
Account for compensation of "Portion A" | 14,280 | 8,559 | 8,735 | 9,211 | 1,659 | |||||
Regulatory Assets - PASEP/COFINS | 32,680 | 43,608 | 49,173 | 20,361 | 111,925 | |||||
Bonds and linked deposits | - | 27,041 | 25,096 | 22,714 | 27,830 | |||||
Intercompany receivables | 204,737 | 35,357 | 35,722 | 36,040 | 34,473 | |||||
Other | 48,204 | 16,576 | 15,350 | 20,263 | 22,667 | |||||
2,274,425 | 2,057,776 | 2,052,053 | 1,985,385 | 2,173,134 | ||||||
Permanent | ||||||||||
Investments | 465,499 | 414,320 | 416,375 | 436,970 | 412,362 | |||||
Property, plant and equipment | 5,409,481 | 5,991,291 | 6,042,542 | 6,567,808 | 5,839,891 | |||||
Deferred | 205 | 5,375 | 5,314 | 33,665 | 5,309 | |||||
5,875,185 | 6,410,986 | 6,464,231 | 7,038,443 | 6,257,562 | ||||||
Total | 10,319,625 | 10,939,006 | 10,975,650 | 11,072,820 | 10,338,919 | |||||
16
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
3Q2005 | 4Q2005 | 1Q2006 | 2Q2006 | 2Q2005 | ||||||
Current | ||||||||||
Loans and financing | 94,419 | 99,253 | 90,924 | 89,868 | 99,016 | |||||
Debentures | 51,500 | 115,703 | 723,043 | 772,528 | 61,055 | |||||
Suppliers | 1,108,984 | 1,162,415 | 1,265,631 | 443,722 | 1,061,096 | |||||
Taxes and social contributions | 318,013 | 310,942 | 207,193 | 238,726 | 230,177 | |||||
Interest on own capital | 27,047 | 114,467 | 115,429 | 40,429 | 27,050 | |||||
Accrued payroll costs | 93,549 | 108,326 | 109,482 | 93,830 | 81,792 | |||||
Pension plan and other post-retirement benefits | 123,704 | 132,902 | 126,415 | 128,420 | 127,587 | |||||
Account for compensation of "Portion A" | 40,686 | 65,664 | 64,020 | 116,889 | 46,871 | |||||
Regulatory charges | 66,382 | 41,280 | 59,429 | 42,666 | 68,731 | |||||
Electric efficiency and development research | - | 72,887 | 89,975 | 147,908 | - | |||||
Other | 22,691 | 34,501 | 34,847 | 37,348 | 19,369 | |||||
1,946,975 | 2,258,340 | 2,886,388 | 2,152,334 | 1,822,744 | ||||||
Long-term liabilities | ||||||||||
Loans and financing | 576,053 | 602,624 | 565,339 | 553,181 | 614,761 | |||||
Debentures | 958,351 | 1,226,525 | 530,252 | 523,079 | 1,142,601 | |||||
Provision for contingencies | 500,419 | 495,292 | 496,200 | 549,214 | 498,660 | |||||
Debt with related party | - | - | - | 50,333 | - | |||||
Suppliers | 191,492 | 176,609 | 152,251 | 325,393 | 206,372 | |||||
Taxes and social contributions | 94,368 | 37,236 | 38,809 | 42,535 | 61,196 | |||||
Pension plan and other post-retirement benefits | 508,066 | 486,854 | 486,198 | 476,504 | 514,991 | |||||
Account for compensation of "Portion A" | 40,874 | 24,912 | 14,548 | 11,702 | 7,647 | |||||
Customers | - | - | 1,465 | - | - | |||||
2,869,623 | 3,050,052 | 2,285,062 | 2,531,941 | 3,046,228 | ||||||
Minority interest | 57,648 | 143,431 | 146,363 | 197,971 | 136,970 | |||||
Shareholders' equity | ||||||||||
Capital stock | 3,480,000 | 3,480,000 | 3,480,000 | 3,875,000 | 3,480,000 | |||||
Capital reserves | 817,293 | 817,293 | 817,293 | 817,293 | 817,293 | |||||
Income reserves | 1,148,086 | 1,189,890 | 1,360,544 | 1,498,281 | 1,035,684 | |||||
5,445,379 | 5,487,183 | 5,657,837 | 6,190,574 | 5,332,977 | ||||||
Total | 10,319,625 | 10,939,006 | 10,975,650 | 11,072,820 | 10,338,919 | |||||
17
QUARTERLY INCOME STATEMENT
Translation from the original in portuguese (amounts expressed in thousands of Brazilian Reais)
Accumulated | ||||||||||
2Q2005 | 1Q2006 | 2Q2006 | 2H2006 | 2H2005 | ||||||
Operating revenues | ||||||||||
Electricity sales to final customers | 1,297,466 | 1,387,612 | 1,377,140 | 2,764,752 | 2,523,847 | |||||
Electricity sales to distributors | 237,070 | 281,687 | 289,094 | 570,781 | 464,720 | |||||
Use of transmission plant | 66,636 | 69,224 | 74,082 | 143,306 | 130,828 | |||||
Telecom revenues | 13,118 | 13,873 | 12,817 | 26,690 | 25,596 | |||||
Piped gas distribution | 44,119 | 49,952 | 55,847 | 105,799 | 84,479 | |||||
Other revenues | 20,842 | 13,277 | 16,767 | 30,044 | 41,633 | |||||
1,679,251 | 1,815,625 | 1,825,747 | 3,641,372 | 3,271,103 | ||||||
Deductions from operating revenues | (472,239) | (502,020) | (533,931) | (1,035,951) | (914,764) | |||||
Net operating revenues | 1,207,012 | 1,313,605 | 1,291,816 | 2,605,421 | 2,356,339 | |||||
Operating expenses | ||||||||||
Eletricity purchased for resale | (424,802) | (359,555) | (327,611) | (687,166) | (784,619) | |||||
Charges for the use of transmission grid | (111,132) | (158,060) | (122,501) | (280,561) | (222,969) | |||||
Payroll | (117,505) | (130,513) | (139,240) | (269,753) | (254,024) | |||||
Pension plan | (24,811) | (31,505) | (29,483) | (60,988) | (49,029) | |||||
Material | (17,149) | (16,078) | (17,228) | (33,306) | (30,724) | |||||
Raw material and supplies for generation of electricity | (5,908) | (6,146) | 294,839 | 288,693 | (9,332) | |||||
Natural gas and supplies for the gas business | (55,079) | (23,681) | (27,608) | (51,289) | (140,720) | |||||
Third-party services | (51,542) | (51,097) | (51,860) | (102,957) | (93,465) | |||||
Depreciation and amortization | (82,386) | (85,437) | (90,257) | (175,694) | (161,546) | |||||
Regulatory charges | (102,802) | (137,182) | (84,458) | (221,640) | (217,949) | |||||
Electric efficiency and development research | (3,116) | (22,627) | (6,370) | (28,997) | (5,382) | |||||
Taxes | (5,298) | (5,110) | (133) | (5,243) | (9,470) | |||||
Expenses recoverable | 5,548 | 13,130 | 9,679 | 22,809 | 13,298 | |||||
Other | (30,264) | (21,146) | (117,276) | (138,422) | (63,897) | |||||
(1,026,246) | (1,035,007) | (709,507) | (1,744,514) | (2,029,828) | ||||||
Result of operations | 180,766 | 278,598 | 582,309 | 860,907 | 326,511 | |||||
Financial income (expenses) | ||||||||||
Financial income | 94,685 | 115,308 | 414,423 | 529,731 | 189,462 | |||||
Financial expenses | (85,694) | (122,645) | (54,501) | (177,146) | (200,407) | |||||
8,991 | (7,337) | 359,922 | 352,585 | (10,945) | ||||||
Equity investment | 1,768 | 1,930 | (3,208) | (1,278) | 6,170 | |||||
Operating income (expenses) | 191,525 | 273,191 | 939,023 | 1,212,214 | 321,736 | |||||
Non-operating income (expenses) | (1,382) | (3,652) | (41,234) | (44,886) | (5,230) | |||||
Income (loss) before income tax | 190,143 | 269,539 | 897,789 | 1,167,328 | 316,506 | |||||
Income tax and Social contribution | ||||||||||
Income tax | (50,101) | (69,739) | (238,675) | (308,414) | (81,099) | |||||
Social contribution | (17,028) | (25,246) | (86,226) | (111,472) | (29,174) | |||||
(67,129) | (94,985) | (324,901) | (419,886) | (110,273) | ||||||
Net income (loss) before | 123,014 | 174,554 | 572,888 | 747,442 | 206,233 | |||||
Minority interest | ||||||||||
Minority interest | (4,761) | (3,900) | (3,141) | (7,041) | (9,573) | |||||
Net income (loss) | 118,253 | 170,654 | 569,747 | 740,401 | 196,660 | |||||
Earning per thousand shares | 0.4321 | 0.6236 | 2.0820 | 2.7056 | 0.7186 | |||||
18
SUMMARIZED FINANCIAL STATEMENTS
as of June 30, 2006
Translation from the original in portuguese (amounts expressed in thousands of Brazilian Reais)
ASSETS | GER | TRA | DIS | TEL | PAR | |||||
Consolidated | ||||||||||
Current | ||||||||||
Cash in hand | 291,119 | 27,705 | 248,933 | 4,700 | 117,121 | |||||
Customers and distributors, net | 149,973 | 47,501 | 704,338 | - | 47,673 | |||||
Third-parties services, net | 1,744 | 164 | 17 | 10,164 | - | |||||
Dividends receivable | - | - | - | - | 1,414 | |||||
Services in progress | 1,984 | 3,310 | 9,192 | - | 231 | |||||
CRC transferred to State Government | - | - | 33,057 | - | - | |||||
Taxes and social contributions paid in advance | 32,191 | 11,741 | 158,919 | 2,455 | 8,389 | |||||
Account for compensation of "Portion A" | - | - | 139,427 | - | - | |||||
Regulatory Assets - PASEP/COFINS | - | - | 13,102 | - | - | |||||
Bonds and linked deposits | 4,592 | - | 16,489 | - | 186 | |||||
Prepaid receivables | 488 | 326 | 16,237 | 30 | 2,486 | |||||
Other | 9,370 | 5,431 | 35,978 | 1,305 | 5,661 | |||||
Material and supplies | 179 | 8,600 | 22,897 | 6,602 | 527 | |||||
491,640 | 104,778 | 1,398,586 | 25,256 | 183,688 | ||||||
Long-term assets | ||||||||||
Customers and distributors | 138,965 | - | 74,509 | - | - | |||||
CRC transferred to State Government | - | - | 1,148,281 | - | - | |||||
Taxes and social contributions paid in advance | 56,868 | 34,781 | 218,560 | 9,609 | 11,002 | |||||
Judicial Deposits | 7,893 | 16,247 | 64,785 | 385 | 12 | |||||
Account for compensation of "Portion A" | - | - | 9,211 | - | - | |||||
Regulatory Assets - PASEP/COFINS | - | 20,361 | - | - | - | |||||
Bonds and linked deposits | - | 4,741 | 17,973 | - | - | |||||
Intercompany receivables | 330,692 | - | - | - | - | |||||
Prepaid receivables | 3,534 | - | 7,477 | - | 431 | |||||
Assets and rights for disposal | - | - | - | - | 1,694 | |||||
Other | 936 | 56 | 5,912 | - | 223 | |||||
538,888 | 76,186 | 1,546,708 | 9,994 | 13,362 | ||||||
Permanent | ||||||||||
Investments | 4,150 | 2,257 | 419 | - | 425,482 | |||||
Property, plant and equipment | 2,874,320 | 1,169,386 | 1,143,422 | 181,437 | 1,199,243 | |||||
Deferred | - | - | - | - | 33,665 | |||||
2,878,470 | 1,171,643 | 1,143,841 | 181,437 | 1,658,390 | ||||||
Total | 3,908,998 | 1,352,607 | 4,089,135 | 216,687 | 1,855,440 | |||||
19
LIABILITIES AND SHAREHOLDERS' EQUITY | GER | TRA | DIS | TEL | PAR | |||||
Consolidated | ||||||||||
Current | ||||||||||
Loans and financing | 49,591 | 15,380 | 18,505 | - | 6,392 | |||||
Debentures | - | - | 594,464 | - | 15,890 | |||||
Suppliers | 65,335 | 6,193 | 416,900 | 1,269 | 30,138 | |||||
Taxes and social contributions | 82,834 | 24,111 | 196,058 | 926 | 840 | |||||
Interest on own capital | - | 69,217 | 12 | 916 | 64,662 | |||||
Accrued payroll costs | 16,012 | 14,100 | 57,241 | 4,745 | 1,622 | |||||
Pension plan and other post-retirement benefits | 25,011 | 23,435 | 74,201 | 5,617 | 146 | |||||
Account for compensation of "Portion A" | - | - | 116,889 | - | - | |||||
Regulatory charges | 8,586 | 1,781 | 32,188 | - | 111 | |||||
Electric efficiency and development research | 23,233 | 8,600 | 115,384 | - | 691 | |||||
Concession charges - Aneel' consent | - | - | - | - | 13,520 | |||||
Other | 15,597 | 465 | 20,982 | 1,060 | 1,025 | |||||
286,199 | 163,282 | 1,642,824 | 14,533 | 135,037 | ||||||
Long-term liabilities | ||||||||||
Loans and financing | 325,342 | 71,660 | 86,808 | - | 69,371 | |||||
Debentures | - | - | - | - | 256,399 | |||||
Provision for contingencies | 64,307 | 41,977 | 146,727 | 753 | 3,270 | |||||
Intercompany receivables | - | - | - | - | 500,333 | |||||
Suppliers | 160,193 | - | 233,189 | - | 41,461 | |||||
Taxes and social contributions | - | 6,923 | 19,205 | - | 16,406 | |||||
Pension plan and other post-retirement benefits | 89,451 | 79,406 | 289,572 | 16,476 | 1,600 | |||||
Account for compensation of "Portion A" | - | - | 11,702 | - | - | |||||
639,293 | 199,966 | 787,203 | 17,229 | 888,840 | ||||||
Minority interest | - | - | - | - | 197,971 | |||||
Shareholders' equity | ||||||||||
Capital stock | 2,338,932 | 772,389 | 1,607,168 | 187,894 | 586,975 | |||||
Capital reserves | - | - | - | 701 | - | |||||
Income reserves | 129,472 | 151,739 | - | - | 74,657 | |||||
Accrued (losses) income | 515,102 | 65,231 | 51,940 | (3,670) | (28,040) | |||||
2,983,506 | 989,359 | 1,659,108 | 184,925 | 633,592 | ||||||
Total | 3,908,998 | 1,352,607 | 4,089,135 | 216,687 | 1,855,440 | |||||
20
INCOME STATEMENT | GER | TRA | DIS | TEL | PAR | |||||
Consolidated | ||||||||||
Operating revenues | ||||||||||
Electricity sales to final customers | 70,923 | - | 2,694,637 | - | 1,122 | |||||
Electricity sales to distributors | 564,381 | - | 38,357 | - | 37,464 | |||||
Use of transmission plant | - | 212,491 | 73,362 | - | - | |||||
Telecom revenues | - | - | - | 43,073 | - | |||||
Piped gas distribution | - | - | - | - | 105,914 | |||||
Other revenues | 4,232 | 1,376 | 26,314 | - | 72 | |||||
Deductions from operating revenues | (93,450) | (28,657) | (885,905) | (6,070) | (21,869) | |||||
Net operating revenues | 546,086 | 185,210 | 1,946,765 | 37,003 | 122,703 | |||||
Operating expenses | ||||||||||
Eletricity purchased for resale | (37,114) | - | (717,930) | - | (1,543) | |||||
Charges for the use of transmission grid | (87,563) | - | (332,320) | - | (3,228) | |||||
Payroll and pension plan | (52,165) | (43,572) | (213,446) | (13,474) | (5,577) | |||||
Material | (3,868) | (2,108) | (26,359) | (731) | (238) | |||||
Raw material and supplies for generation of electricity | 288,578 | - | - | - | - | |||||
Natural gas and supplies for the gas business | - | - | - | - | (51,289) | |||||
Third-party services | (23,228) | (8,542) | (81,156) | (3,221) | (4,104) | |||||
Depreciation and amortization | (51,576) | (20,164) | (78,535) | (13,386) | (12,033) | |||||
Regulatory charges | (25,014) | (1,655) | (194,441) | - | (530) | |||||
Electric efficiency and development research | (6,014) | (2,067) | (20,508) | - | (408) | |||||
Taxes | (456) | (379) | (2,182) | (350) | (117) | |||||
Expenses recoverable | 10,132 | 118 | 13,485 | 7 | 29 | |||||
Concession charges - Aneel' consent | - | - | - | - | (7,773) | |||||
Other | (4,052) | (2,009) | (114,767) | (882) | (2,635) | |||||
7,660 | (80,378) | (1,768,159) | (32,037) | (89,446) | ||||||
Result of operations | 553,746 | 104,832 | 178,606 | 4,966 | 33,257 | |||||
Financial income (expenses) | ||||||||||
Financial income | 343,398 | 3,244 | 149,049 | 191 | 15,773 | |||||
Financial expenses | (23,453) | (2,733) | (84,533) | (411) | (14,627) | |||||
319,945 | 511 | 64,516 | (220) | 1,146 | ||||||
Equity investment | - | - | - | - | (1,428) | |||||
Operating income (expenses) | 873,691 | 105,343 | 243,122 | 4,746 | 32,975 | |||||
Non-operating income (expenses) | (41) | (512) | (3,655) | (65) | (40,987) | |||||
Income (loss) before income tax | 873,650 | 104,831 | 239,467 | 4,681 | (8,012) | |||||
Income tax and Social contribution | (270,225) | (36,763) | (87,015) | (1,724) | (12,987) | |||||
Minority interest | - | - | - | - | (7,041) | |||||
Net income (loss) | 603,425 | 68,068 | 152,452 | 2,957 | (28,040) | |||||
21
1ST HALF 2006 RESULTS |
CONFERENCE CALL |
Presentation: | Mr. Paulo Roberto Trompczynski, CFO and IRO |
Date & Time: | Wednesday, August 16, 2006 |
10 am (US EST) | |
11 am (Brasília time) | |
Number: | (55-11) 2101-1490 |
Access Code: | Copel |
Investor Relations - Copel
ri@copel.com
Phone | Fax |
(5541) 3222-2027 | (5541) 3331-2849 |
Statements contained in this press release may contain information which is forward-looking and reflects management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. |
22
COMPANHIA PARANAENSE DE ENERGIA – COPEL | ||
By: | /S/ Rubens Ghilardi | |
Rubens Ghilardi CEO |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.