ELP Cia Paranaense De Energia Copel - ADR

Daniel Slaviero Chief Executive Officer
Adriano Rudek de Moura Chief Financial Officer and Investor Relations Officer
Marcelo Sa Itau
Call transcript
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Good afternoon, and thank you for waiting. Welcome to Companhia Paranaense de Energia COPEL Earnings Call to discuss the results of the first quarter of 2021. All participants are in a listen-mode during the company’s presentation. [Operator Instructions] Before proceeding, we inform that forward-looking statements that might be made during this conference call related to Copel business outlooks, projections, operating and financial projections, our goals and they are all based on beliefs and assumptions of the company’s management and on information currently available to the company.

Forward-looking statements are no guarantee of performance. and depend they or on occur. uncertainties events to may risks, therefore, and circumstances involve assumptions relate because future not They that may economic forward-looking cause results factors differ materially other future General expressed of to conditions in those affect such results could also the operating and Copel from industry conditions, statements. may and With Mr. us today, Slaviero, CEO of Daniel the company; and Mr. and Officer. IR Adriano, CFO the available presentation at company’s website. is Copel’s

Daniel Slaviero, Now, CEO the we to turn the company. Mr. floor of

Daniel Slaviero

our this you doing are very consistent a in hope much the sound have great healthy. broadly we Good superceded expectations efforts conference. afternoon, you in market, and are I quarter, environment, to very all as call, participating families our And first everyone. and to growth. bring well improve the you in this of in agenda we quarter, Thank and to very governance challenging facing that our notices of for specifically results dedicated are pleased the despite in published your company. the of once and this a In last which our again to

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BRLX.X Here, up. million, we income have almost of EBITDA. and BRLXXX net XX% reached billion, a increase We XX% our

our always capital is TPP As EBITDA income to quarter improvement is was energy our But the results of the more mainly want value to and sector stress de Moura of business the XX% companies, here discipline to energy to lifted a and in limits relevant business aiming result units. Santa This for management go There we first we our over the but can expect results the coming plan to performance a been thanks And and work had of efficiency of compared growth also, good monitoring commercialization of company. XXXX. of from with into its transmission saying I a are dispatches and in shares our in transmission. business and extraordinary the execution for going year. have Copel focus to these allocation generate generation details cost yesterday. about to equity committee seamless of of thanks Genebra, strategy the with UEGA also core therefore, generation, electric Mata the for efficiency we

over BRLXX to the in would reaching our the this the our BRLX.X RAP of conclusion is in I market is In This the quarter. And second BRLXX the of is also even of at bring annual million also accounts. has of project CCEE present this in reprofiling the calculations for million could of probably billion. pending going section company. of will like of figure companies around posted of is adding highlight else, added BRLX.X primary walk AEP. and to total, by it reassessment up, to BRLXXX still compeller court for that the almost will value, the last Something go million the figure when extended X.XX. point regulatory It’s was transmission by to the billion This following return closed a up. GSF that be the RBSE

are closed been earlier. operations as delivered concluded that we the of PCH, had. as And for of filling projects first far the turbine. the concluded budget also to Vista we slightly for the both Bela have it we We the in therefore, concerned, Vista And reservoir these Bela is

happen then, in will the supply we our on business of January of the beginning commitment The the and a energy time budget commercialize until of in will XXXX free of is execution the plans all management. and these So projects market. of

team program. successfully the and transmission formation congratulations minimum – and for of main percentage the result. is on of But program. topic all Copel unit generation So right the of that We whole concluded the transmission and now enrollment the whole the

another an now as important has converted of its is the We BRLXX book BRLX.XX. have that the the XX% piece million government can over Parana is equivalent and at of is the X.X% majority total And data on of of company. slide see million that you shareholders of to our value that State BRLXXX of capital. capital

published of shareholders offer like would the have. are ones week, Now say that might I last say intention information in offering, bringing on And the XX, about notice has we a in of have any type the Copel a possible XXXX. offer. the like that that we would no to to that possible primary

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distribution we use to conclude, main slide, prudent our our and topics to can is funds to see investment of like concentrated highlight Now the history also of to Thanks have in our Copel we policy, the investments. regulatory on our would Day, to priority on you brought Copel as I as the work.

consistent our a XX%. distribution. a Right. preliminary plan, the new this in of already executing you billion, up tariff Mark, BRLX.X investment data and were of showing are We Copel from review, and RAB ahead X.X process is

assets, priority our structure. that So any current And preferably our renewable with to solar, right that, synergy presents after wind brownfield. points and

minimum important each source. that aiming be to type each it’s of Therefore, size same the companies we size, say to for size. So a competition going the is of are among

company in greenfield. auctions perspective for stress and and be capital It Investment we And a shareholders. That will doing have will end process. paying returns crucial its by in right to are our we are is be the of value that that and any And that, of strict also will profitability auctions. that obviously, by also say Committee transmission will discipline finally, to reinforce is, to this with we have specifically be to we governance of attention whether commercialize, changes allocation. the that out Recent we of addition will year. we have only carried creation to businesses Therefore, In opportunities And the of bylaws these in had. to the with the right generate the energy asset long-term matter. this the that

about financial performance not is by that operating the a of end mentioned do capacity see I we very plant, good intend MME which before, do the the the as year. have that happening, While and happy to that also NL auctions of we we perspective are the in

is initial your So back I Moura questions. come And turn into to now we’ll to my after the the will floor remarks, on, quarter. details of take to go later now And going Moura. this

Adriano Rudek de Moura

pace to everyone. and historical you you, and quarter financial I with results. It EBITDA also here sound conference started execution EBITDA of And are improvement net efficiency thank Thank discipline of net The being most XXXX better XXXX very much million of and some consistent sustainable billion results. to that with have XX%, us and and We another BRLXXX contributed pleasure bring factors unprecedented quarter. capital call. these with this same the There afternoon, for with Daniel. ended to is for And very BRLX.X also that at great our income respectively. you of growth, and that growth this the income Good well first for we of businesses. allocation we in all is with an a are thanks XX% results.

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being Genebra, and impairments And performance the a Mata also, costs presented grid de talk these with million are litigation, to of Mata incentive operation that paid. XXXX. going here, offset results million, in also BRLXX that and program the amounts but its in because controlled over results operation their have you de companies the in provisions. equity And they jointly reduction being commercial last also with in for about PMSO had started tell electric mid it’s I discontinued are BRLXX the Genebra full highlight were also which on, Furnas. specifically increase income Basically, we are are in can we include operation our And of – Santa – and of Another higher of Telecom. Matrincha, of the Santa joint of Copel maintenance. being had we the details, half second is the controlled Further commercial year. These

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of of the Board reach of I to has market. Daniel they also in here, not mentioned can also quarter, Directors. to And gradually, this budgets XXX on tell you and we will sector is next mentioned budget, of page remaining that would you should that going also to fiscal and and here of of at are we I the the Board of say amount payout for million another the a financial GeT our are April or the have we be and under the the by by I traded year, billion we XXXX. highlights and to impacts the that trend the BRLX.XXX there Daniel in this We But and being recovery already BX the And March the April. And Copel reference happen is by just been in in going date have ELT the lot, stress just billion, can renegotiation, about the paid in like budget, talked Daniel a of happen approval. and negotiated In XX been real are as works, energy million terms Directors. grid being Code already a to the million and first industrial end specifically for demand Parana. our mentioned, CapEx, mentioned, BRLXXX other in a the of BRLX.X here has and have program. already in we And that negotiated the page. BRLX.X recover BRLXX to good units is probably Copel are here believe go U.S., unit the in XXth we of growth half of posed billion already going invested is the defined that approved year, waiting are in with second concluded are in that since that here our dividends at April had we the

the ADRs that shares. the the in CPLEX past So units, preferred were

that Considering conversion one units. Now one unit. they the created is That unit. represent happened when one ADR we is the shares

Our structure changed. final shareholder has

total the have shares XX.X% represent common XX.X% capital with of they to preferred shares Parana of shareholders, XX.X% is the vote. represent majority Now total capital of and shares and and of our of right state

company. formed XXX of the have the XX and stock of the all has units. has is of Finally, capital the units. BNDES capital of XXX state its million Parana of to mentioned, I That represents total mention state And those in XX% units. as X.X% and it’s XX% Parana That of units, million represent important of total over BNDES million company. that stake And

next on Now page.

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at X.X. our Finally, is reduction. leverage It

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very you your can open for thank for Q&A session. the now all I much you. we Thank So, participation. And


question First Sa, Itau. Instructions] from [Operator Marcelo

Marcelo Sa

have Congratulations the results. I everyone. afternoon, on questions. Good two

understand is, your another First, expectation is trying the that there? leverage is revisions what anything there I like to you are very Is would low. question to about And address the revision. – your preliminary

not – dividend have still the do you cash You there.

will it now it looks happen we understand little I your that talked, times low. I would to – understand I right? really want that bit, it’s any few And and that that’s what then So to about wanted probably have M&A So remember like you a in focus to you this increase year? If looking I will the company at like have but in the relevant way, growth. anything to growth. brownfield. or focus if on expectation start

Daniel Slaviero

very we compliance Thank or to like would remuneration both have in in base to About you the expect the changing, Marcelo. should seeing much. reviews the we We maintain there X.X. same and ANEEL. level, the with any revisions, major be don’t the of XXX%

We those lines. everything are follow-on to doing

we’re We cautious about Max, cautious very subject. me, very are the

comment company. order an the X.XX%. we for remunerated side investments About now. see the And impact effort several be to low huge a ANEEL’s us all and a that preliminary Also, So consumers right have on and was on for use of the space in can tariff to instruments there figure a adjustment.

that vary be I the approved that be XX. a posting. already as But variation we be to the we use think just have have But after a date now, will confirms the there the a believe And this more. ANEEL within think little of taken. deferred this could amount. right that this to Anything Right margin, significant bylaws, part could recently, But is Itaipu, in But degree going I process. we a June be don’t else? it. is might of is error implemented of a right ANEEL that bit in remember measure

Marcelo Sa

Yes, that’s it.

Daniel Slaviero

long. Now not and to already all about telecom GSF the are is our balance proteins, And both posted and leverage, sheet very yet. deal to it mentioned yes, we according

policy that now, second are in level, low very good we quarter adequate very at up at moving for But XX%. and our and team that call this shows have a investors new a points determines of leverage. the policy, and We That’s the day that toward and team there, profile. everything That’s the perspective. filed and assumptions our the his to are also we in our that businesses, mentioned in the Casio the I guidelines our team. policies Compel and And

are working We it. on

few the hard the options. months Always We discipline, but are in working we lot considering are analyze last analyzing a of to the opportunity.

the solar And the policies something moves that here. stated, believe our But distribution, we and we works and Copel out. renewable really and us, repetitive want have we that in course. preference few what I to have we wind forward don’t can if months, assets, have So that next have for with be a of synergy brownfield. After and

size a So lot our of also source, ahead. we the but and lot There And a average will open in assets ourselves auctions data has of also in have for will CX that of that theirs with size here them have we we room ANEEL structure Parana. the in Paulo, also of happen synergy week. countryside can next we not the them. see is that Sao only each that so minimum the dive an into a look And at transmission with

looking for company right on for and and governance will that, our on returns at keep So is we guarantee but working shareholders. all the the

Marcelo Sa

are offering, the the Thank very June, offer. Or you? of share the that shareholders anything? that you sell of up Great. beginning in had expected that presentation, the they Daniel. they’re be the have much, timing? you this they you less offer this about more the their to anything you or of size it? not What potential I the what information you would place About In secondary telling stated Did to do company if much BNDES are going they idea. said about didn’t they to will that remember, of tell telling

Daniel Slaviero

that but main they a the is portfolio. they power say not strategy, anything. part moment, is Marcelo, of always have What topic. broader as this BNDES a this larger said, the said The the divestment topic of strategy the of of been is I

depend everything. So time. – anything in right as And I’m know having is of is is want on but What that of they and as shareholders, a they I sector this specifically and under what on market. see radar. will that we sure the don’t case experience BNDES, is Copel well offering the We I they But plan. primary This to what again. size repeat don’t Copel radar instead, conclude, so expect under a that But the the leveraging and hard the is just happens have myself It’s they own utilities we thinking any indication understand waiting lot what business to condition. mentioned. once have in a not side the And registered is market. the this not neither know can is that offers, as we that our on about are and whole


about how message from through, going via water question to XXXX? a This company’s in the is comes just received results We are crisis chat. this Instructions] [Operator the we going affect

Daniel Slaviero


a one. in worst this we we in Copel So let’s was which April water getting that XXXX, the talk that of This started And the crisis worst the seen and national September electric and Is affecting is the fourth history. of worsening. seen since registering April March Well, Considering period integrated figure of the the have history XXXX. of system? have April is this the national this, worse. William, was of we about water that year whole XXXX crisis world system is considered how

level see So we as region. low it situation because reservoir of the in difficult the a the is south

a have little bit better. We it

was a it energy The favorable our good, here. qualified. mentioned We have generation condition was

a of MRE. tariffs have positive So we energy the with did optimization balance

In down terms price. could January sales in that and seasonalization specifically so GSF strategy, bring low spot a we for high of we developed risk our a

in see energy a we a that exposure it. with be enough In the the strategy considering we to buy order offset months, protect have seasonalization prices for we And we strategy. that to to – the year. we have So worked energy to some throughout found also,

a toward lot we of we difficult have moving assets impact mitigating So there, this generation a strategy efficient have to always we good but and really, this a is with very and environment are a are good results. volatility, and


There from is because another chat Mr. this how delinquency via [Operator Allison, the of coming and Instructions] question pandemic? is

Daniel Slaviero

can Max, you answer that?

Adriano Rudek de Moura

in a had much XXXX, for close even your it little and was very delinquency, than both Well, in bit you we lower This very question. XXXX. XXXX. what Thank in

The first no quarter also, it now major with was stable changes.

no have we actions changes. specifically that that X.X%. of this lot in being and there we to but are that of difficulty, balance right, realized So taken out a consumers for to try significant Remember, are that is

And is in well. consumers Brazil. in so delinquency are fact our And the rates thanks the is one we the lowest this to state Parana of of of at that also profile this and because the as economic

around – are been seen has mentioned, we major and major around changes X.X%, base and Max haven’t there our seen historical – changes as we haven’t So it.

this by for chat So additional to questions, call. more we’ll on or be one see minute via any if whether here there here

no And questions, end So there questions, I are can if you don’t little further a call. – we just the more? can if have any


Instructions] [Operator

Daniel Slaviero

I like member, would behalf able this achieve. executives on of we to of result. here, to proud all I that to there participation. numbers very the much your very I If further are like say for new questions, we no we like Andre, would our the Board are All welcome, that with you to would with thank us, once have us, Andre, say top here again, are

a for expectation for We XXXX have Copel. great

I on this series had think yield also, result, over a have we historical of we two are results. dividend digits. continuing That’s and a positive

believe the we our value So these and in best that we events, believe of system. keep and future this in company Have generating on the a having relevant XXXX, nice a history, electrical had Thank continue we’ll results growing much. so that nice Brazil the very Parana, with afternoon that all we rest and and for you company, week. is for the we’ll


on on English quarter of transcript Copel’s by the an gentlemen, for present this has interpreter and call XXXX conference the results live call. first in Statements of the spoken Ladies were ended.