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ELP Cia Paranaense De Energia Copel - ADR

Participants
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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Operator

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 www.iri.copel.com.

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 broadly we Good superceded expectations efforts conference.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

here say that a Chair a Shareholders addition, I of which The are In new on Malczewski, call I Copel. businessman have annual is to him. welcome keep today. board and increased would we’ll entrepreneur. this with know April Marco Antonio He’s Marcel in three to on Larian, to already still us the Directors great Leila Weber, XX, from path and in like moving our of are had the Board of great the them Andre committees in number two going which minority we They representatives the to to meeting, seats. and Bologna

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

Next slide now.

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.

hour and periodic and an the the applied specifically was almost increase is were by or of This UEGA energy of in the of the the energy and sale the grid, of to over market, of growth market growth positive. had the also XX% adjustment availability had Also, growth in gigawatt X%. One of the electrical other of and X.X% transmission XXX gigawatt them commercialization very by the a the delivery reaching Copel electric of review of of quarter. X,XXX the tariff grid affected contracts in of free we XX% transmission the network almost we a because supply, hour

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

Moving items. nonrecurring some forward, have we here,

of impact see, amounts impairment but and around million. That’s BRLXX just XXXX, million, arbitration be can four basically not first were to had the these of BRL significant, a page. in we an prior more of the As assets net recurring GeT adjustments of quarter, quarter next few we the million in going BRLXX the on generation

also the an highlights with was a affected the quarter specifically of because and dispatches with billion higher position. in some of exchange. on generation parcel because million. We higher also January a in FX with of BRLXXX this costs, That of Copel and are also the A of of BRLX.X increase positive and February thermal cash We ended which because period cash have transitory tariff Dis sound

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.

that dispatch first GeT to These information, We fourth vis-a-vis when the XXXX. of an numbers XX% are have this exceptional compared the adjusted Copel was quarter of result and in contribution EBITDA up the has for grown the million BRLXX quarter. at

a was energy in us now higher to level this contracting GeT contract has of we energy the higher that hour the have to of XX% X% highlight of have important because the gigawatt sold quarter specifically a allowed Another in last and reaching strategy X,XXX first optimization quarter. in year, XX%

to gigawatts average BRLXX improvement first optimization hydrological and the the BRL addition X,XXX million In HPPs, X,XXX reverted There in gigawatts, situation of have minus quarter, of million. variation. because million situation, XXXX we that the of over positive has of a from this quarter much have of BRLXX six that our of are the better we

Finally, we increase, de of addition to increase Mata of and impacts contributed mentioned, an to better of has and the and Santa but at positive Matrincha an results works. Genebra already get the have we have that remuneration transmission in conclusions

we costs and program that, market this the network into as increase revenue. to And increase maintenance higher performance grade the We standards. in Now incentive had in in have and not in our addition the totally the electric an as this program. quarter, quarter X%. we of at FC the still regulatory in almost the than in But was in tapped in impact well to higher profit efficiency ended sharing the reduce provision DC

paying that the impact our probably And in a a in in believe in paying that program, reduction the attention reversal going I dividends, negative the first be are sharing this calculation which to it’s rule expect XXXX. year, have impact. relevant to to About negative And a impact to reversion not we we profit negative in this we work this offset the that have in now and quarter, And to have fully will are base. last was We of have was last on here compared Once going year. quarter. – we this future.

year. about this. to very believe we are are happy great we have going So We a

efficiency improvement. are We having

now also sale up costs. the everything are by have June I be already on consolidating the reducing transfer final Telecom that still final We in conclusion And to – results start fifth XX. we but the cycle tariff and done needs say, the the the is stages, we advanced would end that will process to are to the specifically third-party the the services. improving reduction revision the results of transaction billion. mid year, and is of this BRLX.X are of also they contracts the renegotiations also are post that vis-a-vis the then and last on Anyway, and of of cash results we’ll And year, because the with and and based of suppliers. consistent, costs

month, in delivery, this years EBITDA best BRLXX this that seeing congratulations our increase market, quarter, million, to the – sale, market that the we free For in are already from Copel with of Copel million of energy And results, Meca past line country, year. adjusted this in negotiations celebrating of has commercialization just sustainable quarter, addition with some margins, to is largest years and prior in past are Copel Mercado an they Mercado better are EBITDA the is and references. Livre. thanks in improvement the we energy we five BRLXX Remember organization to and whole for are involved. the And Copel companies all Livre commercial in in

just in had they quarter, So one that.

X% of with So reduction you XXXX of have personnel on XXX next comparison redundancy the in line, for see PMSO first, P the now in XXXX. you the have Q voluntary on we first a in the because program page, employees

our in salaries – of over the people almost count. adjusted last program. a reduction X%. less, So whole And have XX% X% in period here, that the were year we already around The that was represented in head X,XXX

quarter. in costs, focused we our About we as to seen on investing several and included and we XXXX the discount X% inflation, are you’ve X% this efficiency, manageable than reduction and always program already profit reduction in improving say, where of P because highest process, profit relevant performance was a when this is results in the always compared increase in an we math again, see regulating here have sharing reviewing for that to say we the compare to about technology, again plan, XXXX. opportunities expect for starting that presentation, considering I was incentive there. when if we see we So there will XXXX that have XXXX. that up program, And quarter, not the were more we today our program better sharing once Talking this to dividends we the change was that prior that

the million. that We of dividends. line, because with had calculation And not and So was is provision be said, the an specifically over have was million, in we will million won’t BRL nonrecurring. a line, quarter BRLXX million is link basically Like and expenses, last in BRLXXX in a million and reduction of FC and I with material last an of starting BRLXX reduction because costs in again. the our increase part services, third-party the XXXX, litigation this for of and of impairment, maintenance dividends year, maintenance increase we there base. there this of specifically fuel that is BRLXX this DC five recognized additional of of grid, the and that’s there In was XXXX, of and

investments this are we Slide GeT We very are the nothing new XX, advanced which investments. on history including and move will aggressive And On are management. our last compensation ever reduction to in agenda. of targets more costs and I related will than just forward, top our talked improving work. works Year. all our Before have see about They cost to year, in like There’s and ahead. the we also the quarter, efficiency of reduce our we focus

approved of billion. the Our BRLX.X budget to is is goal and budget, approved fulfill the

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

without we’ll going capital policy the the long-term. to said, that in limit, X.X right be so and close target, we toward dividend that can as move that already the for over is and we have target goal, to combining investments structure Our reinvest that

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

Operator

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

Operator

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

Okay.

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

Operator

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

Operator

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

Operator

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.