In This Article:
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Adjusted EBITDA (Q4 2024): BRL1.3 billion.
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Net Income (Q4 2024): Almost BRL600 million.
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Adjusted EBITDA (Full Year 2024): BRL5.1 billion.
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Net Income (Full Year 2024): BRL2.8 billion.
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Dividends Proposed (2024): Total BRL2.3 billion, with a payout of 86% and dividend yield of approximately 8.4%.
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Copel Distribuicao EBITDA (Q4 2024): BRL715 million, 23.6% higher than the same period last year.
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Copel GeT EBITDA (Q4 2024): BRL613 million.
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Personnel Cost Reduction (Q4 2024): 26.2% reduction due to voluntary severance program.
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Leverage (End of 2024): 2.6 times net debt over EBITDA.
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Operating Cash Generation (Q4 2024): Exceeded BRL1.2 billion.
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CapEx (2024): 88% of total investments focused on Copel Distribuicao.
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cia Paranaense De Energia Copel (NYSE:ELP) reported a robust adjusted EBITDA of BRL1.3 billion for the fourth quarter and BRL5.1 billion for the full year 2024.
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The company proposed a significant dividend payout of BRL2.3 billion for 2024, representing an 86% payout ratio and an 8.4% dividend yield.
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Copel successfully renewed its three main power generation plants for an additional 30 years, ensuring long-term operational stability.
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The company executed strategic asset swaps and sales, including a BRL450 million sale of small hydropower assets and a BRL570 million sale of its stake in Baixo Iguacu.
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Copel maintained a strong focus on operational excellence and cost efficiency, achieving a 46% EBITDA efficiency above the regulatory level for its distribution segment.
Negative Points
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The performance of Copel's wind parks was negatively impacted by curtailment and unavailability of some wind turbines, affecting financial results.
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The company faced a 12% decrease in adjusted EBITDA compared to the fourth quarter of 2023, primarily due to lower sales mix and wind asset performance.
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Curtailment issues and wind volume below certification continued to pose challenges, with a curtailment rate of 13.1% in Q4 2024 compared to 8.3% in Q4 2023.
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Copel's trading segment reported a negative adjusted EBITDA of BRL15 million, reflecting lower trading margins due to price variations in submarkets.
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The company's leverage increased to 2.6 times net debt over EBITDA due to the grant bonus payment for plant renewals, although still within comfortable covenant limits.
Q & A Highlights
Q: Can you discuss Copel's approach to capital allocation and the optimal capital structure for the company? A: Daniel Pimentel Slaviero, CEO, explained that Copel is studying its optimal capital structure, aiming to balance short-term optimization with future flexibility. The current covenant is 3.5, but as a corporation, they are considering a higher limit. Felipe Gutterres, CFO, added that the study's results will be presented with the first quarter results, alongside a simplified dividend policy. The focus remains on good capital allocation and maintaining a strong AAA rating.