Cia Paranaense De Energia Copel (ELP) Q3 2024 Earnings Call Highlights: Strong Net Income ...

In This Article:

  • Adjusted EBITDA: Exceeded BRL1.2 billion year-to-date.

  • Net Income: Reported net income surpassed BRL1.2 billion, including extraordinary events totaling approximately BRL645 million.

  • Divestment Impact: BRL170 million from Compagas and UEGA divestments; BRL175 million from Copel G&T real estate sale.

  • Dividends: Declared BRL485 million to be paid on November 29.

  • Personnel Costs: Reduced by 11.2% after adjusting for inflation.

  • Adjusted EBITDA (Q3 2024): BRL1.2 billion, 10.9% lower than Q3 2023.

  • Copel Distribution EBITDA: BRL607 million, an 8.7% increase from the previous year.

  • Generation and Transmission EBITDA: BRL649 million, affected by lower P mix and wind farm curtailment.

  • Trading EBITDA: BRL3.2 million, down from BRL20 million last year.

  • Recurring Net Income (Q3 2024): Exceeded BRL572 million, 16% higher than the previous quarter.

  • Reported Net Income (Year-to-Date): BRL2.2 billion, 61% above last year.

  • CapEx: 75% of the year's forecast paid, with Copel Dis accounting for 86% of the forecast.

  • Leverage: Net debt over EBITDA ratio at 1.5x, expected to change after grant bonus payment.

  • Operating Cash Generation: Exceeded BRL1 billion.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cia Paranaense De Energia Copel (NYSE:ELP) reported an adjusted EBITDA exceeding BRL1.2 billion, with a reported net income also surpassing BRL1.2 billion.

  • The company successfully completed divestments at Compagas and UEGA, aligning with its decarbonization strategy and adding BRL170 million to net income.

  • Copel declared dividends of BRL485 million, equivalent to a 50% payout, demonstrating a commitment to shareholder returns.

  • The company executed a significant reduction in personnel costs, achieving an 11.2% drop by optimizing processes and ensuring service quality.

  • Copel's energy sales strategy resulted in a significant margin increase, with improved contracting levels for 2025 and 2026, positioning the company as an agile market player.

Negative Points

  • Copel G&T and COM faced challenges due to curtailment effects on wind assets and energy price decoupling between submarkets.

  • Adjusted EBITDA was 10.9% lower compared to the third quarter of 2023, primarily due to a reduction in average energy prices.

  • The trading segment's adjusted EBITDA dropped significantly to BRL3.2 million from almost BRL20 million last year, impacted by market price differences.

  • The company anticipates a change in leverage following the payment of a BRL4 billion grant bonus for hydroelectric plant concessions.

  • Curtailment levels in renewable generation, particularly in the Northeast, remain a concern, affecting the company's wind farm operations.