Pursuant to Rule 13a-16 or 15d-16 of the
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 3222-2027
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____
| 2Q14 Results COPEL records net income of de R$ 248.3 million in the 2Q14
Curitiba, Brazil, Aug 13, 2014 –Companhia Paranaense de Energia - Copel (BM&FBovespa: CPLE3, CPLE5, CPLE6 / NYSE: ELPVY, ELP / LATIBEX: XCOP), a company that generates, transmits, distributes and sells power, announces its results for the 2nd quarter of 2014. Copel’s consolidated balance sheet presents the figures of its wholly owned subsidiaries, controlled companies and investees. The consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and with accounting practices adopted in Brazil.
Highlights
| ||
2Q14 Results | |||
Conference Call | |||
Friday, August 15, 2014, | |||
at 3:00 p.m. | |||
(Brasília time) | |||
Telephone | |||
(+14 516) 300 1066 | |||
Code: COPEL | |||
Quotes - 06/30/2014 | |||
Ticker | Price | Var. * | |
CPLE3 | R$ 23.50 | 5.4% | |
CPLE6 | R$ 33.88 | 11.0% | |
ELP | US$ 15.31 | 16.5% | |
XCOP | € 11.14 | 17.3% | |
Index | Points | Var. * | |
Ibovespa | 53,168 | 3.2% | |
IEE | 28,133 | 7.2% | |
Dow Jones | 16,826 | 1.5% | |
Latibex | 2,095 | 0.9% | |
* in 2014 | |||
Market value | |||
06/30/2014 | |||
R$ 7.8 billion |
2Q14 | 1Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % | |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Operating Revenues (R$ million) | 3,118 | 3,051 | 2,101 | 48.4 | 6,169 | 4,482 | 37.7 |
Operating Income (R$ million) | 355 | 816 | 368 | (3.7) | 1,170 | 960 | 21.9 |
Net Income (R$ million) | 248 | 583 | 252 | (1.3) | 831 | 650 | 27.8 |
Earnings per share (R$) | 0.91 | 2.13 | 0.92 | (1.3) | 3.04 | 2.38 | 27.8 |
EBITDA (R$ million) | 467 | 859 | 439 | 6.4 | 1,325 | 1,104 | 20.1 |
Return on Shareholders' Equity (annualized) | 7.9% | 19.3% | 8.4% | (5.8) | 13.3% | 10.8% | 22.9 |
Energy Supply (GWh) | 7,231 | 6,878 | 6,785 | 6.6 | 27,008 | 24,652 | 9.6 |
Capex¹ | 545 | 456 | 341 | 60.0 | 1,001.1 | 701 | 42.8 |
EBITDA Margin | 15.0% | 28.1% | 20.9% | (28.3) | 21.5% | 24.6% | (12.8) |
Operating Margin | 11.4% | 26.7% | 17.5% | (35.1) | 19.0% | 21.4% | (11.5) |
Net Margin | 8.0% | 19.1% | 12.0% | (33.5) | 13.5% | 14.5% | (7.1) |
Values subject to rounding adjustments. ¹ Includes contributions and advances for future investments and capital increases. | |||||||
Average Rates (BRL / MWh) | Jun-14 | Mar/14 | Dec/13 | Sep/13 | Jun/13 | Mar/13 |
Power Purchase Average Rate - Copel Distribuição | 174.40 | 144.37 | 132.65 | 132.57 | 129.59 | 121.99 |
Retail Average Rate - Copel Distribuição | 225.56 | 226.12 | 225.33 | 227.53 | 206.15 | 205.68 |
Sales to Distributors Average Rate - Copel GeT | 150.56 | 147.72 | 125.18 | 123.81 | 121.34 | 117.39 |
Indicators | Jun-14 | Mar/14 | Dec/13 | Sep/13 | Jun/13 | Mar/13 |
Equity | 13,520 | 13,503 | 12,929 | 13,116 | 12,942 | 12,757 |
Net debt | 3,103 | 2,817 | 2,280 | 1,370 | 1,066 | 1,409 |
Book Value per Share | 49.41 | 49.34 | 47.24 | 47.93 | 47.29 | 46.62 |
Net debt/ Shareholders' Net Equity | 42.2% | 33.6% | 35.1% | 26.8% | 25.2% | 25.6% |
Current Liquidity | 1.7 | 1.5 | 1.4 | 1.5 | 1.6 | 1.6 |
![]() |
LIST OF CONTENTS
1. Main Events in the Period | 3 |
2. Financial Performance | 7 |
2.1 Operating Revenues | 7 |
2.2 Operating Costs and Expenses | 8 |
2.3 Equity in the Earnings of Subsidiaries | 10 |
2.4 EBITDA | 10 |
2.5 Financial Result | 11 |
2.6 Consolidated Net Income | 11 |
2.7 Consolidated Income Statement | 12 |
3. Balance Sheet | 13 |
3.1 Assets | 13 |
3.2 Liabilities | 16 |
3.3 Debt and Shareholders Equity | 17 |
4. Performance by Subsidiary | 19 |
4.1 Generation and Transmisssion | 19 |
4.2 Distribution | 20 |
4.3 Telecommunications | 21 |
5. Investment Program | 22 |
6. Power Market and Tariffs | 22 |
6.1 Captive Market | 22 |
6.2 Grid Market (TUSD) | 23 |
6.3 Electricity Sales to Final Customers | 24 |
6.4 Total Energy Sold | 24 |
6.5 Energy Flows | 25 |
6.6 Tariffs | 28 |
7. Capital Market | 29 |
7.1 Capital Stock | 29 |
7.2 Stock Performance | 29 |
7.3 Dividends and Interest on own Capital | 31 |
8. Operating Performance | 32 |
8.1 Generation | 32 |
8.2 Transmission | 36 |
8.3 Distribution | 37 |
8.4 Telecommunications | 39 |
8.5 Equity Interests | 40 |
8.6 New Projects | 41 |
9. Supplementary Information | 44 |
9.1 Human Resources | 44 |
9.2 Main Operational Indicators | 45 |
9.3 2Q14 Results Conference Call | 46 |
Exhibit I Consolidated Financial Statements | 47 |
Exhibit II Financial Statements Wholly Owned Subsidiaries | 48 |
Exhibit III Financial Statements by Company | 51 |
* Amounts subject to rounding.
2
1. Main Events in the Period
COPEL’s net income totaled R$ 248.3 million in 2Q14, 1.3% lower than the R$ 251.6 million recorded in the same period of 2013. This result is explained, (a) the increase in revenue stemming from the expansion of Copel Distribuição’s captive market and the sale of the energy produced by the Araucária Thermal Power Plant in the spot market, and (b) lower personnel costs, offset by the 76.8% upturn in costs with electricity purchased for resale. In the first half of 2014, COPEL’s net income totaled R$ 831.3 million, 27.8% higher than in 1H13. For further information, please refer to item 2.
Tariff Increase – Copel Distribuição
On June 24, ANEEL published Resolution 1740 establishing Copel Distribuição’s annual tariff increase. The authorized average tariff increase was 35.05%, 24.78% of which related to the average economic adjustment index, 6.00% to the financial components of the current tariff year, and 4.27% to the exclusion of the financial components from the previous tariff year; it does not include the financial component resulting from the partial deferral of the 2013 tariff increase index (R$ 275.9 million). If the previous cycle’s deferral were included, pursuant to Aneel Technical Note 193/14, the average increase for consumers would be 39.71%. On the same date, the Company requested ANEEL to suspend the increase, with the prospect of deferral of the application of the authorized tariff increase index.
Granting the Company’s request, on July 22, ANEEL approved the partial deferral of the 35.05% average increase, authorizing the application of a 24.86% average increase, retroactive to June 24, and the deferral of the remaining percentage, equivalent to R$ 898.3 million (including the partial deferral of the 2013 tariff increase index), to be considered as a financial component that will be restated by the IGP-M general market price index and included in the calculation of the subsequent tariff adjustment.
¹ Aneel Technical Note 193/14
² Restated by the IGP-M general market price index.To be included in the subsequent tariff increase.
Aneel approved the transfer of a monthly amount of R$28.7 million in CDE funds to Copel Distribuição between June 2014 and May 2015 to cover tariff discounts, pursuant to Decree 7891, of January 23, 2013.Annual Permitted Revenue (APR) of Transmission Assets
* Amounts subject to rounding.
3
ANEEL, through Resolution 1756, dated June 24, 2014, established annual permitted revenue for electricity transmission concessionaires.The permitted amount for the 2014/2015 cycle for Copel GeT’s and SPC’s operating transmission assets is R$ 191.9 million, 26.2% higher than the amount granted for the previous cycle, due to (a) the adjustment of contracts for period inflation, (b) system improvements approved by Aneel, and (c) the start-up of new assets.
In addition to its operating assets, COPEL, through Copel GeT or SPCs, is building 15 new projects and the restated APR of these assets, proportional to COPEL’s interest, totals R$ 305.8 million. For further details, please refer to item 8.2.
CVA Effects
If the regulatory assets and liabilities were recognized, the gross effect of changes to the Account for Compensation of Portion A (CVA) on Copel Distribuição’s result would be a positive R$ 266.3 million in 2Q14 (versus a negative R$ 31.1 million in 2Q13).In the first half of 2014, the gross effect of CVA was a positive R$ 531.6 million, versus a positive R$ 114.7 million in 1H13,as shown below:
2Q14 | 1Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % | |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
CVA - Gross Efect (R$ million) | 266.3 | 265.3 | 31.1 | - | 531.6 | 114.7 | 363.6 |
Copel Distribuição | |||||||
EBITDA (R$ million) | (295.5) | (20.7) | 97.0 | - | (316.2) | (4.4) | - |
EBITDA Adjusted (R$ million) | (29.2) | 244.6 | 65.9 | - | 215.4 | 110.3 | 95.4 |
Copel Consolidated | |||||||
EBITDA (R$ million) | 466.8 | 858.6 | 438.9 | 6.4 | 1,325.3 | 1,103.8 | 20.1 |
EBITDA Adjusted (R$ million) | 733.1 | 1,123.8 | 407.8 | 79.8 | 1,857.0 | 1,218.5 | 52.4 |
For further information on CVA, please refer to Note 37 in our Quarterly Information.
Araucária Thermal Power Plant
Result –In 2Q14, UEGA’s consolidated net revenue totaled R$ 568.8 million, while net income stood at R$ 111.4 million and EBITDA came to R$ 167.2 million. In 1H14, UEGA’s net revenue amounted to R$ 1,043.1 million, while EBITDA totaled R$ 333.9 million and net income stood at R$ 244.8 million. The TPP´s dispatch was 1,499,791, wich represents a average production 417 average MW.
Unit Variable Cost– On July 10, 2014, ANEEL, through Order 2476, approved the amount of R$ 578.06/MWh for the unit variable cost of the Araucária Thermal Power Plant to be applied in June 2014. On August 12, 2014, ANEEL, through Order 3093 approved the amount of R$ 578.06/MWh for the unit variable cost of the AraucáriaThermal Power Plant to be applied by CCEE since July 1, 2014. The amount of produced energy is shown below:
* Amounts subject to rounding.
4
GWh | |||
TPP Araucária - UEGA | Apr-Jun/14 | Feb-Mar/14 | 1H14 |
Own Generation | 854 | 646 | 1,500 |
Compensation of Electricity Costs (Transfer of CDE Funds and ACR Account)
The Brazilian government issued decree 8203/2014, amending Decree 7945/2013 and permitting the transfer of CDE funds to cover costs arising from the involuntary exposure of distributors in January 2014.
In April 2014, the Brazilian government issued Decree 8221/2014 creating the Regulated Market Account (ACR account) to cover the distributors' expenses arising from: (a) involuntary exposure to the spot market, and (b) the dispatch of thermal power plants linked to the CCEAR (regulated spot market) agreements under the availability model between February and December 2014.
Between January and April, the Company received funds (CDE funds and the ACR account) totaling R$ 1,062.0 million, of which (a) R$ 114.6 million refers to January, (b) R$ 447.3 million to February, (c) R$ 321.9 million to March, (d) R$ 176.8 million to April, and (e) R$ 1.4 million to previous estimate adjustments. The amounts were recognized as compensation of electricity costs, as detailed in Note 31.1 of our Quarterly Information.
5th Debenture Issue
On May 28, COPEL held its 5th issue of non-convertible debentures, in a single series, for public distribution with restricted placement efforts, pursuant to CVM Instruction 476/2009, comprising 100,000 securities at R$ 10,000 each, totaling R$ 1.0 billion. With a five-year term and amortization at the end of the 3rd, 4th and 5th years, the debentures yield 111.5% of the average one-day DI rates and the payment of interest are every six months.The proceeds were allocated to the Company’s working capital and investments.
1stDebenture Issue – Wind Farm Complex
On June 30, the SPEs that make up the wind farm complex formed by the projects Nova Asa Branca I, Nova Asa Branca II, Nova Asa Branca III, Nova Eurus IV, Santa Maria, Santa Helena and Ventos de Santo Uriel held their 1st debenture issue for public distribution with restricted placemen efforts, pursuant to CVM Instruction 476/2009, totaling R$ 330.0 million.At the CDI + 0.9% p.y, the debentures mature in twelve months, with amortization at the end of the term.The proceeds were allocated to the redemption of first issue promissory notes and investments in wind farms.
* Amounts subject to rounding.
5
Wind Farms – Voltalia
On June 11, 2014, the 145th Board of Directors’ Meeting approved the acquisition of 49% of the São Miguel do Gostoso wind farm complex, in Rio Grande do Norte State, from Voltalia Energia do Brasil Ltda. – Voltalia, which retained the remaining interest (51%). The São Miguel do Gostoso wind farm complex, which is already under implementation, comprises four wind farms, 108 MW installed capacity, whose energy was sold in the Fourth Reserve Energy Auction at the average price of R$ 98.92/MWh under twenty-year contracts, with supply beginning in April 2015. For further details, please refer to item 8.1.
Start-up – Cerquilho III Substation
On July 28, Copel GeT’s first substation outside Paraná State, Cerquilho III (230 kV), began operating.The substation has 300 MVA and is located in the municipality of Cerquilho, near Campinas, in São Paulo State.With total investments of R$ 44 million and concession until October 2040, the project adds R$ 4.2 million to Copel GeT’s APR. For further details, please refer to item8.2.
Start-up – Caiuá Transmissora de Energia
On July 21, Caiuá Transmissora de Energia S.A, a SPC formed by Copel GeT (49%) in partnership with Elecnor (51%), concluded the start-up of the Umuarama - Guaíra (230 kV) and Cascavel Oeste - Cascavel Norte C2 (230 kV) transmission lines, as well as the Cascavel Norte (300 MVA) and Santa Quitéria (400 MVA) substations in Paraná State.With total investments of R$ 195.0 million, the projects have a joint APR of R$ 20.6 million.. For further details, please refer to item 8.2.
Generation Works – Colíder Hydroelectric Power Plant
At the close of June, 79% of the construction works had been concluded.The construction of the dam was resumed in April, after the rainy season ended in Mato Grosso, and is progressing at a fast pace.Meanwhile, we are concreting the final structures and assembling the electromechanical equipment in the power house.We have obtained environmental licenses authorizing the clearance of the area to be flooded to form the future reservoir.For further details, please refer to item 8.1.
Copel GeT enters into a partnership to expand the Palmas Wind Farm Complex
Copel GeT (13%) entered into a term of commitment with WEG Equipamentos Elétricos (87%) for the joint implementation of the Palmas II wind farm in the municipality of Palmas, in Paraná State.The Brazilian anti-trust agency (Cade) approved the creation of this SPC, whose purpose is to expand the Palmas Wind Farm Complex.It will have up to two wind turbines with a capacity of 2.1 MW each and allows the future installation of a third 3.3 MW wind turbine.The wind turbines will be supplied and implemented by WEG.
* Amounts subject to rounding.
6
2. Financial Performance
2.1 Operating RevenuesIn 2Q14,operating revenues reachedR$ 3,118.2million,48.4% up on the R$ 2,101.1 million in the same period of 2013, led by: (i) the 17.2% increase in revenue from “electricity sales to final customers”, (which reflects only actual sales revenues, excluding the distribution grid tariff TUSD), chiefly due to: (a) the 9.55% tariff increase in Copel Distribuição as of June 24, 2013, and (b) the 4.9% upturn in Copel Distribuição’s captive market; | ![]() |
(ii) the 240.0% increase in “electricity sales to distributors”, mainly stemming from (a) higher spot market (CCEE) revenue, due to the Araucária Thermal Power Plant’s energy sales in the short-term market, (b) increased Copel GeT’s energy sales in the short-term market, and (c) higher energy prices (PLD) in the period;
(iii)the 8.4% upturn in “use of the main distribution and transmission grid” item (TUSD and TUST revenue), due to the expansion of Copel Dis’ grid market;
(iv) the 20.9% increase in “construction revenue”, as a result of the booking of investments in construction services and improvements to electricity distribution and transmission infrastructure;
(v)the 19.2% upturn in “revenues from telecommunication”, following the expansion of the area of operations and the provision of services to new customers – the customer base grew from 4,977 at the end of June 2013 to 13,135 to the end of June 2014;
(vi) the 8.5% increase in “distribution of piped gas” (supplied by Compagas), chiefly due to the tariff increase (7.0% in March 2014) and market growth in the period. It is worth noting that Compagas’ revenue moved up substantially thanks to the gas supply to the Araucária Thermal Power Plant; however, this effect is eliminated in the consolidated result as it refers to a company belonging to the same group; and
(vii)the 59.0% reduction in “other operating revenues”, mainly due to lower lease revenue, as a result of the end of the agreement for the lease of Araucária Thermal Power Plant with PETROBRAS on January 31, 2014.
* Amounts subject to rounding.
7
In the first six months, COPEL's net revenue moved up by 37.7% year on year, from R$ 4,481.5 million in 1H13 to R$ 6,169.2 million in 1H14, chiefly due to (a) the Araucarária Thermal Power Plant’s energy sales, (b) the allocation of energy to the spot market by Copel GeT, and (c) the 4.9% upturn in Copel’s electricity sales to final customers, comprising sales in Copel Distribuição’s captive market and Copel Geração e Transmissão’s sales in the free market.
2.2 Operating Costs and ExpensesIn 2Q14, operating costs and expenses reached R$ 2,834.9 million, 55.7% up on the R$ 1,820.2 million recorded in 2Q13. The most important variations were: (i) the 76.8% increase in “electricity purchased for resale”, chiefly due to higher costs with energy acquisition (a) in CCEAR auctions, arising from (i) new agreements, especially the “A” auction on April 30, 2014, in which Copel acquired 388 average-MW at R$ 268.33, (ii) the higher dispatch of thermal power plants and (iii) the monetary restatement of agreements based on period inflation, and (b) in the short-term market, due to the difference settlement price (PLD), partially offset by ACR account funds; | ![]() |
* Amounts subject to rounding.
8
R$'000 | |||||||
Electricity Purchased for Resale | 2Q14 | 1Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Itaipu | 172,480 | 182,265 | 153,420 | 12.4 | 354,745 | 285,154 | 24.4 |
CCEAR (Auction) | 878,078 | 620,303 | 586,310 | 49.8 | 1,498,381 | 1,118,815 | 33.9 |
Bilateral | 56,097 | 60,162 | 48,980 | 14.5 | 116,259 | 106,038 | 9.6 |
CCEE | 382,544 | 995,843 | 107,449 | 256.0 | 1,378,387 | 356,867 | 286.2 |
(-) Transfer CDE - CCEE | (230,230) | (831,771) | (180,525) | 27.5 | (1,062,001) | (274,130) | 287.4 |
Proinfa | 45,429 | 46,000 | 41,714 | 8.9 | 91,429 | 83,387 | 9.6 |
(-) Pis / Pasep and Cofins | (112,151) | (90,492) | (82,870) | 35.3 | (202,643) | (159,951) | 26.7 |
TOTAL | 1,192,247 | 982,310 | 674,478 | 76.8 | 2,174,557 | 1,516,180 | 43.4 |
The increase in CCEE expenses was due to the comparative base effect, as, in 2Q13, Copel Disitribuição received R$ 180 million in reimbursement (anticipationof CVA for the tariff increase) and spent R$ 107 million, giving a net credit of R$73 million in CCEE in 2Q13. | |||||||
(ii) the 370.1% increase in “charges of the main distribution and transmission grid”, chiefly due to the comparative base effect, as there was a non-recurring transfer of CDE funds totaling R$ 200.0 million in 2Q13 to reimburse costs with System Service Charges – ESS related to the dispatch of thermal power plants outside the merit order at the beginning of 2013;
R$ '000 | |||||||
Charges of the main distribution and transmission grid | 2Q14 | 1Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
System Service Charges - ESS | 15,523 | 20,135 | 111,318 | (86.1) | 35,658 | 308,864 | (87.5) |
(-) Transfer CDE - ESS | - | - | (199,945) | - | - | (319,624) | - |
System usage charges distribution | 60,609 | 65,137 | 53,312 | 13.7 | 125,746 | 216,683 | 16.1 |
System usage charges basic network and connection | 45,046 | 44,111 | 43,206 | 4.3 | 89,157 | 177,846 | 4.9 |
Itaipu transportation charges | 15,027 | 14,920 | 12,538 | 19.9 | 29,947 | 51,188 | 20.1 |
Charge reserve energy - EER | 4,554 | - | 10,524 | (56.7) | 4,554 | 16,672 | (66.7) |
(-) PIS / Pasep and Cofins taxes on charges for use of power grid | (13,363) | (13,726) | (3,855) | 246.6 | (27,089) | (44,312) | 39.6 |
TOTAL | 127,396 | 130,577 | 27,098 | 370.1 | 257,973 | 407,317 | 44.0 |
(iii) the 6.5% decline in “personnel and management” to R$ 229.6 million in 2Q14, mainly as a result of the 8.0% decrease in expenses with compensation and related charges, chiefly due to the 8.2% year-on-year reduction in the number of employees;
(iv) the 8.4% upturn in “pension and healthcare plans”, which reflects the accrual of amounts related to the private pension and healthcare plans, calculated in accordance with CVM Resolution 695/2012, chiefly due to higher expenses with healthcare plans;
(v) the “materials and supplies for power electricity” line includes costs with the acquisition of coal for the Figueira Thermal Power Plant and natural gas for the Araucária Thermal Power Plant, and considers the elimination between companies of the same group (Araucaria TPP buys gas from Compagas);
(vi) the 394.6% upturn in “natural gas and supplies for the gas business", as a result of the purchase of natural gas by Compagas to supply, especially, the Araucária Thermal Power Plant, which has been operated by UEGA, a company controlled by COPEL, since February 1, 2014;
(vii) the 1.0% increase in "third-party services”, due to higher costs with (a) facility maintenance and (b) dataprocessing and transmission, partially offset by lower costs with (a) consulting and audit services and (b) metering and bill delivery;
* Amounts subject to rounding.
9
(viii) “provisions and reversals” of R$ 88.0 million in the period, mostly related to provisions for (a) civil and administrative claims, (b) labor claims, and (c) doubtful accounts;
(ix) the 21.9% increase in “construction costs”, as a result of investments in power distribution and transmission in the period;
(x) the 23.5% upturn in “other costs and expenses”, chiefly due to increased costs with (a) taxes, and (b) financial compensation for the use of water resources, following higher hydro power generation in the period, partially offset by lower indemnification and maintenance costs.
R$ '000 | |||||||
Operating Costs and Expenses | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var.% |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Electricity purchased for resale | 1,192,247 | 982,310 | 674,478 | 76.8 | 2,174,557 | 1,516,180 | 43.4 |
Charge of the main distribution and transmission grid | 127,396 | 130,577 | 27,098 | 370.1 | 257,973 | 179,175 | 44.0 |
Personnel and management | 229,614 | 218,824 | 245,473 | (6.5) | 448,438 | 486,972 | (7.9) |
Pension and healthcare plans | 47,202 | 49,417 | 43,564 | 8.4 | 96,619 | 85,698 | 12.7 |
Materials and supplies | 18,198 | 18,186 | 17,517 | 3.9 | 36,384 | 35,397 | 2.8 |
Materials and supplies for power eletricity | 45,182 | 4,928 | 10,220 | 342.1 | 50,110 | 14,481 | 246.0 |
Natural gas and supplies for the gas business | 386,548 | 314,758 | 78,160 | 394.6 | 701,306 | 140,471 | 399.3 |
Third-party services | 108,719 | 91,785 | 107,689 | 1.0 | 200,504 | 199,076 | 0.7 |
Depreciation and amortization | 154,190 | 153,972 | 145,571 | 5.9 | 308,162 | 292,412 | 5.4 |
Provisions and reversals | 87,968 | 61,034 | 112,583 | (21.9) | 149,002 | 132,119 | 12.8 |
Construction cost | 328,282 | 298,281 | 269,278 | 21.9 | 626,563 | 464,076 | 35.0 |
Other cost and expenses | 109,350 | 77,680 | 88,531 | 23.5 | 187,030 | 156,056 | 19.8 |
TOTAL | 2,834,896 | 2,401,752 | 1,820,162 | 55.7 | 5,236,648 | 3,702,113 | 41.5 |
In the first six months of 2014, operating costs and expenses totaled R$ 5,236.6 million, 41.5% up on 1H13, chiefly due to (a) higher energy acquisition costs, as a result of new agreements (CCEAR) and the difference settlement price (PLD) in the period, (b) the acquisition of natural gas and supplies for the gas business, due to the dispatch of the Araucária TPP, and (c) construction costs totaling R$ 626.6 million, mainly stemming from the construction of new transmission assets, partially offset by the 7.9% decline in personnel and management in the period.
2.3 Equity in the Earnings of Subsidiaries
Equity in the results of subsidiaries reflects gains and losses from investments in COPEL's investees.In 2Q14, equity in the earnings of subsidiaries totaled R$ 29.3 million, comprising gains from Dominó Holdings (SANEPAR), Dona Francisca Energética, Foz do Chopim Energética, and energy transmission SPCs.In the first six months of 2014, equity in the earnings of subsidiaries came to R$ 84.6 million.
* Amounts subject to rounding.
10
2.4 EBITDA
In 2Q14, earnings before interest, taxes, depreciation and amortization totaled R$ 466.8 million, an increase of 6.4% over the R$ 438.9 million recorded in 2Q13.In 1H14, EBITDA moved up by 20.1% year on year to R$ 1,325.3 million.
2.5 Financial Result
Between April and June, financial revenuestotaled R$ 158.4 million, 2.3% up on 2Q13, due to the increase in income from financial investments, as a result of higher interest rates, partially offset by the lower monetary restatement of accounts receivable related to the concession, and of the CRC balance, due to the period decline in inflation (IGP-M and IGP-DI general price indices, respectively).In 1H14, financial revenues climbed 27.4% over 2Q13 to R$ 383.5 million.
Financial expenses totaled R$ 116.4 million, 45.7% higher than in 2Q13, chiefly due to the increase in debt charges and monetary restatement, as a result of higher indebtedness and interest rates. In the first six months of 2014, financial expenses totaled R$ 230.4 million, 51.6% higher than in 1H13.
The 2Q14 financial result was a positive R$ 42.1 million, 44.0% down on the positive R$ 75.1 million recorded in 1H13.In 1H14, the financial result was a positive R$ 153.0 million, 2.7% higher than in the same period last year.
R$'000 | |||||||
2Q14 | 1Q14 | 2Q13 | Var% | 1H14 | 1H13 | Var% | |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Financial Revenues | 158,445 | 225,011 | 154,922 | 2.3 | 383,456 | 300,955 | 27.4 |
Income and monetary variation on CRC transfer | 27,834 | 57,844 | 35,520 | (21.6) | 85,678 | 68,401 | 25.3 |
Monetary restatement on indemnifiable assets - concession | (2,022) | 53,371 | 18,354 | (111.0) | 51,349 | 35,197 | 45.9 |
Monetary restatement on indemnified assets - extension of theconcession | 15,159 | 18,677 | 21,842 | (30.6) | 33,836 | 53,891 | (37.2) |
Income from financial investments | 48,517 | 42,120 | 38,489 | 26.1 | 90,637 | 70,728 | 28.1 |
Late fees on electricity bills | 54,560 | 40,413 | 30,820 | 77.0 | 94,973 | 57,692 | 64.6 |
Other financial revenues | 14,397 | 12,586 | 9,897 | 45.5 | 26,983 | 15,046 | 79.3 |
Financial Expenses | (116,382) | (114,044) | (79,865) | 45.7 | (230,426) | (151,999) | 51.6 |
Debt charges | (80,018) | (71,794) | (52,059) | 53.7 | (151,812) | (100,177) | 51.5 |
Monetary variation - ANEEL Concession - Use of public asset | (11,358) | (22,987) | (15,011) | (24.3) | (34,345) | (29,888) | 14.9 |
Pis/ Pasep and Cofins taxes over interest on equity | (736) | (6) | (886) | (16.9) | (742) | (886) | (16.3) |
Monetary and exchange variation | (12,702) | (4,887) | (6,357) | 99.8 | (17,589) | (8,279) | 112.5 |
Other financial expenses | (11,568) | (14,370) | (5,552) | 108.4 | (25,938) | (12,769) | 103.1 |
Financial income (expenses) | 42,063 | 110,967 | 75,057 | (44.0) | 153,030 | 148,956 | 2.7 |
2.6 Consolidated Net Income
In 2Q14, COPEL recorded net income of R$ 248.3 million, 1.3% down on the same period in 2013 (R$ 251.6 million).In 1H14, the Company’s net income grew by 27.8% year on year to R$ 831.3 million.
* Amounts subject to rounding.
11
2.7 Consolidated Income Statement
R$'000 | |||||||
Income Statement | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var.% |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
OPERATING REVENUES | 3,118,174 | 3,051,072 | 2,101,132 | 48.4 | 6,169,246 | 4,481,542 | 37.7 |
Electricity sales to final customers | 920,431 | 922,710 | 785,579 | 17.2 | 1,843,141 | 1,556,774 | 18.4 |
Electricity sales to distributors | 1,172,896 | 1,107,926 | 344,925 | 240.0 | 2,280,822 | 1,069,692 | 113.2 |
Us e of the main distribution and transmission grid | 503,384 | 557,924 | 464,403 | 8.4 | 1,061,308 | 977,403 | 8.6 |
Construction revenue | 336,711 | 289,848 | 278,494 | 20.9 | 626,559 | 459,685 | 36.3 |
Revenues from telecommunications | 40,040 | 39,252 | 33,590 | 19.2 | 79,292 | 66,292 | 19.6 |
Distribution of piped gas | 104,604 | 80,861 | 96,407 | 8.5 | 185,465 | 175,628 | 5.6 |
Other operating revenues | 40,108 | 52,551 | 97,734 | (59.0) | 92,659 | 176,068 | (47.4) |
OPERATING COSTS AND EXPENSES | (2,834,896) | (2,401,752) | (1,820,162) | 55.7 | (5,236,648) | (3,702,113) | 41.5 |
Electricity purchased for resale | (1,192,247) | (982,310) | (674,478) | 76.8 | (2,174,557) | (1,516,180) | 43.4 |
Charge of the main distribution a nd transmission grid | (127,396) | (130,577) | (27,098) | 370.1 | (257,973) | (179,175) | 44.0 |
Personnel a nd management | (229,614) | (218,824) | (245,473) | (6.5) | (448,438) | (486,972) | (7.9) |
Pension and healthcare plans | (47,202) | (49,417) | (43,564) | 8.4 | (96,619) | (85,698) | 12.7 |
Materials a nd supplies | (18,198) | (18,186) | (17,517) | 3.9 | (36,384) | (35,397) | 2.8 |
Materials a nd supplies for power eletricity | (45,182) | (4,928) | (10,220) | 342.1 | (50,110) | (14,481) | 246.0 |
Natural gas a nd supplies for the ga s business | (386,548) | (314,758) | (78,160) | 394.6 | (701,306) | (140,471) | 399.3 |
Third-party services | (108,719) | (91,785) | (107,689) | 1.0 | (200,504) | (199,076) | 0.7 |
Depreciation a nd a mortization | (154,190) | (153,972) | (145,571) | 5.9 | (308,162) | (292,412) | 5.4 |
Provis ions a nd reversals | (87,968) | (61,034) | (112,583) | (21.9) | (149,002) | (132,119) | 12.8 |
Construction cost | (328,282) | (298,281) | (269,278) | 21.9 | (626,563) | (464,076) | 35.0 |
Other cost and expenses | (109,350) | (77,680) | (88,531) | 23.5 | (187,030) | (156,056) | 19.8 |
EQUITY IN EARNINGS OF SUBSIDIARIES | 29,313 | 55,269 | 12,362 | 137.1 | 84,582 | 31,970 | 164.6 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 312,591 | 704,589 | 293,332 | 6.6 | 1,017,180 | 811,399 | 25.4 |
FINANCIAL RESULTS | 42,063 | 110,967 | 75,057 | (44.0) | 153,030 | 148,956 | 2.7 |
Financial i ncome | 158,445 | 225,011 | 154,922 | 2.3 | 383,456 | 300,955 | 27.4 |
Financial expenses | (116,382) | (114,044) | (79,865) | 45.7 | (230,426) | (151,999) | 51.6 |
OPERATIONAL EXPENSES/ INCOME | 354,654 | 815,556 | 368,389 | (3.7) | 1,170,210 | 960,355 | 21.9 |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (106,398) | (232,506) | (116,774) | (8.9) | (338,904) | (310,084) | 9.3 |
Income tax and s ocial contribution on profit | (265,700) | (283,071) | (176,073) | 50.9 | (548,771) | (438,740) | 25.1 |
Deferred i ncome tax and s ocial contribution on profit | 159,302 | 50,565 | 59,299 | 168.6 | 209,867 | 128,656 | 63.1 |
NET INCOME (LOSS) | 248,256 | 583,050 | 251,615 | (1.3) | 831,306 | 650,271 | 27.8 |
Attributed to controlling s hareholders | 212,488 | 536,567 | 240,589 | (11.7) | 749,055 | 632,461 | 18.4 |
Attributed to non-controlling interest | 35,768 | 46,483 | 11,026 | 224.4 | 82,251 | 17,810 | 361.8 |
EBITDA | 466,781 | 858,561 | 438,903 | 6.4 | 1,325,342 | 1,103,811 | 20.1 |
* Amounts subject to rounding.
12
The main lines and variations in the Balance Sheet in relation to December 2013 are described below. Please refer to the notes in our Quarterly Information (ITRs) for additional information.
3.1 Assets
On June 30, 2014, COPEL’s assets totaled R$ 25,066.0 million, 8.5% up on December 31, 2013.
Main Variations in the Period
Current assets:
(i) the 18.5% increase in “cash and cash equivalents”, chiefly due to the increase in highly liquid financial investments, mainly as a result of the debenture issue totaling R$ 1.0 billion in May 2014;
(ii) the 10.3% upturn in “bonds and securities”, chiefly due to higher guarantees for (a) ANEEL auctions and (b) financing for the construction of transmission lines and hydro power plants;
(iii) the 38.1% increase in “customers”, mainly thanks to R$ 532.2 million related to the allocation of energy to the spot market by Copel GeT (R$ 102.7 million) and the dispatch of the Araucária Thermal Power Plant (R$ 413.3 million), due to the suspension of the financial settlement scheduled for May, which was postponed to August 29, 2014;
(iv) the 26.9% increase in “other current receivables”, mostly as a result of the recording of R$ 155.7 million related to CDE funds to be transferred by Eletrobras to cover the tariff discounts applicable to users of public distribution services.
Non-current assets:
(i) the 11.9% increase in “accounts receivable related to the concession”, chiefly due to capitalization of intangible assets in progress (investments) and the monetary restatement (IGP-M) of the assets related to the distribution and transmission concessions;
(ii) the 48.2% decline in “accounts receivable related to the extension of the concession”, as a result of the transfer of R$ 176.1 million to current assets; and
(iii) the 17.7% upturn in “deferred income tax and social contribution”, due to the recognition of tax losses and negative basis of calculation by Copel Distribuição.
Investments, Property, Plant and Equipment and Intangible Assets
"Investments" moved up by 17.3% in the first six months of 2014, due to period transfers and equity in the earnings of subsidiaries. “Property, plant and equipment” increased by 2.2%, due to new assets, in accordance with the Company's investment program, net of period depreciation. “Intangible assets” moved up by 4.0%, fuelled by the recognition of investments in new assets, partially offset by amortizations related to COPELDistribuição’s Concession Agreement.
* Amounts subject to rounding.
13
Main asset accounts
Cash, Cash Equivalents and Marketable Securities
On June 30, 2014, the cash, cash equivalents and marketable securities of COPEL’s wholly owned subsidiaries and controlled companies totaled R$ 2,608.6 million and were mostly invested in Bank Deposit Certificates (CDBs) and repo transactions. The investments earned an average yield of the period variation in the Interbank Deposit Certificate (CDI) rate.
CRC Transferred to the State of Paraná
Through the fourth addendum signed on January 21, 2005, the Company renegotiated the CRC balance on December 31, 2004 with the State of Paraná at R$ 1,197.4 million, in 244 monthly installments recalculated by the price amortization system, restated by the IGP-DI inflation index plus annual interest of 6.65%. The first installment was due on January 30, 2005, with subsequent and consecutive maturities until April 2025. The current CRC balance is R$ 1,365.7million.
The State of Paraná has been paying the renegotiated installments pursuant to the fourth addendum, whose amortizations are guaranteed by dividends.
In 2013, the CRC balance was transferred from Copel Distribuição to COPEL, as permitted by Aneel (Order 4222, of December 11, 2013), with the settlement of a loan between the Companies and the transfer of the remaining financial balance.
Accounts Receivable Related to the Extension of the Concession
Following COPEL’s acceptance of the conditions established by the government agency for the anticipation of the extension of the transmission assets (Provisional Measure 579), on November 1, 2012, through Ordinances 578 and 579 and Interministerial Ordinance 580, the Ministry of Mines and Energy announced the indemnification the Company is entitled to under Transmission Concession Agreement 060/2001, in the amount of R$ 893.9 million (considering only the assets that began operating after May 2000). On June 30, the amount recorded in this account totaled R$ 574.8 million, R$ 143.0 million lower than in December 2013, due to amortizations in the period.
With the enactment of Law 12783, on January 11, 2013, the government agency reconsidered the right of indemnification for the assets existing on May 31, 2000 (RBSE), and Aneel Resolution 589, of December 13, 2013, established that the indemnification would be calculated based on the New Replacement Value (VNR), less the asset depreciation rate. Copel is calculating the indemnification amount to present to Aneel.
* Amounts subject to rounding.
14
R$'000 | |||||
Assets | Jun/14 | Dec/13 | Jun/13 | Var.% | Var.% |
(1) | (2) | (3) | (1/2) | (1/3) | |
CURRENT | 5,704,523 | 4,680,284 | 4,884,296 | 21.9 | 16.8 |
Cash a nd cash equivalents | 2,063,537 | 1,741,632 | 1,570,383 | 18.5 | 31.4 |
Bonds and s ecurities | 429,447 | 389,222 | 478,267 | 10.3 | (10.2) |
Collaterals and escrow a ccounts | 21,235 | 1,976 | 32,495 | 974.6 | (34.7) |
Customers | 1,847,832 | 1,337,628 | 1,276,733 | 38.1 | 44.7 |
Dividends receivable | 17,795 | 9,500 | 8,174 | 87.3 | 117.7 |
CRC transferred to the State Government of Paraná | 89,184 | 85,448 | 79,151 | 4.4 | 12.7 |
Account receivable related to concession | 6,258 | 4,396 | 4,257 | 42.4 | 47.0 |
Accounts receivable related to the concession extension | 385,264 | 352,161 | 352,161 | 9.4 | - |
Other current receivables | 502,416 | 395,890 | 682,247 | 26.9 | (26.4) |
Inventories | 140,515 | 139,278 | 135,145 | 0.9 | 4.0 |
Income ta x and social contribution | 65,506 | 133,158 | 179,674 | (50.8) | (63.5) |
Other current recoverable taxes | 117,882 | 70,013 | 65,663 | 68.4 | 79.5 |
Prepaid expenses | 17,652 | 19,982 | 19,946 | (11.7) | (11.5) |
NON-CURRENT | 19,361,455 | 18,431,161 | 16,958,697 | 5.0 | 14.2 |
Long Term Assets | 7,692,499 | 7,224,241 | 6,432,617 | 6.5 | 19.6 |
Bonds and s ecurities | 115,646 | 120,536 | 148,127 | (4.1) | (21.9) |
Collaterals and escrow a ccounts | 46,337 | 45,371 | 44,023 | 2.1 | 5.3 |
Customers | 71,239 | 132,686 | 34,858 | (46.3) | 104.4 |
CRC transferred to the State Government of Paraná | 1,276,497 | 1,295,106 | 1,291,995 | (1.4) | (1.2) |
Judicial deposits | 704,676 | 675,225 | 587,971 | 4.4 | 19.8 |
Account receivable related to concession | 3,898,826 | 3,484,268 | 2,916,740 | 11.9 | 33.7 |
Accounts receivable related to the concession extension | 189,564 | 365,645 | 541,725 | (48.2) | (65.0) |
Other non-current receivables | 23,448 | 29,435 | 22,784 | (20.3) | 2.9 |
Income ta x and social contribution | 191,865 | 197,659 | 6,761 | (2.9) | - |
Other non-current recoverable ta xes | 171,421 | 124,498 | 119,394 | 37.7 | 43.6 |
Deferred income tax and social contribution | 887,087 | 753,413 | 717,531 | 17.7 | 23.6 |
Prepaid expenses | 197 | 399 | 708 | (50.6) | (72.2) |
Related parties | 115,696 | - | - | - | - |
Investments | 1,393,943 | 1,187,927 | 814,555 | 17.3 | 71.1 |
Property, plant and equipment, net | 8,158,830 | 7,983,632 | 7,845,292 | 2.2 | 4.0 |
Intangible assets | 2,116,183 | 2,035,361 | 1,866,233 | 4.0 | 13.4 |
TOTAL | 25,065,978 | 23,111,445 | 21,842,993 | 8.5 | 14.8 |
* Amounts subject to rounding.
15
3.2 Liabilities
Main Variations in the Period
Current Liabilities
(i) the 13.1% increase in “suppliers”, due to the upturn in gas purchases by Compagas to meet the Araucária TPP’s needs;
(ii) the 4.8% reduction in “loans, financing and debentures”, following (a) the amortization of short-term loans and financing, and (b) the extension of the maturity of a Banco do Brasil industrial credit note to February 2019, partially offset by the increase in the debenture balance;
(iii) the 29.9% decline in “other accounts payable”, chiefly due to lower income tax on interest on equity and PIS/PASEP and COFINS taxes payable.
Non-current Liabilities
(i) the 34.9% increase in “loans, financing and debentures”, following Copel Holding’s fifth debenture issue, totaling R$ 1.0 billion, in May 2014;
(ii) the 26.0% upturn in “research, development and energy efficiency”, due to higher investments in the R&D program.
Main liability accounts
Provisions for Legal Claims
The Company is involved in a series of lawsuits in different courts and instances. COPEL’s management, based on its legal advisors’ opinion, maintains a provision for legal claims for those cases assessed as probable losses. The balances of provisions for legal claims are as follows:
R$ '000 | |||||
Probable Losses - Consolidated | Jun/14 | Dec/13 | Jun/13 | Var % | Var % |
(1) | (2) | (3) | (1/2) | (1/3) | |
Tax | 288,266 | 287,239 | 297,856 | 0.4 | (3.2) |
Labor suits | 226,903 | 196,054 | 181,087 | 15.7 | 25.3 |
Employees and Benefits | 97,258 | 94,809 | 123,561 | 2.6 | (21.3) |
Civil | 705,437 | 636,346 | 596,315 | 10.9 | 18.3 |
Suppliers | 62,662 | 64,775 | 67,006 | (3.3) | (6.5) |
Civil and administrative claims | 224,713 | 197,838 | 180,433 | 13.6 | 24.5 |
Easements | 16,795 | 10,639 | 7,012 | 57.9 | 139.5 |
Condemnations and property | 391,039 | 353,461 | 333,841 | 10.6 | 17.1 |
Customers | 10,228 | 9,633 | 8,023 | 6.2 | 27.5 |
Environmental claims | 230 | 211 | 193 | 9.0 | 19.2 |
Regulatory | 52,321 | 51,468 | 50,952 | 1.7 | 2.7 |
TOTAL | 1,370,415 | 1,266,127 | 1,249,964 | 8.2 | 9.6 |
Possible Losses
* Amounts subject to rounding.
16
The cases classified as possible losses, as estimated by the Company and its controlled companies at the end of 1H14, totaled R$ 2,837.7 million, 1.7% down on December 2013, distributed in lawsuits of the following natures:tax - R$ 1,435.1 million; civil - R$ 751.2 million; labor - R$ 484.7 million; employee benefits - R$ 105.5 million; and regulatory - R$ 61.2 million.
Payables related to the Concession – Use of Public Property
It refers to the concession charges for the use of public property incurred since the execution of the project’s concession agreement until the end of the concession.
R$'000 | |||||
Elejor | Mauá | Colíder | SPP¹ | Total | |
Current liabilities | 49,686 | 952 | 878 | 1,016 | 52,532 |
Noncurrent liabilities | 396,856 | 13,051 | 17,749 | 2,490 | 430,146 |
¹Relative to SPP Cavernoso, Apucaraninha, Chopim I e Chaminé. |
3.3 Debt and Shareholders’ Equity
COPEL’s consolidated debt totaled R$ 5,711.3 million on June 30, 2014, representing 42.2% of its consolidated shareholders’ equity, which closed the period at R$ 13,520.1 million, equivalent to R$ 49.41 per share (book value per share).
The breakdown of loans, financing and debentures is shown in the table below:
R$'000 | ||||
Short term | Long term | Total | ||
Foreign Currency | National Treasury | 528 | 59,843 | 60,371 |
Eletrobras | 3 | - | 3 | |
Total | 531 | 59,843 | 60,374 | |
Domestic Currency | Eletrobras - COPEL | 49,531 | 105,982 | 155,513 |
FINEP | 6,574 | 30,205 | 36,779 | |
BNDES | 31,928 | 1,094,286 | 1,126,214 | |
Banco do Brasil S/A and other | 477,524 | 1,287,643 | 1,765,167 | |
Debentures | 399,769 | 2,167,473 | 2,567,242 | |
Total | 965,326 | 4,685,589 | 5,650,915 | |
TOTAL | 965,857 | 4,745,432 | 5,711,289 |
* Amounts subject to rounding.
17
Loan, financing and debenture maturities are presented below:
R$'000 | |||||||
Short Term | Long Term | Total | |||||
Jul/14 - Jun/15 | Jul- Dec/15 | 2016 | 2017 | 2018 | After 2018 | ||
Domestic Currency | 965,326 | 686,210 | 909,291 | 1,099,786 | 590,770 | 1,399,532 | 5,650,915 |
Foreign Currency | 531 | - | - | - | - | 59,843 | 60,374 |
TOTAL | 965,857 | 686,210 | 909,291 | 1,099,786 | 590,770 | 1,459,375 | 5,711,289 |
At the end of June 2014, the Company had R$ 1,137.0 million in suretyships and guarantees, as shown below.
R$'000 | |
Guarantees and Endorsements¹ | 1H14 |
Wind Power Plants | 330,335.0 |
Elejor | 120,556.1 |
Dona Francisca | 2,261.5 |
SPCs | 683,904.6 |
Transmissora Sul Brasileira | 53,213.4 |
Caiuá Transmissora | 39,703.7 |
Integração Maranhense | 65,484.6 |
Matrinchã Transmissora | 292,618.2 |
Guaraciaba Transmissora | 216,754.4 |
Costa Oeste | 16,130.3 |
TOTAL | 1,137,057.3 |
¹ Adjusted for Copel s stake. |
COPEL’s consolidated net debt (loans, financing and debentures less cash and cash equivalents) and the netdebt/EBITDA ratio are shown in the following chart:
* Amounts subject to rounding.
18
The following table presents the consolidated liabilities:
R$'000 | |||||
Liabilities | Jun/14 | Dec/13 | Jun/13 | Var.% | Var.% |
(1) | (2) | (3) | (1/2) | (1/3) | |
CURRENT | 3,373,761 | 3,347,885 | 3,120,206 | 0.8 | 8.1 |
Payroll, social charges a nd a ccruals | 185,585 | 239,685 | 337,136 | (22.6) | (45.0) |
Suppliers | 1,235,215 | 1,092,239 | 1,169,123 | 13.1 | 5.7 |
Income tax and s ocial contribution payable | 373,817 | 297,620 | 297,983 | 25.6 | 25.4 |
Other taxes due | 210,818 | 300,731 | 184,546 | (29.9) | 14.2 |
Loans, financing a nd debentures | 965,857 | 1,014,568 | 535,470 | (4.8) | 80.4 |
Minimum compulsory dividend payable | 4,579 | 18,713 | 84,642 | (75.5) | (94.6) |
Post employment benefits | 31,041 | 29,983 | 26,348 | 3.5 | 17.8 |
Customer charges due | 24,897 | 37,994 | 53,825 | (34.5) | (53.7) |
Research a nd development and energy effi ciency | 126,537 | 127,860 | 146,988 | (1.0) | (13.9) |
Accounts Payable related to concession - Use of Public Property | 52,532 | 51,481 | 48,499 | 2.0 | 8.3 |
Other a ccounts payable | 162,883 | 137,011 | 235,646 | 18.9 | (30.9) |
NON-CURRENT | 8,172,124 | 6,834,808 | 5,780,765 | 19.6 | 41.4 |
Suppliers | 37,775 | 50,121 | 72,616 | (24.6) | (48.0) |
Tax liabilities | 77,499 | 68,402 | - | 13.3 | - |
Deferred income tax and social contribution | 343,794 | 420,501 | 495,208 | (18.2) | (30.6) |
Loans, financing and debentures | 4,745,432 | 3,517,161 | 2,727,228 | 34.9 | 74.0 |
Post employment benefits | 971,926 | 937,249 | 696,130 | 3.7 | 39.6 |
Research a nd development and energy effi ciency | 194,905 | 154,721 | 133,758 | 26.0 | 45.7 |
Accounts Payable related to concession - Use of Public Property | 430,146 | 420,293 | 405,861 | 2.3 | 6.0 |
Other a ccounts payable | 232 | 233 | - | (0.4) | - |
Tax, social security, labor a nd civil provisions | 1,370,415 | 1,266,127 | 1,249,964 | 8.2 | 9.6 |
EQUITY | 13,520,093 | 12,928,752 | 12,942,022 | 4.6 | 4.5 |
Attributed to controlling shareholders | 13,161,134 | 12,651,339 | 12,659,706 | 4.0 | 4.0 |
Share capital | 6,910,000 | 6,910,000 | 6,910,000 | - | - |
Equity valuation a djustments | 929,459 | 983,159 | 1,159,488 | (5.5) | (19.8) |
Legal reserves | 624,849 | 624,849 | 571,221 | - | 9.4 |
Retained earnings | 3,897,833 | 3,897,833 | 3,337,295 | - | 16.8 |
Additional proposed dividends | - | 235,498 | - | - | - |
Accrued earnings | 798,993 | - | 681,702 | - | 17.2 |
Attributable to non-controlling interest | 358,959 | 277,413 | 282,316 | 29.4 | 27.1 |
TOTAL | 25,065,978 | 23,111,445 | 21,842,993 | 8.5 | 14.8 |
4. Performance by Subsidiary
4.1 Copel Geração e Transmissão
In 2Q14, Copel GeT’s operating revenues totaled R$ 810.1 million, 45.8% more than the R$ 555.6 million recorded in the same period last year, fueled by (a) the 66.3% upturn in revenue from electricity sales to distributors, due to (i) the increased allocation of energy to the spot market, as a result of the change to the energy allocation policy compared to 2013, when spot market sales were concentrated in the first quarter; and(b) by the 73.0% upturn in construction revenue, as a result of investments in the transmission segment in the period.
* Amounts subject to rounding.
19
Operating costs and expenses edged down by 0.1% between 2Q13 and 2Q14, chiefly due to the 22.2% reduction in personnel and management expenses, as a result of lower payroll and social charges and accruals in the period, due to the reduction in headcount, offset by the 98.3% increase in construction costs, stemming from the higher number of projects under construction.
Equity in the earnings of subsidiary reached R$ 84.6 million, chiefly due to Copel GeT’s interest in UEGA (60%), an amount that is eliminated in the consolidated income statement because they are companies that belong to the same group.
Net income moved up by 161.2% between 2Q13 and 2Q14 to R$ 389.8 million. EBITDA totaled R$ 581.6 million, 127.5% higher than in the same period last year.
In 1H14, Copel GeT’s operating revenues increased by 16.1% over 1H13 to R$ 1,653.3 million, while operating costs and expenses climbed by 8.4%. First-half net income grew by 47.8% year on year to R$ 821.3 million, while EBITDA increased by 35.9% to R$ 1,226.5 million.
Main Indicators | 2Q14 | 1Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Net Operating Revenue (R$ million) | 810.1 | 843.1 | 555.6 | 45.8 | 1,653.3 | 1,423.9 | 16.1 |
Operating Income (R$ million) | 544.9 | 607.5 | 214.4 | 154.1 | 1,152.4 | 823.8 | 39.9 |
Net profit (R$ million) | 389.8 | 431.6 | 149.2 | 161.2 | 821.3 | 555.8 | 47.8 |
EBITDA (R$ million) | 581.6 | 644.8 | 255.7 | 127.5 | 1,226.5 | 902.2 | 35.9 |
Operating Margin | 67.3% | 72.1% | 38.6% | 74.3 | 69.7% | 57.9% | 20.5 |
Net Margin | 48.1% | 51.2% | 26.9% | 79.1 | 49.7% | 39.0% | 27.3 |
EBITDA Margin | 71.8% | 76.5% | 46.0% | 56.0 | 74.2% | 63.4% | 17.1 |
Investment Program (R$ million) | 129.0 | 158.8 | 154.5 | (16.5) | 287.8 | 247.0 | 16.5 |
4.2 Copel Distribuição
In 2Q14, Copel Distribuição’s recorded operating revenues of R$ 1,617.7 million, 15.8% higher than the R$ 1,396.9 million recorded in the same period last year, chiefly due to the 9.55% tariff increase as of June 24, 2013 and the 4.9% upturn in the captive market.
Operating costs and expenses climbed by 45.8% over the same period last year, totaling R$ 1,968.0 million, chiefly due to the 71.5% upturn in costs with energy purchased for resale, partially offset by the 15.4% decline in personnel expenses over 2Q13.
In 2Q14, Copel Distribuição recorded a net loss of R$ 214.3 million and EBITDA of a negative R$295.5 million.If the regulatory assets and liabilities were recognized, the gross effect of changes to the Account for Compensation of Portion A (CVA) on the subsidiary’s EBITDA would be a positive R$ 266.3 million in 2Q14.As aresult, adjusted EBITDA was a negative R$ 29.2 million.For further information on CVA, please refer to Note 37 in our Quarterly Information.
* Amounts subject to rounding.
20
In 1H14, net operating revenues reached R$ 3,257.4 million, 16.5% up year on year, while operating costs totaled R$ 3,682.9 million, 27.0% higher than in the same period last year.EBITDA was a negative R$ 316.2 million, but considering the changes to the CVA, EBITDA would be a positive R$ 215.4 million.
Main Indicators | 2Q14 | 1Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Net Operating Revenue (R$ million) | 1,617.7 | 1,639.7 | 1,396.9 | 15.8 | 3,257.4 | 2,796.4 | 16.5 |
Operating Income (R$ million) | (323.0) | (19.3) | 103.3 | - | (342.3) | 2.8 | - |
Net profit (R$ million) | (214.3) | (14.6) | 68.2 | - | (228.9) | 0.5 | - |
EBITDA (R$ million) | (295.5) | (20.7) | 97.0 | - | (316.2) | (4.4) | - |
Operating Margin | -20.0% | -1.2% | 7.4% | - | -10.5% | 0.1% | - |
Net Margin | -13.2% | -0.9% | 4.9% | - | -7.0% | - | - |
EBITDA Margin | -18.3% | -1.3% | 6.9% | - | -9.7% | -0.2% | - |
Investment Program (R$ million) | 253.5 | 228.6 | 250.1 | 1.4 | 482.1 | 426.9 | 12.9 |
Effect CVA (R$ million) | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var.% |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Gross CVA Effect | 266.3 | 265.3 | (31.1) | - | 531.6 | 114.7 | - |
Net CVA Effect ¹ | 175.8 | 175.1 | (20.5) | - | 350.9 | 75.7 | - |
Adjusted CVA Main Indicators | |||||||
Adjusted Operating Income (R$ million) ² | (56.7) | 246.0 | 72.2 | - | 189.3 | 117.5 | 61.2 |
Adjusted Net profit (R$ million) ³ | (38.5) | 160.5 | 47.6 | - | 122.0 | 76.2 | 60.1 |
Adjusted EBITDA (R$ million) ² | (29.2) | 244.6 | 65.9 | - | 215.4 | 110.3 | 95.4 |
Adjusted Operating Margin ² | -3.5% | 15.0% | 5.2% | - | 5.8% | 4.2% | 38.4 |
Adjusted Net Margin ³ | -2.4% | 9.8% | 3.4% | - | 3.7% | 2.7% | 37.5 |
Adjusted EBITDA Margin ² | -1.8% | 14.9% | 4.7% | - | 6.6% | 3.9% | 67.7 |
¹ Estimated net value: gross value minus 34% of income tax. ² Adjusted by gross CVA effect. ³ Adjusted by net CVA effect. | |||||||
4.3 Copel Telecomunicações
In 2Q14, Copel Telecomunicações’ operating revenues totaled R$ 49.2 million, 6.1% higher than the R$ 46.3 million recorded in the same period last year, chiefly due expansion of the area of operations and the services provided to new customers.Operating costs and expenses fell by 2.1%, due to the 17.0% decline in personnel and management costs, partially offset by the 25.2% increase in third-party services.Net income stood at R$ 13.6 million, 18.1% up on 2Q13, whileEBITDA increased by 16.0%, from R$ 23.2 million in 2Q13 to R$ 26.9 million in 2Q14.
In 1H14, Copel Telecomunicações’ operating revenues reached R$ 97.5 million, 6.5% higher than the R$ 91.6 million recorded in 1H13, while operating and expenses fell by 1.3%.Net income totaled R$ 27.9 million in the period, 20.6% up on 1H13, and EBITDA stood at R$ 54.1 million, 13,7% higher than in 1H13.
* Amounts subject to rounding.
21
Main Indicators | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var. % |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
Net Operating Revenue (R$ million) | 49.2 | 48.4 | 46.3 | 6.1 | 97.5 | 91.6 | 6.5 |
Operating Income (R$ million) | 20.6 | 21.7 | 17.4 | 18.2 | 42.2 | 35.0 | 20.7 |
Net profit (R$ million) | 13.6 | 14.3 | 11.5 | 18.1 | 27.9 | 23.1 | 20.6 |
EBITDA (R$ million) | 26.9 | 27.2 | 23.2 | 16.0 | 54.1 | 47.6 | 13.7 |
Operating Margin | 41.8% | 44.8% | 37.5% | 11.4 | 43.3% | 38.2% | 13.3 |
Net Margin | 27.6% | 29.6% | 24.8% | 11.3 | 28.6% | 25.3% | 13.2 |
EBITDA Margin | 54.8% | 56.3% | 50.1% | 9.3 | 55.5% | 52.0% | 6.7 |
Investment Program (R$ million) | 22.6 | 19.4 | 14.4 | 56.9 | 42.0 | 27.1 | 55.0 |
5. Investment Program
Copel’s investments in 1H14 and the maximum investment forecast for 2014 are presented below:
R$ million | ||||
Carried out | Carried out | Carried out | Scheduled | |
2Q14 | 1Q14 | 1H14 | 2014 | |
Generation and Transmission | 129.0 | 158.8 | 287.8 | 1,309.0 |
HPP Colider | 52.8 | 90.8 | 143.6 | 409.8 |
HPP Baixo Iguaçu | 0.4 | 0.3 | 0.7 | 316.0 |
TL Araraquara / Taubaté | 27.1 | 25.9 | 53.0 | 182.8 |
Cerquilho Substation | 4.5 | 8.8 | 13.3 | 8.3 |
TL Figueira-Londrina / Foz do Chopim-Salto Osório | 2.9 | 1.8 | 4.7 | 42.9 |
Paraguaçu Paulista Substation | 0.8 | 0.8 | 1.6 | 25.6 |
Curitiba Norte Substation | 0.2 | 0.1 | 0.3 | 8.7 |
Other | 40.3 | 30.3 | 70.6 | 314.9 |
Distribution | 253.5 | 228.6 | 482.1 | 895.9 |
Telecommunications | 22.6 | 19.4 | 42.0 | 80.0 |
Participation in new businesses ¹ | 139.9 | 48.9 | 188.8 | 331.8 |
TOTAL | 545.0 | 455.7 | 1,000.7 | 2,616.7 |
¹ Wind Energy Plants, Costa Oeste Transmissora, Marumbi Transmissora, Transmissora Sul Brasileira, Caiuá Transmissora, Integração Maranhense Transmissora,Matrinchã Transmissora de Energia, Guaraciaba Transmissora de Energia, Paranaíba Transmissora and Mata de Santa Genebra. | ||||
6. Power Market and Tariffs
6.1 Captive Market – Copel Distribuição
Electricity sales to Copel Distribuição’s captive market came to 12,062 GWh in 1H14, up 6.0% in comparison with 2013, mainly due to the increase in average consumption and in the customer base in the period. The table below breaks down electricity sales by customer segment:
* Amounts subject to rounding.
22
Number of Customers | Energy sold (GWh) | ||||||||
Jun/14 | Jun/13 | Var. % | 2Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % | |
Residential | 3,386,848 | 3,250,753 | 4.2 | 1,749 | 1,670 | 4.7 | 3,672 | 3,396 | 8.1 |
Industrial | 91,299 | 90,472 | 0.9 | 1,703 | 1,640 | 3.8 | 3,288 | 3,242 | 1.4 |
Commercial | 348,381 | 332,585 | 4.7 | 1,293 | 1,227 | 5.4 | 2,740 | 2,551 | 7.4 |
Rural | 372,711 | 367,741 | 1.4 | 547 | 500 | 9.4 | 1,186 | 1,072 | 10.7 |
Other | 56,565 | 55,019 | 2.8 | 586 | 566 | 3.6 | 1,176 | 1,118 | 5.2 |
Captive Market | 4,255,804 | 4,096,570 | 3.9 | 5,878 | 5,603 | 4.9 | 12,062 | 11,379 | 6.0 |
The residential segment consumed 3,672 GWh, 8.1% up between January and June, due to the increase in the customer base and the upturn in average consumption in the period and temperatures above average in the period. At the end of June 2014 this segment accounted for 30.4% of captive market, totaling 3,386,848 residential customers.
The industrial segment consumed 3,288 GWh in the period, 1.4% up. At the end of the period, this segment accounted for 27.3% of captive market, with the company supplying power to 91,299 industrial customers.
The commercial segment consumed 2,740 GWh, 7.4% up on the same period of 2013, as a result of the increase in the customer base and higher temperatures in the period. At the end of June, this segment represented 22.7% of Copel’s captive market, with the company supplying power to 348,381 customers.
The rural segment consumed 1,186 GWh, growing by 10.7%. At the end of June, this segment represented 9.8% of Copel’s captive market, with the company supplying power to 372,711 rural customers.
Other segments (public agencies, public lighting, public services and own consumption) consumed 1,176 GWh, 5.2% up in the period. These segments jointly account for 9.8% of Copel’s captive market, totaling 56,565 customers at the end of the period.
6.2 Grid Market (TUSD)
Copel Distribuição’s grid market, comprising the captive market, concessionaires and licensees in the State of Paraná, and all free consumers within the Company’s concession area, grew by 6.3%, as shown in the following table:
Number of Customers / agreements | Energy Sold (GWh) | ||||||||
Jun/14 | Jun/13 | Var. % | 2Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % | |
Captive Market | 4,255,804 | 4,096,570 | 3.9 | 5,878 | 5,603 | 4.9 | 12,062 | 11,379 | 6.0 |
Concessionaries and Licensees | 4 | 4 | - | 190 | 169 | 12.6 | 358 | 326 | 9.8 |
Free Customers ¹ | 131 | 114 | 14.9 | 1,144 | 1,138 | 0.6 | 2,239 | 2,084 | 7.4 |
Grid Market | 4,255,939 | 4,096,688 | 3.9 | 7,212 | 6,910 | 4.4 | 14,659 | 13,789 | 6.3 |
¹ All free customers served by Copel GeT and other suppliers at the Copel DIS concession area. |
* Amounts subject to rounding.
23
6.3 Electricity Sales
Copel’s electricity sales to final customers, comprising Copel Distribuição’s sales in the captive market and Copel Geração e Transmissão’s sales in the free market, increased by 4.9% in the first six months of 2014. The main contribution to this result were the 8.1% growth in electricity sales to the residential segment and 10.7% growth in the rural segment, due to higher temperatures and the increase in costumers in the period.
Copel Geração e Transmissão sales in the Free Market came to 2,001 GWh in the 1H14, down 1.2% in comparison with the same period last year.
The table below breaks down electricity sales by customer segment:
Segment | Market | Energy Sold (GWh) | |||||
2Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % | ||
Residential | 1,749 | 1,670 | 4.7 | 3,672 | 3,396 | 8.1 | |
Total | 2,654 | 2,653 | - | 5,283 | 5,261 | 0.4 | |
Industrial | Captive | 1,703 | 1,640 | 3.8 | 3,288 | 3,242 | 1.4 |
Free | 951 | 1,013 | (6.1) | 1,995 | 2,019 | (1.2) | |
Total | 1,296 | 1,230 | 5.4 | 2,746 | 2,557 | 7.4 | |
Commercial | Captive | 1,293 | 1,227 | 5.4 | 2,740 | 2,551 | 7.4 |
Free | 3 | 3 | - | 6 | 6 | - | |
Rural | 547 | 500 | 9.4 | 1,186 | 1,072 | 10.7 | |
Other | 586 | 566 | 3.6 | 1,176 | 1,118 | 5.2 | |
Energy Supply | 6,832 | 6,619 | 3.2 | 14,063 | 13,404 | 4.9 |
6.4 Total Energy Sold
Copel’s electricity sales, comprising Copel Distribuição and Copel Geração e Transmissão’s sales in all the markets, reached 21,911 GWh in the first six months of the year, a 0.8% growth over the same period of 2013. Copel Geração e Transmissão’s sales totaled 9,336 GWh in 1H14, down 7.4% on 1H13, as a result of lower allocation in the short-term market (MCP) due to the change in allocation strategy adopted in 2013, when short-term sales were concentrated in the first quarter. The following table shows Copel’s total electricity sales broken down between Copel Distribuição and Copel Geração e Transmissão.
* Amounts subject to rounding.
24
Number of Customers / Agreements | Energy Sold (GWh) | ||||||||
Jun/14 | Jun/13 | Var. % | 2Q14 | 2Q13 | Var. % | 1H14 | 1H13 | Var. % | |
Copel DIS | |||||||||
Captive Market | 4,255,804 | 4,096,570 | 3.9 | 5,878 | 5,603 | 4.9 | 12,062 | 11,379 | 6.0 |
Concessionaries and Licensees | 4 | 4 | - | 190 | 169 | 12.6 | 345 | 280 | 23.3 |
CCEE (MCP) | - | - | - | 168 | - | - | 168 | - | - |
Total Copel DIS | 4,255,808 | 4,096,574 | 3.9 | 6,236 | 5,772 | 8.0 | 12,575 | 11,659 | 7.9 |
Copel GeT | |||||||||
CCEAR (Copel DIS) | 1 | 1 | - | 93 | 202 | (53.7) | 197 | 433 | (54.6) |
CCEAR (other concessionaries) | 39 | 36 | 8.3 | 1,112 | 1,529 | (27.3) | 2,352 | 3,213 | (26.8) |
Free Customers | 29 | 29 | - | 954 | 1,016 | (6.1) | 2,001 | 2,025 | (1.2) |
Bilateral Agreements ¹ | 32 | 21 | 52.4 | 1,724 | 1,205 | 43.1 | 3,717 | 2,605 | 42.7 |
CCEE (MCP) | - | - | - | 575 | 21 | - | 1,069 | 1,810 | (40.9) |
Total Copel GeT | 101 | 87 | 16.1 | 4,458 | 3,973 | 12.2 | 9,336 | 10,086 | (7.4) |
Total Copel Consolidated | 4,255,909 | 4,096,661 | 3.9 | 10,694 | 9,745 | 9.7 | 21,911 | 21,745 | 0.8 |
Note: Not considering the energy from MRE (Energy Relocation Mechanism). CCEE: Electric Power Trade Chamber. CCEAR: Energy Purchase Agreements in the Regulated Market. MCP: Short Term Market. ¹ Includes Short Term Sales Agreements. | |||||||||
Additionally, the TPP Araucária sold in short-term market (MCP) all the energy produced as from February 1, 2014. The amount of energy produced in the period is shown in the table below:
GWh | |||
TPP Araucária - UEGA | Apr-Jun/14 | Feb-Mar/14 | 1H14 |
Own Generation | 854 | 646 | 1,500 |
6.5 Energy Flow
Consolidated Energy Flow (Jan/ Jun 2014)
* Amounts subject to rounding.
25
GWh | |||
Consolidated Energy Flow | 1H14 | 1H13 | Var.% |
Own Generation | 11,784 | 10,172 | 15.8 |
Purchased energy | 14,535 | 15,316 | (5.1) |
Itaipu | 2,911 | 2,569 | 13.3 |
Auction CCEAR | 7,344 | 7,442 | (1.3) |
Itiquira | 452 | 451 | 0.2 |
Dona Francisca | 303 | 303 | - |
CCEE (MCP) | 1,491 | 977 | 52.6 |
Angra | 519 | 520 | (0.2) |
CCGF | 651 | 606 | 7.4 |
MRE | - | 1,587 | - |
Proinfa | 276 | 273 | 1.1 |
Elejor | 588 | 588 | - |
Total Available Power | 26,319 | 25,488 | 3.3 |
Captive Market | 12,062 | 11,379 | 6.0 |
Concessionaires¹ | 345 | 280 | 23.2 |
Free Customers | 2,001 | 2,025 | (1.2) |
Bilateral Agreements | 3,717 | 2,602 | 42.9 |
Auction CCEAR | 2,549 | 3,646 | (30.1) |
CCEE (MCP) | 1,237 | 1,809 | (31.6) |
MRE | 2,333 | 1,989 | 17.3 |
Losses and Differences | 2,075 | 1,760 | 17.9 |
Basic network losses | 705 | 516 | 36.6 |
Distribution losses | 1,207 | 1,120 | 7.8 |
CG contract allocation | 163 | 124 | 31.5 |
¹ Not including the 46 GWh consumed by the Concessionaire CFLO in February and March/2013, for it was not supplied by CopelDistribuição. Amounts subject to changes after settlement by CCEE. CCEAR: Energy Purchase Agreements in the Regulated Market. MRE: Energy Reallocation Mechanism. CCEE (MCP): Electric Power Trade Chamber (Short-term market). CG: Center of gravity of the Submarket (difference between billed and energy received from CG). Don't consider the energy produced by TPP Araucária (1,500 GWh), which was sold in the short-term market (MCP). | |||
* Amounts subject to rounding.
26
GWh | |||
Energy Flow - Copel GeT | 1H14 | 1H13 | Var. % |
Own Generation | 11,784 | 10,172 | 15.8 |
CCEE (MCP) | - | 256 | - |
MRE | - | 1,587 | - |
Dona Francisca | 303 | 303 | - |
Total Available Power | 12,087 | 12,318 | (1.9) |
Bilateral Agreements | 3,717 | 2,602 | 42.9 |
CCEAR COPEL Distribuição | 197 | 433 | (54.6) |
CCEAR Other | 2,352 | 3,213 | (26.8) |
Free Customers | 2,001 | 2,025 | (1.2) |
CCEE (MCP) | 1,069 | 1,809 | (40.9) |
MRE | 2,333 | 1,989 | 17.3 |
Losses and differences | 418 | 247 | 69.4 |
GWh | |||
Energy Flow - Copel Dis | 1H14 | 1H13 | Var. % |
Itaipu | 2,911 | 2,569 | 13.3 |
CCEAR Copel Geração e Transmissão | 197 | 433 | (54.6) |
CCEAR Other | 7,147 | 7,009 | 2.0 |
CCEE (MCP) | 1,491 | 721 | 106.7 |
Angra | 519 | 520 | (0.2) |
CCGF | 651 | 606 | 7.5 |
Itiquira | 452 | 451 | 0.2 |
Proinfa | 276 | 273 | 1.2 |
Elejor S.A | 588 | 588 | - |
Available Power | 14,232 | 13,170 | 8.1 |
Captive market | 12,062 | 11,379 | 6.0 |
Wholesale¹ | 345 | 280 | 23.3 |
CCEE (MCP) | 168 | - | - |
Losses and differences | 1,657 | 1,511 | 9.7 |
Basic network losses | 287 | 268 | 7.2 |
Distribution losses | 1,207 | 1,120 | 7.8 |
CG contract allocation | 163 | 124 | 32.1 |
¹ Not including the 46 GWh consumed by the Concessionaire CFLO in February and March/2013, for it was not supplied by CopelDistribuição. | |||
* Amounts subject to rounding.
27
6.6 Tariffs
Power Purchase Average Tariff – Copel Distribuição
R$ / MWh | ||||||
Tariff | Amount | Jun/14 | Mar/14 | Jun/13 | Var. % | Var. % |
Average MW | (1) | (2) | (3) | (1/2) | (1/3) | |
Itaipu1 | 635 | 129.08 | 125.30 | 124.16 | 3.0 | 4.0 |
Auction CCEAR 2007 2014 | 50 | 164.88 | 147.81 | 140.89 | 11.5 | 17.0 |
Auction CCEAR 2008 2015 | 52 | 126.61 | 124.82 | 118.94 | 1.4 | 6.5 |
Auction CCEAR 2010 H30 | 70 | 178.89 | 168.17 | 168.17 | 6.4 | 6.4 |
Auction CCEAR 2010 T152 | 65 | 189.41 | 178.06 | 178.06 | 6.4 | 6.4 |
Auction CCEAR 2011 H30 | 58 | 183.66 | 172.65 | 172.65 | 6.4 | 6.4 |
Auction CCEAR 2011 T152 | 54 | 208.85 | 196.33 | 196.33 | 6.4 | 6.4 |
Auction CCEAR 2012 T152 | 115 | 187.36 | 176.13 | 176.13 | 6.4 | 6.4 |
Auction CCEAR 2014 - 2019 ³ | 73 | 448.82 | - | - | - | - |
Auction CCEAR 2014 - 20194 | 187 | 270.81 | - | - | - | - |
Auction 2014 - 12M | 329 | 191.41 | 191.41 | - | - | - |
Auction 2014 - 18M | 19 | 165.20 | 165.20 | - | - | - |
Auction 2014 - 36M | 163 | 149.99 | 149.99 | - | - | - |
Angra | 119 | 150.83 | 145.96 | 135.94 | 3.3 | 11.0 |
CCGF5 | 150 | 32.22 | 30.48 | 33.38 | 5.7 | (3.5) |
Santo Antônio | 97 | 108.60 | 107.01 | 102.00 | 1.5 | 6.5 |
Jirau | 115 | 95.52 | 94.12 | 71.37 | 1.5 | 33.8 |
Others Auctions6 | 456 | 226.44 | 168.29 | 168.81 | 34.6 | 34.1 |
Bilaterals | 187 | 189.55 | 180.03 | 176.58 | 5.3 | 7.3 |
Total / Tariff Average Supply7 | 2,995 | 174.40 | 144.37 | 128.69 | 20.8 | 35.5 |
1 Furnas transport charge not included. |
Sales to Final Customers Average Tariff – without ICMS
R$ / MWh | |||||
Tariff | Jun/14 | Mar/14 | Jun/13 | Var % | Var % |
(1) | (2) | (3) | (1/2) | (1/3) | |
Industrial ¹ | 207.75 | 210.69 | 189.05 | (1.4) | 9.9 |
Residential | 263.50 | 263.50 | 242.55 | - | 8.6 |
Commercial | 241.04 | 241.66 | 220.00 | (0.3) | 9.6 |
Rural | 161.13 | 160.63 | 146.04 | 0.3 | 10.3 |
Other | 185.71 | 188.03 | 168.13 | (1.2) | 10.5 |
Retail distribution average rate | 225.56 | 226.12 | 206.15 | (0.2) | 9.4 |
¹ Free customers not included. |
* Amounts subject to rounding.
28
Sales to Distributors Average Tariff – Copel Geração e Transmissão
7. Capital Market
7.1 Capital Stock
COPEL’s capital amounts to R$ 6,910 million, represented by shares with no par value. The Company's current number of shareholders is 25,001. In June 2014 the Company’s capital was as follows:
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* Amounts subject to rounding.
29
7.2 Stock Performance
From January through June 2014, COPEL’s common shares (ON - CPLE3) and class B preferred shares (PNB -CPLE6) were traded in 100% of the trading sessions of the São Paulo Stock Exchange (BM&FBovespa). The free float accounted for 45% of the Company’s capital. COPEL’s market capitalization, based on the stock prices on all markets at the end of June 2014, was R$ 7,758.6 million. Out of the 70 stocks that make up the Ibovespa index, COPEL’s class B preferred shares accounted for 0.4% of the portfolio, with a Beta index of 0.6.
COPEL also accounted for 5.8% and 1.1% of the BM&Fbovespa’s Electric Power Index (IEE) and Corporate Sustainability Index (ISE), respectively.
On the BM&FBovespa, COPEL’s common and class B preferred shares closed the quarter at R$ 23.50 (5.4% up) and R$ 33.88 (11.0% up), respectively. Over the same period, the Ibovespa appreciated by 3.2%. On the New York Stock Exchange (NYSE), class B preferred shares, represented by American Depositary Shares (ADSs), were traded at Level 3, under the ticker ELP, in 100% of the trading sessions and closed the quarter at US$ 15.31, 16.5% up. Over this period, the Dow Jones Index positive by 1.5%.
On the Latibex (the Euro market for Latin American securities on the Madrid Stock Exchange), COPEL’s class B preferred shares were traded under the ticker XCOP in 97% of the trading sessions and closed the quarter at € 11.14, 17.3% up. Meanwhile, the Latibex All Shares index high by 0.9%.
The table below summarizes COPEL’s share prices in the 1H14:
Stock Performance (Jan - Jun/ 14) | Common | Preferred "B" | |||
(CPLE3 / ELPVY) | (CPLE6 / ELP / XCOP) | ||||
Total | Daily average | Total | Daily average | ||
BM&FBovespa | Number of Trades | 25,746 | 213 | 388,504 | 3,211 |
Volume Traded | 11,380,100 | 94,050 | 73,306,600 | 605,840 | |
Trading Value (R$ thousand) | 236,228 | 1,952 | 2,174,244 | 17,969 | |
Presence in Trading Sessions | 121 | 100% | 121 | 100% | |
NYSE | Volume Traded | 301,957 | 5,697 | 70,892,409 | 571,713 |
Trading Value (US$ thousand) | 3,080 | 58 | 922,123 | 7,436 | |
Presence in Trading Sessions | 53 | 43% | 124 | 100% | |
LATIBEX | Volume Traded | - | - | 209,320 | 1,730 |
Trading Value (Euro thousand) | - | - | 2,015 | 17 | |
Presence in Trading Sessions | - | - | 121 | 97% |
* Amounts subject to rounding.
30
7.3 Dividends and Interest on Own Capital
The table below presents the payments of dividends and interest on own capital as of 2010:
Thousands of R$ | R$ per Share | ||||||
Type of Earning | Fiscal Year | Approved on | Paid on | (gross) | Common | Preferred "A" | Preferred "B" |
Total | 2010 | 281,460 | 0.98027 | 2.52507 | 1.07854 | ||
IOC¹ | 2010 | 08/17/10 | 09/20/10 | 85,000 | 0.29662 | 0.32638 | 0.32638 |
Dividends | 2010 | 04/28/11 | 05/23/11 | 81,460 | 0.28328 | 1.04782 | 0.31167 |
IOC | 2010 | 04/28/11 | 05/23/11 | 115,000 | 0.40037 | 1.15087 | 0.44049 |
Total | 2011 | 421,091 | 1.46833 | 2.52507 | 1.61546 | ||
IOC¹ | 2011 | 08/11/11 | 09/15/11 | 225,814 | 0.78803 | 0.86706 | 0.86706 |
IOC | 2011 | 04/26/12 | 05/29/12 | 195,277 | 0.68030 | 1.65801 | 0.74840 |
Total | 2012 | 268,554 | 0.93527 | 2.52507 | 1.02889 | ||
IOC¹ | 2012 | 12/19/12 | 01/15/13 | 138,072 | 0.47920 | 2.52507 | 0.52720 |
Dividends | 2012 | 04/25/13 | 05/23/13 | 130,482 | 0.45607 | - | 0.50169 |
Total | 2013 | 560,537 | 1.95572 | 2.52507 | 2.15165 | ||
IOC¹ | 2013 | 11/13/13 | 12/16/13 | 180,000 | 0.62819 | 0.69111 | 0.69111 |
Dividends¹ | 2013 | 11/13/13 | 12/16/13 | 145,039 | 0.50617 | 0.55688 | 0.55688 |
Dividends | 2013 | 04/24/14 | 05/28/14 | 235,498 | 0.82136 | 1.27708 | 0.90366 |
¹ In advance. |
* Amounts subject to rounding.
31
8. Operating Performance
8.1 Generation
In Operation
Copel Geração e Transmissão
The chart below presents the main information on COPEL GeT's power plants and the electricity they produced between January and June 2014:
Power Plants | Installed | Assured Power | Generation | Concession |
Capacity (MW) | (Average MW) | (GWh) | Expires | |
Hydroelectric Power Plants | 4,731.9 | 2,056.8 | 11,755.1 | |
Gov. Bento Munhoz da Rocha Netto (Foz do Areia) | 1,676.0 | 576.0 | 2,866.9 | 23.05.2023 |
Gov. Ney Aminthas de B. Braga (Segredo) | 1,260.0 | 603.0 | 3,806.0 | 15.11.2029 |
Gov. José Richa (Salto Caxias) | 1,240.0 | 605.0 | 3,736.2 | 04.05.2030 |
Gov. Pedro V. Parigot de Souza (Capivari-Cachoeira) | 260.0 | 109.0 | 756.3 | 07.07.2015 |
Mauá(1) | 185.0 | 100.0 | 457.6 | 03.07.2042 |
Guaricana(2) | 36.0 | 16.1 | - | 16.08.2026 |
Cavernoso II | 19.0 | 10.6 | 27.1 | 27.02.2046 |
Chaminé | 18.0 | 11.6 | 31.7 | 16.06.2026 |
Apucaraninha | 10.0 | 6.7 | - | 12.10.2025 |
Mourão | 8.2 | 5.3 | 23.2 | 07.07.2015 |
Derivação do Rio Jordão | 6.5 | 5.9 | 25.1 | 15.11.2029 |
Marumbi | 4.8 | 2.4 | 5.3 | (3) |
São Jorge | 2.3 | 1.5 | 6.5 | 03.12.2024 |
Chopim I | 2.0 | 1.5 | 6.0 | 07.07.2015 |
Rio dos Patos(4) | - | - | 0.5 | (5) |
Cavernoso | 1.3 | 1.0 | 1.5 | 07.01.2031 |
Melissa | 1.0 | 0.6 | 2.6 | (6) |
Salto do Vau | 0.9 | 0.6 | 2.3 | (6) |
Pitangui | 0.9 | 0.1 | 0.1 | (6) |
Thermal Power Plant | 20.0 | 10.3 | 26.6 | |
Figueira | 20.0 | 10.3 | 26.6 | 26.03.2019 |
Wind Energy Plants | 2.5 | 0.5 | 1.9 | |
Eólica de Palmas(7) | 2.5 | 0.5 | 1.9 | 28.09.2029 |
TOTAL | 4,754.4 | 2,067.6 | 11,783.6 |
(1)Refered to COPEL's participation (51% of power plant capacity of 363 MW).
(2)In process of upgrading.
(3)Submitted to ANEEL for ratification.
(4)Assured Power (Average MW) and Generation (GWh) until 02.14.2014, date of concession expires.
(5)The concession expired on February 14, 2014. However, the Company will be responsable for the operation and maintenance until the winner of the bidding process assume the plant. Until then, Copel will receive a pre established tariff to operate the plant, as defined by MME 170/2014 resolution.
(6)Power plants with capacity below 1 MW are only required to be registered at ANEEL.
(7)Average wind plant generation.
* Amounts subject to rounding.
32
Interest in Generation Projects
COPEL holds interests in six power generation projects at the operational stage, with a total installed capacity of
1,786.6 MW, 606 MW refered to COPEL´s stake, as shown below:
Company | Installed Capacity (MW) | Assured Power (Average MW) | Partners | PPA signed with | Concession Expires |
TPP Araucária (UEG Araucária) | 484.1 | 365.2 | COPEL - 20% | ¹ | 2029 |
HPP Santa Clara (Elejor) | 123.4 | 72.4 | COPEL - 70% Paineira Participações - 30% | COPEL Dis Free customers | 2036 |
HPP Fundão (Elejor) | 122.5 | 67.9 | COPEL - 70% Paineira Participações - 30% | COPEL Dis Free customers | 2036 |
HPP Dona Francisca (DFESA) | 125.0 | 78.0 | COPEL - 23,03% | COPEL GeT | 2033 |
SHP Júlio de Mesquita Filho(Foz do Chopim) | 29.1 | 20.4 | COPEL - 35,77% Silea Participações - 64,23% | Free customers | 2030 |
HPP Lajeado (Investco S.A.) | 902.5 | 526.6 | COPEL - 0,82% | ² | 2033 |
¹ Since February 1, 2014, the plant s operation has been under the responsibility of UEGA. The Araucária TPP does not have availability agreements and operates under themerchant model. ² The assets of the Lajeado HPP are leased to its other concession holders in proportional shares of the existing assets. | |||||
Under Construction
Copel Geração e Transmissão
COPEL GeT is building two hydroelectric power plants that will add 405 MW to its total installed capacity, as described below.
Power Plants | Installed Capacity (MW) | Assured Power (MW médio / Average MW) | Stake |
UHE Colíder | 300 | 179.6 | 100% Copel GeT |
30% Copel GeT | |||
UHE Baixo Iguaçu | 350 | 172.8 | 70 % Geração Céu Azul S.A |
Total ¹ | 405 | 231.4 | |
¹ Adjusted for Copel s stake |
Colíder Hydroelectric Power Plant
In ANEEL New Energy Auction 03/2010, held on July 30, 2010, COPEL Geração e Transmissão S.A. won the concession for the implementation and operation of the Colíder HPP for 35 years. On January 17, 2011, the federal government and COPEL GeT entered into 01/2011-MME-UHE Colíder Concession Agreement involving the use of public assets for electricity generation.
* Amounts subject to rounding.
33
The plant will have an installed capacity of 300 MW and assured energy of 179.6 average-MW and is being implemented on the Teles Pires River, in Mato Grosso State. Investments are estimated at R$1.6 billion and start-up is scheduled for 2015. On the base date of August 1, 2010, 125 average-MW were traded at R$ 103.40/MWh, restated by the IPCA consumer price index. The sold energy will be supplied for 30 years as of January 2015 and the remaining energy will be available for sale.
We are now concreting the water intake and overhead crane structure, and assembling the plant’s energy generation units and automated systems.The Mato Gross State Environment Department (Sema – MT) has recently authorized the clearance of the area to be flooded to form the reservoir, which we began doing in the first half of 2014.
Baixo Iguaçu Hydroelectric Power Plant
Copel owns a 30% interest in the Baixo Iguaçu Consortium, which is responsible for Baixo Iguaçu HPP construction. The power plant will have an installed capacity of 350 MW and assured energy of 172.8 average-MW and it is being built on the Iguaçu River, between the municipalities of Capanema and Capitão Leônidas Marques, in southwest Paraná. Part of the energy that will be produced (121 average-MW) was sold in the 7th New Energy Auction, held on September 30, 2008, at R$ 98.98/MWh.
Works at the construction site are on schedule. We are currently excavating the generation circuit and the power house. With total investments estimated at R$ 1.7 billion, start-up is scheduled for 2016.
Copel Renováveis
Wind Farm Complex
Copel is expanding its energy generation matrix with renewable sources. The Wind Farm Complex is formed by eleven projects, either already completed or under construction, with a joint installed capacity of 277.6 MW, and is located in Rio Grande do Norte, as follows:
* Amounts subject to rounding.
34
Wind Farm | Installed Capacity | Assured Power (Average MW) | Price ¹ | Start up | CAPEX (R$ million) | Premium Value (R$ million) | Wind farm location | Expiration of Authorization |
2º LFA 2010 ² | 202.0 | 98.5 | 135.0 | 782.3 | 340.6 | |||
Boa Vista3 | 14.0 | 6.3 | 138.0 | Sep/134 | 382.4 | 123.5 | São Bento do Norte | 4/26/2046 |
Olho d'Água3 | 30.0 | 15.3 | 134.0 | São Bento do Norte | 5/21/2046 | |||
São Bento do Norte3 | 30.0 | 14.6 | 134.0 | São Bento do Norte | 5/18/2046 | |||
Farol3 | 20.0 | 10.1 | 134.0 | São Bento do Norte | 4/19/2046 | |||
Nova Euros IV | 27.0 | 13.7 | 135.4 | Mar/15 | 399.9 | 217.1 | Touros | 4/27/2046 |
Nova Asa Branca I | 27.0 | 13.2 | 135.4 | S. Miguel Gostoso | 4/25/2046 | |||
Nova Asa Branca II | 27.0 | 12.8 | 135.4 | Parazinho | 5/31/2046 | |||
Nova Asa Branca III | 27.0 | 12.5 | 135.4 | Parazinho | 5/31/2046 | |||
4º LER 20115 | 75.6 | 40.7 | 101.8 | 286.6 | 68.9 | |||
Santa Maria | 29.7 | 15.7 | 102.0 | Jul/14 | 286.6 | 68.9 | João Câmara | 5/8/2047 |
Santa Helena | 29.7 | 16.0 | 102.0 | João Câmara | 4/4/2047 | |||
Ventos de Santo Uriel | 16.2 | 9.0 | 101.2 | Mar/15 | João Câmara | 4/9/2047 | ||
Total | 277.6 | 139.2 | 125.3 | 1,068.9 | 409.5 | |||
¹ Historical price. Value will be adjusted by the IPCA. ² LFA - Auction of Alternative Sources 3The premium value of these wind farms do not consider the R$ 14.0 million paid in 2011, relating to the stake of 49.9%. 4ANEEL attested that the generation units of the wind farms were fully equipped to begin operations on September 1, 2013. However, commercial operations will only begin after the conclusion of the installation of basic network access transmission facilities, whose works are under the responsibility of the distribution/transmission agent. The effectuation of the 100.0% interest in São Bento Energia, Investimentos e Participações is subject to approval by ANEEL, CADE (Brazil s antitrust authority) and the BNDES. 5LER - Auction Reserve Energy | ||||||||
The Farol (20 MW), Olho d’Água (30 MW), São Bento do Norte (30 MW) and Boa Vista (14 MW) wind farms have been concluded and are fully equipped to begin operations as of September 1; 2013, however, start-up depends on the completion of transmission facilities, whose works are not under the responsibility of generation companies and are scheduled to be finalized at the beginning of 2015. In this period, the projects will earn the fixed revenue provided for in their respective agreements, which currently totals R$ 63.9 million/year.
The other projects are under construction and on schedule. All the energy to be produced was sold through 20- year agreements. Copel's portfolio also includes wind farms totaling 570 MW. For further details, please refer to item 8.6.
Interest in Wind Farms
COPEL has recently acquired from Voltalia Energia do Brasil Ltda. – Voltalia a 49% interest in the São Miguel do Gostoso wind farm complex, in Rio Grande do Norte State.
The São Miguel do Gostoso wind farm complex, which is already under implementation, comprises four wind farms, 108 MW installed capacity, whose energy was sold in the Fourth Reserve Energy Auction by avarege price R$ 98,92 MWh,under twenty-year contracts, with supply beginning in April, 2015.
* Amounts subject to rounding.
35
Wind Farm | Installed Capacity¹ (MW) | Assured Power (Average MW) | Price² | Start up | CAPEX³ (R$ million) | Stake (%) | Wind farm location | Expiration of Authorization |
4thLER42011 | ||||||||
Carnaúbas | 27.0 | 13.1 | 98.92 | Apr/15 | 127.09 | 49% COPEL 51% Voltalia | São Miguel do Gostoso (RN) | Jul/47 |
Reduto | 27.0 | 14.4 | 128.92 | |||||
Santo Cristo | 27.0 | 15.3 | 128.92 | |||||
São João | 27.0 | 14.3 | 128.92 | |||||
Total | 108.0 | 57.1 | 98.9 | 513.9 | ||||
¹ The capacity envisaged in the Auction was altered based on the characteristics of Acciona Windpower s equipment, respecting the volume of energy sold. ² Historical price. Value will be adjusted by the IPCA. ³ CAPEX estimated by Brazilian Electricity Regulatory Agency (Aneel) on the date of the auction. 4LER - Leilão de Energia de Reserva | ||||||||
8.2 Transmission
In Operation
The table below presents COPEL’s transmission concession agreements and the main features of its transmission lines and substations:
TL | Substation | Concession | APR ¹ | ||||
Subsidiary / SPC | Contract | Enterprise | Extension (km) | Amount | MVA | Expiration | (R$ million) |
COPEL GeT | 060/2001 | Several | 1,889 | 32 | 12,052 | Dec-42 | 150.1 |
COPEL GeT | 075/2001 | TL Bateias - Jaguariaiva | 137 | - | - | Jul-31 | 16.5 |
COPEL GeT | 006/2008 | TL Bateias - Pilarzinho | 32 | - | - | Mar-38 | 0.9 |
COPEL GeT | 027/2009 | TL Foz - Cascavel Oeste | 116 | - | - | Nov-39 | 10.1 |
COPEL GeT | 015/2010 | Cerquilho III Substation | - | 1 | 300 | Oct-40 | 4.2 |
Subtotal Copel GeT ² | 2,174 | 33 | 12,352 | - | 181.8 | ||
Caiuá Transmissora | 006/2011 | TL Guaíra - Umuarama Sul TL Cascavel Norte - Cascavel Oeste Santa Quitéria Substation / Cascavel Norte Substation | 136 | 2 | 700 | May-42 | 10.1 |
Subtotal SPCs ³ | 136 | 2 | 700 | 10.1 | |||
Total | 2,310 | 35 | 13,052 | 191.9 | |||
¹ Refered to COPEL's stake ² Consolidated Financial Statement ³ Equity in Earning of Subsidiaries | |||||||
Under Construction
COPEL is substantially increasing its share of the transmission segment through own investments and partnerships in SPCs. The projects have a joint total of 5,778 km of transmission lines and 13 substations and will generate APR of R$ 759.0 million, R$ 305.8 million of which refers to COPEL’s share.
COPEL’s interest in the transmission projects is available in the table below:
* Amounts subject to rounding.
36
Subsidiary / SPC | Auction | Signing of Contract | Enterprise | State | km | Subst | Partnerships | RAP¹ (R$ million) | CAPEX ² (R$ million) | Start up |
COPEL GeT | 001/2010 | Oct-10 | TL Araraquara II Taubaté | SP | 356 | - | 100% COPEL GeT | 26.0 | 250.0 | Oct/15 |
COPEL GeT | 005/2012 | Aug-12 | TL Londrina - Figueira TL Foz do Chopim - SaTLo Osório | PR | 98 | - | 100% COPEL GeT | 4.7 | 37.0 | Feb/15 |
COPEL GeT | 007/2012 | Feb-13 | TL As sis Paraguaçu Paulista II Subs tation Paraguaçu Paulista II | SP | 37 | 1 | 100% COPEL GeT | 6.5 | 57.8 | Jun/15 |
COPEL GeT | 007/2013 | Jan-14 | TL Bateias - Curitiba Norte | PR | 33 | 1 | 100% COPEL GeT | 6.7 | 69.0 | Jul/16 |
COPEL GeT | 001/2014 | ³ | TL Foz do Chopim - Realeza | PR | 53 | 1 | 100% COPEL GeT | 5.7 | 49 | ³ |
COPEL GeT | 001/2014 | ³ | TL Assis Londrina | SP / PR | 120 | - | 100% COPEL GeT | 15 | 135 | ³ |
Subtotal Copel GeT | 697 | 3 | 64.6 | 597.8 | ||||||
Costa Oeste | 004/2011 | Jan-12 | TL Cascavel Oeste - Umuarama Sul Substation Umuarama Sul | PR | 143 | 1 | 51% COPEL GeT 49% Eletrosul | 10.5 | 75.0 | TL s et/14 Substation in operation |
Transm. Sul Brasileira | 006/2011 | May-12 | TL Nova Sta Rita - Camaquã | RS / PR / SC | 798 | 1 | 20% COPEL GeT 80% Eletrosul | 57.5 | 520.0 | Partial Operation |
Marumbi | 006/2011 | May-12 | TL Curitiba - Curitiba Leste | PR | 28 | 1 | 80% COPEL GeT 20% Eletrosul | 15.1 | 111.0 | Dec/14 |
Integração Maranhense | 006/2011 | May-12 | TL Açailandia - Miranda II | MA | 365 | - | 49% COPEL GeT 51% Elecnor | 31.0 | 360.0 | Sep/14 |
Matrinchã | 002/2012 | May-12 | TL Paranaíta - Ribeirãozinho | MT | 1,005 | 3 | 49% COPEL GeT 51% State Grid | 145.0 | 1,800.0 | Apr/15 |
Guaraciaba | 002/2012 | May-12 | TL Ribeirãozinho - Marimbondo | MT / GO / MG | 600 | 1 | 49% COPEL GeT 51% State Grid | 83.8 | 900.0 | Apr/15 |
Paranaíba | 007/2012 | May-13 | TL Barreiras II - Pirapora II | BA / MG / GO | 967 | - | 24,5% COPEL GeT 24,5% Furnas 51% State Grid | 100.3 | 960.0 | May/16 |
Mata de SantaGenebra | 007/2013 | May-14 | TL Araraquara II - Bateias | SP / PR | 847 | 3 | 50,1% COPEL GeT 49,9% Furnas | 174.4 | 1,566.0 | Oct/17 |
Cantareira | 001/2014 | ³ | TL Estreito - Fernão Dias | SP / MG | 328 | - | 49% Copel GeT 51% Elecnor | 76.9 | 624.0 | ³ |
Subtotal SPC ³ | 5,081 | 10 | 694.4 | 6,916.0 | ||||||
Total | 5,778 | 13 | 759.0 | 7,513.8 | ||||||
¹ Update according to Aneel Ratification Resolution 1756/2014. (R$ milion) ² ANEEL reference value (R$ million) ³ Contract in procedures for signing. | ||||||||||
8.3 Distribution
Distribution Lines | Substation | ||||
Distribution Lines | km | ||||
13,8 kV | 100,889.7 | Voltage | Substations | MVA | |
34,5 kV | 81,759.7 | 34,5 kV | 231 | 1,493.5 | |
69 kV | 727.2 | 69 kV | 35 | 2,441.7 | |
88 kV¹ | - | 5.0 | |||
138 kV | 5,153.5 | 138 kV | 95 | 6,447.8 | |
230 kV | 123.5 | TOTAL | 361 | 10,388.0 | |
TOTAL | 188,653.6 | 1Not automated. |
* Amounts subject to rounding.
37
Compact-Design Distribution Lines
Copel Dis has continued to implement compact-design distribution lines in urban areas with a high concentration of trees surrounding the distribution grids. This technology reduces the number of trees cut down or trimmed, and improves the quality of power supply by reducing the number of unplanned outages. The total length of compact-design distribution lines in operation on June 30, 2014 was 5,794 km.
Secondary Isolated Lines
Copel Dis has also invested in low-voltage (127/220V) secondary isolated lines, which offer substantial advantages over regular overhead lines, including: improvement in DEC and FEC distribution performance indicators, defense against illegal connections, improved environmental conditions, reduced areas subject to tree trimming, improved safety, reduced voltage drops throughout the grid, and increased transformer useful life, due to the reduction of short-circuits, among other advantages.
The total length of installed secondary isolated lines closed the half at 11,338 km.
Quality of Supply
The two main indicators of power supply quality are DEC (outage duration) and FEC (outage frequency). The trends for these indicators, as well as for average waiting times, are shown below:
Jan-Mar | DEC ¹ (hours) | FEC ² (outages) | Waiting time (hours) |
2010 | 5.80 | 4.91 | 1:37 |
2011 | 5.40 | 4.17 | 1:37 |
2012 | 4.91 | 3.92 | 1:39 |
2013 | 5.20 | 3.86 | 1:42 |
2014 | 6.97 | 4.45 | 2:36 |
¹ DEC measured in hours and hundredths of an hour ² FEC expressed in number of interruptions and hundredths of a number of interruptions year to date | |||
* Amounts subject to rounding.
38
8.4 Telecommunications
In June 2014, COPEL’s main operational indicators in the telecommunications area were as follows:
- Total length of fiber optic cables within the main ring: 9,559 km
- Total length of self-sustained fiber optic cables: 15,817 km
Number of cities served:
Paraná State: 399
Santa Catarina State: 2
Number of customers: 13,135
* Amounts subject to rounding.
39
8.5 Equity Interests
Other Sectors
COPEL holds interests in companies in the gas, telecommunications, sanitation and service sectors, as shownbelow:
Company | Sector | Partners |
Dominó Holdings S.A. | Sanitation | COPEL - 49.0% Andrade Gutierrez - 51.0% |
Sanepar | Sanitation | COPEL - 7.6% State of Paraná - 58.7% Dominó Holdings S.A. - 12,2% Daleth Participações - 8.3% Andrade Gutierrez - 2.1% Other - 11,1% |
Compagas | Gas | COPEL - 51.0% Mitsui Gás - 24.5% Gaspetro - 24.5% |
Consórcio Petra1 | Oil and natural gas | COPEL - 30.0% Petra Energia2- 30.0% Bayar Participações -30.0% Tucumann Engenharia - 10.0% |
Sercomtel S.A. Telecom | Telecommunications | COPEL - 45.0% Município de Londrina - 55.0% |
Carbocampel S.A. | Coal mining | COPEL - 49.0% Carbonífera Cambuí - 51.0% |
Escoelectric Ltda | Services | COPEL - 40.0% Lactec - 60.0% |
Copel-Amec Ltda3 | Services | COPEL - 48.0% Amec - 47.5% Lactec - 4.5% |
1Consortium formalized in 2014 2Operating Company 3Being liquidated | ||
* Amounts subject to rounding.
40
Accounting Information
Accounting information concerning COPEL’s interests in other companies in 1H14 is shown in the following table:
R$'000 | ||||
Partnerships | Total Assets | Shareholders' Equity | Net Oper. Revenues | Net Income |
Parent Company | ||||
Compagas S.A. | 490,360 | 283,354 | 849,364 | 48,043 |
Elejor S.A. | 743,201 | 102,655 | 123,114 | 32,468 |
UEG Araucária Ltda | 1,132,679 | 946,598 | 1,043,144 | 244,843 |
Jointly-controlled entities | ||||
Costa Oeste Transmissora de Energia S.A. | 95,264 | 48,681 | 42,054 | 6,077 |
Caiuá Transmissora de Energia S.A. | 199,027 | 84,214 | 51,281 | 1,934 |
Mata de Santa Genebra S.A | 30,378 | 29,136 | 15,325 | (864) |
Dominó Holdings S.A. | 467,540 | 444,202 | - | 68,440 |
Guaraciaba Transmissora de Energia (TP Sul) S.A. | 556,325 | 90,176 | 218,149 | 10,933 |
Integração Maranhense Transmissora de Energia S.A. | 354,858 | 127,201 | 62,240 | 713 |
Marumbi Transmissora de Energia S.A. | 72,221 | 41,587 | 33,379 | 4,291 |
Matrinchã Transmissora de Energia (TP Norte) S.A. | 1,082,003 | 225,376 | 450,100 | 25,379 |
Paranaíba Transmissora de Energia S.A. | 176,476 | 174,161 | 63,004 | 3,302 |
Transmissora Sul Brasileira de Energia S.A. | 616,500 | 328,002 | 113,203 | 7,225 |
Associates | ||||
Dona Francisca Energética S.A. | 286,465 | 262,443 | 26,808 | 9,835 |
Foz do Chopim Energética Ltda | 46,519 | 44,469 | 10,214 | 7,831 |
This data was adjusted to COPEL's practices. |
8.6 New Projects
Wind Farm Portfolio
On March 11, 2014, Copel concluded the acquisition of a 50.1% interest in Cutia Empreendimentos Eólicos SPE S.A, in which COPEL already had a 49.9% interest. The Company comprises five wind farm projects in Rio Grande do Norte State, with a joint installed capacity of 129 MW.
The Board of Directors also approved the acquisition of other Galvão Energia e Participações wind farms totaling an installed capacity of 441 MW.
Wind Farm | Assured Power | Installed Capacity |
(Average MW) | (MW) | |
Cutia Empreendimentos Eólicos | 74.9 | 129.0 |
Other Projects | 241.0 | 441.0 |
Total | 315.9 | 570.0 |
* Amounts subject to rounding.
41
São Jerônimo Hydroelectric Power Plant
The project comprises the future São Jerônimo Hydroelectric Power Plant, with an estimated installed capacity
of 331 MW, located on the Tibagi River, in Paraná State. This project’s implementation will be based on the concession for the use of public assets in ANEEL Auction Notice 02/2001 and has been awarded to Consórcio São Jerônimo, in which COPEL holds a 41.2% interest. The beginning of the works depends on authorization by the National Congress, pursuant to article 231, paragraph 3 of the Federal Constitution, as the plant’s reservoir is in indigenous areas.
Small Hydroelectric Power Plant (SHP) Projects
COPEL holds interests in certain power generation projects in small hydropower plants with a joint installed capacity of 206.2 MW. The following table presents the main features of these projects:
Project | Estimated Installed Capacity | Estimated Assured Power | COPEL' Stake |
(MW) | (Average MW) | (%) | |
SHP Bela Vista | 29.0 | 18.0 | 36.0 |
SHP Dois Saltos | 25.0 | 13.6 | 30.0 |
SHP Foz do Curucaca | 29.5 | 16.2 | 15.0 |
SHP Salto Alemã | 29.0 | 15.9 | 15.0 |
SHP São Luiz | 26.0 | 14.3 | 15.0 |
SHP Pinhalzinho | 10.9 | 5.9 | 30.0 |
SHP Alto Chopim | 20.3 | 11.2 | 15.0 |
SHP Burro Branco | 10.0 | 5.1 | 30.0 |
SHP Rancho Grande | 17.7 | 9.7 | 15.0 |
SHP Foz do Turvo | 8.8 | 4.7 | 30.0 |
Total | 206.2 | 114.6 |
Hydroelectric Potential Surveyed Along the Piquiri River
The feasibility studies for the four hydroelectric power plants making up the hydroelectric potential of the Piquiri River, in Paraná, were submitted by COPEL and accepted by ANEEL in 2012. The following table features these plants, which have a joint installed capacity 459.3 MW:
Project | Estimated Installed Capacity (MW) |
HPP Apertados | 139.0 |
HPP Comissário | 140.0 |
HPP Foz do Piquiri | 93.2 |
HPP Ercilândia | 87.1 |
Tapajós Hydroelectric Complex
COPEL has entered into a Technical Cooperation Agreement with eight other companies to develop studies on the Tapajós and Jamanxim Rivers in the North region, comprising the environmental assessment of theTapajós river basin and the feasibility of the Tapajós River Complex, comprising five plants, with a joint installed capacity of 10,682 MW.
* Amounts subject to rounding.
42
The plants currently under study are: Jatobá, with 2,338 MW, and São Luiz do Tapajós, the biggest, with 6,133 MW, both on the Tapajós River. On the Jamanxim River, we will study the hyroelectric power plants Cachoeira do Caí (802 MW), Cachoeira dos Patos (528 MW) and Jamanxim (881 MW).
The technical and economic feasibility study of the São Luiz do Tapajós hydroelectric power plant (EVTE) was delivered to Aneel in April 2014. The document presents a study of the technical and economic conditions that comprise one of the feasibility aspects of building the plant, with an estimated installed capacity of 8,000 MW. The agency will now analyze the study and completes this process, wich will be incorporated into the documentation that will underpin the bid notice for the plant’s concession.
Oil and Gas Exploration and Production
On November 28, 2013, in the 12th round of Bids of the National Petroleum Agency (ANP), the consortium formed by COPEL (30%), Bayar Participações (30%), Tucumann Engenharia (10%) and Petra Energia (30%) (the latter acting as operator) won the right to explore, develop and produce oil and natural gas in four blocks in an 11,297-km²area in the midwestern region of Paraná State. The consortium’s total investment will come to R$ 78.1 million in the first phase of exploration, with an estimated duration of six years.
Signature Bonus: R$ 12.5 million
Exploration Program: R$ 78.1 million
* Amounts subject to rounding.
43
9. Other Information
9.1 Human ResourcesCOPEL’s workforce closed the 1H14 at 8,573 employees distributed as as shown in the graph. In 1H14, COPEL reduced its number of employees by 8.2% over the same period last year. The table below shows employee number trends in the Company and its subsidiaries in the last four years: | ![]() |
On June 30, 2014, Copel Distribuição had 4,255,804 customers, representing a consumer-to-employee ratio of 709. Compagas, Elejor and UEG Araucária, companies in which COPEL holds a majority interest, had 156, 7 and 14 employees, respectively.
* Amounts subject to rounding.
44
9.2 Main Operational Indicators
Installed | |||||
Generation | capacity | Transmission | |||
(MW) | |||||
Copel GeT | Copel GeT | ||||
In operation | 4,754.4 | In operation | |||
Hydroeletric | 18 | 4,731.9 | Transmission Lines (km) | 2,174 | |
Thermal | 1 | 20.0 | Substation (amount) | 33 | |
Wind power | 1 | 2.5 | Under construction | ||
Under construction | 405.0 | Transmission Lines (km) | 697 | ||
Hydroeletric | 2 | 405.0 | Substation (amount) | 3 | |
Copel Holding | Partnership ¹ | ||||
In operation | 94.0 | In operation | |||
Wind farms | 4 | 94.0 | Transmission Lines (km) | 136 | |
Under construction | 184.0 | Substation (amount) | 2 | ||
Wind farms | 7 | 184.0 | Under construction | ||
Partnership | Transmission Lines (km) | 5,081 | |||
In operation | 606.0 | Substation (amount) | 10 | ||
Hydroeletric | 5 | 218.7 | |||
Thermal | 1 | 387.3 | |||
Distribuition | |||||
Under construction | 28.0 | ||||
Wind farms | 4 | 28.0 | Distribution lines (km) | 188,654 | |
Substations | 361 | ||||
Installed power substations (MVA) | 10,388 | ||||
Telecommunication | |||||
Municipalities served ² | 395 | ||||
Optical cables in the main ring - interurban (km) | 9,559 | Locations served | 1,113 | ||
Optical cables self-sustained - urban (km) | 15,817 | Captive customers | 4,255,804 | ||
Cities served in Parana State | 399 | Customers by distribution employee | 709 | ||
Cities served in Santa Catarina State | 2 | DEC (in hundredths of an hour and minute) | 7 | ||
Customers | 13,135 | FEC (number of outages) | 4 | ||
Administration | |||||
Total employees | 8,573 | ||||
Copel Geração e Transmissão | 1,508 | Copel Participações | 10 | ||
Copel Distribuição | 6,000 | Copel Renováveis | 12 | ||
Copel Telecomunicações | 436 | Copel Holding | 607 |
* Amounts subject to rounding.
45
9.3 2Q14 Results Conference Call
Information about 2Q14 Results Conference Call:
> Friday, Aug 15, 2014, at 3:00 p.m. (Brasília time)
> Telephone: (+1 516) 300 1066
> Code: COPEL
A live webcast of the conference call will be available at:www.copel.com/ri
Please connect 15 minutes before the call.
Investor Relations – COPEL
ri@copel.com
Telephone: (+ 55 41) 3222-2027
The information contained in this press release may contain forward-looking statements that reflect 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 relevant operating and financial strategies, the investment program, factors or trends affecting the Company’s 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.
* Amounts subject to rounding.
46
Exhibit I – Consolidated Cash Flow Statement
R$'000 | ||
Consolidated Cash Flow | 1H14 | 1H13 |
Cash flow from operating activities | ||
Net income for the period | 831,306 | 650,271 |
Adjustments to reconcile net income with the cash provided by operating activities | 952,695 | 855,432 |
Depreciation | 182,182 | 177,142 |
Amortization of intangible assets - concession | 122,066 | 111,575 |
Amortization of intangible assets - other | 3,914 | 3,695 |
Unrealized monetary and exchange variations, net | 88,800 | 8,612 |
Remuneration of accounts receivable related to the concess ion | (26,529) | (13,202) |
Equity in earnings of subs idiaries | (84,582) | (31,970) |
Income Tax and Social Contribution | 548,771 | 438,740 |
Deferred Income Tax and Social Contribution | (209,867) | (128,656) |
Provision for doubtful accounts | 39,907 | 22,147 |
Provision for tax credit los ses | 817 | (231) |
Reversal of provision for losses from devaluation of investments | (1,728) | - |
Provision (reversal) for legal claims | 108,278 | 112,558 |
Provisions for post employment benefits | 105,435 | 94,188 |
Provision for research and development and energy efficiency | 54,829 | 39,839 |
Write off of intangible as sets related to concession - goodwill | 16,647 | 8,726 |
Write off of property, plant, and equipment | 804 | 1,281 |
Write off of intangible as sets | 2,951 | 10,988 |
Decrese (increase) in assets | (440,026) | 78,132 |
Increase (reduction) of liabilities | (883,038) | (620,066) |
Net cash generated by operating activities | 460,937 | 963,769 |
Cash flow from investing activities | ||
Bonds and securities | (54,198) | 132,177 |
Investment additions to Cutia net effect of the cash acquired | (284) | - |
Additions in inves tments | (192,343) | (237,391) |
Additions to property, plant, and equipment | (299,120) | (128,703) |
Additions to intangible assets related to the concessions | (518,594) | (464,865) |
Additions to intangible assets - conces sion and permission rigths | (12,769) | - |
Customer contributions | 67,330 | 52,015 |
Additions to other intangible assets | (15,335) | (2,878) |
Net cash generated (used) by investing activities | (1,025,313) | (649,645) |
Cash flow from financing activities | ||
Loans and financing obtained | - | 12,249 |
Debentures Iss ued | 1,372,775 | - |
Amortization of principal amounts of loans and financing | (216,403) | (30,595) |
Amortization of principal amounts of debentures | (20,304) | - |
Dividends and interest on own capital paid | (249,787) | (184,612) |
Net cash used by financing activities | 886,281 | (202,958) |
Increase (decrease) in cash and cash equivalents | 321,905 | 111,166 |
Cash and cash equivalents at the beginning of the year | 1,741,632 | 1,459,217 |
Cash and cash equivalents at the end of the year | 2,063,537 | 1,570,383 |
Variation in cash and cash equivalents | 321,905 | 111,166 |
* Amounts subject to rounding.
47
Exhibit II – Financial Statements – Wholly Owned Subsidiaries
Income Statement – Copel Geração e Transmissão
R$'000 | |||||||
Income Statement | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var.% |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
OPERATING REVENUES | 810,142 | 843,149 | 555,551 | 45.8 | 1653291.0 | 1,423,882 | 16.1 |
Electricity sales to final customers | 121,833 | 109,407 | 122,030 | (0.2) | 231,240.0 | 225,119 | 2.7 |
Electricity sales to distributors | 570,502 | 627,486 | 343,074 | 66.3 | 1,197,988.0 | 1,069,800 | 12.0 |
Use of the main distribution and transmission grid | 41,584 | 45,661 | 37,486 | 10.9 | 87,245.0 | 72,973 | 19.6 |
Construction revenue | 67,412 | 49,527 | 38,964 | 73.0 | 116,939.0 | 34,449 | 239.46 |
Other operating revenues | 8,811 | 11,068 | 13,997 | (37.1) | 19,879.0 | 21,541 | (7.7) |
Operating costs and expenses | (385,794) | (361,283) | (386,194) | (0.1) | (747077.0) | (689,416) | 8.4 |
Electricity purchased for resale | (30,601) | (19,071) | (33,168) | (7.7) | (49,672.0) | (63,073) | (21.2) |
Use of main distribution and transmi ssion grid | (53,049) | (52,649) | (48,893) | 8.5 | (105,698.0) | (99,753) | 6.0 |
Personnel and management | (50,503) | (46,741) | (64,890) | (22.2) | (97,244.0) | (120,475) | (19.3) |
Pension and healthcare plans | (12,110) | (12,942) | (12,347) | (1.9) | (25,052.0) | (23,043) | 8.7 |
Materials and supplies | (3,125) | (4,832) | (3,219) | (2.9) | (7,957.0) | (6,315) | 26.0 |
Materials and supplies for power eletricity | (5,434) | (3,936) | (9,341) | (41.8) | (9,370.0) | (12,620) | (25.8) |
Third-party services | (26,067) | (28,510) | (24,917) | 4.6 | (54,577.0) | (45,800) | 19.2 |
Depreciation and amortization | (72,665) | (73,253) | (69,924) | 3.9 | (145,918.0) | (140,717) | 3.7 |
Provisions and reversals | (35,228) | (21,705) | (39,109) | (9.9) | (56,933.0) | (52,265) | 8.9 |
Construction cost | (58,983) | (57,960) | (29,748) | 98.3 | (116,943.0) | (38,840) | 201.1 |
Other cost and expenses | (38,029) | (39,684) | (50,638) | (24.9) | (77,713.0) | (86,515) | (10.2) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 84,636 | 89,712 | 16,401 | 416.0 | 174,348.0 | 27,023 | 545.2 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 508,984 | 571,578 | 185,758 | 174.0 | 1,080,562.0 | 761,489 | 41.9 |
FINANCIAL RESULTS | 35,906 | 35,954 | 28,674 | 25.2 | 71,860.0 | 62,262 | 15.4 |
Income tax and s ocial contribution on profit | 44,948 | 45,848 | 38,216 | 17.6 | 90,796.0 | 80,889 | 12.2 |
Deferred i ncome tax and socia l contribution on profit | (9,042) | (9,894) | (9,542) | (5.2) | (18,936.0) | (18,627) | 1.7 |
OPERATIONAL EXPENSES/ INCOME | 544,890 | 607,532 | 214,432 | 154.1 | 1,152,422.0 | 823,751 | 39.9 |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (155,128) | (175,977) | (65,206) | 137.9 | (331,105.0) | (267,979) | 23.6 |
Income tax and s ocial contribution on profit | (191,680) | (216,447) | (113,107) | 69.5 | (408,127.0) | (361,309) | 13.0 |
Deferred i ncome tax and socia l contribution on profit | 36,552 | 40,470 | 47,901 | (23.7) | 77,022.0 | 93,330 | (17.5) |
NET INCOME (LOSS) | 389,762 | 431,555 | 149,226 | 161.2 | 821,317.0 | 555,772 | 47.8 |
EBITDA | 581,649 | 644,831 | 255,682 | 127.5 | 1226480.0 | 902,206 | 35.9 |
* Amounts subject to rounding.
48
Income Statement – Copel Distribuição
R$'000 | |||||||
Income Statement | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var.% |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
OPERATING REVENUES | 1,617,696 | 1,639,732 | 1,396,890 | 15.8 | 3,257,428 | 2,796,427 | 16.5 |
Electricity sales to final customers | 799,132 | 813,842 | 664,226 | 20.3 | 1,612,974 | 1,332,993 | 21.0 |
Electricity sales to distributors | 41,219 | 26,219 | 24,149 | 70.7 | 67,438 | 48,602 | 38.8 |
Use of the main distribution and transmission grid | 479,845 | 531,322 | 444,158 | 8.0 | 1,011,167 | 940,514 | 7.5 |
Construction revenue | 253,976 | 230,916 | 226,489 | 12.1 | 484,892 | 402,571 | 20.4 |
Other operating revenues | 43,524 | 37,433 | 37,868 | 14.9 | 80,957 | 71,747 | 12.8 |
OPERATING COSTS AND EXPENSES | (1,968,033) | (1,714,849) | (1,349,861) | 45.8 | (3,682,882) | (2,900,866) | 27.0 |
Electricity purchased for resa le | (1,230,882) | (1,035,148) | (717,614) | 71.5 | (2,266,030) | (1,595,354) | 42.0 |
Use of main distribution and transmission grid | (86,914) | (90,924) | 10,910 | - | (177,838) | (103,400) | 72.0 |
Personnel and management | (133,190) | (130,850) | (157,429) | (15.4) | (264,040) | (323,603) | (18.4) |
Pension and healthcare plans | (29,209) | (31,285) | (28,988) | 0.8 | (60,494) | (57,981) | 4.3 |
Materials and supplies | (14,198) | (12,742) | (13,247) | 7.2 | (26,940) | (27,260) | (1.2) |
Third-party services | (70,706) | (62,592) | (78,092) | (9.5) | (133,298) | (150,248) | (11.3) |
Depreciation and amortization | (54,853) | (54,399) | (49,950) | 9.8 | (109,252) | (100,028) | 9.2 |
Provisions and reversals | (50,827) | (37,917) | (63,560) | (20.0) | (88,744) | (92,859) | (4.4) |
Construction cost | (253,976) | (230,916) | (226,489) | 12.1 | (484,892) | (402,571) | 20.4 |
Other cost and expenses | (43,278) | (28,076) | (25,402) | 70.4 | (71,354) | (47,562) | 50.0 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | (350,337) | (75,117) | 47,029 | - | (425,454) | (104,439) | 307.4 |
FINANCIAL RESULTS | 27,330 | 55,825 | 56,292 | (51.4) | 83,155 | 107,237 | (22.5) |
Income tax and social contribution on profit | 63,114 | 103,653 | 108,532 | (41.8) | 166,767 | 205,605 | (18.9) |
Deferred income tax and social contribution on profi t | (35,784) | (47,828) | (52,240) | (31.5) | (83,612) | (98,368) | (15.0) |
OPERATIONAL EXPENSES/ INCOME | (323,007) | (19,292) | 103,321 | - | (342,299) | 2,798 | - |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | 108,685 | 4,717 | (35,152) | - | 113,402 | (2,316) | - |
Income tax and social contribution on profit | 2,549 | (2,549) | (45,338) | - | - | (45,338) | - |
Deferred income tax and social contribution on profi t | 106,136 | 7,266 | 10,186 | - | 113,402 | 43,022 | 163.6 |
NET INCOME (LOSS) | (214,322) | (14,575) | 68,169 | (414.4) | (228,897) | 482 | - |
EBITDA | (295,484) | (20,718) | 96,979 | (404.7) | (316,202) | (4,411) | - |
* Amounts subject to rounding.
49
Income Statement– Copel Telecomunicações
R$'000 | |||||||
Income Statement | 2Q14 | 1Q14 | 2Q13 | Var.% | 1H14 | 1H13 | Var % |
(1) | (2) | (3) | (1/3) | (4) | (5) | (4/5) | |
OPERATING REVENUES | 49,179 | 48,363 | 46,340 | 6.1 | 97,542 | 91,559 | 6.5 |
Revenues from telecommunications | 47,646 | 46,790 | 44,630 | 6.8 | 94,436 | 88,167 | 7.1 |
Other operating revenues | 1,533 | 1,573 | 1,710 | (10.4) | 3,106 | 3,392 | (8.4) |
OPERATING COSTS AND EXPENSES | (29,357) | (27,949) | (29,973) | (2.1) | (57,306) | (58,082) | (1.3) |
Personnel and management | (11,326) | (10,324) | (13,638) | (17.0) | (21,650) | (25,256) | (14.3) |
Pension and healthcare plans | (1,850) | (2,066) | (1,606) | 15.2 | (3,916) | (3,538) | 10.7 |
Materials and supplies | (296) | (287) | (381) | (22.3) | (583) | (761) | (23.4) |
Third-party services | (5,284) | (4,287) | (4,222) | 25.2 | (9,571) | (8,451) | 13.3 |
Depreciation and amortiza tion | (7,119) | (6,793) | (6,852) | 3.9 | (13,912) | (14,151) | (1.7) |
Provisions and reversals | (581) | (1,151) | (1,259) | (53.9) | (1,732) | (1,570) | 10.3 |
Other cost and expenses | (2,901) | (3,041) | (2,015) | 44.0 | (5,942) | (4,355) | 36.4 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 19,822 | 20,414 | 16,367 | 21.1 | 40,236 | 33,477 | 20.2 |
FINANCIAL RESULTS | 746 | 1,241 | 1,029 | (27.5) | 1,987 | 1,514 | 31.2 |
Income tax and social contribution on profit | 1,132 | 1,036 | 1,411 | (19.8) | 2,168 | 2,221 | (2.4) |
Deferred income tax and social contribution on profit | (386) | 205 | (382) | 1.0 | (181) | (707) | (74.4) |
OPERATIONAL EXPENSES / INCOME | 20,568 | 21,655 | 17,396 | 18.2 | 42,223 | 34,991 | 20.7 |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (6,979) | (7,349) | (5,890) | 18.5 | (14,328) | (11,856) | 20.9 |
Income tax and social contribution on profit | (6,263) | (8,137) | (6,082) | 3.0 | (14,400) | (11,949) | 20.5 |
Deferred income tax and social contribution on profit | (716) | 788 | 192 | - | 72 | 93 | (22.6) |
NET INCOME (LOSS) | 13,589 | 14,306 | 11,506 | 18.1 | 27,895 | 23,135 | 20.6 |
EBITDA | 26,941 | 27,207 | 23,219 | 16.0 | 54,148 | 47,628 | 13.7 |
* Amounts subject to rounding.
50
Exhibit III – Financial Statements by Company
Balance Sheet by Company
R$'000 | ||||||||||
Assets - June/14 | GeT | DIS | TEL | COM | ELE | UEGA | Other ¹ | HOL | Eliminations | Consolidated |
CURRENT | 2,125,275 | 1,757,737 | 59,081 | 199,148 | 60,024 | 725,433 | 243,349 | 1,117,641 | (583,165) | 5,704,523 |
Cash and cash equivalents | 989,611 | 194,065 | 10,793 | 45,932 | 38,260 | 8,820 | 240,226 | 535,830 | - | 2,063,537 |
Bonds and securities | 151,099 | 10,710 | - | - | - | 267,491 | - | 147 | - | 429,447 |
Collaterals and escrow accounts | 20,542 | 32 | - | 661 | - | - | - | - | - | 21,235 |
Customers | 329,007 | 1,058,897 | 26,545 | 136,074 | 20,212 | 413,326 | - | - | (136,229) | 1,847,832 |
Dividends receivable | 1,338 | - | - | - | - | - | - | 450,943 | (434,486) | 17,795 |
CRC transferred to the State Government of Paraná | - | - | - | - | - | - | - | 89,184 | - | 89,184 |
Account receivable related to concession | 6,258 | - | - | - | - | - | - | - | - | 6,258 |
Accounts receivable related to the concession extension | 385,264 | - | - | - | - | - | - | - | - | 385,264 |
Other current receivables | 190,124 | 295,615 | 3,066 | 1,513 | 1,190 | 448 | 1,904 | 21,005 | (12,449) | 502,416 |
Inventories | 29,063 | 100,014 | 10,318 | 1,120 | - | - | - | - | - | 140,515 |
Income tax and social contribution | 4,976 | 9,440 | 4,000 | - | - | 26,253 | 305 | 20,532 | - | 65,506 |
Other current recoverable taxes | 17,049 | 73,826 | 4,279 | 13,624 | - | 9,095 | 9 | - | - | 117,882 |
Prepaid expenses | 944 | 15,138 | 80 | 224 | 362 | - | 904 | - | - | 17,652 |
Related parties | - | - | - | - | - | - | 1 | - | (1) | - |
NON-CURRENT | 8,739,800 | 6,008,601 | 455,602 | 291,212 | 683,177 | 407,246 | 334,903 | 14,386,610 | (11,945,696) | 19,361,455 |
Long Term Assets | 908,941 | 4,701,646 | 46,495 | 52,847 | 30,548 | 229 | 77,287 | 2,012,185 | (137,679) | 7,692,499 |
Bonds and securities | 72,280 | 43,366 | - | - | - | - | - | - | - | 115,646 |
Collaterals and escrow accounts | - | 46,337 | - | - | - | - | - | - | - | 46,337 |
Customers | 4,744 | 45,213 | 21,282 | - | - | - | - | - | - | 71,239 |
CRC transferred to the State Government of Paraná | - | - | - | - | - | - | - | 1,276,497 | - | 1,276,497 |
Judicial deposits | 49,020 | 377,487 | 4,860 | 279 | 42 | 229 | 15 | 272,744 | - | 704,676 |
Account receivable related to concession | 533,313 | 3,365,513 | - | - | - | - | - | - | - | 3,898,826 |
Accounts receivable related to the concession extension | 189,564 | - | - | - | - | - | - | - | - | 189,564 |
Other receivables | 6,758 | 13,739 | - | 2,892 | - | - | (36) | 95 | - | 23,448 |
Income tax and social contribution | 532 | 13,401 | - | - | - | - | - | 177,932 | - | 191,865 |
Other recoverable taxes | 52,730 | 68,470 | 4,798 | 45,423 | - | - | - | - | - | 171,421 |
Deferred income tax and social contribution | - | 728,120 | 15,555 | 4,056 | 30,506 | - | - | 108,850 | - | 887,087 |
Receivables from subsidiaries | - | - | - | 197 | - | - | - | - | - | 197 |
Prepaid Expenses | - | - | - | - | - | - | 77,308 | 176,067 | (137,679) | 115,696 |
Investments | 1,168,872 | 1,374 | - | - | - | - | - | 12,342,413 | (12,118,716) | 1,393,943 |
Property, Plant and Equipment, net | 6,612,298 | - | 394,146 | - | 458,730 | 406,860 | 256,723 | 30,073 | - | 8,158,830 |
Intangible Assets | 49,689 | 1,305,581 | 14,961 | 238,365 | 193,899 | 157 | 893 | 1,939 | 310,699 | 2,116,183 |
TOTAL | 10,865,075 | 7,766,338 | 514,683 | 490,360 | 743,201 | 1,132,679 | 578,252 | 15,504,251 | (12,528,861) | 25,065,978 |
¹ Wind Farms, Copel Renováveis and Copel Participações |
* Amounts subject to rounding.
51
R$'000 | |||||||||
Assets - June/13 | GeT | DIS | TEL | COM | ELE | UEGA | HOL | Eliminations | Consolidated |
CURRENT | 1,522,846 | 2,724,868 | 86,422 | 98,701 | 32,400 | 282,157 | 1,886,521 | (1,749,619) | 4,884,296 |
Cash and cash equivalents | 548,477 | 873,257 | 33,006 | 44,466 | 11,058 | 18,154 | 41,965 | - | 1,570,383 |
Bonds and securities | 123,878 | 122,622 | - | - | 1,869 | 229,718 | 180 | - | 478,267 |
Collaterals and escrow accounts | - | 31,463 | - | 1,032 | - | - | - | - | 32,495 |
Customers | 275,796 | 953,228 | 30,802 | 43,887 | 18,726 | - | - | (45,706) | 1,276,733 |
Dividends receivable | 20 | - | - | - | - | - | 824,002 | (815,848) | 8,174 |
CRC transferred to the State Government of Paraná | - | 79,151 | - | - | - | - | - | - | 79,151 |
Account receivable related to concession | 4,257 | - | - | - | - | - | - | - | 4,257 |
Accounts receivable related to the concession extension | 352,161 | - | - | - | - | - | - | - | 352,161 |
Other current receivables | 167,644 | 483,309 | 2,953 | 714 | 630 | 27,742 | 19 | (764) | 682,247 |
Inventories | 30,970 | 93,746 | 9,520 | 909 | - | - | - | - | 135,145 |
Income tax and social contribution | 6,287 | 31,701 | 6,986 | 657 | - | 5,917 | 128,126 | - | 179,674 |
Other current recoverable taxes | 12,491 | 42,629 | 3,077 | 6,829 | 11 | 626 | - | - | 65,663 |
Prepaid expenses | 865 | 13,762 | 78 | 207 | 106 | - | - | 4,928 | 19,946 |
Receivables from subsidiaries | - | - | - | - | - | - | 892,229 | (892,229) | - |
NON-CURRENT | 8,371,440 | 6,337,525 | 370,932 | 214,975 | 706,436 | 428,059 | 12,157,478 | (11,628,148) | 16,958,697 |
Long Term Assets | 1,026,069 | 4,953,095 | 22,298 | 17,241 | 25,383 | 7,010 | 659,088 | (277,567) | 6,432,617 |
Bonds and securities | 95,818 | 52,309 | - | - | - | - | - | - | 148,127 |
Collaterals and escrow accounts | - | 44,023 | - | - | - | - | - | - | 44,023 |
Customers | 6,641 | 28,209 | 8 | 2,633 | - | - | - | (2,633) | 34,858 |
CRC transferred to the State Government of Paraná | - | 1,291,995 | - | - | - | - | - | - | 1,291,995 |
Judicial deposits | 24,714 | 289,087 | 1,568 | 289 | 65 | 249 | 271,999 | - | 587,971 |
Account receivable related to concession | 302,539 | 2,614,201 | - | - | - | - | - | - | 2,916,740 |
Accounts receivable related to the concession extension | 541,725 | - | - | - | - | - | - | - | 541,725 |
Advances to suppliers | 3,260 | 5,913 | - | 13,611 | - | - | - | - | 22,784 |
Other receivables | - | - | - | - | - | 6,761 | - | - | 6,761 |
Income tax and social contribution | 51,372 | 60,291 | 7,731 | - | - | - | - | - | 119,394 |
Other recoverable taxes | - | 567,067 | 12,991 | - | 25,318 | - | 112,155 | - | 717,531 |
Deferred income tax and social contribution | - | - | - | 708 | - | - | - | - | 708 |
Receivables from subsidiaries | - | - | - | - | - | - | 274,934 | (274,934) | - |
Investments | 685,700 | 4,012 | - | - | - | - | 11,498,390 | (11,373,547) | 814,555 |
Property, Plant and Equipment, net | 6,617,030 | - | 331,855 | - | 475,555 | 420,852 | - | - | 7,845,292 |
Intangible Assets | 42,641 | 1,380,418 | 16,779 | 197,734 | 205,498 | 197 | - | 22,966 | 1,866,233 |
TOTAL | 9,894,286 | 9,062,393 | 457,354 | 313,676 | 738,836 | 710,216 | 14,043,999 | (13,377,767) | 21,842,993 |
* Amounts subject to rounding.
52
R$'000 | ||||||||||
Liabilities - June/14 | GeT | DIS | TEL | COM | ELE | UEGA | Other ¹ | HOL | Eliminations | Consolidated |
CURRENT | 1,200,820 | 1,532,937 | 47,328 | 160,866 | 111,655 | 181,882 | 354,319 | 367,644 | (583,690) | 3,373,761 |
Social charges and accruals | 35,739 | 113,592 | 10,425 | 5,175 | 260 | 131 | 1,328 | 18,935 | - | 185,585 |
Associated companies and parent company | - | - | - | - | - | - | 1 | - | (1) | - |
Suppliers | 280,060 | 813,133 | 8,408 | 143,218 | 1,665 | 113,030 | 20,950 | 3,316 | (148,565) | 1,235,215 |
Income Tax and Social Contribution payable | 293,081 | - | 2,359 | 8,622 | 13,266 | 56,396 | 93 | - | - | 373,817 |
Other taxes | 20,189 | 171,954 | 3,769 | 1,252 | 1,309 | 10,297 | 1,411 | 747 | (110) | 210,818 |
Loans and financing | 78,187 | 178,943 | 5,727 | - | - | - | - | 303,759 | (528) | 566,088 |
Debentures | - | 18,455 | - | - | 40,488 | - | 330,335 | 10,491 | - | 399,769 |
Minimum compulsary dividend payable | - | - | - | - | - | - | - | - | - | - |
Dividends payable | 419,876 | - | 14,604 | 1,208 | - | - | 5 | 3,372 | (434,486) | 4,579 |
Post employment benefits | 8,032 | 21,914 | 1,080 | - | - | - | 1 | 14 | - | 31,041 |
Customer charges due | 8,455 | 16,442 | - | - | - | - | - | - | - | 24,897 |
Research and development and energy efficiency | 16,678 | 104,419 | - | - | 3,419 | 2,021 | - | - | - | 126,537 |
Payables related to concession - Use of Public Property | 2,846 | - | - | - | 49,686 | - | - | - | - | 52,532 |
Other accounts payable | 37,677 | 94,085 | 956 | 1,391 | 1,562 | 7 | 195 | 27,010 | - | 162,883 |
NON-CURRENT | 2,669,664 | 2,937,683 | 85,666 | 46,140 | 528,891 | 4,199 | 145,272 | 1,975,473 | (220,864) | 8,172,124 |
Associated companies and parent company | - | - | 16,000 | - | - | - | 145,021 | - | (161,021) | - |
Suppliers | 22,188 | 15,587 | - | - | - | - | - | - | - | 37,775 |
Tax liabilities | 16,888 | 56,868 | 3,227 | - | - | - | 19 | 497 | - | 77,499 |
Deferred income tax and social contribution | 343,794 | - | - | - | - | - | - | - | - | 343,794 |
Loans and financing | 1,270,768 | 652,402 | 30,205 | - | - | - | - | 684,427 | (59,843) | 2,577,959 |
Debentures | - | 998,646 | - | 42,876 | 131,735 | - | - | 994,216 | - | 2,167,473 |
Post-employment benefits | 298,268 | 622,254 | 31,151 | 2,499 | - | - | - | 17,754 | - | 971,926 |
Research and development and energy efficiency | 64,775 | 125,931 | - | - | - | 4,199 | - | - | - | 194,905 |
Payables related to the concession - Use of Public Property | 33,290 | - | - | - | 396,856 | - | - | - | - | 430,146 |
Other payables | - | - | - | - | - | - | 232 | - | - | 232 |
Tax, social security, labor and civil provisions | 619,693 | 465,995 | 5,083 | 765 | 300 | - | - | 278,579 | - | 1,370,415 |
EQUITY | 6,994,591 | 3,295,718 | 381,689 | 283,354 | 102,655 | 946,598 | 78,661 | 13,161,134 | (11,724,307) | 13,520,093 |
Capital | 3,505,994 | 2,624,841 | 240,398 | 135,943 | 35,503 | 707,440 | 85,826 | 6,910,000 | (7,335,945) | 6,910,000 |
AFAC | - | 153,000 | - | - | - | - | - | - | (153,000) | - |
Equity valuation adjustments | 1,095,077 | (150,166) | (4,940) | - | 256 | - | - | 929,459 | (940,227) | 929,459 |
Legal Reserves | 297,179 | 135,294 | 9,093 | 18,220 | 4,541 | - | 9 | 624,849 | (464,336) | 624,849 |
Retained earnigs | 1,225,880 | 761,646 | 109,243 | 81,148 | 29,887 | - | 177 | 3,897,833 | (2,207,981) | 3,897,833 |
Additional proposed dividends | 0 | - | - | - | - | - | - | - | - | - |
Accrued earnings (losses) | 870,461 | (228,897) | 27,895 | 48,043 | 32,468 | 239,158 | (7,351) | 798,993 | (981,777) | 798,993 |
Attributable to noncontrolling interests | - | - | - | - | - | - | - | - | 358,959 | 358,959 |
TOTAL | 10,865,075 | 7,766,338 | 514,683 | 490,360 | 743,201 | 1,132,679 | 578,252 | 15,504,251 | (12,528,861) | 25,065,978 |
¹ Wind Farms, Copel Renováveis and Copel Participações |
* Amounts subject to rounding.
53
R$'000 | |||||||||
Liabilities - June/13 | GeT | DIS | TEL | COM | ELE | UEGA | HOL | Eliminations | Consolidated |
CURRENT | 1,379,008 | 2,929,968 | 48,244 | 74,324 | 58,552 | 6,008 | 377,273 | (1,753,171) | 3,120,206 |
Social charges and accruals | 95,686 | 212,418 | 23,341 | 5,042 | 284 | 116 | 249 | - | 337,136 |
Associated companies and parent company | - | 887,301 | - | - | - | - | - | (887,301) | - |
Suppliers | 297,420 | 837,504 | 7,098 | 62,762 | 1,872 | 3,769 | 5,058 | (46,360) | 1,169,123 |
Income Tax and Social Contribution payable | 255,886 | 36,759 | 2,187 | - | 2,143 | 1,008 | - | - | 297,983 |
Other taxes | 21,912 | 152,736 | 3,964 | 1,131 | 2,911 | 1,094 | 907 | (109) | 184,546 |
Loans and financing | 65,102 | 169,930 | 2,386 | - | - | - | 288,198 | (3,553) | 522,063 |
Debentures | - | 13,407 | - | - | - | - | - | - | 13,407 |
Minimum compulsary dividend payable | 551,489 | 253,863 | 7,982 | 4,929 | - | - | 82,227 | (815,848) | 84,642 |
Post employment benefits | 7,074 | 18,356 | 918 | - | - | - | - | - | 26,348 |
Customer charges due | 42,751 | 11,074 | - | - | - | - | - | - | 53,825 |
Research and development and energy efficiency | 14,359 | 130,313 | - | - | 2,316 | - | - | - | 146,988 |
Payables related to concession - Use of Public Property | 906 | - | - | - | 47,593 | - | - | - | 48,499 |
Other payables | 26,423 | 206,307 | 368 | 460 | 1,433 | 21 | 634 | - | 235,646 |
NON-CURRENT | 1,795,373 | 2,598,818 | 57,830 | 6,163 | 589,575 | - | 1,007,020 | (274,014) | 5,780,765 |
Associated companies and parent company | - | - | - | - | 212,116 | - | - | (212,116) | - |
Suppliers | 75,249 | - | - | - | - | - | - | (2,633) | 72,616 |
Deferred income tax and social contribution | 492,593 | - | - | 2,615 | - | - | - | - | 495,208 |
Loans and financing | 413,741 | 621,899 | 35,792 | - | - | - | 716,876 | (59,265) | 1,729,043 |
Debentures | - | 998,185 | - | - | - | - | - | - | 998,185 |
Post-employment benefits | 215,954 | 457,635 | 19,734 | 2,807 | - | - | - | - | 696,130 |
Research and development and energy efficiency | 50,715 | 83,043 | - | - | - | - | - | - | 133,758 |
Payables related to the concession - Use of Public Property | 28,702 | - | - | - | 377,159 | - | - | - | 405,861 |
Tax, social security, labor and civil provisions | 518,419 | 438,056 | 2,304 | 741 | 300 | - | 290,144 | - | 1,249,964 |
EQUITY | 6,719,905 | 3,533,607 | 351,280 | 233,189 | 90,709 | 704,208 | 12,659,706 | (11,350,582) | 12,942,022 |
Capital | 3,505,994 | 2,624,841 | 240,398 | 135,943 | 35,503 | 707,440 | 6,910,000 | (7,250,119) | 6,910,000 |
Equity valuation adjustments | 1,238,449 | (67,165) | 1,139 | - | 2,088 | - | - | (1,174,511) | - |
Legal Reserves | 247,134 | 135,294 | 6,706 | 17,295 | 2,444 | - | 1,159,488 | (408,873) | 1,159,488 |
Retained earnigs | 1,123,315 | 840,155 | 79,902 | 69,067 | 34,827 | - | 571,221 | (2,147,266) | 571,221 |
Additional proposed dividends | - | - | - | - | - | - | 3,337,295 | - | 3,337,295 |
Accrued earnings (losses) | 605,013 | 482 | 23,135 | 10,884 | 15,847 | (3,232) | 681,702 | (652,129) | 681,702 |
Attributable to noncontrolling interests | - | - | - | - | - | - | - | 282,316 | 282,316 |
TOTAL | 9,894,286 | 9,062,393 | 457,354 | 313,676 | 738,836 | 710,216 | 14,043,999 | (13,377,767) | 21,842,993 |
* Amounts subject to rounding.
54
Income Statement by Company
R$'000 | ||||||||||
Income Statement 2Q14 | GeT | DIS | TEL | COM | ELE | UEGA | Other ¹ | HOL | Eliminations | Consolidated |
NET OPERATING INCOME | 810,142 | 1,617,696 | 49,179 | 460,222 | 63,011 | 568,751 | - | - | (450,827) | 3,118,174 |
Electricity sales to final customers | 121,833 | 799,132 | - | - | - | - | - | - | (534) | 920,431 |
Electricity sales to distributors | 570,502 | 41,219 | - | - | 63,011 | 572,143 | - | - | (73,979) | 1,172,896 |
Use of the main distribution and transmission grid (TUSD/ TUST) | 41,584 | 479,845 | - | - | - | - | - | - | (18,045) | 503,384 |
Construction revenue | 67,412 | 253,976 | - | 15,323 | - | - | - | - | - | 336,711 |
Telecommunications | - | - | 47,646 | - | - | - | - | - | (7,606) | 40,040 |
Distribution of piped gas | - | - | - | 444,855 | - | - | - | - | (340,251) | 104,604 |
Other operating revenues | 8,811 | 43,524 | 1,533 | 44 | - | (3,392) | - | - | (10,412) | 40,108 |
OPERATING COSTS AND EXPENSES | (385,794) | (1,968,033) | (29,357) | (436,810) | (18,953) | (410,110) | (2,363) | (34,422) | 450,946 | (2,834,896) |
Energy purchased for resale | (30,601) | (1,230,882) | - | - | (4,742) | - | - | - | 73,978 | (1,192,247) |
Charges of the main distribution and transmission grid | (53,049) | (86,914) | - | - | (1,943) | (3,686) | - | - | 18,196 | (127,396) |
Personnel and management | (50,503) | (133,190) | (11,326) | (6,857) | (782) | (382) | (2,201) | (24,373) | - | (229,614) |
Private pension and health plans | (12,110) | (29,209) | (1,850) | (483) | - | (11) | (189) | (3,350) | - | (47,202) |
Materials | (3,125) | (14,198) | (296) | (373) | (45) | (37) | (1) | (123) | - | (18,198) |
Raw material and supplies - energy production | (5,434) | - | - | - | - | (379,976) | - | - | 340,228 | (45,182) |
Natural gas and supplies for gas business | - | - | - | (386,548) | - | - | - | - | - | (386,548) |
Third-party services | (26,067) | (70,706) | (5,284) | (4,833) | (2,189) | (16,499) | 115 | (1,759) | 18,503 | (108,719) |
Depreciation and amortization | (72,665) | (54,853) | (7,119) | (4,049) | (6,707) | (8,607) | (1) | (189) | - | (154,190) |
Provisions and reversals | (35,228) | (50,827) | (581) | 12 | - | - | - | (1,344) | - | (87,968) |
Construction cost | (58,983) | (253,976) | - | (15,323) | - | - | - | - | - | (328,282) |
Other operating costs and expenses | (38,029) | (43,278) | (2,901) | (18,356) | (2,545) | (912) | (86) | (3,284) | 41 | (109,350) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 84,636 | - | - | - | - | - | - | 243,283 | (298,606) | 29,313 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 508,984 | (350,337) | 19,822 | 23,412 | 44,058 | 158,641 | (2,363) | 208,861 | (298,487) | 312,591 |
FINANCIAL RESULTS | 35,906 | 27,330 | 746 | 1,267 | (15,008) | 1,862 | 2,248 | (12,169) | (119) | 42,063 |
Income tax and social contribution on profit | 44,948 | 63,114 | 1,132 | 2,073 | 749 | 4,560 | 2,283 | 41,205 | (1,619) | 158,445 |
Deferred income tax and social contribution on profit | (9,042) | (35,784) | (386) | (806) | (15,757) | (2,698) | (35) | (53,374) | 1,500 | (116,382) |
EARNINGS BEFORE INCOME TAXES | 544,890 | (323,007) | 20,568 | 24,679 | 29,050 | 160,503 | (115) | 196,692 | (298,606) | 354,654 |
Operational Profit | (191,680) | 2,549 | (6,263) | (14,646) | (7,666) | (49,135) | (882) | 2,023 | - | (265,700) |
Deferred income tax and social contribution | 36,552 | 106,136 | (716) | 5,768 | (2,211) | - | - | 13,773 | - | 159,302 |
NET INCOME | 389,762 | (214,322) | 13,589 | 15,801 | 19,173 | 111,368 | (997) | 212,488 | (298,606) | 248,256 |
EBITDA | 581,649 | (295,484) | 26,941 | 27,461 | 50,765 | 167,248 | (2,362) | 209,050 | (298,487) | 466,781 |
¹ Wind Farms, Copel Renováveis and Copel Participações |
* Amounts subject to rounding.
55
R$'000 | ||||||||||
Income Statement 1H14 | GeT | DIS | TEL | COM | ELE | UEGA | Other ¹ | HOL | Eliminations | Consolidated |
NET OPERATING INCOME | 1,653,291 | 3,257,428 | 97,542 | 849,364 | 123,114 | 1,043,144 | - | - | (854,637) | 6,169,246 |
Electricity sales to final customers | 231,240 | 1,612,974 | - | - | - | - | - | - | (1,073) | 1,843,141 |
Electricity sales to distributors | 1,197,988 | 67,438 | - | - | 123,114 | 1,038,172 | - | - | (145,890) | 2,280,822 |
Use of the main distribution and transmission grid (TUSD/ TUST) | 87,245 | 1,011,167 | - | - | - | - | - | - | (37,104) | 1,061,308 |
Construction revenue | 116,939 | 484,892 | - | 24,728 | - | - | - | - | - | 626,559 |
Telecommunications | - | - | 94,436 | - | - | - | - | - | (15,144) | 79,292 |
Distribution of piped gas | - | - | - | 822,682 | - | - | - | - | (637,217) | 185,465 |
Other operating revenues | 19,879 | 80,957 | 3,106 | 1,954 | - | 4,972 | - | - | (18,209) | 92,659 |
OPERATING COSTS AND EXPENSES | (747,077) | (3,682,882) | (57,306) | (777,528) | (32,724) | (726,466) | (5,578) | (61,841) | 854,754 | (5,236,648) |
Energy purchased for resale | (49,672) | (2,266,030) | - | - | (4,742) | - | - | - | 145,887 | (2,174,557) |
Charges of the main distribution and transmission grid | (105,698) | (177,838) | - | - | (3,886) | (7,375) | - | - | 36,824 | (257,973) |
Personnel and management | (97,244) | (264,040) | (21,650) | (12,927) | (1,368) | (709) | (3,759) | (46,741) | - | (448,438) |
Private pension and health plans | (25,052) | (60,494) | (3,916) | (963) | - | (11) | (353) | (5,830) | - | (96,619) |
Materials | (7,957) | (26,940) | (583) | (601) | (74) | (63) | (2) | (164) | - | (36,384) |
Raw material and supplies - energy production | (9,370) | - | - | - | - | (677,934) | - | - | 637,194 | (50,110) |
Natural gas and supplies for gas business | - | - | - | (701,306) | - | - | - | - | - | (701,306) |
Third-party services | (54,577) | (133,298) | (9,571) | (9,099) | (4,316) | (21,296) | (704) | (2,476) | 34,833 | (200,504) |
Depreciation and amortization | (145,918) | (109,252) | (13,912) | (8,077) | (13,412) | (17,213) | (1) | (377) | - | (308,162) |
Provisions and reversals | (56,933) | (88,744) | (1,732) | 123 | - | - | - | (1,716) | - | (149,002) |
Construction cost | (116,943) | (484,892) | - | (24,728) | - | - | - | - | - | (626,563) |
Other operating costs and expenses | (77,713) | (71,354) | (5,942) | (19,950) | (4,926) | (1,865) | (759) | (4,537) | 16 | (187,030) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 174,348 | - | - | - | - | - | - | 772,469 | (862,235) | 84,582 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 1,080,562 | (425,454) | 40,236 | 71,836 | 90,390 | 316,678 | (5,578) | 710,628 | (862,118) | 1,017,180 |
FINANCIAL RESULTS | 71,860 | 83,155 | 1,987 | 1,904 | (41,206) | 4,450 | 5,279 | 25,720 | (119) | 153,030 |
Income tax and social contribution on profit | 90,796 | 166,767 | 2,168 | 3,722 | 1,982 | 9,415 | 5,386 | 104,946 | (1,726) | 383,456 |
Deferred income tax and social contribution on profit | (18,936) | (83,612) | (181) | (1,818) | (43,188) | (4,965) | (107) | (79,226) | 1,607 | (230,426) |
EARNINGS BEFORE INCOME TAXES | 1,152,422 | (342,299) | 42,223 | 73,740 | 49,184 | 321,128 | (299) | 736,348 | (862,237) | 1,170,210 |
Operational Profit | (408,127) | - | (14,400) | (31,828) | (17,249) | (76,285) | (882) | - | - | (548,771) |
Deferred income tax and social contribution | 77,022 | 113,402 | 72 | 6,131 | 533 | - | - | 12,707 | - | 209,867 |
NET INCOME | 821,317 | (228,897) | 27,895 | 48,043 | 32,468 | 244,843 | (1,181) | 749,055 | (862,237) | 831,306 |
EBITDA | 1,226,480 | (316,202) | 54,148 | 79,913 | 103,802 | 333,891 | (5,577) | 711,005 | (862,118) | 1,325,342 |
¹ Wind Farms, Copel Renováveis and Copel Participações |
* Amounts subject to rounding.
56
R$'000 | |||||||||
Income Statement 2Q13 | GeT | DIS | TEL | COM | ELE | UEGA | HOL | Eliminations | Consolidated |
NET OPERATING INCOME | 555,551 | 1,396,890 | 46,340 | 114,185 | 54,123 | 42,712 | - | (108,669) | 2,101,132 |
Electricity sales to final customers | 122,030 | 664,226 | - | - | - | - | - | (677) | 785,579 |
Electricity sales to distributors | 343,074 | 24,149 | - | - | 54,123 | - | - | (76,421) | 344,925 |
Use of the main distribution and transmission grid (TUSD/ TUST) | 37,486 | 444,158 | - | - | - | - | - | (17,241) | 464,403 |
Construction revenue | 38,964 | 226,489 | - | 13,041 | - | - | - | - | 278,494 |
Telecommunications | - | - | 44,630 | - | - | - | - | (11,040) | 33,590 |
Distribution of piped gas | - | - | - | 96,407 | - | - | - | - | 96,407 |
Other operating revenues | 13,997 | 37,868 | 1,710 | 4,737 | - | 42,712 | - | (3,290) | 97,734 |
OPERATING COSTS AND EXPENSES | (386,194) | (1,349,861) | (29,973) | (106,885) | (13,947) | (19,072) | (22,900) | 108,670 | (1,820,162) |
Energy purchased for resale | (33,168) | (717,614) | - | - | 71 | - | - | 76,233 | (674,478) |
Charges of the main distribution and transmission grid | (48,893) | 10,910 | - | - | (2,029) | (3,235) | - | 16,149 | (27,098) |
Personnel and management | (64,890) | (157,429) | (13,638) | (5,494) | (696) | (305) | (3,021) | - | (245,473) |
Private pension and health plans | (12,347) | (28,988) | (1,606) | (387) | - | - | (236) | - | (43,564) |
Materials | (3,219) | (13,247) | (381) | (568) | (74) | (27) | (1) | - | (17,517) |
Raw material and supplies - energy production | (9,341) | - | - | - | - | (879) | - | - | (10,220) |
Natural gas and supplies for gas business | - | - | - | (78,160) | - | - | - | - | (78,160) |
Third-party services | (24,917) | (78,092) | (4,222) | (4,472) | (2,116) | (7,262) | (1,993) | 15,385 | (107,689) |
Depreciation and amortization | (69,924) | (49,950) | (6,852) | (3,841) | (6,503) | (8,314) | (187) | - | (145,571) |
Provisions and reversals | (39,109) | (63,560) | (1,259) | (135) | - | - | (8,520) | - | (112,583) |
Construction cost | (29,748) | (226,489) | - | (13,041) | - | - | - | - | (269,278) |
Other operating costs and expenses | (50,638) | (25,402) | (2,015) | (787) | (2,600) | 950 | (8,942) | 903 | (88,531) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 16,401 | - | - | - | - | - | 254,712 | (258,751) | 12,362 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 185,758 | 47,029 | 16,367 | 7,300 | 40,176 | 23,640 | 231,812 | (258,750) | 293,332 |
FINANCIAL RESULTS | 28,674 | 56,292 | 1,029 | 906 | (20,202) | 1,965 | 6,396 | (3) | 75,057 |
Income tax and social contribution on profit | 38,216 | 108,532 | 1,411 | 1,104 | 191 | 2,091 | 26,368 | (22,991) | 154,922 |
Deferred income tax and social contribution on profit | (9,542) | (52,240) | (382) | (198) | (20,393) | (126) | (19,972) | 22,988 | (79,865) |
EARNINGS BEFORE INCOME TAXES | 214,432 | 103,321 | 17,396 | 8,206 | 19,974 | 25,605 | 238,208 | (258,753) | 368,389 |
Operational Profit | (113,107) | (45,338) | (6,082) | (3,219) | (5,133) | (3,194) | - | - | (176,073) |
Deferred income tax and social contribution | 47,901 | 10,186 | 192 | 298 | (1,659) | - | 2,381 | - | 59,299 |
NET INCOME | 149,226 | 68,169 | 11,506 | 5,285 | 13,182 | 22,411 | 240,589 | (258,753) | 251,615 |
EBITDA | 255,682 | 96,979 | 23,219 | 11,141 | 46,679 | 31,954 | 231,999 | (258,750) | 438,903 |
¹ Wind Farms |
* Amounts subject to rounding.
57
R$'000 | |||||||||
Income Statement 1H13 | GeT | DIS | TEL | COM | ELE | UEGA | HOL | Eliminations | Consolidated |
NET OPERATING INCOME | 1,423,882 | 2,796,427 | 91,559 | 208,126 | 104,101 | 76,126 | - | (218,679) | 4,481,542 |
Electricity sales to final customers | 225,119 | 1,332,993 | - | - | - | - | - | (1,338) | 1,556,774 |
Electricity sales to distributors | 1,069,800 | 48,602 | - | - | 104,101 | - | - | (152,811) | 1,069,692 |
Use of the main distribution and transmission grid (TUSD/ TUST) | 72,973 | 940,514 | - | - | - | - | - | (36,084) | 977,403 |
Construction revenue | 34,449 | 402,571 | - | 22,665 | - | - | - | - | 459,685 |
Telecommunications | - | - | 88,167 | - | - | - | - | (21,875) | 66,292 |
Distribution of piped gas | - | - | - | 175,628 | - | - | - | - | 175,628 |
Other operating revenues | 21,541 | 71,747 | 3,392 | 9,833 | - | 76,126 | - | (6,571) | 176,068 |
OPERATING COSTS AND EXPENSES | (689,416) | (2,900,866) | (58,082) | (192,714) | (40,210) | (34,201) | (5,255) | 218,631 | (3,702,113) |
Energy purchased for resale | (63,073) | (1,595,354) | - | - | (10,563) | - | - | 152,810 | (1,516,180) |
Charges of the main distribution and transmission grid | (99,753) | (103,400) | - | - | (5,209) | (6,438) | - | 35,625 | (179,175) |
Personnel and management | (120,475) | (323,603) | (25,256) | (10,575) | (1,321) | (585) | (5,157) | - | (486,972) |
Private pension and health plans | (23,043) | (57,981) | (3,538) | (785) | - | - | (351) | - | (85,698) |
Materials | (6,315) | (27,260) | (761) | (887) | (124) | (49) | (1) | - | (35,397) |
Raw material and supplies - energy production | (12,620) | - | - | - | - | (1,861) | - | - | (14,481) |
Natural gas and supplies for gas business | - | - | - | (140,471) | - | - | - | - | (140,471) |
Third-party services | (45,800) | (150,248) | (8,451) | (8,243) | (4,933) | (9,398) | (2,579) | 30,576 | (199,076) |
Depreciation and amortization | (140,717) | (100,028) | (14,151) | (7,334) | (13,177) | (16,628) | (377) | - | (292,412) |
Provisions and reversals | (52,265) | (92,859) | (1,570) | 107 | - | - | 14,468 | - | (132,119) |
Construction cost | (38,840) | (402,571) | - | (22,665) | - | - | - | - | (464,076) |
Other operating costs and expenses | (86,515) | (47,562) | (4,355) | (1,861) | (4,883) | 758 | (11,258) | (380) | (156,056) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 27,023 | - | - | - | - | - | 631,873 | (626,926) | 31,970 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 761,489 | (104,439) | 33,477 | 15,412 | 63,891 | 41,925 | 626,618 | (626,974) | 811,399 |
FINANCIAL RESULTS | 62,262 | 107,237 | 1,514 | 1,892 | (39,916) | 4,959 | 10,961 | 47 | 148,956 |
Income tax and social contribution on profit | 80,889 | 205,605 | 2,221 | 2,163 | 484 | 5,107 | 48,350 | (43,864) | 300,955 |
Deferred income tax and social contribution on profit | (18,627) | (98,368) | (707) | (271) | (40,400) | (148) | (37,389) | 43,911 | (151,999) |
EARNINGS BEFORE INCOME TAXES | 823,751 | 2,798 | 34,991 | 17,304 | 23,975 | 46,884 | 637,579 | (626,927) | 960,355 |
Operational Profit | (361,309) | (45,338) | (11,949) | (6,744) | (5,133) | (8,267) | - | - | (438,740) |
Deferred income tax and social contribution | 93,330 | 43,022 | 93 | 324 | (2,995) | - | (5,118) | - | 128,656 |
NET INCOME | 555,772 | 482 | 23,135 | 10,884 | 15,847 | 38,617 | 632,461 | (626,927) | 650,271 |
EBITDA | 902,206 | (4,411) | 47,628 | 22,746 | 77,068 | 58,553 | 626,995 | (626,974) | 1,103,811 |
¹ Wind Farms |
58
COMPANHIA PARANAENSE DE ENERGIA – COPEL | ||
By: | /S/ Lindolfo Zimmer | |
Lindolfo Zimmer 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.