SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of May, 2018
Commission File Number 1-14668
COMPANHIA PARANAENSE DE ENERGIA
(Exact name of registrant as specified in its charter)
Energy Company of Paraná
(Translation of Registrant's name into English)
Rua Coronel Dulcídio, 800
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 3222-2027
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F _______
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____
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1Q18 Results
Copel records EBITDA of R$767.8million in the first quarter
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| | | | |
| 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var.% (1/3) |
|
Net Operating Revenues (R$ million) | 3,348.7 | 3,910.7 | 3,297.0 | 1.6 |
Operating Costs and Expenses (R$ million) | 2,786.6 | 3,618.1 | 2,507.7 | 11.1 |
Operating Income (R$ million) | 520.9 | 146.9 | 667.0 | (21.9) |
Net Income (R$ million) | 339.6 | 160.2 | 417.3 | (18.6) |
Earnings per share (R$)¹ | 1.21 | 0.37 | 1.50 | (19.0) |
EBITDA (R$ million) | 767.8 | 516.0 | 1,006.1 | (23.7) |
Return on Shareholders' Equity (annualized)² | 9.0% | 4.3% | 0.1 | (22.0) |
Grid Market (GWh) | 7,515 | 7,377 | 7,484 | 0.4 |
Capex (R$ million)³ | 632.5 | 742.2 | 570.3 | 10.9 |
EBITDA Margin | 22.9% | 13.2% | 30.5% | (24.9) |
Operating Margin | 15.6% | 3.8% | 20.2% | (23.1) |
Net Margin | 10.1% | 4.1% | 12.7% | (19.9) |
¹ Consider the Net Income attributed to the shareholders of the parent company. |
² Consider the initial shareholders' equity for the year. |
³ Includes contributions and advances for future investments and capital increases. |
Values subject to rounding adjustments. |
| | | | | |
Average Rates (R$/MWh) | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Mar-17 |
Power Purchase Average Rate - Copel Dis ¹ | 160.75 | 161.18 | 184.88 | 152.14 | 154.30 |
Retail Average Rate - Copel Dis² | 402.65 | 403.17 | 404.99 | 379.77 | 384.19 |
Sales to Distributors Average Rate - Copel GeT³ | 212.22 | 211.76 | 211.03 | 208.36 | 205.10 |
|
Indicators | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Mar-17 |
Equity (R$ Thousand) | 15,833,907 | 15,510,503 | 15,868,242 | 15,492,895 | 15,567,737 |
Net debt (R$ Thousand) | 8,401,759 | 8,495,080 | 7,741,549 | 7,542,661 | 7,446,250 |
Book Value per Share (R$) | 57.86 | 56.68 | 57.99 | 56.61 | 56.89 |
Net debt/ Shareholders' Net Equity4 | 65.6% | 63.4% | 60.0% | 61.1% | 57.3% |
Current Liquidity | 1.0 | 0.9 | 0.8 | 0.8 | 0.8 |
¹ Considers PIS/COFINS. |
² Does not consider tariff flags. ICMS net. |
³ Considers PIS/COFINS. ICMS net. |
4Considers gross debt without endorsements and guarantees. |
| | |
CPLE3 | R$23.03 | ELP | US$ 7.86 | Market value | R$6.7 bi |
CPLE6 | R$26.08 | XCOP | € 6.85 | * Quotes 03.31.2018 |
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Earnings Release 1Q18
LIST OF CONTENTS
1. Main Events in the Period | 3 |
2. Financial Performance | 6 |
2.1 Operating Revenues | 6 |
2.2 Operating Costs and Expenses | 7 |
2.3 Equity in the Earnings of Subsidiaries | 9 |
2.4 EBITDA | 10 |
2.5 Financial Result | 10 |
2.6 Consolidated Net Income | 11 |
2.7 Consolidated Income Statement | 12 |
3. Main Account and Changes Balance Sheet | 13 |
3.1 Main Accounts | 13 |
3.2 Balance Sheet – Assets | 15 |
3.3 Debt | 16 |
3.4 Balance Sheet – Liabilities | 19 |
4. Performance of the Main Companies | 20 |
4.1 Copel Geração e Transmissão | 20 |
4.2 Copel Distribuição | 21 |
4.3 Copel Telecomunicações | 23 |
4.5 Accounting Information | 25 |
5. Investment Program | 26 |
6. Power Market and Tariffs | 26 |
6.1 Captive Market – Copel Distribuição | 26 |
6.2 Grid Market (TUSD) | 27 |
6.3 Electricity Sales | 27 |
6.4 Total Energy Sold | 28 |
6.5 Energy Flow | 29 |
6.6 Tariffs | 31 |
7. Capital Market | 33 |
7.1 Capital Stock | 33 |
7.2 Stock Performance | 34 |
7.3 Dividends and Interest on Own Capital | 35 |
8. Operating Performance | 36 |
8.1 Power Generation | 36 |
8.2 Transmission | 43 |
8.3 Distribution | 44 |
8.4 Telecommunications | 46 |
8.5 Equity Interests | 47 |
8.6 New Projects | 47 |
9. Other Information | 49 |
9.1 Human Resources | 49 |
9.2 Main Operational Indicators | 50 |
9.3 Conference Call 4Q17 Results | 51 |
Exhibit I – Consolidated Cash Flow Statement | 52 |
Exhibit II – Financial Statements – Wholly Owned Subsidiaries | 53 |
Exhibit III – Financial Statements by Company | 56 |
* Amounts subject to rounding.
2
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Earnings Release 1Q18
1. Main Events in the Period
COPEL reported an EBITDA of R$767.8 million in 1Q18, a 23.7% increase as compared to R$1,006.1 million verified in 1Q17. This result was mainly impacted by to (i) the reduction of 32.6% in use of main distribution and transmission grid revenue, mainly due to the recognition of the adjustment of the definitive report of the Existing System Basic Network (RBSE) assets in 2017 of R$183.0 million, and (ii) the provision of R$91.2 million for compensation of 585 employees who joined the Encouraged Retirement Program - PDI (against R$7.2 million in 1Q17).
Copel's adjusted EBITDA in 1Q18 was of R$863.1 million, a 0.3% higher when compared to the adjusted EBITDA in 1Q17 (R$860.3 million) and reflects the lower energy allocation in 1Q18, due to Copel GeT's energy allocation strategy. More details initem 2.
Encouraged Retirement Program - PDI
On March 31, 2018, the Encouraged Retirement Program was concluded, which was in force since October 2013. All employees who work at least 20 years of Copel and are older the 55-year-old were eligible to participate in the Program. The financial compensation related to the termination of the employment agreement and the early settlement of possible differences of labor charges that, together, correspond to 20 salaries.
In 1Q18, 585 employees joined the PDI, with the prospect of leaving the Company until December 2018, resulting in accounting of R$91.2 million in indemnification provision, with a prospect of a cost reduction with personnel of R$161.7 million from 2019.
Provisions for Legal Claims
The Company recorded R$116.0 million in provisions for legal claims in 1Q18, of which R$83.5 million refer to labor and employee benefits, R$26.8 million to PECLD, and R$5.7 millions on other subjects. The balance submitted, R$24.2 million are considered non-recurring and are related to a collective labor action.
Recognition of Tax Credit - Pasep
On February 14, 2018 the Brazilian Federal Revenue Office recognized tax credit for the restated amount of R$80.2 in favor of the Company regarding the discussion of tax levy on Pasep from July 1988 to July 1995, in connection with the effects of Federal Senate Resolution No. 49, of October 9, 1995, which suspended the effects of Decree-Laws 2,445/1988 and 2,449/1988, deemed to be unconstitutional by the Federal Supreme Court. Of the total recognized, R$55.1 million was recorded in financial income and R$25.1 million in other operating revenues.
* Amounts subject to rounding.
3
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Earnings Release 1Q18
Postponement of the ASM
Due to the restatement of the Financial Statements for the fiscal year ended on December 31, 2017, held on May 14, 2018, the 63rd Annual Shareholders’ Meeting - ASM, previously scheduled for May 15, 2018, was postponed to June 15, 2018 at 9:30 am.
The resubmission of the 2017 Financial Statements was due to the conclusion of the work related to the evaluation of the nature, classification and valuation of the investment maintained by UEG Araucária in the Multimarket Investment Fund, according to Market Notices 26/17 and 29/17, disclosed by the Company in November 14 and 24, 2017, respectively, and Material Facts Nos. 03/18, 04/18 and 07/18, disclosed by the Company on March 23, 2018, April 25, 2018 and May 14, 2018, respectively.
Due to the postponement of the ASM, in accordance with the Board of Director's proposal for the allocation of net profit registered in 2017, will be entitled to the dividend portion the shareholders who hold shares by the Company on June 15, 2018.
Colíder HPP
On April 12, 2018, the third and last Kaplan rotor of the power plant was completed. In the powerhouse, the final stage of assembly of the three groups of generators and turbines is moving forward in a fast pace, while the transmission line which will connect Colíder HPP to Cláudia Substation in the 500-kV voltage is in the final phase of installation, with the launch of cables under progress.
Colíder Power Plant’s powerhouse will have three groups of generators with a total installed power of 300 megawatts. Unit 1 will be the first one ready, scheduled for June 2018, while the third and final generating unit is scheduled to start operating in November 2018.
On April 6, 2018, the Federal Court of the 1st Region fully granted the advance notice of the appeal filed by Copel GeT against the request of exemption from any liens, charges or restrictions due to the displacement of the schedule of implementation of the power plant.
Copel GeT has been meeting its electric power supply agreements as follows:
- from January 2015 to May 2016: with leftovers of uncontracted electric power in its other power plants;
- from June 2016 to December 2018: partial reduction in June 2016 through a Bilateral Agreement and from July 2016 to December 2018 with reduction of all Agreements of Electric Energy Trading in Regulated Environment - CCEARs, through a Bilateral Agreement and the participation in the Compensation Mechanism of Leftovers and Deficits - MCSD of New Electric Energy. More details on item 8.1.
* Amounts subject to rounding.
4
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Earnings Release 1Q18
New Governance, Risk and Compliance Officer
Mr. Vicente Loiacono Neto is the new Chief Governance, Risk and Compliance Officer of Copel. Graduated in Law from Faculdade Curitiba, with specialization in Civil Procedural Law from Unisul (SC). Among other roles, he worked as advisor of Legal and Institutional Relations Officer in 2013, advisor of Business Management Officer from 2013 to 2016 and manager of the regulatory area of Copel Distribuição from 2016 to 2017. Since March 2017, he worked as an advisor to Copel’s CEO. He was also a member of the Fiscal Council of Fundação Copel in 2015 and of Copel’s Ethics Advisory Board in 2014.
New Chief Business Management Officer
Ms. Ana Letícia Feller is the new Chief Business Management Officer of Copel. She holds a Bachelor’s degree in Law from Pontifícia Universidade Católica do Paraná - PUCPR, with post-graduate degree in Labor Law, from Unibrasil, Management with emphasis in Strategic People Management, from FAE Centro Universitário, and MBA degree in Leadership with emphasis in Management, from Estação Business School. Ms. Feller has been a Lawyer at Copel, where she also served as Chair of the Permanent Compensation Committee, Chair of the Management Committee, Human Resources Chief Official, Member of the Ethical Guidance Council, and recently position of Assistant to the Chief Business Management.
Expansion of Copel Telecom
On May 5, Copel Telecom announced the expansion of the residential network of fiber optic internet to more 16 cities, all in the Northwest of the state of Paraná. With the expansion of services, the company moves from 64 to 80 cities served with residential internet, increasing its area of operation with the Copel Fibra product by 20%.
Although large companies in the region already have Copel Telecom’s connectivity solutions, the new network makes it possible to offer extra-broadband internet for residential and small and medium-sized clients with transmission speeds of up to 200 Mbps. Copel has launched 360 km of fiber optic cables for business expansion in the Northwestern of the state of Paraná.
Issue of R$600,0 million in Promissory Notes – Copel GeT
On May 11, 2018, Copel GeT carried out the fourth issuance of Promissory Notes, for public distribution according to CVM Instruction No. 566/2015, Law No. 6,385/1976, CVM Instruction No. 476/2009 and other legal and regulatory applicable resolutions. Were issued 100 Promissory Notes, with par value of R$6.0 million, in the total amount of R$600.0 million and maturity at November 11, 2018. The Promissory Notes will earn interest corresponding to the accumulated variation of 114.5% of the daily average rates of the Interbank Deposits – DI and the amounts raised will be used in refinancing the debts and reinforcement of working capital of Copel GeT.
* Amounts subject to rounding.
5
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Earnings Release 1Q18
2. Financial Performance
The following analyzes refer to the first quarter of 2018 compared to the same period of 2017.
2.1 Operating Revenues
In 1Q18, net operating revenue totaled R$3,348.7 million, a 1.6% growth over the R$3,297.0 million in 1Q17, resulting from (a) a 16.3% growth in “electricity sales to final customers”, mainly due to the tariff adjustment of Copel Distribuição, in force as of June 24, 2017, which adjusted the electric power tariff (TE) by 10.28%, and due to the sale of 480 GWh to free clients of Copel Comercialização; and (b) a positive result of R$203.5 million in result of sectorial financial assets and liabilities (over a negative result of R$148.0 million in 1Q17), as a result of CCEE's rebalancing of the New Energy MCSD, covering the period from June 2017 to October 2017. This result was partially offset by (a) an 32.6% decrease (or R$370.1 million) in the “Use of the main distribution and transmission grid” line, resulting from (i) the recognition of R$183.0 in 1Q17, due to the remeasurement of transmission assets concerning the RBSE, due to the homologation by Aneel, of the results of the audit of the appraisal report of the assets related to the concession agreement Nº 060/2001; and the elimination of the balance from the revenue generated by Group companies (Copel GeT and Copel Distribuição) related to RAP portion related to RBSE, which was recognized in GeT’s revenue throughout 2016 and early 2017; and (b) a 14.7% decrease in “Electricity sales to distributors”, due to the lower volume of electric power sold in the short-term market, due to the allocation strategy of Copel GeT’s electric power.
The following changes are also noteworthy:
(i) 23.8% growth in the “revenue from telecommunications” due to the expansion of the service to new customers;
(ii) a 3.8% decrease in “distribution of piped gas revenue”, due to the reduction in consumption of natural gas; and
(iii) a 7.7% reduction in “other operating revenue”, mainly due to lower revenue with fines related to the migration of captive customers to the free market.
* Amounts subject to rounding.
6
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Earnings Release 1Q18
| | | | |
| | | | R$ '000 |
Income Statement | 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var.% (1/3) |
|
Electricity sales to final customers | 1,318,858 | 1,258,915 | 1,133,537 | 16.3 |
Electricity sales to distributors | 617,568 | 879,843 | 724,199 | (14.7) |
Use of the main distribution and transmission grid | 765,409 | 855,319 | 1,135,544 | (32.6) |
Construction revenue | 198,598 | 276,191 | 219,406 | (9.5) |
Fair value of assets from the indemnity for the concession | 9,568 | 48,655 | 6,329 | 51.2 |
Revenues from telecommunications | 86,564 | 81,897 | 69,912 | 23.8 |
Distribution of piped gas | 113,171 | 94,745 | 117,627 | (3.8) |
Result of sectorial financial assets and liabilities | 203,469 | 381,121 | (147,977) | - |
Other operating revenues | 35,476 | 33,978 | 38,434 | (7.7) |
Net Operating Revenue | 3,348,681 | 3,910,664 | 3,297,011 | 1.6 |
Excluding the effect of the recognition of the indemnification of RBSE-related assets in 1Q17, the Company would have ended 1Q18 with an 7.5% growth in net operating revenue, impacted by higher balance of the sectorial financial assets and liabilities account and the R$89.3 million record in Copel Comercialização’s electricity sales to final customers revenue (R$10.1 million in 1Q17).
2.2 Operating Costs and Expenses
In 1Q18, operating costs and expenses increased 11.1%, totaling R$2,786.6 million. This result is mainly due to the 86.1% increase in “charges of the main distribution and transmission grid”, mainly due to the higher expenses with charges from the use of the system – basic network, due to the adjustment in TUST in June 2017, when the indemnity to RBSE related assets began to include APR and to the readjustment in Itaipu’s tariff of energy transmission.
| | | | |
| | | | R$'000 |
Charges of the main distribution and transmission grid | 1Q18 (1) | 4Q17 (1) | 1Q17 (3) | Var.% (1/3) |
|
System usage charges | 266,770 | 243,821 | 141,237 | 88.9 |
Itaipu transportation charges | 50,529 | 50,960 | 24,598 | 105.4 |
Charge reserve energy - EER | 17,076 | - | - | - |
System Service Charges - ESS | 17,580 | (33,330) | 20,907 | (15.9) |
(-) PIS / Pasep and Cofins taxes on charges for use of power grid | (37,483) | (31,679) | (17,731) | 111.4 |
TOTAL | 314,472 | 229,772 | 169,011 | 86.1 |
Operating costs and expenses were also impacted by the 10.6% increase in costs with “eletricity purchased for resale”, mainly due to the purchase of 681 GWh in 1Q18 by part of Copel Comercialização (over 150 GWh in 1Q17).
* Amounts subject to rounding.
7
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Earnings Release 1Q18
| | | | |
R$'000 |
Electricity Purchased for Resale | 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var.% (1/3) |
|
CCEAR (Auction) | 628,374 | 680,750 | 720,883 | (12.8) |
Itaipu Binacional | 271,447 | 278,214 | 264,595 | 2.6 |
CCEE | 190,709 | 537,740 | 125,846 | 51.5 |
Micro and mini generators and customer repurchase | 1,428 | 1,478 | - | - |
Proinfa | 56,942 | 54,389 | 54,338 | 4.8 |
Bilateral | 156,805 | 348,770 | 9,148 | - |
(-) PIS/Pasep and Cofins | (115,269) | (109,065) | (98,301) | 17.3 |
TOTAL | 1,190,436 | 1,792,276 | 1,076,509 | 10.6 |
The following changes are also noteworthy:
(i) an increase of 12.0% in PMSO, except for estimated losses, provisions and reversals, resulting from (a) the 27.5% growth in personnel and management costs, mainly due to the provision of R$91.2 million with 585 employees joining the PDI, and (b) a 10.2% growth in costs with third-parties services, due to consulting and auditing, communication, data processing and transmission, and maintenance of the electricity system, partially offset by a 21.2% decrease in other operating costs and expenses, mainly due to the record of R$25.1 million in the account of the tax credit for Pasep (more details in our Quarterly Financial Information - Note 34.1)
| | | | |
R$million |
Manageable Costs | 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var. % (1/3) |
|
Personnel and management | 390,310 | 423,350 | 306,098 | 27.5 |
Private pension and healthcare plans | 61,003 | 62,085 | 59,138 | 3.2 |
Material | 19,011 | 24,290 | 19,371 | (1.9) |
Third-party services | 133,203 | 136,023 | 120,910 | 10.2 |
Other costs and expenses operating | 88,828 | 65,399 | 112,778 | (21.2) |
TOTAL | 692,355 | 711,147 | 618,295 | 12.0 |
Excluding the effect of the provision for PDI related compensation (R$91.2 million in 1Q18 and R$7.2 million in 1Q17), the costs with personnel remained the same over 1Q17 totaled R$299.2 million in the year. Considering the accumulated inflation of 2,68% in the last 12 months, there was an real reduction of 2.5%.
| | | | |
R$million |
Personnel and Management | 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var. % (1/3) |
|
Personnel and management | 390,310 | 423,350 | 306,098 | 27.5 |
(-) Provision for indemnification for voluntary dismissal¹ | (91,152) | (20,423) | (7,192) | 3.2 |
TOTAL | 299,158 | 402,927 | 298,906 | 0.1 |
(ii) an 17.6% increase in “provisions and reversals” (R$116.0 million in 1Q18 versus R$98.7 million in 1Q17) mainly due to the accounting R$83.5 million in labor provisions and R$26.8 million in allowance for doubtful accounts (PECLD);
(iii) an 71.8% increase in “materials and supplies for power eletricity” due to the higher generation of electric power by TPP Figueira; and
* Amounts subject to rounding.
8
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Earnings Release 1Q18
(iv) an 6.0% decrease in “natural gas and supplies for the gas business”, resulting from the decrease in the consumption of natural gas.
| | | | |
| | | | R$ '000 |
Operating Costs and Expenses | 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var.% (1/3) |
|
Electricity purchased for resale | 1,190,436 | 1,792,276 | 1,076,509 | 10.6 |
Charge of the main distribution and transmission grid | 314,472 | 229,772 | 169,011 | 86.1 |
Personnel and management | 390,310 | 423,350 | 306,098 | 27.5 |
Pension and healthcare plans | 61,003 | 62,085 | 59,138 | 3.2 |
Materials and supplies | 19,011 | 24,290 | 19,371 | (1.9) |
Materials and supplies for power electricity | 8,693 | 74,970 | 5,061 | 71.8 |
Natural gas and supplies for the gas business | 77,421 | 61,628 | 82,339 | (6.0) |
Third-party services | 133,203 | 136,023 | 120,910 | 10.2 |
Depreciation and amortization | 177,210 | 182,208 | 183,078 | (3.2) |
Provisions and reversals | 116,041 | 268,352 | 98,699 | 17.6 |
Construction cost | 209,971 | 297,771 | 274,729 | (23.6) |
Other cost and expenses | 88,828 | 65,399 | 112,778 | (21.2) |
TOTAL | 2,786,599 | 3,618,124 | 2,507,721 | 11.1 |
2.3 Equity in the Earnings of Subsidiaries
Equity in the earnings of investees reflects gains and losses from investments in Copel’s investees and is presented in the table below.
| | | | |
R$'000 |
Company | 1Q18 (1) | 4Q17 (2) | 1Q17 (3) | Var. % (1/3) |
|
Joint Ventures | 23,268 | 44,238 | 29,468 | (21.0) |
Voltalia São Miguel do Gostoso I Participações S.A. | (3,594) | (1,278) | 360 | - |
Paraná Gás Exploração e Produção S.A. | (3) | (7) | (19) | (84.2) |
Costa Oeste Transmissora de Energia S.A. | 1,035 | 618 | 1,081 | (4.3) |
Marumbi Transmissora de Energia S.A. | 1,949 | 2,169 | 2,686 | (27.4) |
Transmissora Sul Brasileira de Energia S.A. | 412 | (6,783) | 688 | (40.1) |
Caiuá Transmissora de Energia S.A. | 802 | 827 | 1,507 | (46.8) |
Integração Maranhense Transmissora de Energia S.A. | 1,187 | 721 | 3,200 | (62.9) |
Matrinchã Transmissora de Energia (TP NORTE) S.A. | 9,028 | 26,862 | 5,922 | 52.4 |
Guaraciaba Transmissora de Energia (TP SUL) S.A. | 3,307 | 6,752 | 8,320 | (60.3) |
Paranaíba Transmissora de Energia S.A. | 2,204 | 5,064 | 3,977 | (44.6) |
Mata de Santa Genebra Transmissão S.A. | 9,366 | 4,484 | 3,065 | 205.6 |
Cantareira Transmissora de Energia S.A. | (2,425) | 4,809 | (1,319) | 83.9 |
Associates | 5,250 | (2,992) | 4,245 | 23.7 |
Dona Francisca Energética S.A. | 2,469 | 2,411 | 2,168 | 13.9 |
Foz do Chopim Energética Ltda. | 2,794 | 378 | 2,683 | 4.1 |
Dominó Holdings S.A. ¹ | (7) | 2 | (629) | (98.9) |
Others² | (6) | (5,783) | 23 | - |
TOTAL | 28,518 | 41,246 | 33,713 | (15.4) |
¹ In November, 2017 occurred the transformation of a Limited Liability Company and the change in joint venture investment for Associate investment. |
² Includes Carbocampel S.A., Copel Amec S/C Ltda, Escoelectric Ltda e Dois Saltos Ltda. |
* Amounts subject to rounding.
9
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Earnings Release 1Q18
2.4 EBITDA
In 1Q18, profit before interest, taxes, depreciation and amortization reached R$767.8 million, 23.7% lower than the R$1,006.1 million recorded in 1Q17, mainly due of the 32.6% reduction in use of the main distribution and transmission grid revenue, mainly due to the recognition of the adjustment of the final RBSE asset valuation in 2017 of R$183.0 million, while in 2018 only the asset update was recognized, the provision of R$91.2 million to compensation 585 employees who joined the PDI (against R$7.2 million in 1Q17) and of the registration of R$24.2 million in provisions for labor legal claims, related to a collective action.
Excluding the extraordinary effects, adjusted EBITDA in 1Q18 would be 0.3% higher compared with the same period of the previous year, impacted by the improvement in cost management, partially offset by the lower allocation of electric power in 1Q18, resulting from Copel GeT’s energy allocation strategy.
The following table presents the items considered in the adjusted EBITDA calculation.
| | | |
| | | R$ million |
Adjusted EBITDA | 1Q18 (1) | 1Q17 (2) | Var.% (1/2) |
|
EBITDA | 767.8 | 1,006.1 | (23.7) |
(-)/+ Remeasurement of financial assets RBSE | - | (183.0) | - |
(-)/+ Impairment | 5.0 | 30.0 | - |
+ Provision for PDI | 91.2 | 7.2 | - |
(-)/+ Provisions for litigation | 24.2 | - | - |
(-)/+ Tax Credit - Pasep | (25.1) | - | - |
Adjusted EBITDA | 863.1 | 860.3 | 0.3 |
2.5 Financial Result
In 1Q18, the financial revenue totaled R$205.4 million, an 25.6% increase over the R$163.6 million recorded in 1Q17, mainly due to the tax credit for Pasep (more details in our quarterly financial information - Note 34.1).
The financial expenses totaled R$275.1 million, a 13.9% less than in 1Q17, mainly due to the decrease of the SELIC rate (in 1Q18 the DI average was of 6.73%, over 12.68% in 1Q17). The higher balance of financing and debentures partially offset the decrease in the financial expenses.
* Amounts subject to rounding.
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Earnings Release 1Q18
| | | | |
| | | | R$'000 |
| 1Q18 | 4Q17 | 1Q17 | Var.% |
| (1) | (2) | (3) | (1/3) |
Financial Revenues | 205,395 | 164,248 | 163,587 | 25.6 |
Income and monetary variation on CRC transfer | 43,405 | 48,746 | 32,197 | 34.8 |
Income from investments held for trading | 24,420 | 28,262 | 38,211 | (36.1) |
Late fees on electricity bills | 54,275 | 63,134 | 48,062 | 12.9 |
Income from financial investments available for sale | - | 3,542 | - | - |
Monetary restatement and adjustment to present value of accounts payable related to concession | - | (5,995) | - | - |
Income from sectorial assets and liabilities | 8,947 | (522) | 11,509 | (22.3) |
Exchange variation About Purchase Itaipu Electric Power | 3,562 | (742) | 8,748 | (59.3) |
Tax credit recognition | 55,096 | - | - | - |
Other financial revenues | 15,690 | 27,823 | 24,860 | (36.9) |
Financial Expenses | (275,062) | (351,171) | (319,608) | (13.9) |
Monetary variation, foreign exchange and debt service charges | (212,965) | (227,839) | (272,086) | (21.7) |
Monetary variation and adjustment to present value of accounts payable related to concession | (21,525) | (16,355) | (18,361) | 17.2 |
Exchange variation About Purchase Itaipu Electric Power | (2,064) | (4,568) | - | - |
Pis/ Pasep and Cofins taxes over interest on equity | - | (45,196) | - | - |
Income from sectorial assets and liabilities | (10,763) | (8,127) | - | - |
Interest on R&D and PEE | (6,107) | (6,585) | (10,592) | (42.3) |
Accounts receivable tied to the concession fair value's update | - | - | (5,779) | - |
Estimated losses on impairment of assets | - | (5,372) | - | - |
Other financial expenses | (21,638) | (37,129) | (12,790) | 69.2 |
Financial income (expenses) | (69,667) | (186,923) | (156,021) | (55.3) |
2.6 Consolidated Net Income
In 1Q18, Copel recorded net income of R$339.6 million, 18.6% amount lower than the R$417.3 million registered in the same period of 2017.
* Amounts subject to rounding.
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Earnings Release 1Q18
2.7 Consolidated Income Statement
| | | | |
| | | | R$'000 |
| 1Q18 | 4Q17 | 1Q17 | Var.% |
Income Statement | (1) | (2) | (3) | (1/3) |
OPERATING REVENUES | 3,348,681 | 3,910,664 | 3,297,011 | 1.6 |
Electricity sales to final customers | 1,318,858 | 1,258,915 | 1,133,537 | 16.3 |
Electricity sales to distributors | 617,568 | 879,843 | 724,199 | (14.7) |
Use of the main distribution and transmission grid | 765,409 | 855,319 | 1,135,544 | (32.6) |
Construction revenue | 198,598 | 276,191 | 219,406 | (9.5) |
Fair value of assets from the indemnity for the concession | 9,568 | 48,655 | 6,329 | 51.2 |
Revenues from telecommunications | 86,564 | 81,897 | 69,912 | 23.8 |
Distribution of piped gas | 113,171 | 94,745 | 117,627 | (3.8) |
Result of Sectorial financial assets and liabilities | 203,469 | 381,121 | (147,977) | - |
Other operating revenues | 35,476 | 33,978 | 38,434 | (7.7) |
OPERATING COSTS AND EXPENSES | (2,786,599) | (3,618,124) | (2,507,721) | 11.1 |
Electricity purchased for resale | (1,190,436) | (1,792,276) | (1,076,509) | 10.6 |
Charge of the main distribution and transmission grid | (314,472) | (229,772) | (169,011) | 86.1 |
Personnel and management | (390,310) | (423,350) | (306,098) | 27.5 |
Pension and healthcare plans | (61,003) | (62,085) | (59,138) | 3.2 |
Materials and supplies | (19,011) | (24,290) | (19,371) | (1.9) |
Materials and supplies for power eletricity | (8,693) | (74,970) | (5,061) | 71.8 |
Natural gas and supplies for the gas business | (77,421) | (61,628) | (82,339) | (6.0) |
Third-party services | (133,203) | (136,023) | (120,910) | 10.2 |
Depreciation and amortization | (177,210) | (182,208) | (183,078) | (3.2) |
Provisions and reversals | (116,041) | (268,352) | (98,699) | 17.6 |
Construction cost | (209,971) | (297,771) | (274,729) | (23.6) |
Other cost and expenses | (88,828) | (65,399) | (112,778) | (21.2) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 28,518 | 41,246 | 33,713 | (15.4) |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 590,600 | 333,786 | 823,003 | (28.2) |
FINANCIAL RESULTS | (69,667) | (186,923) | (156,021) | (55.3) |
Financial income | 205,395 | 164,248 | 163,587 | 25.6 |
Financial expenses | (275,062) | (351,171) | (319,608) | (13.9) |
OPERATIONAL EXPENSES/ INCOME | 520,933 | 146,863 | 666,982 | (21.9) |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (181,353) | 13,357 | (249,712) | (27.4) |
Income tax and social contribution on profit | (245,607) | 89,879 | (193,112) | 27.2 |
Deferred income tax and social contribution on profit | 64,254 | (76,522) | (56,600) | - |
NET INCOME (LOSS) | 339,580 | 160,220 | 417,270 | (18.6) |
Attributed to controlling shareholders | 332,278 | 99,930 | 410,342 | (19.0) |
Attributed to non-controlling interest | 7,302 | 60,290 | 6,928 | 5.4 |
EBITDA | 767,810 | 515,994 | 1,006,081 | (23.7) |
* Amounts subject to rounding.
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Earnings Release 1Q18
3. Main Account and Changes Balance Sheet
The main accounts and changes in the Balance Sheet in relation to December 2017 are described below. Additional information can be found in the Notes to our Financial Statement.<0}
3.1 Main Accounts
Cash, Cash Equivalents and Bonds and Securities<0}
On March 31, 2018, the cash and cash equivalents, bonds and securities of Copel’s wholly owned subsidiaries and controlled companies totaled R$1,992.1 million, 58.1% higher than the R$1,259.7 million recorded on December 2017. These funds were invested, mostly in Bank Deposit Certificates (CDBs) and repo transactions. These investments are remunerated between 73% and 100% of the variation rate of the Interbank Deposit Certificate (CDI).
<<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 State of Paraná requested the Company and the Board of Directors approved, on June 16, 2016, subject to the consent of the Department of the Treasury, the Novation of the CRC Adjustment Agreement, which contemplates: (i) from April to December 2016, a total grace period for principal and interest payments; and (ii) from January to December 2017, a grace only the principal amount, but with monthly interest payments. The other clauses would be maintained, including the maintenance of the current correction and interest rates, thus not affecting the overall net present value of said agreement.
The State of Paraná complied with the agreed terms and made the payments of the monthly installments of interest estimated until December 2017. After the grace period, the State of Paraná has been complied with payments under the contracted conditions, leaving 85 monthly installments.
The Company's management and the State of Paraná formalized the Fifth Amendment on October 31, 2017. The current balance of the CRC is R$1,494.7 million.
Sectorial Financial Assets and Liabilities
As of December 31, 2014, Copel Distribuição has recognized sectorial financial assets and/or liabilities in its financial statements as a result of an amendment to the concession agreement, that guarantees that the residual amounts of items of Portion A and other financial components not recovered or returned via tariffs will
* Amounts subject to rounding.
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Earnings Release 1Q18
be included in, or discounted from, the calculation of the indemnification for non-amortized assets at the expiration of the concession. On March 31, 2018, the Company had a net asset of R$251.3 million. More detail in our Quarterly Financial Information (Note 9).
Accounts Receivable Related to the Concession
This line refers to accounts receivable related to the contracts for the concession of electric power generation, transmission, distribution and distribution of natural gas activities. The amounts refer to (a) the concession fee paid as a result of the auction involving the Governador Parigot de Souza Power Plant – HPP GPS, won by Copel GeT on November 25, 2015 (R$610.8 million), (b) its investments in infrastructure and financial remuneration that have not been or will not be recovered via tariffs and/or APR until the expiration of the concession (R$2,254.1 million), (c) the amounts receivable from energy transmission assets of the Existing System Basic Network – RBSE and connection facilities and other transmission facilities - RPC, as a result of the recognition of the effects of MME Ordinance No. 120 and the approval, by Aneel, of the result of the inspection of the appraisal report of these assets (R$1,395.5 million) and (d) the gas distribution concession agreement - Compagas (R$308.7 million).
As of March 31, 2018, the balance of the account totaled R$4,569.1 million. More details in our Quarterly Financial Information (NE n ° 10).
Accounts Receivable related to the Concession Compensation
This account refers to the residual value of the generation assets whose concession expired in 2015 (Rio dos Patos HPP, GPS HPP and Mourão I HPP). On March 31, 2018, the amount registered in this account was R$71.7 million. More details in Notes 11 to our Quarterly Financial Information.
Investments, Property, Plant and Equipment and Intangible Assets
"Investments" moved up 1.1% until March 31, 2018, due to equity in the earnings of subsidiaries and capital contributions recorded in the period. “Property, plant and equipment” increased 3.3%, due to the startup of new assets, in accordance with the Company's investment program, net of period depreciation. “Intangible assets” increased by 0.2% due to investments in new assets made in the period.
* Amounts subject to rounding.
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Earnings Release 1Q18
3.2 Balance Sheet – Assets
| | | |
| | | R$'000 |
Assets | Mar-18 | Dec-17 | Var.% |
(1) | (2) | (1/2) |
CURRENT | 6,008,435 | 5,701,834 | 5.4 |
Cash and cash equivalents | 1,697,463 | 1,040,075 | 63.2 |
Bonds and securities | 1,361 | 1,341 | 1.5 |
Collaterals and escrow accounts | 39,839 | 59,372 | (32.9) |
Customers | 2,519,265 | 2,733,240 | (7.8) |
Dividends receivable | 80,455 | 80,815 | (0.4) |
CRC transferred to the State of Paraná | 170,385 | 167,109 | 2.0 |
Sectorial financial assets | 326,961 | 171,609 | 90.5 |
Account receivable related to concession | 148,608 | 149,744 | (0.8) |
Other current receivables | 399,988 | 409,351 | (2.3) |
Inventories | 104,317 | 110,559 | (5.6) |
Income tax and social contribution | 283,942 | 501,685 | (43.4) |
Other current recoverable taxes | 197,234 | 198,232 | (0.5) |
Prepaid expenses | 38,529 | 39,867 | (3.4) |
Related parties | 88 | 38,835 | (99.8) |
NON-CURRENT | 27,709,992 | 27,460,543 | 0.9 |
Long Term Assets | 8,489,430 | 8,607,626 | (1.4) |
Bonds and securities | 217,187 | 218,322 | (0.5) |
Other temporary investments | 20,070 | 18,727 | 7.2 |
Collaterals and escrow accounts | 76,050 | 75,665 | 0.5 |
Customers | 209,532 | 261,082 | (19.7) |
CRC transferred to the State of Paraná | 1,324,352 | 1,349,253 | (1.8) |
Judicial deposits | 576,227 | 582,529 | (1.1) |
Sectoral financial assets | 108,987 | 171,609 | (36.5) |
Account receivable related to concession | 4,420,453 | 4,360,378 | 1.4 |
Accounts receivable related to the concession compensation | 71,656 | 68,859 | 4.1 |
Other non-current receivables | 160,195 | 149,416 | 7.2 |
Income tax and social contribution | 135,115 | 176,480 | (23.4) |
Deferred income tax and social contribution | 951,839 | 915,492 | 4.0 |
Other non-current recoverable taxes | 194,682 | 116,974 | - |
Prepaid expenses | 8,819 | 12,684 | (30.5) |
Related parties | 14,266 | 130,156 | (89.0) |
Investments | 2,597,638 | 2,570,643 | 1.1 |
Property, plant and equipment, net | 10,158,540 | 9,829,450 | 3.3 |
Intangible assets | 6,464,384 | 6,452,824 | 0.2 |
TOTAL | 33,718,427 | 33,162,377 | 1.7 |
* Amounts subject to rounding.
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Earnings Release 1Q18
3.3 Debt
Gross Debt
Copel's total consolidated debt amounted to R$10,393.8 million on March 31, 2018, an increase of 5.7% compared to the R$9,830.5 million recorded in 2017. This increase reflects Copel Holding's 7th issue of debentures (R$600.0 million).
On March 31, 2018, Copel’s gross debt represented 65.6% of consolidated shareholders’ equity, which at the end of the period was R$15,833.9 million, equivalent to R$57.86 per share (book value per share). The breakdown of the balance of loans, financing and debentures is shown in the table below:
| | | | |
| | | | R$'000 |
| | | Total | Composition |
| | | | % |
| Domestic Currency | Eletrobras - COPEL | 31,409 | 0.3 |
| FINEP | 14,896 | 0.1 |
| BNDES | 1,542,411 | 14.8 |
| Banco do Brasil S/A and other | 1,407,389 | 13.5 |
| Debentures and Promissory Notes | 7,306,882 | 70.3 |
| Total | 10,302,987 | 99.1 |
| Foreign Currency | National Treasury | 90,833 | 0.9 |
| Total | 90,833 | 0.9 |
TOTAL | | | 10,393,820 | 100.0 |
Loans, financing and debentures maturities are presented below:
| | | | | | | | R$'000 |
| Short Term | Long Term | Total |
| apr/18 - mar/19 | apr/19 - dec/19 | 2020 | 2021 | 2022 | 2023 | From 2024 |
Domestic Currency | 2,480,742 | 2,997,212 | 1,399,699 | 1,058,204 | 1,007,986 | 205,343 | 1,153,801 | 10,302,987 |
Foreign Currency | 90,833 | - | - | - | - | - | 0 | 90,833 |
TOTAL | 2,571,575 | 2,997,212 | 1,399,699 | 1,058,204 | 1,007,986 | 205,343 | 1,153,801 | 10,393,820 |
Endorsements and Guarantees
At the end of March 31, 2018, the Company had R$1,661.7 million in guarantees and endorsements, as shown below.
* Amounts subject to rounding.
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Earnings Release 1Q18
| | | | | |
| | | | | R$'000 |
Guarantees and Endorsements¹ | Mar-18 | Dec-17 | Mar-17 | Var.% | Var.% |
| (1) | (2) | (3) | (1/2) | (1/3) |
Transmissora Sul Brasileira de Energia S.A. | - | - | 65,769 | - | - |
Caiuá Transmissora de Energia S.A. | 34,206 | 35,039 | 37,464 | (2.4) | (8.7) |
Integração Maranhense Transmissora de Energia S.A. | 55,840 | 57,328 | 61,755 | (2.6) | (9.6) |
Matrinchã Transmissora de Energia (TP NORTE) S.A. | 369,574 | 372,833 | 389,230 | (0.9) | (5.0) |
Guaraciaba Transmissora de Energia (TP SUL) S.A. | 202,911 | 206,502 | 190,064 | (1.7) | 6.8 |
Costa Oeste Transmissora de Energia S.A. | - | - | 15,246 | - | - |
Mata de Santa Genebra Transmissão S.A. | 413,077 | 352,652 | 254,979 | 17.1 | 62.0 |
Paranaíba Transmissora de Energia S.A. | 167,483 | 169,564 | 174,557 | (1.2) | (4.1) |
Marumbi Transmissora de Energia S.A. | - | - | 37,815 | - | - |
Cantareira Transmissora de Energia S.A. | 273,165 | 215,204 | 141,958 | 26.9 | 92.4 |
Voltalia São Miguel do Gostoso I Participações S.A. | 145,417 | 129,018 | 140,962 | 12.7 | 3.2 |
TOTAL | 1,661,673 | 1,538,140 | 1,509,799 | 8.0 | 10.1 |
¹ Adjusted for Copel s stake. |
Copel’s consolidated net debt (loans, financing and debentures less cash and cash equivalents) and the net debt/EBITDA ratio are shown in the following chart:
Net Debt by Subsidiary
The following table shows the gross debt and net debt of the subsidiaries:
| | | | | | |
| | | | | | R$'000 |
| GeT | DIS | Telecom | Holding | Other | Total |
Total debt | 4,922,231 | 1,721,499 | 421,092 | 2,729,961 | 599,037 | 10,393,820 |
Availability | 269,585 | 587,784 | 16,553 | 363,222 | 754,917 | 1,992,061 |
Net debt | 4,652,646 | 1,133,715 | 404,539 | 2,366,739 | (155,880) | 8,401,759 |
* Amounts subject to rounding.
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Earnings Release 1Q18
Accounts Payables related to the Concession
Use of Public Property
It refers to the concession charges for the use of public property incurred since the execution of the project’s concession agreement until the end of the concession.
| | | | | |
R$'000 |
Mauá | Colíder | Baixo Iguaçu | SHP¹ | Elejor | Total |
16,477 | 23,370 | 7,183 | 302 | 513,066 | 560,398 |
¹Relative to SPP Cavernoso, Apucaraninha, Chaminé and Derivação do Rio Jordão. |
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 | Mar-18 | Dec-17 | Mar-17 | Var % | Var % |
(1) | (2) | (3) | (1/2) | (1/3) |
Tax | 134,221 | 138,541 | 151,358 | (3.1) | (11.3) |
Labor suits | 539,816 | 475,631 | 465,057 | 13.5 | 16.1 |
Employees and Benefits | 93,082 | 89,438 | 44,626 | 4.1 | 108.6 |
Civil | 735,750 | 742,554 | 499,859 | (0.9) | 47.2 |
Civil and administrative claims | 515,946 | 527,613 | 304,871 | (2.2) | 69.2 |
Easements | 111,692 | 110,936 | 103,716 | 0.7 | 7.7 |
Condemnations and property | 101,866 | 95,627 | 84,970 | 6.5 | 19.9 |
Customers | 6,246 | 8,378 | 6,302 | (25.4) | (0.9) |
Environmental claims | 2,485 | 1,584 | 887 | 56.9 | 180.2 |
Regulatory | 64,567 | 64,316 | 69,158 | 0.4 | (6.6) |
TOTAL | 1,569,921 | 1,512,064 | 1,230,945 | 3.8 | 27.5 |
The lawsuits classified as possible losses, as estimated by the Company and its controlled companies at the end 1Q18, totaled R$3,181.5 million, 1.8% higher than in December 2017 (R$3,123.5 million), distributed in lawsuits of the following natures: fiscal (R$870.5 million), regulatory (R$792.4 million), civil (R$1,140.6 million), labor (R$357.4 million) and employee benefits (R$20.4 million).
* Amounts subject to rounding.
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Earnings Release 1Q18
3.4 Balance Sheet – Liabilities
| | | |
| | | R$'000 |
Liabilities | Mar-18 | Dec-17 | Var.% |
(1) | (2) | (1/2) |
CURRENT | 5,911,286 | 6,109,914 | (3.3) |
Payroll, social charges and accruals | 387,993 | 313,967 | 23.6 |
Suppliers | 1,389,284 | 1,683,577 | (17.5) |
Income tax and social contribution payable | 134,025 | 86,310 | 55.3 |
Other taxes due | 286,775 | 345,487 | (17.0) |
Loans, financing and debentures | 2,571,575 | 2,416,728 | 6.4 |
Minimum compulsory dividend payable | 287,015 | 288,981 | (0.7) |
Post employment benefits | 53,335 | 53,225 | 0.2 |
Customer charges due | 106,570 | 150,025 | (29.0) |
Research and development and energy efficiency | 284,398 | 282,766 | 0.6 |
Accounts Payable related to concession | 63,410 | 62,624 | 1.3 |
Net sectorial financial liabilities | 92,509 | 192,819 | (52.0) |
Other accounts payable | 137,439 | 121,405 | 13.2 |
Provision for litigation | 116,958 | 112,000 | 4.4 |
NON-CURRENT | 11,973,234 | 11,541,960 | 3.7 |
Suppliers | 40,717 | 43,469 | (6.3) |
Deferred income tax and social contribution | 120,249 | 156,630 | (23.2) |
Other taxes due | 778,354 | 809,576 | (3.9) |
Loans, financing and debentures | 7,822,245 | 7,413,755 | 5.5 |
Post employment benefits | 823,505 | 812,878 | 1.3 |
Research and development and energy efficiency | 267,194 | 249,709 | 7.0 |
Accounts Payable related to concession | 496,988 | 492,330 | 0.9 |
Net sectorial financial liabilities | 92,142 | 90,700 | 1.6 |
Other accounts payable | 78,877 | 72,849 | 8.3 |
Tax, social security, labor and civil provisions | 1,452,963 | 1,400,064 | 3.8 |
EQUITY | 15,833,907 | 15,510,503 | 2.1 |
Attributed to controlling shareholders | 15,523,944 | 15,207,842 | 2.1 |
Share capital | 7,910,000 | 7,910,000 | - |
Equity valuation adjustments | 874,508 | 895,601 | (2.4) |
Legal reserves | 844,398 | 844,398 | - |
Retained earnings | 5,557,843 | 5,557,843 | - |
Accrued earnings | 332,804 | - | - |
Attributable to non-controlling interest | 309,963 | 302,661 | 2.4 |
TOTAL | 33,718,427 | 33,162,377 | 1.7 |
* Amounts subject to rounding.
19
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Earnings Release 1Q18
4. Performance of the Main Companies
4.1 Copel Geração e Transmissão
Copel GeT reported an EBITDA of R$491.4 million, 31.2% lower than the R$713.9 million reported in 1Q17 reflection from a reduction of 53.1% in use of the main transmission grid due to the recognition of R$183.0 million in 1Q17 referring to the remeasurement of the cash flow of transmission assets related to RBSE. This result also was affected (i) by the R$38.5 million for provisions and reversals, mainly due to labor lawsuits (R$23.5 million), (ii) accounting of R$13.0 million concerning the state rate of control and inspection of water resources (established by State Law 18.878/2016, which became due in 2017), and (iii) a 27.6% increase in manageable costs, resulting from the higher balance with a provision for a PDI.
The manageable costs, excluding estimated losses, provisions and reversals, and fees on water use and inspection, grew by 35.6%, mainly due to the higher costs with personnel and management, social security and welfare plans, and third-parties services.
| | | | |
| | | | R$million |
Manageable Costs | 1Q18 | 4Q17 | 1Q17 | Var. % |
(1) | (2) | (3) | (1/3) |
Personnel and management | 101,768 | 107,694 | 68,592 | 48.4 |
Private pension and healthcare plans | 15,122 | 15,685 | 14,213 | 6.4 |
Materials | 3,256 | 3,625 | 3,615 | (9.9) |
Third party services | 26,904 | 30,185 | 26,203 | 2.7 |
Other operating costs and expenses | 14,759 | 5,297 | 6,698 | 120.3 |
TOTAL | 161,809 | 162,486 | 119,321 | 35.6 |
The line of “personnel” grew 48.4%, mainly due to the higher balance of the provision for compensation to PDI, with accounting R$28.3 million in 1Q18 versus R$1.0 million in 1Q17.
| | | | |
| | | | R$million |
Personnel and Management | 1Q18 | 4Q17 | 1Q17 | Var. % |
(1) | (2) | (3) | (1/3) |
Personnel and Management | 101,768 | 107,694 | 68,592 | 48.4 |
(-) Provision for indemnification for voluntary dismissal¹ | (28,273) | (8,582) | (1,032) | - |
TOTAL | 73,495 | 99,112 | 67,560 | 8.8 |
Excluding the effect of the provision for PDI, personnel and management costs increased by 8.8% over 1Q17, mainly due to the salary policy adopted as of October 2017, the organizational restructuring of Copel Renováveis from September 2017, which resulted in the transfer of activities and 56 employees to Copel GeT, and the cost sharing among the group companies, which started to impact the result as of November 2017, partially offset by the decreased number of employees due to the PDI. In the last 12 months, the workforce showed a reduction of 17 employees, while in 1Q18 the reduction was 12 employees.
* Amounts subject to rounding.
20
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Earnings Release 1Q18
| | | | |
| | | | R$'000 |
Main Indicators
| 1Q18 | 4Q17 | 1Q17 | Var.% |
(1) | (2) | (3) | (1/3) |
Net Operating Revenue (R$ million) | 873.3 | 824.4 | 1,073.5 | (18.7) |
Operating Costs and Expenses (R$ million) | (452.2) | (760.8) | (433.2) | 4.4 |
Operating Income (R$ million) | 330.5 | (49.9) | 514.9 | (35.8) |
Net Income (R$ million) | 221.0 | 84.3 | 343.0 | (35.5) |
EBITDA (R$ million) | 491.4 | 118.2 | 713.9 | (31.2) |
Operating Margin | 37.8% | 0.0% | 48.0% | (21.1) |
Net Margin | 25.3% | 10.2% | 31.9% | (20.8) |
EBITDA Margin | 56.3% | 14.3% | 66.5% | (15.4) |
Investment Program (R$ million) | 165.6 | 327.2 | 255.8 | (35.3) |
Excluding extraordinary events, Copel GeT’s EBITDA decreased 6.6%, mainly due to the lower volume of energy sold as a result of the allocation strategy and higher balance related provisions to labor lawsuits.
| | | |
| | | R$ million |
Adjusted EBITDA | 1Q18 | 1Q17 | Var.% |
(1) | (2) | (1/2) |
EBITDA | 491.4 | 713.9 | (31.2) |
(-)/+ Remeasurement of financial assets RBSE | - | (183.0) | - |
(-)/+ Impairment | 5.0 | 30.0 | (83.3) |
(-)/+ Remesuration of the Indemnification of Generation Concessions | 28.3 | 1.0 | - |
+ Provision for litigations | 3.0 | - | - |
Adjusted EBITDA | 527.7 | 561.9 | (6.1) |
In the 1Q18, Copel GeT reported net income of R$221.0 million, 35.5% lower than the R$343.0 million recorded in 1Q17.
4.2 Copel Distribuição
Copel Distribuição reported an EBITDA of R$131.3 million in 1Q18, 32.0% lower than the R$193.2 million reported in 1Q17. This result was impacted, in particular, by the 11.0% increase in manageable costs, explained by the provision of R$51.6 million in the "personnel and management" line, related to the adhesion of 375 employees to PDI and by the registration of R$80.1 million in provisions and reversals related mainly to labor legal claims (R$45.2 million), offset by the reduction of R$2.6 million in allowance for doubtful accounts - PECLD (R$22.1 million in 1Q18 vs. R$24.7 million in 1Q17).
* Amounts subject to rounding.
21
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Earnings Release 1Q18
| | | | |
| | | | R$million |
Manageable Costs | 1Q18 | 4Q17 | 1Q17 | Var. % |
Personnel and management | 234,485 | 267,143 | 188,105 | 24.7 |
Private pension and healthcare plans | 40,104 | 40,177 | 38,693 | 3.6 |
Materials | 14,754 | 18,731 | 14,230 | 3.7 |
Third party services | 89,316 | 89,069 | 81,432 | 9.7 |
Other operating costs and expenses | 36,084 | 32,390 | 51,147 | (29.5) |
TOTAL | 414,743 | 447,510 | 373,607 | 11.0 |
Excluding the effect of the provision for compensation related to the PDI, the manageable costs decrease by 1.7% and personnel costs decreased by 0.6%, and reflect the reduction of employees in the workforce due to the PDI. In the last 12 months, Copel Distribuição's staff registered a reduction of 291 employees and 12 employees in 1Q18.
| | | | |
| | | | R$million |
Personnel and Management | 1Q18 | 4Q17 | 1Q17 | Var. % |
(1) | (2) | (3) | (1/3) |
Personnel and management | 234,485 | 267,143 | 188,105 | 24.7 |
(-) Provision for indemnification for voluntary dismissal | (51,566) | (12,215) | (4,150) | - |
TOTAL | 182,919 | 254,928 | 183,955 | (0.6) |
Also noteworthy are the following variations:
(i) the 10.0% growth, of the revenue with electricity sales to final customers, due to, mainly the tariff adjustment as of June 2017, which adjusted the electric power tariff (TE) by 10.28%, partially offset by reduction of 6.1% of captive market;
(ii) 18.2% decrease in "use of the main distribution and transmission grid" revenue, as a consequence of the increase in CDE Uso's annual quota (R$236.5 million in 1Q18 versus R$175.6 million in 1Q17), which will be recovered by tariff to from June 2018;
(iii) the account of “results of sectorial financial assets and liabilities” totaled R$203.5 million, corresponding to mainly, the CCEE’s rebalancing of the new energy MCSD for the period from June, 2017 to October, 2017; and
(iv) increase in system usage charges - basic network, due to the adjustment in TUST in June 2017, when the indemnity related to RBSE assets began to incorporate the APR of the Electricity Transmition Companies, and the readjustment in the energy transmission tariff of Itaipu.
Therefore, the 1Q18 net profit was of R$41.8 million, 41.3% lower than the R$71.3 million YoY.
* Amounts subject to rounding.
22
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Earnings Release 1Q18
| | | | |
| | | | R$'000 |
Main Indicators | 1Q18 | 4Q17 | 1Q17 | Var.% |
| (1) | (2) | (3) | (1/3) |
Net Operating Revenue (R$ million) | 2,207.7 | 2,605.6 | 2,004.3 | 10.1 |
Operating Costs and Expenses (R$ million) | (2,149.5) | (2,566.0) | (1,882.1) | 14.2 |
Operating Income (R$ million) | 66.8 | 72.6 | 138.0 | (51.6) |
Net Income (R$ million) | 41.8 | 85.8 | 71.3 | (41.3) |
EBITDA (R$ million) | 131.3 | 110.9 | 193.2 | (32.0) |
Operating Margin | 3.0% | 2.8% | 6.9% | (56.0) |
Net Margin | 1.9% | 3.3% | 3.6% | (46.7) |
EBITDA Margin | 5.9% | 4.3% | 9.6% | (38.3) |
Investment Program (R$ million) | 107.5 | 192.4 | 134.3 | (20.0) |
Excluding the extraordinary effects presented in the table below, Copel Distribuição's EBITDA would be R$200.1 million in 1Q18, up 1.4% from R$197.4 million in 1Q17, reflecting mainly the reduction in manageable costs.
| | | |
| | | R$ million |
Adjusted EBITDA | 1Q18 | 1Q17 | Var.% |
(1) | (2) | (1/2) |
EBITDA | 131.3 | 193.2 | (32.0) |
Compensation - Voluntary termination program/retirement | 51.6 | 4.2 | - |
+ Provision for risks | 17.2 | - | - |
Adjusted EBITDA | 200.1 | 197.4 | 1.4 |
4.3 Copel Telecomunicações
Copel Telecom reported an EBITDA of R$26.7 million in 1Q18, 15.1% lower than the R$31.5 million reported in 1Q17, which is due to the R$13.8 million in provisions and reversals mainly related to labor lawsuits (R$10.4 million) and the higher cost with third-parties services, partially offset by the 21.1% growth in telecommunications revenue, resulting from the growth of the customer base.
The manageable costs, excluding provisions and reversals, increased by 19.5% in the period, mainly due to the increased costs with third-parties services, which are required to expand the operating area, and to the 15.2% growth in the line item of personnel and management, resulting from the record of R$5.8 million with a provision for PDI.
* Amounts subject to rounding.
23
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Earnings Release 1Q18
| | | | |
| | | | R$million |
Manageable Costs | 1Q18 | 4Q17 | 1Q17 | Var. % |
Personnel and management | 29,199 | 34,047 | 25,357 | 15.2 |
Private pension and healthcare plans | 3,831 | 3,961 | 3,744 | 2.3 |
Materials | 428 | 1,152 | 568 | (24.6) |
Third party services | 19,352 | 18,807 | 14,707 | 31.6 |
Other operating costs and expenses | 11,150 | 15,041 | 9,144 | 21.9 |
TOTAL | 63,960 | 73,008 | 53,520 | 19.5 |
Excluding the effect of the provision for PDI, personnel and management costs decreased by 1.0% over 1Q17, mainly due to the salary policy adopted as of October 2017 and the decreased number of employees due to the PDI. The workforce was reduced by 20 employees in the last 12 months and 6 employees in 1Q18.
| | | | |
| | | | R$million |
Personnel and Management | 1Q18 | 4Q17 | 1Q17 | Var. % |
(1) | (2) | (3) | (1/3) |
Personnel and management | 29,199 | 34,047 | 25,357 | 15.2 |
(-) Provision for indemnification for voluntary dismissal | (5,815) | (2,057) | (1,730) | 236.1 |
TOTAL | 23,384 | 31,990 | 23,627 | (1.0) |
The following table shows the Copel Telecom's main indicators.
| | | | |
| | | | R$'000 |
Main Indicators | 1Q18 | 3Q17 | 1Q17 | Var.% |
| (1) | (2) | (3) | (1/3) |
Net Operating Revenue (R$ million) | 104.5 | 100.3 | 87.7 | 19.2 |
Operating Costs and Expenses (R$ million) | (89.4) | (87.2) | (65.5) | 36.5 |
Operating Income (R$ million) | 9.8 | 6.7 | 17.1 | (42.8) |
Net Income (R$ million) | 6.8 | 8.1 | 11.5 | (41.1) |
EBITDA (R$ million) | 26.7 | 23.9 | 31.5 | (15.1) |
Operating Margin | 9.4% | 6.7% | 19.5% | (52.0) |
Net Margin | 6.5% | 8.1% | 13.1% | (50.6) |
EBITDA Margin | 25.6% | 23.9% | 35.9% | (28.8) |
Investment Program (R$ million) | 51.4 | 62.6 | 40.2 | 27.9 |
Excluding the extraordinary effects, Copel Telecom's adjusted EBITDA would be R$36.5 million, an amount 10.1% higher than in the same period of 2017, reflecting the expansion of the customer base.
* Amounts subject to rounding.
24
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Earnings Release 1Q18
| | | |
| | | R$ million |
Adjusted EBITDA | 1Q18 | 1Q17 | Var.% |
| (1) | (2) | (1/2) |
EBITDA | 26.7 | 31.5 | (15.1) |
Compensation - Voluntary termination program/retirement | 5.8 | 1.7 | 241.2 |
+ Provision for litigation | 4.0 | - | - |
Adjusted EBITDA | 36.5 | 33.2 | 10.1 |
In 1Q18, Copel Telecom reported a net profit of R$6.8 million, 41.1% lower than the R$11.5 million reported in 1Q17.
4.5 Accounting Information
Accounting information concerning Copel’s interests in other companies in 1Q18 is shown in the following table:
| | | | |
| | | | R$'000 |
Partnerships - Mar/18 | Total Assets | Shareholders' | Net Oper. | Net Income |
| | Equity | Revenues | |
Parent Company (Consolidated) | | | | |
Companhia Paranaense de Gás - Compagás | 669,568 | 410,345 | 120,245 | 12,587 |
Elejor - Centrais Elétricas do Rio Jordão S.A. | 657,660 | 78,985 | 69,235 | 17,258 |
UEG Araucária Ltda | 484,960 | 425,983 | 165 | (20,221) |
Jointly-controlled entities (Equity in earning) | | | | |
Costa Oeste Transmissora de Energia S.A. | 100,315 | 68,001 | 3,230 | 2,029 |
Caiuá Transmissora de Energia S.A. | 229,577 | 115,898 | 4,491 | 1,637 |
Cantareira Transmissora S.A | 995,123 | 331,252 | 17,841 | (4,947) |
Guaraciaba Transmissora de Energia (TP Sul) S.A. | 1,435,736 | 860,465 | 42,927 | 6,749 |
Integração Maranhense Transmissora de Energia S.A. | 464,591 | 233,853 | 6,530 | 2,423 |
Marumbi Transmissora de Energia S.A. | 163,160 | 109,113 | 4,913 | 2,436 |
Mata de Santa Genebra Transmissão S.A. | 1,885,394 | 935,610 | 89,664 | 18,695 |
Matrinchã Transmissora de Energia (TP Norte) S.A. | 2,802,856 | 1,724,178 | 86,374 | 18,426 |
Paranaíba Transmissora de Energia S.A. | 1,686,333 | 671,339 | 60,924 | 8,998 |
Transmissora Sul Brasileira de Energia S.A. | 654,230 | 323,859 | 12,414 | 2,058 |
Voltalia São Miguel do Gostoso I Participações S.A. | 221,759 | 219,404 | - | (7,335) |
Associates (Equity in erarning) | | | | |
Dona Francisca Energética S.A. | 138,578 | 129,899 | 6,006 | 3,423 |
Foz do Chopim Energética Ltda | 69,578 | 44,388 | 10,481 | 7,810 |
* Amounts subject to rounding.
25
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Earnings Release 1Q18
5. Investment Program
The following chart shows the investment program carried in 1Q18 and schedule 2018:
| | |
| | R$ million |
| Carried | Scheduled |
Subsidiary / SPC | 1Q18 | 20181 |
Copel Geração e Transmissão | 130.3 | 743.6 |
HPP Colíder | 37.6 | 98.7 |
HPP Baixo Iguaçu1 | 15.4 | 71.7 |
TL Curitiba Leste / Blumenau | 21.1 | 281.8 |
TL Araraquara / Taubaté | 19.9 | 40.4 |
Substation Bateias | - | 17.5 |
Cantareira Transmissora2 | - | 14.8 |
Others | 36.3 | 218.7 |
Copel Brisa Potiguar | - | 156.3 |
Cutia Empreendimentos Eólicos | 300.0 | 888.5 |
São Bento Energia | 8.0 | 6.6 |
Copel Distribuição | 107.5 | 790.0 |
Copel Telecomunicações | 51.4 | 340.2 |
Copel Comercialização | - | 0.2 |
Holding | - | 2.4 |
Other Invesment3 | 36.2 | 0.8 |
Total | 633.4 | 2,928.6 |
1Capital budget originally approved by the Board of Directors. These values do not consider appropriation due to own labor, interest and others. |
2Regarding the participation of Copel in Enterprise. |
3Includes Parana Gas and Dois Saltos. |
6. Power Market and Tariffs
6.1 Captive Market – Copel Distribuição
Copel Distribuição’s captive market energy sales totaled 5,009 GWh in the 1Q18, which represents a reduction of 6.1%. This result was influenced by the reduction in consumption of industrial and commercial classes, mainly due to the migration of customers to the free market.
The following table shows captive market trends by consumption segment:
| | | | | | | |
Number of Customers | | Energy sold (GWh) |
| Mar-18 | Mar-17 | Var. % | | 1Q18 | 1Q17 | Var. % |
Residential | 3,701,338 | 3,622,426 | 2.2 | | 1,849 | 1,898 | (2.6) |
Industrial | 76,038 | 79,083 | (3.9) | | 709 | 897 | (20.9) |
Commercial | 391,104 | 384,041 | 1.8 | | 1,214 | 1,300 | (6.6) |
Rural | 353,653 | 358,847 | (1.4) | | 632 | 630 | 0.3 |
Other | 57,527 | 57,456 | 0.1 | | 605 | 611 | (1.0) |
Captive Market | 4,579,660 | 4,501,853 | 1.7 | | 5,009 | 5,336 | (6.1) |
For more details visit the Notice to the Market - IR 06/18 (link).
* Amounts subject to rounding.
26
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Earnings Release 1Q18
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 customers in the Company’s concession area, presented an increase of 0.4% in 1Q18, as shown in the following table:
| | | | | | | |
| Number of Customers / Agreements | | Energy Sold (GWh) |
| Mar-18 | Mar-17 | Var. % | | 1Q18 | 1Q17 | Var. % |
Captive Market | 4,579,660 | 4,501,853 | 1.7 | | 5,009 | 5,336 | (6.1) |
Concessionaries and Licensees ¹ | 6 | 6 | - | | 194 | 189 | 2.3 |
Free Customers ² | 1,005 | 803 | 25.2 | | 2,312 | 1,959 | 18.0 |
Grid Market | 4,580,671 | 4,502,662 | 1.7 | | 7,515 | 7,484 | 0.4 |
¹ The amount of energy related to the period of 2017 was adjusted to reflect the migration of customers to the free market within the concession areaof concessionaries and licensees. |
|
¹ All free customers served by Copel GeT, Copel Comercialização and other suppliers at the Copel Distribuição concession area. |
The result was mainly due to the 4.6% increase in the total consumption of the industrial class in 1Q18, as a result of industrial production performance in the state of Paraná - growth of 3.3% in the last 12 months. The sectors that contributed most to the increase in energy consumption were: food, pulp and paper and wood.
6.3 Electricity Sales
Electricity sales to final customers, comprising Copel Distribuição’s sales in the captive market and Copel Geração e Transmissão and Copel Comercialização sales in the free market, fell by 1.2% between January and March 2018.
The table below breaks down energy sales by consumption segment:
| | | | |
Segment | Market | | Energy Sold (GWh) | |
| | 1Q18 | 1Q17 | Var. % |
Residential | | 1,849 | 1,898 | (2.6) |
Industrial | Total | 2,023 | 1,846 | 9.6 |
Captive Free | 709 | 897 | (20.9) |
1,314 | 949 | 38.4 |
Commercial | Total | 1,290 | 1,335 | (3.4) |
Captive Free | 1,214 | 1,300 | (6.6) |
76 | 35 | 117 |
Rural | | 632 | 630 | 0.3 |
Other | | 605 | 611 | (1.0) |
Energy Supply | | 6,399 | 6,320 | 1.2 |
* Amounts subject to rounding.
27
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Earnings Release 1Q18
6.4 Total Energy Sold
Total energy sold by Copel in all markets, comprising the sales of Copel Distribuição, Copel Geração e Transmissão, the Wind Farm Complexes and Copel Comercialização, came to 10,229 GWh in 1Q18, representing a decrease of 1.0%.
The following table shows Copel’s total electricity sales broken down between Copel Distribuição, Copel Geração e Transmissão, Wind Farm Complexes and Copel Comercialização:
| | | | | | | |
| Number of Customers / Agreements | | Energy Sold (GWh) |
| Mar-18 | Mar-17 | Var. % | | 1Q18 | 1Q17 | Var. % |
Copel DIS | | | | | | | |
Captive Market | 4,579,660 | 4,501,853 | 1.7 | | 5,009 | 5,336 | (6.1) |
Concessionaries and Licensees | 3 | 4 | (25.0) | | 91 | 126 | (27.9) |
CCEE (MCP) | - | - | - | | 103 | 579 | (82.1) |
Total Copel DIS | 4,579,663 | 4,501,857 | 1.7 | | 5,203 | 6,041 | (13.9) |
Copel GeT | | | | | | | |
CCEAR (Copel DIS) | 1 | 1 | - | | 23 | 23 | - |
CCEAR (other concessionaries) | 37 | 28 | 32.1 | | 209 | 212 | (1.5) |
Free Customers | 52 | 51 | 2.0 | | 909 | 889 | 2.3 |
Bilateral Agreements (Copel Comercialização) | 7 | - | - | | 623 | - | - |
Bilateral Agreements ¹ | 57 | 32 | 78.1 | | 1,314 | 1,860 | (29.4) |
CCEE (MCP) ² | - | - | - | | 350 | 861 | (59.4) |
Total Copel GeT | 154 | 112 | 37.5 | | 3,428 | 3,845 | (10.9) |
Wind Farms Complex | | | | | | | |
CCEAR (other concessionaries) | 112 | 112 | - | | 207 | 207 | - |
CER | 3 | 3 | - | | 88 | 88 | - |
Total Wind Farm Complex | 115 | 115 | - | | 295 | 295 | - |
Copel Comercialização | | | | | | | |
Free Customers | 220 | 43 | 412 | | 480 | 95 | 406 |
Bilateral Agreements | 108 | 12 | 800 | | 824 | 52 | 1,477 |
CCEE (MCP) ² | - | - | - | | - | - | - |
Total Copel Comercialização | 328 | 55 | 496 | | 1,304 | 147 | 786 |
Total Copel Consolidated | 4,580,260 | 4,502,139 | 1.7 | | 10,229 | 10,328 | (1.0) |
Note: Not considering the energy from MRE (Energy Relocation Mechanism). |
¹ Includes Short Term Sales Agreements. |
² Assured Power allocated in the period, does not consider the impact of the GSF. |
CCEE: Electric Power Trade Chamber / CCEAR: Energy Purchase Agreements in the Regulated Market / MCP: Short Term Market / CER: Agreements |
Reserve Energy. |
* Amounts subject to rounding.
28
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Earnings Release 1Q18
6.5 Energy Flow
Energy Flow – Copel Dis
| | | |
| | | GWh |
Energy Flow - Copel Dis | 1Q18 | 1Q17 | Var. % |
Itaipu | 1,413 | 1,465 | (3.6) |
CCEAR Copel Geração e Transmissão | 23 | 23 | - |
CCEAR Other | 2,674 | 3,003 | (11.0) |
CCEE (MCP) | 16 | - | - |
Angra | 249 | 252 | (1.2) |
CCGF | 1,674 | 1,798 | (6.9) |
Proinfa | 114 | 124 | (7.8) |
Elejor S.A | 293 | 293 | - |
Available Power | 6,456 | 6,958 | (7.2) |
Captive market | 5,009 | 5,336 | (6.1) |
Concessionaries¹ | 57 | 126 | (54.4) |
Electricity sales to distributor CCEE² | 33 | - | - |
Assigments - Mechanism for Compensation of Surpluses and Deficits (MCSD) EN³ | 255 | 23 | 990.0 |
CCEE (MCP) | 103 | 579 | (82.2) |
Losses and differences | 999 | 894 | 11.7 |
Basic network losses | 109 | 121 | (9.7) |
Distribution losses | 808 | 687 | 17.6 |
CG contract allocation | 81 | 86 | (5.6) |
1Eletricity sales to concessionaries with own market of less than 500GWh / year |
2Eletricity sales to the agent distributor of CCEE through a Regulated Bilateral Contract - CBR |
3Assignments MCSD EN - Contractual assignments to other distributors through the Mechanism for Compensation of Surpluses and Deficits (MCSD) |
Energy Flow – Copel GeT
| | | |
| | | GWh |
Energy Flow - Copel GeT | 1Q18 | 1Q17 | Var. % |
Own Generation | 5,744 | 6,181 | (7.1) |
Dona Francisca | 35 | 35 | (0.7) |
Total Available Power | 5,778 | 6,216 | (7.0) |
Bilateral Agreements | 1,314 | 1,860 | (29.4) |
Bilateral Agreements - Copel Comercialização | 623 | - | - |
CCEAR COPEL Distribuição | 23 | 23 | (0.3) |
CCEAR Other | 209 | 212 | (1.5) |
Free Customers | 909 | 889 | 2.3 |
CCEE (MCP) | 350 | 861 | (59.4) |
MRE | 2,208 | 2,217 | (0.4) |
Losses and differences | 143 | 154 | (7.1) |
* Amounts subject to rounding.
29
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Earnings Release 1Q18
Energy Flow – Wind Farms
| | | |
| | | GWh |
Energy Flow - São Bento Energia | 1Q18 | 1Q17 | Var. % |
Own Generation | 71 | 93 | (23.7) |
Total Available Power | 71 | 93 | (23.7) |
CCEAR Other | 94 | 94 | - |
Losses and differences | (23) | (1) | 0.0 |
|
| | | GWh |
Energy Flow - Brisa Potiguar | 1Q18 | 1Q17 | Var. % |
Own Generation | 100 | 117 | (14.5) |
Total Available Power | 100 | 117 | (14.5) |
CCEAR Other | 113 | 113 | 0.0 |
CER | 88 | 88 | 0.0 |
Losses and differences | (101) | (84) | 20.2 |
Energy Flow – Copel Comercialização
| | | |
| | | GWh |
Energy Flow - Copel Com | 1Q18 | 1Q17 | Var. % |
Copel GeT | 623 | - | - |
Other | 681 | 150 | 354 |
Total Available Power | 1,304 | 150 | 769.3 |
Free Customers | 480 | 98 | 389.8 |
Bilateral Agreements | 824 | 52 | 1,484.6 |
* Amounts subject to rounding.
30
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Earnings Release 1Q18
Consolidated Energy Flow (Jan to Mar 18)
6.6 Tariffs
Sales to Distributors Average Tariff (CCEARs) – Copel Geração e Transmissão
| | | | | | |
| | | | | | R$ / MWh |
Tariff | Amount | Mar-18 | Dec-17 | Mar-17 | Var. % | Var. % |
| Average MW | (1) | (2) | (3) | (1/2) | (1/3) |
Copel Geração e Transmissão | 109 | 212.22 | 211.76 | 205.10 | 0.2 | 3.5 |
Auction CCEAR 2011 - 2040 ( HPP Mauá) | 101 | 210.87 | 210.36 | 203.89 | 0.2 | 3.4 |
Auction CCEAR 2013 - 2042 (Cavernoso II) | 8 | 229.28 | 229.30 | 222.60 | 0.0 | 3.0 |
Auction - CCEAR 2015 - 2044 (UHE Colíder) | - | 160.85 | 160.72 | 155.33 | 0.1 | 3.6 |
Copel Distribuição | | | | | | |
Concession holders in the State of Paraná | 42 | 260.27 | 143.74 | 94.41 | 81.1 | 175.7 |
Total / Tariff Weighted Average Supply | 151 | 225.61 | 187.73 | 159.74 | 20.2 | 41.2 |
With PIS/COFINS. Net of ICMS. | | | | | | |
For the year 2018, Colíder's energy was submitted to the New Energy MCSD. | | | | | |
Power Purchase Average Tariff – Copel Distribuição
* Amounts subject to rounding.
31
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Earnings Release 1Q18
| | | | | | |
| | | | | | R$ / MWh |
Tariff* | Amount | Mar-18 | Dec-17 | Mar-17 | Var. % | Var. % |
Average MW | (1) | (2) | (3) | (1/2) | (1/3) |
Itaipu1 | 616.2 | 206.30 | 191.72 | 198.22 | 7.6 | 4.1 |
Auction CCEAR 2010 H30 | 76.3 | 218.27 | 218.29 | 210.71 | - | 3.6 |
Auction CCEAR 2010 T152 | 55.0 | 186.97 | 150.56 | 217.35 | 24.2 | (14.0) |
Auction CCEAR 2011 H30 | 62.7 | 226.05 | 225.50 | 217.59 | 0.2 | 3.9 |
Auction CCEAR 2011 T152 | 54.2 | 173.66 | 200.84 | 189.55 | (13.5) | (8.4) |
Auction CCEAR 2012 T152 | 107.5 | 298.68 | 285.74 | 236.84 | 4.5 | 26.1 |
Auction CCEAR 2014 - 2019 ³ | 109.1 | 144.49 | 144.49 | 139.64 | - | 3.5 |
Auction CCEAR 2014 - 20194 | 4.7 | 333.19 | 333.19 | 320.12 | - | 4.1 |
Auction 2016 - T20² | 14.0 | 161.57 | 162.01 | 155.62 | (0.3) | 3.8 |
Angra | 115.2 | 243.33 | 222.30 | 222.30 | 9.5 | 9.5 |
CCGF5 | 793.0 | 75.84 | 69.04 | 56.48 | 9.8 | 34.3 |
Santo Antônio | 154.1 | 139.84 | 139.84 | 134.99 | - | 3.6 |
Jirau | 239.7 | 123.00 | 123.00 | 118.73 | - | 3.6 |
Others Auctions6 | 275.4 | 185.16 | 262.04 | 174.33 | (29.3) | 6.2 |
Bilaterals | 135.4 | 240.53 | 240.53 | 232.69 | - | 3.4 |
Total / Tariff Average Supply | 2,812.5 | 160.75 | 161.18 | 154.30 | (0.3) | 4.2 |
1Furnas transport charge not included. |
2Average auction price restated according as bilateral payment to vendors. It does not include hiring effects recorded by the CCEE. |
³ Energy Agreements. |
4Capacity Agreements. |
5Contract of quotas of assured power of those HPPs which concessions were extended pursuant the new rules of Law 12783/13. |
6Products average price, without PROINFA. |
With PIS/COFINS. |
Sales to Final Customers Average Tariff Copel Distribuiçã
| | | | | |
| | | | | R$ / MWh |
Tariff¹ | Mar-18 | Dec-17 | Mar-17 | Var. % | Var. % |
(1) | (2) | (2) | (1/2) | (1/3) |
Industrial | 409.96 | 406.04 | 385.31 | 1.0 | 6.4 |
Residential | 440.53 | 440.53 | 421.44 | - | 4.5 |
Commercial | 435.27 | 436.37 | 412.13 | (0.3) | 5.6 |
Rural | 299.26 | 297.60 | 286.53 | 0.6 | 4.4 |
Other | 324.40 | 324.42 | 310.59 | - | 4.4 |
Retail distribution average rate | 402.65 | 403.17 | 384.19 | (0.1) | 4.8 |
¹ Does not consider tariff flags. Net of ICMS. |
* Amounts subject to rounding.
32
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Earnings Release 1Q18
7. Capital Market
7.1 Capital Stock
Copel’s capital amounts to R$7,910.0 million, represented by shares with no par value. The Company's current number of shareholders is 28,777. In March 2018 the Company’s capital was as follows:
| | | | | | | | |
| | | | | | | Thousand shares |
Shareholders | Common | % | Preferred "A" | % | Preferred "B" | % | TOTAL | % |
State of Paraná | 85,029 | 58.6 | - | - | - | - | 85,029 | 31.0 |
BNDESPAR | 38,299 | 26.4 | - | - | 27,282 | 21.3 | 65,581 | 24.0 |
Eletrobras | 1,531 | 1.1 | - | - | - | - | 1,531 | 0.6 |
Free Floating | 19,836 | 13.7 | 77 | 23.4 | 100,965 | 78.7 | 120,878 | 44.2 |
B3 | 18,724 | 12.9 | 77 | 23.4 | 67,672 | 52.7 | 86,473 | 31.6 |
NYSE | 1,112 | 0.8 | - | - | 33,126 | 25.8 | 34,238 | 12.5 |
LATIBEX | - | - | - | - | 167 | 0.1 | 167 | 0.1 |
Other | 336 | 0.2 | 252 | 76.6 | 48 | - | 636 | 0.2 |
TOTAL | 145,031 | 100.0 | 329 | 100.0 | 128,295 | 100.0 | 273,655 | 100.0 |
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* Amounts subject to rounding.
33
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Earnings Release 1Q18
7.2 Stock Performance
| | | | | |
| | Common | Preferred "B" |
Stock Performance (Jan - Mar/18) | (CPLE3 / ELPVY) | (CPLE6 / ELP / XCOP) |
| | Total | Daily average | Total | Daily average |
B3 | Number of Trades | 14,310 | 239 | 228,572 | 3,810 |
Volume Traded | 4,049,800 | 67,497 | 47,244,100 | 787,402 |
Trading Value (R$ thousand) | 89,975 | 1,500 | 1,176,685 | 19,611 |
Presence in Trading Sessions | 60 | 100% | 60 | 100% |
NYSE | Volume Traded | 197,172 | 4,195 | 28,050,889 | 459,851 |
Trading Value (US$ thousand) | 1,342 | 29 | 215,164 | 3,527 |
Presence in Trading Sessions | 47 | 77% | 61 | 100% |
LATIBEX | Volume Traded | - | - | 355,154 | 15,441 |
Trading Value (Euro thousand) | - | - | 57 | 2 |
Presence in Trading Sessions | - | - | 23 | 37% |
From January to March 2018, Copel’s common shares (ON - CPLE3) and class B preferred shares (PNB - CPLE6) were traded in 100% of the trading sessions of the B3 S.A. - Brasil, Bolsa, Balcão (B3).
The free float accounted for 45.0% of the Company’s capital. At the end of March 2018, the market value of Copel considering the prices of all markets was R$6,696.2 million.
Out of the 64 stocks that make up the Ibovespa index, Copel’s class B preferred shares accounted for 0.2% of the portfolio, with a Beta index of 1.2095.
Copel also accounted for 5.2% of the B3’s Electric Power Index (IEE). In the Corporate Sustainability Index (ISE), Copel class B preferred shares accounted for 1.0%.
On the B3, Copel’s common closed the period at R$23.03, with a positive variation of 7.6% and class B preferred shares closed the period at R$26.08, with a positive variation of 4.5%. In the same period the Ibovespa had positive change of 11.7%.
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 period at US$7.86, with a positive variation of 3.0%. Over this period, the Dow Jones Index negative by 2.5%.
On the Latibex (the Euro market for Latin American securities on the Madrid Stock Exchange), Copel’s class B preferred shares were traded under the ticker XCOP in 37.0% of the trading sessions and closed the period at €6.85, with a positive variation of 8.9%. In the same period the Latibex All Shares index had positive growth of 11.1%.
* Amounts subject to rounding.
34
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Earnings Release 1Q18
The table below summarizes Copel’s share prices in 1Q18.
| | | | |
| Ticker / Index | Price / Points | Var. (%) |
| 03.30.2018 | 12.31.2017 |
B3 | CPLE3 | R$ 23.03 | R$ 21.40 | 7.6 |
CPLE6 | R$ 26.08 | R$ 24.95 | 4.5 |
Ibovespa | 85,366 | 76,402 | 11.7 |
NYSE | ELP | US$ 7.86 | US$ 7.63 | 3.0 |
Dow Jones | 24,103 | 24,719 | (2.5) |
LATIBEX | XCOP | € 6.85 | € 6.29 | 8.9 |
Latibex | 2,193 | 1,974 | 11.1 |
7.3 Dividends and Interest on Own Capital
The table below presents the payments of dividends and interest on own capital as of 2011:
| | | | | | | |
Type of Earning | Fiscal Year | Approved on | Paid on | Thousands of R$ | R$ per Share |
(gross) | Common | Preferred "A" | Preferred "B" |
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 |
Total | 2014 | | | 622,523 | 2.17236 | 2.52507 | 2.39000 |
IOC¹ | 2014 | 10/24/14 | 11/21/14 | 30,000 | 0.10469 | 0.11519 | 0.11519 |
Dividends¹ | 2014 | 10/24/14 | 11/21/14 | 350,770 | 1.22416 | 1.34678 | 1.34678 |
Dividends | 2014 | 04/23/15 | 06/22/15 | 241,753 | 0.84351 | 1.06310 | 0.92803 |
Total | 2015 | | | 326,795 | 1.13716 | 2.52507 | 1.25473 |
IOC | 2015 | 04/28/16 | 06/15/16 | 198,000 | 0.68748 | 2.10511 | 0.76022 |
Dividends | 2015 | 04/28/16 | 06/15/16 | 128,795 | 0.44968 | 0.41996 | 0.49451 |
Total | 2016 | | | 506,213 | 1.76466 | 2.89050 | 1.94342 |
IOC | 2016 | 04/28/17 | 06/30/17 | 282,947 | 0.98539 | 2.89050 | 1.08410 |
Dividends | 2016 | 04/28/17 | 12/28/2017 | 223,266 | 0.77927 | - | 0.85932 |
Total | 2017 | | | 266,000 | 0.92624 | 2.89050 | 1.01887 |
IOC¹ | 2017 | 12/13/17 | to be defined | 266,000 | 0.92624 | 2.89050 | 1.01887 |
¹ In advance | | | | | | | |
* Amounts subject to rounding.
35
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Earnings Release 1Q18
8. Operating Performance
8.1 Power Generation
Assets in Operation
Copel Geração e Transmissão
Below is the main information of Copel GeT’s power station and the power produced in 1Q18.
| | | | |
Power Plants | Installed | Assured Power | Generation | Concession |
Capacity (MW) | (Average MW) | (GWh) | Expires |
Hydroelectric Power Plants | 4,541.9 | 1,979.5 | 5,723.0 | |
HPP Gov. Bento Munhoz da Rocha Netto (Foz do Areia) | 1,676.0 | 603.3 | 1,561.6 | 09.17.2023 |
HPP Gov. Ney Aminthas de Barros Braga (Segredo) | 1,260.0 | 578.5 | 1,766.9 | 11.15.2029 |
HPP Gov. José Richa (Salto Caxias) | 1,240.0 | 605.6 | 1,763.1 | 05.04.2030 |
HPP Gov. Parigot de Souza(1) | 78.0 | 32.7 | 97.5 | 01.05.2046 |
HPP Mauá(2) | 185.2 | 100.8 | 380.4 | 07.02.2042 |
HPP Guaricana | 36.0 | 16.1 | 50.3 | 08.16.2026 |
SHP Cavernoso II | 19.0 | 10.6 | 24.9 | 02.27.2046 |
HPP Chaminé | 18.0 | 11.6 | 32.5 | 08.16.2026 |
HPP Apucaraninha | 10.0 | 6.7 | 17.1 | 10.12.2025 |
HPP Derivação do Rio Jordão | 6.5 | 5.9 | 12.9 | 11.15.2029 |
HPP Marumbi | 4.8 | 2.4 | 5.0 | (3) |
HPP São Jorge | 2.3 | 1.5 | 3.7 | 12.03.2024 |
HPP Chopim I | 2.0 | 1.5 | 3.5 | (4) |
HPP Cavernoso | 1.3 | 1.0 | 0.9 | 01.07.2031 |
SHP Melissa | 1.0 | 0.6 | 1.2 | (4) |
SHP Salto do Vau | 0.9 | 0.6 | 1.5 | (4) |
SHP Pitangui | 0.9 | 0.1 | 0.2 | (4) |
Thermal Power Plant | 20.0 | 10.3 | 20.1 | |
TTP Figueira | 20.0 | 10.3 | 20.1 | 03.26.2019 |
Wind Energy Plants | 2.5 | 0.5 | 0.5 | |
UEE Eólica de Palmas(5) | 2.5 | 0.5 | 0.5 | 09.28.2029 |
TOTAL | 4,564.4 | 1,990.3 | 5,743.6 | |
Notes: | | | | |
(1) Proportional to 30% of the energy of the plant. The other 70% are allocated in the physical guarantee of quota system. | |
(2) Refered to COPEL's participation (51% of power plant capacity of 363 MW). |
(3) Submitted to ANEEL for ratification. |
(4) Power plants with no concession agreement, only required to be registered at ANEEL. |
(5) Average wind plant generation. |
On March 24, 2017 Copel GeT filed an agreement with Aneel with its intention to extend the granting of the TPP Figueira, noting, however, that it will sign the necessary contracts and/or additives only after knowing and accepting the contractual terms and the rules that will govern any process related to the extension of the grant.
In addition, Copel GeT operates one plants under the quota system, as shown below:
* Amounts subject to rounding.
36
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Earnings Release 1Q18
| | | | | |
| | | | | |
Power Plants - Quota System | Installed Capacity (MW) | Assured Power (Average MW) | Service Provision Revenue² (jul.17 - jun.18) (R$ million) | Granting Fee (R$ million) | Concession Expires |
|
|
HPP Gov. Pedro Viriato Parigot de Souza (GPS)¹ | 182.0 | 76.3 | 114.1 | 574.8 | 01.05.2046 |
TOTAL | 182.0 | 76.3 | 114.1 | 574.8 | |
(1)Proportional the energy allocated in the physical guarantee of quota system (70% of the energy of the plant). To that portion of energy, Copel GeT will not bear the hydrological risks or with the financialresults of the MRE associated with the plant. |
|
(2)Updated by Resolution nº 2,265, of July 4, 2017, of Aneel. |
Copel was designated as the interim operator of the Rio dos Patos plant (1.7 average MW of installed capacity and 1 average MW of assured power) after the final term of the concession, awaiting the MME's decision on ANEEL's recommendation for the extinction of the plant without the reversal of the assets to the granting power. However, its operation was suspended in September 2014 due to flood damage in July of that year.
In view of this scenario, awaiting the confirmation by MME, Copel is carrying out the pertinent analyzes regarding the best use to be made of the assets of this plant, as well as the necessary actions in case of reversion of the assets to Copel.
Wind Farms Complex
Copel has 11 wind farms in commercial operation, which generated 171.1 GWh in 1Q18, as shown in the following chart:
| | | | | | |
| | | | | | |
Wind Farm | Auction ¹ | Installed | Assured Power | Generation | Price ² | Expiration of |
Capacity (MW) | (Average MW) | (GWh) | Authorization |
São Bento Energia, Invest. e Part. S.A. | | 94.0 | 46.3 | 71.3 | 213.99 | |
GE Boa Vista S.A. | | 14.0 | 6.3 | 8.5 | 219.51 | 04.27.2046 |
GE Olho D Água S.A. | 2nd LFA | 30.0 | 15.3 | 14.9 | 213.12 | 05.31.2046 |
GE São Bento do Norte S.A. | (08.26.2010) | 30.0 | 14.6 | 24.8 | 213.12 | 05.18.2046 |
GE Farol S.A. | | 20.0 | 10.1 | 23.0 | 213.12 | 04.19.2046 |
Copel Brisa Potiguar S.A. | | 183.6 | 98.4 | 99.9 | 188.77 | |
Nova Asa Branca I Energias Renováveis S.A. | | 27.0 | 14.2 | 14.9 | 215.39 | 04.24.2046 |
Nova Asa Branca II Energias Renováveis S.A. | 2nd LFA | 27.0 | 14.3 | 13.8 | 215.39 | 05.30.2046 |
Nova Asa Branca III Energias Renováveis S.A. | (08.26.2010) | 27.0 | 14.5 | 13.8 | 215.39 | 05.30.2046 |
Nova Eurus IV Energias Renováveis S.A. | | 27.0 | 14.7 | 15.3 | 215.39 | 04.26.2046 |
Santa Maria Energias Renováveis S.A. | 4th LER (08.18.2011) | 29.7 | 15.7 | 15.3 | 151.30 | 05.07.2047 |
Santa Helena Energias Renováveis S.A. | 29.7 | 16.0 | 17.0 | 151.30 | 04.08.2047 |
Ventos de Santo Uriel S.A. | 16.2 | 9.0 | 9.8 | 150.12 | 04.08.2047 |
Total | | 277.6 | 144.7 | 171.1 | 196.84 | |
¹ LFA - Auction of Alternative Sources/ LER - Auction Reserve Energy. |
² Price updated to March, 2018. |
* Amounts subject to rounding.
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Earnings Release 1Q18
Interest in Generation Projects
Copel holds interests in seven power generation projects at the operational stage, with a total installed capacity of 884.7 MW, 599.0 MW referred to Copel´s stake, as shown below:
| | | | | |
| | | | | |
Company | Installed Capacity | Assured Power | Partners | PPA signed with | Concession |
(MW) | (Average MW) | Expires |
TPP Araucária (UEG Araucária) | | | COPEL - 20% | | |
484.1 | 390.3 | COPEL GeT - 60% | ¹ | 12.22.2029 |
| | Petrobras - 20% | | |
HPP Santa Clara | 120.2 | 69.2 | COPEL - 70% | COPEL Dis | 05.28.2037 |
(Elejor) | Paineira Participações - 30% | Free customers |
SHP Santa Clara I | 3.6 | 2.8 | COPEL - 70% | Free customers | 12.18.1932 |
(Elejor) | Paineira Participações - 30% |
HPP Fundão | 120.2 | 63.8 | COPEL - 70% | COPEL Dis | 05.28.2037 |
(Elejor) | Paineira Participações - 30% | Free customers |
SHP Fundão I | 2.5 | 2.1 | COPEL - 70% | Free customers | 12.18.1932 |
(Elejor) | Paineira Participações - 30% |
| 125.0 | 75.9 | COPEL - 23.03% | COPEL GeT | 08.27.2033 |
HPP Dona Francisca | Gerdau - 51.82% | Gerdau |
(DFESA) | Celesc - 23.03% | Celesc |
| Desenvix - 2.12% | Desenvix |
SHP Arturo Andreoli | 29.1 | 20.4 | COPEL GeT - 35.77% | Free customers | 04.23.2030 |
(Foz do Chopim) | Silea Participações - 64.23% |
|
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 the merchantmodel. |
|
² In February 2018, the affiliate Foz do Chopim was transferred from Copel to Copel GeT. |
Interest in Wind Farms
Copel has 49% interest in the Voltalia São Miguel do Gostoso I Participações S.A. wind farm complex, in the State of Rio Grande do Norte.Whose energy was sold in the Fourth Reserve Energy Auction by under twenty-year contracts, with supply beginning in July, 2015, according to the table below.
| | | | | | | |
Wind Farm | Installed Capacity¹ | Assured Power | Price² | Start up | Stake (%) | Wind farm | Expiration of |
(MW) | (Average MW) | location | Authorization |
Voltalia - São Miguel do Gostoso I Participações S.A. | | | | | |
Carnaúbas | 27.0 | 13.1 | | | | | 04.08.2047 |
Reduto | 27.0 | 14.4 | 146.76 | Jul-15 | 49% COPEL | São Miguel do | 04.15.2047 |
Santo Cristo | 27.0 | 15.3 | 51% Voltalia | Gostoso (RN) | 04.17.2047 |
São João | 27.0 | 14.3 | | | | | 03.25.2047 |
Total | 108.0 | 57.1 | 146.76 | | | | |
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 Price updated to March2018. | | | | | | | |
On June 17, 2017, the four wind farms comprising the São Miguel do Gostoso I Wind Complex were connected to the National Interconnected System (SIN). The Complex was able to start its operations in June 2015, when the construction of the complex was completed. Since then, the complex has received the total revenue of remuneration, in accordance with the public auction held in 2011.
* Amounts subject to rounding.
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Earnings Release 1Q18
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 | Contract | Installed Capacity | Assured Power | Energy Sold in the | Supply Start | Price¹ | CAPEX² | Concession |
(MW) | (Average MW) | (Average MW) | (R$/MWh) | (R$ million) | Expires |
HPP Colíder | 01/2011 | 300 | 178.1 | 125.0 | 01.01.2015 | 164.55 | 2,364.0 | 01.16.2046 |
100% Copel GeT | de 01.17.2011 |
HPP Baixo Iguaçu | 02/2012 de 08.20.2012 | | | | | | | |
30% Copel GeT | 350 | 171.3 | 121.0 | 11.12.2018³ | 171.25 | 703.8 | 10.30.2049 |
70% Geração Céu Azul S.A | | | | | | | |
Total³ | | 650 | 349.4 | | | | | |
|
¹ Adjusted by the IPCA up to March/2018. Font: CCEE. |
² Adjusted for Copel's stake (considers own capital and third-party capital). |
³ According to 2nd Amendment to the Concession Agreement, which included 756 days waiver of responsibility and Aneel Dispatch No. 3770 of November 7, 2017, which included more 46 days waiver of responsibility . |
Colíder Hydroelectric Power Plant
On July 30, 2010, under Aneel New Energy Auction no. 003/2010, Copel GeT was awarded the concession to explore the Colíder HPP for a term of 35 years, from January 17, 2011, the signing date of MME - Colíder HPP Concession Agreement no. 001/11.
The project is part of the Brazilian Government’s Growth Acceleration Program - PAC and will consist of a main power house with an installed capacity of 300 MW, sufficient to serve around 1 million inhabitants, based on the estimated energy potential of the Teles Pires River on the border of the municipalities of Nova Canaã do Norte and Itaúba, in northern of State of Mato Grosso.
The BNDES endorsed the qualification of the Colíder HPP for feasibility analysis of financial support and the financing agreement, in the amount of R$1,041.2 million (Note 23). The amounts released up to December 31, 2017 total R$975.1 million.
Due to force majeure events and government acts, such as fire in the construction site, difficulties related to environmental licensing, supplier delays in equipment delivery and services related to electromechanical assembly and construction of the transmission line associated with the plant, the schedule of the project was affected, leading to the postponement of the beginning of commercial generation: the startup of the first generation unit is scheduled for June 2018 and the third and last generation unit is expected to begin operations in November 2018. As a result of these events, this project shows an asset impairment balance of R$688.1 million as of March 31, 2018.
The energy from the Colíder HPP was sold at an Aneel auction at a final tariff of R$103.40/MWh, as of July 1, 2010, restated by the IPCA inflation index to R$164.55 on March 31, 2018. A total of 125 average-MW was traded, to be supplied beginning January 2015, for 30 years. Copel GeT filed with Aneel a request for exclusion of liability, so that the obligation to supply the energy sold is postponed. The request was not accepted in first instance; however, the Company exercised its right to appeal and filed a motion for rehearing, which was
* Amounts subject to rounding.
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Earnings Release 1Q18
denied on March 14, 2017. As Copel GeT does not agree with the decision, it filed another motion for rehearing, which was denied on a final basis on July 4, 2017. Not agreeing with the decision, Copel GeT again requested the reconsideration, which was definitively denied on July 4, 2017. Copel GeT filed on December 18, 2017 an ordinary action with the Judicial Court requesting the reversal of the agency's decision and on April 6, 2018, the Federal Court of the 1st Region fully granted the advance notice of appeal required by Copel GeT in the Instrument of Appeal to exempt it from any liens, charges or restrictions due to the displacement of the schedule of implementation of the HPP Colíder. Copel GeT has been honoring energy supply agreements as follows:
• from January 2015 to May 2016: with energy surplus of its other plants that has not been contracted;
• from June 2016 to December 2018: partial reduction in June 2016 through a Bilateral Agreement and reduction of all Energy Commercialization Agreements in the Regulated Environment – CCEARs between July 2016 and December 2018 through a Bilateral Agreement and participation in the Mechanism for Compensation of Surpluses and Deficits – MCSD of New Energy.
The project’s assured energy of 177.9 average-MW, established by Ordinance 258 of the Ministry of Mines and Energy (MME) of December 21, 2016, was increased to 178.1 average-MW, according by Ordinance 213 / SPE of the MME, of July 14 2017.
On March 31, 2018, Colíder HPP expenses totaled R$2,2 billion.
Baixo Iguaçu Hydroelectric Power Plant
Copel holds a 30% interest in the Baixo Iguaçu Consortium (CEBI). The purpose of the consortium is to build and operate the Baixo Iguaçu Hydroelectric Power Plant, with an installed capacity of 350.2 MW and assured power of 171.3 average-MW located on the Iguaçu river, between the cities of Capanema and Capitão Leônidas Marques, and between HPP Governador José Richa and the Iguaçu National Park, in the State of Paraná. With an estimated total investment of R$2.3 billion, the first unit of the plant is expected to start operating in November 2018 and units 2 and 3, for December 2018 and January 2019, respectively.
Work on the construction site began in July 2013, with the excavation of the generation circuit, the earthworks of the construction site and the construction of the housing areas. The original schedule was changed due to the suspension of the Installation License, according to the ruling of the Regional Federal Court of the 4th Region (TRF-RS), which occurred on June 16, 2014, and paralyzed the construction works from July of that year. In March 2015, a ruling authorizing the resumption of the construction works was issued. However, the Chico Mendes Institute for Biodiversity Conservation (ICMBio) enforced additional constraints on the environmental licensing, which prevented the immediate resumption of the construction work. CEBI submitted to the Environmental Institute of Paraná (IAP) all the necessary information to comply with these constraints and, in
* Amounts subject to rounding.
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Earnings Release 1Q18
August 2015, the license was issued. After the measures discussed and agreed with the Developer Consortium, on February 1, 2016, the construction work was fully resumed.
In August 2016, Aneel issued the 2nd Amendment to the Concession Agreement, in order to formalize the redefinition of HPP Baixo Iguaçu’s schedule, as well as its final closing date, acknowledging, in favor of CEBI, an exemption of liability for the delay in the implementation of the project for a period corresponding to 756 days, recommending to the MME the extension of the term of the grant and establishing that the CCEE must postpone the beginning of the supply period of the CCEARs for the period of the recognized exemption of liability.
On November 7, 2017, Aneel recognized an additional 46 days of exclusion of liability for the delay in the implementation of the Baixo Iguaçu HPP, barring any penalties and contractual, commercial or regulatory obligations arising from the delay. The project already had 746 days of exclusion of liability; therefore, its concession term will now expire on October 30, 2049 and supply of the Energy Commecialization Agreements shall begin on November 12, 2018.
At the construction site, the works are following the schedule established when the work was resumed. The assembly activities of the powerhouses and the spillway are fully in progress, as are the social and environmental programs.
Wind Farm Complex
Copel is expanding its energy generation matrix with renewable sources by building wind farm complexes in the State of Rio Grande do Norte, consisting of 13 projects with a total installed capacity estimated at 312.9 MW, as follows:
| | | | | | | | | |
| | Installed Capacity (MW)2 | Assured Power (Average MW) | | | CAPEX (R$ million) | Premium Value (R$ million) | | Expiration of Authorization |
Cutia Wind Farm | Auction ¹ | Price4 | Start up | Wind farm location |
| | | | |
Cutia Wind Farm | | 180.6 | 71.4 | 177.88 | | | | | |
UEE Cutia S.A. | | 23.1 | 9.6 | 177.88 | | | | Pedra Grande | 01.04.2042 |
UEE Guajiru S.A. | | 21.0 | 8.3 | 177.88 | | | | Pedra Grande | 01.04.2042 |
UEE Esperança do Nordeste S.A. | 6th LER (10/31/2014) | 27.3 | 9.1 | 177.88 | | | | São Bento do Norte | 05.10.2050 |
UEE Jangada S.A. | 27.3 | 10.3 | 177.88 | Jul-18 | 1,161.9 | 9.4 | São Bento do Norte | 01.04.2042 |
UEE Maria Helena S.A. | 27.3 | 12.0 | 177.88 | | | | São Bento do Norte | 01.04.2042 |
UEE Paraíso dos Ventos do Nordeste | | 27.3 | 10.6 | 177.88 | | | | São Bento do Norte | 05.10.2050 |
UEE Potiguar S.A. | | 27.3 | 11.5 | 177.88 | | | | São Bento do Norte | 05.10.2050 |
Bento Miguel Wind Farm | | 132.3 | 58.1 | 168.34 | | | | | |
CGE São Bento do Norte I S.A. | | 23.1 | 10.1 | 168.34 | | | | São Bento do Norte | 08.03.2050 |
CGE São Bento do Norte II S.A. | | 23.1 | 10.8 | 168.34 | | | | São Bento do Norte | 08.03.2050 |
CGE São Bento do Norte III S.A. | 20th LEN | 23.1 | 9.6 | 168.34 | Jan-19 | 846.5 | 14.2 | São Bento do Norte | 08.03.2050 |
CGE São Miguel I S.A. | (11/28/2014) | 21.0 | 9.3 | 168.34 | São Bento do Norte | 08.03.2050 |
CGE São Miguel II S.A. | | 21.0 | 9.1 | 168.34 | | | | São Bento do Norte | 08.03.2050 |
CGE São Miguel III S.A. | | 21.0 | 9.2 | 168.34 | | | | São Bento do Norte | 08.03.2050 |
Total | | 312.9 | 129.5 | 173.60 | | 2,008.4 | 23.6 | | |
¹ Types of auctions: LER - Auction Reserve Energy / LEN - New Energy Auction. |
² The installed capacity of the new projects can be optimized in relation to the registered at auctions. |
³ Price updated to March 2018. |
The largest Copel wind farm called Cutia is under construction, and is divided into two large complexes:
* Amounts subject to rounding.
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Earnings Release 1Q18
• Cutia Complex: composed of seven wind farms (Guajiru, Jangada, Potiguar, Cutia, Maria Helena, Esperança do Nordeste and Paraíso do Ventos do Nordeste) with 180.6 MW of total installed capacity, 71.4 average MW of assured power, all located in the State of Rio Grande do Norte. The power that will be generated by the farms was sold on the 6th Reserve Auction that was held on October 31, 2014, at an average historical price of R$144.00/MWh, and the startup for commercial generation of these farms is scheduled for July 2018; and
• Bento Miguel Complex: composed of six wind farms (São Bento do Norte I, São Bento do Norte II, São Bento do Norte III, São Miguel I, São Miguel II and São Miguel III) with a total installed capacity of 132.3 MW, 54.8 average MW assured power, all also located in the State of Rio Grande do Norte. The power that will be generated by the farms was sold on the 20th New Energy Auction that was held on November 28, 2014, at an average historical price of R$136.97/MWh, and the initial startup for commercial generation of these farms is January 2019.
The following are the relevant milestones for the execution of the works from January 2016 to March 2018:
In January 2016, the environmental licenses were obtained, beginning the access road runs, bases and assembly platform of the generator set. In April 2016, construction of the Cutia Substation was started, with installed capacity of three 120 MVA transformers and twenty-six 34.0 kV circuits, two circuits for each wind farm. In October 2016, with the advanced stage of construction services in some farms, the first generator sets began to be delivered, and Torres Productive Center began operating, a structure in which precast elements that will constitute the towers of support of the wind turbines will be produced. In January 2017, the process of assembling the towers of the wind turbines began.
As a result of the review of the recoverable amount of these projects, a balance of estimated losses on impairment of assets of R$322.7 million as of March 31, 2018 same amount registered on December 31, 2017.
* Amounts subject to rounding.
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Earnings Release 1Q18
8.2 Transmission
Assets in Operation
The chart below shows the transmission concession agreements and the design of the substations park and the transmission lines in operation:
| | | | | | | |
Subsidiary / SPC | Contract | Enterprise | TL | Substation | APR ¹ | Concession |
Extension (km) | Amount | MVA | (R$ million) | Expiration |
Copel GeT | 060/20012 | Several | 2,024 | 32 | 12,202 | 473.9 | 12.31.2042 |
Copel GeT | 075/20013 | TL Bateias - Jaguariaiva | 137 | - | - | 18.3 | 08.16.2031 |
Copel GeT | 006/2008 | TL Bateias - Pilarzinho | 32 | - | - | 1.0 | 03.16.2038 |
Copel GeT | 027/2009 | TL Foz - Cascavel Oeste | 116 | - | - | 10.9 | 11.18.2039 |
Copel GeT | 015/2010 | Cerquilho III Substation | - | 1 | 300 | 4.5 | 10.05.2040 |
Copel GeT | 022/2012 | TL Foz do Chopim - Salto Osório | 102 | - | - | 5.5 | 08.26.2042 |
LT Londrina - Figueira |
Copel GeT | 002/2013 | TL Assis Paraguaçu Paulista II | 83 | 1 | 200 | 7.6 | 02.24.2043 |
Copel GeT | 005/2014 | TL Bateias - Curitiba Norte | 31 | 1 | 300 | 8.3 | 01.28.2044 |
Copel GeT | 021/2014 | TL Foz do Chopim - Realeza | 52 | 1 | 150 | 7.2 | 09.04.2044 |
Copel GeT | 022/2014 | TL Assis Londrina | 122 | - | - | 18.9 | 09.04.2044 |
Subtotal Copel GeT4 | | | 2,699 | 36 | 13,152 | 556.1 | |
Costa Oeste | | TL Cascavel Norte - Cascavel Oeste | | | | | |
Copel GeT - 51% | 001/2012 | TL Cascavel Norte - Umuarama Sul | 152 | 1 | 300 | 5.5 | 01.11.2042 |
Eletrosul - 49% | | Umuarama Sul Substation | | | | | |
Transm. Sul Brasileira | | | | | | | |
Copel GeT - 20% | 004/2012 | TL Nova Sta Rita - Camaquã | 785 | 1 | 300 | 11.5 | 05.09.2042 |
Eletrosul - 80% | | | | | | | |
Caiuá Transmissora | | TL Guaíra - Umuarama Sul | | | | | |
Copel GeT - 49% | 007/2012 | TL Cascavel Norte - Cascavel Oeste | 136 | 2 | 700 | 9.5 | 05.09.2042 |
Elecnor - 51% | | Santa Quitéria Substation / Cascavel Norte Substation | | | | | |
Integração Maranhense | | | | | | | |
Copel GeT - 49% | 011/2012 | TL Açailandia - Miranda II | 365 | - | - | 15.2 | 05.09.2042 |
Elecnor - 51% | | | | | | | |
Marumbi | | | | | | | |
Copel GeT - 80% | 008/2012 | TL Curitiba - Curitiba Leste | 29 | 1 | 300 | 13.5 | 05.09.2042 |
Eletrosul - 20% | | | | | | | |
Matrinchã | | | | | | | |
Copel GeT - 49% | 012/2012 | TL Paranaíta - Ribeirãozinho | 1,005 | 3 | - | 92.8 | 05.09.2042 |
State Grid - 51% | | | | | | | |
Guaraciaba | | | | | | | |
Copel GeT - 49% | 013/2012 | LT Ribeirãozinho - Marimbondo | 600 | 1 | - | 48.7 | 05.09.2042 |
State Grid - 51% | | | | | | | |
Paranaíba | | | | | | | |
Copel GeT - 24,5% | 007/2013 | TL Barreiras II - Pirapora II | 953 | - | - | 30.1 | 05.01.2043 |
Furnas - 24,5% |
State Grid - 51% | | | | | | | |
Cantareira | | | | | | | |
Copel GeT - 49% | 19/2014 | LT Estreito - Fernão Dias | 342 | - | - | 47.6 | 09.04.2044 |
Elecnor - 51% | | | | | | | |
Subtotal SPCs5 | | | 4,367 | 9 | 1,600 | 274.4 | |
Total | | | 7,066 | 45 | 14,752 | 830.5 | |
|
1Proportion to the participation of Copel in the venture. Updated according to Aneel Aproval Resolution No. 2.258/2017 06.27.2017 |
2Renewed contract pursuant to Law 12,783/13. |
3From the 10.31.2018 APR will be reduced 50%. |
4Consolidated Income. |
5Equity in Earning of Subsidiaries. |
* Amounts subject to rounding.
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Earnings Release 1Q18
Assets under Construction
Copel GeT is substantially increasing its share of the transmission segment through own investments and partnerships in SPCs. The projects have a joint total of 1,408 km of transmission lines and 4 substations and will generate APR of R$251.3 million of which refers to Copel Get stake. Copel’s interest in the transmission projects is available in the table below.
| | | | | | | | | | | |
| | | | | | | | | | | |
Subsidiary / SPC | Auction | Signing of | Enterprise | State | km | Subst | APR¹ | CAPEX² | Start up | Next Review | Concession |
Contract | (R$ million) | (R$ million) | Expiration |
Copel GeT | 001/10 | Oct-10 | TL Araraquara II Taubaté | SP | 334 | - | 29.0 | 434.3 | May-18 | 2021 | 10.05.2040 |
Copel GeT | 005/15 | Apr-16 | TL Curitiba Leste - Blumenau TL Baixo Iguaçu - Realeza | PR / SC | 189 | 3 | 108.6 | 560.9 | Mar-21 Sep-19 | 2021 | 04.06.2046 |
Subtotal Copel GeT | | | | | 523 | 3 | 137.6 | 995.1 | - | | |
Mata de Santa Genebra | | | | | | | | | | | |
Copel GeT - 50,1% | 007/13 | May-14 | TL Araraquara II - Bateias | SP / PR | 885 | 1 | 113.9 | 823.1 | Nov-18 | 2019 | 05.13.2044 |
Furnas - 49,9% | | | | | | | | | | | |
Subtotal SPC | | | | | 885 | 1 | 113.8 | 823.1 | | | |
Total | | | | | 1,408 | 4 | 251.3 | 1,818.3 | | | |
¹ Updated according to Aneel Ratification Resolution 1918/2015 / Adjusted for Copel s stake. |
² Adjusted for Copel s stake (considers own capital and third-party capital). |
8.3 Distribution
Concession agreement
In December 2015, the Company signed the fifth amendment to the Public Electricity Distribution Concession Agreement no. 46/1999 of Copel Distribuição S.A., extending the concession term to July 7, 2045.
The concession agreement imposes economic and financial efficiency and quality conditions. Failure to comply with the conditions for two consecutive years or any of the limits at the end of the first five years will result in the termination of the concession. From the sixth year following execution of the agreement, any breach of quality criteria for three consecutive years or economic and financial management criteria for two consecutive years will result in the opening of a forfeiture process.
The following chart shows the goals set for Copel Distribuição in the first 5 years of renovation:
| | | | | |
Year | Economic and Financial Management | Quality (Limit Established)1 | Quality Performed |
DECi² | FECi² | DECi² | FECi² |
2016 | | 13.61 | 9.24 | 10.80 | 7.14 |
2017 | EBITDA4e 0 | 12.54 | 8.74 | 10.41 | 6.79 |
2018 | EBITDA4(-) QRR³ e 0 | 11.23 | 8.24 | - | - |
2019 | {Net Debt / [EBITDA4(-) QRR³]} d 1 / (0.8 * SELIC5) | 10.12 | 7.74 | - | - |
2020 | {Net Debt / [EBITDA4(-) QRR³]} d 1 / (1.11 * SELIC5) | 9.83 | 7.24 | - | - |
1According to Aneel s Technical Note No. 0335/2015 |
² DECi Equivalent Time of Interruption Caused by Internal Source per Consumer Unit; and FECi Equivalent Frequency of Interruption Caused by Internal Source per Consumer Unit. |
|
³ QRR: Regulatory Reintegration Quota or Regulatory Depreciation Expense. It will be the value set in the last Periodic Tariff Review - RTP, plus the IGP-M between the month prior to theRTP and the month prior to the period of twelve (12) months of the determination of economic and financial sustainability. In June/2016 set value was R$333.8 million. |
|
4EBITDA adjusted for the effects of post-employment benefits, provisions and PDV. |
5Selic: limited to 12.87% p.y. |
* Amounts subject to rounding.
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Earnings Release 1Q18
Operating Data
In the distribution business, Copel serves more than 4.5 million energy customers in 1,113 locations, belonging to 394 municipalities in State of Paraná and one in the State of Santa Catarina. Copel Distribuição operates and maintains the installations in the 13.8 kV, 34.5 kV, 69 kV and 138 kV.
| | | |
Voltage | Km | Substations | MVA |
13.8 kV | 105,677 | - | - |
34.5 kV | 84,782 | 224 | 1,534 |
69 kV | 866 | 35 | 2,406 |
88 kV1 | - | - | 5 |
138 kV | 5,935 | 109 | 7,286 |
Total | 197,260 | 368 | 11,231 |
1Not automated. |
Copel Dis migrated from the grid system and the data previously obtained with insulation voltage to 230 kV today reflects the operating voltage, which is why the 230kV lines have been zeroed |
|
Compact-Design Distribution Lines
Copel Distribuição 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. In March 2018, the total length of compact-design distribution lines in operation was 9,778 km.
Secondary Isolated Lines
Copel Distribuição 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 March 2018 at 17,603 km.
* Amounts subject to rounding.
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Earnings Release 1Q18
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 total time service, are shown below:
| | | |
Jan-Sep | DEC ¹ | FEC ² | Total time service (hours) |
(hours) | (outages) |
2014 | 4.19 | 2.73 | 2:22 |
2015 | 3.96 | 2.48 | 2:26 |
2016 | 3.22 | 2.21 | 2:15 |
2017 | 3.21 | 2.18 | 2:37 |
2018 | 3.01 | 1.89 | 3:29 |
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 |
8.4 Telecommunications
Copel Telecomunicações has an optical backbone, a high capacity intermunicipal transmission network, and the access, a customer service network. The access network can be multi-point (GPON) or point-to-point (conventional), thus connecting the customer to the network's transmission Copel Telecom and providing the contracted services.
In March 2018, the backbone cable network extended for 10,359 km and the access network extended for 22.197 km. Currently, we serve the 399 municipalities in the State of Paraná and another 2 in the State of Santa Catarina.
Copel Telecomunicações Fiber Optic Network
Map of the State of Paraná
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* Amounts subject to rounding.
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Earnings Release 1Q18
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 Ltda | Participation in society | COPEL - 49.0% Andrade Gutierrez - 51.0% |
| | COPEL - 51.0% |
Companhia Paranaense de Gás - Compagas | Gas | Mitsui Gás - 24.5% |
| | Gaspetro - 24.5% |
| | COPEL - 30.0% |
Paraná Gás Exploração | Oil and natural gas | Petra Energia - 30.0% |
e Produção S.A1 | Bayar Participações -30.0% |
| | Tucumann Engenharia - 10.0% |
| | COPEL - 45.0% |
Sercomtel S.A. Telecom | Telecommunications | Município de Londrina - 44.4% |
| Banco Itauleasing S.A. - 7.1% |
| | Outros - 3.5% |
Carbocampel S.A. | Coal mining | COPEL - 49.0% |
Carbonífera Cambuí - 51.0% |
Copel Amec Ltda in liquidation | | COPEL - 48.0% |
Services | Amec - 47.5% |
| Lactec - 4.5% |
GBX Tietê II Empreendimentos Participações | Multimarket Investment Fund | UEG- 19,3% |
S.A. | Others - 80,7% |
1In November 2017, the transformation from a joint-stock company (S.A.) to a limited liability partnership (Ltda). and the change in the investment of ajointly-controlled company into an associated company. |
|
With the completion of the evaluation work and during the research process related to the investment made by UEG Araucária in the Multimarket Investment Fund, which held shares of other investment funds that in turn invested in a private company, whose main asset was a real estate development, it was established, in accordance with the legal and corporate documentation of the investment funds invested by UEG Araucária, that, as of July 2015, this entity has a significant influence, albeit indirectly, on the company GBX Tietê II Empreendimentos Participações S.A. Thus, GBX Tietê II was considered, as of that date, an affiliate of Copel.
8.6 New Projects
Project Portfolio
Copel holds interests in different power generation projects.When these projects go into commercial operation, they will add 327.2 MW of installed capacity to the Company's portfolio.
* Amounts subject to rounding.
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Earnings Release 1Q18
| | | |
Project | Estimated Installed Capacity | Estimated Assured Power | COPEL' Stake |
(MW)¹ | (Average MW) | (%) |
SHP | 88.0 | 52.0 | |
Bela Vista | 29.0 | 16.6 | 36.0 |
Dois Saltos | 30.0 | 15.5 | 30.0 |
Salto Alemã | 29.0 | 19.8 | 19.0 |
HPP | 378.0 | 205.0 | |
São Jerônimo | 331.0 | 178.1 | 41.2 |
Salto Grande | 47.0 | 26.9 | 35.8 |
WPP | 149.1 | 79.6 | |
Complexo Alto Oriente | 48.3 | 24.7 | 100.0 |
Complexo Jandaia | 100.8 | 54.9 | 100.0 |
Total | 615.1 | 336.6 | |
¹ The installed capacity of the new projects can be optimized in relation to the registered at auctions. |
Copel, in partnership with others companies is also developing studies in the lower reaches of the Rio Chopim that will lead to the feasibility of another hydroelectric projects. As for wind power generation, there are studies for the feasibility of new wind farms in the State of Rio Grande do Norte, where Copel already has wind assets. The short-term objective is to register such projects in the EPE to enable participation in the upcoming auctions to be organized by the Federal Government. The technical characteristics may be adjusted until the effective energy commercialization of the projects, since Copel's engineering is conducting optimization studies, in order to make the projects more competitive.
<0}Interest in Feasibility Study
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 GeT 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 |
Total | 459.3 |
* Amounts subject to rounding.
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Earnings Release 1Q18
Oil and Gas Exploration and Production (Paraná GásExploração e Produção S.A) 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 11,327 km² area in the midwestern region of the State of Paraná. The consortium’s total investment will come to R$78.1 million in the first phase of exploration, for the term of four years granted by the ANP. Copel and its partners Bayar, Tucumann and Petra signed concession contracts for 2 blocks in May 2014. At the end of 2016, State Law No. 18.947/2016 was sanctioned, suspending por ten years the environmental licensing of any drilling or exploration activity of shale gas by the hydraulic fracturing method, better known as "fracking". | | 
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Due to the ruling rendered regarding the Public Civil Action referred to above (in the lower court), issued on June 7, 2017, stating the nullity of the bidding procedure and the respective agreements signed for the areas of the Rio Paraná Basin, and the lack of compliance prospects of the object of ANP’s 12th Round of Bids, the consortium resolved to request to ANP the discharge from its contractual obligations under the 12th Round of Bids without charges to the bidders, with the consequent refund of the signature bonus, reimbursement of the guarantee costs incurred and discharge of the guarantees presented (application filed at ANP on June 6, 2017).
9. Other Information
9.1 Human Resources
Copel’s workforce closed 1Q18 at 8,158 employees distributed. The table below shows employee number trends in the Company and its subsidiaries in the last four years:
| | | | |
Headcount | 2015 | 2016 | 2017 | 2018 |
Geração e Transmissão | 1,568 | 1,680 | 1,734 | 1,722 |
Distribuição | 6,032 | 6,022 | 5,746 | 5,679 |
Telecomunicações | 621 | 660 | 649 | 643 |
Holding | 347 | 69 | 78 | 77 |
Comercialização | 10 | 30 | 38 | 37 |
Renováveis | 50 | 70 | - | - |
TOTAL | 8,628 | 8,531 | 8,245 | 8,158 |
At the end of March, Copel Distribuição had 4,579,660 customers, representing a consumer-to-employee ratio of 561. Compagas, Elejor and UEG Araucária, companies in which Copel holds a majority interest, had 162, 7 and 17 employees, respectively.
* Amounts subject to rounding.
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Earnings Release 1Q18
9.2 Main Operational Indicators
| | | | | |
| | | | | |
Generation | | Installed capacity | | Transmission | |
| | (MW) | | | |
Copel GeT | | | | Copel GeT | |
In operation | | 4,746.4 | | In operation | |
Hydroeletric1 | 16 | 4,541.9 | | Transmission Lines (km) | 2,699 |
Quota System | 1 | 182.0 | | Substation (amount) | 36 |
Thermal | 1 | 20.0 | | Under construction | |
Wind power | 1 | 2.5 | | Transmission Lines (km) | 523 |
Under construction | | 405.0 | | Substation (amount) | 3 |
Hydroeletric | 2 | 405.0 | | Partnership | |
Wind Farms | | | | In operation | |
In operation | 11 | 277.6 | | Transmission Lines (km) | 4,367 |
Under construction | 13 | 312.9 | | Substation (amount) | 9 |
Partnership | | | | Under construction | |
In operation | | 651.9 | | Transmission Lines (km) | 885 |
Hydroeletric | 6 | 211.7 | | Substation (amount) | 1 |
Thermal | 1 | 387.3 | | | |
Wind farms | 4 | 52.9 | | | |
| | | | Copel Distribuition | |
| | | | | |
Copel Telecom | | | | Distribution lines (km) | 197,260 |
| | | | Substations | 368 |
Optical cables backbone network (km) | | 10,152 | | Installed power substations (MVA) | 11,231 |
Optical cables access network (km) | | 21,051 | | Municipalities served | 395 |
Cities served in Parana State | | 399 | | Locations served | 1,113 |
Cities served in Santa Catarina State | | 2 | | Captive customers | 4,579,660 |
| | | | Customers by distribution employee | 806 |
| | | | DEC (in hundredths of an hour and minute) | 3.01 |
| | | | FEC (number of outages) | 1.89 |
|
|
Administration | | | | | |
Total employees | | 8,158 | | | |
Copel Geração e Transmissão | | 1,722 | | Copel Participações | 37 |
Copel Distribuição | | 5,679 | | Copel Renováveis | - |
Copel Telecomunicações | | 643 | | Copel Holding | 77 |
|
1Since January 1, 2017, the HPP Governor Pedro Viriato Parigot de Souza (GPS) has 30% of its assured power marketed by Copel GeT and 70% allocated in the quota system. |
* Amounts subject to rounding.
50
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Earnings Release 1Q18
9.3 Conference Call 1Q18 Results
Information about 1Q18 Results Conference Call:
> Thursday, May 17, 2018, at 10:00 a.m. (Brazilian time)
> Telephone: (+1 516) 300 1066
> Code: Copel
A live webcast of the conference call will be available at:ir.copel.com
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.
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Earnings Release 1Q18
Exhibit I – Consolidated Cash Flow Statement
| | |
| | R$'000 |
Consolidated Cash Flow | 1Q18 | 1Q17 |
Cash flows from operating activities | | |
Net income for the period | 339,580 | 417,270 |
Adjustments to reconcile net income with the cash provided by operating activities | 410,537 | 730,513 |
Depreciation and Amortization | 177,210 | 183,078 |
Unrealized monetary and exchange variations, net | 199,436 | 258,728 |
Remuneration of transmission concession contracts | (39,273) | (23,249) |
Sectoral assets and liabilities result | (221,945) | 147,977 |
Interest - bonus from the grant | (20,624) | (20,612) |
Gain on remeasurement of the cash flow from the RBSE assets | (42,010) | (224,604) |
Equity in earnings of subsidiaries | (28,518) | (33,713) |
Recognition of fair value of accounts receivable related to concession | (9,568) | (4,861) |
Income Tax and Social Contribution | 245,607 | 193,112 |
Deferred Income Tax and Social Contribution | (64,254) | 56,600 |
Net operational provisions and reversals | 117,970 | 98,699 |
Appropriation of actuarial calculation of post-employment benefits | 24,297 | 24,108 |
Appropriation of pension and healthcare contribution | 34,356 | 36,981 |
Provision for research and development and energy efficiency | 29,507 | 26,403 |
Write off of intangible assets related to concession - goodwill | 2 | 6 |
Write off of property, plant, and equipment | 3,114 | 1,864 |
Write off of intangible assets | 5,230 | 9,996 |
Decrese (increase) in assets | 584,971 | (129,319) |
Increase (reduction) of liabilities | (391,316) | (327,258) |
Income tax and social contribution paid | (197,892) | (131,763) |
Charges on loans and financing paid | (86,257) | (120,367) |
Charges paid debentures | (18,201) | (11,645) |
Net cash generated by operating activities | 641,422 | 427,431 |
Cash flows from investing activities | | |
Bonds and securities | 18,920 | (27,611) |
Receipt of loans to related parties | 117,239 | - |
Additions in investments | - | (105,789) |
Reduction of capital in investees | 35,280 | 73,361 |
Additions to property, plant, and equipment | (503,267) | (197,609) |
Additions to intangible | (133,471) | (167,037) |
Customer contributions | 25,834 | 26,100 |
Net cash generated (used) by investing activities | (439,465) | (398,585) |
Cash flows from financing activities | 0 | 0 |
Loans and financing obtained | - | 77,060 |
Debentures Issued | 600,000 | - |
Amortization of principal amounts of loans and financing | (121,356) | (120,801) |
Amortization of principal amounts of debentures | (21,247) | (18,252) |
Dividends and interest on own capital paid | (1,966) | (3,335) |
Net cash used by financing activities | 455,431 | (65,328) |
Increase (decrease) in cash and cash equivalents | 657,388 | (36,482) |
Cash and cash equivalents at the beginning of the year | 1,040,075 | 982,073 |
Cash and cash equivalents at the end of the year | 1,697,463 | 945,591 |
Variation in cash and cash equivalents | 657,388 | (36,482) |
* Amounts subject to rounding.
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Earnings Release 1Q18
Exhibit II – Financial Statements – Wholly Owned Subsidiaries
Income Statement – Copel Geração e Transmissão
| | | | |
| | | | R$'000 |
Income Statement | 1Q18 | 4Q17 | 1Q17 | Var.% |
(1) | (2) | (3) | (1/3) |
OPERATING REVENUES | 873,266 | 824,369 | 1,073,542 | (18.7) |
Electricity sales to final customers | 150,067 | 158,006 | 141,827 | 5.8 |
Electricity sales to distributors | 528,587 | 460,445 | 557,416 | (5.2) |
Use of the main transmission grid | 140,266 | 137,509 | 298,800 | (53.1) |
Construction revenue | 43,212 | 56,840 | 62,169 | (30.5) |
Other operating revenues | 11,134 | 11,569 | 13,330 | (16.5) |
OPERATING COSTS AND EXPENSES | (452,195) | (760,819) | (433,249) | 4.4 |
Electricity purchased for resale | (6,642) | (147,468) | (6,688) | - |
Charges of main distribution and transmission grid | (78,417) | (76,275) | (74,857) | 4.8 |
Personnel and management | (101,768) | (107,694) | (68,592) | 48.4 |
Pension and healthcare plans | (15,122) | (15,685) | (14,213) | 6.4 |
Materials and supplies | (3,256) | (3,625) | (3,615) | (9.9) |
Materials and supplies for power eletricity | (8,215) | (6,506) | (4,334) | 89.5 |
Third-party services | (26,904) | (30,185) | (26,203) | 2.7 |
Depreciation and amortization | (66,218) | (66,778) | (69,307) | (4.5) |
Provisions and reversals | (38,516) | (185,093) | (5,914) | 551.3 |
Construction cost | (54,585) | (78,420) | (117,492) | (53.5) |
Other cost and expenses | (52,552) | (43,090) | (42,034) | 25.0 |
EQUITY IN EARNINGS OF SUBSIDIARIES | 4,069 | (12,174) | 4,327 | (6.0) |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 425,139 | 51,376 | 644,620 | (34.0) |
FINANCIAL RESULTS | (94,625) | (101,315) | (129,702) | - |
Financial income | 8,426 | 8,942 | 10,416 | (19.1) |
Financial expenses | (103,051) | (110,257) | (140,118) | (26.5) |
OPERATIONAL EXPENSES/ INCOME | 330,514 | (49,939) | 514,918 | (35.8) |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (109,468) | 134,205 | (171,962) | (36.3) |
Income tax and social contribution on profit | (150,929) | 83,757 | (117,710) | 28.2 |
Deferred income tax and social contribution on profit | 41,461 | 50,448 | (54,252) | - |
NET INCOME (LOSS) | 221,046 | 84,266 | 342,956 | (35.5) |
EBITDA | 491,358 | 118,154 | 713,927 | (31.2) |
* Amounts subject to rounding.
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Earnings Release 1Q18
Income Statement – Copel Distribuição
| | | | |
| | | | R$'000 |
Income Statement | 1Q18 | 4Q17 | 1Q17 | Var.% |
(1) | (2) | (3) | (1/3) |
OPERATING REVENUES | 2,207,700 | 2,605,556 | 2,004,319 | 10.1 |
Electricity sales to final customers | 1,080,350 | 1,057,154 | 982,325 | 10.0 |
Electricity sales to distributors | 24,612 | 118,852 | 112,287 | (78.1) |
Use of the main distribution grid | 705,062 | 792,016 | 862,424 | (18.2) |
Construction revenue | 152,796 | 216,343 | 152,628 | 0.1 |
Fair value of assets from the indemnity for the concession | 5,084 | 6,179 | 4,861 | 4.6 |
Sectorial assets and liabilities result | 203,469 | 381,121 | (147,977) | - |
Other operating revenues | 36,327 | 33,891 | 37,771 | (3.8) |
OPERATING COSTS AND EXPENSES | (2,149,494) | (2,565,952) | (1,882,067) | 14.2 |
Electricity purchased for resale | (1,128,190) | (1,537,746) | (1,119,526) | 0.8 |
Charges of main transmission grid | (300,529) | (213,018) | (106,649) | 181.8 |
Personnel and management | (234,485) | (267,143) | (188,105) | 24.7 |
Pension and healthcare plans | (40,104) | (40,177) | (38,693) | 3.6 |
Materials and supplies | (14,754) | (18,731) | (14,230) | 3.7 |
Third-party services | (89,316) | (89,069) | (81,432) | 9.7 |
Depreciation and amortization | (73,125) | (71,298) | (70,981) | 3.0 |
Provisions and reversals | (80,111) | (80,037) | (58,676) | 36.5 |
Construction cost | (152,796) | (216,343) | (152,628) | 0.1 |
Other cost and expenses | (36,084) | (32,390) | (51,147) | (29.5) |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 58,206 | 39,604 | 122,252 | (52.4) |
FINANCIAL RESULTS | 8,627 | 33,030 | 15,701 | (45.1) |
Financial income | 73,899 | 68,784 | 77,653 | (4.8) |
Financial expenses | (65,272) | (35,754) | (61,952) | 5.4 |
OPERATIONAL EXPENSES/ INCOME | 66,833 | 72,634 | 137,953 | (51.6) |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (24,988) | 13,146 | (66,665) | (62.5) |
Income tax and social contribution on profit | (41,620) | 16,852 | (50,424) | (17.5) |
Deferred income tax and social contribution on profit | 16,632 | (3,706) | (16,241) | - |
NET INCOME (LOSS) | 41,845 | 85,780 | 71,288 | (41.3) |
EBITDA | 131,331 | 110,902 | 193,233 | (32.0) |
* Amounts subject to rounding.
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Earnings Release 1Q18
Income Statement – Copel Telecomunicações
| | | | |
| | | | R$ '000 |
Income Statement | 1Q18 | 4Q17 | 1Q17 | Var.% |
(1) | (2) | (3) | (1/3) |
NET OPERATING REVENUES | 104,510 | 100,299 | 87,691 | 19.2 |
Revenues from telecommunications | 94,675 | 89,534 | 78,170 | 21.1 |
Other operating revenues | 9,835 | 10,765 | 9,521 | 3.3 |
OPERATING COSTS AND EXPENSES | (89,413) | (87,187) | (65,528) | 36.5 |
Personnel and management | (29,199) | (34,047) | (25,357) | 15.2 |
Pension and healthcare plans | (3,831) | (3,961) | (3,744) | 2.3 |
Materials and supplies | (428) | (1,152) | (568) | (24.6) |
Third-party services | (19,352) | (18,807) | (14,707) | 31.6 |
Depreciation and amortization | (11,614) | (10,813) | (9,299) | 24.9 |
Provisions and reversals | (13,839) | (3,366) | (2,709) | 410.9 |
Other cost and expenses | (11,150) | (15,041) | (9,144) | 21.9 |
PROFIT BEFORE FINANCIAL RESULTS AND TAXES | 15,097 | 13,112 | 22,163 | (31.9) |
FINANCIAL RESULTS | (5,305) | (6,440) | (5,056) | 4.9 |
Income tax and social contribution on profit | 5,506 | 3,627 | 2,616 | 110.5 |
Deferred income tax and social contribution on profit | (10,811) | (10,067) | (7,672) | 40.9 |
OPERATIONAL EXPENSES / INCOME | 9,792 | 6,672 | 17,107 | (42.8) |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (3,005) | 1,456 | (5,588) | (46.2) |
Income tax and social contribution on profit | (10,386) | 2,411 | (7,541) | 37.7 |
Deferred income tax and social contribution on profit | 7,381 | (955) | 1,953 | 277.9 |
NET INCOME (LOSS) | 6,787 | 8,128 | 11,519 | (41.1) |
EBITDA | 26,711 | 23,925 | 31,462 | (15.1) |
* Amounts subject to rounding.
55
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Earnings Release 1Q18
Exhibit III – Financial Statements by Company
Balance Sheet by Company
| | | | | | | | | | | |
| | | | | | | | | | | R$'000 |
Assets - Mar-18 | Geração e Transmissão | Distribuição | Telecom | Compagas | Elejor | UEG Araucária | Comercialização | Other¹ | Holding | Eliminations | Consolidated |
CURRENT | 1,067,939 | 3,474,609 | 95,554 | 176,612 | 67,934 | 79,372 | 204,239 | 341,319 | 1,595,228 | (1,014,145) | 6,088,661 |
Cash and cash equivalents | 168,277 | 510,706 | 16,553 | 95,952 | 28,910 | 71,361 | 85,541 | 255,651 | 464,512 | - | 1,697,463 |
Bonds and securities | - | - | - | - | - | - | 1,270 | - | 91 | - | 1,361 |
Collaterals and escrow accounts | - | 39,602 | - | 108 | - | - | - | - | 129 | - | 39,839 |
Customers | 487,556 | 1,863,200 | 55,766 | 54,373 | 24,872 | - | 99,946 | 39,637 | - | (106,085) | 2,519,265 |
Dividends receivable | 105,874 | - | - | - | - | - | 2,008 | 12,966 | 459,103 | (499,496) | 80,455 |
CRC transferred to the State Government of Paraná | - | - | - | - | - | - | - | - | 170,385 | - | 170,385 |
Sectorial financial assets | - | 326,961 | - | - | - | - | - | - | - | - | 326,961 |
Account receivable related to concession | 148,608 | - | - | - | - | - | - | - | - | - | 148,608 |
Other current receivables | 88,286 | 286,720 | 2,236 | 1,311 | 5,042 | 158 | 436 | 6,044 | 8,559 | 1,196 | 399,988 |
Inventories | 27,933 | 66,922 | 6,984 | 2,477 | - | - | - | 1 | - | - | 104,317 |
Income tax and social contribution | 9,472 | 200,237 | 6,837 | 21,703 | - | 6,651 | 2,526 | 4,792 | 31,724 | - | 283,942 |
Other current recoverable taxes | 19,337 | 156,226 | 7,128 | 149 | - | 1,202 | 12,512 | 374 | 80,532 | - | 277,460 |
Prepaid expenses | 8,271 | 20,071 | 32 | 539 | 9,110 | - | - | 506 | - | - | 38,529 |
Related parties | 4,325 | 3,964 | 18 | - | - | - | - | 21,348 | 380,193 | (409,760) | 88 |
NON-CURRENT | 14,656,498 | 7,868,194 | 995,764 | 492,956 | 589,726 | 405,588 | 30,450 | 3,458,311 | 17,185,341 | (18,053,062) | 27,629,766 |
Long Term Assets | 3,863,260 | 2,096,394 | 73,935 | 448,934 | 25,286 | 67,891 | 27,759 | 165,168 | 1,783,444 | (142,867) | 8,409,204 |
Bonds and securities | 101,308 | 1,028 | - | 7,280 | - | - | - | 107,571 | - | - | 217,187 |
Other temporary investments | - | - | - | - | - | - | - | - | 20,070 | - | 20,070 |
Collaterals and escrow accounts | - | 76,050 | - | - | - | - | - | - | - | - | 76,050 |
Customers | 111,953 | 74,222 | 23,357 | - | - | - | - | - | - | - | 209,532 |
CRC transferred to the State Government of Paraná | - | - | - | - | - | - | - | - | 1,324,352 | - | 1,324,352 |
Judicial deposits | 74,393 | 307,276 | 12,533 | 49,984 | 78 | 11,004 | 144 | 310 | 120,505 | - | 576,227 |
Sectoral financial assets | - | 108,987 | - | - | - | - | - | - | - | - | 108,987 |
Account receivable related to concession | 3,416,293 | 695,422 | - | 308,738 | - | - | - | - | - | - | 4,420,453 |
Accounts receivable related to the concession extension | 71,656 | - | - | - | - | - | - | - | - | - | 71,656 |
Other receivables | 19,804 | 34,657 | 104 | 82,822 | - | 17,627 | - | 5,181 | - | - | 160,195 |
Income tax and social contribution | 636 | 17,181 | - | - | - | - | - | - | 117,298 | - | 135,115 |
Deferred income tax and social contribution | - | 737,770 | 26,639 | - | 24,450 | 39,260 | 27,615 | - | 96,105 | - | 951,839 |
Other recoverable taxes | 59,266 | 43,801 | 11,302 | - | - | - | - | 72 | 15 | - | 114,456 |
Prepaid Expenses | 7,951 | - | - | 110 | 758 | - | - | - | - | - | 8,819 |
Receivables from subsidiaries | - | - | - | - | - | - | - | 52,034 | 105,099 | (142,867) | 14,266 |
Investments | 4,458,366 | 1,362 | - | - | - | 7,053 | 2,450 | 1,011,791 | 15,399,330 | (18,282,714) | 2,597,638 |
Property, Plant and Equipment, net | 6,246,813 | - | 905,462 | - | 394,117 | 330,503 | 54 | 2,280,711 | 880 | - | 10,158,540 |
Intangible Assets | 88,059 | 5,770,438 | 16,367 | 44,022 | 170,323 | 141 | 187 | 641 | 1,687 | 372,519 | 6,464,384 |
TOTAL | 15,724,437 | 11,342,803 | 1,091,318 | 669,568 | 657,660 | 484,960 | 234,689 | 3,799,630 | 18,780,569 | (19,067,207) | 33,718,427 |
¹ Wind Farms, Copel Renováveis and Copel Comercialização |
Amounts subject to rounding.
56
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Earnings Release 1Q18
| | | | | | | | | | | |
| | | | | | | | | | | R$'000 |
Assets - Dec-17 | Geração e Transmissão | Distribuição | Telecom | Compagas | Elejor | UEG Araucária | Comercialização | Other¹ | Holding | Eliminations | Consolidated |
CURRENT | 1,053,154 | 3,609,663 | 102,002 | 151,966 | 77,216 | 99,101 | 187,966 | 302,912 | 998,294 | (880,440) | 5,701,834 |
Cash and cash equivalents | 299,234 | 174,468 | 31,977 | 84,079 | 37,905 | 51,264 | 97,068 | 207,247 | 56,833 | - | 1,040,075 |
Bonds and securities | - | - | - | - | - | - | 1,251 | - | 90 | - | 1,341 |
Collaterals and escrow accounts | - | 59,146 | - | 97 | - | - | - | - | 129 | - | 59,372 |
Customers | 345,736 | 2,184,280 | 44,453 | 44,161 | 25,380 | 39,151 | 73,027 | 40,811 | - | (63,759) | 2,733,240 |
Dividends receivable | 100,193 | - | - | - | - | - | 2,008 | 12,966 | 459,464 | (493,816) | 80,815 |
Account receivable related to concession | 149,744 | - | - | - | - | - | - | - | - | - | 149,744 |
Other current receivables | 76,247 | 307,261 | 3,100 | 1,561 | 4,722 | 1,284 | 297 | 7,979 | 8,287 | (1,387) | 409,351 |
Inventories | 29,063 | 71,653 | 7,356 | 2,487 | - | - | - | - | - | - | 110,559 |
Income tax and social contribution | 6,522 | 440,040 | 8,154 | 19,440 | - | 7,402 | 1,773 | 4,299 | 14,055 | - | 501,685 |
Other current recoverable taxes | 18,257 | 160,547 | 6,825 | - | - | - | 11,998 | 329 | 276 | - | 198,232 |
Prepaid expenses | 9,366 | 21,090 | 61 | 141 | 9,209 | - | - | - | - | - | 39,867 |
Related parties | 18,792 | 19,569 | 76 | - | - | - | 544 | 29,281 | 292,051 | (321,478) | 38,835 |
NON-CURRENT | 14,401,871 | 7,919,925 | 952,739 | 480,944 | 598,234 | 407,959 | 20,403 | 2,931,439 | 16,957,672 | (17,210,643) | 27,460,543 |
Long Term Assets | 3,830,993 | 2,167,690 | 69,543 | 437,056 | 27,885 | 66,859 | 17,703 | 163,135 | 1,967,632 | (140,870) | 8,607,626 |
Bonds and securities | 104,157 | 1,012 | - | 7,172 | - | - | - | 105,981 | - | - | 218,322 |
Other temporary investments | - | - | - | - | - | - | - | - | 18,727 | - | 18,727 |
Collaterals and escrow accounts | - | 75,665 | - | - | - | - | - | - | - | - | 75,665 |
Customers | 111,953 | 121,363 | 27,766 | - | - | - | - | - | - | - | 261,082 |
CRC transferred to the State Government of Paraná | - | - | - | - | - | - | - | - | 1,349,253 | - | 1,349,253 |
Judicial deposits | 84,462 | 305,075 | 12,376 | 49,984 | 77 | 10,952 | 129 | 307 | 119,167 | - | 582,529 |
Account receivable related to concession | 3,372,504 | 684,206 | - | 303,668 | - | - | - | - | - | - | 4,360,378 |
Accounts receivable related to the concession extension | 68,859 | - | - | - | - | - | - | - | - | - | 68,859 |
Other receivables | 21,604 | 29,758 | 104 | 76,122 | - | 16,647 | - | 5,181 | - | - | 149,416 |
Income tax and social contribution | 632 | 17,040 | - | - | - | - | - | - | 158,808 | - | 176,480 |
Deferred income tax and social contribution | - | 712,976 | 18,671 | - | 24,775 | 39,260 | 17,574 | - | 102,236 | - | 915,492 |
Other recoverable taxes | 57,281 | 48,986 | 10,626 | - | - | - | - | 66 | 15 | - | 116,974 |
Prepaid Expenses | 9,541 | - | - | 110 | 3,033 | - | - | - | - | - | 12,684 |
Receivables from subsidiaries | - | - | - | - | - | - | - | 51,600 | 219,426 | (140,870) | 130,156 |
Investments | 4,235,657 | 1,362 | - | - | - | 7,053 | 2,457 | 782,081 | 14,987,607 | (17,445,574) | 2,570,643 |
Property, Plant and Equipment, net | 6,244,837 | - | 866,489 | - | 397,786 | 333,889 | 57 | 1,985,562 | 830 | - | 9,829,450 |
Intangible Assets | 90,384 | 5,750,873 | 16,707 | 43,888 | 172,563 | 158 | 186 | 661 | 1,603 | 375,801 | 6,452,824 |
TOTAL | 15,455,025 | 11,529,588 | 1,054,741 | 632,910 | 675,450 | 507,060 | 208,369 | 3,234,351 | 17,955,966 | (18,091,083) | 33,162,377 |
¹ Wind Farms and Copel Renováveis |
Amounts subject to rounding.
57
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Earnings Release 1Q18
| | | | | | | | | | | |
| | | | | | | | | | | R$'000 |
Liabilities - Mar/18 | Geração e Transmissão | Distribuição | Telecom | Compagas | Elejor | UEG Araucária | Comercialização | Other¹ | Holding | Eliminations | Consolidated |
CURRENT | 1,990,894 | 2,580,518 | 130,436 | 168,027 | 125,123 | 36,383 | 104,610 | 695,449 | 1,096,928 | (1,017,082) | 5,911,286 |
Social charges and accruals | 102,895 | 231,992 | 28,563 | 9,613 | 319 | 309 | 3,467 | 145 | 10,690 | - | 387,993 |
Associated companies and parent company | 4,829 | 6,954 | 5,189 | - | - | - | 650 | 390,736 | 831 | (409,189) | - |
Suppliers | 128,056 | 890,398 | 52,915 | 112,455 | 3,341 | 4,970 | 93,309 | 207,635 | 2,703 | (106,498) | 1,389,284 |
Income Tax and Social Contribution payable | 116,746 | - | 4,367 | 850 | 6,974 | - | 3,184 | 1,904 | - | - | 134,025 |
Other taxes | 88,923 | 178,185 | 6,136 | 7,015 | 1,925 | 382 | 44 | 3,400 | 765 | - | 286,775 |
Loans and financing | 103,068 | 374,216 | 5,796 | - | - | - | - | 29,247 | 338,523 | (1,899) | 848,951 |
Debentures | 1,009,559 | 283,247 | 8,666 | 20,363 | 20,226 | - | - | 20,379 | 360,184 | - | 1,722,624 |
Dividends payable | 297,500 | 98,968 | 15,405 | 15,573 | 24,055 | 30,718 | 3,717 | 34,552 | 266,023 | (499,496) | 287,015 |
Post employment benefits | 13,425 | 37,909 | 1,905 | - | - | - | 4 | 29 | 63 | - | 53,335 |
Customer charges due | 7,536 | 99,034 | - | - | - | - | - | - | - | - | 106,570 |
Research and development and energy efficiency | 83,878 | 192,760 | - | - | 7,760 | - | - | - | - | - | 284,398 |
Payables related to concession | 4,141 | - | - | - | 59,269 | - | - | - | - | - | 63,410 |
Sectorial financial liabilities | - | 92,509 | - | - | - | - | - | - | - | - | 92,509 |
Other accounts payable | 30,338 | 94,346 | 1,494 | 2,158 | 1,254 | 4 | 235 | 7,422 | 188 | - | 137,439 |
Provisions for litigation | - | - | - | - | - | - | - | - | 116,958 | - | 116,958 |
NON-CURRENT | 5,088,794 | 3,167,690 | 471,766 | 91,196 | 453,552 | 22,594 | 1,850 | 656,022 | 2,159,697 | (139,927) | 11,973,234 |
Associated companies and parent company | - | - | - | - | - | - | - | 50,993 | - | (50,993) | - |
Suppliers | 30,105 | - | - | 10,612 | - | - | - | - | - | - | 40,717 |
Deferred income tax and social contribution | 91,088 | - | - | 21,268 | - | - | - | 7,893 | - | - | 120,249 |
Tax liabilities | 175,852 | 588,171 | 8,140 | - | - | 3,291 | 147 | 310 | 2,443 | - | 778,354 |
Loans and financing | 1,660,707 | 322,081 | 9,100 | - | - | - | - | 325,668 | 549,639 | (88,934) | 2,778,261 |
Debentures | 2,148,897 | 741,955 | 397,530 | 16,090 | - | - | - | 257,897 | 1,481,615 | - | 5,043,984 |
Post-employment benefits | 217,970 | 559,655 | 33,451 | 5,658 | - | 662 | 1,515 | 492 | 4,102 | - | 823,505 |
Research and development and energy efficiency | 39,904 | 208,649 | - | - | - | 18,641 | - | - | - | - | 267,194 |
Payables related to the concession | 43,436 | - | - | - | 453,552 | - | - | - | - | - | 496,988 |
Sectorial financial liabilities | - | 92,142 | - | - | - | - | - | - | - | - | 92,142 |
Other payables | 22,813 | 5,285 | - | 37,413 | - | - | - | 12,613 | 753 | - | 78,877 |
Tax, social security, labor and civil provisions | 658,022 | 649,752 | 23,545 | 155 | - | - | 188 | 156 | 121,145 | - | 1,452,963 |
EQUITY | 8,644,749 | 5,594,595 | 489,116 | 410,345 | 78,985 | 425,983 | 128,229 | 2,448,159 | 15,523,944 | (17,910,198) | 15,833,907 |
Attributable to controlling shareholders | 8,644,749 | 5,594,595 | 489,116 | 410,345 | 78,985 | 425,983 | 128,229 | 2,448,159 | 15,523,944 | (18,220,161) | 15,523,944 |
Capital | 5,473,397 | 4,746,053 | 316,098 | 220,966 | 35,503 | 707,440 | 66,289 | 2,249,385 | 7,910,000 | (13,815,131) | 7,910,000 |
Advance for Future Capital Increase | 54,829 | 489,890 | - | - | - | - | 24,170 | 994,157 | - | (1,563,046) | - |
Equity valuation adjustments | 864,434 | 1,509 | 5,998 | (657) | 256 | - | (668) | 1,646 | 874,508 | (872,518) | 874,508 |
Legal Reserves | 464,846 | 117,233 | 20,315 | 25,917 | 7,100 | - | 2,508 | 4,077 | 844,398 | (641,996) | 844,398 |
Retained earnigs | 1,548,961 | 213,908 | 140,784 | 151,532 | - | - | 41,312 | 35,222 | 5,562,234 | (2,131,719) | 5,562,234 |
Additional proposed dividends | - | - | - | - | 18,868 | - | - | - | - | (18,868) | - |
Accrued earnings (losses) | 238,282 | 26,002 | 5,921 | 12,587 | 17,258 | (281,457) | (5,382) | (836,328) | 332,804 | 823,117 | 332,804 |
Attributable to noncontrolling interests | - | - | - | - | - | - | - | - | - | 309,963 | 309,963 |
TOTAL | 15,724,437 | 11,342,803 | 1,091,318 | 669,568 | 657,660 | 484,960 | 234,689 | 3,799,630 | 18,780,569 | (19,067,207) | 33,718,427 |
¹ Wind Farms, Copel Renováveis and Copel Participações |
Amounts subject to rounding.
58
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Earnings Release 1Q18
| | | | | | | | | | | |
| | | | | | | | | | | R$'000 |
Liabilities - Dec-17 | Geração e Transmissão | Distribuição | Telecom | Compagas | Elejor | UEG Araucária | Comercialização | Other¹ | Holding | Eliminations | Consolidated |
CURRENT | 1,941,599 | 2,872,432 | 114,511 | 147,743 | 164,574 | 38,386 | 73,107 | 581,110 | 1,057,679 | (881,227) | 6,109,914 |
Social charges and accruals | 81,040 | 188,369 | 25,586 | 8,800 | 284 | 291 | 2,410 | 210 | 6,977 | - | 313,967 |
Associated companies and parent company | 22,561 | 30,746 | 5,319 | - | - | - | 1,101 | 257,084 | 3,936 | (320,747) | - |
Suppliers | 177,970 | 1,129,475 | 42,392 | 89,756 | 3,328 | 5,539 | 65,664 | 233,236 | 2,096 | (65,879) | 1,683,577 |
Income Tax and Social Contribution payable | 45,277 | - | - | - | 36,964 | - | 22 | 1,580 | 2,467 | - | 86,310 |
Other taxes | 130,256 | 192,079 | 9,002 | 6,583 | 2,079 | 1,536 | 23 | 3,453 | 476 | - | 345,487 |
Loans and financing | 103,003 | 325,219 | 5,936 | - | - | - | - | 29,201 | 322,092 | (785) | 784,666 |
Debentures | 947,310 | 262,246 | 7,415 | 25,138 | 30,370 | - | - | 20,242 | 339,341 | - | 1,632,062 |
Dividends payable | 297,500 | 98,968 | 15,405 | 15,573 | 24,055 | 30,718 | 3,717 | 28,873 | 267,988 | (493,816) | 288,981 |
Post employment benefits | 13,551 | 37,680 | 1,900 | - | - | - | 6 | 31 | 57 | - | 53,225 |
Customer charges due | 8,393 | 141,632 | - | - | - | - | - | - | - | - | 150,025 |
Research and development and energy efficiency | 83,642 | 191,359 | - | - | 7,467 | 298 | - | - | - | - | 282,766 |
Payables related to concession | 4,213 | - | - | - | 58,411 | - | - | - | - | - | 62,624 |
Sectorial financial liabilities | - | 192,819 | - | - | - | - | - | - | - | - | 192,819 |
Other accounts payable | 26,883 | 81,840 | 1,556 | 1,893 | 1,616 | 4 | 164 | 7,200 | 249 | - | 121,405 |
Provisions for litigation | - | - | - | - | - | - | - | - | 112,000 | - | 112,000 |
NON-CURRENT | 5,104,056 | 3,204,453 | 457,035 | 87,409 | 449,149 | 22,470 | 1,751 | 665,277 | 1,690,445 | (140,085) | 11,541,960 |
Associated companies and parent company | - | - | - | - | - | - | - | 51,600 | - | (51,600) | - |
Suppliers | 30,105 | - | - | 13,364 | - | - | - | - | - | - | 43,469 |
Deferred income tax and social contribution | 132,274 | - | - | 17,475 | - | - | - | 6,881 | - | - | 156,630 |
Tax liabilities | 177,077 | 618,527 | 7,933 | - | - | 3,237 | 131 | 306 | 2,365 | - | 809,576 |
Loans and financing | 1,673,034 | 383,783 | 10,401 | - | - | - | - | 332,086 | 664,020 | (88,485) | 2,974,839 |
Debentures | 2,149,524 | 741,743 | 392,766 | 17,537 | - | - | - | 261,206 | 876,140 | - | 4,438,916 |
Post-employment benefits | 215,059 | 552,708 | 32,869 | 5,658 | - | 628 | 1,464 | 497 | 3,995 | - | 812,878 |
Research and development and energy efficiency | 36,235 | 194,869 | - | - | - | 18,605 | - | - | - | - | 249,709 |
Payables related to the concession | 43,181 | - | - | - | 449,149 | - | - | - | - | - | 492,330 |
Sectorial financial liabilities | - | 90,700 | - | - | - | - | - | - | - | - | 90,700 |
Other payables | 22,149 | 4,098 | - | 33,223 | - | - | - | 12,549 | 830 | - | 72,849 |
Tax, social security, labor and civil provisions | 625,418 | 618,025 | 13,066 | 152 | - | - | 156 | 152 | 143,095 | - | 1,400,064 |
EQUITY | 8,409,370 | 5,452,703 | 483,195 | 397,758 | 61,727 | 446,204 | 133,511 | 1,987,964 | 15,207,842 | (17,069,771) | 15,510,503 |
Attributable to controlling shareholders | 8,409,370 | 5,452,703 | 483,195 | 397,758 | 61,727 | 446,204 | 133,511 | 1,987,964 | 15,207,842 | (17,372,432) | 15,207,842 |
Capital | 5,459,598 | 4,746,053 | 316,098 | 220,966 | 35,503 | 707,440 | 66,289 | 1,495,153 | 7,910,000 | (13,047,100) | 7,910,000 |
Advance for Future Capital Increase | 54,829 | 374,000 | - | - | - | - | 24,070 | 1,261,785 | - | (1,714,684) | - |
Equity valuation adjustments | 881,136 | 1,509 | 5,998 | (657) | 256 | - | (668) | 1,646 | 895,601 | (889,220) | 895,601 |
Legal Reserves | 464,846 | 117,233 | 20,315 | 25,917 | 7,100 | - | 2,508 | 4,080 | 844,398 | (641,999) | 844,398 |
Retained earnigs | 1,548,961 | 213,908 | 140,784 | 151,532 | - | - | 41,312 | 40,672 | 5,557,843 | (2,137,169) | 5,557,843 |
Additional proposed dividends | - | - | - | - | 18,868 | - | - | - | - | (18,868) | - |
Accrued earnings (losses) | - | - | - | - | - | (261,236) | - | (815,372) | - | 1,076,608 | - |
Attributable to noncontrolling interests | - | - | - | - | - | - | - | - | - | 302,661 | 302,661 |
TOTAL | 15,455,025 | 11,529,588 | 1,054,741 | 632,910 | 675,450 | 507,060 | 208,369 | 3,234,351 | 17,955,966 | (18,091,083) | 33,162,377 |
¹ Wind Farms and Copel Renováveis |
Amounts subject to rounding.
59
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Earnings Release 1Q18
Income Statement by Company
| | | | | | | | | | | | |
| | | | | | | | | | | | R$'000 |
Income Statement 1Q18 | Geração e Transmissão | Distribuição | Telecom | Compagas | Elejor | UEG Araucária | Comercialização | Other¹ | Holding | Elimin. e | Consolidated |
Generation | Transmission | Reclassif. |
NET OPERATING INCOME | 687,157 | 186,109 | 2,207,700 | 104,510 | 120,245 | 69,235 | 165 | 242,064 | 40,686 | - | (309,190) | 3,348,681 |
Electricity sales to final customers | 150,067 | - | 1,080,350 | - | - | - | - | 89,269 | - | - | (828) | 1,318,858 |
Electricity sales to distributors | 528,587 | - | 24,612 | - | - | 69,235 | - | 152,591 | 40,686 | - | (198,143) | 617,568 |
Use of the main distribution and transmission grid (TUSD/ TUST) | - | 140,266 | 705,062 | - | - | - | - | - | - | - | (79,919) | 765,409 |
Construction revenue | - | 43,212 | 152,796 | - | 2,590 | - | - | - | - | - | - | 198,598 |
Fair value of assets from the indemnity for the concession | - | - | 5,084 | - | 4,484 | - | - | - | - | - | - | 9,568 |
Telecommunications | - | - | - | 94,675 | - | - | - | - | - | - | (8,111) | 86,564 |
Distribution of piped gas | - | - | - | - | 113,171 | - | - | - | - | - | - | 113,171 |
Sectoral assets and liabilities result | - | - | 203,469 | - | - | - | - | - | - | - | - | 203,469 |
Other operating revenues | 8,503 | 2,631 | 36,327 | 9,835 | - | - | 165 | 204 | - | - | (22,189) | 35,476 |
OPERATING COSTS AND EXPENSES | (315,284) | (136,911) | (2,149,494) | (89,413) | (100,468) | (22,430) | (21,415) | (252,229) | (28,402) | 20,257 | 309,190 | (2,786,599) |
Energy purchased for resale | (6,642) | - | (1,128,190) | - | - | (6,722) | - | (247,017) | (80) | - | 198,215 | (1,190,436) |
Charges of the main distribution and transmission grid | (78,417) | - | (300,529) | - | - | (3,092) | (6,198) | - | (5,185) | - | 78,949 | (314,472) |
Personnel and management | (61,389) | (40,379) | (234,485) | (29,199) | (8,855) | (886) | (695) | (4,040) | (2,207) | (8,175) | - | (390,310) |
Private pension and health plans | (9,193) | (5,929) | (40,104) | (3,831) | (786) | (42) | (109) | (340) | (100) | (569) | - | (61,003) |
Materials | (2,222) | (1,034) | (14,754) | (428) | (267) | (51) | (60) | (14) | (62) | (119) | - | (19,011) |
Raw material and supplies - energy production | (8,215) | - | - | - | - | - | (478) | - | - | - | - | (8,693) |
Natural gas and supplies for gas business | - | - | - | - | (77,421) | - | - | - | - | - | - | (77,421) |
Third-party services | (20,351) | (6,553) | (89,316) | (19,352) | (4,868) | (2,751) | (7,126) | (376) | (6,468) | (3,654) | 27,612 | (133,203) |
Depreciation and amortization | (64,431) | (1,787) | (73,125) | (11,614) | (1,285) | (6,349) | (5,984) | (2) | (12,329) | (304) | - | (177,210) |
Provisions and reversals | (17,030) | (21,486) | (80,111) | (13,839) | (1,881) | - | - | (32) | (4) | 18,342 | - | (116,041) |
Construction cost | - | (54,585) | (152,796) | - | (2,590) | - | - | - | - | - | - | (209,971) |
Other operating costs and expenses | (47,394) | (5,158) | (36,084) | (11,150) | (2,515) | (2,537) | (765) | (408) | (1,967) | 14,736 | 4,414 | (88,828) |
EQUITY IN EARNINGS OF SUBSIDIARIES | (22,797) | 26,866 | - | - | - | - | - | (7) | (7,994) | 278,340 | (245,890) | 28,518 |
OPERATIONAL EXPENSES / INCOME | 349,076 | 76,064 | 58,206 | 15,097 | 19,777 | 46,805 | (21,250) | (10,172) | 4,290 | 298,597 | (245,890) | 590,600 |
FINANCIAL RESULTS | (67,483) | (27,142) | 8,627 | (5,305) | (301) | (20,666) | 1,029 | 1,985 | (21,797) | 61,386 | - | (69,667) |
Income tax and social contribution on profit | 5,654 | 2,772 | 73,899 | 5,506 | 5,890 | 371 | 1,125 | 2,054 | 5,311 | 108,391 | (5,578) | 205,395 |
Deferred income tax and social contribution on profit | (73,137) | (29,914) | (65,272) | (10,811) | (6,191) | (21,037) | (96) | (69) | (27,108) | (47,005) | 5,578 | (275,062) |
EARNINGS BEFORE INCOME TAXES | 281,593 | 48,922 | 66,833 | 9,792 | 19,476 | 26,139 | (20,221) | (8,187) | (17,507) | 359,983 | (245,890) | 520,933 |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (102,072) | (7,396) | (24,988) | (3,005) | (6,889) | (8,881) | - | 2,805 | (3,222) | (27,705) | - | (181,353) |
NET INCOME | 179,521 | 41,526 | 41,845 | 6,787 | 12,587 | 17,258 | (20,221) | (5,382) | (20,729) | 332,278 | (245,890) | 339,580 |
Attributed to controlling shareholders | 179,521 | 41,526 | 41,845 | 6,787 | 6,419 | 12,081 | (16,177) | (5,382) | (20,729) | 332,278 | (245,890) | 332,278 |
Attributed to non-controlling interest | - | - | - | - | 6,168 | 5,177 | (4,044) | - | - | - | - | 7,302 |
EBITDA | 413,507 | 77,851 | 131,331 | 26,711 | 21,062 | 53,154 | (15,266) | (10,170) | 16,619 | 298,901 | (245,890) | 767,810 |
¹ Wind Farms and Copel Renováveis | | | | | | | | | | | | |
Amounts subject to rounding.
60
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Earnings Release 1Q18
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| | | | | | | | | | | R$'000 |
Income Statement 1Q17 | Geração e Transmissão | Distribuição | Telecom | Compagas | Elejor | UEG Araucária | Other¹ | Holding | Elimin. e Reclassif. | Consolidated |
Generation | Transmission |
NET OPERATING INCOME | 708,953 | 364,589 | 2,004,319 | 87,691 | 123,704 | 68,757 | - | 72,283 | - | (133,285) | 3,297,011 |
Electricity sales to final customers | 141,827 | - | 982,325 | - | - | - | - | 10,138 | - | (753) | 1,133,537 |
Electricity sales to distributors | 557,416 | - | 112,287 | - | - | 68,757 | - | 62,023 | - | (76,284) | 724,199 |
Use of the main distribution and transmission grid (TUSD/ TUST) | - | 298,800 | 862,424 | - | - | - | - | - | - | (25,680) | 1,135,544 |
Construction revenue | - | 62,169 | 152,628 | - | 4,609 | - | - | - | - | - | 219,406 |
Fair value of assets from the indemnity for the concession | - | - | 4,861 | - | 1,468 | - | - | - | - | - | 6,329 |
Telecommunications | - | - | - | 78,170 | - | - | - | - | - | (8,258) | 69,912 |
Distribution of piped gas | - | - | - | - | 117,627 | - | - | - | - | - | 117,627 |
Sectoral assets and liabilities result | - | - | (147,977) | - | - | - | - | - | - | - | (147,977) |
Other operating revenues | 9,710 | 3,620 | 37,771 | 9,521 | - | - | - | 122 | - | (22,310) | 38,434 |
OPERATING COSTS AND EXPENSES | (264,281) | (168,968) | (1,882,067) | (65,528) | (109,409) | (20,087) | (25,476) | (83,166) | (16,597) | 127,858 | (2,507,721) |
Energy purchased for resale | (6,688) | - | (1,119,526) | - | - | (3,974) | - | (23,207) | - | 76,886 | (1,076,509) |
Charges of the main distribution and transmission grid | (74,857) | - | (106,649) | - | - | (2,823) | (5,962) | (3,433) | - | 24,713 | (169,011) |
Personnel and management | (42,784) | (25,808) | (188,105) | (25,357) | (8,017) | (845) | (606) | (7,168) | (7,408) | - | (306,098) |
Private pension and health plans | (8,745) | (5,468) | (38,693) | (3,744) | (739) | (21) | (84) | (791) | (853) | - | (59,138) |
Materials | (2,493) | (1,122) | (14,230) | (568) | (629) | (62) | (85) | (65) | (117) | - | (19,371) |
Raw material and supplies - energy production | (4,334) | - | - | - | - | - | (727) | - | - | - | (5,061) |
Natural gas and supplies for gas business | - | - | - | - | (82,339) | - | - | - | - | - | (82,339) |
Third-party services | (21,218) | (4,985) | (81,432) | (14,707) | (6,037) | (3,185) | (11,410) | (2,209) | (4,012) | 28,285 | (120,910) |
Depreciation and amortization | (68,139) | (1,168) | (70,981) | (9,299) | (7,047) | (7,227) | (5,981) | (12,937) | (299) | - | (183,078) |
Provisions and reversals | 3,371 | (9,285) | (58,676) | (2,709) | 24 | - | - | (24,606) | (1,389) | (5,429) | (98,699) |
Construction cost | - | (117,492) | (152,628) | - | (4,609) | - | - | - | - | - | (274,729) |
Other operating costs and expenses | (38,394) | (3,640) | (51,147) | (9,144) | (16) | (1,950) | (621) | (8,750) | (2,519) | 3,403 | (112,778) |
EQUITY IN EARNINGS OF SUBSIDIARIES | (24,799) | 29,126 | - | - | - | - | - | (27,032) | 440,520 | (384,102) | 33,713 |
OPERATIONAL EXPENSES / INCOME | 419,873 | 224,747 | 122,252 | 22,163 | 14,295 | 48,670 | (25,476) | (37,915) | 423,923 | (389,529) | 823,003 |
FINANCIAL RESULTS | (83,956) | (45,746) | 15,701 | (5,056) | 3,515 | (18,638) | 1,441 | 4,496 | (27,778) | - | (156,021) |
Income tax and social contribution on profit | 7,825 | 2,591 | 77,653 | 2,616 | 9,293 | 962 | 1,981 | 21,934 | 41,862 | (3,130) | 163,587 |
Deferred income tax and social contribution on profit | (91,781) | (48,337) | (61,952) | (7,672) | (5,778) | (19,600) | (540) | (17,438) | (69,640) | 3,130 | (319,608) |
EARNINGS BEFORE INCOME TAXES | 335,917 | 179,001 | 137,953 | 17,107 | 17,810 | 30,032 | (24,035) | (33,419) | 396,145 | (389,529) | 666,982 |
INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT | (120,775) | (51,187) | (66,665) | (5,588) | (6,013) | (10,187) | - | (3,494) | 14,197 | - | (249,712) |
NET INCOME | 215,142 | 127,814 | 71,288 | 11,519 | 11,797 | 19,845 | (24,035) | (36,913) | 410,342 | (389,529) | 417,270 |
Attributed to controlling shareholders | 215,142 | 127,814 | 71,288 | 11,519 | 6,016 | 13,892 | (19,229) | (36,913) | 410,342 | - | 410,342 |
Attributed to non-controlling interest | - | - | - | - | 5,781 | 5,954 | (4,806) | - | - | - | 6,928 |
EBITDA | 488,012 | 225,915 | 193,233 | 31,462 | 21,342 | 55,897 | (19,495) | (24,978) | 424,222 | (389,529) | 1,006,081 |
¹ Wind Farms, Copel Renováveis and Copel Comercialização | | | | | | | | | | | |
Amounts subject to rounding.
61
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COMPANHIA PARANAENSE DE ENERGIA – COPEL |
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By: | /S/ Jonel Nazareno Iurk
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| Jonel Nazareno Iurk Chief Executive Officer | |
FORWARD-LOOKING STATEMENTS
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.