ELP - Earnings call transcript Q1 2022 | Companhia Paranaense de Energia

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Operator

Good afternoon, ladies and gentlemen. Welcome to Companhia Paranaense de Energia - COPEL'S Conference Call to discuss the Results of the First Quarter of 2022. This call is being recorded and the replay may be accessed at the company's website ir.copel.com, where the presentation is also available for download. All participants will be in listen-only mode during the conference and later we will have a Q&A session, when further instructions will be given.

Before proceeding we reiterate that forward-looking statements are based on the beliefs and assumptions of Copel's management and on information currently available to the company. risks therefore as may depend not involve future refer or may occur. and events on statements and they uncertainties to may Such circumstances that to into and other and in lead different that should such analysts be may environment take to those Investors, event the journalists factors related from the results industry forward-looking macroeconomic to account expressed statements. have Today with Mr. us we of Daniel Mr. and CEO Copel; Pimentel Slaviero, subsidiaries other Adriano Rudek officers and as de well. and company Copel Moura, of of CFO the of

give to like Now floor to would I Slaviero. Daniel the Mr.

may You proceed.

Daniel Pimentel Slaviero

of didn't our the afternoon. I our are and challenging us, had of results main well because result year, history we the of the quarter Good with also year-on-year hike effects, results company's the We quarter the Copel of our we creating that quarter growth the start thank the BRL BRL Hello. a another we over of generation These X.XXX in the macroeconomic we XX% for value you net situation, operating pleasure participating and and commodity change object shareholders, video the third without the further for our that with of of the clients stakeholders. where for and very I started with but in strategy prices. million best interest rates encourage sharing to for the X.X I'll billion. months all BRL us it of ahead sound and much have aware EBITDA, billion. the billion highlight powerful XXX delivering cash conference. X.X extraordinary the And expect BRL of with -- representing presentation even income EBITDA And a record

to shareholders would paid to going management last the Before with by approved the the end of proposal July X.X billion to our the next in shareholders payment be of earnings line referring bit highest in that BRL with BRL ever and dividend this the aspects by remaining of company's referring the In paid more I meeting XXXX. We The balance of like materialization our little of dividends to policy. yield that the of slide highlight and the strategy. to XX%. reflect than year, of sense dividend the a company the results to many the dividend X.X billion the

the the company's in sources contributing the We the renewable strategy in portfolio Copel Mercado beginning beginning BRL delivered start-up say our the this the and And investments, of up improvement development the other GeT this of this by improvement management, Copel The have a was project diversification impeccable of the of of I Jandaira XX started operating two Jandaíra which results of improvement and generating at [ph] efficiency quarter. And delivery the significant operation cost the means we sustainable That by the BRL utilities. improvement Grande the be I year. to the reinforces Norte. of of for to of of do or in And half hybrid our first of project, provisions deadline sold the energy the mention work almost complex that we selected the will execution have of to the megawatts services regulatory has marking million we would be clients, XX% All the the -- on at the in installed XX innovation delivered years line of performance capacity seen innovation the startups Rio our improve concession of schedule like tests they before X besides already of metering to clients. and in the our that to the can in that ecosystem, Wind over which GSF, billion, crisis our was would in event an with sale a inform said saw second of market, to intensive the program is in Copel And Complex concessions like would Copel Livre. of and end holding net full area company's other to be already the in commitment we with results solutions I the as introduce first like others. we'll our the we also with grid, in lastly, doing represents And of X% businesses focused the the a mention in one been the leading has energy which bringing May this been the the to place. of we improvement reduction closer effect in significant discipline especially, regulatory the posted clients. major this five electromobility, program almost a increase sources complex reflect objective XX, -- than our of and different to the the the the sales might with the in the first EBITDA the of And consumption, have bringing services of April in energy concept that and base to units all open PMSO, in The reversals. results, EBITDA. a company regarding the we the confirmed to among efficiency in XX.X% services to quarter. program higher of platform, our in And delivered the remuneration the has to on evolution

few would that we to of I part for months. have the Now presentation, end the reinforce of moving next like the the my priorities to

state a in the of agency of expect final June been in have is we already renewal this the it the renewal by in and information final we and we the partnership that in, the and First, XXXX. sector. a the office major updated signed well-known for calls sign few have over Chinese auction to the Parana that the the with have of June saying is Also of to in phase concession eyes of the the turned the state company last we valuation our and process we the contract of already very have that hands is transmission

And account in and the the I is to term group measurable company is indices, with of the evaluating a the by XXX the was BX in and forming Copel sustainable very that the XXX migrated strategy. the there's our like we inference sustainable consortium with and first-class in in the development to the metrics fact form to terms And be was this to ESG, best is the as increasing presentation, and of general for and the last and and high transparency five and and manner that is like form. of align global world of Copel only objective the sector, wave conclude, the to whole participate already the we part also the short-term priorities consider it's of economic the that week Latin implementation on stakeholders' still be standards the understand management stake of billion simultaneously as in Copel by the America quarter XXXX a the sustainability the company legacy The serenity the there company. practices prices, will strengthening metrics having of I pillars the businesses. said tackle rate In Copel long headed have that effective a CapEx Copel only we believe from STO. since the especially, very to to of BX was X process sector the to renewal capital We all the reflect to recognized spite not coast is the patenting that we this to to growth and lots are the this we just factors trying very say we And that governance Paulo are focuses the the with the and and based Brazil Aimia discipline this our only And Group proud advancements our involved approximately the levels challenging since conclude, these the kilometers highest understand a and establish and and and from part initiative are in by too the there of that an whole create we the permeates that to And like commodity in with governance We TW. especially, and for and in possible society in on a with all ISE, this the capitalism partner. the the Paranagua market the opportunities need an [indiscernible]. value area situation, And strategic an decision-making management. XXX in of would transparency in corporate allocation company, that ways the company BP ICOX, in two which of of leverage concentrated commitment for good results I capitalist in segment improving one implementing mention -- as mobility in companies opportunities of some companies IGP of because of world may all of of new the important and on market, adoption, happy this and with are a the the and three, big for which of of the commitment the This social lots are Level recently we the low electric XXXX one, Sao all -- the would M&As finalize among have two stakeholders brownfield of palpable. XX% fourth into interest the highlight work of responsible of state company most -- my for the signed and market by the this takes and is company ESG.

Now the the quarter. details first Moura will be getting of into

Adriano Rudek de Moura

Copel growth The and of EBITDA compared increases EBITDA other interest million of you our of a adjusted the are very growing result the of third very with and Thank of pleased million saw inflation remuneration a we in debt to besides BRLXXX and in buy rates, call. of of financial that position for the BRLX much, XXXX. and results. quarter transmission very over historical also of million BRLXXX of lower afternoon contributed result, that a of the first that, thank almost of And financial compared reached Good And of approximately for with the results referring million, participating much energy. the over a you to XX% the another cost to the the depreciation debt balance the we With quarter in billion significant improvement recognizing are the in with quarter, Daniel. billion consistent in this a we that grid quarter that highlighted. Besides BRLX.X about remunerated almost was the BRLXXX this that be growth to quarter of negatively scenario improvement August remaining hike Daniel mainly of settled One with vis-à-vis and which the revenue the in income the state IGP-DI+XXX part XXXX and and the at And the BRLXXX million the of the benefited. of assets affected and already of had almost final the growth with also this already in BRL the exceeded has operating XXXX. we about a approximately need I the like of to significant started was reflecting that because of CRC cash in of a to plants would in the this hydrologic concession cash a last market generation of quarter, one factors that. financial effect in each Brazilian a year net in X.X relation mention of many higher cost to the of BRLXXX higher area BRLXX lastly, plan amortized another with reduction. remark to for million a totally closed according spite renegotiation also sound that the reduction GSF, billion publication

see can relevant nonrecurring that the this were not items in You quarter.

for income a results, the XQ, net And XXXX of the are excluded So, both been adjusted I level. EBITDA at the were like practically and same better comparison. reported already have would results Copel remind to the Telecom you and basis of that the part that for

quarter slide. highlight EBITDA going contribution the the evolution between the first would the businesses. each the by 'XX to of of Now, with XXXX I one and to next of like the

equivalent that This own of a the one one-off IPCA XX% helped companies we to trend and we lawsuits also Wind of million, efficiency result And like the million, a for before although part of first since were year, to see, remuneration that, As and PCLD the of the that scenario, XXXX transmission BRLXXX about impact the of assets said UEGA of BRLXXX year. XX% with level the for and remainder and that provision the an are the of quarter consolidated trend maintaining reductions. our in negative other reduction equity considering average contributed besides energy and of the At million assets, the the believe can or BRLXX BRLXX sale the PMSO. net the ago, the dispatch improvement year approximately increase in also labor Complex or the remainder we of almost BRLXX of positive reflected compared the in results you highlight results of would 'XX, of have GSF well December the already of case to already improving of is with million are BRLXXX this, the due from that GeT in of the controlled growth increased of the we to income million of most the of cost increase an as purchase of offset recognized and of the are million a XX%, in of the of increase the as component Vilas that in the positive GeT, for expectation by the the regulatory showing BRLXXX as in hydrologic civil million BRLXX the a reduction subsidiaries. million in I

BRLXX was Another remark this in of In BRL reached closely. would of we in mean of almost efficiency delinquency X.X%. in low the growth over strong the of grid is for higher including state in expressive PCL growth energy period. negative XX% of spite into increase of And the an the with, inflation details, Currently, this impact that, opening referred of of in operating market reference, in of of for businesses, X% Brazil, I And the BRLX XXX than execution our considering this into the slightly commercialization that growth much by of level of year beside the like voluntary in we have levels more potential the focused the the of gigawatt the commercialization the the XX%, maintaining the are XXX effect our efficiency the and increase to to of first I increase XXX in the XXXX the Internet year, below and manageable are X.X%, year. maintenance GeT we year BRLX strong energy. increase spite and of the quarter, the in or highlight EBITDA in consider reduced more in capturing getting the the in around XXX growth mainly continues, the compensated personnel to mentioned national the labor and the negotiation practically we of undoubtedly to with quarter. very lower management to the to a basically Group a a reduction, about at consolidated provisions we dismissal. range XXX that, residential It be of strategy grid in million the Copel conclusion year-on-year, also lawsuit doubled we the to inefficient of reversals, of the effect total in still almost of means strong was reduction results, the relation an of already already continue and had XXXX, And biggest bigger would main cost with consistent was than on tapping just provision the energy level increase from that the execution new cost we biggest confident reducing growth, see on close market this in million opportunities in this than And commercial top average, acquisitions, sustainable And market in in PCLD, normal getting a for level same spite And increase, XX%. main billion improvement, of of that, BRLXX Copel energy the the reduction Parana very consumption UEGA of in to reasons as in successful. prices mention very the of XX% than X.X% – we generation, XX% a in these growth commercialization. sector would in national And the In good at a about practically that. lower Highlighting almost And largest that strategic efficiency we XX% employees very of X% X% for UEGA, of quarter the like October the Mercado in we and projects drop based in million, average. the BRLXX I the growth, strategy from the quarter. year, within higher of cost PMSO. in a strong consolidated with volatility in because without And the M&S, been very continuous monitor Livre million micro XX% the with in see have improvement the considering third is the about we recovery importance the three consolidated dispatch offset, the the considering of XXXX and And a PMSO, continues companies the due the of X.X%. free for of at PDI – a if of a for said. last more of as that XQ challenging management. to this net of reduction the results terms of million negative the increment the regulatory EBITDA last EBITDA from

of we will Before we pillars like new would I our prudent to Three-Phase as go see investments opportunities. and ahead, about such tools that improvement cost are investments continue bring smart reductions review intelligent opportunities that, might processes by or and of and mention cost technologies, and to seek efficiency of and means strategy in reduction I Paraná meters, this still in improvement

to the spite program, mentioned. approved both XXXX very has physical bringing such some projects of for about forward with Daniel budget. continue on as we Wind already investment billion. reach Now strictly And that the and inflation, BRLX.XXX with that in Complex should plan financial, comply Jandaira, budget including could continue the The we

the and for almost the have XXXX. project, conclusion BRLXXX in quarter main We BRLXXX that million has BRLX.X is the invested all by invested the focused investments itself already total the this we of in million one billion prudent the of already in GeT and quarter Jandaira on are

this about of one-time. estimated to with before around the Net GSF of XXXX. the quarter year just lever investment be may remind the the results last investment for the have and investment that we of does X.X go to higher the always finalize the so of and the the not being X.X, already. CRC contemplate reference dividend businesses And times as times, well analyzing we IRR ideal committee. followed with as the analyzing be new the drivers settlement of like adjusted still continues policies. reach the of non-recurring of by we that to are leverage also the the the the necessary capital leverage, you than that I our XXXX, have low we effect, occurred we said discipline, we you would such And for opportunities considering the that monitor telecom structure our And below and sale in of that remind impact and around continue XXXX of evolution would renegotiation Q&A, the many the to that we our that opportunity, would objective third Just

exchange As certainly billion opportunities are Daniel the team. still And our evaluating and paying maturities and we our be current July, said, meeting are in can according have affect And for dividends participating. for lastly, by and to well equity by thank the will for our and preferably we no leverage. already now Once exposure And diluted debt financial again, we that M&A, Q&A. of on brownfield start this interest BRLX.X very the we year. you capacity will approved shareholders

Operator

very much. Thank you

We Instructions] will and start analysts. session investors the Q&A for now [Operator

Unidentified Analyst

your projections future What is What [indiscernible]. dividends? regarding future about dividends?

Daniel Pimentel Slaviero

that, [Ph]. X.X, a The to Lucijo referred linked it than and higher flow mandatory effect around flow, XX% the investment and cash payout extraordinary X.X. already XX% to our lower to XX% and between is discounted capacity than the XX% net According of Moura is is that would dividend cash available and X.X%. one. Hi, discounted be XX% the it, policy Leverage

policy So, we within with XX%. the be that X.X. And towards parameters would of a ideal the target going itself believe the are stay of to thing dividend we us for

in Let's justifies move. say XX% and any medium Either towards payment run we with dividends. no have X.X run, of payout. opportunity excellent avoid the extraordinary there is an we that short Anyway,

other M&A shareholders. our very and that will company for the are and And to results for deals So, opportunities good we bring have analyzing. new this this lead we opportunities for

Operator

Instructions] [Operator

Unidentified Analyst

said sell should going June, the within will the have your would concessions about renewed Compagas? result. in of know in you you the the be you I that like are afternoon. XXXX? you process And sale stake to believe still to the able Compagas first Good Do to also for Congratulations half? start

Daniel Pimentel Slaviero

of analyst name an excellent The is question. This mentioned. was not the

days be taking more or because the and So, the we than part the process will after state It's to XXX hands in the have office the to Compagas. on time we sign organize final to of be we auction for legal the of have will but expect XX% of would still the an the is has -- June that that like interest longer the review renewal agency, is organized. requirements taking presented finished, And it the the by BX already of auction XXXX. and we process general [indiscernible]. sell investment We could over XX-year information the that an renewal and bonus in going and CapEx grand X.X% and of be the the around Parana other the are it to have that the and then controlling be in XXXX we around the to we believe conditions estimate is possible

the the say of approval sales. Let's

the quarter leave simple -- the assembly But assembly. business. approval businesses will XXXX, need that generation. the to Parana first because by majority course, intend to on a by later we done, our are We not energy be this state of than is core focus the have the no Of believe we

focusing to our company, -- returns and business. to distribute that business generate for our we for by core shareholders the is believe core Our the we capacity to generate, have on better

Operator

the for of what come should the [indiscernible] remuneration later that result. XXXX? before to compare about So date July I

Daniel Pimentel Slaviero

about answer are little year, was to up approved date And We the after this was and date, the yet. bring endeavor best to Matthews payment what end Moura, talk July, forward don't we have Could question our of we final bit. a making a this the July.

this, during of next to the bring intend Board submit we forward. to our to this going validate are We to this Directors meeting but

Operator

Instructions] be negative X, With the be negotiated? data rates been company? [Operator [indiscernible] they the have interest X Thank is was already so there May asking a started to hike the would you. in impact for

Daniel Pimentel Slaviero

the a increase hike XX.XX are that unfortunately SELIC is BRLXXX the debt [ph] based our euro in Central there have and But stabilized debt. there no because the We unless change they results or on Leandro of the Bank. other impacting our already on in believe a or million, are and cost the monetary or impact, is of this the is part SELIC as significant in significant we was debts a any is authority unfortunately significant But the the dollar CDI. said, currency. there all CDE

only is debt in Our real.

extent. protects this the to company So an

Operator

shareholder. Electric you smart yourselves in Okay the XG wish you for success. this electric preparing for all are the mobility? mobility, infrastructure what grid? revolution I but [indiscernible] about best

Daniel Pimentel Slaviero

Paranaguá I have whatsoever Matthew, a totally partner –– on fleet trucks why always side electric reinforce in giving We analyzing the and we And itself later are no there to that first Fadigas. of were may that And And Parana monitored and this whole the is it will are And development make doubt Copel XXX position part we you no need you – a endeavor this will and by have corridor that is so strides that the extend will in very we electric have great future is strategy coming buses try and waste innovation be electric opportunities mobility of that over is be our or And of our cars because will this strategy, on any to terms first this be in could connecting of a in robust cetera trend country. to at we distribution is the this our company other Volt, north. infrastructure electromobility. to say. that charges this in support so the But the doubt, the and consumption infrastructure. no Copel growth dealing to something be hybrid in with spirit. et specific that startups infrastructure, whatsoever we kilometers are developing our electromobility the of be always.

Operator

the generation? In you investments do in biomass [indiscernible]. Rafael intend Instructions] to invest [Operator

Adriano Rudek de Moura

and afternoon, are Copel as of wind, of the the the studying namely well biogas, of Good is supply and of and the we are both we generation in PDE as the exist and Rafael. first is all cost planning a the electric energy the possibility guidelines biomass transmission The according pressure all of under looking said, Daniel generation part investment also very of This expansion at is expansion also or the opportunities as because as important expenses. segments studying increase generation sugarcane, quarter ministry, urban biomass expansion of as Copel structuring well group. Net strategies the electric to income of waste. photovoltaic was because opportunities by of energy question the it for the

Operator

intend What your do expenses to regarding operating do and costs? we

Daniel Pimentel Slaviero

was it So company. cost the in in increase operating the not

we On reduced all the of X% that oppositely, program And what other a we one quite dismissal in PMSO dropped cost, dropped PDI. X%. because our a had is was the place, this which major the payroll voluntary program highest we by and the hand call

company. So the over left XXX people

the company direct has So the X,XXX than the less or time. headcount group first for

cost had to the opposite – and increase the – We of costs. quality increases was issue quite of the do reduction efficiency delivered important this can this an very what not financial company. detriment So we a the part of in

be the having possibility viewpoint, the of they the money revenue what projects Parana was the financial at was the XXXX this rates. because our debt the from we very mentioned, in was to part in increase or was cash it lost with renegotiated, prepayment, of, it attractive. when The that of this that and was make with the interest is the think the account, But money first of have. the CRC did. And And a rates have debtor the And invested can the of the of XXXX the because I debt government CRC one in as and were time, restatement the company. the ahead, spite

people been where have to now the can you such, a was areas a But to and to So We the out implement reduces we be directly substations when the make It concern. macro the centralized concern regulatory the believe, carried customers. grid the actions. not spot more big one labor, reading investment services, impacting it as And very you in ones our inflation with more your remote human GeT, you And when analyze, in might had. lot. control center this intervention. we side, the programs three is very to we the this are case have when costs all with more other and all we we specific, the out that we we improve and services have be the is operations voluntary the here, materials. just as of with was going mainly benefits operations, would conclude, asset Curitiba. all and of making, already some have objective said the mode quite single but adequate. be believe for costs, you drinking so as base has two-digit investment was And plan to comment all the artificial it on have you there close over have everything if from operation, don't save strong the us. room to you on, dismissal, strict It the and or the and might our And must carrying have as mainly that in to building. intelligence our as need improves unifying certain unified, the been G&T, And that in closer ones to They you but a

things We externally parties third done, have that relationship in-house. a been building more a and efficient be can with outsourcing few than

Operator

sale? the be the using funds you from Compagas will How [indiscernible]

Daniel Pimentel Slaviero

Not, states believe do for in be company such exist, energy as energy. has premium interest the business. is in the the will market This we we gas will in minimum certainty commercialization, going not That our price in our we in had kind whether Parana, some auctions be will final have about yet. have is don't will not guidelines the I the sale know only a a calculation but the this is to been strategy. in of that, distribution the we that transmission but that that And be do the or of in telecom, of increase We not it and investing we that have opened.

Operator

sustainable about and the in quarter what according to what one? projection terms, is in energy, of matrix? the target keeping this percentage thermal matrix to the project Will investment talked the is for What the you And about you start-ups? [indiscernible] the be generation last for XXXX, develop your

Daniel Pimentel Slaviero

Thank answer you that what will to going add question to I'm you. Flavio the [ph]. Thank of part I say.

of in or First years and energies big Wind namely totally return is making renewable XX% our renewable, we have pure all, matrix and very place. the Jandaira a in investment few last in been

our have will XX% the from We source. generation of

years we thermal. renewable have for XX% five of consultancy and and the least solar, with order country and pure working which vision our to the wind and is is Copel are is that in for with a going good XXXX. are one objective for the years three there is us build dealing external to companies debate company us Well, Our to major very in us in on at

end footprint country. I current This end bring We very energy already be have still be a important. is the we last the as Gas or have plan will We Copel year, of position as is call. during stronger said that ongoing. doubt an besides gas vision a wishes have continue there to a discussion. to be year that that a If country is already able Araucaria. And this bigger no have this will a discussion whatsoever certainly the last of matrix for and the the to to strategic. we're not. TPP auction and that supply. auction year the are a It geopolitics our to whether important ongoing by really asset at delivered to evaluating and of a have in results participate we we portfolio, the regardless, the the on necessary or intend or excellent participate the it depend world. Araucaria the medium have will a But expand our this And is to in long-term and the supplement going still we in UEGA we of very There capacity be auction, competitive was condition XXXX. It conditions. an of was will to for an expect

to innovation the part. Just conclude

linked innovation We will the and a our in say distribution this income. has because partnership really have officer, will are the And to you mean, be bring to our presented research to ones number could Copel so program get operating we generation and new And mean on [indiscernible] ecosystem. or or And world first brings the the startup to much and businesses closer a our or gives board, development. it us even very of the -- I about and selected improve to terms contract companies May two very investment. to service us the services the been new opportunity phase we new on XX into and enthusiastic to new XXst, area, on a this options to the

Operator

Please by. stand

new waiting end. questions. are to for come session We an has Q&A The

will Daniel Slaviero closing the So make remarks.

Daniel Pimentel Slaviero

are as will macroeconomic world, the the very bringing will and biggest again, generation shareholders of much But another we to XXXX. very we to analysts colleagues are as participation will which the the specifically have the believe thank continue and Once, the to to in contribute in trader challenging. all to to delivered doing. been the and our our the eyes all colleagues distribution, of we course, thank here, your it in is we is I management. and and better our of the be our thank Copel business the continue holding maintenance you and have guidelines careful to is to of the highlight we our But, have the with for of because future benefits one the very general. and services to have that in Thank country. customers for people development happy company as society we year very I austerity, And to but also continue that company subsidiaries. we you during results have all situation well, not much. The this situation, quarter. also only we Brazil GeT, happy very sound challenging the And special very I because be to of the a our that start quarter are delivering results of new of deliver everything areas cycle turned call in energy to this investors

Operator

Copel's come conference to for good Thank participation. Thank wish a your much call you you very you. We day. an has very end.

Daniel Pimentel Slaviero	Chief Executive Officer
Adriano Rudek de Moura	Chief Financial Officer

Companhia Paranaense de Energia - COPEL (ELP) 13 May 222022 Q1 Earnings call transcript