Companhia Paranaense De Energia (ELP): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


COPEL has solid long-term growth prospects, especially in the light of an anticipated rise of 5.9% in the annual electricity demand in Brazil. Also, with revival in the economic health of the country, huge investments are being made for infrastructural developments that, in turn, will boost electricity demand. To benefit from growing electricity needs, COPEL has planned investments worth roughly R$2.6 billion for 2014, in order to improve its electricity generation capacity. In this regard, the recent agreement for a 49% stake acquisition in Voltalia's wind farm complex is worth mentioning. Considering all these factors as well as the company's stellar performance in first-quarter 2014, with net earnings and revenues increasing by 46% and 28% respectively, we upgrade our recommendation from Neutral to Outperform on COPEL.


Companhia Paranaense de Energia (ELP), also known as COPEL, is a fully integrated electric utility in Brazil. The company is engaged in the generation, transmission and distribution of electricity to the state of Paran . The provincial government of the state controls about 58.6% of the shares of COPEL. The company directly serves approximately 4.2 million customers in 395 municipalities and 1,113 localities.

COPEL has roughly 5,640 megawatt (MW) of generating capacity, 99% of which is hydroelectric. The company owns 21 power plants, including 19 hydroelectric, 1 thermal and 1 wind plant. It has interests in as many as nine power generation companies. COPEL also provides telecommunications, natural gas, engineering, water and sanitation services.

COPEL operates primarily through its five subsidiaries, including Copel Gera o e Transmiss o (GeT deals with generation and transmission of electricity), Copel Distribui o (DIS deals with distribution of electricity), Copel Telecom (TEL deals with the telecommunication business), Copel Participa es (manages the company's interests in special purpose entities in the energy, gas, telecommunication, sanitation and service sectors) and Copel Renov veis (deals with the company's investments in renewable energy generation projects).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: ELP

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