Companhia Paranaense de Energia
), also known as COPEL, reported its financial results for 2012
on Mar 25, 2013. The company's net income in the year fell 38.3%
year over year to R$726.5 million (US$352.7 million). Copel's
earnings per share came in at R$2.65 (or equivalent to US$1.29
per ADR) as compared with R$4.30 per share in 2011.
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Net operating revenues in 2012 increased 9.7% year over year to
R$8,532.2 million (US$4,141.8 million).
Revenue improvement was witnessed across all of business
categories of COPEL: Electricity sales to final customers grew
about 12.6%; sales to distributors surged 12.8%; use of main
transmission grid climbed 2.5%; telecommunications revenue
increased 7.2%; distribution of piped gas spiked 18.6%;
construction revenue rose by 6.3% and other operating revenues
shot up 93.3%.
During 2012, operating costs and expenses went up 16.5% year over
year and came at R$7,542.7 million (US$3,661.5 million). The
increase was driven by higher expenses in the following
categories: 30.4% rise in electricity purchased for resale, 22.1%
in expenses related to use of main transmission grid, 26.9% in
personnel and management expenses, 21.2% in pension and health
plans, 32.5% in natural gas and supplies for the gas business and
1.96% in material and supplies for the gas operations, among
Higher costs in the above-mentioned categories were partially
offset by an 18.4% decline in material costs, 24.5% fall in
provisions and reversals and a 17.9% decline in other operating
costs and expenses.
EBITDA plummeted 18.9% to R$1,551.1 million (US$753.0 million)
with an EBITDA margin of 18.2% versus 24.6% in the year-ago
COPEL's cash and cash equivalents in the fourth quarter of 2012
increased drastically by 97.9% over the sequential quarter and
settled at R$1,483.1 million (US$760.6 million) at the end of the
quarter. Loans and financing, on the other hand, increased 49.8%
sequentially to R$2,987.5 million (US$1,532.1 million).
COPEL generated cash flow of $1,395.2 million (US$677.3 million)
from operating activities in 2012, up 21.5% year over year.
Capital spending on purchase of property, plant and equipment was
R$875.6 million (US$425.0 million), reflecting an increase of
6.5% year over year.
For the year 2013, COPEL plans to spend approximately R$1,981.4
million, with roughly 46.7% on Generation and Transmission, 49.9%
on Distribution and 3.4% on Telecommunications.
Companhia Paranaense de Energia is a fully integrated electric
utility of Brazil engaged in the generation, transmission, and
distribution of electricity to the State of Paraná. The
provincial government of the State of Paraná controls about 58.6%
of the shares of COPEL. The stock currently bears a Zacks Rank #3
Other stocks to watch out for in the industry are
Brookfield Infrastructure Partners L.P.
Pike Electric Corporation
Otter Tail Corporation
), each holding a Zacks Rank #1 (Strong Buy).