Companhia Paranaense de Energia
, also known as COPEL,
reported its financial results for the first quarter 2013 on May
16, 2013. The company's net income in the quarter increased 24.7%
year over year to R$398.7 million (US$199.4 million). COPEL's
earnings per share came in at R$1.46 or US$0.73 ADR. This
compares favorably with US$0.66 per ADR reported in the year-ago
quarter and the Zacks Consensus Estimate of US$0.72 per ADR.
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COPEL reported a 17.6% year over year increase in its net
operating revenues that settled at R$2,380.4 million (US$1,190.2
million) in the quarter.
Revenue improvement was witnessed in almost all the business
categories of COPEL: Electricity sales to final customers grew
26.8%; sales to distributors surged 72.1%; telecommunications
revenue increased 6.0%; distribution of piped gas spiked 13.4%;
construction revenue rose by 72.2% and other operating revenues
shot up 93.5%. An exception to these was a 31.5% decline in
revenue generated from the use of main transmission.
In the first quarter 2013, operating costs and expenses soared
19.1% year over year and settled at R$1,882.0 million (US$941.0
million), due primarily to higher expenses in the following
categories: 39.5% rise in electricity purchased for resale, 6.3%
in personnel and management expenses, 5.8% in pension and health
plans, 17.1% in materials and supplies, 25.1% in natural gas and
supplies for the gas business and 88.5% in construction costs,
Higher costs in the above-mentioned categories were partially
offset by an 11.7% decline in expenses related to the use of main
transmission grid, 16.0% in materials and supplies for power, and
71.2% fall in provisions and reversals.
EBITDA increased 10.4% to R$664.9 million (US$332.5 million) with
an EBITDA margin of 27.9% versus 29.7% in the year-ago quarter.
Exiting the first quarter 2013, COPEL had cash and cash
equivalents balance of approximately R$1,206.1 million (US$597.1
million), down 17.3% sequentially. Also, loans and financing
balance plummeted 8.7% to R$2,728.1 million (US$1,350.5 million).
COPEL in the quarter used cash flow of R$8.6 million (US$4.3
million) from operating activities as against cash flow
generation of R$46.2 million (US$26.1 million) in the year-ago
quarter. Capital spending on the purchase of property, plant and
equipment was R$10.2 million (US$5.1 million), reflecting a 95.3%
decline from the year-ago quarter.
For the year 2013, COPEL plans to spend approximately R$1,922.8
million, with roughly 45.1% on Generation and Transmission, 51.3%
on Distribution and 3.6% 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 #5
Stocks to watch out for in the industry are
CPFL Energia S.A.
Empresa Nacional de Electricidad S.A.
), each with a Zacks Rank #1 (Strong Buy) while
) holds a Zacks Rank #2 (Buy).