Copel Records Record EBITDA of R$ 8.4 billion in 2021 (+52.1% vs. 2020)

Rhea-AI Summary

In 4Q21, Copel reported an adjusted EBITDA of R$ 1,039.5 million, a decline of 26.6% from R$ 1,417.2 million in 4Q20. This drop was mainly driven by a 55% reduction in the dispatch from the Araucária Thermoelectric Power Plant, significantly impacting energy sales. Additionally, increased costs due to a water deficit and higher provisions for credit losses were notable factors. Copel’s overall EBITDA for 2021 was a record of R$ 8.4 billion, marking a 52.1% increase from the previous year.

Positive

• Record EBITDA of R$ 8.4 billion for 2021, up 52.1% from 2020.

Negative

• Adjusted EBITDA in 4Q21 decreased by 26.6% compared to 4Q20.
• 55% reduction in TPP Araucária dispatch (360 GWh in 4Q21 vs. 797 GWh in 4Q20).
• 142.7% increase in costs for electricity purchased for resale due to water deficit.
• Increased costs of R$ 66.3 million for third-party services, primarily maintenance.
• R$ 142.1 million negative impact from provisions and reversals predominantly linked to litigation.

CURITIBA, Brazil, March 23, 2022 /PRNewswire/ -- Adjusted EBITDA, excluding non-recurring items, reached R$ 1,039.5 million in 4Q21, 26.6% lower than the R$ 1,417.2 million recorded in 4Q20. This reduction is mainly due to the drop in the results of the Araucária Thermoelectric Power Plant and Copel GeT, partially offset by the good result of Copel Distribuição. The main factors that explain the reduction are:

1. the 55% reduction in TPP Araucária dispatch (360 GWh in 4Q21 against 797 GWh in 4Q20) combined with a lower net margin on energy sales for the period, as in 4Q21 the unit variable cost (CVU) no longer included the portion of the plant's fixed costs, as such costs had already been recovered in previous quarters;
2. the water deficit, with low GSF (67.71% compared to 69.43% in 4Q20), resulting in a 142.7% growth in costs with "electricity purchased for resale" by Copel GET;
3. the positive effect of R$ 68.7 million on EBITDA in 4Q20, referring to the result of Copel Telecomunicações, which is no longer part of the Copel group since August 2021;
4. the R$ 66.3 million increase in costs with third-party services, mainly due to the R$ 42.9 million maintenance of the Araucária thermoelectric turbine; and
5. the negative effect of R$ 142.1 million in the "provisions and reversals" line, mainly due to the increase of R$ 39.4 million in the estimate of expected credit losses and the recording of R$ 114.0 million in provisions for litigation, basically due to civil lawsuits, with emphasis on R$ 29.9 million referring to the arbitration process related to the Mauá plant.

The complete release is available at the Company's website: ir.copel.com

Conference Call: March 23, 2022 – Wednesday

English: 1:00 p.m. – UST
               Broadcast through Internet

Live webcast at ir.copel.com

Contacts: Investor Relations – COPEL
Phone: (55 41) 3331-4011
E-mail:ri@copel.com 

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SOURCE Copel - Companhia Paranaense de Energia

FAQ

What was Copel's adjusted EBITDA for 4Q21?

Copel's adjusted EBITDA for 4Q21 was R$ 1,039.5 million.

How much did Copel's EBITDA decline in 4Q21 compared to 4Q20?

Adjusted EBITDA in 4Q21 declined by 26.6% compared to 4Q20.

What factors contributed to the decrease in Copel's EBITDA?

Factors included a 55% reduction in TPP Araucária dispatch, increased costs related to electricity purchased for resale, and higher provisions for litigation.

What was the total EBITDA for Copel in 2021?

Copel's total EBITDA for 2021 was a record R$ 8.4 billion, up 52.1% from 2020.

What challenges did Copel face in the fourth quarter of 2021?

Challenges included reduced energy dispatch, increased operational costs, and significant provisions affecting financial performance.