Copel reports adjusted EBITDA of R$1.5 billion in the fourth quarter

Rhea-AI Summary

Companhia Paranaense de Energia - Copel (NYSE: ELPVY, ELP) announced its Q4 2020 results, reporting an EBITDA of R$ 1,308.7 million, a 26.5% increase from the previous year. Key drivers included an 82.5% growth in electricity sales to distributors and a 14.7% rise in grid usage due to tariff adjustments. Adjusted EBITDA reached R$ 1,489.1 million, up 50.6% year-over-year. The company will hold a conference call on March 18, 2021, for further insights into these results.

Positive

• Q4 2020 EBITDA increased to R$ 1,308.7 million, 26.5% higher YoY.
• 82.5% growth in electricity sales to distributors, driven by 564 GWh sold from UTE Araucária.
• Adjusted EBITDA reached R$ 1,489.1 million, up 50.6% YoY.

Negative

• Electricity purchased for resale increased by 32.5%, impacting overall costs.

CURITIBA, Brazil, March 18, 2021 /PRNewswire/ -- Companhia Paranaense de Energia - Copel (NYSE: ELPVY, ELP / Latibex: XCOP / B3: CPLE3, CPLE5, CPLE6), a company that generates, transmits, distributes and sells power, announces its results for the fourth quarter of 2020 and would like to invite you all for its conference call on Thursday to discuss its results.

In 4Q20, earnings before interest, taxes, depreciation and amortization reached R$ 1,308.7 million, 26.5% higher than the R$ 1,034.5 million recorded in 4Q19. This result is basically due to the 82.5% growth in the "electricity sales to distributors" line, mainly due to the commercialization of 564 GWh of energy produced by UTE Araucária ("UEGA") in 4Q20 and the higher volume of energy sold in bilateral contracts by Copel Mercado Livre; (ii) the 14.7% increase in the "use of the main distribution and transmission grid" line, a consequence of the 3.3% growth in the distributor's grid market and the periodic tariff review and tariff readjustment in transmission contracts , and by the net record of R$ 178.2 million in reversals in the "provisions and reversals" line, partially offset by the 32.5% increase in "electricity purchased for resale". Excluding non-recurring items, adjusted EBITDA was R$ 1,489.1 million, 50.6% higher than that recorded in 4Q19.

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

Conference Call: March 18, 2021 – THURSDAY

English: 13:00 p.m. – UST 
Dial in number: +1 646 843 6054
                        Access Code: Copel
(Simultaneous translation into English)

Live webcast at ir.copel.com

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

View original content:http://www.prnewswire.com/news-releases/copel-reports-adjusted-ebitda-of-r1-5-billion-in-the-fourth-quarter-301249816.html

SOURCE Copel - Companhia Paranaense de Energia

FAQ

What were Copel's Q4 2020 earnings results?

In Q4 2020, Copel reported an EBITDA of R$ 1,308.7 million.

How much did Copel's adjusted EBITDA increase in Q4 2020?

Copel's adjusted EBITDA increased by 50.6% year-over-year to R$ 1,489.1 million.

When is Copel's conference call regarding Q4 2020 results?

Copel's conference call is scheduled for March 18, 2021.

What contributed to Copel's growth in electricity sales in Q4 2020?

The growth was primarily due to a significant increase in sales to distributors, driven by energy production from UTE Araucária.

What challenges did Copel face in Q4 2020?

Copel experienced a 32.5% increase in electricity purchased for resale, affecting its operational costs.