Copel reports EBITDA of R$4.5 billion in 3Q21

Rhea-AI Summary

Copel reported a substantial increase in EBITDA for 3Q21, reaching R$4,492.4 million, a 274.8% increase from R$1,198.6 million in 3Q20. This growth is significantly attributed to a R$1,723.9 million gain from the divestment of Copel Telecomunicações and R$1,570.5 million from renegotiating hydrological risk. Adjusted EBITDA rose to R$1,286.7 million, up 3.8% from R$1,240.1 million in the prior year, fueled by energy sales and tariff adjustments, although partly offset by a 125.5% rise in electricity costs due to water scarcity.

Positive

• EBITDA of R$4,492.4 million, a 274.8% increase compared to R$1,198.6 million in 3Q20.
• Gain of R$1,723.9 million from the divestment of Copel Telecomunicações.
• R$1,570.5 million impact from renegotiation of hydrological risk.
• Adjusted EBITDA at R$1,286.7 million, an increase of 3.8% from R$1,240.1 million in 3Q20.
• Increased energy sales volume and tariff adjustments contributing to growth.

Negative

• 125.5% increase in electricity purchasing costs due to water deficits.

CURITIBA, Brazil, Nov. 11, 2021 /PRNewswire/ -- Copel's EBITDA, encompassing all factors, including non-recurring and discontinued operations, reached R$4,492.4 million, an increase of 274.8% compared to the R$1,198.6 million recorded in 3Q20. A significant part of this result reflects the positive effect caused by the gain on the divestment of Copel Telecomunicações, with an impact of R$1,723.9 million, and by the renegotiation of the hydrological risk (GSF), in the amount of R$1,570.5 million. Adjusted EBITDA, excluding non-recurring items, reached R$1,286.7 million in 3Q21, 3.8% higher than the R$1,240.1 million recorded in 3Q20. This growth is mainly due to (i) the sale of the 641 GWh of energy produced by UTE Araucária ("UEGA"), (ii) the 8.3% growth in the wire market and the readjustment implemented after the 5th cycle of Copel Distribuição's tariff review, (iii) the increase in remuneration on transmission assets due to inflation, the greater asset base due to the RBSE reprofiling and new projects in operation, and (iv) the higher volume of energy sold in contracts bilateral and for free consumers by Copel Mercado Livre. These events were partially offset, mainly, by the 125.5% increase in the cost of electricity purchased for resale due to the water deficit in the period (average GSF of 51.1% in 3Q21 against 66.0% in 3Q20 and average PLD of R$581.7/MWh in 3Q21 against R$91.68/MWh in 3Q20).

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

Conference Call: August 12, 2021 – THURSDAY

English: 12:00 p.m. – UST 
Broadcast through Internet

Live webcast at ir.copel.com

 

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SOURCE Copel

FAQ

What were Copel's financial results for 3Q21?

Copel reported EBITDA of R$4,492.4 million for 3Q21, a 274.8% increase compared to R$1,198.6 million in 3Q20.

What contributed to Copel's EBITDA growth in 3Q21?

The growth was mainly driven by a R$1,723.9 million gain from the divestment of Copel Telecomunicações and R$1,570.5 million from renegotiating hydrological risks.

What was the adjusted EBITDA for Copel in 3Q21?

Adjusted EBITDA for Copel in 3Q21 reached R$1,286.7 million, up 3.8% from R$1,240.1 million in 3Q20.

How did electricity costs impact Copel's financial performance?

Electricity purchasing costs increased by 125.5% due to water deficits, affecting overall profitability.

What factors led to the growth of Copel's adjusted EBITDA?

Growth in adjusted EBITDA was supported by increased energy sales and tariff readjustments.