Companhia Paranaense de Energia - COPEL (ELP) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 10, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning ladies and gentlemen. Welcome to Companhia Paranaense de Energia - COPEL video conference to discuss the results of the First Quarter (sic) [Second Quarter] of 2022. This video conference is being recorded and the replay may be accessed at the company's website ri.copel.com. And the presentation is also available for download. We would like to inform you that participants will be in listen-only mode during the video conference, and afterwards we will have a Q&A session when further instructions will be given.

Before proceeding, I would like to reiterate that forward-looking statements are based on beliefs and assumptions of Copel's management and information currently available to the company. These forward-looking statements may involve risks and uncertainties as they refer to a future event and therefore depend on circumstances that may or may not occur. Investors, analysts and journalists should understand that events related to the macroeconomic environment the segment and other factors may be the result that the materially different from those expressed in such forward-looking statement.

Today with us we have Mr. Daniel Pimentel Slaviero, CEO of Copel and Mr. Adriano Rudek de Moura, CFO of Copel and directors of subsidiaries, I would like now to turn the floor over to Mr. Daniel Pimentel Slaviero who will start the presentation, you may proceed.

Daniel Pimentel Slaviero

Good morning. Thank you all very much for participating in our video conference. And I would like to start the presentation with a pleasure of sharing the delivery of another quarter of consistent operating results, in which we reached adjusted EBITDA of 1.5 billion representing a growth of over 9% in relation to the same quarter in '21, followed by a very strong cash generation of 1.4 billion. And I would like to highlight that on June 5, we paid 1.6 billion in earnings regarding the year of 2021. And with a total referring to the result of the previous year with a dividend yield of approximately 16%. We continue very well in relation to our operating performance at the end of June.

Federal law 14-385 was enacted which disciplined the destination of PIS/COFINS values, which were mandatorily collected by electricity distribution companies over the CMS, and it was recognized as unjustified by judiciary. And although it lacks regulation, it was based on the revision of risk assessment by the management that the provisioning around 1.2 billion with no immediate cash effect. And this had a negative impact on the net result of the company in the second quarter '22. And this review and the position were supported by our legal advisors of Copel. I would like to reiterate that the company is evaluating the necessary measures including judicial measures to be taken because of the protection needed for something that has already be judged.