Copel (CPLE6) commits to delivering dividends and growth together in meeting with investors; see how – Money Times


Copel

Copel Day presented a commitment to dividends and growth as a united group (Image: Copel)

A Copel (CPLE6) is committed to delivering dividends e growth together, assured the company's investor relations director, Luiz Mello, during Copel Day, held this Wednesday (18).

Part of a naturally more stable sector, Copel's presentation highlighted the company's results, which recorded an increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in recent quarters, rising from a level of R$3.1 billion in 2018 to R$5.8 billion in 2023.

Mello highlighted that the company is on a path to increasing investments, mainly in the distribution network.

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The IR director recalls that the company had one of the most depreciated networks in the sector, highlighting that there was a need to invest in improving quality so that distribution would become a relevant part of the asset base and consequently improve shareholder remuneration.

He mentions two main programs: Paraná Trifásico, which aims to reach 25 thousand kilometers of new networks, and the Smart Grid, which allows remote operation. According to Mello, in 2025, Copel should have another high investment cycle, given that it is the last year of the tariff cycle. “This is reflected, then, in our expectations, in our remuneration base. We will not do anything simply for the sake of growth. The goal here is to attract value”, he stated.

It is worth remembering that the Paraná company was a state-owned company, having been privatized last year, when it became a corporation.

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Dividends, New Market, divestments and focus on distribution

During Copel Day, the IR director highlighted that the company intends to enter the Novo Mercado, a listing segment on the Brazilian stock exchange with the most rigorous corporate governance standards in the world. B3as part of its strategic scope.

“We depend on some other factors, but the company plans to evolve into the New Market. Having done this homework, the next step is expansion. We have organic growth, which has already been happening in the distribution segment, but we will also evaluate growth opportunities.”

In this sense, he points out that the company is attentive to opportunities that arise within the core business of the company, which is focused on distribution, although it also operates in the generation, transmission and sale of electrical energy.

“Throughout this process, it is important to mention that we want to have a balance between dividend payments and growth. And it will be done in a very simple way. We will always look for good investments, with a rate of return that adds value to the stock, paying dividends according to the policy. But, if I do not have investments to make, it is clear that the tendency, then, is to pay more dividends.”

This week, the company completed the divestment of its entire stake in Companhia Paranaense de Gás (Compagas), having received 40% of the total amount of R$906 million, adjusted as provided for in the contract considering the base date of December 31, 2023.

According to him, mainly small hydroelectric plants are undergoing an open process for divestment.

He adds that, according to the current dividend policy, half of the proceeds from the sale will be directed to shareholders, while the remainder will be allocated at a meeting with the board of directors.

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