6-K 1 elppr1h06_6k.htm COPEL ANNOUNCES FIRST HALF 2006 RESULTS Provided By MZ Data Products
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of August, 2006

Commission File Number 1-14668
 

 
COMPANHIA PARANAENSE DE ENERGIA
(Exact name of registrant as specified in its charter)
 

Energy Company of Paraná
(Translation of Registrant's name into English)
 

Rua Coronel Dulcídio, 800
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 322-3535
(Address of principal executive offices)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____



FOR IMEDIATE RELEASE

COPEL ANNOUNCES FIRST HALF 2006 RESULTS

Curitiba, Brazil, August 14, 2006- Companhia Paranaense de Energia- COPEL (NYSE: ELP / LATIBEX: XCOP / BOVESPA: CPLE3, CPLE5, CPLE6), a company that generates, transmits, and distributes power in the State of Paraná, announces today its operating results for the first half of 2006. All figures included in this report are in thousands of Reais and were prepared in accordance with Brazilian GAAP (corporate law).

HIGHLIGHTS 
  • COPEL’s consolidated financial statements present, in addition to the figures of the wholly-owned subsidiaries (COPEL Geração, COPEL Transmissão, COPEL Distribuição, COPEL Telecomunicações and COPEL Participações), the figures of Compagas, Elejor and UEG Araucária.

  • On April 13, through Order 769/2006, Aneel approved the constitution of guarantees by COPEL in order to guarantee the agreement concerning gas purchases for the Araucária Thermoeletric Plant (UEG Araucária). As a result, the Company reversed the payable overage. The final effect of this reversal totaled R$ 424 million.

  • Net Operating Revenues: R$2,605 million - 11% up on the same period in 2005.

  • Operating Income: R$1,212 million, versus R$ 322 million in the 1H05.

  • Net Income: R$740 million (R$2.71 per thousand shares), versus R$197 million in the first six months of 2005.

  • EBITDA (earnings before interest, taxes, depreciation and amortization): R$ 1,037 million, 112% more than the R$ 488 million recorded in the 1H05. Excluding the agreement concerning the supply of gas to the Araucaria Thermal Power Plant effects, EBITDA for the first half of 2006 would be R$738 million.

  • Return on Equity: 27% p.a. Excluding the reversal effects the return on Equity would be 11%.

  • Copel adjusted its retail tariffs by 5.12% on average, as of June 24.

  • Billed power consumption dipped 0.6% year-on-year: Copel Distribuição’s grid market (TUSD), comprising the captive market and all free customers within the Company’s concession area, grew by 3%.

  • On May 31, Copel assumed ownership of UEG Araucária, ending the judicial dispute with El Paso.

Investor Relations – Copel
ri@copel.com
www.copel.com/ir

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Companhia Paranaense de Energia – COPEL
1st Half 2006 Results

MAIN EVENTS 

- Results: COPEL closed the first half with a net income of R$ 740.4 million (R$ 2.71 per thousand shares). Second-quarter net income totaled R$ 569.7 million.

- Reversal of provisions for the gas purchase agreement: As a result of the agreement entered into by COPEL, Compagas and Petrobras for gas supply to Araucaria and the approval by Aneel, through Order 769/2006 of April 13th, 2006, of the guarantees put up by COPEL, the Company reversed provisions, that had been constituted for this purpose, as follows:

    R$ million 
HISTORY    AMOUNTS 
     Operating Expenses – Raw-materials    328.5 
     Operating Expenses - PASEP/COFINS    (30.4)
OPERATING RESULT    298.1 
     Financial Revenues – Discount Granted    283.2 
     Financial Expenses – Fine Reversal    72.7 
FINANCIAL RESULT    355.9 
     Income Tax and Social Contribution    (230.2)
EFFECT IN THE RESULT    423.8 

- Tariff adjustment: On June 24, COPEL adjusted its retail tariffs by 5.12% on average, 4.91% of which referring to the annual tariff (IRT) and 0.21%416,4 to the tariff’s external financial components.

- COPEL Rating: Copel's rating, measured by Fitch Ratings, went up on June 29, 2006 from A+ to AA-, due to the good results presented by the Company in the last months.

- Electric power market: Copel’s first-half billed power consumption dipped by 0.6% year-on-year. Consumption by the residential, commercial and rural segments increased by 2.6%, 4.1% and 2.4%, respectively, while that of the industrial segment fell by 6.0% due to the slowdown in agribusiness caused by drought and the consequent harvest failure, plus the appreciation of the Real against the US Dollar, which jeopardized exports.

Copel Distribuição’s grid market (TUSD) grew by 3.0% over the 1H06.

- UEG Araucária: On May 31, 2006, Copel assumed ownership of UEG Araucária, ending the judicial and arbitration disputes with El Paso over the agreements covering the electricity to be sold by the plant, which had dragged on for almost three and a half years in Brazil and France.

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In fact, the severity of the drought that affects the Brazilian South Region led the Ministry of Mines and Energy and the ONS – National Electric System Operator -ask ed Copel to initiate a series of precautionary measures, including a plant start-up. This plant start-up is monitored by specialists from the equipment manufacturers. This is regarded as necessary due to the lengthy period (since the beginning of 2003) during which the facility has been in hibernation. All the inspections undertaken to date show that the plant has been adequately maintained by Copel and the emergency procedure requested by the authorities should occur within the next few days.

- Workforce: COPEL closed the first half with a workforce of 7,991.

On June 30, COPEL Distribuição recorded a customer-to-employee ratio of 568 and Compagas, Elejor and UEG Araucária, all Copel subsidiaries, had 66, 4 and 5 employees, respectively.

COPEL’s workforce is distributed per business unit as follows:
COPEL Geração = 945 employees
COPEL Transmissão = 913 employees
COPEL Distribuição = 5,804 employees
COPEL Telecomunicações = 302 employees
COPEL Participações = 27 employees

- Aneel’s Consumer Satisfaction Index (IASC) 2005: Following a survey of 19,200 consumers nationwide, Aneel appointed Copel as the best of Brazil’s large-scale power utilities.

COPEL received an approval rating of 74.44 by consumers in its operating area, the highest among the big companies and in the south of Brazil, even surpassing the average satisfaction rating among US consumers, which is 73.

- COPEL’s shareholders benefited from returns of 58% in 2005: A survey by the Fundação Getúlio Vargas ranked Copel 9th among the 50 Brazilian listed companies that generated most value for their shareholders in 2005, with returns of 58%.

This survey has been undertaken for nine years and ranks companies according to an indicator called TSR (Total Shareholder Return), which measures how much value the firm has generated in terms of share appreciation and dividends paid to shareholders.

- Opening of Fundão Plant: The Fundão Plant, located on the Jordão River, in the mid-south of Paraná State, was inaugurated on June 28. The plant, which is part of the Elejor power complex, has an installed capacity of 120MW and the first 60MW began commercial operations on June 22. The remaining 60MW are scheduled for start-up in August.

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- “Global Reporting Initiative” – GRI: COPEL's 2005 annual report was drawn up in line with the guidelines laid down by the GRI, which develops and disseminates global parameters for evaluating the economic, social and environmental impact of a company’s activities, products and services. COPEL received a “In accordance” rating from the organization for complying with all the requirements. Only 5 other Brazilian companies received the same rating.

- ABRADEE Award: COPEL was elected the best power distributor in the south of Brazil as well as the best company in the social responsibility category in the 2006 edition of the award, sponsored by ABRADEE – Brazilian Association of Power Distributors.

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FINANCIAL AND OPERATING PERFORMANCE 

Market Expansion

COPEL’s total billed power consumption came to 9,347 GWh in the 1H06, 0.6% down year-on-year.

Residential consumption, which accounts for 25.6% of COPEL’s market, grew by 2.6%, chiefly due to increased sales of home appliances fueled by the credit expansion, and the higher number of billed consumers. The upturn would have been even higher but for lower average temperatures than in the 1HO5, which acted as a brake on consumption.

Commercial consumption, which accounts for 18.3% of the market, recorded the best performance among major customer segments, moving up 4.1% year-on-year, mainly pushed by the healthy service sector performance, plus the higher number of consumers (1.8% up on the 1H05).

The 2.4% growth in rural consumption was primarily due to the prolonged drought, which demanded greater irrigation use.

Consumption by the captive industrial segment dropped 10.3% year-on-year, chiefly due to the April/05 transfer of free customers from COPEL Distribuição to Copel Geração. COPEL’s total industrial consumption, including free consumers, fell by 6.0%, due to the slowdown in agribusiness, caused by drought and the consequent harvest failure, plus the appreciation of the Real against the US Dollar, which jeopardized exports and the domestic market.

In June, COPEL had 3,297,163 customers, 74,350 more than in June/05, an increase of 2.3% .

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Consumption per segment

                    GWh 
Segment    2Q06    1Q06    2Q05    1H 06    1H 05 
Residential    1,181    1,211    1,173    2,392    2,333 
Industrial (including free customers)   1,824    1,761    1,959    3,584    3,812 
Commercial    819    892    823    1,712    1,644 
Rural    356    386    361    742    724 
Others    463    454    454    917    886 
COPEL Total    4,643    4,704    4,770    9,347    9,399 

COPEL Distribuição’s grid market (TUSD), comprising the captive market and all free customers within the Company’s concession area, increased by 3.0% in the 1H06.


Revenues

First-half net operating revenues totaled R$2,605.4 million, 10.6% up on the R$ 2,356.3 million recorded in the same period in 2005.

This increase was primarily due to: (i) the reduction in the discounts granted to costumers who pay their bills on time, which averaged 5% as of February/05 and 4.4% as of August/05; (ii) higher “supply” revenue, due to the cancellation of the initial contract between Copel Geração and Copel Distribuição and the consequent sale of energy from Copel Geração at the first old energy auction for the 2006-2013 period; (iii) the increase in “use of transmission plant”, due to the 9.1% adjustment ratified by Aneel Resolution 150, of July 1, 2005; and (iv) the increase in “gas sale revenue”, due to higher gas distribution to third parties..

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Gross Revenue

                R$ thousand 
Revenues    2Q 06    1Q 06    2Q 05    1H 06    1H 05 
   Residential    483,765    495,912    460,160    979,677    907,678 
   Industrial    436,680    408,337    401,322    845,017    758,625 
   Commercial    281,853    304,707    267,053    586,560    528,495 
   Rural    60,210    68,713    60,757    128,923    122,986 
   Other segments    114,632    109,943    108,174    224,575    206,061 
Electricity sales to final customers    1,377,140    1,387,612    1,297,466    2,764,752    2,523,847 
Electricity sales to distributors    289,094    281,687    237,070    570,781    464,720 
Use of transmission plant    74,082    69,224    66,636    143,306    130,828 
Telecom revenues    12,817    13,873    13,118    26,690    25,596 
Piped gas distribution    55,847    49,952    44,119    105,799    84,479 
Other    16,767    13,277    20,842    30,044    41,633 
Total    1,825,747    1,815,625    1,679,251    3,641,372    3,271,103 

Revenue Deductions

The table below shows COPEL’s operating revenue deductions:

                R$ thousand 
Revenue deductions    2Q 06    1Q 06    2Q 05     1H 06    1H 05 
   ICMS    352,662    356,766    336,326    709,428    655,835 
   PASEP/COFINS    169,284    128,862    97,458    298,146    176,002 
   RGR    11,473    15,100    12,150    26,573    31,479 
   Other    512    1,292    26,305    1,804    51,448 
TOTAL    533,931    502,020    472,239    1,035,951    914,764 

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Operating Expenses

First-half operating expenses totaled R$1,744.5 million, 14.1% less than the R$2,029.8 million recorded in the 1H05. The main variations were:

  • “Energy purchased for resale” fell 12.4%, mainly due to alterations in the methodology for calculating the CVA, authorized by Aneel in Technical Note 175 of June 2006. The main amounts booked were: R$ 135.5 million from Itaipu, R$ 109.7 million from Cien, R$ 43.4 million from Itiquira and R$ 300.3 million from the energy auction. Also, R$ 58.6 million was booked as passive CVA.
  • The 25.8% increase in the “use of transmission grid line” was due to the 9.1% tariff adjustment confirmed by Aneel Resolution 150, of July 1, 2005, in addition to remuneration from new transmission assets and the net effects of CVA costs amounting to R$ 58.0 million.
  • “Personnel” expenses moved up by 6.2% due to the October/05 pay rise and the increase in the number of employees.
  • The 24.4% upturn in the “pension plan and other benefits” line was a result of the increase in the workforce and the booking of estimated costs for 2006, according to actuarial criteria, in compliance with CVM Deliberation 371/2000.
  • The balance in the “raw material and supply for electric power production” line reflected the reversal of R$ 298.1 million due to the agreement between COPEL, Petrobras and Compagas, related to natural gas for the Araucária Plant.
  • The “natural gas and supply for the gas business” line refers to all the gas acquired by Compagas from Petrobras. The decline was due to the termination of the gas purchase contract for UEG Araucária.
  • The increase in “third-party services” was mainly due to higher costs from mail, technical consulting and travel.
  • The upturn in “depreciation and amortization” was caused by the entry of new fixed assets in use related to Elejor and UEG Araucária.
  • The increase in “regulatory charges” was chiefly due to the higher amount booked under the Energy Development Account - CDE. The total amount booked in the first half comprised R$ 115.9 million under the Fuel Consumption Account – CCC; R$ 22.8 as financial compensation for the use of water resources; R$ 75.4 million under the CDE; and R$7.5 million as Aneel’s oversight fees.
  • The figures under “electric efficiency and development research” obey the criteria for investments in such programs as defined in Aneel Resolution 176, of November 28, 2005.
  • The “expenses recoverable” line presented growth of 71.5%, primarily due to the reclassification of the CCC Subsidy under “other operating revenues”, as determined by Aneel Resolution 473 of March 06, 2006.

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  • The increase in the “other operating expenses” account was mainly due to provisions for contingencies related to the Energética Rio Pedrinho (R$ 25.0 million) and the Consórcio Salto Natal Energética (R$ 23.8 million).

Breakdown of Operating Expenses

                R$ thousand 
Operating Expenses    2Q06    1Q06    2Q05    1H06    1H05 
   Energy purchased for resale    327,611    359,555    424,802    687,166    784,619 
   Use of transmission grid    122,501    158,060    111,132    280,561    222,969 
   Personnel    139,240    130,513    117,505    269,753    254,024 
   Pension plans and other benefits    29,483    31,505    24,811    60,988    49,029 
   Material    17,228    16,078    17,149    33,306    30,724 
   Raw material and supply for electric    (294,839)   6,146    5,908    (288,693)   9,332 
   power production                     
   Natural gas purchased for resale and                     
   supplies for the gas business    27,608    23,681    55,079    51,289    140,720 
   Third-party services    51,860    51,097    51,542    102,957    93,465 
   Depreciation and amortization    90,257    85,437    82,386    175,694    161,546 
   Regulatory charges    84,458    137,182    102,802    221,640    217,949 
   Electric efficiency and development                     
   research    6,370    22,627    3,116    28,997    5,382 
   Taxes    133    5,110    5,298    5,243    9,470 
   Expenses recoverable    (9,679)   (13,130)   (5,548)   (22,809)   (13,298)
   Other operating expenses    117,276    21,146    30,264    138,422    63,897 
Total    709,507    1,035,007    1,026,246    1,744,514    2,029,828 

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CVA (Deferred Regulatory Assets)

The following table shows the charges in balances from deferred tariff costs updated by the SELIC interest rate in the first half of 2006:

                        R$ 
                        thousand 
Parcel A Movement    Balance    Deferral    Amort.    Monetary   Transf.   Balance 
    12/31/05            updates        06/30/06 
 
 Asset                         
 
     Purchased energy (Itaipu)   22,712    36,919    (29,352)   10,390      40,669 
     Transp. of purchased energy    3,227    2,687    (1,838)   642      4,718 
     Use of transmission grid charges    70,293    13,073    (77,255)   9,466    5,821    21,398 
     Energy Development Account – CDE    16,525    21,235    (16,804)   4,486      25,442 
     Electric Power Services Fee - ESS    10,443    6,360    (12,654)   3,534      7,683 
     Fuel Consumption Account – CCC    13,546    25,059    (5,689)   2,168      35,084 
     Proinfa      13,105      539      13,644 
 TOTAL    136,746    118,438    (143,592)   31,225    5,821    148,638 
 
 Liabilities                         
 
     Energy purchased for resale                         
         Energy    48,936    84,275    (25,700)   18,781      126,292 
         Itaipu    41,640    (22,530)   (18,991)   (119)    
         Use of transmission grid charges      (4,155)     633    5,821    2,299 
 TOTAL    90,576    57,590    (44,691)   19,295    5,821    128,591 
 

EBITDA

EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$1,036.6 million in the first half, 112.4% up on the R$488.1 million posted in the same period in 2005. Excluding the agreement concerning the supply of gas to the Araucaria Thermal Power Plant effects, EBITDA for the first half of 2006 would be R$738,5 million.

Financial Result

Financial revenue moved up 179.1% over the 1H05, primarily due to the booking of R$283.2 million related to the discounts obtained in the negotiations between Copel, Petrobras and Compagas on the gas purchase agreement for UEG Araucária; increased interest from financial investments due to a higher cash position in the period; and gains from derivative operations.

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Financial expenses fell by 11.6%, essentially due to the reversal of R$ 72.7 million in delinquency fines from the gas purchase contract with Compagas.

Operating Result

COPEL’s first-half operating result totaled R$ 1,212.2 million, directly influenced by the reversal of amounts related to the UEG Araucária gas contract. However, even if we ignore this effect, the period operating result was still 73.5% up year-on-year.

Non-operating Result

The 1H06 non-operating result reflected the net effect of write-offs of assets and rights registered under permanent assets and R$ 41 million in equity loss from the accrued losses recorded by UEG Araucária.

Net Income

COPEL recorded a first-half net income of R$ 740.4 million, including the net effects of the UEG Araucária gas contract (R$ 423.8 million). Excluding these effects, net income would have totaled R$ 316.6 million, 61% up on the R$196.7 million recorded in the 1H05.

BALANCE SHEET AND CAPEX 

Assets

On June 30, 2006, COPEL’s total assets stood at R$ 11,072.8 million.

COPEL’s first-half capex totaled R$671.4 million, R$3.7 million of which allocated to power generation projects, R$73.8 million to transmission projects, R$144.7 million to distribution works, R$12.6 million to telecommunications and R$436.6 million spent on Araucária Thermal Plant acquisition. Elejor and Compagas, whose balance sheets are consolidated with Copel, invested R$53.2 million in generation projects, and R$6.6 million in gas pipelines, respectively.

Liabilities and Shareholders’ Equity

On June 30, 2006, COPEL’s total debt amounted to R$1,938.7 million, representing a debt/equity ratio of 31.3% . Excluding Elejor’s debt, COPEL’s debt/equity ratio would have been 26.3% .

Shareholders’ equity came to R$6,190.6 million, 16.1% more than in June/05 and equivalent to R$22.62 per thousand shares.

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Debt Profile

            R$ thousand 
Foreign Currency    Short Term    Long Term    Total 
IDB    22,624    82,644    105,268 
National Treasury    9,340    97,864    107,204 
Eletrobras      50    57 
Banco do Brasil S/A    5,028    11,702    16,730 
Total Foreign Currency    36,999    192,260    229,259 
 
Local Currency    Short Term    Long Term    Total 
Eletrobras – COPEL    46,344    290,591    336,935 
Eletrobras – Elejor      40,554    40,554 
BNDES    6,392    28,817    35,209 
Debentures – COPEL    756,638    266,680    1,023,318 
Debentures – Elejor    15,890    256,399    272,289 
Other    132    959    1,091 
Total Local Currency    825,397    884,000    1,709,397 
 
TOTAL    862,396    1,076,260    1,938,656 

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ADDITIONAL INFORMATION 

Main operational and financial indicators

As of June 30, 2006

Generation     
   Number of power plants - Copel Geração:    18 (17 hydro and 1 thermal)
   Number of power plants - Copel Participações:    06 (04 hydro, 1 thermal and 1 eolic)
 Total installed capacity - COPEL Geração:    4,550 MW 
 Total installed capacity - COPEL Participações:    553 MW 
   Number of automated power plants - COPEL Geração:    12 
   Number of step-up substations - COPEL Geração:    11 
   Number of automated step-up substations:    10 
   Availability of generating units over 10 MW:    93.79% 
 
Transmissão    
   Transmission lines:    7,062 km 
   Number of substations:    129 
   Number of automated substations:    129 
   Installed substation capacity:    15,444 MVA 
 
Distribuição    
   Distribution lines:    165,576 km 
   Number of substations:    237 
   Number of automated substations:    212 
   Installed capacity in 13.8kV and 34.5kV substations:    1,607 MVA 
   Number of localities served:    1,110 
   Number of municipalities served:    393 
   Number of consumers:    3,297,163 
   DEC (outage duration per customer, in hours):    6.65 
   FEC (outage frequency per customer):    6,49 times 
 
Telecomunicações     
   Optical cable – main ring:    4,540 km 
   Self-sustained optical cable:    4,182 km 
   Number of cities served:    158 
   Number of customers:    313 
 
Administration     
   Number of employees (wholly-owned subsidiaries):    7,991 
   Customer per distribution employee:    568 
 
Financial     
   Book value (per 1,000 shares):    R$ 22.62 
   EBITDA:    R$1,037 million 
   Liquidity (Current Ratio):    0.95 

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Average Tariff for Energy Purchased

            R$/MWh 
    June 2006    June 2005    Change
% 
       
Auction – CCEAR 2005-2012    59.01    57.51    2.6 
Auction – CCEAR 2006-2013    69.94     
CIEN    70.85    88.24    (19.7)
Itaipu *    84.66    83.97    0.8 
(*)Transport tariff included (Furnas)

Retail Tariffs

            R$/MWh 
    June 2006    June 2005    Change
% 
       
Residential    268.33    269.81    (0.5)
Industrial    180.04    158.69    13.5 
Commercial    240.32    233.71    2.8 
Rural    164.10    162.33    1.1 
Others    179.47    175.21    2.4 
Total    214.17    204.45    4.8 
ICMS not included

Energy Supply Tariff

            R$/MWh 
    June 2006    June 2005    Change
% 
       
Small wholesale concessionaries    88.43    83.05    6.5 
Auction – CCEAR 2005-2012    58.52    57.50    1.8 
Auction - CCEAR 2006-2013    68.54     

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Energy Flow

GWh

Source    1H 2006 
Own Generation    6,082 
Purchased Energy    13,426 
   Itaipu    2,310 
   Auction – CCEAR    5,859 
   Cien    1,738 
   Itiquira    466 
   MRE    2,311 
   CCEE   
   Other    739 
Total available power    19,508 
State Demand    8,964 
   Retail    8,740 
   Concessionaires    224 
Free Customers    607 
Bilateral Agreements    2,136 
Auction – CCEAR    5,545 
MRE    0 
CCEE    925 
Losses and Differences    1,331 
   Basin network losses    400 
   Distribution losses    832 
   CG Contract allocation    99 
 
CCEAR = Energy purchase agreements in the regulated market
MRE = Energy Reallocation Mechanism
CCEE = Electric Power Trade Chamber
CG = Center of gravity of the Submarket (difference between hired energy and energy received from CG – following the contract).
Amounts subject to changes after settlement by CCEE.

Shareholders’ Structure (in million shares)

30/06/2006

 
                        Millions of shares 
 
Shareholders    COMMON     %    Preferred "A"    %    Peferred "B"     %    TOTAL     % 
 
 
State of Paraná    85,028    58.6     -    -    -    -    85,028    31.1 
BNDESPAR    38,299    26.4    -    -    27,282    21.3    65,581    24.0 
ELETROBRÁS    1,531    1.1    -    -    -    -    1,531    0.6 
Free Floating    19,582    13.5    121    29.9    100,783    78.6    120,485    44.0 
    In Brazil    15,253    10.5    121     29.9    70,038    54.6    85,411    31.2 
    ADS's    4,329    3.0        30,745    24.0    35,074    12.8 
Other    591    0.4    283    70.1    156    0.1    1,030    0.4 
 
TOTAL    145,031    100.0    403    100.0    128,221    100.0    273,655    100.0 
 

15


FINANCIAL STATEMENTS 

 

COMPANHIA PARANAENSE DE ENERGIA
CNPJ 76.483.817/0001 -20
Public Company - CVM 1431-1
www.copel.com      copel@copel.com

SUMMARIZED FINANCIAL STATEMENTS

Translation from the original in portuguese (amounts expressed in thousands of Brazilian Reais)

 
ASSETS                     
 
 
    3Q2005    4Q2005    1Q2006    2Q2006    2Q2005 
 
Current                     
   Cash in hand    813,558    1,131,766    1,150,459    691,373    618,850 
   Customers and distributors    1,047,456    945,577    988,606    989,850    964,507 
   Allowance for doubtfull accounts    (138,238)   (79,073)   (81,978)   (112,729)   (128,200)
   Third-parties services, net    5,226    7,349    8,489    9,389    3,395 
   Dividends receivable    2,152    3,665    2,573    1,436    2,152 
   Services in progress    9,748    12,132    11,625    14,716    6,863 
   CRC transferred to State Government    30,961    31,804    32,338    33,058    30,659 
   Taxes and social contributions paid in advance    82,632    131,038    103,682    148,790    96,768 
   Account for compensation of "Portion A"    150,134    128,187    86,018    139,427    204,621 
   Regulatory Assets - PASEP/COFINS    56,382    43,876    25,081    13,102   
   Bonds and linked deposits      43,746    44,271    21,267    35,291 
   Material and supplies    33,208    36,590    44,344    38,805    32,106 
   Other    76,796    33,587    43,858    60,508    41,211 
 
    2,170,015    2,470,244    2,459,366    2,048,992    1,908,223 
 
Long-term assets                     
   Customers and distributors    99,318    104,483    99,996    104,023    105,883 
   CRC transferred to State Government    1,146,764    1,150,464    1,144,591    1,148,281    1,170,108 
   Taxes and social contributions paid in advance    563,123    526,505    523,615    472,967    539,852 
   Judicial Deposits    165,319    145,183    149,775    151,525    158,737 
   Account for compensation of "Portion A"    14,280    8,559    8,735    9,211    1,659 
   Regulatory Assets - PASEP/COFINS    32,680    43,608    49,173    20,361    111,925 
   Bonds and linked deposits      27,041    25,096    22,714    27,830 
   Intercompany receivables    204,737    35,357    35,722    36,040    34,473 
   Other    48,204    16,576    15,350    20,263    22,667 
 
    2,274,425    2,057,776    2,052,053    1,985,385    2,173,134 
 
Permanent                     
   Investments    465,499    414,320    416,375    436,970    412,362 
   Property, plant and equipment    5,409,481    5,991,291    6,042,542    6,567,808    5,839,891 
   Deferred    205    5,375    5,314    33,665    5,309 
 
    5,875,185    6,410,986    6,464,231    7,038,443    6,257,562 
 
Total    10,319,625    10,939,006    10,975,650    11,072,820    10,338,919 
 

16


 
LIABILITIES AND SHAREHOLDERS' EQUITY                     
 
 
    3Q2005    4Q2005    1Q2006    2Q2006    2Q2005 
 
Current                     
   Loans and financing    94,419    99,253    90,924    89,868    99,016 
   Debentures    51,500    115,703    723,043    772,528    61,055 
   Suppliers    1,108,984    1,162,415    1,265,631    443,722    1,061,096 
   Taxes and social contributions    318,013    310,942    207,193    238,726    230,177 
   Interest on own capital    27,047    114,467    115,429    40,429    27,050 
   Accrued payroll costs    93,549    108,326    109,482    93,830    81,792 
   Pension plan and other post-retirement benefits    123,704    132,902    126,415    128,420    127,587 
   Account for compensation of "Portion A"    40,686    65,664    64,020    116,889    46,871 
   Regulatory charges    66,382    41,280    59,429    42,666    68,731 
   Electric efficiency and development research      72,887    89,975    147,908   
   Other    22,691    34,501    34,847    37,348    19,369 
 
    1,946,975    2,258,340    2,886,388    2,152,334    1,822,744 
 
Long-term liabilities                     
   Loans and financing    576,053    602,624    565,339    553,181    614,761 
   Debentures    958,351    1,226,525    530,252    523,079    1,142,601 
   Provision for contingencies    500,419    495,292    496,200    549,214    498,660 
   Debt with related party          50,333   
   Suppliers    191,492    176,609    152,251    325,393    206,372 
   Taxes and social contributions    94,368    37,236    38,809    42,535    61,196 
   Pension plan and other post-retirement benefits    508,066    486,854    486,198    476,504    514,991 
   Account for compensation of "Portion A"    40,874    24,912    14,548    11,702    7,647 
   Customers        1,465     
 
    2,869,623    3,050,052    2,285,062    2,531,941    3,046,228 
 
Minority interest    57,648    143,431    146,363    197,971    136,970 
 
Shareholders' equity                     
   Capital stock    3,480,000    3,480,000    3,480,000    3,875,000    3,480,000 
   Capital reserves    817,293    817,293    817,293    817,293    817,293 
   Income reserves    1,148,086    1,189,890    1,360,544    1,498,281    1,035,684 
 
    5,445,379    5,487,183    5,657,837    6,190,574    5,332,977 
 
Total    10,319,625    10,939,006    10,975,650    11,072,820    10,338,919 
 

17


QUARTERLY INCOME STATEMENT

Translation from the original in portuguese (amounts expressed in thousands of Brazilian Reais)

 
                Accumulated 
 
    2Q2005    1Q2006    2Q2006    2H2006    2H2005 
 
Operating revenues                     
   Electricity sales to final customers    1,297,466    1,387,612    1,377,140    2,764,752    2,523,847 
   Electricity sales to distributors    237,070    281,687    289,094    570,781    464,720 
   Use of transmission plant    66,636    69,224    74,082    143,306    130,828 
   Telecom revenues    13,118    13,873    12,817    26,690    25,596 
   Piped gas distribution    44,119    49,952    55,847    105,799    84,479 
   Other revenues    20,842    13,277    16,767    30,044    41,633 
    1,679,251    1,815,625    1,825,747    3,641,372    3,271,103 
 
Deductions from operating revenues    (472,239)   (502,020)   (533,931)   (1,035,951)   (914,764)
 
Net operating revenues    1,207,012    1,313,605    1,291,816    2,605,421    2,356,339 
Operating expenses                     
   Eletricity purchased for resale    (424,802)   (359,555)   (327,611)   (687,166)   (784,619)
   Charges for the use of transmission grid    (111,132)   (158,060)   (122,501)   (280,561)   (222,969)
   Payroll    (117,505)   (130,513)   (139,240)   (269,753)   (254,024)
   Pension plan    (24,811)   (31,505)   (29,483)   (60,988)   (49,029)
   Material    (17,149)   (16,078)   (17,228)   (33,306)   (30,724)
   Raw material and supplies for generation of electricity    (5,908)   (6,146)   294,839    288,693    (9,332)
   Natural gas and supplies for the gas business    (55,079)   (23,681)   (27,608)   (51,289)   (140,720)
   Third-party services    (51,542)   (51,097)   (51,860)   (102,957)   (93,465)
   Depreciation and amortization    (82,386)   (85,437)   (90,257)   (175,694)   (161,546)
   Regulatory charges    (102,802)   (137,182)   (84,458)   (221,640)   (217,949)
   Electric efficiency and development research    (3,116)   (22,627)   (6,370)   (28,997)   (5,382)
   Taxes    (5,298)   (5,110)   (133)   (5,243)   (9,470)
   Expenses recoverable    5,548    13,130    9,679    22,809    13,298 
   Other    (30,264)   (21,146)   (117,276)   (138,422)   (63,897)
 
    (1,026,246)   (1,035,007)   (709,507)   (1,744,514)   (2,029,828)
 
Result of operations    180,766    278,598    582,309    860,907    326,511 
 
Financial income (expenses)                    
   Financial income    94,685    115,308    414,423    529,731    189,462 
   Financial expenses    (85,694)   (122,645)   (54,501)   (177,146)   (200,407)
    8,991    (7,337)   359,922    352,585    (10,945)
 
Equity investment    1,768    1,930    (3,208)   (1,278)   6,170 
 
Operating income (expenses)   191,525    273,191    939,023    1,212,214    321,736 
 
Non-operating income (expenses)   (1,382)   (3,652)   (41,234)   (44,886)   (5,230)
 
Income (loss) before income tax    190,143    269,539    897,789    1,167,328    316,506 
 
Income tax and Social contribution                     
   Income tax    (50,101)   (69,739)   (238,675)   (308,414)   (81,099)
   Social contribution    (17,028)   (25,246)   (86,226)   (111,472)   (29,174)
    (67,129)   (94,985)   (324,901)   (419,886)   (110,273)
 
Net income (loss) before    123,014    174,554    572,888    747,442    206,233 
 Minority interest                     
 
Minority interest    (4,761)   (3,900)   (3,141)   (7,041)   (9,573)
 
Net income (loss)   118,253    170,654    569,747    740,401    196,660 
 
Earning per thousand shares    0.4321    0.6236    2.0820    2.7056    0.7186 
 

18


SUMMARIZED FINANCIAL STATEMENTS
as of June 30, 2006
Translation from the original in portuguese (amounts expressed in thousands of Brazilian Reais)

 
ASSETS   GER    TRA    DIS    TEL    PAR 
                    Consolidated 
 
 
Current                     
   Cash in hand    291,119    27,705    248,933    4,700    117,121 
   Customers and distributors, net    149,973    47,501    704,338      47,673 
   Third-parties services, net    1,744    164    17    10,164   
   Dividends receivable            1,414 
   Services in progress    1,984    3,310    9,192      231 
   CRC transferred to State Government        33,057     
   Taxes and social contributions paid in advance    32,191    11,741    158,919    2,455    8,389 
   Account for compensation of "Portion A"        139,427     
   Regulatory Assets - PASEP/COFINS        13,102     
   Bonds and linked deposits    4,592      16,489      186 
   Prepaid receivables    488    326    16,237    30    2,486 
   Other    9,370    5,431    35,978    1,305    5,661 
   Material and supplies    179    8,600    22,897    6,602    527 
    491,640    104,778    1,398,586    25,256    183,688 
Long-term assets                     
   Customers and distributors    138,965      74,509     
   CRC transferred to State Government        1,148,281     
   Taxes and social contributions paid in advance    56,868    34,781    218,560    9,609    11,002 
   Judicial Deposits    7,893    16,247    64,785    385    12 
   Account for compensation of "Portion A"        9,211     
   Regulatory Assets - PASEP/COFINS      20,361       
   Bonds and linked deposits      4,741    17,973     
   Intercompany receivables    330,692         
   Prepaid receivables    3,534      7,477      431 
   Assets and rights for disposal            1,694 
   Other    936    56    5,912      223 
    538,888    76,186    1,546,708    9,994    13,362 
Permanent                     
   Investments    4,150    2,257    419      425,482 
   Property, plant and equipment    2,874,320    1,169,386    1,143,422    181,437    1,199,243 
   Deferred            33,665 
    2,878,470    1,171,643    1,143,841    181,437    1,658,390 
 
Total    3,908,998    1,352,607    4,089,135    216,687    1,855,440 
 
GER: Geração, TRA: Transmissão, DIS: Distribuição, TEL: Telecomunicação, PAR: Participações

19


 
LIABILITIES AND SHAREHOLDERS' EQUITY    GER    TRA    DIS    TEL    PAR 
                    Consolidated 
 
 
Current                     
   Loans and financing    49,591    15,380    18,505      6,392 
   Debentures        594,464      15,890 
   Suppliers    65,335    6,193    416,900    1,269    30,138 
   Taxes and social contributions    82,834    24,111    196,058    926    840 
   Interest on own capital      69,217    12    916    64,662 
   Accrued payroll costs    16,012    14,100    57,241    4,745    1,622 
   Pension plan and other post-retirement benefits    25,011    23,435    74,201    5,617    146 
   Account for compensation of "Portion A"        116,889     
   Regulatory charges    8,586    1,781    32,188      111 
   Electric efficiency and development research    23,233    8,600    115,384      691 
   Concession charges - Aneel' consent            13,520 
   Other    15,597    465    20,982    1,060    1,025 
    286,199    163,282    1,642,824    14,533    135,037 
Long-term liabilities                     
   Loans and financing    325,342    71,660    86,808      69,371 
   Debentures            256,399 
   Provision for contingencies    64,307    41,977    146,727    753    3,270 
   Intercompany receivables            500,333 
   Suppliers    160,193      233,189      41,461 
   Taxes and social contributions      6,923    19,205      16,406 
   Pension plan and other post-retirement benefits    89,451    79,406    289,572    16,476    1,600 
   Account for compensation of "Portion A"        11,702     
    639,293    199,966    787,203    17,229    888,840 
Minority interest    -    -    -    -    197,971 
Shareholders' equity                     
   Capital stock    2,338,932    772,389    1,607,168    187,894    586,975 
   Capital reserves          701   
   Income reserves    129,472    151,739        74,657 
   Accrued (losses) income    515,102    65,231    51,940    (3,670)   (28,040)
    2,983,506    989,359    1,659,108    184,925    633,592 
 
Total    3,908,998    1,352,607    4,089,135    216,687    1,855,440 
 
GER: Geração, TRA: Transmissão, DIS: Distribuição, TEL: Telecomunicação, PAR: Participações

20


 
INCOME STATEMENT    GER    TRA    DIS    TEL    PAR 
                    Consolidated 
 
Operating revenues                     
   Electricity sales to final customers    70,923      2,694,637      1,122 
   Electricity sales to distributors    564,381      38,357      37,464 
   Use of transmission plant      212,491    73,362     
   Telecom revenues          43,073   
   Piped gas distribution            105,914 
   Other revenues    4,232    1,376    26,314      72 
Deductions from operating revenues    (93,450)   (28,657)   (885,905)   (6,070)   (21,869)
Net operating revenues    546,086    185,210    1,946,765    37,003    122,703 
Operating expenses                     
   Eletricity purchased for resale    (37,114)     (717,930)     (1,543)
   Charges for the use of transmission grid    (87,563)     (332,320)     (3,228)
   Payroll and pension plan    (52,165)   (43,572)   (213,446)   (13,474)   (5,577)
   Material    (3,868)   (2,108)   (26,359)   (731)   (238)
   Raw material and supplies for generation of electricity    288,578         
   Natural gas and supplies for the gas business            (51,289)
   Third-party services    (23,228)   (8,542)   (81,156)   (3,221)   (4,104)
   Depreciation and amortization    (51,576)   (20,164)   (78,535)   (13,386)   (12,033)
   Regulatory charges    (25,014)   (1,655)   (194,441)     (530)
   Electric efficiency and development research    (6,014)   (2,067)   (20,508)     (408)
   Taxes    (456)   (379)   (2,182)   (350)   (117)
   Expenses recoverable    10,132    118    13,485      29 
   Concession charges - Aneel' consent            (7,773)
   Other    (4,052)   (2,009)   (114,767)   (882)   (2,635)
    7,660    (80,378)   (1,768,159)   (32,037)   (89,446)
Result of operations    553,746    104,832    178,606    4,966    33,257 
Financial income (expenses)                    
   Financial income    343,398    3,244    149,049    191    15,773 
   Financial expenses    (23,453)   (2,733)   (84,533)   (411)   (14,627)
    319,945    511    64,516    (220)   1,146 
Equity investment    -    -    -    -    (1,428)
Operating income (expenses)   873,691    105,343    243,122    4,746    32,975 
Non-operating income (expenses)   (41)   (512)   (3,655)   (65)   (40,987)
Income (loss) before income tax    873,650    104,831    239,467    4,681    (8,012)
   Income tax and Social contribution    (270,225)   (36,763)   (87,015)   (1,724)   (12,987)
Minority interest    -    -    -    -    (7,041)
 
Net income (loss)   603,425    68,068    152,452    2,957    (28,040)
 
GER: Geração, TRA: Transmissão, DIS: Distribuição, TEL: Telecomunicação, PAR: Participações

21


1ST HALF 2006 RESULTS 
CONFERENCE CALL 

Presentation:  Mr. Paulo Roberto Trompczynski, CFO and IRO 
Date & Time:             Wednesday, August 16, 2006 
             10 am (US EST)
             11 am (Brasília time)
Number:             (55-11) 2101-1490 
Access Code:             Copel 

Investor Relations - Copel
ri@copel.com

Phone  Fax 
(5541) 3222-2027  (5541) 3331-2849 

 

Statements contained in this press release may contain information which is forward-looking and reflects management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

 

22


 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 14, 2006

 
COMPANHIA PARANAENSE DE ENERGIA – COPEL
By:
/S/  Rubens Ghilardi

 
Rubens Ghilardi
CEO
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.