6-K 1 elppr2q08_6k.htm EARNINGS RELEASE - RESULTS OF FIRST HALF 2008 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, 2008

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) 3222-2027
(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 Immediate Release

Results of First Half 2008

Curitiba, Brazil, August 13, 2008 – Companhia Paranaense de Energia - COPEL (NYSE: ELP / LATIBEX: XCOP / BOVESPA: CPLE3, CPLE5, CPLE6), a company that generates, transmits and distributes power to the State of Paraná, announces its first half results of 2008. All figures included in this report are in Reais and were prepared in accordance with Brazilian GAAP (corporate law method).

HIGHLIGHTS

• COPEL’s consolidated financial statements present, in addition to the figures of the wholly-owned subsidiaries (COPEL Geração e Transmissão, COPEL Distribuição, COPEL Telecomunicações and COPEL Participações), those of Compagas, Elejor, UEG Araucária and Centrais Eólicas do Paraná (companies in which COPEL retains a majority stake). From January 2008 on, Dominó Holdings started to be partially consolidated (45%).

• Net operating revenues for the 1H08: R$ 2.668.5 million – a 8.0% increase compared to the 1H07.

• Operating income: R$ 939.0 million, up 11.6% year-on-year.

• Net income: R$ 613 million (R$ 2.24 per share). – 16.9% variation versus the 1H07. In the 2Q08 alone, net income reached R$ 357.5 million.

• EBITDA (earnings before interest, taxes, depreciation and amortization): R$ 1,039.3 million. In the 2Q08 alone, EBITDA stood at R$ 591.7 million.

• Return on net equity: 8.5% .

• Total power consumption billed by COPEL to captive customers rose 5.9 % over the second quarter last year. The grid market increased 6.7% .

• By the end of the 1H08, COPEL’s shares appreciated at the following rates

o CPLE3 (common/Bovespa) = 8.5%

o CPLE6 (preferred B/Bovespa) = 21.6%

o ELP (ADR/Nyse) = 34.3%

o XCOP (preferred B/Latibex) = 23.1%

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Companhia Paranaense de Energia – COPEL
1H2008 Earnings Release

1. Main Events 

Net income:

     In the first half of 2008, COPEL recorded net income of R$ 613.0 million, which corresponded to R$ 2.24 per share.

Rate Review:

     ANEEL has ratified, under Resolution 663/08, the result of COPEL's second Periodic Rate Review. COPEL’s rates to final customers were cut by 3.35%, as of July 24, 2008, which corresponded to a reduction of 7.17% in connection with the rate review partially offset by a 3.83% increase in connection with financial components outside the range of the rate review.

     It is important to point out that, due to the withdrawal of the external components from the rate basis taken into account in the July 24, 2007 rate review, customers will be charged an average increase of 0.04% from July 24, 2008 to July 23, 2009.

Power Consumption by Customer Category:

     Power consumption by the captive market billed by COPEL grew 5.9% in the first half of 2008. The following variations were recorded in the consumption of the Company’s main customer categories: residential customers, 4.3%; commercial customers, 5.3%; industrial customers, 8.8%; and rural customers, 6.0% . The following charts feature the monthly power consumption billed by COPEL from 2006 to 2008:


Installation License for the Mauá Hydroelectric Power Plant:

     This 361 MW project belongs to Consórcio Energético Cruzeiro do Sul, a partnership between COPEL (with a 51% interest) and Eletrosul (with a 49% interest).

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     On March 24, 2008, the Environmental Institute of Paraná (IAP) issued the Installation License for the Mauá Hydroelectric Power Plant, located on the Tibagi River, in the State of Paraná. On May 16, 2008, the Regional Federal Court reinstated a preliminary injunction issued by a federal judge in Londrina (State of Paraná) which made the issue of installation licenses for power plants and dams on the Tibagi River conditional upon an integrated environmental assessment of the entire river basin. On July 18, 2008, however, the chief justice of the Superior Court of Justice suspended the injunction which had interrupted the work on the Mauá Power Plant, allowing construction to begin.

Restructuring:

     COPEL’s 172nd Extraordinary Shareholders’ Meeting, held on April 18, 2008, approved the changes proposed to adjust and reorganize the scope of the Company’s activities. The main changes include the creation of a Chief Engineering Office, which will be in charge of new power generation and transmission projects, with or without third-party participation.

BOVESPA’s Level 1 of Corporate Governance:

     On May 7, 2008, COPEL’s stock officially became a part of the São Paulo Stock Exchange's Level 1 of Corporate Governance. The Company’s securities are now part of a market segment which includes only public companies which are formally committed to transparent management and to the principles of corporate governance, including observance and practice of such values as ethics and social-environmental responsibility.

New Code of Conduct:

     COPEL has made the new version of its Code of Conduct available to public review, from May 16 to June 6, 2008, in order to obtain feedback to further develop the new Code. This version has been prepared by the Ethical Guidance Council, based on suggestions made from an external point of view, in compliance with the best corporate governance practices. The new Code is available on COPEL’s website.

ANEEL Customer Satisfaction Index (IASC):

     ANEEL’s Customer Satisfaction Index (IASC), which is a survey of customers’ perception of the performance of the 64 power distribution utilities which operate in Brazil, reached 65.39 out of 100 in 2007. This was the highest overall rating ever achieved by IASC since its inception, in 2000. COPEL rated 70.87 in the category of distribution utilities with over 400 thousand customers. This year’s rating surpassed that of the previous year (69.96), when COPEL ranked 1st place.

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GRI raises the grade of COPEL’s Annual Report:

     On July 28, 2008, the Company received a message from the Global Reporting Initiative (GRI) concerning the review of its annual management and sustainability report for 2007, which was graded A+ in terms of compliance with sustainability criteria.

ABRADEE awards COPEL as the Best Power Distribution Utility in Southern Brazil:

     COPEL has won the ABRADEE Award for Best Power Distribution Utility in Southern Brazil with over 500 thousand customers. The ABRADEE award has been held annually by the Brazilian Association of Power Distribution Utilities since 1999. COPEL has since then won 11 awards in different categories, including 3 awards for best distribution utility in Brazil and 3 awards for best utility in Southern Brazil.

Sale of Electricity to Free Consumers:

     COPEL participated in bids held by several free consumers from April to July 2008. COPEL Geração e Transmissão S.A. won these bids, which totaled 162 average MW of sold energy, for delivery as of 2013 and with a duration of 6 to 8 years. COPEL also took part in the energy purchase auction held by CEMIG on April 28, 2008, when sold 300 average - MW for delivery in 2013 and 250 average - MW for delivery between 2014 and 2017. This energy will be delivered to the southern submarket.

Carbon credits:

     On May 31, 2008, the United Nations approved the registration process of the Jordão River Power Complex - comprising the Santa Clara and Fundão power plants - as a Clean Development Mechanism, i.e., a project which avoids the emission of pollutants and greenhouse gases. By generating power in a clean manner, the Jordão River power plants are entitled to carbon credits which may be traded on the market. This is the first hydroelectric project in Brazil to be certified to trade carbon credits.

2. Human Resources 

COPEL’s workforce at the end of the first half of 2008 amounted to 8,197 employees assigned to the Company’s wholly-owned subsidiaries as follows:

COPEL Geração e Transmissão = 1,478 employees
COPEL Distribuição = 6,363 employees
COPEL Telecommunicações = 328 employees
COPEL Participações = 28 employees

As of June 2008, COPEL Distribuição recorded a customer-to-employee ratio of 543.

Compagas, Elejor and UEG Araucária, companies in which COPEL holds a majority interest, had 84, 6 and 3 employees, respectively.

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3. Operating Performance 

Energy Consumption:

     Captive consumption billed by COPEL Distribuição totaled 9,714 GWh, 5.9% up year on-year, while total billed consumption (including free customers supplied by COPEL Geração e Transmissão and supplies to other distributors in the State of Paraná by COPEL Distribuição) came to 10,555 GWh, up by 4.4% . This was chiefly due to a combination of the following factors:

(i) the healthy performance of the agricultural sector and high prices of commodities, which pushed up farmers’ earnings;
(ii) growth in the domestic market, mainly driven by the increase in disposable income, in turn fueled by expanded credit, social programs and successive increases in the minimum wage;
(iii) higher exports of certain items, especially agricultural produce; and
(iv) the creation of 109,000 new registered jobs in the State of Paraná in the first six months of 2008.

     Residential consumption, which accounted for 27.5% of the captive market, grew by 4.3% and average consumption per residential consumer stood at 163.1 kWh/month, up by 2.2% year-on-year. In June, 2008, a total of 2,725,155 residential customers were supplied.

     Industrial consumption (excluding free consumers) totaled 3,307 GWh, equivalent to 34.0% of the captive market and 8.8% higher than in the 1H07. This was the best performance among COPEL’s consumption categories and was mostly pushed by the motor vehicles, machinery and equipment, publishing, printing, and pulp and paper industries. In June 2008, a total of 60,090 captive consumers were billed.

     Commercial consumption stood at 1,973 GWh, up by 5.3% and accounting for 20.3% of COPEL’s captive market. In June 2008, 289,564 customers were billed.

     The rural segment, which accounted for 8.5% of COPEL’s captive market, moved up 6.0% to 825 GWh. Monthly consumption per consumer averaged 410.1 kWh, an increase of 4.8% . A total of 335,277 costumers were billed. The other consumption segments (government, public lighting, public services and own consumption) totaled 942 GWh, 2.1% up year-on-year and equivalent to 9.7% of the captive market.

     Billed consumption by free consumers supplied by COPEL Geração e Transmissão declined by 16.0% due to the termination of certain contracts.

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Energy Consumption:

                        GWh 
Segment     2Q08    2Q07    % Var.    1H08    1H07    % Var. 
  (1)   (2)   (1 / 2)   (3)   (4)   (3 / 4)
Residential    1,321    1,277    3.4    2,667    2,557    4.3 
Industrial    1,704    1,567    8.7    3,307    3,038    8.8 
Commercial    972    926    5.0    1,973    1,875    5.3 
Rural    396    377    5.0    825    779    6.0 
Other    477    470    1.5    942    923    2.1 
Total Captive Customers    4,870    4,617    5.5    9,714    9,172    5.9 
Free Customers – Copel Geração e Transmissão    290    358    (19.0)   594    708    (16.0)
Total Supply to Final Customers    5,160    4,975    3.7    10,309    9,879    4.3 
Wholesale – State of Paraná    126    118    6.8    247    234    5.6 
TOTAL    5,286    5,093    3.8    10,555    10,113    4.4 

COPEL Distribution’s Grid Market:

COPEL Distribuição’s grid market, comprising the captive market, supply to other distributors in Paraná and all free consumers in the Company’s concession area, increased 6.7% year-on-year in the 1H08.

                        GWh 
Market    2Q08    2Q07    % Var.    1H08    1H07    % Var. 
  (1)   (2)   (1 / 2)   (3)   (4)   (3 / 4)
Grid Market (TUSD)   5,843    5,525    5.8    11,682    10,947    6.7 

4. Financial Performance 

Revenues:

     In the 1H08, net operating revenue reached R$ 2,668.5 million, 8.0% higher than the R$ 2,469.7 million, registered in the 1H07.

Highlights:

(i) an 11.7% increase in supply revenue (which reflects only the revenue from the sale of energy, excluding COPEL’s distribution grid tariff – TUSD), mainly due to the growth of the electricity market.

(ii) a 9.1% drop in the account “electricity sales to distributors” as a result of the lower revenue from bilateral agreements and from sales to the short term (CEEE).

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(iii) a 1.7% increase in electricity network availability, which is composed of the distribution grid tariff (TUSD), the basic transmission network and the network connection revenue, chiefly due to tariff adjustments.

(iv) a 23.3% upturn in telecommunications revenue thanks to new clients and the higher volume of services provided for existing clients;

(v) a 9.1% rise in gas sale revenue resulting from the growth in the third-party gas distribution segment (Compagas) and tariff adjustment in the period; and

(vi) (vi) a 89.6% increase in other operating revenue due, mainly, to revenue from the leasing of UEG Araucária to Petrobras, in the amount of R$ 22.4 million, and to revenues from the provision of operation and maintenance (O&M) services, in the amount of R$ 5.3 million. Despite the increase in revenue, UEG Araucária was shut down from January 13 to May 2, 2008 as a result of the damage in one turbine and the anticipation of the scheduled revision. Therefore, as of May 2, UEG Araucária is at the disposal of Petrobras, which, pursuant to the regulations of the ONS, began using the partial power available.

Gross Income Statement:

Gross Income Statement    2Q08    1Q08    2Q07    Var.%    1H08    1H07    Var.% 
  (1)   (2)   (3)   (1/3)   (4)   (5)   (4/5)
Operating revenues    2,020,800    1,989,579    1,978,479    2.1    4,010,379    3,846,305    4.3 
Electricity sales to final customers    735,592    718,669    675,891    8.8    1,454,261    1,302,373    11.7 
   Residential    230,581    232,199    214,991    7.3    462,780    421,128    9.9 
   Industrial    269,939    249,297    242,236    11.4    519,236    450,861    15.2 
   Commercial    151,044    153,143    139,425    8.3    304,187    275,389    10.5 
   Rural    29,448    32,743    27,009    9.0    62,191    55,929    11.2 
   Other    54,580    51,287    52,230    4.5    105,867    99,066    6.9 
Electricity sales to distributors    307,659    316,616    387,226    (20.5)   624,275    687,119    (9.1)
Use of transmission grid    852,540    850,237    822,380    3.7    1,702,777    1,674,944    1.7 
   Residential    254,686    263,605    259,067    (1.7)   518,291    528,909    (2.0)
   Industrial    303,392    282,762    288,708    5.1    586,154    558,480    5.0 
   Commercial    164,395    171,560    166,256    (1.1)   335,955    341,087    (1.5)
   Rural    32,943    37,161    32,693    0.8    70,104    70,527    (0.6)
   Other    60,285    58,204    62,923    (4.2)   118,489    124,206    (4.6)
   Main transmission grid    36,839    36,945    12,733    189.3    73,784    51,735    42.6 
Telecom revenues    19,183    17,594    14,724    30.3    36,777    29,830    23.3 
Piped gas distribution    70,471    59,491    61,584    14.4    129,962    119,173    9.1 
Other    35,355    26,972    16,674    112.0    62,327    32,866    89.6 

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Deductions from Operating Revenues:

     The following table shows the legal deductions from COPEL’s operating revenues:

                            R$'000 
Deductions from Operating    2Q08    1Q08    2Q07    Var. %    1H08    1H07    Var. % 
Revenues    (1)   (2)   (3)  

(1 / 3)

   (4)   (5)    (4 /5)
ICMS    395,463    386,960    377,288    4.8    782,423    740,100    5.7 
PASEP and COFINS    190,331    189,129    183,822    3.5    379,460    359,025    5.7 
RGR    14,583    14,026    14,965    (2.6)   28,609    28,685    (0.3)
CDE    52,240    47,344    44,285    18.0    99,584    91,759    8.5 
CCC    690    24,115    72,242    (99.0)   24,805    128,105    (80.6)
P&D and PEE    13,016    12,965    14,469    (10.0)   25,981    27,989    (7.2)
Other    507    482    427    18.7    989    894    10.6 
TOTAL    666,830    675,021    707,498    (5.7)   1,341,851    1,376,557    (2.5)

Net Operating Revenue:

     In the 1H08, COPEL’s net operating revenue totaled R$ 2,668.5 million, an increase of 8% versus the R$ 2,469.7 million registered in the 1H07.

Operating Costs and Expenses:

     In the 1H08, total operating costs and expenses reached R$ 1,834.6 million, 14% higher than the R$ 1,609.7 million registered in the 1H07. The main highlights in the period were as follows:

(i) a 31.6% increase in “electricity purchased for resale” chiefly due to the following factors: reversal of R$100.9 million in the first quarter of 2007 related to CIEN’s cancelled bills (non-recurring effect), and the higher cost of acquisition of energy from the CCEE, the auctions and Itaipu. This expense increase was partially offset by the end of the agreement with CIEN. The main amounts booked were: R$ 237.1 million from ITAIPU, R$ 52.8 million from ITIQUIRA and R$ 479.9 million from energy auctions. In addition, R$ 28.9 million was booked as passive CVA.

(ii) a 32.3% decline in “charges for the use of transmission grid”, chiefly due to the effect of CVA and Pasep/Cofins, which reduced the line’s balance by R$ 61.7 million in the 1H08;

(iii) “payroll” expenses of R$ 279.1 million in the first half of 2008, 1.7% above the amount registered in the 1H07. This increase was chiefly due to the 5.5% pay rise applied as of October 2007, offset by the reduction in number of employees and by the voluntary dismissal program, with the dismissal of employees with higher salaries and hiring of employees at the beginning of their careers.

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(iv) the pension plan and other benefits line reflects pass-through of costs with the Pró-Saúde program (assistance) and with the pension plan, paid to Fundação COPEL, pursuant to the actuarial criteria established by CVM resolution 371/2000. It is also worth mentioning that in the same period of 2007, the company booked a surplus, as established in the actuarial report;

(v) a 21.8% reduction in the material line versus the 1H07, chiefly due to the decline in the acquisition of material for the electric system, fuel, auto parts, IT equipment and office supplies.

(vi) the “natural gas purchased for resale” line decreased 3% and refers to the natural gas acquired by Compagas to supply to the third-party gas distribution market;

(vii) a 24.5% rise in “third-party services” mainly due to higher grid and electric power system maintenance expenses and postal and telephony services;

(viii) the variation in the “provisions and reversals” was chiefly due to the allowance for doubtful accounts, which stood at R$16.1 million in the first half of 2008, while a reversal of R$ 15.0 million was booked in the same period in the previous year. Also, higher amounts were accrued as provision for contingencies, particularly to cover labor claims, in the amount of R$ 17 million; and

(ix) a 6.4% increase in “other operating expenses” due to an increase in Elejor concession fees – granted by Aneel and gas transport rights.

Breakdown of Operating Costs and Expenses:

                          R$ '000 
Operating Expenses and Costs  2Q08    1Q08    2Q07    Var.%    1H08    1H07    Var.% 
(1)   (2)   (3)   (1/3)   (4)   (5)   (4/5)
   Electricity purchase for resale  330,704    443,499    338,184    (2.2)   774,203    588,128    31.6 
   Charges for the use of transmission grid  75,834    105,767    155,166    (51.1)   181,601    268,139    (32.3)
   Payroll  147,360    131,701    144,422    2.0    279,061    274,477    1.7 
   Pension plan  18,880    20,405    (33,891)   -    39,285    (11,178)   - 
   Material  14,285    11,646    15,912    (10.2)   25,931    33,175    (21.8)
   Raw material and supplies for gen. of electricity  3,261    5,013    3,142    3.8    8,274    6,400    29.3 
   Natural gas purchased for resale  32,632    31,791    38,910    (16.1)   64,423    66,418    (3.0)
   Third-party services  70,803    61,811    57,218    23.7    132,614    106,476    24.5 
   Depreciation and amortization  103,503    101,856    105,379    (1.8)   205,359    209,839    (2.1)
   Provisions and reversals  32,936    16,787    14,858    121.7    49,723    508    - 
   Expenses recoverable  (10,706)   (12,186)   (13,841)   (22.7)   (22,892)   (23,910)   (4.3)
   Other operating expenses  46,236    50,812    51,826    (10.8)   97,048    91,187    6.4 
Total  865,728    968,902    877,285    (1.3)   1,834,630    1,609,659    14.0 

EBITDA:

     Earnings before interest, taxes depreciation and amortization – EBITDA reached R$ 1,039.3 million in the 1H08, 2.9% lower than the R$ 1,069.9 million recorded in the 1H07. In the 2Q08 alone, EBITDA stood at R$ 591.7 million.

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Financial Result:

     The balance of financial revenues grew by 56.8% year-on-year in the 1H08, totaling R$ 251.6 million. The increase compared to the same period in the previous year is mainly due to the higher variation of the IGP-DI rate. This index adjusts the transfer of CRC to the State of Paraná.

     Financial expenses totaled R$ 165.0 million, down 10.6% year-on-year. This result chiefly due to the discontinuation of the CPMF tax and the decline in debt charges.

      In June 2008, the company booked R$ 30.7 million related to the Term of Commitment of Conduct Adjustment signed with ANEEL to regulate the DEC and FEC indicators. This amount will be fully invested in distribution projects for certain consumer group units to improve these indicators.

Equity Investment:

     The R$ 18.5 million booked under equity investment in the first half of 2008 reflects the income from subsidiaries and associated companies offset by the goodwill amortization of the investments made in Sercomtel, Elejor and COPEL Empreendimentos.

Operating Result:

     In the 1H08, COPEL recorded an operating income of R$ 939.0 million, 11.6% up year-on-year.

Non-operating Income:

     Non-operating income reflects basically the net effect of the removal of assets and rights resulting from fixed assets write-offs.

Net Income:

     In the first half, COPEL’s net income totaled R$ 613.0 million (or R$ 2.24 per share), 16.9% up year-on-year. In the second quarter alone, net income reached R$ 357.5 million.

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5. Balance Sheet and Investment Program 

Assets:

     On June 30, 2008, COPEL’s assets totaled R$ 12,734.9 million, up by 9.2% year-on-year.

     COPEL`s investment program for the 1H08 is presented in the table below:

        R$ million 
    Carried    Scheduled 
     1H08    2008 
 
Generation and Transmission    39.0    263.0 
Distribution    222.3    487.3 
Telecommunications    8.3    42.1 
Partnerships    110.0    0.1 
 
TOTAL    379.6    792.5 

     Compagas, Elejor and UEG Araucária (whose balance sheet is consolidated with COPEL’s) invested R$ 10.5 million, R$ 1.0 million and R$ 6.9 million, respectively, during the first half of 2008.

     The rise in the shareholding investments was due to the acquisition of a 30% interest in Dominó Holdings, in the amount of R$ 110 million. This acquisition was not included in the investment program approved by the Board of Directors.

Liabilities and Shareholders’ Equity:

     COPEL’s consolidated debt at the end of June 2008 was R$ 1,928.5 million, representing a debt/equity ratio of 24.6% . Excluding Elejor’s and Compagas’ debts, debt/equity ratio would be 19.5% .

     The shareholders’ equity of COPEL came to R$ 7,849.2 million, 13.7% higher than at the end of the same period in 2007, equivalent to R$ 28.68 per share.

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Debt Profile:

                R$'000 
        Short-term    Long-term    Total 
    IBD    17,609    33,054    50,663 
Foreign    National Treasury    6,841    60,404    67,245 
Currency    Eletrobrás    5    27    32 
    Banco do Brasil S/A    3,826    1,854    5,680 
    Total    28,281    95,339    123,620 
 
    Eletrobrás - Copel    37,632    257,777    295,409 
    Eletrobrás - Elejor    0    106,682    106,682 
Domestic    BNDES - Compagas    6,283    15,747    22,030 
Currency    Debentures - Copel    162,639    600,000    762,639 
    Debentures - Elejor    3,304    269,638    272,942 
    Banco do Brasil S/A and other    13,291    331,885    345,176 
    Total    223,149    1,581,729    1,804,878 
GENERAL TOTAL    251,430    1,677,068    1,928,498 

Account for Compensation of Portion A – CVA:

     The account for compensation of Portion A allows distribution companies to offset, between their annual rate reviews, variations in the cost of certain items listed in their concession agreements.

     The CVA variation updated by the SELIC from January to June 2008 is demonstrated in the following table:

Deferred Regulatory Assets and Liabilities – CVA:

                    R$ ‘000 
    Balance    Deferral    Amortization    Monetary    Balance 
    12/31/07            restatement    06/30/08 
Assets                     
 Purchased Energy (Itaipu)   46,907    (2,152)   (23,310)   1,777    23,222 
 Transport of Purchased Energy    285    (74)   (211)   -    - 
 Use of Transmission Grid Charges    8,148    27,863    -    817    36,828 
 Energy Development Account – CDE    9,969    (3,435)   (6,428)   461    567 
 Electric Power Services Fee – ESS    7,826    30,478    (7,484)   413    31,233 
 Fuel Consumption Account – CCC    13,187    24,977    (1,869)   658    36,953 
 Proinfa    6,770    3,165    (4,785)   485    5,635 
TOTAL    93,092    80,822    (44,087)   4,611    134,438 
Liabilities                     
 Energy Purchased for Resale    87,177    26,707    (55,840)   5,080    63,124 
 CCC    35,856    (1,710)   (36,119)   1,973    - 
 Use of Transmission Grid Charges    34,175    (2,372)   (32,579)   776    - 
 Transport of Purchased Energy    1,114    318    (1,059)   143    516 
 Electric Power Services Fee – ESS    7,444    (7,193)   -    (251)   - 
TOTAL    165,766    15,750    (125,597)   7,721    63,640 

12

6. Additional Information

Main Operational and Financial Indicators :

   
June 30, 2008 
 
Generation     
       COPEL Geração e Transmissão (GET) power plants    18 (17 hydro and 1 thermal)
       Power plants in which COPEL holds interest    06 (04 hydro, 1 thermal e 1 wind power)
       Total installed capacity of COPEL GET    4,550 MW 
       Installed capacity of COPEL's Corporate Partnerships (1)   602 MW 
       Automated and remote-controlled power plants of COPEL GET    15 
       Automated and remote-controlled power plants of     
          COPEL's corporate partnerships    03 
       Step-up substations of COPEL GET    14 (automated and remote-controlled)
 
 
Transmission (above 230kV)    
   Transmission lines    1,830 km 
   Number of substations    30 (100% automated)
   Installed substation capacity 
   10.285 MVA 
 
Distribution (until 138 kV)    
       Distribution nets and lines    179,126 km 
       Number of substations    342 
       Number of automated substations    339 
       Installed capacity in substations    8,876 MVA 
       Number of localities served    1,118 
       Number of municipalities served    393 
       Number of customers    3,455.760 
       DEC (outage duration per customer, in hours and hundredths of an hour)   5.95 
       FEC (outage frequency per customer)   5.27 times 
 
Telecommunication     
       Optical cable – main ring    5,139 km 
       Self sustained optical cable    5,685 km 
       Number of cities served    185 
       Number of customers    541 
 
Administration     
       Number of employees (wholly-owned subsidiaries)   8,197 
       Customer per distribution employee    543 
 
Financial     
       Book Value (per 1,000 shares)   R$ 28.68 
       EBITDA    R$ 1,039.3 million 
       Liquidity (Current Ratio)   1.99 

(1) proportional to the capital stake.

13

Average Energy Purchase Tariffs:

               
R$/MWh 
Tariff 
   Jun/08    Mar/08    Jun/07    Var. % 
    (1)   (2)   (3)   (1 / 3)
Itaipu*    76.05    80.27    89.93    (15.4)
CIEN    -    -    84.54    - 
Auction – CCEAR 2005-2012    64.66    63.82    62.29    3.8 
Auction – CCEAR 2006-2013    75.72    74.75    72.97    3.8 
Auction – CCEAR 2007-2014    85.77    84.37    82.00    4.6 
Auction – CCEAR 2007-2014 (A-1)   106.57    104.74    104.75    1.7 
Auction – CCEAR 2008-2015    91.00    89.84    -    - 
Auction – CCEAR 2008 H30    113.66    112.42    -    - 
Auction – CCEAR 2008 T15**    140.67    138.86    -    - 
 
* Furnas transport charge not included     
** Auction average price updated by IPCA     

Average Retail Tariffs:

               
R$/MWh 
Tariff 
   Jun/08    Mar/08    Jun/07    Var. % 
    (1)   (2)   (3)   (1 / 3)
    (1)   (2)   (3)   (1 / 3)
Residential    252.27    252.08    256.75    (1.7)
Industrial (Free customers not included)   185.14    176.41    183.57    0.9 
Commercial    227.66    220.75    230.54    (1.2)
Rural    149.04    148.74    148.26    0.5 
Other    173.15    170.53    175.32    (1.2)
TOTAL    207.57    203.04    209.35    (0.9)
Without ICMS                 

Average Energy Supply Tariffs:

               
R$/MWh 
Tariff 
   Jun/08    Mar/08    Jun/07    Var. % 
    (1)   (2)   (3)   (1 / 3)
Auction – CCEAR 2005-2012    65.03    63.96    62.45    4.1 
Auction - CCEAR 2006-2013    76.82    75.14    73.68    4.3 
Auction - CCEAR 2007-2014    85.36    84.06    81.90    4.2 
Auction - CCEAR 2008-2015    90.88    89.15    -    - 
Wholesale Concessionaires – State of Paraná    121.65    121.37    123.85    (1.8)
                 

14

Energy Flow - COPEL Consolidated:

            GWh 
    1H08    1H07    Var.% 
 
   Own Generation    9,036    9,843    (8.2)
   Purchased energy    12,611    11,910    5.9 
       Itaipu    2,716    2,308    17.7 
       Auction – CCEAR    6,920    6,380    8.5 
       Itiquira    453    453    0.0 
       Dona Francisca    322    320    0.6 
       MRE/CCEE    1,480    860    72.1 
       Other    720    1,589    (54.7)
Total Available Power    21,647    21,753    (0.5)
   Energy Market    10,555    10,113    4.4 
       Retail    9,714    9,172    5.9 
       Concessionaires    247    233    6.0 
       Free Customers    594    708    (16.1)
   Bilateral Agreements    1,763    1,982    (11.0)
   Auction – CCEAR    6,124    5,761    6.3 
   MRE/CCEE    1,677    2,355    (28.8)
   Losses and differences    1,528    1,542    (0.9)
       Basic network losses    476    493    (3.4)
       Distribution losses    991    978    1.3 
       CG contract allocation    61    71    (14.1)
 
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 billed and energy received from CG)
Amounts subject to changes after settlement by CCEE 

Energy Flow - COPEL Geração:

            GWh 
    1H08    1H07    Var.% 
 
     Own Generation    9,036    9,843    (8.2)
     MRE/ CCEE    1,036    714    45.1 
     Dona Francisca    322    320    0.6 
     Other    -    130    (100.0)
Total Available Power 
   10,394    11,007    (5.6)
     Bilateral Agreements    1,763    1,982    (11.0)
     CCEAR – Copel Distribuição    609    567    7.4 
     CCEAR – Other Concessionaires    5,515    5,194    6.2 
     Free Customers    594    708    (16.1)
     MRE/ CCEE    1,677    2,298    (27.0)
     Losses and differences    236    258    (8.5)
 
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 billed energy and energy received from CG)
Amounts subject to changes after settlement by CCEE 

15

Energy Flow - COPEL Distribuição

            GWh 
    1H08    1H07    Var.% 
 
       Itaipu    2,716    2,308    17.7 
       CCEAR – Copel Geração e Transmissão    609    567    7.4 
       CCEAR – Other Wholesale    6,311    5,813    8.6 
       CIEN    -    760    (100.0)
       CCEE    443    146    203.4 
       Itiquira    454    453    0.2 
       Other    720    700    2.9 
   Purchased Energy    11,253    10,747    4.7 
   State Demand    9,961    9,406    5.9 
       Retail    9,714    9,172    5.9 
       Wholesale    247    234    5.6 
   CCEE    -    57    (100.0)
   Total Sold Energy    9,961    9,463    5.3 
   Losses and differences    1,292    1,284    0.6 
       Basic network losses    239    235    1.7 
       Distribution losses    992    978    1.4 
       CG contract allocation    61    71    (14.1)
 
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 billed and energy received from CG)
Amounts subject to changes after settlement by CCEE 

Shareholding Structure (as of 06/30/2008):

            Thousand shares 
Shareholders  COMMON   %  Preferred "A"  %  Preferred "B"     %  TOTAL   % 
 
State of Paraná  85,028  58.6  0  -  14  0.0  85,042  31.1 
BNDESPAR  38,299  26.4  0  -  27,282  21.3  65,581  24.0 
ELETROBRÁS  1,531  1.1  0  -  0  -  1,531  0.6 
Free Floating  19,613  13.5  126  31.7  100,831  78.6  120,570  44.1 
       BOVESPA  14,204  9.8  126   31.7  72,529  56.6  86,859  31.7 
       NYSE 
 5,409  3.7  0  -  28,224  22.0  33,633  12.3 
       LATIBEX  0  0.0  0  -  78  0.1  78  0.0 
Other  560  0.4  272  68.3  99  0.1  931  0.3 
TOTAL  145,031  100.0  398  100.0  128,226  100.0  273,655  100.0 
                 


16

7. Financial Statements 


               
$1,000 
ASSETS 
   2Q08    1Q08    2Q07    Var.% 
    (1)   (2)   (3)    (1/3)
CURRENT    3,251,020    3,160,301    2,801,174    16.1 
     Cash in hand    1,587,994    1,505,720    1,109,425    43.1 
     Customers and distributors    1,058,072    1,099,995    1,130,264    (6.4)
   Allowance for doubtfull accounts    (86,426)   (80,492)   (96,228)   (10.2)
   Third-parties services    7,806    8,126    9,065    (13.9)
     Dividends receivable    3,529    5,783    1,645    114.5 
     Services in progress    53,155    50,356    42,888    23.9 
   CRC transferred to State Government    43,353    41,386    36,623    18.4 
   Taxes and social contributions paid in advance    188,420    232,066    280,882    (32.9)
   Account for compensation of "Portion A"    115,208    72,029    84,272    36.7 
   Other regulatory assets    40,851    17,186    0    - 
   Bonds and linked deposits    116,419    106,716    113,104    2.9 
     Material and supplies    55,334    46,799    50,886    8.7 
     Other receivables    67,305    54,631    38,348    75.5 
NON-CURRENT    9,483,842    9,395,137    8,864,468    7.0 
Long-term assets    2,050,301    2,002,157    1,823,870    12.4 
   Customers and distributors    104,082    124,524    131,686    (21.0)
   Allowance for doubtfull accounts    (9,739)   (10,103)   0    - 
   Third-parties services    5,210    7,109    7,036    (26.0)
   CRC transferred to State Government    1,273,517    1,224,266    1,156,847    10.1 
   Taxes and social contributions paid in advance    497,792    472,613    362,993    37.1 
   Account for compensation of "Portion A"    19,230    16,987    6,969    175.9 
   Other regulatory assets    12,176    5,729    -    - 
   Bonds and linked deposits    20,413    22,142    21,625    (5.6)
     Judicial Deposits    119,179    130,407    126,516    (5.8)
     Other    8,441    8,483    10,198    (17.2)
Investments    449,928    445,863    229,839    95.8 
Property, plant and equipment    6,864,588    6,829,317    6,684,889    2.7 
Intangible assets    113,962    112,652    112,989    0.9 
Deferred    5,063    5,148    12,881    (60.7)
TOTAL    12,734,862    12,555,438    11,665,642    9.2 

17

                            R$'000 
INCOME STATEMENT    2Q08    1Q08    2Q07    Var.%    1H08    1H07    Var.% 
    (1)   (2)   (3)   (1/3)   (4)   (5)   (4/5)
Operating revenues    2,020,800    1,989,579    1,978,479    2.1    4,010,379    3,846,305    4.3 
Deductions from operating revenues    (666,830)   (675,021)   (707,498)   (5.7)   (1,341,851)   (1,376,557)   (2.5)
Net operating revenues    1,353,970    1,314,558    1,270,981    6.5    2,668,528    2,469,748    8.0 
Operating expenses and costs    (865,728)   (968,902)   (877,285)   (1.3)   (1,834,630)   (1,609,659)   14.0 
   Electricity purchase for resale    (330,704)   (443,499)   (338,184)   (2.2)   (774,203)   (588,128)   31.6 
   Charges for the use of transmission grid    (75,834)   (105,767)   (155,166)   (51.1)   (181,601)   (268,139)   (32.3)
   Payroll    (147,360)   (131,701)   (144,422)   2.0    (279,061)   (274,477)   1.7 
   Pension plan    (18,880)   (20,405)   33,891    -    (39,285)   11,178    - 
   Material    (14,285)   (11,646)   (15,912)   (10.2)   (25,931)   (33,175)   (21.8)
   Raw material and supplies for generation of electricity    (3,261)   (5,013)   (3,142)   3.8    (8,274)   (6,400)   29.3 
   Natural gas purchased for resale and supplies for the gas business    (32,632)   (31,791)   (38,910)   (16.1)   (64,423)   (66,418)   (3.0)
   Third-party services    (70,803)   (61,811)   (57,218)   23.7    (132,614)   (106,476)   24.5 
   Depreciation and amortization    (103,503)   (101,856)   (105,379)   (1.8)   (205,359)   (209,839)   (2.1)
   Provisions and reversals    (32,936)   (16,787)   (14,858)   121.7    (49,723)   (508)   - 
   Expenses recoverable    10,706    12,186    13,841    (22.7)   22,892    23,910    (4.3)
   Other operating expenses    (46,236)   (50,812)   (51,826)   (10.8)   (97,048)   (91,187)   6.4 
Result of operations    488,242    345,656    393,696    24.0    833,898    860,089    (3.0)
Financial income (expenses)   52,546    34,090    7,843    570.0    86,636    (24,142)   - 
   Financial income    145,014    106,603    73,714    96.7    251,617    160,450    56.8 
   Financial expenses    (92,468)   (72,513)   (65,871)   40.4    (164,981)   (184,592)   (10.6)
Equity investment    8,417    10,090    1,457    477.7    18,507    5,627    228.9 
Operating income (expenses)   549,205    389,836    402,996    36.3    939,041    841,574    11.6 
Non-operating income (expenses)   (3,108)   (860)   (31,937)   (90.3)   (3,968)   (34,467)   (88.5)
Income (loss) before income tax    546,097    388,976    371,059    47.2    935,073    807,107    15.9 
Income tax and social contribution    (181,574)   (129,384)   (120,320)   50.9    (310,958)   (271,363)   14.6 
Net income (loss) before minority interest    364,523    259,592    250,739    45.4    624,115    535,744    16.5 
Minority interest    (7,016)   (4,080)   (9,099)   (22.9)   (11,096)   (11,142)   (0.4)
Net income (loss)   357,507    255,512    241,640    48.0    613,019    524,602    16.9 
 
Earning per share    1.31    0.93    0.88    48.0    2.24    1.92    16.9 
 
EBITDA    591,745    447,512    499,075    18.6    1,039,257    1,069,928    (2.9)

18

                $1,000 
LIABILITIES 
   2Q08    1Q08    2Q07    Var.% 
    (1)   (2)   (3)    (1/3)
CURRENT    1,631,408    1,821,922    1,840,653    (11.4)
     Loans and financing    251,430    224,599    272,531    (7.7)
     Suppliers    409,361    454,376    391,519    4.6 
   Taxes and social contributions    344,200    272,053    343,713    0.1 
   Interest on own capital and dividends    80,267    260,540    83,562    (3.9)
   Accrued payroll costs    97,829    136,279    99,096    (1.3)
   Post-retirement benefits    17,506    17,655    93,328    (81.2)
   Account for compensation of "Portion A"    51,908    104,368    242,213    (78.6)
   Other regulatory charges    37,869    45,800    0    - 
   Customer charges due    36,386    33,561    35,748    1.8 
   Electric efficiency and development research    194,918    191,211    176,001    10.7 
     Other payables    109,734    81,480    102,942    6.6 
NON-CURRENT    3,015,784    3,010,728    2,704,427    11.5 
Long-term liabilities    2,940,790    2,935,734    2,704,427    8.7 
   Loans and financing    1,677,068    1,689,684    1,818,303    (7.8)
   Provision for contingencies    532,382    521,061    203,410    161.7 
     Suppliers    200,730    195,340    181,605    10.5 
   Taxes and social contributions    18,195    16,420    181,605    117.8 
     Post-retirement benefits    200,730    195,340    8,353    6.6 
   Account for compensation of "Portion A"    18,195    16,420    449,710    9.4 
   Other regulatory charges    479,438    478,184        - 
   Other payables    11,732    15,215        - (79.2)
Income (losses) from future periods    14,510    13,095    32,320    - 
MINORITY INTEREST    238,474    231,099    219,690    8.6 
SHAREHOLDERS' EQUITY    7,849,196    7,491,689    6,900,872    13.7 
     Capital stock    4,460,000    4,460,000    4,460,000    0.0 
     Capital reserves    838,340    838,340    817,293    2.6 
     Income reserves    2,550,856    2,193,349    1,623,579    57.1 
 
TOTAL    12,734,862    12,555,438    11,665,642    9.2 

19

8. Financial Statements - Subsidiaries

                $1,000 
ASSETS 
   GET    DIS    TEL    PAR 
 
 Current    881,942    1,427,224    30,582    386,636 
     Cash in hand    596,609    185,177    15,002    294,008 
     Customers and distributors    189,951    797,153    -    33,663 
     Third-parties services, net    -    -    10,615    - 
     Dividends receivable    -    -    -    3,529 
     Services in progress    7,816    45,339    -    - 
     CRC transferred to State Government    -    43,353    -    - 
     Taxes and social contributions    8,646    78,735    1,015    19,628 
     Account for compensation of "Portion A"    -    115,208    -    - 
       Other regulatory assets    -    40,851    -    - 
         Bonds and linked deposits 
   60,011    42,773    -    13,198 
      Other    13,664    31,957    1,139    22,010 
     Material and supplies    5,245    46,678    2,811    600 
 NON-CURRENT    3,618,168    3,720,298    198,356    1,776,876 
 Long-term assets    120,808    1,740,390    16,847    39,001 
     Customers and distributors    573    93,807    -    22,412 
     Third-parties services, net    -    -    5,210    - 
     CRC transferred to State Government    -    1,273,517    -    - 
     Taxes and social contributions paid in advance    86,596    255,088    11,303    13,727 
     Judicial Deposits    31,758    61,419    334    1,042 
     Account for compensation of "Portion A"    -    19,230    -    - 
     Other regulatory assets    -    12,176    -    - 
     Bonds and linked deposits    -    20,413    -    - 
     Other    1,881    4,740    -    1,820 
 Permanent    3,497,360    1,979,908    181,509    1,737,875 
     Investments    10,965    2,474    -    399,600 
     Property, plant and equipment    3,473,135    1,949,886    180,103    1,261,464 
     Intangible    13,260    27,548    1,406    71,748 
     Deferred    -    -    -    5,063 
 
 TOTAL    4,500,110    5,147,522    228,938    2,163,512 
GET: Geração e Transmissão consolidated, DIS: Distribuição, TEL: Telecomunicações, PAR: Participações consolidated 

20

                $1,000 
Liabilities 
   GET    DIS    TEL    PAR 
 
CURRENT    295,797    983,932    10,718    115,862 
   Loans and financing    51,526    14,544    -    6,283 
   Debentures    -    -    -    3,304 
   Suppliers    50,296    354,304    2,298    43,081 
   Taxes and social contributions    90,327    205,458    2,328    10,170 
   Dividends recivable    -    -    -    14,520 
   Accrued payroll costs    24,267    66,387    5,256    1,770 
   Post-retirement benefits    4,905    11,714    805    73 
   Account for compensation of "Portion A"    -    51,908    -    - 
   Other regulatory charges    23,359    14,510    -    - 
   Customer charges due    3,548    32,838    -    - 
   Electric efficiency and development research    31,392    159,248    -    4,278 
   Concession charges - Aneel's consent    -    -    -    31,454 
   Other    16,177    73,021    31    929 
NON-CURRENT    791,240    1,169,694    20,813    480,258 
Long term liabilities    790,648    1,169,694    20,813    405,856 
   Loans and financing    257,662    97,739    -    122,429 
   Debentures    -    -    -    269,638 
   Provision for contingencies    156,587    156,676    1,652    3,291 
   Intercompany receibables    -    567,547    -    - 
   Suppliers    223,142    -    -    - 
   Taxes and social contributions    -    9,558    -    8,637 
   Pension plan and other post-retirement benefits    146,537    311,879    19,161    1,861 
   Account for compensation of "Portion A"    -    11,732    -    - 
   Other regulatory charges    -    14,510    -    - 
   Other    6,720    53    -    - 
INCOME (LOSSES) FROM FUTURE PERIODS    592    -    -    74,402 
MINORITY INTEREST    1,285    -    -    238,474 
SHAREHOLDERS' EQUITY    3,411,788    2,993,896    197,407    1,328,918 
   Capital stock    2,947,018    2,171,928    194,755    1,165,500 
   Income reserves    197,424    491,983    -    128,302 
   Accrued income    267,346    329,985    2,652    35,116 
 
TOTAL    4,500,110    5,147,522    228,938    2,163,512 
 
             GET: Geração e Transmissão consolidated, DIS: Distribuição, TEL: Telecomunicações, PAR: Participações consolidated 

21

                R$'000 
Income statement 
   GET    DIS    TEL    PAR 
 
Operating revenues    837,332    3,069,573    52,669    236,872 
 Electricity sales to final customers    82,036    1,372,698    -    1,262 
 Electricity sales to distributors    639,218    27,428    -    80,322 
 Use of transmission plant    107,862    1,636,312    -    - 
 Telecom revenues    -    -    52,669    - 
 Piped gas distribution    -    -    -    131,135 
 Other    8,216    33,135    -    24,153 
Deductions from operating revenues    (125,518)   (1,177,541)   (8,825)   (29,967)
Net operating revenues    711,814    1,892,032    43,844    206,905 
Operating costs and expenses    (328,102)   (1,486,364)   (39,687)   (152,216)
 Electricity purchase for resale    (30,257)   (865,838)   -    (801)
 Charges for the use of transmission grid    (78,129)   (137,384)   -    (7,485)
 Payroll and pension plan    (66,265)   (191,332)   (12,913)   (5,706)
 Pension plan    (6,822)   (30,117)   (1,790)   (512)
 Material    (4,968)   (20,100)   (544)   (314)
 Raw material and supplies for generation of electricity    (8,291)   -    -    (1,278)
 Natural gas purchased for resale and supplies for the gas business    -    -    -    (64,423)
 Third-party services    (29,432)   (99,587)   (5,541)   (15,979)
 Depreciation and amortization    (64,636)   (97,150)   (14,613)   (28,960)
 Provisions (reversal) for contigencies    (2,660)   (35,329)   (2,908)   (65)
 Expenses recoverable    9,372    12,854    16    585 
 Concession charges - Aneel consent    -    -    -    (21,268)
 Other expenses    (46,014)   (22,381)   (1,394)   (6,010)
Result of operations    383,712    405,668    4,157    54,689 
Financial income (expenses)   21,504    96,632    1,266    (11,831)
 Financial income    45,065    175,275    1,290    16,192 
 Financial expenses    (23,561)   (78,643)   (24)   (28,023)
Equity Investment    -    -    -    18,373 
Operating income (expenses)   405,216    502,300    5,423    61,231 
 Non-operating income (expenses)   (1,064)   (3,059)   103    51 
Income (loss) before income tax    404,152    499,241    5,526    61,282 
 Income tax and Social contribution    (134,433)   (130,557)   (2,831)   (15,510)
 Deferred income tax and social contribution    (2,323)   (38,699)   977    440 
 Minority interest    (50)   -    -    (11,096)
Net income (loss)   267,346    329,985    3,672    35,116 
         
Ebitda    448,348    502,818    18,770    83,649 
 
             GET: Geração e Transmissão consolidated, DIS: Distribuição, TEL: Telecomunicações, PAR: Participações consolidated 

22

CONSOLIDATED CASH FLOW 
   1H08    1H07 
Cash flow from operating activities         
   Net income for the period    613,019    524,602 
   Adjustments for the reconciliation of net income         
for the period with cash flow from operating activities:    87,344    347,333 
               Provision (reversal) for doubtful accounts    12,994    (15,498)
               Depreciation and amortization    205,359    209,839 
               Unrealized monetary and exchange variations, net    (7,836)   104,305 
               Equity in the results of subsidiaries and investees    (22,029)   (9,402)
               Deferred income tax and social contribution    27,627    (54,777)
               Variations in Account for Compensation of "Portion A", net    (146,582)   90,080 
               Variations in other regulatory assets and liabilities, net    (43,144)   15,619 
               Contract renegotiation - Cien    0    (62,862)
               Provisions under long-term liabilities    33,590    15,325 
               Write-off of investments    4,364    2,242 
               Write-off of property, plant, and equipment, net    7,875    37,335 
               Write-off of intangible and deferred assets, net    324    31 
               Amortization of goodwill on investments    3,706    3,954 
               Minority interests    11,096    11,142 
   Reduction (increase) of assets    200,623    (8,271)
   Reduction of liabilities    (161,715)   (457,779)
   Net cash generated by operating activities    739,271    405,885 
Cash flow from investing activities         
           Acquisition of controlling interest in Dominó - net of acquired cash    (108,962)   0 
           Additions to interests in other companies and other investments    (2,968)   (700)
           Additions to property, plant, and equipment:    (282,918)   (221,512)
           Additions to intangible assets    (1,799)   (1,063)
           Additions to deferred assets    (105)   (284)
           Customer contributions    29,503    16,093 
           Disposal of property, plant, and equipment    5,535    30 
Net cash used by investing activities    (361,714)   (207,436)
Cash flow from financing activities         
               Loans and financing obtained    1,463    260,000 
               Amortization of principal amounts of loans and financing    (26,482)   (25,849)
               Amortization of principal amounts of debentures    (133,320)   (633,320)
               Dividends and interest on capital paid    (172,095)   (193,859)
Net cash used by financing activities    (330,434)   (593,028)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS    47,123    (394,579)
               Cash and cash equivalents at the beginning of the period    1,540,871    1,504,004 
               Cash and cash equivalents at the end of the period    1,587,994    1,109,425 
Variation in cash and cash equivalents    47,123    (394,579)

23

First Half of 2008 Results Conference Call 

Presentation by Rubens Ghilardi – CEO, Mr. Paulo Roberto Trompczynski – CFO 
 
Date:    Friday, August 15, 2008 
Time:    2:00 p.m. (US EST)
Telephone:    (55)(11) 2188-0188 
Code: COPEL 
 
 
The conference call will also be broadcast via the internet at 
www.copel.com/ir 
 
Please connect 15 minutes prior to the call. 

     
     
Investor Relations - COPEL 
ri@copel.com 
 
Telephone:    Fax: 
+55 (41) 3222-2027    +55 (41) 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. 
 

24

 
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, 2008

 
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.