Copel announces dividend increase.
Shareholder ownership should increase to 40% of net profit within 2 years.
247 (with information from AE) _ On a day when the Bovespa Index fell, Copel's ON shares (CPLE3) resisted with gains in the early afternoon, while the PNB shares (CPLE6) showed a slight decline near stability. And it was more than welcome news for shareholders that prevented the shares from following the negative market movement. The Paraná state-owned company plans to increase, over two years, the volume distributed in the form of dividends to 40% of net profit.
The company's management's promise was reinforced during a meeting with energy analysts from Deutsche Bank. A report released by the company earlier in the week had already outlined the plan to adjust the shareholder's share of the company's profits.
The increase in dividend distribution by Copel is a highly anticipated event for investors because the company has practically stopped investing in recent years and has accumulated cash.
Last year, the state-owned company distributed approximately 25% of its profit to shareholders. A possible change in dividend policy comes after a new board of directors takes over the company's management this year, sponsored by the new governor of Paraná, Beto Richa (PSDB).
According to the report, the company's management also stated that it intends to achieve a leverage level for its distribution subsidiary, Copel D, close to that established by the National Electric Energy Agency (Aneel) in the third tariff review cycle.
The regulator's proposal is that the capital structure for concessionaires should be 60% debt and 40% equity. Copel's management reiterated its commitment to passing on the adjustments authorized by Aneel to consumers and to focusing investments on its core business, which is the electricity sector.
Deutsche Bank's recommendation for Copel's Class B preferred shares is to buy, with a target price of R$ 61,00.