Copel (CPLE6) stock closed 4.5% higher after the re-elected Paraná governor changed the tone of privatization

While Federal state-owned companies plunged in the stock market, Paranaense Cobel (CPLE6) Its preferred Series B stock closed 4.51% higher, at R$7.19, after the re-election of the governor of the state in which he works, Ratinho Jr (PSD), indicating that he might change his mind regarding the privatization of the electric power company.

At the inauguration ceremony of the Sengi Solar solar panel factory last Friday (21), Ratinho Jr said he has no plans to privatize the state-owned company at the moment, but may revise his position in changing the scenario, “depending on the scenario being drawn”.

Kobel recently had some financial problems. At the end of the second quarter, the state-owned company’s total debt represented 61.6% of consolidated equity, or R$12.9 billion. The state-owned company’s net debt amounted to R$ 9.02 billion, with a cash position of about R$ 3.8 billion.

“Although there is no intention to privatize the company in the short term, Ratinho indicated a change in position when raising the probability of the event in the event of eventual changes in perspective, which is progress with respect to previous positions,” explains Levante Investimentos, in that morning call.

However, the analysis house says the event shouldn’t take off in the short term — although Coppel has a limited financial position, it is likely that it will, once again, pursue the process it carried out with its subsidiary SPE FDA. – Framed by Federal Decree No. 9.271/2018.

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“This decree allows the concession, which expires in 2024, to be renewed for another 30 years, provided that this subsidiary is subject to a tendering process for privatization, and thus Koppel loses control of the asset and maintains a minority stake in it,” analysts said.

With no cash on hand, Copel must once again use this arrangement to overcome his financial problem, as it makes it possible to overcome the problem.

In the case of Foz do Areia HPP, which is used by the SPE FDA, the consortium, last week, established a minimum grant value of R$1.83 billion.

Privatization of the company will be conducted by the Paraná State Government. The plant’s operating system will be changed from “public service” to “independent production of energy (PIE)” and the company will be able to trade energy freely in regulated and free markets.

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