Companhia Paranaense de Energia - COPEL (Copel) (ELP) (ELPVY) posted decent first-quarter earnings and has nearly doubled its dividend year over year. However, the company’s shares carry a heavy currency risk which largely offsets improvements to the dividend and book value. The company also faces regulatory risks as Brazil pushes privatization and the company unloads assets.
First-Quarter Earnings
Copel reported net income of R$ 593.9 million, up 16.2% year over year. The company’s net asset value increased YOY in Brazilian real values but declined to $12.81 at current exchange rates from around $15.43