Brazil-based integrated electric utility,
Companhia Energetica de Minas Gerais
), also known as CEMIG reported its financial results for the
first quarter 2013 on May 17, 2013. Net earnings in the quarter
were R$865 million (US$432.5 million), up 37% year over year.
Earnings per share were R$1.01 or US$0.51 per ADR. This was
way above the Zacks Consensus Estimate of US$0.24 per ADR.
CEMIG in the first quarter 2013 generated net revenue of
R$3,677.6 million (US$1,838.8 million), up 15.2% compared with
the year-ago revenues. Despite a fall in a few categories,
including a 9.4% decline in revenues from sales to end customers,
more than a double increase in revenue from Supply +Transactions
in the CCEE category drove the results.
Electricity sold in the quarter was down 1.8% year over year
to 10,796 GWh.
Operational costs and expenses in the quarter totaled R$2,456
million (US$1,228 million), up 7% year over year. The expenses
soared because of higher personnel costs, post-retirement
benefits, cost of materials and purchased energy costs among
others, although there was fall in a few other expenses,
including contracted services, royalties, operating provisions
among others on a year-over-year basis.
EBITDA was R$1,590 million (US$795 million) in the quarter,
reflecting a year-over-year growth of 28%. EBITDA margin was
43.2% versus 38.9% in the year-ago quarter. Operating margin in
the quarter came in at 33.2% compared with 28.0% in the year-ago
Balance Sheet/Cash Flow
Exiting the first quarter 2013, CEMIG had cash and cash
equivalents of approximately R$2,041 million (US$1,020.5 million)
versus R$2,485.8 million (US$1,212.6 million) in the previous
quarter. Talking of long-term debts, a drastic decline was
witnessed in loans, financing and debentures that came in at
R$2,644 million (US$1,322 million).
CEMIG generated approximately R$374 million (US$187 million)
in cash from operating activities, registering a year-over-year
decline of 11%. Capital spending on addition of fixed and
intangible assets plummeted 70% to R$219 million (US$109.5
CEMIG is one of the largest integrated electric utilities in
Brazil with approximately 97% of the company's installed
generation capacity being hydroelectric power. The stock
currently has a Zacks Rank #4 (Sell).
Other stocks to watch out for in the industry are
CPFL Energia S.A.
Empresa Nacional de Electricidad S.A.
) with a Zacks Rank #1 (Strong Buy) while
) with a Zacks Rank #2 (Buy).
ALLETE INC (ALE): Free Stock Analysis Report
CEMIG SA -ADR (CIG): Free Stock Analysis
CPFL ENERGI-ADR (CPL): Get Free Report
ENDESA-CHILE (EOC): Free Stock Analysis
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