Companhia Energetica de Minas Gerais
), also known as CEMIG, recently announced its financial guidance
for the period 2012-2016.
The company's distribution unit, CEMIG D is expected to post
healthy results in the years ahead, driven by healthy domestic
demand. Energy distribution in the retail market (captive market)
is expected to escalate from an estimated 24.0-25.2 TWh range in
2012 to 26.3-29.0 TWh range in 2016; while its total energy
distribution (Captive+Free) is likely to rise from 45.0-47.3 TWh
range expected in 2012 to 49.9-55.0 TWh in 2016.
It is anticipated that CEMIG GT, the company's energy generation
unit, would generate over 38.3 TWh of energy in the fiscal year
2012. This includes over 2.3 TWh secured through participation in
the secondary energy market.
Generation in 2016 is estimated to be roughly 35.4 TWh after
reaching 38.1 TWh in 2014. Moreover, the company expects the
existing contracts at CEMIG GT to be renewed at higher prices
EBITDA for the full company is very likely to be on a rising
trend in the years ahead. For 2012, EBITDA is expected to be within
R$5.4-6.2 billion range and reach R$5.74-6.6 billion range by
Presumably, the economic recovery in Brazil will prove to be
extremely efficacious in promoting growth for the company. Demand
for electricity in the country, which is already on the rise and
would probably get a boost as the country hosts two major sporting
events in the coming years.
CEMIG, one of the largest integrated electric utilities in
Brazil, has more than 6,896 megawatts of installed generation
capacity, deriving approximately 97% from hydroelectric
power. It faces stiff competition from its peer companies
Companhia Paranaense de Energia
CEMIG SA -ADR (CIG): Free Stock Analysis Report
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