Brazil-based integrated electric utility,
Companhia Energetica de Minas Gerais
also known as Cemig, reported its financial results for second
quarter 2013 on Aug 14, 2013. Net earnings in the quarter were
R$617 million ($299.5 million), up 2% year over year.
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Earnings per share were R$0.64 or 31 cents per ADR, up 1.6% year
over year but were roughly 47.5% below the Zacks Consensus
Estimate of 59 cents per ADR.
Cemig generated net revenue of R$3,439 million ($1,669.4 million)
in the second quarter 2013, down 1% compared with the year-ago
revenues. The decline can be attributed to fall in sales to end
customers, declines in TUSD (tariff for use of the distribution
system), revenues from Transmission network and construction
Electricity sold by Cemig in the quarter increased 2.3% year over
year to 14,901 GWh.
Cemig's operational costs and expenses in the quarter totaled
R$2,658 million ($1,290.3 million), up 6% year over year. The
expenses soared because of higher expenses on post-retirement
benefits, materials costs, and purchased energy costs, among
others. While few others, including royalties, charges for use of
basic transmission network, among others fell on a year-over-year
EBITDA grew 3% year over year to R$1,252 million ($607.8 million)
in the quarter. EBITDA margin was 36.4% versus 35.1% in the
year-ago quarter. Operating margin in the quarter came in at
22.7% compared with 27.5% in the year-ago quarter.
Balance Sheet/Cash Flow
Exiting the second quarter 2013, Cemig's cash and cash
equivalents slipped 20.1% sequentially to roughly R$2,041 million
($1,020.5 million). Long-term debts declined 13.6% sequentially
to R$2,284 million (US$1,024.2 million).
Cemig generated R$1,566 million ($760.2 million) cash flow from
operating activities, up 95.3% year over year. A drastic increase
was witnessed in spending on addition of fixed and intangible
assets; while capital expenditure in the quarter were R$2,349
million ($1,140.3 million) compared with R$427 million in the
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
Huaneng Power International, Inc.
), with a Zacks Rank #1 (Strong Buy), while
Alliant Energy Corporation
UNS Energy Corporation
) carry a Zacks Rank #2 (Buy).