Brazil-based integrated electric utility,
Companhia Energetica de Minas Gerais
also known as CEMIG
reported financial results for third quarter 2013 on Nov 14,
2013. Net earnings in the quarter were R$789 million (US$346.1
million), up 3% year over year.
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CEMIG generated net revenues of R$3,546 million (US$1,555.3
million) in the third quarter 2013, down 3.6% compared with the
year-ago revenues. The decline can be attributed to the impact of
renewal of concession transmissions and extraordinary tariff
Electricity sold (Cemig GT+ Cemig D) in the quarter increased
2.5% year over year to 15,399 GWh.
CEMIG's operational costs and expenses in the quarter totaled
R$2,793 million (US$1,225 million), down 0.1% year over year.
Costs including construction costs, use of network, royalties and
profit shares, among others decreased in the quarter. Partially
offsetting these were increased costs related to energy bought,
personnel, operational provisions and other expenses, among
EBITDA grew 1.7% year over year to R$1,289 million (US$565.4
million) in the quarter. EBITDA margin was 36.4% versus 34.5% in
the year-ago quarter.
Balance Sheet/Cash Flow
Exiting the third quarter 2013, CEMIG's cash and cash equivalents
increased 3.4% sequentially to roughly R$2,111 million (US$946.6
For the nine months ended Sep 30, 2013, CEMIG generated roughly
R$2,654 million in cash from operating activities, up 35% over
the year-ago period. Capital spend on fixed and intangible assets
purchase were R$609 million.
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 #5 (Strong Sell).
Other stocks to watch out for in the industry are
Tractebel Energia S.A.
) with a Zacks Rank #1 (Strong Buy) and
Alliant Energy Corporation
Brookfield Infrastructure Partners L.P.
) each with Zacks Rank #2 (Buy).