Brazil-based integrated electric utility,
Companhia Energetica de Minas Gerais
), also known as CEMIG reported a 43% year-over-year increase in
its third quarter 2012 net income, which settled at R$937
million (US$468.5 million).
CEMIG SA -ADR (CIG): Free Stock Analysis
COPEL-ADR PR B (ELP): Free Stock Analysis
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Net revenue in the third quarter came in at R$4,810.1 million
(US$2,405.1 million), up 19% year over year. Electricity sold in
the quarter climbed 1.7% to 17,715 GWh at the end of the quarter.
Operational costs and expenses in the quarter totaled R$3,545.3
million (US$1,772.7 million), up 26.8% year over year. The
expenses soared because of higher personnel costs, material
costs, electricity bought for resale, infrastructure construction
costs and gas bought for resale, among others.
EBITDA was R$1,753 million (US$876.5 million) in the quarter,
reflecting a year over year improvement of 18%. EBITDA margin was
36.4% versus 36.9% in the year-ago quarter. Operating margin in
the quarter came in at 26.3% compared with 30.7% in the year-ago
Balance Sheet/Cash Flow
Exiting the third quarter, the company's cash and cash
equivalents were R$2,539 million (US$1,269.5 million), up 8.7%
sequentially. Loans, financing and debentures came in at R$9.7
billion (US$4.85 billion), up 38.6% from the previous quarter.
Cash generated by operations increased 16.4% year over year to
R$1,533 million (US$766.5 million), while the company also raised
its capital spending by 18.3% to R$803 million (US$401.5
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 company
competes with its other players including
Companhia Paranaense de Energia
). The company recently released its third quarter 2012 results
with a net income coming in at R$319.3 (US$159.7 million) or
R$1.17 per share (US$0.59 per ADR).
The stock currently bears a Zacks #3 Rank, which translates into
a short-term (1-3 months) Hold rating.