Brazil-based integrated electric utility,
Companhia Energetica de Minas Gerais
(
CIG
), 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).
Revenue
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.
Expenses/Income
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
quarter.
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
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 company
competes with its other players including
Companhia Paranaense de Energia
(
ELP
). 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.
CEMIG SA -ADR (CIG): Free Stock Analysis
Report
COPEL-ADR PR B (ELP): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research