CIG Posts Impressive 3Q - Analyst Blog

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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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CIG , ELP

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