Brazil-based integrated electric utility
Companhia Energetica de Minas Gerais
), popularly known as CEMIG, recently posted a 15% year-over-year
increase in net income, to R$604.2 million (US$308.3 million) in
the second quarter 2012.
Net revenue in the second quarter stood at R$4,413.9 million
(US$2,251.9 million), up 16.0% year over year, despite a 0.17% dip
in electricity sold to 16,907 GWh at the end of the quarter.
Operational costs and expenses in the quarter totaled R$3,225.9
million (US$1,645.8 million), up 15.7% year over year. This was
primarily due to higher costs on employee profit shares,
electricity bought for resale, operational reversals, charges for
use of the national transmission grid and gas bought for
EBITDA in the quarter improved 14% year over year to R$1,433
million (US$731.1 million) primarily on the back of operational
efficiency. EBITDA margin stood at 32.5% versus 32.9% in the
year-ago quarter. Operating margin in the quarter came in at 26.9%
compared with 26.7% in the year-ago quarter.
Balance Sheet/Cash Flow:
Exiting the second quarter, the company's cash and cash
equivalents were R$2,335 million (US$1,122.5 million) compared with
R$2,235 million (US$1,423.6 million) in the previous quarter.
Loans, financing and debentures came in at R$16.0 million ($7.69
Cash generated by operations declined 20.6% year over year to
R$807 million (US$411.7 million), while the company also raised its
capital spending by 6.0% to R$479 million (US$244.4 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 primarily competes
Companhia Paranaense de Energia
In the long run, we have an Outperform recommendation on CEMIG.
However, the stock currently carries 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
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