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Cemig 1Q12 Profit Rises - Analyst Blog

Brazil-based integrated electric utility, Companhia Energetica de Minas Gerais (CIG) , also known as CEMIG reported a 20% year-over-year increase in its first quarter 2012 net income, settling at R$631 million (US$356.5 million).

Revenue: Net revenue in the first quarter was R$4,148 million (US$2,343.5 million), up 15% year over year. The increase was primarily driven by a 2.6% growth in electricity sold, that reached 18,619 GWh at the end of the quarter.

Expenses/Income: Operational expenses in the quarter totaled R$2,945 million (US$1,663.8 million), up 16.0% year over year.

EBITDA in the quarter soared 11% year over year to R$1,440 million (US$813.6 million) while margin stood at 34.7%. Operating margin in the quarter decreased 40 basis points to 29.0%.

Balance Sheet/Cash Flow: Exiting the first quarter, the company's cash and cash equivalents were R$2,235 million (US$1,228.0 million) compared with R$2,862 million (US$1,538.7 million) in the previous quarter. Loans and financing increased by 8.9% to R$5,837 million (US$3,207.1 million).

Cash generated by operations increased 24% year over year to R$938 million (US$530 million) while the company also raised its capital spending by 15% to R$479 million (US$270.6 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 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 Nasdaq, Inc.


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

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