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Cia Energetica DE Minas Gerais - Cemig (CIG) Q4 2024 Earnings Call Highlights: Record EBITDA ...

In This Article:

  • EBITDA: BRL11.3 billion, a 32% increase from the previous year.

  • Net Profit: Almost BRL1 billion for the year.

  • Investments: BRL5.7 billion, marking a 34.8% annual average growth.

  • Dividends: Proposed BRL5 billion distribution, pending shareholder approval.

  • Debt: BRL9.9 billion, with a focus on sustainability-linked debentures.

  • Cash Flow: Ended 2023 with BRL2.4 billion in cash.

  • Rating: Achieved AAA rating.

  • Transmission Tariff Review: Positive impact of BRL1.5 billion.

  • DEC Indicator: Reduction of 2.5 hours, improving service quality.

  • Trading Company Margin: BRL600 million drop in EBITDA due to expected margin decline.

  • Non-Recurring Effects: BRL3.6 billion, including tariff review and asset sales.

  • Cash from Operations: BRL5.9 billion.

  • Alianca Divestment: BRL2.7 billion received.

  • Renewable Energy Certificates: Issued with own generation and contracts.

  • Customer Inspections: 384,000 conducted to combat delinquency.

  • OpEx: BRL156 million below regulatory limits.

Release Date: March 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cia Energetica DE Minas Gerais - Cemig (NYSE:CIG) achieved the highest EBITDA and net profit in its history for 2024, marking a significant financial milestone.

  • The company received a AAA rating, the best in its history, reflecting strong financial health and investor confidence.

  • Cemig's investment in infrastructure and regulated sectors reached BRL5.7 billion, contributing to increased profitability and sustainability.

  • The company successfully completed a divestment program, including the sale of Alianca Energia, positively impacting financial results.

  • Cemig's commitment to sustainability is evident with its inclusion in the DJSI for the 25th consecutive time and achieving top scores in transparency criteria.

Negative Points

  • Cemig experienced a drop in trading company margins, resulting in a BRL600 million decrease in EBITDA compared to the previous year.

  • The company faced higher tax payments due to increased net profits, impacting overall financial results.

  • There was a reduction in the cubic meter volume for industrial clients, negatively affecting the gas segment's performance.

  • Cemig's debt profile showed a slight increase in leverage, which is expected to rise further with ongoing investment programs.

  • The company is still working on divestments and strategic planning, indicating ongoing restructuring efforts that may pose challenges.

Q & A Highlights

Q: Can you comment on the negotiations regarding the migration of healthcare plans and provide an update on potential asset divestments? A: Cristiana Maria Fortini Pinto E Silva, Vice President - Legal Affairs: We had a favorable ruling in the labor court regarding the healthcare plan, allowing for indefinite post-employment benefits. We are open to negotiations with the union to ensure financial sustainability while protecting employees. Marco Da Camino Lopez Soligo, Vice President of Equity Holdings: We are working on divestments, including [Taiza Belamonchi] and consolidating minor holdings, with updates to be provided in due time.