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Brazil-based integrated electric utility, Companhia Energetica de Minas Gerais (CIG - Analyst Report), 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 - Analyst Report).

The stock currently bears a Zacks #3 Rank, which translates into a short-term (1-3 months) Hold rating.

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