Back to top

Analyst Blog

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


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.


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 - Analyst Report). 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.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%