Companhia Energetica de Minas Gerais (CIG - Free Report) , also known as CEMIG, reported a loss of R$84 million ($26.6 million) in third-quarter 2017. This compares unfavorably with the year-ago quarter’s net income of R$434 million ($133.5 million).
The results suffered from rise in operating expenses and equity method losses in non-consolidated investees, more than offsetting revenue growth in the quarter.
Revenues Grow Y/Y
The quarter’s net revenues were R$5,135.8 million ($1,625.3 million), reflecting an increase of 4.9% from the year-ago quarter.
The company sold 14,046 Gigawatt hours of electricity in the quarter, increasing 1.5% year over year. Units solid to residential customers grew 2.8% while that to commercial and rural customers increased 16.6% and 0.1%, respectively. Electricity supplied for public lighting grew 4.6% and that for public services jumped 6.2%. Own consumption of electricity increased 4.3% and wholesale supply grew 14%.
High Operating Expenses Hurt Margin
CEMIG’s margin profile weakened in the third quarter as the gain from revenue growth was more-than-offset by rise in operating expenses. As noted, operating expenses in the quarter soared 31.1% year over year to R$5,160.4 million ($1,633 million). The increase was largely due to 13.8% rise in post-retirement obligations, 16.3% in outsourced services, 35.6% electricity purchased for resale, 79.6% in charges for use of the national grid and 55.1% in gas bought for resale. Also, operating expenses represented 100.5% of net revenues versus 80.4% in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 91.6% year over year to R$100.6 million ($31.8 million). The quarter’s EBITDA margin of 2% was way below 24.4% in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the third quarter, CEMIG had cash and cash equivalents of R$582 million ($184.2 million), down from R$946 million ($286.7 million) at prior-quarter end. Loans and financings decreased 5.9% sequentially to R$8,856 million ($2,802.5 million).
In the first nine months of 2017, the company generated net cash of R$2,143 million ($676 million) from its operating activities, growing substantially from R$229 million ($64.5 million) generated in the year-ago period. Capital spent on fixed and intangible assets decreased 7% to R$783 million ($247 million).
During the period, the company paid approximately R$269 million ($84.9 million) as interest on equity and dividends.
Comp En De Mn Cemig ADS Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Companhia Energetica de Minas Gerais (CIG - Free Report) , also known as CEMIG, reported a loss of R$84 million ($26.6 million) in third-quarter 2017. This compares unfavorably with the year-ago quarter’s net income of R$434 million ($133.5 million).
The results suffered from rise in operating expenses and equity method losses in non-consolidated investees, more than offsetting revenue growth in the quarter.
Revenues Grow Y/Y
The quarter’s net revenues were R$5,135.8 million ($1,625.3 million), reflecting an increase of 4.9% from the year-ago quarter.
The company sold 14,046 Gigawatt hours of electricity in the quarter, increasing 1.5% year over year. Units solid to residential customers grew 2.8% while that to commercial and rural customers increased 16.6% and 0.1%, respectively. Electricity supplied for public lighting grew 4.6% and that for public services jumped 6.2%. Own consumption of electricity increased 4.3% and wholesale supply grew 14%.
High Operating Expenses Hurt Margin
CEMIG’s margin profile weakened in the third quarter as the gain from revenue growth was more-than-offset by rise in operating expenses. As noted, operating expenses in the quarter soared 31.1% year over year to R$5,160.4 million ($1,633 million). The increase was largely due to 13.8% rise in post-retirement obligations, 16.3% in outsourced services, 35.6% electricity purchased for resale, 79.6% in charges for use of the national grid and 55.1% in gas bought for resale. Also, operating expenses represented 100.5% of net revenues versus 80.4% in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 91.6% year over year to R$100.6 million ($31.8 million). The quarter’s EBITDA margin of 2% was way below 24.4% in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the third quarter, CEMIG had cash and cash equivalents of R$582 million ($184.2 million), down from R$946 million ($286.7 million) at prior-quarter end. Loans and financings decreased 5.9% sequentially to R$8,856 million ($2,802.5 million).
In the first nine months of 2017, the company generated net cash of R$2,143 million ($676 million) from its operating activities, growing substantially from R$229 million ($64.5 million) generated in the year-ago period. Capital spent on fixed and intangible assets decreased 7% to R$783 million ($247 million).
During the period, the company paid approximately R$269 million ($84.9 million) as interest on equity and dividends.
Comp En De Mn Cemig ADS Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on NI - FREE
Get the latest research report on CIG - FREE
Get the latest research report on DTE - FREE