CEMIG Earnings above Est. in 1Q13 - Analyst Blog
May 20 2013 - 1:40PM
Zacks
Brazil-based integrated electric
utility, Companhia Energetica de Minas Gerais
(CIG), also known as CEMIG reported its financial results for the
first quarter 2013 on May 17, 2013. Net earnings in the quarter
were R$865 million (US$432.5 million), up 37% year over year.
Earnings per share were R$1.01 or
US$0.51 per ADR. This was way above the Zacks Consensus Estimate of
US$0.24 per ADR.
Revenue
CEMIG in the first quarter 2013
generated net revenue of R$3,677.6 million (US$1,838.8 million), up
15.2% compared with the year-ago revenues. Despite a fall in a few
categories, including a 9.4% decline in revenues from sales to end
customers, more than a double increase in revenue from Supply
+Transactions in the CCEE category drove the results.
Electricity sold in the quarter was
down 1.8% year over year to 10,796 GWh.
Expenses/Income
Operational costs and expenses in
the quarter totaled R$2,456 million (US$1,228 million), up 7% year
over year. The expenses soared because of higher personnel costs,
post-retirement benefits, cost of materials and purchased energy
costs among others, although there was fall in a few other
expenses, including contracted services, royalties, operating
provisions among others on a year-over-year basis.
EBITDA was R$1,590 million (US$795
million) in the quarter, reflecting a year-over-year growth of 28%.
EBITDA margin was 43.2% versus 38.9% in the year-ago quarter.
Operating margin in the quarter came in at 33.2% compared with
28.0% in the year-ago quarter.
Balance Sheet/Cash
Flow
Exiting the first quarter 2013,
CEMIG had cash and cash equivalents of approximately R$2,041
million (US$1,020.5 million) versus R$2,485.8 million (US$1,212.6
million) in the previous quarter. Talking of long-term debts, a
drastic decline was witnessed in loans, financing and debentures
that came in at R$2,644 million (US$1,322 million).
CEMIG generated approximately R$374
million (US$187 million) in cash from operating activities,
registering a year-over-year decline of 11%. Capital spending on
addition of fixed and intangible assets plummeted 70% to R$219
million (US$109.5 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 stock currently has a Zacks Rank #4 (Sell).
Other stocks to watch out for in
the industry are CPFL Energia S.A. (CPL) and
Empresa Nacional de Electricidad S.A. (EOC) with a
Zacks Rank #1 (Strong Buy) while ALLETE, Inc.
(ALE) with a Zacks Rank #2 (Buy).
ALLETE INC (ALE): Free Stock Analysis Report
CEMIG SA -ADR (CIG): Free Stock Analysis Report
CPFL ENERGI-ADR (CPL): Get Free Report
ENDESA-CHILE (EOC): Free Stock Analysis Report
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