Companhia Energetica de Minas Gerais SA

CIG.C

Equity

ISIN null / Valor 3199566

New York Stock Exchange, Inc (2025-11-21)

USD 2.03+0.50%

Companhia Energetica de Minas Gerais SA
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About company

Companhia Energetica de Minas Gerais SA, also known as Cemig, is the largest energy trader in Brazil, with a strong focus on electricity generation, transmission, and distribution. The company operates a transmission grid of almost 5,000 km, making it one of the largest power transmission groups in the country. Cemig has stakes in numerous generation projects, including hydroelectric plants, wind farms, and a photovoltaic plant, with a significant presence in 10 Brazilian states. Cemig Distribution S/A is one of the largest electricity distributors in Brazil, serving approximately 96% of the State of Minas Gerais and providing high-quality service to low-income consumers. Additionally, "Gasmig" is the exclusive distributor of piped natural gas in the State of Minas Gerais, serving various segments including industrial, residential, and commercial. Founded in 1952, Cemig Group is recognized for its size, technical competence, and extensive presence across Brazil.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Financial Performance

The company achieved robust earnings with a consolidated EBITDA of R$2.01 billion and an adjusted EBITDA of R$2.21 billion in 2Q25, complementing a net profit of R$1.19 billion and an adjusted net profit of R$1.32 billion.

Tariff Adjustments

A tariff adjustment averaging 7.78% from May 28, 2025, played a key role, along with maintaining energy losses within regulatory limits and significantly better Opex performance (R$139.0 million lower than the regulatory level in 1H25).

Operational Efficiency

Operational improvements included a 2.5% year-on-year increase in the consolidated PMSO, an EBITDA-positive impact from retirement obligations, and a cost-saving transition for 682 employees migrating to the Health Plan mode in 2Q25, reducing post-employment expenses.

Energy Trading and Investment

While energy trading presented a negative effect of R$69.1 million on EBITDA due to spot price differences exposure, the company invested a total of R$2.8 billion in 1H25 (up 2.6% compared to 1H24), demonstrating its commitment to strategic growth and infrastructure development.

Financial Leverage and Capital Actions

Low leverage remained a strategic advantage, with a net debt/adjusted EBITDA ratio of 1.6x at the end of June 2025. Additionally, significant moves in debt structure and capital markets were observed, including a R$1.9 billion debenture issue and raising US$40 million through a full swap transaction, alongside the declaration of an interest on equity of R$596.7 million.

Summarized from source with an LLMView Source

Key figures

-18.6%1Y

-37.7%3Y

-6.86%5Y

Performance

42.0%1Y

47.3%3Y

51.8%5Y

Volatility