Cemig's Q1 2025 Earnings Call: Navigating Key Contradictions in Health Care, Dividends, and Capital Strategy

Health care plan migration, dividend policy, short position rationale, divestments and asset sales, capital structure and indebtedness are the key contradictions discussed in Companhia Energética de Minas Gerais - CEMIG's latest 2025Q1 earnings call.



Dividend Payout and Investment Program:
- CEMIG announced it will continue with its practice of paying 50% of its net profit as dividends.
- This policy is supported by the company's strong financial position and its focus on maintaining a conservative leverage ratio.

Debenture Issuance and Financial Strength:
- CEMIG successfully issued BRL5 billion in debentures, with a tenure extended to seven years, maintaining its AAA credit rating by Fitch Ratings.
- This issuance was achieved through a combination of strong demand and competitive pricing conditions.

Investment in Network Infrastructure:
- CEMIG's investment program focuses on network development, with over 75% of investments dedicated to distribution, transmission, and gas infrastructure.
- These investments are aimed at supporting energy transition and enhancing the company's regulatory stability and profitability.

Efficiency and Cost Management:
- CEMIG achieved a reversal of provisions of BRL28 million through a migration of over 1,000 employees from the PSI health care plan to a new plan.
- This move, along with other cost-saving measures, contributes to the company's efficiency and regulatory compliance.