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- **Resilient Investment Despite EBITDA Drop**: BRL 4.7 billion invested in 2025, offsetting 16.3% EBITDA decline.
- **Credit Strength**: AAA rating maintained with net debt/EBITDA at 1.76x, lowest in sector.
- **Strategic Trading Closure**: Reducing short positions to BRL 136 million impact from client migration.
- **Operational Efficiency**: 5.7-year debt tenure, 12.5% loss target met under new regulatory framework.

**【CEO Opening Remarks】**
- Highlighted resilience despite challenges: EBITDA of BRL 1.5 billion, maintaining AAA credit rating from 2 agencies.
- Key achievements: 
  - BRL 4.7 billion in 9-month investments (BRL 3.6 billion in distribution, BRL 149 million in generation, BRL 30 million in transmission).
  - Recognition as Brazil's best energy company by Veja Negócios.
  - Structural solution for retired employees' healthcare plan.
- Tariff review impact: BRL 500 million/year from 2025 investments, offsetting 2024 one-off gains (BRL 1.6 billion from Aliança sale, BRL 1.5 billion transmission tariff adjustment).

**【CFO Financial Commentary】**
- **Revenue Performance**: 
  - EBITDA dropped 16.3% YoY to BRL 1.5 billion due to lower GSF (BRL 54 million impact) and client migration to basic network (BRL 136 million impact).
  - Net profit fell 30.2% YoY to BRL 1.5 billion, driven by higher interest rates and leverage (net debt/EBITDA 1.76x, stable at safe levels).
- **Cash Flow**: 
  - 9-month cash from operations: BRL 3.4 billion; investments: BRL 4.5 billion; ending cash: BRL 2.3 billion.
  - Focus on long-term debt (average tenure 5.7 years) to mitigate rate risk.
- **Operational Efficiency**: 
  - Operating expenses grew below inflation, with investments in smart meters, tree pruning, and in-sourcing staff for faster service.

**【Q&A Highlights】**
1. **Technical Note 53 Impact**: 
   - Prospective application only; no retroactive adjustments.
   - Cemig's losses remain within regulatory limits (12.5% target) even under old methodology.
2. **Trading Strategy**: 
   - Closing short positions in 2025-2028 contracts to reduce market exposure.
   - Focus on strategic clients for limited spot sales, avoiding new position openings.
   - 2025 trading EBITDA down 4.7% YoY due to market contraction and client migration.

Companhia Energética de Minas Gerais - CEMIG (CIG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CIG.C

CIG.C fundamentals

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