What does Energy Co Pref ADR do and what are its main business segments?

Did Energy Co Pref ADR beat or miss consensus estimates last quarter?

What is Energy Co Pref ADR's latest dividend and current dividend yield?

What guidance did Energy Co Pref ADR's management provide for the next earnings period?

What factors drove the changes in Energy Co Pref ADR's revenue and profit?

What were the key takeaways from Energy Co Pref ADR’s earnings call?

What is Energy Co Pref ADR's gross profit margin?

What is the revenue and EPS growth rate for Energy Co Pref ADR year over year?

- **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.

CIG

CIG fundamentals

You can ask Aime