CEMIG(US:CIG)2021-11-13 04:03Financial Data and Key Metrics Changes - EBITDA for the first nine months reached R$6.3 billion, up 53% year-over-year, while net profit was R$2.8 billion, a 75% increase compared to the same period in 2020 [2][26] - Adjusted EBITDA growth was over 19%, reaching R$4.441 billion for the last nine months [26] - In Q3, EBITDA was R$1.910 billion, up 29%, while recurring EBITDA was R$1.469 billion, an increase of 6.4% [27] Business Line Data and Key Metrics Changes - CEMIG Distribution saw a 4.3% growth in distributed energy, with transport for clients growing by 7.9% [24][30] - CEMIG GT reported an EBITDA of R$799 million, down 37% when adjusted for the transfer of trading margin to the Holding company [28] - CEMIG Distribution's accounting EBITDA was down 10% to R$722 million, but recurring growth was 24% [32] Market Data and Key Metrics Changes - The volume of energy injected for distributed generation grew by 87% year-over-year, representing 4.2% of the total energy market in the concession area [31] - The collection index reached 98.55%, indicating improved collection efforts [19] Company Strategy and Development Direction - The company is focusing on its core business in Minas Gerais, with an investment plan of R$22.5 billion over the next five years [7][8] - The divestment of stakes in Renova was completed, aligning with the strategic plan to eliminate risks associated with non-core assets [6][8] - The company aims to enhance operational efficiency and maintain regulatory compliance in terms of OpEx and EBITDA [3][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving the highest EBITDA in the company's history despite challenges [3] - The company is committed to reducing losses to below regulatory levels and improving operational indicators [21][22] - Future expectations include a stabilization of energy prices and a focus on renewable energy investments [50][52] Other Important Information - The company achieved its best credit ratings in history, with improvements from Fitch and Standard & Poor's [4][16] - The company is actively working on a digital transformation strategy and enhancing customer relationships [44] Q&A Session Summary Question: Can you talk about the potential of tax credit and Renova transaction? - Management indicated that the tax credit from the Renova transaction could be around R$500 million, positively impacting financial statements [48] Question: What is the expectation for GSF for 2022 and impacts on tariffs? - Management expects GSF to be low, around 0.7, with a conservative approach already provisioned in the balance sheet [52][53] Question: Can you comment on the contract signed with developers to improve CEMIG's available energy? - Most projects are expected to start in 2022, with some delays due to logistics issues [56] Question: What are the plans for investments in wind energy? - The company has a pipeline of over two gigawatts for renewable sources, with significant investments planned [63] Question: Can you comment on the divestment plan perspectives? - The divestment plan is ongoing, with opportunities being studied for assets like Santo Antônio and Belo Monte [66]