CEMIG(CIG) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of R$ 30.6 billion, significantly higher than in 2019, with a net income adjusted and consolidated showing an increase of almost 12% to R$ 1.7 billion [5][29] - Gross debt is controlled, with a net debt to EBITDA ratio of 1.55, indicating a better credit rating and a comfortable cash position of over R$ 5 billion [5][44] - The adjusted EBITDA for the third quarter grew by 24% to R$ 1.3 billion, while net profit surged by 77% to R$ 644 million [32] Business Line Data and Key Metrics Changes - Cemig distribution experienced a slight reduction in adjusted EBITDA of 7.6%, reaching R$ 572 million, but net profit increased by 22.4% to R$ 306 million [34] - Cemig GT showed a strong performance with adjusted EBITDA up 61% to R$ 539 million and adjusted net profit increasing over 200% to R$ 164 million [33] Market Data and Key Metrics Changes - The total energy distributed by Cemig increased by 1.4% year-on-year, with a 3.6% drop in the captive market but a 7.8% increase in transmission for free clients [26][31] - Load recovery was evident, with a 3% increase in September compared to the previous year, and a significant recovery in October, particularly among incentive-bearing clients [23][24] Company Strategy and Development Direction - The company is focused on digital transformation and modernization of customer relations, with plans for new investments in generation and renewable energy projects totaling over 2 gigawatts [46][47] - Cemig is committed to maintaining a 50% dividend payout policy while ensuring liquidity for upcoming investments and concession maintenance [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery process and highlighted the importance of operational efficiency, with operating expenses lower than regulatory limits for the first time [14][39] - The company anticipates favorable outcomes from ongoing regulatory discussions and expects to extend concessions, which will add value [45] Other Important Information - Cemig was included in the Dow Jones Sustainability Index for the 21st consecutive year, reflecting its commitment to sustainability practices [16] - The company has successfully reduced manageable costs by 4.7% compared to the previous year, indicating strong operational efficiency [36] Q&A Session Summary Question: When will dividends be paid and what is the dividend policy? - The company aims to maintain a 50% dividend payout policy, balancing shareholder remuneration with liquidity needs for upcoming investments and concession maintenance [50]