CEMIG(CIG) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Recurring EBITDA reached BRL 7.3 billion, while total EBITDA including non-recurring items was BRL 8.3 billion, indicating strong cash generation to support a record investment program [3][13] - The company reported a recurring net profit of BRL 4.2 billion and a non-recurring net profit of BRL 4.9 billion, influenced by adjustments in post-employment liabilities [14][25] - The company achieved a credit rating upgrade to triple A from Moody's, reflecting significant improvement in credit quality [5] Business Line Data and Key Metrics Changes - Investments in distribution amounted to BRL 6.6 billion, with 23 new substations and over 12,000 km of low and medium voltage networks added [11][12] - In generation, BRL 411 million was invested in expansion and maintenance, while transmission saw investments of BRL 410 million focused on reinforcements and improvements [11][12] - Gasmig's Centro-Oeste project received BRL 217 million in investments, and Cemig SIM added 19 new solar plants with a total installed capacity of 68 MW [12] Market Data and Key Metrics Changes - The company experienced a 1.4% reduction in market share due to some clients migrating to the base network [26][31] - The hydrological risk management led to increased energy purchases at higher prices, impacting financial results [25][27] Company Strategy and Development Direction - The company aims to extend all its concessions, successfully securing extensions for Irapé, Queimado, and Pai Joaquim [9] - A focus on regulated sectors with guaranteed profitability supports the investment strategy, with a significant portion of investments aimed at stable revenue generation [4][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to generate sustainable results, emphasizing the importance of investments for future growth [10][24] - The company anticipates no actuarial risk from the healthcare plan for retirees, transitioning to a financial debt model [6][16] Other Important Information - The company maintained a dividend policy of distributing 50% of net profit, resulting in BRL 3.5 billion paid in dividends [7][8] - Cemig received multiple sustainability awards, including recognition in the Dow Jones Sustainability Index for 25 consecutive years [32][33] Q&A Session Summary Question: About the trading result in the fourth quarter - The trading result was positive at BRL 97 million, with plans to close positions for 2026 and 2027, aiming for future price increases starting in 2029 [35][36] Question: What is the ideal level of leverage for the company? - The current leverage is 2.3, expected to increase during the investment cycle, with a target to remain below 3.5 for credit rating evaluations [37][38] Question: Are there any plans to pay bonuses to shareholders in 2026? - Bonuses will be considered if profit reserves exceed capital stock, with evaluations ongoing throughout the year [40]