CEMIG(US:CIG)2026-03-20 15:02Financial Data and Key Metrics Changes - Recurring EBITDA for 2025 was BRL 7.3 billion, with total EBITDA reaching BRL 8.3 billion, reflecting a significant cash generation to support a record investment program [4][15] - 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 and increased financial expenses due to higher leverage [17][19] - The company achieved a credit rating upgrade to triple A from Moody's, marking a significant improvement in credit quality [6] Business Line Data and Key Metrics Changes - Investments in distribution amounted to BRL 6.6 billion in 2025, with 23 new substations and over 12,000 km of low and medium voltage networks added [13] - In generation, BRL 199 million was invested in the GSF auction, with a total of BRL 411 million allocated for expansion and maintenance [13] - Transmission investments totaled BRL 410 million, focusing on reinforcements and improvements [14] Market Data and Key Metrics Changes - The company experienced a 1.4% reduction in market performance, attributed to clients migrating to the base network [28] - The hydrological risk management led to increased energy purchases at higher prices, impacting overall costs [27][29] Company Strategy and Development Direction - The company aims to extend all concessions, successfully securing extensions for Irapé, Queimado, and Pai Joaquim [10] - A significant focus on regulated sectors with guaranteed profitability is evident, with nearly BRL 10 billion accumulated in the distribution area awaiting tariff review [5] - The investment strategy is designed to support the development of Minas Gerais, with a clear objective to enhance service quality and operational efficiency [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate future challenges, emphasizing the importance of sustainable healthcare plans for retirees [18] - The company anticipates no impact from healthcare plan liabilities starting in 2026, which will improve financial balance [19] - Future energy prices are expected to rise, presenting opportunities for selling energy starting in 2029 [40] Other Important Information - The company maintained a dividend policy of distributing 50% of net profit, resulting in BRL 3.5 billion paid in dividends [9] - Cemig received multiple sustainability awards, including recognition in the Dow Jones Sustainability Index for 25 consecutive years [34][35] Q&A Session Summary Question: Trading result in Q4 and energy balance perspective - The trading result was positive at BRL 97 million, with cautious management of positions for 2026 and 2027, aiming to close open positions by 2029 [38][40] Question: Ideal leverage level and annual interest percentage - Current leverage is at 2.3, expected to increase during the investment cycle, with a nominal cost of 13% corresponding to 87% of the CDI [42][43] Question: Plans for shareholder bonuses in 2026 - Bonuses will be considered if profit reserves exceed capital stock, with updates to be provided as necessary [45]