CEMIG(US:CIG)2024-03-22 23:07Financial Data and Key Metrics Changes - The company reported a record net income of BRL 5.36 billion for 2023, reflecting a significant increase compared to previous years [34][76] - Adjusted EBITDA for Q4 2023 was greater than BRL 2 billion, with a recurring EBITDA growth of 16.6% over 2022 [32][34] - The company achieved a dividend yield of 12.4%, which is considered attractive in the current market environment [67][80] Business Line Data and Key Metrics Changes - CEMIG Distribution (CEMIG D) saw an EBITDA growth of almost 35% in Q4 2023, driven by a tariff review and increased demand due to higher temperatures [5][34] - CEMIG GT reported a recurring EBITDA growth of 37.7% in Q4 2023 compared to Q4 2022, with net income growing by 58.9% [13][34] - Gasmig, a natural gas distribution company, posted an EBITDA growth of 21.9% in 2023, attributed to tariff reviews and new investments [14] Market Data and Key Metrics Changes - The captive market for CEMIG D experienced a 2.4% growth, while distributed generation (DG) saw a 55% increase in energy injected compared to 2022 [8][34] - The migration of clients to distributed generation has impacted the concession area, with 18.4% of the total captive market now utilizing DG [7][8] Company Strategy and Development Direction - The company is focusing on divesting non-core assets and investing in regulated sectors, with a record investment plan of BRL 35.6 billion [70][76] - Future investments are planned to exceed BRL 6 billion in 2024, with a significant portion allocated to distribution [30][70] - The company aims to maintain its leadership in the trading sector while preparing for market openings [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet regulatory thresholds and maintain operational efficiency [12][73] - The company is committed to creating value for shareholders through both dividends and reinvestments in regulated sectors [20][22] - Management highlighted the importance of focusing on core activities and improving operational performance to drive future growth [66][70] Other Important Information - The company completed a successful debenture issuance of BRL 2 billion, reflecting strong investor confidence [39][40] - CEMIG has joined various sustainability initiatives, including the UN Global Compact, demonstrating its commitment to ESG principles [27] Q&A Session Summary Question: Could you comment on the growth of DEC in 2023? - Management acknowledged an increase in DEC due to extreme weather events but assured that it is back within regulatory thresholds as of February [55][56] Question: What is the company's approach to divestments? - The company has divested from non-strategic assets, generating significant cash inflow and avoiding capital injections in complex assets [16][17] Question: How does the company plan to handle actuarial liabilities? - Management stated that they are seeking structural solutions for actuarial liabilities and are awaiting court decisions on related matters [87]