The following is a summary of the Companhia Energética De Minas Gerais - CEMIG (CIG) Q1 2024 Earnings Call Transcript:
Financial Performance:
CEMIG reported a decline in its Q1 2024 recurring EBITDA by 4% due to increased operational expenses and a divestment of nonstrategic assets.
Net profit saw a reduction due to impacts from foreign exchange and an increase in Cemig distribution depreciation due to the enlarged asset base.
They generated operating cash at an average of BRL 2 billion per quarter, resulting in a cash position of BRL 4.5 billion by Q1's end.
Business Progress:
The company experienced 4.4% growth in the energy market, encompassing both transported energy and captive market growth.
Focused on its core business, CEMIG plans to divest from minority stakeholdings and nonstrategic assets while investing in distribution, generation, and transmission.
They completed the disposal of Aliança Energia for BRL 2.7 billion and plan to dispose of four more plants in July 2024.
CEMIG has become 100% renewable and intends to start operations at two significant photovoltaic generation solar plants in July 2024.
A massive BRL 35 billion investment program is underway up to 2028 with around 75% of funds already contracted or under the bidding process. In 2024, investments are expected to surge to BRL 6 billion layered against the BRL 1 billion invested in 2018.
CEMIG is deploying resources and initiatives to enhance service provision and operational efficiency, including an ongoing digital transformation process and an increased focus on renewable investments.
More details: Energy Company of Minas Gerais IR
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