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March 18, 2008 |
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CIA. ENERGETICA: Net Profit Increases 1% to BRL1.74 Bln. in 2007 Companhia Energetica de Minas Gerais's net profit increased 1% to BRL1.74 billion in 2007, from BRL1.72 billion in 2006. Business News Americas relates that Companhia Energetica's gross revenues rose 17.6% to BRL15.8 billion in 2007, compared to BRL13.4 billion in 2006. Its net revenue increased 21% to BRL10.2 billion and Ebitda grew 26% to BRL4.07 billion. Companhia Energetica told BNamericas that its energy sales rose 16.0% to 57.9 terra watt-hours in 2007, compared to 2006. BNamericas notes that Companhia Energetica's power sales to final consumers increased to 11.6 terra watt-hours in the fourth quarter 2007, from 10.8 terra watt-hours in the same period in 2006. Companhia Energetica said, "The increase was due to the economic growth in Minas Gerais state as well as market opportunities that allowed the company to sell power to Argentina and Uruguay in 2007." According to BNamericas, Companhia Energetica will invest some BRL1.5 billion in 2008, about 68.6% greater than 2007. Investments planned for power generation and distribution will be BRL334 million and BRL1.18 billion in 2008 respectively. The report says that Companhia Energetica's net profit decreased to BRL266 million in the fourth quarter 2007, from BRL606 million in the fourth quarter 2006. The firm's net revenues increased to BRL2.63 billion from BRL2.17 billion. Its Ebitda declined to BRL1.07 billion from BRL1.12 billion. "The main reasons for the reported net income of BRL266 million were higher financial expenses, the absence of tax benefits from interest on capital, and higher employee participation/pension fund expenses, which totaled BRL455 million versus BRL210 million last year," Deutsche Bank market analyst Marcus Sequeira commented to BNamericas. Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/ -- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. |
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