CEMIG(CIG)2024-11-18 16:10Financial Data and Key Metrics Changes - The company achieved its highest EBITDA in history at BRL 5 billion for Q3 2024, reflecting a significant turnaround and financial strength [8][19] - The company received a AAA rating, the best in its history, with over six notches of growth in a five-year period [6][20] - Cash generation remained robust, with BRL 1.8 billion in EBITDA for the quarter [31] Business Line Data and Key Metrics Changes - The sale of Alianca Energia resulted in a capital gain of BRL 1.6 billion [7][34] - The transmission tariff revision contributed an additional BRL 1.5 billion in IFRS adjustments [8][34] - Investments in distribution increased significantly, with BRL 4.4 billion realized investments, nearly four times the previous levels [28][29] Market Data and Key Metrics Changes - The average tariff adjustment for the quarter was 7.32%, with market growth of 4.5% in Minas Gerais [33][52] - The captive market showed a slight decline, while residential clients improved due to high temperatures [53] Company Strategy and Development Direction - The company is focused on a bold investment plan of BRL 6.2 billion for the year, with expectations to invest over 90% of the forecasted amount [28][29] - The controlling shareholder has submitted a bill to turn Cemig into a corporation, indicating a strategic shift [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future cash generation and the impact of upcoming tariff reviews in 2028 [79] - The company is committed to maintaining low leverage while executing a significant investment program [79] Other Important Information - The company was recognized as one of the most transparent companies in Brazil due to the quality of its financial statements [30] - The company is investing in technology and digital transformation to prepare for future challenges [67] Q&A Session Summary Question: Understanding the bill of law for Cemig to become a corporation - Management indicated that the best entity to answer this would be the Minas Gerais administration, and a referendum may be required if the bill is approved [71][73] Question: Insights on energy purchase and sale in the quarter - The company did not need to purchase energy due to not being in an open position, but faced price differences due to market dynamics [75][77] Question: Projections on leverage and dividends - The company expects leverage to increase due to dividends and investments, projecting a leverage ratio between 2 and 2.5 by 2027 [79]