Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q4 2023 earnings summary

Executive summary

• FY2023 adjusted EBITDA reached R$8.078bn, up 16.6% YoY, and adjusted net profit was R$5.359bn, up 15.0%; both were records.

• 4Q23 adjusted EBITDA was R$2.163bn, up 30.5% YoY, and adjusted net profit was R$1.684bn, up 39.8%; FY2023 investment reached a record R$4.829bn.

Financial highlights

• FY2023 IFRS EBITDA was R$8.504bn vs. R$6.869bn in 2022; recurring EBITDA was R$8.078bn vs. R$6.928bn.

• FY2023 IFRS net profit was R$5.767bn vs. R$4.094bn; recurring net profit was R$5.359bn vs. R$4.660bn.

• 4Q23 IFRS EBITDA was R$2.453bn vs. R$1.969bn; recurring EBITDA was R$2.163bn vs. R$1.658bn.

• 4Q23 IFRS net profit was R$1.886bn vs. R$1.406bn; recurring net profit was R$1.684bn vs. R$1.204bn.

• 4Q23 net revenue was R$9.96bn, up 2.1% YoY; operating profit rose 23.2% to R$1.95bn.

Outlook and guidance

• Planned investment totals R$35.6bn for 2024–2028, including R$6.216bn in 2024; priorities include grid modernization, generation expansion and customer service.

• Boa Esperança and Jusante solar plants were 90% complete, with 188 MWp capacity and operations planned for end-1H24.

• Gasmig’s Center-West pipeline targets 300 km of network, with R$780mn allocated capex and construction expected to start in 1H24.

• 2024 distribution plans include 335,000 field inspections, 540,000 obsolete meter replacements and 250,000 smart meter installations.