Companhia Energética de Minas Gerais (NYSE:CIG) Q3 2023 Earnings Call Transcript
Companhia Energética de Minas Gerais (NYSE:CIG) Q3 2023 Earnings Call Transcript November 11, 2023
Operator: Good afternoon, everyone, and welcome to Cemig's Third Quarter 2023 Earnings Video Conference Call. We inform that this call is being recorded, and will be available at the company's IR website, where you will also find the company's presentation. Should you need simultaneous interpreting, the feature is available by clicking on the globe icon located on the bottom of the screen, choosing interpretation, and then choose the language of your choice, Portuguese or English. For those that are following the call in English, you can also select mute original audio. Now I would like to turn the floor over to Carolina Senna, Investor Relations Superintendent. Please. Ms. Senna, you may proceed.
Carolina Senna: Good afternoon, everyone. I'm Carolina Senna, Cemig's Investor Relations Superintendent. We now start Cemig's third quarter 2023 earnings call and webcast with the following executives. Reynaldo Passanezi Filho, CEO; Dimas Costa, Chief Commercial Officer; Leonardo George de Magalhaes, CFO and IR Officer; Marco da Camino Ancona Lopez Soligo, Chief Participation Officer; Marney Tadeu Antunes, Chief Distribution Officer; and Thadeu Carneiro da Silva, Chief Generation and Transmission Officer. For the initial remarks, I now turn the floor over to our CEO, Reynaldo Passanezi Filho. Mr. Passanezi Filho, the floor is yours.
Reynaldo Passanezi Filho: Good afternoon. Good afternoon, everyone. It is a pleasure to be here with you on this new quarter, bringing consistent results, thanks to our strategy and to our discipline in terms of capital allocation and efficiency. These are the highlights for the third quarter, an EBITDA of BRL2 billion, net profit of BRL1.2 billion, annualizing it. And I think this is the reality of the company. We are talking about an EBITDA of around BRL8 billion a year and a net profit close to BRL5 billion. These are very significant numbers that show how successful our strategy is. You see here the figure, the 28% growth in the adjusted EBITDA quarter-on-quarter, and 20% for the net profit. And how are we able to do that?
And it's always important to mention our strategy here and our strategy in terms of management. And we have a very simple strategy. It's called to focus in the state of Minas Gerais and to be winners. So we are running the largest investment program in the company's history, focused in the area that we know and the businesses that we know. We are no longer investing in minority shareholders -- oh, projects outside of Minas Gerais and all our efforts now are to invest to Minas Gerais clients. This is a very clear strategy, where the capital allocation is being done in the businesses that we know, in distribution, generation, transport in Minas Gerais. We have also a trading company, we sell for the whole country. So we are also investing in gas in Minas Gerais, and distributed generation in Minas Gerais.
So here we are concentrating all our investments. This is the capital allocation that we have been doing. This is the main investment program. It's not in this slide, but you will see the figures. We have the investment figures. Obviously, you don't need to pull up the slides because we'll go over that. But we have BRL954 million. We have almost four times the amount of the investment when we compare that to 2018. This -- these are very consistent numbers of a capital allocation in regulated sectors with a known profitability, mostly when we invest in generation. Also, we invest with associated PPA, therefore also with guaranteed profitability in sectors that we know and we follow our divestment process in the areas that are not a priority and that we are leaving.
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