Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q4 2024 earnings summary

Executive summary

• Achieved record EBITDA of R$11.3 billion in 2024, up 32.3% year-over-year, and net profit of R$7.1 billion, up 23.4% year-over-year, marking the best results in company history.

• Annual investments reached R$5.7 billion, with 91.8% execution of the plan, focusing on modernization, infrastructure, and customer service.

• Maintained AAA Fitch rating, the highest in company history, reflecting strong cash generation and disciplined capital allocation.

• Completed major divestments, including the sale of Aliança Energia, reallocating resources to regulated segments.

• Recognized for sustainability with 100% clean energy matrix, inclusion in DJSI for the 25th consecutive year, and top ESG scores.

Financial highlights

• EBITDA grew 32.3% to R$11.3 billion; net profit rose 23.4% to R$7.1 billion year-over-year.

• 4Q24 EBITDA was R$1.9 billion, down 21.9% from 4Q23; net profit for 4Q24 was R$998 million, down 47.1%.

• Dividend yield reached 15.1%, the highest in the electric sector, with R$1.9 billion in dividends to be approved at the 2025 AGM.

• Market value increased by R$7.2 billion in 2024, ending the year at R$35.1 billion.

• Preferred shares rose 43% in the year, with PN shares up 42.18% and ON shares up 39%.

Outlook and guidance

• Ongoing investment program targeting R$39.2 billion for 2025-2029, with R$6.35 billion allocated for 2025.

• Focus on digital transformation, technology investments, and further divestment of minority holdings.

• Preparing for renewals of generation concessions and the 2025 Capacity Reserve Auction.

• Commitment to further divestments, concession renewals, and adoption of new technologies for electric transition.

• Regulatory transmission revenue (RAP) increased 18.8% for 2024-2025 cycle.