Companhia Energética de Minas Gerais - CEMIG

What they do

Cemig operates through segments including energy distribution, generation, transmission, and gas distribution. It generates electricity from hydroelectric, wind, and other sources, transmits energy over its grid, and distributes to residential, industrial, commercial, rural, and public authority customers. The company also holds concessions for gas distribution and manages associated infrastructure assets.

Revenue drivers

• Energy Distribution — Largest segment; supplies electricity to end-users in Minas Gerais; revenue from regulated tariffs covering residential, industrial, commercial, rural, and public service customers.
• Generation — Operates a portfolio of hydroelectric plants (e.g., Três Marias, Salto Grande, Itutinga, Camargos) and wind farms; sells electricity through regulated and free market contracts.
• Transmission — Provides transmission services over its grid assets, with revenue from regulated transmission use-of-system charges and availability payments.
• Gas Distribution — Distributes natural gas through its gas concession; contributes to diversified energy revenue base.

Recent performance

In fiscal 2025, the company reported revenue and expense figures across segments, with infrastructure assets disclosed for distribution and generation. The company recognized regulatory assets related to tariff adjustments (CVA) and held financial investments in bank certificates of deposit, treasury notes, and other instruments. It also executed significant transactions, including an onerous transfer of four PCHs/UHEs to Ambar Hidroenergia Ltda and acquisitions of Guanhães Energia S.A. and Paracambi Energetica S.A.

Strategy

Management stated priorities include optimizing generation portfolio, investing in transmission infrastructure, and expanding gas distribution. The company has engaged in asset transfers and acquisitions to streamline operations and improve efficiency. It also manages regulatory relationships with ANEEL and other bodies to align with tariff and concession rules.

Risks

• Regulatory risk — Changes in Brazilian energy regulation by ANEEL could affect tariffs, concession terms, and revenue.
• Hydrological dependence — Hydroelectric generation is exposed to variable water flows, impacting output and spot prices despite diversification into wind.
• Interest rate exposure — Financial investments and debt are linked to CDI and IPCA rates; volatility in these indices affects results and financing costs.
• Customer concentration — Revenue is geographically concentrated in Minas Gerais, making results sensitive to regional economic conditions and demand shifts.

Outlook

Management expects continued focus on regulated segments and possible adjustments in tariff cycles. The completion of asset transfers and acquisitions is likely to shape future operational footprint. Financial performance will depend on energy market conditions and regulatory decisions.