Boston, MA 06/03/2014 (wallstreetpr) – Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) announced about the prudent financial results exuding strong growth in the Q1-2014. The company notched up net incomes in the last quarter that a surge up vehemently by 52.1%, year-over-year, amounting to $529.7 million!
Introspecting Into CIG’s Profit Basket
Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) notched up significant revenues of $2,017.3 million in the last quarter that increased from its YoY revenues in Q1-2013 by a whopping 29.5%. Profound sales to end users brought about 71% of the revenues; the net electric power sold to the end users surged up 10.7% YoY, to 11,968 MWh. The company’s earnings before EBITDA surged up 32.6% YoY reaching $893.4 million. The EBITDA increased from 43.3% in Q1-2013 to 44.3% this year, in the previous quarter. In Q1, costs of operational processes, materials, infrastructural constructions and depreciation or amortization reduced to a significant extent.
Q1 Expenses Surged Up 20% YoY
As an imperative, the net quarterly operating expenses rose to $1,249.6 million – 20% higher than in Q1-2013. Higher royalties or using water resources, increased postretirement liabilities, higher costs on outsourcing services, enhanced resale costs and such other concerns resulted in a phenomenal increase in expenses from the company’s exchequer.
Cash Reserves
Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) announced about possessing cash and its equivalents of $491.2 million at the end of Q1-2014; during the same time in 2013, cash and equivalents estimated at $937.0 million. Funds levied for loans and financing reduced by 9.5%, amounting to $953.1 million in Q1, in contrast to the same YoY. Resurgent operating activities induced a 65% increase in cash flow to $261.9 million.
The Brazilian Government’s Policies Add ‘Concerns’!
The contentious issue lingers on and shall be a thing to introspect in the near future. It harps on probable chances that CIG might face regulations from the Brazilian government as the latter intends to shovel down the electricity prices, with the aid of newly framed regulatory laws, in the future!
‘Real’ Weakens As Currency Swaps Expire This Week!
Lately, the Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) stocks tumbled due to abysmal fall in iron-ore prices, coupled with weak economic data. Brazilian Real is on a tumbling spree, across the global markets, as the currency swaps in vogue are expiring this week! On June 2, 2014, around $9.7 billion currency swaps shall mature; however, the central bank of Brazil has successfully rolled over only half-that-amount, till date, rising concerns among investors.
