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CEMIG, the Brazilian electric utility listed on the NYSE as CIG, reported first-quarter 2026 EBITDA of BRL 1.79 billion and profit of BRL 979 million. Management said the results reflected continued investment in distribution and efforts to manage the company’s debt profile, while also facing challenges from energy price volatility and hydrological risk.
CEMIG’s CFO and investor relations officer, Andrea Marques de Almeida, said the company’s diversified structure helped sustain performance during the quarter. She said CEMIG invested BRL 1.48 billion and paid BRL 658 million in shareholder remuneration.
Almeida also said the company completed a small acquisition of PCH Pipoca and Temacu in Mesquita. She added that a post-employment restructuring agreement recorded at the end of last year had already reduced expenses by BRL 80 million.
At the start of the earnings call, Carolina Sena, CEMIG’s investor relations superintendent, said the appointment of Alexandre Ramos Peixoto as CEMIG’s new CEO had been approved. Peixoto replaces Reynaldo Passanezi Filho, whose departure was attributed to term-limit restrictions under Brazil’s State-Owned Enterprises Law No. 13,303/2016.
Sena said that under Passanezi’s management, CEMIG carried out a financial recovery process, resumed investment levels and developed a strategic plan of approximately BRL 70 billion through 2030. She said the company expanded substations, modernized the grid, eliminated historical bottlenecks and increased its market value from BRL 8 billion to BRL 45 billion.
Sena described Peixoto as a career employee with experience in Brazil’s electric sector, including roles at ANEEL, the Ministry of Mines and Energy and EBE, and prior work at CEMIG as regulatory and institutional relations officer.
Distribution accounted for the largest share of CEMIG’s quarterly investment, with BRL 1.28 billion directed to the segment. Almeida said CEMIG delivered six new substations and modernized one substation under the More Energy Program, and added 765 kilometers of low- and medium-voltage network.
In Cemig D, EBITDA increased 26.6% to about BRL 1.01 billion. Almeida attributed the performance mainly to a 7.78% adjustment in Parcela B and higher residential consumption. She said residential tariffs are higher, which supported revenue.
Management also discussed operating efficiency and service quality. Almeida said Cemig D remained within regulatory indicators for losses and that delinquency was low. She highlighted a DEC indicator of 8.75, described as the best in the company’s history, and said FEC also showed positive performance.
Costs and expenses were influenced by third-party services, including preventive and corrective maintenance and right-of-way cleaning, tied to efforts to improve customer service as the distribution investment plan advances.
CEMIG said higher energy price volatility and a lower GSF (generation scaling factor) were significant challenges in the quarter. Almeida said energy prices moved from around BRL 59 per megawatt-hour in early 2025 to levels reaching BRL 382 per megawatt-hour, affecting hydrological risk management.
In generation, the company reported a BRL 49 million EBITDA impact from energy purchases used to address hydrological risk. Almeida said CEMIG’s GSF was 0.92 in the first quarter of 2026, compared with a level close to one in the prior-year period.
For Cemig GT, which includes generation, transmission and part of trading contracts, management cited hydrological risk and higher-priced energy purchases. In transmission, lower IPCA inflation affected contract asset remuneration.
In trading, Almeida said the main effect came from closing positions, with additional pressure linked to credit events affecting the broader market. Marcos Vinícius de Castro Lobato, trading planning superintendent, said 2026 is challenging for the trading business due to lower margins, short-term market factors and submarket price differences, though he said some impacts are expected to decline over time.
CEMIG said it continued working to align its debt maturity profile with its investment plan, particularly in distribution ahead of the 2028 tariff review. Almeida said the company reached an average debt maturity of 6.6 years, with 76% of debt due after the 2028 tariff review.
During the quarter, CEMIG raised BRL 2.6 billion for the distribution company through a debenture and a loan under Law 4,131. Almeida said leverage was 2.45 times net debt to recurring EBITDA, which she described as healthy, and that debt cost was 89% of CDI.
In Q&A, Almeida said leverage is expected to rise as CEMIG executes a BRL 44 billion investment program over the next five years, with a peak expected in 2028 before declining after the tariff review. She said the company believes returns on regulated investments, particularly in distribution and transmission, exceed financing costs and noted that CEMIG holds AAA ratings from Fitch Ratings and Moody’s.
Asked about the 2028 tariff review, Almeida said CEMIG expects its distribution investments to be recognized in the review. She said the company is investing cautiously and expects asset base expansion, net of depreciation, to affect EBITDA after the review.
Marco da Camino Ancona Lopez Soligo, chief generation and transmission officer, said discussions on renewing the Sá de Carvalho, Emborcação and Nova Ponte concessions are progressing. He said CEMIG has had “great contact and interaction” with the Ministry of Mines and Energy and ANEEL and expects renewals in the coming months before the concessions expire.
On managing hydrological risk, Marcos Vinícius said portfolio diversification helps reduce dependence on a single generation source. He said the portfolio includes hydroelectric plants as well as wind and solar components, and that CEMIG manages risk by contracting ahead of time. He added that the company has reserves intended to avoid significant impacts over the year.
CEMIG also reported growth at Cemig SIM, which added seven new solar photovoltaic plants and 19 megawatts of capacity. Almeida said Cemig SIM posted a recurring EBITDA increase of around 100%. For Gasmig, she said margins were reduced as clients migrated to the free market, a trend management expects to continue over time.
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