Indicate by check mark whether
the registrant files or will file annual reports under cover of
Form 20-F
or
Form 40-F.
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b)
under the Securities Exchange Act of 1934.
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b):
N/A
This report
contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may
cause actual results to differ materially from those discussed herein include those risk factors set forth in our most recent Annual Report on Form
20-F
filed with the Securities and Exchange Commission. CEMIG
undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995.
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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COMPANHIA ENERGÉTICA DE MINAS
GERAIS CEMIG
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By:
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/s/
Maurício Fernandes Leonardo
Júnior
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Name: Maurício Fernandes Leonardo Júnior
Title: Chief Finance and Investor Relations Officer
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Date: September 11, 2018
MARKET ANNOUNCEMENT DATED JULY 12, 2018: REPLY TO B3 INQUIRY LETTER
1441/2018-SAE
OF JULY, OF JULY 11, 2018
1
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MARKET ANNOUNCEMENT
Reply to B3 Inquiry Letter
1441/2018-SAE,
of July 11, 2018
Inquiry by B3 (São Paulo Stock Exchange)
Cia. Energética de Minas Gerais CEMIG
To
Mr. Maurício Fernandes Leonardo Júnior
Chief Investor Relations Officer
Subject:
Request for information on news media report
A news report in the newspaper
Valor Econômico
of July 11, 2018, under the headline:
Cemig considering
re-opening
bond issue,
contains, among other information, statements that Cemig:
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1.
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intends to raise up to US$ 500 million through
re-opening
of the bond issue that has previously been placed outside Brazil, with maturity in 2024; and
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2.
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has begun conversations with investors and may possibly complete the transaction this week.
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We request information/explanations on the items indicated, by July 12, 2018, including your confirmation of them
or otherwise, and also any other information that is considered to be important.
Reply by CEMIG
Dear Ms. Ana Lucia da Costa Pereira,
Supervision Office for Companies and Equity Securities Offers B3 S.A.
In response to Official Letter
1441/2018-SAE,
of July 11, 2018, we inform you that Companhia
Energética de Minas Gerais Cemig (Cemig or the Company) is permanently assessing alternatives for improvement of its capital structure, lengthening of its debt profile and reduction of the cost of its debt.
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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2
Consequently the Company, in the normal course of its business, is continuously consulting financial institutions and investors, in Brazil and
the rest of the world, as to the conditions on which they would open credit lines for financing of the Companys business.
In the
case referred to, financing in the external market through issue of Eurobonds is one possible alternative. As an example, in December 2017 Cemig Geração e Transmissão S.A. (Cemig GT), a wholly-owned subsidiary of
Cemig, placed an issue of US$1 billion, and in that issue the indicative demand was US$3.7 billion. Thus, it was natural to suppose that a further issue in this market would be a viable financing option, in addition to the alternatives
available in the local market.
It is appropriate to highlight the characteristics of this type of transaction, in which, initially, the
Company prospects qualified investors on potential interest in financing it. Once interest has been identified, the Company may opt to indicate a price level for the transaction, with the objective of quantifying the potential volume of a
transaction. If the volume, at the indicated price level, indicates the possibility of success for the transaction the company may opt to begin a process of bookbuilding, culminating in pricing of an issue.
At the same time, when accessing the external debt market it is essential to obey the regulation and practices specific to this market,
avoiding broad disclosure by the Company prior to the pricing, due to the risk that this could have adverse effects on the success of the transaction.
In line with this, yesterday the Company carried out an initial monitoring, but without this meaning that the transaction, at that moment, was
feasible. It was only today that Cemig priced the
re-opening
of the Eurobond issue, in the amount of US$500 million, and, naturally, published a Material Announcement with the related information.
In relation to the media report referred to, in the interests of success of the transaction, and consequently, in the interests of the Company
and its stakeholders, no statement of any kind was made prior to the pricing, in accordance, we would note, with the regulation and specific practices of this market, to avoid adverse risks for the transaction.
Cemig takes this opportunity to reiterate its commitment to transparency and best market practices in communication with the market.
Belo Horizonte, July 12, 2018.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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3
MATERIAL ANNOUNCEMENT DATED JULY 17, 2018: RENOVA DEALING WITH FURTHER OFFERS AFTER END OF BROOKFIELD
NEGOTIATION
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COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Renova dealing with further offers after end of Brookfield negotiation
In accordance with CVM Instruction 358 of January 3, 2002 as amended,
Cemig
(
Companhia Energética de Minas Gerais
listed and
traded on the stock exchanges of São Paulo, New York and Madrid),
hereby
reports
to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market that on todays date
its affiliated company
Renova Energia S.A.
published the following
Material Announcement:
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In relation to news reports published today, and in compliance with CVM Instruction 358/2002 as amended,
Renova Energia S.A.
(RNEW11) (
Renova
) reports that after the ending of negotiations with Brookfield Energia Renovável S.A. for sale of the Alto Sertão III Wind Power project, it
continues to negotiate a sale of this asset.
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Renova also reports that it has received
non-binding
offers for acquisition of this asset from several investors, and that these are in the process of due diligence.
No exclusivity has been given to any of the parties interested.
Renova reaffirms its commitment to keep stockholders and the market duly and opportunely informed in accordance with the applicable
legislation.
Belo Horizonte, July 17, 2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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5
MATERIAL ANNOUNCEMENT DATED JULY 18, 2018: SETTLEMENT OF ADDITIONAL EUROBOND TRANCHE
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COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Settlement of additional Eurobond tranche
In continuation of the
Material Announcement
published on
December
7, 2018
and in compliance with CVM Instruction 358 of
January 3, 2002 as amended,
Cemig
(
Companhia Energética de Minas Gerais
listed on the stock exchanges of São Paulo, New York and Madrid),
hereby reports
to the Brazilian Securities Commission (CVM), the
São Paulo Stock Exchange (B3) and the market
as follows:
Today (July 18) Cemigs wholly-owned subsidiary
Cemig
Geração e Transmissão S.A. (Cemig GT)
completed financial settlement of the additional tranche of Eurobonds arising from
re-opening
of the initial issue made on
December 5, 2017.
The additional tranche, for US$500 million, with settlement of principal in December 2024, with
six-monthly
interest, was priced on July 12, 2018 at yield of 9.14% p.a.
A hedge transaction was
concomitantly contracted, for the whole period of the issue, comprising:
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a call spread on the principal, in which Cemig GT is protected over the interval between R$ 3.85/US$ and
R$ 5.00/US$; and
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a swap transaction for 100% of the interest, exchanging the 9.25% annual coupon for a rate equivalent to125.52%
of the CDI rate.
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This rate is significantly more advantageous than the cost of the original issue, which was for a rate
equivalent to 150% of the CDI rate.
The net proceeds will be allocated to payment of debts with shorter maturities and higher average
cost, resulting in lengthening of the debt profile and reduction of the Companys financial expenses.
Belo Horizonte, July 18,
2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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7
SUMMARY OF PRINCIPAL DECISIONS OF THE 738
TH
MEETING OF THE BOARD OF DIRECTORS HELD ON JULY 18, 2018:
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COMPANHIA ENERGÉTICA DE MINAS GERAIS
CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE
BOARD OF DIRECTORS
Meeting of July 18, 2018
SUMMARY OF PRINCIPAL DECISIONS
At its 738
th
meeting, held on July 18, 2018, the Board of Directors of
Cemig
(
Companhia
Energética de Minas Gerais
) decided the following:
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Internal Regulations of the Board of Directors.
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2.
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Orientation of vote in meeting of Efficiency:
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Constitution of a company.
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Signature of investment agreement and stockholders agreement.
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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9
MINUTES OF THE EXTRAORDINARY GENERAL MEETING OF STOCKHOLDERS HELD ON JULY 23, 2018
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COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
CNPJ
17.155.730/0001-64
NIRE 31300040127
MINUTES
OF THE
EXTRAORDINARY GENERAL MEETING OF STOCKHOLDERS
HELD ON
JULY 23,
2018
On the twenty third day of July of the year two thousand and eighteen at 11 a.m., at Avenida Barbacena 1,219, 23rd Floor, B Wing, Santo
Agostinho, Belo Horizonte, Minas Gerais, Brazil, stockholders representing more than
two-thirds
of the voting stock of Companhia Energética de Minas Gerais Cemig met in Extraordinary General
Meeting, on first convocation, as verified in the Stockholders Attendance Book, where all placed their signatures and made the required statements.
The stockholder
The State of Minas Gerais
was represented by the State Attorney Mr. Wallace Alves dos Santos, for the Office of the General
Attorney of the State of Minas Gerais, in accordance with the current legislation.
Initially, Mr.
Carlos Henrique Cordeiro Finholdt
, a
stockholder and on behalf of Cemigs Corporate Executive Office, stated that there was a quorum for an Extraordinary General Meeting of Stockholders; and that the stockholders present should choose the Chair of this Meeting, in accordance with
Clause 11 of the Companys
by-laws.
Asking for the floor, the representative of the stockholder
The State
of Minas Gerais
put forward the name of
Neila Maria Barreto Leal
, representative of the stockholder
Bernardo Afonso Salomão de Alvarenga
, to chair the meeting.
The proposal of the representative of the stockholder
The State of Minas Gerais
was put to debate, and subsequently to the vote, and approved
unanimously, that is to say by 389,348,730 votes.
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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11
The Chair then declared the meeting open and invited me, Carlos Henrique Cordeiro
Finholdt, for Cemigs Corporate Executive Office, to be secretary of the meeting, and asked me to read the convocation notice, which was published, on June 21, 22 and 23, 2018 in the publications:
Minas Gerais
, official journal of
the Powers of the State, on pages 25, 33 and 23 respectively; and in the newspaper
O Tempo
, on pages 13, 25 and 21, respectively, the content of which is as follows:
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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12
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
CNPJ
17.155.730/0001-64
NIRE 31300040127
EXTRAORDINARY GENERAL MEETING OF STOCKHOLDERS
JULY 23, 2018
CONVOCATION
Stockholders are hereby
called to an Extraordinary General Meeting of Stockholders to be held on July 23, 2018 at 10 a.m., at the companys head office, Av. Barbacena 1219, 23
rd
floor, Belo Horizonte, Minas
Gerais, Brazil, to decide on:
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Election of members of the Audit Board nominated by the majority stockholder, to serve the rest of the current
period of office.
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Stockholders may opt to exercise their right to vote through the remote voting system, in accordance
with CVM Instruction 481/2009, by sending the related Remote Voting Form via their custody agent, or the mandated bank, or directly to the Company.
Proxy votes
Any
stockholder who wishes to be represented by proxy at the said General Meeting of Stockholders should obey the precepts of Article 126 of Law 6406 of 1976, as amended, and of §2 of Article 10 of Clause 10 of the
by-laws,
by exhibiting at the time, or previously depositing at the Companys head office, preferably by July 19, 2018, the proof of ownership of the shares, issued by the depositary financial
institution, an identity document, and a power of attorney with specific powers, at Cemigs Corporate Executive Office (
Superintendência da Secretaria Geral
) at Av. Barbacena 1219 23
rd
Floor, Belo Horizonte, Minas Gerais, Brazil.
Belo Horizonte, June 19,
2018 Adézio de Almeida Lima Chair of the Board of
Directors
The representative of the
stockholder
The State of Minas Gerais
stated that the Office of the General Attorney of the State, as formal representative of the controlling stockholder, would make a statement of position to this Meeting in the terms of Official Letter OF
0079/2018, of May 16, 2018.
In accordance with CVM Instruction 481/2009, the Chair then asked the Secretary to read the spreadsheet of summary
consolidated voting, recording the votes given by Remote Voting Forms, published to the Market on July 20 of this year, which will be at the disposal of stockholders for any consultation.
The Chair then stated that an Extraordinary General Meeting of Stockholders had been held on July 11, 2018, at which, due to approval of the
Companys new
by-laws,
to adapt to Federal Law 13,303 of June 30, 2016 and Minas Gerais State Decree 47154 of February 20, 2017, the members of the Audit Board nominated by the holders of
preferred shares were elected; and at that meeting it was not possible for the majority stockholder to nominate members for the Audit Board.
The
representative of
The State of Minas Gerais
then put forward the following nominations for membership of the Audit Board:
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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13
As sitting members:
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José Afonso
Bicalho Beltrão da Silva
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Brazilian, married, economist, resident and domiciled in Belo Horizonte, MG at Rua Curitiba
2233/501, Lourdes, CEP
30170-122,
bearer of Identity Card MG568870, issued by the Minas Gerais State Public Safety Department, and CPF nº
098044046-72;
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Marco Antônio de Rezende Teixeira
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Brazilian, married, lawyer,
resident and domiciled in Belo Horizonte, MG, at Rua Senhora das Graças 64/801, Cruzeiro, CEP
30310-130,
bearer of Identity Card M611582, issued by the Minas Gerais State Public Safety Department, and
CPF
371515926-04;
and
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Camila Nunes da Cunha Pereira Paulino
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Brazilian, married, public
relations executive, resident and domiciled in Belo Horizonte, Minas Gerais at Rua Eugênio Murilo Rubião 185/601, Anchieta, CEP
30310-540,
bearer of Identity Card MG11491274, issued by the Public
Safety Department of Minas Gerais State, and CPF
053194916-89.
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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14
and as their respective substitute members:
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Helvécio Miranda
Magalhães Junior
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Brazilian, single, doctor, resident and domiciled in Belo Horizonte, MG, at Rua Cláudio
Manoel 735/1104, Funcionários, CEP
30140-100,
bearer of Identity Card
161715-0,
issued by the Minas Gerais State Public Safety Department, and CPF
561966446-53;
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Flávia Cristina Mendonça Faria Da
Pieve
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Brazilian, married, lawyer,
resident and domiciled in Belo Horizonte, Minas Gerais at Rua Fábio Couri 155/502, Torre 2, Luxemburgo, CEP
30380-560,
bearer of Identity Card M8033108, issued by the Public Safety Department of Minas
Gerais State, and CPF
037964286-73;
and
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Wieland Silberschneider
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Brazilian, divorced, economist,
domiciled in Belo Horizonte, Minas Gerais, at Rua Herculano de Freitas 1210/301, Gutierrez, CEP
30441-023,
bearer of Identity Card
MG-1072289,
issued by the Minas Gerais
State Civil Police (PCMG), and CPF
451960796-53.
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Asking for the floor, the representative of the stockholder
BNDES Participações S.A. (BNDESPar)
, although
not being part of the group voting on this occasion, stated the understanding that obedience to the prohibitions in Article 17 of the State Companies Law for nominations to an Audit Board, independently of the legal dispute on whether they are
mandatory, are the best corporate governance practice for formation of the Audit Board, in that they ensure a higher level of professionalism, and recommended that all the Companys stockholders should adopt them in their nominations.
It was also the understanding of
BNDESPar
that, in spite of the juridical support for this election and for the nominations made for it, considering
the transitory nature of the court decision, given as it was in an interim remedy and already subject to contestation, it would be prudent for the controlling stockholder of the Company to aim for a composition of the Audit Board in line with the
view taken by the CVM in Case
19957.004466/2018-41,
to avoid any later need for
re-composition
of that Board, even before the end of the current period of office, which
would harm the continuity of its work.
BNDESPar
also alerted the meeting that the other requirements and prohibitions in the State Companies Law should be complied with, including the need for one of the nominees to be a government employee
with a permanent link to the public administration.
The representative of the stockholder
The State of Minas Gerais
then reported that the
Judiciary of Minas Gerais State had granted a request for urgent relief in the following terms:
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suspending the effect of the recommendation / decision issued by the CVM contained in Official Announcement
227/2018/CVM/SEP/GEA-1
(SEI
19957.005738/2018-20);
and thus requiring the CVM to abstain from opening any administrative proceedings tending to punish the controlling
stockholder, or Cemig, in any case where the reason for action is application of the prohibitions stated in §2 of Article 17 of Law 13303/2016 in relation to the members of Cemigs Audit Board, until any subsequent court decision, on
penalty of a fine in the event of
non-compliance;
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b)
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consequent order that Cemig should urgently (subject to the minimum timing required by the law and by its
by-laws),
in a General Meeting of Stockholders, elect the members of its Audit Board, based on the names already put forward by
The State of Minas Gerais
, as majority stockholder, on May 16, 2018,
subject to the requirement in Article 26 of Law 13303/2016, as regulated by State Decree 47154/2017, but without the prohibitions established by that Law in relation to the members of the Board of Directors (§ 2º of Article 17 of Law
13303/2016); on penalty of a procedural fine in the event of
non-compliance
with the decision.
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Av. Barbacena 1200
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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15
The nominations of the representative of the stockholder
The State of Minas
Gerais
were put to debate, and to the vote, and approved by a majority of votes, as follows:
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Group
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Votes in
favor
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Votes
against
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Abstentions
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Sitting and substitute member:
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José Afonso Bicalho Beltrão da Silva and
Helvécio Miranda Magalhães Júnior
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83,211,485
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14,147,598
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32,423,830
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Marco Antônio de Rezende Teixeira and
Flávia Cristina Mendonça Faria Da Pieve
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83,211,484
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14,147,598
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32,423,827
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Camila Nunes da Cunha Pereira Paulino and Wieland Silberschneider
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83,211,484
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14,147,597
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32,423,826
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The Audit Board members elected declared in advance that they are not subject to any prohibition on exercise of
commercial activity, that they are not subject to any of the prohibitions in Law 6404/1976 or Law 13303/2016, nor in Minas Gerais State Decree 47154/2017, and that they comply with the criteria and requirements of the applicable legislation and
regulations; they made a solemn commitment to become aware of, obey and comply with the principles, ethical values and rules established by the Code of Professional Conduct of Companhia Energética de Minas Gerais Cemig, and the Code of
Ethical Conduct of Government Workers and Senior Administration of the State of Minas Gerais.
The Chair stated that, subject to
swearing-in
of the new members of the Audit Board being conditional upon presentation of the declaration statements contained in the applicable federal and state legislation, the composition of the Audit Board is
now as follows:
Audit Board
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Sitting members:
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Substitute members:
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José Afonso Bicalho Beltrão da Silva,
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Helvécio Miranda Magalhães Júnior,
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Marco Antônio de Rezende Teixeira,
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Flávia Cristina Mendonça Faria Da Pieve,
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Camila Nunes da Cunha Pereira Paulino,
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Wieland Silberschneider,
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Rodrigo de Mesquita Pereira,
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Michele da Silva Gonsales,
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Cláudio Morais Machado;
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Carlos Roberto de Albuquerque Sá.
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The meeting being opened to the floor, since
no-one
else wished to speak, the Chair
ordered the meeting suspend for the time necessary for writing of the minutes.
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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16
The session being reopened, the Chair put the said minutes to debate and to the vote,
and they were approved unanimously, that is to say, by 389,348,730 votes; verifying that they had been signed, she closed the meeting.
For the record, I,
Carlos Henrique Cordeiro Finholdt, Secretary, wrote these minutes and sign them, together with all those present.
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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17
MARKET NOTICE DATED JULY 26, 2018: REPLY TO CVM INQUIRY LETTER
289/2018/CVM/SEP/GEA-1
18
COMPANHIA ENERGÉTICA DE
MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MARKET NOTICE
Reply to CVM Inquiry Letter
289/2018/CVM/SEP/GEA-1
Question asked by the Brazilian Securities Commission (CVM)
Rio de Janeiro, July 25, 2018.
Maurício Fernandes
Leonardo Júnior
Investor Relations Director
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
Av.
Barbacena, 1200, 5º andar/ B1
Santo Agostinho, Belo Horizonte, MG
CEP:
30.190-131
Tel: (31) 3506-5024
Fax:
(31) 3506-5026
Email: ri@cemig.com.br
cc: emissores@bvmf.com.br
Subject: Request for information on news media report
Dear Sir,
1.
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We refer to the news report published today in the news medium
Valor Econômico
, in the
Empresas
(Companies) section, under the headline:
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Cemig assessing Plan B for
sale of Light
which contains the following statements:
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Av. Barbacena 1200
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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19
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Facing challenges in its efforts to sell its interest in Light, the Minas Gerais state company Cemig is
assessing a Plan B for payment of the put option exercised against it, which is to be settled in November of this year. The priority continues to be the sale of control of the Rio de Janeiro electricity distributor Light, but, since the
proposals received so far have not been considered attractive, Cemig is working with an alternative for payment of the put option that will avoid Light becoming a state company.
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According to one source, Cemig needs approximately R$ 600 million to pay the option. There is R$ 100 million deposited in a
guarantee account, which remained from the proceeds of the sale of part of the control stockholding in the transmission company Taesa. The idea is to rely on the sale of Cemig Telecom to finance the rest.
The minimum price established for the assets of Cemig Telecom, which will be auctioned on August 8, is R$ 367 million. Since
there are many bidders interested in the company, Cemigs expectation is that the transaction will be made for a premium over the minimum price. According to Cemig, there are 17 investors interested.
Valor
has found that they include Brazils principal telephone network operators, mobile telephone tower companies, investment
funds, and foreign companies, such as Sterlite Power Grid of India.
Even resolving the problem relating to the put option, Cemig will
still need to avoid allowing Light to become a majority-state-controlled company. With settlement of the put option, its interest will increase from 43% to 52% of Light, which could cause early maturity of debts due to covenants in financing
contracts.
[...]
A
possible problem involves the situation of Renova Energia, controlled by Cemig and by Light. As well as its net debt of R$ 1.3 billion, while generating extremely low cash flow, Renova needs funds to complete the works on the Alto
Sertão III wind complex, which are behind schedule.
Valor
has found that between R$ 300 and R$ 400 million is
still needed to complete the project. Further to this, there is R$ 200 million in debts to suppliers that need to be settled. With the present debt, and the problems resulting from the works being behind schedule, such as the exposure to
the electricity spot market, these costs could make the return on the project unfeasible
.
2
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We request a statement by your company on the truthfulness of this report, and if it is true, reasons why Cemig
understood that this was not a matter for a Material Announcement, and also commentaries on other information considered important on the subject.
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3
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This statement must be given through the
Empresa.NET
System, in the category:
Market notice
,
sub-category:
Responses to consultations by CVM/B3; Media News Report
and should include a transcription of this Official Letter.
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4
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We warn you that, by order of our Company Relations Supervision Management, using its legal powers under
Sub-item
II of Article 9 of Law No. 6385/1976 and CVM Instruction 452/07, a coercive fine of R$ 1,000 (one thousand Reais) is applicable, without prejudice to other administrative sanctions, for
non-compliance
with the requirement contained in this Official Letter, which is sent exclusively by
e-mail,
by July
26, 2018
, notwithstanding the
provisions of §1 of Article 6 of CVM Instruction 358/02.
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Av. Barbacena 1200
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Tel.: +55 31
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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20
Reply by CEMIG
Dear Mr. Cláudio José Paulo, Acting Manager
In reply to Official Letter
289/2018/CVM/SEP/GEA-1,
Cemig states as follows:
Cemig believes that transparency and accountability are not only legally imposed duties but indispensable prerequisites for efficient
management.
For this reason, aiming to keep investors duly informed, Cemig has published Material Announcements, on June 1, 2017 and
July 7, 2017, announcing and updating its program of disinvestment which, among other aims, seeks to enhance the Companys financial equilibrium, through accelerated reduction of its net indebtedness.
Cemig reiterates that the assets referred to in the article published by the newspaper
Valor Econômico
are part of the said
disinvestment program, and that it has been keeping the market and other interested parties updated on the processes of sale of those assets.
As of todays date, there is no new information which, under CVM Instruction 358/2002, would justify publication of a further Material
Announced on any of these subjects.
Finally, Cemig encourages the communications media, for the benefit of its readers, always to state
its sources, and once again
re-emphasizes
that it is available for verification of information.
Belo Horizonte, July 26, 2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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21
MARKET ANNOUNCEMENT DATED JULY 30, 2018:
PRE-PAYMENT
OF DEBT
22
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MARKET ANNOUNCEMENT
Pre-payment
of debt
Cemig
(
Companhia Energética de Minas Gerais
) listed and traded on
the stock exchanges of São Paulo, New York and Madrid
hereby informs
the CVM (the Brazilian Securities Commission (CVM), the São Paulo stock Exchange (B3)
and the market
as follows:
On July 27, 2018 Cemigs wholly-owned subsidiary
Cemig Geração e Transmissão S.A. (Cemig GT),
following the
re-opening
of its Eurobond issue, made early payment of R$ 385 million, or 25vs% of the total nominal balance, of its 7
th
Debenture
Issue, the cost of which was 140% of the CDI rate, and which had original maturity date on December 23, 2021.
Cemig believes this once again
demonstrates its commitment to reducing financial expenses and lengthening its debt profile, improving profitability and enhancing its credit quality.
Belo Horizonte, July 30, 2018.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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23
MATERIAL ANNOUNCEMENT DATED AUGUST 8, 2018:
CEMIG TELECOM ASSETS SOLD FOR SIGNIFICANT PREMIUMS
24
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Cemig Telecom assets sold for significant premiums
Cemig
(
Companhia Energética de Minas Gerais
listed, with securities traded on the stock exchanges of São Paulo, New York
and Madrid), as per CVM Instruction 358 of January 3, 2002, as amended,
hereby reports
to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market
as follows:
Today Cemig held the Public Auction for sale of its telecommunications assets not within scope of primary use, as specified in Tender
Announcement
500-Y12121.
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The winning bid for Lot 1, presented by American Tower do Brasil Internet das Coisas Ltda., was for
R$571,000,000.00 (five hundred seventy one million Reais), that is to say 70.41% above the minimum sale value specified in the Tender Announcement.
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The winning bid for Lot 2, presented by Algar Soluções em TIC S.A., was for R$77,890,000.00
(seventy seven million, eight hundred ninety thousand Reais), i.e. 139.86% above the minimum sale value specified in the Tender Announcement.
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The winning bidders were qualified during the session. Cemig will declare the winners after expiration of the period for appeals. After
signature of the Asset Sale Agreements, conclusion of the transaction will depend on compliance with suspensive conditions stated in the Tender Announcement, including approval by the Brazilian competition authority, CADE (
Conselho Administrativo
de Defesa Econômica
), if applicable.
The minutes of the public auction session are available on Cemigs Electronic
Procurement Site (http://compras.cemig.com.br/).
Cemig reiterates its commitment to keep stockholders and the market timely informed in accordance with
the applicable law and regulations.
Belo Horizonte, August 8, 2018
Daniel Faria Costa
Acting Chief
Finance and Investor Relations Officer
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Av. Barbacena 1200
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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25
SUMMARY OF PRINCIPAL DECISIONS OF THE 740
TH
MEETING OF THE BOARD OF DIRECTORS HELD ON AUGUST 10, 2018
26
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COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
BOARD OF DIRECTORS
Meeting of August 10, 2018
SUMMARY OF PRINCIPAL DECISIONS
At its 740
th
meeting, held on August 10, 2018, the Board of Directors of
Cemig
(
Companhia
Energética de Minas Gerais
) decided the following:
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1.
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Convocation of an Extraordinary General Meeting of Stockholders to be held on September 18, 2018, at11
a.m., to deal with election of members of the Audit Board nominated by the controlling stockholder.
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2.
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Reprofiling of the debt of Santo Antônio Energia S.A. (Saesa), with guarantee by Cemig, such guarantee to
be limited to the proportion of Cemigs equity interest in Saesa.
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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27
MATERIAL ANNOUNCEMENT DATED AUGUST 16, 2018:
LIGHT IS EVALUATING THE POSSIBILITY OF RAISING FUNDS THROUGH A PUBLIC OFFERING
28
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Light is Evaluating the Possibility of Raising Funds through a Public Offering
Cemig
(
Companhia Energética de Minas Gerais
listed in São Paulo, New York and Madrid), in compliance with CVM Instruction
358 of January 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:
Cemigs affiliated company, Light S.A. (Light) has today published the following
Material Announcement:
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Light S.A. (Company), under the terms of Instruction No. 358, dated as of January 3,
2002 of the Brazilian Securities Exchange Commission (Comissão de Valores MobiliáriosCVM), as amended, hereby informs its shareholders and the market in general that it is evaluating the possibility of raising funds
through a public offering of common shares issued by the Company (Offering), and, as a preliminary and preparatory act for the potential Offering, signed a
non-binding
memorandum of understanding
(Memorandum) aiming to anchor a portion of such potential Offering by investment funds led by GP Investments, Ltd. (Investors).
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The Memorandum is a preliminary and
non-binding
document, which only establishes indicative terms
and conditions in case the Offering, in fact, occurs. However, the Company emphasizes that the effective pursuit of the Offering and the proposed anchoring by the Investors are subject to several factors and conditions, amongst others, market
conditions, and there is no guarantee that neither will occur or under which terms and condition. As of this date, there is no definitive guarantee as to the performance of the Offering, as well as its structure and volume. Any future offering of
shares will be conducted in accordance with the applicable regulations and legislation.
The Company will keep the Market informed
of any development or deliberations regarding the potential Offering and the potential transaction proposed by the Investors, with due regard to the restrictions contained in CVM rules and other applicable legislation.
Belo Horizonte, August 16, 2018.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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30190-131 Belo Horizonte, MG
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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29
NOTICE TO STOCKHOLDERS DATED AUGUST 17, 2018:
EXTRAORDINARY GENERAL MEETING OF SEPTEMBER 18 POSTPONED
30
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
NOTICE TO STOCKHOLDERS
EGM of September 18 postponed
Cemig
(
Companhia
Energética de Minas Gerais) hereby notifies stockholders that the Extraordinary General Meeting of
Stockholders called for September 18, 2018, as decided by the Board Meeting of August 10, 2018, has been postponed to a later date, to be decided by the Board of Directors.
Belo Horizonte, August 17, 2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Av. Barbacena 1200
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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31
MATERIAL ANNOUNCEMENT DATED AUGUST 24, 2018: CONTRACTS FOR SALE OF TELECOM ASSETS SIGNED
32
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Contracts for sale of Telecom assets signed
Complementing its Material Announcement of August 8, 2018, and in accordance with CVM Instruction 358 of January 3, 2002, as amended,
Cemig
(
Companhia Energética de Minas Gerais
- listed and traded on the stock exchanges of São Paulo, New York and Madrid),
hereby reports
to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange
(B3) and the market
as follows:
Today, August 24, 2018, Cemig signed Contracts for sale of assets with:
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American Tower do Brasil Internet das Coisas Ltda.
, winning bidder for Lot 1 of Public Tender
Auction Nº
500-Y12121,
and
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Algar Soluções em TIC S.A.
, winning bidder for Lot 2 of the same tender,
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for: - sale of telecommunications assets not within Cemigs scope of primary use; and
- assignment of contractual positions in the contracts associated with those
assets.
Conclusion of these transactions is subject to suspensive conditions stated in the Tender Announcement, including approval by the
Brazilian Monopolies Authority, CADE.
Cemig reiterates its commitment to keep stockholders and the market timely informed in accordance
with the applicable law and regulations.
Belo Horizonte, August 24, 2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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33
MATERIAL ANNOUNCEMENT DATED AUGUST 31, 2018: REIMBURSEMENT FOR SÃO SIMÃO AND MIRANDA PLANTS RECEIVED
34
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Reimbursement for São Simão and Miranda plants received
Cemig
(
Companhia Energética de Minas Gerais
listed in São Paulo, New York and Madrid), in compliance with CVM Instruction 358
of January 3, 2002 as amended,
hereby reports
to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market
as follows:
Today (Aug. 31, 2018) Cemigs wholly-owned subsidiary Cemig Geração e Transmissão S.A. (
Cemig GT
)
received the amounts of reimbursement relating to the assets not previously amortized or depreciated in the basic plans of the
São Simão
and
Miranda
hydroelectric plants, as specified in Mining and Energy Ministry Ministerial
Order 291/2017.
The total of these amounts received today is R$ 1,139,355,248.29.
Belo Horizonte, August 31, 2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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30190-131 Belo Horizonte, MG
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3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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35
MARKET NOTICE DATED SEPTEMBER 4, 2018: CEMIG AWARDED ANEFAC TRANSPARENCY TROPHY
36
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MARKET NOTICE
Cemig
awarded Anefac Transparency Trophy
Cemig
(
Companhia Energética de Minas Gerais
listed with securities traded on the stock
exchanges of São Paulo, New York and Madrid)
hereby informs
the CVM (the Brazilian Securities Commission), the São Paulo Stock Exchange (B3) and the public
as follows:
Cemig has once again been awarded the Anefac Transparency Trophy the award created in 1997 to encourage transparency in Brazilian companies
financial reporting.
The trophy is a joint initiative of:
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the Brazilian National Association of Finance, Management and Accounting Executives (
Associação
Nacional dos Executivos de Finanças, Administração e Contabilidade,
or Anefac)
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the Accounting, Actuarial and Financial Research Institution Foundation (
Fundação Instituto de
Pesquisas Contábeis, Atuariais e Financeiras
Fipecafi) of the School of Applied Economics (FEA) of São Paulo University (USP), and
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Cemigs award, in the category
Listed companies with billing over R$ 5 billion
, reflects the clarity of its financial statements and the quality
of the information published.
The winning companies were chosen by masters degree and doctorate students of FEA/Fipecafi after analysis of the
financial statements of more than two thousand companies.
Belo Horizonte, September 4, 2018
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
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Av. Barbacena 1200
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Santo Agostinho
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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37
TIMETABLE FOR REALEASE OF SECOND QUARTER 2018 RESULTS
38
Second Quarter 2018 Results Presentation
Cemig
(BM&FBOVESPA:
CMIG3, CMIG4; NYSE: CIG, CIG.C; Latibex: XCMIG)
announces its
TIMETABLE for Release of 2Q2018 Results:
Publication
August 14, 2018 (Tuesday)
(after the closing of markets in São Paulo and New York)
The information will be available on our website: http://ri.cemig.com.br
Webcast and Conference call
August 16, 2018 (Thrusday), at 2:00 p.m. (Brasília time)
Transmission of the results with simultaneous translation into English
by
webcast
at:
http://ri.cemig.com.br
or
by
conference call
at:
+ 55 11 2188-0155 (1st option) or
+ 55 11 2188-0188 (2nd option)
Password:
CEMIG
Conference Call Playback:
Phone: (55 11) 2188-0400
Available: From August 16 to 30, 2018
For any questions please call +55 31 3506-5024.
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Av. Barbacena 1200
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30190-131 Belo Horizonte, MG
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Brazil
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Tel.: +55 31
3506-5024
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Fax +55 31 3506-5025
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This text is a translation, provided for information only. The original text in Portuguese is the
legally valid version.
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39
PRESENTATION OF SECOND QUARTER 2018 RESULTS
40
2Q18
Results
41
Disclaimer
Certain statements and estimates in
this material may represent expectations about future events or results, which are subject to risks and uncertainties, which may be known or unknown. There is no guarantee that the events or results will take place as referred to in these
expectations.
These expectations are based on the present assumptions and analyses from the point of view of our management, in accordance with their experience
and other factors such as the macroeconomic environment, and market conditions in the electricity sector; and on our expectations for future results, many of which are not under our control.
Important factors that could lead to significant differences between actual results and the projections about future events or results include our business strategy, Brazilian and
international economic conditions, technology, our financial strategy, changes in the electricity sector, hydrological conditions, conditions in the financial and energy markets, uncertainty on our results from future operations, plans and
objectives, and other factors. Because of these and other factors, our real results may differ significantly from those indicated in or implied by such statements.
The information and opinions herein should not be understood as a recommendation to potential investors, and no investment decision should be based on the
veracity, currentness or completeness of this information or these opinions. None of our professionals nor any of their related parties or representatives shall have any liability for any losses that may result from the use of the content of this
presentation.
To evaluate the risks and uncertainties as they relate to Cemig, and to obtain additional information about factors that could give rise to different
results from those estimated by Cemig, please consult the section on Risk Factors included in the Reference Form filed with the Brazilian Securities Commission CVM and in the 20-F form filed with the U.S. Securities and Exchange
Commission SEC.
In this material, financial amounts are in R$ million (R$ mn) unless otherwise stated.
Financial data reflect the adoption of IFRS.
42
Hightlights
Ebitda
R$810 million in 2Q18
Growth of 9.5% (2Q18/2Q17)
R$1,817 million
Reduction of 1.3%
(1H18/1H17)
PMSO
R$710 million
Reduction of R$177 million (2Q18/2Q17)
R$1,378 million
Reduction of 14.0%
(1H18/1H17)
Net profit
(adjusted)
R$236 million
Growth of 71% (2Q18/2Q17)
R$700 million
Increase of 45.5%
(1H18/1H17)
Telecom assets
R$649 million - Total amount
Premium of 76.8% on auction reserve price
Success in asset sale auction
Hedge on Eurobond issue
Accounting effect in net profit: R$296 million
Second tranche issued: US$500 million July 2018
43
Telecom assets
On August 8, 2018 Cemig held its
public auction of telecom assets
Winning bids
Presented by American Tower do
Brasil
R$571 million, 70.41% above reserve price
Lot 1
Lot 2
Presented by Algar Soluções
R$77.9 million, 139.86% above reserve price
After signature of the sale agreements, conclusion
of the transaction will depend on:
compliance with suspensive conditions as stated in the tender announcement,
including, if applicable, approval by the Brazilian competition authority, CADE.
Divestment
44
Accounting - Eurobonds
Net financial expenses:
additional R$ 449 million
R$532 million Expense (in R$) on FX variation with increase in USD exchange rate
R$83 million Gain on financial instruments
Financial instruments adopted for protection
of foreign currency-denominated debt
Protection of interest payments- Swap
The transaction replaces payment of interest charges at 9.25% in US dollars with 150.49% of the local CDI rate
Protection of the principal - Call Spread
Protection for variation in R$/US$ Exchange rate
between floor of R$3.25 and ceiling of R$5.00
Within this band, the Company pays the floor amount, at maturity. If the ceiling is exceeded, at maturity the Company
pays the floor level of R$3.25 plus the difference between the US$/R$ exchange rate and the ceiling level of R$5.00.
Fair value calculation:
The main variables used in the calculation of fair value of these hedge transactions are:
Expectations for future variations in the CDI rate and
the US dollar exchange
rate.
Note:
The net expense of R$449 million is non-cash: it is an
accounting effect.
Cash flow is protected from FX variation by the financial instruments contracted.
The foreign exchange variation expense not being offset, in the half-year, by the hedge instruments contracted, resulted in a net negative accounting effect for the transaction in
this period and was caused by expected future values for variation resulting from the CDI rate (as indicated by the domestic future interest rates curve) being higher than the figures indicated by the future curve for the R$/US$ exchange
rate. This situation, which occurred basically in the months of May and June 2018, was due to the instability of the macroeconomic scenario.
Hedge
45
Cemigs electricity market
Volume sold -
(GWh)
2Q17 Residential Industrial Commercial Rural Others Wholesale 2Q18
Total energy billed Cemig D
Electricity transported
Consumption by captive market
Market Cemig GT
Free clients
ACL - Free contracts
Regulated Market
46
Cemig D Losses
Technical losses
Mar/17
Jun/17
Sep/17
Dec/17
Mar/18
Jun/18
Technical losses (GWh)
Technical Losses / Total Load (%)
Regulatory Losses (%)
Total losses
Total losses (GWh)
Total Losses / Total Load (%)
Regulatory Losses (%)
47
Consolidated operational expenses
Change in
consolidated operational expenses 2Q18/2Q17
PMSO
Personnel
Materials
Contracted Services
Others
Post-Retirement
Purchased Energy
Depreciation/ Amortization
Operating Provisions
Charges for Use of Basic
Transmission Network
Gas bought for resale
Others
-20.0%
2Q18/2Q17
-35.1%
2Q18/2Q17
1Q17
2Q17*
3Q17
4Q17
1Q18
2Q18*
* Expense on employees joining the voluntary retirement plan: R$26 million in 2Q18 and
R$165 million in 2Q17
48
Ebitda consolidated
Growth of 9.5 % - 2Q18/2Q17
2Q17
Revennues
PMSO
Non- controling cost
Others
Loss on Equity
Telecom
Depreciation
2Q18
1H17
1H18
By Company
Cemig GT
Cemig D
Others
1ºQ
2ºQ
49
Net profit consolidated
Growth of 71% 2Q18/2Q17
1ºQ
2ºQ
Custos/Despesas
2Q17
Revennues
PMSO
Non-controling cost
Others
Loss on Equity
Financial results
Others
2Q18
Hedge adjustment
2Q18 Adjusted
1H17
1H18 Adjusted
Net profit Cemig GT
Net profit Cemig D
2Q17
1Q18
2Q18 Adjusted
50
Eurobonds
An additional tranche of the December 5,
2017 Eurobond issue was issued on July 18, 2018
Amount: US$500 million
Yield:
9.14% p.a.
Interest: Six-monthly
Maturity of principal: December 2024
Financial instruments adopted for protection of foreign currency-denominated debt in the additional tranche:
Protection of interest payments: Swap
The transaction replaces the payments of interest
charges at 9.25% in US dollars with 125.52% of the local CDI rate.
Protection of the principal: Call Spread
Protection for variation in the USD exchange rate between: floor of R$3.85 and ceiling of R$5.00
Within this band, the Company pays the floor amount, at maturity. If the ceiling is exceeded, at maturity the Company pays the floor level plus the difference
between the US$/R$ exchange rate and the ceiling level of R$5.00.
Retap
51
Cemig, consolidated: debt profile
Maturities
timetable
Total net debt: R$13.3 billion
Average tenor: 3.9 years
Cemig GT: amortized R$ 533 million in Debentures and made early repayment of R$ 385 million, with proceeds of the second Eurobond tranche.
2018
2019
2020
2021
2022
2023
2024
After 2024
Maturities timetable pós Retap
Consolidated debt (in R$ of July 2018) - including
expectation of use of 2nd Eurobond tranche
Without change
Payment with Retap
proceeds
Retap
Amortization
Cost of debt- %
2015
2016
jun/17
set/17
2017
mar/18
jun/18
Real Nominal
Main indexors
CDI
IPCA
DOLLAR
OTHER
Leverage
52
Covenant
Net debt/Ebitda
Eurobonds´ Covenant - (LTM last twelve months)
Cemig H
Cemig GT
Reprofiling´s Covenant - (LTM last twelve months)
Cemig D
2017
jun/18
2018
jun/19
2019
Limit Realized
53
Cash flow
Cash start of 2018
Profit 1H18
Expenses (revenues) not affecting cash
Interest aid on loans and financings
Supplies
Others
Capital increase
Loans and debentures
Cash investments
Investments
Cash end of 1H18
Securities
Cash
Operations
-R$9
Financing
-R$269
Investment
R$189
Total
1,293
54
CEMIG
Investor relations Tel.: +55 (31) 3506-5024
ri@cemig.com.br
http://ri.cemig.com.br
CMIG3
CMIG4
NÍVEL 1
BOVESPA BRASIL
CIG
LISTED
NYSE
CIG.C
LATIBEX
XCMIG
ISE 2018
Índice de Sustentabilidade Empresarial
MEMBER OF
Dow Jones
Sustainability Indices
In Colaboration with RobecoSAM
55
EARNINGS RELEASE
56
CEMIG
2Q18 RESULTS
2Q18
EBITDA: R$ 810 MILLION
Main facts of 2Q18:
∎
|
Net financial expense of R$449 million from foreign Exchange variation on US-dollar due to the Eurobond issue,
partially offset by gain on financial instruments- the adjustment to fair value of the swap transaction
|
∎
|
Equity earnings contribution from subsidiaries negative: R$ 83 million
|
∎
|
2Q18 results do not count on hydro plants auctioned in 2017
|
∎
|
Gain with operational efficiency
|
|
o
|
the PMSO decreased by 177 million 20% lower (2Q18 / 2Q17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicators GWh:
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
Electricity sold (excluding CCEE)
|
|
|
14,076
|
|
|
|
13,540
|
|
|
|
3.96
|
|
Indicators R$´000:
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
Sales on CCEE
|
|
|
25,639
|
|
|
|
198,529
|
|
|
|
(87.09
|
)
|
Gross revenue
|
|
|
8,207,936
|
|
|
|
7,788,240
|
|
|
|
5.39
|
|
Net revenue
|
|
|
5,533,199
|
|
|
|
5,205,029
|
|
|
|
6.30
|
|
Ebitda (IFRS)
|
|
|
810,143
|
|
|
|
739,642
|
|
|
|
9.53
|
|
Net profit
|
|
|
(60,370
|
)
|
|
|
138,114
|
|
|
|
|
|
Earnings per share PN (preferred) shares
|
|
|
(0,04
|
)
|
|
|
0,11
|
|
|
|
|
|
Ebitda margin
|
|
|
14.64%
|
|
|
|
14.21%
|
|
|
|
0.43pp
|
|
57
Conference call
Publication of 2Q18 results
Video webcast and conference call
August 16, 2018 (Thursday), at 2 p.m. Brasĺlia time
This transmission on Cemigs results will have simultaneous translation into English and can be seen in real time by Video Webcast, at
http://ri.cemig.com.br or heard by conference call on:
+ 55 (11) 2188-0155 (1st option) or
+ 55 (11) 2188-0188 (2nd option)
Password: CEMIG
|
|
|
Playback of Video Webcast:
Site: http://ri.cemig.com.br
Click
on the banner and download.
Available for 90 days
|
|
Conference call Playback:
Tel.: +55 (11) 2188-0400
Password:
CEMIG Português
(Available from August 16-30, 2018)
|
Cemig Investor Relations
http://ri.cemig.com.br/
ri@cemig.com.br
Tel.: +55 (31) 3506-5024
Fax: +55 (31) 3506-5025
Cemigs Executive Investor Relations Team
∎
|
Chief Finance and Investor Relations Officer
|
Maurício Fernandes Leonardo Júnior
∎
|
General Manager, Investor Relations
|
Antônio Carlos Vélez Braga
∎
|
Manager, Investor Market
|
Robson Laranjo
58
Summary
59
Disclaimer
Certain statements and estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties,
which may be known or unknown. There is no guarantee that the events or results will take place as referred to in these expectations.
These expectations
are based on the present assumptions and analyses from the point of view of our management, in accordance with their experience and other factors such as the macroeconomic environment, market conditions in the electricity sector, and expected future
results, many of which are not under Cemigs control.
Important factors that could lead to significant differences between actual results and the
projections about future events or results include Cemigs business strategy, Brazilian and international economic conditions, technology, Cemigs financial strategy, changes in the electricity sector, hydrological conditions, conditions
in the financial and energy markets, uncertainty on our results from future operations, plans and objectives, and other factors. Due to these and other factors, Cemigs results may differ significantly from those indicated in or implied by such
statements.
The information and opinions herein should not be understood as a recommendation to potential investors, and no investment decision should be
based on the veracity, currentness or completeness of this information or these opinions. None of Cemigs professionals nor any of their related parties or representatives shall have any liability for any losses that may result from use of the
content of this material.
To evaluate the risks and uncertainties as they relate to Cemig, and to obtain additional information about factors that could
give rise to different results from those estimated by Cemig, please consult the section on Risk Factors included in the Reference Form filed with the Brazilian Securities Commission (CVM) and in the
20-F
form filed with the U.S. Securities and Exchange Commission (SEC).
60
Cemigs shares and
ADRs market prices, vs. indices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Ticker
|
|
|
Currency
|
|
June 30,
2018
|
|
|
Close of
2017
|
|
|
Change in
the period %
|
|
Cemig PN
|
|
|
CMIG4
|
|
|
R$
|
|
|
7.30
|
|
|
|
6.46
|
|
|
|
12.9%
|
|
Cemig ON
|
|
|
CMIG3
|
|
|
R$
|
|
|
6.60
|
|
|
|
6.38
|
|
|
|
3.4%
|
|
ADR PN
|
|
|
CIG
|
|
|
US$
|
|
|
1.84
|
|
|
|
1.93
|
|
|
|
4.6%
|
|
ADR ON
|
|
|
CIG.C
|
|
|
US$
|
|
|
1.72
|
|
|
|
1.84
|
|
|
|
6.7%
|
|
Bovespa index
|
|
|
Ibovespa
|
|
|
|
|
|
72,763
|
|
|
|
76,402
|
|
|
|
4.8%
|
|
IEEX
|
|
|
IEEX
|
|
|
|
|
|
38,562
|
|
|
|
39,732
|
|
|
|
2.9%
|
|
Source:
Economática.
Trading volume in Cemigs preferred shares (CMIG4) totaled R$ 10.12 billion in 2Q18, a daily average of
R$ 82.26 million this is 12.86% higher than in 2Q17. Average daily trading in the common (ON) shares was R$ 8.77 million. Cemigs shares, by volume in the aggregate of common (ON) and preferred (PN) shares
were the second most liquid in Brazils electricity sector in the period, and among the most traded in the whole Brazilian equity market.
On
the New York Stock Exchange the volume traded in ADRs for Cemigs preferred shares (CIG) in 2Q18 was US$1.04 billion. We see this as reflecting recognition by the investor market, and maintaining Cemigs position as a global
investment option.
The São Paulo stock exchange
Ibovespa
index fell 4.8% in the first half of 2018 (
1H18
), closing the half-year at
72,763 points. Cemigs shares outperformed the principal Brazilian stock index and also the Brazilian electricity sector index: in 1H18 the common (ON) shares rose 3.4%, and the preferred (PN) shares rose 12.9%. The price of the ADRs for
Cemigs preferred shares, traded in New York, fell 4.6% in the period.
61
Long-term ratings
This table shows credit risk ratings and outlook for Cemigs companies as provided by the principal rating agencies:
Brazilian rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency
|
|
Cemig
|
|
Cemig D
|
|
Cemig GT
|
|
|
Rating
|
|
Outlook
|
|
Rate
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Fitch
|
|
BBB-(bra)
|
|
Stable
|
|
BBB-(bra)
|
|
Stable
|
|
BBB-(bra)
|
|
Stable
|
S&P
|
|
brBBB
|
|
Positive
|
|
brBBB
|
|
Positive
|
|
brBBB
|
|
Positive
|
Moodys
|
|
B2.br
|
|
Stable
|
|
B2.br
|
|
Stable
|
|
B2.br
|
|
Stable
|
Global rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency
|
|
Cemig
|
|
Cemig D
|
|
Cemig GT
|
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Fitch
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
S&P
|
|
B
|
|
Positive
|
|
B
|
|
Positive
|
|
B
|
|
Positive
|
Moodys
|
|
B3
|
|
Stable
|
|
B3
|
|
Stable
|
|
B3
|
|
Stable
|
Ratings of Eurobonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency
|
|
Cemig
|
|
Cemig D
|
|
Cemig GT
|
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Fitch
|
|
B
|
|
Stable
|
|
BB
|
|
Stable
|
|
B
|
|
Stable
|
S&P
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
62
Adoption of IFRS
The results presented below are prepared in accordance with Brazilian accounting rules, which now embody harmonization to IFRS (International
Financial Reporting Standards). They are expressed in thousands of Reais (R$ 000), except where otherwise noted.
PROFIT AND LOSS ACCOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated R$000
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
REVENUE
|
|
|
5,533,199
|
|
|
|
5,205,029
|
|
|
|
6.30
|
|
OPERATING COSTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
|
(348,576
|
)
|
|
|
(535,954
|
)
|
|
|
(34.96
|
)
|
Employees and managers profit shares
|
|
|
(3,150
|
)
|
|
|
(6,007
|
)
|
|
|
(47.56
|
)
|
Post-retirement obligations
|
|
|
(86,126
|
)
|
|
|
(97,390
|
)
|
|
|
(11.57
|
)
|
Materials
|
|
|
(18,416
|
)
|
|
|
(15,829
|
)
|
|
|
16.34
|
|
Outsourced services
|
|
|
(254,553
|
)
|
|
|
(238,140
|
)
|
|
|
6.89
|
|
Electricity purchased for resale
|
|
|
(2,818,905
|
)
|
|
|
(2,649,330
|
)
|
|
|
6.40
|
|
Depreciation and amortization
|
|
|
(198,309
|
)
|
|
|
(209,435
|
)
|
|
|
(5.31
|
)
|
Operating provisions
|
|
|
(134,112
|
)
|
|
|
(161,386
|
)
|
|
|
(16.90
|
)
|
Charges for use of the national grid
|
|
|
(416,038
|
)
|
|
|
(197,764
|
)
|
|
|
110.37
|
|
Gas bought for resale
|
|
|
(293,225
|
)
|
|
|
(262,651
|
)
|
|
|
11.64
|
|
Infrastructure construction costs
|
|
|
(202,974
|
)
|
|
|
(240,475
|
)
|
|
|
(15.59
|
)
|
Other operating expenses, net
|
|
|
(85,246
|
)
|
|
|
(90,938
|
)
|
|
|
(6.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COST
|
|
|
(4,859,630
|
)
|
|
|
(4,705,299
|
)
|
|
|
3.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method gains in
non-consolidated
investees
|
|
|
(83,107
|
)
|
|
|
30,477
|
|
|
|
|
|
Operational profit before Financial revenue (expenses) and taxes
|
|
|
590,462
|
|
|
|
530,207
|
|
|
|
11.36
|
|
Financial revenues
|
|
|
249,315
|
|
|
|
169,010
|
|
|
|
47.51
|
|
Financial expenses
|
|
|
(946,147
|
)
|
|
|
(510,564
|
)
|
|
|
85.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
profit
|
|
|
(106,370
|
)
|
|
|
188,653
|
|
|
|
(156.38
|
)
|
Current and deferred income tax and Social Contribution tax
|
|
|
24,628
|
|
|
|
(50,539
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS (GAIN) ON CONTINUING OPERATIONS
|
|
|
(81,742
|
)
|
|
|
138,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit in the period from discontinued operationsTelecom
|
|
|
21,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS (GAIN) FOR THE PERIOD
|
|
|
(60,370
|
)
|
|
|
138,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
Results for second
quarter 2018
For the second quarter of 2018 (
2Q18
) Cemig reports a loss of R$ 60,370, which compares to net profit of R$ 138,114 in
2Q17.
This primarily reflected significant net
non-operational
expenses of R$ 449,088, comprising:
(i)
|
FX variation on the debt raised in December 2017 (Eurobond issue);
|
|
partially offset by the effects of:
|
(ii)
|
adjustment to fair value of the swap transaction made by the Company to replace the interest payments on the
Eurobonds (expressed in the issue as 9.25% p.a. in US dollars) by 150.49% of the Brazilian domestic CDI rate, with a hedge contracted for the principal for US dollar exchange rate variation between a floor of R$ 3.25 and a ceiling of
R$ 5.00 in this case the floor value will be paid by the Company at maturity.
|
Cemigs
consolidated electricity market
The Cemig Group sells electricity through: its distribution company, Cemig Distribuição (
Cemig
D
); its generation and transmission company, Cemig Geração e Transmissão (
Cemig GT
); and its other wholly-owned subsidiaries
Horizontes Energia, Sá Carvalho, Cemig PCH, Rosal
Energia, Cemig Geração Camargos, Cemig Geração Itutinga, Cemig Geração Salto Grande, Cemig Geração Três Marias, Cemig Geração Leste, Cemig Geração Oeste,
and
Cemig Geração Sul
.
i.
|
This market comprises sales of electricity to:
|
ii.
|
captive consumers in Cemigs concession area in the State of Minas Gerais;
|
iii.
|
Free Consumers in both the State of Minas Gerais and other States of Brazil, in the Free Market (
Ambiente de
Contratação Livre
, or ACL);
|
iv.
|
other agents of the electricity sector traders, generators and independent power producers, also in the
ACL; and
|
v.
|
distributors, in the Regulated Market (
Ambiente de Contratação Regulada
, or ACR).
|
64
In 2Q18 the Cemig Group sold a total
volume of 14,076,058 MWh, which was 3.96% less than in 2Q17.
Sales of electricity to final consumers in 2Q18, plus Cemigs own consumption, totaled
11,101,488 MWh, or 3.81% more than in 2Q17.
Sales to distributors, traders, other generating companies and independent power producers in 2Q18 totaled
2,974,570 MWh or 4.51% more than in 2Q17.
In June 2018 the Cemig Group invoiced 8,395,664 clients a growth of 1.0% in the
consumer base since June 2017. Of these, 8,395,283 were final consumers (including Cemigs own consumption), and 381 were other agents in the Brazilian power industry.
The chart below itemizes the sales of the Cemig Group to final consumers in the year, by consumer category:
65
Total consumption of electricity (GWh)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
MWh
|
|
|
Change,%
|
|
|
Average
price
2Q18
R$
|
|
|
Average
price
2Q17
R$
|
|
|
2Q181
|
|
|
2Q17
|
|
Residential
|
|
|
2,557,762
|
|
|
|
2,496,022
|
|
|
|
2.47
|
|
|
|
761.63
|
|
|
|
772.27
|
|
Industrial
|
|
|
4,524,750
|
|
|
|
4,450,891
|
|
|
|
1.66
|
|
|
|
253.97
|
|
|
|
278.99
|
|
Commercial, Services and Others
|
|
|
2,155,487
|
|
|
|
1,892,746
|
|
|
|
13.88
|
|
|
|
498.74
|
|
|
|
579.24
|
|
Rural
|
|
|
954,766
|
|
|
|
953,709
|
|
|
|
0.11
|
|
|
|
424.59
|
|
|
|
431.02
|
|
Public authorities
|
|
|
220,791
|
|
|
|
226,041
|
|
|
|
(2.32
|
)
|
|
|
595.45
|
|
|
|
611.42
|
|
Public lighting
|
|
|
345,401
|
|
|
|
341,420
|
|
|
|
1.17
|
|
|
|
369.86
|
|
|
|
394.25
|
|
Public services
|
|
|
331,174
|
|
|
|
324,405
|
|
|
|
2.09
|
|
|
|
428.80
|
|
|
|
439.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
11,090,131
|
|
|
|
10,685,234
|
|
|
|
3.79
|
|
|
|
448.94
|
|
|
|
476.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own consumption
|
|
|
11,357
|
|
|
|
8,788
|
|
|
|
29.23
|
|
|
|
|
|
|
|
|
|
Wholesale supply to agents in Free and Regulated Markets (*)
|
|
|
2,974,570
|
|
|
|
2,846,261
|
|
|
|
4.51
|
|
|
|
257.69
|
|
|
|
366.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
14,076,058
|
|
|
|
13,540,283
|
|
|
|
3.96
|
|
|
|
414.75
|
|
|
|
428.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Includes Regulated Market Electricity Sale Contracts (CCEARs) and bilateral contracts with other
agents.
|
The electricity market of Cemig D
Electricity billed to captive clients by
Cemig D
and electricity transported for Free Clients and distributors with access to its network totaled
11,204,337 MWh in 2Q18, or 5.69% more than in 2Q17.
There are two components of this reduction: consumption by the captive market 0.3% higher YoY, and
use of the network by Free Clients 13.7% higher YoY.
66
In June 2018 Cemig D billed 8,395,120 consumers, or
1.00% more consumers than in June 2017. Of this total, 1,068 were Free Consumers using the distribution network of Cemig D.
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemig D
|
|
Number of clients
|
|
|
Change,
%
|
|
|
2Q18
|
|
|
2Q17
|
|
Residential
|
|
|
6,807,112
|
|
|
|
6,739,939
|
|
|
|
1.00
|
|
Industrial
|
|
|
73,261
|
|
|
|
73,896
|
|
|
|
(0.86
|
)
|
Commercial, Services and Others
|
|
|
719,192
|
|
|
|
715,815
|
|
|
|
0.47
|
|
Rural
|
|
|
710,131
|
|
|
|
696,276
|
|
|
|
1.99
|
|
Public authorities
|
|
|
64,171
|
|
|
|
63,857
|
|
|
|
0.49
|
|
Public lighting
|
|
|
6,185
|
|
|
|
5,924
|
|
|
|
4.41
|
|
Public services
|
|
|
13,253
|
|
|
|
12,875
|
|
|
|
2.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,393,305
|
|
|
8,308,582
|
|
|
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power transported
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
556
|
|
|
|
509
|
|
|
|
9.23
|
|
Commercial
|
|
|
504
|
|
|
|
394
|
|
|
|
27.92
|
|
Rural
|
|
|
5
|
|
|
|
3
|
|
|
|
66.67
|
|
Concession holder
|
|
|
3
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,068
|
|
|
909
|
|
|
17.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,395,120
|
|
|
|
8,310,242
|
|
|
|
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An important item is that the volume sold to industrial users was 4.07% lower, which was mainly due to three factors:
(a) disconnections of consumer units; (b) migration of captive consumers to the Free Market; and (c) reduction of consumption due to the truck drivers strike, which took place at the end of May 2018. Also, volume sold to
the commercial consumer category was 2.07% lower
year-on-year,
mainly due to migration of captive consumers to the Free Market.
At the same time, sales were higher
year-on-year
in three other categories:
2.47% higher in the residential consumer category reflecting addition of new consumer units; 1.17% higher in public lighting; and 2.09% higher in supply to public services.
67
Physical totals of
transport and distribution MWh
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MWh
|
|
|
Change
%
|
|
|
2Q18
|
|
|
2Q17
|
|
Total energy carried
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity transported for distributors
|
|
|
75,858
|
|
|
|
80,429
|
|
|
|
(5.68
|
)
|
Electricity transported for Free Clients
|
|
|
4,806,097
|
|
|
|
4,292,825
|
|
|
|
11.96
|
|
Own load
|
|
|
8,002,427
|
|
|
|
7,858,785
|
|
|
|
1.83
|
|
Consumption by captive market
|
|
|
6,331,252
|
|
|
|
6,313,550
|
|
|
|
0.28
|
|
Losses in distribution network
|
|
|
1,671,175
|
|
|
|
1,545,235
|
|
|
|
8.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total energy carried
|
|
|
12,884,381
|
|
|
|
12,232,040
|
|
|
|
5.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The electricity market of Cemig GT
Cemig GT
billed a total of 7,555,811 MWh in 2Q18, or 7.00% higher than in 2Q17.
The number of clients billed by Cemig GT in June 2018, at 1,284, was 9.6% higher than at the end of June 2017. Of these: 1,210 were industrial, commercial and
rural clients, 46 were distribution companies, and 28 were companies in the category of traders, generators and independent power producers.
Free Clients
in the industrial, commercial and rural consumer categories consumed 4,586,309 MWh in 2Q18, or 60.7% of the total volume of energy provided by Cemig GT, and 9.3% higher than in 2Q17.
This increase total reflects consumption by commercial clients 51.2% higher.
Trading of electricity to other agents in the electricity sector in the Free Market totaled 2,339,728 MWh in 2Q18, 4.6% higher than in 2Q17.
68
Sales of energy in the Regulated Market, including
those to Cemig D, totaled 629,774 MWh in 2Q18, or 0.1% higher than in 2Q17, due to differences of seasonalization of distributors contracts between the two periods and contractual reduction.
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemig GT
|
|
(MWh)
|
|
|
Change,%
|
|
|
2Q18
|
|
|
2Q17
|
|
Free Clients
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
3,430,046
|
|
|
|
3,373,679
|
|
|
|
1.67
|
|
Commercial
|
|
|
851,996
|
|
|
|
563,620
|
|
|
|
51.16
|
|
Rural
|
|
|
315
|
|
|
|
3,660
|
|
|
|
(91.39
|
)
|
Free Market Free contracts
|
|
|
2,339,728
|
|
|
|
2,237,418
|
|
|
|
4.57
|
|
Regulated Market
|
|
|
597,555
|
|
|
|
596,028
|
|
|
|
0.26
|
|
Regulated Market Cemig D
|
|
|
32,218
|
|
|
|
32,894
|
|
|
|
(2.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
7,251,858
|
|
|
|
6,807,298
|
|
|
|
6.53
|
|
SPCs of Cemig GT
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Clients
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
303,952
|
|
|
|
254,438
|
|
|
|
19.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
7,555,810
|
|
|
|
7,061,737
|
|
|
|
7.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUALITY INDICATORS DEC / DECi and FEC / FECi
Cemig is continuously taking action to improve operational management, organization of the logistics of emergency services, and its permanent regime of
inspections and preventive maintenance of substations, lines and distribution networks. It also invests in training of its staff for improved qualifications,
state-of-the-art
technologies, and standardization of work processes, aiming to uphold the quality of electricity supply, and as a result maintain the satisfaction of clients and consumers.
The charts below show Cemigs indicators for duration and frequency of outages DEC and FEC, since January 2016.
69
DEC
Average outage duration experienced by consumer hours/consumer/month
Internal DEC
Average consumer outage duration due to factors internal to concession holder hours/consumer/month
FEC
Average outage frequency experienced by consumer outages/consumer/month
Internal FEC
Average outage frequency experienced by consumer due to factors internal to concession holder outages/consumer/month
Consolidated operational revenue
Revenue from supply of electricity
Total revenue from
supply of electricity in 2Q18 was R$ 5,838,104, 0.65% higher than in 2Q17 (R$ 5,800,520).
70
Final consumers
Total revenue from electricity sold to final consumers, excluding Cemigs own consumption, in 2Q18 was R$ 4,978,835, or 2.22% less than in 2Q17
(R$ 5,092,073). The main factors in this revenue were:
◾
|
the annual tariff adjustment for Cemig D, effective May 28, 2017 (full effect in 2018) with average
negative
effect on consumer tariffs of 10.66%;
|
◾
|
the Annual Tariff Adjustment for Cemig D effective Monday, May 28, 2018, with an average
positive
effect on consumer tariffs of 23.19%; and
|
◾
|
volume of electricity sold to final consumers 3.79% higher
year-on-year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$000
|
|
|
Change
|
|
|
Average
price
|
|
|
Average
price
|
|
|
Change
|
|
|
2Q18
|
|
|
2Q17
|
|
|
%
|
|
|
2Q18
|
|
|
2Q17
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
R$
|
|
|
R$
|
|
|
|
|
Residential
|
|
|
1,948,068
|
|
|
|
1,927,607
|
|
|
|
1.06
|
|
|
|
761.63
|
|
|
|
772.27
|
|
|
|
(1.38
|
)
|
Industrial
|
|
|
1,149,137
|
|
|
|
1,241,737
|
|
|
|
(7.46
|
)
|
|
|
253.97
|
|
|
|
278.99
|
|
|
|
(8.97
|
)
|
Commercial, Services and Others
|
|
|
1,075,019
|
|
|
|
1,096,355
|
|
|
|
(1.95
|
)
|
|
|
498.74
|
|
|
|
579.24
|
|
|
|
(13.90
|
)
|
Rural
|
|
|
405,384
|
|
|
|
411,069
|
|
|
|
(1.38
|
)
|
|
|
424.59
|
|
|
|
431.02
|
|
|
|
(1.49
|
)
|
Public authorities
|
|
|
131,469
|
|
|
|
138,206
|
|
|
|
(4.87
|
)
|
|
|
595.45
|
|
|
|
611.42
|
|
|
|
(2.61
|
)
|
Public lighting
|
|
|
127,749
|
|
|
|
134,604
|
|
|
|
(5.09
|
)
|
|
|
369.86
|
|
|
|
394.25
|
|
|
|
(6.19
|
)
|
Public services
|
|
|
142,009
|
|
|
|
142,495
|
|
|
|
(0.34
|
)
|
|
|
428.80
|
|
|
|
439.25
|
|
|
|
(2.38
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
4,978,835
|
|
|
|
5,092,073
|
|
|
|
(2.22
|
)
|
|
|
448.94
|
|
|
|
476.55
|
|
|
|
(5.79
|
)
|
Supply not yet invoiced, net
|
|
|
130,096
|
|
|
|
(70,182
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale supply to other concession holders (*)
|
|
|
766,525
|
|
|
|
1,044,045
|
|
|
|
(26.58
|
)
|
|
|
257.69
|
|
|
|
366.81
|
|
|
|
(29.75
|
)
|
Wholesale supply not yet invoiced, net
|
|
|
(37,352
|
)
|
|
|
(265,416
|
)
|
|
|
(85.93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
5,838,104
|
|
|
|
5,800,520
|
|
|
|
0.65
|
|
|
|
414.75
|
|
|
|
428.39
|
|
|
|
(3.18
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Includes Regulated Market Electricity Sale Contracts (CCEARs) and bilateral contracts with other
agents.
|
Revenue from Use of Distribution Systems (the TUSD charge)
This is revenue from charging Free Consumers the Tariff for Use of the Distribution System (
Tarifa de Uso do Sistema de Distribuição
, or
TUSD) on the volume of energy distributed. In 2Q18 this revenue was R$ 440,599, or 0.73% higher than in 2Q17 (R$ 437,427), with the following factors:
◾
|
reduction of approximately 40% in the TUSD in the annual tariff adjustment for Cemig D of 2017, in
effect from May 28, 2017 (full effect in 2018);
|
◾
|
upward adjustment of approximately 36% in the TUSD, in Cemig Ds 2018 annual tariff adjustment, effective
from May 28, 2018; and
|
71
◾
|
volume of energy transported 13.66% higher, due to a higher level of activity by industrial consumers, mainly
related to the ferroalloys sector.
|
CVA
and
Other financial components
in tariff adjustments
In its interim accounting information Cemig recognizes the difference between actual amounts of
non-controllable
costs (in which the CDE, and electricity bought for resale, are significant components) and the figures that were used as assumptions for these costs in calculating rates charged to consumers. The amount of this difference is passed through to
clients in Cemig Ds next tariff adjustment in 2Q18 this represented a revenue (gain) of R$ 627,893, whereas in 2Q17 it produced a reduction (expense) of R$ 29,294. The difference in this case is mainly due a higher difference,
in 2018, between costs of energy and the coverage provided by the tariff, generating a financial asset to be reimbursed to the Company through the next tariff adjustment.
Changes in balances of financial assets and liabilities:
|
|
|
|
|
|
|
R$000
|
|
Balance at Mar. 31, 2017
|
|
|
(718,742
|
)
|
|
|
|
|
|
Net constitution of financial liabilities
|
|
|
159,139
|
|
Assets realized
|
|
|
(188,433
|
)
|
Payments from the Flag Tariff Centralizing Account
|
|
|
(142,781
|
)
|
Updating Selic rate
|
|
|
(21,911
|
)
|
|
|
|
|
|
Balance on June 30, 2017
|
|
|
(912,728
|
)
|
|
|
|
|
|
Balance at Mar. 31, 2018
|
|
|
242,546
|
|
|
|
|
|
|
Net constitution of financial assets
|
|
|
563,662
|
|
Assets realized
|
|
|
64,231
|
|
OthersR&D Reimbursement
|
|
|
(114,782
|
)
|
Payments from the Flag Tariff Centralizing Account
|
|
|
(12,404
|
)
|
Updating Selic rate
|
|
|
10,839
|
|
|
|
|
|
|
Balance on June 30, 2018
|
|
|
754,092
|
|
|
|
|
|
|
Transmission indemnity revenue
In 2Q18 this revenue was R$ 96,678, a reduction of 52.61% compared to 1Q17 (R$ 204,025). We highlight the amount of R$ 149,255 recorded for
2Q17, relating to the backdated difference of transmission concession assets the values of which were not included in the calculation basis for revenues in the previous tariff reviews. The Company reports the updating of the amount of indemnity
receivable based on the average regulatory cost of capital, as specified in the sector regulations.
72
Remaining balance to be received through RAP
The remaining balance, of R$ 472,356 at June 30, 2018 (R$ 544,471 at December 31, 2017), was incorporated into the Remuneration Assets
Base, and is being recovered via RAP.
Generation Indemnity Revenue
In 2Q18 the Company recognized revenue of R$ 17,218 for the adjustment to the balance not yet amortized relating to the basic plans of the concessions for
the
São Simão
and
Miranda
Hydroelectric Plants, to be indemnified as per Ministerial Order 291/17.
Plants operated under
the Quotas regime as from January 1, 2016
As from August 2013, there were expiry dates of the concessions for various plans operated by Cemig GT
under Concession Contract 007/1997. As from the termination of the concession, Cemig GT held the right to indemnity of the assets not yet amortized, as specified in that concession contract. The accounting balances corresponding to these assets,
including the Deemed Cost, are recognized in Financial assets. Their total at June 30, 2018 was R$ 816,411.
The
Miranda
and
São Simão
plants
The amounts for the basic plan of these plants were transferred to the account
Indemnities receivable
,
and are updated in monetary terms in accordance with Mining and Energy Ministry Order 291, of August 3, 2017, as shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant:
|
|
Miranda
|
|
|
São Simão
|
|
|
Total
|
|
Concession termination date:
|
|
Dec. 2016
|
|
|
Jan. 2015
|
|
Net value of assets of the Basic Plan based on Deemed Cost at Dec. 31, 2017
|
|
|
609,995
|
|
|
|
202,744
|
|
|
|
812,739
|
|
Adjustment (1)
|
|
|
174,157
|
|
|
|
40,855
|
|
|
|
215,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in Mining and Energy Ministry Order
|
|
|
784,152
|
|
|
|
243,599
|
|
|
|
1,027,751
|
|
Monetary updating
|
|
|
25,373
|
|
|
|
31,222
|
|
|
|
56,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net balance of the assets of the Basic Plan at Dec. 31, 2017
|
|
|
809,525
|
|
|
|
274,821
|
|
|
|
1,084,346
|
|
Monetary updating
|
|
|
25,729
|
|
|
|
8,734
|
|
|
|
34,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net balance of the assets of the Basic Plan at June 31, 2018
|
|
|
835,254
|
|
|
|
283,555
|
|
|
|
1,118,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustment, under Mining and Energy Ministry Order 291/2017, of the
non-amortized
balance of the concessions of the
São Simão
and
Miranda
plants.
|
73
Revenue from power trading transactions in the
Wholesale Trading Exchange (CCEE)
Revenue from transactions in electricity on the CCEE in 2Q18 was R$ 25,639, compared to R$ 198,529 in 2Q17
a
year-on-year
reduction of 87.09%. The difference is due to the lower volume of electricity available for settlement in the wholesale market in 2018.
Revenue from supply of gas
Cemig reports revenue from
supply of gas 14.69% higher YoY in 2Q18, at R$ 470,908, compared to R$ 410,604 in 2Q17 reflecting higher tariffs to consumers, in spite of a reduction in volume of consumption in reaction to these higher tariffs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market (R$ 000
m
3
/day)
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2Q18
|
|
Residential
|
|
|
0.17
|
|
|
|
0.72
|
|
|
|
1.04
|
|
|
|
3.38
|
|
|
|
11.44
|
|
|
|
15.91
|
|
Commercial
|
|
|
20.38
|
|
|
|
23.15
|
|
|
|
22.42
|
|
|
|
24.68
|
|
|
|
32.67
|
|
|
|
35.63
|
|
Industrial
|
|
|
2,734.95
|
|
|
|
2,849.24
|
|
|
|
2,422.78
|
|
|
|
2,173.76
|
|
|
|
2,453.22
|
|
|
|
2,384.86
|
|
Others
|
|
|
106.33
|
|
|
|
99.64
|
|
|
|
119.87
|
|
|
|
120.19
|
|
|
|
126.15
|
|
|
|
142.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total market excluding thermal generation
|
|
|
2,861.83
|
|
|
|
2,972.75
|
|
|
|
2,566.11
|
|
|
|
2,322.01
|
|
|
|
2,623.47
|
|
|
|
2,578.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thermal
|
|
|
1,214.50
|
|
|
|
1,223.99
|
|
|
|
1,309.13
|
|
|
|
591,52
|
|
|
|
990.89
|
|
|
|
542.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,076.33
|
|
|
|
4,196.74
|
|
|
|
3,875.24
|
|
|
|
2,913.53
|
|
|
|
3,614.36
|
|
|
|
3,121.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasmig began supplying gas to the residential market. In June 2018 it invoiced 36,416 households compared to 22,536 in
June 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of clients
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
June 30,
2018
|
|
Residential
|
|
|
455
|
|
|
|
1,446
|
|
|
|
3,820
|
|
|
|
14,935
|
|
|
|
30,605
|
|
|
|
36,416
|
|
Commercial
|
|
|
152
|
|
|
|
177
|
|
|
|
218
|
|
|
|
394
|
|
|
|
591
|
|
|
|
660
|
|
Industrial
|
|
|
119
|
|
|
|
111
|
|
|
|
113
|
|
|
|
112
|
|
|
|
107
|
|
|
|
107
|
|
Others
|
|
|
91
|
|
|
|
88
|
|
|
|
62
|
|
|
|
49
|
|
|
|
50
|
|
|
|
50
|
|
Thermal generation
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
819
|
|
|
|
1,824
|
|
|
|
4,215
|
|
|
|
15,492
|
|
|
|
31,355
|
|
|
|
37,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74
Taxes and charges on
Revenue
The total of these taxes and charges reported as deductions from revenue in 2Q18 was R$ 2,674,737 an increase of 3.54% in relation
to their total of R$ 2,583,211 in 2Q17.
Consumer charges the Flag Tariff system
Charges to the consumer arising from the Flag Tariff system in 2Q18 were 93.48% lower
year-on-year
at R$ 8,287 in 2Q18, in contrast to R$ 127,177 in 2Q17.
In the Flag
Tariff system, higher rates come into effect depending on the level of water in the countrys reservoirs: the Red Flag imposes the highest extra tariff and was in effect with the scarcity of rainfall in April and May 2017.
|
|
|
|
|
The Flag Tariff component
history
|
April 2018
|
|
May 2018
|
|
June 2018
|
Green
|
|
Yellow
|
|
Red II
|
|
|
|
April 2017
|
|
May 2017
|
|
June 2017
|
Red
|
|
Red
|
|
Green
|
Operational costs and expenses
Operational costs and expenses totaled R$ 4,859,630 in 2Q18, or 3.28% higher than in 2Q17 (R$ 4,705,299).
75
The following paragraphs comment on the main
variations:
Electricity purchased for resale
The
expense on electricity bought for resale in 2Q18 was R$ 2,818,905, or 6.40% more than in 2Q17 (R$ 2,649,330). The main factors in the higher figure are:
Cemig D (distribution):
The expense on electricity
bought for resale by Cemig D in 2Q18 was R$ 1,927,103, or 15.00% more than in 2Q17 (R$ 1,675,757). The main factor was the expense on supply bought at auction being 19.09% higher YoY, at R$ 764,807 in 2Q18, vs. R$ 642,185 in
2Q17. This in turn was mainly due to inclusion of the supply coming from MCSD (Excess/Deficit Compensation Mechanism) assignments for
new-build
projects, which resulted in the expense being R$ 127,780
higher than in 2Q17 partially offset by lower volume in quantity and availability contracts (5,709,270 MWh in 2Q18 and 6,522,682 MWh no 2Q17).
|
|
|
|
|
|
|
|
|
R$000
|
|
2Q18
|
|
|
2Q17
|
|
Supply from Itaipu Binacional
|
|
|
345,177
|
|
|
|
322,771
|
|
Physical guarantee quota contracts
|
|
|
149,437
|
|
|
|
120,925
|
|
Quotas for Angra I and II nuclear plants
|
|
|
66,711
|
|
|
|
60,944
|
|
Spot market
|
|
|
621,825
|
|
|
|
545,330
|
|
Bilateral contracts
|
|
|
73,011
|
|
|
|
74,230
|
|
Supply acquired in auctions on the Regulated Market
|
|
|
764,807
|
|
|
|
642,185
|
|
Proinfa Program
|
|
|
79,849
|
|
|
|
75,322
|
|
Distributed generation
|
|
|
19,539
|
|
|
|
2,247
|
|
Credits of Pasep and Cofins taxes
|
|
|
(193,253
|
)
|
|
|
(168,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
1,927,103
|
|
|
1,675,757
|
|
|
|
|
|
|
|
|
|
|
Cemig GT:
Cemig
GTs expense on electricity bought for resale in 2Q18 was R$ 897,095, or 8.51% less than in 2Q17 (R$ 980,581). This reflects a volume of energy purchased 11.88% lower YoY in 2Q18 at 4,726,875 MWh, vs. 5,364,064 MWh in 2Q17;
partially offset by the effect of average price per MWh in 2Q18 being 3.82% higher YoY (at R$ 189.79 in 2Q18, vs. R$ 182.81 in 2Q17).
76
|
|
|
|
|
|
|
|
|
R$000
|
|
Consolidated
|
|
|
2Q18
|
|
|
2Q17
|
|
Electricity on spot market CCEE
|
|
|
50,248
|
|
|
|
25,173
|
|
Electricity acquired in the Free Market
|
|
|
922,797
|
|
|
|
1,036,149
|
|
Bilateral contracts
|
|
|
8,873
|
|
|
|
|
|
Credits of Pasep and Cofins taxes
|
|
|
(84,823
|
)
|
|
|
(80,741
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
897,095
|
|
|
|
980,581
|
|
|
|
|
|
|
|
|
|
|
Operating provisions
Operational provisions were 16.90% lower
year-on-year
in the quarter at
R$ 134,112 in 2Q18, compared to R$ 161,386 in 2Q17. The main fator is the reversal in
employment-law
contingencies, compensated by provisions with investment options as described bellow:
◾
|
In 2Q18 there was a reversal, of R$ 20,114, in the total provision for
employment-law
contingencies, in 2Q18, compared with new provisions totaling R$ 114,419 made in 2Q17. The reversal is the consequence of judgments given in favor of the Company, against claims by plaintiffs.
|
◾
|
In 2Q18 provisions of R$ 27,519, and R$ 20,231, respectively, were made for the RME/ LEPSA and SAAG investment
options compared to reversals of provisions, in 2Q17, of R$ 8,020 and R$ 5,334 respectively, for the same two items.
|
|
|
|
|
|
|
|
|
|
Balance of liabilities, consolidated R$000
|
|
Balance on
Jun. 30, 2018
|
|
|
Balance on
Dec. 31, 2017
|
|
Put options for shares in RME and Lepsa
|
|
|
569,286
|
|
|
|
507,232
|
|
Put option SAAG
|
|
|
336,199
|
|
|
|
311,593
|
|
Put / call options Ativas and Sonda
|
|
|
(3,849
|
)
|
|
|
(3,801
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
901,636
|
|
|
|
815,024
|
|
|
|
|
|
|
|
|
|
|
Default
With the
conjunction of several factors the Brazilian macroeconomic context of lower economic activity, which created unemployment; the adverse hydrological situation; and the increase in tariffs, which had been held down the debt owed by
Cemigs clients has grown to higher than average levels. The good news is that the efforts made by Cemig to counter default in 2017 resulted in the default index being reduced, and the Company has kept these indices under control in 2018.
77
To combat a record level of default in 2018 Cemig
redoubled efforts to reduce customer arrears. An additional budget has been approved for efforts to recover the losses of revenue. Some results have already been achieved. Since December 2016 there has been no significant increase in the default
percentages, showing that they are being kept under control. We expect to see a more consistent decline in the percentages from now on. Default in June 2018 was 3.42% lower than in June 2017.
The Company uses various tools of communication and collection to prevent increase in default. These include contact by telephone, email, collection requests
by text and by letter, negative posting on credit registers, collection through the courts and, principally, disconnection of supply. Aneel Resolution 414 allows supply to be cut off after 15 days from receipt of a notice to the defaulting consumer.
As well as these various collection methods, in 2018 Cemig is structuring a new management model for the client relationship. Innovations will include
making negotiation for settlement of arrears by installments available on line. The aim of the proposal is to provide a wide range of interactions with clients and facilitate access to means of negotiation and payment.
78
People
The expense on personnel in 2Q18 was R$ 348,576, or 34.96% lower than in 2Q17 (R$ 535,954). The lower figure, in spite of the 1.83% salary increase
from November 2017 under the collective agreement, mainly reflects the much lower expense on the voluntary retirement program 84.48% lower, at R$ 25,666, in 2Q18, than in 2Q17 (R$ 165,422 ).
In April 2018, 117 employees of Cemig Telecom were transferred to the Cemig holding company, in the part referred to as
supplementary staff. As and when these employees are allocated to areas of Cemig D and Cemig GT, they will be transferred to each of those companies.
Gas bought for resale
In 2Q18 the Company recorded an
expense of R$ 293,225 on acquisition of gas, 11.64% more than its comparable expense of R$ 262,651 in 2Q17. This basically reflects the higher volume of gas bought for resale (454,622m³ in 2Q18, vs. 308,850m³ in 2Q17).
79
Equity in earnings of
unconsolidated investees
In 2Q18 Cemig posted a net loss by the equity method in unconsolidated investees of R$ 83,107, which compares with a net
gain of R$ 30,477 in 2Q17. This mainly reflects negative equity method contributions from the interests in (a)
Renova
and (b) the
Santo Antônio
hydroelectric plant.
|
|
|
|
|
|
|
|
|
Consolidated R$000
|
|
Equity method
gain (loss)
2Q18
|
|
|
Equity method
gain (loss)
2Q17
|
|
Companhia Transleste de Transmissão
|
|
|
|
|
|
|
1,322
|
|
Companhia Transudeste de Transmissão
|
|
|
|
|
|
|
1,047
|
|
Companhia Transirapé de Transmissão
|
|
|
|
|
|
|
1,157
|
|
Companhia de Transmissão Centroeste de Minas
|
|
|
1,052
|
|
|
|
1,374
|
|
Light
|
|
|
(21,137
|
)
|
|
|
(19,424
|
)
|
Axxiom Soluções Tecnológicas
|
|
|
(2,344
|
)
|
|
|
(2,309
|
)
|
LEPSA
|
|
|
|
|
|
|
(6,085
|
)
|
RME
|
|
|
(5,844
|
)
|
|
|
(6,060
|
)
|
Hidrelétrica Cachoeirão
|
|
|
4,026
|
|
|
|
3,150
|
|
Guanhães Energia
|
|
|
(154
|
)
|
|
|
(571
|
)
|
Hidrelétrica Pipoca
|
|
|
498
|
|
|
|
732
|
|
Madeira Energia (Santo Antônio plant)
|
|
|
(50,959
|
)
|
|
|
(25,558
|
)
|
FIP Melbourne (Santo Antônio plant)
|
|
|
(42,919
|
)
|
|
|
(22,451
|
)
|
Lightger
|
|
|
283
|
|
|
|
1,175
|
|
Baguari Energia
|
|
|
5,935
|
|
|
|
5,954
|
|
Central Eólica Praias de Parajuru
|
|
|
(4,336
|
)
|
|
|
(616
|
)
|
Central Eólica Volta do Rio
|
|
|
(7,321
|
)
|
|
|
(1,847
|
)
|
Central Eólica Praias de Morgado
|
|
|
(3,005
|
)
|
|
|
(1,522
|
)
|
Amazônia Energia (Belo Monte Plant)
|
|
|
17,422
|
|
|
|
(2,638
|
)
|
Ativas Data Center
|
|
|
(128
|
)
|
|
|
(766
|
)
|
Taesa
|
|
|
54,476
|
|
|
|
20,530
|
|
Renova
|
|
|
(47,776
|
)
|
|
|
64,799
|
|
Itaocara
|
|
|
(3,286
|
)
|
|
|
|
|
Aliança Geração
|
|
|
8,236
|
|
|
|
15,891
|
|
Aliança Norte (Belo Monte plant)
|
|
|
9,928
|
|
|
|
120
|
|
Retiro Baixo
|
|
|
4,246
|
|
|
|
3,073
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
(83,107
|
)
|
|
|
30,477
|
|
|
|
|
|
|
|
|
|
|
80
Net financial revenue
(expenses)
Cemig reported net financial expenses in 2Q18 of R$ 696,832, which compares with net financial expenses of
R$ 341,554 in 2Q17. The main factors are:
◾
|
Costs of loans and financings 17.11% lower, at R$ 316,703 in 2Q18, compared to R$ 382,076 in 2Q17. This lower
figure is due to lower debt indexed to the CDI rate and a lower value for the CDI rate itself, representing a total of 1.56% over the period of 2Q18, compared to 2.55% over 2Q17.
|
◾
|
Revenue from late charges on client electricity bills 41.85% higher, at R$ 92,288 in 2Q18, compared to R$
65,069 in 2Q17. A major component of this increase comes from the effects of renegotiation of amounts owed on electricity bills by entities of the Minas Gerais State administration on recognition of the interest due.
|
◾
|
Income from cash investments 70.13% lower in 2Q18, at R$ 18,123, compared to R$ 60,663 in 2Q17. This mainly
reflects (a) the lower CDI rate in the quarter (1.56% over the period of 2Q18, vs. 2.55% over 2Q17), and (b) a lower total of cash invested in 2Q18.
|
◾
|
An expense of R$ 532,000 for foreign exchange variation on US dollar-denominated funding (the Eurobond issue);
this being partially offset by a gain of R$ 82,912 on financial instruments the adjustment to fair value of the swap transaction contracted to cover the Eurobond issue. The net expense in 2Q18 is thus R$ 449,088.
|
The swap transaction substituted the issues interest rate of 9.25% p.a. in US dollars by 150.49% of the Brazilian domestic CDI rate. For
the principal a hedge was contracted for US dollar exchange rates between a floor of R$ 3.25 and a ceiling of R$ 5.00 in this case the floor value will be paid by the Company at maturity.
The net negative effect of the transaction in the quarter, consequence of the foreign exchange variation expense not being offset by the hedge
instruments contracted, arises basically from the higher curve of future expectations for the CDI rate than for the R$/US$ exchange rate which occurred basically in the months of May and June 2018, due to the instability of the macroeconomic
scenario.
81
Expectations for future variations in
the CDI rate and the US dollar exchange rate are the main variables used in the calculation of fair value of the hedge transactions referred to.
Note that the next expense referred to is not a cash effect, except for the first
six-monthly
interest
payment of the transaction, in which the effect of exchange rate variation, for that installment only, was offset by a revenue amount received in the hedge linked to the transaction.
◾
|
Monetary updating of CVA balances: this provided a financial
revenue
item of R$ 10,839 in 2Q18, in
contrast to a financial
expense
of R$ 21,911 in 2Q17. The positive and negative balances of CVA are updated by the Selic rate.
|
Ebitda
Cemigs
consolidated Ebitda in 2Q18 was 9.53% higher than in 2Q17.
|
|
|
|
|
|
|
|
|
|
|
|
|
Ebitda R$ million
|
|
2Q18
|
|
|
2Q17
|
|
|
Change,%
|
|
Net profit (loss) for the period
|
|
|
(60,370
|
)
|
|
|
138,114
|
|
|
|
|
|
+ Income tax and Social Contribution tax
|
|
|
(24,628
|
)
|
|
|
50,539
|
|
|
|
|
|
+ Net financial revenue (expenses)
|
|
|
696,832
|
|
|
|
341,554
|
|
|
|
104.02
|
|
+ Depreciation and amortization
|
|
|
198,309
|
|
|
|
209,435
|
|
|
|
(5.31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
= EBITDA
|
|
|
810,143
|
|
|
|
739,642
|
|
|
|
9.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82
DEBT
The Companys consolidated total debt at June 30, 2018 was R$ 14,604,054, 1.43% less than at
December 31, 2017.
83
Cemigs debt increased by
R$ 206 million over the first half of 2018, in spite of the Company having amortized a volume larger than the new funds raised in the period. This is mainly due to the appreciation of approximately 16% in the US dollar against the Real, in
the second quarter of the year, which directly affected the balance of the debt under the Eurobonds when expressed in the local currency. It is important to note that in spite of this effect, which increased gross debt in Reais, and the debt
indicators, the Company is protected from the effects of exchange rate variation on this debt for the interest payments and charges, by a swap; and for the principal (US$ 1 billion), through a call spread for the interval between R$ 3.25
and R$ 5.00. In this case the Company will pay, at maturity, the amount of the floor of this range; and if the ceiling is exceeded, the Company will pay the floor level of R$ 3.25 plus the difference between the US$/R$ exchange rate and the ceiling
level of R$ 5.00. Thus, Cemig has recorded an asset of R$ 131 million in the financial statements, at fair value, referring to the hedge, while the value on the curve of this asset represents
R$ 584 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
R$000
|
|
June 30,
2018
|
|
|
Dec. 31,
2017
|
|
|
%
|
|
Cemig
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
14,604,054
|
|
|
|
14,397,697
|
|
|
|
1.43
|
|
Net debt
|
|
|
13,311,235
|
|
|
|
12,279,303
|
|
|
|
8.40
|
|
Cemig GT
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
8,640,574
|
|
|
|
8,320,163
|
|
|
|
3.85
|
|
Net debt
|
|
|
7,982,183
|
|
|
|
7,381,202
|
|
|
|
8.16
|
|
Cemig D
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
5,628,552
|
|
|
|
5,682,691
|
|
|
|
(0.95
|
)
|
Net debt
|
|
|
5,325,107
|
|
|
|
4,851,213
|
|
|
|
9.77
|
|
Additional Eurobond issue
On July 18, 2018 Cemig GT completed financial settlement of an additional tranche to its initial Eurobond issue completed on December 5, 2017. The
new tranche, of R$ 500 million, brings the total of the issue to R$ 1.9 billion. The issue has
six-monthly
coupon of 9.14% p.a., with maturity of the principal in 2024.
Concomitantly with the settlement a hedge transaction was contracted, for the whole period of the issue, comprising:
|
|
a call spread on the principal, in which Cemig GT is protected over the interval between R$ 3.85/US$ and
R$ 5.00/US$; and
|
|
|
a swap for 100% of the interest, exchanging the 9.25% annual coupon for a rate equivalent to 125.52% of the CDI
rate.
|
The net proceeds will be allocated to payment of debts with shorter maturities and higher average cost, resulting in lengthening
of the debt profile and reduction of the Companys financial expenses.
84
Payment of debentures
On July 16, 2018 Cemig GT amortized the first and second series of its 6
th
debenture issue, in the
amount of R$ 533 million.
On July 27, 2018, with the additional tranche of the Eurobond issue, Cemig GT made early settlement of
R$ 385 million, or 25%, of the balance of the nominal unit value of its 7
th
issue of
non-convertible
debentures, of which the cost was 140% of the
CDI rate with original maturity on December 23, 2021.
Covenants Eurobonds
For so long as any of the Notes are Outstanding, Cemig and Cemig GT will include calculations of each
sub-item
of
Covenant EBITDA, Covenant Net Debt and Total Secured Debt, in addition to calculations for the following financial covenant ratios: Covenant Net Debt / Covenant EBITDA and Total Secured Debt /EBITDA.
|
|
|
|
|
|
|
|
|
12 months
|
|
June 30, 2018
|
|
R$ (in million)
|
|
GT
|
|
|
H
|
|
Net income for the period/year (i)
|
|
|
(36
|
)
|
|
|
925
|
|
Net financial expenses
|
|
|
1,170
|
|
|
|
1,118
|
|
Income tax and Social Contribution tax
|
|
|
266
|
|
|
|
577
|
|
Depreciation and amortization
|
|
|
145
|
|
|
|
850
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
1,545
|
|
|
|
3,470
|
|
minus
minority interest result
|
|
|
673
|
|
|
|
338
|
|
minus
provision for the variation in value of the put option
obligations
|
|
|
98
|
|
|
|
385
|
|
minus
non-operating
result (which includes
any gains on asset sales and any asset
write-off
or impairments)
|
|
|
41
|
|
|
|
(2
|
)
|
plus
non-cash
expenses and
non-cash
charges, to the extent they are
non-recurring
|
|
|
|
|
|
|
|
|
minus
non-cash
credits and gains
increasing net income, to the extent they are
non-recurring
|
|
|
(243
|
)
|
|
|
(720
|
)
|
plus
any cash payments made on a consolidated basis during such period
relating to
non-cash
charges that were added back in determining covenant EBITDA in any prior period
|
|
|
|
|
|
|
|
|
plus
expenses related to adherence to the Minas Gerais State Tax Credits
Regularization Plan (Plano de Regularização de Créditos Tributários PRCT), incurred in the third quarter of 2017
|
|
|
30
|
|
|
|
562
|
|
minus
non-cash
revenues related to
transmission and generation indemnification
|
|
|
(407
|
)
|
|
|
(407
|
)
|
plus
cash dividends received from minority investments (as measured in the statement
of cash flows)
|
|
|
207
|
|
|
|
394
|
|
minus
monetary updating of concession grant fees
|
|
|
(324
|
)
|
|
|
(324
|
)
|
plus
cash inflows related to power generation concession grant fee
|
|
|
245
|
|
|
|
245
|
|
plus
cash inflows related to transmission revenue for cost of capital
coverage
|
|
|
526
|
|
|
|
526
|
|
plus
cash inflows from generation indemnification, provided that such amount shall
not exceed 30% of the sum of clauses (i) through this definition of Covenant EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covenant EBITDA
|
|
|
2,391
|
|
|
|
4,467
|
|
|
|
|
|
|
|
|
|
|
Consolidated Indebtedness
|
|
|
8,641
|
|
|
|
14,604
|
|
plus
debt contracts with Forluz
|
|
|
241
|
|
|
|
1,067
|
|
plus
carrying liability of any put option obligation
|
|
|
414
|
|
|
|
1,042
|
|
minus
escrow account amounts deposited to satisfy any put option obligation
|
|
|
|
|
|
|
(89
|
)
|
minus
consolidated cash and cash equivalents; plus consolidated marketable
securities recorded as current assets
|
|
|
(647
|
)
|
|
|
(1,229
|
)
|
|
|
|
|
|
|
|
|
|
Covenant Net Debt
|
|
|
8,649
|
|
|
|
15,395
|
|
|
|
|
|
|
|
|
|
|
Covenant net debt/covenant EBITDA
|
|
|
3.62
|
|
|
|
3.45
|
|
Limit Covenant Net Debt to Covenant EBITDA Ratio
|
|
|
5.50
|
|
|
|
5.00
|
|
Total Secured Debt
|
|
|
|
|
|
|
6.211
|
|
Covenant EBITDA
|
|
|
|
|
|
|
4.467
|
|
Total Secured Debt to Covenant EBITDA Ratio
|
|
|
|
|
|
|
1.39
|
|
Limit Covenant Net Debt to Covenant EBITDA Ratio
|
|
|
|
|
|
|
1.75
|
|
85
RESULTS SEPARATED BY
BUSINESS SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION BY MARKET SEGMENT ON JUNE 30,
2018
|
|
|
|
ELECTRICITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITEM
|
|
GENERATION
|
|
|
TRANSMISSION
|
|
|
DISTRIBUTION
|
|
|
GAS
|
|
|
TELECOM
|
|
|
OTHER
|
|
|
ELIMINATIONS
|
|
|
TOTAL
|
|
ASSETS OF THE SEGMENT
|
|
|
14,368,687
|
|
|
|
3,811,813
|
|
|
|
19,732,927
|
|
|
|
1,812,803
|
|
|
|
311,017
|
|
|
|
1,689,160
|
|
|
|
(46,049
|
)
|
|
|
41,680,358
|
|
Investments in subsidiaries and jointly-controlled entities
|
|
|
4,709,952
|
|
|
|
1,130,140
|
|
|
|
1,838,752
|
|
|
|
|
|
|
|
|
|
|
|
24,708
|
|
|
|
|
|
|
|
7,703,552
|
|
ADDITIONS TO THE SEGMENT
|
|
|
170,045
|
|
|
|
|
|
|
|
361,492
|
|
|
|
20,969
|
|
|
|
7,631
|
|
|
|
1,016
|
|
|
|
|
|
|
|
561,153
|
|
Additions to the financial asset
|
|
|
|
|
|
|
4,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,732
|
|
CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
|
|
3,038,039
|
|
|
|
326,689
|
|
|
|
6,454,706
|
|
|
|
730,704
|
|
|
|
|
|
|
|
65,045
|
|
|
|
(146,553
|
)
|
|
|
10,468,630
|
|
COST OF ELECTRICITY AND GAS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity purchased for resale
|
|
|
(1,705,024
|
)
|
|
|
|
|
|
|
(3,412,396
|
)
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
|
34,825
|
|
|
|
(5,082,598
|
)
|
Charges for use of the national grid
|
|
|
(126,922
|
)
|
|
|
|
|
|
|
(780,585
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98,927
|
|
|
|
(808,580
|
)
|
Gas bought for resale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(556,459
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(556,459
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational costs, total
|
|
|
(1,831,946
|
)
|
|
|
|
|
|
|
(4,192,981
|
)
|
|
|
(556,459
|
)
|
|
|
|
|
|
|
(3
|
)
|
|
|
133,752
|
|
|
|
(6,447,637
|
)
|
OPERATIONG COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
|
(114,985
|
)
|
|
|
(52,575
|
)
|
|
|
(460,306
|
)
|
|
|
(24,147
|
)
|
|
|
(9,893
|
)
|
|
|
(18,334
|
)
|
|
|
|
|
|
|
(680,240
|
)
|
Profit sharing
|
|
|
(2,901
|
)
|
|
|
(1,577
|
)
|
|
|
(12,674
|
)
|
|
|
|
|
|
|
351
|
|
|
|
(5,926
|
)
|
|
|
|
|
|
|
(22,727
|
)
|
Post-retirement obligations
|
|
|
(23,053
|
)
|
|
|
(13,317
|
)
|
|
|
(112,669
|
)
|
|
|
|
|
|
|
|
|
|
|
(20,358
|
)
|
|
|
|
|
|
|
(169,397
|
)
|
Materials
|
|
|
(3,436
|
)
|
|
|
(1,727
|
)
|
|
|
(26,875
|
)
|
|
|
(854
|
)
|
|
|
(709
|
)
|
|
|
(115
|
)
|
|
|
10
|
|
|
|
(33,706
|
)
|
Outsourced services
|
|
|
(49,049
|
)
|
|
|
(18,880
|
)
|
|
|
(410,579
|
)
|
|
|
(8,275
|
)
|
|
|
(2,878
|
)
|
|
|
(9,123
|
)
|
|
|
8,438
|
|
|
|
(490,346
|
)
|
Depreciation and amortization
|
|
|
(81,980
|
)
|
|
|
|
|
|
|
(292,240
|
)
|
|
|
(36,142
|
)
|
|
|
(704
|
)
|
|
|
(234
|
)
|
|
|
|
|
|
|
(411,300
|
)
|
Operational provisions
|
|
|
(36,369
|
)
|
|
|
(3,962
|
)
|
|
|
(148,588
|
)
|
|
|
|
|
|
|
(213
|
)
|
|
|
(78,187
|
)
|
|
|
|
|
|
|
(267,319
|
)
|
Construction costs
|
|
|
|
|
|
|
(4,732
|
)
|
|
|
(361,492
|
)
|
|
|
(17,419
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(383,643
|
)
|
Other operating expenses, net
|
|
|
(23,434
|
)
|
|
|
(7,800
|
)
|
|
|
(110,686
|
)
|
|
|
(5,674
|
)
|
|
|
(1,991
|
)
|
|
|
(6,375
|
)
|
|
|
4,353
|
|
|
|
(151,607
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of operation
|
|
|
(335,207
|
)
|
|
|
(104,570
|
)
|
|
|
(1,936,109
|
)
|
|
|
(92,511
|
)
|
|
|
(16,037
|
)
|
|
|
(138,652
|
)
|
|
|
12,801
|
|
|
|
(2,610,285
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
|
|
(2,167,153
|
)
|
|
|
(104,570
|
)
|
|
|
(6,129,090
|
)
|
|
|
(648,970
|
)
|
|
|
(16,037
|
)
|
|
|
(138,655
|
)
|
|
|
146,553
|
|
|
|
(9,057,922
|
)
|
Equity method loss (gain) in non-consolidated investes
|
|
|
(140,412
|
)
|
|
|
102,474
|
|
|
|
16,743
|
|
|
|
|
|
|
|
(763
|
)
|
|
|
(4,275
|
)
|
|
|
|
|
|
|
(26,233
|
)
|
OPERATIONAL PROFIT BEFORE FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE (EXPENSES)
|
|
|
730,474
|
|
|
|
324,593
|
|
|
|
342,359
|
|
|
|
81,734
|
|
|
|
(16,800
|
)
|
|
|
(77,885
|
)
|
|
|
|
|
|
|
1,384,475
|
|
Financial revenues
|
|
|
244,465
|
|
|
|
14,640
|
|
|
|
182,241
|
|
|
|
27,825
|
|
|
|
780
|
|
|
|
21,218
|
|
|
|
|
|
|
|
491,169
|
|
Financial expenses
|
|
|
(1,006,540
|
)
|
|
|
(2,343
|
)
|
|
|
(312,299
|
)
|
|
|
(19,984
|
)
|
|
|
(2,861
|
)
|
|
|
(1,774
|
)
|
|
|
|
|
|
|
(1,345,801
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-TAX PROFIT
|
|
|
(31,601
|
)
|
|
|
336,890
|
|
|
|
212,301
|
|
|
|
89,575
|
|
|
|
(18,881
|
)
|
|
|
(58,441
|
)
|
|
|
|
|
|
|
529,843
|
|
Income and Social Contribution taxes
|
|
|
(22,990
|
)
|
|
|
(61,996
|
)
|
|
|
(67,386
|
)
|
|
|
(27,954
|
)
|
|
|
5,769
|
|
|
|
27,567
|
|
|
|
|
|
|
|
(146,990
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN (LOSS) ON CONTINUING OPERATIONS
|
|
|
(54,591
|
)
|
|
|
274,894
|
|
|
|
144,915
|
|
|
|
61,621
|
|
|
|
(13,112
|
)
|
|
|
(30,874
|
)
|
|
|
|
|
|
|
382,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit in the period from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,372
|
|
|
|
|
|
|
|
|
|
|
|
21,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT (LOSS)
|
|
|
(54,591
|
)
|
|
|
274,894
|
|
|
|
144,915
|
|
|
|
61,621
|
|
|
|
8,260
|
|
|
|
(30,874
|
)
|
|
|
|
|
|
|
404,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest of the controlling shareholders
|
|
|
(54,591
|
)
|
|
|
274,894
|
|
|
|
144,915
|
|
|
|
61,323
|
|
|
|
8,260
|
|
|
|
(30,874
|
)
|
|
|
|
|
|
|
403,927
|
|
Interest of non-controlling shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(54,591
|
)
|
|
|
274,894
|
|
|
|
144,915
|
|
|
|
61,621
|
|
|
|
8,260
|
|
|
|
(30,874
|
)
|
|
|
|
|
|
|
404,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendices
86
Investments
|
|
|
|
|
|
|
|
|
Description
|
|
2018
|
|
|
June/18
|
|
GENERATION
|
|
|
55
|
|
|
|
8
|
|
Investment program
|
|
|
55
|
|
|
|
8
|
|
Capital commitments
|
|
|
257
|
|
|
|
150
|
|
Alianga Norte
|
|
|
72
|
|
|
|
42
|
|
SPE - Guanhaes
|
|
|
60
|
|
|
|
35
|
|
SPE - Amazonia Energia Participagdes S.A. (Belo Monte)
|
|
|
120
|
|
|
|
70
|
|
Usina Hidreletrica Itaocara S.A.
|
|
|
5
|
|
|
|
3
|
|
TRANSMISSION
|
|
|
154
|
|
|
|
3
|
|
Investment program
|
|
|
154
|
|
|
|
3
|
|
CEMIG D
|
|
|
1,131
|
|
|
|
394
|
|
Investment program
|
|
|
1,131
|
|
|
|
394
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,597
|
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
Losses
87
Sources and uses of
electricity
88
89
PLANTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant
|
|
Company
|
|
Type
|
|
Cemigs
Interest
|
|
|
Installed
Capacit
(MW)
|
|
|
Assured
Energy
(average
MW)
|
|
|
Installed
Capacit Cemig
(MW)*
|
|
|
Assured
Energy
Cemig (average
MW)*
|
|
|
Year
Concession or
Authorization
Expires
|
|
Emborcação
|
|
CEMIG GT
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
1,192.00
|
|
|
|
499.70
|
|
|
|
1,192.00
|
|
|
|
499.70
|
|
|
|
7/23/2025
|
|
Nova Ponte
|
|
CEMIG GT
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
510.00
|
|
|
|
270.10
|
|
|
|
510.00
|
|
|
|
270.10
|
|
|
|
7/23/2025
|
|
Irapé
|
|
CEMIG GT
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
399.00
|
|
|
|
207.90
|
|
|
|
399.00
|
|
|
|
207.90
|
|
|
|
2/28/2035
|
|
Igarapé
|
|
CEMIG GT
|
|
Thermal
|
|
|
100.00%
|
|
|
|
131.00
|
|
|
|
71.30
|
|
|
|
131.00
|
|
|
|
71.30
|
|
|
|
8/13/2024
|
|
Queimado
|
|
CEMIG GT
|
|
Hydroelectric
|
|
|
82.50%
|
|
|
|
105.00
|
|
|
|
67.90
|
|
|
|
86.63
|
|
|
|
56.02
|
|
|
|
1/2/2033
|
|
Volta do Rio
|
|
CEMIG GT
|
|
Wind Farm
|
|
|
49.00%
|
|
|
|
42.00
|
|
|
|
18.41
|
|
|
|
20.58
|
|
|
|
9.02
|
|
|
|
12/26/2031
|
|
Praias de Parajuru
|
|
CEMIG GT
|
|
Wind Farm
|
|
|
49.00%
|
|
|
|
28.80
|
|
|
|
8.39
|
|
|
|
14.11
|
|
|
|
4.11
|
|
|
|
9/24/2032
|
|
Praia do Morgado
|
|
CEMIG GT
|
|
Wind Farm
|
|
|
49.00%
|
|
|
|
28.80
|
|
|
|
13.20
|
|
|
|
14.11
|
|
|
|
6.47
|
|
|
|
12/26/2031
|
|
Paracambi (Cemig)
|
|
CEMIG GT
|
|
SHP
|
|
|
49.00%
|
|
|
|
25.00
|
|
|
|
19.53
|
|
|
|
12.25
|
|
|
|
9.57
|
|
|
|
2/19/2031
|
|
Rio de Pedras
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
9.28
|
|
|
|
2.15
|
|
|
|
9.28
|
|
|
|
2.15
|
|
|
|
9/19/2024
|
|
Poço Fundo
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
9.16
|
|
|
|
5.79
|
|
|
|
9.16
|
|
|
|
5.79
|
|
|
|
8/19/2025
|
|
São Bernardo
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
6.82
|
|
|
|
3.42
|
|
|
|
6.82
|
|
|
|
3.42
|
|
|
|
8/19/2025
|
|
Paraúna
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
4.28
|
|
|
|
1.90
|
|
|
|
4.28
|
|
|
|
1.90
|
|
|
|
|
|
Salto Morais
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
2.39
|
|
|
|
0.60
|
|
|
|
2.39
|
|
|
|
0.60
|
|
|
|
7/1/2020
|
|
Sumidouro
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
2.12
|
|
|
|
0.53
|
|
|
|
2.12
|
|
|
|
0.53
|
|
|
|
7/8/2015
|
|
Anil
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
2.08
|
|
|
|
1.10
|
|
|
|
2.08
|
|
|
|
1.10
|
|
|
|
7/8/2015
|
|
Xicão
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
1.81
|
|
|
|
0.61
|
|
|
|
1.81
|
|
|
|
0.61
|
|
|
|
8/19/2025
|
|
Luiz Dias
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
1.62
|
|
|
|
0.61
|
|
|
|
1.62
|
|
|
|
0.61
|
|
|
|
8/19/2025
|
|
Central Mineirão
|
|
CEMIG GT
|
|
Solar
|
|
|
100.00%
|
|
|
|
1.42
|
|
|
|
|
|
|
|
1.42
|
|
|
|
|
|
|
|
|
|
Santa Marta
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
1.00
|
|
|
|
0.58
|
|
|
|
1.00
|
|
|
|
0.58
|
|
|
|
7/8/2015
|
|
Pissarrão
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
0.80
|
|
|
|
0.55
|
|
|
|
0.80
|
|
|
|
0.55
|
|
|
|
11/19/2004
|
|
Jacutinga
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
0.72
|
|
|
|
0.57
|
|
|
|
0.72
|
|
|
|
0.57
|
|
|
|
Não Tem
|
|
Santa Luzia
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
0.70
|
|
|
|
0.23
|
|
|
|
0.70
|
|
|
|
0.23
|
|
|
|
2/25/2026
|
|
Lages *
|
|
CEMIG GT
|
|
SHP
|
|
|
100.00%
|
|
|
|
0.68
|
|
|
|
0.54
|
|
|
|
0.68
|
|
|
|
0.54
|
|
|
|
6/24/2010
|
|
Três Marias
|
|
CEMIG G. TRÊS MARIAS
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
396.00
|
|
|
|
239.00
|
|
|
|
396.00
|
|
|
|
239.00
|
|
|
|
1/4/2046
|
|
Salto Grande
|
|
CEMIG G. SALTO GRANDE
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
102.00
|
|
|
|
75.00
|
|
|
|
102.00
|
|
|
|
75.00
|
|
|
|
1/4/2046
|
|
Itutinga
|
|
CEMIG G. ITUTINGA
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
52.00
|
|
|
|
28.00
|
|
|
|
52.00
|
|
|
|
28.00
|
|
|
|
1/4/2046
|
|
Camargos
|
|
CEMIG G. CAMARGOS
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
46.00
|
|
|
|
21.00
|
|
|
|
46.00
|
|
|
|
21.00
|
|
|
|
1/4/2046
|
|
Peti
|
|
CEMIG G. LESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
9.40
|
|
|
|
6.18
|
|
|
|
9.40
|
|
|
|
6.18
|
|
|
|
1/4/2046
|
|
Tronqueiras
|
|
CEMIG G. LESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
8.50
|
|
|
|
3.39
|
|
|
|
8.50
|
|
|
|
3.39
|
|
|
|
1/4/2046
|
|
Ervália
|
|
CEMIG G. LESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
6.97
|
|
|
|
4.66
|
|
|
|
6.97
|
|
|
|
4.66
|
|
|
|
1/4/2046
|
|
Neblina
|
|
CEMIG G. LESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
6.47
|
|
|
|
0.35
|
|
|
|
6.47
|
|
|
|
0.35
|
|
|
|
1/4/2046
|
|
Dona Rita
|
|
CEMIG G. LESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
2.40
|
|
|
|
1.03
|
|
|
|
2.40
|
|
|
|
1.03
|
|
|
|
1/4/2046
|
|
Sinceridade
|
|
CEMIG G. LESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
1.42
|
|
|
|
3.59
|
|
|
|
1.42
|
|
|
|
3.59
|
|
|
|
1/4/2046
|
|
Gafanhoto
|
|
CEMIG G. OESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
14.00
|
|
|
|
6.68
|
|
|
|
14.00
|
|
|
|
6.68
|
|
|
|
1/4/2046
|
|
Martins
|
|
CEMIG G. OESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
7.70
|
|
|
|
1.84
|
|
|
|
7.70
|
|
|
|
1.84
|
|
|
|
1/4/2046
|
|
Cajuru
|
|
CEMIG G. OESTE
|
|
SHP
|
|
|
100.00%
|
|
|
|
7.20
|
|
|
|
2.69
|
|
|
|
7.20
|
|
|
|
2.69
|
|
|
|
1/4/2046
|
|
Piau
|
|
CEMIG G. SUL
|
|
SHP
|
|
|
100.00%
|
|
|
|
18.01
|
|
|
|
13.53
|
|
|
|
18.01
|
|
|
|
13.53
|
|
|
|
1/4/2046
|
|
Joasal
|
|
CEMIG G. SUL
|
|
SHP
|
|
|
100.00%
|
|
|
|
8.40
|
|
|
|
5.20
|
|
|
|
8.40
|
|
|
|
5.20
|
|
|
|
1/4/2046
|
|
Cel. Domiciano
|
|
CEMIG G. SUL
|
|
SHP
|
|
|
100.00%
|
|
|
|
5.04
|
|
|
|
3.03
|
|
|
|
5.04
|
|
|
|
3.03
|
|
|
|
1/4/2046
|
|
Paciência
|
|
CEMIG G. SUL
|
|
SHP
|
|
|
100.00%
|
|
|
|
4.08
|
|
|
|
2.36
|
|
|
|
4.08
|
|
|
|
2.36
|
|
|
|
1/4/2046
|
|
Marmelos
|
|
CEMIG G. SUL
|
|
SHP
|
|
|
100.00%
|
|
|
|
4.00
|
|
|
|
2.74
|
|
|
|
4.00
|
|
|
|
2.74
|
|
|
|
1/4/2046
|
|
Sá Carvalho
|
|
Sá Carvalho
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
78.00
|
|
|
|
56.10
|
|
|
|
78.00
|
|
|
|
56.10
|
|
|
|
12/1/2024
|
|
Rosal
|
|
Rosal Energia
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
55.00
|
|
|
|
29.10
|
|
|
|
55.00
|
|
|
|
29.10
|
|
|
|
5/8/2032
|
|
Pai Joaquim
|
|
CEMIG PCH
|
|
SHP
|
|
|
100.00%
|
|
|
|
23.00
|
|
|
|
13.91
|
|
|
|
23.00
|
|
|
|
13.91
|
|
|
|
4/1/2032
|
|
Salto Voltão
|
|
Horizontes Energia
|
|
SHP
|
|
|
100.00%
|
|
|
|
8.20
|
|
|
|
7.36
|
|
|
|
8.20
|
|
|
|
7.36
|
|
|
|
10/4/2030
|
|
Salto do Passo Velho
|
|
Horizontes Energia
|
|
SHP
|
|
|
100.00%
|
|
|
|
1.80
|
|
|
|
1.64
|
|
|
|
1.80
|
|
|
|
1.64
|
|
|
|
10/4/2030
|
|
Machado Mineiro
|
|
Horizontes Energia
|
|
SHP
|
|
|
100.00%
|
|
|
|
1.72
|
|
|
|
1.14
|
|
|
|
1.72
|
|
|
|
1.14
|
|
|
|
7/8/2025
|
|
Aimorés
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
45.00%
|
|
|
|
330.00
|
|
|
|
181.90
|
|
|
|
148.50
|
|
|
|
81.86
|
|
|
|
12/20/2035
|
|
Amador Aguiar I (Capim Branco I)
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
39.32%
|
|
|
|
240.00
|
|
|
|
154.40
|
|
|
|
94.36
|
|
|
|
60.70
|
|
|
|
8/29/2036
|
|
Igarapava
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
23.69%
|
|
|
|
210.00
|
|
|
|
134.20
|
|
|
|
49.75
|
|
|
|
31.80
|
|
|
|
12/30/2028
|
|
Amador Aguiar II (Capim Branco II)
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
39.32%
|
|
|
|
210.00
|
|
|
|
131.70
|
|
|
|
82.56
|
|
|
|
51.78
|
|
|
|
8/29/2036
|
|
Funil
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
45.00%
|
|
|
|
180.00
|
|
|
|
84.60
|
|
|
|
81.00
|
|
|
|
38.07
|
|
|
|
12/20/2035
|
|
Porto Estrela
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
30.00%
|
|
|
|
112.00
|
|
|
|
61.80
|
|
|
|
33.60
|
|
|
|
18.54
|
|
|
|
7/10/2032
|
|
Candonga
|
|
ALIANÇA
|
|
Hydroelectric
|
|
|
22.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5/25/2035
|
|
Baguari
|
|
BAGUARI ENERGIA
|
|
Hydroelectric
|
|
|
34.00%
|
|
|
|
140.00
|
|
|
|
84.70
|
|
|
|
47.60
|
|
|
|
28.80
|
|
|
|
8/15/2041
|
|
Cachoeirão
|
|
Hidrelétrica Cachoeirão
|
|
SHP
|
|
|
49.00%
|
|
|
|
27.00
|
|
|
|
16.37
|
|
|
|
13.23
|
|
|
|
8.02
|
|
|
|
7/25/2030
|
|
Pipoca
|
|
Hidrelétrica Pipoca
|
|
SHP
|
|
|
49.00%
|
|
|
|
20.00
|
|
|
|
11.90
|
|
|
|
9.80
|
|
|
|
5.83
|
|
|
|
9/10/2031
|
|
SHPs
|
|
Light Energia
|
|
SHP
|
|
|
48.86%
|
|
|
|
855.14
|
|
|
|
620.70
|
|
|
|
417.82
|
|
|
|
303.27
|
|
|
|
|
|
Paracambi (Light)
|
|
Lightger
|
|
SHP
|
|
|
24.92%
|
|
|
|
25.00
|
|
|
|
19.53
|
|
|
|
6.23
|
|
|
|
4.87
|
|
|
|
2/16/2031
|
|
SHPs
|
|
Renova Energia
|
|
SHP
|
|
|
44.62%
|
|
|
|
41.80
|
|
|
|
24.40
|
|
|
|
18.65
|
|
|
|
10.89
|
|
|
|
|
|
SHPs
|
|
Brasil PCH
|
|
SHP
|
|
|
22.76%
|
|
|
|
291.00
|
|
|
|
192.68
|
|
|
|
66.22
|
|
|
|
43.85
|
|
|
|
|
|
Belo Monte
|
|
Norte
|
|
Hydroelectric
|
|
|
12.91%
|
|
|
|
5,121.99
|
|
|
|
4,571.00
|
|
|
|
661.04
|
|
|
|
589.93
|
|
|
|
26/08/2045
|
|
Retiro Baixo
|
|
Retiro Baixo
|
|
Hydroelectric
|
|
|
49.90%
|
|
|
|
82.00
|
|
|
|
36.60
|
|
|
|
40.92
|
|
|
|
18.26
|
|
|
|
8/25/2041
|
|
Santo Antônio
|
|
SAE
|
|
Hydroelectric
|
|
|
18.13%
|
|
|
|
3,568.30
|
|
|
|
2,424.00
|
|
|
|
646.90
|
|
|
|
439.45
|
|
|
|
6/12/2046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
14,828.02
|
|
|
|
10,475.61
|
|
|
|
5,710.06
|
|
|
|
3,418.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
São Simão
|
|
CEMIG GT
|
|
Hydroelectric
|
|
|
100.00%
|
|
|
|
1,710.00
|
|
|
|
1,281.00
|
|
|
|
1,710.00
|
|
|
|
1,281.00
|
|
|
|
Temporarily
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
RAP (Permitted Annual Revenue -
Transmission ) - 2017/2018 cycle
|
|
Annual Permitted Revenue (RAP)
|
|
RAP
|
|
|
% Cemig
|
|
|
Cemig
Consolidado
|
|
Cemig GT
|
|
|
709,016,589
|
|
|
|
100.00%
|
|
|
|
709,016,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemig GT
|
|
|
687,018,817
|
|
|
|
100.00%
|
|
|
|
687,018,817
|
|
Cemig Itajuba
|
|
|
21,997,772
|
|
|
|
100.00%
|
|
|
|
21,997,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centroeste
|
|
|
17,399,265
|
|
|
|
51.00%
|
|
|
|
8,873,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taesa
|
|
|
2,328,434,417
|
|
|
|
21.68%
|
|
|
|
504,804,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transleste
|
|
|
12,241,196
|
|
|
|
30.00%
|
|
|
|
2,653,891
|
|
Transudeste
|
|
|
7,334,302
|
|
|
|
29.00%
|
|
|
|
1,590,077
|
|
Transirapé
|
|
|
9,771,428
|
|
|
|
29.50%
|
|
|
|
2,118,446
|
|
ETEO
|
|
|
88,077,706
|
|
|
|
100.00%
|
|
|
|
19,095,247
|
|
ETAU
|
|
|
24,216,647
|
|
|
|
52.58%
|
|
|
|
5,250,169
|
|
NOVATRANS
|
|
|
517,164,423
|
|
|
|
100.00%
|
|
|
|
112,121,247
|
|
TSN
|
|
|
427,855,624
|
|
|
|
100.00%
|
|
|
|
92,759,099
|
|
GTESA
|
|
|
9,361,375
|
|
|
|
100.00%
|
|
|
|
2,029,546
|
|
PATESA
|
|
|
25,008,641
|
|
|
|
100.00%
|
|
|
|
5,421,873
|
|
Munirah
|
|
|
36,484,440
|
|
|
|
100.00%
|
|
|
|
7,909,826
|
|
Brasnorte
|
|
|
10,062,251
|
|
|
|
38.66%
|
|
|
|
2,181,496
|
|
São Gotardo
|
|
|
5,203,930
|
|
|
|
100.00%
|
|
|
|
1,128,212
|
|
NTE
|
|
|
153,424,301
|
|
|
|
100.00%
|
|
|
|
33,262,388
|
|
STE
|
|
|
81,598,032
|
|
|
|
100.00%
|
|
|
|
17,690,453
|
|
ATE I
|
|
|
149,036,948
|
|
|
|
100.00%
|
|
|
|
32,311,210
|
|
ATE II
|
|
|
230,277,807
|
|
|
|
100.00%
|
|
|
|
49,924,229
|
|
ATE III
|
|
|
116,301,579
|
|
|
|
100.00%
|
|
|
|
25,214,182
|
|
EATE
|
|
|
177,139,821
|
|
|
|
49.98%
|
|
|
|
38,403,913
|
|
STC
|
|
|
17,592,992
|
|
|
|
39.99%
|
|
|
|
3,814,161
|
|
Lumitrans
|
|
|
10,651,737
|
|
|
|
39.99%
|
|
|
|
2,309,297
|
|
ENTE
|
|
|
112,564,897
|
|
|
|
49.99%
|
|
|
|
24,404,070
|
|
ERTE
|
|
|
25,266,463
|
|
|
|
49.99%
|
|
|
|
5,477,769
|
|
ETEP
|
|
|
28,183,293
|
|
|
|
49.98%
|
|
|
|
6,110,138
|
|
ECTE
|
|
|
9,074,626
|
|
|
|
19.09%
|
|
|
|
1,967,379
|
|
EBTE
|
|
|
34,269,232
|
|
|
|
74.49%
|
|
|
|
7,429,570
|
|
ESDE
|
|
|
6,548,398
|
|
|
|
49.98%
|
|
|
|
1,419,693
|
|
ETSE
|
|
|
3,722,327
|
|
|
|
19.09%
|
|
|
|
807,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light
|
|
|
8,941,679
|
|
|
|
48.86%
|
|
|
|
1,938,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAP TOTAL CEMIG
|
|
|
|
|
|
|
|
|
|
|
1,224,633,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91
Table Cemig D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEMIG D Market
|
|
|
|
(GWh)
|
|
|
GW
|
|
Quarter
|
|
Captive Consumers
|
|
|
TUSD ENERGY1
|
|
|
T.E.D2
|
|
|
TUSD PICK3
|
|
1Q16
|
|
|
6,408
|
|
|
|
4,053
|
|
|
|
10,460
|
|
|
|
29
|
|
2Q16
|
|
|
6,711
|
|
|
|
4,497
|
|
|
|
11,208
|
|
|
|
29
|
|
3Q16
|
|
|
6,365
|
|
|
|
4,424
|
|
|
|
10,788
|
|
|
|
29
|
|
4Q16
|
|
|
6,402
|
|
|
|
4,409
|
|
|
|
10,811
|
|
|
|
30
|
|
1Q17
|
|
|
6,249
|
|
|
|
4,274
|
|
|
|
10,523
|
|
|
|
30
|
|
2Q17
|
|
|
6,314
|
|
|
|
4,287
|
|
|
|
10,601
|
|
|
|
31
|
|
3Q17
|
|
|
6,232
|
|
|
|
4,586
|
|
|
|
10,817
|
|
|
|
31
|
|
4Q18
|
|
|
6,221
|
|
|
|
4,591
|
|
|
|
10,813
|
|
|
|
31
|
|
1Q18
|
|
|
6,201
|
|
|
|
4,637
|
|
|
|
10,838
|
|
|
|
31
|
|
2Q18
|
|
|
6,331
|
|
|
|
4,873
|
|
|
|
11,204
|
|
|
|
30
|
|
1.
|
Refers to the quantity of electricity for calculation of the regulatory charges charged to free consumer clients
(Portion A)
|
2.
|
Total electricity distributed
|
3.
|
Sum of the demand on w hich the TUSD is invoiced, according to demand contracted (Portion B).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Sales to end consumers
|
|
|
4,085
|
|
|
|
4,006
|
|
|
|
2.0
|
|
|
|
7,921
|
|
|
|
8,184
|
|
|
|
(3.2
|
)
|
TUSD
|
|
|
445
|
|
|
|
447
|
|
|
|
|
|
|
|
825
|
|
|
|
915
|
|
|
|
(9.8
|
)
|
CVA and Other financial components in tariff adjustment
|
|
|
628
|
|
|
|
(29
|
)
|
|
|
|
|
|
|
1,069
|
|
|
|
(332
|
)
|
|
|
|
|
Construction revenue
|
|
|
191
|
|
|
|
240
|
|
|
|
(20.2
|
)
|
|
|
361
|
|
|
|
421
|
|
|
|
(14.2
|
)
|
Others
|
|
|
304
|
|
|
|
298
|
|
|
|
2.2
|
|
|
|
664
|
|
|
|
575
|
|
|
|
15.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
5,654
|
|
|
|
4,961
|
|
|
|
14.0
|
|
|
|
10,840
|
|
|
|
9,763
|
|
|
|
11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deductions
|
|
|
(2,183
|
)
|
|
|
(2,109
|
)
|
|
|
3.5
|
|
|
|
(4,385
|
)
|
|
|
(4,143
|
)
|
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues
|
|
|
3,471
|
|
|
|
2,852
|
|
|
|
21.7
|
|
|
|
6,455
|
|
|
|
5,620
|
|
|
|
14.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Personnel/Administrators/Councillors
|
|
|
234
|
|
|
|
390
|
|
|
|
(39.8
|
)
|
|
|
460
|
|
|
|
644
|
|
|
|
(28.5
|
)
|
Employee Participation
|
|
|
(1
|
)
|
|
|
4
|
|
|
|
|
|
|
|
13
|
|
|
|
18
|
|
|
|
(28.2
|
)
|
Forluz Post-Retirement Employee Benefits
|
|
|
57
|
|
|
|
67
|
|
|
|
(14.2
|
)
|
|
|
113
|
|
|
|
132
|
|
|
|
(14.5
|
)
|
Materials
|
|
|
14
|
|
|
|
12
|
|
|
|
20.0
|
|
|
|
27
|
|
|
|
20
|
|
|
|
34.0
|
|
Contracted Services
|
|
|
212
|
|
|
|
188
|
|
|
|
12.6
|
|
|
|
411
|
|
|
|
361
|
|
|
|
13.8
|
|
Purchased Energy
|
|
|
1,927
|
|
|
|
1,676
|
|
|
|
15.0
|
|
|
|
3,412
|
|
|
|
3,054
|
|
|
|
11.7
|
|
Depreciation and Amortization
|
|
|
147
|
|
|
|
133
|
|
|
|
10.6
|
|
|
|
292
|
|
|
|
263
|
|
|
|
11.1
|
|
Operating Provisions
|
|
|
64
|
|
|
|
156
|
|
|
|
(59.2
|
)
|
|
|
149
|
|
|
|
293
|
|
|
|
(49.3
|
)
|
Charges for Use of Basic Transmission Network
|
|
|
410
|
|
|
|
152
|
|
|
|
169.9
|
|
|
|
781
|
|
|
|
314
|
|
|
|
148.4
|
|
Cost from Operation
|
|
|
191
|
|
|
|
240
|
|
|
|
(20.2
|
)
|
|
|
361
|
|
|
|
421
|
|
|
|
(14.2
|
)
|
Other Expenses
|
|
|
63
|
|
|
|
70
|
|
|
|
(9.9
|
)
|
|
|
111
|
|
|
|
139
|
|
|
|
(20.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
3,320
|
|
|
|
3,088
|
|
|
|
7.5
|
|
|
|
6,129
|
|
|
|
5,659
|
|
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
3,471
|
|
|
|
2,852
|
|
|
|
21.7
|
|
|
|
6,455
|
|
|
|
5,620
|
|
|
|
14.9
|
|
Operating Expenses
|
|
|
3,320
|
|
|
|
3,088
|
|
|
|
7.5
|
|
|
|
6,129
|
|
|
|
5,659
|
|
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
151
|
|
|
|
(237
|
)
|
|
|
|
|
|
|
326
|
|
|
|
(40
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
299
|
|
|
|
(103
|
)
|
|
|
|
|
|
|
618
|
|
|
|
223
|
|
|
|
176.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result
|
|
|
(59
|
)
|
|
|
(115
|
)
|
|
|
(48.1
|
)
|
|
|
(130
|
)
|
|
|
(228
|
)
|
|
|
(43.0
|
)
|
Provision for Income Taxes, Social Cont &
|
|
|
(29
|
)
|
|
|
111
|
|
|
|
|
|
|
|
(67
|
)
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
62
|
|
|
|
(240
|
)
|
|
|
|
|
|
|
128
|
|
|
|
(191
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92
Table Cemig GT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Sales to end consumers
|
|
|
1,012
|
|
|
|
1,003
|
|
|
|
0.9
|
|
|
|
1,898
|
|
|
|
1,933
|
|
|
|
(1.8
|
)
|
Supply
|
|
|
703
|
|
|
|
760
|
|
|
|
(7.6
|
)
|
|
|
1,347
|
|
|
|
1,401
|
|
|
|
(3.8
|
)
|
Revenues from Trans. Network
|
|
|
151
|
|
|
|
114
|
|
|
|
32.2
|
|
|
|
295
|
|
|
|
241
|
|
|
|
22.1
|
|
Gain on monetary updating of Concession Grant Fee
|
|
|
75
|
|
|
|
71
|
|
|
|
5.9
|
|
|
|
157
|
|
|
|
150
|
|
|
|
4.3
|
|
Transactions in the CCEE
|
|
|
32
|
|
|
|
192
|
|
|
|
(83.1
|
)
|
|
|
154
|
|
|
|
412
|
|
|
|
(62.6
|
)
|
Construction revenue
|
|
|
4
|
|
|
|
4
|
|
|
|
(10.6
|
)
|
|
|
5
|
|
|
|
7
|
|
|
|
(32.6
|
)
|
Transmission indemnity revenue
|
|
|
97
|
|
|
|
204
|
|
|
|
(52.6
|
)
|
|
|
147
|
|
|
|
270
|
|
|
|
(45.7
|
)
|
Generation indemnity revenue
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
14
|
|
|
|
7
|
|
|
|
100.8
|
|
|
|
28
|
|
|
|
17
|
|
|
|
59.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
2,105
|
|
|
|
2,356
|
|
|
|
(10.6
|
)
|
|
|
4,064
|
|
|
|
4,432
|
|
|
|
(8.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deductions
|
|
|
(392
|
)
|
|
|
(361
|
)
|
|
|
8.5
|
|
|
|
(789
|
)
|
|
|
(763
|
)
|
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues
|
|
|
1,713
|
|
|
|
1,995
|
|
|
|
(14.1
|
)
|
|
|
3,276
|
|
|
|
3,669
|
|
|
|
(10.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Personnel/Administrators/Councillors
|
|
|
85
|
|
|
|
120
|
|
|
|
(29.0
|
)
|
|
|
165
|
|
|
|
212
|
|
|
|
(22.0
|
)
|
Employees and managers profit shares
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
5
|
|
|
|
6
|
|
|
|
0.8
|
|
Forluz Post-Retirement Employee Benefits
|
|
|
19
|
|
|
|
21
|
|
|
|
(10.5
|
)
|
|
|
36
|
|
|
|
41
|
|
|
|
(10.8
|
)
|
Materials
|
|
|
3
|
|
|
|
3
|
|
|
|
(11.8
|
)
|
|
|
5
|
|
|
|
6
|
|
|
|
(15.4
|
)
|
Raw Materials and Supplies Energy Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted Services
|
|
|
35
|
|
|
|
37
|
|
|
|
(6.1
|
)
|
|
|
62
|
|
|
|
64
|
|
|
|
(3.2
|
)
|
Depreciation and Amortization
|
|
|
37
|
|
|
|
45
|
|
|
|
(19.1
|
)
|
|
|
73
|
|
|
|
86
|
|
|
|
(15.3
|
)
|
Operating Reserves
|
|
|
31
|
|
|
|
6
|
|
|
|
423.5
|
|
|
|
40
|
|
|
|
61
|
|
|
|
(35.6
|
)
|
Charges for Use of Basic Transmission Network
|
|
|
56
|
|
|
|
84
|
|
|
|
(33.6
|
)
|
|
|
126
|
|
|
|
166
|
|
|
|
(24.4
|
)
|
Purchased Energy
|
|
|
897
|
|
|
|
981
|
|
|
|
(8.5
|
)
|
|
|
1,693
|
|
|
|
1,715
|
|
|
|
(1.3
|
)
|
Construction Cost
|
|
|
4
|
|
|
|
4
|
|
|
|
(10.6
|
)
|
|
|
5
|
|
|
|
7
|
|
|
|
(32.6
|
)
|
Other Expenses
|
|
|
18
|
|
|
|
8
|
|
|
|
119.0
|
|
|
|
31
|
|
|
|
28
|
|
|
|
10.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,183
|
|
|
|
1,310
|
|
|
|
(9.7
|
)
|
|
|
2,239
|
|
|
|
2,391
|
|
|
|
(6.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
1,713
|
|
|
|
1,995
|
|
|
|
(14.1
|
)
|
|
|
3,276
|
|
|
|
3,669
|
|
|
|
(10.7
|
)
|
Operating Expenses
|
|
|
(1,183
|
)
|
|
|
(1,310
|
)
|
|
|
(9.7
|
)
|
|
|
(2,239
|
)
|
|
|
(2,391
|
)
|
|
|
(6.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
530
|
|
|
|
685
|
|
|
|
(22.6
|
)
|
|
|
1,037
|
|
|
|
1,278
|
|
|
|
(18.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity equivalence results
|
|
|
(109
|
)
|
|
|
40
|
|
|
|
|
|
|
|
(140
|
)
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
457
|
|
|
|
769
|
|
|
|
(40.6
|
)
|
|
|
970
|
|
|
|
1,379
|
|
|
|
(29.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result
|
|
|
(650
|
)
|
|
|
(238
|
)
|
|
|
173.1
|
|
|
|
(755
|
)
|
|
|
(533
|
)
|
|
|
41.6
|
|
Provision for Income Taxes, Social Cont & Deferred Income Tax
|
|
|
49
|
|
|
|
(141
|
)
|
|
|
|
|
|
|
(75
|
)
|
|
|
(229
|
)
|
|
|
(67.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
(180
|
)
|
|
|
346
|
|
|
|
|
|
|
|
67
|
|
|
|
531
|
|
|
|
(87.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table Cemig
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Sales (Consolidated)(GWh)
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Residential
|
|
|
2,558
|
|
|
|
2,496
|
|
|
|
2.5
|
|
|
|
5,151
|
|
|
|
5,033
|
|
|
|
2.3
|
|
Industrial
|
|
|
4,525
|
|
|
|
4,451
|
|
|
|
1.7
|
|
|
|
8,553
|
|
|
|
8,704
|
|
|
|
(1.7
|
)
|
Commercial
|
|
|
2,155
|
|
|
|
1,893
|
|
|
|
13.9
|
|
|
|
4,198
|
|
|
|
3,805
|
|
|
|
10.3
|
|
Rural
|
|
|
955
|
|
|
|
954
|
|
|
|
0.1
|
|
|
|
1,720
|
|
|
|
1,752
|
|
|
|
(1.8
|
)
|
Others
|
|
|
897
|
|
|
|
892
|
|
|
|
0.6
|
|
|
|
1,776
|
|
|
|
1,752
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
11,090
|
|
|
|
10,685
|
|
|
|
3.8
|
|
|
|
21,399
|
|
|
|
21,046
|
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Consumption
|
|
|
11
|
|
|
|
9
|
|
|
|
29.2
|
|
|
|
23
|
|
|
|
18
|
|
|
|
30.1
|
|
Supply
|
|
|
2,975
|
|
|
|
2,846
|
|
|
|
4.5
|
|
|
|
5,607
|
|
|
|
5,740
|
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
14,076
|
|
|
|
13,540
|
|
|
|
4.0
|
|
|
|
27,030
|
|
|
|
26,805
|
|
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Sales
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Residential
|
|
|
1,948
|
|
|
|
1,928
|
|
|
|
1.1
|
|
|
|
3,866
|
|
|
|
3,919
|
|
|
|
(1.4
|
)
|
Industrial
|
|
|
1,149
|
|
|
|
1,242
|
|
|
|
(7.5
|
)
|
|
|
2,255
|
|
|
|
2,424
|
|
|
|
(7.0
|
)
|
Commercial
|
|
|
1,075
|
|
|
|
1,096
|
|
|
|
(1.9
|
)
|
|
|
2,144
|
|
|
|
2,236
|
|
|
|
(4.1
|
)
|
Rural
|
|
|
405
|
|
|
|
411
|
|
|
|
(1.4
|
)
|
|
|
748
|
|
|
|
779
|
|
|
|
(4.0
|
)
|
Others
|
|
|
401
|
|
|
|
415
|
|
|
|
(3.4
|
)
|
|
|
781
|
|
|
|
821
|
|
|
|
(4.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity sold to final consumers
|
|
|
4,979
|
|
|
|
5,092
|
|
|
|
(2.2
|
)
|
|
|
9,794
|
|
|
|
10,179
|
|
|
|
(3.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unbilled Supply, Net
|
|
|
93
|
|
|
|
(336
|
)
|
|
|
|
|
|
|
(26
|
)
|
|
|
(109
|
)
|
|
|
(75.9
|
)
|
Supply
|
|
|
767
|
|
|
|
1,044
|
|
|
|
(26.6
|
)
|
|
|
1,468
|
|
|
|
1,502
|
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
5,838
|
|
|
|
5,801
|
|
|
|
0.6
|
|
|
|
11,236
|
|
|
|
11,572
|
|
|
|
(2.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Sales to end consumers
|
|
|
5,109
|
|
|
|
5,022
|
|
|
|
1.7
|
|
|
|
9,842
|
|
|
|
10,145
|
|
|
|
(3.0
|
)
|
TUSD
|
|
|
441
|
|
|
|
437
|
|
|
|
0.7
|
|
|
|
814
|
|
|
|
900
|
|
|
|
(9.6
|
)
|
Supply
|
|
|
729
|
|
|
|
779
|
|
|
|
(6.4
|
)
|
|
|
1,394
|
|
|
|
1,428
|
|
|
|
(2.4
|
)
|
Transactions in the CCEE
|
|
|
26
|
|
|
|
199
|
|
|
|
(87.1
|
)
|
|
|
160
|
|
|
|
425
|
|
|
|
(62.4
|
)
|
CVA and Other financial components in tariff adjustment
|
|
|
628
|
|
|
|
(29
|
)
|
|
|
|
|
|
|
1,069
|
|
|
|
(332
|
)
|
|
|
|
|
Gain on monetary updating of Concession Grant Fee
|
|
|
75
|
|
|
|
71
|
|
|
|
5.9
|
|
|
|
157
|
|
|
|
150
|
|
|
|
4.3
|
|
Revenues from Trans. Network
|
|
|
106
|
|
|
|
85
|
|
|
|
24.3
|
|
|
|
207
|
|
|
|
177
|
|
|
|
16.4
|
|
Construction revenue
|
|
|
206
|
|
|
|
240
|
|
|
|
(14.4
|
)
|
|
|
384
|
|
|
|
441
|
|
|
|
(13.0
|
)
|
Gas supply
|
|
|
471
|
|
|
|
411
|
|
|
|
14.7
|
|
|
|
899
|
|
|
|
821
|
|
|
|
9.5
|
|
Transmission Indemnity Revenue
|
|
|
97
|
|
|
|
204
|
|
|
|
(52.6
|
)
|
|
|
147
|
|
|
|
270
|
|
|
|
(45.7
|
)
|
Generation Indemnity Revenue
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
304
|
|
|
|
370
|
|
|
|
(17.7
|
)
|
|
|
751
|
|
|
|
719
|
|
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
8,208
|
|
|
|
7,788
|
|
|
|
5.4
|
|
|
|
15,857
|
|
|
|
15,145
|
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deductions
|
|
|
(2,675
|
)
|
|
|
(2,583
|
)
|
|
|
3.5
|
|
|
|
(5,389
|
)
|
|
|
(5,127
|
)
|
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues
|
|
|
5,533
|
|
|
|
5,205
|
|
|
|
6.3
|
|
|
|
10,469
|
|
|
|
10,018
|
|
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Personnel/Administrators/Councillors
|
|
|
349
|
|
|
|
536
|
|
|
|
(35.0
|
)
|
|
|
680
|
|
|
|
917
|
|
|
|
(25.8
|
)
|
Employee Participation
|
|
|
3
|
|
|
|
6
|
|
|
|
(47.6
|
)
|
|
|
23
|
|
|
|
25
|
|
|
|
(8.7
|
)
|
Forluz Post-Retirement Employee Benefits
|
|
|
86
|
|
|
|
97
|
|
|
|
(11.6
|
)
|
|
|
169
|
|
|
|
192
|
|
|
|
(11.8
|
)
|
Materials
|
|
|
18
|
|
|
|
16
|
|
|
|
16.3
|
|
|
|
34
|
|
|
|
27
|
|
|
|
24.3
|
|
Contracted Services
|
|
|
255
|
|
|
|
238
|
|
|
|
6.9
|
|
|
|
490
|
|
|
|
447
|
|
|
|
9.8
|
|
Purchased Energy
|
|
|
2,819
|
|
|
|
2,649
|
|
|
|
6.4
|
|
|
|
5,083
|
|
|
|
4,742
|
|
|
|
7.2
|
|
Depreciation and Amortization
|
|
|
198
|
|
|
|
209
|
|
|
|
(5.3
|
)
|
|
|
411
|
|
|
|
411
|
|
|
|
0.1
|
|
Operating Provisions
|
|
|
134
|
|
|
|
161
|
|
|
|
(16.9
|
)
|
|
|
267
|
|
|
|
370
|
|
|
|
(27.7
|
)
|
Charges for Use of Basic Transmission Network
|
|
|
416
|
|
|
|
198
|
|
|
|
110.4
|
|
|
|
809
|
|
|
|
404
|
|
|
|
100.0
|
|
Gas bought for resale
|
|
|
293
|
|
|
|
263
|
|
|
|
11.6
|
|
|
|
556
|
|
|
|
485
|
|
|
|
14.7
|
|
Cost from Operation
|
|
|
203
|
|
|
|
240
|
|
|
|
(15.6
|
)
|
|
|
384
|
|
|
|
441
|
|
|
|
(13.0
|
)
|
Other Expenses
|
|
|
85
|
|
|
|
91
|
|
|
|
(6.3
|
)
|
|
|
152
|
|
|
|
187
|
|
|
|
(19.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
4,860
|
|
|
|
4,705
|
|
|
|
3.3
|
|
|
|
9,058
|
|
|
|
8,649
|
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result Breakdown
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Financial revenues
|
|
|
249
|
|
|
|
169
|
|
|
|
47.5
|
|
|
|
491
|
|
|
|
349
|
|
|
|
40.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from cash investments
|
|
|
18
|
|
|
|
61
|
|
|
|
(70.1
|
)
|
|
|
42
|
|
|
|
125
|
|
|
|
(66.7
|
)
|
Arrears penalty payments on electricity bills
|
|
|
92
|
|
|
|
65
|
|
|
|
41.9
|
|
|
|
168
|
|
|
|
138
|
|
|
|
21.8
|
|
Exchange rate
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
3
|
|
|
|
18
|
|
|
|
(85.4
|
)
|
Monetary updating
|
|
|
26
|
|
|
|
19
|
|
|
|
37.8
|
|
|
|
38
|
|
|
|
37
|
|
|
|
2.3
|
|
Monetary updating CVA
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
180
|
|
|
|
|
|
|
|
|
|
Taxes applied to Financial Revenue
|
|
|
(11
|
)
|
|
|
(11
|
)
|
|
|
|
|
|
|
(20
|
)
|
|
|
(22
|
)
|
|
|
|
|
Other
|
|
|
41
|
|
|
|
26
|
|
|
|
55.4
|
|
|
|
80
|
|
|
|
53
|
|
|
|
51.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
|
|
|
(946
|
)
|
|
|
(511
|
)
|
|
|
85.3
|
|
|
|
(1,346
|
)
|
|
|
(1,083
|
)
|
|
|
24.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of loans and financings
|
|
|
(316
|
)
|
|
|
(382
|
)
|
|
|
(17.4
|
)
|
|
|
(603
|
)
|
|
|
(828
|
)
|
|
|
(27.2
|
)
|
Exchange rate
|
|
|
(561
|
)
|
|
|
(19
|
)
|
|
|
2,918.8
|
|
|
|
(581
|
)
|
|
|
(19
|
)
|
|
|
3,023.0
|
|
Monetary updating loans and financings
|
|
|
(27
|
)
|
|
|
(26
|
)
|
|
|
4.2
|
|
|
|
(65
|
)
|
|
|
(69
|
)
|
|
|
(5.3
|
)
|
Monetary updating paid concessions
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
|
|
Charges and monetary updating on Post-employment obligations
|
|
|
(15
|
)
|
|
|
(17
|
)
|
|
|
(8.8
|
)
|
|
|
(33
|
)
|
|
|
(36
|
)
|
|
|
(7.9
|
)
|
Other
|
|
|
(26
|
)
|
|
|
(69
|
)
|
|
|
(62.5
|
)
|
|
|
(61
|
)
|
|
|
(133
|
)
|
|
|
(53.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial revenue (expenses)
|
|
|
(697
|
)
|
|
|
(342
|
)
|
|
|
104.0
|
|
|
|
(855
|
)
|
|
|
(734
|
)
|
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
5,533
|
|
|
|
5,205
|
|
|
|
6.3
|
|
|
|
10,469
|
|
|
|
10,018
|
|
|
|
4.5
|
|
Operating Expenses
|
|
|
4,860
|
|
|
|
4,705
|
|
|
|
3.3
|
|
|
|
9,058
|
|
|
|
8,649
|
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
674
|
|
|
|
500
|
|
|
|
34.8
|
|
|
|
1,411
|
|
|
|
1,369
|
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity gain in subsidiaries
|
|
|
(83
|
)
|
|
|
30
|
|
|
|
|
|
|
|
(26
|
)
|
|
|
60
|
|
|
|
|
|
Profit from discontinued operations - Telecom
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
|
198
|
|
|
|
209
|
|
|
|
5.3
|
|
|
|
411
|
|
|
|
411
|
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
810
|
|
|
|
740
|
|
|
|
9.5
|
|
|
|
1,817
|
|
|
|
1,840
|
|
|
|
(1.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result
|
|
|
(697
|
)
|
|
|
(342
|
)
|
|
|
(104.0
|
)
|
|
|
(855
|
)
|
|
|
(734
|
)
|
|
|
(16.4
|
)
|
Provision for Income Taxes, Social Cont & Deferred Income Tax
|
|
|
25
|
|
|
|
(51
|
)
|
|
|
|
|
|
|
(147
|
)
|
|
|
(214
|
)
|
|
|
31.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
(60
|
)
|
|
|
138
|
|
|
|
|
|
|
|
404
|
|
|
|
481
|
|
|
|
(15.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result Breakdown
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Financial revenues
|
|
|
249
|
|
|
|
169
|
|
|
|
47.5
|
|
|
|
491
|
|
|
|
349
|
|
|
|
40.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from cash investments
|
|
|
18
|
|
|
|
61
|
|
|
|
(70.1
|
)
|
|
|
42
|
|
|
|
125
|
|
|
|
(66.7
|
)
|
Arrears penalty payments on electricity bills
|
|
|
92
|
|
|
|
65
|
|
|
|
41.9
|
|
|
|
168
|
|
|
|
138
|
|
|
|
21.8
|
|
Exchange rate
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
3
|
|
|
|
18
|
|
|
|
(85.4
|
)
|
Monetary updating
|
|
|
26
|
|
|
|
19
|
|
|
|
37.8
|
|
|
|
38
|
|
|
|
37
|
|
|
|
2.3
|
|
Monetary updating - CVA
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
180
|
|
|
|
|
|
|
|
|
|
Taxes applied to Financial Revenue
|
|
|
(11
|
)
|
|
|
(11
|
)
|
|
|
|
|
|
|
(20
|
)
|
|
|
(22
|
)
|
|
|
|
|
Other
|
|
|
41
|
|
|
|
26
|
|
|
|
55.4
|
|
|
|
80
|
|
|
|
53
|
|
|
|
51.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
|
|
|
(946
|
)
|
|
|
(511
|
)
|
|
|
85.3
|
|
|
|
(1,346
|
)
|
|
|
(1,083
|
)
|
|
|
24.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of loans and financings
|
|
|
(316
|
)
|
|
|
(382
|
)
|
|
|
(17.4
|
)
|
|
|
(603
|
)
|
|
|
(828
|
)
|
|
|
(27.2
|
)
|
Exchange rate
|
|
|
(561
|
)
|
|
|
(19
|
)
|
|
|
2,918.8
|
|
|
|
(581
|
)
|
|
|
(19
|
)
|
|
|
3,023.0
|
|
Monetary updating loans and financings
|
|
|
(27
|
)
|
|
|
(26
|
)
|
|
|
4.2
|
|
|
|
(65
|
)
|
|
|
(69
|
)
|
|
|
(5.3
|
)
|
Monetary updating paid concessions
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
|
|
Charges and monetary updating on Post-employment obligations
|
|
|
(15
|
)
|
|
|
(17
|
)
|
|
|
(8.8
|
)
|
|
|
(33
|
)
|
|
|
(36
|
)
|
|
|
(7.9
|
)
|
Other
|
|
|
(26
|
)
|
|
|
(69
|
)
|
|
|
(62.5
|
)
|
|
|
(61
|
)
|
|
|
(133
|
)
|
|
|
(53.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial revenue (expenses)
|
|
|
(697
|
)
|
|
|
(342
|
)
|
|
|
104.0
|
|
|
|
(855
|
)
|
|
|
(734
|
)
|
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
|
1H2018
|
|
|
1H2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
5,533
|
|
|
|
5,205
|
|
|
|
6.3
|
|
|
|
10,469
|
|
|
|
10,018
|
|
|
|
4.5
|
|
Operating Expenses
|
|
|
4,860
|
|
|
|
4,705
|
|
|
|
3.3
|
|
|
|
9,058
|
|
|
|
8,649
|
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
|
|
674
|
|
|
|
500
|
|
|
|
34.8
|
|
|
|
1,411
|
|
|
|
1,369
|
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity gain in subsidiaries
|
|
|
(83
|
)
|
|
|
30
|
|
|
|
|
|
|
|
(26
|
)
|
|
|
60
|
|
|
|
|
|
Profit from discontinued operations Telecom
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
|
198
|
|
|
|
209
|
|
|
|
5.3
|
|
|
|
411
|
|
|
|
411
|
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
810
|
|
|
|
740
|
|
|
|
9.5
|
|
|
|
1,817
|
|
|
|
1,840
|
|
|
|
(1.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result
|
|
|
(697
|
)
|
|
|
(342
|
)
|
|
|
(104.0
|
)
|
|
|
(855
|
)
|
|
|
(734
|
)
|
|
|
(16.4
|
)
|
Provision for Income Taxes, Social Cont & Deferred Income Tax
|
|
|
25
|
|
|
|
(51
|
)
|
|
|
|
|
|
|
(147
|
)
|
|
|
(214
|
)
|
|
|
31.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
(60
|
)
|
|
|
138
|
|
|
|
|
|
|
|
404
|
|
|
|
481
|
|
|
|
(15.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Statement
|
|
2Q18
|
|
|
2Q17
|
|
|
Change%
|
|
Cash at beginning of period
|
|
|
1,030
|
|
|
|
995
|
|
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated by operations
|
|
|
(8
|
)
|
|
|
1,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit
|
|
|
383
|
|
|
|
481
|
|
|
|
(20.4
|
)
|
Current and deferred income tax and Social Contribution tax
|
|
|
147
|
|
|
|
214
|
|
|
|
(31.3
|
)
|
Depreciation and amortization
|
|
|
412
|
|
|
|
411
|
|
|
|
0.2
|
|
CVA and other financial components
|
|
|
(1,069
|
)
|
|
|
332
|
|
|
|
|
|
Equity gain (loss) in subsidiaries
|
|
|
26
|
|
|
|
(60
|
)
|
|
|
|
|
Provisions (reversals) for operational losses
|
|
|
267
|
|
|
|
370
|
|
|
|
(27.8
|
)
|
Dividends received from equity holdings
|
|
|
197
|
|
|
|
157
|
|
|
|
25.5
|
|
Interest paid on loans and financings
|
|
|
(672
|
)
|
|
|
(711
|
)
|
|
|
(5.5
|
)
|
Foreign exchange variations
|
|
|
554
|
|
|
|
1
|
|
|
|
55,300.0
|
|
Suppliers
|
|
|
(190
|
)
|
|
|
24
|
|
|
|
|
|
Others
|
|
|
(63
|
)
|
|
|
548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
(269
|
)
|
|
|
(1,066
|
)
|
|
|
74.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financings obtained and capital increase
|
|
|
396
|
|
|
|
60
|
|
|
|
560.0
|
|
Payments of loans and financings
|
|
|
(775
|
)
|
|
|
(855
|
)
|
|
|
(9.4
|
)
|
Interest on Equity, and dividends
|
|
|
|
|
|
|
(271
|
)
|
|
|
|
|
Capital Increase
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment activity
|
|
|
188
|
|
|
|
(750
|
)
|
|
|
(125.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Financial Investment
|
|
|
734
|
|
|
|
(125
|
)
|
|
|
|
|
Acquisition of ownership interest and future capital commitments
|
|
|
(150
|
)
|
|
|
(186
|
)
|
|
|
(19.4
|
)
|
Fixed and Intangible assets
|
|
|
(396
|
)
|
|
|
(439
|
)
|
|
|
(9.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of period
|
|
|
941
|
|
|
|
946
|
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash
|
|
|
1,293
|
|
|
|
2,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
96
|
|
|
|
|
|
|
|
|
BALANCE SHEETS (CONSOLIDATED) ASSETS
|
|
03/31/2018
|
|
|
12/31/2017
|
|
CURRENT
|
|
|
6,966
|
|
|
|
8,537
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
941
|
|
|
|
1,030
|
|
Securities
|
|
|
288
|
|
|
|
1,058
|
|
Consumers and traders
|
|
|
3,759
|
|
|
|
3,885
|
|
Financial assets of the concession
|
|
|
565
|
|
|
|
848
|
|
Tax offsetable
|
|
|
150
|
|
|
|
174
|
|
Income tax and Social Contribution tax recoverable
|
|
|
406
|
|
|
|
340
|
|
Dividends receivable
|
|
|
10
|
|
|
|
77
|
|
Linked funds
|
|
|
111
|
|
|
|
|
|
Inventories
|
|
|
34
|
|
|
|
38
|
|
Advances to suppliers
|
|
|
97
|
|
|
|
77
|
|
Other credits
|
|
|
605
|
|
|
|
904
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
|
|
|
34,714
|
|
|
|
33,703
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
64
|
|
|
|
30
|
|
Consumers and traders
|
|
|
77
|
|
|
|
255
|
|
Tax offsetable
|
|
|
231
|
|
|
|
231
|
|
Income tax and Social Contribution tax recoverable
|
|
|
11
|
|
|
|
21
|
|
Deferred income tax and Social Contribution tax
|
|
|
1,944
|
|
|
|
1,871
|
|
Escrow deposits in legal actions
|
|
|
2,380
|
|
|
|
2,336
|
|
Other credits
|
|
|
1,419
|
|
|
|
644
|
|
Financial assets of the concession
|
|
|
7,278
|
|
|
|
6,605
|
|
Investments
|
|
|
7,704
|
|
|
|
7,792
|
|
PP&E
|
|
|
2,421
|
|
|
|
2,762
|
|
Intangible assets
|
|
|
11,185
|
|
|
|
11,156
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
41,680
|
|
|
|
42,240
|
|
|
|
|
|
|
|
|
|
|
97
|
|
|
|
|
|
|
|
|
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS EQUITY
|
|
03/31/2018
|
|
|
12/31/2017
|
|
CURRENT
|
|
|
7,859
|
|
|
|
8,662
|
|
|
|
|
|
|
|
|
|
|
Suppliers
|
|
|
2,153
|
|
|
|
2,343
|
|
Regulatory charges
|
|
|
434
|
|
|
|
513
|
|
Profit shares
|
|
|
19
|
|
|
|
9
|
|
Taxes
|
|
|
287
|
|
|
|
705
|
|
Income tax and Social Contribution tax
|
|
|
67
|
|
|
|
115
|
|
Interest on Equity, and dividends, payable
|
|
|
428
|
|
|
|
428
|
|
Loans and financings
|
|
|
2,741
|
|
|
|
2,371
|
|
Payroll and related charges
|
|
|
223
|
|
|
|
207
|
|
Post-retirement liabilities
|
|
|
237
|
|
|
|
232
|
|
Other obligations
|
|
|
701
|
|
|
|
1,232
|
|
Provisions for losses on investments
|
|
|
569
|
|
|
|
507
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
|
|
|
19,142
|
|
|
|
19,248
|
|
|
|
|
|
|
|
|
|
|
Regulatory charges
|
|
|
278
|
|
|
|
250
|
|
Loans and financings
|
|
|
11,863
|
|
|
|
12,027
|
|
Taxes
|
|
|
28
|
|
|
|
28
|
|
Income tax and Social Contribution tax
|
|
|
718
|
|
|
|
735
|
|
Provisions
|
|
|
668
|
|
|
|
678
|
|
Post-retirement liabilities
|
|
|
4,005
|
|
|
|
3,954
|
|
Provisions for losses on investments
|
|
|
336
|
|
|
|
337
|
|
Other obligations
|
|
|
1,246
|
|
|
|
1,239
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS EQUITY
|
|
|
14,675
|
|
|
|
14,326
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
7,294
|
|
|
|
6,294
|
|
Capital reserves
|
|
|
2,250
|
|
|
|
1,925
|
|
Profit reserves
|
|
|
5,968
|
|
|
|
5,729
|
|
Adjustments to Stockholders equity
|
|
|
(837
|
)
|
|
|
(837
|
)
|
Advance against Future Capital Increase
|
|
|
|
|
|
|
1,215
|
|
|
|
|
|
|
|
|
|
|
NON-CONTROLLING STOCKHOLDERS EQUITY
|
|
|
4
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
41,680
|
|
|
|
42,240
|
|
|
|
|
|
|
|
|
|
|
98