CEMIG Q2 2025 Results: Strategic Concession Extensions, Adjusted Profit Growth, and Debt Management

Energy Company of Minas Gerais (CEMIG) filed its Q2 2025 results, reporting a net profit of R$1.19 billion (-29.6% YoY) driven by higher energy costs and regulatory adjustments. Adjusted net profit rose 16.6% to R$1.32 billion, reflecting tariff adjustments and cost controls. Key developments include winning a CCEE auction to extend concessions for three hydro plants (R$200M investment), receiving a shareholder letter authorizing BNDES-led debt amortization under the Propag program, and concluding the transfer of four power plants. Operational highlights include a 7.78% average tariff increase, reduced energy losses (11.43% vs. 11.48% target), and R$2.75B in H1 investments (12.6% YoY growth). Debt rose 23.7% to R$12.23B, with new debentures issued to fund infrastructure. The filing also notes ESG initiatives, including digitalizing 80% of customer interactions and fire prevention programs. Risks include exposure to spot market price volatility and regulatory changes impacting financial assets.