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Brazil's Cemig misses profit estimates, posts quarterly loss
November 15, 2017 / 1:51 PM / a month ago

Brazil's Cemig misses profit estimates, posts quarterly loss

SAO PAULO, Nov 15 (Reuters) - Brazil’s Cia Energética de Minas Gerais SA missed result estimates to unexpectedly report a quarterly loss amid investment loss provisions and a program to pay overdue taxes, the state-run electricity company said on Wednesday.

In a securities filing, Cemig, as the company is known, posted a quarterly net loss of 83.7 million reais ($25.3 million), compared with a 434-million-real profit in the same period last year, and well off a Thomson Reuters consensus estimate of analysts for a 210-million-real profit.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 92 percent from the same period a year earlier to 100.6 million reais, also below a Reuters estimate of 657 million reais.

In the filing, the company said a government program to pay 588 million reais in back taxes as well as a provisions for investment losses of 122 million reais weighed on results.

Total costs expanded 31 percent in the period, with some of the highest increases in operational expenses coming from buying and reselling electricity and gas.

Cemig is in the midst of selling about 8 billion reais in assets to pay down debt. On Monday, it said it had received non-binding proposals for its stake in Rio de Janeiro power utility Light SA.

$1 = 3.31 reais Reporting by Gram Slattery; Editing by Bernadette Baum

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