Cemig kicks off 2016 with strong investment in hydropower

Cemig financial results

Companhia Energetica de Minas Gerais (Cemig) of Brazil recently released its first quarter earnings and revealed it has already spent almost half of its forecast investment total for 2016, spending BRL2.15 billion (US$610 million) from January to March, according to BNamericas.

Of this, BRL1.93 billion (US$540 million) went to the generation segment, including BRL1.44 billion (US$123 million) toward 18 existing hydropower plants secured at a concession auction in November 2015. These plants are: 6.9-MW Ervallia, 5-MW Coronel Domiciano, 46-MW Camargos, 52-MW Itutinga, 1.4-MW Sinceridade, 6.5-MW Neblina, 7.2-MW Cajaru, 14-MW Gafanhoto, 4-MW Marmelos, 8.4-MW Joasal, 4-MW Paciencia, 18-MW Piau, 9.4-MW Peti, 2.4-MW Dona Rita, 8.5-MW Tronqueiras, 7.7-MW Marins, 396-MW Salto Grande and 396-MW Tres Marias.

A further BRL7 million (US$2 million) was invested in transmission and BRL215 million (US$60 million) in distribution.

The company announced it has spent about 46% of its expected 2016 total of BRL4.67 billion (US$1.3 billion).

Cemig reported a first-quarter profit of BRL5 million (US$1.4 million), down from BRL1.49 billion (US$417 million) a year earlier. Net revenue fell 25% over the period, to BRL4.45 billion (US$1.2 billion). The company said the result was affected by falling spot-market prices and lower gas sales to industries and thermoelectric plants.

More Latin America news is available here.

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