Cemig Q4 Trading Unit Gains 97 Million; Leverage to Hit 3.5% by 2028
The trading unit posted a Q4 gain of 97 million while unwinding of positions is slated to finish by 2029 with management forecasting rising energy sale prices. Financial leverage will climb from 2.3% towards a 3.5% cap by 2028 with debt at 13% (87% of CDI), yielding cost below WACC.
1. Q4 Trading Results
The trading segment delivered a positive result of 97 million in Q4, reflecting cautious management of positions with 2026 closures underway and targets to finalize all positions by 2029 in anticipation of rising energy prices. A 1.4% drop in market volume was linked to client migration to base networks.
2. Financial Leverage and Debt Costs
Leverage stands at 2.3% against a 3.5% contractual ceiling and is expected to climb through the 2028 investment cycle. Debt carries an average interest rate of 13% (87% of CDI), ensuring financing costs remain below the weighted average cost of capital.
3. Operational Expenses and Service Efficiency
Operational expenses increased from higher headcount and outsourced services, aimed at bolstering preventive maintenance and rural service delivery. Management views these investments as key to enhancing service quality despite near-term cost pressures.