Brazil’s industrial demand for electricity has yet to pick up after the country witnessed a steep decline in economic activity during the first half of 2009 due to the global financial crisis. During 2009, electricity demand from the industrial sector in Brazil declined 8% y-o-y. Although positive growth in electricity consumption from residential and commercial sector partially offset the negative impact from the Industrial…

Companhia Energetica de Minas Gerias' (CEMIG) reported steady revenue growth in 3Q 09, driven by higher revenues from electricity sold to final consumers. EBITDA declined mainly due to higher cost of purchased energy. Adjusted net income, however, increased due to lower financial charges. We believe the hike in electricity tariff rates announced in April 2009 will continue to support revenue growth going forward....

Companhia Energetica de Minas Gerias (CEMIG) 2Q 09 top-line exceeded our expectations. Earnings were below our estimates as provisions for voluntary job dismissal programs resulted in the escalation of personal and admin costs during the quarter. However, adjusted net income, increased significantly y-o-y due to lower financial charges and taxes. Moreover, the company expects its ongoing job cut program to result in considerable annual…