Key Highlights

  • Cemig (NYSE:CIG), the power Utility of the Brazilian state of Minas Gerais, traded at USD 1.92 intraday on November 13, 2026, up 4.08%, with a Market Value of about USD 5.48 billion and a price to Earnings ratio of about 6.64 on the screen.
  • Third quarter net profit rose 115.5% to BRL 1.72 billion from BRL 797 million, boosted by the release of legal provisions worth BRL 774.6 million after tax.
  • Adjusted profit, which strips out one-off items, rose 18.0% to BRL 922.8 million, but was 17.3% lower than in the second quarter.
  • Net Revenue rose 5.1% to BRL 11.16 billion, while net Debt increased 17.2% to BRL 19.7 billion, or 2.43 times adjusted EBITDA.

A Headline Profit Lifted by a One-Off Gain

Cemig released third quarter results on November 12, 2026, and the shares rose 4.08% to USD 1.92 the next day. Net profit more than doubled, up 115.5% to BRL 1.72 billion from BRL 797 million a year earlier. Much of that increase came from a single item: the company released provisions it had set aside for a long-running dispute over social security contributions on employee profit-sharing payments between 1999 and 2016. The release added BRL 1.07 billion before tax and BRL 774.6 million to net profit. Stripping out such items, adjusted profit was BRL 922.8 million, up 18.0% from a year earlier but 17.3% lower than the BRL 1.12 billion reported in the second quarter. The adjusted figures are a better guide to the underlying trend, and they show solid annual growth but some loss of momentum from the previous quarter. Volume of about 1.06 million shares was well below the three-month average of about 5.22 million, which points to a measured response.

Operating Performance and Debt

Operating results were firm. Net revenue rose 5.1% to BRL 11.16 billion. EBITDA jumped 74.0% to BRL 2.69 billion, partly because of the provision release, while adjusted EBITDA rose 31.1% to BRL 1.99 billion. Cemig, based in Belo Horizonte, runs electricity distribution for most of Minas Gerais, along with generation, transmission, Natural Gas distribution and energy trading. It is investing heavily in its distribution network, and that spending is reflected in its debt. Net debt rose 17.2% to BRL 19.7 billion, equal to 2.43 times adjusted EBITDA, a manageable level for a regulated utility. The company raised BRL 3 billion through bonds in September and held about BRL 5.4 billion of cash at the end of the quarter. It also declared BRL 200 million of interest on equity, a form of Shareholder distribution common in Brazil, in September. Higher Investment should support the regulated asset base on which future tariffs are set.

Why the Shares Trade as a Penny Stock

Cemig (NYSE:CIG) is one of Brazil's largest integrated power groups, and its US-listed shares trade below USD 5 because of how they are structured and priced in reais, not because the company is small. Its low earnings multiple reflects Brazilian political and regulatory risk, the influence of the state government on strategy and dividends, and currency swings, which affect returns for US investors. Brazil's high interest rates also raise the company's borrowing costs, which matters as debt rises to fund network investment. On the positive side, dividends and interest on Equity have historically been generous, and a regulated distribution Business provides fairly predictable cash flow. The shares sit near the lower end of their 52-week range of USD 1.77 to USD 2.76, which suggests investors remain cautious despite the stronger quarter. Investors should watch adjusted profit, debt levels, Tariff reviews and Dividend announcements over the coming quarters.

Where Things Stand

Cemig rose 4.08% to USD 1.92 on November 13, 2026 after third quarter profit more than doubled, helped by a one-off legal provision release. Adjusted profit grew 18.0% but slowed from the second quarter, and net debt rose. Watch dividend declarations, investment spending and regulatory changes in Minas Gerais.