Business Context and Reporting Period
This Form 6-K filing by Energy Company of Minas Gerais (CEMIG) covers material events and notices occurring between March 2025 and July 2025. CEMIG is a Brazilian publicly-held utility company with shares traded on B3 (São Paulo), NYSE (New York), and formerly Latibex (Madrid). The filing aggregates various corporate actions, including shareholder meetings, payout declarations, executive changes, and significant legal developments regarding asset sales and pension liabilities.
Key Financial Metrics and Liquidity
The filing does not provide consolidated revenue, profit, or cash flow statements for the period. However, it discloses specific cash outflows and liability adjustments:
- Shareholder Payouts (FY 2024): A total of R$1,866,716,000 was declared for the first installment of FY 2024 payouts, comprising Interest on Equity (IoE) and dividends. Payment was scheduled for June 30, 2025.
- Interest on Equity (2025): Two separate IoE declarations were made for 2025: R$541,006,000 (declared March 2025) and R$596,758,000 (declared June 2025). These are payable in two installments in 2026.
- Legal Liability (Pension Plan): A court initially ordered a judicial deposit of R$912,234,821.90 (50% of the adjusted technical deficit of Plan A of the Supplementary Pension Plan). This order was subsequently suspended.
- Asset Sale: The sale of four small-scale power plants (Machado Mineiro, Sinceridade, Martins, and Marmelos) was finalized for R$52 million.
Material Changes and Legal Developments
Significant legal and operational changes occurred during the reporting period:
- Asset Auction Injunction: On May 20, 2025, a court granted an injunction suspending the auction of four small-scale power plants. CEMIG intends to appeal this decision. The plants were sold to Âmbar Hidroenergia Ltda. for R$52 million in December 2024.
- Pension Plan Litigation: On May 20, 2025, an injunction ordered CEMIG to deposit R$912.2 million regarding a pension plan deficit. However, on May 28, 2025, the Court of Justice of Minas Gerais suspended this injunction pending a final ruling, meaning the deposit is not currently required and has no immediate impact on cash position.
- Delisting from Latibex: CEMIG completed the delisting of its preferred shares from the Latin American Securities Market (Latibex) in Madrid, effective July 10, 2025, as part of a simplification strategy. Shares remain listed on B3 and NYSE.
- Executive Changes: On May 8, 2025, Mr. Luis Cláudio Correa Villani was appointed Vice President of Information Technology.
Guidance, Outlook, and Risks
The filing contains forward-looking statements subject to risks and uncertainties, with no specific financial guidance provided for future periods. Key risks and management commentary include:
- Legal Risks: Ongoing litigation regarding the auction of four power plants and the Supplementary Pension Plan deficit. While the pension deposit was suspended, the final outcome remains uncertain.
- Strategic Focus: Management emphasizes a strategy of simplification (evidenced by the Latibex delisting) and optimizing the generation portfolio to improve capital allocation.
- ESG Performance: CEMIG was recognized as one of the ten most sustainable companies on B3 in 2025, improving its ranking from 35th in 2024 within the ISE B3 index.
Investor Verification Checklist
- Verify the final status of the injunction regarding the auction of the four small-scale power plants and the potential impact on the R$52 million sale proceeds.
- Monitor the final ruling on the Supplementary Pension Plan (Plan A) lawsuit to determine if the R$912.2 million liability will be reinstated.
- Confirm the timeline and execution of the 2025 Interest on Equity payments scheduled for 2026.
- Review the impact of the Latibex delisting on international investor accessibility and liquidity.
- Assess the implications of the new Executive Board composition on IT strategy and operational efficiency.