3. Companhia Energetica de Minas Gerais (CEMIG) ( CIG) operates principally in electricity generation, transmission and distribution. Operating through its subsidiaries Gasmig and Infovias, the company distributes natural gas and is a telecommunications service provider.
CEMIG's power plants have total installed capacity of around 7,000MW â¿" making it one of Brazil's largest electricity generators. In distribution, CEMIG operates the largest electricity distribution network in the region, spanning across 300,000 miles. During 2010 third quarter, sales were 16,478 gigawatt hours, up 8% in the year-ago period. Net revenue and EBITDA for the third quarter were up 6% and 11%, respectively, beating the third quarter of 2009. Inclusion of new assets and improvement of operational efficiency improved EBITDA margins. Net income rose 90%, compared to the second quarter of 2010. The stock has gained around 22% in the last one year and is currently trading at 10.9 times its estimated 2011 earnings.