SAO PAULO, Nov 13 (Reuters) - Cia Energetica de Minas Gerais , Brazil’s second-largest utility, said on Thursday that third-quarter profit fell sharply to 29 million reais ($11 million) from 788 million reais a year earlier.
Cemig, as the company is known, has long been considered one of Brazil’s most profitable power utilities but the company’s foreign debt in local-currency terms has ballooned in the last year as Brazil’s currency weakened against the dollar.
On Nov. 7, Cemig said it had broken financial covenants outlined in its bylaws and scheduled a shareholder meeting for Dec. 12.
Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of a company’s ability to generate cash from operations, fell 60 percent in the third quarter to 513 million reais from 1.29 billion a year earlier.
Cemig is controlled by the government of Brazil’s Minas Gerais state.
$1 = 2.59 Brazilian reais Reporting by Alberto Alerigi Jr and Caroline Stauffer; Editing by David Gregorio