Q3 2019 Earnings Call
<unk> results Conference call My name is Justin and I'll be operator for today.
This conference call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Forward looking statements reflect <unk> current expectations are not guarantees of future performance and involve risks and uncertainties.
Actual results may differ materially from those anticipated in the forward looking statements as a result various factors. These studies are described in the now to me press release.
<unk> nine in 2009 results the presentation accompanying this conference call and they'll Chili's and report on form 20-F.
Including under risk factors you.
You may access alright, and nine in 2019 results press release.
And patient on our website.
W. W Dot and now Dot C.L.
20-F on the Fccs website, www Dot FCC dotcom.
Readers are cautioned not to place undue reliance on these forward looking statements, which makes which speak only as of their dates and now Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate.
As required by law.
I would now like to turn the presentation over to your host Ms. Isabella Clematis head of Investor Relations of and now Chile. Please proceed.
Good morning, ladies and gentlemen, and welcome to the now Keeley nine months to sell the 19 results presentation I am going I mean wrapped up investor relations.
They shouldn't be well by well a lot he our CEO engines that catalyst, yes, so well we walk. So then they like and solution or strategy and our accretion performance and just that we were that they are for nature reserves up there did you call. Once you when each section that'd be open can go.
Connection our IR team, we've continued to be available to provide you with I hate to say information you may need with respect to the figures included in this presentation.
Thank you must have been good morning, ladies and gentlemen, [noise].
Before starting.
I would like to shark towards the regarding the last few weeks events.
The purpose, we succeeded in executing our contingency plan in order to continue delivering a secure betterment instead of just right to our customer keeping our block hour plants up and running and maintaining the safety Oh, all our workers, which is our first priority.
I would like to I like that our immigration to the cloud part, though our thoughts are so much a blend in recent years well contributed to guarantee that all your ability and security or what will flourish.
Let's start with high lots sold the period.
I would this combination plan he's on truck.
By the end of December 19, 2019.
Local power plant, we stopped writing and we then start or do you use related to the decommissioning these core facility.
Well you see page, we have begun the construction or the largest power plant in Cheetah solar power plants in cheated capital goods sold eight three on the 82 megawatt solar power plant.
And the expansion allowance, you'll sell my plan set of probably.
I guess most acute.
Confuse targeting long term foster she worked like.
Seeking the stability of our cash flow.
In the sense.
We are like that in this quarter, we have been awarded that's what he said that we're putting a culture with BHP people.
15 years.
Starting in August 20.21.
The energy to be supply should be one other centers like Neil.
No energy P series, He's a trained in our markets and that we link from our clients.
Recently, we have announced that we secure to 100% renewable PPD, we to America and go you're watching.
The truth summing up.
To fourth Terawatt hour Threea, starting in the theater 2020 quickly to into one for then you have speech.
We also continue to cool we did you from feature in Chile.
Luxembourger and that she lives up to see that economics.
The other we've been Boston Vwap integrated the fourth for electric bus fruit.
Comprehensive sustainable transport system.
We feature 100% electric buses, let's start with Oh, 285 zero emission Fabio Passbook young.
Well you don't.
EBITDA increased 40% the during the nine month period.
With the margin improvement from 52% to 59%.
Our adjusted net income excluding dimensions, one time frame.
Grew by 50% of September 2090.
Oh, no what I said, you track record and achieve together, we've got another metric that's where the on it you de energy with these included in the three different categories. It's Alan Johnson.
In addition.
And before she won't be joining and she'd and engine and I see on Emmy Award and I feel free to seven or one these important achievement of the I used to be 701 needs.
The mission on sound <unk>, that's the recognizes Dixie Central district, the Funky bribery management system.
[noise] normally from this couple of inflation for life.
Apart with this process the closure of Telefonica like your hand.
On early 2020 , we started a few required to proceed going into the commissioning process for our core functions.
So look we think our local employees and implemented agencies, we'd be board to guarantee the sustainability of this process.
Before moving on I would like to recall that they bring him at the book of less fortunate that Sheila and heaps of Sidoti and that your assumption either will not impact our north dividend distribution.
When our commercial stuff because.
After the two calling talk through some to sign in school, you're watching things on Medicare we have been awarded by BHP, even a comprehensive process to supply energy for two or read my question pinch.
This process, which is bright treat that I left our because he had a noble energy for 15 year starting from over Slinky 21.
Weve gone from increased our.
The market's states by seven but seven instead of a seller putting yakking between 27 to one window.
No flight crew.
He just warfare, we're consolidating our either she on Electromobility.
By integrating the first let's we proved to be lot them I'd be one under 83 new buses.
Electric buses building three additional.
Look for 10 minutes and developing 40, you saw the buses still.
Offering the range or new services led lighting bicycle Barking information fondness and you must be charging points <unk> cool, it's beautiful defabio for fish appliance.
And just be Oh.
Oh sparked a lot of blend to promote the development that's what's your plan.
We will you still 1002 on the chart you points through the Countrys main highway Interstate over the next five years.
On the spot we're promoting the use older clinically buses in the mining companies into accounts not only as a bussinger transportation, but also has an energy resources that we enable the mind's eye for displaced visa like Green energy using data available energy or give us is facilities.
Additionally, and thanks to the collaboration we are the public and private spots nurse.
We continue our effort to promote the use of defeasance eating noted to replace the use of awards contributing to the reduction of kinda bleomycin inch either.
Almost 5000 devices has been already stolen Ustwenty seven pm.
And we see makes it to avoid 50000 tons sold so your booz if you want to secure.
No that's more of like four which four cents to break it down all of our Capex allocation household since then but plenty 19 reached $296 million.
Customer topics of these freed up to.
$55 million doing 7% higher than September Twinkie 18. The main investments are located in the construction of five new substation.
That's a management capex reached $83 million.
$6 million increase main your.
He is on our network I.
So she is that do not been proven its investment corrective maintenance and test in 16 environment.
Okay set by the one time effect regarding the no scheduled maintenance in South Africa I worked with 28.
On growth.
Our dependence development Capex reached 100 went on to the 78.
<unk> million dollars.
Clearly allocated to New York renewal, which are recorded an amount of went out there.
$56 million.
[noise], let's move to slide five.
The next production increased 11% amounting to six being set up tower.
Bye bye.
<unk> Tonight that Alex hour, Oh, Hi go to renewable generation, mainly coming from <unk>.
0.5 thought about dollar.
With that much another issue due to the tiger by the ability of gas from Argentina.
Mainly in time see the power plants.
Hi, good about ability with telefonica.
We should have started with induction hope and did you put cheese improving our margins.
He pick or energy say towards the lines left yeah, we'd affordably afraid.
The last 2.5, <unk> dollar Oh I got to construct the say, we the fleet customers following different clients migration to get remark and at the beginning of new calling for other marketplaces.
Going to talk about our own hydro sale this will knock it off.
Oh, six plus minus 2.6.
So what dollar or lower consumption.
We shouldn't company, maybe associated to the didn't collection, Oh gosh domestically FEMA.
What do you know the energy balance or when it cheetah was forced to bring in managing through our locations due to the lower generation course.
And did you portrays goals.
As a consequence, all our Blaine planes I get availability enforcing the themes of it got a sea change and cost of Phoenix fish when once comparing to last yes.
[noise] slide number six.
Our customer base increased by 59000 clients. During these visits reaching one point 96 million flying with total energy just didn't fit well with 12.9 thought about though.
Oh, I'm going to see it's Oh degree.
We had been full who seem to creep you called out S for Saudi Arabia, sorry.
Replacing approximately 41 kilometer overcame what's in our low things from greed and executing more than 28 deal with it so group expansion and reinforced.
Despite the fact that no one of our 33 Gloster out a bullet that had agreements for COVID-19.
Our interruption index say in the last 12 month shows an increase of 40 person with respect to last year.
Mainly due to change made about a 60.
Let me see.
Supervisor, including she either you say before submitted measurement methodology.
And the climb up events.
So we've got during the end of May and June .
Aiming to improve the quality of service, we are focusing in distillation telecom told to keep.
Reaching 1009 onto them to you when he goes and implementation of different technologies.
We're monitoring galleries.
Our goal East Bluestone up to 940 units within the next three years.
As possible at fourth to enhancing efficiency energy losses decreased from four or 5.1%.
4.9 per se.
You know if the foremost along network continues to be a benchmark for the South American Canada.
[noise], let's look at that brought us usefulness Jeez on chart the number.
I tend to Chile.
We have integrated the sustainable development goals in our business Doug.
As a result of this transition.
We are complying with SPG, nine and 11 to beat the sustainable industry infrastructure and fees by increasing the buses. Please.
By selling three on the than twice the that to bake lets charges.
Oh salaries, it's worth mentioning that one of the person or web applications are covert cyber security solution garden team data privacy and that alliance, Oh, Hi, Ugly digitized operations.
We also have focus how well you can see.
Look I can you.
We've been sustainable development goals for.
And then recognizing this you made used to between social pool. This incorporates success.
Looking at the business strategy related with climate change.
Our generation monthly he's evolving through fourth our Jordan from zero emission generation mix.
We did here we have reached 61%.
Oh, you show preproduction.
I would inclusion into three categories ultrasound Justice and maybe this isn't the second consecutive year. He said recognition of our commitment toward developing a sustainable because more.
Leaving the energy funds.
He promoting or once people business practices.
I'll now hand over to sit there we go through the de Thats a lot of financial somebody for defeated.
That's good.
Thank you Paolo good morning, everyone, Let me put us into the financial highlights of that these nine month so 2019.
Summed up on line nine.
Revenue increase it seems that thing so on a plan that 66 million dollar.
Primarily due to the higher yet and as you see.
Hi, Yes, he is related to the gap commercialization index that are there any income to the early termination of anklam any can you <unk> signed in 2016.
How would it be dot well up by three other than the 56 million dollar or 40 to 43 person be rental celesio resolved.
By the better performance in both generation in distribution businesses.
And the PPI onetime effects, <unk> and Canada feeling.
Therefore, our EBITDA mounting grew by six founder H E B.
Good evening being gummy redesign, we nine month, beating figure.
The one time aspects related to the Decarbonization agreement signed in June 2019, there isn't being poorly comping <unk> by the pull the deep operating performance in the first nine month of the huh.
Oh come from the simplification of our corporate structure in Canada, and NFL and up the yearly termination of I mean, it can be.
Finally, our net debt as of September 2019 compare to the January 1st repositioning team increased.
$73 million huh.
I will give more everything in the following slide.
No I don't like saying, let me show you the drivers.
Behind our EBITDA growth.
In the third quarter, how would I be die increased by 18% or 61 million dollar.
As there is also.
First I hadn't modifying our generation portfolio, mainly associated lower fuel and cold stone as a consequence of the agreement we didn't even got supply Yemen.
Lowered their mission unquote price.
Ladies and as you Pos is difficult.
Second.
Then he called me front over the leasing agreements over and alike associated to they went on to the 83 additional electric buses you know if any.
Partially offset by higher yet holding costs, mainly due to the collective employees negotiation has easier.
The next slide I will give you more color on they'd be dilution for the nine month 2018, 19, Ventas then monk fruit I've anything [laughter] business line that explains the increase in our Kuwait they'd be down of 43%.
[noise]. He was right 11, a deeper dive on the find ourselves for myself I was doing some business.
I want to finish on it'd be done mine dinner, which includes the past one month of administration and Anna being power.
Excluding the P.P. are you at least the me improved from quote the best thing to 46, but thing.
These operating improvement the war because they went up by more efficient generation mix huh.
Let the how about immediate they'll buy what power plants.
To get that we then optimization out of a fair amount day from Costco.
Due to the agreement with the Argentinean got supply yet low what information on core price.
On our efficient James for me.
Let me remind you that our net production grew.
By 11%.
Totaling 16 said about dialogue, mainly due to the high gear JV some from renewable energy basically wind and solar.
How long read the how Ya Paramount Sheena relative to a base that I've been a BDC over about a plane though.
It's specialty.
Let me be throw into Africa.
Moreover, our hydro generation represented as likely improvements over 168 gigawatt Darla.
Mainly related to higher.
Chubb and thought about what plane.
And then in south of I read that increased 52, but things that reaching ninem that easy see medium though.
Nine month, 2018, and our I'd be dumb out a few increased six sound that 50 basis point, but since 2018.
Please let's move onto slide 20.
To explain the most relevant though breathing.
Oh, my wife distribution business.
As of September 2019 [noise].
Maybe Don.
Well then in distribution and then I grew by same thing or 20 million dollar mainly due to better passport amounts on the distribution business.
As a reduction of energy losses.
Hi, yes, and introducing new did.
In addition, Oh what are they the three new electric buses to the public that's an efficient system through analytics.
Along with met boosting B Y <unk> that contributed to weed that'd be Chanel, having you know dollar.
Now on slide 13 no.
Let's take the deep and look at the main driver of I missed ordinary income.
Depreciation and amortization, excluding the impairment that effect, though who reached 262 million dollar.
An increase of 33 million dollar, meaning you really.
To the incorporation of EGP say.
Financial ever at South and other amounted to an expense of 157 immune.
An increase of 49 million dollar mainly due to higher financial expenses related to take you put all the theme and she either.
She didn't I'm phases devaluation and incorporation of and again call that she that Dave.
Yeah, I would like to recall they have seen June 2019, there and then she the refining alone and then getting power would and then.
Financings that mission on reducing that spread the from lie bought a flat 4.9 before saying that we the six month payment.
Well I bought up to a spread over LIBOR, plus 1.4 people, saying, we'd that you really paying you mean.
You.
I will enable us to reduce energy that financial expenses by 25 million dollar pity.
Additionally.
In September we penetrate in a new amendment fixing the instead of Threed.
I want this to eliminate the reef global interest rates look station and extending the duration of the intercompany loan.
Income taxes decreased by 19 million dollar.
Maybe as the results of lower tax expenses.
Relating to the coal power plants in fadiman booked in the second quarter.
And Posey beam Buck so on the management of the does do though that come out of being you know weve got that back I'm a season.
Partially compensated by higher taxes due to PPH early termination book during the first two 2019.
My I know what do you see net income decreased by 60 seats, but fan.
Mainly as a goal thing when some of our high yes peak of any T., let you and then and then assume treatment.
Since April 2000 anything.
As a consequence of all dibble ought to be in any 2018 I commented net income is in line with differing views here.
Now moving to the cash flow on slide 14 no.
If they fail [noise].
In two anything teen amounted to five I'm done.
The 9 million dollar, which can team to be sufficient profound.
But on the percent of our carbon copy.
This is resulting in a positive free cash flow.
The net free cash flow result is feeling bucketed by the seasonal effects.
Related to the 2018 dividend payment.
As we have anticipated you know like coal.
School, which we were paid to our children in January in May 2019, we'd see the first thing the out.
Let me now go through a one day on slide 15.
I will go back decreased by $120 million that since September 2018, amounting to three Poland 65 billion dollar.
Primarily due to their most division of the debt raised to fine and then people Odessa and anything else sung ji their local bone amortization.
Filling that up by new in the company that could we be.
Used to refinance it today.
In new financial debt due to the application all the idea right 16 among other.
Oh, they felt I get off day, so 59 sustain cordless phone to bone and putting them, but thing Cody fund loan.
As of September 2018, our net debt to EBITDA ratio reached 2.1 fine vessels at 2.7 times that that they'd be diary show is offset by mid 2018.
The average call so while they reached 5.4% in September 2018 as that is down.
Have a long time refinancing of 83 mean, Dave.
The activity then I like that is 6.7 yeah.
Oh I missed it at the end of September 2019, compared to January 1st 2019 adopted by our yesterday 16 clothing.
Increased $73 million, mainly due to the seasonally seasonality effect that I explain my days light.
As I mentioned in slide 13.
Concern that the 60.
Expand their $44 million. If you don't know we signed an amendment changing the interest rate from Bible.
Two.
Two point 82 feet Petsense <unk>.
These modification eliminates the risk of volatility new financial expenses.
We'll see it seems we the hoping it's an increase of the inter threes in dispute.
Moreover.
The payment schedule of these days so it's been changed now stop in June 2024, which increased the anybody seven of these that's the from <unk> 0.4 to 6.1 yeah.
Finally on our debt amortization, Riyadh and I'm like okay, but each oh wow than 45 million dollar meant to raising endemic 40.
Now I will endeavor to power for a brief overview of the energy sorry, let me do they shouldn't make any.
Thank you just said.
Let me give you some color on the energy Saudis stabilization methods.
Yeah garments, some meat to the bill proposal to the say enough in Congress houses to a who knew known as the energy prices. In addition, mickens.
Aiming to defer the increase in the topic to the final regulated customers.
This bill or signed by the Chilean President Mr., Yeah, and entering into force on Saturday second of November we get publication on the official Gazette.
Under the Hood low.
Correct.
Consumer salaries will be frozen at first.
And that we begin to be adjusted for inflation from January 1st 2021 on boards.
And the adjustment for disease aimed at PPD genital P.H., we create an accounts receivable in favor of the generation companies.
Asking from 20.1 onwards.
The newly worth it real work to be A's moved coming to very ship, therefore officially allowing for city brought us to set for the generic us accounts receivable.
Shown in the graphics.
Both of Jewish accounts receivable Sharkey foppish twice a year based on information that the National Energy Commission, we provide.
Bill also establishes that all the accounts receivable shall be record by generators by 51st December 20 to 27 at late.
Moreover, the total amount or <unk>.
1003, a 350 million U.S. dollar as being fixed as a maximum exposure for the system.
Between the publication or the low end to lightweight bits and pieces.
Interest overseas.
Be applied on any eventual standing by that's vessel.
2025 or worse.
We are currently assessing the finish them out or some commodity prices inflation and foreign exchange ratio to evaluate all that cannot be used to mitigate the gushing do slow in force.
[noise] before starting the today I would like to highlight some state two weeks.
Yeah.
Well the sustainability of our growth we continue to focus on improving our managers, taking advantage of larger new book portfolio and.
Our investment in does Cts, a lower grades and efficiency oil operations.
With our strategy or Bobby was a new build capacity, we are able to provide to our clients. One other person three noble TPH.
Coping with sustainability requirements, bringing us more predictability on our long term cash flows.
Or our SBQ commitments are on track.
The first Latam analytics group in coastal efficiencies them or Santiago and the closure of our core plan.
Just two quick examples on how our strategy is aligned with this digital.
Yeah, I as though.
Seven or one assisted education and our inclusion into three categories of the Dow Jones sustainability index for the second consecutive year also the commission Oh, our commitment toward developing a sustainable business model.
Leading to the energy for institution in promoting sustainable business practices.
To conclude I would love to enforce that margie sustainable growth and cash flow stability, we've continued to be one or our priorities and therefore, we keep working on older than it used to mitigate potentially.
Thank you for extension and let's now open the QNX issue.
Thank you, that's where a mine.
Thank you follow I know classic also don't breeder flock to call section of the reader study.
Thank you as a reminder to ask a question you need to press star one on your telephone to withdraw your question match. The Bankey. Please standby we've compiled the Q and a roster and again that is star one on your Touchtone telephone.
And my first question is going to come from and we go Bartoli from Mainfirst. Your line is now open.
Hi, good afternoon and system for taking my questions I'm comfortable I have a question regarding the stability tiny mechanism that a U.S. being the.
Now I mean, one doing if you're going to have a any thoughts at a 10 11 for that or are there will be only a caching.
Any gains.
You can quantify a the impact on you de Dios back before around 19, 2000, and Clinton and becoming yes.
And if you have a any discussions a in a in ongoing with the government doesn't need any other possible measure for their mitigation all the industry Siddhanti.
Second question. These are the need to the.
Expansion all of you already know more capacity if you can update us on a D.
I am also capacity that just back to be sold by the end of the ER and the in 2020 and 21.
Then I have a against any gardening slide five you highlighted a different mix in your face a with a modest suppose you into the but eyes of customers. If you can give us antibody to beat on adding five that the this has on your margin and finally few come from.
There are $1.7 billion it'd be a target that you have for the full year 2019. Thank you.
Okay. Thank you very cool afforded the question, let's stop for the first as a gun to.
Stability sees them.
Nick and he's Oh, what we can say that he's a mechanism to shoot followed the accounting treatment, although the current and and that's a framework that these already place so for the Jamie and humane measured that we're still working on disaster Boes a day publication.
It's been recently, we do not affect any.
Significant impact from the economic economical for each of you.
And the regarding that E expansion on the new a boat.
We have announced in our last plan a growth between 19 and 21 over one quick one gigawatt.
All the deal with Goodbye.
On this.
Developments that we are to.
Developing a red building.
The Oh, we love the largest.
Solar plant that discount with its own that he is under construction and we expect to debt we've come a line into secondary 2020 .
We are.
Let's say working on you said the units over several probably setup I go on and the same that we already started to the toward said, we expect that even coming online second best integrated and sometimes we are developing additional project.
Oh, the solar plants that should come in.
The work, we should start or different strains in order to have a the facility online and 20.21 should easy that the evolution to match.
The deadline that we have the on the.
On our business plan.
As I mean, we mentioned also another call. It we have a very strong pipeline. So we are evaluating additional projects that may come online and then we will.
10% this deal.
Projects. We then you we've been new plan that we.
All that the twin 2020 .
Periods.
Regarding the question on margin.
This is.
Your point is there a guy can get me.
Given that you now let's say.
Correct.
Yeah, Yeah decisions.
This is Jason Yes, you you.
Okay. The situation in the context is that it into its trend that even if it's not so strong but these are trained on going all the.
Switching over potential free markets it.
From a deregulated that into the three one so what.
Yes, the consequences ease that you ever larger.
Amount of clients in the free in between the buckets.
And a contraction of the consumption, although it was a distribution.
On this situation we yeah, we are aiming to save both approach of securing because at the margin between the legal entity that or is that the business and that gaining a lot of just like the bucket share on D.A. flea markets. He is going through.
Long term.
Constructs, we the large clients like mindset companies.
It's going to secure our our margin the trick the slow for long term and also targeting that big a medium is more clients, where you can have a and short distance got a condition for concho all in all that we see the evolution over our.
Portfolio overall or say it on the next 40 years quite resilient and do we see.
Let's say that the margin can be keep keep the almost a stable alone. The next let's say three four years.
Last one he's regarding that.
Yeah the EBITDA.
Yeah, we can confirm the targets of 1.7.
The younger by your backyard.
Perfect. Thank you very much.
Thank you.
Thank you and our next question comes from Javier Suarez from metal Banca.
Your line is now open.
Hi, good morning behave how do you have started talking mediobanca.
Two or three questions on my side as well that's when you saw a follow up on these Neil.
No. We didn't think if on the toughest TV station. So do you think that you have mentioned is that you're not expecting any BNL impact.
If that is correct can you give us an indication on the amount for the accounting receivable digest forecasting for the year 2000, and plenty to do and put into the next few years after half essential how that may affect you. It obviously, a working capital on that that's so be it looks like it will not grow in a accounting basi level.
And also a that prospect.
Did you unless you maintained your comment that the net present value of these Neil no on Texas have really say Sony's sito on data for that all the.
Yeah, the cash flow collection that you expect it is going to be finally collected a bike a company without any that much related to the time balance their money.
If not a this would be a negative effects will be some legislation. The if there is not a full compensation for the time time value their money.
That negative effects would that be through European correct.
So that he said the first question then the second question you Sunday.
On the marketing for the genetic somebody's nice there has been a sizable increase on the on the EBITDA margin and you mentioned.
During your 100 must be some puts and takes on that there is.
Significant savings in terms of coal prices I'm, not trying to prices and natural gas prices you can elaborate on what do you expectations for the for the next few quarters I'm, particularly interested on your natural gas prices and then if I know if I know cost us He Sunday profitability on the every time I didn't for the.
Network business did you sound a slight decrease on the every time idea for 15% to 14% you can help us to understand the reason for that thank you.
Okay. Thank you for the question regarding let's start again, the with it did start the tightest mechanism. Let me start from the first Boynton Beach is the two full metrology regarding the NPV effective honestly. This is Rick a question how do to answer because.
Evolution over the mechanism is also linked not only to the contents of the low but also due to the external effect.
Im putting a change it.
And the commodities b.
If you see effect and so.
Today, we can run a lot of scenario, where we can ever it negative NPV because.
You have seen already that there is no.
Let's see.
Interest in the first few here.
But we can also around other optionality aware due to the due to exchange rate if you could it could be it.
Well you know for sure.
To have a full valuation of the but in terms of anti MPV you'd be pencil dishing out of that get you are running so did that isn't there yet situation that mechanism, which di di and memories walk you do you have a question regarding the tightest mentoring story Easter.
Sorry, as it maybe I missed it yeah, yeah yeah.
Yes.
The other question you get if you can keep us quantification on the total amount of that receivable on track record of receivables that you're expecting toffee Intelsat, 22% of tend to want to something I'm thinking in the next year.
The size of that receivable yeah.
You see deep it de escalator aus around each zone, or a simulation and SBC militias as being done that considering that it.
Flat to a fair.
Currency change it so in this situation eat that does assume that the all in all the impact that you can be a and b shoot the system ease it in the range over 1.3 billion, you'll recall that either diesel why in the low as being paid search it's October loan.
Long term stop between that date and often so these would be the reference deficit that Ah yes.
I mentioned these events all not Oh, no the exchange rate. They did the number that you see should be around.
As a currency exchange rates on I'm, assuming that the the analysis made by the regulatory you should be in the range over 727, if you've seen the exchange that between she got basis in dollar and if this end to end linked to music change right. This is the amount that all the system, including this means that all the players that.
Hey, guys constructs that we'd the distribution shore D.
The main for a JV.
Going forward largest the generic blasts or did it the other play it includes renewables will bear the cost of all the awards the amount.
Coming back sorry, Judy is.
<unk> point of profitability on generic but as you national business.
The three improvement or profitability. These days is based on all salt regard to just said much innovation on the E.
Let me be seats.
But like the end of the blend team all the biggest coming from Argentina easy isn't technical thing.
ER constructs, but he loves a white goods to spread the consumer today, the regular gas coming from good GNS and did this spread the should be in the range of 20%.
Arriving gets a discrepancies over all the Glenn So these give us a white goods marginal seats at my generation and give US a couple should give you also to says to the to the sport into lead me to them the amount over energy that you did that.
Turning to to them up.
The last one profitability is on that.
Hi, this is supposed to profitability on distribution or just where they would come a competitor. So between the first not first nine months over 2018, there for my Master plan 2000.
Hey, 18, the it didnt the number that.
We.
In.
2018 that was the.
With inclusion of early Eric is that even in twin peaks.
The contribution of four.
A 4 million a 4 million dollar.
Looking at physical evolution of the agenda, they did two or distribution business, we see a decrease.
Okay.
Total amount of approximately 5 million 5 million.
That is driven by the board more volume affects it did not not that can occur and the N.V. improvement over losses.
Offsetted by clearly D.
That enforcement or the.
They did smart meter and the some additional cost related to the end automatic.
Many thanks.
Our next question comes from is equal Fernandez from Credicorp. Your line is now open.
Hi, Good morning, Guy. Thank you for the materials and the <unk> I hub four question I would like to go one by one if you don't mind My first one he's related again to the stabilization fund I think that.
Already clear what you talked about but I wanted to know if this affect your dude and pay out of 70% expectation for 2020.
Oh, okay.
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Okay understood great. Thank you Oh my questions. My second question is related to the B.H.P. <unk> I wanted to know if you could give us a sense of out of the city, they're out one hour per year.
How much you expect to service that with more normal solar and wind and how much weight I'm contracted hydro.
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Yeah, Great I understand that there is no contractual commitments in terms of volumes coming from certain facilities or other ones I just wanted to get a sense. If you believe that you can fulfill the volumes of D.B.H.B. contracts maybe.
70, 80, or 90 per cent with solar and wind.
The rest, perhaps we would hide but so trying to get an idea. How much you think you can you can feel of that construct up with solar and wind.
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Okay. That's a that's great and finally final question House keeping question. The has two parts. The first one is related to the transmission costs P.N.L. line on degeneration unit.
That was pretty you know this quarter $30 million, it's usually around 70 or 80 million dollar you could give us some color and white, but wasn't so low during this quarter and Daniel you made use of the.
This quarter and ideally for how much.
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Yes, if well what rank up or if you make use of the of that facility quarter and for how much do you got what hours. If you could if you could tell us that.
Do you need me to repeat the first question.
Yes. Please.
Okay, great the transmission cost or the cold, calling transport costs line at the generation unit.
What is quite low during the third quarter around $30 million when it's usually around.
70, or 80 million dollar if you could tell us why if it's.
<unk> specific maybe I can take it off the call with the Investor Relations.
Okay.
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Thank you.
As a reminder to ask the question you'll need to press star one on your telephone to withdraw your question press. The pound key please stay in biology compiled the tune a roster and again that is star one if you have a question.
[noise] I'm showing no further questions I would now like to turn the call back over two months Isabella climates had an investor relations that Angela for closing remarks.
Thank you afraid her well if there's no more questions.
So it's conference call, let me remind you that the Investor relations cheap it's available for any doubts that he may have many thanks. Thanks.
Thank you, ladies and gentlemen, today's conference.
Ladies and gentleman <unk> today's conference. Thank you participate <unk>.