Q4 2020 Azure Power Global Ltd Earnings Call
Ladies and gentlemen, good D and welcome to be a little color. It's been so what they're doing between dealings conference call.
Yeah, but the study from the management missed anything judge Investor Relations.
Thank you.
She thinks he could you walk itself.
Some of these have been William.
Chief operating officer.
Mr. Winkle My other one chief financial Officer.
I should remind us what are some lines will be to listen only mode and they will be an option before you ask questions. After the presentation competes.
Sure do you need assistance during the conference call and he signal and opening up a pitching stockmans eat all on you touched on food.
Please note this conference is being recorded.
And now and the conference well what can muster Nathan judge.
Thank you I know what do you still.
Thank you and good morning, everyone.
Thank you for joining us.
On Friday evening, the company issued a press release announcing that Cisco results for the fourth fiscal quarter Twentytwenty ended March 31st Twentytwenty.
A copy of the press release in the presentation are available on the Investor section I was your powers website How's your power Dot com.
As mentioned, we have the full management suite here.
And Randy will start what's a call by going through recent see highlights.
Surely will then follow with comments about the how the business has been resilient during the cobot 19 pandemic.
As well as an industry update.
I will reiterate our longer term guidance and not reduced what do you need.
Then Paul when will follow with an update on the quarter and then we will wrap up the call what frenchie reiterating our 20 fiscal year 2021 sided.
After this.
We will open up the call for questions.
Please note our safe Harbor statements are contained within our press release presentation materials are available on our website <unk>.
These statements are important to an integral to all our remarks, there are risks and uncertainties that could cause results to differ materially from those expressed or implied by such forward looking statements.
So we encourage you to review the press release Refurnished not form 6K, and a presentation on our web site for a more complete description.
Also contained in our press release presentation materials or certain non-GAAP measures w. reconciled to the most comparable GAAP measures and these reconciliations are also available on our web sites and the presentation and press release.
It is now my pleasure to handed over to renovate Angie.
Thank you Nathan.
And a pretty good morning, everyone.
Do you have been only four months since I've noticed last earnings call. It seems like an eternity.
The board has been drivers by the cool with 19 pandemic and none of US tripping left untouched by the habit, Good Street lights, and audit and I'm going to be.
I begin bid the vish that'd be all come out of this selectively I'm Scott.
And with the brands for dogs less fortunate enough.
Starting on page Pete.
I'm pleased to report that as your business has remained very stable during the cold 19, Pandemics and so far.
No material adverse impact from the economic and financial markets disruption.
Popped honestly mean fully operational.
Despite the 50 40 halt in construction of a plants under construction due to any both school would talk don't we expect it all up launch will be completed before they expect to buy fuel.
Due to migration of LIBOR back home from sites in cities across India.
Don't do normally construction speed to slow.
What's the up predicted by the if you would be extension provided by our procures.
On the sustainability front.
As John has been very busy due to the cool would impact on its communities.
We enhanced our budget for corporate social responsibility, but almost 70%.
And started to recall patients for the needy folks I don't doubt project.
So far we have distribute it I don't have done interesting calls and treats mosques.
We have distributed booked new protective equipment to frontline pets look good and over half a million b.
This exercise continues as we speak.
The other big airport at <unk>, and most would become Balkan neutral in the coming years.
On that front, the current situation who did appliance.
So you're still hopeful of constructing walking harvesting facilities in 25 o'clock project before the cadence monsoon season.
I still remains focused on not only doing good book on the sustainability front, but also tracking and reporting.
As the country wide locked don't get into adult Bob would you mind back to collections of distribution companies.
The government Duffy, India took steps to protect the renewable energy industry.
In the speed the photos over March and April.
The government three bucks for sometimes you'll notice its columbia's procures.
He confirmed the must run status of renewable energy and.
Instructed this comps it's strictly to be there do but energy abuse and allowed submission of diminishing invoices to digital meats.
Recently, the government announced I U.S. de 12 billion liquidity package to enable the veeco distribution companies to be Paul would you do convention and I'd nuclear energy generators.
Another important step by the government has been a push too I mean, basically act of 2000 and treat.
That is policy of two coconut fix.
Industry has also submitted data suggestions and been passed the new active static policy, but significantly reduce risk and they'd been public sector.
Hey, listen smartly and I joined about a year ago, we have made it a priority to your transparent as possible and to enhance our disclosure.
Investors.
This quarter, we have taken yet another step and we'll be providing said you picked up on which we believe that help investors understand and value out business more appropriate.
Beginning this quarter and going forward.
We'll be reporting gosh, two equity put out operating assets.
Well this past year, so you'll see some operating assets, but I don't U.S. do 42 million.
Up 15% from 2019.
We continue to expect significant growth as decommissioned both projects.
We continue to expect who need about $600 million equity to build out before do you go walks in our pipeline.
As the code 807 megawatts under construction or develop and already have equity in base.
We remain committed to find the lowest cost forced us to fund this and be up do you used to announce that since February.
Able to find opportunities, which had lower cost within each week says that produces very slick what do you need.
About uninterrupted million dollars.
We will continue to pursue opportunities.
[music] find additional equity from the lowest cost sources and we don't expect it to be will be issuing any shares before fiscal year 22.
Of course, you shrink stock would be the Louis cost close up equity for that project.
This stock price, however would need to be substantially above kind of jokes.
As an example, OFAC commitment we have hired advisers to explore selling a second set of assets.
Listen to the full set of assets, we announced in February.
Despite the disruption to financial markets from Google.
We have been able to access capital activity attractively.
Viewed essentially secured project financing I did interest rate below 9%, we hedged in high knocked off but I just can't eat project.
Yeah, I Didnt extensive discussion.
Those who complete our near term debt financing needs.
I believe that you will continue to be able to secured lending.
Attractively.
Given the quality, you'll find assets and project.
Also.
Our largest shareholder.
<unk>.
Why the majority stake in the company earlier this year.
This new investment banks GDP Q.
He's the recognition of as your father's leading sooner development platform in India.
And by having a majority shareholder.
But the long term approach and a AAA credit treating even have better access to external capital.
Well I thought improving our future growth and they've done prospects.
Finally.
As somebody asked.
They did the di di di assigning for the two Gigawatts, Italy, we received in December 2019.
And some deeley issuance of the anyway for the two Gigawatts greenshoe option B elected under the same auction.
Recently, the other you know at the same auction received a Italy for the capacity they elected under the Greenshoe option and be a hopeful that you're going to see the l.. We fought hard greenshoe capacity soon as about.
[noise], the delayed which is no.
[noise] [noise] about six months into seeming to be sold the folks to go walks.
And the anyway.
The second two gigawatts of Greenshoe capacity.
Has opened up a gap and not construction timelines.
And be I didn't discussions with the board.
Considering bidding for a limited amount of capacity to fund this gap.
The rest assured that even on leaving logic that simply because I'm since.
Deliberate downs that exceed a cost of capital.
If you're successful in securing project such attractive returns above our cost of capital.
Hi, I knew equity needs will remain asked what I've talked in Beijing.
Viewed it mean foam enough commitment that we would not grow up portfolio for the sake of cool.
With that ive as possible with them already.
[noise] good morning, everyone.
Looking at sea so [noise].
Despite the significant back little bit 19 has had the economy.
Actually the market and even electricity demand we have been one of the fuel company that has not seen any makita [noise].
We believe that did not fit well again.
Oh gosh [noise].
Lastly, I mean fully operational and we believe we would need to give me [laughter] device could use commissioning date.
[noise] it should be accessed the capital Corporation.
We should further differentiate ourselves how competition during this challenging time [noise].
On page five [noise].
We provide some of it ended I didn't even on the stages of each.
Plants under construction.
Oh I'm on projects, you're lucky on [laughter] to be completed by the expected device.
Okay, that's a commercial fishing state [noise].
[laughter] Nike and then they said that is nice but hasn't recognize a force majeure event and we do not [laughter] any financial penalty for any lead leakage divided.
Marginal cost increases associated with this little bit out as to look at the economy limped back to normal.
[laughter] deficiencies, we have been able to drive enough acumen.
Something he didn't prices [noise].
I think from called it.
Looking at industry and I didn't get study developments and 86, we still see significant demand for new renewable energy in India. Despite recent events.
That was 17 Gigawatts if you didn't does at least during this past quarter.
And we are tracking a significant amount of attention you tend to [noise].
The likely come up in the next month.
The government has committed to me the trajectory of seen even as your gross [laughter] led by the end getting Prime Minister.
75, gigawatts of renewable energy and on the Gigawatts of soda.
And then 22.
We also seeing more options focused on supply with high capacity.
So just wouldn't sort of high because [noise].
Hello.
[laughter] such a speaking [noise].
It should begin companies wanted to like <unk>.
Oh good reliability.
[noise] I'm convinced that if you didn't even energy generation [noise].
We believe that technology, such as high fixed and storage.
Maybe the norm and that is an opportunity here for us to participate in the near term.
And I understand about Scott.
The Ministry of New and didn't even energy what everybody has also been some extension in C or D [noise] <unk>.
So the project.
Did you get a little bit 19.
What do you want to get issue.
But he said.
A few days for normalization.
In addition, an extension Kennedy the question, so any supply chain disruptions related to the pandemic [noise].
Hi device, you'll be something like an independent took my presentation.
But generally on a going from one quarter.
Uh huh.
Well, it's usually schedule as if not.
Oh blossoming fully appreciate during the recent lumped done in India.
City condition is designated as an essential service in the country and we have been CDP, let's do it electricity supply.
All customers in normal course.
The ministry of new into new but any I mean, nobody has centered detected allstate distribution companies did you take the only thing even energy facilities in India.
Good I'm too much on stages.
I mean, he has funded satisfied that any curtailment.
Oh, good safety reasons.
Wants to be generation.
Turning to see such Judy.
<unk> as Judy and to propose a policeman basic custom duty on sort of address BCD [laughter] trades at mid East has any she could if you investigation to get done whether that is it needs to continue the device that you'd be structure.
[laughter] daily provide a finding before the as Judy expires in 29 generic <unk>.
As a reminder.
Projects are protected under change and don't televisions and we did not expect any material impact on I've done from either BCD or as Judy.
On the all patients front on assets continue to perform as expected.
We have put in place a systematic program.
[noise] digitalization across the assets and some of the key features of this program as mentioned in the past include drilling be she told me imaging and hence analytics enough blunt monitoring platform.
No. This is Andrew but you could domination.
What do listen what you're getting systems.
Let me just launched into security management systems and spent inventory management systems.
We expect to see improvement in asset performance and reduction in operations cost on account of these initiatives in the coming quarters in years.
With that other turning back to the G. You discussed long term guidance as well as comment on our equity needs.
Well, what do it and just.
[noise].
Certainly.
[noise], he's probably having connectivity issues, let me complete for him.
Oh really continuing yet.
Hello.
[noise] off if you look long term megawatts and cash flow growth.
Unchanged.
One spot.
Okay, and seven megawatts under construction completed we expect cash equity from operating assets will be about doubling its like think 11. Once these assets have been operation for the full year.
Looking outside though.
As we commissioned the full gigawatt enough pipeline, we expect the cash flow to equity from operating assets will be nearly four times the leverage reported in this past fiscal year.
He discusses our equity needs for the next five years.
We are pleased to highlight that we have identified opportunities to reduce the additional equity needed to fund a full gigawatt pipeline.
I have $150 million.
Since we provided this no since we provided this number integrity.
As it might just this addition, they need a 450 million it's spread out over a five year period.
As I mentioned before and what he could again.
Even though she lives supposed to Kathy.
As you have to be issuing shares is one of the highest cost options.
We believe that out a multitude of lupus options to satisfy a equity needs, including internal cash flow condition.
I think cash flow through cost reduction.
Any financing.
Do you think of looking after the climate.
Investment they green bond, that's little building plus introduced equity needs high leverage.
I see is.
[laughter] International lenders.
I mean, she did you convinced us.
As opposed to continue.
Using an equity needs, we have engaged a bank explored selling to second group of assets. In addition to the first set.
Thank you good snow the attitude exploration, but currently we see.
Initial interest for these assets.
One other point of corporate housekeeping.
We also incident filing a blanket shows that would be effective or at least three years.
Considering doing it now instead of cost savings in time synergies.
With the filing of shares but on your book.
As a reminder, we do not expect issue shares.
At least.
Fiscal year 22, and we continue to look for opportunities to push this deep out even further.
I would now like turn it over the past, but not good one.
Financial officer to go through the fiscal <unk>.
Thank you.
Thank you for me.
On page nine.
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Mike.
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As an example.
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Yeah, I mean, that's sitting at about.
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I mean, you get bought I could've been got school.
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Even as you well one thing.
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We do it said that you would have been getting a Dod studies I don't think this quarter.
And as it is or something.
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I'm going to be about 95 million.
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On his 11 years.
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It's going to I think you'd like do you want.
I think that's both Mike.
You.
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Hi, good Bobby I bought a variety of human I'm, probably agree what do you.
We think some apart.
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Last month.
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On the Green bond.
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Dave <unk> <unk> <unk>, Okay, let me lines.
What else.
Well like I like that but how do we want you.
One, but could you maybe let me come what do you you bought pockets like lie that my thought to be thinking about.
And even though they can be lumpy. Because then you could you back to the naked locally.
How's that.
Oh I couldn't be bond.
You know, we fuzzy line movies.
Yes, probably didn't predict maybe you end up what would your logic, we're going to probably not pick up.
And then maybe you don't want me, one, but we don't yet.
Oh, sorry, I didn't know what does it look like I'm commenting on it.
Thank you.
Thank you Bob.
Yeah I'd be treating.
<unk> fytwenty to anyone guidance at this time as can be seen on page 13.
They're not only two weeks left in the first fiscal quarter or fixed 2021.
And we expect fiscal first quarter Twentytwenty run revenue will be between I end up 3.8 to 4 billion and I'll be in if we'd be between 20% to 22%.
With this we will be happy to pay questions.
Thank you very much.
Thank you very much we will now begin to question answer session.
And you want to wishes to asking question. The press Star then one on the attached on telephone.
If you wish to them, we have said it from the question give you my best all into.
I just inside of question to use and that's when asking a question.
Ladies and gentlemen, you can speak for a moment.
A question did you actually members.
The first question is from the line up my eat monthly from Credit Suisse. Please go ahead.
Hi, everyone I'm, good evening in India, and wanting Ah Ah Ah.
Thanks for taking my questions are <unk>. If you can probably first start with the joking would be hundred 50 million deduction in equity needs.
For the four Gigawatts projects.
What is driving Dod and think about it then.
Quick so instead of question was Ah you spoke about potential construction d. is if the lawyer is or delayed and oh, the acquiring or Ah Ah.
According to a bunch of it in new auctions or if you can probably jump Woodward striving that construction being there and there is do you need and Oh.
It's a deadline on bad in the way before you.
Projects.
Sure. Thank you. Thank for the question that Mike So as far as 250 million is concerned.
I would refer to slide eight off artist presentation.
Have you mentioned that are the primary sources of fraud additional equity.
Basically in denim crashed ambition and optimizing cash and so on so.
Some part of the tonnage 50 million written a really come from asset sales and some parts will come from other efficiencies that we are building into a very odd financing. So that is how do you ever you expect to generate this I meant 50 million Oh.
After $600 billion actually need.
Right.
As far as though or be in L., we ought to be in BP is concerned it's a it's a process and.
You know these project, which we are currently constructing was supposed to commission sometime in the middle of next year and Ben.
From the 4000 megawatts that you're buying before Gigawatts that you have on the projects, where do stocks commissioning sometime in the middle of Twentytwenty <unk>.
<unk> because it has been some BB and the signing of pop up to the agreements, we expect that dogs commissioning big been shifts towards the end of Twentytwenty too.
So therefore or you don't even have a gap and ours or you're not construction schedule and in an effort to fill that gap reactors or we are considering.
Taking part in a inox and of course like we have do you treated in <unk> earnings release.
Like you have mentioned did I've been doing conversations with investors.
Not in did for growth just because the ever gap doesn't mean <unk> pellets with projects that do not meet our cost of capital.
<unk> do not have to go out and you hadn't been project simply because David I watch out of megawatts that is absolutely not paying rents are they pension we will be happy if we don't do anything because of the fact that right you can get that it does that you want and Riyadh I'd put a few months aftermarket that's a bad.
Correct.
So nobody even though I'd be will only be or you know durbin if it makes sense.
Got it doesn't know thank goodness and just one last button on Ah Ah prevention of times expect them in the market can you talk about how big competitive landscape is a into market today, especially for the hybrid and storage projects that you launch of drug in the future.
And then I'm asking wants it because it went up to come but it does that footnote one of the Louis be a projects and God just time or a few months ago. So does that indicate a return to more rational bidding behavior or do something competition from a lower cost of capital from.
They are though.
Who made the I, even though the supply and demand for Oh for Ah auctions typically has some impact on that that if that I've discovered right. If it for a few months you don't see any auctions people become a little bit more competitive.
Let's see some auctions because I was less competitive so otherwise typical but it does that people expect has been the same awards over several quarters.
We don't see any change in that the typical investors the typical or people who are taking part in these auctions the companies that dog.
In this business.
In funded practically the same because they were funded.
Strategy might took over 18 months ago 24 months ago, and there's no reason for them to change.
Walk they expect from a particular auction. So we don't Oh, we don't see any change that.
As far as hybrid projects are concerned we do not see bad today would be my change in the in better don't profile there.
On the storage projects.
Depending up on Ah Ah, depending upon what kind of storage is going to be used and bought exactly the requirement of the auction there could be certain.
Are you don't know it showed no. It's an arbitrage there for for the developers because not everybody fully understands how exactly that has to be Tyson day for people, who might want to be a different seats.
So I suppose but overall you know as far as any established technology is concerned that it don't expectation remains the same.
Got it but none and just one last one from me and then I'll.
Some back into queue could probably just a couple would be.
Installation guidance for the year nights at 300 megawatt range, what's driving the nowhere in the hired and especially given the ER visits do you have been beat.
Construction this year thanks.
So the basically or you know though.
At the point at this point right I mean that go with related delays or you know what the impact.
The commissioning.
The last time also the that he's involved that odd project. We're supposed to commission almost at the end of the financially or so it's a 300 megawatt project gets commission before the <unk> Fractionally up then it like it looks good megabucks plus if it slipped into the next year. That's been by two weeks, if it's that they'd be I'd like you had a basketball shocked.
So that is the reason for the large range and like I mentioned in my remarks and wouldn't be did.
You are you don't though there has been schools destocked because off for the fact that many of them. They both had had migrated back home. So you know the out slowly trickling back onto sites and because seeing some 70 and stocked up on projects have stock.
Got it up the construction has begun but there are obviously does not at the base that we expect.
I'll be able for the projects that have to commission.
In the first quarter of mixed galindo, because the last books refer the got in physical there's still time, there's still time to make up and I are if over the next month to month, if things remain stable and up and devote goes it done we could still meet the timelines that we have put down and not a are you not presentation.
[music].
Got it thank you.
Thank you.
Next question is one blend of goes up or Shah from GMP Securities. Please go ahead.
Hi, This is actually on for Joe Thanks for taking my questions.
First wanted to touch on the second group that asset sales being considered I just lucky tell about what you might see kind of group can much that.
Saying, it's that once that couldn't compete is that pretty much everything that you'd be willing to consider selling or we will eat possibly some additional sales.
Oh, that's in a very important a question parents, so [noise] for asking the.
Been be had spoken about this Ah I lost time also we had mentioned that even look at all non strategic assets like the assets that do not make sense for that for us the view that the as you look set to itself over the next few years. Right. Then you had mentioned that that's basically means maybe very small assets assets that Jeff four megawatts.
Megawatt 20 megawatt because now we are going out and doing four gigawatts, you're doing a 600 megawatt project 200 megawatt project. So therefore, you don't those smaller projects that.
Potentially nonstrategic.
We will always be also look at projects that I was you know for that will be in remote areas. We might do better you find that it is more difficult to drive operational efficiencies. We could look at projects that are you know have higher status in the long gunby would want to see.
A host of projects that a large load that its setting to the best for Counterparties in the country.
Oh, we would then of course constraint because.
Many of our projects a pocket, but a strict a group.
So therefore, right I mean or whatever it is the second set of assets that we have a maybe have seen <unk> conducted at this point in time.
Non strategic for us going forward, depending upon how the odds you split out when we go into you finance ABS portfolios, which I do and and ER and you know in bed mixed for next years in a calendar twentytwenty towards end of calendar 2022, and got indifferent to drink euphoric towards the end of printed ready for it.
That they maybe some other projects could potentially be it's going up and it also depends.
Of course on what about that options that you have available at that point in time.
Oh objective for us is not to reduce the size of the company.
The objective for US is to increase the size of the company and I projects are good project. So that he's into a you know two to free up or would be to free up equity would be won't be if we find that that is the cheapest source of capital for us.
We didn't even go out and do that so there aren't many factors definitely into a into these decisions.
Okay, Great and then if he could perhaps just kind of touch I know at quarter to go we kinda talk about what multiple you Mike and I expect to see for these assets sales I was just I'm wondering if you could provide updated thoughts and where we might she has come up thank you.
Those are discussion ongoing [laughter] scoop, what ive to Ah, who are doing number and I am I right at this point space, even be honest and try to discover the best possible targets, but ourselves.
Hi, Thank you.
Thank you next question is from Plano Phillip Shen from Roth Capital Partners. Please go ahead.
[music].
Hi, everyone. Thanks for the questions.
First one is a follow up on the.
Sales of assets right right I believe you mentioned that of the 150 million.
Of equity that you've been able to generates.
That there's a mix between asset sales and inefficiencies from financing would be possible the breakouts.
What what is the percentage between the two.
[laughter].
So you don't.
A large portion is going to be from the asset sales and a smaller portion from other efficiencies and Ah Ah filled the old I mean also you have to be put example, like are you mentioned that the sort of $600 billion. It's something that has acquired over the next five yards I mean I've project.
Yeah, you did that four gigawatts that we have for that'd be have secured those ought to be constructed by the somebody else Twentytwenty fight right. So are you know to the numbers that you're talking about <unk> million dollars, though I know the big couple of that really never been also videos would change right.
As we discover what exactly is the asset.
You know proceeds that we get some defeat up assets and up and booked for you're getting from bad debt expenses, we drive at the moment. We can see this number could be lunch 50, and obviously you know we want to become Directv now that you're not estimates.
<unk> after that point also pulled that down.
We have achieved some cost reductions in construction.
And if we can sustain that momentum over the next three four years of cost reduction then that will also contribute to do it just $150 million production.
Got it okay. Thanks.
No I think on the Oh the.
Pardon me once again.
Sorry on the Q1 or the park quarter call Oh, sorry for people are Congress I got strike at here or there are few three call.
You highlighted that you guys sold six.
How many megawatts or in contention there.
Sorry for like missed or the last part of your question.
Oh no problem. So now that you're considering another round of asset sales or what is how many megawatts are you considering.
Hi, guys itself I think the prior round you had 600 megawatts. Thanks.
No we didn't a bit into five owned it for the Doctor 600, though where megawatts.
The 600 megawatts that you had mentioned Phil Ward the project that we exit.
Right in the sense that goes for projects that was secured.
But then be did the analysis.
Good that those projects, we did not want to build because of the fact that they were not going to give us sort of doing that you wanted so over the time, but we've been here you have exit about 600 megawatts of projects. So that's what's the 600 megawatts and that's why does the Seattle passed its Wisconsin. So you have you've got to full set of assets.
Rich, we had appointed it or or a bank or the beginning of December.
I'll, just circling do Ya and Betty simply we have appointed up and go for the second fit and be had exploding are these asset sales. Once we have some ah some numbers. They don't we then being up and and credible Counterparties, we'd go to the board and seek probably some four before those transactions.
Okay, Oh, just the confusion, but.
But that said can you can you talk about the megawatts.
But the first and second round.
Oh that's itself.
I would prefer not to talk about though the megawatts at this point in time please.
No problems <unk>.
Shifting gears to the.
Two gigawatts that where you have not received the p. as yet can you comment on the timing of when you might do you expect to receive that P.I. I know, a and e. coli delayed meaningfully or perhaps can you also comment on when you might receive the other way for the two gigawatt green shoe.
The prior calls you've been a competent that you would receive the callaway suing, but what is when do you expect to receive these things.
Based on where you stand now.
Right. So that's a that's very important are important milestone for us so as far as the pop, but she's agreements are concerned Phil.
The date by bit schools, Pablo, but she's agreements what would be signed what extent of June 2020. So last week. So did so I did it could be there at the moment. It is five days for though for us for signing a soap opera disagreements with begun signing up those properties agreements. We believed that it can be at least you don't work.
Lisa quarter or two quarters delayed overall, so it'll be had been a short by Vicki that they're working furiously towards signing these up de beers and view, we hope to hear some good news and mandate coming quarter. So so that's what Kirby I've, yet hoping to see.
The good thing.
Good.
Oh, good these ah pop, but to the agreements, which are you don't which is a very heartening for us is that.
These BP is the abuse four gigawatts.
Come with a built in.
I used to U.S. vivo connect to the so basically at this point in time and a nuclear energy sector largely the only quote unquote subsidy that remains is available in the states transmission charges and currently this beaver expires.
In December Twentytwenty too.
Right and a you know too as far as these assets are concerned before 2000 megawatts are concerned become due the inbuilt vivo.
During the time that these projects are completed Bitches, 2025, 2025 and been flaunt. So therefore be up you know I've not really a there is no. There's no timeline issue for us really as far as these properties agreements I've got a concern and of course, it ought to have delayed but not really caught us off in any between.
I would agree the risk and any betray in fact, maybe a quarter deliberate only help that it done because as we are seeing every quarter every two quarters being credit auction in the Capex for building. These projects. So I've got it is predicted I STS and change in Lloyds predicted. So therefore be don't really hurt a good deal.
Okay and visa in these properties agreements.
As far as the L. away is concerned.
The l. away or like you mentioned in the the though on earnings call. It. The other company that has won the auction alongside us they got their greenshoe option or L. away last week. So therefore, you had more comfortable and board on fit in that area.
You should get a today the wheels, so soon sooner than later.
But that does he tells really help for the fall up there.
Oh I can you talk about the reasons for the P.A. delay a is it due to create a virus or is it do there's something else Oh, I think Oh and it also can you comment also on the L. away. It sounds like that should come around securing given I believe I doubt it was.
Appear that received their alloway. Thanks.
Absolutely. So like are you mentioned mandate achieved it Soviet hopeful of getting hogs too as far as to for spot is concerned but do they end up opportunity Mint definitely go we'd has played a huge at all because of the fact that none of the distribution companies are really walking they were grappling with data revenue collection.
So their focus was not on signing these up opportunities agreements. So a you know that has.
Caused some some DB and you know one sticky gets on top of this really are being really figured out exactly what the reasons might be once it's up and then over the next few weeks, we'll find out exactly what that he's and died and I forget thing any pushback from the states and and white spaces any pushback, they're getting this push back.
Great. Thank you as you said everywhere else so I'll pass it on.
Thank you and mind into the participants anyone wishes to ask a question that press Star then one I'm just saying.
The next question is front line up with robot to from Jefferies. Please go ahead.
Hi, Thanks.
So that's why you're going to fund this quite got enough I, some gaming and they get to focus was on the line of thinking a money. We've got one off items not seems like well there isn't anything ladies and gentlemen.
Hi sell them yet.
Uh huh.
And then it could be momentum and.
I think.
No I'm backing.
My second.
The company.
Oh I see on Bobby.
Okay.
Mark to market.
They've done don't somebody says I am.
No I didn't want won't Oh.
Okay.
Dan did that they had very high equally good luck.
Well I don't get cold season.
Talk company she can bite.
And but it can be lumpy equaled told me to maybe people like why isn't that soon.
Well I thought I become Kung Fu well just HM.
One coffee all the money, although I've only been home.
I didn't.
Okay.
Okay and okay.
He actually them onto the body based on the M. Dan.
Hi.
Uh huh.
They through a mobile.
We are not identify them I mean.
Yeah David.
But yeah, I believe in Colombia, but yes.
It sounds like goes up.
You bet on these people.
Okay, Oh, just wanted to take I think if you look I didn't bother O $3 million Opex expense, but I know that's correct.
Yes, we got one month London.
I think.
Oh somebody should.
Mm Hmm, so how can you give them because somebody can indeed.
Then by them and you can give you want.
Let's put it back slowly you want to Ah. Thanks.
I think that's on the baby come they didn't seem to be multi family.
Okay.
So that even going back.
By the people in Dublin.
Okay, and what wouldn't be did on they played out completely but back to what it.
Yeah.
Yeah.
So.
You can call. This will not let me give them because that would give you want them up and she said.
Oh I get by the time it did they come from.
HM.
Mm Hmm.
Nothing fundamentally that wouldn't be lumpy.
Okay, I'm going to one which I think we hadn't if they did a couple of stuff was excellent nerve might go watch a last quarter.
So based on the cutting biplane is then is oh put anymore.
What is this autumn.
Well materially all the projects that are we going to Greg that the exit you don't know Aldo projects that we haven't had they Dod or you know a bid on a day doesn't have much that oh, we need to do it if we if we decide not to do something it could be a small.
Subject on though to stop side or it could be a small project a block of the project and I enough time those decisions, we take on ongoing basis, a bucked the material things like 600 megawatts up our portfolio of 1900 megawatts that even be into it. If we had a portfolio of 19 100 megawatts.
You were building 600 megawatts be a decided to exit that does happen so nothing but they didnt as expected anymore.
Okay, Oh, yes, a lot question into his on the manufacturing, yes I.
Well, you're going to find come you with them because again, it's I'd be at Lilly has to be food and maybe before thinking well then if one community to get.
But given the got Inc., Oh campaign, and how it goes even the I M. B to B I wouldn't be lines. He went back then you got anything it's gone are hoping it wouldn't be for the state So fine Oh, well he missed I know.
You are right and theaters or is that it shopping that keeps going on between.
The distribution company. It was up eight or are adequate to be 65 sites out there would it be 70 paper and then you know to be 50 pays out who would be 60 paper and the though distribution companies keep jumping from London.
So in fact, even.
Even before the manufacturing bid, but ER or was there both it and.
And now I feel the government had James to standard bidding guideline course on the implied or.
Bundling of four also BPH, so that the theater do not do data of shopping.
And Vicki booking on that because the way you know if they come out of the 255 baked into the next biggest await the and to make but it's too to 70. They are they find it difficult to Oh, you know to convince the states. So by doing a bundling they wouldn't be able to provide a stable added to all the states.
And then the states that also comfortable that they have not losing money that's because they did put two month or they have not lost money because they've been a lead by two month. So that is what they keep doing so that it takes care of be shocked radiation and Oh, you know and.
ER pricing of course, you know in India's dorms that doesn't really matter. So much because that's 200 200 megawatts yeah.
Hey, typically grew at a well taken the time of different offend 15, Fenty by thought we love the zero impact on there I know.
It seems that extra time, and industrial data, but often need looks bad for the state and therefore, they try and get that you guys, Bob what into kind of shopping and to prevent that you had gone all good though a change in the in the and the guideline which allows them to bundle got it.
Okay. So you have and there's so much on the back.
Thank you see these end gentlemen has that I know for the questions I know Honda conference over to Mr. anything judge for closing comments.
Thank you everyone and we will be available after the call. If you have any follow up question. Thank you very much.
Thank you, ladies and gentlemen on behalf of reserve power that concluded. This conference. Thank you also joining us and you may now disconnect your lines.