Q3 2020 Boralex Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to borrow ex Inc.'s third quarter 2020 results conference call at.
At this time all participants are in a listen only mode. After the speakers presentation. There will be a question answer session.
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I'd now like to turn the conference over to your speaker today, if on Miele director of Investor Relations.
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Civil cool. Thank you operator, good morning, everyone welcome to Biologics third quarter results conference call. So thank you.
Vishal, thanks for joining us on this.
Remembrance day.
For the car that goes with it we wanted to take it.
Silence before our call.
So that being said I would like to introduce people on the line with US we are XOMA presented.
Chief Executive Officer.
That cost Vice President and Chief operating Officer will give med, Vice President and Chief financial officers can.
And other members of our management and finance team.
So as usual Mr., Adam I will begin with comments about the highlights of the third quarter afterwards, Mr that cost will provide comments on the operations on the development.
So getting that will carry on our financial highlights and then well.
Will all be available to answer your questions.
So as you know during this call we will discuss historical elsewhere last forward looking information when talking about the future. There are very few years a variety of risk factors that have been listed in our different filings with securities rig.
Regulators, which can matter.
Materially change our estimates.
Made at results for these documents are all available for consultation Sedaka. Our webcast presentation document to disclose the results are presented both on the IRS and on a combined basis, so unless otherwise stated all.
All comments made in this presentation will refer to combined basis figures. So the press release the Mdna the consolidated financial statements and a copy of todays presentation are all posted on our on our website that boralex dotcom.
Let us investors section.
So if you wish to receive a copy of these documents. Please contact me Mr. I want to dilemma will now.
Start what has gone on so please go ahead.
Right.
Thank you Stefan good morning, everyone.
Third quarter results showed continued road in our EBIT da and in our development as we made good progress again in all four orientation of our strategic plan.
As you all know our sector of activity is also at a turning point as many governments around the world are indicating renewable energy will be a strong component of their economy to recovery plans.
Some regions like New York State already taken concrete actions to accelerate the development of renewable energy.
We are also noticing strong growth in funds dedicated to renewable energy and energy from the investment community.
We are more than happy to see all this attention to our sector and more confident than ever that the energy transition will accelerate in years to come.
And this is very positive news for the execution of our plan. This environment also creates opportunities for acquisition and partnerships.
To realize ambitious projects.
Getting back to our third quarter results, we experienced strong wind and hydro condition in Canada.
This growth of our production in Canada combined with all the optimization initiatives undertaken in the past in the past year enabled us to increase our combined EBITDA by 18% compared to the third quarter of 2019.
We have also been able to recover the construction delays caused by COVID-19 at our wind farms under construction as a result, our glass Rose Wind Farm West Commission on November Onest, and we expect to commission, our Sha loan Repowering project on December Onest.
For secured projects totaling 47 megawatts advance to the ready to build phase during the quarter.
We have been also quite active in the participation to RFP.
We bid three solar projects totaling 140 megawatts in September RFP with the New York Power Authority and October RFP with NYSERDA for Index Rex results are expected to be on view in 2021.
And finally, we recently announced a well planned transition for my replacement I will be retiring at the end of the year.
As mentioned on our recent call on the subject.
Im very proud of all we have accomplished together in the past 14 years and very happy about the choice of Patrick because as the new CEO.
I won't go over all our achievements with regards to our strategic orientation as I already covered many of them, but you can find the details on slide five of our presentation.
To conclude my part I would like to highlight the fact, we had no significant impact related to COVID-19, so far weve.
We pursue the disciplined execution of our plan, we are seeing increase increasing development opportunities and we have a strong financial position to capture these opportunities last point and the most important one in order to continue our growth we have a highly mobilized group of executives and employees working together.
Patrick to take advantage of opportunities ahead, and continue to ask for that work I.
I will now that Patrick cover our development and operations I will be back later for the question period metric.
Thank you Patrick good.
Good morning, everyone.
We go directly into the analysis of our production.
As shown on slide eight in our presentation documents or Canadian window operations performed quite well again this quarter with production, 6% higher than anticipated production and 10% higher than the same quarter last year.
In France conditions were less favorable with production, 5% lower than anticipated production, but in line with the third quarter of last year.
Production from the commissioning of wind farms was lower than expected due to the slight delay in commissioning of our solitaire IV wind farm in the wind conditions.
Overall.
Sorry, total wind production for the quarter, combining Canada, and France was one person higher than you anticipated production and 5% higher than last year.
Turning to hydro no.
The production of Buckingham power station was 27% higher than we anticipated production. Following is its reopening comparable hydro production in Canada was 11% lower than anticipated, but 7% higher than last year.
Conditions were much more difficult in the us where we had production, 39% lower than anticipated and 30% lower than the third quarter last year.
In summary, total production for the quarter was 2% higher than anticipated production and 10% higher than last year.
On a year to date basis as indicated on slide nine of our presentation. Our total production is 3% higher than you anticipated production and 5% higher than last year, reflecting very good conditions at the beginning of the year in France and in the second and third call.
Voters in Canada.
Turning to development no.
As you can see on slide 10, we added only nine megawatt toward portfolio of projects in the third quarter. After an additional 103 megawatts in the second quarters quarter.
This is a reflection of the transition period to adapt to the development of new sites in the context of COVID-19.
Given measures adopted recently to counter the second wave of COVID-19, or teams are working on new ways to continue adding project to our pipeline.
We will have more to share with you on these initiatives in coming quarters.
That being said were making good progress with project already in our pipeline project.
Project in France, and North America moved forwards to mid and advance stages during the quarter.
New projects advance from the portfolio of project to our growth path, which we are considering some of them could progress in the coming quarters.
Turning to our growth pass no. We added 11 megawatts to our production capacity with the commissioning of our large pools Windfarm conference on November Onest.
As mentioned by Patrick.
We are expecting to commission, our 35 megawatt Charles Wind farm on December Onest.
During the call the quote the quarter for project move forward to the ready to build fades. Our two solar project. They hold and Laclede is showing trends totaling 21 megawatt are ready to build and with expected commissioning in 2021.
Our wind project Excel shown planned this could view and more the bizarre dude repowering totaling 38 megawatts are also ready to build.
With commissioning expected in 2021 and 2023, respectively.
I would like to take some time.
To talk about our CSR E G engine.
Over the past two quarters, we have put considerable effort in a beating our corporate social responsibility plan CSR any.
And its positioning with respect to MSG criteria.
This process is not get completed but there is already encourage us to go further.
For example, while we have always promoted to value of inclusion countering racism and building diversity within the cooperate the corporation, we're making new commitments in these areas.
In fact, we have announced that we have signed the diversity charter in France and that in North America. We have made a commitment to countering racism against first nations people through the group more all sold Inc. an initiative by business leaders in Quebec to mid Con.
Creek contributions to diversity and inclusion.
These examples.
Showed that we want to go beyond renewable energy.
To that end. We also decided to include completion of the CSR planned in our 2023 strategic objectives at the same level as our financial objective.
As you can see on slide 12, we have identified 10 priority issues and group them into three commitment directions.
So stay tuned for more in coming quarters.
In conclusion on my part I'm quite happy with the production in the third quarter and year to date as well as with all the optimization initiative put in place in the past year or.
Our rentals clearly clearly reflect strong execution by our teams.
Our project are progressing well in our pipeline and growth path and I'm very pleased to see all the good work put in place by our team to diversify our activities towards solar.
Finally, I am also encouraged by all the efforts put in place by our team to elaborate a clear and wealth strictures CSR is GE strategy, which will be unveiled at the beginning of 2021.
This is very important for us and we strongly believe a well balanced approach toward and borrowing and social and governance practice is key to create long term value.
This completes my part I will know that Bruno covered the financial portion in more detail and we'll be back later for the question period.
Thank you Patrick.
Good morning, everyone.
Let's start with a review of the progress made in light of our 2023 financial objectives.
Starting with our last 12 month, they AFFO, which increased by $24 million from 124 million in the second quarter to $148 million in the third quarter.
The growth in the third quarter EBITDA and positive effect from all the refinancings completed in the past year drove this increase in FFO.
Please note that this number includes strong fourth quarter 2019, and first quarter 2020, unethical due due to strong wind conditions in France.
Our dividend distribution ratio now stands at 44% in line with our 40% to 60% target.
Our net install capacity stands at 2067 megawatt and we still aim to reach 2800 megawatts by the end of 2023.
Third quarter revenues, followed pretty much the same pattern as production weight growth compared to last year coming from the Canadian wind and hydro.
The increase in either revenues is coming from the yellow falls power station, which was selling at market price last year before the contract was in effect and from the commissioning of the Buckingham power station, which also produce better results than expected.
And maybe on a combined basis increased from $70 million in the third quarter of last year to 83 million this year.
EBITDA for the wind sector was $13 million or 16% higher than last year, and hydro EBITDA increased by $3 million or 48%.
Moving to cash flow now, we generated $63 million of IRS cash flow from operations in the third quarter compared to $35 million in the same quarter last year.
The AFFO increased by $24 million from minus eight in the third quarter last year to a positive 16 million this year or.
For the reasons mentioned before.
As indicated on slide 19, our financial position remains solid with our net debt to total market capital ratio of 41% on September Thirtyth 2020, compared to 56% on December 31st 2019.
In conclusion, all financial indicators are positive this quarter, thanks to all our about Boralex teams.
Combine production and a baby are up 10% and 18% respectively.
Lastly, our monthly AFFO is up $24 million at.
$148 million over the previous quarter.
We successfully put in place and.
806 million refinancing for our Niagara Wind farm facility.
And we closed 201 public offering in August.
We are therefore in a very solid financial position to pursue our growth in sight.
Future opportunities. Thanks.
Thank you for your attention.
We are now ready to take your questions.
If you would like to ask a question. Please press star followed by the number one on your telephone keypad before they get sales agency will take at least for me today.
Okay.
Your first question comes from Rupert Merer from National Bank. Please go ahead. Your line is open.
Good morning, everyone. Congratulations again to devote Patrick on the past success and future opportunities.
Okay, maybe if we could start with.
With development in Canada, and then come back and give a little more color on.
And how Youre your developments in Canada are coming along and I know you've talked a little about the IP rights.
Jack in the past, but are you also looking at other projects I think historically, we've looked at to an expansion at the senior level, probably as well.
And how do you look at these are they considered early stage or or mid stage. How do you. How are you looking at the Canadian market.
Yes, Indeed, you have probably seen the Rupert that there were some.
Meeting about from with our partner the new first nation with hydro Qubec and the minister about yet.
Which was a positive very positive meeting and.
So we are working on this project on on the other project. It's it's too early to to the conclusion from from the position of the Plum Yi.
In July we said that they will they will restart when.
Qubec.
So the project are for the moment considered in our portfolio in the mid stage and early stage and ER and we are we are looking to this but we think.
I think it's a little bit too early to say that it's it's concrete project for the mobile orders.
So no change in the status for the outlook on the happy with it at this point.
No not yet as I mentioned, there was a very important meeting mid October.
You can probably find some some information on the at least the social network Patricia because there was some some post from the minister of this and I do get back to it was a it was positive but.
But it's not good.
It will come back if it concludes positively.
Just remind that we have the commitment from the company logo that it would be the first project when the wind will restart and give back but we don't know when it would be.
All right if I can add if I cannot rupert.
Let's see the momentum for a more renewable and get back his desk is directly linked to export right. Okay mix are you seeing idle cubic.
A locked in New York State lately are doing conference regarding exports. So.
They can if I look at that can conclude something on the export side over and above in Massachusetts.
When I'm going there and when I say this is going to be the kicker for more renewable in India.
Alright, very good okay. Thank you.
Secondly.
Bruno if I could ask your question about about refinancing so you've done a number of big refinancings and in France, you aggregated a number of your project finance facilities.
So with that how do you look at financing growth projects in France going forward will you put on individual project finance facilities has as you bring new projects on line or are they going to also be aggregated to somehow.
Oh, yes, we have as part of their refinancing we have a secular revolving facility.
For certain identified projects and as we add new projects.
According to certain criteria as we can.
Roll them into the facility is there they are within those those.
Those types of Craig.
Criteria.
So it will really depend on.
On on the type of projects and a and B.
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Continued support of our lenders in France to to continue to add to these types of projects.
Okay, Great I'll leave it there thank you.
Thank you.
Your next question comes from David Good data from Raymond James. Please go ahead. Your line is open.
Thanks, Good morning, everyone.
My first question here I guess in Europe with the upcoming climate lot I'm curious.
If you see any potential for acceleration of projects in France, or if you could even move into other jurisdictions in Europe with some of the aggressive goals they have there.
I think the first point is I think.
The plan of development of France was was already.
Aggressive before the recovery plan.
So are we there and you have to bear in mind, all the time that in France. You know you have global target and then you have the local development we have been managing this for the last almost 18 19 years and so we are we are indeed, the optimistic Gordon good luck.
But I'm not sure it will really accelerate locally to did long into the future with we have a strong pipeline and we will work on on this.
Looking to other countries, it's not the it's not for the moment, where what we are targeting its except what we're doing in the in Scotland to create value was this dispersed.
Hi, Julio outside friends Europe, and that's that's the thing we we are we're obviously.
Shifting to things when when when when when they are coming to us, which we are not untying sidley.
For the moment.
Okay, Great Thats helpful. Thank you and maybe just one for one more for me I believe there's a comment in the release a 71 megawatt project in France that didn't get approved in or didn't get selected in July but was resubmitted for November I'm just curious if.
If you are changing the submission in any way in terms of price.
Pricing or if it just seeing if there's a different bidding activity in November and substantially the same submission.
Both [laughter], we're doing both so so each each around we are looking to.
The size of the round in July it was 250 in two in November. It was 500 the situation is different because there was there was some some project the.
Which were.
Those in term of the of teaming with renovation during the long down. So all those things you are taking to account or the formation that we can get.
And we.
We were probably one of the first who did.
Did not win in July.
Between new in July that there would be another round in November so soon.
To answer your question, we have been a little bit more aggressive in term of reducing the price of the bid.
But still.
Above our threshold of return.
And so we are we are where we have the we have taken all the information. We had we had we have from November.
Excellent. Thank you for that and I'll Echo the congratulations and best wishes for for Patrick America's retirement and to you Patrick.
And your new role.
Thank you David.
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Your next question comes from Sean Steuart from TD Securities. Please go ahead. Your line is open.
Thank you good morning, everyone.
A couple of questions.
Yes, the year over year EBITDA.
Transition.
There was 6 million.
Positive EBITDA trends in the wind segment.
That you attributed to a variety of other factors that included currency repatriation of maintenance number of other variables can you give us some context on what the principle drivers of those games, where this this quarter.
Are you talking about the EBITDA on a combined basis.
Yeah.
Let me just cut back too.
Thank you.
So they call afterwards.
Yes, I think we'll follow up afterwards, I need to get into the the Devon.
You have another question I, often get the yet to get the right time.
There was a reference to the ongoing efforts to secure corporate Ptcs in France in Scotland, and I'm wondering if you can give us any update on developments on that front.
Yes, I will in France.
As you as you know we have we have secured two corporate PPS or ready for project, which are Uh huh.
Meeting the SPP by the end of the year, there's still one project, which is coming.
Dislike of Kugler eight megawatt project. So we were we are working on this and we are in advanced negotiation for whom this project with another interesting.
Global Corporation, so that's good because.
It.
Create the trademark of the branding of the highlights in this market.
And then we have no other.
And off contract in the short term. So we don't have electricity available to be sold.
And in Scotland is in the two to finance our line killed project.
We we need to have somebody buying the electricity. So we are looking to us to that than the and working with comfort core is that nothing to announce today, yes.
Yes.
Okay.
One last question for me and.
And I presume is all factored into your your timeline of of.
Dancing your your development projects, but.
France is re entered locked down and you referenced earlier, you're able to catch up on.
Construction activity there posts initial Colgate wave.
It seems the country's gone back into lockdown.
Any perceived risk to that the timeline of the developments in the near to mid term as.
As the country tightens up again.
Mhm.
Yet despite despite the figures off of the.
The health to.
Well the situation the lock down is not exactly.
Exactly the same that the first the first way.
I mean, there are still there.
People, who are able to work from home should work from home but.
But some other other activities are still there and we are.
Typically in the first wave we have to stop.
The construction of Shoals and saw that and this is why we had the deal. So the answer is no. It's a little bit different so we are working.
Protecting the health of the people respect in the loop, you see and being a good citizen corporate citizen, but but there is there a possibility. So we're working on that and also we are I have asked my team to see.
Put you in the idea that it will last to say two years, because it's also a possibility what should we do should they are working on this.
And I hope as I.
I mentioned I hope we will have.
Some more information to give you a later about this but we need to to work around the situation.
When we.
Understood.
I think thats, all I am getting back to your previous question.
So on a combined basis the.
Main impacts from last year to this year our volume.
Volume.
So the increased volume as we mentioned Buckingham impact she also talked about the new.
The new assets are put in service and any other sort of type bucket there's.
There's currency yellow calls on pricing, which I mentioned as well.
And that is the maintenance intact.
And.
These would be the.
And then some some change R&D.
On expenses.
Huh.
At that are different from last year.
And that would be the main impacts.
Okay, Yeah, I was referring specifically to the wind segment, maybe I'll follow up after the call Steven.
Thanks, very much everyone.
Alex you after the call. Thanks.
Your next question comes from Dennis Pham from BMO. Please go ahead. Your line is open.
Okay Thats good morning, I wanted to ask on your your issues strategy that you are you planning to put out early next year.
Is it taking that say, hey, you will be able to provide.
Long term goals.
On the issue here is or is it just more an update on.
Catching up on the historical data point.
On your sheet.
Okay.
Thank you and we will we will do both but we have the.
We will definitely disclose more information because.
I think we think we're not.
Fairly.
Measured today, because we're not disclosing it's our our question were not disclosing to you and the market all the things we are already doing.
And the and for long term objective we have for this is typically things we have still to decide.
During November and December, but we will and we will disclose some objective that we think are the more.
The prior which will be the priorities of biological the next the next three years.
Okay, you really catching up on that okay thats good to hear.
And then on that.
The the U.S. our acquisition that you filed for.
Kate if you get approval in December is that when you update us on on more details or is any any other sort of.
Requirements, we need to get confidence on cannot go down.
Just to clarify this point, we have active discussion with on the possible acquisition of accessing a possible acquisition. That's why nothing is disclose yet so.
When the if the conclusion of the discussion that we have comes out positive will that will inform a you like we usually did in the past so.
So this is in the this is only this is a process.
The discussion up to this point, but its more active than a them.
Than usual exits.
Okay, and I thought I saw some sort of sale agreement or is that or.
Is that just not signed yet or they are just centers theres more.
This in more detail.
Details on that you need to flesh out.
I think if I may on this one.
I think we'll leave it there not like Patrick mentioned.
Well comment when we'll get there.
Hi are at this point thank you.
Your next question comes from Mark starting from the ITC. Please go ahead. Your line is open.
Yeah good morning.
In the last RFP in France. It seemed like there was a higher proportion of our solar projects that were successful in an average price came down.
I'm curious does that shift your positioning in expectations for securing more rain or maybe trying to pull forward or solar development efforts.
Okay.
Why.
Just one point.
The tenders are either for wind or solar so it's not the derrick they're not mixed in.
Indeed in wind what we see it's a we can achieve.
Better return from our experience of the last the last different realms.
But.
But the and there was probably also a reason why the price of a win has gone down in July and will probably go down also in November.
Because.
You remember there was six round off 500 megawatt and the last one was November so next year that would be right.
Rounds, two rounds of 925 megawatts with higher demand.
But we don't know exactly Im speaking about with we don't know exactly yet what will be the.
Entry rules the bidding.
And.
So so so should this reason for some competitors.
And two to be more aggressive in terms of reducing the price and when but I think my view and our view is that the.
Solar like I think in every market is a little bit lower than wind into your mouth.
Of return, but there are some reasons for that because the risk is different.
So we are we are continued to focus on wind and solar.
But just given the.
Continued decline in solar and the proportion that went as Hillary last round. Just just curious he thinks that that shift continues more procurement starts, meaning more and more towards a solar or wind.
Or do you think theres the your outlook for us per win is a steady as you would have thought a couple of years ago.
Yes typically.
Our.
Our solar we're focusing on on more on solar in New York State, we choose to do so.
We think it's the best of the best this sector technology to be there.
And in France. As you mentioned you had for long experience in wind and as I mentioned the returns are better than in solar. So we think that you're too, which I'm not saying we are not doing solar and trends. We are doing we have some in the pipeline, but we are more definitive introducing them on the win because it's.
It's it's a better return for us.
But solar is very important as.
As a corporation because its very complimentary to win.
She compared to.
The revenue as you compare the annual variability to compare to cost it's very interesting to be two to two to have an exposure in both.
Nothing I mean, one of the technology.
Right.
And then there are some.
Reports about some retroactive feed in tariff cuts in France.
Meyer had it only applies to solar but can I just confirm if there is any implications and of your assets.
If they fall through with that.
Yes, it's a it's very specific to a certain period of solar.
Feed in tariffs in trends.
So it's not material to the helocs, because because we have only one five megawatt.
The C assets, which could be affected.
But to be it's very clear that it's not doesn't apply to any any win this has been set by the moves to reduce as being read to read by the minister.
Bob will be so we think it's the.
The risk is very limited on that so no.
No this quarterly report.
Okay and my last question is just on the increased efforts around your SSG disclosures. So you get a sense that with improved disclosure as it increases your ability to look at your green financing or are some of the initiate basis for that is there.
An added financial benefit of adding a compare disclosures.
I think it's the first point is this to discuss reality of the of the Holocaust and nowhere experience. The way we are we're doing over business thing.
Thing.
I am personally with the company since 19 years as you know and I think since even before I was there yes GE was the Brendan what was already in the DNA of the company. So thats the first point.
I think it will attract some investors, which are which which need to have information. So thats also important for us to get them disinformation and it's on top of this we have access to new financing them sure. We know will the will take the opportunity with this too.
Right.
Okay, Great and then Patrick when our again graduation retirement.
Thank you. Thank you.
As a reminder, if he would like to ask a question. Please press star followed by the number one.
Your next question comes from Nelson Ng from RBC Capital markets. Please go ahead. Your line is open.
Great. Thanks, and good morning, everyone. So just a big picture question.
What are your thoughts on it.
Taking a bit more merchant exposure I guess, we've seen some other developers.
Work on merchant projects in Texas, or Mexico, or even Alberta, just wondering.
If your thoughts have changed in terms of either take.
Taking some direct merchant exposure or to develop a project with a view to hedge or get.
Corporate off takers for for part of the the generation.
The first point, it's clearly not our focus on.
On bottlenecks to have the merchant exposure.
We had the we are working in.
In a more.
Market, where it's possible to still signed long term contract uneven.
We mentioned it I think the the fact that the New York State the fixed directs contract will be converted.
Converted into.
Index, Rick spoke truck is even better because it reduces the risk and you have the full contract of 20 years with less risk. So.
Typically we are we are concentrating our efforts.
On this.
And and as I mentioned in Scotland.
We have they're fully permitted project, which is a significant one line to make our way and we are working to create value with it.
But we are not we have we will not decide to go merchant on this project even if its a.
You can see okay, just nine person of bottlenecks portfolio, but we're not doing this we did the strategy.
Yes.
Worse, Okay. We knew if you have any comment on this.
You can go so.
Hi, Thank you mentioned the fact that it's the core of our strategy.
Getting getting long term contracts, we also from a financing perspective, it certainly yeah.
Which we do quite well.
And that will continue.
Prioritizing that.
Okay, and then just a follow up.
Hi, Mike.
Given that you are pretty active in France, and a New York Hey are there other markets that offer long term contracts that you're currently not involved in that that interest you.
I would say today into March of Greenfield development, we are concentrating our efforts on this.
We are also.
Looking for opportunities.
In other market. If there is long term contract and if we can access to long term contracts.
So where we will continue this and we will then if we are successful somewhere we will tell you where we are successful they would where we will continue to to go for a long term contract.
Okay, that's great I'll leave it there demonstrated a we've talked about the potential of the markets. We already are involved and so there's there's a quite a bit of room to grow there.
Thanks.
Okay. Thanks, a lot.
Thank you Vincent.
Your next question comes from Matthew Beydoun from Industrial and Securities. Please go ahead. Your line is open.
Hi, Good morning, just maybe going back to the question on the retroactive or.
Fit the contract cuts and fronts I know it doesn't apply to tier assets or the one portfolio, specifically, but that doesn't change our view on sort of the risks and that market.
And maybe the flip side of it do you think there will be an opportunity to maybe pick up some distressed assets if those cuts go through.
Yes, there are two questions. The first point it doesn't change our view.
Typically.
It's easy today to to make busts restaurant rationalization, but I can tell you that.
10, 12 years ago, but could come and myself, we discuss about developing rooftop integrated solar at 600, you a megawatt hour and we decided not to go this market because the difference of price between the electricity price in the subsidized price was too high and that we are in electricity producers in the.
Subsidies I don't know to see get or somebody who is just looking for subsidies and today. We are happy with that we are not exposed to where exposed with a 310 30 years.
You Rupert megawatt hour for five megawatts as I mentioned, so it's not material some.
Some competitors are it could create some some difficulties to some but that and obviously we will look to this there was a.
If you go back in the past in 2012, there was a lot of discussion about the European Commission Nuc station on when we took the opportunity to make some some some acquisition that time, so we will look to.
There are some people who were under stress for sure.
Okay. That's that's good that's helpful.
Can you just comment maybe on the recent partnership with the civil Ultera in France.
What are some of the maybe details behind that.
Partnership.
With with the which you mentioned.
Solar capital.
[laughter].
No.
Thanks to analyze it.
Right.
Sorry, I didn't catch that.
What are you referring to and just there was.
Social as a social media post about partnering with Sola Terra to co develop some solar projects in France. So just wondering if you can give more details on that.
Yes, I know, but it's we have we have some co developing in wind and some some solar I was not aware of the social media disclosure.
And so I'm, a little bit uncomfortable to to answer your question.
And depend will come back to you and now she on this speakers.
Clear to me what do what it covers.
Okay, No problem and just a final question for Bruno.
You know the payout ratio and I know, you're still targeting 40% to 60% I. Just you know if would you be okay. If temporarily the payout ratio was sort of below that that target range is the right growth opportunity is where it's at present themselves.
Well.
I mean that.
We're comfortable with that target energy and we'll see let's see how things evolve in the next in the next few months.
And.
We continue to see strong a strong conditions.
We are seeing quite a bit of a.
Opportunities sand.
And.
Does that ratio was set out to to allow us to reinvest money in the company and the growth, which we believe our shareholders appreciate.
Dipping below the ratio on a temporary basis, yes, silver over a sort of medium term, we'd like to stay within their ratio. So.
We can now.
Draw your own conclusions.
Okay. That's helpful. Thank you.
Thank you.
We have no further questions in queue I'd like to turn the call back over to the presenters for any closing remarks.
Okay. Thank me.
I think a minute.
Sorry, I was just going to introduce Patrick just wanted to say this is Patrick.
I think last call. So oh that end up my guess.
Uh huh.
Yes.
This call will please go ahead Patrick.
Oh, you can do the m. after that but I just wanted to know just like Steffan mentioned that this is my last call. So I wanted to thank you all.
For your contribution to biologics success or because by doing.
Doing you will report to the investors community and also organizing organizing meetings with investors is a thing you you you have contributed to the Baltic success over the last 14 years and I just wanted to.
I see a big bank and ER and I'm sure you'll contribution will be greatly appreciated in the future. So again, thank you and then to Houston.
Yes. Thank you congratulations on that.
On this new.
Hi, Jeff.
LNG about this.
Your life for you Patrick and there again, we are and.
Great Yeah.
Thank you from Us Oh for.
For sure I think you've heard the thank you. Thank you Patrick well done okay. Good good a job and so everyone I will oh.
Thank you for your for your attention and if you have questions. He called me and just wanted to say that next call will be February 25th or a year and then acquire results. So.
Are you there.
And then LT I have a great day.
Thanks, a lot.
Good day, ladies ladies and gentlemen. This concludes today's conference call. You May now disconnect Blackhawk helicopter has does not even today my question Jay.
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