Q4 2020 Enel Chile SA Earnings Call
Good day, ladies and gentlemen, and welcome to Enel, Chile fiscal year 2020, we sold the conference call. My name is Carmen and all day.
And operator flights a day.
After the Speakers' presentation, and there will be a question and answer session to ask the question during that session you will need to press star one on your telephone. Please be advised that today's conference is being the quoted easier required any further assistance. Please press star and Sierra during this conference.
<unk> call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties actual results.
They differ materially from those anticipated in the forward looking statements as a result of various factors. These factors are described in Enel, Chile press release reporting its fiscal year 2020 results. The presentation accompanying this conference call and Enel, Chile, and I'll report on form 20.
S, including on the risk factors you may access our fiscal year 2020 results press release and presentation on our website www Dot and now T O.
And our 20-F on the SEC's website Www Dot S E C dot Gov.
Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their day and they'll Chile on the 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 except.
As required by law.
I would now like to turn the presentation over to MS. Isabela climb and head of Investor Relations of Enel, Chile. Please proceed.
Good morning, ladies and gentlemen, and welcome to Enel, Chile four years 'twenty results presentation, and thanks to you all for joining US today I Hope you find you and your family is doing well and and stay healthy.
Our presentation related financial information are available on our website joggers and that adopted daughter and now docked yeah easy investors relations section a replay of the call will be also available and there will be and opportunity to ask questions. After the presentation via phone.
Or the channel to the link I ask your questions. Joining me. This morning, I was CEO of power Almaty, and now our CFO Peter County, and then.
Following my follow all of the we will open the presentation with the main highlights and business and target. The engines that we walk you through our financial results and the operation performance. Let me remind you the medium bird of TC time zone called magnet only in the eastern and moves and.
As always our and our team will continue to be available to provide you with finding the same information you may need concerning the zinc.
Alluded in his presentation. Thank you all for your attention and now let me handover the call to follow.
Thank you for something of that.
Good morning, and thanks for joining us.
Let me start with the main highlights of the period on slide number two.
The left here was the challenging one at the global level of.
The consequence of the colby's outbreak with reference to Chile. According to the Las Vegas to meet the Chilean GDP decreased by 6% during 2000 range.
Just to get the Martin country of it was.
Most of our marketplace.
These reported by symptoms cyclical like the amount of interest.
And so some of the accounts and so if the Cds and some of the decrease was double digits.
Despite these unprecedented expansion of.
Our operational and Im sure and the luxury of seasons and the inclusion of sport.
Yeah.
Yes.
The continued support.
To our clients.
Lots of Tonight, we have decided to review our guidance for 2020 and adjusting to the new market the conditions commodities volatility and implementation of lockdown measures and several of the regulatory adjustment that the word and price and our estimates.
With the consistent they're forced to do all of our comp of all of that company. We have achieved our target on adjusted EBITDA and the kingdom, reaching amounts over one point too easy on the end points.
<unk> 6 billion dollar so to speak of.
We continue to be forthright and missile and the carbonization advancing in the discontinued all the coal facility accelerating at the same time, the renewable capacity additions to day, where more than one three gigawatts of generation for erection projects under construction.
We continue to focus our actions to fight climate change, we have already announced and one of our ambition targets to each of 64 per cent reduction and that was bought in Q2 of emissions by 2023 compared to our electricity generation business in 2017.
Meaning that and in Chile is committed to making the roughly 90% of <unk>.
And increasingly generation carbon free.
Our efforts is reflected in our ranking and several ESG indexes and we had been recognized as one of the best performance in Latin America.
Finally regarding our views of the policy and our board of directors, we propose of it I'm not sure of the meeting and eventual dividend of approximately $3 $9 per thousand shares to comply with our strategic plan and to avoid the accounting effects on the of the this couple of musician forces.
And will affect our shuttle the remuneration.
Let's now have a look at our May 2020 Toussaud's.
I have already mentioned our.
Our adjusted EBITDA and net income were in line and with our 2020 of the revised guidance.
And capex deployment, despite the effects of the locked down net.
The several areas of where our projects are located and the delight and middle east of amused by the processes for the oncologic of burdens.
<unk> been able to advance and the construction of walks and malware working sites doubling our capex over 'twenty and 'twenty versus 2019 guarantee at the same time, the safety of all of people and contraction of the field.
Finally on the Echo organization, we successfully and explore the first unit total book of meter contributing to the the minus one five degrees.
Sure.
And making and achieve the most advanced company in the Cole organization process of the couch.
Let's now move into the some data that shows the consistent people lowest outage.
Sustainability is the backbone of our strategy aimed at the kind of a musician and LTV cash of over the final consumption.
Our plan is accelerating the energy transition share with our compromise to our stakeholders and.
And it's delivering sustainable value for.
During 2020, our company through the score in all of the main ESG ratings, maintaining the positive trend of the previous year.
As you can see these approach has been reflected in most of the main sustainability indexes of.
And of Chile, as being distinguished of Prime by the ISS USG and as the receipt of silver plus the rating and this was going the ability your book of poems tend and the boost global.
Meaning that our company, we've been one per cent and 5% of industries, most sustainable companies worldwide and.
And then Chile is the only Latin American utilities, located and debt position.
Listen all of them.
And more details on our discovery organization strategy on page six.
During 2021, and we will consolidate our position in the Chilean market, reaching 70% of.
The renewable capacity within our portfolio of generation assets. Our team is focused not only on the execution of this project, but also on sizing the opportunities thought of and getting the best features and developing new project and seeking sustainable returns.
Of the reference today.
We have more than 14, gigawatts in our pipeline and different stage of development, which gives us enough flexibility to continue our de carbonization and dirty skewing, our generation portfolio from commodities and the hydrology.
As an example of debt we have been recently confirmed debt after a competitive bid process of organized by the minister of National assets.
And what award awarded over $2 5000 hectares.
And the development of new solar plants, and the storage systems expected to contribute with more than one thousands of and 900 megawatts of clean energy to the accounts.
And you will see during the year.
We continue to strive and opportunities and the market coffee and with our target to reach net zero emission by 2015.
On page seven you can see more details on the status of each project on the construction.
Today, we have more of them one three gigawatt in renewable capacity under the construction.
The average the over across the sort of approaching total to more than 50%.
The large part of our project already and you keep.
And we're keeping it at the site, which reduces the need to given the risks of material supply.
And we'd like to get more details on the FERC.
Approach of the Chile, and the badge the <unk>.
And 61 megawatts of solar project.
Located in the same size of the wind farm of wireless deals of the answers.
We have finalized the connection of possible the solar biomass during December.
The CPU works and the balance of plants are expected to be completed during the third quarter of this year of the.
<unk> is an example of I believe the initial proceeds and.
And which we are increasing the efficiency.
One of the lead the usage bring more competitiveness to our portfolio.
And the solar project for the <unk> domain accomplishments or are expected to be into operation during the third quarter of this year.
During the mid scores and we'll continue to keep you updated on the status of the construction of our approach.
Cedar and generation, let me go through our main fourth quarter and industrial Kpis on page eight.
The total net production for the fourth quarter increased 4% amounting to $5 three terawatt hour.
Mainly due to hydro generation, reflecting the positive melting season of the last quarter of 2020.
In terms of energy balance.
As a consequence of lowest book price, we remain and next book value of seeing the market with the fortress over the last two terawatt hour I get to them the fourth quarter of 2019.
Our physical energy sales.
And.
We increased 80% all five of our maintenance played by <unk> seven kind of update.
Sure.
Free market sales, including spot sales as part of our strategy to capture and new clients and the west debt recently immigrated to the free market.
Partially offset by minus <unk>, three terawatt hour lower demand from distribution companies primarily related to.
And to the elimination of the regulated PPA to <unk> sales and the Mezz Securities and 2006 option.
And the lower energy demand related to the lockdown measures established and different cities and the accounts.
Now the full yesterday the us on slide nine.
Net production for the full year of 2020 decreased 80% amounting to 19, three instead of a double dip.
Yes.
<unk> 2000, 2019 came mainly for all of them minus nine terawatt hour of lower generation in our either board plans, reflecting the very growth the first ultra and.
The <unk>.
Minus.
The $8 or lower thermal production, mainly in our core file of plants due to the closure of all of that up a couple of the plant in December 31, 2019, and the impact of the lower system margin of course.
And the year, and we remain and net spot buy yet and the market with the total purchase of three six per hour dollar during 2000 range. It.
And can be willing to glass of one two terawatt hour of items in 2019, mainly due to low at low hydrology and lower margin of course.
And the other and.
Our physical sales decreased 2% of six throughout all of our maintenance and pay by minus one nine per us dollar of lower demand from distribution companies primarily related to the elimination of include the ppas websites and the value and the lower national energy demand associated to lockdown and economic the restrictions.
This was partially offset by the loss of one three terawatt hour of.
And I guess free market sales and.
Including the spot us the buckle.
Our strategy and the free market.
Now on Andrology slide 10.
We the restaurants to our Idaho power generation business, we are presenting the coordinate the rainfall for our most significant lever billings Mont Belvieu and Alaska.
And the chart you can find the new metrics the green line debt.
I like the average cumulated rainfall over the last 10 years. Since now we will include these newer trends and our materials.
With regards to 2020 performance have been filled with of course of Covid and driving force in June and July hydrology and water.
Rather the board during 2020, Meg and seasonal.
The fourth quarter 2020 was slightly above the same quarter of 2019, explaining and better performance in the periods and.
Therefore, our hydro generation was 5%.
In the fourth quarter of $30 range, which led us to reach six debt.
Dialogue of either of innovation during the second batch of 2020 meeting.
And we have anticipated during the nine months 2002, and two the stock conference call.
Reflected 21 based on information available today.
Modest range for our expected considering the current condition according to the linear phenomenon.
Debt will remain in few of the second quarter.
Nevertheless, the.
Pacific time furniture.
Moving to a natural the condition duty southern winter.
Which should imply an improvement of the rainfall for the second semester of 2021.
During the last week and review of the regulation on the professional of the LNG and the country is under discussion.
No.
And considering the volatility of the approach that has been experienced moving the recent years and deliver the stability.
Is it instead of the source it is important to avoid frequent detection in the current availability of gas and this.
This may create a situation where the overall cost of generation and will incur.
We the dispatch of more or less efficient and <unk> brands and these are the opposite of the content growth on big amortization.
Now net or business line on slide 11.
Energy distributed in the period reflects the lockdown measures in our concession area.
Slightly offset by the increase and the household segment consumption.
Our customer base continued to expand.
During 2020, we add the increase around the 36000, new clients 50.
The $53.
And our residential 2000 Commission.
Exceeding the 2 million clients by year end.
And the quality of the book to offset which is we continue to improve our site and sales.
Indexes performance is associated with investments made and our concession area. Despite the of logistic restriction that we face and and the digitalization of our networks.
The effect of the social and the rest at the end of 'twenty, the A&P and the pending explained the point.
Two basis points increase in the total losses.
We continue working.
The recall these kpis to vertical level.
We continue to improve the disposition of our services to provide more efficiencies and the GDP net improve our customer hub.
We supported the rise of digital interaction from 16% and 2019 and 52% EBIT range as of December and the solution reached approximately 400.
And 50000 can downloads, 72% highest day and in December 2018, the cumulative figures, we are feeling that the digital choppiness of the <unk>.
Any way to communicate with our clients.
In 2020, we also forced to enter the growth in digital and payments as we show on slide 12.
The increase of digital channel and the new payments agreement and executing day in 2020 supported the collection levels maintained at 97% versus historical levels of <unk>.
And one other person.
By December 30, <unk> and executed almost 83000 agreements with clients, which has been supported the decrease in bad debt.
The sector, we saw it.
On average we executed more than 1 million contacts with our clients during the last quarter food that of Gold's SMS and the communication challenges.
Moving to analytics and electrification on slide 15.
Despite the COVID-19 pandemic outbreaks and the accounts, we continue to consider that our leadership and relate to mobility and electrification and.
The 2020, we secured new contracts on public lighting.
Upgrading the lightening infrastructure, we lead and being more efficient system in favor of the local municipalities.
Mobility, and 2020 analytics of signed partnership with Mcdonald's you debt.
And Sean Saba consistent of our into the play out among.
Among others to continue the development of the electrum the approach.
To date more than 22 partners of joining the dots and these initiatives.
Additionally, as in the leaks.
We are developing the first project with the retail sector and the last mile logistics boosting E trucks, and Chile, reaffirming our commitment to the energy transition toward the use of clean energy and transportation.
And 2020, we also secured new contracts and larger real estate groups to provide energy efficient solution base on the industrial fourth quarter, and industrial services and new charging infrastructure for day approaches.
Louisiana, we are promoting several projects with mining industry.
The use of such as of the use of the.
Electric buses and combining with the solar energy and the storage charging systems.
The first project.
And the mining segment of develop with Anglo American and will begin operation and the next few days.
Finally, and thanks to the agreement with other public and part of the partners.
All of the companies participated with and that we continue our effort to promote efficient.
The substitute the use of wood.
For the eight to keeping and reduce optical emission.
<unk>.
8000, the bodies have been installed since 2017.
And we estimate that these are all 37000 tons of <unk>.
We went through the year.
Now to conclude this part of the presentation of quick view on the main regrowth of the discussion ongoing on slide 15.
Starting with the dilution on Covid contingent fronts in January 2021, the basic service.
And extended from each region of China is to support the most of the order book Alliance for the more extended period.
The low intends to support.
The volume of clients that have the option to postpone and the request of the payment of database with up to.
36 installments without interest.
The low volume until the matrix.
And good benefit to the level clients, which our company already blown through your phone before the low approval middle of the low keeps with some spansion of services cut and sew discussing the as most companies other institution and all of households.
As of today, we have almost 21 9000 agreements on the basics of the slope and an additional 29000.
Voluntary programs.
On net Dork diaries.
On distribution we have.
But the government shower percent its final report during second quarter 'twenty one.
Followed by a final report from the.
And I will go to the report on the bad debt, which can be challenged in the.
The expert.
One is east of.
Consequently, we expect the the needs of the final distribution dies retroactive to November of 'twenty to.
Severely in early 2022.
On transmission of <unk>.
Moving into the transmission outage cycle of 'twenty, two and into 2023 by the second quarter. We are expecting the regulators of the report which can also be challenge in the expert panel of <unk> plus.
Transmission service and decrease our expected to be published by the fourth quarter in the.
2021.
Moving to slide 16, and other recent updates.
Non tariff stabilization mechanism.
Moving the 750 20 direct book.
<unk> by the Chilean the Energy Commission shows that the total balance of cooler and the destabilization mechanism. Both us eight under the $56 million for the entire Tdm markets as of September 2020.
By the end of December 2020, and the <unk> imbalance total around the $360 million.
And the heavily this year.
So the accounts receivable generated by these mechanisms were executed with Goldman Sachs and diabetes.
Total and around $290 million nominal value of <unk>.
First tranche of around the $90 million.
As already cash due in February of this year.
And the rule on energy efficiency has been recently published.
And we should the government defined the regulatory for a multiple of the rational and the efficient use of the average.
And this new rule the government established set of growth on energy efficiency.
The implementation of and management energy system for electric license or requirements were all of the EPS target and layers all of the energy consumption as we currently have in the Eric the.
Quality.
And our view this is an important initiative that Chile is getting towards the energy transition.
And does that assay and.
And we are prepared to support our clients and their needs to comply with these new low.
We are now in the open public hearing phase of the process and the expectation is that the growth.
And the regulation related to the implementation of these low <unk>.
And I will be published during the season.
Now I will and over 2%.
And.
Yes.
Ladies and gentlemen, please standby your conference call, where we sell and momentarily.
Ladies and gentlemen, and place them by your conference call will resume momentarily.
Okay. Thanks Paolo.
Some of the summary of our financial highlights we should be and go through retained and the following slides, but the first let me explain the investment we made and our figures for both 2019 and 2020 periods.
As Paolo mentioned and before we accomplish the goal of EBITDA and net income committed and our less strategic planks of 'twenty made Dean we have adjusted the EBITDA and net income excluding and the PPA early diminishing effects and the mix the impact of the impairment on the book I mean of one instead of a GAAP our planes.
For the 20 Sweeny, we've adjusted the bid documents the income considering the effects of rising from the impairments of becoming the two power plant assets and that's kind of consumption associated to book the limits of a book of Mina and there's an efficient vessel and costs. All the details of described and the bulk of one of the lines.
In the following slides I will address in more detail each of these figures.
The current limit start giving you some.
David about the EBITDA and bottom line net of Covid impact on slide 19.
Net of of Covid, the any of our adjusted EBITDA would have been around the 100 million go a lot of higher than the 'twenty and 'twenty adjusted figures, reaching a total of 1001 the $82 million.
Factor behind these are $89 million relative to the reduction of demand impacting our sales in both the solution and duration business net of energy purchases and the.
$12 million, mainly related to the higher energy losses ex the dominion customer care costs, the other day, but needed to face the contingency and analytics and lower activities moving down the book net loss, we recorded the negative impact related to the bad debt provision of $9 million.
Mainly driven by the temporary extension of historical collection volume.
Therefore net of COVID-19.
And 19 hour train and Carina adjusted net income with debt reached 6000 and pulling demand.
Now, let's go to our Capex on slide trainee.
And the poor Q Tweeny, our capex reached almost $380 million, mainly due to development capex debt reached around three and the mean underlying the billing and consequently, our total capex for 'twenty and 'twenty amounted to $971 million allocated as follows.
Estimate of Capex for a total of $61 million.
The 24% increase with inefficient investments allocated to build convention to new customer associated to the increase and our client base and the improvement of our commercial system to guarantee of better interface with our clients and the efficiency and our internal commissions processes.
Asset management Capex reached one and then $11 million Tampa and lower than 2019, due to lower and maintenance activities and qualify the unit of book and the lockup and lower the positives of spare parts for maintenance activity and some of the their own ingredient premium and <unk>.
Reschedule activity and our distributions.
As of December 20 training development, and Capex reached almost a downgrade and Donna Fernanda.
544, you know Qiagen, and then 2019, largely driven by the renewable expansion and development of our distribution business to contain the digital edition of a lot of network.
Let's start with the Q4 adjusted EBITDA breakdown on slide 21.
Adjusted to four and one EBITDA of 17% bad debt than last year's figures mainly due to.
Improvement on either one of the Guy condition do the.
The amount and season, which increased our idle generation by the 0.1.
The key volume.
Two a positive impact of a million dollar growth.
Both of the PPA margin effect of $24 million debt includes the impact of commodity CPI and effects on the PPA transmission costs and lowest of price higher.
Higher revenue from ancillary services for $10 million in order to provide safety and quality and safety.
And the positive effect of $16 million, mainly explained by 6 million dollar and lower Opex and our generation business $3 million coming from higher depreciation of the local currency versus the U S. Dollar related to the translation of the U S dollar denominated loan and our functional and caring.
It is in pesos.
Sentiment on.
The bulk and transmission of account of previously booked in the book, partially offset by higher total 16 out of distribution business.
Let's now move to according to the figures and I think on page 22.
Our adjusted EBITDA.
Adjusted was stable when compared to 2019 and include the.
The following main effects.
PPA margin positive effect of $125 million debt includes the impact of commodity and CPI and effects on the BPA and transmission costs and lower the spot prices.
And ancillary services Arabian for $3 million and type of monetization with the positive impact of 2016 of them.
All of the the factor were offset by the following items.
Lockdown measures net.
In fact, the initial demand net of possibilities of both generation and distribution business by $53 million, mainly related to the COVID-19 pandemic effects of.
Lower hydro generation impacting our adjusted EBITDA and for the 2 million dollar.
Sales of six and energy categories. During the first half 2019 debt.
That wasn't the executing this year due to the low lower the price of commodity and the international market with and impact of 26 million dollar.
Lower EBITDA of $10 million and the lag due to the electric buses incorporated and the public system during 2019 highly.
And yet the precision of the local currency.
Versus the US dollar of over $34 million related to the translation of U S dollar denominated loan and never goes and lowest $70 million.
Mainly due to higher energy losses in distribution business and provision of effects of the Indian distributional value.
And slide 23, and ensure the summary of the past four months of our origination business.
And clothing, and anything else in Chile, and and and empower to Chile.
The main variance is between the period of the winner at the in the previous Slide Let me remind you that between the 20th adjusted EBITDA basis.
Maintain and adjusted EBITDA by the PPA early termination and increased by 8%. Moreover, I would like to highlight that our generation of adjusted EBITDA margin.
Reached six.
5% in June 2000, and training and 52% and the full year.
Still the 2019 people spend plus by the yearly the mutation of debate.
Now on the distribution.
Network.
And as the business on page 24.
Q4, 2020, and adjusted EBITDA reached $52 million.
Our 29% the lower compare.
And in the same period 2019, net due to $5 million non lower energy consumption and both regulated and claim assets clients and the results of lower of Lockdown measures applied by the governor and to contain the spread of COVID-19.
For a million dollar value of the energy losses, as the result of cutting OTC registration.
And COVID-19 effect on economy.
Hi, net opex in order to maintain the imagery and the distribution of activity, which amounted to $8 million and the cost and provision of the effect of the new the submission of the type of quarter.
And finally analyzed yet.
The top section the following the previous effect.
On the accumulated figures the EBITDA was lower by $64 million, mainly due to.
One of the legs and negative impact of $8 million, mainly due to the.
Emission of 183 E buses from the percentage of a true.
Which were incorporated in the public especially from the system.
On the network up and reduction of $56 coming through lower demand.
Hi, net energy losses.
And their opex in order to maintain the 60 million debt.
And provisional and of the effects of the new distribution tariff book.
Now.
On slide 25.
Let's go through the main driver of our growth maintaining them.
D&A and bad debt reached standard and $10 million advance of 2 million non lot of me and related to low MD&A in and and ASEAN, mainly due to the wrapper and book I mean, a power plant and during 2000 and pin and in.
In 2024 simple.
Partially offset by higher depreciation and in Egypt, Chile due to the devaluation of the Chilean pesos and.
Bad debt provisions, mainly due to COVID-19 outbreak highly.
And yet the position of the distribution business.
Due to the idea of investment.
The impairment increased by $527 million, mainly due to the bottoming of two book in June 2020 related to the power plant closure and scheduled for May and between the two.
Actual results total and expense of $142 million and a decrease of $49 million mainly due to.
Lower average cost of our debt at the Ritz.
Some of the negotiation of Egypt is debt free.
And and finance International law.
Lower net debt net financial expense.
Coming from the accounting impact.
Of the energy subsidiaries of maintaining and duration profile and higher capitalized interest.
And any related to the development of renewable energy project of.
Set by the exchange of different views of the depreciation of foreign exchange rates the in 'twenty and 'twenty.
The results.
From equity investments increased mainly due to the sale of.
And there are some risk that the French online and the cemetery in between.
Income taxes and minority reflect the impact of relative to the book and have two impairment and the merger of our gas at that time on Chile.
Chile into and and financings unit and 2019.
The adjusted full year 2020, net income of results reached.
$560 million, 9% higher than last year adjusted the themes.
Moving and moving to cash flow on slide 26.
2020 assets reached $1 billion and 67 million.
Millions of dollars higher than previous year.
Mostly due to higher net working capital mainly explained by cash management action of around $150 million and the last quarter. The buses sales to Asia, and then B catheter, which total around $100 million and other networking.
But the initiatives had yet of LNG payments in 2019 versus 2020 of 69 million dollar, partially offset by lower receivables due to COVID-19 of around the $100 million.
Lower income tax during 2020 explained by the lower results of the company and due to the the carbonization and resolves the backup backup.
And our clients and that's been and postponement and the consequence of government Covid program.
And Lo and financial expense, mainly explained by reduction of it and the interest rates of intercompany loan between the GP.
And if he and low and database company compensation and in Egypt.
And in Afghanistan.
Let me now growth through our debt on slide 22.
A lot of gross debt increased approximately by 400 million dollar basis, 2019, due today and and fit and your funding with the free to finance, our the Carbonization plan.
And upset by the amortization of Nx and essence and the PGP debt.
As the result of our net debt.
As of December 'twenty, and 'twenty compared to 2019 increased $254 million.
The average cost of our debt was reduced from five 2% and seven 2000 and deemed to five 6% as of December 2010.
So winner and important improvement and our financial condition and the results of our Costa as force to optimize our financial and expand the average term of our depth is always six six.
<unk>.
Finally.
On our debt amortization of life's journey.
A third in terms of liquidity and maintain the level of $1 billion, enabling us to finance, our Capex plan and have a comfortable position to cope with the current economics and I.
Our debt amortization and you can see and the line.
However, we remain a very smooth.
Now I will and dollars.
And now.
Okay.
Thank you and the setbacks.
Let's go to the closing remarks.
Okay.
Despite the challenging circumstances, and the Chile confirmed its resilience and the strength of which the strategy continue to push for fleets and clients of the cannibalization and.
Consolidating the leading position electrification and the renewables and Chile.
The building to the fight against the climate change per hour.
The clients will remain at the center of strategy and.
The business line, we continue to focus on client needs and support them and the path towards the energy transition.
Our business the resilient and sustainable strategy is supported by our balance sheet strength and long term vision and promoting the value creation tool.
Thank you for your attention and.
Let's now open the Q&A session I will and two surveillance.
Thank you.
Thank you all for your attention.
And we haven't dissipated we received questions the upon and chat and the O&M.
Occasion, the Q&A section is the open operator.
The you may start.
Thank you the sunlight and as a reminder, ladies and gentlemen that is star one to get in the telephone queue.
First question is from Javier Suarez with Mediobanca Your question. Please.
Hi, good morning, and thanks for the for the presentation.
I have several questions.
The first one is on the on the regulatory review on recent regulatory changes and so I'm interested on the basic basic service low debt is basically the change in the capacity of the company to deal with.
And so the question here is how do you see these new low affecting your profitability in 2000 and in 'twenty, one and 'twenty two housekeeping and do you think that that is going to be in the months and all your cash flow and working capital and and.
And at the profitability of your business.
And then on the energy efficiency low debt is trying to promote the rationale of utilization of the energy sources.
You have seen in the presentation. The hydrogen has been declared as a food. So the question for you is that if you can update us of how do you see hydrogen and hydrogen opportunity affecting the enel Chile.
Chile business model and the Nike Com, so any update on that would be appreciated the.
Of course, and it won't be on the.
The the free market.
Service to the free market.
The Asia in some significant part of the year.
The ocular plug into that on the free market. So how do you expect that free market evolving in 2031.
How should peak the.
Expectation of three months of the evolution 2021 and impact on the profitability and the <unk>.
Fourth and final quickly some of the working capital.
And has been a positive impact during the fourth quarter. You can please explain us why this possibly impact has happened during the fourth quarter of the year. Many thanks.
Thank you and caveat for your quick, let's say versus the covenant and lots of things, let me start on the regulatory aspects and then and then.
The 2% before some clarification.
And remember.
Regarding the basic sales is low.
I would say that it is not let's say the grocery measure is more.
The low debt as being the issue during the <unk>.
And superior the.
Economic crisis due to the funding to support certain.
Certain category of clients the.
The most of the burden of our clients.
This is something that we have the let's say approach of since the beginning of the company with the offering more or less of the same approach of the.
And letting the people ask for let's say the.
The 18 and agreement for the extension of the the payment.
Payment terms.
What is what means the last of the decision. This is always the decision taken.
And the January button honestly.
With respect to the considering that the preview of.
And the previously issued in August.
Let's say the assigned to corner the.
<unk> debt was expected to end of year end.
If the situation clearly is the likely change of debt has been introduced to ease it to a larger design, but of installment for the payment of the first of all the.
Define the 12, but now the Cline can.
The Falcon tubes of up to 36, and this is clearly is quite reasonable because we free talking about more vulnerable clients.
And one year, one year of approximately one year of depth.
And the extension of the payment of accrued.
And to cover the exposure.
The element that we honestly and we opened sales we do not agree on this low debt the.
And our goal of exclusion.
Ability to cut off the full the best all day for let's say domestic debt per year also the larger the.
The largest of consumer in the sector.
And the cycle so clearly.
And let's.
And let's say the bay and the influence of the attitude of the clients that may pay their bill because the address they have the resources during the.
Let's say the contingency period non.
To pay the bill and the waiting until the end of the.
Oh, the appeal of the.
Flow will expire by the fixed domain. So given the situation we have and we have let's say.
Published and we pushed for any of.
And as much of our agreements as possible and all the let's say 12 of direct contact with the client and in order to start the call and our exports yourself when the.
Hello.
So the situation is the big can give you later the.
How it is reflected in our numbers.
Regarding the energy efficiency low.
And the let's say I think we think that this is an important step book.
And choosing the country clear.
Clearly as sometimes to be let's say developed because of its the refers to a five year plans nor of the 2% and now we are in the process, we expect debt.
These are the let's.
And let's say the Wii.
The real exploits and buy during the next.
Couple of years and.
Regarding hydrogen.
You know debt, we are part of the consortium of net.
In the third and to help with the first pilot project of this alto Chile the Guy.
And the production of Green and erosion.
Using the.
And when to buy and the generation plant.
And this is let's say is it.
Part of our strategy.
Evaluating and monitoring the evolution of these opportunity clear for US is the opportunity because we are as renewables player and it could be very important upside and adding the path of these green economy. Clearly we are focusing what are let's say.
And the use of erosion in the industry in the two sets of sickness and debt.
We think that it.
And EBIT.
The strong upside the changing the industrial process and adopting as much as possible.
The.
I agree with Roche and the vector for the average.
And that game and we can be available.
Women of the producing at the at least the dividend and volume through our generation fleet.
For the business.
And then larger pipeline we.
We have two four gigawatts debt, we plan to construct by 2033, but we and the large partners. So we can add of the flexibility nor the to go to a potential and.
Kris and demand in Singapore.
The agreement Georgia.
Regarding the free market evolution.
This is the let's say.
The question net.
Touch base and let's say the process that is still in the middle of because you've noticed the.
And the portable and below and being presented to commission of the Senate.
This is under discussion and the sense that there is a meaningful and growing that the basic about this.
And are.
These low out of certain condition for opening of the market for the time being what we're seeing and debt for one side.
Clients debt of the possibility to be great.
From the regulator of the duty free market due to the conditions of being.
And the connection of capacity between the 500 kilowatts of Fernanda cure the five megawatt are moving and surgeries.
Clients that are moving from the regulator of true.
To the free market and the other trend is.
The free clients debt, reaching into a renewable.
Subscription and the sense that they are required and to be provided with the green energy and we see these two elements for the timing of the good upside for us because of euro debt, where we have signed and re.
And contracts with very large clients.
Clean energy.
Some clients are request us to reach the.
The furniture into Green energy and we are of let's say.
And started getting the clients that are moving from.
Relative market two different market in our concession area as well as outside of our concessionary.
And you said the.
The.
And so the answer regarding with the details of the basic service low and some of the working capital.
Let me see the product cost of the net working capital.
The Asian debt debt.
And in place and the last quarter was the as I've said in the.
And Oh and fees.
Our around the 100 million Donna.
And basically.
And we can take some action in terms of factoring and reverse factoring.
And the in the second one taking into.
To account of the HUD debt we perform.
The very important amount of Capex and the last quarter. So these are basically the.
Yeah.
The issue of concern the net working capital.
And for both growth and then the lay of the least the last day.
I would say that the.
We believe that zone.
Considering the and the projection that we and in terms of.
Recovery, we shouldnt have any additional impact in the following month model, but it is really early June on the.
The C now youre going to see and the following months how could be.
And the impact of unprofitable and non eco.
And it's about.
Yes, and also just the patient impact and the evolution of the.
On the <unk>.
And in Chile debt.
The.
The process part of the vaccine is growing right.
And so we hope that.
And the net and the for the months the could be.
Recovery from the center point of view.
Interest and many thanks.
Thank you. Our next question comes from Anthony called out total with schools and your question. Please.
Hi, Good afternoon, and first for taking my question and server.
Also if you.
The first one is on on the outlook for our for 2008 tenths of the one we saw the recovery of the electricity production in the power generation business of the demand on the distribution business, you are indicating and expect an improvement of the hydrology. So can you.
Elaborate a bit of.
Good morning, the day, the the scenario that you see for this year.
And if possible if you can give us some indication of the level of EBITDA debt to expect for 2021 and the related to this are you also expecting our one three gigawatt of additional renewable capacity.
So if you can give us of any indication of the EBITDA that you expect the.
From a full year level of trauma from debt capacity there.
And I have a question regarding of the regulatory environment as well.
I like it.
The deadlines for the presentation of the new regulatory framework for distribution and transmission. If you can update us on the impact of that you expect the from this the June new models.
For your distribution business.
And the last one is related to the PPA.
PPA you are likely the impact on the AR from Ppas of from the indexation.
Forex commodity is.
The CPI if you can remind us of how this the mechanism of war and.
If you can provide some some debates on this positive impact that the 2020.
Thank you.
Okay. Thank you very portfolio question.
Regarding the outlook of 2021.
Let's say.
And let's say made confirmed what we have discussed moving out of let's say.
And this plan with some of these data regarding let's say I would say that the.
The key issue here is the how the country is evolving from the 2020 so.
The west.
West measure and.
And the the possibility of the.
And in.
The limit not strong reputation and the lockdown in the movement of people is a very key indicator on how the country and saw the consequence of the demand the.
And.
And the.
EBIT of pay for payment and to have the new contracts.
Can the let's say support the.
The recovery in the economy and our cider.
And what we're doing the ease of first of all supporting our clients many.
And in any case, we can do I mean, I'm, referring to the small and medium clients.
We are targeting and then with agreements in order book.
Of them up to kind of out from the city.
The situation on the other side of the law.
And the client confirmed the resilience of so we don't see any negative impact on this.
Regarding the.
The.
The.
The ideology.
And we.
Confirm our let's say estimation.
And is on.
And as usual and number of years will that or Asia, and the analogy of the evolution. So we can be more specific during the next months due in the next calls in order to see effectively all of the.
The as the country.
And he is.
And the weather and condition may change of cancer claims of the numbers.
Regarding project the project.
Say that.
And during the 2020.
Debt from the point of view of walk you on size of movement of people and impactful and Dania.
And the Dos and <unk>.
And we appreciate.
With the proceeds very matched the work made by our teams to manage and is very difficult situations. We have advance in all of the project that we have and insight we have opened the new wolfcamp sites.
And we manage two of the people working also during the day.
Knocked down day has affected our areas of.
For the new projects, especially especially in the north of that.
In the north of achieving so again the.
The bus.
And I think and 2020 do these conditions and also the lengthy projects the lengthy process debt alright, and inform the let's say the authority like the concern and that's one of the momentum.
Sure.
And the timing.
And are receiving any kind of approval and.
The largest so much do the.
And have a review of people.
Office net promoter working remotely and stuff.
And this is where should we have today as we mentioned one three gigawatt of.
Project and the perception, we are advancing and and we of manager this year, but also especially the last year on the system.
Is this more of outbreaks of Covid.
Alright, and the contractors that we manage very well and so today we have.
Very very very limited number of people affected.
The company.
And the.
And what we expect to advance.
Clearly, we don't have our effort and time, we the day.
And the construction of the plant also in this case and we'll keep updated for any of the step higher debt on our clients and there are clearly different stage of advancing basket.
And say.
Quite close the deal on the work that we're doing on site.
Regarding.
The.
The.
The.
But all of the distribution and value for regulatory yes.
And I see debt, what I can say Lisa the first with the process may yet some months of delay in terms of the reserve the loss of the.
Very final targets.
And talking to the physician because of the work that the.
And is doing.
And the regulator.
And its consultants.
We do not expect according to the information of that.
The receiver is now we do not expect the difference from the numbers that we projected in our business plan. So we don't see neither in distribution as well as.
As with Us and.
The transmission.
So at the stage. It is the lengthy problem that could be the let's say the is going on online and all the parameters centimeters and does that net debt.
And b share and define the at the beginning.
Regarding the PPA and discretionary EBT to be do some rough level of risk.
Yeah.
Well in the.
And the PCA.
And.
So it's the meaning to say the variable life.
And.
U S CPI of R&D.
And the exchange rate.
And the other commodities, so depending of the evolution of the commodity.
And the change in our PPA of course is.
He is not so.
And so easy to explain the and.
The link between the <unk> and the trend of the commodity and the impact of the PPA because for example, porcine commodity.
And the demand strength for the indexation of is coming through for example of six months.
Hum month babies the.
And the trend of the commodity saw rehab of different kind of indexation and areas two of referenced periods for each of the vertical and <unk>.
Basically these are the and.
And the driver of our PPA.
Okay. Thank you very much.
Okay.
Thank you and ladies and gentlemen, if you have of.
A question just press Star then one to get in the queue.
Next question is from moving out for me with Santander and your question. Please.
Hi, Good morning, guys at all and all just happen.
And the marine leveraging it from some of them there thanks for the call.
This will provide more details on the gas supply situation in Chile, and specifically the dynamic for Enel Chile.
And we know that you're.
Cash and negotiating gas supply during the pandemic and now you are benefiting from that and.
How long can we expect availability of gas for a fine of Chile, and what are you expecting for the for the winter and in terms of gasoline and identity.
And spot prices.
The first one.
My next one is regarding Capex and.
We would like to understand how could you handle capex in order to avoid.
Oh boy energy of oversupply and in the system and.
Could that be and the strategy more fox and on storage systems and the renewable capacity.
And finally.
Could you share with us more.
Your expectation of about collection and provisions should provisions increase during the first half of 2021 and.
Our fuel.
That's all from my side. Thanks.
Hi, Maria Thank you for your question net.
Gas supply.
That is the question.
And being let's.
And let's say the first of all of the root causes.
The gas supply and Chile, because you know the notes.
And it's a very easy comp.
And with the supply width.
In the sense of debt.
And the gas has come from LNG facility.
Especially in the center debt.
In the non.
And then there are of the.
And the interconnection with Argentina, and the manner of managing of the too.
The let's say the two element to our S.
For the providing the of gas is quite a different approach and tangibles of all seasonality.
Because even though debt Argentinian gas and.
Interest and defense debt.
We can use that gas and <unk>.
Certain periods the.
Of the year.
The impact can be interrupted by the by the seller and specialty by with action.
By the.
The government and touches.
And the other way around.
To manage the imports and the <unk>.
Touching on the LNG.
And quite important that exercise of the quarter require quite clear.
Planning in order to manage the both of these charges the.
The cash.
Usually the limited the mechanism is that during the.
And the <unk>.
During the.
The.
Springtime.
And the entire let's say.
January February.
Yeah.
The gas and.
And the gas is coming from Argentina.
One of our ability and the system often used gas coming from Argentina during the wintertime.
The leasing.
Cash from Argentina, and so the.
As we especially we have the.
The planning we are planning every year to receive cash per mileage.
So in this scenario.
We do not see.
The product for out of the team having availability of gas because we have we can blend.
The.
The board the rig.
Acquired both the doing therefore available for the winter time, and the same time and using.
The.
Gas the gas coming from Argentina in the spring and summer.
What's the.
And after and here as we often.
It's January.
And the.
February is that the three some lack of gas from the <unk>.
And a lot of the let's say compared to the rising from general condition of the country I mean certain drops and.
It was on availability and the.
Gas and availability for other players on our side. We report we also plan and we hope.
We plan to have the gas.
Mixing the operating from Argentina and the.
And so we don't see a program and especially we don't see of program and also this year starting from.
The margin because the.
And then of receiving energy is clear during the.
The January and February we have to manage the Stefan action of the to cover our needs.
And especially due to the lack of gas coming from Argentina, and Thats been broke.
During the recent the recent months and.
In terms of our position.
We don't see.
The program because our LNG contract is the long term contract.
And so we can cover our needs.
And can plant and our communities.
Great.
And we of course of server.
The console.
Signed and in place with Argentina, ancillary items and so we can also benefits for them and they will be.
The from from and from Argentina.
Regarding the.
Next question on Capex.
And the special leader Gotta be you mentioned the oversupply in terms of all of the.
Let's say low supply of renewables.
We have some elements of he has to share for us the you know.
Debt.
We are let's say.
Right first of all the in the sector and the sense that we have.
The project ongoing debt.
We have.
The connected to the grid the starting from this year.
This is the second element is that the.
There is also the carbon and special process ongoing debt.
The <unk>.
And the availability of minimum of company.
Capacity the debt aspects of this very important new source of let's say the clients of demand.
Since the day after reaching more and more in the in the.
And the required and the Green energy and at the same time and considering our portfolio of contracts we have.
And the clients located also.
In the north.
And of cheap so.
And we.
The may avoid the bottlenecks of the grids in order to provide them with our advantage.
And part of that and of course, considering the impact of price.
The points of growth.
And.
Renewable plants, we storage is the.
The interesting element.
We are developing our plan at the base.
On the strategy. We are the discussion also with the let's say with the regulator and we therefore the in order to manage the best way to the two.
<unk>.
These investments in order to have it.
To start the.
The planning.
The installation of batteries, and especially together with our solar plants.
The reason that we are.
Let's see.
We are working on it.
It's a developing.
And.
Very good very closely.
Regarding the collection and the.
And let's say the answer to.
Yes, as I said before.
The diesel to understand how could be the impact of what the medium that economy and lower than what we and the 2020.
For sort of reason first of all because of many of you that the situation in Chile is going to be better than the last year.
And also linked to the you know the.
The law.
Yes.
But the same plan that the the companies and the economy moving.
And the space and also because the.
The lay of the surpassing.
Is the scrutiny and some clients with the Haile and <unk>.
Consumption, where we can.
Managed in order to get the payment so the BD bad debt.
Today's the really difficult to understand the hour.
And.
Alright and Ikea.
And I will now turn the call back to Isabela cleanliness for the.
Cash question.
Okay. Thank you. So we have some questions of malware and shot here. So the first one channel Linda Mccartney credit card.
So his first question, we have been seeing higher spot market prices in Chile in early 2020.
'twenty, one should we expect that to translate into higher <unk> expenses and now and it is true business and the second question the authorities and Chile appear to be reviewing the way gas costs are declared by power generators and why.
And now to continue on the look and what the implications could be for the company. So I only know the profile.
Thank you Andrew for the cash.
Sales and in answer.
Answer to your question I will return back to the previous one that made by midyear and the sense of debt.
The starting point is the here.
And.
Let's say the way in which the gas is imported and Chile.
And the.
And clearly one of the most important.
I would say the most important channel for a book and Chile.
The protect gas in Chile in the LNG because.
And I mentioned, the gas supply coming from Argentina, and interoperable and it is not the stable source of providing gas.
And the D are.
And.
LNG gas requires and planning because of the the channel of the chain is based on book.
<unk> coming from the C timing for discharge and the occupation of the storage facility in the Regasification.
And the situation the discussion that is ongoing.
The one with the greater debt that you sort of view.
And what it is called normal technical LNG.
And again the flexibility.
The all of the system for providing gas in the.
And the CPE and.
And Chile.
And our view honestly is debt.
We have to.
For.
Defined as the.
First the Gulf Coast.
12 and the.
The Big day.
Economics of the system in order to add the.
David and less costly system.
The overall.
And and.
And second to avoid the.
Any kind of use of the most contaminating the most polluting the generation assets.
And the fleet if you go through the.
Some request of some discussion that we are adding were.
It imports some rigidity and the system also importing of gas through LNG.
The consequence of this is too low.
See the system debt cannot.
Ability and optimizing the availability of gas.
And the 12.
Well the system with use force too.
And to produce.
With the most contaminating the less economics, but the most of that.
The expensive, but if you will.
Got it and.
So coming back to the question on our on our position with the very.
And the large mix of technology and capacity, we can we can use the I draw of renewables and.
And gas and just for one year of Cola and will come in.
And this is Missouri situation, we can be buyer of the sport.
If the.
Let's say the cost of energy use the below our cost of production or we are backstopped by our cost of production and we are important and gas to our long term contract LNG. So.
The pickup of the variety of gas and so on our side we have.
And the deep <unk>.
Next stop in any condition of either spot price and regarding the.
Normal Technica, we are pushing in adding the flexibility that allow two of the availability of gas and the system in the system because it is important for us.
But also for our board.
The other players that are managing gas facilities that is the cadence do not the long term contract, but the is going to grow spot on the spot on the LNG and so forth to include some constrained at the base all of the.
And so the plan mix.
Of the system based on the really basis.
And by the and Gordon.
And a lot of the Loretta.
These may have the let's say the impact on the lot of holder.
The ability of gas at certain periods of the year. So we should avoid it where the b the situation, but to look at the the economics of city of.
The order of system.
Thank you <unk>. So now we have some questions out of young, but even mode of so many of them. So the first question.
Could you explain the factories nation agreement with Goldman Sachs and IDB, how much do you expect to receive for defense trends.
And then the second question I believe was already the answered that is related to the ability that we have with selling day two.
Two phase the throughout the season in the country debt.
Third one is related to repowering projects and now and it is.
So this is asking if the projects was concluded and the second one related is is the Bowflex Congress project. So the reserve amount.
And how much it was expand in the project.
And at the end of 2020, and how much of the company forecasting to invest to conclude this project.
Then the other one is related to book coming at you. So the data is asking that considering the hydro conditions debt, we are facing now and the lack of Argentina and gas.
There is the possibility of the company to evaluate the postponement of the closure of and book I mean that share in May of 2022, and then this final question.
Reported sales of the postponed and of this year. The Offloads Congress project to 2023. So this is the question.
Yeah.
And that is available.
In driving okay.
So, let's now come from the and so we can cover the plants. Okay. So let's start from the <unk>.
First was and what about the first Congress.
Okay, Let's Congress of what the expenses made by the.
Great and.
2020 was in the range of and under the 80 million U S dollars the b.
The total amount of considering that what has been announced.
During the HSA channel published data at the end of July we announced the range over one of 1000 $150 million.
Total amount of Capex, where we stand today.
They are in the very difficult situation, let me say it is not because of the approach.
Because to me and the management of the Dania effect and any working areas and we have advanced in all.
Sure.
Analysis, and named <unk>, and our works and so we have let's say.
Going and.
With the let's say the element debt.
And let's say create.
The requirement for deeper studies during the rest of the time, so we have the.
Some of these elements and so we have and that we are balancing the construction of clearly managing growth. So the.
The all the elements of safety regarding the peoples of the coupon.
Right.
And clearly on the safety awards and safety on the on the <unk>.
Regarding debt.
Regarding the funding.
There was a bit of sort of dosing.
Regarding the sign of reduction project.
The regarding the Midland contractors all of that.
The Capex and include Okay. Okay. So the other one is about the reported R&D projects that the noted of Johnny correct conclude it yes.
And.
And let's go to the LNG question Dan.
And clearly our ability to face the job is and the currency considering and that LNG contract. Thank you you have there and yes.
Already mentioned and so you have to consider debt starting from March.
We are going through the let's.
And let's say.
Receiving of the.
Sheep that will deliver the required gas and for.
And for all of the winter period. So we don't have any kind of dose dependency from Argentina for all of the period of the right tools.
Bringing the.
And the and.
Summertime, so we don't see the.
The progress starting from the.
Today to have these kind of.
Net sales.
And the lack of gas come from at the opinion.
The second member of the next one does represent about the standing of the fragrance Smith.
In fact, the 90 day.
Yes.
We have already performed the first tranche.
The.
And in theory, and the matter and we are already cash in the $58 million or you're going to see.
Correct and the first quarter results were presented and.
And.
Everything is going well and the meaning that if the regulator and we will.
We'll issue.
And the decrease at our debt.
Sales for the factory.
Back to aggregate and other $100 million along the year.
Okay. Thank you just lastly, so we have.
Questions from the amended cash flow from credit card.
So the first one is if we could share our guidance for revenues EBITDA and Capex for 2021 and then the second question is are you planning to pay the inter company loan debt you have re Fi and now in the short term.
And thank him for.
And what concerns the guidance revision are confirmed what we have been presented in using the outcome and market day. So just to recap EBITDA is going to be in the range of 141 5 billion dollar and the.
And the same for Wisconsin, and the Capex, So we're going to.
And.
And the span of Oracle and we expect to spend the $1 $2 billion.
And the constant.
And the company low we don't have any in.
And the company alone exploration and by the end of this year, we have just.
And a credit line that is going to despite and and.
In June and we are evaluating whether it makes sense to renew and.
And total or just the part of it.
We have.
The only explanation that we have on top of the amortization of some loan is.
And alone.
The vessels.
Maintaining the ETP loan and this is going to the expert.
And the exciting.
And.
In December and.
So are we going to and you're going to the set how cleanly.
Okay. Thank you does that the so we have the last question now from the macros finally, the Scotch bank so.
The two matches the asking more of the chaos.
The leverage of the company onto the Taubman trainee and what's.
We expect senior and into the levity and now so if the.
Phasing of Capex would be and alternatives. So if you can give more details on this and then the last question is low.
And Thomas of Desking.
On the ancillary services that we reduced the $10 million.
The combination of this year, so he's asking what we're expecting for 2021.
And for our company and queso and.
And what can stand the net debt to EBITDA.
The full year net debt to EBITDA will be around.
$3, one time zone.
And and of course.
We do not.
And see how the.
The.
And he is going to mean.
And also in this case going to confirm what we said.
And during the hour.
Capital activity.
So the worst conservancy, we extend the season.
And really cleaning the future is going to be a little bit different because the world's changed a little bit. So we don't we don't believe that we are going to of exactly the same amount of it had the 2000 twenty's and spend to be a little bit.
And we can meet the.
Lower and the edge.
As of today, we believe it is going to be extremely low.
Perfect. Thank you is that the now so we do not have any other questions. So I would like to thank you all for joining us today and also to mention that our team and the investor relation team is going to be available for any other questions. You may have.
Many thank you are free.
Thanks, Thank you all.
Thank you.
And thank you ladies and gentlemen for your participation in today's program. You may now disconnect have a wonderful day.
[music].
Okay.