Q4 2020 Enel Americas SA Earnings Call
Good day, ladies and gentlemen, and welcome to the Enel Americas full year 2020 results Conference call. My name is Michelle and I will be your operator for today at this time all participants are in a listen only mode. After the speaker's presentation and that will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
Please be advised and today's conference is being recorded if you require any further assistance. Please press star then zero debt.
This conference call, we may make statements that constitute forward looking statements within the meaning of the private security Litigation Reform Act of 1995. These statements could include statements regarding the intent belief or current expectations of Enel Americas and its management with respect to among other things Enel Americas business.
Plant Enel Americas cost reduction plan.
Two affecting enel Americas financial condition or results of operations, including market trends and the electricity sector in Chile or elsewhere.
Provision and regulations of the electricity sector in Chile, or elsewhere, and the future effects of any changes and the laws and regulations.
Acceptable to Enel Americas or interest only.
Such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties actual results may differ materially from those anticipated and the forward looking statements as a result of various factors. These factors include a decline and the equity capital markets of the United.
Teach or Chile, and increase and the market rates of interest and the United States or elsewhere.
At first <unk>.
And by government regulators in Chile, or elsewhere, and other factors described and Enel Americas annual report on form 20-F, including and under risk factors.
You may access our 20-F on the SEC's website W. W. W. Dot S E C dot Gov readers are.
And not to place undue reliance on forward looking statements, which speak only as of third day Enel Americas undertakes no obligation to update these forward looking statements or to disclose any development as a result of which forward looking statements become inaccurate I would now like to turn the presentation over to Mr. Raphael Alejandro.
And our Americas head of Investor.
Investor Relations. Please proceed.
And then thank you and us.
Ladies and gentlemen.
Saturday for total falloff and weight control with Fuji and plenty to energy sales presentation.
And the last Investor relations within and Americas.
And then can you just like <unk> and.
And with Shiel.
I would and CFO and EVP.
And then any figures from these PDF.
Let me remind you that this presentation will follow the advice and noteworthy and maybe they can do a company's website.
And with the presentation, we will have the usual Q&A session and <unk>.
These locations.
And mind, you that day questions and it can be made only through the telephone line.
Let me I don't know whether they take them out. It's you who really started by outlining the main highlights of the PDP that slide number three.
Thank you that's fine.
Good afternoon, everybody during the last quarter, we continue seeing a recovery in terms of energy demand while collection in the last months or 22 and he was in line that we did note and multi year.
Quality indicators and also Sean and Infor and.
And compare to last quarter, we are.
And before 'twenty 'twenty, one and we can leave behind most of the negative impact that we had last year and.
And this context EBITDA.
EBITDA for the fourth ward debt reached 957, net media and the rest all debt.
So 6.4% compare to fourth quarter and all 2019.
32% higher than the third quarter of this year.
The reduction compared to 2019 is mainly explained by the currency devaluation, which and then.
Impact and negative impact of 250 media and the rest of it.
Without considering FX impact you'd be back with as increased by 18% and of course there.
Looking at the our sustainability commitment and we are glad that we were glued it once again and the sustainability E. R O.
F N b.
And we were dealing with the ability to be considered in F. N B E.
S G.
LIFO index in Chile.
Finally, as you all know on December our shareholder.
The merger and we then had a good and power to Americas with more than 80% of total booths at the end of this presentation, we will discuss the opening b so variation in more detail.
On the following slide we will see a break down all our 'twenty 'twenty EBITDA compared to the one and not ours.
Guidance in the past.
Well now what our strategic plan of 2019, we announced the and EBITDA guidance of four 7 billion and the rest of those 422, IC and the net income of $1 6 billion and the rest of it.
And that momentum by nobody knew what was coming day with the COVID-19 virus.
As we all know and Ed.
And a deep impact in our lives and our economy.
Got it and increase in Latin America suffered and important devaluation and locked down and they are significantly impacting energy consumption.
Considering that and the impact of 48 billion due to fix and point to be alere and due to lower demand on July we updated the guidance for 2020, EBITDA announcing that $3 7 billion U S government.
During the second half over the year, we saw it and Caveri Lockdowns were concluded that cover and CS and demand.
Not fully recovered and we had a negative impact on point and 1 billion U S dollar and fix and point 3 billion U S. Dollar EBITDA live and compare to what we consider in our July guidance.
Yes.
I've got a negative impact the accounting for the <unk> 1 billion.
The U S dollar from bad debt assumption that we're not fully foreseen and made us reach and that'd be down three point to be in the air and the rest of it.
Net income and 11 negative impact from FX and coffee debt, what 0.4 and point and 5 billion U S. Dollar.
We expect we believe with net positive.
Oh, and 1 billion and yours the Ola.
For other SA, we'd each day net income.
Point, 8 billion and U S and all that.
Let's move to the following slides and see some indicators that were affected by COVID-19.
Look our currencies suffered significant devaluation against U S dollar during last year.
Argentinian peso decreased 40%, while but at least and for the ice Colombian peso in Peruvian soles.
And by 29, six and 9% respectively.
And they've got a big electricity distributed we add debt reduction in the four countries, where we operate comparing 'twenty Duane.
2019, we couldn't see debt burden was the most affected.
A decrease, albeit and per se.
While Argentina and decreased by 5% and Brazil, and Colombia for per Se.
Finally in terms of collection and we see that Argentina is the largest degrees with 8.5 percentage points.
Then dropped 5.5.
Page points, and Brazil, and Colombia, where zero.
Right low bad debt last year with a decrease of one seven and 2.1, respectively.
Now, let's dive a little.
Our investments for the period.
Looking at the fourth quarter of this year, our capex decreased by 22, 4% compare to fourth quarter over last year.
This includes and negative impact coming from currency devaluation of hundreds and a museum and U S. Dollar.
Without this effect Capex would have decreased by three 5%.
Considering the four year Capex amounted to one 4 billion and the rest of the world.
The decrease of 13, 6%.
Two last year.
The reduction not Weber is fully explained by the devaluation of local Skype and says without considering FX effect.
And what investment increased by 7.8 per se.
Our investments were mainly devoted to maintenance capex and photos and distribution business.
From a geographical point of view, 45% over the investment there in this quarter with me on that.
And our subsidiaries in Brazil and.
And from which most part came from distribution business.
And finally, it is worth to highlight debt almost 95% of our Capex East as D. G related.
And I'm, feeling confident that ESG matters and integrated in our business strategy and aim to Wayne Indiana.
Sure.
Our water and focus on the ESG and can be seen in the coming slides.
For now we can get with our focus of going to the beauty with the United Nations sustainability development goals, we have been supporting our one community with more than five and then.
True.
Which in total and the positive impact on 2.6 million people range.
The range, forcing the synergies between social progress and corporate success.
And the same time, we are doing our best effort in order to enter our communities in this difficult time open day.
We have made more than hundred initiatives, we aim at Webster, mainly as the institution and people with economic needs and.
And the four countries that we operate we have made several donations, including electricity generators food supplies and medical equipment and supplies and more either.
We will continue.
Despite a slow and gossipy.
Hoping that we can collaborate to overcome this crisis.
Focus on sustainability is there.
Benign in Iowa and improvements in the main ESG ratings as we will see in the coming slides.
On this slide.
This slide you can see the result of our exports to incorporate ESG as a core part of our strategy.
And we Havent Blake that the market become denies these and we will keep doing our best to continue improving the ESG metrics.
During 'twenty, two and our company improved in most all of them.
Greetings and maintaining the positive range over the previous years.
Can see in the true standard Liebig's, Sam and <unk>.
FTSE Russell, we had significant improvement.
And the integration of BGP Americas into I worked pretty well.
We are confident that we will and room for five of net improvement.
We are also proud to be recognized by the S&P Dow Jones.
Index on debt and sustainability yearbook, 'twenty 'twenty, one with a bronze class over 7000 companies web assets.
Only 631 companies with top scores may eat into the year.
And finally, we would like to mention that they've got and Americas was the only utility to be consider and.
F N B E.
E S G cycle index in Chile, and remarkable achievement.
Now.
And our area with comments about the financial results for the period in the coming slides a radio the floor is yours.
Thank you Mohit Shaw and the.
Fourth quarter, EBITDA reached 957, Neely and U S daughters.
844% lower than the same period of last year.
And by the negative impact of currency devaluation in the four countries, where we operate especially in Brazil.
Without considering these effects and no.
So I used the lady and the negative impact coming from Covid.
Millions of dollars and the positive impact recorded this year in connection with the and there was some volatile baines from funded.
And migration plan of Lewis and eight 9 million and U S dollars EBITDA.
I would have increased by $19 two percentage.
If we look and the full year cumulative EBITDA Richard cheap.
And it really on the U S dollar from 21% decrease compared to last year, mainly explained it by didn't active and thanks.
And also by deposits deep one off debt.
She did nudge and Dinah up $200 million due to average two liability resolution.
And I would represent a negative impact of $483 million for the full week without these effects and they were.
We're not in Enel, So Paulo explained it before EBITDA would have been created.
And the year to 15, 6%.
On the other hand group net income in the fourth quarter decreased by 30%, 32%, reaching 339 billion U S doors and.
While on a cumulative basis EBITDA decreased by 40 849.
And 9%, reaching $835 million both gates and this is mainly explained by a positive one off effects.
And reduced last year and connection with the merger between <unk> and some powder and and it's.
I would ask and related to the purchase of collateral which reach it.
500 and <unk>.
The $3 million DSO was partially offset by a better financial result, and lower tax payments during this and.
A couple of people and it really reach it is true.
Point, 2002 hundred $39 million and an increase of eight 5% compared to last year, while net debt increased by <unk>.
Three 2% reaching.
And $4 $4 billion, we all want and are likely to pay out cash flow and depth.
In the late later into the Brazilian issue.
On the next slide and we'll see EBITDA evolution and its breakdown that.
But and form 1020 $3 million has already been dialogue all flow quarter.
Great and 19.
We see only.
And thermal generation business decreased compared to last year, while our hydro generation network and retail.
And also in their legs, and a better performance and we can't total EBITDA, excluding FX impact.
The impact of 1001 hundred $88 million, which is 16% higher than fourth quarter, and 2019 currency devaluation and the negative impact of $250 million plus either displace other impacts.
Get to our final EBITDA of $957 million.
6% lower than last year on cash.
Income from basis, we see Brazil.
We see that but it was the only one to improve our EBITDA compared to the fourth quarter and ultimately to 19 Y and Colombia remain in flux, and that's and Dean and Peru degrees and the biggest negative impact comes from a currency devaluation regarding.
Cumulative EBITDA from next year.
If we exclude the one off effect of last year and coming from the best liability situation in and the sewer.
And we start from an EBITDA of 3700, and I can do $1 million for Duane and 19, hydro generation networks, and and electric businesses, improving compared them to.
Two last year, while thermal generation and retail dropped it reaching an EBITDA of 3000, 8000, and 74 million U S dollars before FX, which is 2% higher than 2019 effects had a negative impact of 744 million and U S dollars.
Alone, but without the impact me that's reached 3000 $103 million of total EBITDA for the year, which is 21% lower than last year.
From a country as we see Brazil, and Colombia and prove it I didn't didn't remain flat.
Slot and and Peru are we done with the decrease that's nowhere in our lives and our operations were highlights and the following slides.
Slide 12, our generation business, our stuff could possibly made it this thing must be it and.
And so I see you, reaching a laughing.
Maintaining on the life and 0.3 Gigawatts.
From which 55% is hydro and.
From the hydro plants and that production and the fourth quarter reach at 10.2 Terawatts hour almost in line with fourth quarter of 2019 and cumulative terms net debt.
Fiction reach at a 45, gigawatts hours, which means that 3% to decrease our and I, just say sales victories and by cupric, Santa and the quarter, reaching <unk>.
Seven people and keep that are about solar and cumulative terms and the decrease was 8% explained by reductions in Brazil, Peru, and Colombia, mostly affected by lower demand due it you did the coffee that due to the pandemic.
In terms of EBITDA in the fourth quarter, it reduced it by 6% and in full year, 13%.
And both Capes and reduction year explained by negative FX impact.
And operational terms, we had a better results both for the quarter and the.
Full year net.
And our lives networks business and becoming flight.
And the first quarter electricity distributed reached $3 310, and about that one decreasing by 1% reflecting a.
The recovery and trends.
We have seen in the last four months of the year.
And cumulative.
She butadiene as you reach and fitness and wasn't that day, and a 15.2 and about towers, which means a 4% decrease and co.
Two last year.
Regarding number of customers, we had an increase of around 400000 clients, mainly explained by an increase in AR and Enel, So Paulo, and its debt and a way out and put in some and in Colombia.
Quality indicator, saidi and SAIFI and prove it in all our subsidiaries, reflecting our commitment in terms of investments and focus on our customers and the other hand energy losses increase it and Colombia, Brazil went through while likely degrees and Columbia.
It is a consequence of the economic situation and the carbon do it today and they can to reach and to lead to the carpet.
In terms of EBITDA from the fourth quarter, we decreased by 9% compared to fourth quarter and off Duane D 90.
19, reaching 589 million and U S. Dollars. However, this is fully explained by negative effects and.
Without these effects EBITDA would have increased by 18%.
And can you, let these terms and the reduction was 86%.
Along with the negative FX impact. We also were affected by a positive one off effect of $203 million, which is there and last year in connection with their the true past liabilities and also by law at the remainder of this year due to the profit.
And he's like well see Enel X and retail business.
And these lives.
Fourth and 14th.
Slide 14 and and.
<unk> business and Enel X business, we had a solid growth and charging station and photovoltaic panels, while credit card business is a perfect glide and micro insurance were basically in line with our with the previous year regarding retail business the number of delivery points increased by 24% reach.
300000, and the 480 points, the liberty points and the and they're just sold amounted to 54 Terawatt hour.
Which means 7% decreased as a consequence of the pandemic and the related reduction.
Of the demand.
And what you do so should the situation.
And with all these elements, let's analyze the cash flow and they're coming to life.
And if a pool of funds from operations amounted to two towers, one and $229 million from 22.
Starting from an EBITDA of 3150 $4 million.
These results include that includes the negative net working capital and the beautiful and amount of $94 million, 88% lower than last year.
The recognition.
Oh don't you did with receipt of the funds.
From coffees accounts, so contact for beach, and breadth, you up 600 million and U S. Dollar during 2020.
In July up to into 'twenty and.
Tax paid during the period amounted to $553 million, while net financial expenses amounted to $178 million. He both gauge we see a reduction compared it you'd planned and 19.
After investments for 1000 $413 million and syndicated and MTV also.
We get to a net free cash flow of $916 million, which is 80%, 83% higher than last year, that's nowhere and analyze the debt So power company and the following its light number 60.
And that's amounted to almost six severely under what's the honest a decrease of five 3% versus December 2019.
Next effects accounts for debt reduction of more than $8 billion due to the fact that most of our debt easing local currencies.
And county local currencies, you just partially upset by a debt increased mainly and and Americas holding and also input.
And in so Paulo and in the pit.
Looking at our net debt starting from fourth puts the billion dollars of last year, we had the $916 million, our free cash flow information and the bridges, a slight net dividends paid amounted to 1080 $4 million.
And I I still find named show financial receivables and extraordinary operations.
Minus 120 million and and 129 and 93 million respectively.
The U S dollars a day effects are effect of minus 100 million.
The total net debt, which at 4430 $6 million and increase of $139 million in terms of currency and country, we see that Brazil remain and remains a.
Largest contributed while debt the debt at holding level represent less than 30%. Despite an increasing during the D. C and finally regarding your debt cost up next week and see a reduction for disputed going from seven 1% and clean and 19.
9% in 'twenty and 'twenty. This is mainly explained by degrees and the weight of debt coming from the acquisition of <unk> and pump out better condition to refinance debt in Brazil, and Colombia, Peru, and holding company and.
And also lower variable rates.
And in Brazil now on the following his life MAU reached a little show you a brief overview on how and and Americas is composed and inclusive, including the AGP Americas at six along with a summary of the company and stepped off.
And if they approve and emerging place.
Thank you Dahlia.
On this slide we can see a pro forma and and the Americas for 'twenty and 'twenty, including Egypt, the Americas assets.
And installed capacity would have been 24% higher reaching 14.8.
Eight gigawatt.
And most over the new capacity guidance from Brazil.
This includes 0.3 G go what we and capacity from La go go.
In December 2012.
Increased and additional 0.1 gigawatt of solar capacity from solvent and Diablo as of February 2021.
Okay.
The first debt.
And they leave any and all.
Capacity and growth from Egypt be Americas with growth 2.5 gigawatt since December 2020.
Energy sales of Egypt, and made a gas assets were 11.1 debt about.
I work with.
Duane.
Got it guys sales there.
Representing the total of 78, one debt about Star War and increase of 17%.
In terms of EBITDA, Egypt, the Americas with debt.
And then 10% of our total EBITDA.
Three five visa and the U S day already and they put a fourth month basis, and the renewable sources, including lives, Idaho and non conventional renewable contributes and we've done 37% of the total.
Finally regarding Capex and we can see that the 38% of our investment.
<unk> come from Egypt be Americas.
Due to the fact that several of our plants under construction during last year.
Let's see in the coming slides, we are foreseen for the coming years.
As we just saw and be back for 'twenty and 'twenty was point for beauty and all that.
For the AGP Americas, and we expect to see significant growth in the coming years as new capacity and when they entered into operation.
Back to get in EBITDA point.
A billion units by 'twenty and 'twenty three.
And this is supported by the solid pipeline. They ETP America S. Currently there are 3.6 gigawatt and operation and 4.3, Giga watts and execution and the and the virus the development stage.
These along with the CAD range of capacity.
Erica we leave as debt total installed capacity of 19.1 gigawatt.
In addition, we have more than 22 gigawatt and long term pipeline.
And that's all the timing for these operations to be concluded we are waiting for the final administrative step from the Ruby and backs out OTT sooner and.
And then we could conclude the merger and reduce debt the new share in the Chile and regulator.
Duane D than during the second quarter of this year.
Finally, let me highlight that recently, we and each airlines and sign and investment agreement with our partner in Colombia.
And we ship will allow us to integrate nonconventional renewable assets into our city method and will boost and then to the legal claims debt what Betsy.
We are glad that this situation was sold in the best possible way of course is not what we read and are ongoing.
Ongoing debt 11.
True once we expect to finalize this agreement and the first titanfall.
And what do you see it.
Now let me conclude this presentation with some closing remark.
Within the difficult times, we are facing we had a fever and the working to mitigate any potential impact and doing our best and.
Our community.
These last two quarter, we saw a recovery in terms of demand and collection, but we are still suffering the impact of currency devaluation.
Despite this difficult environment, we have been able to improve our cash flow and a significant way.
Finally, and I got it.
<unk> been there just proposed zone, we are glad and.
Our shareholder and stuff through the operation and we expect that it will be concluded during the second quarter Bcf.
And I thought and the floor is yours.
When you think about each already very clear.
Thanks, Nicole good operator for the Q&A session. Operator. Please proceed.
Thank you ladies and gentlemen, if you have a question at this time. Please press Star then one on your Touchtone telephone and ask your question has been answered or you wish to remove yourself from the queue. Please press the pound key.
And any background noise and we ask that you. Please place your line on mute. Once your question has been stated are.
Our first question comes from the line of Javier Suarez with Matti Block I think your line is open. Please go ahead.
Hi, good morning to everyone and thank you for taking my questions I have three.
And for the question defense funding from the Slide number 18, when you have so we de growth.
Expect it for the company.
You can pick a day, India, and navigating powers and make that and I sit and and the growth is quite significant and by 2023. So I was wondering and you cannot give us some more granularity on the offense and behind that growth what is driving that growth and which is the underlying assumption on forex that you had and grouping on those numbers.
It could be the first question and the second place to see some day on the customer always take when you're one of the like and he says it's like number 15.
D C and we have seen a significant improvement in and then.
Net working capital as a consequence of the positive impact of contact Covid in Brazil. So that we can get is what you would expect equal debt net working capital evolution in 2000, and 'twenty and 'twenty. One what is a reasonable expectation for that full debt net working capital a theme of D. C.
And the third question need somebody on the fourth quarter and be the company hassle and it sounds significant improvement. So you can help us to understand the key underlying dynamics that are supporting that growth that we have seen an improvement with the fort worth it.
And and you believe that that trend should consider debate and to close and I'm going to one that's well many things.
Okay, and let's see.
Apply to your question, but I got to think of that growth and then.
Okay.
Okay and in Americas.
After the emerging with the and AGP I made you guys actually and I think.
During the day.
And that's what we said.
We weren't expecting.
And the web and it.
And to complete and 2.4.
Let's say, adding five G got whacked.
Oh, which are 3.1.
And B.
And I'd expect that to be finalized and to integrate.
And for why because they are either already under construction, we and following to the construction phase and then you will add the other point, the Florida and.
G go after a project and.
Are raising them and at the bias the stage of development in 'twenty, three and four so that they that they made duty and implementation.
And the implementation costs from these wells.
<unk> five gigawatt project sales.
And.
More than us already and construction and beyond that it will start construction, let's see Duane D C.
And in 'twenty and 'twenty two.
The project that we are facing for 'twenty and 'twenty 'twenty, four and most of the broader debt and fully better meet and forgiveness.
And we have already commit that a good amount of the equipment. So we expect that this will continue.
We have done.
We have seen that and it should be.
And the do it and the 2021.
And regarding to the second net working capital and I will let are out and the reply that third one but I got a day to day.
And the fourth quarters debt.
And this is mostly.
Related to <unk>.
The increase of demand.
If you do a segmentation.
D and hedging the value you can jacks debt reconcile three major categories that are the residential customer out of debt commercial costs and their commercial activity and the investor customer and if you see the evolution Eaton and <unk> 'twenty 'twenty you can.
And observed and even good east of course, the pandemic staying a cool and wet.
The increase D day, my Dear to demand Oh, Dear residential customers and this is it and they still continue.
And the Eaton for example in January 'twenty, 'twenty, one and.
Regarding the.
Got it and that we observe.
Tremendous drop in EBIT that was the first non go fully impact of Covid that.
The debt, we see a continuous in net increase in that industrial demand and if and you can see that.
The debt for example, the price of sand commodity is going after you can expect and good Isa, that's where a lot of energy consumption in the basket of capstone.
For example, the mining industry and bedroom.
The younger the sector debt.
Our suffering the condition of the Oh, the Covid of course is the commercial sector a.
Supermarket.
And the shops and set that and that if you look at.
In January we still observing these segmental customer.
And he covered it but a slower recovery on bad debt.
Residential customer and.
And our industrial customer that we know we are for the boat category lapped two categories. We are in debt.
But our objective and.
Energy demand pre Covid, let me say and.
The improvement in the residential customer and then I will let out and how radio to reply to your question regarding net working capital evolution.
Okay. Thank you for your question.
Yes.
Luckily the contract Covid.
You bought into a financial support and a $600 million and class, Brazil, and you won't know.
Although we are still discussing.
The economic recognition of of part a of the can lead to go off and needs a mounting and our and our EBITDA.
These discussions still go in and I understood moving.
But the good thing is that the first.
And neither was the financial and it was.
Gun into and they do it if we can see the.
Have you and hour hour and Luxor.
Let's see our.
And so for a conversion or our network and kept it and compare it to EBITDA, we're talking about a model and that's about 85% of EBITDA right.
And just for you, but you'll have an idea of of course 94 is a number which is one off and we'd.
And on top of it but if I consider this PD lab or normal level is more or less 25% of Oh.
But we're gonna be back and to convert it.
The working capital over the EBITDA.
And what good and let's say that affect this.
This.
The situation that we have some up some.
Positive issues and are in the country.
And the.
Probably we will have a more compensation regarding clinical feature rich and other one offs, but from the other hand, there and as you know, we see a higher price and see now and the spot price, especially in Brazil.
And we may have some effect, but again that this is something that we recover and the following year.
Are we the interest rates and.
And without causing much.
And much problem.
But we are we are talking about.
More or less.
And to have an idea to lose 400 to 500 million U S dollars of Oh from net working capital I mean with all day did you check each of course, we are we need to I'm talking about our annual Americas a standard.
Stand alone because we do not have the consolidated company, yet we need to do and it's about esports explain a day calendar that off of.
Merger, but engine.
In general terms, it is more or less around this.
Many thanks.
Okay.
Thank you and our next question. Our next question comes from the line of Andrew Mccarthy with Credit Corp. Your line is open. Please go ahead.
Good afternoon, everyone.
Although the volume.
And so really all Rafael and many things alone presentation and and Nicole.
Three questions.
Thanks for the update on the merger.
Timing I was wondering if you could also update us debt for the.
And if we offer.
But what's come from Enel.
And the minority shareholders.
And without effectively come after the close of the budge on it. So if you could give a bit more of an idea of that.
The second question.
And regarding the integration of E G P Americas and true.
And case.
I was wondering if you could provide some more color about what more specific.
Specific and you would need.
And as and she might be looking out two to achieve that and then my third question just following on from from how he has a question them from the fourth quarter results.
We sold the Brazilian generation business seem to before.
Well I was wondering if you could maybe provide some more color specifically there is to work with.
And how sort of sustainable.
Sustainable that is going and going forward.
Okay.
Okay and.
And I got a big Eh and then OPEC.
And I need to ask head and neck when they were.
Moving to launch the deal with that but let me say from.
Talking about the.
Let's say and rationality and.
And of course, I, suppose that and we will launch day.
The D O power will beach sure let me see.
And regarding the condition and the first condition precedent is.
And right over the future debt was already.
Overtime that nowadays there soon that we said that before.
Just to give you a flavor and we are working and Jessica.
And these finalized that.
The first our first alpha and much.
If everything will go well.
Back that day that all conditions precedent for the for the messaging will be satisfied and <unk>.
Starting from the day that I E.
Of course, we will.
Communicate to the market these through and as I said.
Yeah, and we did do a with debt.
And right of refusal.
And of course, starting from this data.
Expect that and Ken and launch the holdback.
And regarding the and then and just the Americas and against that.
And if you recall during our during the.
And the process of Oh boy.
And the messaging Egypt Madagascar.
And then and I.
And I made a couple of course with wet.
And not a authorized just to mention that and think that they got a thing.
And these are a good evening.
And the reality and we started to work with the new management.
And.
And so July August.
And last year.
We were of course, and a complete and surety and.
We started to work.
We are redefining and Oh, yeah, yeah lots of interest.
That piece of debt.
And the Baidu, so Oh the company.
Our bylaws.
And I relate that.
And being that define day, the Mac and Dean 70 or something like that.
And for me say something we revise that we establish the.
Some point that was not update that with the condition of the market.
And of course, the question related to the renewable and into the Magnetics Ah Ah was there and the perspective.
To speed up the growth.
And in Colombia.
And of course, we have a final.
Finalize the these are these new agreement debt.
Needs to grow of course true.
And through further step that depends of course as well because we need to present this to the ER.
Arbitration tribunal because each day.
Youll recall that the judge.
And that demand.
And annular mainly cash versus.
And is.
It's an.
Ongoing.
So once that this would be finalized of course.
Facing what we are looking at the possibility to have and.
And NTT that wouldnt include debt.
The business as we have done that.
And that AGP.
In Enel Americas team.
The same type of process this means emerge and completion.
Bye.
And then with the C and that process we have.
Dan.
And then and and then Americas. So the person would be the same amount of course needs to be.
Define and exchange.
And ratio evaluation.
And for Enel America is already there because it's a net.
And let's say the debt the same profit we have done for the definition of the exchange rate between the a shares total BGP.
And the Amerigas and UGI and.
Eliminating debt. So the process will expect wireless debt will do the full clearance.
We then so but and then the NCI and of course, we win.
We will proceed debt in the shadow of meeting.
All but two.
And then the first doubtful debt over this year.
Such a way that we can start that the new process and results of these new let's say.
Driver for the growth is the fact that we won a tender for.
And the electric buses in and.
Yeah.
And with that and.
And then he won the electric bus and spend it afford Florida and better than one electric bus.
Wanted to ask whether that be a station or the channel with data and all of the boxes.
Yeah.
There are some new efforts and Brian and I gotta be the digitalization of the CTO bought back so all type of activities that are being frozen.
To this.
Tuition now and.
C and new and new possibility.
Just to do the work and then build that but no.
Our opportunity for the people involved with that and.
Craig and I haven't been debt the Ford.
And the fourth quarter and I will.
And let the Aurelio just to tell you that net.
And we expect that yet and if you can see the debt we will ever.
And once again in 'twenty 'twenty, one and we expect that that will continue to grow.
And.
In.
And segment of residential that's mostly we are expecting.
A substantial growth being pretty market and free market means and.
And the big and.
Energy.
Samsung industries, like mining and the city and all kinds and go.
In Peru, and thinking true, but as well in Brazil.
And increased so.
Just to reply.
And.
First quick reply, and they've got a big it's a sustainable in time and the generation and the consumption, we believe debt yes.
And especially for the growth in the residential and the free market because of the process all three market.
As you know from day.
Regulation point of view.
And that are proposed in the Congress and it got it.
Pushing D are pretty basket, reducing the debt ratio.
And to entering the market, Brazil must continue its growth and we expect a growth of free market, that's willing to eat and.
Colombia.
And the police.
You want to watch something.
And I'm sure our motives.
And just to add a hi, Andrew and thank you for your question, let me remind you that AR.
And the fourth quarter, and we registered the $70 million in our country.
And due to their solution.
Of Oh, the GSS issue related to Brazil right.
And so that.
And there was some sort of one offs and positive one offs, but if Moody's just said if I, even if I remove all these are these one offs.
The first quarter was clearly the best quarter of debt, we have the unless you're right.
And.
Over the recovery and the dependent.
We are we are confident that this trend will follow these would follow the strength.
And we have seen this day improvement.
Improvement in the first months of the year, but again.
Just to let you know that we.
Had some more nuts here.
And the fourth quarter, but we if we moved from Oh the disease. These are one offs.
And if it was we had that and increase our well even in the weather effects.
Had done.
And improvement in the in the fourth quarter.
Significantly, especially due to the recovery of the demand.
Uh huh.
If we consider the fourth quarter.
We're talking about.
Reaching a 16% higher.
Without these effects, which is.
So it shows again, the best the best recovery again.
When I talk about whatnot remember the GSA after from Sept 17, nearly on the dollar and country heater and showed about either.
$90 million of the pension fund and migration remember that we are advancing in the migration from the.
Defined contribution from defined it benefits are defined and contribution so we added defense and so we could appoint visa is sponsored do you think back Oh, So ingrained and 19 will have a positive impact of Argentina due to 200 million U S dollars.
But we're moving all of these these effect we had that.
Increase of 16%.
Which is mainly explained by the demand right and.
<unk> said with the.
With this our free market our strategy and.
Corporate and new technology in our portfolio.
We'll be a three.
Pretty much a much more competitive in the front.
And that will have.
Probably a huge increase and the following years.
Super clear thank you very much.
And welcome.
Thank you and our next question comes from the line of Enrico Park like a totally with Stifel. Your line is open. Please go ahead.
Hi, good afternoon, and especially for taking my questions are first one is related to slide four if you can provide us from the thesis on the.
And the additional 1.3 billion donuts impart the debt yard and are in the cycle downturn compared to your previous guidance.
And I understand that Barkley is due to the of course the evolution of demand about this.
Additional factors that contributed to EBITDA.
And and regarding the right hand side of this slide is the mine will still find 5 billion total impact in.
In 2020 from coffee that what you said.
Back to debt could be and ease of and the other calls that in 2021.
Second question is related to the again to the outlook for 'twenty. One so I understand that just that the debt to try and day recovering demand that just even in the fourth quarter will continue and mainly on the reservation Doctor customers. If there are other factors that you expect to drive that before month's Oh.
Oh 2021 and.
And if you have any any kind of guidance that you can show without and the last one is related to the these are integration of deep and shall fondant and there's some follow up.
And I understand that there was a positive one off income for but if you can share with us as a possible positive impact from this and integration that can be structurally from the EBITDA contribution from that and that's about a little stuck in 'twenty one.
Thank you okay.
Youre welcome.
Let me just give you the first flavor and then I will let.
And the Aurelio just reply.
It's a day to day numbers.
And I cannot and they've got a thing and the second one to you.
'twenty one.
John.
Net debt.
As we said that we see.
Jeff is sustainable and.
Continuous.
Demand growth that will sustain that day.
Yeah.
The growth in this sector.
But let's see let's recall why what is the COVID-19 the COVID-19 impact if you separate from fixed is essentially.
And to drive it on one side you have the demand and.
We are.
We are observing in the first more of a 'twenty 'twenty, one and to safeguard the month, we see debt our projection budgeting there.
What is D D.
The second our SA.
And you win that.
Absurd.
For example, and but I see it.
And he.
And you should know that.
And types.
And related to the inflation.
And of course here.
And last the declaration of the precedent and boasts a matter.
And then a magazine debt.
On the on the market, but looking debt from our side, we see there.
Of course, you will get and increased it dies.
Not only a volume effect that as well.
Right.
And that the majority of our leasing increase we'd be at sort of the true.
Different Nick and so if I have to say just and estimation.
The average increase of price.
Yeah.
The 10% we expect net.
Four 5% of this increase will be absorbed.
Funds coming from the from the government so.
And we'll get that and say that say that 8% of increase in EBITDA.
Got it.
E D.
And the.
Yeah.
And the evening day.
The other impact that sort of simple lets see if D and E.
Impact on bad debt Okay.
One of the D and the major effect that we observed due to the fact that we were.
And unable for for for visa and Oh.
And from the authority to avoid damning.
And.
And the court if this has and the news.
This would be in that.
And the perspective of our.
Net debt increase.
But due to effective.
And I see and that we are we.
We can't do our cut and.
And reconnection activity.
With the exclusion of Argentina and.
And the exclusion of Argentina.
Argentina, and most of the Argentina, and let's see.
And the perimeter of late and that made a cash and in the deal and the city of Rio.
The rest of the day.
The day count the ADR.
We can do and we can do and cosmetic and Mexico, we are expecting to keep under control D.
And the control D and the.
And the bad debt and.
Evolution, the debt evolution and Jetblue impacting of course.
Net income though.
So we see it.
And then so summarizing and some volume.
And the recovery.
Almost total recovery.
And all the demand we see some price increase.
You too.
And the addition of botanica with inflation and the biggest market that we have debt is Brazil.
And we can see debt yes.
Impact of Covid that this debt debt can.
Can be kept under the under control.
And regarding the last one the migration of the pension fund.
Yeah.
And just to be as we are transparent.
With the domestic debt.
We plan to weather the duration of 60 per cent of D. A.
And people that were and better.
And the conditions.
And the defined benefit.
And that we had them English and all.
20 per say only 20% so of course, we need and now to reconsider.
It will be our what are our a function that and I think the sustainability of these pension plans, so let's take action and this.
In this direction, so we expect that debt.
The topic of pension fund would be a topic as well 'twenty 'twenty, one 'twenty 'twenty two just to be.
Yeah.
And so we can expect that we sold is definitely the issues in 'twenty and 'twenty two.
More or less busy day.
The impulse sales.
And then if you want just to add the specific lease and you've got a big chunk, Florida and et cetera.
And that's that's that's perfect. Thank you and your people.
As Mauricio said the beginning.
And beginning to the final and final question.
Of course, the pandemic our was.
And let's say a barrier for our implementation plan right.
But our we are waiting for the final.
Let's say the final.
And she goes and.
And approval from Delta and the regulatory.
Regulatory authorities and right now too to flow to the let's say the the.
Final position of the plant as Mauricio said to and the 20% migrated.
But do we.
And I will analyze and see the next day next steps what we'll do.
In order to follow and to keep on mitigating these blend and they've got because that's the day to day, that's our objective and we'll pursue these this day situation in terms of Oh.
Related to your question regarding our.
The impacts are.
And especially in Brazil, we and the fourth quarter.
And again the issue here is that we do recognize that 17 million.
U S dollars and putting as the GSA for a day extension of the concession of countries and other right from one side and.
The fact that the pension fund effect, because when we migrate and ER.
We eliminate let's say the present value of this disciplined because you'll have certainty for the people that migrate to define.
And I find it a contribution so a different.
The impact of.
Of course, it's protected.
Regarding the different style of discount rates. So we got a 90 day Neely and U S.
Brazil and both of them both for let's say one off or are these impact.
We're 70 from Gotcha and $90 million from from the from some Paolo Norwich.
And 100 and and and.
And the $60 million positive.
Again, if we can improve the pension fund and he will pursue beef and 'twenty, one or 'twenty two of course will.
Deferred and have more of a M.
Let's see.
Positive effects, but the main issue here is the average he has mitigated the risk okay.
I don't know if there is another another issue I think.
Eric.
And so we answered all your points with these.
Please feel free yes, it and I was very very clear. Thank you just saw the.
And on the guidance are you you can spend some number for 'twenty, one or it's too early to do it.
Yes.
Of course.
It was explaining we are of course.
And the formal merger not to be concluded, but that can give you and idea of.
Where we are.
Expecting something around a four $4 2 billion U S dollar EBITDA.
Considering the 500 million unexpected, Florida for HP, but.
Uh huh.
And I cannot say debt.
Our guidance, we need to see the let's say that final day.
I know a position there and then and merger because as you know.
You used if formerly the company consolidates.
And only the proportional part of Egypt beat.
No.
It will not have the full year consolidated but as soon as we can approve the merger.
And the most are weak and consolidate from Egypt.
The Americas region, but they get smarter and last the figures that we ought to.
Expecting them.
But given them onto vertically.
Thank you and our next question comes from the line of Etch and mom adults with Bloomberg Intelligence. Your line is open. Please go ahead.
Although.
A very quick question on the.
On your Capex I E. The.
Customers represented about 20%.
'twenty and 'twenty Capex.
And that's a bit of a high number to.
To me can you give a bit more color and what was spent on.
And on.
The other question it was not more of a question but.
And Ah.
Every single quarter, there was a forex headwind that you're having do you regret switching to U S dollar reporting from Chilean peso and not because your underlying business and excluding COVID-19 is growing pretty nicely and there's all this growth opportunity, but the headline ticket.
So and the the negative trend. So just wanted to hear your thoughts on that and and the last question is on and Alex can you give us a bit more color on what to expect going forward you mentioned, some project and Bogota and whatnot is there anything beyond that and Philip.
And I will take the last part just to say that yes and b.
He's not the project is a 10 day that we want.
So for this reason the floor and then one.
Justice and literally passes east already and.
Something that we are building.
And the reality, we are delivering and.
Well the testing station over the previous.
And then on electric backwards and but with that.
And I got a big analytics and is continually east growth and off screen golf Finance as I said and this is one example.
And we got the authorization from the old authority and a court denied the joint venture between and.
And the paper.
And and then.
Colombia and.
Scott.
And that this.
And that means debt.
And these joint venture debt Nox and structure, we will continue to grow the business. So the credit.
Credit card.
We have already 800000, good academy, and but with that and we'll continue to grow in this direction. So the financial services.
And is continuing.
And due to growth.
And you can see that and Alex.
A lot of core business.
And through this platform and we are continuing to selling service instead of gathering and insurance for example, and once it is eh.
The effect of that was a little bit.
Impacted by.
We will continue and the reality and we expect that will continue to grow we are continuing and I got it.
And the evolution of services for the building so.
The <unk>.
Beef NASA East East there.
The E mobility is not just the morbidity and they've got a big electric buses because in the back seat, we signed an agreement with Volvo for seven months and a debt.
The charge.
Check point, and we sign an agreement and the big.
King.
And area ordinary EBITDA in Brazil, just goes back to food.
What a true.
The point that in the banking debt.
And and Betsy so the business till the end and egg set even though for the time being is beef.
Business with the look and.
Lower impact on EBITDA.
And continuing to grow is continuing to push through our strategy and what these hours.
And the reality.
And we're not sell.
And the commodity and it's pretty simple.
We want to sell and the customer service.
Selic and Saturdays and M&A.
It will be a key element for our strategy and offsetting.
And for service.
Our cash flow so the degradation of the market you need.
The possibility just true intelligence with the analytics and the hour.
And the demand in Japan that sell to the two day investor webcast and that is building GAAP opportunity for growth and these customer service for example.
And some commentary.
We are selling debt.
Mobility and.
Electric mobility.
Mining industry the debt the buses can be utilized the acid battery and wind up and peak hours for our in force for the banking industry. So that is one of the new offer.
All services, the wildfire adder to our caustic soda business. All day today is that the project of buses is not the project piece of it.
A 10 day, one we'll start to deliver.
The electric.
Baptist and they've gotta be net of Capex I will let our I would let our radio reply means 20 per se.
Oh, Capex and customers.
Alright.
Yeah, Hi, well. Thank you for it for you and our final question.
And what one thing is very very important.
And that's off of Oh, Fuck and offering.
Effects.
Increase the Capex.
Each percentage compared to last year.
And the major part of this was.
And in our distribution distribution business, a net working networks business.
Why is that despite the pandemic, we maintain our capex deployment, because it's very important that they know that you keep the lights zone and now that you keep the people.
We've got without problems and not a true connect debt as we said.
And we connect and 400 new clients during.
During the during this year so.
Not invest to stop investing and.
And not connected it implies.
And we're smile at the.
And L. P C, but martin debt, we went to improve.
And of course, the trust and reliability of the agreed and.
And ER and our relationship with the customer so that's why we do it and we keep on investing.
Reinforcing.
The main thing is the Greek debt.
And you include increasing our customer base connecting more and more people and and elastic development, which is improving the.
And the remote operation of the grid and and and so on and so it's a mix between our between the disc.
And these categories, but again the main message here is that we invested more.
8% without FX.
Alexia and others.
True.
And it ties the.
Keep it tight.
The customers.
Hum.
And I think they add that Sam and.
Let me add something.
And looking at the chart that you see 20% and you can see the and.
These elite or beat the excesses that debt.
Of course. This question. So let me know we include in these customers for example, and this customer investment.
This is Mac meters.
As you know.
We.
Got a green light debt to install a three and a thousand.
Smack me in.
In Sao Paulo.
And that these investments can seem to customer and customer we consider investment lies.
Right.
And does not meet there I.
And.
And it's worthwhile just to define what category cabinets, and the asset management asset development and customers.
Exactly.
Yes, we have this big deployment in terms of smart meter, which will give us.
More and more are the possibility of improvement and efficiency and the.
Greed and so.
But the main message is.
As this debt.
<unk> maintained their greed and maintain the quality and not only maintaining and improving the quality of duty the pandemic and you know.
Distribution companies so.
Even with all the difficulties.
Downs and so on.
Of course, and our safety prioritizing the safety way.
To do this do you think first regarding the and the function of currency, let me tell your debt.
Well, yes, we are of course, our our revenues are in and in local currency Brazilian Reais Colombian pesos and apparel.
And solid.
Argentina and our business.
And.
I remind you that we are.
Especially in the and the previous year doing the expansion and I'll say Enel Americas.
We anticipate that these events are in order to.
And do their damage and so we had to decide this debt and Enel Americas, New wakeboarding and so doing this this.
Calculation.
US, which it was it will be 16 or 2017.
And at that time analyzing the flow of off.
The company.
It was a better.
Or better.
Situation and better knowledge of your auto market.
Martin better and worse, but the mod are reflecting.
And more are closed and more real position to consider a day U S dollars and as a function of currency because we have this situation of HUD and company with a U S dollars debt and manage and did the revenues from the countries.
And look out and local currency C. Suite are also listed in.
And New York Securities Exchange, and we analyze all this situation and decided to net it gives.
The company more transparency regarding.
The debt situation of Alpha.
FX exposure, but again, it's up.
Translation effects right.
Most of our revenues are in local currency I can tell your debt is it's around a 92% if I consider and consolidate.
Consolidation, even after the change in Argentina with revenues from generation.
Most of them are.
Well in Brazil was at 100%.
Local currency. So this deflationary effects, but also the cost side.
And the debt in each country.
So we look up and and so we match these situations, especially in the cash flow.
But from the translation effect economic translation effect and we have these.
Normal exposure.
And so the.
Thank you and our next question comes from the line of Charles Fishman with Morningstar. Your line is open. Please go ahead.
Good morning.
Follow on that question on the debt.
And a significant one.
And your cost of debt last year.
Yes. My first question would be is there any more opportunity.
Right.
And that even down lower.
For the park.
And I believe.
Uh huh.
And at the end of the year and I.
I guess.
Uh huh.
My next question would be you know.
The merger.
Gigawatt.
Our development pipeline I know what time of the merger.
We made a presentation and the majority of that was in Brazil.
Now that you're further along.
And you think and the future.
That's where the development opportunities are going to be with respect.
Following the merger and is it more is it more solar more wind more hydro and give a little more color on the.
And for that development pipeline would be helpful. Thank you.
Okay yoga commodity reply to the second one and that relates to the guidance that could apply to a range of the reply.
And I got to think.
The driver of a of a renewal.
And for growth of course debt.
And the message is not the driver.
The good old renewable energy as we said during the during a D and the non deal road show that we need debt.
And for the year marriage.
And we explain why and how.
The rationale over in Europe, all day that actually and a low grade.
Energy East to West.
Competitive energy.
And and competitive energy you can catch more sure of free market that is building gone in Brazil. Like for example outside that we then and Chile in Chile, and he is growing as well and will grow as well in that in the bedroom.
And Europe, all is one of the key.
Asset that will allow you to face and.
The liberalization of the market.
And the complexities and the quarterly the offer to the customers. So this is the real drag.
Either or any wobble and kick there.
And.
Correctly, you mentioned I mentioned debt 22 gigawatt.
Pipeline is mostly and easy because he is in Brazil that we see.
And when and.
While growth in.
Colombia, as well and we expect that once you will get the more liberalize the cost and.
And discussions I gotta being a day and good east or.
And the cost of the gas in that they.
They do as well.
Keep growth in renewable energy and so the renewable debt.
Obviously, they're either over in Europe.
Energy is the driver.
And that always was dead.
All free and competitive energy in terms of price.
And then of course debt out of the environmental impact and they've got they should and it got better consideration from the financial market, but the driver and is there.
So we expect that this threat.
And we'll continue to grow not only in a net.
But in general and the war as is demonstrated by the numbers.
The year is that we do a projection in terms of growth.
Future renewable plan.
I Rod, we called me and we own.
And we meet and Miss.
Think in terms of shorter.
And the prediction because the reality was that because because as well we.
Absurd and the other phenomenon all day.
And its certification.
We were mentioning.
The electric.
Electric mobility electric mobility, we didn't fly of course and.
Additional consumption of.
Electricity with the needs to make more risky and network.
And the reason why we do investment.
And that digital edition of a degree.
We are doing that right now and move in and the overall vision.
And all the future demand from from tobacco. So the reply to your question, we will continue to growth yes.
Although the Brazil, Russia would be an important debt.
China.
But as well.
There are some for Colombia, and Peru, we believe will continue and to offer opportunity and that please.
We have to keep in mind that debt.
And the messaging.
<unk> Americas will really get us well the assets in Central America.
Starting from the fan out and additional the America.
And in America, we look at that to another geographically there that is represented by Central America and.
And you can imagine for example, the perspective.
This strategic perspective in the case that will be finalized the interconnection between Colombia and Central America. So we are doing.
It moves in general.
General and strategic perspective.
And I would let the hour and there just to talk about the cost of debt Yeah, and then a question please validate and true.
And what is yours.
Sure sure.
Thank you Charles for your question, Yes.
And we of course, we had a decrease in the interest rates during last year.
It was Oh, Oh countless almost all countries.
And this seems to disease related our index and local interest rates and we had to these this reduction and naturally we reduced the debt, but not only piece.
That was Oh, we've got a very good things.
And so we entered into and if and when you do we let a good financial position, we got a very very interesting refine and seeing a possibility in order to reduce from the 7.1 never.
The 7.2, and two four points to 90% in 'twenty two Andy.
If you are of course also I need a very good position because as you know we got to debt. We did the capital increase and 2019. So it was not.
And let's say a very good position to enter either and the pandemic without knowing that we would enter at this and nobody knows no debt we would enter in this COVID-19.
Attrition, but it's simply to help with it if you're asking me in 'twenty and 'twenty, one what what they'll move.
What direction, we can take of course.
And our vision day.
Inflation and inflation pressure.
We will force Ah.
So some countries I think all almost and older countries to increase the reference interest rate.
And it's something that E D.
Uh huh.
But on the other hand, we see lots of liquidity and the market, especially for companies.
And are in a better situation and not it should do very interesting and very good liability management and reduce the cost.
For example to have an idea of just four 9% of course is the all in cost with the local rates with more of the margin from from the Bronx.
And I consider a an approximation of this debt these number.
And by 'twenty 'twenty, one will reach around 441%, okay, which means that even with the increase in debt the reference interest rate.
GAAP.
A very good opportunity to reduce the all in costs are.
Doing liability management.
If you synthesizing, our our debt and financial structure and also we did.
And it needs to keep net debt.
And moving moving forward, which is.
Ah optimizing the deeper than throes between and tend to have been enel Americas he's not.
He would you affect but its also help us too.
To.
Better optimize not only financially but also.
And that next purposes the debt.
And as seen in the car in the country snow so.
And.
Just two and a nutshell.
And increase in interest rates, but a better shape to do liability management will end up to a reduction to the all in cost from the four nine to four 1% more or less okay. Thank you.
Okay. That's very helpful. That's all I had thank you.
Thank you our next question comes.
Our next question comes from the line of where I've only seen a list.
Dan question tender. Your line is open. Please go ahead.
And you saw that and you'll have a file is moving along.
From time from there thanks for the call.
I have two question and so each you'll have already and so some of them.
Regarding the agreement with Groupon and here, but with that should we expect the new and renewable projects being consolidated into and hits a subsidiary.
Should we expect any significant change and corporate structure and in Colombia, and maybe in terms of sharing the ownership of the future project.
My second question is.
Is there any news about the percentage of minority stake in and outs at all or any other and minority stake for change events that'd be you teach sharing with us.
And my last question is with regard to true.
Last and he was coming from Brazil, and specifically and I throw at US help you see energy price and evolution in Brazil, and the free market and.
And do you expect more downward pressure.
In terms of price.
Yeah.
Okay and regarding.
And I got it.
But of course.
We are and the type of before.
Expect this just to create that.
And then D.
We live.
D and all the pieces inside like Enel Americas Okay.
And we said that as well that the process that we are facing two incorporated any of her ball is more or less the same process that we are quarterly net for enel Americas that mean to emerge.
Okay and I think this would apply to your first question.
And they've got a decent minority shadow sad huh.
We already have we see and what.
And what we see we see and we are observing.
We sat and.
And these type of opportunity you remember that we see it all the times, we are observing and more.
And it's moving.
In our distribution company in.
And our free market and in the possibility of a buyback of minority shareholders.
In the case of sat and as.
As you know.
And that was suddenly and leave me to related to the pledge it.
Sure.
And it's true, but asset and on the other day.
And I'm not.
And the needs right.
And really let me say from from.
From a debt.
The so sales company loans and that in Brazil, and you'll know that in that and the case, obviously I would argue at the normal share go ahead.
Then the collapse and.
And that's b shares you'll need to just to collect a defined number just the way and I've got and why is it needs to go and check and no pun intended had said and so we are keeping and the observation the evolution of course, as well and scatter desk to Luca.
And what are the condition and there.
And some I repeat your debt some leanings and.
And that comes from that previous the previous operation.
And to reply.
And I think to your question is yes, we are observing.
CRF too.
And as we are observing the other and that opportunity is.
This will not be realized.
For for the economic condition, Florida, and they will get better.
The condition.
We analyze deeply aesop up there.
And regarding our electro bras.
You know that.
But one of the reasons and the addition of electro brass is just to let free and electro bras to sell the hydro generation.
Net debt right now is compensated at cost.
And master condition.
And of course and as well.
And make a and G available in the market debt.
And here you cannot sell two phenomena.
And one side the U S C. A price reduction on the other side that red lobster.
And finally, then it would be that of.
Of the three market growth.
And both cases.
We need to keep in mind that.
And the customer.
The residential and commercial or index, they want to be.
And the minimum possible the commodities and day one.
We're doing a service accordingly.
And this is exactly.
We are clear and mind.
The.
And why because we have this in mind and we are observing in the old works.
And Europe Yeah.
Radio sales I think and this phenomenon since many years.
And these knowhow is a long pause just one piece would be what would be the trend.
I think and these are you typically might affect and decent and your basket.
Latina America, whereby the leap day to compare that with Europe for example, and you saw.
Of renewable energy, but once these have been settled the process.
And in a dramatic way.
And the same path will be for the.
And the free market and we love affair.
Sure absolutely.
As well.
Oppression on D.
Yeah.
And privacy and the market.
But as is and why.
One of them and the accelerated maybe.
The Florida that the strength that is already there something comes just to accelerate the process beyond that I think it's important that we be you will be really to catch their quota and.
Exactly due to the fact that day.
This knowledge or previous knowledge and.
We are already working since a year and preparing it to be ready when NASA wins in Latin America.
The three market it would be there.
And there would be a picture on the price.
And so really for a simple.
We observed that is happening for assembly and the sedan market.
And this is the reason why we want to move from a simple commodity.
And the sales.
States of surfaces.
I I really I don't know if you want to add something to school.
Yes.
I think it's perfectly well and does this.
No major issues to it.
Thank you and Moody's.
Great.
Just a follow up from yes, understood, but yes, there were some expenses in order to meet we just taken and I'll set up that's right.
And then.
We had on Saturday and.
That possibility, we are out of my life and good ways.
Continuously.
This type of opportunity and.
Among other C&I.
Okay.
And we had and analyzing yes, you're welcome.
Thank you and our next question comes from the line of.
These niche and skiing with.
Springdale capital. Your line is open. Please go ahead.
Yes, hi, good afternoon.
Good afternoon.
Have a quick clarification question can you remind us please how much cash and debt E. G. P. Americas will have at the merger.
Yeah.
And regarding debt, we said are more or less one and a $1 billion.
And they've got a big cash and I will let a range there definitely looks like most of the day.
Yes.
Sure.
Okay.
With.
And they've annual net debt.
Exactly exactly.
I think and part of question.
Exactly what we are and we have seen in the company and this was considered it and the.
And the process of Oh, they find and devaluation and everything and it'll age.
The Americas has already capitalize it the following day.
Following the next thing fast and and so the company will come up with.
And our net debt.
One 1 billion, a 1 billion cash, Okay 1 billion cash.
And the investments that they are of course, they ought to have modest was explaining that debt.
Definitely and it's moving forward no one day.
Voting function.
Assets in Brazil.
And duty February right and in February.
And.
And of course this this capex and this 1 billion being use it but anyway the debt.
And does it will be no debt a day.
And we'll be a lower cash and depending on the usage of this catch duty this brought it but what I'm talking about.
And 1 billion less the Capex, which means that we're talking about around 600 500 million U S dollar sponsored devote cash okay.
And so because they are advancing and aimed at T.
T O D, especially.
And the project he brought to you.
And also in Colombia, Colombia is also advancing.
And besides in defense.
These projects, okay, but that's the idea.
Hum.
I don't know if I if I if it was clear for you yes.
It is thank you very much I appreciate it thank you.
Well.
Thank you and I'm showing no further questions at this time and I would like to turn the conference back over to Raphael D. All contactless for any further remarks.
Well I don't know about of course as we conclude this call.
And called for.
And the wholesale and painting and ladies and I enjoyed that.
And the installation team will be available from any delta generated enough. Thank.
Thank you and stay safe.
Alright.
And thank you for participating in today's conference. This does conclude the program and you may all disconnect everyone have a great day.
Yeah.
And.
Yes.
[music].
Okay.
And.