Q2 2021 Enel Americas SA Earnings Call
And ladies and gentlemen, and welcome to <unk> Americas second quarter 'twenty 'twenty..1 results conference call. My name is Sadie and I will be your operator today at this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question.
<unk> session, you will need the breast star 1 on your telephone.
During this conference call you may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act 1995.
These statements could include statements are gardening.
The intent belief or current expectations of <unk> Americas, and its management with respect to among things Americas business plans and the Americas cost reduction plans trends affecting <unk> Americas financial condition or results of operations, including.
During the kit trends and the electricity sector in Chile or elsewhere.
Supervision and regulation for a day can be 3 cities sector in Chile, or elsewhere, and the future effect of any changes in the laws and regulations applicable in <unk> Americas our athletes.
More forward looking statements reflect only Albert current expectations are not guarantees of future performance and involve risks uncertainties.
Actual results may differ materially from those anticipated and floor religious statements as a result of various factors.
Such these factors include a decline in equity capital markets of United States or Chile.
An increase in market rates of interest in the United States or elsewhere adverse decisions by government regulators in Chile or elsewhere.
Other.
Factors described in <unk> Americas annual report on form 20-F, including under risk factor.
You may access our 20-F on sex.
Site at Ww Dot S E C dotcom.
Readers are cautioned not to place undue.
They're science well.
Forward looking statements, which speak only as Gary dates and all the Americas undertakes no obligation to update those forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate.
Oh no.
And I'd like to turn the presentation over to Mr. Raphael.
Bahasa M O M.
Americas had investor Relations. Please proceed.
Thank you.
Are you from get them and are weighted control, where second quarter for the first time to anyone vishal presentation.
Our relationship with them.
And again it is like multi channel ticketing feel for Central America.
True.
I wish fearful.
Is it different in the main figures for these periods.
Let me remind you that this presentation will flow movie as large that have been.
Already loaded into a competitor's website.
Following the presentation.
We will have the usual Q&A session. Please remember that questions can be made only from the telephone lines.
Now, let me handle whether they come from our retail our CFO will start by aligning the main highlights of the period in slide number 3.
Thank you.
We learn every day.
Net.
Yeah.
But I liked didn't go into effect per school manager.
Net into Enel America concluded on that.
You see it.
I realize the thing.
Our share holder for the throne.
Our confidence in our strategy once again.
In this second important at least the GAAP consolidated.
Yeah.
The Americas approved by our water shallow lung.
This is a very important milestone in the beginning.
Long sustainable growth for our company.
In terms of demand.
We have seen in reported recovery in Colombia last year.
We also add value.
But.
And then himself out in July.
Did you see a consolidation.
Rick already made free explained.
Block, 53% increase.
EBITDA and Blackberry per se in Greece, and net income why are your growth there.
Every day.
In line excluding.
Yeah.
It is also important to our lives.
Yeah good evening.
Uh huh.
Colombia has been up.
The rise of Shadows.
We expect.
The news that I've heard of them in Colombia rerouting of the first book there.
Okay.
In terms of Crazy.
India and accurately update so we have that net.
Have a great buying motives.
Net income in the.
Standard and for each side ESD.
ESG type of index and the improved our true.
<unk> reported good score.
Finally, we are not.
To announce the start of operations over like autos verticals, we finally in Brazil, we also.
<unk> 3.
<unk> lots of capacity in execution and the long term pipeline of.
44, <unk> that we will analyze later on.
Let's move to the following slide.
Kevin.
And collection.
Colombia is.
So in Brazil than the reality.
Against the us dollar by 4% and 1.
1%, respectively during this quarter, while Peru and Argentina.
New Truing deep initiation.
Regarding electricity distributed we are glad to see it solely to Rick already in all the countries during this quarter, reaching net pre pandemic.
Okay.
Finally in terms of collection, we had then importantly, poverty that Asia, especially in Peru, which increased 17, 1 percentage point.
In the fourth talent, we are now.
Around under per Se.
Net of collection.
Now.
Luca.
Our investment for the period.
During the second quarter of this year, our capex increased by 132 per se.
Back to the same period last year, reaching 698 linear.
Silver.
This is mainly explained by the consolidation of <unk>, which contributed with a capex of accurate.
The 90 day median yourself rich.
Represents 28 per sales of total capex of the period.
Considering these capex would have increased by.
8%, mainly explained by higher investment in our distribution business in Brazil.
In 1 of these third our investments increased by 65%.
<unk> 9 <unk> 93 per se.
Alright.
Without the contribution of <unk> cash.
Opex would have increased by 33 per cent.
Incorporation of <unk>, we see that <unk> has become the most important calendar incentives.
All investments with around 70 per se of Docomo <unk>.
Finally, it's worth to highlight that 96 per cent of our cafes ease MTG really relies on Philippines, our focus on ESG.
We continue.
The value redeemable projects under execution and in our growth pipeline in the coming slides.
Our loan pipeline.
Our pipeline now.
When we proposed the Medicare operations was around the wait and see.
GL book, However, we have made an important export Intel some new capacity and now we have it.
<unk> line of 44.4 gigawatt.
From week 24.6, adding net MD stage and 19.8.
Mature pipeline.
Regarding profit in execution currently we have 3.1 gigawatts of renewable capacity and therefore, a fraction from which 1.8 gigawatt that in Brazil.
9 gigawatt in Columbia 40.
In Peru, and 1 gigawatt in Central America.
66 per cent of this capacity.
And the rest is <unk>.
So level.
Regarding the mass channel operation.
Boeing 8 gigawatt.
3 the easing of that it shouldnt be 1.1 gigawatt will entering 'twenty 'twenty, 2 and 1.3 <unk>.
In 2023.
Let's now analyze our net operating guidelines on the operating side.
In generation.
<unk> business, our installed capacity increased by 35% due to the incorporation of EPS, reaching at this 0.2 gigawatt from reached 67%.
In your home.
Net production in the second.
<unk> reached the pinpoint to 10 of our power.
An increase of 55 per cent compared to same period last year ex.
Claimed by GGP, app and by a higher than normal and either a production due to demand recover.
Already in the region.
In commodity therm sales.
Action increased by 19% due to the same reasons.
Energy sales increased by 46 per cent and 19% during.
For the second quarter and the first hour.
Reaching 19, 2 terawatt hour.
33.3, Terawatt hour, respectively also explained by the consolidation of <unk>.
And the demand recovery in the region.
Annualized net business in slide number 8.
Electricity distributed reached 29.2 Terawatt hour in the second quarter, and 50.943 Terawatt hour in the third.
We put has been increasing.
13% and 6% respectively. This is explained by an important day recovering demand in the 4 counties, where we operate during the second quarter.
Regarding number of.
We estimate we had an increase of around 470.
Some of them in the last 12 months.
It is important to highlight net and in Sao Paolo reached 8 million customers.
An important achievement for the season.
Cash when we can control over the company ex.
7.2 million.
In terms of quality indicators say EDM basi included in the 4 counties new during the first of the year.
While energy losses in <unk>.
In Argentina, Colombia, and Peru, and remained flat in Brazil.
This is mainly explained by the fact that the temporary prohibition of testing of electricity to clients during the pandemic ex finished.
With the exception of Brazil.
Gladly.
<unk> classifieds.
By sharing.
On the following slide we.
We will see entity.
Retail weakness.
In Italy business, we have a solid growth in net charging station for the <unk> panel that means distributor.
The generation and public lighting.
Credit card business growth in line.
Israel insurance decreased it by.
29% mainly explained.
The reduction of in person marketing due to the core index.
19 pandemic.
Regarding free market business the.
Number of delivery points increased by 31 per se, reaching 4163.
<unk> and energy sales amount.
<unk> volume.
Our power in.
In the first half of the year, which means a 40% increase.
Let's now look at our ESG highlights incoming that go out.
In the Americas and the.
Second the addition of each SKU low syphilitic overlay for Latin America.
Erica and initiatives at Ames true.
The Coachella Lesotho Choledochotomy, we mean the growth.
In addition to the internal program in normal course, with the help for stakeholders born free.
Latin America.
This quarter presented 2 weeks more than.
220 per.
And external Union.
Through the foundation of the circular economy, new business model.
<unk> designed impact metrics sustainable financing Morgan and physical activity.
The school emphasized that circular economy is the basis of a new sustainable economic model.
Aimed to redesign the business model through our <unk>.
G and true innovation and.
Non-GAAP.
<unk> margin.
The recently completed merger with the <unk> puts our company in our Nextel and positioned to lead the energy transition.
It contributes to the using our appeal to our mission, which is the focus of our strategy.
The combination was well received by the creative agencies.
Which is reflected in the upgrade EBIT by moving some weeks ago to 8 from 8.3.
Regarding leading to ESG index at the end.
Razors.
The company was called <unk>.
On the F N b.
<unk> title index.
To Raptor.
Published the new score for the company, reaching a score of <unk>.
4 point.
1 out of price.
This reflects the extended.
Standard performer of the company during the last year.
Finally, we haven't delayed to announce that our 2020 total tax contribution reported in.
Randy.
On our website.
Moving to the ending backlog.
Cash.
Currency in our reporting system, we encourage other companies in Latam because all of this back book remote.
It is in transparency and hoping that our region can be cam ethane.
ESG.
Also today, our water BSD.
Yes.
The other day rate.
Through the engagement policy.
In addition, a investor and boom all day.
Online.
It is.
International EBIT.
Now on the company's value, let me talk to you about our.
Free inspiring legato victoza in Brazil.
In the state of <unk> Brasil.
Brazil, we have built in our garden victims of CVT that consists of parameter than 30 wind turbine may.
Making U S land project, we aspire worldwide.
And 1 of the biggest energy infrastructure in Brazil.
The 716 megawatts activity can generate over 3.3 terawatts hour period, thereby avoiding the addition of more than 1.6 million.
Tom.
<unk> 2 into the atmosphere.
This wind park in price investment.
Billion Reais and will add another 396 megawatts of capacity, reaching a total of 1.1 gigawatt.
From a capacity and price per hour.
Hour of production by late April.
510 megawatts already in wait and see.
Contracts with a pool of distribution companies, giving stability to our cash flow.
These show the potential capacity in the region in renewable generation and the green check growth.
Our company.
And in the energy transition, which makes us very proud.
In the coming from that I will comment about that.
Got it.
And profit of our operations in Colombia.
These operations consistent in the mass channel and the game plan for <unk> and AUC assets in Colombia, and Central America into 1 new vehicles need better Colombia.
We wish our company.
<unk> will own 50, 357, 3% of the book out share.
Good evening this way the fee is being in maintaining the control.
As you know our company currently.
At 48, 3%.
And 48.
5% ownership in per day in fact in the case that exist and.
And we have control of the company due to a share of that agreement.
These operations allows.
The sector all these agreements with our partner in the EU.
You stage of growth.
Defining a new in Korea dividend policy, improving our corporate governance, and adding new look back growth opportunities.
The transaction has been approved by the shareholders meeting of per day.
Fabricators, and GPS and coming ahead.
Wait for the approval of the book all the meetings and validation of the financial regulator in Colombia.
We expect to have the completion of the operations during the first quarter operating.
'twenty 2.
Now I leave the floor for Australia will comment about the financial results for the periods that in the coming slides.
Thank you <unk> EBITDA.
EBITDA in the second quarter reaches $951 million.
2.7% higher than the same period of last year is mainly explained by the consolidation of the Americas.
And by the demand recovery in distribution business, if we exclude the impact of Egypt, the Americas and also the negative impact of $17 million.
Coming from currency devaluation, we get to an EBITDA of $841 billion.
<unk>, which is a 35% 5.1% higher than last year in cumulative terms EBITDA increased by 15% in nominal terms and 12, 9% excluding.
In Egypt, the Americas, and the negative impact of $97 million from FX.
Group net income.
The second quarter and increased by 95, 8%, while on a cumulative basis. It increased by 26% in both cases this is expanded by the.
Contribution of Egypt, the Americas, better result that the day by level and better financial results.
Funds from operations for full in the theater, which of the $302 million a decrease of 9.8% compared to the same period of last year, while net debt increased by 2879.
9%, reaching $5.7 billion U S doors, we will analyze in detail the cash flow and that's labor in this in this presentation.
The company's light will see EBITDA evolution and breakdown.
Starting from $623 million of EBITDA.
On the second quarter 'twenty 'twenty, we see that all our businesses have positive results thermal operations improve it by $101 million, while a large idle increased by $44 million.
Networks grew by 49 million.
In U S dollars and retail and Enel X increased by 7%.
$10 million respectively.
In addition to this we have the positive impact of $127 million coming from each of the Americas.
Currency devaluation had a negative impact of $17 million considering.
This plus.
After the impacts are.
We get to a final EBITDA of 951 million Boes, 53% higher than the same period of last year.
On a country basis, we see that the main contributor for consolidated EBITDA was Brazil with 42% while.
While Colombia represents true.
35%, Peru 40 per cent Central America 5 per cent in Argentina, 4%.
Let's have a focus on generation and networks businesses in the coming slides.
EBITDA in generation business increased.
COVID-19, 6% mainly.
Mainly explained by the contribution of LPG per majors without these effects EBITDA would have increased by 49%. This is mainly explained by better results in Colombia, Peru, and Argentina, mainly due to a higher energy sales in the.
KBR presently and is important to highlight that we had a tariff adjustment of 29% withdraw retroactive to February 'twenty 'twenty..1. However, you said adjustments is still not enough to compensate the day fleet inflation increase.
Currency devaluation had a negative impact of 20.
$90 million a share.
So on the Pie chart, Colombia, and Brazil were the main contributors to generation EBITDA with 37% and 30% respectively.
Centralize that you'd be Americas coming to life.
He stopped capacity and operations during the spirit.
$3.90, gigawatts from which.
Which 1.8 gigawatts.
Wins, 1.4 gigawatt solar.
Zero point to H.
8 gigawatts and mini hydro.
I'll say to produce a trip with FERC terawatt hours of energy in energy due to the dispute it.
EBITDA during the second quarter was 100 greatest.
$7 million from which 59% came from Brazil, 38% from Central America, and 3% from Peru.
Guarding financial debt amounted to 639 million U S dollars, 82% comes from Brazil, and 18% comes from a per room.
Let's see networks business in the coming thrive.
Every day network, so business increased by 19% compared to second quarter of last year. This is mainly explained by better results in Brazil, and Colombia, and Brazil, EBITDA improvement by 44% language.
Due to an increase of 13% in energy demand along with higher tariffs do Joanna reels and I'm sure as parents adjustments, while in Colombia EBITDA grew by 12% also driven by an increase of 13% in energy demand.
Yes.
Important to highlight that energy demand increases in the 4 countries, reflecting a solid recovery after the difficult times that we face at last year and that we are still facing today.
EBITDA in networks business came mainly from Brazil and Colombia.
With 57 per cent and 31% respectively.
Contributed with 12% and Argentina had no contribution this quarter due to higher energy costs. Despite the positive 9% datacom adjustments.
That's kind of like our cash flow in the in the following slides.
Funds from operations for full amounted to $489 million from the period, starting from an EBITDA of 111 billion, 1.7 billion in U S dollars.
These results include a negative net working capital either.
In the period for an amount of $659 million to 88% higher than the same period of last year, mainly due to higher television rights in Brazil that should be recovered next year and becoming a tariff adjustments of course.
Taxes paid during the period amounted to 4.
$436 million, while net financial expenses amounted to -180 million, 34% lower than last year.
After investments for $993 million.
Including 193 million coming from Egypt in Americas, we get.
2 our free cash flow of minus $505 million, let me now analyze the death of our company in the following slides.
That amounted to almost 7.2 billion.
An increase of 21% compared to December 2020.
This amount includes $1.2 billion come from Egypt, the Americas.
Without this impact gross debt would have increased by 2.3%, reaching $6.1 versus $6.1 billion in U S. Dollars. This is mainly explained by our increase in our.
Uhm subsidiaries in Brazil, partially offset by reduction in Enel Americas holding.
Looking at our net debt starting from from a $44.4 billion of last year, we had -5.
$505 million of electrical.
Cash flow as mentioned in the previous slides net defense space and amounted to $636 million and financial receivables -11 million due.
During this period, we had an extraordinary operations for an amount of 700.
And $12 million, which corresponds to the equity injections received by Egypt, The Americas to continue developing our projects in renewables with this plus the net debt coming from Japan, Americas of $631 million and the FX effect of minus.
It's 100, and a net 8.8 million.
Total net debt reached 5650 and $63 million in terms of currency and country, we see that Brazil remains the largest contributor while the deaths at holding level represents 10%.
Of total.
Finally regarding the cost of debt, we can see an increase for a dispute going from 4.9%.
5.5% maybe.
Mainly explained by the incorporation of debts coming from Egypt, Americas and growing trend.
In index indexes.
Indexes associated with variable rates investing in Brazil.
This partially offset by better rate conditions in refinancing of debt in Colombia and Peru.
Now on the following slides Mauricio will finish the presentation with some closing.
<unk> remarks.
Okay.
During this quarter, we saw a solid operations out of it.
This allows the heart.
As an important growth.
EBITDA lebed boosted by the consolidation of <unk>.
Okay.
We continue.
Yes.
And we are positioning our company.
1 of the bank yet.
Yes.
And finally, we are on the A&D and EBIT.
In the U C.
But our company moving.
Paresh.
Cash and number 2 P M.
Uh huh.
This will continue bringing benefit to all of our.
I think numbers.
Well, thank you everybody for radio.
Operator for the Q&A session. Operator. Please proceed.
Per se.
That's true.
To ask a question you will need to press star 1 on your telephone.
To ask a question you will need to press star 1 on that come from if you would like to thank Laurie a question press accounts.
Our first question me Hap and recalibrate Beadle from stifle.
Your line is open.
Yes, Hi, hi, good morning.
My questions and congratulation for the results.
The first 1 is related to the outflow for the SEC went out after the strong quarter, you're reporting could you. If you can elaborate on what you're expecting in terms of the evolution of all the demand.
With respect to some additional tariff adjustment during the coming quarters.
Is crime or why are you provided the guidance in February all the appropriate $2 billion or EBITDA, including Egypt.
This is from.
A second question as it relates to the.
Maybe to slide.
When you show your pipeline for <unk>.
Projects I was wondering if you can share the present day.
Based on all the projects are classified in the mature pipeline or be replaced by design right.
So all of our contract visibility land connections.
And.
If you can provide us some guidance on the day I ask that you expect from the project that kind of thing execution.
Thank you.
Youre welcome let me maybe blades.
Question.
E.
In the second half of the year.
That will continue.
Yeah.
And growth of the demand from that.
This ambition.
We don't see any particular pattern.
Of course now the possibility.
Yeah.
Got him.
<unk>.
In that as well in video we did a lot more gas.
2.
We do keep under control.
The situation so no major change in this ambition.
And I think that will be.
In addition of course, we are.
I see.
In fact on the <unk>.
And I'm.
Sure.
Of course the.
Yes.
At this time.
And in Brazil.
Yeah.
Maintaining generation.
In Europe.
Segment, there and of course, you remember that we have.
As well.
Fortaleza combined side of it.
And I got everything.
<unk>.
Indonesia.
But could.
Could it be cash basis.
Regarding the other.
Yeah.
Related to the world of Anthony.
Yeah.
Facing an interesting growth in.
So.
So.
All right.
Especially in electric mobility.
And we are.
Negotiating several interesting contract.
Strength contract like we.
We did.
Both volume growth.
The charging station so.
We see the second half of.
Of the of the of the year.
We continue work already from the print.
Pre pandemic pre pandemic.
The theme of course in those countries.
The commercial segment the segment.
Net.
Net and the biggest impact over the past day Mika.
He has more than compensated by the growth of demand in our domestic segment and in the industrial segment.
Being in the pipeline that we see.
C.
And he said my fewer competitors.
With non mature means that we have linked contract already already in place.
Good.
Yeah.
Number of per.
Meat eating.
So we have connection point already.
Sure.
And of course.
The second piece is just optimization of the layout.
Procurement.
Hey, Pat.
The more the non.
The non mature pipeline that you have.
But in any contract of lens right.
You are stacking.
Permitting phase.
Of course, you know despite per normal.
Net of money net.
There are some.
Expected the influenza, we don't consider EBITDA.
Major.
Your.
Major problems in that.
Developing guide.
This.
Project of course as renewal.
Pipeline.
Leaving creature.
Good day.
And some other purchases.
Okay.
In the Midland, but it's sure nice to attract that scene.
1 announcement of the merger.
In December 'twenty 'twenty.
Recall that.
As a radio a recall.
22000 megawatts.
We lay line now in 44.
Megawatt growth pipeline.
That mean that.
Going into 2000.22000.
And the reality.
You ever.
As I say the eat out.
The pipeline, having consistent pipeline.
Jeff.
Decatur net.
Right.
You sold it.
Growth opportunity.
Even more beyond that.
Okay.
[music].
The growth.
Traffic.
You'll recall that.
1 of the reason why we underlined the importance of the merch.
Possibility.
And.
In pounds.
The best.
The development team.
In the region.
And regarding Iran.
Lisa.
2 already.
Yes.
The floor.
Thank you <unk>.
E vehicles. Thank you for your question.
We.
It can book income dimension.
Just to complement the second semester, the second half of the year that we have.
A full semester with the cash of some volatile we adjusted right.
We'll have a readjustment in us in October.
Hans Morris.
Around 6700.
Megawatts from new capacity.
Do you get the <unk>.
It's debatable.
To enter in the second half a day of DSO.
Which drive.
Which of those 2.
Of course on the demand to recover that we expected.
Drives us to a better a better.
Movement.
Semester for us okay.
Tens of.
Just to just to mention that.
In the.
First squad that I mentioned the submission of around 4 billion of EBITDA. This year, we maintained this estimation.
And we are comfortable with this with distributors in terms of IRR.
We use this.
Well.
Depending on the technology book.
10% to 11% okay.
No.
This is our of.
Of course.
We.
We are confident that we are.
Improving our capacity as <unk> explained.
Good day.
In all the lessons learned increasing book, including pipeline and so on.
Could improve this.
Returns which is for.
It's a reasonable with it okay.
Thank you very much adjusted just to clarify.
Verify the standard 11% is our equity levered or unlevered.
It's kind of figures I mean, we are talking about.
Is the let's say the WAC plus plus.
From a horror door or.
The walk the walk for the.
Splitting the capsule.
Okay. Okay.
Okay. Okay. Thank you very much Medicaid.
Youre welcome.
And again, if you would like to ask a question quick 1 on your telephone.
Our next question, we have Rodrigo Mora.
Miranda a day going to your line is open.
Hello.
Good afternoon.
Thank you for taking my question congratulations.
So for the pre salt.
I have 2 questions.
The first 1 is related to the.
The power of Americas.
I would like to understand.
Then the net financial debt that.
And then the Green power Americas.
A cough.
Because I understood that the transaction and the merger transaction.
Consider.
From that and then moving it by what America.
The gain.
Again without financial debt or.
The net financial debt equals zero.
This is my first question.
On my second question is related to the drought condition in Brazil.
Sure.
Hey.
I would like to ask.
And then Americas team.
What is the risk that.
Do you see that the next year.
The sales could face a potential electric or rationing.
The system.
Thank you.
Okay.
Or did it.
Dark either.
First.
Yes.
Some indications regarding the first question and then I will let the.
Reply, yes political.
As we said during the day emerging that day.
And it was just timing.
Okay.
Okay.
<unk> related than you see.
Of course these in the free cash flow free.
That means asset.
With financing with cash.
Cool.
So revenue related to the pretty good but I will leave our revenue adjusted decline.
Question on day.
Regarding the situation, but I see it I think that.
In terms of the <unk> indeed.
Indications will be announced.
Sure sure.
Over the medium to video for energy East.
Net.
No.
More rational.
And then Africa energy.
In this respect.
Making sound some proposed for example demand.
The response.
It can be a solution.
The 2.
Good day.
Type of.
Rationing.
That would be.
It will be.
So.
I think so.
Politically.
Uhm unpopular.
The creating the cutting of the energy.
Consider that the situation today.
Is quite different from the situation of Duane D..1 that force, the ear and which day.
Cutting of energy.
But have you.
Why diverse thereafter.
Much more.
<unk> fine so far.
<unk> already in operation.
1 you know I don't think that Youll.
Great.
Moving east to find the situation this year.
Tuition now.
Kathy Murray energy.
Even though you can see their day.
We need that to see what will happen in October October eastern months older.
Rating agencies.
CVR beginning operating season.
In Nebraska.
Of course, everybody is expecting.
We get that improvement.
Sure.
Not that we would see.
What would be the.
The actions that we are we think that our possibility avoiding.
The cutting of electricity supply.
Regarding value.
Regarding that day.
I leave it there.
Flow to revenue.
And the commodity true thank you, but critical for your question.
The cash.
Is that cadence with Egypt Americas.
In Enel Americas.
Americas level right, that's why we them because we consolidated all of the cash flow it at holding level and we will use it.
The project's needs the cash the cash flow.
Cash.
We concluded 2 to pay the construction right the barcode ex the <unk>.
You'd see the company. So the company came with let's say the project scheme with net.
But that's a cash flow neutralizing these effects that they know non Medicare collateral.
<unk>.
Which is going.
Moving to Latin Americas It seems.
When.
When 1 Boston 1 safely.
Yeah.
So the company came without net financial debt.
But in America.
Had to use the cash.
Cash to finance the capital expenditure of Enel Green Power America I am correct.
Okay very correctly you can see.
Not really.
It'll be growth.
We think that beauty.
Great merger operations.
D J.
In construction was supposed to come into income America, we'd already financing vertical construction.
Okay and this is exactly the funds we are talking about.
The fact.
Net new jobs from the construction of you will remember there was some megawatts in construction 22 in 2021input.
The cash we are pushing them out.
Okay. Okay. That's first in line.
<unk> explained beauty.
The merch operation.
Yes, yes, yes.
True to ads.
No.
Net level, which is zero because we didn't of course, we didn't need to optimize the day the flow we didn't leave the cash in the company the operating company.
And because they are.
Using than weekend in Enel on Medicare, we can optimize against.
Discussion of better in a better situation.
ROE of resources Okay.
Okay.
Let me ask.
Our last question is related to the.
The agreement with <unk>.
The goodwill and a share there but with that.
The day of the merger of the operations.
Share cycle then.
Also enel Green power Colombia.
They are getting power Central America.
Yeah.
I would like to know if.
Related to the.
The dividends.
True.
To me the transaction.
What is the idea of the group in terms of.
Use of proceeds.
Because when I see.
<unk>.
At the level of call it in Illinois, but it is holding.
Sure thing.
Some.
The financial data and I would like to know if the use of proceeds of this dividend will come to reduce these financial data.
Thank you.
Yes.
Thank you Olivier.
Yes next day idea I anticipate that this drug is in the first quarter.
If you remember enel Americas anticipated dividends than the previous years, and that's why Enel Americas has a Bachelor day.
Because of course, we are.
In a growth phase in the countries.
But we see that the countries, especially in this case, Brazil and Columbia as you mention so we can.
We can.
So what we'll do is key.
Have a let's say a day.
And then the dividend payout right.
So not aggressive way so that's the idea the idea is to reduce.
It's a little by little.
That's in Enel Americas.
Because it's.
But that it's more efficient if it stays in the.
Our country because you are they opening.
In operating companies right exactly that's the idea that's a deal.
Okay.
Thank you. Thank you very much for taking my question.
Youre welcome.
Our next question we have <unk>.
From JP Morgan.
Your line is open.
Okay.
Thank you I have a per follow up questions.
First of all I want to be on Enel Green power.
EBITDA in the quarter was $427 million.
Would it be kind of weighted NOI EBITDA for the full year or is EBITDA poised to increase in the upcoming quarters, because generally at least in Brazil.
Wind power generation is stronger in the third and fourth quarters are the second.
Requests from it would've been in regarding the G. Fast. So we know that that's going to be very low in the third and fourth quarter. So is there going to be an exposure for cash rate up with other <unk> and Volta Grande if there is an exposure to the spot market if the corporate has already.
The debenture position proposal would it be the 2 questions for now thank you.
Yeah I can take this 1.
In Egypt.
Yes.
Well in terms of GP.
Have you.
Have you been able to North America.
Americas.
We can we can expect to hit the key to maintain this.
This level taking into consideration net booting <unk> 600 megawatts in the second semester of course is not 1 day.
The beginning to be ready by the months, but.
We'll have this day.
This new capacity. So we are expecting something around 400 million U S dollars for the not for the whole year, but for the 9 months, let's say.
Because the interest only 100 day to 7 zone, though so.
This is.
And Anthony power it gives up from.
Okay.
Hydrology in all day impact.
In our in our high little.
Generation in Brazil.
Right day.
We are at.
Perfectly matches in terms of.
Of contracts.
That we are.
Complement our generation with the energy that we bought previously so we are.
Loan with terms of contracts purchase for.
We have Florida to sell energy.
Especially in the free market.
And some parts in auction day.
<unk> 45 per cent auction in 55 per cent.
Free market. So we do not have.
Concerns in terms of.
Corporate.
In our generation assets since we have this position of contracted with.
France, non political national print, but with the vehicle.
Real generators.
This energy to selling the free market and competition.
In our own generation and also the.
There is also moving I.
I mean, this looks from lots of opportunity also because we can do.
The short term business with witness some commercialization that or are there some agents.
As you may.
Have problems or something like that but in our case, we are in a in a comfortable position.
Thank you for finally, if you could just explain very briefly.
Moving to changes to the guidance I know there is no official guide us at the moment, but if you kind of got US force pop in 'twenty, 1 ex talking 'twenty from in terms of consolidated EBITDA.
Maybe it would be really helpful. Thank you.
Okay. Thank you.
For 2021 we are maintaining the 4.4 billion and 4 to $5.1 billion that I explained to do the.
First quarter, we are confident with this.
With this number with this figure.
We are still.
Calculating and analyzing the scenarios for next year.
We are seeing different behaviors in terms of demand.
And the segmentation, especially in distribution.
Do you anticipate now the situation.
I think it's not.
We are not.
Let's say.
Have a number to tell you.
But we can talk.
About our our expectations in terms of.
Of of recall Varian, so 1 of the demand in solar so.
In terms of <unk>, we are doing very well increasing our portfolio.
And take advantage of.
I anticipate and project and take advantage of price as each week.
We can.
We believe our that's why we are improving our our pipeline.
And a huge rate.
Also take advantage of our.
Commercialization and trading.
Strategy, if you'll see the quantity of energy that regenerate in the quantity that we sold by for free customers.
Yes.
Chip.
We generated good dirt.
The energy and 1 third is <unk>.
This is a commodity.
Realizations relative I misunderstood. So this is something that we will capture with also with the renewables and distribution.
Depends on visa debit card very of the of the demand that we are seeing that right now we are better than than last year.
But.
True to have a solid position.
In terms of.
Demand for next year, we need to to see the development, especially.
With the pandemic and the reason I don't know Mauricio if you want to add some comments regarding this.
Mapping.
Got it.
Okay.
We have.
Perhaps you can cover it.
Non-GAAP of Crestwood I've got on it looks like around it we are continuing growing in Brazil in the free market.
Okay.
<unk>.
These of course will be even more.
Bye.
Our execution.
Sure.
Renewable projects that we have.
Now.
We're not going to be.
The range story.
Amazon.
Got it.
You were saying there.
Moving.
Our paragon.
<unk>.
Yeah.
Facing their procurement.
Clear.
'twenty 1.
Dean.
We can.
Well the target the 'twenty to 'twenty 2.
Of course, we are.
Now.
In the face of definition of the bucket from 'twenty to 'twenty 2.
Depending per day mountain et cetera, I don't see any major change in.
Regulation.
I think we will force Brazil for example, I think revenue.
GAAP.
Better.
Compared to 2021.
Understood.
Perfect. Thank you so much.
Thank you.
And then for instance density right to ask a question press star 1 on your telephone.
At the center. So you don't have any further questions. At this time you may continue.
There are no more questions.
So I don't believe the first conference call.
Let me maybe make it a investor relations team as usual is available for any of those as you may have thank you for your I think half of it.
Okay.
Yeah.
And ladies and gentlemen. This concludes today's conference call. Thank you all for participating you may now disconnect.
Okay.
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