Q3 2021 Enel Chile SA Earnings Call
Good day, ladies and gentlemen, and welcome to it and they'll Chile third quarter and nine months 'twenty 'twenty. One results conference call. My name is Victor and it will be your operator for today.
During this conference call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties.
Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors. These factors are described in Enel Chile's press release reporting its third quarter and nine months 2021.
Our results.
The presentation accompanying this conference call and MLG. This annual report on form 20-F included under risk factors you may access.
Third quarter and nine months 2021 results press release and presentation on our website www dot and know that C. L.
And our 20-F on the SEC's web site Www Dot S E C Dot Gov.
Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates and they'll Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate, except as required by law.
I'll now turn the presentation over to MS Isabela kindness hit.
Head of Investor Relations. Please proceed.
Thank you we thought why not do you have good morning, well I'm sure know kidney.
Or just thoughts on 'twenty results presentation. Thanks to all for joining US today I am Isabela <unk> head of Investor Relations. Let me remind you that our presentation related foundation formation are available on our website.
<unk> dot and now Seattle.
Investors section any hour Abby ventures.
After the presentation, there may be an opportunity to ask questions via phone or sad. So the only question. Joining me. This morning, our CEO followed by La Kim our CFO.
Kennedy in the following slides, although we won't bring the presentation with the main highlights of our strategy and operational performance of the quarter, then exactly walk through our financial results.
This call will also be available and as always our IR team team will be continue all available to provide you with any another just tell you that you need.
Also let me remind you that meet that bar keeps advance our connected only easterner mode. Thank you all for your attention and let me handover to Paul Mcdowell.
Thank you good morning, thanks for joining us.
Let me start with the main highlights of the period.
Number.
First let me comment about the unusual situation of the Chilean electricity market.
In terms of hydrology the challenges facing the driest calendar.
And as a consequence the system as required.
Requiring an important support from third much English.
Time will be able to recreate in the first month.
Chile suffered the shortfall Argentinian natural gas forward.
So the LNG price.
Considering this lack of resources in the system.
First month for 2021 could be placed on mushrooms.
Yes.
Buying additional LNG.
Oh gosh.
The supplier work plans that sort of thing.
To say this.
This is.
During the first beta of 50, 51 will be the largest before circle LNG.
Okay.
At the same time, we launched our fourth to improve the performance.
Our idle beds.
Also with minimal load conditions.
Despite all the actions we put in place during 2021, the extent of our scenario as a wash.
With the escalation of commodity prices and a very bad debt.
Especially in.
And the first out easy.
Good evening.
To put in place the remaining preproduction decree.
To date March 2020.
Consequently, our margin remains.
We didn't get challenging.
Invest in renewables could you give any firewood matrix will reduce our exposure to the Norwegian gamal vehicle for them to be a priority.
Great. Thanks.
Our one three gigawatt of new projects under construction with decent size that are advancing and during the last quarter. We also celebrated the start of the construction or the first green hydrogen.
We approach it.
In Latin America located in Miami.
Well that will be reviewed last week and signed an agreement to bring to Chile, the first mining electric truck.
Additionally to date, we have more than 10000 Booth you can see I'm very pleased with safer.
In previous technology.
As part of our forecast to support the contamination overseas, we continue to David our predictions based on <unk> standards, allowing us.
For instance to leverage our expansion through digitally financially.
Now moving to page four.
Our capacity and cost structure.
We continue to develop our strategy toward a cleaner generation metrics.
Renewable energy use because of Liza four different you don't see in the news section.
For our positioning in the market.
During the last 18 months.
We went through some headwinds associated with the COVID-19 pandemic.
The constraints and the work of displacement and closing with the board.
The broker Cds illness.
How close you can burden for instance.
Nevertheless.
Without including Congress today, we have one two G go up of course with under construction of which around <unk> six.
<unk> has been already connected to the system by the end of system.
At the end of <unk>. This year, we are maximizing the life blood drawn from the.
Construction on the remaining project expecting to reach.
Or at least the 900 megawatt <unk>.
Connected into the addition.
Additional 250 will be connected to the grid by first quarter 2022, and the ramp up to full production will be finalized by first I'll split contribute for most of the approach.
The construction of a wind farm of inadequate II will be finalized during 2022, considering the air force to move components over the winter.
CDP.
The 4% to the site location.
With reference to our JV owned fleet on nutrition with Amy and other partners. We have recently started the construction of visa.
In spite of the approach had been cheated.
We expected to be operational by second quarter 2022.
We are fully convinced that along with the renewable energy green hydrogen will be essential.
In the energy transition and foster the company's initial purchase.
Hum.
Interesting.
Now, let's move to the company that should define that come from.
Page five.
And then ex U just funding the central to displace polluting energy sources.
For most of the intensive use of electric the public and private sectors.
So they're taking an agenda that allows the electrification of industrial pause fleece and public transport as well as the implementation of energy efficiency measures.
Private and public buildings.
Although it will display.
Good complement.
The action.
Chilean government committed to reaching 100% dilutive public transport.
24.
Launch of the fed up to replace 1640 buses in early 2021.
Alex we are participating in this process and has been awarded it together we have a partner.
991 electric buses reinforcing our leadership position.
With a market share of.
81%.
In the field of private sector fleets.
We ended with a mining company.
We have presented the first 30 tons electric mining truck.
We then corporation of six electric buses for cross protection of the employees.
Analytics is also.
Most importantly, the necessity charging infrastructure.
For the operations.
<unk> is an important step for the mining industry in Chile.
[noise] concrete process.
Is being made.
In mitigating emissions at the core of the mining operations.
Regarding to the carbonization.
Wholesome and fun.
In consumer we have achieved the milestone of replacing 110000.
Stopes within electrical.
Electrical air conditioning to keep them busy.
These initial people who use shoot when we chose and improves the wellbeing of our CTO and communities benefiting more than 40000 people.
Finally, the physical efficient lighting in our cities and then expand and consolidate person regions.
The award of the month and into service over this public lighting, she thinks about mutual funds.
With more than 30000 public lighting that allow us to reach.
340000 points override.
50% correspond to project.
I would say some time.
Lighting, our CD efficiently and increasing the safety of the citizens.
Now, let's go to network.
Thanks.
Energy distribution improvement reflects the recent easing of the sanitary conditions shouldnt get partial vertical when comparing to the previous year.
Our efforts in the EBIT.
It has allowed us to increase the quality of what.
Resulting in lowering <unk> by 16%.
Our investment in digitalization continues to improve.
The cold touch on this with our clients.
Disputed almost 90% or above.
With our clients have been executed at fluke Sunshine.
Let's now move to the basic service load.
With these expansions we meet each fixation until first December 'twenty to 'twenty one.
Vacation was such a low still affecting the level.
You bet.
As of September they will do that for each.
It's kind of $180 million.
In order to minimize the impact we continue to promote payment agreement with the aim of usually the overdue accounts by September 2021, and more than one year, we have reached more than 58000 payment.
Same integrity.
Our clients all of which 53% correspond to the basics.
Moving to collection.
The ongoing process for the update.
While our billing system.
Most importantly in the digital transformation process of our company.
Temporary workers.
Our PPI versus previous quarters.
We expect normalized normalization of the collection rate during the next quarter.
A quick update on regulation.
On distribution, we expect that the consultant report on the reference model.
Will be released during November.
These these days.
Date is confirmed the regulator a final report could be shoot definitely next year, continuing the challenge of potential discounts it could be.
The final distribution.
<unk> is expected to be ready to really meet the 2022.
I would just mention we have answer expert pilot phase.
The discrepancy is referring to the final ruling for the airport.
Mission systems.
2022 'twenty three.
At over 80%.
As a result, we expect that the new.
Shall be published literature.
Thank you and now we.
Are we done.
Yeah.
Yes.
Thanks Paolo.
Let me start with the summary of our financial highlights on slide eight.
Before starting let me explain that.
The P M.
2021, adjusted EBITDA and net income considered the effect arising from the cold stocking pediment associated to becoming a tool and the <unk>.
<unk> retirement program announced last quarter.
The cold stocking patterns and theyre willing to do that.
So all of them had an aggregated effect.
$56 million and $39 million.
In EBITDA and at the bottom line incremental sequels.
The third quarter at all 2020, one the cold stock impairment amounted to $11 million in EBITDA and $8 million in the group in the Kingdom.
Community Eagles in 2020, the adjustment coming from the cold stock environment in 2020.
$2 million in EBITDA and.
And the net debt.
Impairment of buckling up tool.
Is $659 million on the bottom line.
All of.
I'll describe in the bolt on that slide.
No.
On Capex.
The plumbing on slide nine.
2021 are correlated topics reach.
$735 million.
Largely devoted to the construction of about what new renewable capacity.
Customer topics.
For the $9 million, mainly allocated to build nuclear nature and to implement the new collection system.
Asset management Capex reached 86.
21% higher than nine months being 'twenty, mainly.
Mainly due to the maintenance of a new high voltage.
<unk> in 2020 one.
Maybe some color to it.
Development topics reached six.
But.
$600 million.
Largely driven by our renewable expansion program and development of our DC book some business to continue the digitalization of our network.
Let's now started with that.
Q adjusted EBITDA breakdown on slide 10.
That accounted for $93 million.
They've been through 1% below what about the swing between the fee goes.
Mainly due to.
Hi, PPA since the third Q.
2021 time and he explained by the new agreement started in 2020, one with mining companies as Anglo mainly pet and BHP.
Jasmine due to the indexation and the new contracts are coming from and then distribution suite customer portfolio at the beginning of the.
I draw your lack of Argentinian gas and high yet.
And as I mentioned on prices explain the main body of this quarter that demanded to increase.
The volume of parts and these are the higher price, it's about sysco that yeah.
Let me explain each element that that including that slide.
Paul Foster this volume represented devaluation of almost $120 million.
Mainly explained by the lower generation.
Bulk boxes into costs represented an increase of around $90 million.
Bought it on production costs, partially offset by the aging contracted for the rapid being bought and sold around one on that.
Mhm gas managing rapid thing to dispose of the bodies of $6 million and our EBITDA and then you can eat.
Of our natural gas trading activity in the market.
Following the chart when we have something to beat the balance is coming from Eric.
Recovery of the third Q2 thousand 21 demand in D C bookshop business mainly.
That's due to the release of the Lockdown measures.
But the Gulf on the mine plan.
Net what critical when it came on at Asia, mainly related to the Parisian.
On la whatever moderation on leasing bouchon di.
Which should be.
Right.
To November 2020 and up.
The lower international Nissan Titan incentive over the indexation on bit tardy.
How does that effect accounted.
Accounted for $18 million.
Mainly related to a high yet and it can be done in the quarter, mainly due to the public lighting.
Isn't it.
Lower finance income with central costs and distribution business.
Due to our better quality indicators and the temporary effect during the third Q tweeny.
Reading said cost due to the energy sector.
Thanks, Sean.
Let's move now to slide 11, where we have some money over nine months adjusted EBITDA breakdown accounting for $536 million.
39% lower versus 2020.
As you can see the main effect that.
This same the stupid thing in that.
Uh huh.
How do you get <unk> in the nine months 2021 due to the new agreement already made and then we started in 2021.
Hi, yes bulk parts to this volume during the nine months with an aspect of $160 million.
The increase in the spot price due to the dial in.
And for the commodity availability and high.
Hi, yes commodity prices in the international markets represented an impact of $151 million.
The variable generation costs, mainly impacted by the third quarter, that's all I'll say.
But the commodity coverage of around $8 million totaled $45 million.
You already mentioned gossamer lets say its effect there with the <unk>, but seem to be Dallas.
Uh huh.
The distribution business has had a recall, but the demand due to the flex immediate the lockdown.
And I think the $5 million EBITDA.
And they got the $3 million.
Net political menasha related to the lower solution and studies.
Lower distribution designation tardy.
Oh, that's accounted for.
I mean, you know non lung mainly due to the new contract agreement booked in the first Q 'twenty 'twenty. One would then in D. C. Bhushan you only owns.
No.
Well, let's go through the main driver about wide broken with fee income.
D and embed that to reach $223 million and balances of 42 million mainly related to lower D&A and then soon due to the impediment maybe book I mean between training.
And lower the DNA you need to do.
The professional channel basal seem to be yet.
Net financial results totaled an expense, so what I'm dead band $65 million.
An increase of 47 million, mainly due cool.
<unk> costs.
Mainly related to the Fox planning executing change in business on stability. They can make an exact count.
Clients have been made you could debate.
No and higher financial expense peptide during 2021.
Income tax that's like the impact really didn't know what have you done.
Ah, Yes financial expense and higher tax paid in the quarter due.
Due to the high yet monetary correction defeat them.
It sounds.
That Jasmine nine months.
21 income reached 100.
$4 million.
Yes.
Just your thoughts.
<unk> 2021 for the G SIB philosophy, so dean.
Mainly explained by the lower they'd be done enough and of course, that's for the reason I mentioned in the previous slide partially offset by the lower income tax mainly due to the earning before tax in adults in the monetary correction due to the high inflation the Cowen two vessels left.
Moving to the cash flow on slide 15.
Nine months 2021.
<unk> reached $309 million up 45% lower than previous ERP, what's mostly due to.
No what it would be down due to the already mentioned I draw against spot price effect.
Higher income tax during the nine months.
2021 mainly related to.
COVID-19 mentioned during 2020.
Postpone part of the corporate that's aiming to 'twenty to 'twenty one.
Lola piece called tax payment made during cleaning between and.
Jelena Embeds, a sharp depreciation in the end of 2020 that generated gains resulting in higher tax payment during this year.
And on your financial expense, mainly explained by the cost of the Fox studio musician methane account.
Hi, yet.
All of this the effects of weather.
Oh sure anybody.
Hi in networking capital.
Mr. Sweeney between mainly explained by the fact that in both generation and distribution business accounted for almost $10 million.
Eight transmission line same thing between 'twenty with the cachet impact of $28 million in 2021 but.
But all of a sudden musician alright make anything in 2020, one versus 'twenty 'twenty due to depreciation which made them famous.
Partially offset by sales of E buses during nine months in 2020, it's.
A temporary effect.
In collection in 2020, one mainly due to the implementation of an equal mix of these things.
Let me now go.
No.
Our debt on slide 14.
All our gross debt increased by around $700 million.
So December 2020 are mounting.
$247 billion as a result of new issuance.
Video DAU, and then finance information and third parties.
The new insurance.
All digital inks, which consider its keep your eye the seal to emission of a lot of change on fleet by 2023.
I mean, it really to the Capex execution.
Therefore, we now have 14% of our total gross debt is did you mean.
Our plan.
Needs to continue to.
Just kind of that line.
This is a broadening of our movement toward a cleaner my thanks.
So debt amortization, our schedule remains sustainable with an average of six yeah.
And with the cost essentially align with the last few years.
Finally in terms of liquidity tell us he would give us flexibility to face potential headwinds in the market.
And now on page 15.
Since the first quarter it'll D C. We have been anticipating.
A lot of internal view update that order would be for ciena.
As we show in the slide either platform.
Pet pharmacy inflation.
Quarterly to the values we.
We are faced with cheap and.
And Theres no.
He is.
Tom Miller seamless.
Hi, Shannon.
Which demanded a much higher admission on some other generics and let alone the lack of Argentina and that's what all you got cope with the sharp increase or willing gene in the brain crises expose our status.
When known competitive mix of generation and the highest spot prices.
Therefore, we have revised our number.
It's like press the.
Seven astronauts to reflect the evolution of somebody books.
They started it drove us to predict 2021.
EBITDA peak routes between zero point anything seen them for $9 million.
Implying an evaluation of around $300 million.
It sounds like guidance, Singapore in the last quarter.
We don't see a sanction alleviation on topics.
The most significant part of our development topic.
He's been deployed difficulty involved.
What have you the 2021 scenario.
Uh huh.
It's not a structural one we strongly believe that our strategy of increasing renewable capacity will significantly reduce the exposure to commodity and alright in the following year.
I really didn't know what to you for closing remarks.
Okay.
Thank you.
Executing our investment plan will remain our priority and creek to bring additional flexibility and risk just to our current portfolio.
The regulator presented the proposal to define the new framework for Historicism relations electrical system.
Companies in the <unk>.
Sure.
Their feedbacks from the proposal and we are waiting for the final version will be foolish expected to be published in the next month.
He is an important step for.
The improvement of the user ship neurology.
The resilience and flexibility into the system.
We will continue to support our clients.
Communities to accelerate the amplification of the energy use in order to reach the mid <unk>.
<unk>.
Our strategy will continue to deploy the.
Hi, good ESG standards.
For example, we have been awarded.
And they inform a report that's weighted towards one of the best company in terms of reporting and particles in the can.
In addition in the Pwc study I was one of the companies with the best practice in corporate governance and cheap.
Thank you for your patience.
Now, let's move into the Q&A session.
That's a question at this time, please press star one on your telephone.
To withdraw your question just press the pound key.
Once again Thats star one for questions one moment for questions.
Our first question will come from the line of.
Have you have suarez from menial Banca you may begin.
Thank you good morning, and thank you for the presentation and for taking my questions as well.
I have three questions. The first one Sunday, obviously on the on demand in the market for the recent activity this quarter.
Affected by Hydro and I guess that that's on that the companies are you said take care.
And also by be like the lack of Argentinian Argentinian gas.
Betty Hi International gas prices. So I was wondering if you can give us an update on your gas.
Apply natural gas supply you start to eat and I would look for that for the next couple of quarters, because obviously that is going to be very excited about for your profitability you cancel a hydro conditions continues to be to be difficult. So any guidance on the managerial action to improve our natural gas supply for the next quarter or maybe meeting.
Eight that they got the impact could be helpful. There.
And then second question Sandeep on the keep your eyes during the third quarter. There has been some deterioration on the collection I think you mentioned that because the present data. So you can kind of <unk>.
Right on the retail front that deterioration on the collection.
Got a question this one I like them better Athena 12, and 13 on the on your factory strategy identifies the factories for the.
70 stations make anything you can help us understand how disease and this is working out and how that these accounting many thanks.
Yeah.
Okay. Thank you Javier for your questions.
Will.
Take the first through the second one that we announced together with you separately receptacles.
Regarding.
They got the strategy.
Just to give you an update on the situation.
Starting from.
And the system, but I would say very early October.
The gas Argentina gas has been available for the Chilean market.
We started to improve.
Two bites.
Argentina that is continuing.
Now in <unk>.
Just as it is at an analysis really we don't have a let's say.
So one.
100% back to what I said mentioned it today.
The slope is beginning on October started.
An amount of $2 five.
Medium cubic meter per day.
It.
It is now is increasingly the visa we together.
Together with other players.
Second in the Chilean market that we have firm contracts, we have in Argentina counterparts.
And considering the current situation and considering if that's it.
During the recent times fresh.
Pressure on us.
Energy demand in Brazil, ease a little bit lower.
Demand from upside until the importing from Argentina to Brazil.
We see some more stability.
Well ability over the I guess you talk to mention how you at length.
But Peter let's say early but we didn't distinguish them.
Four.
Additional elements.
During this period.
Our finalizing our negotiation.
With our counterparts in the LNG gas constructed.
Orbit to define the availability of the.
Delivery for the vessels for the mix that Es starting from early 2022. This is important because.
We are working to color OLED <unk> for 2022 including the mix of the early months.
Sure.
And maybe the impact on gross he's a high bidder and that usually if you look at the standard.
We used to let's say a burden.
<unk> now we are doing it let's say.
More of it.
Integrated approach.
Lisa.
We are looking also on the other.
Elements in terms of guest availability the other element that I would like to mention is that but.
The issue you can get all of them.
And especially the Creek.
By Denise.
Let's say some agreements that we have signed with it.
D a local community water in our water babies.
Yeah.
Allow hospitals to keep the level of Beijing, we that high either.
Leather.
Continue to also develop <unk>.
As I mentioned, so yes they are.
Outlook in the next months.
The need for the contribution.
Our messaging.
Ill just note and rain is very very limited.
It gave us.
Let's see.
Samson.
I would say not a negative view for the next months clearly everything is based on a at next month's evolution.
<unk> also.
The commodity price still to be and remain high yet looking at before work.
For the let's say <unk>.
Early 2022.
The guidance regarding collection.
We mentioned the Sip and myself, we are in the process of.
Operating hour.
Our system.
So.
Sure.
Quieting.
Adequate time to migrate 2 million clients on one system now and.
And the team in line and keep working.
Clearly.
Achievement, we will gain a lot of intangible.
Speed and.
Let's say precision until and so we can have a couple.
Capability.
Elaborating the issue.
The weakest.
Weakest more precisely.
Okay.
Wait for the time being we are working for finalizing it.
Finalizing this transaction.
Elaborate a nishu that the base for the months as it looks at them, but we are finalizing the months of October so.
We used to be lagging some weeks of delay that we are calling during November and December.
Regarding the factoring.
Lee.
Just to keep yourself.
Yes.
Alright.
Let me say first of all that.
Up to now.
We sold the one thing between $6 million receivables coming from the price per bit additional methane.
And we have an agreement.
To sell up to around three entering peak so we have seen.
I told him that create that.
Going to be so.
It's huge.
According to the release of the decree because as they.
We discuss it.
We count.
The race.
You bought only one.
Well then they regulate total we'd issued a decree stating exactly how much crazy each genco has been in the portfolio.
Said that Oh.
But if we add in the fourth it allows these crazy high.
So was there any discounting.
Of the receivable I mean, assuming.
Uh huh.
It keeps sheen all of their receivables.
No.
The last moment of 2020 seven.
So it means that that.
At this time being well the money two.
<unk> 2017.
Great.
In Boston.
Is that he has done because we have such a high level of interest expense.
Does that mean.
But in $26 million on all of them.
Is that even though we have.
Uh huh.
We have.
Okay.
And our agreement based on Wechat.
Or will we be.
So we have that done.
Shading, but in general in these cities Yeah, that's right Paul.
The Mt.
Yeah.
Many thanks.
Yeah.
Thank you once again Thats star one for questions. Our next question will come from the line.
We're already seeing from Santander Your line is open.
I apologize that Penn Isabella thanks for the call.
I had some question and sorry, if I repeat any that's already being answered.
Would you comment on the production offshore solar facilities are they producing.
Accordingly to your estimates.
Are you seeing some seasonal deviation in this regard.
The second warranties.
I haven't had any deviation from capex versus the expected guidance and could we see.
Lower than expected Capex execution ceased most of it was that might be it might be the end of this year.
And the last one just to confirm the previous question about natural gas.
You were not able to get more guests occasionally during the past year is that right or.
I misunderstood something here.
From my side. Thanks.
Hi, Andrea.
Thank you for your question regarding the.
Production of <unk>.
Facility, let me comment that.
If we look at.
We see.
The expected.
Generation curve that we project.
Again, we will.
Give me 2021.
Degrees.
English.
Patients due to the execution of the project that has been affected especially in 2021.
From events derived from Dupont D. So we in some cases, we had to wait until the opening of the borders to people.
People.
On board and working on the.
On the sites.
No.
We manage we.
We manage it.
Regarding the delay in the permits from the oncology.
Now we are let's.
Let's say almost a through G.
Clearly each site.
The reality, so what we are projecting usage.
At least 900 megawatts already connected.
By the end of this year.
D remaining considering.
One.
<unk> got the remaining 250 connected.
The early months of 2022.
And the remaining there Brian.
Yes.
Yeah.
The only the only one in the south.
He still requiring some more time because of the transfer you can go to keep so.
So what's that.
I would say we did that.
D. They work on Chinese advancing it.
We started oh, great some of megawatts that are really connected to the grid.
The amount of the disposition.
To full ramp up will take place in the first part of 2022.
We think as well as to let's say to reach approximately the expected level of Capex that we have.
Let's say forecast for this year and we are also working for opening additional additional.
Working not export new approaches so.
The pvt.
The activities are advancing we are very focused on these developments.
<unk>.
We go into effect.
Lower the Capex for this year and I don't remember.
New Capex plan for the for the mix for the following years.
Regarding gas.
Regarding gas.
If you if we look backwards what happened this year clearly.
U S also to consider that would be the plan for dispatching our gas contract.
Yes.
Yes.
Ive discussed and agreed with the counterparty.
Let's say September.
So.
At this time.
Uh huh.
People have to anticipate it.
The shortage of Argentinian gas, so whatsapp payments.
Every player.
In the gas market in shaping the energy markets in Chile is that rewards.
<unk> resources early 2021.
So we manage in some cases to anticipate believe it anyway.
We'll ship, we manage to buy on the spot.
The required amount.
And in the was it the lack of Gasless team remains laser systems of course, not all the players have been able to get.
Clearly starting from.
End of March.
The delivery of shut in gas wasn't the regime.
But considering that the month of July and August, especially the first 15.
15 days of August where the drop was very very low very low.
So.
They eat through the system.
Very much.
Additional.
Cheap additional vessel has been about.
Believer.
Lisa.
But I'd say the nutrition backward.
Looking forward clearly we are managing to have a more acutely bracket the delivery.
Oh for gas around 2022. This is a negotiation it was issued with the Kwanza Park and we were able to take into consideration what the pressure on this sector at the global level.
It is.
Enough of it.
We're trying to call that because literally.
Our our scope we used to call that all the needs that we have in 'twenty two.
Hey, Thanks Paula.
Yes.
And once again.
A question Star one one moment for questions.
And I'm not showing any further questions in the queue I'd like to turn the call back over to Sabella for any closing remarks.
Thank you all for attention to be here with us today as I anticipated we received question I'm.
Sorry.
So I'll take higher questions that we have already received Matthew if you have any other questions or comments. Please let us know just send us a message from the <unk>.
Our team many thanks for your patience and stay safe. Thank you bye bye.
Thank you bye bye.
Okay.
And this concludes our conference call for today. Thank you for your participation you may now disconnect have a great day.
[music].
[music].
[music].
Good day, ladies and gentlemen, and welcome to our Chile third quarter and nine months 2021 results Conference call. My name is Victor and I will be your operator for today.
During this conference call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties.
Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors. These factors are described in Enel Chile's press release reporting its third quarter and nine months 2021.
Results.
Presentation accompanying this conference call and <unk> annual report on form 20-F.
Included under risk factors you may access.
Third quarter and nine months 2021 results press release and presentation on our website www dot and know that C. L.
In our 20-F on the SEC's web site Www Dot S E C Dot Gov.
Readers are cautioned not to place undue reliance on those forward looking statements.
Speak only as of their dates and they'll Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate.
As required by law I will now turn the presentation over to MS Isabela kindness.
Head of Investor Relations.
Please proceed.
Thank you we thought why not do you have good morning, welcome channel Chileans come for 2020, all results presentation. Thanks to all for joining US today I am Isabela <unk> head of Investor Relations, Let me remind you that our presentation and related financial information are available.
On our website <unk> dot and now the CL in the investors section any hour etsy investors.
And to fight off the presentation, there will be an opportunity to ask questions via phone or so.
So tell me.
Joining me this morning, our CEO followed by launching our CFO does that interest you.
In the following slides, although we won't win the presentation with the main highlights of our strategy and operational performance of the quarter, then June Xactly walk through our financial results.
This call will also be available and as always our IR team team will be continue all available to provide you with any another display of that unique.
Also let me remind you that media participants are connected only eastern air mode. Thank you all for your attention and let me hand, you over to Paul Mcdowell.
Good morning, and thanks for joining US let me start with the main highlights of the period the slide number three.
First let me comment about the unusual situation of the Chilean market.
Terms of ideology the challenges facing the driest calendar.
And as a consequence of the system as required.
Requiring an important support from thermal generation.
The same time by the end of the extreme heat in the first months of 2000.
Chile suffered the shortfall Argentinian natural gas followed by the use of LNG spot price.
Considering this lack of resources in the system since the first month or 2021, we put in place or matches.
We will get there by the buying.
Buying additional LNG.
Oh gosh.
Fly our planes with sort of split.
To say gas to the system.
During the first bit of a tricky tricky one will be the largest before fearful of LNG.
In the account.
At the same time, we launched our fourth to improve the performance.
Or either branch.
Also we are meeting those conditions.
Despite all the actions we're taking.
During 2021, the external scenario worse.
With the escalation of commodity prices and a very bad debt charge, especially in July and the first half of the worlds leading desktop.
Put in place the prevailing congressional need equity within two days March 'twenty two 'twenty three.
Consequently, our margin remain unaffected.
We didn't get challenging.
Investing in renewables could you give us if our metrics to reduce our exposure to the dollar.
Just to confirm it can be a priority.
Thanks to our one three gigawatt of new projects under construction that people start on advancing and during the last quarter. We also celebrated the start of the consumption or the source of green hydrogen.
The approach you choose any Latin America located in Miami.
Well I think it will be released last week.
<unk> signed an agreement to bleed to Chile, the first mining electric truck.
Additionally, today, we are more than 10000 booth, EAC and replace it with safe efficient and cleaner technology.
Part of our <unk> to support the contamination of issues, we continue to develop our predictions based on <unk> standards, allowing us for.
For instance to leverage our expansion through digitally financially through it.
Now moving to page four.
Our capacity in process.
We continue to develop our strategy toward a cleaner generation metrics.
Renewable energy field, because Elisa for DMD gene therapy, and it is essential for our positioning in the market.
During the last 18 months.
We went through some headwinds associated with the COVID-19 pandemic.
Of course, as you walk the displacement and closing of the board.
The broker Cds illness.
Our closure confirms for instance.
Without including Congress today, we had one two gigawatt of projects under construction.
Around 46 gigawatt.
Connected solutions.
At the end of September.
By the end of hotels. This year, we are maximizing the left with blood clots in the construction of the remaining project expected to reach.
Or at least a 900 megawatt to be connected into the great.
Additional 250 will be connected to the grid.
By first quarter 2015.
The ramp up to full production will be finalized by first I'll split it for most of the approach.
The construction of a wind farm on <unk> II will be finalized during 2022, considering the effort to new components of the wind facilities.
The 4% to the site location.
With reference to our JV or treat androgen Amy.
We have recently started the construction of the first pilot project in Chile.
We expected to be operational.
Second quarter 2020.
We are fully convinced that along with the renewable energy green hydrogen will be essential.
In the initial transition and foster the company's initial purchase.
Uh huh.
<unk>.
Now, let's move to the companies that show that the final conclusions.
Page five.
And then ex is expanding the set forth to displace polluting energy sources.
We promote the intensive use of electricity with public and private sectors accelerating an agenda that allows the electrification of industrial fleet and public transport as well as the implementation of energy efficiency measures with private and public buildings.
Along with this plan.
Good complement.
<unk>, Inc.
Public transports GDN government committed to reaching 100% electric public transport.
24.
Launch of the fenders to replace 1640 buses in early 2021.
And then Alex we are participating in this process and as been awarded it together with our partners.
<unk> 991 electric buses reinforcing our leadership position in profitability in Chile, with a market share of.
81%.
In the field of private sector fleets.
Revenues in mining companies.
We have presented the first 30 Dawn's electric mining truck.
We then corporation of six electric buses for cross protection of the employees.
<unk> is also implementing the necessity charging infrastructure for the operations.
This is an important step for the mining industry in Chile.
Sure.
Concrete process is.
<unk> been made.
In mitigating emissions at the core of the mining operations.
Regarding the capitalization of.
<unk>.
Finally, consumer we have achieved the milestone of replacing 110000.
Road stopes with efficient electrical air conditioning to keep repeating.
These initiatives reduced Q2 early shows and improves the wellbeing of our <unk>.
At year end communities benefiting more than 40000 people.
Finally in the face of efficient lighting in our cities.
Ex expand a consolidated presence in the regions.
The award of demand. So this OLED lighting system links ago mutual funds.
Of the vehicles with more than 32000 and public lighting.
All of us to reach.
340000 points override.
50% correspond to project carried out outside China.
Regarding our CD efficiently and increasing the safety of the citizens.
Now, let's go to network.
Six.
Energy distribution improvement reflect the recent easing of the sanitary conditions, showing a partial politically when comparing to the previous year.
Our efforts in the EBIT.
Have allowed us to increase the quality of our tenants.
Resulting in lower <unk>.
16%.
Our investment in these studies there should continue to improve the call touch on this with our clients.
In this period, almost 90% of our Kentucky.
With our clients has been executed at fluke ease and challenges.
So, let's now move to the basic service low.
With this extension, we beat expectation until the 31st December <unk> 2011.
Vacation was such a low still affecting the level.
<unk>.
As of September they will do better reach.
$180 million.
In order to minimize the impact will continue to promote payment agreement with the aim at reducing overdue accounts.
By 2021 and more than one year, we have reached more than 58000 payment.
Same integrity with our clients all of which 53% correspond to the basic service.
Moving to collection.
The ongoing process for the update.
So of our billing system.
Most importantly in the digital transformation process of our company as temporary workers.
Our PPI versus previous quarters.
Expect enrolment of the normalization of the collection rate during the next quarter.
A quick update on regulation.
On distribution, we expect that the consultant report on the reference model.
Will be released during November.
These year to date has confirmed the regulator a final report could be shoot early next year, continuing the challenge of potential discounts it could be.
Yes.
The final distribution tariff decrease is expected to be released during the 2022.
On transmission, we have answered expect final phase.
Scrap prices are starting to the final year for airports.
On the transmission system.
22000 22003.
We're at over 80%.
The result, we expect that the new VIP shall be punished literally 2000.
Thank you.
Now.
I will have to say.
Thanks Paolo.
Let me start with the summary of our financial highlights on slide eight.
Before starting let me explain that.
Effect of the year.
2021, adjusted EBITDA and net income considered the effect arising from the cold stock impairment associated to becoming a tool and the balloon.
Program announced last quarter.
The cold stocking pattern and the wounds.
<unk> program had an aggregated effect.
$56 million and $79 million.
In EBITDA and at the bottom line incremental vehicles.
The third quarter at all planning 21, the cold stock impairment amounted to $11 million in EBITDA.
The group net income.
Our community Eagle in 2000 and training the adjustment coming from the coal stock environment in 2020.
$2 million in EBITDA.
And the net effect of the impairment of buckling up too.
Is $659 million.
On the bottom line.
All of this.
Described in the bolt on on this slide.
No.
On Capex.
The plumbing on slide nine.
2021 are correlated topics reached $735 million.
Largely devoted to the construction of our new renewable capacity.
Customer topics.
$49 million, mainly allocated to build nuclear nature and to implement the new collection system.
Asset management Capex reached 80.
Six.
21% higher than nine months between.
Mainly due to the maintenance of a new high voltage project award in 2021.
New demonstration project.
Development Capex reached six.
The $600 million.
Largely driven by our renewable expansion program and development of our DC book some business to continue the digitalization of our network.
Let's now started with that.
Q adjusted EBITDA breakdown on slide 10.
That accounted for $93 million.
Two 1% lower versus doing between vehicles.
Mainly due to.
Hi, PPA scene.
R.
2021, Simon explained by the new agreement.
2020, one with mining companies.
And BHP.
Bad jobs, mainly due to the indexation and the new contract coming from and then distribution suite customer portfolio at the beginning of the year.
Hydrology lack of Argentinian gas and high yet.
And as I mentioned on prices explain the main balances of this quarter that demand is to increase the volume of parts to this other higher priced its investors.
Let me explain each element that that included in the slide.
Paul posture. This volume represented devaluation of almost a $120 million mainly explained by the lower generation.
Bob Bob zinc costs represented an increase of around $90 million.
Bought it on production costs, partially offset by the aging contracted for the rapidly.
So around $100 million.
And gas managing represented a pause at the violence of $6 million and our EBITDA as they didn't cause any.
Of our knuckle down and gas trading activity in the market.
Following this shop, where we have all the building of the balance is coming from.
Recovery of the third Q2 thousand 21 demand in distribution business mainly.
Got it and then due to the release of the Lockdown measures and the step by step.
Glen.
Net what critical when it came on at Asia, mainly related to the Parisian on.
On lowering moderation on the solution side.
Which should be.
Great.
To November 2020 and up.
And the low every morning rational Mitchell Todd its Dennis.
The indexation with Audi.
Got it.
Accounted for $18 million.
Mainly related to a high yet.
EBITDA in the quarter, mainly due to the public lighting.
Isn't it.
Lower compensation costs and distribution business.
Due to our better quality indicators and the temporary effect during the third Q <unk>.
On reading cost due to the synergies.
Three Chung.
Let's move now to slide 11, where we have some money of nine month, adjusted EBITDA breakdown accounting for $536 million.
39% lower versus 2020.
As you can see the main effect that missing that you paid.
Sure.
How do you get <unk> in the nine months 2021 due to the new agreement already made and then we started in 2021.
Hi, Bob parts to this volume during the nine months with an aspect of one on the <unk>.
The increase in the spot price due to the dial in for the commodity availability 90 later.
Commodity prices in the international market represented.
Impact of $151 million.
No variable generation costs, mainly impacted by the third quarter, that's all offset by the commodity coverage of around $8 million total $45 million in the period.
You already mentioned Gospel.
So with the <unk>, but seem to be Dallas.
Uh huh.
The distribution business.
And every call, but the demand due to the flex immediate the lockdown.
And expect of $5 million in EBITDA.
And Meg I E.
Methodical menasha related to the low end solution.
Lower distribution designation targets.
Oh, that's accounted for.
Sending me no non lung mainly due to the new contract agreement booked in the first Q 'twenty 'twenty. One would then in D. C bhushan you'll announce.
No.
Hi.
Let's go through the main driver about like looking at the income.
D and embed that reached $223 million.
<unk> of 42 million mainly related to lower DNA.
Due to the impairment made in book two and between <unk>.
And lower the DNA you need to do.
The professional channel basal seem to PDL.
Net financial results totaled an expense of one on debt and $65 million, an increase of $47 million, mainly due to <unk>.
Costco.
Mainly.
Factoring executing change in business on stability.
Net gains that count.
Hi, Ian clients, I mean, maybe you could debate and.
And higher financial expense.
During 2021.
Income tax that's like the impact really due to the lower EBITDA.
Financial expense and higher tax.
Okay.
Also due to the high yet.
Correction beefeater.
It sounds.
That Jasmine nine months.
21, <unk> reached 100.
$4 million.
That's just the start.
<unk> 2021 on the G SIB philosophy so.
<unk>.
Mainly explained by the lower it would be done enough and it cost us for the reasons I mentioned in the previous slide partially offset by the lower income tax mainly due to the earning before tax in adults in the morning.
Correct, so due to the high inflation the Cowen two vessels left.
Moving to the cash flow on slide.
<unk>.
Nine months 2021 asset sale reached.
Reached $309 million up 45% lower than previous ERP, what's mostly due to.
Lower EBITDA due to the already mentioned I draw against spot price effect.
Higher income tax during the nine months.
Screening 21, mainly related to.
COVID-19 mentioned during 2020.
Postpone part of the corporate that's aiming to do.
Only one.
Lower fiscal tax payment.
Cleaning between and.
Helane Embeds, a sharp depreciation in the end of 2020 that generated gains resulting in higher tax payment during this year.
And yes financial expense, mainly explained by the cost of the Fox studio musician methane account.
Hi, yet.
All these effects are aware of that.
Sitting by the higher networking capital.
Sustaining between mainly explained by the fact that tuning in both generation and distribution business accounted for almost $9 million.
Hey transmission line same thing between 'twenty with the cash impact of $28 million in 2021, lowering but all of a sudden musician alright make anything in 2020, one versus 'twenty 'twenty due to depreciation of the Chilean pesos.
Partially offset by sales so E buses during nine months in 2020.
The temporary effect.
In collection in 2021, mainly due to the implementation of an equal mix of these things.
Let me now go.
No.
On slide 14.
All our gross debt increased by around $700 million base since December 2000.
Duane a mounting.
$247 billion as a result of new issuance.
Video DAU, and then finance information and third parties.
The new insurance.
All digital inks, which consider is keep your eye the seal to emission of a lot of change on fleet by 2023.
I mean really to the Capex execution.
Therefore, we now have 14% of our total gross debt is digitally linked.
Our plan.
Is to continue to.
This can that line.
This is a broadening of our movement toward a cleaner my thanks.
And then so.
Debt amortization, our schedule remains sustainable.
Then average of six yeah.
And with the cost essentially aligned with the last two years.
Finally in terms of liquidity tell us he goes.
So, let's see to face potential headwinds in the market.
And now on page 15.
Since the first quarter, we have been anticipated.
Our internal view updated rhodri for Ciena.
As we show in the slide either platform.
Pharmacy inflation not quarterly.
Accordingly to the dry period, we have faced for cheap.
Theres no deep.
It's.
Last year seamless.
Hi, Shannon.
Which demanded a much higher admission on thermal generation, let alone the lack of Argentina, and that's what I got.
With the sharp increase of LNG in the brain crises expose ourselves.
Well known competitive mix of generation and the highest spot prices.
Therefore, we have revised our number.
Like stress these are the civil a scenario to reflect the evolution of somebody books.
They started it drove us to predict 2021.
EBITDA sheet goods between zero point.
$9 million.
Implying an evaluation of around $300 million sounds.
So sounds like guidance, Singapore in the last quarter.
We don't see a sanction alleviation on topics.
The most significant part of our development topic.
<unk> is being deployed in the following month.
In our view the 2021 scenario.
Right.
It's not a structural one we strongly believe that our strategy of increasing renewable capacity will significantly reduce the exposure to commodity and alright, and then in the following year.
I really didn't know what to you for closing remarks.
Okay.
Thank you.
Executing our investment plan will remain our priority.
To bring additional flexibility and risk to our current portfolio.
The regulator presented the proportion to define a new framework for the stores that are in relation to electrical system.
Companies and associations of their feedbacks from the proposal and we are waiting for the final version of this regulation is expected to be published in the next months.
This is an important step for.
The improvement of the unit shipped neurology.
The resilience and flexibility into the system.
We will continue to support our clients.
Communities to accelerate the amplification of the energy use in order to reach the net zero.
Our strategy will continue to deploy.
Hi, good ESG standards.
We have been awarded.
And they inform a report that 2021 of the best company in terms of reporting and particles and recognition in the EW system as one of the companies with the best practice in corporate governance and cheap.
Thank you for your attention.
Now, let's move into the Q&A session.
Asked a question at this time, please press star one on your telephone.
So we're drawing a question just press the pound key.
Again, Thats star one for questions one moment for our questions.
Our first question will come from the line of.
Have you have suarez from Medio Banca you may begin.
Thank you good morning, and thank you for the presentation and for taking my questions as well.
I have three questions. The first one is on the obviously on the on the margin the margin for the generation activity this quarter.
By Hydro and I guess that that are on that the companies are if you take care.
Also by the like the lack of Argentinian Argentinian gas.
Betty Hi.
International gas prices. So I was wondering if you can give us an update on your gas supply natural gas supply strategy and outlook for that for the next couple of quarters, because obviously that is going to be very excited about for your profitability you cancel a hydro conditions continues to be to be difficult. So.
Guidance on the managerial action to improve natural gas supply for the next quarter and maybe mitigate that they've got the impact could be helpful. Then a.
Second question would be some deal on the <unk> during the third quarter. There has been some deterioration on the collection I think you mentioned that you didn't present data. So you can kindly.
Elaborate on the reason for that deterioration on the collection and the third question is on slide number 13, 12 and 13 on the on your factory strategy, adding five to factoring for the for the year is starting to see some mechanism. If you can help us to understand.
This is and this is working out and how that accompany many thanks.
Okay.
Okay. Thank you Javier for.
For your questions.
<unk>.
Take the first two and the second one.
Together with you separately lead you said before.
Regarding.
They've got the strategy.
Just to give you an update on the situation.
Starting from.
And the system, but I would say very early October.
D a.
Argentina gas has been available for the Chilean market.
Two important.
<unk>.
Argentina is continuing.
Now.
Just as an analogy clearly we don't have a.
Let's say.
Certainly, 100%, but I think mentioned it today.
The slope is beginning on October started.
An amount of $2 5 million.
Media cubic meter per day.
In the study.
It is now is increasingly will be.
And together with other players.
Sector in the Chilean market.
Firm contracts, we have.
Argentina counterparts.
And considering the current situation and consider it.
During recent times pressure.
Pressure on us.
Energy demand in Brazil is a little bit lower.
Demand from our side, so reporting from Argentina to Brazil.
We see some more stability.
Well ability.
Judy I guess, it's hard to mention.
But Peter let's say early but we didn't get situations.
In the fourth.
Additional elements during this period we.
Finalizing our negotiation.
With our Counterparties the LNG gas constructed.
Order to define the availability.
Delivery for the vessels for the next the Es starting from early 2022. This is important because we are working to cover all of them.
The periods before 2022, including the mix of the early months.
Maybe the impact on gross.
Hi, there.
Usually if you look at the standard.
We use to let's say a barn.
So now we are doing it let's say.
More integrated approach.
Usually we are looking also on the other elements in terms of gas availability. The other element that I would like to mention is that.
The issue you can get all of them.
Especially the Cree.
By Denise.
Let's say some agreements that we have signed.
The a lot of community water you know what our pacings.
Yeah.
Allow hospitals to keep the level of Beijing, We did high yes.
Sure.
Continue to also develop <unk>.
Argentinian gas as I mentioned so.
Does the outlook in the next months, even if the contribution.
A mezzanine debt or.
No.
<unk> is a very very limited and would give us.
Let's say.
Samson.
I would say not a negative view for the next months clearly everything is based on when the next month's evolution.
<unk> also.
The commodity price still remain.
It remained high leucadia before work.
For the let's say <unk>.
Early 2022.
The guidance regarding collection.
We mention separate myself, we are in the process.
Our.
Our systems so.
Sure.
Sure.
Requiring adequate time to migrate 2 million clients from one system to another.
Put exiting in line and keep working.
Clearly clearly.
The regime, and we will gain a lot of intangible.
Speeds.
And let's say precision until and so we can have that capability.
Elaborating the issue.
<expletive>.
Weakest more precisely.
Oh wait.
The time being we are working for finalizing it.
We're finalizing these transition.
And a related issue that the base for the months as it will sustain but we are finalizing the months of October so we do that.
We see that having some weeks of delay that we are calling during November and December.
Regarding the factoring.
Lee.
Answer to future Sip.
Yes.
Alright.
Let me say first of all that.
Up to now when we when we sold the $226 million of receivables coming from the price per bit additional ethane.
And we have an agreement.
To sell up to around 350.
So we have all seen.
I told him that create that there's.
Going to be so.
In the future.
According to the release of the decree because as they.
We discuss this all the time we count.
The race.
The only one.
Then they regulate total issued a decree stating is that clean.
March.
Crazy each bank has that in the fourth quarter.
You said that the.
The impact that we had in the focus on those is pretty high.
It goes there and discount.
Of the receivable army assuming hmm.
It keeps sheen all day receivable.
The last moment of 2027.
So it means that that.
At the time being the money from 2017.
Breaking bulk Panther in these cities because we have such a.
High level interest expense.
This year that we made there.
$226 million at all.
Capital.
It means that even though we have seen it.
Yeah.
Yes.
And then getting in basal which inc.
Sure will.
B.
David.
So we have that done.
Shading, but in general in these cities equals yes, that's right.
Boston amount.
Yeah.
Many thanks.
Yeah.
Thank you once again Thats star one for questions. Our next question will come from the line more loyalty CME from Santander. Your line is open.
At our lodges that Penn Isabella Thanks for the call.
I had some question and sorry, if I repeat any of that is already being answered.
Could you comment on the production offshore solar facilities.
Are they produce.
Accordingly to your estimates.
Or are you seeing some seasonal deviation in this regard.
The second warranties.
Are you, having any deviation from capex versus the expected guidance and could we see a lower than expected capex execution since most of it was.
At the end of this year.
And the last one just to confirm the previous question about natural gas.
We were not able to get more guests ppas during the past year is that right.
I misunderstood something here.
From my side. Thanks.
Hi, Andrea.
Thank you for your question regarding the.
Production of solar facility, let me comment that.
If we look.
We see.
The expected.
Generation curve that we project.
The growth this year or beginning of 2021, absolutely the reason.
Remove bullish in relation to <unk>.
The execution of the project that has been affected especially in 2024.
From events derived from beef. So we in some cases, we had to wait until the opening of the borders too.
People.
Onboard and working on the.
On the sites.
No.
I remain as we.
We manage it.
The government regarding the delay in the permit from the oncology now.
Let's say almost to regime.
Clearly each site each day.
The reality, so what we are projecting to have.
Sure.
At least 900 megawatts already connected.
At the end of this year.
The remaining considering.
<unk>.
<unk> the remaining to us 250 connected.
The early months of 2022.
The remaining plant.
Yes.
The only the only one in the south.
You see requiring some more time because of the transfer and globally.
So what's that.
I would say we did that.
They work on site advancing it.
We started right.
Some of megawatts that are really connected to the grid.
The amount of the Digitization.
The full.
Through the ramp up will take place in the first part of 2022.
We think as well as to let's say to reach approximately the expected level of Capex that we have.
Let's say forecast for this year and we are also working for opening additional additional.
Working out is for new projects so.
The pvt.
The figures are advancing we are very focused on these developments.
<unk>.
We go into effect lowered the capex for this year.
New Capex plan for the for the mix for the following years.
Regarding gas.
Regarding gas.
If we look backwards what happened this year clearly.
U S also to consider that.
The plan for dispatching.
Our gas contract.
Yes.
Neel discussed.
Discussed and agreed with the counterparty.
Let's say in September.
So.
At that time.
And it was not possible to anticipate.
The shortage of Argentinian gas so what's often.
A replay.
In the gas market, achieving the LNG market in Chile is that.
It was a lack of resources in the early 2021.
So we manage in some cases to anticipate.
Believe it anyway.
Shift we managed to buy on the spot.
Yeah.
And the required amount.
Yes.
And it was the lack of gaseous fuel remain blurred because not all not all the players have been able to get.
Clearly starting from.
End of March.
The delivery of shale gas wasn't to regime.
But.
Seasoning.
The month of July and August, especially the first <unk>.
Days of August.
The drop was very very low.
So.
To the system.
Very much.
Additional.
Cheap.
The vessel has been about believer.
Early September so these let's say these nutrition bancorp.
Looking forward, we are managing to have a more rapid delivery.
Over gas alone in 2022. This is a negotiation it was an issue with the Kwanza Park and we have also taken some consideration of what the pressure on this sector at a global level. So.
And not us.
We're trying to call that because.
Our our scope we used to cover all the needs that we have in 'twenty two.
Thanks Paula.
And once again.
A question Star one on bone for questions.
And I'm not showing any further questions in the queue I'd like to turn the call back over to Sabella for any closing remarks.
Thank you all for sanctioned to be here with us today as anticipated we received questions sorry.
Alright.
So I'll take higher questions that we have already received Matthew if you have any other questions or comments. Please let us know just send us a message from them.
Our team many thanks, prioritization and Stacey Bye bye.
Thank you bye bye.
Thank you bye bye.
And this concludes our conference call for today. Thank you for your participation you may now disconnect have a great day.