Q1 2022 Enel Chile SA Earnings Call
[music].
Good afternoon, ladies and gentlemen.
And welcome to <unk> first quarter 2022 results Conference call My name is Olivia.
Thank you for 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. During this session you will need to press the star one key on your touched on telephone.
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 first quarter 2022 results.
The presentation accompanying this conference call.
Chile is annual report on form 20-F included under risk factors.
You may access our first quarter 2022 results press release and presentation on our website.
W. W Dot and now that C L.
And our 20-F on the S.
He sees website Ww dot S E C dot com.
Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates.
Enel, Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements may come in accurate, except as required by law.
I would now like to turn the presentation over to Mrs. Isabela <unk> head of Investor Relations.
Enel Chile. Please proceed.
Okay.
With Bob Good afternoon, and welcome to Enel, Chile's first quarter 2022 results presentation.
Thank you all for joining US today joining me this afternoon are Steve.
Total web based with Kennedy.
Let me remind you that our presentation and related financial information are available on our website Www Dot <unk> now got.
In the investors relations section and in our Investor groups. In addition, a replay of the quad will be soon available in the final presentation. There will be an opportunity to ask questions via phone or webcast chat through their link as Curt question I'll give you Acacia Acacia.
Participants are connected only mode in the following slides is that they will open the presentation. The farming license strategy update Dan We walk us through Army financial results. Thank you all for <unk> and met low.
Hey, Mike.
Over to you directly.
Thank you Isabella.
And thanks for joining us.
Let me highlight.
Highlights of the field.
Yes.
We continue to reinforce our leadership in renewable market growing renewable.
With connected there are beautiful input.
For renewables.
During the first quarter.
Yes.
Over to Juan <unk>.
Hello.
That could be dealing with.
BJ.
And then Peter first of all in gas availability will be high.
Highlights.
During the quarter Theyre not that already get supplies from us.
We support with our methodology.
Yes.
And obviously you laid out.
In addition, we.
We have contracted with shell for the down.
And then the product goes.
Our operation in China.
That give us more.
The annual General meeting.
Thanks Darren.
The new dividend policy of 30%.
So thanks, everyone.
Good morning.
No we didn't.
Vito.
Then in pesos with payment.
<unk> may seven totaling distribution.
Fiscal year of <unk> 37 in two days and payables.
And lastly.
Are there any general meeting.
Right.
Ian approve the immobility deepening.
Would you consider selling the 51%.
And in Chile.
But at the JMP acted female.
Poland.
Many of you at all.
Building.
Okay.
No.
Let's move to slide four to briefly talk about the market.
During 2021, so a combination of factors that led.
Liberty, but people are correct.
Yes.
Thanks, Dan.
Some of the factors continue to impact the market.
April was the delay in the commission of some removal.
At the company level and the important overall increase of commodity price War.
Ralph Shuttle Crane.
Michelle.
It's been there, but ill fated and maintenance.
Brian .
EBIT ratio.
Okay.
All of these factors have led to increased marketing costs during the first quarter.
However.
We weren't able to cope with these completions bank guava authorities LNG supply.
Which include our loans in energy.
Bethany.
Our industrial footprint, which was successfully delivered during the first quarter.
In this regard it is worth noting.
Yes, well.
Shipman already committed.
For the two ensuring that a lot of supply for the entire output.
<unk>.
Okay.
Three titles.
All of that.
January and February .
We have any bump.
The amount of gas that can move us into two funds.
Categories of books.
All other renewable expiring for really core.
To bring the additional liquidity so let us know.
Okay.
On our 1 billion from portfolio overnight.
We have convened.
<unk> expenses in the feedstock.
And if utilization.
He bought the best position within.
In the current challenging context.
Therefore, given the first quarter, we connected 108.
Many of our solar capacity to improve our closely.
Renewable.
Peter.
In line with our plan and asset optimization, we completed the sale of <unk>, Microsoft 10 months our claim.
Good luck.
During the first quarter Ciena is now at the fast growing.
And as you kind of detail.
We continue contributing to consolidating the accountability from reaching their environmental targets.
Our agreement.
Now, let's see what I Wouldnt say in terms of net global link the Tupac verification movement.
Six.
We continue to deploy the digitalization of our community.
In the first quarter of net income.
But the trends of our client interaction.
<unk> executed through these events.
Despite the complex introduced by the pandemic, we have been able to.
So if a customer there to.
To be in production of our App.
England.
To improve the communication with our customers.
On the network side, our quality indicators continue to improve.
Supported by an increase of ultimate.
At any level of out of the.
As a result, our sales indicators decreased by 15%.
And then to distribute from increased 5%.
Q1.
Compared to Q1, reflecting the EVP of the spending.
And the overall economic data quality and reaching some didn't.
Now, let's see the main kpis on the highlight.
Our commodity.
That is supporting the electrification and the completion of the final consumption on slide seven.
Electrification.
Turn into one of the main theme of the.
Among different process and one of the core elements of our strategy.
Clients, who come in to develop different and.
But I'm, hoping maybe would be totally in Britain via train forward.
So stable future.
Mobility is one of the channel for electrification.
Brian we are working on.
So that's.
The growth.
One example is the creation of analytics with Ciena.
<unk> been focused on E mobility.
During the R&D shareholder meeting on April seven.
The strength of our channels.
With 80, 451% of lithium influences.
Okay.
Sure.
On the E mobility.
Mythomane to accelerate electricity will be beaten the accountant, but in line with the 12 months right.
Maybe 50.
From a scaling on.
In our view the growth.
So I shall bring additional <unk> genuity.
So business.
During the first quarter, we have input for the 170 new.
The boxes.
The split between seed associated with Jakafi.
<unk> been Corporation is also part of our simpler TB, but also.
Greenfield development.
And then as you see improving accordingly.
And bringing the technology closer to the people.
In the fleet.
These are important.
Well at this stage.
We have to develop the Mandarin.
By the end of the first rooftop.
Incorporate portable type partners and bodies.
Which deliver unique and deeply.
Experiences.
That positive impact.
On environment.
We continue to tackle.
It could be political.
Now outside the.
Regional.
Now.
Hi, Peter.
Expanded many of our main financial highlight of the quarter.
Let me start with that.
So many of them apply.
In summary, about what a main financial highlight.
The first corporate Green.
We have applied an investment of $21 million.
Due to the impairment needs on the bulk of the PEO.
The dynamics of the bottom line of $14 million.
For the <unk> field.
One the adjustment applied due to the bulk walls.
$15 million.
We expect that the bottom line of $9 million.
The Q1 2021 Duffy.
And the increase though.
But think of $29 million, mainly due to holding a reason of transmission visa.
As a result of the conclusion of the regulatory status of a useful.
Indexation of the Hyatt ballroom renovation and we couldn't compete.
And then all adjusted net income.
<unk> increased by 41%.
Correct.
Hi.
And the lower financial costs and with video coming from the factory.
Colin maybe in Q1 and one <unk>.
The comp.
Capex reached $167 million at.
At 31% lower than three.
<unk> 2021, mainly due to the connection of the new renewable capacity.
Independent 41.
It's a full reached minus.
$151 million for advancing a significantly reduction both.
But mainly due to the factoring of the bank accounts in maybe Q1 2021 and the sales of.
In tariff on new business online.
Now, let's begin with EBIT Capex on slide 10.
Fully can improve corporate accumulated capex reached 167 million.
Out of which 93.
<unk> allocated to achieve the SVT goal Patrick.
Renewables into the construction of our new renewable capacity.
Customer capex, both though.
<unk> million dollars.
LTC to be local in nature and implementing our new chemical.
Chemical Mitchell.
Asset management Capex reached cleaning in our new England.
35% higher than first Q2021 mainly due to the maintenance in our system.
The elevated Capex reached went on to include $3 million, a decrease of 41%, mostly driven by our renewable explaining some or all of the merger, which added nearly all of the 0.9 openings.
<unk> thousand capacity in December one and the rate simply connected.
So our plan.
Regarding the Mexico leases mid 60 to the lowest capex due to the what we think.
Pretty simple.
In Q1 'twenty one.
Let's move now to slide 11, where we add the summary of the first quarter adjusted EBITDA.
Down accounting for <unk> and.
$6 million.
15% high yet, but spring 'twenty one seamless.
I wanted to income portfolio mix, which resulted in a positive variation of <unk> million dollars.
Mainly related to <unk>.
$82 million higher EPA fine.
One <unk>.
Ryan.
And by the higher foreign exchange of the Canadian business they installed the new PPA agreement.
Anyone in this high yet a degradation in demand.
New renewable capacity, which was commenced in December 2021.
$8 million.
In the middle.
A positive effect on variable costs and processes, mainly due to a more efficient thermal injection.
<unk>.
Bruce.
By imaging component of coverage.
I think we should probably be it.
On the demand for web, partially offset by higher <unk> costs due to the commodity side.
On the FX mainly.
Maintenance.
Were partially offset by higher pulp pricing.
Q1, including some new one.
Mainly due to the higher commodity prices at the worldwide.
Hydrology and several systems that were.
During the period.
And the following upon decline when you spoke about the other element that explain that wide rebound.
Hydrology continued to have an immediate need.
Jim.
With beautiful and throughput of our power.
Power led.
In addition impacted our EBITDA.
More normal level.
Net of amortization and demand accounting product all the duty impact those gleaming neiman look but related.
Okay.
Obviously, the impact of the release of the final.
For a condition that can cause a report issued by the regular output in the first quarter into April .
Final authority.
Through the use of the regional with me since the beginning of the new the velocity cycle.
Great.
And this obviously attributable easement.
The depth and the recovery of the demand in the EU, which.
Which increase alright.
Q1, 'twenty compared with the two loans.
Yes.
Reaching 600 unit level.
<unk> accounted for $10 million.
Mainly running lower Opex significant movement.
With an agreement.
Q1.
And per year.
Got the designation of diminishing visa.
Due to the construction books all of that.
Let me now give you more detail on generation homepage.
Next electricity generation grew by 15 best thing.
Five one.
That was mainly at the rebound for a high end of our combined cycle power plant.
And highest solar generation GPU.
Fully offset by lower hydro generation literally 50 to reduce water ability.
A lot of energy sales increased three 7% during the first quarter 15.
Financially explained by the highest fee with the.
Customer.
Related to the new contract couple.
Coupled with an improvement in politically.
Sure.
Adjusted EBITDA grew four quest claim.
8 billion.
Correctly in the fourth quarter effect that Ed previously.
Thanks.
Regarding our sourcing on default.
Most of the ratings maintain production balances we accounted a total increase of $1 one set of our power products.
Primarily on the spot market to meet the higher demand.
Okay.
Let me now give you more detailed on the networks on page 15.
But to strengthen.
Our network speed.
Reached PS.
England.
We've built a 71% compared to Q1 2021.
Due to the above making effective.
One will probably be with Oprah neutral maintenance.
Randy will be Downslide.
Based on the mix.
And the recovery of demand in lithium reaching three type of thing would be one thing.
Compared to Q1.
<unk> was 18 7 million.
Lower opex due to the humor opinion on two.
211.
The first part of the network.
In this regard.
Two one.
One <unk>.
The demand reached right underneath the increasingly cyber space and the pace of decrease in the Williston basin.
It is lumpy.
But the methodical decrease from recent numerous public.
During the fourth.
Yes.
Now.
On slide 14, let's go through the main side of our group in the Kingdom.
Adjusted EBITDA increased 15.
And to reach a total of bringing significant mineral endowment.
The better results in distribution and <unk>.
DNA impairments and bad debt.
77 million.
Menu umbrella are higher than the first quarter.
During 'twenty one.
Mainly related to the.
Higher depreciation and amortization.
Alright.
Named by exchange rate effect, and the initial commissioning of new solar powered plane.
On the walls and higher depreciation.
And sort of neutral segment relative to the concept of new investments in <unk> and higher amortization of intangible assets related to the new system recently upgraded us and then we see Brazil.
Financial results recorded.
Minimum.
Declining by $11 million alone, meaning four lowered explain ready to to the factory.
In Q1, 2021 in generation business on accounts receivables that arose from the subsidization lobe.
The increase in contact with basically related to the improvement in results in Q1 2000 people.
It is competitive.
Yes, great.
Three questions.
Therefore, the adjusted Q1, 2000, and employment income reached 89 million.
It includes a 41% growth.
Compared to the first quarter.
Yes.
Moving to the tail on this floor.
On slide 16.
Q1, 2015, <unk> reached a negative $161 million up one.
151% below previous year fields, mainly already.
<unk>.
Negative one off effect related to the profits that we made in Q1 from me for one of the spec count which had accumulated during the year in order to manage the cash from the business and.
Target to complete the discount of the sublease, which you'll make in Q1 improved basis Q1.
One which has to reduce the cash conversion I mean 44.
<unk>.
Negative days fixed the related working capital versus the new one mainly explained by.
Embedded.
Revenues from lines correspondence between a famous in Chinas volatile faithful.
Cash flow for the $9 million in Q1 one.
As lower collection of corporate clients in Q1 43 in Angola block 31 distribution with few more head count in.
In the field compared to Q1 2021.
Perfect.
The cash conversion.
Prior year.
<unk>.
During this period and knocked it should be.
And higher financial expenses, mainly explained by the unit guidance.
These effects were offset.
Hi, Ed.
This has already explained and low end contact during Q1, 'twenty, three and mainly related to the lower <unk>.
<unk> raised in the fields incineration and distribution.
Let me now go.
To our best evolution on slide.
Okay.
Our gross debt increased by <unk> 3 billion Butler amount.
$5 3 billion as of March 2020.
Due to an intercompany loan granted by filing fees and insurance are being treated for 300, and Barbara mainly to fund Capex and net working capital.
In terms of debt amortization, our schedule remains when we loaded an average maturity of five five.
Perfect covering here.
We have around $400 million.
And the lending.
The coherent <unk>.
We have already started to evaluate several opportunities in the local and international markets.
This completes the multiple feature function.
Okay.
The average cost of debt in March.
Decreased 2349 from four as of December 2021.
A result of the commercial management Carryout.
Gabriel dual.
No.
On that 20% of our profile.
Currently <unk>.
Our plan is.
Continue to see.
It's kind of back in line with our sustainable business strategy.
In terms of the BDC.
Convenes Webex calls applicable position, we are repeatedly available committed lines visiting the possible.
And the best market coming from the international conflicts.
Eastern Europe .
Now.
I would like to point out some closing remark.
We are always looking at New Orleans bandwidth.
Our generation portfolio, making is being met with <unk>.
And we began to expand much shops, such as the commodity volatility.
All of these cases.
We continue to closely.
Okay.
OPEC.
Asset for more uses of liquidity.
Our clients.
Communities.
We are pleased to announce that we published our first integrated.
Report.
Fourth inclusive financial and nonfinancial information for the game to anyone beetles.
And we also published with 21 four family Book report both right.
<unk>.
Do you see it and get a higher in stock levels and data available in our website and index the spectrum.
The ramp up of electric power.
<unk> fully integrated into.
Our recent moment Andrew.
Our risk management and value creation.
Got it.
It also demonstrates the company's export.
Energy solution, mainly in the accounting and the customization and duplication and.
And comply with our commitments.
The movements in liquid amusements would have a good evening.
Yes, caving endoscopy portfolio management blamed in other case contribute to support the implementation of our commercial strategy.
Same thing.
Nathan It's Lee.
Let me now embolic and feedback.
Thank you, Jim Murphy and before we start I'll work.
Rene section just recall you if you have any questions. Please.
A few questions on the shack or just raise your hands into the fall, okay, but before going let me just ask.
Who are the investors in that and connected that's highlighting that we have now.
Already our integrated report that is valid first integrated report and now so our sustainability report so answers that dimension.
The reports are lined with the different kinds of Bax John in terms of climate change in August . So we would really like to your bag and now so any other information that any comments that you have EDG.
Okay.
Thank you very much and now I will open to Q&A.
Yes Lee.
Thank you, ladies and gentlemen to ask a question on the phone line you will need to press. The Star then the one key on your Touchtone telephone.
No.
Churn coming from the line of Modelo <unk> with Santander. Your line is now open.
Hello, Hi, thanks.
Thanks for the call.
My first question comes from the generation side, what are your expectations for a generation of among your several sources, maybe you could comment a little bit about how these 12 cargoes of LNG compares to last year cargoes.
Cargoes that you will be used and what should we expect from hydro dispatches.
No.
Additionally on coordinator.
Traffic to big water.
For now to face potential.
Potential.
Complex situation during the second.
Our third quarter.
This year also it will be tough.
Are you feeling about this.
Generation situation for the for the coming quarters.
My My second question.
If you could give us.
A little more details on these additional $199 million related to two working capital that affected you are.
During this first quarter. Please thank you.
Okay. Thank you for your question.
We have now geographically, yes, hi.
Luke.
One third.
The 12 <unk> shipments as a trend.
We have already committed.
All of these targets for this year and already exceed free cash flow.
We'll see that UBS is significantly different and better.
And because of that they're going to be equal discussed Argentina. This of course.
If we.
Called us.
And we suppose to receive.
In the summer period.
And so we believe that distribution that unit.
The <unk> and Augusta.
On a.
Otherwise to Lululemon, which is comfortable for what concern the sourcing.
Hi.
For what concern the.
Fulfill all.
Let me say that.
This year.
In.
If you compare this year with last year as I said.
Yes.
And negative FX, because it'll be remains.
And factoring the type curve.
It was an important amount around $150 million.
Related to that base.
Sure.
In a moment.
<unk> business being lower Mark on book of base.
So this is part of the equation of the receivable because of dislocation.
Basically because of the situation.
And it seems rating.
Yes.
And another.
The impact that we have to take into the consideration.
Very deeply.
<unk>.
Amount of Capex.
On a.
<unk> III and the <unk>.
Last clusters.
We do.
To.
And should the commission, particularly though our renewables right. So all the situation.
Alright.
You can see in this slide.
Okay.
Thank you.
Operator, do we get do we have more questions.
And our next question coming from the line of Laurence with Mediobanca. Your line is open.
Hi, as you set them on Isabela.
They can afford to take in.
My question.
Nope.
<unk>.
First one is a follow up on the on the negative working capital due to the first for Tim.
The quick one is bigger.
To beat that.
Working capital absorption by Dave by the DNA.
And the second place embodies the latest.
Can you just help us understand what do you see the net debt to EBITDA.
By the DNA.
And which is the assumption on top of it that.
That forecast.
You too.
And they understand quickly.
Can you kind of update us in the process for the study with you.
And the meta business many thanks.
Thank you very much.
Yes.
For what concern there.
<unk> SSL and negative the result that we had of course.
It's the same.
Kirk.
The committee done.
One off.
And next year and also the.
Yes.
In the field.
Opex it created.
We are expecting to recover the situation by the end of the year.
Speaking of evolution of our business and also <unk>.
So you're getting the fact that of course, we're going to continue the capital projects.
<unk>.
Let me let me confirm.
<unk>.
The thinking there.
The second question related to the Capex.
Do you see that we are confirming the amount that we had already.
Preventing you know a lot of capital that could be for the full year. It was.
Around 1 billion.
Tomorrow.
So all the Capex.
Confirmed.
R&D is going well.
For what concern the net debt.
The developed cost.
You bet.
<unk>.
The evolution.
The renamed.
There is going to be in.
<unk>.
We would be willing to.
Better results in comparison to 2021.
As you know we are.
Looking at expanding your operation.
Of asset rotation.
To improve.
These targets.
Let me say that we know these.
Asset allocation.
Major.
We are going to be around.
Five times.
And we could be more than five times for the readout.
We doubt.
The brokerage.
And then the last question, maybe I didn't get completed.
Can you repeat.
Thank you.
Your last question please.
So the question is could you kind of update us on the process for the study.
Going through the vehicle do you distinguish your business any update on that.
Well actually.
Uh huh.
The group based on that.
Currently we don't have and also for Metro and Unfortunately, as a matter of us.
You know Mitch.
Great.
<unk>.
We believe that we can add.
Additionally, using this type of model.
Of the year.
So as of today, we don't we don't.
In front of us.
<unk> news at least.
Before I move that the company is coming up.
In the second.
PCL.
Thank you.
As a follow up you mentioned that if can.
Our net debt to EBITDA.
Once before asset rotations of the follow up the coaptation would be what is the level of net debt to EBITDA.
The company managed to consider to be sustainable for now and then.
Let me say that.
We are.
Putting.
In brief statement on <unk> to improve.
Our net duration.
Clearly one of the milestones to get into them.
Access will be from Nathan.
And of course as soon as we can.
Come on between information above the growth that's going to communicate to the market.
And we believe <unk>.
The improving the improvement of the mix.
It could be values.
Something amazing.
And in Chile can see bidding them.
<unk> has the.
So we will increase.
And to develop.
The capitalization package.
No.
We are monitoring clearly.
And we have a cleaner.
Action.
Great.
Of course.
Of course, these kind of situations.
Because you know that.
Or the project or the renewable projects going to.
B boosting liquidity shown distributions will not change is the macro funded.
We are raising tuition.
Please send off the income statement.
The last year.
And our next question coming from the line of Etsy kill Fernandez with Merrill Lynch. Your line is open.
Hi, good afternoon, everybody and thank you for the materials as always.
I have a question on the.
Beck limit the.
Receivables for the stabilization fund.
We know that the garment on the power generators center.
And talks but I was wondering if you could.
Perhaps some details on whether a new agreement my imply a higher limit for the fund.
Or maybe.
Lower price for higher duration agreement on the BPA side or something else.
Yes.
Let me say that first of all is that in a very good season.
The government team.
Trying to lease.
<unk>.
The program was that.
In June .
One is going to.
The used totally maybe in traffic from July if we need to find the solution.
We don't have a lot of D.
<unk> from Nathan amount.
The proposal appears to discuss fixing that problem.
What is what they can believe that.
Of course, we are.
We as a company levels.
Association, we are always in both Sweden.
We believe that.
No.
At least for what we understood them, we believe that these.
Portfolio definitely impacts that have been in the previous months because these growing too.
Meetings.
Yes.
The 80 megawatt that Brian .
To manage receipts.
And look into those things.
Yes.
And these.
R&D.
It would be.
Temporary but will lean on us to find debt payments.
<unk>.
For the future.
Related to the <unk>.
Better information.
Sure.
<unk>.
Scott.
But as of today.
Early in the stage of the season so.
Demand was October information.
Okay, great and if I may ask.
Second question.
Well, we saw for the last year, mainly renewable projects winning bids in the distribution auction score of 20 to $25.
Our solar and wind projects right. So with this new scenario for spot prices that should be materially higher than what we thought before for at least three or four years do you think any of these projects.
Our which are scheduled to start in 2023, 'twenty four 'twenty five.
If any of these projects.
Risk.
Not being commission.
Well.
Can you give me the trend of price.
The breakthrough.
<unk> deepened.
And.
Oh.
If I had to talk about anything in sheet of course.
Every time that we decide to take.
We are seeking to do.
Nothing new.
We do remain.
Okay.
Our first of all in terms of seats gain so basically all of our.
Project.
The projection.
You bet.
We have in our projects on nickel assumption are in summary, followed by agency.
And is that increasingly.
Well, John so it because we've got the work is growing.
What could happen in the season clean.
Could be some bleed in that.
Sure.
There's going to be affected by these right now.
Again here, we need to.
Decide whether in London to the time you need to see.
Today short medium loan right because of course in this trough and maybe many of them.
The train.
<unk>.
Forward price with our audience.
What we saw last year in the moment.
And distributions.
With time.
For the previous information.
We don't have any worries about an initiative.
You're right it could be.
This strategy execution to get it.
Some difficulties.
Feels more normalized monthly.
Monthly.
That's helpful.
Okay.
And as a reminder, ladies and gentlemen to ask a question. Please press star one our next question coming from the line of Andrew Mccarthy with credit or capital. Your line is now open.
Good afternoon, just at the Isabella Thanks.
Thanks very much.
Call and taking my questions.
First one is with respect to move the transmission business could you give us a lot.
Thank you.
Scott.
Hi, Hello.
We are not able to hear you suggest like can be close to a mic. Please.
Yes.
Got it. Thank you. Thank you very much.
Certainly I'll try to speak louder.
So my first question was on the transmission business.
There I'm just trying to gauge where you are in the process with respect to the formal potential sale of that asset and also just trying to understand from the presentation.
You showed a sort of.
Transmission EBIT.
Sure if adjustment should we should we be thinking therefore sort of the annualized transmission EBITDA going forward is in the order of $75 million to $80 million.
That's the first question and then the second question was with respect to the fuel costs in the quarter.
If we take a look at.
In particular, the cost of coal we takeout the provision.
You recorded it appears that your unitary cost was very very low, but just trying to understand if I'm reading that right and what might be the high mark.
Perhaps it to begin with thank you very much.
Well.
First of all we need.
<unk>.
<unk>.
Yes.
<unk> touched upfront.
Okay.
And our mission.
The new value cycle.
Such a stopping Jamie Jamie.
Jamie.
Since then we.
Yes.
<unk> started.
We're making a provisional work immediately.
<unk> would be the immediate value.
Now according to the lost income.
Wrap up.
<unk> volume.
So that.
The provision that we need to see anything any different than it was.
Lola.
No.
Well basically.
Both of these things so in other words.
We had in one off effects, because we plan to reduce both the beginning but really.
Yes.
Between <unk> and <unk>.
But even if those were the sachet for BBB.
In the independent contractor of course this is a one off because we are risk quality.
DB.
In the premium gaming anyone because week.
Soon we will be lower than what.
What we've seen right now.
Yes.
So what goes.
And the.
Same store.
We are.
In the process.
And with the offsets.
Excellent as we can enable.
More information and something that.
Within the stores that we go to Q&A.
Market.
Yes.
Yeah.
If I understood well the equivalent above the colon.
You were.
About the fact that the cost of Q1 2022.
And does that include the impairment of oil and diesel.
70 of them I'm not sure if I missed the living room.
Sure.
To contain confirming.
Hi, Andrew.
So once again.
It looks like takeaway.
Good evening.
Yes, yes again just.
Thanks, Mike.
<unk>.
I think first or Mike here, but we cannot we're not able to a new.
Well.
Understood I'll try and speak up so with respect to the call you to treat coal costs in the first quarter 2022, once you Tycho.
Adjusted for the impairment it seems to be a very low unitary cost just wanted to understand if I'm reading that right and if so.
Why is it so.
Luke.
What concern bank cost of corn.
We doubt.
Taking into account of course.
And then.
So the extent of any effect because of <unk>.
Between what I'm doing deep long lived on that portfolio.
Great. Thanks very much.
Sure.
Thank you.
Operator, do we have more questions.
Im showing no further questions from the phone lines.
Okay. Ben Thanks, So let's go here. So we have some questions here from the Vishal.
Sure.
Sure.
Paul.
To start with.
Question strong resilient model Joe Moneda.
We'll have some questions you referenced so edwin.
Joe can you just quick questions and then we go one by one okay.
The first question of the Eagle also obtain from the same so quick on the call.
So with the growth.
He is.
Asking us to give more detail about why the company.
Genius to make whole impairment, okay in 2022 and <unk>.
Jim my or not might be impacted by the COVID-19 crisis to date.
In the second.
One by one.
Well.
For what concern disappoint.
<unk>.
The impairment.
<unk>.
Related to the funded.
Our PDP.
We need to be close.
According to the claim so basically in other words.
The fact that we have.
In that.
It should be.
Close.
Soon.
According to the.
But based on what you mean.
Basically according to the funded.
No.
Okay.
Okay.
Our sourcing.
These are new plasma.
A lot to consider.
Is it now.
You know very well.
Some smaller amount of request for ethanol.
The LIFO.
The flame vein.
Sure.
Hope to be with you Steve.
Amy.
Great.
Any wisdom from Merck that is in the line.
Yes.
The depreciation we continue with this increase.
Yes.
So far.
Okay. Thank you just the second question from <unk>, we have already addressed it but just to give you more numbers so with representing about if we can give more details on.
The LNG contracted for 2022.
So how many LNG cargoes the company has already and direct consumer lines in the first quarter.
In the category.
12, LNG cargoes for the year and we have already used.
K Cup in the first quarter.
Great.
Thank you Pete and then we have other questions on the price optimization mechanism that you have to drive.
So let me go now to.
Other question Zach King song.
Kayla we follow.
<unk> now today and how are you planning to mitigate the effects of the ends of the Argentinian gas supply.
The problem with look I mean, our Q considering the weak hydro of practice for this year is that.
Yes.
As we said we have that.
And long term contract with shell.
So we have.
And supply all aiming.
In AMG category already.
Four bps.
And.
And you have to consider also that the now.
Our.
Blaine.
Margaret.
We did have.
Consider really having to discount.
Argentina gas was available so basically.
If you compare that with our <unk>.
Targets for <unk>.
Yeah.
Better position because of big engine gearing guidance, whether it be.
In Pennsylvania, there already.
And so a very good overview.
The same projection that we declare cut down markedly.
We've shown in the first quarter it was a little bit.
Lower than expected.
<unk>.
Of course the ideological.
Staffing.
So.
For our company the situation seems to hold.
<unk> I believe.
But what we see.
Here this month.
Okay, Brian Thank you very much and platform questions.
Have any more questions from here.
From the shop.
So I would like to thank you all your attention to the joining us today.
I conclude that our conference call. Let me remind you that tab investor relations team will be available for any doubt any feedback that you may have.
Just contact us via our web site.
Okay. Thank you very much for your attention and have a good day.
Bye bye.
Ladies and gentlemen that does conclude our conference.
Today. Thank you for your participation you may now disconnect.
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Good afternoon, ladies and gentlemen.
And welcome to Inoculate first quarter 2022 results Conference call. My name is Olivia and I will be your operator for 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. During this session you will need to press star one on your Touchtone telephone.
During this conference call, we may make statements that constitute forward looking statements within the private.
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 berries.
These factors are described in Enel, Chile press release.
First quarter 2022 results.
The presentation accompanying this conference call and Enel Chile's annual report on form 20-F included under.
The risk factors.
You may access.
2020 results press release and presentation on our website.
<unk> W Dot and no debt.
And our 20-F.
And the SEC's website www.
D C dot com.
Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates.
Enel, Chile undertakes no obligation to update these forward looking statements.
Any development as a REIT.
Some of which this forward looking statements may common accurate, except as required by law.
I would now like to turn the presentation over to Mrs. Isabela Clemens.
Of Investor Relations.
Enel Chile. Please proceed.
Okay.
When Bob Good afternoon, and welcome to Enel, Chile's first quarter 2020 results presentation.
Thank you all for joining US today joining me. This afternoon are CFO do get bank just Kennedy.
We remind you that our presentation and related financial information are available on our website www dot can now got cm.
In the investors relations section and in our App investments. In addition, a replay of the quad will be soon available in the final presentation. There will be an opportunity to ask questions on our webcast chat through their link I ask a question on the Acacia Acacia.
Participants are connected only in Houston mode, and then following slides is that they will open the presentation with army license trend in Jetblue.
Dan We walk us through our financial results. Thank you all for sure and that low.
The next comes over to do that is that quickly.
Thank you Isabella good afternoon, and thanks for joining us.
Let me start with the highlights of the period on slide 13.
We continue to enforce our leadership in renewable market growing renewable capacity.
We connected around zero for input.
<unk> could decrease during the first quarter of this year.
Alright, one give us the profit.
And the cost structure that can be added during the 2022 23 billion.
Methanol and gas availability work with all the highlight of the Davita.
This quarter, they're not that all your gas supply from Argentina.
Byrne, which supported our natural gas properties.
As I will show you laid out.
In addition, this year, we have contracted with shell for around 12, LNG protocols to fulfill our operation in Chile.
<unk> that give us more flexibility.
The annual General meeting has.
<unk> 2007.
The new dividend policy of 30% payout ratio for two things and one in 2017.
This reflects the final dividend.
Zero point.
Then in pesos with seemingly all made putting seven totaling a distribution of the <unk>.
Any lumpy scalia of beautiful maybe set in Chilean pesos.
And lastly, <unk>.
Foundry General meeting.
Right.
ATM approved the E mobility business.
Which consider expanding that 51%.
And we treat it.
Representing a 15 of $12 $75 million.
In addition, during the Q.
Okay.
No.
Let's move to slide four to briefly talk about the market.
During 2021, we saw a combination of factors that led to a very particular situations.
Situational conditioning.
Thanks Ben.
Some of these factors continue to impact the market such as export April the delay in the commissioning of some renewable projects at the company level and the importance of early increase of commodity price orphan.
Hi, Ralph Shuttle Crane hopefully.
Michelle.
Ben turbine failure and maintenance.
Our drilling better EBIT loss ratio on the fees.
All of these factors have led to an increase in marketing cost during the first quarter.
Cool.
However.
We were able to cope with deep ratio, thanks to our solid LNG supply acquisition.
It includes our long term LNG contract with shell and that Jason on gas supply, which was successfully delivered during the first quarter. This year.
In this regard it is worth noting that.
Yes, well LNG shipments already committed.
2042, ensuring our supply for the entire period out of which we have already received.
Yes.
On a non-GAAP between January and April 2020.
We have any bulk.
Posted an amount of gas that keira entered two five LNG cargoes Approx Stephanie.
Our renewable expiring for recall.
To bring the additional flexibility so let's now take a look.
Our <unk> portfolio overnight.
We are convinced that they.
Louisville expansion is a key factor to cope with the AT&T TV and <unk>.
Give us the best approach in the current challenging context.
Therefore during the first quarter, we connected 108 megawatts of solar capacity to prove our closer to get in position renewable development in Chile.
In line with the dollar.
<unk> plan and asset optimization, we completed the sale of <unk>, Microsoft amongst our claim four megawatts during the first quarter G that is now at the fast growth of the energy transition.
And we will continue contributing to consolidate in the country could be from retailers environmental targets.
The <unk> agreement.
Now, let's see our evolution in terms of next level.
The two parts of the presentation.
Six.
We continue to deploy the digitalization of our commercial channel in.
In the first quarter of <unk>.
86% of our client interaction.
<unk> executed through digital channels.
The complexity introduced by the pandemic situation, we have been able to.
The quality of our customer there thanks to the introduction of our op and Whatsapp seamless safety to improve the communication with our customer.
On the network side, our quality indicators continue to improve.
Posted by an increase of ultimate vision at any level of our group.
As a result, our saving the caseload decreased by 15%.
To conclude the energy distribution increased 5% in Q1.
This compares to Q1 2021.
<unk> the easing of the spending.
And overall economic data quality and reaching some didn't.
Now, let's see the main kpis from the highlight.
Our commodity path that is supporting the electrification and the completion of the final consumption on slide seven.
Electrification.
<unk> into one of the main pillar of the.
Amortization process and one of the cost and the means of our package.
And so we've gone in to develop different.
These initiatives.
I'm, hoping you would just go away and it can bring real change forward at full speed.
Anymore.
Mobility is one of the channel towards electrification.
Brian we are working on.
Part of the growth.
One example is the creation of analytics within Chile, which will be focused on E mobility.
During the expanding shareholder meeting held on April 27.
AP things of our shareholders approved the sale of 51% of lithium deployment.
Binding that mentioned.
On E mobility.
Our commitment to accelerate electricity mobility in the account in line with the 12 months right.
Maybe 50.
From a scaling.
In our new growth.
So I shall bring additional generation.
Generation and distribution businesses.
During the first quarter, we have incorporated 107, new electric buses.
The public transportation system associated with Jakafi.
We've been corporation, who is also a part of our simpler but also.
Bringing the development.
Fracture and Damian D C is improving the corticosteroid.
Premium technology closer to the clinic.
Okay.
<unk> Industries, Inc.
These are important.
Although it litigation.
That's correct.
We have developed with the Mandarin.
Salary and benefit the first rooftop.
The corporate photovoltaic panels antibody diversity.
Which deliver unique and differentiated.
See you.
In the dark positive impact on environment.
We continue to tackle.
It could be simpler now outside the.
Regional.
Now.
Right.
And nine.
Summary of our main financial highlight of the quarter.
Let me start with it.
A quick summary of beds that could be applied.
Some money about what a main financial highlight.
The first corporate Green.
We have slides and advancement of $21 million.
Due to the impairment need on the bulk of the PEO.
And then exit at the bottom line of $14 million.
To the therapy.
One the adjustment applied due to the cold dark walls.
$15 million.
But the bottom line of $9 million.
The Q1 'twenty one Duffy.
It has increased.
<unk> expense of $39 million, mainly due to both a reason of transmission visa.
As a result of the conclusion of the regulatory status of the review process.
Indexation of the higher volume on stimulation and distribution businesses.
In terms of adjusted net income.
<unk> increased by 41%.
To reflect this.
Hi, yes.
And the lower financial cost in the period coming from the factory.
Cowen, making Q1 thing for one week ago.
The comp.
Capex reached $167 million at 31% lower.
Through 2021, mainly due to the combination of the new renewable capacity.
Independent of the new one.
It's a full reached mining.
$151 million for advancing a significant reduction quarter on quarter, mainly due to the factoring of the bank accounts in maybe Q1 2021.
Sales of.
In total some refurbishment.
Now, let's begin with the Capex on slide 10.
<unk> core critical weighted Capex reached 167 million.
Out of which 93.
<unk> allocated to achieve the SVT goals.
Macquarie devoted to the construction of our new renewable capacity.
Customer capex totaled $15 million.
Look it could be neutral nature in terms of the maintenance.
New chemical Mitchell.
Asset management Capex reached <unk> 9 million.
Besides the same high yet and then 2021, mainly due to the maintenance in our yield.
The elevated capex reached $103 million, a decrease of 41%, mostly driven by our renewable expansion.
The merger, which added nearly all of the 0.9 gigawatt.
Capacity in December 'twenty, one and the recently connected.
So our plan.
Regarding the network visa mid 60 to the lowest capex deployed in the utilization of this meeting.
In Q1 'twenty one.
Let's move now to slide 11.
Where do we add the summary of the first quarter adjusted EBITDA breakdown accounting for <unk> and <unk>.
$6 million.
15% high yet, but spring 'twenty one seamless.
Our generation portfolio mix, which resulted in a positive variation of <unk> million dollars.
And mainly related to <unk>.
$82 million higher TBA fees.
One thing to do.
Primarily explained by the higher volume.
Exchange of the Chilean peso against the new PPA agreement.
Anyone in this high yet a big leasing demand.
New renewable capacity.
<unk> can mix it in December 2021.
$8 million in there.
EBITDA was defeated.
A positive effect on that.
Medical costs and processes, mainly due to a more efficient thermal injection.
Yeah.
Bruce.
By imaging commodity coverage remains a negotiated publicly.
All developmental work, partially offset by higher <unk> costs due to the commodity prices.
On the FX that maintenance.
Were partially offset by higher net pricing and the Q1 coding for new one.
Mainly due to the higher commodity prices at the worldwide.
Hydrology and several systems that were out during.
During the year.
And the following upon decline, let me talk about the other element that.
What have we done.
Hydrology continues to have an immediate need.
Jim.
With beautiful and throughput of our power less aggravating.
In addition impacted our EBITDA.
16.
Yes.
Net of amortization and demand accounting protocol review the impact of rainy season.
Related to.
Obviously, the impact of the release of the final.
Meacham tight they can report issued by the regular output in the first quarter.
Yes.
Final target.
To reduce the regional we have made since the beginning of the new regulatory cycle back in January to wane.
And the salary indexation in both businesses.
In April the depth and the recovery of the demand in the EU, which increased alright.
Q1, 'twenty compared to 1031.
Reaching this level.
But I expect accounted for spending of about 1 million.
The lower Opex in nickel movement.
With an agreement.
Q1.
And Tanya.
Capitalization of generation research.
Due to the contraction of the cells.
Let me now give you more detail on generation homepage.
Next electricity generation grew.
By 15 best thing.
One two terawatt hours, mainly at the rebound from a higher touch of our combined cycle power plant.
And highest solar generation GPU.
Fully offset by lower hydro generation literally 50 to reduce water available.
A lot of energy sales increased three 7% during the first quarter came from.
Essentially explained by the highest phase III estimate primarily related to the new contract coupled.
Coupled with an improvement in politically.
Sure.
Adjusted EBITDA grew core question.
108 billion correctly in that portfolio effect that had previously.
Sure.
Regarding our sourcing on the bulk.
Of the Arabian maintain production balances, we accounted a total increase of $1 1 billion.
Our products.
Primarily on the off market to meet the higher <unk>.
Okay Paul.
Let me now give you more detailed metrics on page 15.
But to do anything to our network.
<unk> 50.
No.
<unk> growth of 71% compared to Q1 2021.
Due to the above maintenance effect.
One off positive effect on the revenues from business ethics.
Randy will be Downslide tariff indexation in both.
And the recovery of demand in lithium.
Increased.
The same would be one thing.
Compared to Q1.
What are you seeing some data.
Yeah.
Lower opex due to the euro payments.
Q1 any one.
The platform for Panera.
But in this quarter.
With regard.
Two one.
Wow.
The demand reached record increasing type of things and the pace of decrease in Nielsen.
Great.
Hey velocity.
But the tariff decrease from traditional users will be published during the first half.
Yes.
Now.
On slide 14.
Go through the main side of our group leukemia.
Adjusted EBITDA increased 15.
And to reach a total of cleaning significant mineral endowment.
Mostly the best.
The resulting distribution investments.
DNA environment Berk lease.
$77 million.
<unk> learned a lot higher than the first quarter.
During 'twenty one.
Mainly related to the higher depreciation and amortization.
Hello.
Primarily explained by exchange rate effect and the initial commissioning of new startup our plane.
The walls and higher depreciation the mutual recognition segment.
Due to the current set of new investments in both Asia, and the higher amortization of intangible assets.
The new format.
Recently upgraded.
We see Brazil.
Financial result recorded.
Million dollar declining by $11 million.
There are many who have lowered explain ready to do the factory.
In Q1 2021 in generation business.
I will not.
Receivables that arose from the subsidization low.
Increasing contact with basically related to the improvement in results in Q1 2000 people.
Partially compensate.
Yes, that's great.
Three questions.
Yes.
Therefore, the adjusted Q1, 2000, and importantly income reached 89 million, representing a 41% growth when compared to the first quarter.
Yes.
Moving to better sale on this process.
On slide 15.
Q1, <unk> fulfill reached a negative $161 million, 151% below what it means previous year fields, mainly resulting.
<unk> thousand from.
Negative one off effect related to the press that we made in Q1 for you for one of the spec count.
The accumulated during the year in order to manage the cash from the business operation and.
<unk>.
Hi, good community count vis a vis vis your mix in Q1 improved basis too.
The one which has reduced the cash conversion I mean 44, new enrollment.
Negative FX.
Working capital versus the new one mainly explained by.
Instead of our residential line fill corresponding between ethane and ethylene.
Also all the physical premium.
In Q1 one.
A lower correlation of corporate clients in Q1 40 people in Angola block 31 distribution with few breakdown indeed.
In the period compared to Q1 2021.
Perfect.
The cash conversion.
Target.
And you mentioned this period and location.
And higher financial expense, mainly explained by the University.
These effects.
Hi, Victor.
We're ready to explain and low end contact during Q1 2022, mainly related to the lower.
<unk> raised in the fields incineration and distribution.
Let me now go.
To our best evolution on slide.
Okay.
Our gross debt increased by <unk> 3 billion Butler amounting to $5 3 billion as of March 2020.
Literally intercompany loans granted by silencing designation for the treatment for <unk>, mainly to fund Capex and net working capital.
In terms of debt amortization, our schedule remains low with an average maturity of five five.
Perfect covering here.
We have around $400 million.
The latter.
The third matter is being deferred.
We have already started to evaluate several opportunities in the local in the midterm.
This completes the multiple feature function.
Okay.
The average cost of debt and lastly.
Decreased to three nine and four <unk>.
As of December 2021.
As a result of the commercial management.
Gabriel doing more.
On the other end, 20% of our profile.
Currently as Btu.
Our plan with <unk>.
<unk> to proceed with.
<unk> kind of back in line with our sustainable business strategy.
In terms of GDP.
Contains where they're comfortable position, we have a deadly available committed lines considering the possible.
And the best market dominant from a international conflicts.
Eastern Europe .
Now.
I would like to point out some closing remark.
We are always looking at New Orleans bandwidth.
Our generation portfolio, making freenet.
And we began to extend much shops, such as the commodity volatility.
All of these spaces.
We will continue to focus.
Okay.
Moving to Opex.
Asset for more uses of liquidity for our clients.
Communities.
We are pleased to announce that we published our first integrated.
Report.
It includes both financial and Nonfinancial information for the games in any one period.
We also published with Pennington, one sustainable report both through our <unk> line.
And get a higher in stock and debt available.
Size within that spectrum.
The ramp up correctly.
We're supposed to have lead scoring.
Our recent Walden.
Management and value creation.
There is also the demos.
The company's export increased energy production, mainly in the accounting for the carbonization and electrification and comply with our commitments and liquid.
Good evening.
Yes, Kevin and Mcafee portfolio management plane, and how that contributes to support the implementation of our commercial strategy.
Great.
Leverage.
Let me now.
Yes.
Yes.
Thank you Rafi and before we start I'll work.
Rene section of the call you. If you have any questions. Please just a quick question on the shack.
Just raise your hands into the fall, okay, but before going let me just ask.
To help investors and connected that's highlighting that we have now.
Already our integrated report that is our first integrated report and now so our sustainability report so answers that we mention all the reports that are aligned with the different kinds of Bax John Denise in terms of climate change in August So we would really like to your bag announced so and targeting.
Information that any comments that you have <unk> okay.
Okay. So thank you very much and now I will open to Q&A Lithia fleet.
Thank you, ladies and gentlemen to ask a question on the phone line you will need to press. The Star then the one key on your Touchtone telephone.
No.
Churn coming from the line of Modelo <unk> with Santander. Your line is now open.
Hello, Hi.
Thanks for the call. My first question comes from the generation side, what are your expectations for fourth generation. Among your several sources, maybe you could comment a little bit about how these 12 cargoes of LNG compared to last year.
Cargoes that you will be used and what should we expect from hydro dispatches in the in the chart.
Additionally on coordinator.
Traffic to cig water.
For now to face a potential.
Complex situation during the second.
Third quarter of this year also.
<unk>.
Sure.
Feeling about this.
Generation situation for the for the coming quarters.
My My second question.
If you could give us a little more details on these additional $199 million related to working capital that that affected your <unk>.
During this first quarter. Please thank you.
Okay. Thank you for your question.
We have now geographically.
Hi, Marty.
At what point.
The 12 <unk> shipments as a priority.
We have already committed.
All of the target for this year and already free cash flow.
Consider that via the TBA percentage. This is the best fit.
And because of the development of gas Argentina.
Good stuff.
Equally.
Call us.
AP and AR, we suppose to receive.
In the summer period.
And so we believe that distribution that unit.
The <unk> and Augusta.
On a.
Otherwise.
And we want to keep comfortable for what concern the sourcing.
Hi.
For what concern.
If a sale.
Let me say that this year.
Year.
In.
If we compare the deal with <unk>.
Third we have.
And negative FX, because it'll be remade.
The factoring of Baker.
It was an important amount around the $130 million.
Related to that base calculated.
In a moment.
NBC and amount of these business being lower but on top of.
We have also the impact of the completion of the receivable because of dislocation in the AD space because of the situation we've been in.
The exchange rate.
Yes.
Hey, Luke.
And as that.
Jean <unk> to begin clinical studies from Israeli seafood.
<unk>.
Amount of Capex.
Honor.
<unk> gross and three <unk>.
Last quarter alone.
In order to ensure the commission, particularly though our menu offering so all the situation evolves.
Alright.
You can see in this slide.
Okay. Thank.
Thank you.
Operator.
Do we have more questions.
Our next question coming from the line of Laurence with Mediobanca. Your line is now open.
Hi, as you sit down and it's available.
They can ask for taking my question.
I have.
Three the first one is a follow up on the on the negative working capital due to the fed's flipping.
The question is what do you expect to beat that number but the working capital absorption by this by the DNA.
And then secondly sympathies.
The latest.
Can you just help us to understand what do you see the net debt to EBITDA.
Bye bye.
Dan.
Is the assumption on top of it that that.
Okay.
You too.
And they understand quickly.
If you can update us in the process for the study.
But it was really good network business many thanks.
Thank you very much.
Yes.
For what concern there.
<unk> SSL and negatively the results that we've had of course.
Is it fair enough.
To be fully committed.
One off.
And last year and also the.
The field Capex.
Capex.
And we are expecting to recover the situation at the end of the year considering the evolution of our business and also we'll see hitting the fan base of course, we're going to continue.
Capex for the project.
And let me let me confirm.
Are you.
Thinking there.
And the second question related to the Capex, Let me say that we are confirming the amount that we have already.
<unk>.
For advancing in a lot of capital that could be for the full year as it was.
Around 1 million more or less.
So all the Capex.
Confinement and the sand is going away.
For what concern the net debt to EBITDA.
You bet.
<unk>.
The pollution.
And.
Is going to be in.
Sure.
We go into it.
Better results in comparison to 2021.
No we are not.
Looking at expanding the operation in terms of assets rotation in order to.
To improve user this target by let me say that.
We know these.
Asset protection.
The measure.
We are going to be around.
Five <unk>.
A little bit more than five times.
We know the answer.
Perfect.
And then the last question, maybe I didn't get currently can you repeat.
Can repeat your last question.
So the question is could you kind of update us on the process for the study.
David do you distinguish your business any update on that.
Well actually.
Uh huh.
The good based on the deal.
And then also for Metro and unfortunately, as the matter of Opex.
You know Matt.
Great.
Yeah.
We do believe that we're going to have.
Additionally, using this type of model.
Of the year.
So as of today, we've done a rebuild and learning from the rising expectations of our aging.
News at least.
Before I move that the company is coming up.
In the second.
PCL.
Thank you.
As a follow up you mentioned that your estimate on net debt to EBITDA.
Before asset rotations of the follow up the follow up we can repeat what is the level of net debt to EBITDA.
The company managed to consider to be sustainable for now and then.
Let me say that.
We are.
Putting.
In brief statement on <unk>.
<unk> to improve.
Our net debt ratio.
Clearly one of the most significant.
These assets will be from Nathan.
And of course as soon as we can.
Some additional information about the process, we are going to communicate to the market.
We believe <unk>.
<unk> been improving the improvement of the net debt could be values.
Something amazing.
Chile, considering that the ambition, but I know <unk> has been the theme is on Fremantle.
The Queen.
And to develop our.
The capitalization package. So we are monitoring clearly.
Felicia and we had a cleaner.
Action.
The placebo.
Of course.
These scandals situation is a temporary situation because you know that it's running.
All of the projects or the renewable projects.
B boosting liquidity some distributions will not change is the macro climate.
Rabies equation.
Please send off the income statement.
Yes.
And our next question coming from the line of EC Kill Fernandez with Merrill Lynch. Your line is open.
Hi, good afternoon, everybody and thank you for the materials as always.
I have a question on the.
Beck limit the.
Receivables for the stabilization fund.
We know that the garment on the power generators center.
And talks but I was wondering if you could.
Sure, perhaps some details on whether a new agreement my imply a higher limit Florida the fund.
Or maybe.
Lower price were higher duration agreement on the BPA side or something else.
Yes.
Let me say that first of all is that in a very good season that the.
The government is trying to.
<unk>.
And was that in June .
One is going to.
The us totally so maybe.
Traffic from July if you need to find the solution.
We don't have a lot of.
Detailed information about these new.
The proposal of the task who needs to be discussed between the parliament.
What they what they can believe that.
Of course, we are.
We.
As the company levels.
Association, we have always been both sweetener.
We believe that.
These new.
At least for the what we understood to be the DS.
Its portfolio definitely impacts that have been liquidity fund because he's going to.
Meaning.
Yes.
The 80 megawatt that Brian .
To manage receipts.
<unk>.
<unk>.
And these.
This proposal would be.
Temporary book level in order to.
Time and payments.
In many ways.
And for the future.
Future.
It's related to we can have better information.
Sure.
Scott altogether, but as of today, we are really at any stage of the feasibility study.
Further information.
Okay, great and if I may ask.
Question.
Well, we saw through last year, many renewable projects winning bids in the distribution auction score of 20 to $25.
Our solar and wind projects right. So.
With this new scenario for spot prices that should be materially higher than what we thought before for at least three or four years do you think any of these projects.
Which are scheduled to start in 2023, 'twenty four 'twenty five.
Any of these projects.
Risk.
Not being commission.
Well.
Can you give me the trend of price on the breakthrough.
Tracy deepened.
And.
Okay.
If I had to talk about it and she of course.
Every time that we decided to take.
We are seeking to do nothing with it.
We do remain.
Okay.
Our first of all in terms of sales gain so basically all of our.
Project.
The projection of anything to do that.
We are adding our projects under construction or in some required by the SEC.
And is it quickly.
Well John So if you look at the what is going on.
Up in the industry.
<unk>.
Could be some.
Lee.
Right.
That is going to be affected by these right now.
Again here, we need to.
Decide whether London to the time, we need to see.
Today short medium loan debt right because of course in the sharp and may be meeting them.
The train.
So if price with our audience.
What we saw last year in the moment.
And the physician.
Tom.
And to the previous installation.
We don't have any worries about anything about.
You're right it could be.
This strategy execution.
Yes.
But you can be.
Efficiency was more normalized monthly.
That's helpful.
Okay.
And as a reminder, ladies and gentlemen to ask a question. Please press star one our next question coming from the line of Andrew Mccarthy with credit or capital. Your line is open.
Good afternoon, just at the Isabella.
Thanks very much.
Taking my questions.
First one is would you.
We expect to move the transmission business could you give us a lot.
Thank you.
Scott.
Hi, Hello. This is a bad luck here, we are not able to hear you just Mike can be close to or Mike Lee.
Yes.
Got it. Thank you. Thank you very much.
Certainly I'll try to speak louder.
So my first question was on the transmission business.
There I'm just trying to gauge where you are in the process with respect to the formal potential sale of thought asset and also just trying to understand from the presentation.
You showed a sort of.
Transmission EBIT.
Sure if adjustment should we should we be thinking therefore sort of the annualized transmission EBIT going forward is in the order of $75 million to $80 million.
That's the first question and then the second question was with respect to the fuel costs in the quarter.
If we take a look at.
In particular, the cost of coal we take out the provision.
You recorded it appears that your unitary cost was very very low, but just trying to understand.
Im reading that right and what might be the high.
Hi, Matt.
Perhaps it to begin with thank you very much.
Yes.
Yes.
Great.
First of all let me explain it can be deployed.
That infrastructure.
Okay.
And the mission.
The new value cycle.
Tetra stopping Jamie Jamie.
Jamie.
Steve.
Okay.
Starting.
We're making a provisional work immediately.
<unk> would be.
And when you die.
Now according to the lost income.
The ramp up that has been issued by the regulator.
We understood that.
The reason that we need to see anything any different than it was.
Lower than.
No.
Well basically.
Both these things so in other words.
We had in one off effects, because we plan to reduce both the big impact really.
Yes.
So between Jamie in 2020 one.
For these reasons, because we have a sachet for the division.
Of course as this thing is a one off because we are recovering well.
DB.
In the gaming anyone because we.
Assume that EBITDA.
We will be lower than what.
But we've seen right now.
Yes.
So what goes.
No.
The.
Yeah.
So.
We are.
In the process.
And in the process.
Excellent as we can enable.
More information on some things.
In these stores will be going to.
Okay.
Thank you Mark.
Yes.
If I understood when the equivalent above the colon.
You were.
About the fact that the course of Q1 2022.
And Doug.
The impediment of course diesel.
70 of them not sure defense related ones.
Sure.
Gain component.
I can Jim.
So once in a while.
Takeaway two.
Okay.
Yes, yes again just.
Mike.
I think those are my ear, but we cannot we're not able to a new.
Very well.
Understood I'll try and speak up.
With respect to the call due to treat coal cost in the first quarter 2022, once you try to sort of adjust the BNP.
Hammond.
Seems to be a very low unitary cost just wanted to understand if I'm reading that right and if so.
Why is it so.
Look for what concern bank cost of corn.
The readout.
Speaking to the account of course.
Impairment.
Thanks, Tony effect because of Colombia BP.
Between 100 feet deep lung they've gone up postpone.
Great. Thanks very much.
So.
Thank you.
Operator, do we have more questions.
Im showing no further questions.
Fine.
Okay. Thanks, I'll, let Sean here. So we have some questions here from the <unk>.
Chad.
Sure.
Sure.
Paul.
Our sweet spot a question John we're getting a motto Nathan with Regal has some questions you referenced <unk>.
Do you keep your questions and then we go one by one okay.
The first question of the Eagle also obtain from the same so quick on the call.
So with the growth.
He is.
Asking us to give more detail about why the company.
Genius to make whole impairment, okay in 2022.
Turning to you and.
Jim my or not might be impacted by the COVID-19 crisis to date.
One by one.
Yes.
Yeah well.
What concerned at this point.
<unk>.
The impairment of the call.
Related to the funded.
Our facility is foreseen to be close.
According to the plan so basically in other words.
The fact that we.
We have explained that.
It should be.
Close.
Soon.
According to the.
But based on what we mean.
Basically according to the fund.
No.
<unk>.
Okay.
Okay.
Our.
These are new plasma.
A lot to consider.
As of now.
You know very well.
Yes.
Our amount of request for Amphenol.
Sure.
The LIFO.
Lane Bryant.
As of today with you Steve.
Amy.
With that or at least any reconfirm respectful.
So.
It's really is.
In this situation we continue with this increase the ATM that we have.
Yeah.
So far.
Okay. Thank you just the second question from Walgreens, where we have already addressed it but just to give you more numbers so representing about if we can give you more details on the LNG contracted for 2022.
How many LNG cargoes the company has already is already.
Consumers in this first quarter.
The category.
Yes.
12, LNG cargoes for the year and we have already used.
In the first quarter.
Okay. Thank you and then we have other questions on that Brian just amortization macro needs that you have to drive.
So let me go now to another question.
King.
Modules a lot Tony.
Marty we just came out today and how are you planning to mitigate the effects of the ends of the Argentinian gas supply.
The problem with look I mean that you can keep doing that weak hydro practice for this year is that disconnect.
So as we said we have that in a long term contract would shed.
So we have.
And supply all aiming.
<unk> cargo already committed for bps.
And.
And you have to consider also that in our.
Lane.
Margaret.
We didn't have.
Consider <unk>.
Going into the account the Thunder.
Argentina gas was available so basically.
Comparable.
Targets for <unk>.
In a better position because of the again has been gearing up for what it would be.
Intense alright neurology.
And so <unk>.
The same projection that we declare in the capital market day.
We've shown in the first quarter flows.
Lower than expected.
<unk>.
Of course the ideological.
Staffing.
So.
[music] for company the situation seems.
<unk> got the lease.
What we see.
Here this month.
Okay. Ben Thank you very much and platform compliance questions that we don't have any more questions from here.
Sure.
So I would like to thank you all your attention to the joining us today.
I conclude that our conference call. Let me remind you that club Investor Relations team will be available for <unk>.
And feedback that you may have.
Just contact us via our website.
Our telecom okay. Thank you very much for your expansion will have a good day.
Bye bye.
Ladies and gentlemen that does conclude our conference for today. Thank you for your participation you may now disconnect.