Q3 2022 Enel Chile SA Earnings Call
Okay.
Good afternoon, ladies and gentlemen, and welcome to <unk> third quarter and nine months 2022 results Conference call. My name is Victor 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.
Answer session to ask a question. During this session you will need to press star one one on your 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.
Results may differ materially from those anticipated.
Forward looking statements as a result of various factors. These factors are described in <unk> press release reporting its third quarter and nine months of 2022 results.
The presentation accompanying this conference call.
<unk> annual report on form 20-F included under risk factors you may.
They access our third quarter and nine months of 2020 results press release and presentation on our website www dot.
Scott.
Al.
In our 20-F on the SEC's web site Www Dot FCC dot Gov readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates.
China, and 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 would now like to turn the presentation over to MS. Isabela <unk> head of Investor Relations of Enel, Chile.
Please proceed.
Yes.
Well I'll start with that and you and welcome to Enel, Chile third quarter and nine months 2022 results presentation.
You all for joining us today, joining me this afternoon our CFO .
Kevin our presentation and related financing formation are available on our web site Www Dot <unk> dot yet in the Investor section and in our App investors. In addition, a replay of the call will be available at the end of this presentation there will.
Be an opportunity to ask questions on our webcast chat through building ask a question on this occasion media participants connected only in listening mode.
In the following slides that can be opened the presentation with our key red light.
Peter passing by markets and strategy outlook, and finally to our business economic and financial performance.
Thank you all for joining US today now, let me handover to such as ethane.
So it is available.
Afternoon, and thanks for clearing that.
With the highlight of the period.
Great.
We maintained during our last call the rainfall in the low <unk>.
Hello Beth.
Yes.
We can see.
It met the ideal production during the third quarter. Therefore, we maintain our.
Good.
Okay.
Sure.
Argentina and natural gas.
Well for early October until the end of April .
Great.
The associated with better.
Okay.
Decreasing both Brian .
Exploration by promoting given.
Scenario.
We have been taking several management actions.
This ratio and take advantage of the market I believe it is all about.
Moving that our philosophy is the reliable.
Good.
The Gaslog <unk> vision is built in.
Lastly, mitigate.
Got it.
We complete the process of the coal phase out.
And each year.
During the third quarter, we update there are zero point.
Gigawatts of additional capacity.
<unk>.
You gave us yesterday.
Regarding our economics.
We say temporary.
Our relative to the commodity.
Yeah.
During the first half of this year.
Thanks <unk> bin.
We will be in play.
Production therefore.
Idaho has changed translated in Vermont.
Yes.
As a result, our view of our guidance of the 2017.
And finally weaker.
We had an important.
Our optical.
The antitrust body approved.
Approved.
So now we are up in Asia, which the buyer will make a central.
Sure.
<unk>.
Sales of debt by the end of.
Now, let's move to slide five.
Please talk about the market situation.
We have developed a lot of quality.
Glenn.
Our company this year has been facing a challenging scenario due.
Due to the sharp increase in the commodity prices.
Michelle bolstering increases eligibility condition.
Out of the.
Nevertheless, we haven't been able to develop.
Does that.
Help us cope with green <unk> within our own $440 million.
It's better.
<unk>.
The improvement of rainfall in the third quarter led to an important recovery.
Generation.
Moreover, our new connected renewable project, including us.
In the field.
On a path of improvement.
Natural gas business in the period by the increased level of need though by the team.
The cargo from different players.
They have a lot of optimize the operation of our combined cycle our play.
In Denmark every out Scott.
Steve.
Now, let's move to slide <unk>.
Talk about Jeff third edition energy transition strategy.
The call to doubt that we have been carrying out.
They kind of organization is one of <unk> group's strategy.
The decision to close the plan.
It.
It was taken in the context of the agreement to shut down coal fired power plant time with this <expletive> in government.
In June .
Yes.
Therefore, we decided to anticipate that these out of both units okay.
Okay.
And then Sheila has taken a great step forward.
Process of urbanization, maybe increasing renewable energy.
Conventional book I mean ethane.
Look I mean their shutdown is part of the implementation of <unk>.
We.
Which means.
Incorporating technological social and environmental solutions in place in the water of the plane is contract and the community.
Lisa.
We are analyzing several therapies total revenues and 100% of the pulp activity I believe.
The option to be relocated within the firm, but it operates.
Aynsley.
This is the true meaning of all the inclusive in that energy transition ensuring that no. One is left behind.
Let's now look at how we are consolidating our renewable leadership herbalife.
During the last year, we have focused most of our work on developing a diversified the renewable market.
In line with our de Carbonization strategy aiming for a clean energy luxury.
As you can see our renewable capacity continues to increase.
Well, it's better we have connected 225 megawatts of solar.
In this period that we received the authorization to start the commercial operation of the adoption of the whole plan there.
Hybrid.
Plant in Chile, being associated with the value of ILUVIEN.
Okay.
Additionally.
We received authorization to start commercial operation of the full daily levels right.
Each category.
Bifacial.
<unk> technology for greater efficiency.
<unk> solar radiation.
The renewable potential of the country continues to represent an attractive opportunity and we continue consolidating our leadership contributing to the transition from the current energy market or form based on 100% renewable configuration.
Now on page eight let up.
Let us look at our electrification strategy.
One of the key elements to face the climate change is that the cannibalization of the political dam showed through.
The funding to be powered grief in both months.
Yes.
Monday, and combining with the renewable growth will be Asia to reach that goal.
But the more the quality and the digitalization of our network.
The core of our branch and we continue working to improve all indicate as you can see the slides.
Additionally, we are very different.
Different project and partnership aiming to Decarbonize, the energy consumption of our clients let.
Let me go through some example of the beating.
Regarding novartis.
But these projects are being developed but the metropolitan region.
Bobby Congrats location.
So there are core.
Eric.
Reducer, we reached training E buses that all in 2020 with an estimated cost of savings.
You.
Gigawatts hour.
Related to the ECP segment, we signed that.
Really shipping with the Chilean National Association.
Development projects with a focus on led lightning Walter.
B the assembly.
Analytics.
It's part of our simpler CFO .
Finally.
We are developing a product for peak TV play of the forestry and paper company.
<unk> with a total of one megawatt.
This is part of our efforts to provide solutions for our clients supporting them to reaching that kind of take a breath.
Let me now detail, our economic and financial effects of the period.
Yes.
What a short limited objective.
In nine months and in the third quarter activity.
And adjustment in EBITDA due to the impairment made through the course of the year, which amounted $60 million and $1 million respectively.
This adjustment had an effect on the bottom line of $41 million in the nine months instead of a $4 million in the call.
In the same period last year.
We applied an adjustment due to the coastal level.
Yes.
Element, which amounted to $48 million in a month and $10 million in the quarter.
At the bottom line with these effects amounted $3 7 million in the nine months.
Respectively.
The Q3 2022, adjusted EBITDA increased 281%, reaching $442 million.
Mainly due to the better growth in the quarter.
Optimization.
In support of the new normal.
Nick.
Last year.
These effects have also impacted the main most anything to adjusted EBITDA.
Which increased but phase III.
<unk> $543 million.
Yes.
In terms of adjusted net income during the nine months.
These increased by 140%.
Collecting the higher EBITDA of the period.
And the lower cost timing from the factoring of Becker.
In the first half, particularly one to improve the liquidity build.
In this quarter the net income reached $118 million due to this and resume mention before.
Nine months 2018, Capex reached $750 million.
Is 15% higher than 90, none more.
And at any one mainly due to the construction of new renewable.
In the third quarter, our Capex reached one 3 million, 15% higher than the same period this year.
Okay.
For a negative trend there for a premium presenting a significant reduction in the landmark lets us last year.
Driving by the stabilization mechanism effect in the nine months.
This quarter <unk> reached.
Reached 148 million.
Reflecting that to me it doesn't make any headwinds.
Now.
Let's review.
More about Capex, so glad David.
During the nine months of 'twenty three.
This capex reached $750 million.
Of which 93% of linked to the SBC goals, mainly related to our renewable growth.
Customer capex.
The $2 million.
Will mainly focus on grid segment.
Quality and digitalization.
During this period for our customer can be neutral next year.
Yes.
<unk>.
So.
Asset management Capex reached $185 million.
And was mainly focused on maintenance and repair activity.
To ensure the continued resilience of our operations.
Reducing <unk>.
In terms of generation business larger Capex was deployed in the maintenance of either <unk> or <unk>.
The loss is.
Hello.
The greater usage of these facilities.
Yes.
Development, Capex, which are $152 million.
Representing an increase of 7%.
Mostly related to our renewable expansions claim referrals.
<unk> seen in our projects under construction.
Sigma about what commitment of the recapitalization goals.
Okay.
Let's now move to.
To slide 12, where we have a summary of the third quarter adjusted EBITDA breakdown.
<unk>.
$442 million.
The variation was mainly related to an increase in our EBITDA.
<unk> learned that the cleaning million dollar in the first two.
Primarily explained by the higher devaluation of the Chilean pesos.
Sure.
Renewable growth, mainly due to the new capacity of the $15 million EBITDA would be there was no.
$94 million due to the better hydrology.
Gas optimization activity that generates $100 million.
Great.
FX.
That I have just mentioning that they are insured by the weather bye.
A negative.
$76 million related to variable cost.
Mainly due to a higher thermal generation cost relative to the commodity prices.
In regards to the additional costs due.
Volume and by the AG commodity coverage destroyed.
And the higher spot pricing to see soon the third Q3, mainly due to the higher commodity prices.
Following a midnight, let me talk about the element that explain our EBITDA.
Great.
The negative impact of <unk>.
5 million, mainly related to the provision of regulatory filings and network.
Due to their noncompliance on quality services index.
Babies per year.
Partially offset by tariff indexation in both distribution and transmission lines.
The effect in the period towards the AG East remains debt associated with the bone.
Which had a negative impact from $15 million.
Opex and other effects accounted minus 28 million mainly related to the higher inflation costs.
Excellent and maintenance costs.
Let's move now.
Slide 15, where we are.
In summary, our nine month adjusted EBITDA breakdown.
Accounting for.
A 43 million.
Hi, Ed.
Anyone.
Sure.
This variation was mainly related to $310 million.
In Venmo very cynical, primarily explained by the higher foreign exchange of the Chilean pesos.
Our renewable growth contribution mainly due to the new capacity.
The $3 million and they did not and then better it rose in the third quarter, Anthony but of $68 million.
Gaslog, Sydney patient activity that generates $103 million.
On the fact that I, just mentioned were offset by a negative 170.
76.
And variable cost.
Mainly related to our highest modulation cost due to the commodity prices.
And Tanya reclassification cost individuals due to the higher voting.
Partially offset by a more efficient thermal generation to build coverage.
And negative $263 million due to the higher spot price indices.
First name more equal.
The remaining variation of our EBITDA comes from.
The lithium in Angola, and due to the greed remuneration demand mainly explained by.
14 million dollar millions to the release of the final reclamation.
Mission that is taken in the report issued by the regulator in the third quarter.
This panel.
We reduced the provisional with Mead.
Since the beginning of the new regulatory cycle.
<unk> been generating.
$2 million onsite in litigation in both.
Business.
And the recovery of the demand and the details of which increased 7% compared to the amendment and if anyone reaching for it.
Funded into Iras.
These effects will go.
By.
The hedging instruments associated with the bond and the higher duration business expanded by.
$15 million.
Mainly reflecting the higher ethylene costs and operational maintenance activity is effect.
By a higher capitalization of the period.
All demo.
Yeah.
With the confidence that we will reach.
Sure.
EBITDA goal for this JV to retool.
In the last call I explained that our generation business is quite seasonal.
It is mainly related to the fact that from.
June globally, we have the best operating CWT ciena associated with that as opposed to <unk>.
And at the beginning of our stream.
With that be flat hyatt either elimination of that country.
Associated with the <unk>.
All of these.
Associated with the long position on natural gas supply resulted in the highest generation either.
And the gas optimization Utica, Hello article five Bcf EBITDA guidance.
Let me now give you more details on financial and keep your eye on page 15.
Okay.
Net electricity generation increased by 13% to 16 five.
Our international video of 23 to <unk>.
Mainly resulting from higher Disbursal hour.
A greater either production due to the improved rainfall coupled with the highest generation from.
Renewable sources.
<unk> power production, mostly related to the additional capacity of new projects.
Similarly, net generation increased 36%.
You'll see that of our power during Q3.
Okay.
Highlighting the improved pilot production.
Data generation from.
Renewables both.
Our energy sales increased 14%.
So mostly related to higher sales.
To pick up.
I'm really due.
Due to the new phones that.
Platform with greater sales to regulated Scott.
During the third 233 into digital sales grew by three.
7%.
Mainly as a result of higher.
It's Scott.
Now.
On slide 15, let's go through the main driver of.
Growth mid teens.
Our nine months adjusted net income.
$250 million, representing an increase versus last DSP use of whatever.
Thanks.
The main imbalances are coming from higher adjusted EBITDA, reaching.
<unk>.
Our teams have spent already explained it.
Sure.
Tanya.
Impairment and bad debt by $32 million basis.
Result, mainly related to.
Higher depreciation and amortization is primarily explained by the exchange rate affecting the Beatles and the initial commissioning of a new solar power plants.
And the higher depreciation the distribution and transmission segments.
Related to the new products and higher amortization of intangible assets related to the new commercial system.
Upgraded.
And then it goes down.
Also we had an idea provision on bad debt and the distribution business, mainly due to the increasing overdue debt in the resale value.
Got it.
Alright.
<unk> recorded an improvement of 64.
In the north.
So.
Mainly due to the lower expenses.
Related to the factory.
Last year in duration business on account receivable that arose from the stability law.
Income taxes decreased by $25 million, mainly related to a higher.
Thats great to the monetary correction.
Yes.
Offset by higher pardon.
Certainly we factored out of the company due to the better EBITDA and financial results.
Adjusted net income.
The 10-Q2's initial reached 100 million.
Which represents an increase of $128 million.
But mainly explained by the CMA.
The nine months.
Moving to the asset sale of the nine months previously.
Steve.
The Menlo and <unk> talked about amount in may.
It's been there for it during the year.
Yes.
Mainly explained by.
The accumulated stabilization mechanism, we expect in our receivable.
Menlo finished in April .
$338 million.
Reducing the cash cash conversion.
Let me highlight that.
70.
$67 million related to the stabilization mechanism approved 390.
London and $71 million.
Related to the new make an accrual.
This is <unk>.
According to the mechanism the law recently approved.
The $271 million, representing a temporary effect.
We expect to recover within the first half of the net.
Through a financially.
Sure.
Currently by the Chilean enrollment numbers.
The working capital.
Account, but a negative impact of tier four engine.
Mainly due to.
$229 million related to the Delta payable through September 32 vessels at December 31, mainly coming from Capex.
From providing the.
Most of the impact.
Also be recovered within ECS.
$107 million due to higher.
Mainly due to the energy spot but.
Most of it to be recovered by the end of the year.
Temporary effect of $40 million related to lower collection.
Mainly associated with the fine tuning of a missile system updates and these effects were partially offset by the fact, putting executing minimal 23 to <unk> 90.
Sure.
Income tax reached 60.
The $4 million with regards to the variation versus going into a new one the figures I would like to recall that last year number was impacted by FX losses.
Our statements on that.
And finally, the financial expense amounted to $155 million related to the debt costs paid in the period.
But what concern the Las Vega.
These include expenses related to the best path is.
Is tremendous.
Sure.
Moving to our best of breed.
Yes.
Our gross debt increased by $1 billion.
Mounting to $6 billion.
And that's really good.
Due to the increased debt company loan provided by and in financing dimensional ciena for $700 million.
And third party loan for $10 million, the Q3 things.
Turning to retool.
This was partially offset by $21 million of amortization payment of tenancy, Chile local bolt.
Our debt maturity remains abundant with an average of 17 year.
And the fixed rate at the close to 70% we are working to increase the fixed rate portion and the July four.
Part of that could be.
The mutation strategy.
Using the sources of earnings does mutual status.
But the current here, we have around $400 million.
The energy level.
That has a maturity in December .
Evaluating whether to put more pipe or.
No.
Not a lot of debt.
Optimization strategy.
Despite the increase of our debt.
Average cost decreased three 9%.
In mid 'twenty two.
As of December 31.
Results of financial management theory out in the last month.
In the video.
19% of our total gross debt is currently.
<unk>.
We confirm our plan to continue to post.
In line with our subsidiary.
Scott.
In terms of liquidity, we maintain an adequate.
Provision in order to cope with possible headwinds in <unk> related.
Relative to the overall economy, which including the international conflict in Eastern Europe .
Now.
I will point out some closing remarks on slide 18.
As we mentioned during the call we completed the coal phase out, but also with encompass.
<unk> closely conventional utility boutique.
Although this year the international market has been particularly robust.
<unk> no recovering demand.
Externalities.
We have taken several actions to offset this impact.
The asset rotation transaction is ongoing as expected.
And the bill should be close by the end of December .
<unk> will add the core principle and leverage but is net debt EBITDA ratio.
To conclude we are confident that we reached our clinical into main guidelines.
Let me now.
Yes.
Thank you Bill.
Starting the Q&A. Thanks, Jimmy one thing Bryan Pugh to participate in our Investor Day, 2022, which will be held on November 28 in which we will update these strategic figures for the period 2023 up to 2024 presented 75 as anticipated.
We received questions via phone or shack in the webcast on this occasion.
<unk> session is open operator, Keith you.
You may start.
Thank you as a reminder to ask a question you will need to press star one on your telephone.
Please standby, we compile the Q&A roster.
Our first question comes from the line of Javier Suarez from many of Banca <unk>.
Line is open.
Hi, Good morning, Thank you for the answer for the presentation.
<unk> three.
Three questions. The first one is again.
Again on the on the <unk>.
Year to date.
There has been a decrease of <unk> $600 million.
It was previous year you explained the effect is.
Basically 50% coming from this heavily see some mechanism and then 50% from working capital absorption.
And you mentioned during the presentation that you are expecting to recover.
The impact from the stabilization mechanism due to the first half 2020 can you again help us to understand how this recovery is going to be implemented and then on the working capital absorption that should be at least partially recover if before the year end. We kept the managerial actions that are going to be thinking about that.
Axiom and I need to be the thing that I'm trying to understand is would be funded.
Does that should be by year end.
In terms of working capital absorption.
That is the first question. The second question is on the debt evolution.
The debt because of there has been this year, but obviously there is a scenario of higher interest rates at a global center of high end kind of faithful how do you see that level of that impacting Europe . Your company for the next.
The next year for example, an indication what do you see that in 2023 it could be helpful. And then the second question is related to the second one is on the.
On the management of your company that these factors only managed scenario model a higher interest rate down the road do you see a necessity to modulate capex ought to be modest and some capex on to allocate in a different way, our capex and dividend exceeded any any comment on capitalization capital allocation would be welcome. Thank you.
Okay.
Okay, but what concerned there.
The first question.
Quality that we see at least we expect by the end of the year.
We are basically three main items that we have baked into the consideration. The first is the payables.
As I said in September .
Seamless, we see an impact of $279 million because the.
The Capex profile.
And.
Sir.
<unk> set a level over 50 over the year and so.
Let me say that.
Around 30% of our Capex are concentrated in the last in the last quarter. So.
Once we close the <unk>.
You shouldn't see such a big decline.
Reason, because I believe that we are able to equality.
<unk>.
<unk>.
As of today, we have an impact a significant impact that it.
You could do it cost estimates we are going to be in.
On a standalone.
Our energy so legal so that.
It will be Thorpe according to our protection.
And the last one in there.
Collection and the solution that we have.
We put in place.
Action in order to recover the.
The tail that we had coming from the change in our commercial system. So we believe that these.
All of these.
<unk>.
Action.
Although hard to reach.
$300 million SSL Bose this is David.
In.
And Amit.
This is part of what goes in the first place.
What concerns the second one.
Let me say that.
As soon as we are going to get the proceeds from the <unk>.
Then third mission saves by the end of the year.
Hum.
Rebalanced, our balance sheet in terms of desktop.
And we believe that.
We are able to add.
Sure.
Interestingly the name of the interest rate around the profit side.
As we continue to be.
Target.
DCF in the.
But we're going to be.
See in more detail the number excellent.
Our total market.
Yeah.
Lithia and for what concern the Capex modulation.
On the Capex that we have this year are.
Already committed.
Are basically related to the projects already in execution.
Lately.
As I said before.
In one month from now we're going to have new capital market day. So we cannot present the strategy for the next year.
Accordingly COVID-19.
These studies.
Our.
Projections of differently.
Okay. Many thanks.
One moment for next question.
Our next question will come from the line of Francisco Pos from Santander. Your line is open.
Hi, you said.
Thanks for the presentation, Mike we're starting the following really opened one.
Given the end of the operation of the closed units with vaccines programming as to what will be the main purpose of killer investment plan. If you can give some further information about that.
Okay.
Thank you thank you Francisco.
Well.
Clearly.
The growth of our book.
Is one of the dealer.
Our strategic plan to better with the renewable expansion.
<unk>.
I mean, we are finalizing our IND.
That's our plan that is going to be presented in the capital market day. So.
It's just a matter of one month before to show everybody our our strategy.
In general I mean.
Realization of that this is going to be is b is going to be still.
The pillar <unk>.
At our company.
No.
We are going to present, all the detail in one month from now.
Okay.
Okay.
Thanks.
Thank you Francisco.
One moment our next question.
Our next question comes from the line of Ken Fernandez from balance your line is open.
I think Kelly your line is open.
Thank you I was disconnected for a second there.
Good day, everybody. Thank you very much for your materials very complete as always.
I have three questions, we'd like to go one by one if you don't mind.
First one is related to.
Gas provisioning during the next two quarters.
What can we expect from Argentine gas. If you are confident getting as much as you did this year, maybe a little bit more on the second one is <unk>.
How do you feel about the possibility of seeing.
Any of the LNG vessels bound for Chile.
Re directed to Europe .
Thank you. Thank you.
Well.
Okay.
We are.
I mean this year.
We're able to do.
The mine our.
And gas activity is the availability of our.
Yeah.
So.
And we believe.
That considering the.
Good performance in terms of reining in Melbourne seasonal we believe that in the last quarter, we are able to.
We made some additional optimization.
In.
Additional information that we are going to.
Finalizing.
During this week.
The margin I mean, it's something difficult to say right now because within those yet.
Yes.
But.
We expect the very good results also in the last quarter.
Well the optimization of the gas.
<unk>.
All our focus though.
And the timing of those.
So as you know we have.
The contract with shell, we have the ability to go.
Other.
So is it like.
<unk> is auto has been kananga, but anyway, we are trying to figure out which is the best way in order to exploit the mass demand advanced thus far from this.
These are going to be.
So again I believe that we are able to do some <unk>.
Good.
And the last book.
As of today.
Martin.
Okay.
Okay. Thank you my second question is related to the back too.
Our relocation program.
We understand that he has two parts.
One is the surcharge.
It's going to be borne by all Chilean power demand related.
All related customers.
And then there is.
Hi.
A component of our build but it's going to be enacted for the larger.
Consumers connected to the disc.
<unk> networks I was wondering if.
That increase for the larger consumers has already been enacted.
What it should be enough good.
Next year.
Okay.
Consider that.
Yes.
And the law.
Okay.
Foreseen deepening kind of.
Started for visiting Tango.
Brian .
For West coast, and the large customer they're going to be.
Hum.
B.
Basically.
Yes.
He will be starting from the next year maybe.
Basically there is a different kind of cluster with different kind of increased but catherine.
Was that the customer that.
Hi, Ed <unk> megawatt hour that green flag.
And the regular price for the price coming from the BP since 2000.
And.
What I can tell you is that in general.
Compared with two different kind of mechanism.
Now on the perimeter.
Of the receivables is going to be reduced significantly.
Around 40% of our customers and this is the reason because we believe that.
The second new mechanism.
Impact.
Lower.
Hey, Bob.
All right in Boston because of the exchange rate.
<unk>.
Anyway.
As I said during the presentation.
The good point, but what goes on.
The new mechanism is that there is a guarantee from the Canadian government and.
The receivables that you are going to be community because of the mechanism is going to include also the interest associated with the lease payments at the end of the day.
What we are doing is.
We identify the.
<unk>.
Proper Easter and financial eastern length in order to capitalize.
The amount of readout.
Without any kind of expecting them financially.
Okay, great. Thank you very much my question is related to the carbon taxes.
And a lot of the presidential hopefuls last year or a campaigning.
On hiking the carbon tax so far we haven't seen anything I don't know if you have any updates on that site.
Luke.
As of today, we don't have.
We don't have news about that.
Clearly we are monitoring the issue that would be basically.
Impact on our pulmonary but.
So far with an AAV.
To litigate.
Okay, that's great very clear thanks. Thank you.
Thank you I'm not showing any further questions in the queue at this time.
Yes.
Now I'll turn it over to Isabella try any closing remarks.
Hi, we have actually two questions coming from the webcast here. So the first one does that this crummy, Charlie and Joe Mccartney from credit Corp.
Why was the commercialization margin rguest, so high in the third quarter of each year.
<unk>, how sustainable is that going forward and next Chile also on the same note. There is also a question from Rodrigo Mora that is coming.
From when it does thats coming hide without signal could you. Please give us the physical sales of LNG in PBT you two indebtedness. During these nine months of 2022 and that's the two questions is open okay.
For what concern the question.
Of course, the marketing that we are able to.
Reach.
Every quarter is dependent.
Yeah.
Markets in our industrial price, but let me say that.
They are high margin that we got in the third quarter basically.
Coming from the fact that we were able to use our.
Thank you.
Regasification.
So basically we were able to to use our.
Capability too.
David.
<unk>.
To defend market.
The price of course is depending on the client in that scenario it would be fine.
The Ethernet Nonetheless.
For what concern.
Great.
Related to.
Global Eagle pass related.
Yes.
We are selling them up.
<unk>.
Better bto.
Is that the volume that we saw.
Paul.
Okay.
So.
We do not have any more questions.
So operator coming from overseas and offer the webcast all actually we have one more question that just asked.
Yeah.
Right here. So the question is that we have a strong formula and selling gondola and formula E asking us how.
How has the company effective Enel Green power EBITDA the curtailment now.
Energy the company understood that the difference between the sale price.
Okay, and then just the company and understood that the difference between the sale price and the pace right.
Thank you for your question.
Yes.
But.
And then.
Yes.
Energy bonds.
Well.
<unk>.
Commitment DPA.
As to cover cover it with.
Its own production or buying their energy.
Sure.
On the market on the spot market on the boxes.
Now.
We.
We of course.
<unk> and <unk>.
On the spot market. According pool.
The variable cost that we have.
For our power plants and the comedy scenario that the impact significantly the spot price.
Every.
Moen and <unk>.
<unk>.
Every every day, let me say it.
Different kind of situation with them is up today.
<unk>.
We are in the positioning we have.
Sure. So if you look compare adjusted versus the renewable production.
Of course, we have enough gas capacity.
To cover whatever.
It is the remaining amount of energy.
Gain some time there.
Depending on the hour and depending of the seasonality.
We are it could be more.
Company.
To buy on the market rather than to produce with our comp.
Our clients.
So basically.
We have.
And any impact about the main path dependent.
On the defense kind of back book one off.
One of the most important positive Fayetteville.
Okay. Thank you Pamela L. Carter from BC for your question, just Jackie Werent TB.
And just final question for now so.
There is no more questions I conclude the results conference call. Let me remind you that the Investor Relations team is available for any doubts you may have.
Many thanks for your attention and see you soon vandal.
Okay.
This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.
Okay.
The conference will begin shortly.
Raise your hand during Q&A, you can dial star one one.
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