Q1 2023 Ferroglobe PLC Earnings Call
Okay.
Good morning, ladies and gentlemen, and welcome to first club's first quarter 'twenty 'twenty suite earnings call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time.
A reminder, this conference call may be recorded I would now like to turn the call over to Arnie sporadic wala for clothes, Vice President of Investor Relations and corporate strategy you may begin.
Thank you.
Good morning, everyone and thank you for joining <unk> first quarter 2023 conference call.
Joining me today are mark or Larry our Chief Executive Officer, and Beatriz <unk> Cos.
Chief Financial Officer.
Before we get started with some prepared remarks I'm going to read a brief statement. Please turn to slide two at this time.
Statements made by management. During this conference call that are forward looking are based on current expectations.
Factors that could cause actual results to differ materially from these forward looking statements.
Found in federal.
Our SEC filings and the exhibit to those filings, which are available on our web page fairly old doors call.
In addition, this discussion include references to EBITDA adjusted EBITDA.
Adjusted gross debt net debt and adjusted diluted earnings per share amongst other non <unk> measures.
Reconciliation of non <unk> measures maybe found in our most recent SEC filings.
At this time I would now like to turn the call over to Marco Levi, Our Chief Executive Officer.
Thank you Shannon and good morning, or good afternoon, everyone.
The first quarter has been very productive and we have achieved significant milestones that demonstrate our commitment to deliver value to our shareholders.
During the quarter, we continued to make progress in deleveraging our balance sheet by paying down debt.
We are focused on managing our operations.
I have successfully or at least working capital.
On the operational front, we continued to start operations.
We expand our capacity and are finalizing agreements to provide long term renewable energy to our Spanish brands.
Our company is that the people turn more maintained its a story.
Ready to seize substantial growth opportunity as the largest western producer of silicone made though.
Critical component of many industrial and consumer goods and in particular, a key material supporting the green energy transition.
The global trends toward renewable energy are driving strong growth in the solar and electric vehicle battery markets.
The girls.
Outside of China is being amplified by an increased focus towards onshore.
Onshoring times are being announced by incentives such as the inflation reduction acting U S and he said Cui Valentin Europe , the Green deal plan for net zero age.
Which are focused on local production and reducing.
On Sunshine.
As the western market, leading silicon metal producer.
Lobbies in a unique position to capitalize on these trends, providing an opportunity to drive strong growth for years to come.
Yes.
Q1 results. It is important to recognize the Helios and the adaptability of our business model, our commitment to operational excellence innovation and cost efficiency has allowed us to maintain a positive and stable financial and operational performance doing.
This challenging market environment.
In Q1, 2023, we've achieved adjusted EBITDA of $45 million.
Our free cash flow reached one analyst $70 million underlining, our ability to generate strong cash flow.
At the close of the quarter, we maintain a robust cash.
Cash position of 300.
$44 million and net debt of $55 million.
During this quarter.
We made significant progress in strengthening our financial position by reducing our debt by $50 million.
Given our strong cash flow and the excess of cash on our balance sheet. We're actively studying options to reduce our overall girl stepped optimize our capital structure and.
And we position the company to return value to shareholders. We will provide more detailed insights into the next few months.
As you May recall, we previously made a commitment to working capital we have delivered on that commitment we've had significant liza one under $51 million of working capital during the quarter. In addition to what we released in the fourth quarter.
This is a direct result of the Targa deductions that we have implemented and will continue to focus on optimizing our working capital.
Our positive adjusted EBITDA generation combined with these improvements.
They chose us well to achieve our goal of turning net cash positive in the next couple of quarters.
Now I'm pleased to provide an update on the progress of our operations worldwide.
In Europe .
We have successfully resume our French operation celebrated his first 2023.
These significant milestones will have a positive impact on our financial performance in the coming quarters as we leverage our production capacity in France, and capitalize on market opportunities with our best in class cost positions.
We are in the final stages of finalizing long term power purchase agreements in Spain, which will provide us with competitive energy prices securing these contracts is a critical step in our plan to restart that secure the long term competitiveness of our Spanish facilities I went to.
Further details on this in my upcoming corporate section.
After restarting two furnaces at our Polokwane South African facility, we are ready to start the third furnace. There's three furnaces would provide 55000 tons of additional capacity.
This expansion demonstrates our ability to rapidly add capacity at very low capital intensity.
It also significantly improves our geographic footprint by serving markets in Asia, and the Middle East and provides us with a considerable competitive advantage.
As a testimony of these advantages and our reputation as a high quality producer, we have signed a new long term contract to supply silicon metal to a leading Asian polysilicon producer.
This further Saudi defines our position in the solar value chain and demonstrating our ability to forge strong partnerships with key industry players.
In line with our strategy of furthering our vertical integration.
We recently signed an LOI to acquire new quartz mine, while also expanding our existing sir about quartz mining space.
Furthermore, our board, there's a prohibition on rope topics to expand operations that dialed in our mining operation in Kentucky to maintain our competitive advantage.
These design visibly actions strengthen our leadership position in the silicon metal in the street and enhance our global presence by managing complex vertical integration into one.
Mining and strategic sourcing of essential raw materials.
In the electric vehicle battery market, we see exceptional growth opportunity there even by silicon metal considerable advantages over graphite the.
Current standard. These benefits include an increase in battery capacity and enable significantly faster charging times, providing important improvements to EV technology.
We are working with partners to innovate towards increasing the content of IPO at TCT, Gourmet, though India lots of batteries.
While the current market environment presents short term uncertainty we are focused on things that we can control.
And drive long term shareholder value.
We are enthusiastic about the long term prospects of our company and remain confident in our ability to navigate these challenges and deliver strong results for our failure to investors accordingly.
We are reiterating our 2023, adjusted EBITDA guidance targeting a range of $270 million to $300 million.
Next slide please.
Let's focus on silicon metal silicon metal revenue was $161 million in Q1 down from $184 million in Q4.
A decline of 12% adjusted EBITDA for the segment was $31 million in Q1 down 65% from 18 $189 million in Q4.
Our silicon metal business was down due to a challenging market environment impacting both price and volume volume declined six 4% sequentially in Q1 to a proxy for monthly 37000 metric tons.
They'll have a shutdown in France due to our franchisee agreement.
We expect volumes to increase significantly in the second quarter as we have secured long term contracts with new customers in Asia, and the middle East and I break it into our French operations back on line.
Our average realized price for silicon metal sales decreased by six 5% compared to the previous quarter.
They even by lower index pricing in the U S and Europe .
Price decline negatively impacted adjusted EBITDA by $17 million.
Our total costs and the negative impact of $25 million to adjusted EBITDA versus the prior year quarter.
We continued to benefit from a manager compensation agreements in France in Seo to compensation in the first quarter. However.
Compared to the previous quarter.
Various less favorable impact from negatively impacting our cost by $7 million compared to the prior year quarter. Additionally.
Additionally, we incurred increasing idling cost of $70 million.
The chemicals market are facing challenges driven by a weak macroeconomic environment and oversupply in China with low priced exports driving weak sales in sic codes.
As a result, our.
Outlook is cautious next slide please.
[noise] silicon based alloys.
Revenue was that it was a $155 million in Q1 up 7% over the prior year quarter.
Adjusted EBITDA for Q1 was $22 million down 41% from the failure of a quarter.
Sales volumes increased 23% over the prior year quarter.
Positively impacting adjusted EBITDA by $9 million.
Average realized pricing was down 13% over the same period as a result of low cost exports from Brazil.
Cadillac is done.
John next.
Negatively impacting adjusted EBITDA by $18 million.
Relative to the prior quarter.
Silicon alloys also received a lower benefit from the energy compensation agreements in France, and Seo to compensation.
He said that negative impact of $14 million, which was partially offset by favorable impacts due to year end, one offs of $8 million, resulting in a net impact to cost of $6 million.
Moving to slide seven please.
Turning now to manganese alloys.
Manganese based alloys, the revenue was $62 million in Q1 down 32% over the prior year quarter adjusted EBITDA for Q1 was $2 million down 90% from the third quarter.
Sales volumes were down over the prior quarter negatively impacting adjusted EBITDA by $6 million.
Average realized pricing was down 10% over the same period.
Resolved that the net negative impact to adjusted EBITDA of $3 million.
The steel market continues to face to face challenges due to weak fundamentals in construction.
While the current low spread between Monday and he is a lawyer nor is concerning we expect demand to recover in the second quarter, which will help improve our margins.
Q1, 2020, our costs were negatively impacted by $8 million due to various factors in the fourth quarter, we recognized a gain from an adjustment to an earn out provision that was not repeated in the first quarter call.
Costs were also negatively impacted by <unk> and the French energy compensation agreement relative to the current year quarter.
These were partially offset by improvements in raw material costs I will now turn the call over to Beth <unk>, our CFO to any of their financial lives better.
Thank you Michael.
Please turn to slide nine for every meal or the income statement.
I suspect it our first quarter results experienced a decline relative to the first quarter.
Driven by price and volume declines across most of our credit portfolio.
Revenue for the first quarter Westbrook under $1 million.
Down from $449 million in the prior quarters.
The 11% decline from the prior quarter.
As a result prices across all three product lines and <unk>.
Volume declines in silicon metal and manganese alloys.
Silicon based alloys volume increased 23% over the prior year quarter.
The higher sales of standard grade products.
The first quarter real method.
To consumption.
Sure be glad to do kind of $65 million down from $219 million in the prior quarter.
I suppose is that youll see cost of sales.
Flat at 64%, excluding the impact will sort of like short term power Hudson in Spain.
Although the operating income in Q1 was $15 million down from $78 million in Q4.
Driven by lower energy costs et cetera, and events, that's just the prior quarter.
Operating profit for the first quarter was $44 million.
This is $30 million seem to tie up or down.
A person that's a space.
And profit was 11% in Q1, that's a set up this time in Q4.
The $15 million.
As you know Brady.
The profit is the first quarter was driven primarily by the gains from short term power space.
Partially upset by lower volumes in other operating income relative to the prior quarter nets.
<unk> expenses in the first quarter.
Declined to $11 million down from $17 million.
Fourth quarter. The decline is attributable to lower debt outstanding as we've continued to execute on our delivered actually in this type of deal mixes night. Please.
Dan.
Hello, Jessica that's the end of first quarter was $45 million versus $150 million the previous quarter.
Definitely better margins, because two 7% in the first quarter down from 29% in before call it that.
Volume declines in the first quarter makeup is intact.
It would be up by $30 million.
Decline in volumes was partially driven by this shutdown that was transplants led we optimize our poll with project as discussing the tire cord.
These assets.
<unk> been done one and we expect improved volumes in the second quarter.
Either that's sending clients across our portfolio.
Decline by four 5%, resulting in a negative impact of $38 million.
Cost had a negative impact of $59 million, maybe a year or two I mean cost Nathan on expenses, and our traditions, Seattle and energy compensation, partially offset by a favorable impact some roadmap.
I mean victory evaluation.
The results in the first quarter, what I suspected even declining prices and weak end markets as we have stated in our.
Last quarterly call, we believe the first quarter, which represented I'd expect this improvement to.
To continue through the central Pennsylvania.
Slide 11, please mixes light.
We ended the first quarter with a cash balance of $344 million up from $323 million EBIT tire cord and increase of $21 million.
It was driven by working capital release, partially upset by duplication of bonds in the open market of $26 million.
$70 million partial repayment with a Spanish government loan.
Adjusted gross debt declined to $400 million less in the first quarter.
Down from $450 million in the prior corporate net debt declined to $55 million in Q1 versus $127 million in the prior quarter.
Hence our lowest level of net debt at the company history and he said this time into our continued focus to reduce net debt.
We aim to be net cash positive in the next couple of quarters.
Slide please.
So to the first quarter, we generate operating cash flow of $135 million up from $118 million in Q4 free cash flow in the first quarter was $117 million up.
So one $104 million in the prior year quarter.
The quarter, we had a working capital release of $151 million.
In the first quarter.
$17 million versus $15 million less than before quarter.
We continue to expect our base level Capex for 2000 to D C to be around $75 million with a potential to increase depending on additional spend for girls and energy sectors.
Lastly, cash flow from financing activities in the first quarter Westlake LP $96 million this was negative $18 million lessened before quarter.
Core debt financing cash flows.
<unk>, a coupon paid minus $18 million and the debt repayments to mention are the PBS. This oh debate is like.
At this time I would turn the call back over to Moscow next slide please.
Thank you Beth or it's moving to the corporate update on slide 14 in.
In 2022, when we made the decision to limit production across our Spanish assets in our response to the European I don't know G crises.
Our flexible global footprint enabled us to move production during the volatile energy period to lower cost plans in other regions and still provide quality products to our European customers.
We are in the final stage of executing two long term power contracts that would provide energy stability at our Spanish plans.
Enabling us to maintain consistent operations and to regulate production in these plans based on market dynamics.
Power agreements represent energy that is produced from renewable energy sources. One agreement is set to start on July one 2023 with the second one starting in January 2024.
These agreements are in force our commitment to ESG by sourcing power from 100% renewable energy sources.
During the first quarter, we received approval from our board to apply to expand our share about quartz mining, Spain, enabling the affection of.
Yeah.
Tons per year of <unk>.
Suddenly high corridors.
Quality works. This group he called me now enables us to serve high end markets and can sell solar and batteries.
By completing this expansion, we're adding critical resources and optimizing maintenance costs.
This combined with the expansion in all of them will ensure that we will continue to have access to high quality raw materials further reducing our reliance on third parties and I think Lee proves our operating efficiencies.
We announced our strategic plan last year to become the reference in silicon metal and ferro alloys by creating value for stakeholders through innovation.
To successfully execute this strategy, we understand that the war for say engagement. These crucial.
Over the past two months, we have an in depth conversations where our top 400 leaders about our strategy and culture afterwards.
This shows were very successful, resulting in excitement and commitment to achieve our aspirations.
With this positive momentum all the engagement, we are now well positioned to accelerate our strategy is one teleglobe.
Thank you.
We will now begin the question and answer session.
To ask a question. Please press star one on one on your telephone and wait for your name to be announced.
Do we still have your question. Please press star one on one again.
Please standby, while we compile the Q&A roster.
Okay.
Yeah.
We will now take the first question.
It's from the line of Lucas pipes from B Riley. The Securities. Please go ahead. Your line is open.
Thank you very much operator, good morning, good afternoon, everyone.
Good job on the inventory side.
On the full year outlook and that's my first question.
For the rest of the year, what would be roughly your expectation around cadence of EBITDA.
And any drivers that you could point to beat up the volume.
<unk> side or cost side for that matter that would drive.
EBITDA towards I think its at 80 million run rate at the midpoint. Thank you. Thank you very much for your additional color on that.
Luca sorry, it's Marco I will start answering your question.
I think I touched on some of your questions during my beach, but.
Let me summarize first of all we confirm we are right. There we have reiterated our guidance.
273 million of EBITDA.
For the year.
The second the factories key factor is that.
The outlook that we have.
Is that is positive.
Related to our sales volumes as we have restarted our.
Our operations in France, we have a more solid outlook on what we can do with our Spanish assets due to the energy contexts.
We have a pretty solid outlook on what we can do with our bulk water.
Operation.
In South Africa, and hopefully is going around full in the second half of the year.
Yeah.
The D. C. These are things that are.
Our break demands.
Honda.
Under our control.
In terms of pricing of course, we we are in the trough.
The key call in that path.
<unk> is now our expectations the exceeding of metal price.
In the trough was better than in the previous troughs.
Is visible.
Both in Europe and.
And in.
In the U S.
And for the for the alloys.
Market on Ferrosilicon, we.
We will keep on leveraging on our 50% product mix on sales silicone specialties in foundry.
And Opportunistically continue to maintain our position on ferrosilicon.
Standard manganese.
Due to the restart of <unk>.
Steel operations in Europe .
We see now a pickup.
In demand.
Overall.
There is.
Due to the slow economy, there is not a great visibility.
On demand for the coming quarters also because.
Everybody in the supply chain is counting on.
Lower raw material prices lower energy costs lower input costs. So everybody is quite cautious of managing inventory.
This is the picture that I can give to you.
That's that's very helpful and the follow up.
Yeah.
What period, what do you expect to be the strongest based on your current outlook for the year.
Well we.
For sure we expect Q1 to be the weakest.
And that and I'll stop there.
Okay.
Understood I appreciate that and then.
You mentioned the supply agreement with an Asian polysilicon customers I wonder to what extent Adil.
Additional offtake agreements could be in the works and then what what would a typical structure looks.
It looks like it is are these multiyear agreements.
But what is typically that the size of those supply agreements.
And.
What opportunity do you see in Europe , and North America for four additional agreements or or in Asia too I would appreciate your perspective, yeah look at it.
We are.
Remember I always startup will acquire all of the conditions.
That we add two to three year contracts to cover the restart of this demand.
M D. What we did with this contract we cover it there is start of the first two furnaces one.
Are you starting November the second one was already started in January of this year.
And now we are planning to link their start of the third furnace to these additional contracts.
So that.
I want to reiterate is that the we're talking about two or three years contracts.
All I can really appreciate the color a continued best of luck to your team.
Okay.
Thank you Luke.
Thank you.
Once again as a reminder, it is star one on one if you wish to ask a question.
And the next question comes from the line of Martin Engler from Seaport Research Partners. Please go ahead. Your line is open.
Hello, Good afternoon, everyone.
So my thing.
So circling back on volumes on the near term and I guess.
The general expectation is for pick up coming out of the trough in one Q.
Andy.
Goalposts when we think through this cycle on to Q relative to <unk> based on what Youre seeing from customers today, taking into account their inventory position division that there.
You know, what we can see silicon not all silicon based alloys and magazines.
Yeah.
But clearly the.
The key factor.
Yeah.
<unk> got 36 months right.
And France is basically our key footprint for silicon metal production.
And we have multiyear contracts to supply silicon metal.
And and we agreed with our customers to supply.
Yes in the first quarter, but now that we have the volume my valuables, we're going to catch up on.
Supplying these contracts.
The other key factor is the fact that.
As of July we laugh.
Better cost position for our assets in trends in Spain, sorry.
And this will drive.
More production I suppose.
So and then our manganese plan involved and 10 months out.
Hey, Andy.
The point as you know market we have.
<unk> historical customers in the western World. So so we.
We negotiate a supply base.
On our capabilities.
The new factor is our expansion.
Sales in India.
In the Middle East and in Asia, which is related to the successful early start of polo Kwame. So these are the main.
Yes.
Okay.
Thinking about both.
Production in France, and output for silicon metal.
One Q and a.
Kind of aligning with customers.
You get the sense that there was a fairly significant destock.
Happens through maybe the euro footprint or maybe elsewhere, where they've right sizing inventories you reduce production.
Just trying to better align with.
Demand expectations.
I mean, if you if we talk about Sealy Comerica lysine.
Destocking needs is over so deep.
Sure.
What we are facing in the supply chain mainly related to.
A lack of visibility of.
Of demand and so everybody in the supply chain needs.
Watching like we are doing.
Theyre working capital position.
On the on the manganese alloys.
I expect pickup of demand due to the very start of blast furnace steel blast furnaces in <unk>.
In Europe in the first quarter of course, there is <unk> due to the fires did the two blast furnaces are lesser in Mattel, but but.
Overall.
Demand of manganese alloys.
Is going up.
Our view on.
Parallel silicon specialties and foundries are either.
Stable, while on Ferrosilicon standard.
There are a lot of new dynamics.
Mainly.
Aggressive I would say.
Commercial policies.
<unk> from Brasil, all over the world.
Aggressive commercial policies from Zach Houston, and I'd say by John in Europe .
Our aggressive.
Our commercial policy pharmaceutical stomach from China due to the slow start of the steel.
Lowest slower than expected restart of steel industry in China.
And the first time, we have seen significant volumes of Chinese ferrosilicon also in the United States. So.
In a slow economy.
There is price pressure also related to this.
To these new.
A new event.
Say that the low recent data.
<unk> steel.
Production.
Indicate that production is now in China is ramping up significantly same in India.
The only two countries in towards the way, we see a positive trend at this stage.
Now on steel.
So Europe is catching up but these deals seem to be rather flat versus <unk>.
Versus last year.
United States is to be seen until now has been.
Stable at the level of 2022.
Understood. Thank you for all the detail there.
I wanted to touch on.
Within our silicon metal segment cost per tonne 92 quarter about 3500, which seems high.
Some explanation.
Hi, there.
If you could maybe provide a bit more.
Or you have some ranges.
At a group level on slide 10, you broke out a lot of the cost impact from lower energy and cotwo compensation underlying costs in France.
Annual maintenance.
And those things.
Curious what that might look like for the silicon metal segments.
Maybe more importantly.
3500, or so there for on Q.
How do we see like potential.
Place generic moving into the coming quarters.
Wow.
We usually don't give specific.
Information about our cost position.
Our products also because the.
They they differ bye bye.
By plant and we have not to cost them to do so.
Specific indications.
On on these failures.
Mark maybe I can put it.
Some color.
Q1, so we expect it.
From the U S. As we said in Q4, we expect to be at the top of the cycle some of that pricing. They take these as well, but on the on the cost side, we have been I mean, I'll let assets.
In France, and type of our assets in the space or the fixed cost or the lack of time obsessing on east coast has been an important topic for asking in Q1 right.
It would be it's going to be as we restart.
Resuming a lot of patients seen in France, this would be down.
Alluded to sell at least picked up a different of course today.
Plus Asia.
Yes.
Calling for.
Compared with Q1.
Do you think when you're calling out the fixed cost impact on one Q.
Do you think that was the.
Majority there.
What was kind of elevating it on a per unit basis.
Yeah, I think D C C.
Right that first Monday, 19th.
Okay understood thanks for that color.
Good one more working capital I think was 36% of sales this quarter down somewhat from 39% previously.
Any specific ranges.
I know that incentive to kind of continue to work back towards the targets but.
Any specific ranges when we think about two Q.
Well the.
Our objective is.
To get to.
Silicon metal and ferrosilicon in the 'twenty, one 'twenty, 2% in the manganese alloys at the 25, 26% from working capital.
Of course.
Q1.
Revenue with it.
Was extremely.
Low.
Extremely low volumes so we.
We did our best and I think we achieved.
And working capital release that was above.
About my previous indication.
We indicated in the last call between ATM went up $8 million target release in first quarter.
So.
And we will keep on adapting our working capital performance to to get to the.
Optimal levels that I have mentioned.
Of course.
Due to the extreme volatility that we have been facing since Q3 of last year.
We have to take every every week or every day.
And.
And adjust our performance.
Okay.
Thank you for that but no specific release range.
We're just yet for <unk> right.
Kind of continuing to.
Worked back to why we are seeing.
In Q2, we are bought out at sea.
Sure.
What I say between higher volume.
As a consequence, the need to have the raw materials with the.
The level of inventories that we need to have to manage our customer portfolio.
Okay.
Okay.
If I could just get you to repeat you mentioned, 21% to 22% for silicon ferrous Silicon and what was the manganese alloys, you want me to get back to about 125 26.
Okay excellent alright, thanks for all that.
Nice job navigating a difficult market. Thank you.
Thank you thank you Martha.
Thank you.
We will now take the next question.
Yeah.
It's from the line of Greg Bennett Stockholder. Please go ahead.
Good morning. Thank you for the call I was curious are the I understand the expansion on this.
Mine in Spain, you mentioned that you're going to acquire additional mine, whereas.
That located.
Is that for reserves for the future or is that something that will produce cash flow once you acquire.
Okay and thank you for the question I Don Tide.
We purposely.
Don't disclose.
The location of the mine.
At this stage, we will once that get negotiated.
Jason is closed.
But the eve.
Clearly our strategy is to aim for.
<unk>.
Our back integration.
We feel that in order to be competitive and win.
The girls in Silicon metal, we need to have the best possible back integration.
<unk>.
And related court quality. So we are.
We'll be moving towards two directions, one is the capacity of our <unk>.
Mine in Spain, which is.
Fantastic mine in terms of quality.
The quality of steel of course these outstanding there.
And then and then.
And then signing this LOI that will hopefully drive to a positive closure of that negotiation and will allow us to count on further reserves of high quality course.
Okay. Thank you.
Oh.
Final question the refinancing.
With your cash balance right now is that and that's it.
And with rates, where they are in short term rates.
Is it are you able to invest your cash balance in that.
These high rates, we're getting right now for U S treasuries for instance.
We hold some money market.
Deposits of course had a good rate.
Hmm.
This is where they basically and in the U S and as well in that part of it in the <unk>.
Right.
So right now your net interest expense.
To me for that.
On the cash balance would be the spread would only be.
Somewhere in the neighborhood of 4%.
Well it is.
Yeah, it's still there I didn't let me put it like this.
That's great.
The need to refinance your your call your bonds in July .
July .
It's not pressing as much as long as we have an inverted yield curve I guess.
Well. This is what we already did anything so we didn't have anything in its turn our cash flows right.
We are watching very close the debt market and be able to do this and that we have at the moment.
We reiterate our ambition to reduce our gross debt.
And we'll be announcing something.
Yeah.
In the next months say around the debt refinancing would be set until.
To your question Yeah.
Thanks for such a great job appreciate everything you guys are doing.
Thank you. Thank you so much.
Thank you.
The last question, we have time for I would like to hand back over to the speakers for final remarks.
Thank you.
This concludes our first quarter 2023 earnings call.
As we move forward, we remain focused on executing our strategic plan and optimizing our operations.
In addition, we are positioning the company to capitalize on significant opportunities in the solar energy and battery markets that we expect to drive strong growth in the coming years.
Thank you again for your participation we look forward to hearing from you on the next call have a great day.
That does conclude our conference for today. Thank you for participating you may now disconnect.
Thank you.
Okay.
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