Q2 2023 Enel Américas S.A. Earnings Call
So for new renewable capacity.
After the sale of constantly at Amdocs suit, we reached $13 six gigawatts of installed capacity and considering the recently announced thermal character Hana sale, our installed capacity is close to 90% plus 90% renewables.
Net production in the second quarter reached two.
<unk> two terawatt hour, a decrease of 2% compared to same period of last year explained by the consolidation of course, vanilla and dark suit.
As of late and this <unk>.
Fact production would have increased by 18% explained by higher generation in Brazil, Colombia and Peru.
From our total production, 88% is emission free a significant growth compared to the 75% of same period last year.
And then just sales decreased by 15% during this quarter.
$18 four terawatt hour more.
Mainly due to the change in the perimeter.
Related relating these effects sales would have decreased by 2% mainly explained by lower trading activity.
Brazil explained by higher energy availability in the country due to better hydrology.
On slide five we will focus on our development of renewable capacity.
As mentioned before we have added more than $5.
40 megawatts during 2023.
340 megawatts, our wind farms located in Brazil.
And 205 megawatt solar plant located in Colombia, Peru, and Central America.
We have invested $6 billion in renewable energies during the first half of the year, mainly located in Brazil and Colombia.
We are currently working on additional one nine gigawatts of capacity under construction also located mainly in Brazil and Colombia.
Six gigawatts of wind projects and one three gigawatts of solar projects.
During two antiquated III around nine Gigawatts will begin operations, while one gigawatts will enter in operations in 2024 rigs.
Regarding our pipeline.
We are considering 54 gigawatts of potential new capacity from these amounts 26 gigawatts are in early stage and 56 Gigawatts are immature states States. In addition to these we have around one gigawatts of battery energy storage system.
We are also considering the one nine gigawatts of projects under construction already mentioned, let's continue with the grids operational highlights on next slides.
Electricity distributed reached Richard $26, six terawatt hours in the second quarter, which represents an increase of 1% compared to the same period last year normal general parameter explained by higher sales in our distribution companies except energy.
Leo.
Regarding number of customers without considering the customers of <unk> last year, we had an increase of around 390.
390000 in the last 12 months, reaching 23 5 million customers.
Smart meters increased around two five times, reaching 459000 in this period, mainly due to the deployment.
Sunpower.
Our net Rob has increased by 19% in the last 12 months, reflecting the significant investments that we have done in our grids and that have been captured in our tariff review.
Asian process the ratio net had net drop per customer oil also reflects an important growth of 17%.
In terms of quality indicators both sides the insight.
Improve it as an average explained by better performance in Colombia, and Brazil, and Argentina, we saw a deterioration of our quality indicators due to extreme temperatures. During this summer while in Peru, We saw an increase of Saeed explained by a change in the calculation criteria compared to.
Last year finally in terms of energy losses, it improve it in Argentina, Brazil, and Peru, and slightly increased in Colombia.
And our lives our investments of the period in the coming slides.
During the second quarter of this year, our capex increased by 4% compared to the same period of last year, reaching $804 million. Despite that we do not have an el Fortaleza and <unk> CN costs on air and talk soon.
In our belief that if.
If we exclude these companies from the numbers of last year Capex would have increased by 19%. This is mainly explained by higher investments in in Colombia in renewables in Brazil.
We would also like to highlight that nearly 80% of our capex is allocated to our core countries and businesses.
Yes.
From the total amount, 64% were invested in Brazil, while in terms of business, 52% were devoted to renewables and 42% degrees.
Gross capex reached 466 $16 million while.
And was mainly devoted to renewable with 84%.
In the following slide we will discuss our ongoing corporate simplification process.
During the first months of the year, we concluded the sale process of our thermal generation assets in Argentina.
Namely cost and airline dark suit.
At the same time during March we completed the concession transferred two of the transmission line called CN.
In addition to this we recently announced the sale of Cartagena thermal plant in Colombia, which should be completed by December . This year finally regarding the sale of distribution assets in Peru already analysis. The final approval of the Peruvian antitrust authorities in Chile.
Economic authorities is still pending.
Regarding the remaining disposals announced it on our strategic plan last year.
Working on the planet.
But we are not in a rush to sell and we will sell only at the right price.
Now I will comment on the financial results of the period in the coming slides.
EBITDA in the second quarter reached $955 million.
Seven 4% lower than the same period of last year. However, this reduction is fully explained by the fact that we do not consolidate that endo Fortaleza and <unk> costs on an index in dark suit in this period. If we exclude this effect and also include the results in Peru and isolated effects.
Effect.
Facts effect.
We get to an adjusted EBITDA of $1 2 billion U S dollars, an increase of 13, 2% compared to the same period of last year.
Mainly explained by better results in distribution in renewables in Brazil.
Net financial results improved by 51, 6%, mainly due to a positive impact.
Coming from Brazil, Brazilian Reais a precision.
Group net income in the second quarter reached $109 $69 million.
A reduction of 20% compared to second quarter of 2022.
Reflecting the negative impact coming from the sale of Dr suite and the change in the perimeter. Finally in terms of debt, we see an important reduction of 25% that will not likely that they will in an hour thats later on.
On slide 12 wells on Slide 11, we will see the EBITDA evolution and breakdown.
Starting from 1000 $30 million of EBITDA of second quarter of 282, we have to exclude $129 million coming from <unk> Fortaleza <unk> LCN cost on air and Dr. Shaw in order to make it comparable with second quarter.
Of 2023.
When we see that we have positive operational results and renewable ingredients, while retail analytics and thermal generation decreased during the quarter with this with this we get to an EBITDA of 1000 $41 million. The U S. U S dollars for second quarter of 2023, which.
Is 16% higher than last year.
FX had a negative impact of $86 million, resulting in a reported EBITDA for this quarter of $955 million, 7% lower than reported EBITDA of the same period of 2022.
As already mentioned Peruvian assets are considered discontinued discontinued operations, meaning that its results.
Its result is consider below EBITDA level, if we consider EBITDA coming from Peru will get to an EBITDA of 1000 $130 million.
From a reported EBITDA of 59% came from Brazil.
The percent from Columbia, and 1% from Central America in terms of business lines grids represents 51% of our EBITDA and renewable 40% with day in and Alex contributed contributes with 8% and 1% respectively, Let's see EBITDA breakdown on a cumulative basis in the coming slides.
Starting from 2030 $6 million of EBITDA of the first half of <unk>, we have to exclude $236 million coming from asset disposals there.
We see that we have positive operational results in thermal generation renewable and grid businesses while retail.
And Alex <unk>.
Greece decreased.
With this we get to an EBITDA of <unk> 2000, $79 million for the first half of 2022, which is 15% higher than last year.
<unk> had a negative impact of $180 million.
Resulting in a reported EBITDA for this half of 1890 9 million, 7% lower than reported EBITDA of the same period of 2022.
EBITDA from Peruvian operations was $367 million, reaching with this and EBITDA of 2260 $5 million U S dollars.
From a reported EBITDA of 61% came from Brazil, 36% for Colombia, and 3% from Central America.
And in terms of business lights business lines grids represent 53 of our EBITDA, 53% of our EBITDA renewables, 39, retail and intellect, and Alex contribute with 8% and 1% respectively.
Sure.
Our next slides, we'll focus that we have a focus on cash flow of the company.
Starting from an EBITDA of 1890 $9 million, we see that networking capital amounted to $571 million.
Mainly explained by physical feels credited us using connection with reimbursed reimbursement to final customers CVA impact and provisions from pension funds and buybacks.
Tax paid during the period amounted to $342 million, while net financial expenses.
Amounted to $225 million.
With this.
Funds from operations amounted to 700.
$61 million, a decrease of $340 million compared to the same period of last year.
After investments of 1330 $4 million, which includes.
$715 million of growth Capex aimed at future growth for the company, we get our free cash flow of minus $573 million let.
Let me now analyze the depths of our company in the coming slides.
Gross debt amounted to $7 6 billion U S dollars, a decrease of 5% compared to December 2022, mainly explained by the consolidation of assets available in the sales of 'twenty to 'twenty three isolate and these affect gross debt would have increased 6%.
Net debt reached five 5 billion a reduction of 20% compared to the end of 2022. This includes our free cash flow of minus $573 million net dividends paid four minus $449 million extraordinary operations for one.
$467 million related to the sale of glass Constantina Amdocs suit net debt this consolidation for $907 million and effects four minus $348 million.
In terms of currency and country, we see that Brazil remains as the largest contributor while the debt at holding level represents 9% of the top.
Finally regarding the cost of debt, we can see an increase for dispute going from nine 8% and 12, 7% mainly explained by higher interest rates in Brazil, and especially in Colombia, we can see that we are in a very solid position solid financial.
<unk>, which is recognized by our rating agencies.
In the last few weeks, both Fitch rates and celebrate have confirmed our rating and outlook.
On the next slide I will conclude this presentation with some closing remarks.
During the second quarter of 2020 through 'twenty two 'twenty three we saw solid operational results across all our businesses with a relevant increase in energy demand.
We maintain a solid financial position, which allows us to execute our capex plan.
We are strongly delivering and executing the new capacity coming from renewable sources in line with our strategy.
Finally.
We continually working on our corporate simplification, concluding sales processes of non strategic assets and moving ahead on come in disposals.
Well. Thank you very much earlier so thank you all for the attention and let's now move to the Q&A session.
Please proceed.
And at this time, we will open the lines for your questions and as a reminder to ask a question press star one one to get in the queue and wait for your name to be announced to withdraw your question simply press the star one again.
Standby, while we compile the Q&A roster.
Yeah.
One moment for our first question.
And he comes from the line of Alexander the data the Medio Banca. Please proceed.
Yes.
Thanks for the presentation I have a couple of questions.
The first one.
Is related to the asset protection program.
You previously said that you're not in a rush to close the remaining operations that you have in your pipeline and that you are looking to achieve.
Good multiples. So I wanted to know if you could provide more colors on the different multiples that you're looking to achieve for different businesses.
And the second question is related to Idaho conditions, we saw a partial recovery.
During this year.
No.
I was.
I was wondering if you could provide more color on your expectation for the remaining half.
2023.
Okay.
Hi, Allison. Thank you for your for your question.
Well.
Related related to multiples in this discussion.
There is not any standard that you can.
Each each asset has.
I mean, its main character is gets me situation sooner so.
Of course, if we analyze it.
For example, the operation that we did.
In Peru for example.
<unk>.
It's a clear distribution arm.
Clear demonstration that we.
We follow the best.
I mean, the best price.
And the best price that we got for this asset.
It doesn't mean that there is multiple should apply to essence, no. If I, if I may to the Argentina of two.
To to Brazil.
This is a special characters there's not a.
Our standard or a formula to reach this of course, we have the projections of growth in the.
In our the everybody has the trajectory of Rosa projects and lots of synergies.
We more than.
I mean.
Consider very clear that our our plan is is aiming to achieve the best price the best condition for each asset and if not.
No problem, we do not sell or I mean.
The key issue here is that we more than demonstrating demonstrate in our.
<unk> management that we follow the best conditions for the company.
We provided this in the in the past when we bought the for example, some polynomial showed some bolt right now when you bought the company we prove that we paid a fair price and now in the selling.
I mean, the selling side, but the selling process that we are moving forward considering what we did in.
In Peru that we are achieving and aiming to the best conditions if not no.
No problem.
In terms of.
In terms of El Nino.
Your question about prices no.
Well exactly we see.
A very.
Let's say that.
The reserve volume in Brazil, they are full known and it's.
We see.
Different situations for example in Colombia.
But.
In Brazil, the effect is that we have.
A good hydrology lower price, while good depend on that.
On what your annualized but.
Lower and lower and lower price.
It's the market works works like these of course.
The southeast we see that the reserve are in the southeast they are more important in because they are close to the consumer areas.
But and then office is the opposite with more support from <unk>.
From solar plants at the end of the day.
What we with this we are seeing lower prices in the at least in the next year or in the intermediate and $3 34.
Because of these hydrology.
What we do all the strategies, we are very proactive at this time that we see lower prices, we got opportunity to purchasing energy and do trading more trading business too.
To get <unk>.
Margins and of course being very proactive.
Since the situation.
Getz, we got a local a higher price we get.
<unk>, we are signing Ppas in order to to to follow our strategy our integrated starts in terms of.
Margin and.
In terms of.
Of.
Our position in terms of margin, but it's very very interesting because today, we see lower prices in Brazil, and higher pricing in Colombia, and we are in both markets.
And this is <unk>.
Unique condition for a company like and in Americas to be positioning in vertical.
This complementarity of both both.
Our markets when we see this phenomenon of Nino all anemia, we ship complement the complementarity between those markets. So.
In Colombia, we are.
We are very well contracted.
And as we hire bright in Brazil.
We are contracted but with some more difficult to get higher prices in the coming years, but this is a.
Conjuncture, our process and it changes we pass it through this and the best and.
It shows that we.
We know exactly how to deal under this this condition since we have on one side the capacity the renewable capacity and one one side one hand, a very good.
Trading activity to having a very good customer base.
That we can that we can achieve not only in our concession areas but.
Around Brazil.
Medicare or Medicaid.
Thank you one moment for our next question. Please.
Alright, and it comes from the line of Fbl's Hernandez with bombs. Please proceed.
Good morning, everybody. Thank you.
For taking my call.
Material.
I have three questions one on Colombia.
One.
Regarding batteries.
Possible investment in battery storage.
I would like to go one by one.
My first question is related to Colombia on housekeeping.
Upcoming category.
Auction.
For the end of the year I was wondering if you can comment if you are planning to participate.
And if so Woodward technologies.
Okay. Thank you.
Sure.
Do you want to.
To ask all the questions.
Just I'm sorry.
Got you.
Significantly further review.
Sure.
Let me say has already reached the three questions altogether.
Going to organize it.
Sure.
Okay.
If I could I think Colombia second questar on battery has taught our chief risk if I'm correct.
The first one yes.
Yes, let me lower than others.
Columbia upcoming Carnival Kurt auction.
Wanting to participate.
Yeah.
Regarding batteries were seeing a lot of.
Action in Chile.
Regarding batteries.
Complement to renewables.
Transmission solutions, but we're not seeing or.
Maybe one just because we're not seeing a lot.
In other countries.
You are aware of any.
We are participating.
Initiatives on that side and perhaps.
In Colombia, etcetera, and the third question.
Peru.
Yeah.
The power generation RMR youre already in the process.
Evaluating bids.
What Mike films, perhaps are.
Pending.
Perhaps related to the merger of power.
Power everyone.
Congrats in Peru.
When do you expect to close or at least announced.
Okay.
We are focusing our strategies mainly in the in the.
For the free market as it kill.
So.
Of course, if we.
Youre not participation just for the auction or just for the cash.
<unk> I believe that it's a very good comp.
Compliment of this.
This.
The revenues but of course.
The main one.
Related to Ppas.
So.
Of course, we see that.
The market has different conditions in.
In Colombia.
We see we are fully contracted in Colombia, but we certainly will in the coming in the coming months.
We are.
Our strategy in terms of.
Some delegated margin that we can we can provide you more details on this in terms of batteries.
In terms of batteries.
Of course, we.
In our plan we consider it.
Especially in the demand response right.
<unk>.
We consider into a small margin not not too big.
We are triple tripling the demand response that we have today, but in terms of remuneration is.
It's still not relevant.
We see that especially in Brazil and in Colombia.
We.
There is different from Chile.
The cost is too high in terms of.
Especially to use in the in the wind plants for example to reduce.
The effects.
Two solar plants to reduce a little flex effects during the night and.
We had a we still.
We are implementing developing the technology.
But.
Not as I mean.
Slower than than what.
And it is doing in Chile, just to give you a comparison.
In terms of <unk> in Peru, we are of course here, we are focusing selling the assets in.
In Peru, we are not.
Increasing our capacity of course, we are we putting function some.
Some renewable renewable plants in.
But this is all part of the package that we are in.
We commented with this corporate simplification.
In specialty the generation assets, so it's not for us.
Is not a.
An objective to increase our capacity.
The rule is the opposite.
Okay that was very clear and that's all from my side. Thank you very much.
Youre welcome.
Thank you and I'm not showing any first in the queue.
Ill turn the call back to Sapphire Balassa for closing remarks.
We have received some of the west coast.
Excellent.
Let me read the first question for ammonia.
RFP critical capital.
The other question is the following.
Can you comment on your.
Your latest thoughts on what Youre.
Youre seeing with the process for the renewal of distribution concessions in Brazil.
Okay. Thank you Andrew for your question.
I see.
It's interesting because Brazil opened that theres lots of discussion space for discussion is space for.
Anyone could contribute in the in the process you know that there is a process of publicly public hearing that that contribution period finished last.
Last Monday.
And now the government is analyzing their contributions lots of discussion and lots of space.
Sure.
According to the timeline it is estimated to.
<unk> to be.
Final proposal.
Regarding the regarding the proposal.
It is.
Huge negotiation, but at the end of the day, what I, what I see is that the technical aspect will will prevail I mean.
It should be.
Balance it.
The distribution companies should have.
Lee bring in terms of returns.
That should keep on providing an important service in Brazil, you know that in Brazil, we have.
A lack of infrastructure, we need investments so.
It's not like.
Put some some.
Regulation.
And distribution invest for free it will not work.
So in my view it will be a balance.
Possibility or situation or proposal.
Especially to maintain the health of.
And sustainable sustainability for the operators for the distribution.
It is clear that.
It's cheaper for the whole system to maintain the current distribution not to maintain but not to re auction.
The season so.
Having said that the conditions.
My view would be will be more to incentivize the investment and to improve the infrastructure infrastructure in Brazil.
In a more balanced said way not.
Damaging the whole system, because if you damage the distributions we are damaging the whole society I mean, the quality of the service so Brazil will not move.
To move forward so.
I think at the end this common sense in this.
Discussion will will be more.
Just the remuneration to a a fair remuneration and our balance sheet position in order to distribution to operate and to get their remuneration to this and also.
Provide.
A good quality.
Quality according to the data for their customer base. So the system and the customers will be beneficial in the in the at the end so.
And I don't I do not see many many of course, if if the proposal passed like it is today like.
In a certain way not respecting.
For example fiscal benefits that was.
Sure for the company to invest in this in the northeast for example, or.
Sure.
Our calculation that is not correct I mean.
Proposing investment in social issues, not remunerating, but without providing any any any minimal.
<unk>.
Benefit for the distribution it will not work and so.
At the end of the day, if youll see their contributions there are very good contributions.
I'm sure that the government will win.
We will analyze and analyze it and reach.
A good formula.
In the system to provide the interest to infrastructure that Brazil needs to be a competitive country and to grow in the future in a competitive way.
That's it.
Okay any other questions over here on this site.
Yes, and let's continue with the large ones. We have received three questions three final questions from Banco Santander. The first one is the same that.
Moneta said by ebay Twitter to even a bigger step regarding that investment plan.
The company is cutting out on the progress of the remaining assets in particular with a focus in on.
The concession in Argentina in charcoal.
The second question is regarding the management changes that have been asserted in the company at an annual SBA in the last months.
Do you expect of course, they need to follow we won't do you expect this to change their strategy will further elaborate as going forward.
Or are you keeping with our current strategy.
And the final question is regarding the Colombian assets on the current situation in that country. The question is the following.
Do you see the possibility that this asset could also be included in the divestment process did you see the assets in Colombia as a strategic one.
Yes.
Well, let's start first of all corn.
I think.
It's public and all the news that the concession was some I mean.
Postponed at the end of the concession were postponed by 60 days.
We will have with the possibility for more 60 days, which means that.
Maybe.
First 60 days of the concession Lansing.
In October with annual renewal in December I mean, this is a.
This is not.
I mean, the government is focusing on.
I'm trying to.
To assure that the concession they will do an auction, but it seems that the concession.
To give us safe.
Zero of the concession of safe operations and transition for the concession.
So probably.
Then it will have a lag and so.
The new government will probably will decide for four to.
Boost for this process of the new the new auction offshore com.
It means.
We are.
Following the planned debt.
To finish this concession to sell the asset no likely as we announce like leave leaving the country in terms of <unk>, we are in them in the in the.
In the middle of the process.
It's a very good good comp in a very good asset.
As I as I told you of course, we are discussing this with us.
The concession renewal process.
But in my in my view.
There is no.
There is no big issue considering the asset.
We are not in in our Hudson and if we don't see.
A good proposal.
There is absolutely no Hirsch and no.
And even no need to rush to sell it I repeat that the companies that is a good company. So.
I mean, it's.
We expect.
Very good.
Multiple for this company, but anyway.
We're not in a rush as Youll see in our financial financial statements, our financial position our financial situations.
In terms of Colombia.
So we see that they are.
Asset Columbia is.
It's very important for us.
But Columbus two part the important part of our strategy is.
Strategically accounted for US there is no plan.
To leave this to lift Colombia.
The strategy here is to maintain our portfolio.
I don't know if you are referring about wing Bash in this solar is an isolated.
Issue.
The specifics for this project.
That's why we announced the tulip disposal, but it has nothing to do.
With our strategy in the country and I repeat we are.
Despite that with our assets with the cash flow generation with the increase.
And we see we see demonstrations data institutional knowledge of Colombia.
<unk>.
Despite some some some issues.
Regulatory issue, but at the end of the day the regulation is very good days.
Safe in terms of legal aspect institutional knowledge and so okay.
In terms of strategy.
Sure.
We do not see changes we saw we saw that the.
The first and in the first the indications for the new manage it.
New management is.
Lineup.
With this focus of simplification.
With this focus too.
With with.
With more I mean to invest in the countries that makes sense to be not spread a lot of country and so on.
We are.
Totally.
Our strategy is totally aligner then.
Of course, we can.
We can see some some some adjustment, but it's normal it's come on the.
In the vibrant world.
We have also to analyze and to be.
A very proactive in our movements in terms of tactics and so on but.
The stripe as a general strategy.
Didn't change in.
We're not seeing any any big changes on this.
Very clear on.
The last question I promise from Kelper Securities regarding the sale of distribution it is still feeling better.
Quickly the following very Peruvian media politicians are strongly opposed to the sale of the company to China South are agreed antitrust reasons. Let me say could you said you will focus on this.
Do you think the Peruvian antitrust regulator could approve the deal without any observation anyway, how much time do you expect to deal to close the deal.
Yes, we do not see any indications, it's normal moving normal Peruvian.
Institutions.
They are very they are independent they do their work very well very profound very deepen we do not expect any.
Indifferent.
The outcome from from.
From this process, but it takes time and the governments should work very well on this if I were them I will do exactly the same.
We are confident that the.
This.
Institutional is this.
I mean this.
The way the in the coffee works.
It will be as expected.
<unk> line for this process.
Probably consider out there.
The experiences in the in the past that we see.
Probably in the first quarter of 2024.
There is no fixed timeline, but im giving you some.
Some experience that we had that we saw in the best.
Probably.
In the first quarter of <unk>, but I mean.
They are doing their work they're working.
Showing the erosion in a fair and very deep way.
We.
Waiting for their position.
Sure.
There are no more questions here in this conference call. We conclude the results conference call for the first half second quarter.
Let me remind you that as usual investor relations team is available for any further developed that youll make up some of it is kind of things. Thank you for your attention on our dividend.
Alright. Thank you everyone. This concludes the conference and you may now disconnect.
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Okay.
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Okay.
Okay.
Okay.
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Yes.
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Yes.
Sure.
Okay.
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Good day, ladies and gentlemen, and welcome to Enel Americas second quarter 2023 results conference call.
My name is Carmen and that'll be our 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 the session you will need to press star one one on your telephone you would then here and message advice in your hand is waste.
Withdraw your question. Please press star one again beat to be advised that today's conference is being recorded.
This presentation contains statements that could constitute forward looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent belief or current expectations of Enel Americas and its management with respect to among other things first Enel Americas business.
Second Enel Americas cost reduction plans.
<unk> trends affecting enel Americas financial condition or results of operations, including market trends in the Atlantic City sector in Chile, or elsewhere force supervision and regulation of the electricity sector in Chile, or elsewhere and fifth the future effects of any changes in the.
Laws and regulations applicable to enel Americas or its subsidiaries such.
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 in the forward looking statements as a result of various factors. These factors include a decline in the equity.
Capital markets and increase in the market rates of interest in the United States or elsewhere adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Americas integrated annual report.
Readers are cautioned not to place undue reliance on those forward looking statements, which state only as of their dates and they all Americas undertakes no obligation to release publicly the results of any revisions to these forward looking statements except as required by law.
I would like to turn the presentation over to Mr. Rafael de La <unk> and now American head of Investor Relations. Please proceed.
Thank you Scott.
Yes.
Ladies and gentlemen, and welcome to <unk> second quarter 2023 results presentation.
And then I think Mr lasers, I'll find innovative guys.
Before we begin our presentation, let me remind you that at the end of June Mauricio lets take it left the company and also the lighter fare Aurelio <unk> CEO took the politics I don't see often in America.
I would like to deeply thank Mauricio for these times, leaving our company in the best possible way, where we've seen the best of luck the rest of lack for ACO Joe.
We'll be presenting the main figures of this vehicle.
Let me remind you that this presentation will follow the slides that have been already uploaded into the company's website.
Following the presentation, we will have the usual Q&A session.
Please remember that our fleet sales can be made only through the telephone lines and that media is listening to both the presentation on the Q&A session.
Now, let me hand over the call our CEO will expand by aligning the highlights of the <unk> life number free.
The floor is yours.
Thank you Rafael.
During the last few months would have continued with our thermal capacity disposals, and along with putting on air and Doug sold in Argentina. We have recently analysis to say off guard by Hana power plant in Colombia.
Which will be executed in December this year with this close to 90% of our capacity is renewable.
Adjusted EBITDA in the squad increased by 13% compared to second quarter of last year.
<unk> considers <unk> genius parameters. This means that we are including results from <unk> in both euros and excluding from 'twenty two results Fortaleza boyars CN <unk> suite as we do not consolidate those companies anymore.
Also excluding <unk>.
Effects effect, which had a negative impact of minus.
$70 6 million U S dollars disputed.
This improvement is mainly explained by better results in annual sum, Paolo and Rio and renewable business in Brazil.
Regarding net debt as of June we reach at $5 5 billion U S dollars, which is 20% lower than than year end <unk>.
This is mainly explained by better cash position and lower debt consolidation related to asset disposals.
Let's now analyze our operational highlights on slide four.
In generation business. During this year, we have added more than 540 megawatts of new renewable capacity after the sale of.
<unk> suite, we reached $13 six gigawatts of installed capacity and considering the recently announced <unk>.
Thermal clarify Hana sale.
GAAP asset is close to 9%, 10%, 90% renewables.
Net production in the second quarter reached two.
<unk> two terawatt hour.
Decrease of 2% compared to the same period of last year explained by the consolidation of course on data and <unk> suite.
Latent these effects production would have increased by 18%.
Plain and by higher generation in Brazil, Colombia, and Peru.
From our total production, 88% is emission free a significant growth compared to the 75% of sale.
Period last year.
And then just sales decreased by 15% during this quarter, reaching $18 four at that hour, mainly due to the change in the perimeter.
Isolated isolated these effects sales would have decreased by 2% mainly explained by lower trading activity.
And in Brazil explained by higher energy availability in the counter <unk> due to better hydrology.
On slide five we will focus on our development of renewable capacity.
As mentioned before we have added more than five <unk>.
40 megawatts during 2023.
340 megawatts, our wind farms located in Brazil, and 205 megawatt solar plant located in Colombia, Peru, and Central America.
We have invested $6 billion in renewable energies during the first half of the year, mainly located in Brazil and Colombia.
We are currently working on additional one nine gigawatts of capacity under construction.
Also located mainly in Brazil, and Colombia.
<unk> six gigawatts of wind projects and one three gigawatts of solar projects.
During two integrated three around nine Gigawatts will be gaming operations, while one gigawatts will landed in operations in 2024.
Regarding our pipeline.
We are considering 54 gigawatts of potential new capacity from these amounts 26 gigawatts are in early stage and 56 Gigawatts are immature states States. In addition to these we have around one gigawatts of battery energy storage system.
And we are also considering the one nine gigawatts of projects under construction already mentioned, let's continue with agreed operational highlights on next slides.
Electricity distributed reached Richard 26, six terawatt hours in the second quarter, which represents an increase of 1% compared to the same period last year normal genius parameter explain it by higher sales in our distribution companies except energy.
Leo.
Regarding number of customers without considering the customers of <unk> last year, we had an increase of around 390.
390000 in the last 12 months, reaching.
Three 5 million customers.
Smart meters increased around two five times, reaching 459000 in this period, mainly due to the deployment.
And at some point.
Our net Rob has increased by 19% in the last 12 months, reflecting the significant investments that we have done in our grids.
<unk> that have been captured in our tariff review.
Vision processor the ratio net high net drop per customer.
Also reflects an important growth of.
17%.
In terms of quality indicators both sides the insight.
Improvement is on average explained by better performance in Colombia, and Brazil, and Argentina, we saw a deterioration of our quality indicators due to extreme temperatures. During this summer while in Peru, we saw an increase of <unk> you've explained it by a change in the calculation criteria compared.
Last year finally in terms of vantage of losses improve within Argentina, Brazil, and Peru, and slightly increased in Colombia.
And our lives our investments of the period in the coming slides.
During the second quarter of this year, our capex increased by 4% compared to the same period of last year, reaching $804 million. Despite that we do not have an el Fortaleza and <unk> CN costs are nearing dark suit in our.
<unk> believes that if.
If we exclude these companies from the numbers of last year Capex would have increased by 19%. This is mainly explained by higher investments in Colombia in renewables in Brazil.
We would also like to highlight that nearly 80% of our capex is allocated to our core countries and businesses.
Yes.
From the total amount, 64% were invested in Brazil, while in terms of business, 52% were devoted to renewables and 42% degrees.
Gross capex reached 466 and $60 million while.
And was mainly devoted to renewable with 84%.
In the following slide we will discuss our ongoing corporate simplification process.
During the first months of the year, we concluded the sale process of our thermal generation assets in Argentina.
Named cost on data and talk soon.
At the same time during March we completed the concession finance were two of the transmission line called CN.
In addition to this we recently announced the sale of Cartagena thermal plant in Colombia, which should be completed by December . This year finally regarding the sale of distribution assets in Peru already analysis.
The final approval of the Peruvian antitrust authorities and Chinese economic I'll start it's still pending.
Regarding the remaining disposals announced it on our strategic plan last year.
We're working on the planet.
We are not in a rush to sell and we will sell only at the right price.
Now I will comment on the financial results of the period in the coming slides.
Yeah.
EBITDA in the second quarter reached $955 million seven 4% lower than the same period of last year. However, this reduction is fully explained by the fact that we do not consolidate that endo Fortaleza and <unk> index in dark suit in this period.
If we exclude this effect and also include the results in Peru, and isolate FX effect.
Next effect.
We get to an adjusted EBITDA of $1 2 billion U S dollars, an increase of 13, 2% compared to the same period of last year, mainly explained by better results in distribution and renewables in Brazil.
Net financial results improved by 51, 6%, mainly due to a positive impact.
Joining me from Brazil, Brazilian Reais appreciation.
Group net income in the second quarter reached $169 million.
A reduction of 20% compared to second quarter of 2022.
<unk> the negative impact coming from the sale of Dr Suite and the change in the parameter finally in terms of debt, we see an important reduction of 25% that will not likely that they will in an hour. If that's later on.
On slide 12 will on slide 11, we will see the EBITDA evolution and breakdown.
Starting from 1000 $30 million of EBITDA of second quarter of two agitator tool, we have to exclude $129 million coming from <unk>, Fortaleza <unk> LCN cost I need <unk>, so in order to make it comparable with second quarter.
After extended III.
When we see that we have positive operational results and renewable ingredients, while retail analytics and thermal generation decreased in the quarter with this with these we get to an EBITDA of 1000 41 million U S. U S dollars for second quarter of 2023, which.
Is 16% higher than last year.
FX had a negative impact of $86 million.
Resulting in a reported EBITDA for this quarter of $955 million, 7% lower than reported EBITDA over the same period of 2022.
As already mentioned Peruvian assets are considered discontinued discontinued operations, meaning that its results.
It's a result of its consider below EBITDA level, if we consider EBITDA coming from Peru will get to an EBITDA of 1000 $130 million.
From a reported EBITDA of 59% came from Brazil.
The percent from Columbia, and 1% from Central America in terms of business lines grids represents 51% of our EBITDA and renewable 40% with day in and Alex contributed contributes with 8% and 1% respectively, Let's see EBITDA breakdown on a cumulative basis in the coming slides.
Starting from 2030 $6 million of EBITDA of the first half of dented into two we have to exclude $236 million coming from asset disposals.
We see that we have positive operational results in thermal generation renewable and grids businesses while retail.
And Alex.
Decreased decreases.
With this we get to an EBITDA of <unk> 2000, $79 million for the first half of 2022, which is 15% higher than last year FX had a negative impact of one other than $80 million, resulting in a report.
EBITDA for this half of 1890 9 million, 7% lower than the reported EBITDA of the same period of 2022.
EBITDA from Peruvian operations was $367 million, reaching with this and EBITDA of 2000 265 million U S dollars.
From a reported EBITDA of 61% came from Brazil, 36% for Colombia, and 3% from Central America.
And in terms of business light business lines grids represent 53 of our EBITDA, 53% of our EBITDA renewables 39 with data analytics contribute with 80% and 1% respectively.
Sure.
Our next slides, we'll focus that we have a focus on cash flow of the company.
Yeah.
Starting from an EBITDA of 1890 $9 million, we see that networking capital amounted to $571 million.
Mainly explained by physical vies credited us using connection with reimbursed reimbursement to final customers CVA impact and provisions from pension funds and buybacks.
Tax paid during the period amounted to $342 million, while net financial expenses.
Amounted to $225 million.
With these funds.
Funds from operations amounted to 760.
$61 million.
A decrease of $340 million compared to the same period of last year.
After investments of $1 $334 million, which includes.
$750 million of growth Capex aim it at a future growth for the company, we get our free cash flow of minus $573 million let.
Let me now analyze the depths of our company in the coming slides.
Gross debt amounted to seven 6 billion U S dollars, a decrease of 5% compared to December 2022, mainly explained by the consolidation of assets available in the sales of 'twenty to 'twenty three isolate and these affect gross debt would have increased 6%.
Net debt reached five 5 billion a reduction of 20% compared to the end of 2010 to two this includes our free cash flow of minus $573 million net dividend space for minus $449 million extraordinary operations for $1.
$467 million related to the sale of glass plus Diana Amdocs suit net debt this consolidation for $907 million and effects four minus $348 million.
In terms of currency and country, we see that Brazil remains as the largest contributor while the debt at holding level represents 9% of the total.
Finally regarding the cost of debt, we can see an increase for a dispute going from nine 8% and 12, 7% mainly explained by higher interest rates in Brazil, and especially in Colombia, we can see that we are in a very solid position solid financial.
<unk>, which is recognized by our rating agencies.
In the last few weeks, both Fitch rates and celebrate have confirmed our rating and outlook.
On the next slide.
I'll conclude this presentation with some closing remarks.
During the second quarter of 2020 through 20% of fleet, we saw solid operational results across all our businesses with a relevant increase in energy demand.
We maintain a solid financial position, which allows us to execute our capex plan.
We are strongly delivering and executing the new capacity coming from renewable sources in line with our strategy finally, we.
We're continually working on our corporate simplification, concluding sales processes of non strategic assets and moving ahead on coming disposals.
Thank you very much earlier so thank you all for the attention and let's now move to the Q&A session got them in place.
Thank you and at this time, we will open the lines for your questions and as a reminder to ask the question Press Star one one to get in the queue and wait for your name to be announced to withdraw the question simply press. The star one again, please standby, while we compile the Q&A roster.
Okay.
One moment for our first question.
And he comes from the line of Alessandro the veto the Medio Banca. Please proceed.
Okay.
Hi, Thanks for the presentation I have a couple of questions.
The first one is related to the asset rotation program.
You previously said that you're not in a rush to close the remaining operations that you have in your pipeline and that you are looking to achieve.
Good multiples.
So I wanted to know if you could provide more colors on the different multiples that you're looking to achieve.
And the second question is related to Idaho conditions, we saw.
So passionately comedy during this year so.
I was.
I was wondering if you could provide more color on your expectation for the remaining half of 2023.
Yeah.
Yeah, Hi, Allison. Thank you for your for your question.
Well.
Related related to multiples in this discussion.
There is not any standard that you can.
Each each asset has.
I mean, its main character is gets me situation.
<unk>.
Of course, if we analyze it.
For example, the <unk>.
Operations that we did.
In Peru for example.
<unk>.
It's a clear distribution, it's a clear demonstration that we.
We follow the best.
The best price.
The best price that we got for this asset and it doesn't mean that there is multiple should apply to draw that assets no. If I, if I may to the Argentina of two or two to Brazil. I mean this is a special characters there's not a.
The stunned that a formula to reach this of course, we have the projections of growth in the.
In our the everybody have projections of Rosa projects and lots of synergies.
<unk>.
We more than I mean.
Consider very clear that our our plan.
Is aiming to achieve the best price the best conditions for at each asset and if you're not.
No problem, we do not sell or I mean.
Key issue here is that we more than demonstrating demonstrate in our NAV.
<unk> management that we follow the best conditions for the company.
We provided this in the in the past when we bought.
For example, Sunpower Lenovo has showed some fall right now when you bought the company.
We prove that we paid a fair price and now in this setting.
I mean, the selling side, but the selling process that we are moving forward considering what we did then.
In Peru that we are achieving and aiming to the best conditions if not no.
No problem.
In terms of.
In terms of El Nino.
Your question about prices no.
Well exactly we see.
A very.
Let's say that.
The reserve volume in Brazil, they are full and it's.
We see.
Different situations for example in Colombia.
But.
In Brazil, the effect is that we have.
A good hydrology lower price, while good it depend on their own.
At your analysis, but.
Lower and lower and lower price.
It's the market works works like these of course.
The southeast we see that the reserve are in the southeast they are more and more important because they are close to the consumer areas.
But and then office.
Is the opposite with more support from <unk>.
From solar plants at the end of the day, what we with this we are seeing lower prices in the <unk>.
At least in the next year or in the intermediate and $3 34.
Because of these hydrology.
What we do all the strategies, we are very proactive at this time that we see lower prices, we got opportunity to purchasing energy and do trading more trading business to get.
Margins and of course being very proactive.
Since the situation.
Getz, we got a local a higher price we.
<unk>, we are signing Ppas in order to to to follow our strategy. Our integrated starts in terms of of.
Margin and.
In terms of.
Of.
Our position in terms of margin, but it's very very interesting because today, we see lower prices in Brazil, and higher pricing in Colombia, and we are in both markets.
This is <unk>.
Niche condition for a company like hand in Americas to be positioning in vertical.
This complementarity of both both.
Our markets when do we see this phenomenon of Nino all anemia, we ship a complement the complementarity between those markets. So.
Colombia, we are.
We are very well contracted.
And as we hire bright in Brazil.
We are contracted but with some more difficult to get higher prices in.
In the coming years, but this is a.
Our concern for our process and it changes we pass it through these and the best and.
It shows that we know exactly how to deal under this this condition since we have on one side the.
The capacity the renewable capacity and one one side one hand, a very good.
Trading activity to having a very good customer base.
That we can.
We can achieve not only in our concession areas, but.
Around Brazil.
Medically or maker.
Thank you one moment for our next question. Please.
Alright any comes from the line of FBL Fernandez with bombs. Please proceed.
Good morning, everybody. Thank you.
For taking my call and very complete material it's always.
Two questions one on Colombia.
Everyone one.
Regarding batteries.
Possible investment in batteries and storage.
I would like to go one by one if you do not mind.
My first question is related to Colombia on how Q2.
Upcoming got it okay.
Auction.
For the end of the year I was wondering if you can comment if youre planning to participate.
And if so would what technologies.
Okay.
Okay. Thank you.
Do you want to.
To ask all the questions are.
Just to I'm sorry.
Got you.
Significantly ahead of you.
Sure.
Let me say right the three questions altogether.
Going to organize it.
Sure.
Okay.
In fact, I think Colombia second quest Buttery has taught our chief risk if I'm correct.
The first one yes.
Yes, let me elaborate then obviously.
Columbia upcoming.
Auction, if youre planning to participate.
I'll, let you.
Regarding batteries were seeing a lot of <unk>.
Action in Chile.
Got it.
Batteries.
Complement to renewables and also transmission solutions, but we're not seeing or maybe you are announcing a lux.
In other countries.
You are aware of any.
Participating.
Initiatives on that side and perhaps.
Colombia et cetera.
Question is ready to go to.
<unk>.
For the power generation RMR youre already in the process.
<unk> evaluating bids.
What Mike films, perhaps are.
Pending.
Perhaps related to the merger of power.
Our Taiwan.
Can I ask in Peru.
And when do you expect to close or at least announce to site.
Okay.
We are focusing our strategies mainly in the in the.
For the free market.
So.
Of course, if we.
Youre not participation just for the auction or just for the.
<unk> I believe that.
It's a very good comp comp.
Compliment of this.
This.
The revenues but of course.
The main one.
Related to two ppas.
So.
Of course, we see that.
The market has different conditions in.
In Colombia.
We see we are fully contracted in Colombia, but we certainly will in the coming in the coming months.
We are.
Present, our strategy in terms of.
From dedicated margin that we can we can provide you.
More details on this in terms of batteries.
In terms of batteries.
Of course, we.
In our plan, we can see that it.
Especially in the demand response right.
<unk>.
We can see that into a small margin not not too big.
We are triple tripling the demand response that we have today, but in terms of remuneration is.
<unk> is not is still not relevant.
We see that especially in Brazil.
Colombia.
<unk>.
There is different from Chile.
The cost is too high in terms of.
Especially to use in the in the wheat plans for example to reduce.
The effects.
Two solar plants to reduce related flex effects during the night.
And.
We had.
Still.
We are implementing developing the technology.
But.
Not.
I mean.
Slower than than what.
And it is doing in Chile, just to give you a comparison.
In terms of Peru, we are of course.
We are focusing selling the assets.
In Peru, we are not.
Increasing our capacity of course, we are we putting function some.
Some renewable renewable plants in.
But this is all part of the package that we are in.
That we commented with this corporate simplification.
And especially the generation assets, so it's not for us.
<unk> is not.
An objective to increase our capacity in Peru is the opposite.
Okay that was very clear and that's all from my side. Thank you very much.
Youre welcome.
Thank you and I'm not showing any first in the queue I will turn the call back to the last half for closing remarks.
We haven't seen some of the west coast.
Let me read the first question for ammonia.
Critical capital.
Clearly there is a following Andrea can you comment on your latest thoughts on what Youre.
Youre seeing with the process for the renewal of distribution concessions in Brazil.
Okay. Thank you Andrew for your question.
I see.
It's interesting because Brazil will open that there is lots of discussion space for discussion is space for.
Anyone could contribute in the in the process you know that there is a process of public key public hearing that that the contribution theater to finish it lost.
Last Monday.
And now the government is analyzing their contributions lots of discussion and lots of space in there.
According to the timeline it is estimated to.
<unk> to be.
Final proposal.
Regarding the regarding the proposal.
Of course.
Huge negotiation, but at the end of the day, what I, what I see is that the technical aspect will.
We'll prevail I mean.
It should be.
Balance it and distribution companies should have.
Our next lead bringing in terms of returns.
That should keep on providing an important service in Brazil.
Know that in Brazil, we have a lack of infrastructure we need investments so.
It's not like.
Put some some.
Regulation.
In distribution invest for free it will not work.
So in my view it will be a balance.
Possibility or situation or proposal.
Especially to maintain the health.
<unk>.
Sustainable sustainability for the operators for the distribution.
It is clear that.
It's cheaper for the whole system to maintain the current distribution not to maintain but not to re auction.
The system so.
Having said that the conditions.
My view would be it will be more to incentivize the investment and to improve the infrastructure infrastructure in Brazil.
In a more balanced said way not.
Damaging the whole system, because if you damage of distribution, we are damaging the whole society I mean, the quality of the service so Brazil will not move.
To move forward so.
I think at the end this common sense in this.
Discussion will will be more.
Just the remuneration to a a fair remuneration and our balance sheet position in order to distribution to operate and to get their remuneration to this and also provide.
A good quality equality.
Quality according to the data for their customer base. So the system and the customers will be beneficial in the in the at the end so.
And I don't I do not see many many of course, if the proposal passed like it is today like.
In a certain way not respecting.
For example fiscal benefits that was assure for the company to invest in this in the northeast for example, or.
Our calculation that is not correct I mean.
Proposing investment in social issues, not remunerating, but without providing any any any minimal.
Sure.
Benefit for the distribution it will not work and so.
At the end of the day, if youll see their contributions there are very good contributions.
I'm sure that the government will win.
We will analyze and analyze it and reach.
A good formula.
In the system to provide the infrastructure infrastructure that Brazil needs to be a competitive country and to grow in the future in a competitive way.
That's it.
Okay any other questions over here on this site.
Yes, and let's continue with the large ones. We have received so three questions for any final questions from Banco Santander. The first one is the same that.
<unk>.
Sent via E Bay dwell into Illinois, Michigan State regarding the investment plan.
The company is cutting out on the progress of the remaining assets in particular with a focus in <unk> on.
The concession in Argentina and Chaco.
The second question is regarding the management changes that have been offered in the company at an annual SBA in the last months do you expect the question is the following what do you expect this to change their strategy will further elaborate guys going forward.
Or are you keeping with the goal of this strategy.
And the final question is regarding the Columbia assets on the current situation in that country. The question is the following do you see the possibility that this asset.
Also be included in the divestment process did you see the assets in Colombia as a strategic one.
Yes.
Well first of all corn.
I think.
It's public and all the news that the concessions.
I mean.
Postponed at the end of the concession will postpone it by 60 days and.
We will have with the possibility for more 60 days, which means that.
Maybe the first 60 days.
Lansing.
In October with annual renewal in December I mean this is.
This is not.
I mean, the government is focusing on.
I'm trying to.
To assure that the concession they will do an auction, but it seems that the concession.
To give us safe.
Few of the concession the safe operation and transition for the concession.
So probably.
Then it will have a lag and so.
The new government will probably will decide to Florida, Florida.
<unk> for this process of the new the new auction offshore com.
Yes.
We are.
Following the planned debt.
To finish this concession to Saturday.
No like we as we announced like literally leaving the country in terms of <unk>, we are in them.
In the middle of the process.
It's a very good good comp in a very good asset.
As I as I told you of course, we are discussing this with <unk>.
The concession renewal process.
But in my in my view.
There is no.
There is no big issue considering the asset we are.
Not in our Hudson and if we don't see.
A good proposal.
There's absolutely no Hirsch and know.
And even no need to rush to sell it I repeat that the companies that is a good company. So.
I mean, it's.
We expect.
A very good multiple for this company, but anyway.
We're not in a rush as Youll see in our financial financial statements, our financial position our financial situations.
In terms of Colombia.
So we see that they are.
Asset Columbia is.
It's very important for us.
But Columbus, two part important part of our strategy is.
Strategically accounted for US there is no plan.
To leave this to lift Colombia.
The strategy here is to maintain our portfolio loans.
I don't know if you are referring about we bash in this solar is an isolated.
Sure thing.
The specifics for this project, that's why we announced actually disposal, but it has nothing to do.
With our strategy in the country and I repeat we are.
Satisfy that with our assets with the cash flow generation with the increase.
And we see we see demonstrations data institutional knowledge of Columbia prevail.
Despite some some of them on some issues.
Regulatory issue, but at the end of the day the regulation is very good days.
Safe in terms of legal aspect institutional knowledge and so okay.
In terms of strategy.
We do not see changes we saw we saw that the.
The first and in the first the indications for the new manage it.
New management. This is alignment with this focus of simplification.
With this focus too.
With with more I mean to invest in the countries that makes sense to be not spread a lot of countries and so on.
I mean, it's.
Totally.
Our strategy is totally aligner then.
Of course, we can.
We can see some some some adjustment, but it's normal it's come on the.
In the vibrant world.
We have also to analyze and to be.
A very proactive in our movements in terms of tactics and so on.
The strategic agenda stretches.
Didn't change in.
We're not seeing any any big changes on this.
Very clear on.
The last question I promise from Kelper Securities regarding the sale of our distribution in any stimulus here in Peru.
Quickly the following mainly Peruvian media politicians is totally opposed to a sale of the company to China Sulfone olivine antitrust resource. Let me say could you just had to do with folks of this model.
Do you think the Peruvian antitrust regulator could approve the deal without any observation anyway, how much time do you expect to deal to close the deal.
Yes, we do not see any indications, it's normal moving normal Peruvian.
Tuitions are very.
They are very they are independent they do their work very well very profound very deepen we do not expect any.
Indifferent.
Come from from.
From this process, but it takes time.
And the government should work very well on this if I were them I will do exactly the same.
We are confident that this.
Institutional at this.
I mean, the way the in the coffee works.
We'll be as expected the timeline for this process.
Probably considered out there.
Sure.
That experiences in the in the past that we see probably in the first quarter of 2024.
There is no fixed timeline, but I'm, giving you some.
Some experience that we had that we saw in the best.
Probably in the <unk>.
In the first quarter of <unk>, but I mean.
They are doing their work they're working.
Showing the road enough in a fair and very deep way.
We are waiting.
Waiting for their position.
Well. Thank you as there are no more questions here in this conference call. We conclude the results conference call for the first half second quarter, and let me remind you that as usual investor relations team is liable for any further developed that youll make up some of it is kind of things. Thank you for your attention on our dividend.
Alright. Thank you everyone. This concludes the conference and you may now disconnect.
Sure.