Q3 2023 Enel Chile SA Earnings Call
Yeah.
Good morning, ladies and gentlemen, and welcome to Enel, Chile at nine months and third quarter 2023 results conference call. My name is Victor and I will be your operator for today.
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During this conference call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties actual results may differ materially.
Clearly from those anticipated in the forward looking statements as a result of various factors. These factors are described in Enel Chile's press release reporting its nine months and third quarter 'twenty to 'twenty two 'twenty three results.
The presentation accompanying this conference call and Enel Chile's annual report on form 20-F included under risk factors you may access our nine months and third quarter 2023 results press release and presentation on our website www dot and the C L.
In our 20-F on the Sec's website www Dot FCC dot Gov readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates.
And then Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate, except as required by law.
I would now like to turn the presentation over to Mrs. Isabela <unk> head of Investor Relations of Enel, Chile. Please proceed.
When Scott good afternoon, and welcome to Enel, Chile third quarter and nine months 2023 results presentation. Thank you all for joining US today. Joining me. This morning is our CFO, Joe Kennedy, our presentation and related financial formation are available.
On our website www dot and nasdaq's yacht in the Investor Relations section and as Larry Naira App investors. In addition, a replay of the call will be you'll now available at the end of the presentation, we will be an opportunity to ask questions, but your phone or webcast.
Shot show the link ask your question media participants are connected only in least in animals in the following slides we opened the presentation with our key highlights of the period, Dan go through our portfolio management actions and market context updates.
And finally give us a view of the business economic and financial performance. Thank you for our nation and now let me hand over to you that deserve it.
Is that data without payment.
<unk>.
Let's start.
So with our main highlights.
I would like to start with our fourth quarter highlights.
During the week added around 400 megawatt.
Renewable.
Contributing.
Thanks, Amit.
Okay.
Okay.
Alright.
We are pleased right now that thats kind of a transaction was concluded.
They can see.
Bye bye.
Megan.
That will be used.
Also the delivery fee.
About what.
Sure.
Let me remind you that the operation involves the building of <unk>.
But the last call.
A replay amount of diesel.
100, <unk> being Mega maybe give you more color right.
Hi, Vivien.
We had the ability for the rainy season.
The Iranian yes.
This is reflected in a 28 alright.
Hi, John Best of luck.
But I'm not concerned that market context on the distribution business.
The technical report.
Great.
<unk> already.
The process is not yet concluded, but we'll give you more color.
Lee.
Regarding the factory.
In August.
Great.
First.
So let me speak to that.
Chile.
Okay.
Great.
Got it.
During the <unk>.
Collect an additional.
And we are doing.
And then.
$2 million.
Okay.
Again about the bank.
You mentioned that the governor signed.
In agreement with that Congress based on which a drug.
Should be building.
But rather than.
Is Italy a solution.
Based on mute.
Okay.
Also in November the government Committee.
Andy and Ralph.
Scott.
Such as this.
Mission planning process.
Adoption and renewable.
Okay.
Our EBITDA rose reaching.
$3 million.
R R.
Higher compared to last.
And now.
<unk> increased by $790 million versus last year.
Joey any possible recovery.
We will deep dive into the quantity.
So Lisa now led.
Move to slide three.
Let's now look.
We are closely.
Renewable leadership.
Our generation portfolio.
During the last.
Focus more of our.
On developing a diversified renewables.
In line with our.
Pickup ambitions.
And we are reaching that.
Perfect.
In the north or south.
Sure.
In these nine months.
We connected almost data.
Additionally.
A week.
013 gigawatt.
Well.
Among the projects already committed.
I was glad to quality income.
And 99.
Solar power plant is located very close to the consumption.
And the Santiago, Chile, one being filed.
But as I recall.
And talk about them yet.
To connect.
Okay.
Pete Mangan.
Yes.
Okay.
Therefore, our renewable capacity to continue increasing.
We have reached PS.
Got it.
Yes.
Representing 77%.
Okay.
Thanks.
We have received the operational commercial duplicated or $1 <unk>.
Yes.
Great.
Process.
So well.
But as I look at the April 15th.
Our market is please keep down Mick.
As a part of our unlocking base.
Paul.
Hey, Mike.
Reinforcing the value of our asset.
But the milestone was achieved.
We completed this phase of our subsidiary.
Dr. John This was announced in July and it was costly.
<unk>.
2025.
Yes.
All the condition established this kind of transaction.
Including the approval from.
The Canadian crop.
Please go ahead.
In line with the agreement, thereby yet Dominique <unk>.
Open amount both by banner.
Million.
We expect to react positively impacting both our net income of around $100 million.
Our net debt.
Sure.
Great.
Regarding the latter I would like to point out that the stock.
Rob It's Tony.
Thoughts around $61 million will be paid in April 2024.
And therefore, it will not affect it very quickly.
Yes sure.
Yes.
We gave up some more room to execute our capex plan and strengthen our financial position.
Now.
Slide let's look at some update on the.
With that situation.
Sure.
I would like to highlight that we have.
From the very favorable hydrological conditions.
So that's going to be higher.
Both.
Q3, and nine months.
As of September we wrap up.
Three 8%.
Of additional production, reaching eight one.
Sure.
We'll see that in this scenario.
To close the year with down 11, 9% at about that one too.
Two more.
Thanks, Steve.
Hey, David.
The significant increase in rainfall at Roes because situation all of our research.
For the game.
Actually in this out of the account.
Rainfall exceeded David Osaka level of the last year.
Laughter.
Beijing.
David label by a thorough review of the last year.
Bob.
Addition, educated on the image.
At the same store this slide no cover demand is better than last year.
Okay.
Regarding our GAAP optimization activity and trading.
We continue aiming at the conference about gas availability.
For the long term LNG agreement, which kind of contract timing.
Supply.
Since October.
New frame agreement that we've got supply yet.
Two 4 million cubic meters.
But it properly.
Okay.
And Anthony.
Our <unk>.
Turning to costs.
Thanks <unk>.
In the Central zone.
Continued giving out LNG swap with an orphan.
With natural gas isn't available.
This nine month period, we divested Sarah.
Shipments to the North pole.
Well thank you.
In addition, we continue executing and server trading.
With local industrial and mining customers.
Yes.
Convention leather.
The theme of two sheets in the Q4 as we see in the Q1 this year.
Okay.
Contribution.
Contribution margin for all of these.
It will be around $170 million.
For the full year 2020.
Now on page five let's review our platform a new initiative in the future.
Visit.
Yeah.
Let me highlight some indicators related to the distribution.
In our constituent.
The number of customers.
And if you continue to grow that for new opportunities and challenges hosting for Iraq.
On quality and efficiency looking at the last month, we see a significant improvement.
Of around $12 million.
And the energy losses.
Remain flat.
Yes.
Before moving further ahead.
On the distribution side.
Thats fine.
Part of the beauty.
Really great.
<unk> has already been published.
Wrap up a radical.
Correct right.
During the exit fee.
H.
Right.
We are still waiting for the tax breakdown by type of filing.
We should be published by the end of this year.
We have a new speed that process that rates in check.
Page eight the.
Beacon will be revealed.
After all this process. He was alive, we will pay the final.
Final distributions I can release.
Considering all that I have mentioned, we expect this process.
Doing well.
Paul.
Our wolfcamp asset.
2028.
Eight bushels per acre.
Sure.
<unk> process.
Process has already started.
The component of the aggregated a.
A good chunk of the 2020.
Instead.
Instead of cost of newly with FBR.
At this time.
The process is still ongoing so next year.
More update on that.
So I got the unless we have some interesting milestone focus on the application and the organization of our clients.
<unk> reached in the EU.
Let me go through some examples.
Alright.
We have incorporated 2000.
E buses into the back into the Santiago.
Are.
It is 6% higher than the base year figures mainly through <unk>.
<unk> New E buses.
That one five to support.
And through the agreement signed with employee.
We'll deliver.
Bob.
Thanks, Tom.
And public lighting.
When you say there are rules by 18%, mainly as a consequence of new contracts signed with <unk>.
Amongst them.
To conclude.
We continue working to increase the number of public and private charging points autolytic byproducts.
And to be awarded with a more of a lagging process.
While the count.
In this way.
The issue of the market.
Now, let me drive you through the financial platform of our business on slide six.
I will begin summarizing our main results for the period to better evaluate our company early summer, we presented clinical into vehicles.
Pro forma this includes sumit.
Alright.
Maybe that has been adopted by the impairment of coal.
So totaling $63 million in the nine months.
Video is.
And $1 million in the third quarter of <unk>.
Okay.
These adjustments affected the bottom line of $43 million.
Nine months video zero point $5 million.
And that's what that clinically.
The second one.
And then most of element one related to this deal.
And as detailed in this segment.
We excluded from our.
They did that.
Palin reached.
<unk> amounted to $77 million nine.
Nine month period, and $24 million in the third quarter.
These adjustments affected the bottom line by policy.
And $15 million in the <unk>.
More video into Q3.
Great.
Now on the call.
Two figures does it also by the evidence that we can be better in terms of cash by $18 million in the nine month period.
<unk> million dollars.
Yes.
The 23 figures also exclude visa.
Yeah.
<unk> million dollars paid in stock.
For the capital gains.
But we can say.
Yes.
Considering these let's see how the early indicator.
Paul.
Bob.
And the nine month period.
The third quarter of 2023, we see a relevant improvement in EBITDA.
Net income basis.
This is mainly explained by more efficient generation mix.
Especially during the last quarter due to the improvement in that rollout.
And better distribution.
We will see more detail in the following.
On slide.
Regarding that.
The 2023 figures show a relevant.
Improvement impacted mainly by the EBITDA.
And by the effect too.
First execution.
And that entity.
We do see more detail later.
Yes.
Let's review the progress on Capex on slide.
David.
Our nine month 2000.
So by Capex reached $547 million.
74% of our total capex deployment was related to renewable.
94% of the total capex, mostly.
The goal.
Customer capex totaled $64, 18% higher than the previous year, mainly associated with the new Amish.
Mitch.
Further investments reached $102 million.
15% lower than the previous year, mainly due to lower maintenance activity.
The Asian plant and distribution.
These effects.
Offset by new renewable plants in operation.
Then program.
Development Capex reached 381 million, representing a decrease of 34%.
Versus last year.
In line with the remaining renewable portfolio under contract.
Let's move now to slide eight.
The summary of the third quarter EBITDA breakdown accounting for 90.
$91 million.
First of all let me remind you again the changes in the company.
<unk> perimeter, mainly due to the case of bananas.
In December last year.
We have included at the corner of our EBITDA for the Q3.
2022.
Based on progress.
Third quarter, turning to increase EBITDA is $162 million higher than the 23%.
Mainly explained by the following.
A positive effect denies that octane renewable contribution of $149 million.
While our market mainly associated with Ing group.
Hydrology in the walk.
And the positive.
The effect of $132 million.
Both caused mainly by lower white spots in.
In the block and the costs that went through.
Therefore mix affects the west partially offset by a lower Scott optimization DVD.
Which decreased by $1 9 million mainly.
Mainly related to the lower gas prices and lower GAAP trading volume.
3.3.
Steel, which is equivalent to one cargo of LNG approximately.
When compared to the same quarter last year.
$36 million of lowest Ppas.
Sure.
Good day.
2012 increased primarily due to.
Lower average PPA price mainly related to devaluation of.
Good evening.
Pesos versus the U S dollar in both regulated market.
Lower commodities indexation.
Sure.
The remaining variation of our EBITDA come from.
Plus $16 million due to the greater amortization related to the indexation.
And the required services lower financing compensation, partially offset by lower demand.
Based on expert in Opex and other costs, mainly by the financial aging and therefore.
And how you are affected.
Due to the recognition of.
Yes.
Let's move to slide nine where we have a summary of the nine month EBITDA breakdown at currency.
No.
SUV deep.
In the third quarter, we are excluding the perimeter into EBITDA.
For comparison.
And for a better understanding of the twin clinically breakdown.
It is fairly benign feed by effectively.
293 million, mainly explained by <unk>.
High yield contribution of either a removal of 182 million mainly related to the improved.
Royalty volume.
$98 million from higher CPUC in nine month 2023, primarily due to.
$37 million provide yet.
It's mainly related to the litigation.
The $8 million, mainly due to the higher capacity payments revenue primarily due to possible.
Baxter.
And that caused us some market to renewable project, which increased the payment for all the projects.
And second the new <unk>.
Our plans for next year and commissioning during the last quarter and within the industry.
Okay.
A better aspect of selling in million variable costs, mainly related to.
$162 million related to a lower cost drag in the period due to a better projects since June 2023.
Mainly during that novel, Iowa.
One one off.
The agreement with one of our PPA supply.
Partially offset by lower thermal generation margin.
<unk> amounted to 144 million.
Okay great.
Sure.
Yeah.
The remaining variation of our EBITDA come from.
Block $24 million to greet immunization related.
<unk>.
Lowest bank competition and higher demand.
Therefore mentioned effects, the west partially offset by higher.
Mainly installation by $20 million associated with the new capacity in.
Inflation across all of them.
Let's move now to slide 10.
To take a look.
Our financial Kpis.
Next electricity generation vocal 17 currency.
Adopted.
But September 23.
6% higher than the level recorded in the first nine months of videos.
Mainly due to higher hydro and solar generation DCF, reflecting better Andrology and addition of new products.
He is also a threat.
The lower spend months dispatch, mostly related to the disconnection of becoming.
At the end of 2022.
During the third quarter.
Next generation group.
11 percentage to seven.
Power, mainly due to higher hydro and solar generic.
Our energy sales fell from 23.2.
Our September 23, maintaining the level recorded.
And then with <unk>.
It is worth mentioning that our commitment with our clients with full speed with a higher portion of our renewable generation, which also Lee.
Lower energy pass through.
Initially in this spot market, mainly on <unk> during the third.
Great.
<unk> sales increased by 0.4.
Seven eight terawatt hour mainly.
Many of these to the highway Bill.
Hey, guys.
Let me call your attention to the fact that the tender neck.
Nextel.
During the third quarter characteristics.
Mainly associated.
With a much better than expected.
Now on Slide 11, let's go through the main driver of our growth we think.
Our net income increased.
7%.
Two 336 million.
September 2003, when compared to September 23.
Mainly resulting from a greater EBITDA.
$193 million.
<unk> previously.
This nine month period.
Hi, Ed.
And the amortization of $12 million.
Mainly.
As a result of our new renewable projects in operation.
Is compensated by lower depreciation.
Yes.
Mainly the consequence of new investment in power plant that increased the average useful life of the project plan.
Thanks.
A high debt amortization of intangible assets.
It was down partially compensated by lower bad debt, mainly related to the filing deadline.
Congratulations.
Regarding financial results and a good deal.
Investment.
Can a higher result.
By $23 million.
This is explained by lower financial costs associated to lower factoring it.
In the period basis.
True.
Mainly due to the effect one factory.
Ingrid.
Income related to the <unk> to better content to sort of not control cockpit.
Hi, Nelson contact that increased by $143 million.
This is mainly explained by higher earning before tax.
Monitoring.
Yes.
Provision related to the classification of the investment in <unk>.
And for the state.
In this quarter of 2023 net income increase.
$5 million to $110 million.
Primarily explained by.
Higher EBITDA.
Slide.
Higher depreciation amortization of $11 million.
Is mainly explained by the generation business due to the new renewable energy projects in operation.
Hi, Yes financial result, an equity investment of $24 million.
Okay.
This is explained by two positive effects.
We had higher financial income in the third.
Sure.
Mainly explained by the greater interest income related to the implementation of <unk>.
This stabilization maintain.
Thanks, Tom we had.
Lower factory costs in comparison to the biggest quarter.
This was partially offset by higher debt.
Hi, guys can contact that increased by $53 million.
This is mainly explained by the higher earning before tax.
Good morning.
And provision related to the classification of debate.
Got it.
Phosphate.
Moving to the FX.
On the next slide.
Let's review in detail our SSL for this video.
As I mentioned before and clinically.
The pro forma excludes.
Excludes $310 million.
Got it.
Due to the capital gains.
From the energy that we sell.
Okay.
Therefore.
These documents SSL among.
$128 million.
Reflecting an improvement of 700.
$90 million when compared to last year pro forma figures.
The main effect that explains our FX all in.
Leaders at discovery.
$783 million coming from.
Driven by the strongest royalty contribution and better in the distribution business.
Beyond that.
$7 million negative impact from the Kumamoto doublet.
<unk> maintained our senior book.
Reducing the cash conversion deals.
The duration has been improved by the impact.
Of that fast.
Of the ICP factory each one.
<unk> amounted to <unk> 9 million.
No.
As I have already mentioned.
We have already received additional.
$17 million in the second during.
During the Saba.
And we are acting to receive additional clarity.
<unk> million dollars and percent of disease.
Okay.
Working capital reached a negative balance of $119 million as a consequence of that.
Eva payments the payments related to the stabilization mechanism account.
E buses payment.
Payments, partially offset by cash management and cash.
And from this data.
Bill.
Working capital improvement once compared the last.
Yes, Ddos, mainly come from the status of that.
Merrill edge.
Income tax reached 7 million mainly related to the payment.
Payments in duration.
In the nine months 2023.
Offset by the tax recovery from the Grace period for both.
Generation and distribution business contribution.
Whilst compared to the income tax paid in 2023.
Versus last year, the main defense come from the tax recovery from Vegas.
Octane during this year.
To conclude.
Financial expenses, we reached $203 million.
This is explained mainly due to the debt related to the average.
Interest rates of the crops that are.
Four nine percentage that reflect also going into.
<unk> associated with the revolving credit.
Once we compare the community based financial expense.
<unk> the last year.
We see an increase also explained by the higher average interest rate on the cutoff date.
Loan prepayments related to the revolving credit facility, which is positive to date.
Now.
Let's take a look at.
Our liquidity and leverage position.
Our gross debt increased around $3 billion to $4 9 billion.
Billion.
Thanks.
Compared to December.
<unk>.
This increase was primarily related to the tax payment related to the energy that we feel safe.
Great.
Networking capital needs.
It should be.
The tax increase is a temporary effect.
The proceeds from the.
Update on October St. Paul.
Also our cash generation will likely improve.
In line with our operation.
Lower Capex capex requirement.
In some respect and net debt to EBITDA of below three times by then.
Okay great.
The rate of our debt maturity reached $5 seven year as of September.
Three maintain the larger portion of.
At a fixed rate of two weeks.
7%.
Thanks.
The average cost of our debt to reach.
9% higher than December figures, mostly.
Going to the new profile of our debt.
The financial market conditions, and the prepayment of some reach of them.
Now.
The closer Max on page 14.
The nine month result show.
Operation operating pattern.
The element that we had.
Now.
But better than expected.
In the full natural gas availability.
Boosted our results, giving us more confidence to achieve the upper range of our 2023.
EBITDA guidance as mentioned during the last call.
At planning.
We successfully concluded the Cabot transaction last October.
Sure.
Proceeds of this transaction and the continued improvement of our financial position, our lower leverage our strong position.
In addition call deck.
And explore the opportunities that will methodology.
Finally, we would like to invite Kew.
Our investor base.
Take place at the end of November on wheat chip will be presented.
Len update post the deal quickly.
Given the most of this is a significant tonnage of speakers for our MBS.
And this.
Let me now.
Is that better.
Okay.
Thank you very much and now we will open the Q&A section. So you can ask questions through the chat or fill the origin.
Victor could you. Please open the line for the next question that we have.
And as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.
To withdraw your question just press Star one again, one moment for our first question.
Our first question comes from the line of Javier Suarez from many of Banca <unk>. Your line is open.
Hi, good morning, and thank you for the for the presentation.
Two or three questions. The first one is on the on the day one of the latest comments on the net debt.
EBITDA.
By the end of the year that should be.
Around three times.
Mentioning also that you.
Dedicate the closing of the caveat I'll caveat is to reduce debt. So the question is how do you see.
The optimal level of net our net debt to EBITDA for a company like Enel, Chile is that three times the level that you see as sustainable or optimal for a company like yours in current environment.
That would be the first question.
The second question is.
Related to your statement on the proposal by the government in November on measure to for the development of transmission asset disposal facility Samiel renewable energy assets, you can share with us your latest expectations based on latest compensation, we kept many thanks Sean.
Wood, which may Ken came out from that proposal and then the third question just a clarification again on the cash flow statement, we have seen.
Very good contribution from the factory.
Processed the first tranche you cannot help us to understand Europe net debt to EBITDA guidance update then would you are expecting to collect from that factory exercise. Thank you.
Yeah.
Thank you Javier for the question I'll turn it over to Jay.
Okay.
For what concern the NAND.
Debt to EBITDA level, we believe that.
Being below three times.
Comfortable.
Leverage for the company.
Clearly give us the opportunity to.
Possible.
Sure.
In bakery.
But in general.
Our target is to be below three times.
Between two five and <unk> nine something that day.
For what concern the proposal.
Made by the government and the commitment that the governor and date.
Versus the Congress.
Well.
Let me say that.
Is it clear.
Then the pound.
Two is going to.
Okay.
It's going to be a used entirely by the end of December so basically now.
Detroit.
How to handle the increase of die.
According to the situation that we see today.
And.
The government.
One.
Net.
The submission of the dropdown.
It was supposed to be by the end of October.
Postpone.
During this month being a member.
Okay.
We believe that at.
Im pleased that before that could be in line with our expectation and they mean that.
We hope that everything is growing.
The positive way so it is going to be neutral for the company.
Now.
We're going to see how that Congress will repeat.
The feedback and how the call that we could.
Changing.
The proposal development, but so far we don't have any.
Detailed information about these at this point, we are confident that we don't have yet.
Sure.
Great.
For what concern the effect.
Factoring opex too.
We started.
Two factors Ryan.
Two.
In the past.
France was at the end of August.
As I said, we have already made.
The second part.
In October about $17 million, we believe.
Wherever and other.
Bob.
It is around the $40 million.
End of December.
23.
Ed.
We will still incur.
Everything is going well with another tranche.
In the primary screening.
For the.
It is.
This is going to be the last one.
Before the new decree.
That's going to be issues, what I mean that.
In order to go ahead with the factoring of the stack.
Lead the way.
But the new decree or we need a new.
Load that is going to be.
That is going to handle the situation became so.
So we are waiting.
The proposal from the government, but at the same time.
We are confident.
About that following the flow at least build February next year.
And therefore to be 100% clear in your guidance with net debt to EBITDA. It is included at total collection from factoring just south of.
$400 million is that correct.
2020.
Yes.
Fantastic many thanks.
Sure.
Thank you.
Once again Thats star one for a question Star one.
One moment for any further questions.
And I'm not showing any further questions in the queue I'd like to turn the call back over to Isabella Clements for any additional questions via chat.
Thank you Victor Yes, we have some additional questions.
The first one is that a question that.
Alright into our shop.
One of our investors are asking how much is that.
Are there any shares and when we paid the dividend related to the nine months 2020.
Right.
We are going to have.
Already.
You've been there.
And the shareholder.
Absolutely.
The interim dividend in January.
10% of that.
September 23 result.
And.
Then.
The board of.
Awesome.
So it's going to be approved.
Approved.
And proposed today.
Sure.
And the final dividend.
In.
And there is that.
Brian.
The dividend payout that we.
And proposed in the capital markets day last year.
Thank you just that we have one more question. The question is also related to factory okay.
A question from Andrew Mok Army from Greg Hart.
Can you provide us with some color on what you think will happen with respect to factory Macanese.
Will this require finance from foam Bunny slide and then Chile.
Does that fit.
Yes, I mean.
What I can tell you is that.
Basically it's been.
Published in the newspapers.
Basically yes.
To find a way on.
On one side.
To.
On one side too.
Increase the target.
Now.
The big impact on the on the.
But in the same time.
E.
Sure.
Recover of the debt.
All of the bank.
Dean.
Quality is till now.
He is also now.
And that has been mentioned in the proposal that is the subsidies.
Sir.
Stefan.
Kind of catchment.
So basically the capital with the.
Lower level of income so we believe that part of this debt that is going to be subsidized.
Through this mechanism.
Again, we don't add more.
Information than what we see.
Yes.
David.
Thank you just a bit we have one more question the other question.
Let me just Steve also related to loss Congress project that was done by debit Barra.
Duffy.
Okay, Hi, Thank you for the presentation I have two questions. The first one.
There being any problems in the Congress projects like the one we have seen Neil for my poor project.
The total expected cost of laws Congress project. This is the first question and then the second one is is that any specific plan from the revenue from the sale Satcom, yes. Thank you.
Okay.
The total cost of the loss combat.
We don't have any update with respect to what we have already.
A decline in the top so we are really around one 2 billion.
Sure.
We had.
We refer from.
Yes.
Because of the rainy season in July.
Yes.
As already mentioned last time, the last call if we could.
It could mean.
More delay in terms of <unk>, but no major impact on the book.
Okay.
But what concerns the proceeds coming from the <unk> as I said that we are growing too.
One signed.
Repaid some.
Loan bank loan and the revolving credit facility on that upside that we're going to use the proceeds in order to.
Finance our.
Capital.
Networking capital.
Okay. Thank you and we have.
The final one that we just we keep tier is relating the changes that we are joining with <unk> genuity.
So our.
Question is coming from Marc Jean and sorry, I don't know how to pronounce your surname Martin, but the purchase Stonewall the generic frontline is connected to long term contracts with father James can.
Can you give us a sense of duration and high.
Okay.
A couple of years ago, we started.
To sign.
Some PPA in mind in order to.
Diversified our sources.
So now this.
Energy purchases.
The coming months arising.
In terms of.
Contractor.
We're talking about around fleet.
Our loan contract and for what concern the.
Timing.
I would say that the is that.
<unk>.
Danny.
In any of it.
Okay.
Of course, there is.
David I kind of.
Our PPA we have also.
They are called <unk>.
Between 10 and 15.
Thank you just lastly, Peter do we have any other questions.
We have no further questions in the queue.
So I would like to thank you all for your sanction today in our call and concludes our results conference call also to remind you that our investor day, which is going to be held on November 27.
It would be a high rate event. So we will see things inflation. Okay. Thank you very much have a great week.
Thank you and this concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.
Yeah.
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