Q4 2023 Central Puerto SA Earnings Call
Good morning, ladies and gentlemen, and welcome to Central Park, those fourth quarter 2023 earnings webcast.
Operator: Good morning, ladies and gentlemen, and welcome to Central Puerto's fourth quarter 2023 earnings. All participants will be in a listen-only mode. And should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded.
All participants will be in a listen only mode.
Should you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.
After todays presentation, there will be an opportunity to ask questions.
Please note this event is being recorded.
If you do not have a copy of the press release, please refer to the Investor Relations support section on the company's corporate website at Www Dot Central Plateau dotcom.
Unknown Executive: If you do not have a copy of the press release, please refer to the Investor Relations Support section on the company's corporate website at www.centralpuerto.com. In addition, a replay of today's call may be accessed by accessing the webcast link in the same section of Central Puerto's website. Before we proceed, please be aware that all financial figures were prepared in accordance with IFR and were converted from Argentine pesos to U.S. dollars for comparison purposes only.
In addition, a replay of today's call maybe assess accessed by accessing.
Webcast link at the same section of Central Park those website.
Before we proceed.
Please be aware.
All financial figures were prepared in accordance with <unk> for us.
Were converted from Argentine pesos to U S dollars for comparison purposes only.
Unknown Executive: The exchange rate used to convert Argentine pesos to U.S. dollars was the reference exchange rate reported by the Central Bank for U.S. dollars at the end of each period. The information presented in U.S. dollars is for the convenience of the reader only, and you should not consider these translations to be representations that the Argentine peso amount actually represents these U.S. dollars amounts or could be converted into U.S. dollars at the rate indicated. Finally, it is worth noting that the financial statements for the fourth quarter ended December 31st, 2023, include the effects of the inflation adjustment. Also, please take into consideration that certain statements made by the company during this conference call and in answer to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectation contemplated by Industry Remarks. Thus, we refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. Central Puerto Rico assumes no obligation to update forward-looking statements, except as required under applicable securities law.
Exchange rate used to convert Argentine pesos to U S. Dollars was the reference exchange rates reported by the Central Bank for U S dollars.
For the end of each period.
The information presented in U S dollars is for the convenience of the reader only and you should not consider these translations to be representation, but the Argentine peso amounts actually represents these U S dollars a month.
It could be converted into U S dollars at the race indicated.
Finally, it is worth noting that the financial statements for the fourth quarter ended December 31st 2023 include the effects of the inflation adjustment.
Also please take into consideration that certain statements made by the company. During this conference call and answer to your questions May include forward looking statements.
Which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by industry remarks. Thus we refer you to the forward looking statements section of our earnings release and recent filings with the SEC.
Central correct all assumes no obligation to update forward looking statements, except as required under applicable securities laws.
Followed a discussion better please download the webcast presentation available on the company's website.
Unknown Executive: To follow the discussion better, please download the webcast presentation available on the company's website. Please be aware that some of the numbers mentioned during the call may be round to simplify the discussion. On the call today from Central Puerto is Fernando Bonnet, Chief Executive Officer; Enrique Taranio, Chief Financial Officer; and Pablo Calderon, Corporate Finance and Investor Relations Manager. And now, I will turn the call over to Pablo Calderon. Pablo, you may begin.
Please be aware that some of the numbers mentioned during the call maybe round it to simplify the discussion.
On the call today from Central Puerto is Fernando Bonnet, Chief Executive Officer, Enrique Toronto, Chief Financial Officer, and Pablo Calderon, Corporate Finance and Investor Relations manager.
Now I will turn the call over to Pablo Calderon Pablo you may begin.
Thank you very much and good morning to you. All we are showing you today with our management team from one side of his cantina to comment on our results for the full year 2023, and the fourth quarter thereafter.
Pablo Calderon: Thank you very much and good morning to you all. We are joining you today with our management team from Buenos Aires, Argentina, to comment on our results for the full year 2023 and the fourth quarter of 2023. Taking a moment to review today's agenda, I would like to begin the presentation by briefly addressing the main figures for the year 2023 and the fourth quarter of 2023, followed by a quick update on the regulatory framework and an overview of the Argentine healthcare system, and then move on to analyze the evolution of our operational and financial results. Finally, at the end of the presentation, we will be happy to address any questions that you may have.
Taking a moment of your attention to review today's agenda I would like to begin the presentation by addressing shortly the main figures of the year 2023 and.
For quarter three follow by a quick update on the regulatory framework and another view of the Argentine energy sector, and then move on to analyze the evolution of our operational and financial results. Finally at the end of the presentation, we wouldn't be happy to address any questions that you may have.
Before going into a more accepted analysis of the evolution of our financial that nobody can our results. Let me briefly review the main figures of the central part of the group that you have done it in the three and the sort of quite a bit of stunted in D. C.
Pablo Calderon: Before going into a more exhaustive analysis of the evolution of our financial and operational results, let me briefly review the main figures of the Central Puerto Group for the year 2023 and the four quarters of 2021. As you may know, with the acquisition of Central Costanera, performed at the beginning of the year, and the one in Sur Solar Farm on October 2063, the group's installed capacity has jumped by 49% year-over-year to 7.2 gigawatts of Intel capacity. Furthermore, energy generation amounted to almost 21 TWh in 2033 and 5.2 TWh in the quarter, increasing by 19% and 10%, respectively, with regard to the same period last year. Thus, during 2023, the Central Puerto Group became the largest private energy generation company in Argentina, both in terms of its capacity and energy generation, completing a diversified portfolio of assets across all power generation types. With regard to our financial results, it should be noted that the sharp devaluation that occurred at the end of 2023 caused the depreciation of the local currency to reach much higher than the inflation of the period. Given Central Puerto Rico's accounting methodology, all items in pesos must be adjusted for inflation to the year-end currency.
As you May know with the completion of some cycles tornado before at the beginning of the year, they're wanting to sort of fun on a door into the C suite. The group seating capacity has jumped by 49% year over year too.
Seven two gigawatts of installed capacity.
Furthermore, energy generation amounted to almost 21 Terawatt hour C. Five.
Boy that was great.
In the quarter, increasing by 19% and 10% respectively with regards to the same period of last year.
Thus during 2023 Central portal group has begun the largest private energy generation company in Argentina, both in terms of capacity and energy generation completing a diversified portfolio of assets across all of our generation did not.
With regards to our financial results. It should be noted that the sharp devaluation that occurred at the end of study at the three gas the depreciation of the local currency to each month.
Inflation of opinions.
Given central Florida, those accounting methodology, all items in pesos must be adjusted for inflation to the yearend currency, while the company reports its results in donuts by conducting them.
Pablo Calderon: While the company reports, it presents results in dollars by converting them at the end of the period at the official exchange rate. Thus, causing a non-cash impact that affects the comparability of our financial results and is more significant in the analysis of the 4Q23 figures. In that connection, revenue for the year amounted to $537 million, decreasing 5% compared to 2022, and to $98 million in the quarter, contracting 19% compared to the same period of the previous year, while adjusted EBITDA reached $277 million, showing a 35% decrease versus 2022, and $45 million in the quarter, being 34% lower than the last quarter of 2022. Net income was positive at $193 million and $15 Finally, after a satisfactory year in terms of our management of our debt profile and dividend distribution, net debt as of December 31 amounted to $244 million, demonstrating a net debt leverage ratio of only 1%. Now, moving to the most recent regulatory update, it is worth mentioning the following resolutions.
And b the other feature chicken, great. That's definitely a noncash impact that affects the comparability of our financial results and be more significant in the analysis of that for Q3 figures.
In that connection revenue for the year amounted to $537 million decreasing 5% compared to attention to detail.
$298 million seem like why do that.
Contracting 19% compared to the same periods of the previous year, while adjusted EBITDA reached $277 million, showing a 35% decrease versus president and.
And $45 million in the world being 34% lower due to less why did they left I didn't get it.
Net income was positive in how did a $93 million and 155, four and $8 million into three and four quarters of 2008, respectively affected by one time effects that impacted positively in the last quite a bit of a year, we will see in detail in the later in the presentation.
Finally, I status is different every year in terms of our management of our debt profile and dividend distribution net debt as of December 31 amounted to $244 million show guessing a net debt leverage ratio of only one times.
Moving through the most recent regulatory updates it is worth mentioning the following resolutions on September <unk> of 283. The second it did add a furnace easier resolution number 750 of 2023, which have they give them innovation prices for energy generation onboard a capacity for the units, let's call them either in a power card.
Pablo Calderon: On September 6th, 2023, the Secretariat of Energy issued Resolution Number 750 of 2023, which updated remuneration prices for energy generation and power capacity for units not committed in a Power Purchase Agreement, or PPA, increasing remuneration values by 23% in September 2023. Furthermore, on November 2nd, the Secretariat of Energy issued Resolution 859, which updated remuneration prices for the same units by 28% Finally, and more recently, in February 2024, the Secretariat of Energy issued Resolution 9, updating remuneration by 74% since February 2024. It should be noted that combined cycles that operate in the spot market and are not committed in a PPA are remunerated with a special regime introduced by means of Resolution 59-2023, issued in February of that year, and that this scheme, the power capacity of these generation units, is partially paid Finally, with regard to the third Conf bidding process, although the company was awarded projects for 516 megawatts of power capacity at its unit, Central Costanera, as of today, the contract has not been signed, and the process is under review by the new administration.
This agreement or be a increase in the amortization by you baked into your 3% September two different D C farther tomorrow.
On November 2nd basically that had the finish of issue resolution 869, which had they get elimination prices for the same units by 28%. Since November did you see finally and more recently in February 'twenty 'twenty four they figure that is freshly issued resolution number nine update implementation by 74%.
Do you have before.
It should be noted.
That combined Vegas that operated in the spot market are now committed in the P. P. Eight out of them when they need it with the special regime introduced by means of resolution of 59 2023 issued in February of that year.
Under this scheme the borrowing capacity on the generation units is partially baked in U S dollars, while the energy generation is fully dollarized.
Finally with regard the golf, beating process, although the company was awarded with brush. It for 516 megawatts of power capacity at its unit hundreds of Canada. That's after the contract has not been signed and the project is under review or the New administration.
Now, let's use the next two a slight evolution of the origin energy market during this quarter.
Pablo Calderon: Now, let's use the next two slides to analyze the evolution of the Argentine energy market during this quarter. As we can see in slide 6, the country's instantaneous generation capacity increased by 2% or 847 megawatts, reaching 43.8 gigawatts compared to 42.9 gigawatts in the last quarter of 2022. This increase in capacity was mainly due to the incorporation of 396 new megawatts of wind technology and 280 new megawatts of solar photovoltaic projects. Biogas and biomass slightly increased during the quarter, adding 6 megawatts and 3 megawatts respectively. Finally, thermal capacity sources recorded a net increase of 162 megawatts as a combination of an addition of 735 megawatts of new combined cycles and the decommissioning of 537 megawatts and 36 megawatts in gas turbines and diesel engines, respectively.
As we can see in slide six the countries into generation capacity increased by 2% or 847 megawatts.
43, eight gigawatts compared to $42 90, <unk> in the last quite a bit of strength to do.
This increase in capacity was mainly due to the incorporation of 396, new megawatts of wind technology.
And 280, new megawatts solar photovoltaic brushes.
Gas and biomass slightly increased during the quarter, adding six megawatts and dream megawatts, respectively.
Lately.
Capacity sources and recorded a net increase of 162 megawatts as a combination of an additional 700.
75, and then I'll, let with nickel might take us under the commissioning of 577 megawatts 30 megawatts in gas turbines and diesel engines respectively.
Pablo Calderon: Regarding energy generation in the last quarter of the year, this dropped 4% to 34.8 TWh compared to 35.1 TWh in the last quarter of 2022, in line with the 4% decrease in energy demand. The lower demand during the period was mainly met with more generation of nuclear, hydro, and renewable sources, resulting in a lower thermal requirement. The increase in nuclear power generation was mainly explained by the Artusha DOS power plant, which was unavailable during the last quarter of 2022 due to the maintenance program that lasts until mid-2023. In addition, the Mbalse power plant also supplied significantly more generation during the last quarter of 2023 vis-à-vis the last quarter of 2032. The increase in hydro generation is a phenomenon that started by mid-2023 due to higher rainfall in comparison to the year 2022, a year that was particularly affected by a severe drop. As a result, littoral and Comau hydro plants have been generating significantly more in 2023 vis-à-vis 2022. And speaking specifically of the last quarter of this year, the Uruguay River recorded an increase of 484% in its flow rate, while the Neuquén and Limán Rivers increased their flow rates by 49% and 37% year-over-year, respectively.
Regarding energy generation in the last quarter during the year. This dropped 4% to 34 eight that I watch hour compared to 35.1.
In the last quarter, there was plenty of them to do.
In line with the 4% decrease in energy demand.
They know what they might not the BDO wasn't really golar with more generation of nuclear hydro and renewable sources, resulting in the lower side of my requirement.
The increase in nuclear power generation with maintenance planed by that I'd push out those power plant, which was 11 during the last quarter of 2000, and then did you do they maintain as Berlin last until mid 2023.
In addition, the bulk power plant also place significant more generation during the last quarter. They absolutely can be freed vis vis the last quarter. It was 22.
The increase in hydro generation is a phenomenon that started by mid 2023 due to higher rainfall in comparison to the year two they do yeah that was particularly affected by USA truck.
We saw a literal and come out with hydro plants had been generating significantly more interested into three vis vis 30 32.
Speaking specifically of the last quarter of the year cause you to wait we recorded an increase of 484% in its low rate well, then again element grievers gross inflows rates by 14, 8% and 77% year over year, respectively.
Pablo Calderon: Focusing now on demand, as you can see, electricity consumption decreased 4% during the last quarter of the year compared to the last quarter of 2022. This was essentially driven by a 5% decline in residential consumption on the back of higher temperatures during the period, especially in December, when consumption fell by 10% with respect to 2022. With regard to industrial demand, this contracted by 5% as a consequence of lower economic activity in the period. However, it is worth noting that local demand was covered by local energy generation, substantially decreasing imports by 97%.
And now on demand as you can see electricity consumption decreased 4% during the last quarter of the year.
Compared to the last quarter, but it still didn't do it was essentially driven by a 5% decline English eventual consumption on the back of a Denver just during the period, especially in December when consumption fell by 10% with respect it wanted to do with regards to industrial among these contracted by 5% as a consequence of a lower economic activity.
It is worth noting that the local demand with Cobra with local energy generation substantially decreasing imports by 97%.
Pablo Calderon: I'm now going to our key performance indicators for the quarter. On slide 8, we can see that the energy generated by Central Puerto rose by 10% to 5.2 TWh compared to 4.7 TWh in Q4-22. It should be noted that this increase includes the incorporation of 856 gigawatt-hour generated by Centra Costanera, which was acquired in February 2023, as well as the 73 gigawatt-hour produced by Guaynizul's Segon A solar farm acquired last October, which were not part of the group as of the fourth quarter of 2022. In the fourth quarter of 2023, the increasing hydro energy generation from Piedra del Reaching 1.7 TWh and standing 21% above the last quarter of 2022 levels.
In outdoor to keep her formats indicators for the quarter on slide eight we can see that the energy generated by kind of what are the roles like 10% to 512 terawatt hours compared to $4 seven terawatt hours in Q4 22.
It should be noted that this increase includes the incorporation of our 856 Gigawatts hour generated by synthetic OS data, which was acquired in February 2023 as well.
The three Gigawatts hour produced by Whitening segment, eight solar farm acquire lessen pillar, which were not part of the good out of the fourth quarter I was trying to do.
In the fourth quarter of.
Oh.
Three increasing hydro energy generation from Bofa.
But once again the wadley.
Bridging.
One seven.
It was our understanding and 21% above the last quarter that ended in the two levels.
Pablo Calderon: As a direct result, other increases through the flows of the Limay and Coyoncura rivers, 37% and 13%, respectively, compared to the fourth quarter of 2022, when river flows were still affected by the drought that impacted the country in 2022. Finally, renewable energy generation increased by 12% during 4Q23 vis-à-vis 4Q22. Being fully explained by the 73 gigawatt hour generated by the Guanizul-7A solar plant, we were partially upset by a 5% contraction in wind generation as a result of lower wind resources during the period. As previously stated, higher availability of hydro and nuclear generation, and as well as the lower energy demand during the period, prompted lower thermal dispatch. However, as you can see, Central Puerto's thermal availability remains high when compared to the market average, reflecting our high quality standards and operation policies, as well as equipment efficiency.
We saw all the increasing through the flows of the my uncle uncle that weavers, 77% and 13% respectively compared to the fourth quarter that was traded at a door.
When we were close whereas still affected by the drop that impacted the country into a little detail finally renewable energy generation increased by 12 per cent gainful Q3 vis vis for children, who do.
Being fully explained by the 73 Gigawatts hour generated by that when he should segment a solar plant we wished partially upset by a 5% construction in wind generation as a result of lower wind resource during the period.
That's been really stated high availability of hydro and nuclear generation as well.
Energy demand during the period prompted lower thermal dispatch.
Whether as you can see in the board of the thermal availability remains high when compared to multi die, reflecting our high quality standards elaboration policies as well as equipment efficiency.
No. So many in our revenue analysis as you can see on slide nine.
Pablo Calderon: Now, zooming in on our revenue analysis, as you can see on slide 9, this amounted to $98 million in the quarter as compared to $121 million in the same period 22. It should be noted that the gap between inflation and devaluation in the period negatively affected the four Q23 figures at a non-cash level due to the company's accounting methodology and the conversion into dollars using the end-of-period official exchange rate, making the comparison with the previous year more complex to analyze. Thus, having in mind this effect.
This amounted to $98 million in the quarter as compared to $121 million in the St. Pete at 32.
You should be noted that the gap between inflation and devaluation in the period negatively affected the four kids into three figures I don't know what cash level due to the company's accounting methodology and the conversion into using debt.
The official exchange rate, making the comparison with the previous year more complex than a life.
That having in mind this effect.
Pablo Calderon: The variation in revenues results from a combination of a $2 million self-contribution for the forestry companies that were acquired in December 2022 and in May 2023. 11% or $11.6 million decrease in sales under contract, which totaled $42.7 million in the quarter compared to $54.3 million in the last quarter of 2022, mainly as explained by the previously mentioned effect between inflation and currency devaluation, and to a lesser extent, to lower generation from our wind farms on the back of a lower window. All this was partially offset by the consolidation of the Juan Insul-Cegonet solar farm, which contributed revenues of $2.7 million. Then a 19% or $11.3 million contraction in spot legacy sales, which amounted to $48.1 million in the last quarter of 2023, compared to $59.4 million a year ago, driven by a combination of the consolidation of Central Costa Rica figures, which contributed sales of 13.4 million dollars, and higher energy dispatch from the Piedra del Aguila hydro plant. All these are fully upset by the fact of inflation and currency devaluation that was mentioned before, and a lower remuneration in dollars, coupled with lower generation from thermal units on the back of the lower demand of the period and the high availability of hydro and renewable resources.
Nobody's unit revenues resulted from a combination of <unk> two.
$2 million cell contribution for the forestry companies that were acquired in December 'twenty, two and in May 2023.
11% or 11 $6 million decrease in sales under contract, which totaled $42 $7 million in the quarter compared to $54 $3 million in the last quarter. They all started to do mainly is explained by the previously mentioned effect between inflation and currency devaluation as to a lesser extent.
Two a lower generation from our wind farms on the back of lower wind resource.
These being partially upset by the consolidation of the one you sold <unk> solar farm, which contributed with revenues of $2.7 million.
Yeah.
Then in 19% or 11 $3 million construction in a spot legacy safe, which amounted to 40 April $1 million in the last quarter, but Australia, 23, compared to $59 $4 million a year ago.
Driven by a combination of the consolidation of some drug will send you the figures, which contributed with self after tempo of $4 million.
And it should be expected from bofa likely a hydro plant.
All of these.
Being 40 upset by decided between inflation and currency devaluation that was mentioned before.
And a lower remuneration in the gut.
With lowest generation Transelement units on the back of the lower the amount of the bill and the hydro availability of Hydro I run you while it resources.
Finally at 15% or zero point $7 million decrease in our steam says, which totaled $3 million in the quarter compared to $45 million in the last quarter to 22, despite a 25% increase in volumes being fully explained by the non cash had said between inflation guard.
Pablo Calderon: Finally, a 15% or $0.7 million decrease in esteem sales, which totaled $3.8 million in the quarter, compared to $4.5 million in the last quarter, 22, despite a 25% increase in volumes, being fully explained by the non-cash effect between inflation and currency devaluation. Moving now to slide 10, for a better understanding of the evolution of our adjusted EBITDA, during the fourth quarter of 2023, the growth of adjusted EBITDA amounted to $45.2 million, including results of Traco's TANERA and the Forex Recon. Thus, on a consolidated basis, the adjusted EBITDA of the quarter recorded a contraction of 34% compared to $68.1 million in the fourth quarter of 2022. When analyzing the adjusted EBITDA variations, we can observe that this is mainly displayed by the first, the previously mentioned drop in revenues and the 13% of $5.8 million reduction in cost of sale, explained basically by the previous mentioned effect between inflation and currency devaluation, the reclassification of consumption of certain materials and spare parts allocated to the maintenance works carried out on the cogeneration unit of Luján de Cuyo.
Stimulation.
When we now do is laid down for the better understanding of the evolution of our adjusted EBITDA during the fourth quarter 'twenty three the group adjusted EBITDA amounted to $45 $2 million, including the result of the telcos to NATO and the Florida show companies.
Thus on a consolidated basis adjusted EBITDA of the quarter recorded a construction.
74% compared to the $68 million in the fourth quarter of 'twenty do when analyzing their adjusted EBITDA ratios, we kind of have Sir this is maintenance play by the first really mentioned drop in revenues.
10% of fiber name in the moderate reduction in cost of sale escalate basically by the previous mentioned effect between inflation and currency devaluation. The regular suffocation of consumption of sort of the mature incentive spare parts allocated to them anything that's worth calling out.
The cogeneration unit.
Sure.
Pablo Calderon: Both were partially offset by high employee compensation, energy purchases, and material consumption and spare parts due to the acquisition. Then a $4.8 million increase in other operating results, excluding interest and effects differences from the funny program receivables and the variation in fair value of biological assets from our forestry segment. This was mainly due to legal and other acquisition related expenses. Finally, a 9% or $1.1 million increase in SG&A, excluding depreciations and amortizations due to an increase in compensation to employees related to acquisitions and taxes on bank account transactions. Moving on to the next slide, consolidating the income for the quarter amounted to, $155.8 million, increasing by almost 10 times on a year-over-year basis, despite of the lower adjusted EBITDA of the period, the net income was positively impacted by a $144 million increase related to non-cash effects, being the most notorious, the recovery of impairment of property, planning, equipment and intangible assets of $54.4 million, as opposed to the negative charge of $79.2 million recorded in the last quarter, 2022, and the $5 million increase in the for value of our biological assets, then higher positive foreign exchange differences and interest related to the fund it received for 72 million dollars and a 21 million dollar increase due to the gain recorded as a result of the valuation at fair value of the companies that were acquired during the period for almost 90 million dollars in comparison with the also positive gain that was recorded in the fourth quarter of 22 of around 69 million dollars. This was all being partially offset by a $69.8 million increase in net negative financial results, mainly driven by higher negative foreign exchange differences on financial liabilities, partially offset by better results from holding financial assets at fair value and better results on assets. Now going to slide 12, we can see the evolution of our CAF flow during the year 2023.
Both were partially offset by higher employee compensation energy bars, jcs and material consumption and spare parts due to acquisitions.
Then at $4 8 million an increase you know there are very different south excluding interest and FX differences from the 40 brought on receivables and the variation in fair value of biological assets or in our Forestry segment. This was mainly due to legal I know that acquisition related expenses.
Finally, an 8% or 1.1 million dollar increase in SG&A, excluding depreciations and Amortizations, you do I'm getting compensation to increase related to acquisitions.
Texas umbrella down transactions.
Moving onto the next slide consolidated net income for the quarter amounted to.
$155 $8 million, increasing by almost 10 times on a year over year basis. Despite of the lowered adjusted EBITDA for the period, then I think on was positively impacted by.
$44 million increase related to noncash effects being the most a majority of the recovery of impairment of property plant and equipment and intangible assets of $54 $4 million as opposed to the negative charge of $79 $2 million recorded in the last quarter to 22.
And the $5 million increase in the fair value of all of our biological assets.
Then higher positive foreign exchange differences and interest related to the fault seal is for $72 million and $21 million increase due to the gain recorded as a result of the valuation at fair value of the companies that were acquired during the period for the almost $90 million in comparison with the also positive gain that Westwood.
In the fourth quarter, there are 22 of around $69 million.
This was all being partially offset by a $69 million increase in net negative financial result, mainly driven by higher negative foreign exchange differences on financial liabilities, partially offset by better results from holding financial assets at fair value and better result, so that's your sheets.
Now going to slide 12.
Can see the evolution of our gas flow during the year 2023.
This way operating cash flow was positive in $232 million due to the adjusted EBITDA generated in the period at 52 $5 billion in collection of interest from clients, including those related to funding program.
Pablo Calderon: This way, operating cash flow was positive $232 million due to the adjusted debit generated in the period, a $52.5 billion collection of interest from clients, including those related to FONI programs, and almost $10 million in positive working capital variations, partially offset by a $65 million payment of income tax. Net cash flow in financial activities was negative for $135 billion, as a result of 156 million dollars in debt service amortization primarily related to the pre-cancellation of the Brigadier Lopez syndicated loan and the principal maturities of Manker and Olivos dollar-linked bonds and some overdraft cancellations. 41 million dollars paid in interest and other financing costs and 29 million dollars paid in dividends during the quarter. These were partially offset by 103 million dollars in financing obtained in the period mainly from the insurance of the senior notes, series A for 47.2 million dollars, and series B for 15 million dollars.
Almost $10 million in positive working capital variations, partially upset by a $65 million payment often conducts ned.
Net cash flow in financing activities was negative $135 million.
As a result of 100 and.
$56 million in debt service of amortization, primarily related to the pre cancellation of it because they love us alone and to bring people on light duty diesel market I know the U S dollar linked bonds and some overdraft cancellations $41 million paid in interest and other financing costs.
The $29 million paid in dividends during the quarter being partially upset by $103 million in financings uptake in the period, mainly from the issuance of the senior notes series, a $447 $2 million as he was b for $15 million.
Finally in making activities amounted to a holiday a name in the dollar Sterling III.
Pablo Calderon: Finally, investing activities amounted to $109 million during 2023, mainly explained by a $71 million spend on the acquisition of companies performed during the period, $26.5 million in net investment in short-term financial assets, and $18 million in investment in PP&E. Consequently, our cash position as of December 31st amounted to $16.7 million, which, if current investment in financial assets are included, our total current liquidity amounts to $127 On this slide, I would like to bring to you our death maturity scale.
Mainly explained by a $71 million spent for the acquisition of companies performed during the period $26 5 million in net investment in short term financial assets and $18 million in investment in PP&E.
Sequentially, our cash position as of December 31st.
Amounted to $16 7 million, which is currently best many financial assets are included our current liquidity the amounts to $127 million.
To conclude the presentation in this slide I would like to bring to you I would've thought that might do to the scale, but in particular I would like to highlight the successful liability management got it out during October that considerably elevated our debt maturities for the year 2024.
In that connection.
<unk> the company issued its first international bond for a total amount of $50 million with a two year data, allowing us to partially repay only do this later $49 million was a stunning $55 million on the syndicated loan side with TD bank she'd be Morgan Stanley.
Which after that was fully paid later on early January this year. This not only permitted us to refinance short term debt maturities extending its life and reducing financial cost, but also help us to lift dividend payment restrictions that were imposed a skull, whereas obviously indicate along in line with our strategy we made.
For David the distributions between November 2023, and January 'twenty 'twenty four for a total of $220 million.
Ali the 'twenty 'twenty four looks clear of major debt maturities. This I'm not going to only $59 million.
My name is shown for the size of the company as you can see the company has got to really work on this relief and to improve its balance sheet that despite even the distribution our net debt leverage ratio remains at a low of one times net debt to EBITDA with this I would like to conclude the presentation and now we.
Got you to ask any questions or team. Thank you for your attention.
Thank you.
I will begin our question and answer session.
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At this time, we will pause momentarily to assemble our roster.
Thank you. Our first question is coming from Martin our insert with balanced capital Your line is life.
Hi, Thank you for taking my worst shows I got on late so I apologize in advance as high if I ask something that you already explained.
I have four questions and I would like to run them women when they want it that's great.
First we ought to be and we gotta lupus or how do you close that deal with the constructor to start the brushy.
Hi, Hello, Thank you for your question.
Yes.
The construction of the closing of the combined cycle a little bit.
You mean February year, so it's big.
Finish off there.
In closing there.
Little things for you.
Or.
After doing the empty miles so it's very convenient.
Right.
And the M B a.
Working you can progress. So we are we are ready should all be nishu, we already said the initial payment and saying they would use it.
So I'm totally particularly instructive.
And I think we went out and reached the eat in time, albeit.
On the scale that we have been discussing with them because they get a lot of.
Oh.
A discussion with him more than 60 month warranty our bonds with them.
A nice kind of as you know, we got a little busy so in Oakland site right now, but all the name was changed by in hours.
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Sheep or six years ago, So we perform or a huge work with 5 million of bonds to understand and reach completion of it we've been reviewing all the Jimmy Choo man. So we we said a huge working up lines to be ready and minimize decitabine.
When we close.
That's perfect.
Much Capex these specs.
Uh huh.
It's around one times of around $50 million.
You may begin.
Right and then my second worth or we heard that governments with frame rates, our gross who are coming out in two days.
Have you been able to talk to companies haven't gone in payments do you expect it soon Ya man I know so.
Could you comment on the possible indexation of Philadelphia in relation to inflation.
So as to not depend on the price hikes somebody there with solutions.
Well as you mentioned in there.
The names of companies started coming Newsweek went up in the past.
Especially after the devaluation.
Total amount of debt.
Nicole do you mean for the.
Sure.
And we'll try and the distribution.
Distribution companies coming and he lives alone because you're going to see them also.
Greece. So we are seeing right now we felt like it.
And pay around one.
Five transactions.
You can see the new one coming tomorrow will be found.
Tied to transactional based.
For.
Or if he can set that we have been chugging, we'd go over I mean, we don't have a clear view, but we believe after.
The challenging news flow rates eventually customers industry and commercial.
So in agent plays from February So big and you when you need therapy like gene Baby fusion companies in April so.
The golar.
Believes that we'd be.
Regulated stations.
Remind me was just like I mean, you gain and they were just down normalize the opinions. The thing is what's happening on much D. E. These months I can use the the one that we see some recovery.
Oh Hello.
How many will come from the government.
Okay.
We dealt with them we.
All the generators as you know.
We generate jobs are worry about that tells.
Probably gonna move Oh baby.
Right.
All the same.
But we need to make in terms of.
Topics in terms of core salaries and operationally.
And possibly there.
The government is working and that they believe that the distribution companies.
Yeah.
Hi.
They.
That'd be that'd be paying you in the past.
But we are not.
Probably maybe any.
Or anything like that so we cannot give you any detail at all.
Did you Wanna be normalized.
So she loves that you expect.
Well, maybe you rich, even though the payments from the fusion companies with in Utah.
And then.
Each of our plants.
Neither subsidies because maybe they go to name a few.
Subsidies are subsidizing them.
<unk> indicated before for some segments of the consumption.
But the good news, we are wasting monkeys, what's gonna accepting a much we believe that we need.
Need to additional money in March.
On Dania.
He's been with 60 days of.
Hum.
Is that.
That's fine.
In fact, we are we are using our loans our credit lines.
In order to reach that buffer above that.
Got myself.
We are using that word.
Short tail lines with the bonds.
I've heard that.
There'll be days.
Very clear so using the system cannot wait until April to normalized painlessly, we need something now.
Yes, we didn't in fact, we need something now is coming something coming yes.
Excuse me Big overhang.
A portion of the November its own such Sean.
We asked for new money coming in next weeks, yes.
Okay. Thank you.
Next my question. Then is are they go out and Oh no plan on really it'll have claim probably for rights I'm not sure our resources.
Don't know if you have any comments on the current situation looks good dialogue along.
So that's my more floor.
Yes.
We we are working with the secretary.
She I mean, I'm, sorry, because they establish Ah ah finishes the or a deadline for the sort of insurance or the finish of the conversation.
Transfer of the assay to be figured if energy and into an answer there.
And if we need real but as we have been talking with them is not.
Or is it not possible continuing to show the world that we need to do in order to trust us and discuss all the things that we can discuss it again.
Yes. It is.
And it broke their way so they are thinking to extend into another expansion.
But he's not already.
Staff in each bucket.
Yes.
I don't know how many month additional months.
Maybe give us but I.
I need to be coming and it is not the work is not finished so we expect another expansion.
It's because I don't know.
An additional month.
Okay. So so the you know the conversations it seems like Oh, it's taken the fishing, but the mix at the moment, it's not clear to me.
Yeah.
Yeah.
The idea is that you'll be all of them are maintaining the same ideas too.
Past the.
Or to put the all the yeah.
The age of the compensation scheme, you may know something to make a new a new concession process.
After the.
Normalized or at least a little bit.
More normalized sector, but these transformation that we've been talking at least you.
Rules are established.
Is there anything you're.
Seeing that we.
Move forward, new conversations, but in the transition they gave me.
Although we keep the conversation on sausage.
Any medicine.
Okay.
Very good. Thank you and then my final question then.
What are you seeing as go into coupled with the prospects of the chunk of auction.
Any color on whether it goes to keep yourself going to a good sign.
Yeah.
You have to kind of give you some color is not already D. R.
But if you think about the delays and you can get it to be a sign.
The government is analyzing.
Indeed game if they.
You need all the bees and capacity or not or if they don't come.
We need all the capacity.
How big can establish a new ball series or a new system to promote that capacity.
Installed so.
If you asked me actually in these proceeds.
I didn't see it.
The government awarded and all that capacity.
They in fact, they they want to.
LOE in the scheme of private Ppas tried.
Tried to penalize the ppas are between distribution companies, we'd use errors and generators to promote that.
And so I.
You won't see it.
This hole.
Capacity getting.
He had been signed.
Well get to move in the way that the former although maintenance stoppage.
But in the end of the day.
In some areas maybe capacities Navy so.
You have the government already going on that aren't going to maybe calibrate.
Got it.
Promote a nation of beach capacity in the areas that they're needed but.
We do these things scheme.
But it is something that is not something.
But it would be lower.
We've been in.
Not.
Yes.
Okay.
Yeah, So it's like probably a bit of comfort that the Oxford in Wisconsin to counsel them, probably a new auction with Mitsui from companies are but that's not something that they're on a Saturday.
Okay.
Do you think.
Thank you ladies.
Sorry, thank you.
Remember, ladies and gentlemen, if you have any further questions or comments. Please press the star key followed by one.
Okay. As we have no further questions in queue. At this time I would like to turn the conference back over to Mr. Fernando <unk> for any closing remarks.
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Okay.
Thank you ladies and gentlemen, this does conclude today's call you may disconnect at this time and have a wonderful day and we thank you for your participation.