Q1 2024 Enel Chile SA Earnings Call
Operator: Good morning, ladies and gentlemen, and welcome to Enel Chile's first quarter 2024 results conference call. My name is Victor, and I will be your operator for today.
Good morning, ladies and gentlemen, and welcome to <unk> first quarter of 'twenty 'twenty four results conference call. My name is Victor and I will be your operator for today.
Operator: 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 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 first quarter 2024 results.
Operator: This conference call, we may make statements that constitute forward looking statements within the meanings 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 from those.
Operator: As anticipated in the forward looking statements as a result of various factors. These factors are described in N O Chinas press release reporting its first quarter 'twenty 'twenty four results.
Operator: The presentation accompanying this conference call and ml Chillers annual report on form 20-F included under risk factors.
Operator: You may access our first quarter 2024 results press and press.
Operator: Press release and presentation on our website www dot.
Operator: Dot CL and our 20-F on the Sec's web site Www Dot FCC Dot Gov.
Operator: Readers are cautioned to not place undue reliance on those forward looking statements, which speak only as of their dates and I'll cheat and O. Chile undertakes no obligation to update these forward looking statements or to disclose any development as a REIT.
Operator: All of these forward looking statements become <unk>.
Operator: Inaccurate, except as required by law.
Operator: The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F include the following risk factors. You may access our first quarter 2024 results, press release, and presentation on our website, www.no.cl, and our 20-F on the SEC's website, www.sec.gov. Readers are cautioned to not place undue reliance on those forward-looking statements, which speak only as of their dates. Enel Chile undertakes no obligation to update these forward-looking statements or to disclose any development as a result of these forward-looking statements becoming inaccurate, except as required by law. I would now like to turn the presentation over to Mrs. Isabela Klemes, Head of Investor Relations at Enel Chile. Please proceed.
Operator: I would now like to turn the presentation over to Mrs. Isabela Clementz head of Investor Relations of NR, Chile. Please proceed.
Isabela Klemes: Good morning, and welcome to the Enel Chile 2024 first quarter results presentation. Thank you all for joining us today. My name is Isabela Klemes.
Operator: Yeah.
Isabela Klemes: Yeah, Good morning, and welcome to Enel, Chile, 2024 first quarter results presentation. Thank you all for joining US today My name is <unk>.
Isabela Klemes: I'm the head of the investor relations team. Joining me this morning is our CEO and CFO, Giuseppe Turchiarelli. As announced on April 29, our shareholders meeting designated a new board of directors, and I would like to thank the formal members for their contributions to our company over the years and our best wishes for the new members that will be part of our new board. In the sector governance section of our Annex, you can find the new names and the ones designated to be the new Chairman of our Board and the Chairman of the Directors Committee.
Isabela Klemes: Investor Relations joining me. This morning, now with T O N E F O deals that take with getting.
Isabela Klemes: The announcement on April 29, our shareholders' meeting is the nature of the New Board of Directors and then would you like to think that form on Lindbergh per day contribution to our company over an.
Isabela Klemes: In our best issued scored in your main break that will be black before.
Isabela Klemes: You bought it.
Isabela Klemes: The Governor of Florida, you can find the new name and they won because he made it should be the new.
Isabela Klemes: Also on the same date, the Board of Directors issued a material fact nominating Giuseppe Turchiarelli as our new CEO. Up to the designation of a new CFO, he will also hold in the interim the position of our CEO. Our presentation and related financial information are available on our website www.enel.cl in the investor section and in our app Investors. In addition, a replay of the call will soon be available. At the end of the presentation, there will be an opportunity to ask questions via phone or webcast chat.
Isabela Klemes: Chairman of our board and the Chairman of the Directors Committee also understand engage the board of directors issue much youre fraction dominated geographical Kelly.
Isabela Klemes: Our new C E O.
Isabela Klemes: Is it your nation off our new CFO exactly we want to hold in there in theory.
Isabela Klemes: <unk>.
Isabela Klemes: For example.
Isabela Klemes: Our presentation and related financial information is available on our website.
Isabela Klemes: Now Doug Yeah.
Isabela Klemes: Please section.
Isabela Klemes: Investors in <unk>.
Isabela Klemes: A replay of the call it shouldn't be available at the end of the presentation. There will be an opportunity to ask questions via phone or webcast chat frugally guys quick question media participants connected only in meat and enrolled in the following slide gives that there won't bring the presentation.
Isabela Klemes: Through the link, ask a question. Media participants are connected only in missed email mode. In the following slides, Giuseppe will open the presentation with our key highlights of the period, then go through our portfolio management actions and regulatory context updates, and finally, will give us a view of the business economic and financial performance. Thank you all for your attention, and now let me hand over the call to Giuseppe.
Giuseppe: Richard can you really like to have Big theory, then go through our portfolio management next June and regulatory context.
Giuseppe: And finally, a view of the economic and financial performance.
Giuseppe: Well for operation and now let me hand over the call to do that.
Giuseppe Turchiarelli: Thank you, Isabella. Good morning, and thanks for joining us. Let's start the presentation with our main highlights on slide 2. In this quarter, our hydro generation portfolio continues to perform remarkably, a result of the exceptional ideology seen last year, leading to the El Nio phenomenon in 2003 and a better meltdown. This performance gave us a strong start to the year in terms of our efficient generation portfolio. Today, the CME will publish the last month's regulated action, CapPrize, in all player offerings. Given this release, we will be able to confirm whether or not our offering was completed. We will only know the winner's name in the coming days.
Giuseppe: So you need to have Dana.
Isabella: Morning, and thanks for joining us.
Giuseppe Turchiarelli: In addition, with our mainframe.
Giuseppe Turchiarelli: Keith.
Speaker Change: Can you just walk there.
Giuseppe Turchiarelli: Hydro generation portfolio continued to perform remarkably well.
Giuseppe Turchiarelli: Great.
Isabella: Thank you Shannon.
Isabella: Hi, Joe.
Giuseppe Turchiarelli: Last year, mainly due to continuing India phenomenon and communicate.
Giuseppe Turchiarelli: Thanks.
Giuseppe Turchiarelli: Okay.
Charlie: Dave This is Charlie.
Giuseppe Turchiarelli: Scott.
Giuseppe Turchiarelli: In terms of efficient generation portfolio.
Giuseppe Turchiarelli: Great.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Probably the last month.
Isabella: Thanks, Sean.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: In one place.
Giuseppe Turchiarelli: Sorry.
Giuseppe Turchiarelli: EBIT.
Giuseppe Turchiarelli: We would be able to quantify whether or not our operating awards.
Speaker Change: We already know that.
Giuseppe Turchiarelli: In that regard.
Giuseppe Turchiarelli: On the regulatory side, we have some important news to share. First, the Chilean Congress approved the law related to the civilization mechanism Act 3, a very positive and important sign of stability in the energy market. Law 21-667 was already published last April 30.
Giuseppe Turchiarelli: Yes.
Isabella: Thank you.
Giuseppe Turchiarelli: Syed.
Giuseppe Turchiarelli: Sure.
Giuseppe Turchiarelli: Brian.
Giuseppe Turchiarelli: And then calling rules related to the revision.
Isabella: Thanks, Steve.
Speaker Change: Hey, David.
Giuseppe Turchiarelli: Boston sign of stability in the energy market.
Giuseppe Turchiarelli: No.
Giuseppe Turchiarelli: 67.
Giuseppe Turchiarelli: <unk> published last April 30.
Giuseppe Turchiarelli: Second, we continue to expect the new distribution tariff 2023-2024 to enter into force in the second half of the year. The Distribution Tariff Review 2024-2028 process has already started, and we are expecting some updates in the future. We will dig into all topics later. In terms of our profitability, I'm pleased to announce that 2024 has started with solid results in terms of EBITDA and net income, which reflect our confidence in our guidance for GCR. To conclude, the shareholders' meeting approved the final dividend for 2023 of 4.58 Chilean pesos per share.
Giuseppe Turchiarelli: Secondly, we continue to expect the needed solution.
Speaker Change: Got it.
Giuseppe Turchiarelli: Great.
Giuseppe Turchiarelli: Before we get to take a pause for the year.
Giuseppe Turchiarelli: Maybe solution for review.
Giuseppe Turchiarelli: For 2000.
Speaker Change: Hey, Bill.
Speaker Change: Got it.
Speaker Change: Thank you Sam.
Giuseppe Turchiarelli: Nick Rolli.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: Dolby Theatre.
Giuseppe Turchiarelli: In terms of our profitability.
Giuseppe Turchiarelli: Now turning to look at stock.
Giuseppe Turchiarelli: In terms of EBITDA.
Giuseppe Turchiarelli: Our net income.
Giuseppe Turchiarelli: We should reflect our confidence in a lot of guidance.
Giuseppe Turchiarelli: To conclude this shareholders meeting approved the final dividend for 2023.
Giuseppe Turchiarelli: Alright.
Giuseppe Turchiarelli: Now, in May, we will pay 3.98 Chilean pesos per share, complementing the amount already distributed and paid as an interim dividend during January this year. Now, let us move to slide 3 to review how we have executed our goals and strategies toward a more efficient generation of volume emissions. The favorable hydrological conditions during 2023, not seen since 2010, allowed us to have more comfortable weather availability until the end of the first quarter of 2024. This effect is associated with a peak in the milking season during 2024, which resulted in a higher hydrogeneration of 0.9 kWh.
Giuseppe Turchiarelli: Sure.
Giuseppe Turchiarelli: Now in May.
Giuseppe Turchiarelli: We paid three Boeing 98 Canadian per share complementing that Maryland or rig.
Giuseppe Turchiarelli: It may be.
Giuseppe Turchiarelli: During January each year.
Giuseppe Turchiarelli: Now, let's move to slide three.
Giuseppe Turchiarelli: Wow.
Giuseppe Turchiarelli: Our goals and strategy.
Giuseppe Turchiarelli: Fifth generation comes from other means.
Giuseppe Turchiarelli: The favorable hydrological conditions generally 323.
Giuseppe Turchiarelli: Not.
Speaker Change: Thanks, a lot.
Giuseppe Turchiarelli: With a more profitable way.
Giuseppe Turchiarelli: R&D spending in the first quarter communicated floor.
Giuseppe Turchiarelli: Davidson.
Giuseppe Turchiarelli: As a C P.
Giuseppe Turchiarelli: Alright.
Giuseppe Turchiarelli: You can see the annuity David Kenny for marathon.
Giuseppe Turchiarelli: Hi.
Giuseppe Turchiarelli: Zero.
Giuseppe Turchiarelli: Next electricity generation totaled 6.1 TWh as of March 2024, exceeding by 19% the production during the first quarter of 2023, mainly due to higher hydro and renewable energy generation, resulting from the improved hydrology and the addition of new projects, will be able to offset the lower thermal dispatch, mostly related to the better hydro situation of the... Our energy sales totaled 8.5 TWh in March 2024, 0.8% higher than the level of In terms of our balance, during this quarter, we increased our purchases from third parties by around 0.6 TLH. This is part of our continued effort to directify our sources. As a result, our spot purchases have decreased by 0.9 TWh; almost 60% of this reduction was in the non-solar hour. A lot has been said regarding the potential of anemia in 2024.
Giuseppe Turchiarelli: Power.
Giuseppe Turchiarelli: Next electricity generation totaling <unk> 41.
Speaker Change: Sure Matt.
Giuseppe Turchiarelli: To me for exceeding my name in <unk>.
Giuseppe Turchiarelli: Production during the first quarter that helps give you Q3, mainly due to high yet right.
Giuseppe Turchiarelli: Generation.
Giuseppe Turchiarelli: Based on the improved project execution.
Giuseppe Turchiarelli: New project.
Giuseppe Turchiarelli: Right.
Giuseppe Turchiarelli: The bold to offset the lower margin expansion most of it really is.
Giuseppe Turchiarelli: Either situation.
Giuseppe Turchiarelli: Our energy.
Giuseppe Turchiarelli: Eight.
Speaker Change: Thanks very.
Giuseppe Turchiarelli: During 2840 0.8.
Giuseppe Turchiarelli: 8%.
Giuseppe Turchiarelli: The recording in the first quarter.
Giuseppe Turchiarelli: Primarily due to higher cost for us.
Giuseppe Turchiarelli: And thanks to all of our modern nearing the explorer.
Giuseppe Turchiarelli: Our cost of goods.
Giuseppe Turchiarelli: These early data points.
Giuseppe Turchiarelli: Sure.
Giuseppe Turchiarelli: Is that part of our continued efforts to diversify our sourcing.
Giuseppe Turchiarelli: As a result, our spot capacity, we had a decrease.
Giuseppe Turchiarelli: Power almost 60% of it.
Giuseppe Turchiarelli: So a lot of hours.
Giuseppe Turchiarelli: Hello.
Giuseppe Turchiarelli: Direct manipulation.
Giuseppe Turchiarelli: So we continue to have a conservative hydro projection for 2024 of 9.6 TWh. I feel that even if we see a drier scenario for this year versus 2023, the big difference we see from the driest year occurred in the past is that now we have plenty of gas volume to fulfill our needs thanks to the Argentinian contract and our long-term energy contract with Shell. For reference, we have already instituted a new firm agreement with several Argentinian gas suppliers for up to 2.6 million cubic meters per day from May to September 2034 and an additional 3.5 million cubic meters per day from October to December this year, giving us certainty to optimize our portfolio during 2024.
Giuseppe Turchiarelli: In EMEA, Australia coming for so we continue to add accounts.
Giuseppe Turchiarelli: Or is it a prediction.
Giuseppe Turchiarelli: Any kidney four nine.
Giuseppe Turchiarelli: Power.
Speaker Change: Let me see.
Giuseppe Turchiarelli: We see EBITDA, yet scenario for breakfast.
Giuseppe Turchiarelli: Great.
Giuseppe Turchiarelli: Defense, we see from the prior year.
Giuseppe Turchiarelli: In the past is that now we have plenty of gas volume to fulfill our needs.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: Our long thing and engine contract which had.
Giuseppe Turchiarelli: For that we have already achieved.
Giuseppe Turchiarelli: No firm agreements with seven out of the gas supply.
Giuseppe Turchiarelli: $2 6 million.
Speaker Change: Good evening.
Giuseppe Turchiarelli: From May to September report.
Giuseppe Turchiarelli: And in addition of $3 5 million kilometer.
Giuseppe Turchiarelli: Data from October to December.
Giuseppe Turchiarelli: UBS.
Giuseppe Turchiarelli: Giving that certainty.
Giuseppe Turchiarelli: Our portfolio during 2010 before.
Giuseppe Turchiarelli: Now, let's move to the next slide to review our main KPIs on slide 4. In terms of renewable and increased capacity, in this first quarter, we reached 6.5 gigawatts of net capacity, representing a 77% stake in our generation portfolio. These enable us to reach 70,000. 6% CO2 production, 11 disease points higher than in the first quarter of 2020. Regarding Enel X, an important complement to our integrated offering that supports the rectification of our clients, we have improved the performance of several QPI compared to K23.
Giuseppe Turchiarelli: Now.
Giuseppe Turchiarelli: Most of the next slide to review our main Kpis on slide four.
Giuseppe Turchiarelli: In terms of the renewable mix increased capacity.
Giuseppe Turchiarelli: First quarter, we reached.
Giuseppe Turchiarelli: <unk> ophthalmic capacity.
Giuseppe Turchiarelli: Representing a 77% in our generation portfolio.
Giuseppe Turchiarelli: These enable us to reach.
Giuseppe Turchiarelli: Our spend.
Giuseppe Turchiarelli: Q3 production 11 basis points higher than in the first quarter.
Giuseppe Turchiarelli: Regarding <unk>.
Giuseppe Turchiarelli: Boston complement to our integrated offering.
Giuseppe Turchiarelli: Paul.
Giuseppe Turchiarelli: First of all our cloud here.
Giuseppe Turchiarelli: We have improved the platform months of centered out of TPI composites.
Giuseppe Turchiarelli: <unk> indicated in July.
Giuseppe Turchiarelli: Regarding the distribution segment, the number of clients in distributed energy in our concession area continues to grow. As for the quality of the KPI, looking at the last 12-month indicator, they remain in line with the same video plus.
Giuseppe Turchiarelli: Regarding the distribution segment the number of tie here.
Speaker Change: David as you know my conversation.
Giuseppe Turchiarelli: <unk> continued to grow.
Giuseppe Turchiarelli: What's more incentive policy.
Giuseppe Turchiarelli: And looking at the last month indicator.
Giuseppe Turchiarelli: That remain in line with the same period last year.
Giuseppe Turchiarelli: Now, on the next slide, we look at some of the costs related to regulatory costs. As you may recall, on last call, we indicated that in January this year, the Minister of Energy presented a draft law related to the Stabilization Energy Mechanism with the purpose of continuing the PEC mechanism and mitigating the projected tax increases to final costs. At the same time, they also aim to improve the Client Protection Mechanism, known as the MPC mechanism, to allow gradual repayment of accumulated debt to degenerators and establish a transitory Subsidy for the most vulnerable clients. This new law was discussed and approved by the Chilean Congress in April and published, and came into effect on the 4th of July, Tuesday, 18.30.
Giuseppe Turchiarelli: Now on the next slide let's look at some of the related to the big lots very complex.
Giuseppe Turchiarelli: As you May recall last call. We have indicated in January this year the meaningful way.
Giuseppe Turchiarelli: In the interim.
Giuseppe Turchiarelli: Hello.
Giuseppe Turchiarelli: If it <unk> make any sense either or both.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: There is a mitigating the predicted.
Giuseppe Turchiarelli: Finance costs.
Giuseppe Turchiarelli: At the same time builds on <unk>.
Giuseppe Turchiarelli: The client protection mechanisms known as <unk>.
Giuseppe Turchiarelli: Net earnings for a low gradual aiming topical.
Giuseppe Turchiarelli: We did generate and establish a victory.
Giuseppe Turchiarelli: For the most buoyant about value.
Giuseppe Turchiarelli: You know what.
Giuseppe Turchiarelli: Kathy.
Giuseppe Turchiarelli: And any color on that.
Giuseppe Turchiarelli: Published.
Giuseppe Turchiarelli: Coming to Florida.
Giuseppe Turchiarelli: Now we are waiting for two important steps. First, the publication of the sovereign guarantee decree needed to start the factoring process. This guarantee will be presented to investors that will be part of the edition coordinated by the ADB, expected next month. Second, the publication of the PMP decree, expected by the end of June. With the publication of this document, the tariff on the regulated client will be extended, and we expect that the client will receive the new tariff at the beginning of the second half of 2024.
Speaker Change: Got it.
Giuseppe Turchiarelli: Now we have raised the input in Boston.
Giuseppe Turchiarelli: First.
Giuseppe Turchiarelli: Obligations.
Giuseppe Turchiarelli: Consolidated guaranteed degree needing to start the factoring but also.
Giuseppe Turchiarelli: These guarantee 70 per investor that will be part of the issue coordinated by VEB.
Giuseppe Turchiarelli: For the next enrollment.
Giuseppe Turchiarelli: The publication of the E&P decree.
Giuseppe Turchiarelli: By the end of June.
Giuseppe Turchiarelli: The addition of the dopamine sorry on the regulated side here.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: We expect that the clients should I repeat.
Giuseppe Turchiarelli: With targets at the beginning of the second round.
Giuseppe Turchiarelli: As of March 2024, we had an account receivable related to the fact already made of factoring of 849 million dollars. With the publication of the summary decree, we expect to execute the factoring of the current accounts receivable during the second half of this year, ranging from $450 to $600 million. Yes, thank you.
Giuseppe Turchiarelli: Paul.
Giuseppe Turchiarelli: As of March 24, we had an account receivable related.
Giuseppe Turchiarelli: Already in Mexico.
Giuseppe Turchiarelli: $849 million.
Giuseppe Turchiarelli: Yes.
Speaker Change: We think we'll be patient.
Giuseppe Turchiarelli: Salary decrease.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: <unk> secured the factory from the current accounts receivable given the second half of this year.
Giuseppe Turchiarelli: Ranging from $456 million.
Giuseppe Turchiarelli: At the end of 2024, the accounts receivable net of the factory should range between $400 and $500 million. On the Distribution Tariff Review, the Regulatory Final Report for the 2020-2024 cycle was published in early February, and the Tariff Decree, the same period of emulation, shall be published within the next few months. Regarding the 2024-2028 cycle initiated in January 2024, we expect that the external consultant responsible for analyzing the reference model in company studies has started work, and the final report is foreseen to be published early in Q4 2024.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: It can be for the accounts receivable net of factoring should range between foreign debt.
Speaker Change: Let me know.
Giuseppe Turchiarelli: On the distribution side.
Giuseppe Turchiarelli: Well that's the final report for the 2023 24 cycle was published in the February.
Speaker Change: Got it.
Giuseppe Turchiarelli: The same EBIT motor insurance will be published within the next few months.
Giuseppe Turchiarelli: Regarding the Phoenix any thoughts going into the cycle initiated in January.
Speaker Change: Yes, correct.
Giuseppe Turchiarelli: Another consultant responsible for their lives indirect model companies.
Giuseppe Turchiarelli: That didn't work.
Giuseppe Turchiarelli: Final report is foreseen to be.
Giuseppe Turchiarelli: Certainly.
Giuseppe Turchiarelli: Q4.
Giuseppe Turchiarelli: We expect that by the end of this year, the regulator will publish the preliminary technical report of this new cycle. Even though the new cycle will not have a relevant change in terms of modeling, we will continue our work within the Association to address the changes in the regulatory model to match the needs we believe the distribution business requires to guarantee that the rectification and decarbonization plan acquired by the government and by the society cannot be jeopardized by the lack of the distribution interest.
Giuseppe Turchiarelli: Sure.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: At the end of the via the regulator shall be published.
Giuseppe Turchiarelli: The preliminary report of this new cycle.
Giuseppe Turchiarelli: EBIT.
Giuseppe Turchiarelli: The new site shall not.
Giuseppe Turchiarelli: Relevant change in terms of modeling.
Giuseppe Turchiarelli: Equally team our work with leading association to address the changes in the regulatory model to manage and meet the.
Giuseppe Turchiarelli: The distribution.
Giuseppe Turchiarelli: The acquired guaranteed.
Giuseppe Turchiarelli: Guaranteed debt litigation indicative modernization plan.
Giuseppe Turchiarelli: But the gallbladder and committed society cannot be jeopardized by the lack of the show.
Speaker Change: Sure Peter.
Giuseppe Turchiarelli: Now, let's review on the next slide how our earnings indicators perform. Our economic and financial performance for this quarter is very solid. Here is a quick summary of the main figures, which I will detail later.
Giuseppe Turchiarelli: Now, let's review on the next slide.
Giuseppe Turchiarelli: Ernie Syndicator pitfall.
Giuseppe Turchiarelli: I'll, let him follow indicated financial platform multiple be explored.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Many of <unk>, which have indicated later.
Giuseppe Turchiarelli: As you can see, this quarter EBITDA remains stable compared to the first quarter of 2023, even though in the first quarter of 2023, we had an important contribution from gas trading activities. Our generation portfolio needs, in the process, to explain largely its own results. The net income improved by 6% compared to the same period last year. Reaching $157 million for this fund. This was mainly due to the recognition of taxing interest, which positively impacted the financial return. The financial return also showed an improvement of 34% in the period, which reached $114 million in this quarter. The improvement, too, has been impacted by fact accumulation and factors. We will see more details in the following slides.
Giuseppe Turchiarelli: Aggregate fee this quarter EBITDA remains stable compared to the first quarter.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: Both the first quarter clinic anything we've had an important contribution from gas trading activity.
Giuseppe Turchiarelli: Our generation portfolio in the quarter explained largely utilities right.
Giuseppe Turchiarelli: The net income improved by 6% compared to the same period last year.
Giuseppe Turchiarelli: Reaching.
Giuseppe Turchiarelli: $157 million of these spot.
Giuseppe Turchiarelli: Was mainly due political mention of <unk> debt, which positively impacted the financial results.
Speaker Change: That's helpful.
Giuseppe Turchiarelli: Also show an improvement of 34 assays in the EU.
Giuseppe Turchiarelli: <unk> reached $114 million this quarter.
Giuseppe Turchiarelli: Big booming tool, meaning.
Giuseppe Turchiarelli: Feedback effect of combination of factors.
Giuseppe Turchiarelli: We will see more detail in the following design.
Giuseppe Turchiarelli: Now, on the next slide, let's review the progress on CAP. Our total capex reached $179 million in this first quarter, which is... 65% higher than the figures from the first quarter of last year. I would like to mention that 67% of our total capital, equivalent to $120 million, was related to renewables and storage, and 22%, equivalent to $40 million, was related to Greece, mainly due to new customer connections as a result of the growth of our customer base.
Giuseppe Turchiarelli: Now on the next slide.
Speaker Change: Let me review the project Capex.
Giuseppe Turchiarelli: Our total Capex reached $179 million loan books Music Festival we.
Giuseppe Turchiarelli: 65% higher than the figures on the first quarter last year.
Giuseppe Turchiarelli: I would like to mention that 67% of our total capex at Keybanc.
Giuseppe Turchiarelli: 100, Twentynine no none of it was related to renewable.
Giuseppe Turchiarelli: <unk> and 22% that Kieran to floating <unk>.
Giuseppe Turchiarelli: It could be.
Giuseppe Turchiarelli: Mainly due to new customer coordination.
Giuseppe Turchiarelli: The growth of our customer needs.
Giuseppe Turchiarelli: Regarding asset management capex, which represents 30% or $54 million of our total capex, it increased by around 50% compared to the last year's figure, mainly explained by increased maintenance activity in conventional generation plants and distribution business. Finally, development capex reached $103 million, representing 58% of our total capex, an increase of 77% compared to the last year's figure. Considering our renewable portfolio and the construction and activity at some of our hydrolytic facilities, plans to improve their efficiency.
Giuseppe Turchiarelli: Regarding asset management, Capex, which represented <unk> 54.
Giuseppe Turchiarelli: Our total capex increased by around 50% compared to the left.
Giuseppe Turchiarelli: Mainly explained by increased maintenance activity in conventional generation brands and difficult.
Giuseppe Turchiarelli: Finally, the development Capex reached $183 million, representing 58% of our Capex.
Giuseppe Turchiarelli: All.
Giuseppe Turchiarelli: 77% compared to the last figures, considering our renewable portfolio and the cost action.
Speaker Change: Yes, sorry about that.
Giuseppe Turchiarelli: Alright.
Giuseppe Turchiarelli: I think embedded FPGA.
Giuseppe Turchiarelli: Right now, take a look at the next slide, where we will review a summary of this first quarter DBAs. In the first quarter of 2020, our DBA reached $293 million, in line with the last three-year figure. Let me explain the main effect of this.
Speaker Change: Thanks now.
Giuseppe Turchiarelli: And then slide.
Giuseppe Turchiarelli: Many of these first quarter EBITDA.
Giuseppe Turchiarelli: Great.
Giuseppe Turchiarelli: In the first quarter was 24.
Giuseppe Turchiarelli: Our EBITDA reached 93 medium in line with the last seat figures.
Giuseppe Turchiarelli: Let me explain to me.
Giuseppe Turchiarelli: Both of these closed.
Giuseppe Turchiarelli: First, I would like to highlight the positive contribution from the PPA sales equivalent to $53 million, primarily due to higher volume made in the regulated market and indexation in the field. Second, the positive effect of $40 billion from the industrial source. Many explain this by lower variable cost, considering a better hydrology scenario and a more efficient generation mix that enables to reduce our fuel consumption. Supposedly, a contribution of 47 million dollars related to commercial tax, primarily due to lower prices in the stock market in terms of loaded volume and lower price. Partially offset by higher volume, partially from the surface.
Giuseppe Turchiarelli: Have a great highlight the positive contribution from Keybanc.
Giuseppe Turchiarelli: You're guiding to $53 million, primarily due to higher volume mainly related market index is showing a FEMA.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: Positive effect of $40 billion.
Giuseppe Turchiarelli: Being that <unk> made.
Giuseppe Turchiarelli: He explained by lower variable cost mostly doing that.
Giuseppe Turchiarelli: Alrighty.
Giuseppe Turchiarelli: And then more efficient generation mix.
Giuseppe Turchiarelli: <unk> been able to reduce our fuel consumption.
Giuseppe Turchiarelli: So we're supposedly be contribution of $47 million already to commercial SaaS sourcing.
Giuseppe Turchiarelli: Primarily due to lower prices in the spot market getting things up and all that.
Giuseppe Turchiarelli: Right.
Giuseppe Turchiarelli: Australia.
Giuseppe Turchiarelli: Hi, Ed volume, possibly pump.
Giuseppe Turchiarelli: In addition, we had a positive effect of $4 million related to the grid margin. This variation is mainly explained by the grid remuneration, which is mainly associated with the BAR 2023-2024 regulated report publication. The above mentioned effects were partially said by... First, a negative effect of $118 million related to the gas trading activities carried out during the first quarter of 2023 for around 10 TBCU. Second, we had a negative effect of $25 million related to the MECA-PTA agreement signed in 2023. Let's move on to the next slide, where we will review the net income evolution for $157 million. Our net income increased by 6% versus last year's figures. Let me try you on.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: The churn when we had the positive effect of $4 million related to cubic feet managing.
Giuseppe Turchiarelli: Turning to music screened by degree.
Giuseppe Turchiarelli: Which is mainly associated if you did not.
Giuseppe Turchiarelli: Particularly for regulated critical communications.
Giuseppe Turchiarelli: They're both mentioned in effect correct.
Giuseppe Turchiarelli: Australia by far.
Giuseppe Turchiarelli: And negative effect of $118 million.
Giuseppe Turchiarelli: Related to the gas trading activities carried out during the first prospect for.
Giuseppe Turchiarelli: For that.
Giuseppe Turchiarelli: Thanks.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: Second we had the negative effect of $25 million really to keep the Mexico, PPA agreements signed and get into anything.
Giuseppe Turchiarelli: Let's move onto the next slide we will review the net income evolution, that's accounting for 100.
Giuseppe Turchiarelli: $57 million.
Giuseppe Turchiarelli: Our net income increased by six.
Giuseppe Turchiarelli: Versus last year.
Giuseppe Turchiarelli: <unk> let.
Giuseppe Turchiarelli: Let me try to you <unk>.
Giuseppe Turchiarelli: The BDA, in line with the last figure, as I have already explained, higher depreciation amortization of $13 million mainly resulting from higher depreciation in energy and power due to our new renewable project in operation and Chilean pesos devaluation in the period, which was partially affected by the change in the consolidation perimeter given the cardiac failure. Partially Offset by Lower Bed Death Accrual and Rage and Anorexia due to a reduction in the commercial debt level as a result of the commercial agreement and cutting programs executed in the country.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: EBITDA in line with the last <unk>.
Giuseppe Turchiarelli: Arabia explain higher depreciation and amortization of $13 million.
Giuseppe Turchiarelli: Mainly resulting from.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: <unk> integrated power due to our new renewable projects in operation.
Giuseppe Turchiarelli: Janine.
Giuseppe Turchiarelli: The evaluation of the data.
Giuseppe Turchiarelli: Which was partially offset by the change in the consolidation of <unk>.
Giuseppe Turchiarelli: Given that <unk> seen.
Giuseppe Turchiarelli: Partially offset by lower bad debt coupon and greed.
Giuseppe Turchiarelli: Deep live at auction and the commission on that label as the results of the commercial agreement and tapping programs executed.
Giuseppe Turchiarelli: Regarding financial results and equity investment, we recorded a $19 million improvement, primarily explained by $21 million related to higher interest and adjustment due to the PEC-2 recognition. Income taxes decreased by $2 million when the big penalty provisional evasion from pre-indemnity, Moving to ethical analysis on the next slide.
Giuseppe Turchiarelli: Regarding financial results and the impact.
Giuseppe Turchiarelli: We recorded a $19 million of improved mix.
Giuseppe Turchiarelli: Extreme by 'twenty one.
Giuseppe Turchiarelli: It was higher interest adjustment.
Giuseppe Turchiarelli: Two vertical dimension.
Giuseppe Turchiarelli: Income taxes decreased.
Speaker Change: Can you hear me.
Giuseppe Turchiarelli: It was easier innovation from paying genetic deal.
Speaker Change: Moving on.
Giuseppe Turchiarelli: On the next slide.
Giuseppe Turchiarelli: Let's review in detail our efforts over this period. This quarter, our SFO reached $114 million, representing an improvement of $29 million compared to the same period in 2023. Let me detail the main aspects that explain our SSL in this video.
Giuseppe Turchiarelli: Sure.
Giuseppe Turchiarelli: Let's review in detail, our SSL phone with video.
Giuseppe Turchiarelli: This brought our <unk> REIT.
Giuseppe Turchiarelli: Right.
Giuseppe Turchiarelli: $8 million.
Giuseppe Turchiarelli: Representing an improvement of $29 million compared to the same period in 2020.
Giuseppe Turchiarelli: Great.
Giuseppe Turchiarelli: Let me.
Giuseppe Turchiarelli: Explain a lot of SSL in this field.
Giuseppe Turchiarelli: $493 million timing some of it did not.
Giuseppe Turchiarelli: 293 million dollars coming from the dividend and 1,000,000... Thanks to our PPA sales and positive performance of the industrial and commercial sourcing, as explained previously. A negative effect coming from the cumulative stabilization mechanism effect in our reservoirs, equivalent to $105 million in this quarter, with a negative effect, is being partially offset by the execution of the IDB factory related to Tech 2, which amounted to $15 million. There is also a negative effect coming from the working capital that reached $29 million as a consequence of payments coming from 2023. In addition, contact with corporate negatively impact is allowed.
Giuseppe Turchiarelli: Mainly.
Speaker Change: Thanks, Laura.
Giuseppe Turchiarelli: And in closing some months of David are selling commission sourcing.
Giuseppe Turchiarelli: Explain very easily.
Giuseppe Turchiarelli: And the negative effect coming from the community.
Giuseppe Turchiarelli: More than 70 vision Mick.
Giuseppe Turchiarelli: In our <unk>.
Giuseppe Turchiarelli: $105 million this quarter.
Giuseppe Turchiarelli: These negative effect, meaning partially offset by big sequential IV be factored in.
Giuseppe Turchiarelli: Soon.
Giuseppe Turchiarelli: Which amounted to $15 million.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: The result of negative effect coming from the working capital that reached $39 million.
Giuseppe Turchiarelli: Alternative payment coming from tier two and three.
Giuseppe Turchiarelli: In addition income tax this quarter has been negatively impacted all of our assets fell by 26 million.
Giuseppe Turchiarelli: FSO by 26 million dollars, mainly explained by tax savings in the generation business in 2020. To conclude, in terms of financial expenses, we paid $34 million a month in embedded debt. Making a comparison of the pressure between trans-coastal 2024 and trans-coastal 2023, you can see how the figures are very much in line. The only main difference is related to the net impact of the tech accumulation, as you can see in this slide.
Giuseppe Turchiarelli: Mainly explained by the maintenance they shouldn't be thinking of going for.
Giuseppe Turchiarelli: To conclude in terms of financial expenses, we paid for it.
Giuseppe Turchiarelli: $40 million.
Giuseppe Turchiarelli: The bad debt.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Sure.
Giuseppe Turchiarelli: Making the comparison of the <unk> trial, squawk, but can be for the first quarter.
Giuseppe Turchiarelli: You can see how the figures are very much in line. The only main difference is relative.
Giuseppe Turchiarelli: Most of the technical innovation as it gains team design.
Giuseppe Turchiarelli: Now, let's take a look at our liquidity and leverage position. Our drop tax decreased around 1% to $4.4 billion by the end of March 2024 versus December 2023. We foresee that our net debt will continue to decrease by seconds after 2024 considering the execution of net working capital actions expected for the period. Therefore, the current indefinite level is a temporary condition that will be recovered by the end of the year. The average of our death inactivity rate decreased temporarily.
Giuseppe Turchiarelli: Now, let's take a look at that a lot of liquidity and leverage position.
Giuseppe Turchiarelli: I'll, let bill degrees around 1%.
Giuseppe Turchiarelli: Follow up on floor being done by the end of March and you can get for branches to be Sam messaging.
Giuseppe Turchiarelli: We foresee that our net debt continued to decrease by cycle.
Giuseppe Turchiarelli: So close to getting the execution of networking capital prediction.
Giuseppe Turchiarelli: The theater.
Giuseppe Turchiarelli: Therefore, the timely investment level EBIT temporary condition that would be recovered methane will be here.
Giuseppe Turchiarelli: The average of our investing activity decreased payment already.
Giuseppe Turchiarelli: 5.7 years as of March 2024 from 6.1 years as of December 2023, and the portion of the fixed rate is maintained at 88% of the total debt in line with the same activity. The average cost of our debt reached 4.83% as of March 2024, in line with December 2024. In terms of GDP, we have a comfortable position to support upcoming debt repayments in 2024 and cope with possible headwinds in the debt market related to the economic situation.
Giuseppe Turchiarelli: Five Boeing seven year.
Giuseppe Turchiarelli: It's an export.
Giuseppe Turchiarelli: From six the following one year.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: And the Olson at the tax.
Giuseppe Turchiarelli: <unk> maintained our AP.
Giuseppe Turchiarelli: Let's say of the total in line goods.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: The average cost of our debt reached 483 Braxton has a mask for December.
Giuseppe Turchiarelli: In terms of the DVD.
Giuseppe Turchiarelli: The comfortable position to support upcoming that matter, we've been typically for and cope with that.
Giuseppe Turchiarelli: <unk> net.
Giuseppe Turchiarelli: In the debt markets.
Giuseppe Turchiarelli: The economy situation.
Giuseppe Turchiarelli: April, March 31st, 2084 We had signed two new credit lines with Barclays, totaling $150,000, sponsored ADR. In terms of maturity for 2024, we have approximately $770 million maturing in 2024, including $400 million of the unity bond in generation, final generation, which was successfully paid in April. The payment was realized using a short-term intercompany investment between Enel Generaciones and Enel Chile, using part of the Revolving Committee's credit line available to Enel Chile.
Giuseppe Turchiarelli: As of March 31st.
Giuseppe Turchiarelli: Well, we have signed two new credit line, when we acquired a basket totalling 100 feet.
Giuseppe Turchiarelli: 50 million.
Giuseppe Turchiarelli: $750 million.
Giuseppe Turchiarelli: In terms of maturity for giving 24, we have approximately 770 million during 2024, including the $400 million of the.
Giuseppe Turchiarelli: <unk> bonding generation generation.
Giuseppe Turchiarelli: Which was subsequently paid.
Giuseppe Turchiarelli: B.
Giuseppe Turchiarelli: The payment was realized using that sharp damage the company invested between finance and it.
Giuseppe Turchiarelli: Ciena using part of that evolving committed credit line available and in Chile.
Giuseppe Turchiarelli: Now, I will close the presentation with some closing remarks. We find that a strong start to the year in terms of operating performance, mainly in generation B. The better than expected hydrology in 2023 was reflected in a better reservoir level at the beginning of this year. The pace of the meltdown season in our Generation Meet also supported our solid results.
Speaker Change: Now I will close the presentation with some closing remarks.
Giuseppe Turchiarelli: We had net.
Giuseppe Turchiarelli: Strong start to the year in terms of operating platform that mainly in generation.
Giuseppe Turchiarelli: The fact that Theyre expected ideology and communicated today was reflected in a better reserve level at the beginning of BPM.
Giuseppe Turchiarelli: The beef demand down and our generation meets all of the support to our facilities.
Giuseppe Turchiarelli: Sound liquidity puts us in a comfortable position to support our short-term strategy and cover the maturity over the planned period as part of our de-risking and de-leverage strategy announced in our last capital market. Finally, the next month will be very important in terms of regulatory updates for the sector and the release of the Sovereign Guarantee Decree that will support the start of the factory and address the recovery, as well as the publication of the 2024 Tariff Decree for the YouTube channel. Let me now hand it over to Isabela. Thank you for your attention. Now, let's begin with the Q&A section. We will receive questions via phone and chat during the webcast. The Q&A section is open.
Giuseppe Turchiarelli: Thanks.
Isabela Klemes: Soundly pvt.
Isabela Klemes: In a comfortable position to support our short payment strategy and covered the maturity for deployment as part of our de risking and de leverage strategy announced in a lot less capital market day.
Isabela Klemes: Finally that next month will be very important in terms of regulatory update from the sector.
Isabela Klemes: You need on the celebrated R&D decree.
Isabela Klemes: To support the startup of the factory.
Isabela Klemes: Equally as well as the publication of the clinically meaningful.
Giuseppe Turchiarelli: <unk>.
Isabela Klemes: Of the distribution business, let me now Enbrel right up to design.
Isabela Klemes: Thank you for your attention. Now we will begin with the Q&A section. We will receive questions via phone and chat during the webcast. The Q&A section is open. Operator, please. You may start.
Isabela Klemes: Thank you for your attention and now let's begin with the Q&A section, we received questions via phone and shocks in the webcast.
Isabela Klemes: Any section is open operator, you may start.
Isabela Klemes: Yeah.
Operator: Thank you, and at this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Once again, that's star 11.
Operator: Thank you and at this time, we will conduct a question answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to a draw. Your question. Please press star one again.
Operator: One moment for our first question. And our first question. Sorry, our first question will come from Lionel.
Operator: Thats Star 111 moment for our first question.
Lionel: And our first question.
Lionel: Our first question comes from the line of.
Operator: Go ahead. Okay, we have a question from the line.
Lionel: Go ahead Colby.
Operator: Yes, our first question will come from Javier Suarez from Mediobanca. Your line is open.
Lionel: A question from the line.
Operator: Yes. Our first question comes from the line of Javier Suarez from Mediobanca. Your line is open.
Javier Suarez Hernandez: Hi, good morning, and congratulations to Giuseppe for the appointment as new CEO. I have two or three questions.
Javier Suarez Hernandez: Hi, good morning, and congratulations to just have therefore, avoiding an appointment as CEO.
Javier Suarez Hernandez: The first one is on the impact that the approval of the new stabilization mechanism may have on the working capital improvement during 2024 and the following years. I'm particularly interested in the period 2024 to 2026. This has been approved now by the Congress, and that should have a positive impact on your cash flow generation. The second point is also on your latest expectations from the approval of the 2020-2024 electricity distribution tariff.
Javier Suarez Hernandez: <unk>.
Javier Suarez Hernandez: Two or three questions. The first one is on the.
Javier Suarez Hernandez: On the.
Javier Suarez Hernandez: The impact that the approval of the Aneel established ACM mechanism may have on the working capital improvement during 2024.
Javier Suarez Hernandez: The next following years I'm, particularly interested in the period 2024 to 2020. These several of <unk> by the Congress and thus will have a positive impact on your on the cash flow customer generation.
Javier Suarez Hernandez: Our second the second point is also on the on your latest expectations for the upper.
Javier Suarez Hernandez: Well of the.
Javier Suarez Hernandez: 2022 2024.
Javier Suarez Hernandez: Electricity these pwc on studies.
Javier Suarez Hernandez: The tariff decrease will be valid during the third quarter, but I would like to share with us your latest expectations on what you see or quantify as possible upside from this new regulation. And my third comment is if you can share with us your latest expectations for the depth of the company by the year-end. And the final comment is on the comment that you have made that you feel comfortable with the current guidance for 2024.
Javier Suarez Hernandez: Decrease would be filing during the third quarter, but you can share with us your latest expectations or what you see or quantified as possible upside from these new regulation.
Javier Suarez Hernandez: The third comment is if you can share with us your.
Javier Suarez Hernandez: Latest expectation by debt.
Javier Suarez Hernandez: For the type of the company by the year end.
Javier Suarez Hernandez: And the final the final comment is on the on the on the comment that you have made that you feel comfortable with current guidance for 2024. So the my argument would be that taking into consideration that hydro put it back to you on these are higher or is likely to be higher that you would've Samsung India in the current business plan.
Javier Suarez Hernandez: So my argument would be that, taking into consideration that hydro production is higher or is likely to be higher than your assumption in the current business plan, taking into consideration that the new stabilization mechanism should allow for the collection of some pending regulatory receivables, and there should be some upsides from the new distribution, the new distribution framework. So then we see the current target as conservative. If you can elaborate on that, that would be helpful. Thank you.
Javier Suarez Hernandez: Taking into consideration that the newest ability to make any sense to allow for the collection of some pending regulatory receivables.
Javier Suarez Hernandez: There should be some upside from the new distribution.
Javier Suarez Hernandez: The new distribution center.
Javier Suarez Hernandez: Susan.
Javier Suarez Hernandez: <unk> got a target to us concerned about if you can elaborate on that on that that would be helpful. Thank you.
Giuseppe Turchiarelli: Thank you, Javier and Giuseppe. Javier Hernandez
Speaker Change: Thank you Ms Yan Zhang.
Giuseppe Turchiarelli: Hi Javier, and thank you for your congratulations. Well, in terms of the price stabilization mechanism, as I said previously, the law has been approved and published. So now, we are waiting for several next steps, which are probably in. The most important steps that we are waiting for are, first of all, the emission of the sovereign decree that gives us the guarantee, that will cover 3% of our credit. We need in order to proceed with the factory and the second. SEPI is the application that can be decreed at the end of June, based on which we can define exactly the amount of factoring that is supposed to be done in the second half.
Speaker Change: Thank you.
Giuseppe Turchiarelli: Congratulations.
Speaker Change: Thanks all.
Giuseppe Turchiarelli: Musician, Nick I mean.
Giuseppe Turchiarelli: As I said in previously Deloitte has been approved in Opex.
Giuseppe Turchiarelli: So now we are waiting for seven.
Giuseppe Turchiarelli: Seven of them next day.
Giuseppe Turchiarelli: We show.
Speaker Change: Got it.
Giuseppe Turchiarelli: The most important aspect of that.
Giuseppe Turchiarelli: We are waiting for our first of all emission of the sovereign.
Giuseppe Turchiarelli: <unk> decreased that to give us.
Giuseppe Turchiarelli: The big R&D.
Giuseppe Turchiarelli: But we call it 30% of our creative.
Giuseppe Turchiarelli: We need to in order to proceed with the factory and the second one.
Giuseppe Turchiarelli: Secondly, the application.
Giuseppe Turchiarelli: The decrease are named.
Giuseppe Turchiarelli: No.
Giuseppe Turchiarelli: If we don't reach it.
Giuseppe Turchiarelli: We can define exactly the amount of factors I mean that is supposed to be done in the second half.
Giuseppe Turchiarelli: Now, second alpha means between... Third, end of the third quarter, beginning of the fourth quarter. And we are talking about our estimates according to the information that we have. It should be between $450 and $600 million. If we are able to proceed with this factoring, we are going to close the year with account receivables that will be between $400 and $500 million. Consider that most of this amount will be recovered between 2025 and 2026, with a small portion related to PEC 1 that will be recovered in 2027 according to the law. So, this was what concerns the first question. In terms of, uh...
Giuseppe Turchiarelli: Now on the other.
Giuseppe Turchiarelli: Meetings between.
Giuseppe Turchiarelli: Any thoughts there.
Giuseppe Turchiarelli: Fourth quarter.
Giuseppe Turchiarelli: It doesn't come out our explanation according to the <unk> formation.
Giuseppe Turchiarelli: It should be between <unk> <unk> and <unk>.
Giuseppe Turchiarelli: Medium.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: We enabled.
Giuseppe Turchiarelli: Duplicity, we'd need to factor in that.
Giuseppe Turchiarelli: We are going to close the wheat.
Giuseppe Turchiarelli: And accounts receivable.
Giuseppe Turchiarelli: Between four and five.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Can you see that a bit.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Bart.
Giuseppe Turchiarelli: Let me say most of these.
Giuseppe Turchiarelli: Islander, we'd be recall there in between.
Giuseppe Turchiarelli: <unk> five including three seats.
Giuseppe Turchiarelli: As more impulse Shannon.
Giuseppe Turchiarelli: The big one that can be recovered in.
Giuseppe Turchiarelli: 2007, according to them to digital.
Giuseppe Turchiarelli: So deep love, Wisconsin in the first place.
Speaker Change: Thanks all.
Giuseppe Turchiarelli: In terms of the impact of BID in 2024, we have already included it in our profit and loss, so we are talking about around... $20 million, compared with our previous assumption. In terms of debt at the end of the year, we're supposed to close the year with a net debt around $3.6 million. Let me say that again.
Speaker Change: Thanks all.
Giuseppe Turchiarelli: In fact, all the VA.
Giuseppe Turchiarelli: We are deep into unique and clinically, Florida, we have already.
Giuseppe Turchiarelli: <unk>.
Speaker Change: Perfect and then also we are talking about around.
Giuseppe Turchiarelli: As you know not competing in that our previous assumption.
Giuseppe Turchiarelli: In terms of debt at the end of the year, we supposed to close.
Giuseppe Turchiarelli: The idea with a netback around three point seat.
Giuseppe Turchiarelli: Let me say that.
Giuseppe Turchiarelli: Clearly, this amount that I'm giving you is based also on the possibility of performing this factoring that we already mentioned. If everything is going well, we are going to close $3.6 billion net debt at the end of the year with the innovation, and that's to be done less than three times as our guidance and target have already declared several times. The guidance, yeah, apparently with the results of the first quarter, clearly is better guidance.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: Clearly these amounts.
Giuseppe Turchiarelli: But I'm, giving you.
Giuseppe Turchiarelli: Also on the possibility of us.
Giuseppe Turchiarelli: Performing these factors that we already mentioned.
Giuseppe Turchiarelli: So everything is doing well and we're going to keep building fee.
Giuseppe Turchiarelli: Net debt.
Speaker Change: We did.
Giuseppe Turchiarelli: And our ratio of net debt to get down lower than three times is that a lot of guidance and target.
Giuseppe Turchiarelli: Already deployed et cetera.
Giuseppe Turchiarelli: The guidance there.
Giuseppe Turchiarelli: The guidance, yes, I mean, we've got it down so that first quarter clearly currently there.
Giuseppe Turchiarelli: As I said at the beginning... We don't know yet how the rainy season will perform, so basically, we prefer to be conservative and to stay positive, to confirm the guidance that we declared on Capital Market Day. Clearly, there could be some possible upside, but it's too early to mention it.
Giuseppe Turchiarelli: Is there like that.
Giuseppe Turchiarelli: Guidance as I said at the beginning.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: We have not.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: We don't know yet how the rainy season, we perform a full basically we perfected we can say about the interest.
Giuseppe Turchiarelli: To lead to confirm the guidance that we are.
Giuseppe Turchiarelli: Declare in the capital market day, clearly there could be some possible upside that you mentioned.
Giuseppe Turchiarelli: We'll probably give you a better or more updated guidance as soon as we're going to close the second half, because, as you probably remember, the greening season used to start end of April or beginning of May. So, for the closing in June, that will be published. At the end of July, we were able to give a better view of the guidance, but as of today, we confirm the guidance that we presented on the Capital Market.
Giuseppe Turchiarelli: We already gave you.
Giuseppe Turchiarelli: Right.
Giuseppe Turchiarelli: Or more.
Giuseppe Turchiarelli: The guidance as we cannot close the second half because as that.
Giuseppe Turchiarelli: For the remainder of the Iranian either you or is it just that the end of April.
Giuseppe Turchiarelli: So.
Giuseppe Turchiarelli: For the closing on January particularly on June the <unk>.
Giuseppe Turchiarelli: Probably.
Giuseppe Turchiarelli: The end of July we are able to get back to that in view of the big items, but.
Giuseppe Turchiarelli: As of today, we confirm we can there.
Giuseppe Turchiarelli: With the guidance and the guidance that we could think of it in that type of activity.
Javier Suarez Hernandez: And to be just 100% crystal clear on your first answer on the amount of regulatory receivables by the year-end, you were mentioning that the amount of regulatory receivables by the year-end should be along the lines of $400 million, and that should mean a reduction through the year between $400 to $600 million. Is this correct?
Giuseppe Turchiarelli: And to be honest.
Speaker Change: Yes, 100% leased at least had a clear on your first answer on the on the amount of regulatory receivables by the yen. So you were mentioning that that.
Javier Suarez Hernandez: That amount of regulatory receivables by year end to be at the along the lines of $400 million, but had a $1 million in vessel midnight adaxial through the years between $400 million to $600 million.
Giuseppe Turchiarelli: Between 400 and 500 million dollars will be the year-end credit receivable, depending on how much we are able to do in terms of funds. But again, I will repeat it, the factoring. We're supposed to have between 450 and 600 in terms of factoring, and we are estimating to close the year with a credit between 400 and 500.
Javier Suarez Hernandez: Correct.
Giuseppe Turchiarelli: Yes between branded and for Randall.
Giuseppe Turchiarelli: That will be there.
Giuseppe Turchiarelli: And Craig Rick period work, depending on how much we're able to do in terms of.
Giuseppe Turchiarelli: Awesome.
Giuseppe Turchiarelli: Again, I will repeat it.
Giuseppe Turchiarelli: The factory, we suppose sliver between 450.
Giuseppe Turchiarelli: In terms of factoring and we.
Giuseppe Turchiarelli: He made it to close.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: It created between Farhan.
Giuseppe Turchiarelli: So and then.
Javier Suarez Hernandez: Fantastic. Many thanks.
Speaker Change: Fantastic many thanks.
Isabela Klemes: Thank you, Javier. As we do not have another question from the line, let's go to the chat. Okay, the first question is coming from Fernando Gonzalez, from DPG, and Fernando Sainz. Giuseppe, congratulations on your appointment. Can we assume continuity from a strategic point of view, or is there something different that you'd like to focus on? What are the things that you will dedicate more time to and that concern you most?
Javier Suarez Hernandez: Right.
Javier Suarez Hernandez: Yeah.
Isabela Klemes: We do not.
Speaker Change: Another question from the line, let's go to the shops in Kbr's first question Tommy John.
Speaker Change: Sure Alan BTG and for 19 does that the congratulations on yard off Weizmann, Ken We have continued to see feel like Chuck D point of view or is there something different that he would like to focus on.
Isabela Klemes: <unk> that a yearly dedicate more time and that concerns you most.
Operator: Sponsored ADR
Isabela Klemes: And the company then and then another question.
Operator: So one by one.
Giuseppe Turchiarelli: Thank you, Thomas. Thank you for your congratulations.
Operator: Yes.
Operator: Thank you Donna and competitive from the duration.
Giuseppe Turchiarelli: And, well, in general, I can tell you that, you know, no change in terms of strategy. I mean, we are sticking with the strategy that we have already... as they did last year on our capital market day. So, the topics and the focus for the company are still the same. That means decarbonization in terms of increasing our capacity in terms of renewable energy, with a special focus on the financial stability that we have as a pillar in our studies. I don't see any kind of changes so far.
Giuseppe Turchiarelli: Well.
Giuseppe Turchiarelli: In China, I can't give you that.
Giuseppe Turchiarelli: I'm not changing themselves starfish.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: The fact that you can get we have already.
Giuseppe Turchiarelli: Right.
Giuseppe Turchiarelli: Lastly, adding a lot of time, you've done that to date.
Giuseppe Turchiarelli: For the therapy and the focus for the company.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: The FEMA.
Giuseppe Turchiarelli: That means.
Giuseppe Turchiarelli: The capitalization of it in terms of.
Giuseppe Turchiarelli: Clearly increase our capacity in terms of our renewable with the.
Giuseppe Turchiarelli: Special focus on.
Giuseppe Turchiarelli: The financial stability.
Giuseppe Turchiarelli: What we have.
Giuseppe Turchiarelli: Saturday So I.
Giuseppe Turchiarelli: I don't see any kind of changes so far okay. So let's go to the second question is from Shannon could you. Please elaborate more on the $25 million negative impact on EBITDA shown the magic PPA agreements.
Giuseppe Turchiarelli: So let's go to the second question from Fernandes. Could you please elaborate more on the $25 million negative impact on EBITDA from the METICA PPA agreement?
Giuseppe Turchiarelli: Last year, in the first quarter of 2023, we reached an agreement with our supplier of energy. We had a PPA in place to buy from this company, Mecca, and the TPA foreseeing the start of the operation. We see you, with a certain amount, at a certain point of connection. Believe it.
Speaker Change: Yes, I mean last year in the first quarter came with unique three we reached an agreement that we know.
Giuseppe Turchiarelli: Supply you know a very niche hedge.
Speaker Change: <unk> bye.
Giuseppe Turchiarelli: With this company.
Giuseppe Turchiarelli: And the PPA for Athene.
Giuseppe Turchiarelli: The start of the operation.
Speaker Change: Yeah, we do.
Giuseppe Turchiarelli: The settlement amount EBIT there.
Giuseppe Turchiarelli: Following the convention.
Giuseppe Turchiarelli: For several reasons, we negotiated with this company in the spirit of the contract and the negotiation. Foreseeing a different delivery point, and the compensation regarding the new contract, the update of the contract with MECA was $25 million in 2023. So basically, it is a one-off effect that we had last year that clearly is not going to be repeated. Just a matter of very specific negotiation with our supplier.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: And for several reasons.
Giuseppe Turchiarelli: We renegotiate with this column Bunny and update.
Giuseppe Turchiarelli: Of that contract and that.
Giuseppe Turchiarelli: Negotiation.
Giuseppe Turchiarelli: Foreseen and different.
Giuseppe Turchiarelli: Delivery point and the compensation are.
Giuseppe Turchiarelli: Regarding the.
Giuseppe Turchiarelli: The new contract the update of the contract with makeup Mexican law.
Giuseppe Turchiarelli: $25 million.
Giuseppe Turchiarelli: In clinic indicated so basically the one off effect that we had last year that clearly we are not going to be repeated this year.
Giuseppe Turchiarelli: Amanda.
Giuseppe Turchiarelli: Very strategic and negotiation with our.
Giuseppe Turchiarelli: What are your thoughts on the potential regulatory change that is being discussed about the way the export market works? Is this a change that you would agree with?
Giuseppe Turchiarelli: Supplier.
Speaker Change: Okay, and then final question Tonight, what are your thoughts on the quotation regulatory change that is needed.
Giuseppe Turchiarelli: The way the spot market work.
Giuseppe Turchiarelli: Is that change that you agreed with.
Giuseppe Turchiarelli: When? I mean get it, [inaudible] We are still evaluating the... At this point, I consider that
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: Well.
Giuseppe Turchiarelli: Yeah.
Giuseppe Turchiarelli: I mean it.
Giuseppe Turchiarelli: And then.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: The last evaluating them there.
Giuseppe Turchiarelli: Big point.
Giuseppe Turchiarelli: Consider that.
Giuseppe Turchiarelli: We see this data.
Giuseppe Turchiarelli: The spot price.
Giuseppe Turchiarelli: The impact on the proper aggregating salespeople.
Giuseppe Turchiarelli: So we are trying to figure out which is the best way of possible changes in Florida I believe we are.
Giuseppe Turchiarelli: At the beginning of <unk>, and we're going to give you more update.
Isabela Klemes: Thank you, Giuseppe. Now we have a question also from the chat here from Florencia Mayorca from MetLife. Sorinfa is asking if you could repeat again the outstanding on SPAC, what we are expecting also for the end of 2024, and also if we have any update about the prices from the recent regulated auction.
Giuseppe Turchiarelli: In the following call.
Speaker Change: Thank you.
Isabela Klemes: Now we have.
Isabela Klemes: Question also from the shop here, some floating semi yaacov Joan next life.
Isabela Klemes: So it is asking if you could repeat again.
Isabela Klemes: Outstanding about what we are expecting also for the end of 2024.
Isabela Klemes: And also if we have any update about the brightest from the weekend with the laser adoption.
Giuseppe Turchiarelli: In terms of account receivable coming from the bank, we are assuming that we will have an amount of factoring that was between 450 to 600 million dollars in the second half of this year. That factoring, we are going to close. The credit receivable at the end of 2024 in a range between $400 and $500,000.00. Well, for what concerns the regulatory tender, I mean, right now... We are waiting for the release of the Reserved Prize, the CAP Prize, that we mentioned before. And we believe that in a couple of hours, in the next hour, we are going to have some more information, and we are going to evaluate it in order to understand whether we won or
Isabela Klemes: Yes.
Giuseppe Turchiarelli: In terms of.
Giuseppe Turchiarelli: Accounts receivable Permian, Colombia effect.
Giuseppe Turchiarelli: Yes, I mean.
Giuseppe Turchiarelli: Okay.
Giuseppe Turchiarelli: And the amount of factoring that.
Giuseppe Turchiarelli: All of them work.
Giuseppe Turchiarelli: $456 million.
Giuseppe Turchiarelli: In the second half of Bcf.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: Factoring we approved we are going to close.
Giuseppe Turchiarelli: And it created a receivable at the end of 2024.
Giuseppe Turchiarelli: And we can put on that.
Giuseppe Turchiarelli: $500 million.
Giuseppe Turchiarelli: Yes.
Giuseppe Turchiarelli: For what concern that it could actually then there I mean.
Giuseppe Turchiarelli: Right now.
Giuseppe Turchiarelli: We are waiting for the release itself.
Giuseppe Turchiarelli: The top five that we mentioned before and we did.
Giuseppe Turchiarelli: You bet.
Giuseppe Turchiarelli: Couple of Wawa in the mix.
Speaker Change: I'll, let Greg want to add some more information.
Giuseppe Turchiarelli: We're going to evaluate it.
Giuseppe Turchiarelli: And the way that.
Giuseppe Turchiarelli: We will partner.
Isabela Klemes: Okay, thank you Giuseppe. Another question is coming from Ignacio Galvez from Santander. Good morning. Financial costs for the fourth quarter 2023 and first quarter 2024 contain some costs related to electrical bus account receivables. Are these non-recurring costs already over, or should we expect additional costs in the next one? Thank you, thank you Ignacio. Giuseppe, so this is the question.
Speaker Change: Thank you. Thank you good luck.
Isabela Klemes: Another question is coming from NASA Galloway from Santander.
Giuseppe Turchiarelli: Good morning financial cost during fourth quarter 2023, and first quarter 2024 contains some costs related to an electrical buses.
Isabela Klemes: With fee levels.
Isabela Klemes: R&D nonrecurring costs already are.
Ignacio Galvez: Or should we expect additional costs in the next quarters. Thank you.
Giuseppe Turchiarelli: Thank you Ignacio.
Giuseppe Turchiarelli: I think so.
Ignacio Galvez: Quick question basically.
Speaker Change: Is that a timing effect.
Giuseppe Turchiarelli: Sponsored ADR to third parties, and we are not going to have any additional effect in the following month. It's just a matter of account impact, not a financial one. The business of Enel and the electric bus works in this way, with such an effect once you sell the business.
Giuseppe Turchiarelli: Good day.
Giuseppe Turchiarelli: Sounds action that we had.
Giuseppe Turchiarelli: The biopsy suite.
Giuseppe Turchiarelli: The asset there.
Giuseppe Turchiarelli: To a third party.
Giuseppe Turchiarelli: And we are not going to address any additional affecting it following in the following months.
Speaker Change: I meant at all.
Giuseppe Turchiarelli: I found the impact not a financial one of Liza and then the Beasley felt within it.
Giuseppe Turchiarelli: The electric battery walmsley, he's waiting such any effects.
Speaker Change: Thank you Stan.
Isabela Klemes: Okay, thank you, Giuseppe. Again, let's go to the final question, the last one from Tomas Gonzalez from Scotiabank. Hi, Giuseppe. Hi, Isabela. Congratulations on your appointment as CEO. Well-deserved recognition. The question from Tomás is, can you give us an update in relation to the potential sale of up to 49% of renewable assets and whether this sale could result in a higher dividend going forward?
Speaker Change: Okay. Thank you Tim Let me go to the final question the last one from Tomasz <unk> from Keybanc.
Isabela Klemes: Hydrotherapy Isabella congratulations.
Speaker Change: Thank you.
Isabela Klemes: Your appointment you see Oh, well deserved recognition.
Isabela Klemes: So Maggie can you give us an update in relation to the potential sale of up to 49% of renewable assets and say you could result in a higher dividend going forward. Thanks.
Giuseppe Turchiarelli: Thank you, Thomas. We are going to end with the potentialities of minority states of our assets. We don't have, as of today, any kind of... for you, but the following month, in June, I hope to give you more, more color on that. In terms of additional dividend, we're going to see how the process and the price will be. ADR today is really, really..., to discuss this topic.
Speaker Change: Thank you.
Speaker Change: Thank you Thomas.
Giuseppe Turchiarelli: Right.
Giuseppe Turchiarelli:
Giuseppe Turchiarelli: We are going to add that.
Speaker Change: With that.
Giuseppe Turchiarelli: The potential sale of a minority stake of our asset.
Giuseppe Turchiarelli: We've done it.
Giuseppe Turchiarelli: Today Amy.
Giuseppe Turchiarelli: Dave.
Giuseppe Turchiarelli: For the year, but.
Giuseppe Turchiarelli: In the following months.
Giuseppe Turchiarelli: In June I hope to give you a more.
Giuseppe Turchiarelli: More color on that.
Giuseppe Turchiarelli: So additionally, the dividend that we're going to see how that but also in the clients.
Giuseppe Turchiarelli: Sure.
Thomas: Good evening.
Giuseppe Turchiarelli: <unk>.
Giuseppe Turchiarelli: Early to discuss about this topic.
Isabela Klemes: Okay, thank you, Giuseppe. So with this, we conclude our conference call. The Inversus Relations team is available for any doubts you may have. Many thanks for your attention, and have a great end to the week.
Giuseppe Turchiarelli: Thank you Jackie.
Speaker Change: So with this we conclude our conference call. The Investor Relations team is available for any doubts you may have many thanks for your attention and have a great end of week.
Isabela Klemes: Okay.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect everyone have a great day.
Operator: Okay.
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