Q1 2024 Enel Américas SA Earnings Call
Good day, ladies and gentlemen, and welcome to Enel Americas first quarter 2024 results Conference call. My name is Gigi and I'll be your operator for today to ask a question. During the session you will need to press star one one on your telephone.
We'll then hear an automated message advising your hand is raised.
To withdraw your question. Please press star one one again please.
Be advised that today's conference is being recorded.
This presentation contains statements that could constitute forward looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent belief or current expectations of Enel Americas and its management with respect to among other things.
I know the Americas business plans, and then Americas cost reduction plans and trends affecting enel Americas financial condition or results of operations, including market trends in the electricity sector in Chile, or elsewhere supervision and regulation of the electricity sector in Chile or elsewhere, and the future effect of any changes.
And the laws and regulations applicable to Enel Americas or subsidiaries such forward looking statements were fault, but they reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties actual results may differ materially from those in the forward looking statements.
As a result of various factors. These factors include a decline in the equity capital markets and increase in the market rates of interest in the United States or elsewhere adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Americas integrated annual report readers.
You are cautioned not to place undue reliance on those forward looking statements, which state only as of their dates Enel Americas undertakes no obligation to release publicly the results of any revisions to these forward looking statements except as required by law.
I would now like to turn the presentation over to Mr. Jorge beliefs, and they'll Americas head of Investor Relations. Please proceed.
Okay.
Jorge: Thank you Gigi.
Jorge: Good evening, ladies and gentlemen, and welcome to our first quarter 2020 for results presentation.
Jorge: I'm, the new head of IR and in America.
Jorge: In this position.
Jorge: My head of IR LASA.
Can the CFO role or in America.
Speaker Change: Hey, Bill.
Speaker Change: In the coming slides, our feel how they live with steel.
Speaker Change: CFO, but I find the LASA.
Speaker Change: We'll be presenting the main figures of this period.
Speaker Change: Let me remind you that this presentation will follow the slides that have already been noted in the company's website.
Speaker Change: Following the presentation, we will have the Q&A session.
Speaker Change: If you want to make a question please send it through the webcast.
Speaker Change: Oh, right up to our corporate female.
Speaker Change: And in America.
Speaker Change: I know that's a problem.
Speaker Change: Now, let me hand over the crossover Dahlia Wei.
Dahlia Wei: By outlining the main highlights for you.
Dahlia Wei: Thank you Jorge.
Dahlia Wei: And that may be getting this presentation by highlighting our commitment with our operations in Brazil.
Speaker Change: No.
Dahlia Wei: Two months, we have suffered some extreme weather events and extraordinary Q2 agents out of our control that have affected our services in the last days, we have announced solid investment plan that aims to soldier situation.
Dahlia Wei: We will see more details of these in the next slide.
Jorge: Moving to be squad results EBITDA reached 1.1 billion U S dollar, which represents an increase of.
Jorge: 14% compared to the first quarter of 2023.
Jorge: The improvement is mainly explained by Colombia and to a better result.
Jorge: Which moved from a negative EBITDA in 'twenty three.
Jorge: It's been a positive one.
Jorge: Each quarter.
Jorge: Also had a positive FX effects.
Jorge: Each quarter due to the appreciation of the Brazilian real.
Jorge: Colombian peso.
Jorge: We were able to reduce our cost of debt in about 100 to 80 basis points, reaching an average cost of 11%.
Jorge: It's mainly explained by lower interest rates and review in Colombia, and also by lower debt in Brazil, as part of our liability management strategy.
Jorge: Finally group Inc. Richard.
Jorge: 0.4 billion USD all of these first quarter, an increase of 17%.
Jorge: Compared to the same period last year, mainly explained by better EBITDA and an improvement in Peruvian operations, which as you know are considered below EBITDA.
Jorge: Regarding our Peruvian operations, let me highlight that all of the figures in this presentation are excluding Peruvian assets unless.
Jorge: You indicate the opposite now in the coming slide I will show the details I'd, probably investment trends and great business.
Jorge: Sure.
Jorge: Recently, we announced it.
Jorge: For some volatile in Shanghai.
Jorge: At depth.
Speaker Change: I don't know.
Speaker Change: Billion Reais.
Speaker Change: We deployed in the 'twenty 'twenty four.
Speaker Change: Experience.
Jorge: Implies.
Jorge: Estimates for round two.
Jorge: Really in Brazilian Reais, and one 6 billion Reais per year, you can follow any yeah.
Jorge: Respectively, which represents an increase of over 40% compared to the average.
Jorge: Premium seats.
Jorge: We are increasing our needs.
Jorge: By 1000.
Jorge: 100.
Jorge: 201750 image companion company, respectively, Amy at a grouping.
Jorge: Gatorade, our response to the request of our customers. The main niche FD itself. Our claims includes among other things focus on preventive maintenance maintenance.
Jorge: Increasing prevented preventing branding modernization of natural water keeps up network.
Jorge: Spansion communication channels and customer service.
Jorge: With these two announced plans along with our Capex commitment in our other operations.
Jorge: With total 11 billion Brazilian reais.
Speaker Change: Thank you for <unk>.
Speaker Change: <unk> reinforcing our commitment.
Jorge: Our operations in Brazil.
Jorge: Despite despite most of our energy good.
Jorge: That was something that we have stated in the last few months.
Jorge: We're due to extreme.
Jorge: Weather events and extraordinary situations.
Jorge: Our goal of I'll call them two out of our country, we want to be part of the solution and our early putting our best effort is not that you'll leave behind the surf that servicing problems suffered by our by our customers.
Speaker Change: Let's analyze our investment.
Jorge: Our investment boutiques.
Jorge: Spirit.
Jorge: During the first quarter of this year.
Jorge: Our capex decreased by 4% reaching five.
Jorge: $556 million.
Jorge: We have now set out in our plan, we are looking to be more selective in our investment, especially in renewable projects, 78% of total investments were allocated to Brazil.
Jorge: Sure.
Jorge: We are reinforcing our commitment with improvement improving search quality and preventive maintenance by business line 55 extra churn was invested in Greece and 43% in generation.
Jorge: Asset development Capex matching 200, there may be $2 million.
Jorge: 7% devoted to <unk>.
Jorge: Revolted to renewables.
Jorge: Now in our lives our okay.
Jorge: Highlights on slide number six.
Jorge: In generation, our installed capacity reached 112.2 gigawatts.
Jorge: <unk> to 200 megawatts during the first quarter.
Jorge: Sure.
Jorge: Oh in 98% of our capacity is.
Jorge: Renewables.
Jorge: Net production.
Jorge: In the first quarter, reaching <unk>.
Jorge: Eight seven Terawatt hour.
Jorge: A decrease of 3% mainly explained by a decrease in Colombia, due to lower hydro resource and to a lesser extreme extent, Brazil.
Jorge: Do you know where are we.
Jorge: <unk>.
Jorge: Capacity not capacity.
Jorge: This disciplined disposability.
Jorge: Actually offset by higher hydro production.
Jorge: Cultural cone and Panama.
Jorge: Yeah.
Jorge: From our total production and 97% is emission threep, reflecting our commitment towards bigger organization in the countries we operate.
Jorge: Energy sales increased by 26%, reaching 18, six terawatt hour, mainly due to higher.
Jorge: Sales in Brazil, especially in energy trading, partially offset by lower sales in Colombia due to the.
Jorge: Favorable hydro conditions.
Jorge: We have faced.
Jorge: Either country.
Jorge: On slide seven we will focus on the development of renewable capacity.
Jorge: During the first quarter, we built 200 megawatts.
Jorge: Oh for new renewable capacity located in reviewing Colombia, and our investments in new projects amounted to <unk> $2 billion.
Jorge: We are currently building an additional one one gigawatts of capacity located in Brazil, and Colombia.
Jorge: You can see on the right side.
Jorge: We are working on two projects in Brazil, and in those and stay on therapy.
Jorge: And she was Colombia.
Jorge: Why pursue angra three.
Jorge: Big data is a wind farm of 100 men.
Jorge: 94 megawatts and the other three are solar plants totalizing more than 900 megawatts.
Jorge: And most of this new capacity will be built would be.
Jorge: Andrei.
Jorge: In 2024.
Jorge: Let's continue with grips operational highlights on slide eight.
Jorge: Okay.
Speaker Change: Alex electricity distributed reaching 27, three terawatt hours in the first quarter, which represents an increase of 4% explained by higher sales in Brazil.
Jorge: In Colombia regarding number of customers, we had an increase of around 400 into AG.
Jorge: 491000 in the last 12 months.
Jorge: Months, reaching $22 3 million customers smart maintenance increased around two three times, reaching 884000 in the spirit, mainly due to the deployment in some form.
Jorge: Our net Rob has increased by 15% in the last 12 months, reflecting the significant investments that we have been in our grids the ratio net rod.
Jorge: Also reflect a need for them to growth of 13%.
Jorge: Weather conditions that affect affected our metrics. We have we are working hard in order to have a more resilient.
Jorge: And as already mentioned in the in the in the last days, we have reinforced our investment commitments in Brazil and have defined a set of actions to improve quality. In addition to these in Colombia, the regulator changed their great theory.
Jorge: Ladies indicators, which implied an increase in both sides insight.
Jorge: Now Rafael will comment on the financial results in the coming two hikes fleet structure.
Rafael: Thank you for thank you Aurelio.
Rafael: First of all let me remind you that all the numbers that I'm going to mention here are in U S dollar exposure to U S dollars.
Rafael: Have you done the first quarter reached one $477 million, an increase of 14% mainly explained by better results in Argentina, and Colombia and reached both due to tariff adjustments and positive FX effect in Colombia, and Brazil due to currency appreciation.
Rafael: If we exclude.
Rafael: 'twenty to 'twenty three the restarts of solar assets Castaneda, Dr. Sean <unk>.
Speaker Change: Got it.
Speaker Change: We also exclude the FX impact in this period, we get to an adjusted EBITDA of $110 million, 11% higher than last year.
Rafael: Net financial result was a negative net expense of $181 million, which is slightly lower than last year. This is mainly explained by higher impact of hyperinflation in Argentina, partially offset by lower financial income in Brazil, due to lower cash position.
Rafael: Net income in the first quarter reached 350 $59 million an increase of 16.
Rafael: 8%.
Rafael: This is mainly explained by higher EBITDA and better results in our Peruvian assets considered it already consider it as discontinued operations.
Rafael: In terms of net debt, we see an increase of two 9% compared to December 2023.
Rafael: We will analyze in detail our depth later on.
Rafael: Finally, let me highlight that our shareholders meeting held on Tuesday of proof of final dividend payment of $142 million, which will be paid on may 32024, and with the interim dividend of $170 million paid in January 2020 for us to a total dividend for 2020.
Rafael: Three of 259 million for these periods.
Rafael: On a slightly lower and we will see everyday evolution and breakdown.
Rafael: Starting from $945 million of EBITDA in the first quarter of 2023, we have just closed $35 million coming from sold assets, reaching 910, and 10 million homogeneous pretty vickie.
Rafael: Again, we see that generation decreased mainly explained by Colombia.
Rafael: Each had a significant improvement due to better results in Argentina and Colombia.
Rafael: <unk> improved mainly in Colombia, and others decreased mainly due to higher expenses in Argentina due to as you probably know inflation is pegged to inflation effect that we saw in the previous months.
Rafael: With this we get to an EBITDA loss for some $10 million, which is 11 high 11% higher than last year, considering the same perimeter effects.
Rafael: <unk> had a positive impact of <unk> $78 million, resulting in a reported EBITDA for this quarter of <unk> 77 million.
Rafael: As I mentioned at the beginning of the presentation.
Rafael: So now what reported EBITDA of 59% gain from Brazil, 76% strong Columbia, 5% from Central America in terms of business lines grids represents 53% of our total EBITDA generation, 35% and customers contribute.
Rafael: 11% on a slide number 12, we would have a focus on the cash flow of our company.
Rafael: Starting from one focused on $77 million, we see that net working capital amounted to 200.
Rafael: $81 million, mainly explained by higher accounts payable.
Rafael: Later to energy to Chase us in Colombia, and Central America by substantially mainly in Colombia.
Rafael: Long with capital recycling effect in Colombia, partially partially compensated by lower investments they mentioned in generation in Brazil.
Rafael: Taxes paid during the period do you see the relevant difference compared with the same period of the previous year amounted to $185 million. This is a significant increase compared to last year.
Rafael: And the explanation here is that in the previous year, we completed the mitigated between.
Rafael: Colombia on Enel Green power.
Rafael: Renewal activities, we see navigating power. So the stable base is how you get to the one that we saw in the previous year.
Rafael: With this.
Rafael: The taxes paid during this period this amounts to $185 million.
Rafael: Net financial expenses amounted to $170 million.
Speaker Change: Hi, good about first quarter 2023.
Speaker Change: Due to higher net financial expenses in Colombia.
Speaker Change: America is a stand alone Enel Americas, holding due to hydro to bet, a lower financial income in Brazil related to lower gas for CCM explained by the sale of Fendt anybody guess at the end of 2022 and <unk> in March 2023, so yes to be clear.
Speaker Change: Not increasing.
Speaker Change: Yes.
Rafael: The level of net financial expenses paid.
Rafael: And this is a temporary effect due to the.
Rafael: Note that eliminated cash that we saw in the previous period in 2023.
Rafael: Due to the sale of as I mentioned it before.
Rafael: Yes.
Rafael: And in March 2023.
Rafael: With these funds from operations amounted to $441 million a decrease of 180.
Rafael: <unk> 1 million compared to the same period of last year.
Rafael: After the deadline for the $556 million, including $282 million of growth Capex, we get to a free cash flow of 116 million U S. Dollars now let me analyze the debt of our company in the following slide.
Rafael: Gross debt amounted to $8 4 billion, an increase of 3% compared to December 2023, mainly explained as I anticipated before.
Rafael: How do you get a bit Daniel Americas, Standalone, and then Americas holding related to dividend payments on a capital injection to Brazil, which allowed us to avoid new debt in that country.
Rafael: You can always vary expansion still very expensive net debt reached <unk> 7 billion, an increase of 3% compared to the end of 2023.
Rafael: This includes free cash flow for minor Cedar point 1 billion net dividends paid for minus <unk> 1 billion, an extraordinary operations also minus setup on one mainly related to the partial amortization of VNS Sao Paulos pension fund.
Rafael: As you know this is not a financial processes and operational passive.
Rafael: We conclude that recently and amortization a partial amortization of these passive that is threatening our balance sheet FX impact at all.
Rafael: Loss in Cedar point, 1 billion U S dollars positive CHF, one 1 billion due to the.
Rafael: Devaluation of local currencies in Colombia and Brazil.
Rafael: In terms of Kardashian currently we see that Brazil remains.
Rafael: This is the largest contributor while the data all the levels represent around 20% of their total this is a temporary effect, while we finalized the sale of our Peruvian assets, which will result in a relative relevant caffeine off for the company at around 3.8 billion.
Rafael: U S dollars net of taxes finally regarding the cost of it we can see a decrease for this pediatric line from.
Rafael: 12, 2% to 11% mainly explained by lower back in Brazil, the stock of the debt in Brazil is lower when compared to the same period of the previous year due to the liability management actions that we mentioned before.
Rafael: Interest rates in Brazil, and Colombia.
Rafael: With this.
Rafael: Finalize the financial part of this presentation and on the next slide Aurelio will conclude this presentation with some closing remarks Aurelio. Please proceed.
Aurelio: By implementing lately are clear and strongly right.
Aurelio: Yes, good evening.
Aurelio: Yeah.
Aurelio: Can you hear me yes.
Aurelio: We calculated.
Aurelio: Yep.
Aurelio: Yes.
Aurelio: Yes.
Aurelio: We are integrating our.
Aurelio: Our commitment in Brazil by implementing a clear and.
Aurelio: Strong investment blending grades.
Aurelio: At improving our quality our priority.
Aurelio: We had a solid operational results and maintaining a sound financial position, which allows us to execute our capex plan.
Aurelio: Regarding our corporate simplification process.
Speaker Change: <unk> now got it.
Aurelio: And our faith in the final steps of Sally.
Aurelio: Sadly process.
Aurelio: Ethan.
Aurelio: Finally, let.
Aurelio: Let me highlight that we had our shareholders meeting on Tuesday.
Aurelio: And among other things we have elected our new board of directors and approve it.
Aurelio: I know dividend payments of $142 million to be paid on May 30.
Aurelio: Lightly.
Aurelio: The payment a total payment of up to $169 million for <unk> great.
Aurelio: Jorge.
Jorge: Thank you Aurelio Thank you Rafael.
Speaker Change: Now we will begin the Q&A session.
Speaker Change: And the first question comes from.
Jorge: Certain angle Silas from BTG.
Jorge: Two questions regarding Brazil.
Aurelio: First.
Aurelio: Yes.
Aurelio: Local authorities in Sao Paolo have been advocating to terminate and then sell power local session due to a net analysts quality of service issue.
Aurelio: <unk> investments.
Aurelio: You have mentioned before that this were forced majeure events due to weather demand and strong winds damaging infrastructure that led to the blackouts.
Aurelio: What are the chances that addition succeed in their early termination of your concession.
Aurelio: And the second question regarding Brazil is.
Aurelio: The decree containing the terms of the renewal of the concessions in Brazil will soon be revealed according to the energy Ministry.
Aurelio: The Minister has flagged that if he is considering excluding discussed that have an ongoing concession reservation process from participating in the renewable and even in a license to prevent companies within the same economic group from seeking contract renewal if one of them is undergoing <unk>.
Aurelio: <unk> process.
Aurelio: What are your thoughts on this measures potentially being included in the terms.
Aurelio: Please note that here.
Speaker Change: Thank you I would think of Jorge.
Speaker Change: Sure.
Jorge: Let me take that.
Jorge: A technical process and technically if youll see the indicator thats absolutely no no risk of taking your call.
Jorge: Not.
Jorge: Not that definitely that and it's a problem.
Jorge: Accomplishing all kpis or the quality kpis or 8%.
Jorge: It's not a discretionary cross fit which is our technical process and then on the sub volatile.
Jorge: Meeting all the requirements all of the indicators to <unk>.
Jorge: <unk> so deep deep these allegations are deep.
Jorge: Politically different so.
Speaker Change: It doesn't make sense.
Speaker Change: We are confident that the concession.
Speaker Change: It will be renewed.
Speaker Change: I will have we will have of course as you all know the degree.
Speaker Change: It's not the issue it's not public yet.
Speaker Change: But we are confident that the technical aspect that.
Speaker Change: And they just start knowledge.
Speaker Change: And that.
Speaker Change: Eight.
Speaker Change: That this process is the bad debt and it will be respected so this concession this concession payments.
Speaker Change: And as a follow up.
Speaker Change: We have no doubt that it will be renewed renewals and.
Speaker Change: We urge as what the collateral we assume no debt deals are big condition, but we are confident that it will be it will be renewed.
Speaker Change: Okay.
Speaker Change: Thank you Aurelio.
Speaker Change: And next question is about the cantina.
Speaker Change: What are your plans for <unk>.
Speaker Change: Been some near suggesting that you are no longer planning to sell the asset is there any truth to this.
Speaker Change: What about a toucan will you seek to renew the concession.
Speaker Change: Well.
Speaker Change: Yeah.
Speaker Change: Argentina, we declare we started this process in the in the previous year.
Speaker Change: But we are.
Jorge: We started the process.
Jorge: We are seeing.
Jorge: And following it grew commenced impairments are flat.
Jorge: Expectations of all the countries so for now.
Jorge: We stopped the distraught to them.
Jorge: Following the progress.
Jorge: Political and economic progress.
Jorge: With that we haven't seen big country to re analyze re analyzed the.
Jorge: Yeah.
Jorge: This process I'm talking about that.
Jorge: Of course the <unk>.
Jorge: Dubuque, Shanghai, there that's sort of the asset.
Jorge: So for now we are maintaining.
Jorge: The distribution, let's see let's see the evolution of needs.
Jorge: Forward.
Jorge: The improvement in tinnitus.
Jorge: Economic and regulatory.
Jorge: Regarding chaperone, which are calling about hydro plant.
Jorge: The concession.
Jorge: There.
Jorge: The concession fixed in a light it knowing that last year.
Jorge: But.
Jorge: We've been.
Jorge: We've been attending to a fair request from the government government to operate to beat.
Jorge: This asset until they prepare or define a new annual auction.
Jorge: Two.
Jorge: Just let's say to renew this concession to add there.
Speaker Change: Hi, Ben.
Speaker Change: Operator.
Speaker Change: Of course, we are totally available to support the government in this process. We are operating this et cetera.
Speaker Change: This new renewables more period, no product fob the plant it it cannot be more than one year, which means that in August.
Speaker Change: Before it should be redefined at our our approach.
Jorge: To support the <unk>.
Jorge: That the B.
Jorge: They need an audit should not to.
Jorge: To maintain the operation and two.
Jorge: You maintained.
Jorge: Asset in a good quality.
Jorge: The Argentinian.
Jorge: Population of the country nowhere and and let's see it's not defined it dependent depend on the on the gas.
Jorge: Thank you have a new a new create situations, where we were in our lives but for now we are total available and operating the assets. The Friday government you prepare the next let's say the next phase of Shawcor.
Jorge: Okay.
Speaker Change: Thank you Aurelio.
Speaker Change: Next question is for our CFO.
CFO: Your leverage is low capex, mostly funded and you're still distributing the legal minimum 30% in dividends couldn't.
CFO: Could we expect an extraordinary dividend after you receive the cash from the sale of Peruvian assets or perhaps launch a share buyback.
CFO: Thank you Jorge.
CFO: As you probably know the agency duration industrial net debt to EBITDA is close to one seven times, we felt including Defense fund the EMEA Sao Paulo. So we are comfortable with the situation.
CFO: We have various <unk>.
CFO: Disciplined intentionally financial tenants and we expect to continue in this path.
CFO: The company is not contemplating an increase in potential dividend payout at least for 2024.
CFO: Nope.
CFO: These TV shown off.
CFO: Extraordinary dividend, let me remind you that when we do that.
CFO: Distribution operations, our distribution processes and generation process in Peru will be concluded.
CFO: This will entail.
CFO: A great illustration of our relevant capital regaining our balance sheet.
CFO: So.
CFO: There will be an implicit let me say extraordinary dividend due to the base of the amount to be distributed in this in this video now and 2024. So we are not considering an additional extraordinary dividend because already the group net income for this year will be relevant due to the.
CFO: These capital gains to be registered in our velocity with our balance sheet.
CFO: The operations will be concluded.
CFO: In relation to a potential CE mark et cetera. This is shocking any decision has been taken.
CFO: And this is not at the moment to speak about this potential operation because these are something that.
CFO: Is not has not been considered at the focus of the company at this moment Esa as we mentioned it before is too.
CFO: Use the cash proceeds to be obtained from the sale of generation and distribution assets in Peru for liability management substantially in Brazil. As you know the cost of the debt in Brazil is really expensive for our company and not only for our company.
CFO: The company's operating there so the extra day.
CFO: For the target the strategy of the company the company of Enel Americas is to reduce the most expensive debt as we have.
CFO: In that country.
CFO: The new with new projects there.
CFO: Coming from Peru will be devoted to diesel.
CFO: A review of the most substantial growth in that country and also in Colombia that substantially in Brazil.
CFO: <unk>.
CFO: Although at the new the new debt.
CFO: To finance any capex, so that cheap.
CFO: About the potential of Ivanka is not there at the moment because any decision has been taken out of it.
CFO: On a rig out of EMEA potentially starting out in dividend.
CFO: The answer is no we have not consolidated considering an extraordinary dividend we are not considering an increase in professional dividend payout.
Speaker Change: For this period. Thank you Jorge Thank you Rafa.
Speaker Change: Next two questions from Francisco pass from Santander.
Speaker Change: First one.
Speaker Change: The company's divestment process has made progress during two.
Speaker Change: 2023 2024.
Speaker Change: Also undergone some changes in different context for example, an insider and Argentina distribution assets.
Speaker Change: No longer being sold.
Speaker Change: As a result of which the plant is almost complete give.
Speaker Change: Given this what should be the next step in Enel Americas strategy.
Speaker Change: Our database.
Speaker Change: Thank you Jorge.
Speaker Change: Yes.
Speaker Change: Well.
Speaker Change: Yes.
Speaker Change: A very dynamic process.
Speaker Change: Yes, we are.
Speaker Change: And our lives.
Speaker Change: It was not feasible to advancing these floors it heavy.
Speaker Change: Our renewable sorry renewal of concessions discussion in the knee, though so.
Speaker Change: And.
Speaker Change: I mean that we are seeing some.
Speaker Change: Some improvement.
Speaker Change: Better condition so.
Speaker Change: And the same for Argentina.
Speaker Change: Which makes sense to to stop these projects for us.
Speaker Change: During this period.
Speaker Change: <unk> priority.
Speaker Change: In the short term.
Speaker Change: Of course, we have Peter.
Speaker Change: The accident that we are moving from.
Speaker Change: Selling at in Peru, we need to complete it.
Speaker Change: We are.
Speaker Change: Closing.
Speaker Change: And.
Speaker Change: Short timeframe, so, but we need to finish and we need to conclude this.
Speaker Change: And that is half of what they explained it to.
Speaker Change: Use these funds to reduce and to improve our financial condition.
Speaker Change: With that with our debts.
Speaker Change: And now so with this move human support our priority right now.
Speaker Change: Is it a focus to improve quality.
Speaker Change: Our distribution assets, mainly in Brazil.
Speaker Change: So our our focus we need to.
Speaker Change: It's not only capex. It is also Opex I mean this is Dan I'd also activity that we were explaining.
Speaker Change: Dan the correct and there is an appropriate way to improve our call centers.
Speaker Change: There are lots of operation our activity, but it should be done.
Speaker Change: Got it.
Speaker Change: So.
Speaker Change: Our focus right now is two two.
Speaker Change: To support these operations.
Speaker Change: And as sure.
Speaker Change: Uh huh.
Speaker Change: Of course this.
Speaker Change: These conditions in the concession renewal.
Speaker Change: We want to renew our concession we want to keep on operating and keep on improving.
Speaker Change: Quality of attendance to our to our customers.
Speaker Change: And then in the in the <unk> Alpha water software.
Speaker Change: Business so.
Speaker Change: Especially the special.
Speaker Change: Priority, let's see what comes in in the following in the following year.
Speaker Change: We haven't seen it you will see that generation.
Speaker Change: Business we.
Speaker Change: We have seen that the hydrological conditions cannot can bring another another possibility.
Speaker Change: Pricing, we have seen some possibilities of of course to reduce the cost of capital. So we can activate some projects.
Speaker Change: In the future renewable project, but let's see it's not in our plan but.
Speaker Change: The main.
Speaker Change: Direct sense should should go.
Speaker Change: Move to beat to be two eight.
Speaker Change: But for now as I.
Speaker Change: I repeat is to rebalance.
Speaker Change: Financial position in order to support this priority, which means that to improve the quality of our distribution distribution on that.
Speaker Change: Improving the situation improvement it hasnt made strides in cost of capital.
Speaker Change: All the effort that we're doing in improving our financial position.
Speaker Change: We can we can see.
Speaker Change: Data and other alternatives for the coming in the coming years, but the main thing here is that the hopper with explaining that we ought to.
Speaker Change: Improving our financial position, we have a sound financial position.
Speaker Change: Different to other competitors I mean, especially in a in a.
Speaker Change: In a theater that we have higher.
Speaker Change: So once we enter EBIT space in a very good shape.
Speaker Change: That should meet our and having our strategic options for the company.
Speaker Change: Coming years.
Speaker Change: Thank you Aurelio.
Aurelio: And the second question from tranches of capacity.
Aurelio: Regarding Colombia.
Aurelio: Given the water crisis that Colombia has experienced in recent months, which reached its peak in the first weeks of April.
Aurelio: What should we expect to be the impact on the company's results in the Colombian operations in the next quarter.
Speaker Change: Yeah.
Speaker Change: We are.
Speaker Change: We are you are referring to.
Speaker Change: I didn't understand the question, referring to the spot prices are too.
Speaker Change: Or two related to changes in regulatory changes.
Speaker Change: Got it.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: The situation, but I don't think Colombia.
Speaker Change: A potential situation of gdansk in Colombia for the second quarter of <unk>, we expect.
Speaker Change: Any potential impact in terms of results for our activities.
Speaker Change: Activities into account okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: That's the point.
Speaker Change: If you want I kind of thought about earlier by underlining that data of course ankle.
Speaker Change: Yes. Thank you.
Speaker Change: Ration in Colombia has improved.
Speaker Change: And here in the last two weeks as you know the level of their restaurant in the country at around 33%, which is a little bit better than the situation that we saw and one more for a couple of weeks ago.
Speaker Change: Designation was.
Speaker Change: First of all is around 25, 27%. So the situation is a little bit better.
Speaker Change: We hope that's it.
Speaker Change: Duration industrial rates improve in the second quarter, particularly in May.
Speaker Change: But let's see what happens of course for us.
Speaker Change: The situation in <unk>.
Speaker Change: So prices could impact <unk>.
Speaker Change: Activity is saying.
Speaker Change: Generation activities in Colombia, because of the spot prices.
Speaker Change: We'll increase good increase in that case and of course, the rest of us that I said one of our assets.
Speaker Change: In Colombia, I, even though asset in Colombia.
Phil: This is Phil.
Phil: Let's see what happens and we hope the situation.
Speaker Change: In close.
Speaker Change: Particularly I repeat it here.
Speaker Change: Randy said during this month.
Speaker Change: But.
Speaker Change: Of course, we think that the government and the authorities.
Speaker Change: I don't know a lysine very closely the situation.
Speaker Change: And it seems that the situation in process.
Speaker Change: So fast.
Speaker Change: Awaiting data, we do not see we will not see a rationalization measures announced that some weeks as always hurdle. So.
Speaker Change: We are very confident with the with a potential new situation of situation industrial range in the country, but we cannot anticipate any impact.
Speaker Change: Yes.
Speaker Change: Our activity of that.
Speaker Change: Thank you Rafa.
Rafa: I agree I agree with that.
Speaker Change: If I may.
Speaker Change: Yes, it is very important because it.
Speaker Change: No matter, where nino lining them.
Speaker Change: There is a.
Speaker Change: Of course, we see some improvements but that situation operate that bancolombia is.
Speaker Change: So bad I mean with that.
Speaker Change: The dry season.
Speaker Change: Depth needs mid March or so.
Speaker Change: The situation.
Speaker Change: Increase the reservoir so.
Speaker Change: We are we are prepared it but.
Speaker Change: But that's how I'd say it.
Speaker Change: It's too early to see that.
Speaker Change: Beginning our favorite will will change completely in that situation I think it's too early to too juicy, but commercially and <unk>.
Speaker Change: Especially the location that we have our plants.
Speaker Change: We are confident that we are well prepared to Joanna situations.
Speaker Change: Thank you.
Speaker Change: Next question comes from Jordan Sadler.
Jordan Sadler: From caliper in Peru.
Jordan Sadler: And it's regarding the sale of analyst to do something.
Jordan Sadler: Peruvian antitrust regulator already approved the deal in this center and how much time do you expect the deal to be closed.
Jordan Sadler: Yes.
Jordan Sadler: We are we expect that the main the main issues I mean in the quarter authorization.
Jordan Sadler: As you said what.
Jordan Sadler: Done.
Jordan Sadler: We are expecting a especially the authorization from the Chinese antitrust.
Jordan Sadler: Later.
Jordan Sadler: We are.
Jordan Sadler: We are on timing.
Jordan Sadler: Figured out of our schedule.
Jordan Sadler: So we expect in the first half as we've said in the first half of this year.
Jordan Sadler: We will we will have this data.
Jordan Sadler: <unk> completed.
Jordan Sadler:
Speaker Change: I don't think we have any.
Speaker Change: Any major issues should be to complete the separation with the deal. So our I mean, we expect to give you more.
Jordan Sadler: More information on that as soon as we have done.
Jordan Sadler: During this process.
Jordan Sadler: Everything gets done there.
Jordan Sadler: The timeline that we established at the beginning.
Jordan Sadler: Okay.
Speaker Change: Thank you.
Speaker Change: And we'll have a final question coming from a year ago.
Speaker Change: What is your plan for the remaining two wind projects in Columbia, following the impairment of when pitching.
Speaker Change: Yeah.
Speaker Change: And the second question following on linear in Colombia should we expect the divestment of the remaining thermal plant in Colombia.
Speaker Change: Thank you. Thank you for the question Felipe.
Speaker Change: We are.
Speaker Change:
Speaker Change: I mean.
Speaker Change: We maintained theres no new issues regarding <unk>.
Speaker Change: Regarding our hour hour plane.
Speaker Change: Yes.
Speaker Change: I'm trying to find a solution.
Speaker Change: Solutions for <unk>.
Speaker Change: For this especially for the wind projects that we have in.
Speaker Change: In Colombia.
Speaker Change: As you know we have some.
Speaker Change: I mean, it's not only for us, but the agenda in Colombia.
Speaker Change: The process is the lane.
Speaker Change: Ah substantially in terms of timing.
Speaker Change: We expect the gas on that drug.
Speaker Change: To be more.
Speaker Change: It won't be etcetera accelerate this process.
Speaker Change: Of course.
Speaker Change: Altogether, we have communities and so on but having the leadership they got so we.
Speaker Change: We expect that.
Speaker Change: Improving this project probably who.
Speaker Change: Who knows we have a very good pipeline of projects, we can reactivate more projects until now that is no.
Speaker Change: <unk> planned, but we are waiting, Florida, Florida acceleration in terms of the meeting.
Speaker Change: Second the new projects I repeat that not only for us but.
Speaker Change: For our project in Columbia.
Speaker Change: And Oh.
Speaker Change: Very good both niche lending capability that Colombia has in terms of renewable.
Speaker Change: This is something that Columbia should take more advantage to beef.
Speaker Change: And not so important for the country reported for the year.
Speaker Change: Population important for the community. So again, we are not doing that.
Speaker Change: They did things in terms of the project debt that or try to invest in it.
Speaker Change: Additional pros it when youll see that the conditions of permitting it's not a it's not a reliable.
Speaker Change: Mainly reliable it's not the word but I mean, some effective approvals to move forward with it.
Speaker Change: With this approach in term of thermal plants that we follow with few followed with Gabon Guide the organization process.
Speaker Change: This is a longer term view.
Speaker Change: As a medium term view.
Speaker Change: It's not something opportunistic we still believe that the renewal book the way.
Speaker Change: Is the very best way that we can contribute with the climate change for the electrification of countries in our in our region not only in a range about the worldwide.
Speaker Change: So are we.
Speaker Change: We follow the plan of the Carbonization Theres no new regarding these of course, we are.
Speaker Change: Proactive and pragmatic in terms of.
Speaker Change: This approach than that and that.
Speaker Change: And Dewey.
Speaker Change: <unk> doing it in appropriate way and in our fairway.
Speaker Change: So.
Speaker Change: We maintained our focus scheme de carbonization, we maintain bulk with the renewable assets.
Speaker Change: We have been announced.
Speaker Change: During these years.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Well if there are no more questions, we'll conclude the results conference call.
Speaker Change: Let me remind you that the Investor relations team is available for any doubts that you may have thanks for your attention.
Speaker Change: Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
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Speaker Change: Okay.
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Speaker Change: Okay.
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Speaker Change: Okay.
Speaker Change: Yeah.
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