Q3 2024 Enel Américas SA Earnings Call
Gigi: Good day, ladies and gentlemen, and welcome to Enella, America's third quarter of 2024 results conference call. My name is Gigi and I'll be your operator for today.
Gigi: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised.
Gigi: To withdraw your question, please press star 1-1 again. Please the advice of today's conference is being recorded.
Speaker Change: This presentation contains statements that could constitute forward-looking statements.
Speaker Change: These statements appear in a number of places in this presentation, and include statements regarding the intent, beliefs, or current expectations of an elameticos, and its management with respect to among other things.
Speaker Change: Anelamadica's business plans, Anelamadica's cost reduction plans, trends affecting Anelamadica's financial condition, or results of operations, including market trends in the electricity sector in Chile or elsewhere.
Speaker Change: Supervision and Regulation of the Electricity Spector in Chile or elsewhere, and the future effect of any changes in the laws and regulations applicable to an
Speaker Change: So, which we're looking statements reflect only our current expectations, are not guarantees of future performance and involve risks and uncertainties.
Speaker Change: Actual results may differ materially from those in the forward-looking statements as a result of various factors.
Speaker Change: 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 describe in an Latin America's integrated annual report.
Speaker Change: Readers are caution not to place undue reliance on these forward-looking statements, which stay only as of their dates. Inelamateca undertakes no obligation to release publicly the result of any revisions to these forward-looking statements, except as required by law.
Speaker Change: I would now like to turn the presentation over to Mr. Jorge Velis in Elamérica's Head of Investor Relations. Please proceed.
Speaker Change: Thank you again.
Speaker Change: Good morning, make commitment and welcome to our third quarter, Trinity IV with subs presentation.
Speaker Change: and post-severals, fairer of industrial relations of the United States.
Jorge Velis: In the coming slides, our CEO, our Lidio Silio, and our CFO, Rafael Delasca, with the same thing the main figures of the video.
Jorge Velis: Netanyur remind you that these presentations would follow with sites that have already been uploaded in the company's website.
Jorge Velis: Sonow in the presentation, we will have the Q&A session.
Jorge Velis: If you want to make a question, please send me to the workers or write us to our coursework in May. Aurelio's dot in an America as NL dot com.
Speaker Change: Let me hand over the quote to Aurelio, who will start by assigning the main highlights of the video.
Aurelio America: Thank you, Jorge.
Aurelio America: Building the third quarter, we saw a significant increase in advancing increased, which in 0.4 billion US dollars.
Aurelio America: This is a line with our strategy of having a more resilient network and you do serve with equality for our customers.
Aurelio America: We're guiding operational indicators, in generation business we have continued a new Olive goto 15 reaching.
Aurelio America: 8800 megawatts of nuclear vaccine 234. In Greece business, we saw an increase in energy demand mainly in Brazil as a consequence of higher temperatures.
Aurelio America: A design of third quarter Richard 0.94 billion USD, which is 6% lower than third quarter of last year.
Aurelio America: This is mainly explained by the depreciation of the UN Reice, which had a negative impact of [inaudible]
Aurelio America: in by-law where the dying generation did nothing along the experiment by the high-rological situation of that country that we will later analyze.
Aurelio America: These negative effects were partially compensated by various results in Argentina and in the generation due to the disease.
Aurelio America: Ross that reaches 5.7 billion dollars.
Aurelio America: and S. Opsicamber, 30% reduction compared to the S. Opsicamber. Explained and fired the reduction in deaths. We have implemented mainly in review, which has been done with the post-seed scums from the sale of proven answers.
Aurelio America: Deeds a lower disc to decrease financial expenses by 33%.
Speaker Change: Before going into the details of our operation, I want financial performance of last quarter, I would like to have a focus on human-edits' significance situations that we are treated in this base.
Speaker Change: First we climb a pincrent that we suffered in some battle a few weeks ago and the high development of the situation that we are seeing in Colombia. That's the game with the situation of an unsumpled and becoming life.
Speaker Change: On October 11th, São Paulo, Detroit, the most intense windstorm in the last 30 years.
Speaker Change: Reads, we're surpassing 117 kilometers per hour, which causes severe damage to our electricity degrees, and this lifting electricity supply to almost 3.1 million customers.
Speaker Change: Thanks to the use of automation systems and remote control of the electrical network, the number of affected customers was reduced by one medium in the same night, and by the end of next day 80% of the customers had their service in that.
Speaker Change: in response to the storm, the company immediately activated so personal plan for extreme weather events and completed the number of teams on the ground.
Speaker Change: The company mobilized a professional for Mitsubishi Mucin Company in Rio and Sara, as well as teams from Chile, Italy, Spain, Argentina. With this, the number of professionals on the ground reached 2,800.
Speaker Change: in the big in its own their own ground. In addition to these and of some quality delivery, the delivery of far-quandrogenerators for essential service searchers, host details.
Speaker Change: We continue work in other two strengthening our infrastructure and improve our emergency protocols.
Speaker Change: and we have mentioned we are investing 6.2 billion Brazilian riots in 24-day-to-day years. Now let's have a focus on hydrology situation of Colombia in the coming life.
Speaker Change: A neurology in Colombia.
Speaker Change: is in a very stressful situation since the last few months.
Speaker Change: after El Mimo Phenomenon.
Speaker Change: I've affected the council last year and the first maps of New Zealand.
Speaker Change: We entered into a neutral phase with the high probability of lamina to arrive.
Speaker Change: Minis higher length of ability. However, La Nina has not arrived and we have been in a dry neutral phase for the next few months.
Speaker Change: with a very few rainfalls in the country.
Speaker Change: Fibrevo de la Belo de Itz-Restalica, LIFO, and Permot de Generations has increased in the significant amount.
Speaker Change: BVS of course is impacting the sports price which as you can see in the lower right, lower right shirt.
Speaker Change: has been increasing significantly since July.
Speaker Change: We have been impacted by the situation due to a reduction in hydrogen generation and an increase in energy per se, per se, at higher prices.
Speaker Change: We are working in other communities of the aim, but with federal actions, such as not increasing sale position in energy contours, operation over the organization of our friends, optimization and monitoring of scope market.
Speaker Change: Field Competition with Regulation and then Associations.
Speaker Change: the coming weeks.
Speaker Change: are going to be crucial in terms of rainfall in order to get the mind the situation that we could face next year.
Speaker Change: Now, let's summarize our investment during this period in your coming class.
Speaker Change: During the third quarter of the year, our capex included by 37% compared to the same pure and glass deal, reaching $450 million.
Speaker Change: It is mainly explained by lower context engineering didn't due to the completion of renewable energy. And it's low down in the developing new projects.
Speaker Change: in line with our structure.
Speaker Change: and however, it is important to highlight that investment in Greece, business included by 30%.
Speaker Change: reaching $.4 billion.
Speaker Change: is the only, the impact of current regulation, practicing greens, ingredients, increases by 44% compared to the 34th of last year.
Speaker Change: 6-3% of total investments were developed at the GDRZU and 3-8%
Speaker Change: where we are reinforcing our commitment with improving service equality.
Speaker Change: In terms of business line, 78% of total tax was devoted to greed in 19% to renewable generation.
Speaker Change: Chios.
Speaker Change: Wilstakis, Richard 149 million dollars.
Speaker Change: Lower than last year, due to lower events in the mid-renewable capacity.
Speaker Change: Let's now analyze our renewable development on slide second.
Speaker Change: During the first nine months of New Zealand, we have a point eight to jigawatts, 800 megawatts of new renewable capacity mainly located in Brazil.
Speaker Change: This implied an investment of $24 billion and it represents a high amount of new capacity compared to the first nine months of last year.
Speaker Change: The occurredly working on additional 0.5 gigawatts of capacity under construction located in Colombia.
Speaker Change: and you can see on the right side of this light we are working on free solar project in the
Speaker Change: which will be furniture between 235 and 236.
Speaker Change: Let's continue with generation of the 8-0 highlights on next slide.
Jorge Velis: Jorge Velis
Jorge Velis: In generation business at the end of this quarter, our spouse Capacet reached 12.9 G.L.S.
Jorge Velis: and an increase of 11%, 11% compared to the same period of 23.
Jorge Velis: from the amount of 98% is renewable and investing investment in generation business as of September reaching reach a bit 4 million US dollars, 400 million US dollars.
Jorge Velis: in the bar sharks on the right. Here's showing our energy balance we both for in America's consolidated and for Colombia, stand alone.
Jorge Velis: and even the hydro situation we are facing in that country.
Jorge Velis: The first column represents our production just energy approaches, and the second column represents the total energy phase.
Jorge Velis: We can see that in the third quarter.
Jorge Velis: and Enel America's level. We are increasing our say by 10% reaching 18-10-10-10-10-10-10-10-10-10-10-10-10-10-10.
Jorge Velis: from this 12.2 data about ours came from our own production in 5.8 data last, and it's all about two to third parties.
Jorge Velis: It sales increased worth many exclaimed and vibrancy.
Jorge Velis: In this case, at Colombia, it is important to highlight the significant reduction in hydrogenation as a consequence of the droughts affecting the country.
Jorge Velis: We were able to partially compensate this with our increased winning of capacity.
Jorge Velis: but it was necessary anyway to increase energy forces to comply with our contracts.
Jorge Velis: is increasing energy purchase, many of these bought price in the stock market was the main reason for our results were negatively affected during this quarter-ingeneration business.
Jorge Velis: Let's now continue with Greece, Operation No. 2, on July 9.
Jorge Velis: and the next episode of the video.
Jorge Velis: Electricity distributed reach 26.4 ton of hours in the third water, which represents an increase of 3% compared to the same period of last year.
Jorge Velis: Compar, by higher safety disease, magnitude higher, which Ohio temperature.
Jorge Velis: We got the number of customers, we had an increase of around 424,000 in the last 12 months, reaching 22.5 million crores in this.
Jorge Velis: SmartMittas, increase by a trick times, reaching 1.2.
Jorge Velis: 1.2,000 in this period, many due to the deployment of some power.
Jorge Velis: Next lab and net rifle customers increase despite the current evaluation impacts.
Jorge Velis: Reflecting the significant investments that we are doing.
Jorge Velis: In terms of quality indicators, we are seeing that Argentina, we do the Soviet and Colombian movement, the Soviet and the Soviet. We have a struggle against difficult extreme-run conditions that affect our metrics.
Jorge Velis: and as we mentioned we are working hard enough that you have a more resilient grid system.
Jorge Velis: Finally, regarding your energy losses.
Jorge Velis: We do it in some Paul and Sarah, we may neglect in the student and in Colombia and what he was in NLVU.
Jorge Velis: Now, Rafael will comment on the financial results of the period that can become inside.
Speaker Change: Merylio explained by day of results in 3, this is the Zendira view to turn to increase.
Speaker Change: [inaudible]
Speaker Change: On a quarter with a cease, a Darwitz, 930 million dollars, which is 4% lower than 3% of La Gia. 4% of the population is in Colombia and Carlos Siga, the president of Brazil.
Speaker Change: In terms of neck income, the first dime model of VGR with which 2.5 billion US dollars, including, and this is very important to learn the line.
Speaker Change: and the positive impact of 1.7 billion can be from the cellopperuvian assets, you know, we recently completed the celloppervian and the way you should not be seeing you should not be seeing that.
Speaker Change: I saw a TV effect with which Cedar Polynesian, the Indian, this TV by basically in line with the cell TV of La Gia.
Speaker Change: Aurelio's death, decreased 30% and auremet death decreased by 65%, mainly lead to the cast, we see it from the same set-terry and affect, and the ability management actions that we are implementing.
Speaker Change: Juli Lanaelais, he did our best day, but on his life, he was here to give the evolution of the present.
Speaker Change: and I'm going to start with the first one, San Dileon.
Speaker Change: [inaudible]
Speaker Change: With this, we get to an EBITDA of $1,000,000 for Q3 2024, which is exactly aligned with last year. FX had a negative impact of $61,000,000, resulting in a reported EBITDA for this quarter of $939,000,000.
Speaker Change: came from Brazil, 36% from Colombia, 3% from Argentina, and 6% from Central America.
Speaker Change: In terms of business line, grids continues to represent the higher part, the higher portion of our results, representing in this period 52% of our total EBITDA. Generation 39% and customers contributes
Speaker Change: with 9% of the total. As for our EBITDA, breakdown on a cumulative basis, page 13.
Speaker Change: During the first nine months, we see that the Vida grew by 7% in a one-linear perimeter. I mean, without considering Peru.
Speaker Change: Generation of business decreased mainly due to arid conditions in Colombia. Grids significantly increased due to weather results in Argentina and Colombia, while customers' business also increased.
Speaker Change: From this, 57% comes from Brazil, 37% of the total from Colombia, while in terms of business, Greece contributes with 52% and Eurasia, 37%.
Speaker Change: Now we will focus on cash flow of our company, page 14.
Speaker Change: Starting from an EBITDA of 3 billion US dollars, which is that net working capital amounted to 0.4 billion, a significant reduction compared to the previous year.
Speaker Change: But this is mainly explained by a normalization of networking capital in Brazil. Some delays in the capex, and this is explaining substantially the networking capital difference of the networking capital when compared to the previous year.
Speaker Change: Taxes paid during the period amounted to $0.5 billion in line with last year, while net debt or net financial expenses had an important decrease in the third quarter due to the liability management that we have done.
Speaker Change: But on a cumulative basis, we remain basically with last year, in line with last year, reaching 0.5 billion.
Speaker Change: With this, transfer and operations amounted to $1.6 billion, an improvement of $0.7 billion compared to the same period of last year.
Speaker Change: After investments for $1.5 billion, including $0.7 billion of growth capex, we led to a free cash flow, positive free cash flow.
Speaker Change: This is very important, of 0.1 billion US dollars. Let me now analyze the data of our company in the following slide.
Speaker Change: Gross debt amounted to $5.7 billion, a decrease of 30% compared to December 2023, mainly explained by debt reduction in connection with the use of proceeds coming from the sale of Peruvian assets.
Speaker Change: in the Americas ASEA, corresponding to a bridge loan with Enel Finance International that was paid after we received the funds from Peru.
Speaker Change: Net debt reached $2.3 billion, a decrease of 65% compared to the end of 2023.
Speaker Change: And this includes free cash flow for $0.1 billion that we saw in the previous slide, net dividend pay for $0.3 billion, extraordinary operations for $4.1 billion mainly related to the payment.
Speaker Change: received from Peruvian assets an FX effect for $0.4 billion in the period.
Speaker Change: In terms of currency and country, we see that Brazil remains as the largest contributor, while the debt at holding level represents 10% of the total, and this is a rounded figure of 600 million US dollars of the Yankee bond expiring in 2026.
Speaker Change: Finally, regarding the cost of debt, we can see a decrease for this period going from 12.2% to 10.5%, mainly explained by our liability actions in Brazil and lower interest rates in Brazil and Colombia, in both.
Speaker Change: On the next slide, Aurelio will conclude our presentation with some closing remarks.
Speaker Change: and Nicolette Garcia-George.
Aurelio America: We are reinforcing our commitment in Brazil by implementing a strong investment plan in great business aimed at having a more resilient network and improving quality for our customers.
Aurelio America: We have solid operational indicators in this period, in which energy demand increased by 3% while in generation we have increased our renewable capacity by 0.8 GW during the year.
Aurelio America: Despite the difficult scenario that we are facing, mainly due to the height of the situation in Colombia and current devaluation in Brazil,
Aurelio America: We were able to obtain solid economic results and maintain a sound financial position, which allows us to execute our tactics plan.
Aurelio America: Finally, let me thank all the teams that worked very hard and relentlessly in facing the extreme situation in Sao Paulo.
Aurelio America: the difficulty in establishing the connection with the clients.
Aurelio America: that we have, and thanks to all the teams in São Paulo, Rio, Ceará, Chile, Argentina, Italy and Spain that we work together in almost all fronts.
Aurelio America: adverse situation.
Aurelio America: showing that we are proud to this to this recovery. There are more to come, we have our investment plans in order to face this situation.
Aurelio America: Let me announce that on November 22nd we will present our 2025-2027 strategic plan.
Speaker Change: And in the coming days, we'll send you the invitation with all the details. Let me hand it to Jorge to close this.
Jorge Velis: Thank you, Aurelio. Thank you, Rafael. Thanks, everybody, for your attention. Now we will begin the Q&A session.
Speaker Change: And the first question comes from Javier Suarez from Medellín, Colombia.
Javier Suarez: The first question is, can you quantify the possible impact of the ongoing drought in Colombia in the latest percent of guidance?
Javier Suarez: And second question is, can you update us on the latest regulatory developments in Argentina?
Javier Suarez: Aurelio Oliveira
Speaker Change: Thank you for the question, maybe I can seem to have to tell the details, but we expect that the hydrological situation will be...
Speaker Change: Let's say, completed by the impact during this year. We do not expect, for the coming periods, more effect on this. Of course, it's not possible to predict whether...
Speaker Change: this kind of phenomena in more than in a medium or long term. So, but considering the impacts on this, we are talking about something
Speaker Change: around for this period of $150 million. That's a recognized part of this effect, the major part of this effect until September, but not related to the coming years because it's not possible.
Speaker Change: We have the actualization of the flags, of the venue, of the exhibition.
Speaker Change: And we are happy with the recognition of inflation, but of course, there are more details to come and I can't wait to hear if we can give you more color regarding the impacts.
Aurelio America: Thank you, Aurelio. Thank you, Javier. Very good question. Aurelio, you said before the impact is around $130 million for the period due to the...
Aurelio America: In any case, we expect that once this extraordinary situation is concluded, we will finalize a recovery mechanism to partially or totally mitigate the effects of COVID-19.
Aurelio America: this impacts. In the meantime, what we are doing is what we have explained at the beginning of the presentation. I mean, not increasing the same position in energy contracts, operational optimization of our plants.
Aurelio America: optimization and monitoring of the export market and having a conversation with the regulators and associations to mitigate this extraordinary impact for 2024.
Aurelio America: and Javier Martinez. Thank you. Thank you.
Speaker Change: Thank you, Rafael. Thank you, Aurelio.
Speaker Change: Please remember that you can send the questions to our webcast.
Speaker Change: Okay, we have a question from Fernando Sánchez.
Fernando Sánchez: Could you provide more color on the measures you are adopting in Colombia to face poor hydrological conditions in case higher rainfall doesn't arrive in the months ahead?
Fernando Sánchez: Thank you for your question.
Speaker Change: We are focusing on the end of this year, 2024, and our actions, of course, we are not increasing our PPAs, our sales on big contracts, right?
Speaker Change: Thank you for your time.
Speaker Change: We have water in our reservoir, but without being able, due to these regulatory measures.
Speaker Change: It's not working, the general regulatory scheme, method that we can generate to meet our contract.
Speaker Change: in the important aspects in order to, not to reveal, but to keep on reinforce
Speaker Change: Thank you very much.
Speaker Change: of the country, but as for today, we are being very prudent in order to not increment our energy contracts or VPAs.
Speaker Change: Thank you, Aurelio.
Speaker Change: Thank you. Next question comes from Tomas Lonzalez.
Speaker Change: During the quarter you paid 1.4 billion debt.
Speaker Change: Two billion debt, you announced, will be reduced shortly.
Speaker Change: When will you expect to repay the remaining 600 million debt?
Speaker Change: and if you can tell us which should be a reasonable financial cost in a yielded basis, considering you are recouping the cost of debt.
Speaker Change: Second question, in addition to considering further debt reductions, when do you expect to pay Sao Paulo pension fund?
Speaker Change: And finally, will you please give us an update on the concession renewal process currently held in Brazil and what are the expectations for this process?
Speaker Change: Javier Hernandez,
Speaker Change: Thank you very much, Tomás, for the question and Miguel for the first one, which is the one related to financial aspects.
Speaker Change: Let me say, Normalized Basics en el Americas.
Speaker Change: So this is a normalized total consolidated financial cost, financial expenses, that we expect to see for the next coming years. So a very significant reduction.
Speaker Change: But, of course, there is a combination of both different things.
Speaker Change: in the reduction of the interest rates expected in the different countries in which we are operating, substantially in Colombia and Brazil, and then due to the liability actions that we have commented before that the company is implementing with the cash received from the sales in Peru, substantially, as you know.
Speaker Change: to reduce the most expensive debt that we have in Brazil. So, 500 or below, 500 million dollars per year would be a normalized financial resource.
Speaker Change: In relation to the remaining $600 million dollars, we are analyzing different alternatives.
Speaker Change: One of them could be.
Speaker Change: and of course we have as well the reduction as an objective of the Salvador's pension fund. This will be the remaining part of the...
Speaker Change: Let's see what opportunities we have, let's see what are the most attractive ones for our investors, and depending on this, we will proceed.
Speaker Change: Regarding the market concession renewal, ANEL probably should open a public hearing.
Speaker Change: Thank you. Bye.
Speaker Change: in this month, in October.
Speaker Change: It's pretty much in line with the decree published in June.
Speaker Change: copies here right so there's no big difference of course we are analyzing and we need to to look at the the details and and so on but in general it's in line with the decree.
Speaker Change: This process will wait.
Speaker Change: We'll end in the beginning of December, right?
Speaker Change: According to the timeline that was published, probably we'll see this process closed, our estimation. Of course, it can change, but it will be closed by April next year.
Speaker Change: That's it.
Speaker Change: That's when we think, more than we think, according to the timeline that will be concluded.
Speaker Change: But as I told you, as I'm telling you, it's pretty much in line.
Speaker Change: The proposals from the regulators in this public hearing are pretty much in line with the decree.
Speaker Change: Of course, we are analyzing the details, we'll contribute to the discussion, not only as a distribution association, but also as anything.
Speaker Change: I think it's moving there.
Speaker Change: in the correct way. Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you. Next question is from Dr. Liberi-Sedla.
Speaker Change: Local media reports that Enel is stated it would be his winning best.
Speaker Change: along to
Speaker Change: and Miguel E. Neuros in energy transition projects.
Speaker Change: Could you provide more color above this?
Speaker Change: Well, thank you for your question. I think, well, of course it's in line with Colombia, it's a country that we...
Speaker Change: We consider it as a relevant country for investment, so it is important this kind of
Speaker Change: Like with you, as you can see, there is a relevant plan to follow up the remedy. And in the next strategic plan that we will talk about, we will give more follow-up on this detail. But again, it's in line with the strategy.
Speaker Change: Thank you, Aurelio. Next question is from Rodrigo Mora.
Rodrigo Mora: Two questions. First one, related to the drought situation in Colombia. Could it last to the end of the first quarter of 2025?
Rodrigo Mora: And the second question is about NHL Pablo. Anel opened a process to end the concession of NHL Pablo. What actions the company can take to convince the authority to avoid this process?
Rodrigo Mora: Thank you.
Rodrigo Mora: Rodrigo, regarding Colombia
Rodrigo Mora: As I was explaining before, it's not easy to predict the hydro and climate situation in the...
Rodrigo Mora: in more than three months, right? It's not me, not Saurelio, you see, but...
Rodrigo Mora: The scientists keep on saying this, it is difficult to predict until now the climate events in the long term or the medium term.
Rodrigo Mora: But we expect that, especially with this situation, considering the hydrological season that in general closes in the beginning of a year or in the end of a year.
Rodrigo Mora: of September in season, we will probably see this situation more clear.
Rodrigo Mora: by the end of this year or by the beginning the next year. So, and let's see, yeah, we are as a company, we are taking all the measures in order to protect our contracts and our position.
Rodrigo Mora: and Andy Allen!
Rodrigo Mora: Again, there are some regulatory measures that changed a little bit what it's been.
Rodrigo Mora: then or what's been reinforced in the previous period.
Rodrigo Mora: It's very important that the company should need to or should generate and use its generation in order to meet the needs.
Rodrigo Mora: We are taking all the measures in order to protect our region and our VPAs.
Rodrigo Mora: With us in San Paolo, it is important to keep on improving our investment plans, right? And our plan to reintegrate more people to...
Rodrigo Mora: to work on our core
Rodrigo Mora: Operational Activities. It is important to keep on
Speaker Change: to the panel to take questions.
Speaker Change: We are just presenting. We need to present our information, the information of our operation and the information that we've done.
Speaker Change: presented this requirement.
Speaker Change: under its own declaration, that it's extreme events, I mean, under extreme events, we will present these extreme events, we will present what we are doing, and we are confident that this project...
Speaker Change: will be managed very well and we are confident that what we are doing is what needs to be done. And we are confident that the results will be better in the next extreme event. Like it was in the competitive extreme event that we had in November last year.
We proved it in the recovery, in all the actions. It's clear that we proved it, so we'll present this and we are confident that the situation will be better.
Speaker Change: I think that's it, no? That's it, yes. Yes, to give you more color on this, Rodrigo. On page number 8, you see that due to the fact that we have...
Speaker Change: Yes, we have already, let me say, operating with more renewable capacity than the one that we had in 2023.
Speaker Change: We have produced or we have moved from 0.2 to 0.8 as you may see in the right side of this chart.
Speaker Change: due to the dry season that I already explained before. So, thanks to the, let me say...
Speaker Change: in Colombia, we saw, let me say, better impact than the one that may be in other conditions we could see.
Speaker Change: This is a very, let me say, anticipated movement due to the new capacity in renewables that we are using to reduce or to mitigate or repeat the impact of the carbon situation in Colombia in terms of noise.
Speaker Change: Go to Beadaholique.com for all of your beading supply needs! Go to www.beadaholique.com for all of your beading supplies needs!
Speaker Change: Thank you. We are receiving a couple more questions about the situation in Sao Paulo, but I think Aurelio already covered the current status. So we'll move to questions from Felipe Flores.
Felipe Flores: Are the tax effects in Peru over after the negative impact of this crisis or should we still see news about this in the next quarters?
Felipe Flores: It's a good question.
Speaker Change: I think it's finished, I don't know how much you want to do tomorrow. It's finished, the only thing is that we need to pay in 2025 the remaining part due to the capital gain, but this is just a natural, let me say.
Speaker Change: Thank you.
Speaker Change: Aurelio Oliveira, Rafael Casarrubio, Jorge Velis
Speaker Change: Okay, now from Cargill, Swaziland.
Speaker Change: Can you explain the reasons for the year-over-year improvement in net working capital?
Speaker Change: which are your expectations for networking capital by the end of the year?
Speaker Change: You highlighted the fact that the free cash flow is possible by September. Should we expect a possible free cash flow by the year-end?
Speaker Change: Thank you, Javier. The answer is yes, we see a positive free cash flow before the dividend payment at the end of the year in an amount which is very similar to the one that we have announced today, so close to 100, 150 million US dollars.
Speaker Change: So the answer is A. Yes, in relation to the net working capital reduction, or absorption, and when compared to the previous year, which is mainly due to the delays in CAPEX and to a lower CAPEX when compared to the previous year.
Speaker Change: These generations are special
Speaker Change: and the generation beyond.
Speaker Change: Thank you, Rafael. Any final questions from Arturo Morua?
Speaker Change: In regards to Colombia, is there any updates in the Guajira region for the development of renewable projects, mainly due to the delay of transmission lines in the zone?
Speaker Change: Thank you Arturo, no news.
Speaker Change: delays on this kind of permitting on this area, right? That's why we moved it to different areas as what we were explaining in our development plans.
Speaker Change: But the Guajira, we still see some delays, especially in transmission lines, but not only this, especially in...
Speaker Change: We have not seen as many support from local government in order to...
Speaker Change: to move forward with the project, so that's why we are seeing some now.
Speaker Change: and let's see, we are monitoring the situation over there in order to see if the scenario changes.
Speaker Change: Thank you.
Speaker Change: What's that?
Speaker Change: Thank you for having me.
Speaker Change: The new concession contract said that the Viscos would have to give up any judicial disputes to sign the new concession contract.
Speaker Change: You received penalties related to last year's policy issues and have contested them in court. This is probably the fifth time for this year's policy event.
Speaker Change: How do you see this point of the concession contract? Would you be willing to pay this penalty to sign the new concession contract?
Speaker Change: Thank you for your question. This is something that we are analyzing. It's not exactly like this, because you don't have to...
Speaker Change: to give up, to win, a lot of these questions.
Speaker Change: discussion not only related to quality but also related to many other things.
Speaker Change: And it's not like this, that you need to give up to everything. That's not our reading.
Speaker Change: to quality related to underground cables related to
Speaker Change: The possibility of commercialization, anything, it's related to...
Speaker Change: issues, that's a war of...
Speaker Change: Let's get some physics points. I prefer to analyze it better and to give you more more complete data.
Speaker Change: Thank you, Aurelio.
Speaker Change: Well, if there are no more questions, we conclude this conference call. Let me remind you that the investor relations team is available for any doubt that you may have. Thanks for your attention.
Speaker Change: This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: Aurelio Oliveira, Rafael Casarrubio, Jorge Velis
Speaker Change: and you
Speaker Change: San Felipe Villagraza, Marlyn Shealey
Speaker Change: Aurelio Oliveira, Rafael Casarrubio, Jorge Velis