Q4 2024 Enel Americas SA Earnings Call
Gigi: Good day, ladies and gentlemen, and welcome to Enel America's fourth quarter 2024 results conference call. My name is Gigi, and I'll be your operator for today. At this time, all participants are in a listen-only mode.
Hello, Medicos or its subsidiaries 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 in the forward looking statements as a result of various factors these factor.
Operator: 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 in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets, an 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 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 result 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 Velis Espinosa, Enel Americas' Head of Investor Relations. Please proceed.
Gigi: Or is that 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.
Gigi: Other factors described in Enel Americas integrated annual report.
Speaker Change: Readers are cautioned not to place undue reliance on those forward looking statements, which states only as of their dates and melamed. He goes 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 Ms.
Speaker Change: What heavily Enel Americas head of Investor Relations. Please proceed.
Jorge Velis Espinosa: Thank you, Gigi. Good afternoon, ladies and gentlemen, and welcome to our Q4 2024 results presentation. I'm Jorge Velis Espinosa, Head of Investor Relations of Enel Americas. In the coming slides, our CEO, Aurelio Bustilho de Oliveira, and our CFO, Rafael de la Haza Casarrubio, will be presenting the main figures of this period. Let me remind you that this presentation will follow the slides that have already been uploaded on the company's website. Following the presentation, we will have the Q&A session. If you want to make a question, please send it through the webcast or write us to our corporate email, ir.enelamericas@enel.com. Now, let me hand over the call to Aurelio, who will start by outlining the main highlights of 2024.
Speaker Change: Thank you Gigi good afternoon, ladies and gentlemen, and welcome to our fourth quarter 2020 for results presentation.
Speaker Change: Hum.
Speaker Change: Head of Investor Relations stuff, and then I'll, let you guys know.
Speaker Change: The coming slides, our CEO Aurelio was steel and our CFO, but I find that Isa will 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 uploaded in the company's website.
Speaker Change: Following the presentation, we will have the Q&A session.
Speaker Change: Want to make a question. Please send it through the webcast or right up to our corporate email.
Speaker Change: And in America.
Speaker Change: Dot com.
Speaker Change: Now, let me hand over the call who will start by outlining the main highlights of 2024.
Aurelio Bustilho de Oliveira: Thank you, Jorge. During 2024, we had a relevant 16% increase in investments in grids, in line with our strategy of having a more resilient network and improving service quality for our customers. As we announced it in our Investor Day last November, this will be the main focus of our company in the coming years. In generation, we added 0.8 GW of new capacity in 2024, and our investments have led to an increase in solar and wind generation by 23%. EBITDA in 2024 reached $3.7 billion, in line compared to 2023. Despite the complex scenarios in terms of FX, hydrology in Colombia, and curtailments in Brazil, we were able to have a good performance and offset a difficult situation, as we will see in the next slide.
Thank you Jorge.
Speaker Change: During 2024, we had that relevant 16% increase in investments increased in line with our strategy of having a more resilient network and improving service quality for our customers as we announced it in our Investor Day last November this will be the main focus of our company to come.
Speaker Change: Yes.
Speaker Change: Generation, we had we added 0.8 gigawatts of new capacity in 2024, and our investments have led to an increase in solar and wind generation by 23% EBITDA.
Speaker Change: EBITDA in 2024, which is at $3 7 billion U S dollars in line compared to 2023.
Speaker Change: Despite the complex scenarios in terms of effects.
Speaker Change: Between Columbia and curtailments in Brazil, we were able to have a good performance in that.
Speaker Change: Offset a difficult situation.
Speaker Change: As we will see in the next slide.
Aurelio Bustilho de Oliveira: This year, we reached a record net income, which will allow us to pay close to $0.8 billion of dividends to our shareholders, increasing our dividend per share by 3 times. Before going to details of our operation and financial performance of last period, I would like to have a general view on the scenario that we faced in 2024. 2024 was a complex year. We faced a difficult hydro scenario in Colombia that had significant impact in our results, with hydrology below the historical average in April, July, and August, where it was at historical lows. During October and November, we faced limitation in our hydro production due to the shortage risk, leading us to increase our purchase in the spot markets at very high prices. We also continued to see extreme weather events in Brazil that led to blackouts.
Speaker Change: This year, we reached a record net income, which will allow us to play close to zero point $8 billion of dividends to our shareholders.
Speaker Change: Increasing our dividend per share by three times.
Speaker Change: Before I go into details of our operation and financial performance of that Spirit I would like to have a general view on the scenario that we face in 2024.
Speaker Change: Thank you guys for it was a complex year with.
Speaker Change: We face a difficult hydro scenario in Columbia that had significant impact in our results.
Speaker Change: Hydrology below the historical average in April July and August where it was.
Speaker Change: <unk> loss.
Speaker Change: During October and November we face it limitation in our hydro production due to the shortage breached leading us to increase our purchase in the spot markets at very high prices.
Speaker Change: We also continue to see extreme weather events in Brazil that led to blackouts.
Aurelio Bustilho de Oliveira: However, our company has improved in client reconnection, response, and communications. A continuous improvement, faster and more effective reaction. Curtailment in Brazil has another challenge in 2024, with around a 3% loss of our wind and solar generation due to this situation. Most of it in Q4, generation impact of less $90 million. In addition to this, currencies in the region suffered important devaluation in Q4, especially in Brazil. The impact in our 2024 results was around $100 million at EBITDA level. We successfully completed our asset disposal plan in Peru. The proceeds from these sales allowed us to optimize our financial situation and put the company in a very comfortable and flexible position to face the coming challenges and opportunities that we see ahead. Now, let's analyze our investments of the period in the coming slides.
Speaker Change: Over.
Speaker Change: Our company has improvement in clients' Reconnection response, and communications are continuous improvement faster and more effective reaction.
Speaker Change: Curtailment in Brazil has another challenge in 2024 with around a 3% loss of our wind and solar generation due to its Judy situations most of it in the third and.
Speaker Change: Fourth quarter generation impact of less 90 million U S dollars.
Speaker Change: In addition to these currencies in the region suffered an important devaluation in the fourth quarter, especially in Brazil.
Speaker Change: The impact in our two integrated four results was around 100 million at EBITDA level.
Speaker Change: We successfully completed our asset disposal plan in Peru.
Speaker Change: The proceeds from these sales allowed us to optimize our financial situation.
Speaker Change: And put the company in a very comfortable and flexible position to face the coming challenges and opportunities that we see ahead now.
Speaker Change: Now, let's analyze our investments of the period in the coming slide.
Aurelio Bustilho de Oliveira: During Q4, our CapEx decreased by 16% compared to the same period of last year, reaching $577 million. This is mainly explained by lower CapEx in generation due to the completion of renewable projects, and a slowdown in developing generation new project. Pretty much in line with what we announced in our strategic plan about being more selective in our investments in renewables. However, it is important to highlight that investments in grids, in distribution business, increased by 37%, reaching $0.4 billion. 55% of the total investments were devoted to Brazil and 31% to Colombia. Argentina represents 13% of the total, reflecting the increasing relevance of this country in our company. In terms of business line, 65% of total CapEx was devoted to grids and 29% to renewables. Growth CapEx in grids totaled $90 million, a 65% increase reflected across all our concession areas.
Speaker Change: During the fourth quarter, our capex decreased by 16% compared to the same period of last year, reaching $577 million.
Speaker Change: This is mainly explained by lower Capex in generation due to the completion of renewable projects and Thats slowed down in developing new projects generation New project.
Speaker Change: Pretty much in line with what we announced it in our stock.
Speaker Change: Basic Glenn about being more selective in our investments in renewables. However, it is important to highlight that investments in Greece and distribution business increased by 37%, reaching <unk> $4 billion.
Speaker Change: 55% of the total investments were devoted to Brazil and 31%.
Speaker Change: Yes.
Speaker Change: And that represents 13% of the total reflecting the increasing relevance of this country in our company.
Speaker Change: In terms of business line, 65% of total Capex was devoted to grips and 29% to renewals.
Speaker Change: Gross capex in Greece totaled $90 million.
Speaker Change: At 65% increase reflected across all of our concession areas.
Aurelio Bustilho de Oliveira: Let's now analyze grids operational highlights in slide 6. Electricity distributed reached 27.1 TWh in Q4, which represents an increase of 0.3% compared to the same period last year, explained by higher sales in Brazil, partially compensated by lower sales in Argentina and Colombia. Regarding number of customers, we had an increase of around 414,000 in the last 12 months, reaching 22.6 million customers. smart meters increased by almost 2 times, reaching 1.4 million in this period, mainly due to the deployment in São Paulo. Net RAP and Net RAP per customers increased by 22% and 20% respectively, isolating the impact of currency devaluation. This reflects the significant investments in our grids. In terms of quality indicators, we can see that SAIDI improved in all subsidiaries except from Enel Rio, mainly due to the intensity of weather events, especially in the first part of the year.
Speaker Change: Let's now analyze greets operational highlights in slide six.
Speaker Change: Alex electricity distributed reached 27 point to one terawatt hours in the fourth quarter, which represents an increase of 0.3% compared to the same period last year.
Speaker Change: Blaine and by higher sales in Brazil, partially compensated by lower sales in Argentina and Colombia.
Speaker Change: Regarding number of customers we have.
Speaker Change: An increase of around 414000 in the last 12 months, reaching $22 6 million customers.
Speaker Change: Smart meters increase it by almost two times, reaching $1 4 million in this period, mainly due to the deployment in Sao Paolo.
Speaker Change: Net drop in net Rab per customers increased by 22% and 20% respectively isolating the impact of currency devaluation.
Speaker Change: This reflects the significant investments in our grades.
Speaker Change: In terms of quality indicators.
Speaker Change: We can see that <unk> prove it in all subsidiaries except from Enel.
Speaker Change: And a real mainly due to the intensity of weather events, especially in the first part of the year.
Aurelio Bustilho de Oliveira: Regarding SAIFI, we were able to improve in Colombia and São Paulo. Regarding energy losses, we improved in São Paulo and remained flat in Colombia, but increased in Rio, Ceará, and Edesur, and this is mainly a consequence of higher temperatures registered in the Q4. Let's continue with generation operational highlights. During 2024, we added 0.8 GW, 800 MW of new renewable capacity through the projects Arinos and Pedra Pintada in Brazil, and Guayepo in Colombia. This implied an investment of $0.5 billion. With this, we reach a 12.9 GW of installed capacity, from which 98% is renewable. We currently have 0.5 GW of capacity under construction, and these are solar projects located in Colombia, which will be finished between 2025 and 2026.
Speaker Change: Regarding sorry, if we were able to improve in Colombia, and some Paolo.
Speaker Change: Regarding energy losses, we prove it in some borrowing remained flat in Colombia, but increase it in Rio and.
Speaker Change: And this is mainly a consequence of higher temperatures resistors in the fourth quarter, let's continue with generation operational highlights.
Speaker Change: During 2024.
Speaker Change: We added 0.8, Gigawatts 800 megawatts of new renewable capacity through the project's arenas and therapy data in Brazil, and Guangzhou Airport in Colombia, These implied and in fast length of zero point $5 billion.
With this we reached 12.9 gigawatts of installed capacity from which 98% is renewable.
Speaker Change: We currently have 0.5 gigawatts of capacity under construction and this solar projects really located in located in Colombia, which will be finished between 'twenty to 'twenty five actively defended six.
Aurelio Bustilho de Oliveira: Regarding our energy balance, we can see that on a cumulative basis, we saw a 1% increase in sales explained by Brazil, with 40.4 TWh coming from our own production and 25.4 TWh from purchases. On a country basis, Colombia saw a reduction in hydro generation as a consequence of the stressed hydro condition of the country during this year. We were able to partially compensate this with our increased solar capacity, but it was necessary to increase energy purchase to comply with our contracts. In the case of Brazil, we would like to highlight the significant increase in renewable production, thanks to the new capacity that we have added during the year. You can see the detail for both countries' energy balances in the annex of our presentation. Now, Rafael will comment on the financial results of the period in the coming slide.
Speaker Change: Regarding our energy balance sheet.
Speaker Change: We can see that on a cumulative basis, we saw a 1% increase in sales explained by Brazil.
Speaker Change: With 44.
Speaker Change: Coming from our own production and $25 four hour from purchases.
Speaker Change: Our country basis.
Colombia saw a reduction in hydro generation as a consequence of the stress it hydro conditions in the country of the country. During this year.
Speaker Change: We were able to partially compensate this with our increase at solar capacity.
Speaker Change: But it was necessary to increase energy purchase to comply with our contracts.
Speaker Change: In the case of Brazil, we would like to highlight the significant increase in renewable production.
Thanks to the new capacity that we have added during the year.
Speaker Change: You can see the detail for both countries energy balance.
Speaker Change: In the annex of our presentation.
Speaker Change: Now I will comment.
Speaker Change: On the financial results of the data in the coming slides.
Rafael de la Haza Casarrubio: Thank you very much, Aurelio. stratosphere 1 Buenas tardes a todos. EBITDA in 2024 reached $3.7 billion, in line with last year's EBITDA. This result is explained by better results in Argentina and Central America, offset by lower EBITDA in Colombia and Brazil due to currency devaluation in both countries, and a worse performance in generation in Colombia due to hydro conditions, as Aurelio mentioned before. On a quarterly basis, EBITDA reached $724 million, which is 15% lower than Q4 of last year, mainly due to lower result in generation in Colombia and currency depreciation in Brazil and Colombia. In terms of net income, during 2024, we reached $2.6 billion, including the positive impact of $1.7 billion coming from the sale of our Peruvian assets.
Aurelio: Thank you very much aurelio.
Speaker Change: When I started as our dollars.
Speaker Change: In 2024 reached $3 7 billion U S dollars.
Speaker Change: In line with last year.
Speaker Change: This result is explained by better results in Argentina, and Central America, offset by low whatever you think Colombia, and Brazil due to currency devaluation in both countries and our spent four months in generation in Colombia due to a recommendation conditions as Aurelio mentioned before.
Speaker Change: On a quarterly basis.
Speaker Change: EBITDA reached $724 million, which is 15% lower down fourth quarter of last year, mainly due to lower resulting generation in Colombia and currency depreciation in Brazil and Colombia.
Speaker Change: In terms of net income during 2024 will reach a $2 6 billion, including the positive impact.
Speaker Change: $1 7 billion coming from the sale of our Peruvian assets.
Rafael de la Haza Casarrubio: Isolating this effect, as you may see in the slide, we reached $0.9 billion in this period, basically in line with same period of last year. Our gross debt decreased by 35%, mainly due to liability management actions and currency devaluation. We will analyze in detail our debt later on. On slide number 10, we will see EBITDA evolution and the breakdown of it. Slide number 10, starting from $848 million of adjusted EBITDA in Q4 2023, we see that generation came in line with last year, with new capacity in Brazil and higher generation in Central America offsetting the challenging hydro conditions in Colombia, while grids improved mainly due to better results in Brazil.
Speaker Change: Isolating this effect as you may seen the light we've reached <unk> $9 billion in this period basically in language same periods of last year.
Speaker Change: Our gross debt decreased by 35%, mainly due to liability management actions and currency devaluation, we will analyze in detail on what does that later on on our slide number 10, we will see EBITDA evolution on the breakdown of it.
Speaker Change: Slide number 10, starting from 848 million of adjusted EBITDA in the fourth quarter of 2023, we see that generation came in line with last year with new capacity in Brazil.
Speaker Change: Generation in Central America, offsetting the challenging the challenges.
Speaker Change: Challenging either conditions in Colombia.
Speaker Change: While rates improved mainly due to better results in Brazil.
Rafael de la Haza Casarrubio: Finally, customers decreased in Brazil and Colombia. All in, we get to an adjusted EBITDA of $852 million for Q4 2024, in line with the same period of 2023. FX had a negative impact of -$128 million due to currency devaluation in Brazil and Colombia during the quarter, resulting in a reported EBITDA for this quarter of $724 million. From our reported EBITDA, 69% came from Brazil, 25% from Colombia, and 7% from Central America. While in terms of business line, grids represents 61% of our total EBITDA, generation 30%, and customers contribute with 10%. As for our EBITDA breakdown on a cumulative basis, we move to slide number 11. As you may see here in this chart, for 2024, we see that EBITDA grew by 3% in homogeneous perimeter and isolating FX impact. Generation decreased mainly due to hydro conditions in Colombia.
Speaker Change: Finally customers decreased in Brazil, and Colombia, and only we get to an adjusted EBITDA of $852 million for the fourth quarter of <unk>.
Speaker Change: <unk> 24 in line with the same period of 2023, FX had a negative impact of $128 million due to currency devaluation in Brazil, and Colombia during the quarter.
Speaker Change: Resulting in a reported EBITDA for this quarter of 724 million U S dollars.
Speaker Change: Our reported EBITDA of 69% came from Brazil, 25% from Colombia.
Sandy: Sandy from Central America.
Sandy: In terms of business line with <unk> represents 61% of the total of our total EBITDA generation of 30% and customers contribute with 10%.
Sandy: Whatever you do break it down on a monthly basis as we move to slide number 11.
Sandy: As you May see here in this chart for 2020 before we see that EBITDA grew by 3% in homogeneous perimeter and isolating FX impact.
Sandy: Generation decreased mainly due to hydro conditions in Colombia grades significantly increased due to better results in Brazil, Argentina, and Colombia and customers came in line with the previous year.
Rafael de la Haza Casarrubio: Grids significantly increased due to better results in Brazil, Argentina, and Colombia, and customers came in line with the previous year. FX had a negative impact of $100 million, mostly coming from Brazil and partially offset by Colombia, reaching a reported EBITDA of $3,735 million, slightly higher when compared with the previous year, 2023. From this EBITDA, 59% comes from Brazil and 35% from Colombia. While in terms of business lines, Grids contributes with 35% of the total and generation with 36%. Now, we will focus on the cash flow of our company in slide number 12. Starting from an EBITDA of $3.74 billion, we see that net working capital amounted to $0.11 billion, a significant improvement compared to last year, mainly explained by lower executed CapEx in Brazil due to the completion of the renewable projects.
Sandy: FX out that negative impact of $100 million, mostly.
Sandy: Mostly coming from Brazil, and partially offset by Columbia.
Sandy: In our reported EBITDA of three 3730 $5 million and slightly higher when compared with the previous year 2023.
Sandy: So on this end.
Sandy: 59% cash accounts from Brazil, 35% from Columbia, while in terms of business lines grids contributes with 35% of the total generation with 36%.
Sandy: Now we will focus on the cash flow of our company in a slide number 12.
Starting from starting from an EBITDA of $3 $74 billion, we see that net working capital amounted to Cedar point.
Sandy: $11 billion U S dollars, a significant improvement compared to last year, mainly explained by lower execute at Capex in Brazil due to a completion of the renewable projects.
Rafael de la Haza Casarrubio: Taxes paid during the period amounted to $0.57 billion, lower compared with last year, while financial net expenses had an important decrease due to the liability management actions that we have implemented with the proceeds coming, as we mentioned before, from the sale of our Peruvian assets. With this, funds from operations amounted to CLP 2.4 billion, an improvement nearly to $0.8 billion compared to the same period of the previous year. After investments for CLP 2.1 billion, as Aurelio mentioned before, we get to a free cash flow of $0.3 billion at the end of 2024. Now, let me analyze the debt of our company in the following slide, which is the slide number 13.
Sandy: Taxes paid during the period amounted to <unk> 57 billion.
Sandy: Compared with last year.
Sandy: While financial make their spaces, a heck of an important decrease due to the liability management actions that we have implemented with the proceeds come in as we mentioned before.
Sandy: The sale of our Peruvian assets with these funds from operations amounted to $2 4 billion an improvement of nearly two cedar point.
Sandy: $8 billion compared to the same period of the previous year after investments for $2 1 billion as Aurelio mentioned before we have to on a free cash flow of <unk> 3 billion U S dollars.
Sandy: End of 2024 now let.
Sandy: Let me analyze the data of our company in the following slide which is slide number 13.
Rafael de la Haza Casarrubio: Gross debt amounted to CLP 5.2 billion, a decrease of 35% compared to December 2023, mainly explained by debt reduction in connection with the use of proceeds coming from the sale of our Peruvian assets, as well as currency devaluation in our main markets. In this sense, we reduce our debt in Brazil by $2.1 billion, as you may see on the left side of this chart. We also see a reduction in Colombia, mainly due to FX effect and in Enel Americas, Enel Americas standalone, corresponding to a bridge loan that was paid after we received the funds from Peru. Net debt reached $2.1 billion, a decrease of 65% compared to the end of 2023.
Sandy: Gross debt amounted to $5 2 billion, a decrease of 35% compared to December 2023, mainly explain by debt reduction in connection with the use of proceeds coming from the sale of our Peruvian assets as well as currency devaluation in our main markets.
Sandy: In the SaaS will reduce our debt in Brazil by $2 1 billion U S dollars as you may see on the left side of this chart.
Sandy: We also see a reduction in Colombia, mainly due to FX effect.
Sandy: Americas.
Sandy: And then Americas Standalone corresponding to a bridge loan that was paid after we received we received the funds from <unk>.
Sandy: Net debt reached $2 1 billion in U S dollars, a decrease of 65% compared to the end of 2023.
Rafael de la Haza Casarrubio: This includes, as I mentioned in the previous slide, free cash flow for $0.3 billion, net dividends paid for $0.5 billion, extraordinary operations for $4 billion, mainly related to the payment of the assets I mentioned at the sales in Peru, an FX effect for $0.6 billion. In terms of currency and country, we see that Brazil remains as the largest contributor, while the debt at the holding level represents only 11% of the total. Just to remind you, this is the Yankee bond that we have that is going to expire in October 2026. Finally, regarding the cost of debt, we can see a decrease for this period, going from 12.2% to 10.3%, mainly explained by our liability actions in Brazil and lower interest rates in both Brazil and Colombia.
Sandy: This includes as I mentioned I think the previous slide free cash flow for <unk> 3 billion net dividends paid for Cedar point 5 billion extraordinary operations for 4 billion U S dollar mainly related to the payment of the assets.
Sandy: I mentioned the sales in Peru, and FX effect for Cedar point 6 billion U S dollars.
Sandy: In terms of currency and currently we see that Brazil remains the largest contributor while the debt at the holding level represents only 11% of the total and just to remind you. This is a yankee bond that we have that is going to expire.
Sandy: So 2026 finally regarding the cost of debt, we can see a decrease for this PDR going from 12, 2% to 10, 3% mainly explained by our liability actions in Brazil, and lower interest rates in both Brazil and Colombia.
Rafael de la Haza Casarrubio: On the next slide, Aurelio will present the main highlights of the regulatory scenario that we will see during H1 2025, and we will be facing during 2025, concluding this presentation with some closing remarks.
Sandy: On the next slide Aurelio will present that may highlight so that it will likely extend area that we will see during the first half of 2025.
Sandy: And we will be facing get entered into the favorable conclusion, concluding this presentation with some closing remarks. Thank you rafa.
Aurelio Bustilho de Oliveira: Thank you, Rafa. 2025 is expected to be an important year in regulatory aspects in distribution business for our company. Beginning with Colombia, this year, we are going to have tariff revision process for the commercialization company, and we expect to have more details about this process in the coming months. In Brazil, we are moving forward in the concession renewal process with the recent publication of the baseline concession renewal contract by ANEEL. During the next 30 days, companies have to formalize their intention to renew the concession, and 60 days after that, ANEEL gives its recommendation to the Minister of Energy, and they make their decision within 30 more days. Finally, in Argentina, after the recent public hearing, we expect that the tariff review process will yield a remuneration that reflects current market conditions and needs.
Sandy: Page five is expected to be an important year in regulatory aspects in distribution business.
Sandy: The company beginning with the Columbia. This year, we are going to have data for revision process for the commercialization company.
Sandy: And we expect to have more details about this growth in the coming months in Brazil, we are moving forward in the concession renewal process with the recent publication of the baseline concession renewal contract by Enel.
Sandy: During the next 30 days companies have to formalize that intention to renew the concession and 60 days after that Enel gives its recommendation to the minister of energy and they make their decision within 30 more days.
Sandy: Finally in Argentina. After the recent public hearing we expect that the tariff review process will yield a remuneration that reflects current market conditions and needs.
Aurelio Bustilho de Oliveira: The current expected timeline is to have the final tariffs scheme by the end of March, with these tariffs coming into effect at the start of April. Let me conclude this presentation with some closing remarks in slide 15. We are increasing our investments in grids, as announced on our current strategic plan, focusing our efforts in having a more resilient network and improving quality for our customers. Despite a complex scenario, including currencies devaluation and poor hydro conditions, among other difficulties, we were able to have a good performance in EBITDA was in line with last year. Thanks to the completion of our disposal plan, we reached a record net income, which will allow us to pay a significant dividend to our shareholders, almost $800 million.
Sandy: We current expect timeline is to have the final tariffs scheme by the end of March.
Sandy: These steps coming into effect at the start of the month of April.
Sandy: Let me conclude this presentation with some closing remarks.
Sandy: The slide 15.
Sandy: Yes.
Sandy: We are increasing our investments in Greece. Its analysis on our current strategic plan focusing our efforts in having a more resilient network and improving quality for our customers.
Sandy: Despite the complex scenario, including currencies devaluation and bore hydro conditions. Among other difficult we were able to have a good performance in EBITDA was in line with last year.
Sandy: Thanks to the completion of our disposition plan, we reached a record net income which will allow us to pay a significant dividend to our shareholders 800, almost 800 million U S dollars.
Aurelio Bustilho de Oliveira: For 2025, we have important regulatory milestones coming up, and we are closely monitoring this process due to their importance in the coming years for the company. Finally, we'll have our shareholding meeting on 30 April. As always, we'll be uploading the information regarding these events on our website. Please, Jorge.
Sandy: For 2025, we have important regulatory milestones coming up and we are closely monitoring this process due to their importance in the coming years for the company.
Sandy: Finally, we will have our shareholder meeting.
Sandy: On April 30th as always will be uploading their information regarding these events on our website.
Jorge Velis Espinosa: Thank you, Aurelio. Thank you, Rafa. First question comes from Rishi Liu. Can you talk about the curtailment situation across your generation fleet? How did we start the year 2025, and how does the situation compare with 2024?
Sandy: Jorge.
Jorge: Thank you Aurelio Thank you Rafa.
Jorge: Okay.
Jorge: First question comes from Richard Liu.
Richard Liu: Can you talk about the curtailment situation across your generation fleet.
Richard Liu: How did we start the year 2025, and how does the separation compare with 2024.
Richard Liu: Yes.
Aurelio Bustilho de Oliveira: Thank you. What's the first question?
Richard Liu: Thank you.
Richard Liu: Right.
Jorge Velis Espinosa: Rishi.
Richard Liu: Hoisting.
Aurelio Bustilho de Oliveira: Thank you for the question. Yes, curtailment is a reality as we are facing, especially in the last years. I think it's a mix of issues that affect the curtailment. Just to give how it's been originated. It needs transmission, investments in transmission. It needs to have more, let's say, information regarding the intermittent generation in the system in Brazil. I suppose you are referring to Brazil. With all the increase that we had, especially in distributed generation, it's not easy to predict or to have factual information regarding the quantity of generation that it's been entering the system. Improving the transmission lines, the transmission transfers from the energy, improving the information of generation, the concentrated generation of renewables, and also start to measure it more effectively, the distributed generation.
Richard Liu: Thank you.
Richard Liu: The question, yes that curtailment. It is a reality as we are facing especially in the.
Richard Liu: Last year.
Richard Liu: Ah I think it is.
Richard Liu: It's a mix of issues that affect <unk> David.
Richard Liu: Just to give the highway.
Richard Liu: <unk> originated I mean, it needs transmission investments in transmission needs it needs.
To have.
Richard Liu: More.
Richard Liu: The same formation regarding.
Richard Liu: The impairment nature intermittent generation in this.
Richard Liu: In the system in Brazil, and I suppose you are in Asia.
Richard Liu: Referring to Brazil.
Richard Liu: Without the increase that we had in the especially in distributor generation.
Richard Liu: It's not easy to predict or to have effect, Joe information regarding the quantity of the generation that is being now entering the season, so so improving their transmission.
Richard Liu: Lines.
Richard Liu: The transmission transparency.
Richard Liu: From the energy improving the information of generation.
Richard Liu: Concentrated generation off of renewables and also.
Richard Liu: Start to measure it.
Richard Liu: What effect that distributor generation.
Aurelio Bustilho de Oliveira: Also with the improvements that the government is pushing for a new capacity, especially capacity for the hours that we need more capacity in the system. I'm referring to the auction that the government is preparing for new capacity generation, thermal capacity, some hydro capacity, and some batteries. I think with all this process will improve the problems that's generating the curtailment, right? It's not fast. It's not something that will be in the following day, but it will be improving. We expect that that will improve in the coming months, the coming years.
Richard Liu: And also with the improved commensurate with that the government.
Richard Liu: Is pushing for a new capacity.
Richard Liu: The capacity for.
Richard Liu: Sure.
Richard Liu: The hours that we need more capacity in the system.
Speaker Change: I'm, referring to the auction that the government is preparing for a for new capacity.
Speaker Change: Generation thermal capacity, some some hydro capacity and so in some batteries I think we'd know this this process will.
Speaker Change: It will improve.
Speaker Change: The problems that generation.
Speaker Change: Generation that is generating the curtailment right it's not.
Speaker Change: <unk>. This is not something that will be the following day, but.
Speaker Change: It will be improving we expect that that will improve in.
Speaker Change: In the coming in the coming months in coming years.
Aurelio Bustilho de Oliveira: Of course, when the systems does not have a good condition, especially in Brazil, that we depends on hydro generation, for example, and we do not have water, we do not have rain, this situation tends to be more difficult, tends to create more difficulties in terms of operation, in terms of reliability, so the curtailment increase. I'm just saying all of this to tell you that if we have improvements in these fronts, especially in hydro, we do not have unfavorable hydro condition in the system, and which we cannot predict it right now. If we have improvements in terms of new transmission line, if we have improvements in new capacity, that will take time to be implemented. Especially hydro condition, maybe we'll suffer with these problems more than or equal that we had in the previous year.
Speaker Change: But of course, when we do not have when the system. They are not does not have.
Speaker Change: A good condition, especially in Brazil that we depends on hydro generation for example, and we do not have.
Speaker Change: What they're not have rain.
Speaker Change: Situation tends to be more and more difficult tends to be more.
Speaker Change: Two to create more difficult in terms of operation in terms of.
Speaker Change: Of reliability, so they could payments.
Speaker Change: Increased so.
Speaker Change: I'm, just saying all of this to to tell you that if we have improvements in these fronts, especially hydro we do not have unfavorable hydro condition in this season.
Speaker Change: Which we cannot predict it right now.
Speaker Change: So and then if we have improvements in terms of new transmission line at the Fab if were have improvements in new capacity that will take time to be implemented.
Speaker Change: But specialty hydro condition.
Speaker Change: Naver will suffer with this with these with this.
Speaker Change: Problems more Dan or.
Speaker Change: Equal that we had in the previous year.
Aurelio Bustilho de Oliveira: For last year, as I was explaining, the effect in our results was $90 million. I know that other companies were affected more. In our case, it was $90 million, 3% of our generation. We can support this. We have a huge portfolio. Of course, we do not agree that we suffer with this situation. We are analyzing the possibilities. In terms of system, we have an issue here that as a system, we need to solve. I mean, not we, Enel, but as a part of the system, Brazilian system, operator, regulator, transmission, agents, we need to solve. I repeat, some companies, it affects more than our companies. Of course, since we are a huge operator in terms of generation, in terms of renewables, we have some exposure. We are also being very proactive in terms of contracts.
Speaker Change: For the fall of last year as I was explaining the.
Speaker Change: Our if they affect in our in our in our reserve.
Speaker Change: <unk>.
Speaker Change: Worse.
Speaker Change: 93 million U S dollars I know that other companies were affected more in our case it was $90 million, 3% of our generation.
Speaker Change: <unk>.
Speaker Change: We can we can we can we can support this.
Speaker Change: We have.
Speaker Change: A huge portfolio, but of course, we are.
Speaker Change: We do not.
Speaker Change: And theyre not agree with that we suffer with this with these situations. So.
Speaker Change: I mean, we are analyzing.
Speaker Change: Sure.
Speaker Change: Possibilities, but in terms of system, we have an issue here.
Speaker Change: Yes.
SAP system, we need to we need to solve.
Speaker Change: We annually.
Speaker Change: Part of this is our Brazilian system.
Speaker Change: Operator, a regulator.
Speaker Change: <unk> and <unk>.
Speaker Change: We need just sold.
Speaker Change: Some I repeat some companies.
Speaker Change: <unk> affects more than our companies.
Speaker Change: But.
Speaker Change: Of course since we are a huge operator in terms of.
Speaker Change: Generation in terms of renewables.
Speaker Change: We have some some exposure, but we are also being very proactive in terms of contracts, we have a huge portfolio of more than six gigawatts of capacity, combining hydro solar and wind.
Aurelio Bustilho de Oliveira: We have a huge portfolio, more than 6 GW of capacity, combining hydro, solar, and wind. Also with a huge front in terms of commercialization, in terms of energy trading, we are able to compensate this, or to reduce, or to mitigate a little bit more of this effect. Exposed? Yes, we are.
Speaker Change: We are able to and also with a huge front in terms of commercialization in terms of trading energy trading.
Speaker Change: We are able to.
Speaker Change: Sure.
Speaker Change: Compared safety this or to reduce such a mitigate mitigate.
Speaker Change: A bit more upbeat effect, but expose it yes, we are.
Jorge Velis Espinosa: Thank you, Aurelio. Now a question from Rodrigo Mora, related to hydro conditions in Colombia. Could you give us some color about the actual situation and the perspective for 2025?
Aurelio: Thank you Aurelio.
Speaker Change: And now a question from Rodrigo Mora.
Aurelio: Yeah.
Speaker Change: <unk> two hydro conditions in Colombia could you give us some color about the actual situation and the perspective for 2025.
Aurelio Bustilho de Oliveira: Yes. Well, it's difficult to predict right now. As we know, we need to at least Right now, the reservoir, they are in a good condition, but with the high temperatures, I mean, well, especially Brazil, but also in Colombia, we need to see the end of the current season to have a more clear view of the hydro condition of the year. Right now, what I have to tell you is that we are in a more balanced situation, not with the extreme dry that we had in the past, but in a more balanced situation. It's too early to predict how it will evolve during the year, since we see that this hydro condition in the past used to be more predictive after the end of December, for example, and now we see that during the same year, we have different situations.
Aurelio: Yes.
Aurelio:
Aurelio: Well it's.
Aurelio: It's difficult to predict right now as we know we need to.
Aurelio: At least right now.
Aurelio: Are they adding in a good condition, but with a high temperature as they are.
Speaker Change: I mean, well, especially Brazil, but also in Colombia, we.
Aurelio: We need to see the end of this.
The current.
Speaker Change: The current season.
Speaker Change: Have a more clear view of.
Speaker Change: The hydro condition of the year right now.
Speaker Change: What I have to tell you is that we added.
Speaker Change: Let's say in a more balanced situation not with the extreme.
Speaker Change: Dry that we had in the past, but in a more benefit situation, but it's too early to predict how it will.
Speaker Change: It will evolve during the year.
So we see that this.
Speaker Change: This hydro condition in the past used to be more predictive after at the end of December for example, and now we see that doing the same here we have different situations.
Aurelio Bustilho de Oliveira: What we need to have here is flexibility, proactivity, and we need to have the condition to contract and especially leave part of our energy, not contract in order to mitigate the adverse situations. This is a change also for the new times, the new way that we need to face hydrology in our geography.
Speaker Change: What do we need to be where do we need to have here is flexibility productivity and haptics and we need to have them.
Speaker Change: The condition to contract and.
Speaker Change: And especially lift part of our not.
Speaker Change: Contract and other too.
Speaker Change: To mitigate the adverse situations.
Speaker Change: Is that change also.
Speaker Change: For the new guidance is a new way that we need to face hydrology in our geography.
Jorge Velis Espinosa: Thank you.
Aurelio Bustilho de Oliveira: Thank you, Rodrigo.
David: Thank you David.
Jorge Velis Espinosa: Thank you, Rodrigo. Alessandro Di Vito is sending four questions. First, is the company considering further corporate simplification actions? Number two, is the company confirming 2025 guidance unveiled at the last business plan in November? Number three, do you see any risk of revocation of distribution concessions due to service interruptions? Finally, can you also share the underlying drivers that led results to be below the latest guidance?
Speaker Change: Dahlia.
Speaker Change: And some of the winter.
Speaker Change: And then for questions.
Speaker Change: The first is the company considering further corporate simplification actions.
Speaker Change: Number two is the company confirming trend.
Speaker Change: 2025 guidance unveiled at the last business plan in November.
Speaker Change: Number three do you see any risk of relocation.
Speaker Change: Concessions view to service interruption.
Speaker Change: And finally.
Speaker Change: Can you also share the underlying drivers that led results to be below the latest guidance.
Aurelio Bustilho de Oliveira: Okay. Well, Rafael, thanks for the question. If you don't mind, you answer the second question, right, the guidance, and the last one?
Speaker Change: Okay.
Speaker Change: Well.
Speaker Change: Thanks for the question if you don't mind I can answer you answered the second question the guidance and.
Rafael de la Haza Casarrubio: Okay.
Speaker Change: The last one and I can answer one and three I mean perfect.
Aurelio Bustilho de Oliveira: I can answer one and three.
Jorge Velis Espinosa: Perfect.
Aurelio Bustilho de Oliveira: Yeah. Okay.
Rafael de la Haza Casarrubio: Okay, perfect.
Speaker Change: Okay, Okay perfect.
Aurelio Bustilho de Oliveira: Okay. Well, simplification actions, we are not analyzing. I mean, our priority, as we said in the presentation, is to solve, especially to follow those main milestones in terms of regulation, right? We do not have to wait too long because we expect these to be, especially in Brazil, to be defined in the first semester of this year. In Argentina, also in the first semester. We do not have to wait longer to enter in this part. For now, there's no simplification actions moving far from our side, from the company. Point three, let me tell you, the process of renewal concessions is being very transparent, is moving in the correct directions considering our views, more aligned with the extreme events that we are facing in our cities, in our regions, in the world in general.
Speaker Change: Okay.
Speaker Change: Well simplification actions.
Speaker Change: Analyzing our periodic as we as we said in the presentation is to is to solve especially to.
Speaker Change: To follow those main milestones in terms of regulation right.
Speaker Change: We do not have to wait too long because it's we expect this to be especially in Brazil in the first semester to be defining the first MSR for this year.
Speaker Change: And then Argentina and also in the first semester.
Speaker Change: I mean, we do not have to wait longer to entering this step in this in this part but for now there is no simplification actions.
Speaker Change: Moving far from from our side.
Speaker Change: The company.
Speaker Change: 0.3.
Speaker Change: Yeah.
Speaker Change: Let me tell you we.
Speaker Change: The process of Av.
Speaker Change: Of renewal concessions as far as being very transparent is moving in the correct directions, considering our our views.
More align it with the <unk>.
Speaker Change: Extreme.
Speaker Change: Extreme events.
Speaker Change: That we are facing now.
Speaker Change: It is in our regions in the world in General.
Aurelio Bustilho de Oliveira: The concessions need more CapEx, more velocity in terms of CapEx recognition. It's fair also to consider, and it's that way they consider the customer satisfaction, which is very important here. This is a very important change that it's aligned with the new times, and we find it's fair, and it is correct. Having said that, we do not have any discussion about revocation distribution concession. We maintain our intention for the concession renewal. We maintain our CapEx that we presented in the last strategic plan to invest in this concession, $4.6 billion that we announced, right? In $4.6 billion announced for the next 2025, 2026, 2027 to invest in this concession. We do not see issues related to revocation. We reinforce our intention to renew the concession for the next 30 years.
Speaker Change: Concessions need more capex more.
Speaker Change: <unk> in terms of Capex, the Companys capex of the Venetian.
Speaker Change: It's fair to also to consider and it's that way they consider the customer satisfaction, which is very important very important here is a very important change its alignment with the with the new times than we are.
Speaker Change: We find it.
Speaker Change: It's fair Andy is correct. So yes, we do not have having said that we do not have any.
Speaker Change: And is.
Speaker Change: And it is a discussion about the relocation distribution.
Speaker Change: Concession we.
Speaker Change: Maintaining our hour.
Speaker Change: Intention.
Speaker Change: For the concession renewal, we maintain our capex.
Speaker Change: That we presented in the last strategy plan to invest in this session.
Speaker Change: $4.6 billion that we announced it right in the $454 6 billion announced that for the next 25 basis.
Speaker Change: Thank you seven.
Speaker Change: To investigate these concession so we do not see.
Speaker Change: Issues related to two <unk>.
Speaker Change: Reinforce our intention to two.
Speaker Change: The new the concession for the for the next 30 years.
Aurelio Bustilho de Oliveira: We are confident that conditions will reflect a fair economic remuneration and fair condition in order to absorb these investments. We do not see, and we are meeting the KPIs, the regulation KPIs in terms of quality that we have today. I repeated that we are still facing, yesterday, for example, we had this huge tempest or huge flooding in São Paulo, and the time to reconnect, we've been improving, the communication we've been improving. We are doing our job and continuous improving the quality and our time of reconnection and our timing to provide the energy to the customers. Rafa, if you can.
Speaker Change: We are confident that conditions will reflect a fair.
Speaker Change: Economic.
Speaker Change: Remuneration and fair.
Speaker Change: Condition in order to absorb these investments so we do not see and we are meeting the.
Speaker Change: I mean, the Kpis the regulation Kpis in terms of.
Speaker Change: Quality that we have to date.
Speaker Change: I repeat that debt.
Speaker Change: We are still facing yesterday for example, we had these.
Speaker Change: A huge at Tampa.
Speaker Change: <unk> it's <unk>.
Speaker Change: Putting that in Sao Paulo, and we are.
The timing to record.
Record, we've been improving the communication we've been improving.
Speaker Change: We are doing.
Speaker Change: Yeah.
Speaker Change: Our job and continuous improvement improving.
Speaker Change: The quality and our time of record action and our timing.
Speaker Change: To provide.
Speaker Change: Provided.
Speaker Change: Dennis.
Speaker Change: So their customers halfway through can I think I will.
Rafael de la Haza Casarrubio: Thank you, Aurelio. I will go for the second question and fourth question. In relation to the second question, Alessandro, thank you very much for it. The answer is yes, we are confirming the 2025 guidance for Enel Americas. First of all, let me remind you the guidance that we have in terms of EBITDA, which is a range between $4.4, $4.6 billion for 2025. In terms of group net income, the guidance is $1.4, $1.6. We are confirming this guidance. The answer is yes. Of course, there is a KPI that we cannot control, there is the FX. This is something that we cannot manage. Let's see how it evolves along the year. In any case, of course, Enel Americas is a company with the U.S. dollar as a functional currency.
Speaker Change: For the second question on the phone question also in relation to the second question on that so I'm going to thank you for February March for it.
Speaker Change: The answer is yes, we are confirming the 2025 guidance for Enel Americas first of all let me remind you of the guidance that we have in terms of EBITDA, which is a range between $4 $4 $6 billion for 2025 and in peso group net income guidance is 1416.
Speaker Change: We are confirming this guidance.
Speaker Change: So the answer is yes of course, there is an API that we cannot control.
Speaker Change: There is the FX. This is something that we cannot manage let's see how it evolves along the year.
Speaker Change: But in any case of course Central America is a company.
Speaker Change: With.
The U S dollar.
Speaker Change: Our functional currency our operations had a substantially local currency. So we could have a potential impact in terms of FX, but we are very conservative as usual on us as anticipated before we prefer to announce when we announced always a guidance to the market, we prefer to announce our guidance without <unk>.
Rafael de la Haza Casarrubio: Our operations are substantially local currency. We could have potential impacts in terms of effects. We are very conservative as usual and as I anticipated before, we prefer to announce, when we announce always the guidance to the market, we prefer to announce a guidance with a range for the year. CLP 4.4, CLP 4.6 in terms of EBITDA, I repeat, just to potentially cover this kind of impacts like the FX effect that we may see during 2025, no? We are confirming for the moment the guidance, I repeat. Let's see how the currencies in the different countries are evolving during 2025. In relation to the fourth question, can you also share the underlying drivers that led results to the below latest guidance? Substantially, the difference is due to the FX impact, substantially due to the valuation of the Brazilian reais during November and December 2024.
<unk>.
Speaker Change: For the four for $4 six in terms of EBITDA I'll repeat yes to potentially call that these kind of impacts like the FX effect.
Speaker Change: That.
Speaker Change: We may see during 2025 now so.
Speaker Change: We are confirming for the moment the guidance I'll repeat.
Speaker Change: But let's see how the currencies in the different countries on a walgreen during 2025 in relation to their four.
Speaker Change: Question can you also Saturday under the underlining drivers that led results today are below latest guidance.
Speaker Change: Substantially the refinances due today.
Speaker Change: <unk> impact.
Speaker Change: Substantially due to the devaluation of the Brazilian Reais during the November and December.
Rafael de la Haza Casarrubio: The guidance that we announced for 2024, when we presented the strategic plan of the company in November 2023, was $3.9 billion. The final number that we have announced today is $3.7 billion. Substantially, the difference between both numbers is the FX effect due to the currency performance in Brazil. There is also an impact in Colombia, but it's substantially Brazil, the highest impact in our numbers versus the guidance.
Speaker Change: <unk> 20 for the guidance that we announced for 2024.
Speaker Change: We presented the strategic plan of the company in November last year was $3 $9 billion.
Speaker Change: Then final number that we have announced today is $3 seven substantially the difference between both numbers.
Speaker Change: Is the FX effect due to the currency.
Speaker Change: Pharmathene in Brazil. There is also an impact in test in Colombia by the substantial reversal.
Speaker Change: The hygiene the highest impact our numbers based on what they guide us.
Jorge Velis Espinosa: Thank you, Aurelio and Rafa. One final question from Rodrigo Mora. Could you give us some color about the tariff process in Codensa, Colombia, such as regulatory WACC?
Speaker Change: Thank you Alejandro.
Speaker Change: One final question from Rodrigo Mora.
Rodrigo Mora: Could you give us some color about the tariff process in <unk>, Colombia, so tough regulatory work.
Aurelio Bustilho de Oliveira: Thank you, Rodrigo. Well, the process is starting. It is still early, but we expect it to be defined in the first semester of this year. The main point here, well, the regulatory WACC, I do not know, Rafa, if you have what we consider in terms of WACC. You can-
Rodrigo Mora: Thank you Rodrigo.
Rodrigo Mora: Well the processes.
Rodrigo Mora: Starting on the stool, it's too early but we expect it to be defined in the first semester of this year.
Rodrigo Mora:
Rodrigo Mora: The main points here.
Rodrigo Mora: The regulatory work I don't know halfway if you have it.
Rodrigo Mora: Yeah.
What we consider in terms of what we.
Rafael de la Haza Casarrubio: Yes, we have it in the annexes of the presentation.
Rodrigo Mora: We have it in the <unk> in Japan.
Aurelio Bustilho de Oliveira: You can mention. It's pretty much in line of what we consider. There's no big issue. You can mention. In any case, I think this process, the main issue, Rodrigo, is related to the CapEx recognition and the process to evaluate the CapEx that we invest, and we are to invest, and what's the percentage of recognition. The first discussions, we've been improving the discussion. It will be pretty much in line in terms of what we plan to invest. What we plan to invest is what the regulator would recognize. It's still ongoing discussions. This is something important, as you know, in Colombia, it is a revenue cap methodology, so CapEx is recognized during the same year, the amortization during the same year that you are started to invest. This is very important. It's moving a good way.
Ken: Ken mentioned.
Ken: But yes, but it's very much in line of what we consider there is no big issue can you.
Ken: If you can mention but in any case.
Ken: I think well this process that may issue or the degrees that related to.
Ken: The Capex recognition.
Ken: And the process to evaluate the capex that we are.
Ken: That we invest and we are to invest in.
Ken: What's the percent age outbreak organization.
Ken: I mean, the first discussions.
Ken: <unk> been improving the discussion I mean, it will be pretty much in line in terms of.
Ken: What we plan to invest what we plan to invest is.
Ken: Is it right.
Speaker Change: The regulator.
Speaker Change: Would recognize it is still ongoing discussions.
Speaker Change: But.
Speaker Change: It is something that as you know in in.
Speaker Change: In Colombia, <unk> revenue cap methodologies. So capex is recognized during the same year, what do we the amortization during the same year that we that you are starting to invest so this is very important.
Aurelio Bustilho de Oliveira: I give the floor to Rafa to mention the WACC.
Speaker Change: And it's moving in a good way so.
Speaker Change: <unk>.
Speaker Change: Give the floor to have automation.
Rafael de la Haza Casarrubio: Thank you, Aurelio. I think that you described it very well, the situation. In terms of WACC, Rodrigo, in Colombia, just to remind you, we have a 12.1% WACC pre-tax. It's a very good WACC. Let's see how it evolves in the revision. For the moment, the one that we have for this year was 12.1%. You have all the details in the annexes, as Aurelio explained before, also related to the model of the current tariff scheme. We are positive. We have positive signals about what is going to happen in regulatory terms also in Colombia.
Speaker Change: Wireless described it very well the situation in <unk>.
Speaker Change: Well Rodrigo in Colombia, just to remind you we have our 12, 1% luck three L pretax so it's a very good.
Speaker Change: <unk>.
Speaker Change: Let's see how it evolves.
Speaker Change: In that revision Barclays for the moment. The one that we are that we have for this year was 12, 1%.
Speaker Change: You have all the details of the unexercised Aurelio split before.
Speaker Change: And also related to the model.
Speaker Change: The current IHS scheme.
Speaker Change: <unk>.
Speaker Change: We are positively a positive sign ups on <unk>.
Speaker Change: Is going to happen in regulatory terms also in Colombia.
Aurelio Bustilho de Oliveira: Thank you. In the same line, Rodrigo also asked for the.
Speaker Change: Thank you and the same name, but he also asks for the.
Jorge Velis Espinosa: Edesur tariff process, what should be the regulatory EBITDA, and what is the CapEx committed by Edesur for 2025, 2027?
Speaker Change: It is sort of a thorough process what should be the regulatory EBITDA and what is the capex committed by <unk> for 2025 2027.
Aurelio Bustilho de Oliveira: Well, the CapEx, of course, the situation in Argentina is improving. Rafa can give you the figures. In terms of what is still pending, let's say, in Argentina, we are recognizing, we improved the VAD, which is the regulatory value for the distribution. We are anticipating the inflation during the month, which is pretty much in line. This is not the new tariff reset, but this is important because when you reach the tariff reset, anticipating these effects is very important. It's been anticipating the effect in EBITDA. This is one very important point. Of course, it is important to have the inflation recognized in the VAD of Argentina, which is something that we expected to be performant. In terms of CapEx, of course, the future CapEx, now we are estimating, as I remember, Rafa can give you the 700-
Speaker Change: Yes.
Speaker Change: Well.
Speaker Change: The Capex of course, the situation in Argentina is improving or have I can give you the figures but in terms of.
Speaker Change: What is still pending let's say in Argentina.
Speaker Change: We are recognizing we improve it.
Speaker Change: <unk>.
Speaker Change: We improve it.
Speaker Change: The VA deep.
Speaker Change: Which is the regulatory team.
Speaker Change: Value for that for the distribution recognizing the inflation.
Speaker Change: Of course, we are.
Speaker Change: Our anticipating being fleece loading them up which is which is pretty much in line.
Speaker Change: I mean this is not the new the new tariff reset, but this is important because when you reach the tariff reset.
Speaker Change: Anticipating these effects.
Speaker Change: <unk> is very important so it's been anticipating the effects of the night and EBITDA. This is one very important point.
Speaker Change: Of course, it is important to have.
Speaker Change: Inflation recognize it in the in the robbed of Argentina, which is something that we expect that you'll be should be in.
Speaker Change: Our performance in terms of our Capex.
Speaker Change: Of course, the future Capex now we are estimating.
Speaker Change: As I remember Africa EBITDA.
Rafael de la Haza Casarrubio: $200 million per year for 2025. In total, Rodrigo, as we announced during the strategic plan, for the period 2025-2027, is $770 million.
Speaker Change: The $200 million NOLA per year for the year 2025 and in total.
Speaker Change: Last we announced that they are you are in your strategic plan for the period 2025, 2027 $770 million.
Aurelio Bustilho de Oliveira: For the 3 years.
Rafael de la Haza Casarrubio: For the 3 years period.
Aurelio Bustilho de Oliveira: Exactly. The regulatory EBITDA, Rafa, I don't know if you have this figure, but at the end of the day, if you see the plan.
Speaker Change: For the three years exactly and.
Speaker Change: And the regulatory EBITDA at half I don't know if youll have this figure but.
Speaker Change: At the end of the day, if youll see the plan.
Rafael de la Haza Casarrubio: It will depend on how the regulation evolves. Of course, in terms of EBITDA, Argentina, as announced in the strategic plan of the company, will be, in terms of growth, a relevant contributor in terms of EBITDA for this period, for the distribution business. In 2024, the EBITDA at the Edesur level was $30 million for the distribution sector, and we expect a relevant growth for the triennium 2025-2027, and is going to be one of the most relevant actors in terms of growth for this business line. I think, if I remember correctly, we have a chart in the strategic plan of the company in which you may see the growth of Argentina and also the contribution of Brazil in the distribution business for this period. Being, I repeat, Argentina, in terms of growth, the most relevant actor for this period.
Speaker Change: It will depend on how that relationship evolves, but and of course in terms of Dodge Antena.
Speaker Change: As announced in our strategic plan of the company will be in terms of growth.
Speaker Change: Relevant contributor.
Speaker Change: In terms of EBITDA for this period for each division business.
Speaker Change: In 2020 for the reader.
Speaker Change: And that's what led to lost $30 million.
Speaker Change: For the <unk> for the distribution sector, and we expect a relevant growth for the <unk> 2025, 2027, and he is going to be.
Speaker Change: One of the most relevant to us in terms of growth for this business line.
Speaker Change: I think if I may.
Speaker Change: Every Michael Rajiv if I remember correctly, we have a chart in yesterday finance the company in which <unk>.
Speaker Change: You may see their growth of Argentina.
Speaker Change: So the contribution of Brazil.
Speaker Change: In the distribution business for these say it <unk> bin I repeat that again Dana in terms of growth the most relevant okta for these periods.
Aurelio Bustilho de Oliveira: Yeah. Just to add some comments to this. It's very important that Argentina, for example, as Rafa said, we are balancing the cash flow. We are maintaining the neutral cash flow. If we do not have tariff conditions, we will not invest. Simple like that. We will not anticipate money in the country. We do not have the process totally defined. We have, as Rafa explained it, estimating that will rebalance the distribution in order to absorb the investment, $700 million of EBITDA, almost $700 million of CapEx. This is the number. Of course, if we do not have condition, we will not put the $700 million on the table. This is clear.
Speaker Change: Yes, just to retool to add some.
Speaker Change: Comment.
Speaker Change: This is very important.
Speaker Change: Argentina for example, we are as I said, we are at.
Speaker Change: Balancing the cash flow, we are maintaining a neutral cash flow if.
Speaker Change: If we do not have that.
Speaker Change: If conditions will not invest simple lifestyle will not anticipate money.
Speaker Change: In the in the cut and sew.
Speaker Change: Hey.
Speaker Change: We are not we do not have the process totally define it we have explained is estimating that the.
Speaker Change: That will rebalance.
Speaker Change: The distribution in order to absorb the investment $700 million of EBITDA, almost 700 million of Capex.
Speaker Change: The number.
Speaker Change: But of course, if we do not have condition will not put the $700 million on the table I mean.
Rafael de la Haza Casarrubio: This is the CapEx announced.
Speaker Change: Is it clear.
Aurelio Bustilho de Oliveira: Exactly. Profitability is our mantra. Cash flow is our mantra. That's why we are focusing efficiency, we are focusing in financial profitability in order to have a balanced free cash flow, positive free cash flow, to retribute the dividends. We'll not agree the debt is the other way to speak. Okay, thank you.
Speaker Change: Capex analysis.
Speaker Change: Profitability is our mantra.
Speaker Change: Cash flow is our mantra that's.
Speaker Change: And.
Speaker Change: That's why we are focusing their efficiency we are focusing.
Speaker Change: In financial profitability in order to have a balanced free cash flow positive free cash flow.
Speaker Change: Two.
Speaker Change: I mean, two it debuted the dividends and would not agree that soon.
Speaker Change: Either way to just speak okay.
Jorge Velis Espinosa: Thank you. Well, as there are no more questions, I conclude the results 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: Thank you.
Speaker Change: Thank you.
Speaker Change: Well.
Speaker Change: There are no more questions I conclude the results conference call.
Let me remind you that the Investor relations team is available for any doubt that you may have thanks for your attention.
Aurelio Bustilho de Oliveira: Thank you.
Speaker Change: Thank you.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].