Q1 2025 EDP SA Earnings Call
Good morning, we welcome you to the E D. P first quarter 2025 per cent presentation conference call.
During the presentation, all participants will be in a listen only mode.
Could be an opportunity to ask questions. After the presentation.
Mr habit: If you wish to ask a question during the Q&A session. You may do so by pressing the star key followed by five Oh and your telephone keypad, if you're experiencing any difficulty in listening to the conference at anytime. This must show you'll have you'll have sat fully blocking well. It's admittedly. Please try calling for artists and device I now hand, the conference over to Mr habit.
Speaker Change: <unk> had a fire on the S. T. Please go ahead Sir.
Speaker Change: Good morning, ladies and gentlemen, thanks for attending Etp's first quarter to 25 results conference call yesterday, we there's hours Yo Yo children's brands under our CFO with the Shredder, which will present to you. The main highlights of our strategy discussion ended first quarter 55 financial performance.
Speaker Change: We will then move to the Q&A session in which we will be taking your questions. Both by phone or written questions that you're getting from now onwards at our webcast last time I'll get them all the floor to our CEO.
Speaker Change: Right.
CEO: Thank you Miguel and Hello, everyone. Thank you for attending our first quarter results conference call.
Speaker Change: So I'd like to start for.
Speaker Change: For those of you that werent able to listen to this call from Edp renewables just start with a brief remark on the unprecedented blackout of last week in Iberia.
Speaker Change: I think the first thing to notice well its yet to be fully explained and we don't know the root cause.
Speaker Change: It's really important to recognize how both countries were able to fully restore power and safety to the population and I want to predict that to think that people that ETP in the distribution company in both Portugal and Spain.
Speaker Change: For all the hard work and their dedication and sort of all the hours they put into to get this.
Speaker Change: The power back online so I think great work done by the team.
Speaker Change: On the other hand, I think the events also really underlines the need for continued investments in the grid infrastructure and interconnections in particular interconnections between Spain, and France, it's been clear for many many many years. This is absolutely critical and it would have certainly helped also in in this context, but also the need for investments in energy.
Speaker Change: Storage and also a complementary solutions.
Speaker Change: For example, the ancillary services so together with renewables I think these are the elements that are key to ensure an electricity system that provides clean reliable and affordable energy to all.
Speaker Change: Well I think Thats just the note I'd like to make on last week's blackout event.
Speaker Change: Now turning to this quarter's results.
Speaker Change: If we go to slide three.
Speaker Change: Just starting with a quick recap on the first quarter numbers.
Speaker Change: EBITDA increased 6% year on year, so it reaches $1 4 billion in the first quarter.
Speaker Change: So it's clearly a very good quarter.
Speaker Change: Particularly for the integrated generation or supply business in Iberia.
Speaker Change: A lot of rain at higher power prices certainly versus last year and we also benefited from a strong demand for flexible generation and ancillary services.
Speaker Change: So that was good on the electricity network side. We also saw good resilient performance has actually increased 7% if we exclude the asset rotation gains in FX from last year.
Speaker Change: Bear in mind that last year, we recorded 134 million euros and asset rotation gains split between the transmission and Edp, our transactions and this year, we're not recording any game and yet we have this underlying growth.
Speaker Change: Wind and solar underlying performance was also up 20% year on year, excluding gains as we talked about yesterday supported by an increase in installed capacity. After the record additions executed in the fourth quarter of last year and also improved renewable resources. So overall net profit increasing 19% year on year, reaching 439 million.
Speaker Change: And reflecting this very strong top line performance.
Speaker Change: If you go to slide four and I think this is a particularly interesting side because it shows it was a quarter with really strong hydro resources, 42% above average so even better when compared to last year's resources, which were already 38% above average.
Speaker Change: However, hydro generation decreased year on year since the strong rainfall was crucial to strengthen the reservoir level. So we took advantage to really fill up the reservoirs are at 60% at the beginning of the year. They are now.
Speaker Change: Well versus 80% in early 2024.
Speaker Change: If you look at the left hand side graph you can see that the delta under production year on year was mostly stored in the form of reservoir. So we go into this.
Speaker Change: Let's say second and third quarter with strong reservoir levels.
Speaker Change: Despite being lower year on year Hydro generation was still above average so about half terawatt hour about that risk and those under contracted volumes were sold at much higher prices when compared to the first quarter of 2024. So the electricity pool price in Iberia was almost double the first quarter of last year before and it was 85 euros per megawatt hour.
Speaker Change: In the first quarter of this year. So all in all reservoir levels are standing at roughly 93% in early may.
Speaker Change: So maximum highs over the last 10 years.
Speaker Change: April was also a very good month in terms of hydro resources, so 52% above average, which leaves us confident for the remaining part of the year. Obviously the fourth quarter is also an important quarter for us and so we'll have to see how how that goes.
In relation to hydro.
Speaker Change: If we move on to slide five.
Speaker Change: Five.
Speaker Change: But we wanted to talk about on the slide was really stressed the value of our flexible generation fleet.
Speaker Change: Can definitely extract additional value from price volatility in the market and this is key to complementing intermittent technologies.
Speaker Change: We're seeing a clear trend of more value being attributed to this type of assets. So if you look at the final price of electricity in Spain.
Speaker Change: See that the component of it that's attributable to ancillary services and restrictions is constantly increasing.
Speaker Change: And this is due to a combination of factors one hand, increasing electrification, so grid management complexity higher penetration of intermittent resources and so all of this increases the demand for balancing services that can be provided by flexible generation assets hydro.
Speaker Change: Gas those are really the key assets for us obviously pumping.
Speaker Change: On the other side.
Speaker Change: Higher penetration of renewables leads to expanded intraday spreads you can see that on the right hand of the slide which leads also to improved hydro premiums.
Speaker Change: So talking about Edp's figures hydro pumped spreads as a percentage of baseload prices stood at more than 50% in the first quarter of 2025.
Speaker Change: <unk> are showing a clear growth trend when compared to past years as a result of this new market profile, which we expect will continue to be like this going forward and even to Boston. So it's more of a structural issue.
Speaker Change: If we move on to slide six.
Speaker Change: So looking for at the overall integrated business.
Speaker Change: This improved market context, together with a good.
Speaker Change: Good first quarter in April as well.
Speaker Change: It means that we are updating the guidance for this segment in 2025.
Speaker Change: So previously we pointed to an integrated Iberian EBITDA of around 1% to $1 1 billion. We're now targeting one one to one two.
Speaker Change: Most of that has already been locked in so we have about.
Speaker Change: Half a billion of EBITDA already recorded this quarter.
Speaker Change: <unk> four margin locked in already for the remainder of the year that leaves us with <unk> still not locked in.
Speaker Change: We expect that to come mostly from flexible generation hydro pump storage gas.
Speaker Change: These have lower risk, namely hydro, which as I say has very healthy reservoirs as of May So key drivers for this guidance our strong first quarter and also good numbers for April reservoir levels at 93% in early May high weight of locked in margin assuming normalized volumes.
Speaker Change: Prospects for flexible generation this increasing demand for flexibility.
Speaker Change: Flexibility services and also obviously, a very resilient client base.
Speaker Change: Stability and that continues to show an increase on services penetration.
Speaker Change: So positive outlook for this integrated business.
Speaker Change: Talk about networks.
Speaker Change: So on slide seven.
Speaker Change: As you know by the end of 2024, we proposed a 50% increase in investments.
Speaker Change: For the next regulatory period 2026 to 2013.
Speaker Change: In the medium and high voltage electricity networks in Portugal.
Speaker Change: There is typically a multi annual investment program that we have to present every couple of years.
Speaker Change: Did that with this proposed 50% increase.
Speaker Change: <unk> now received.
Speaker Change: A favorable opinion by the regulator.
Speaker Change: It was the first ever regulatory opinion without any cuts proposed so I think there's a general consensus in the sector.
Speaker Change: There is a need for additional investments in the networks.
Speaker Change: I think it's this is obviously good news for the investment in our networks business.
Speaker Change: And I think we all recognize that it's absolutely critical for ensuring the energy transition.
Speaker Change: I'd also like to highlight here that according to the regulatory impact on tariffs as the material. We're talking about the seven accumulated increase and the 2030 tariffs versus 2025 in nominal terms.
Speaker Change: This is not a CAGR. This is accumulated increase of <unk>, seven which is absolutely immaterial in the context of the cost of the systems.
Speaker Change: And we want to invest in several fronts.
Speaker Change: Netflix around 45% of the investments in our plan will be allocated to modernization of the grid around 15% to just utilization and around 20% to electrification and decarbonization.
Speaker Change: Finally in this topic has grown in importance over the last two weeks, 20% of the investment will be allocated to making our network more reliable.
Speaker Change: During a continuous robust service as a renewable penetration in the grid growth.
Speaker Change: I think it's consensual into system are in the sector that we need to ensure adequate returns for the electricity networks to support these higher investments and to enhance the asset modernization.
Speaker Change: On the right hand side of the slide just a quick wrap up of of the key regulatory milestones. We'll have this year. So we have the new regulatory period, starting in 2026 as I mentioned.
Speaker Change: We will be expecting to get a proposal from the regulator on the 15th of October.
Speaker Change: In relation so that's a draft proposal for the next regulatory period.
Speaker Change: So we have more information then and then as you know typically on the December 15th is when we get the final.
Speaker Change: Decision from the regulator on the on the next regulatory period.
Speaker Change: Two key.
Speaker Change: Milestones 15th of October and then the 15th of December to get first the draft and then the final one.
Speaker Change: Opinion, so I think.
Speaker Change: We'll be hopefully having public hearings in discussions over the next couple of months, but.
Speaker Change: At least on the investment side.
Speaker Change: You already have a positive regulatory opinion on this is still dependent on the government approval.
Speaker Change: And then we also have to have that discussing around the returns of the additional investment.
Speaker Change: Talking about Netflix and Spain, so moving on to slide eight.
Speaker Change: As you know, we've we've been reinforcing to wait till the electricity networks in our portfolio over the last couple of years. So did the <unk> acquisition back in late 2020.
Speaker Change: We basically doubled our networks in Spain.
Speaker Change: You already had to either contact vehicle networks up in the north in the studios.
Speaker Change: If you ask for acquisition most of the networks.
Speaker Change: <unk> and also part of the studious.
Speaker Change: So contiguous metrics, we've got a lot of synergies out of that I think we were able to really show the value that came out of that.
Speaker Change: To deliver on the assumptions that or over deliver on the assumptions that wear to work.
Speaker Change: Underlying that acquisition.
Speaker Change: And this is an area in the north of Spain, which has quite a good growth potential due to high industrial demand per capita and also increasing renewable generation.
Speaker Change: However, and this is something that we stressed before and many other players in the sector. We think that the investment conditions in Spain have room for improvement. The return on Rab is currently five 6% and Theres no inflation update.
Speaker Change: I believe that there is an investment cap of 13% of GDP. So you can't invest the sector as a whole can't invest more than <unk> GDP.
Speaker Change: We've seen that the government the Spanish government acknowledges this and recognizes that this needs to be changed.
Speaker Change: We believe that the regulated agrees that this is urgent and that the current rates should be increased.
Speaker Change: The Spanish regulatory period, there'll be a new regulatory period also starting in 2026.
Speaker Change: The current investment plan for the 26 28 period is under discussion with the regulator was submitted to the regulators on the April 30th.
Speaker Change: After a favorable opinion from the regional governments.
Speaker Change: But this plan is still respecting the current investment caps so.
Speaker Change: We have also proposed to another plan with a significant increase for the 26 to 28 periods beyond the current cap. So if there's a.
Speaker Change: An increase in the cap, we already have an alternative plan already prepared.
Speaker Change: By the end of the year, we expect that the regulator should improve the new investment limits.
Speaker Change: Our estimate on the deadline that could be that we have further visibility either in the second or third quarter.
Speaker Change: I've tried to 35.
Speaker Change: And regarding the new remuneration framework and regulatory assumptions, we should have a public hearing soon either in the second quarter and then the regulators should improve this by year end. So all in all for.
Speaker Change: This regulatory periods the key messages.
Speaker Change: Improvement of returns is critical to attract private investment in the networks and critical to support the energy transition. So we'll see how this evolves over the next couple of quarters.
Speaker Change: Moving on to slide nine and talk about electricity distribution in Brazil.
Speaker Change: So here, we continue to see a continuous increase in electricity demand and as you know this is extremely important for the returns or the networks in Brazil. This is being supported by demographics by economic growth by electrification trends.
Speaker Change: Electricity distributed increased 7% in our areas as of the first quarter of 30 to 35.
Speaker Change: After a similar increase in 2024, an increase of 5% in 2023, so definitely this reinforces the need for additional investments in the electricity metrics in Brazil.
Speaker Change: Worth highlighting that our two distribution companies in Brazil continued to be a reference in the country.
Speaker Change: In terms of quality of service indicators.
Speaker Change: GDP Sunpower has registered its best historical record and the duration of interruptions in electricity distribution in 2024 and now <unk> centers also achieved this landmark so both of our distribution companies are committed to delivering the best quality of service and capitalizing on this market growth.
Speaker Change: On the right hand side of the slides.
Speaker Change: Recap in terms of the distribution company so.
Speaker Change: This is obviously very important year for <unk>.
Speaker Change: The new regulatory period starts in August of this year.
Speaker Change: The regulator has released the regulatory WAC for 225 at 8.06% versus 715% is currently.
Speaker Change: Distribution concession processes ongoing the regulators recommended that the concession will be extended for 30 years with the ministry on the 29th of April.
Speaker Change: And we expect that there will be the signature of the new concession contract is still in the month of May.
Speaker Change: And so if you could send to have this additional 30 year concession.
Speaker Change: And as I say, we expect to hopefully announce that in the coming weeks.
Speaker Change: We move on to Slide 10, just a quick overview on our transmission business in Brazil.
Speaker Change: So over the last nine years, we've delivered more than 12 transmission projects and we've been unlocking valuable through operating those lines as well as through asset rotation. We sold six line 2021 amounting to around $2 7 billion, Brazilian reais gains and 6 billion Reais and asset rotation proceeds.
Speaker Change: Including the asset rotation deal concluding concluded last week on what 'twenty one.
Speaker Change: Currently we hold seven transmission projects of these three are under construction.
Speaker Change: The lines that we won in March of 'twenty 'twenty four.
Speaker Change: And the investment associated with this is $2 6 billion Brazilian reais. So.
Speaker Change: <unk> 5 billion euros.
Speaker Change: The regulators expect those projects to enter operation between 2027, and 2028 and we expect to reach.
Speaker Change: Double digit equity IRR with these projects.
Speaker Change: On the right hand side of the slide regarding our asset base, we expect that to continue growing through the period of 2025 to 27, reaching $6 7 billion Reais in 2027.
Speaker Change: Regarding wind and solar on slide 11.
Speaker Change: As I mentioned and I've mentioned already previously two gigawatts of new capacity to be added in 2025 on track all projects under construction around 70% of the targeted additions with expected commissioning by year end.
Speaker Change: Just giving you a little bit more color on these additions in terms of geography, the U S and Europe, representing 80% in terms of technology mix, approximately two thirds of new capacity coming from solar and storage.
Speaker Change: I wanted to take an opportunity to talk.
Speaker Change: Talk about supply chain strategy. Because this is something that we've got a lot of questions on so we adjusted our supply chain strategy over the last two or three years since.
Speaker Change: We had an incident back in 2022 and 'twenty three.
Speaker Change:
Since then we've prioritized the use of domestically manufactured equipment and established partnerships with U S based suppliers.
Speaker Change: <unk>.
Speaker Change: This allows us to mitigate the risks associated with an import tax.
Speaker Change: <unk> 25, and 26 secured capacity, we've already ensured the necessary infrastructure to keep their projects on track most of the equipment is already in the U S are not subject to tax because it's either domestically made or are there specific to exempt.
Speaker Change: And so we estimate tariffs will have limited impact on our revenues and our secured capacity totaling less than $25 million.
Speaker Change: Around 1% of these projects Capex.
Speaker Change: I also wanted to just highlight here our multiyear agreement with first solar we announced that back in March of 2023, and that ensures access to the U S manufacturers of solar modules and it gives us a lot more visibility and comfort surrounding our project pipeline for 2026 and 27.
Speaker Change: On the Ppas, we continued to see strong resilient demand, mostly back by regulated utilities and corporate entities.
Speaker Change: Non PPA pricing.
Speaker Change: They would be adjusted depending on market changes.
Speaker Change: The same time the inflation reduction tax credits framework remains a key pillar for our investment strategy, even yesterday we've had.
Speaker Change: Several Republican finding a letter.
Speaker Change: Defending the maintenance of these tax credits.
Speaker Change: Around one five gigawatts of projects secured under safe Harbor agreements and we've protected our developments from potential legislative adjustments. So all in all confidence in our efforts in the supply chain management that will pay off and that we can continue to grow in the U S and a sustainable and value enhancing way.
Just.
Speaker Change: Another two slides before I pass it over to <unk>, one talking about efficiency on slide 12.
Speaker Change: I wanted to just highlight here that you think this is continues to be a key competitive advantage.
Speaker Change: Spending last time.
Speaker Change: Focusing on this and this has been reflected also in our numbers as of the first quarter of 2025, Opex decreased 2% nominal year on year. If you look at the 23 numbers, we can see continuous decrease of minus 3% versus the first quarter of 2003 in nominal terms.
Speaker Change: Meaning a decrease of 8% versus the first quarter of 2020 in real terms because over this period, we had around 5% of inflation.
Speaker Change: 3% nominal decrease of around 8% real decrease I think this is really impressive.
Speaker Change: When you think that over this period, we grew our installed capacity by 11%.
Speaker Change: We grew our distribution network, we grew our transmission.
The business so.
Speaker Change: This is the result of several measures I mean these efficiencies, we've obviously simplified our corporate structure we have.
Speaker Change: Resized and restructured some of our platforms, we've increased digitalization and automation.
Speaker Change: As a way to optimize the workflows and resources.
Speaker Change: And these aren't having an impact on edp financials, and they will continue to do so in the coming years. So.
Speaker Change: Growth.
Speaker Change: And decreasing costs I think that's a fantastic equation to keep tight control over opex.
Speaker Change: Really prioritizing cash flow generation and shareholder value.
Speaker Change: And with that that brings me to guidance for the year I think we're looking at sort of.
Speaker Change: Strong integrated generation supply business.
Speaker Change: Helping us feel very comfortable about our EBITDA at $4 8 billion net profit $1 2 billion.
And net debt around 16 billion for the end of the year, let's.
Speaker Change: Let's say structural improvements from the flexible generation activity, obviously had a very good first quarter and so a strong start to the year, we have hydro generation above average in the first quarter.
Speaker Change: And in April instead of high reservoirs in May So we can manage over the next couple of months, how resilient electricity networks.
Speaker Change: The underlying business is positively impacted by by this growing electricity demand.
Speaker Change: Inflation update on the revenues.
Speaker Change: Wind and solar is having an increased contribution from new capacity added in the fourth quarter of last year.
Speaker Change: But on the other hand, we have and are expecting lower asset rotation gains this year versus 2024.
Speaker Change: On the negative side, we are facing weaker dollar and Brazilian real versus the euro.
Speaker Change: And so.
Speaker Change: Putting all that together means that we are confident in delivering that guidance for 2025.
Speaker Change: Net debt guidance at 16 billion for the year, we're assuming around 2 billion of asset rotation proceeds mainly from from EPR.
Speaker Change: And also assuming around 1 billion of tax equity proceeds.
Speaker Change: And then looking forward, we are working on a new strategic update for 2026 onwards that.
Speaker Change: That will take into consideration the new regulatory frameworks.
Speaker Change: Or the electricity networks in Spain, and Portugal, and hopefully we will also have more visibility on the outlook regarding the energy policies in the U S. So we expect it to have more visibility on the inflation reduction act, how that sort of settled down over the next couple of months and so all of this will feed through into the new strategic updates from 22 six onwards.
Speaker Change: And with that.
Speaker Change: Pass it over to <unk>.
Speaker Change: For the financials. Thank you.
Speaker Change: Thank you Miguel and good morning to you all so let's move to slide 15 to start reviewing the financial performance of the first quarter. The recurring EBITDA reached one 4 billion years, that's an increase of 6% year on year or 8%. If we exclude the forex impact in the in this period and this is basically reflecting the RIN.
Speaker Change: Rubles clients in the energy management being up by 134 million euros.
Speaker Change: As Miguel said before by the Hydro client and energy management, which benefited from higher Flex generation also improved power prices in Iberia year on year also edp are with an improved underlying performance year on year.
Speaker Change: 33 million euros up.
Speaker Change: It actually 81 million euros up if we were to exclude the essar efficient gains that if you recall were 58 million in the first quarter last year.
Speaker Change: Networks, they are down by 72 million euros, but this reflects the absence of asset rotation gains this year versus $76 million last year. So if we exclude the gains EBITDA from the segment increased 4 million years year on year following the strong electricity demand.
Speaker Change: Lots of different geographies and the performance across the different geographies and.
Speaker Change: Finally, I would like to highlight.
Speaker Change: The efforts on efficiency in the growth Capex opex decreasing 2% year on year nominal terms. So the efficiency measures, we have been implementing already positively impacting the bottom line.
Speaker Change: If we now go through the segments and we go to slide 16, just a quick wrap up on the ETP outperformance, which we have detailed yesterday, so underlying EBITA went up 20% and improved performance year on year and this is on the back of 70% growth in installed capacity.
Speaker Change: Following record divisions in the first quarter in the fourth quarter of 'twenty four.
Speaker Change: Improved wind resources versus the first quarter last year with the renewables index at one for central point above the long term average and these two.
Speaker Change: 2% to 10% increase in electricity generation or the other.
Speaker Change: And the average selling price decreasing 5% year on year to 57 years per megawatt hour.
Speaker Change: This is a combination of lower realized prices in the European portfolio as I said yesterday. It has to do with the shift in terms of the energy mix.
Speaker Change: With higher weight from regions that have low prices also lora average hedging prices, but partially offset by higher realized prices in U S.
Speaker Change: <unk> EBITDA increased 5% year on year with the underlying performance being mitigated by no asset rotation gains in the first quarter. This year versus the 58 million capital gains that we had in the first quarter 'twenty third quarter.
Speaker Change: Now going to the ER.
Speaker Change: To the segment of generation and supply the integrated margin. So on the slide 17, a deep dive on the EBITA.
Speaker Change: Regarding EBITA on the segment increased 27%, reaching 523 million euros. This quarter. This is really great performance.
Speaker Change: This is obviously backed by our integrated business in Iberia, where we saw a high demand for flexible generation and backup services.
Speaker Change: Generation in Iberia was 13% below year on year as we took the opportunity to substantially increase the reservoir level system to get so I think I'll start before.
Speaker Change: And obviously these follows the strong hydro resources in the quarter, which were 42% above the average versus and it actually versus our expectation we generated an additional <unk> five terawatt hours that were sold at much higher prices versus last year. So if you recall electricity prices the spot price increased 90%.
Speaker Change: So almost doubling versus the first quarter of 2024 to 22.
Speaker Change: This quarter, where the price booked was 85 years per megawatt hour for the average price on the market was $85 per megawatt hour.
Speaker Change: Reservoir levels at 93% as early May and therefore this brings us.
Speaker Change: This gives us confidence for the upcoming quarters.
Speaker Change: Slide 18.
Speaker Change: So really solid performance on the network segment accounting for 30% of total group EBITDA.
Speaker Change: From the segment, excluding gains to pretty much flat or slightly up year on year.
So a $60 6 million increase in Iberia.
Speaker Change: Knowing the increasing electricity distributor so additional 3%.
Speaker Change: So the ingredient supply points, 1% year on year.
Speaker Change: I think it's worth highlighting that we continue to see a strong increase of connection requests related to the energy transition when before new renewable power to be connected that has increased 25% year on year.
Speaker Change: In Brazil, EBITDA, excluding gains relatively stable year on year with the 7% increase in electricity demand being offset by the FX impact in this period. So if you look to the underlying values in Brazilian real both in distribution and interest mission they are increasing year on year.
Speaker Change: EBITA, including asset rotations was or the capital gains from guests rotation last year was about.
Speaker Change: About 15% below.
Speaker Change: And this is obviously after the 76 million gain in the <unk>.
Speaker Change: Transmission deal that was booked in the first quarter last year.
Speaker Change: So now moving to slide 19, net financial costs in recurring terms increased 8% year on year, resulting from what it had cost up that that increase from four 7% to 49% and this is reflecting a higher Brazilian real denominated costs a bet if we exclude.
Speaker Change: That the.
Speaker Change: Brazilian real debt cost of debt stays stable at three 2% so caught up that in mostly in euros and U S dollars each stable year on year.
Speaker Change: Also all the other having higher average depth versus the first quarter of 24. So this is what the combined.
Speaker Change: Has this increase of 8% year on year financial cost.
Speaker Change: On the right hand side of the slide average nominal depth by currency shows a decrease of the U S. Dollar denominated depth in line with our strategy to reduce exposure to these guarantee.
Speaker Change: Finally, highlighting that at the beginning of this year, we issued 750 million euros on green bonds with a three 5% coupon.
Speaker Change: More recently, we have signed 500 million years in loan agreements with EIB to fund renewable energy and redevelopment projects.
Speaker Change: I think this shows that we are continued to actively manage our debt and liquidity needs.
Speaker Change: On organic cash flow very quickly.
Speaker Change: Amounted to <unk> 8 billion in the first quarter 'twenty five.
Speaker Change: It says Youre point 1 billion above the first quarter 2024.
Speaker Change: We're really translating debit to performance so a good conversion of operational performance into cash generation.
Speaker Change: On the right hand side of the slide Capex decreased from $1 1 billion to 0.9, we'd.
Speaker Change: We'd like to city networks weight, increasing from 19% to 22%.
Speaker Change: 60% is allocated to Iberia, 40% is allocated to Brazil.
Speaker Change: The net debt on slide 21.
Speaker Change: The first quarter this year stood at $16 1 billion years.
Speaker Change: Main drivers being organic cash flow of <unk> 8 billion.
Speaker Change: This partly funding the cash investments that amounting to $1 2 billion, mainly from investments in renewables and networks, including 0.3 building from payments to PP&E suppliers.
Speaker Change: Lighting upset.
Speaker Change: Slightly offset by a 74 million euros of tax equity proceeds. So as we showed yesterday there was some pause he is already booked in the first quarter. This year from the tax equity in U S.
Speaker Change: I'd also highlight here the share buyback program that we concluded in April this year.
It was a program of $100 million embedding an average price of $2 89 years per share ex dividend.
Speaker Change: So I think it was a very successful initiative, implying a p/e multiple for 25 of nine nine times and a dividend yield of six 9%.
Speaker Change: Overall, we are maintaining solid credit ratios, namely <unk> at 21, 2% and remain fully committed to our triple B credit rating.
Speaker Change: Recurring net profit.
Speaker Change: 439 million euros for the first quarter. This year, that's a 19% increase versus the first quarter of last year.
Speaker Change: At 71 billion in absolute terms.
Speaker Change: Increasing EBITDA, reflecting the strong performance on the operational side also higher DNA and provisions increasing 34 million year on year as a result of our investment back.
Speaker Change: Increased net financial costs doing due to the higher average cost of debt and increased cost in Brazilian reals the nominated debt.
Speaker Change: Higher income taxes, falling high effective tax rate due to the lower asset rotation gains year on year that they have a different tax effects Friedman.
Speaker Change: So higher Noncontrolling interest.
Speaker Change: So excluding capital gains.
Speaker Change: Net profit shows a very strong 69% increase versus the first quarter of last year.
Speaker Change: Again, I think it really is a reflection of the very strong performance on the quarter.
Speaker Change: Cutting across all the different business lines in reported terms net profit increased 21% to 428 million years. So with this I would hand back to Miguel for closing remarks. So thank you.
Miguel: Thank you Harry.
Miguel: So just as a final couple of comments I mean five points first.
Miguel: Good solid first quarter numbers supporting strong underlying performance.
Miguel: Fit up 19% year on year.
Miguel: Driven as you saw by the integrated generation supply business in Iberia improved Edp renewables underlying performance and also resilient electricity networks.
Miguel: Secondly, integrated business an idea we have a positive outlook for 2025 strong first quarter.
Miguel: And also a good April.
Miguel: The month of April reservoir levels that 93% by early May high weight of locked in margin positive prospects for flexible generation.
Miguel: Increased demand for flexibility services and higher intra day price volatility so all of that driving this positive outlook for the integrated business for 2025.
Miguel: And the networks resilient electricity networks significant investment opportunities.
Miguel: Positive regulatory outlook for the next year or 2026 and beyond.
Miguel: Both in Portugal, and in Spain, and also the new regulatory periods and concession extensions for edp speeds.
Miguel: And Oh.
Miguel: New regulatory period for speedy and expect fixed concession ex the <unk>.
Miguel: Concession extension already this month for for speed.
Miguel: On wind and solar good visibility on the 225 additions to two gigawatts on time and on budget and all under construction and the supply chain under control and limited exposure to import tariffs in the U S.
Miguel: Finally, the overall 2025 outlook I think we feel comfortable we have good visibility on the underlying underlying performance in the business segments.
Miguel: Enforcing our integrated utility with a low risk controlled profile.
Miguel: The 2025 guidance for EBITDA is still at $4 8 billion net profit $1 2 billion net debt of $16 billion around $16 billion.
Miguel: And finally as I mentioned earlier, we expect to do the capital markets day in November of 2025, providing a strategic update post 2026.
Miguel: And by then we expect to have already better physical with you on the regulatory outlook for the distribution and also on the energy policies, particularly in the U S.
Miguel: With that I'll stop there and turn it over to Q&A. Thank you.
Thank you, ladies and gentlemen, the Q&A session now as a reminder, if you wish to ask a question. Please press star followed by five on the telephone keypad.
Miguel: Thank you so I would ask at least two to take only two questions.
Miguel: Each person so the first two questions come from the line off of a pivotal <unk> from National Bank.
Miguel: Please go ahead.
Speaker Change: Hi, Good morning, Thank you for the presentation and taking my questions and my first question is on the structural improvement team second civil generation.
So clearly backup services and pumping spreads arent performing very well in the current context looking ahead.
Speaker Change: We are still shut off of batteries in Iberia.
Speaker Change: Anything that you can stop and even stronger demand for balancing services and even higher power price volatility and therefore, a higher contribution of these assets in the next few years.
Speaker Change: And the second question is on the full year 2006 guidance if you can.
Speaker Change: Right right at this stage of the guidance for next year. Despite the weaker FX that we have right now will then.
Speaker Change: Integrated portfolio and I view, it and be able to compensate for that and also how much assets rotation gains that should we expect for next year as the sector of advanced vintages in ETP our portfolio.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay. Thank you.
Speaker Change: So.
Speaker Change: Great point here.
Speaker Change: Question I think.
Speaker Change: Certainly as you say without a significant amount of additional batteries.
Speaker Change: I mean, we will expect to continue to see sort of these high spreads between peak off peak, that's just a function of the energy mix that we have currently in the Iberian Peninsula.
Speaker Change: And then obviously depending on the weather you could have higher volatility.
Speaker Change: The intraday market, but I'd say that in general we expect that flex Gen will continue to be a strong contributor going forward or.
Speaker Change: It's been increasing over the last couple of years and we expect that it will stay like that and also going forward until we have a significant.
Speaker Change: Mount of additional batteries or some structural change in the market, which we're not seeing.
Speaker Change: On the 2026 guidance, yes, I think we are.
Speaker Change: So we're keeping the same assumptions.
Speaker Change: We have no reason to change that at this point, we continue to see sort of energy prices, which is obviously one of the big drivers still if anything or even slightly higher than what we the guidance we've given.
Speaker Change: When we gave it out last year in 2024.
Speaker Change:
Speaker Change: In terms of FX I mean, FX is pretty volatile so we're not.
Speaker Change: Making any big adjustments for that I think there are positives and negatives, which can offset each other.
Speaker Change: On the asset rotation gains.
Speaker Change: I don't think we've given out that that's a specifics yet so I would keep it.
Speaker Change: For now I'll, just take that overall guidance between the various different pieces and packaging and then obviously, we can provide further information when we come back to the market probably in the capital markets day in November.
Speaker Change: Thank you.
Peter: Thank you Peter.
Speaker Change: Question comes from the line of Javier Garrido from Jpmorgan. Please go ahead.
Javier Garrido: Yes, good morning, everyone. Thanks for taking my questions.
Javier Garrido: I want to stick to two first one would be if you can comment on the impact on edp from the disconnect between the Portuguese and Spanish power markets, and the resulting higher prices impact of a change the blackout.
Javier Garrido: And the second question obviously.
Javier Garrido: Jonathan did 25 guidance, which is just still making me scratch my head.
Javier Garrido: One 2 billion net income guidance for 2005.
Speaker Change: <unk> Central case scenario, what do you see the worst case scenario with information that you have today. Thank you.
Javier Garrido: Yes.
Javier Garrido: So in relation to your first question.
Javier Garrido: I mean, we don't have an estimate of impact, but I'd probably break it down into so there was that the actual day, which there was no no energy during that day.
Javier Garrido: And then there are a couple of days after that when there was.
Javier Garrido: But basically quite a strong market splitting.
Javier Garrido: And no imports from Spain, but we are now back to.
Javier Garrido: And whether it's already flux of energy going between both countries. So we expect that this is now normalizing and so overall, we're talking about maybe a couple of days with some markets higher than normal market splitting that.
Javier Garrido: But we don't expect that at least based on the information that we have that would have any material impact.
Javier Garrido: In relation to the 2025 guidance.
Javier Garrido: What I can say is it's arm.
Javier Garrido: Best estimate as of today, and so we're comfortable with that number or we feel even more comfortable than we did before.
Javier Garrido: But there's obviously still several months ahead of us and so that's.
Javier Garrido: No.
Javier Garrido: It's a realistic number.
Javier Garrido: And if we if later down the road, we see reasons to change or to updated obviously you guys will be the first to know but.
Javier Garrido: But as of today, I would say to realistic outlook.
Speaker Change: Thank you yes. So the next question comes from line of Al <unk> from Goldman Sachs. Please go ahead.
Speaker Change: Good morning, and thank you for taking my two questions actually.
Speaker Change: Topics I mean, your net income before asset rotation gains.
Speaker Change: Is there any 40 percentage of your guidance for 2025 show with high levels of reservoir.
Speaker Change: Can I ask you what concerns yeah.
Speaker Change: Prevented you from updating guidance for 2025.
Speaker Change: What.
Speaker Change: <unk>.
Speaker Change: You have seen that our services I mean, you're talking about 1.1, 0.2 or beyond but I suspect that our services are not hedged right patent on their productivity.
Speaker Change: The market. So do you worry that there's going to be because of a contraction in ancillary services or do you think that was gonna be stable as well.
Speaker Change: Why is that.
Speaker Change: It might have fallen shy trying to understand why not changing Apple Canadian I should say guidance right now.
Second question is on Spanish allowed returns I'm, not asking you to comment on press reports or media.
Speaker Change: But for me to understand the way you're thinking about it.
Parents were to come out of the six 5% nominally not say without any any extra add ons.
Speaker Change: Would you still obligated capex in Spain or mining.
Speaker Change: Allocate debt right.
Speaker Change: Right now were projected to be honest, so should we see capex go back happening or maybe you keep it could be.
Speaker Change: Share buyback.
Speaker Change: So well watch will be the best use of copycat if returns in Spain don't go to where the industry seems to have been asking.
Speaker Change: I leave it that we just haven't had the basketball and ETP and buy out. Thank you.
Speaker Change: Okay.
Speaker Change: So well just listening to your second question I think.
Quite simply.
Speaker Change: We've seen speculation about our expectation of our reports about the six 5% I think but the sector has been asking for a seven and a half.
Speaker Change: Six and a half seems low.
Speaker Change: If you want to attract private investment.
Speaker Change: Which we think is obviously very necessary in February and peninsula.
Speaker Change: Obviously, it's not just about the the returns. It's also about other regulatory assumptions and so we have to see all of the framework preferred taking a decision on whether we increase investments or not.
Speaker Change: But what I'd say is we would certainly hope and expect.
Speaker Change: I think it is desirable for the system as a whole.
Speaker Change: The two of them are.
Speaker Change: The higher than the six and a half.
Speaker Change:
Speaker Change: On the net income.
Speaker Change: A couple of things so first we.
Speaker Change: We obviously had good gas.
Speaker Change: Margins and events.
Speaker Change: Events last year.
Speaker Change: Which are not.
Speaker Change: We're not expecting this year again, including things like the inaccuracy and stuff like that which we're not recurring versus last year.
Speaker Change: Also we had hedged this year at 70 versus around 90 last year. So also for the rest of the year. That's what we're looking at sort of this.
Speaker Change: Lower hedge numbers that we had versus last year.
Speaker Change: And also in terms of market prices for example in April there were slightly lower.
Speaker Change: We had a very good first quarter with the sort of $85 per megawatt hour, but but April come down.
Speaker Change: So we're also being prudent in terms of.
Speaker Change: Power prices sort of over the next couple of months.
Speaker Change:
Speaker Change: And so the services I think we're assuming this is pretty much stable going forwards.
Speaker Change: I mean, the combination of all of these things make us feel comfortable with the guidance.
Speaker Change: As I say.
Speaker Change: If we have reason to then.
Speaker Change: Great at any point, obviously, we would let you know but as of today, we would certainly reiterate our existing guidance of the $4 18 to 1.2.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: I think all of that.
Speaker Change: The next question comes from the line of Ali Jeffrey from Deutsche Bank. Please go ahead.
Speaker Change: Thanks.
Speaker Change: Back to the next generation.
Speaker Change: I find the correctly I think in 'twenty, three pump storage did $50 million and next year and if you say, it's maybe around $100 million, maybe you could comment on that.
Speaker Change: West storage at TCT.
Speaker Change: I'm on slide $200 million I'm, just interested to see how the city.
Speaker Change: Next generation X pump storage, how that's changed from last year. This year and then <unk>.
Medium term for the hydro out there and supply business. The previously guided medium term for around 900 million to that business given the structural changes with potentially starting to see do you see that number now being a bit higher given the.
Speaker Change: As always had more sunpower and first safety services. Thank you very much.
Speaker Change: Alright.
Speaker Change: Do you mind repeating the question because I have to say I wasn't plus can you repeat sorry.
So I was just asking are asking about.
Speaker Change: The flex EBITDA number this year, but you see that's about $300 million.
Speaker Change: Just trying to understand for how much of that.
Speaker Change: <unk> pumped storage.
Speaker Change: How much of that $300 million CCT.
Speaker Change: And the rest of you will have ancillary services I'm just trying to understand how the rest of that is growing from last year. So have you seen how much have you seen yet CDB services benefit increase this year versus last year, how much how much that contributed to higher EBITDA and then the other question was just medium term I think you've got it.
Speaker Change: Baidu Iberia being about $900 million on a normalized basis and just given the structural changes announced after you potentially see around ancillary services integration desire to Sunpower in Spain, do you see that 900 million big and medium term being higher.
Speaker Change: Okay got it. Thank you very much so again on this failure of services.
Speaker Change: And flex generation.
Speaker Change: Hard to say, how much but yes, we are expecting it to slightly go up.
Speaker Change: And as Miguel was saying I mean, we see it as an outcome of what is happening.
Speaker Change: Structurally in the sense of what is the current market matrix in the that's how or why we see that upside so.
Speaker Change: And then we can follow up offline.
Speaker Change: We can help you do the settlement bleeding between what is a cc GT versus other elements of the NCR the ARY services.
Speaker Change: And on that.
Speaker Change: And you're right basically we set or is that sort of a cruise speed this up.
Speaker Change: Second momentum of the business should be around 0.9.
Speaker Change: I think back in February we also stated that this could be around as your 0.9 1 billion actually.
Speaker Change: Xactly because of what do we see.
Speaker Change: Some of the contribution from this.
From the hydro pumping spreads versus the base oil prices the contribution of the different ancillary services.
Speaker Change: Yes, I think that we are looking to that segment more towards the building as opposed to the does your appointment, but we can follow up offline on the other topics.
Speaker Change: Thanks very much.
Speaker Change: Thank you Ali.
Speaker Change: The next question come from the line of shows human range from give you kept on Josh. Please go ahead.
Speaker Change: Good morning.
Speaker Change: Questions.
Speaker Change: First one.
Speaker Change: As it relates to.
Speaker Change: So the potential of <unk>.
Speaker Change: Thermal plants in Portugal.
Speaker Change: So called Black start.
Speaker Change: What type of remuneration could you get from drag if any.
Speaker Change: If you were to feed.
Speaker Change: No more plans to meet these type of Oh facility.
Speaker Change: And the second one is related with your outlook for the distribution in Portugal. If you can give us not getting in advance of the of the capital markets day of November, but if you could give us some idea about what would be the impact in the gross margin off distribution in Portugal from the Capex plan that you presented to the regulator.
Speaker Change: Thank you very much.
Speaker Change: Thank you Josh.
Speaker Change: So in relation to the black start.
Speaker Change: So as you know currently there are two power plants in Portugal that have this <unk>.
Speaker Change: Ability, which is a crystal ball, but one of our hydro plants.
That is what that which is a thermal plants located up in the north which is not ours.
Speaker Change: It's already been announced by the government that there would be two additional.
Speaker Change: Power plants, so I'll give him a.
Speaker Change: The hydro and by sub word hydro as well, which would also be fitted out with the black start.
Speaker Change: I would say that the remuneration I don't have the exact numbers, but its low low single digits.
Speaker Change: Our single digit numbers, we're not talking about material.
Speaker Change: Remuneration for the service.
Speaker Change: On the impact on gross margin I don't have the exact detail.
Speaker Change: And so I believe that for for later, but obviously.
And what we've said in the past is that.
Speaker Change: This increased investment over the next couple of years would lead to mid single digit growth in Robins.
Speaker Change: Over that period.
Speaker Change: And so then you can probably back out with what that means in terms of increase in gross margin.
Speaker Change: Yes.
Speaker Change: Thank you.
Thank you Josh.
Speaker Change: The next question comes from the line of Arthur <unk>. Please go ahead.
Speaker Change: Thank you for taking my question. The first one is on them.
Speaker Change: On the international networks, So, Brazil and Nigeria.
Speaker Change: I think on the last conference call you had talked about $1 6 billion euros.
Speaker Change: <unk> network in 2026 I was wondering if you would expect any improvement from that given the regulatory review on the.
Speaker Change: In Brazil that you talked about in the presentation as well as the <unk>.
Speaker Change: The regulator opinion on the on the investment plan for coming years and maybe your.
Speaker Change: Updated expectations on the two regulatory reviews in Iberia.
Speaker Change: So that would be the first question.
Speaker Change: The first one is just.
Speaker Change: The CMT in November and I'm conscious that you probably can't say much at this stage I was wondering how you think about financial leverage basically we do go for you would be to have de levered significantly by November in order to have a less conservative business plan on capital deployment, whether it be focused on growth and invest.
Speaker Change: It's all cash distributions.
And I was wondering actually if maybe one of the reason why do I do.
Speaker Change: Guidance for 25000 increases that maybe you assume some dilution from disposal.
Speaker Change: Is the idea to deliver de lever gradually during the business plan and have an approach more focused on disciplined on capital deployment do you have to do.
Speaker Change: Cost of the new plan. Thank you very much.
Arthur: Thank you Arthur.
Speaker Change: So in relation to the first one.
Arthur: The guidance that we gave regarding networks.
Arthur: Already include some assumptions regarding sort of an increased investment and return. So obviously, we're already even though we don't have the numbers or even a draft proposal, but we already had certain assumptions built into that.
Arthur: And to that guidance number and then obviously, what we'll have is confirmation in sort of the final numbers and so we'll be able to think of it more precise value, but we already had.
Arthur: A certain amount of assumptions in terms of increased investment and returns in that.
Arthur: English into the second question.
Arthur: I mean, as you know or so.
Arthur: Who and I have mentioned many times, our our commitment is to the triple B.
Arthur: And making sure that we maintain that at all times.
Arthur: And then what we do is essentially trying to triangulate between.
Arthur: Growth balance sheet.
Arthur: And dividends.
Arthur: And so that's the.
Arthur: That's the balance that we'll be doing for the capital markets day, So we're not trying to.
Arthur: Preempt or to an additional acceleration.
Arthur: Above and beyond what would be necessary to keep the triple B form for the capital markets day, We're just trying to make sure that we are.
Arthur: <unk> able to keep this balance between these three points.
Arthur: And hopefully, we'll give more detail on the capital markets day about.
Arthur: What our growth rate is what our dividend policy will be and also what we expect in terms of.
Arthur: Ratios and balance sheet.
Arthur: In the coming years.
Arthur: But don't read anything into the dilution to read anything into the dilution disposals or anything I think the only thing maybe which I Didnt mentioned on a previous question I think from a couple of their space, but don't forget that we are also.
Arthur: We increased slightly our guidance for this year.
On the integrated margin.
Arthur: And we decreased it slightly on the APR side because of lower.
Arthur: Lower capital gains.
Arthur: Okay.
Arthur: But that's really the only thing you should take into account.
Arthur: Thank you. Thank you. Thank you.
Arthur: Thank you Arthur.
Speaker Change: Our next question from the line of West Hollywood Wonder from UBS. Please go ahead.
Speaker Change: Hi, Thank you. Thank you for the presentation. My question on my side, just one follow up on the on Alberto's question is excuse me and ask about the potential buyout of Philippe Arab brother question also including these this topic I mean, we've got some from time to time rumors about potential approaches.
Speaker Change: From you or to you with different.
Speaker Change: Options that might be as you probably seen them all.
Speaker Change: I was wondering what would be your view on any sort of like become on a corporate transformation. So basically whether the message how centene anyway and that obviously includes any potential change in the structure or the corporate structure within ETP and API.
Speaker Change: <unk>.
Speaker Change: Thank you.
Speaker Change: I'll give the same answer which I've given many times before I mean.
Speaker Change: So in relation to the structure.
Speaker Change: We're very comfortable with the with the current structure and in terms of.
Speaker Change: Big M&A.
Speaker Change: What we're really focused on as a management is on delivering value and as I showed that's growing the company. It's.
Speaker Change: Being more efficient decreasing costs.
Speaker Change: Yeah.
Speaker Change: Dissipating the dividends as we did this year are making sure we're able to sort of have a <unk>.
Speaker Change: Good shareholder return policy, whether it's dividends and share buybacks. That's our key focus that's what we are.
Speaker Change: Are they working out.
Speaker Change: And I certainly wouldn't want to speculate on anything else apart from that.
Speaker Change: Thank you.
Speaker Change: Hello. So next question is from line of.
Speaker Change: From Bernstein.
Speaker Change: Please go ahead.
Speaker Change: Hi, good morning, and thank you very much for taking the questions.
Speaker Change: My question is about the energy hedges, especially maybe if you can provide some more color about how for the hydro wind solar what what are the levels for 25 36, you have had something in the $4 97.
Speaker Change: On the other one would be related to the capex.
Speaker Change: Renewables, especially solar to outside the U S. In the U S pack the capex to come down.
Speaker Change: And if that could boost.
Speaker Change: The profitability of some of your projects you are already with some of the procurement opened.
Speaker Change: At this stage, thank you very much.
Speaker Change: Hi, Jorge it's Greg here, so in what concerns hedges for this year as we said already we are at around 70 euros per megawatt hour.
Speaker Change: If we look into 2026, we have already some hedges done at around 63 U S per megawatt hour. So that's and that's for about three point I mean, nearly four terawatt hours. So I would say good pricing above what you currently see is forward curves.
Speaker Change: The market in the Capex in the U S. I'm, sorry, do you mind repeating the question because I'm not sure if I followed.
Speaker Change: Okay.
Speaker Change: Yes, if if you do well what is happening with the tariffs in the U S or do you think that the solar capex outside the U S simply because of the oversupply of the Chinese.
Speaker Change: Suppliers.
Speaker Change: Can be low and these can create an opportunity for some project in which the procurement is still open. So the PPA closed by the Capex coming down and then and then creates an opportunity for increasing our Irish.
Speaker Change: Yeah, Okay got it. Thank you so maybe you're starting to actually I mean, what we have seen is that the solar module pricing is.
Speaker Change: At minimum levels versus last years. So at some point I think it's hard to consider that it can continue to go down.
Speaker Change: And as you see some of the smaller manufacturers and their numbers are looking great.
Speaker Change: Then if you look to the other components on the on the Capex I would say, it's hard to think about compressing the labor.
Speaker Change: So my point being that we are not expecting any major shift in terms of non words or reduction on the capex again this will vary region by region.
Speaker Change: So first of all we are not counting on that secondly, so.
Speaker Change: So when we are negotiating the ppas are beating for Cft's, we will take what is the.
Speaker Change: At the moment or what how we are going to work in the Capex. So that we don't open the position in a sense that we would be committing to the power sales without looking at the capex. So to some extent ultimately that if there was any shift in the pricing on the capex side. It start getting reflected on the on the PPA prices.
Speaker Change: But targeting always our spread to 250 basis points spread to work so.
Speaker Change: So I would say that at least we are not seeing a major contraction.
Speaker Change: On the market in terms of the Capex.
Speaker Change: Yeah.
Speaker Change: Thank you. So thank you Jeff So we don't have any more questions from from Atlanta, reaching do when our get pushed supposed to take the call.
Pass to our CEO for final remarks.
Thank you Miguel.
Speaker Change: Final remarks, I mean, obviously.
Speaker Change: And I believe that this is a good start to the year the first quarter and in April I think also good.
Speaker Change: Positive outlook on Iberia integrated business.
Speaker Change: Our networks.
Speaker Change: <unk> type a lesson in terms of asset rotation gains as we talked about yesterday for 295.
Speaker Change: But overall I think feeling good about the business reiterating our guidance for the year.
Speaker Change: And feeling comfortable with that and I think the key messages.
Speaker Change: Obviously, we're going to providing it.
Speaker Change: No information over the next couple of quarters, but we expect to be back in November with a more detailed.
Speaker Change: Analysis of the business and the outlook for the next couple of years. So in November we would give that sort of a strategic update.
Speaker Change: Turning 36, but obviously with additional.
Speaker Change: Information 'twenty five 'twenty six.
Speaker Change: And with that thank you very much and look forward to talking to you again soon.
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