Q2 2025 Enel Americas SA Earnings Call
In fact could constitute forward looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent belief or current expectations of Enel Americas and its management with respect to.
Operator: Victor, and I will be your operator for today. This presentation contains statements that could constitute forward-looking statements. These statements appear in a number of places in this presentation, included statements regarding the intent, belief, or current expectations of Enel Américas and its management with respect to, among other things, Enel Américas business plans, Enel Américas cost reduction plans, trends affecting Enel Américas financial condition or results of operations, including market trends in the electricity sector of Chile or elsewhere, supervision of regulation of the electricity sector in Chile or elsewhere, the future effect of any changes in the laws and regulations applicable to Enel Américas or its subsidiaries. Such forward-looking statements reflect only our current expectations, are not guarantees of future performance, involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors.
Among other things, an Americas business plans and Americas cost reduction plans.
Affecting EM Americas financial condition or results of operations, including market trends in electricity electricity sector of Chile or elsewhere.
The revision of regulation of the electricity sector in Chile or elsewhere.
And the future effect of any changes in the laws and regulations applicable to an Americas 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 our forward looking statements as a REIT.
Various factors. These factors include a decline in the equity and the equity capital markets and increase in the market rates of interest in the United States or elsewhere.
Operator: These factors include a decline in the equity capital markets, an increase in the market rates of interest in the US or elsewhere, adverse decisions by government regulators in Chile or elsewhere, and other factors described in Enel Américas integrated annual report. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enel Américas 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 Américas Head of Investor Relations. Please go ahead.
Adverse decisions by government regulators in Chile, or elsewhere and other factors described in EM Americas integrated annual report.
Readers are cautioned not to place undue reliance on those forward looking statements, which they only as of their dates and Americas undertakes no obligation to release publicly the results of any revisions to these forward looking statements except as required by law I would now like to turn the presentation over to Mr. Jorge beliefs, and America's head of Investor.
Relations. Please go ahead.
Thank you.
Good afternoon, ladies and gentlemen, and welcome to our second quarter 2025 results presentation.
Jorge Velis Espinosa: Thank you. Good afternoon, ladies and gentlemen, and welcome to our Q2 2025 results presentation. I'm Jorge Velis Espinosa, Head of Investor Relations of Enel Américas. Before we begin our presentation, let me remind you that on 1 July, Giuseppe Turchiarelli was appointed as our new CEO, replacing Aurelio Bustilho. We would like to thank Aurelio for his commitment and contribution to our company, and welcome and congratulate Giuseppe on this new challenge. In the coming slides, Giuseppe 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 in 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.
Mm Hmm okay.
Investor Relations for <unk>.
Before we begin our presentation, let me remind you that on July one.
Kelly was appointed as our new CEO, replacing our CLO.
I would like to thank him for his commitment and contribution to our company.
Welcome and congratulate you separate on this new talent.
In the coming slides <unk>, and our CFO Rafael and ASUR 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 in the Companys web site.
Following the presentation, we will have the Q&A session.
Want to make a question please send it through the webcast.
<unk> us through our corporate you may have.
And in America.
Dot com.
Now, let me hand over the call to <unk>, who will start by outlining the main highlights of the period in slide number three.
Jorge Velis Espinosa: Now, let me hand over the call to Giuseppe, who will start by outlining the main highlights of the period in slide number 3.
Thank you Jorge.
During the second quarter of 2025, we had an important increase in investment.
Giuseppe Turchiarelli: Thank you, Jorge. During Q2 2025, we had an important increase in investment in grid business of 26%, isolating the currency devaluation impact. This reflects our commitment to our customers to improve service quality and to be a more resilient company. In generation, we increased by 5% our production, mainly explained by higher renewable capacity and better hydro conditions in Colombia and Central America. EBITDA in this quarter reached $1.06 billion. If we isolate the impact coming from currency devaluation, EBITDA reached $1.16 billion, which is 17% higher than the same period of last year, mainly explained by better results in distribution in Argentina and Brazil, and generation in Colombia and Central America.
Okay.
The first thing.
Isolating the currency devaluation.
These reflect our commitment to our customers to improve quality and could be a more resilient company.
In generation, we increased by 5%.
Mainly by higher renewable capacity and better either home depot in Colombia.
Amit.
EBITDA in this quarter reached 1.0 billion dollar.
I believe the impact on current and devaluation EBITDA reached one.
$16 billion rich.
Which is anything but.
Higher than the same period of last year.
Mainly explained by a better result.
Brazil and Colombia.
Colombia Central America.
Thanks to the deployment of the funds that we received from the sale of ILUVIEN.
Giuseppe Turchiarelli: Thanks to the deployment of the funds that we received from the sale of Peruvian assets, we have been able to reduce our debt level, and financial expense decreased by 37% this quarter compared to Q2 2024. Finally, let me highlight that as of this quarter, due to the accountable reasons, our operations in Peru are no longer considered discontinued operations, meaning that its results are included in the operational part of our financial statements. Before going into details of our operation and financial performance of the period, I would like to present an update of the regulatory topics that we are facing this year in slide 4. During 2025 occurred several regulatory news in our region. Beginning with Argentina, on 30 June, we signed an agreement with CAMMESA and the Secretariat of Energy regarding the settlement of outstanding debt of EDESUR with CAMMESA.
We have been able to reduce our debt level and financially.
<unk> by 37% this quarter compared with the second.
When you quote.
Finally, let me highlight that.
This quarter due to the current the burrito, our operation in Peru are no longer considered.
Operator medium that if the results are included in the operational part of our funnel.
All statements.
Before going into details of our operational and financial past one month of this year.
I would like to present, an update of the regulatory Tobey.
Facing this year in slide four.
During 2025 seven.
Several regulatory news in our region.
Beginning with Argentina.
On June 30, we signed an agreement with companies in the energy sector.
Regarding the settlement of outstanding debt.
So we come in.
These agreements that the timing and the amount to be paid improving the previous condition in terms of offering if payment length of up to 72 installment giving.
Giuseppe Turchiarelli: This agreement sets the timing and amount to be paid, improving the previous condition in terms of offering a payment plan of up to 72 installments, giving a 12-month grace period, applying a lower interest rate, and changing the indexation of part of our debt from energy price to interest rate. This agreement allows us to recognize a positive impact of $99 million at the EBITDA level and $59 million at net income level. This, along with the tariff review completed on 1 May, allow us to have a better visibility on results for the coming year.
Giving at 12 months, great video outlining a lower interest rate and changing the indexation of part of our debt from any Dubai <unk>.
These agreements allow us to recognize the positive impact of.
99 million U S dollar at the BD.
And $59 million mid teen kind of level.
These along with the historical review completed on May 1st.
We're the best visibility for the.
The coming year.
Also in Argentina and took on current contracts.
Giuseppe Turchiarelli: In Argentina, El Chocón current contract expired in 11 August, and we are waiting for the tender condition to be published. We are closely following a potential sector reform that is, at this moment, in early discussions, and among other things, is proposing the possibility of signing bilateral energy contracts and assign a minimum contract level for distribution companies. Moving to Brazil, the concession renewal process is moving ahead with some delay regarding the original timing. For Enel Rio and Enel, technical team has already issued a favorable report confirming full compliance with all legal, regulatory, and operational requirements. For Enel Ceará and Enel São Paulo, we still don't have official news, but we are confident that despite the delay, the process is moving ahead as expected. In Brazil, we are also following a sector reform that is under discussion.
August 11, and we are waiting for the standard conditions to be partners.
Also we are closely following the potential tax reform that is at this moment.
There is discussion.
And among other things.
Closing the possibility of signing bilateral ducommun and define a minimum comfort level of distribution company.
Moving to Brazil, the concession renewal.
Process is moving ahead with.
Regarding the original timing.
And we'll take.
Technical team has already issued a favorable.
Report confirming full compliance with all legal regulatory and operational requirements.
But in Sierra and <unk>.
We still don't have official news, but we are confident that despite the delay the process is moving ahead.
In Brazil. We are also following a sector reform that is under discussion.
A key pillar of this restaurant.
Sorry.
Market liberalization.
Giuseppe Turchiarelli: The key pillar of this reform are tariff justice, market liberalization, and sector balance, reviewing subsidies for the new renewable generation. We expect to have news about this in the coming months. In Colombia, the commercialization tariff revision process is moving ahead. While the distribution tariff process, the new guidance for the process were published in 25 July and are open for comment until September, acting as the first assessment step for the process. In generation business, a law project draft that caps at 5% the energy sales of hydro projects in the spot market is under discussion. Let's analyze our investment of the field in the coming slides. During Q2 of the year, our CapEx increased by 5% compared to the same period of the last year, reaching $739 million.
<unk> balance of reviewing the subsidies for the new.
Renewable generation.
We expect to have news about.
These in the coming months.
Finally in Colombia, the commercialization tariff revision process is moving ahead.
While the distribution tariff process the new guidance.
For the process, we're publishing July is going to end.
Operator.
Until then but acting as the first assessment for the process.
In generation business, a low project dropped the top 5% energy sales either for this in the spot market is.
Awesome.
Now, let's summarize our investment of the field in the coming slides.
During the second quarter of the year.
Our capex increased by 5% compared to the same period of the last year, reaching 739 million.
This is mainly explained by higher Capex in Greece in Brazil, and Argentina, and incineration in Colombia.
Giuseppe Turchiarelli: This is mainly explained by higher CapEx in Greece, in Brazil, and Argentina, and in generation in Colombia. 52% of the total investment were devoted to Brazil and 35% to Colombia. We see that Argentina is becoming more relevant in terms of investment, with a 13% of the total investment. In terms of business line, 72% of the total CapEx was allocated to Grid and 27% to generation. Regarding Grid CapEx, this quarter grew by 16%, and investment devoted to the network of Grid increased by 39% compared to the same period of last year. Let's now analyze Grid operational highlights in slide 6. Electricity distributed reached 26 TWh in Q2, basically flat compared to the same period of the last year. This is explained by higher sales in Colombia and Argentina, offset by lower sales in Brazil.
52% of the total investments were devoted to Brazil, and 35% to Colombia.
<unk> is becoming more relevant in terms of investment with the 15% of the total investment.
In terms of business line seven 2% of the total Capex was allocated to breed and 27 two generation.
Regarding Greece Capex this quarter grew by 16%.
In investment devoted to the network upgrades increased by 39% compared to the same period of last year.
Let's now analyze Greek operation highlight utilized.
Electricity distributed reached three six.
Instead of one hour in the second quarter basically flat compared to the same period of last year.
This is explained by higher sales in Colombia, and Argentina, offset by lower sales in Brazil.
Regarding number of customers, we had an increase of 420000 in the last 12 months, reaching 328 million customers.
Giuseppe Turchiarelli: Regarding number of customers, we had an increase of 420,000 in the last 12 months, reaching 22.8 million customers. Smart meter increased by 71%, reaching 1.7 million in this period, mainly due to the deployment in São Paulo. Net RAB and net RAB per customer increased 12% and 10% respectively, isolating the impact of the currency devaluation. This reflects the significant investment that we are doing in our network. In terms of quality indicator, we can see that SAIDI improve in all subsidiaries except for EDESUR, while SAIFI show mixed results. Regarding energy losses, we improve in Enel Ceará and remain flat in Colombia and São Paulo, but increase in Enel Rio and EDESUR. This is mainly consequence of higher temperature registered in the period and higher injected energy. Let's continue with generation operational highlights in slide 7. Installed capacity reached 12.9 GW in this period.
Mark meter increased by 71%, reaching $1 7 million in this video mirror.
Due to the deployment itself out.
Net Rab and network customers increased 12% and 10% respectively isolating the impact of the currency devaluation.
This reflects the significant investment that we are doing in our network.
In terms of quality indicator, we can see that fade, improving all subsidiaries, except for editorial while say official mixed results.
Finally regarding the losses, we improve.
And remain in place in Colombia in Sao Paolo.
But the increase in and every year and is it too. This is mainly consequence of higher temperature resistance in the PEO and hiring.
Okay.
Let's continue with generation operational highlights in slide 10.
Installed capacity reached 12 nine gigawatts in this field.
Compared to June 2024 capacity increased by 0.1 gigawatt due to higher renewables capacity in Brazil.
Giuseppe Turchiarelli: Compared to June 2024, capacity increased by 0.1 GW due to higher renewable capacity in Brazil. Let me underline that 98% of our capacity is renewable. We're currently working on additional 0.5 GW of capacity under construction. These are two solar projects located in Colombia, Guayepo III and Atlántico, which will be concluded between 2025 and 2026. Regarding energy balance, we can see that in this quarter, we increased our sales by 6%, reaching 17.6 TWh. From this, 10.6 TWh coming from our own production and 7 TWh coming from purchases to spot markets and third parties. The increase in sales is explained mainly by Brazil and to a lower extent, Argentina and Colombia. Rafael will comment on the financial results of the period in the coming slides.
Linear deadline that 98% of our capacity is renewable.
We currently working on additional <unk> five year of ethanol capacity under construction.
These are two solar project located in Colombia.
<unk>, III and atlantica, which will be concluded between 23, 5%.
Regarding energy balance that we can see that in this quarter, we increased our <unk> by six.
Thanks.
Reaching.
David.
$17 six Terawatt hour.
This 10, six terawatt hour economy from our own production and seven Terawatts hour coming from part to this spot market and third parties.
The increase in sales is explained mainly by Brazil and to a lower extent, Argentina, and Colombia now Rafael will comment on the financial results of the period in the coming slides.
Thank you for your Santa Monica Renewables have you done this quarter, reaching <unk> $6 million decrease of 7% compared to the second quarter of 2020.
Rafael De la Haza Casarrubio: Thank you, Giuseppe. EBITDA this quarter reached $1.06 million, an increase of 7% compared to Q2 2024. If we exclude the negative impact coming from the currency depreciation in Brazil, Colombia, and Argentina, we get to an adjusted EBITDA of $1.16 billion, which is 17% higher when compared to Q2 2024. This result is mainly explained by better results generation in Colombia and Central America due to better hydro conditions, as already explained by Giuseppe, and higher tariff indexation and distribution in Argentina and Brazil. In addition to this, in Argentina, we have the already mentioned extraordinary impact of about $99 million coming from the agreement with CAMMESA, as already mentioned as well. Adjusted Net income reached $0.19 billion in this quarter, which is 172% higher when compared to Q2 of last year.
If we exclude the negative impact coming from the currency depreciation in Brazil, Colombia and Argentina.
Based on adjusted EBITDA of $1 $16 billion, which is 17% higher when compared to the second quarter 2024.
This result is mainly explained by better results in generation in Colombia, and Central America due to better hydro conditions as already explained by this.
Yes, correct indication in distribution in Argentina, and Brazil.
In addition to these.
We have been let me mention a extraordinary.
About 99 million unit the loss coming from the agreement with Pemex.
Somebody mentioned that vessel.
Adjusted net income was <unk> 19 billion in this quarter, which is 172%.
When compared to the second quarter of last year.
The decrease is mainly explained by higher EBITDA and lower financial expenses.
Rafael De la Haza Casarrubio: The increase is mainly explained by higher EBITDA and lower financial expenses. Funds from operations reached $0.59 billion, an improvement of around 42% compared to the same period of last year. This is mainly explained by lower financial expenses and lower tax rate when compared to the previous period. On slide number 10, we will see this quarter's EBITDA evolution and breakdown. Starting from $995 million of EBITDA on Q2 2024, we see that generation had an increase of $36 million, mainly explained by Colombia and Central America due to better hydro conditions. Grid improved by $129 million, including the $99 million from the renewal with CAMMESA already mentioned. In addition to this, we have better results in Argentina and Brazil due to tariff adjustments.
Funds from operations recent Cedar point 59 billion an improvement.
142% compared to the same period of last year.
This is min explained by lower financial expenses, and lower taxes paid when compared to the divisions.
Yes.
On slide number 10, we will see this quarters EBITDA evolution on Paypal.
Starting from 990 595 million you as the loss of EBITDA.
In the second quarter before we see that the innovation at an increase of 36 million mainly explained by Colombia.
Liquor Youtube advertising conditions, it is improved by $129 million, including a $19 million Canadian with commercials already mentioned.
In addition to these we have better results in Argentina, and Brazil, due to tariff adjustments customer.
Customers and slightly decreased like all this we are considering a long 10 million coming from the depreciation.
Rafael De la Haza Casarrubio: Customers slightly decreased, while in others, we are considering $10 million coming from the depreciation currency from the operations in Peru. With this, we get to an EBITDA of $1,164 million for Q2 2025, which represents 17% higher than the same period of 2024. FX had a negative impact of $102 million, resulting in a reported EBITDA for this quarter of $1,061 million. From our reported EBITDA, 47% came from Brazil, 35% from Colombia, 13% from Argentina, and 4% from Central America. In terms of business line, grid represents 62% of our EBITDA, generation 35%, and customers contribute with 2% of the total. Let's analyze cumulative EBITDA breakdown in slide number 11. For H1 of the year, we see that all our business lines have significant increases when compared to the previous year.
The California operations with these we get point of view.
<unk> $154 million for the second quarter wont be quantified, which represents 17% higher than the same period of 2024.
Thanks, Anthony IDP pack of $102 million.
Not in our reported EBITDA for this quarter of 1060 $1 million.
Our reported <unk>, 47% came from Matthew simplified form Colombia has been absent from Argentina, 4% Central America Industrial business line. This represents 62% of our reader generation 35 customers continue with 2%.
The total net satellites.
W dominant slide number 11.
For the first half of the year, we see that all our business lines up significantly.
And to the previous year.
Generation increased by 883.
$83 million.
Rafael De la Haza Casarrubio: Generation increased by $883 million, mainly due to better hydro conditions in Colombia and Central America. Grids grew by $124 million as a consequence of better results in Argentina and the agreement with CAMMESA. In others, we are including our operations from Peru, which amounted to $16 million for this period. With this, we get to an EBITDA of $2,305 million, which is 11% higher than the same period of 2024. FX has a -$226 million impact, resulting in a reported EBITDA for H1 of $2,077 million. In line with the same period of 2024. From our reported EBITDA, 49% came from Brazil, 38% from Colombia, 8% from Argentina, and 5% from Central America. In terms of business line, Grids represent 60% of our EBITDA, Generation 37%, and Customers contribute with 2%.
Mainly due to validate the conditions in Colombia, and Central America, while Greece grew by $124 million as a consequence of better results in Argentina, and the agreement with cancer.
More than in others, we are including our operations <unk>, which amounted to $16 million for the studio.
With this we get to an EBITDA of 2000 305 million units, a loss, which is 11% higher than the same period of 2024.
<unk> has a negative impact of $226 million, resulting in a reported EBITDA for the first half of the year of 2000 $77 million.
In line with the same period of 2020.
From a reported <unk> 19, 49% came from <unk> 88.
38% from Colombia, 8% Jonathan.
Central America in terms of business lines.
60% of our EBITDA generation to 37%.
Estimates contribute with 2% now.
Now we will focus on the gas Mon power.
And the funnel with Halloween and licensees in slide number 12.
Rafael De la Haza Casarrubio: We will focus on the cash flow of our company in the following slide, which is slide 12. Starting from an EBITDA of $2.08 billion, we see that the net working capital of the company for this period amounted to a -$0.55 billion, slightly higher than H1 2024. Taxes paid during the period amounted to $0.2 billion, a lower amount compared with the last year, and this is mainly explained by a lower taxable base in Colombia. While net financial expenses that you see in the center of this chart also improved, reaching $0.26 billion due to lower debt compared to H1 2024. With this, funds from operations amounted to $1.06 billion, which represents an amount significantly higher when compared to the same period of last year.
S&P found on EBITDA.
$2 <unk> billion dollars, reaching that the networking capital of the company for this deal.
Amounted to minus $55 billion and slightly down.
The first half of 'twenty one before.
Notwithstanding the BDO amounted to <unk> 2 billion lower amount compared with the last year.
This is mainly explained by lower table base in Colombia, while net financial expenses that you'll see in the center of this chart.
Also improved reaching silicone $26 million due to lower net debt compared to the first half of 2020.
With these funds from operations amounted to $1, <unk> 6 billion, <unk> reduced which represent an amount significantly higher.
When compared to the same period of last year of the investment Cedar point 95 billion U S dollars, we get to a positive free cash flow and this is very important I underline disciple of around $120 million net.
Rafael De la Haza Casarrubio: After investment, $0.95 billion, we get to a positive free cash flow, and this is very important, I underline this item, of around $120 million. Let's now analyze the debt of our company in the following slide, which is slide number 13. Gross debt amounted to $5.9 billion, an increase of 13% compared to December 2024. This is mainly explained by FX impact and higher debt in Brazil. Net debt reached $2.42 billion, an increase of 97% compared to the end of 2024. This includes positive free cash flow of $0.1 billion, as explained in the previous chart, in the previous slide. Net dividends paid for $0.8 billion, extraordinary operations for $0.9 billion, mainly related to the tax payments in Peru. I reminded that we paid more than $600 million for the extraordinary, for the capital gain that we obtained with the sales completed in Peru in 2024.
Let's now analyze the discipline in the company. The following a night, which is a night none that therapy.
Gross debt amounted to $5 9 billion, an increase of 14% compared to December 2024, and this is mainly explained by the FX impact on how you get both in Brazil.
Net debt to $4 $2 billion, an increase of 97% compared to the end of 2024.
This includes positive free cash flow for Cedar point 1 billion of extending the serious diseases like maybe dividends paid for <unk> 8 billion initial exploding elimination considerable 9 billion mainly related to the tax payments in Peru, and the money that we paid more than $600 million off of it.
Portinari the capital gain that we obtained with the sales completed in Peru.
In 2024 and the.
Due to the payment of the second installment of the pension funding and in Sao Paulo.
Rafael De la Haza Casarrubio: Due to the payment of the second installment of the pension fund in Enel São Paulo. FX, as you see in the right part of this chart, FX has a negative impact of around $0.4 billion. In terms of currency and country, we see that the EBITDA Brazil remains as the largest contributor, while the debt at the holding level represents 10% of the total. Finally, regarding the cost of the debt, we can see an increase for this period, moving from 10.3% to 11.1%, explained substantially by higher interest rates in Brazil. On the next slide, the final slide of this presentation, Giuseppe will conclude with some closing remarks. Giuseppe?
And Youll see in the right type of detail. Thanks, Anthony at the heat map, along with the $4 billion with us in terms of covenants and company, we see that EBITDA.
<unk> remains the largest contributor.
On the debt at the holding level.
10% of the.
Finally regarding the cost of a minute or two that we can see an increase for the studio.
Moving from 10, 3%.
One 1% explained partially by higher interest rates in Brazil.
On the next slide the final terms of the finance side of the presentation. You said, they will conclude with some Washington markets.
Yes.
Thank you Rafael.
We continue focusing our investment in Greek aiming to improve our service quality for our customers.
Giuseppe Turchiarelli: Thank you, Rafael. We continue focusing our investment in growth, aiming to improve our services quality for our customers. EBITDA improved mainly due to better results in distribution in Argentina and generation in Colombia. We continue improving our FFO, mainly due to lower financial expenses, and we keep a solid and flexible financial position, which allow us to execute our CapEx plan.
EBITDA improved mainly due to better results in distribution and has been keen in duration and Colombia, we continue improving our SSO, mainly due to lower financial expenses, and we keep a solid and flexible financial position with shallow out execute our capex plan.
Thank you <unk>.
Thank you for your attention and now we will begin the Q&A session.
Rafael De la Haza Casarrubio: Well, thank you, Giuseppe and Rafael. Thank you for your attention, and now we will begin the Q&A session. First question, coming from several analysts, is regarding the concession renewal process in Brazil. If you can give us an update on how the situation is moving ahead?
Yes.
First question.
Coming from several analyst.
Regarding the concession renewal process in Brazil.
You can give us an update on how the situation is moving ahead.
Yes.
Okay.
Hmm.
For what concern and in Rio.
Giuseppe Turchiarelli: Okay. For what concern Enel Distribuição Rio, Enel has already issued a favorable technical report confirming compliance with legal, regulatory, and operational requirements, as I said during the presentation. An Enel board meeting held on 24 June. One of the director requested a delay on the vote for further analysis. This simply introduced some uncertainty about the timing. We don't have any kind of doubt in terms of the result. We remain confident in a positive outcome, subject to the board's final votes and subsequent confirmation by the Minister of Mines and Energy. For what concern Enel Distribuição Ceará, the renewal process has been assigned to a director, and it is currently under review by Enel's technical team, which is also analyzing a quality improvement plan submitted as a part of the request. For Enel Distribuição São Paulo, the process has not yet been assigned to a director.
And <unk> has already issued a favorable technical report.
Confirming compliance with legal regulatory and operational requirement as I said during the presentation.
And then board meeting held on June 24.
One of the director requested a delay.
On the growth of our first analyze this.
But these.
Simply.
<unk> introduced some uncertainty about the timing, but not.
<unk>.
And but we don't have any kind of doubt in terms of that rhythm.
So we remain confident in a positive outcome.
Subject to the board the final votes and subsequent confirmation by the minister of mines and payments.
For what concern and setup the renewal process has been signed.
Director entities currently under review by <unk>.
And technical team.
Which is also analyzing a quality improvement plan submitted as a part of that question.
So paolo the process up yet.
Been assigned towards direct.
Thank you.
The coming question.
Rafael De la Haza Casarrubio: Thank you, Giuseppe. The coming question regarding generation business in Brazil. Do we expect negative impact coming from poor hydrology and curtailment that we have seen during the year?
Regarding generation business in Brazil do.
Do we expect negative impact coming from poor hydrology.
<unk>.
Curtailment that we have seen during the year.
Well regarding the duration outlook.
The level of the reservoir in the Southeast region currently stand at 64%. So basically it is in line with the level that we had in 2024.
Giuseppe Turchiarelli: Well, regarding the generation outlook, the level of the reservoir in the southeast region currently stands at 64%. Basically, it is in line with the level that we had in 2024. We have seen a slight reduction in hydrology in the last few months, but it is important to consider that the rainy season in Brazil begins in November, it's normal to have a reduction in the reservoir at this point. Regarding the curtailment, as of June 2025, Enel renewable operation in Brazil has been impacted by the cumulative curtailment volume of approximately 1.6 TWh, basically due to the transmission line availability that is clearly outside of our control. The estimated EBITDA impact for Enel Américas totals around $45 million year to date.
We have seen a slight reduction in hydrology in the last few months, but it is important to consider that the rainy season in Brazil beginning in November.
It's normal to have a reduction in the reserve at this point.
Regarding the containment as of June 2025.
Renewable operation in Brazil has been impacted.
By the.
Payment volume of approximately approximately one six.
Yeah.
Basically due to the transmission line and other debt.
Clearly outside of our control.
The estimated EBITDA impact.
And in America totals around $45 million of yesterday.
We are in any case working closely with the city.
System operator.
Giuseppe Turchiarelli: We are, in any case, working closely with the system operator and the CCEE, the Chamber of Commercialization of Electric Energy, in order to address these bottlenecks and minimize the curtailment risk going forward. Additionally, we are working on potential recovery mechanisms through existing regulation or legal alternatives where applicable. In this context, the recent publication of the guidance, PN 115, by the Brazilian Energy Minister, which allows thermal power plants to voluntarily reduce inflexible dispatch during the surplus period is a positive signal. Once implemented, this measure could help relieve pressure on the transmission system, improving overall efficiency and potentially reducing short-term curtailment.
Ian the charmer OLED and into.
Commercialization in order to.
The address.
This.
Bottlenecks and minimize the curtailment relief going forward.
Additionally, we are working on the potential recovery mechanism through existing regulation or legal alternatives.
Applicable.
In this context.
The restaurant obligation of the guidance.
In.
115 by the Brazilian energy Minister.
Which are low thermal power plant to voluntary reduce inflexible dispatched during the third period.
<unk> is a positive signal.
<unk> implemented these measures could.
Relieve pressure on the traditional system improving.
Overall efficiency and potentially reducing show to Cayman.
Thank you.
And now moving to Argentina.
Jorge Velis Espinosa: Thank you. Now moving to Argentina. We have received a couple of questions regarding the El Chocón bidding process.
We have received a couple of questions regarding the.
And took on bidding process.
Yes.
Okay. So let me remind you that sells for corn concession original finished in August 2023.
Giuseppe Turchiarelli: Let me remind you that the El Chocón concession original terms finished in August 2023, but has been extended since then, and now the expiration date is 11 August of this year. The Ministry of Energy is preparing the terms and conditions for a public tender, as well as for other major hydro plants like Cerros Colorados, Salicura, and others. As of today, the official bidding terms, including duration, remuneration scheme, and operational obligations, have not yet been published. Due to this, our current expectation is that the expiry date will be delayed until the terms and conditions for the public tender are published. We continue monitoring the situation and are prepared to assess our participation once the final conditions are released.
But that's been expanded since then.
Now the expiration date is August 11 of this year.
The minister of energy is preparing the terms and condition for a public tender as well as the rather.
Our other major either a plant like.
Set of another solid quarter and others.
As of today, the official bidding time, including duration remuneration scheme and operational obligations have not yet been published.
Due to these our current expectation is that the Paris that will be delayed until the time the condition of the public tender are published we continue monitoring the situation.
Process our participation.
The final condition already.
Thank you and also in Argentina.
Yes.
Now that there is greater clarity on the rules of the game could.
Jorge Velis Espinosa: Thank you. Also in Argentina, now that there's greater clarity on the rules of the game, could EDESUR become a candidate for sale?
Become.
Candidate for sale.
A sewer continues to be a part of our company and the poorly included in our 2025 strategic.
Giuseppe Turchiarelli: Edesur continues to be a part of our company and is fully included in our 2025-2027 strategic plan, which, in a certain way, anticipates the growing contribution from Argentina over the coming years. We are encouraged by the recent positive regulatory signs in the country's electric sector, including steps towards regulatory normalization. We are continuously evaluating all business segments as part of our portfolio management, but right now, Edesur is not currently under strategic review for disinvestment. We will continue to monitor the evolution of Argentina's regulatory and economic landscape, but as of today, we remain committed to the operation and its role within the group.
Strategic plan.
Which.
Second we anticipate the growing contribution from zinc over the coming year.
We are encouraged by the restaurant.
Regulatory sign in the countless effects, including lower regulatory modernization.
We are continuously evaluating all business segment as part of our portfolio management, but right now as it is not currently under strategic review of these investments we will continue to monitoring.
The evolution evolution.
Regulatory and economic landscape, but as of today, we remain committed to the operation.
All within the group.
Thank you.
Going now to Peru.
Jorge Velis Espinosa: Thank you. Going now to Peru.
Can you give us an update on the process of securing natural gas supplies for NLP, Utah.
Giuseppe Turchiarelli: Yeah.
Jorge Velis Espinosa: Can you give us an update on the process of securing natural gas supplies for NL Pura?
Well regarding the latest developments.
I'll remind you that.
Giuseppe Turchiarelli: Well, regarding the latest development, let me remind you that Peruvian government has recently awarded Lot I and Lot VI, both currently in the license agreement in signing phase. In both cases, we have initiated discussions to secure access to the gas, either through renegotiation agreement or formal expression of interest. These lots are expected to become operational by October 2025, which could enhance gas availability and competition in the northern market.
Peruvian government as recently awarded lots, one and peak.
Both currently in the license agreement signing fee.
In both cases, we have initiated discussion to secure.
Access to the gap.
Through.
Our commercial agreements or pharma exploration of interest.
This law.
Expected to become operational by October 2025, which could announce.
Develop and competition in the market.
Thank you.
Now another question from.
Jorge Velis Espinosa: Thank you. Now, another question from Andrew McCarthy. When do you expect to define the group's future capital structure, given the company's current balance sheet leverage?
Lastly, when do you expect to refine the group's future capital structure.
Given the company's current balance sheet leverage.
Thank you very much heavily from the western digital and it was a question just to remind you as I mentioned before that following the divestments apartment assets.
Rafael De la Haza Casarrubio: Well, thank you very much, Andrew, for your question. This is a very good question. Just to remind you, as I mentioned before, that following the divestment of our assets in Peru that we completed for both businesses, distribution and generation, Enel Américas entered 2025 with a strong financial position and low leverage and a relevant amount of cash that you know. This has provided the company, so our group, with the flexibility we needed to navigate key developments such as the distribution concession renewals in Brazil, as Giuseppe explained before, and tariff adjustments across the several countries in the region in which we operate.
In Peru the Recompete.
[music] businesses.
Distribution and generation and an America centric consequent decline, we have strong financial position and low net earnings.
Limited amount of cost.
As you know this has provided the company towards using the flexibility needed to navigate key developments such as the distribution concession renewals in Brazil.
You said this before and that is a governance across the several countries in the beginning which we operate.
The funds were used mainly to reduce expensive debt.
In Brazil to capitalize on what I think is important.
Rafael De la Haza Casarrubio: The funds were used mainly to reduce expensive debts, mainly in Brazil, to capitalize our activities in Brazil to finance our CapEx needs for the following years to reinforce the networks and to avoid new debt, taking into account the current level of interest rates in the country. As these regulatory and operational uncertainties are progressively resolved, we'll be in a better position to assess our outlook and potential decisions. Of course, this is something that we are periodically monitoring and evaluating. You saw in the previous slide when we commented the net debt that, although more or less doubling the net debt of the company from December 2024 to H1 2025, the company remains close to 1x net debt result. It's a very solid, a very flexible financial situation.
To finance, our capex needs for the affordable ASP of imports the networks and to avoid new debt taking into account the current level of.
Ethane ethylene.
As a company.
This resulted in operation in our segment is temporary progressively resolved.
Nevertheless position pluses, Illinois competency and decision support is something that we are purely theoretical.
Clinical monitoring and evaluating.
Okay.
So the business is like the one we commented the net debt that.
So more.
More or less doubling the metrics of the company from December 2024.
Through the first half of 2025.
Company remains close to one times net debt to EBITDA.
The solid of any material tenant categories.
We expect to have net inflows.
Client clarity and be stronger in the second half of the year, but for the moment, we think that is the right position and beyond.
Rafael De la Haza Casarrubio: We expect to have better clarity on this front during H2 of the year. For the moment, we think that is the right position. Thank you, Andrew.
Thank you.
Yes.
We move ahead with the question from <unk> about this <unk>.
Jorge Velis Espinosa: Thank you. We'll move ahead with a question from Fernando Gonzalez about PIS/COFINS, if the 10-year thesis is approved by the Supreme Court on 13 August, what would be the impact on your three distribution concessions in Brazil?
If the 10 year thesis is approved by the Supreme Court on August 13.
What would be the impact on your three distribution concessions in Brazil.
Okay. This is Tom maybe just a little question.
Thank you Austin good remark at.
Rafael De la Haza Casarrubio: Okay. This is a very good question, Hernan. Thank you. Thank you very much. At this moment, at this stage, as you know, there are no material updates to report at this stage. The recovery process remains under administrative and judicial review at this moment. As you mentioned it correctly, the case is scheduled to be discussed by the Supreme Federal Court on 13 August. Regarding the constitutionality of a law which mandates the full transfer of physical things, tax credits related to ICMS exposure to end users is still under discussion. No news. Let's wait what is going to be decided mid-August. For the moment, this is the visibility that we have. The potential impact on our distribution companies for sure are growing, particularly on the interpretation of the statute of limitations that applies to credit transfers.
At this moment at this stage as you know there are no material updates to report additional states.
The recovery process remains under at least at this acquisition review at this moment.
As you mentioned it already the cases are scheduled to be discussed by the federal Supreme Court on August 13.
And regarding nickel protection, a litany of mortgage mandate for physical fees Tuscany.
As Canadian related to IC mask dismissal plan users is still under discussion and some more news.
Next week for example, we designed it.
But for the moment. This is the this is the visibility that we have the potential impact of <unk> on our distribution companies.
Sure.
And I believe our people only on the condition of the instability of limitations, possibly two credit transfer. So we continue to monitoring monitoring the process globally, unless you are going to happen.
Rafael De la Haza Casarrubio: We continue monitoring the process closely, and let's see what is going to happen the next month.
The next the nationals.
Thank you.
Video Moda.
Peru.
Jorge Velis Espinosa: Thank you. Rodrigo Mora, about Peru, how much tax did you pay to the Peruvian government on the sale of the assets?
How much did you pay to the Peruvian government on the sale of the assets.
Thank you Leo good question.
Previously we commended.
Rafael De la Haza Casarrubio: Thank you, Rodrigo. Good question. Previously, we commented, if I am correct, in page 13 as well, the total amount of taxes paid in 2025, due to the capital gain obtained in Peru with the sale of distribution and generation business. The amount that we paid for this year was around $600 million. To be precise, it was $590 million, taking into consideration the rate of the FX Peruvian soles into dollars. The payment corresponds to the 2024 income tax, I repeat, to a sale of our businesses. In addition to this, just to remind you, the total amount of the taxes we paid as well in 2024, a portion of the total taxes due to the SUNAT, making the total payment for this transaction, for the whole transaction, distribution and generation, a total payment of around $640 million.
We collect.
In page 13 as well.
The.
Among the total amount of taxes paid 20 <unk>.
Five.
Due to the capital gain obtained in Peru, with Mozilla distribution and generation business and the amount that we paid for <unk> was around $600 million.
The size it was $590 million.
Going into consideration deadweight of FX.
ILUVIEN.
<unk> sold into.
The payment of response with a 2020 for income tax.
All of our businesses and in addition to Luis just to remind you.
Total amount of the taxes paid we paid.
As well and competent before a portion of the total tax has been today.
So this is not more making the total payment on this transaction for the wholesale transaction distributions.
Generation, a total payment of around $340 million.
Good morning to Columbia also from Rodrigo Mora.
Could you provide us with an update on the government decree that 6% to force hydroelectric plants to sell older LNG to regulated customers.
Jorge Velis Espinosa: Moving to Colombia, also from Rodrigo Mora. Could you provide us with an update on the government decree that seeks to force hydroelectric plants to sell all their energy to regulated customers and not leave any energy available for sale on the spot market?
Not any energy available for sale on the spot market.
<unk>.
Okay. So first of all.
Sure.
Giuseppe Turchiarelli: First of all, this draft decree that has been issued by the Ministry of Mines and Energy in April 2025. The target is to limit the spot market sale by other generation to a maximum of 5% of their output. Clearly, the measure is part of a broader public policy aimed to reducing the spot market volatility, especially during the periods in which we have a low hydrology, and encouraging long-term contracts to enhance that stability. The proposal requires that at least 95% of the hydro generation has to be sold through contracts. Enel Colombia has submitted formal comments on the draft supporting the goal of greater stability, but raising concern about the measure effectiveness in addressing the root cause of volatility, and warning also about the potential to limit investment and undermine market freedom.
Dropped decreed that belief but.
My name is enacted in 2025.
The target is to limit the spot market sale by others in Asia to Mexico, 5% of their output.
Clearly the measure is.
As part of a broader public policy aimed to reducing them.
Productivity, especially during the period.
We wish we have a low hydrology.
We are adding long term contract.
Pronounced.
Yes.
The proposal requires that at least 95% of the.
Either generation.
Has to be sold through contractor.
And then in Colombia has submitted farmer comment on the drop that supports the goal of greater ability, but raising concern about the measure.
Net.
In addressing the root cause of volatility.
<unk> also about the potential.
Limit investment and the main market for you though.
If you think about.
The direct impact.
Giuseppe Turchiarelli: If you think about the direct impact for what concern our assets, Enel Colombia exposure is very limited, as vast majority of our generation is already sold through long-term bilateral contracts.
Follow up on some of our assets.
Colombia exposure is very limited.
Madhu.
The majority of our generation is already installed.
Through long term bilateral contracts.
Okay. Thank you.
Sure.
Regarding the guidance that we announced to the market.
Jorge Velis Espinosa: Okay. Thank you. Regarding the guidance that we announced to the market, also from Rodrigo Mora and some other analysts are asking to know if you're going to update the results guidance for this year. At profit level, they see some difficulty to reach the figures that we presented in the plan.
Also from a video modem some other analysts are asking.
No you are going to.
The results guidance for this year.
Our profit level, we see some difficulty to reach the figures that we presented in the plan.
Thank you. Thank you Javier Suarez of disconnected, a whole and I think that the.
Rafael De la Haza Casarrubio: Thank you, Rodrigo, and thank you, Javier Suarez, that is connected as well, and I think that he has the same question as Hernan. Well, as of today, we confirm the 2025 guidance communicated in the strategic plan of the company announced in November last year for the period 2027. While we acknowledge the FX volatility and the macro environment has persisted in some of the core countries, core markets in which we are operating, no relevant extraordinary events for the moment have occurred that could warrant a revision of our outlook at this stage. I repeat, at this stage, we are confirming the guidance in both in terms of EBITDA and in terms of net income. Our year-to-date performance remains aligned with internal expectations, and we are confident in our ability to meet the lower end of our full-year targets.
Okay.
We have the same the same question.
Okay.
Alright.
As of today, we confirm the 2025 guidance communicated with you. So based on all the company announced in November last year for the period 2027 or so.
While we are no less.
Thanks volatility on the macro environment has persisted access to the some of the Gulf countries Palomar product markets in which we operate no relevant extraordinary events for the moment half of wholesale.
Lauren a revision of Hollywood Amit at this stage so I'll repeat at this stage, we are confirming the guidance.
In both in terms of EBITDA and in terms of net income.
Our year to date performance remains aligned internal expectations and we are confident in our <unk>.
Really to meet the lower end of our full year targets. We continue of course to monitor macroeconomic and regulatory developments closely but based on the information I'll handle today no justification for adjusting our guidance.
Rafael De la Haza Casarrubio: We continue, of course, to monitor macroeconomic and regulatory developments closely. Based on the information available today, no justification for adjusting our guidance.
Thank you Rob.
Now moving to Argentina.
Jorge Velis Espinosa: Thank you, Rafa. Moving to Argentina. Could you explain the positive one-off in the agreement between EDESUR and CAMMESA? I’d like to understand whether the payment for the energy owed is through an additional charge to Parcela A, meaning paid by consumers, or whether it will impact Parcela B, meaning the remuneration of the distribution company.
Could you explain the positive one off in the agreement between sort of cancer.
I would like to understand whether the payment for the NRG is too analytical chart to PRASM.
Meaning paid by consumers or whether it would impact parcel b <unk>.
Remuneration of the distribution company.
Okay.
Yes.
Thanks.
Rafael De la Haza Casarrubio: Yes. Yes. Thank you. Thank you very much. As mentioned during the presentation, on 30 June, EDESUR signed an agreement with the Energy Secretariat and CAMMESA to restructure its outstanding commercial debt. This agreement sets terms and conditions for outstanding debt with the previous agreement and improves the conditions of debts that had already under payment agreements. This agreement do not imply any additional tariff adjustments for consumers on the company. This is very important. No additional tariff adjustments for consumers. This is just an impact in our balance sheet due to the agreement reached, but that's it. As a result, Enel Américas recognizes a one-off positive impact that we have mentioned before of around $99 million at the result level and $59 million at the Net income level in Q2 2025, and also a reduction in terms of net debt of around $100 million.
Yes. Thank you. Thank you very much.
As mentioned during the presentation. When you started signing of an agreement with Eaton and anticipate resi and commercial.
That's without these outstanding commercial there.
Demand set.
And conditions for outstanding debt with additional million and improves the conditions of that already in that table agreements. These agreements do not imply any additional tariff adjustment for consumers more confidence.
This is very important that no additional tariff adjustments product on shelf.
This is Jeff.
And in fact.
Our balance sheet.
Due to the agreement reached at autopsy as Lasalle Immunomedics has recognized a one off positive impact that we have mentioned before of around $99 million.
Is that level.
59 million at a net income level in the second quarter of 2025, and also a reduction in vessel net debt of around $100 billion.
This agreement along with the tariff review implemented on May 1st.
Rafael De la Haza Casarrubio: This agreement, along with the tariff review implemented on 1 May, provides an Argentina better delivers a clarity and visibility of EDESUR's financial value for the coming years.
Right.
With a clarity on disability, although vessels financial outlook for the coming years.
Thank you.
Now questions from Francisco paths from South America.
Jorge Velis Espinosa: Thank you. Now, a question from Francisco Paz from Santander. First, excluding the asset disposals in Peru in 2024, what factors explain the net income performance?
First excluding the asset disposals in Peru in 2024.
What factors explain the net income performance.
Thank you Francisco.
Yes, as we certainly face a number of mine we have seen 172% decrease in desktop net income for the second quarter of <unk> when compared to the same perimeter although.
Rafael De la Haza Casarrubio: Thank you, Francisco. Yes. As we show in page 9, we are seeing a 172% increase in net income for Q2 of this year when compared to the same quarter in net debt for both years. This is mainly explained by a better performance in Argentina, mainly the distribution business, which reported positive figures in this Q2 2025 compared to a loss that we registered in Q2 2024 due to the accumulated debt with CAMMESA in this period. This is the main difference, a one-off item that we, let me say, registered in Q2 2024 that we do not see in this quarter in Argentina, and I repeat, a better performance in this country, particularly in the distribution business.
This is mainly explained by a better performance in Argentina, mainly in installation business.
Reported positive figures this second quarter of 2025 compared to a loss that we released in the second quarter 2024.
The accumulated.
Accumulated them weekly.
Cancer.
It is this year so.
This is the main difference I want to fight in the knee.
Let me say belief that in the second quarter.
Before we do not see in this quarter in Argentina, and that would be less than four months. This company, particularly in the distribution business.
Thank you.
Second question from Francisco, what actions, taking the company to be protected against FX impact in Brazil, and Colombia, Okay. Thank.
Jorge Velis Espinosa: Thank you. Second question from Francisco. What actions take the company to be protected against FX impact in Brazil and Colombia?
Thank you Francisco again, no we have not.
Rafael De la Haza Casarrubio: Okay. Thank you, Francisco. Again, no news here. We have a natural hedge as we issue debt in the same currency of the cash flows generated in every country in which Enel Américas operates. This is a natural hedge, I repeat, and we are comfortable with this situation. In the case of the dividends, we hedge the dividends of each country to avoid the FX risk. This is how we are hedging. Every year, we hedge the potential FX impact of the dividends, let me say, forecasted in the strategic plan of the company for every year, for the biennium, and we hedge those dividends to avoid the mentioned FX risks.
Mitch as we issue debt in the same governance in the cash flow cash flow generated in every county in America operates so this is a natural hedge and the data we are comfortable with the situation, but in the case of the residents and we get the dividends of eight companies about the press release.
Is that we are hedging every year.
Hence the potential effects in parts of the dividends and let me say forecasted.
None of the companies <unk> and <unk>.
Those events globally, we mentioned FX FX weeks, we operate in local currency in every country. So the impact in our result is solely a compression effect when we consolidate on the split roughly in local currencies due to the loss, which is the functional currency of <unk> Americas.
Rafael De la Haza Casarrubio: We operate in local currency in every country, so the impact in our results is only a conversion effect when we consolidate or when we translate the local currencies into dollars, which is the functional currency of Enel Américas here in Chile. No news here. Thank you.
So new news here.
Thank you.
And last question from Francisco could you give us an update on hydrology expectations for Colombia, and Brazil for the rest of the year.
Jorge Velis Espinosa: Thank you, Rafa. Last question from Francisco. Could you give us an update on hydrology expectations for Colombia and Brazil for the rest of the year?
Yes.
So for Wisconsin, Brazil.
I said before there is a broad label are currently up 64%.
Giuseppe Turchiarelli: Yeah. For what concern Brazil, as I said before, the reservoir levels are currently at 60%, so in line with the last year. Rainy season, we said, begins around November, so probably the situation should improve by the end of the year. For the moment, we don't see any relevant risk regarding hydrology in Brazil. For what concern Colombia, the reservoir levels are above 80%, and the drought that we suffered last year is no longer an issue. We expect to maintain with a good hydrology level for the rest of the year.
In line with last year for rainy season.
Beginning around November so probably the situation should improve by the end of the year.
For the moment, we don't see any relevant base regarding that project in Brazil.
But at what cost in Colombia, the reservoir lower Abo.
And the drought.
We suffered last year, it's no longer an issue.
Expect to maintain that.
Good day to all of the level for the rest of the.
Thank you Sir.
We received another question from mangled silence.
Jorge Velis Espinosa: Thank you, Giuseppe. We received another question from Fernando Gonzalez about the agreement with CAMMESA. This $99 million impact is a one-off event, and is it all cash?
About the.
Aggravated with cancer this $99 million impact.
Is a one off event.
Is it.
Our cash.
Well. Thank you very much this is a one off event.
Rafael De la Haza Casarrubio: Well, thank you very much. Yes, it is a one-off event. At this moment, it is not a cash item, but as I said before, this will reduce the level of Net Debt that we have due to the accumulated debt with CAMMESA in the past for around $100 million. This is the effect. No cash impact at this moment. This is something that will happen in the future, but for this moment, it is a non-recurring item, let me say with the impact that we have already mentioned, $99 million in terms of EBITDA, and the impact that we have already mentioned in terms of Net income.
At this moment is not this is not a cash item, but as I said before this is one this will reduce the level of net debt that we help.
We can make it there with pemex in the past.
Around $100 million. So this is FX so no cash impact at this moment. It is something that we have an efficient operating momentum one.
With Cowen.
With the impact that we have already mentioned 99 million. Nevertheless in terms of EBITDA.
We have already mentioned I think Samsung.
Thank you.
Question from Filipe et cetera.
Jorge Velis Espinosa: Thank you. Question from Juan Felipe Becerra. Thank you for the presentation. Could you provide more color on the $91 million loss in impairment losses from IFRS related to the worsening in expected credit loss? What were the main drivers, and should we expect this level of impact to persist going forward?
Thank you for your presentation could you provide more color on the $91 million loss and impairment losses.
I R S related to the worsening.
Expected loss.
The main drivers should we expect this level of impact to persist going forward.
Okay well. Thank you Philippe this is mainly explained.
Rafael De la Haza Casarrubio: Okay. Well, thank you, Juan Felipe. This is mainly explained by our Brazilian operations, particularly in the distribution companies of Rio de Janeiro and São Paulo. We managed approximately $66 million. We are continuously monitoring performance and actively driving initiatives to improve collection efficiency within these entities. That's it.
Our helium operations, particularly in the replacement components of Reorders.
And we manage approximately $66 million, we are continuously monitoring performance and activity within each of our business.
Nation efficiency.
We've seen this entities.
Yes.
Thank you Rafa.
It seems like we don't have any additional questions.
Jorge Velis Espinosa: Thank you, Rafa. It seems like we don't have any additional questions. We have covered all the topics. If anything is pending, please send us an email to investor relations email. As there are no more questions, I conclude the results conference call. Thank you for your attention.
Overall on the.
I'll, let other topics.
Anything in spending please send us an email tools to investor relations email.
So as there are no more questions I conclude the results conference call.
Thank you for your attention. Thank you very much. Thank you.
Thank you for your participation in today's conference. This does conclude the program you may now disconnect everyone have a great day.
Rafael De la Haza Casarrubio: Thank you very much.
Jorge Velis Espinosa: Have a good day.
Giuseppe Turchiarelli: Thank you.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.