Earnings Call: Q1 2025

May 13, 2025

Summary

Q1 revenue rose 5.5% YoY and net income climbed 264%, supported by higher hydro generation and lower sales costs. Priorities include reducing net debt toward COP 3.85 trillion, expanding renewables and navigating regulatory and supply risks.

Morning, everyone. My name is Gonzalo from market team of CELSIA, and I want to welcome you to this Zoom call of the results of the first quarter of 2025. This morning, Esteban Piedrahita, financial leader of the company, and Carlos Solano, commercial leader of regulatory matters, is here today. For those who are joining from the Zoom platform, we tell you that all the participants are in listening mode. Once the conference finishes, we have reserved a space for your questions. The questions are enabled for this link of Zoom, and if someone requires information in English, you can find it in the interpretation option. This video call also is being transmitted in the official account of CELSIA. We really thank you for being here in our call, and I give the floor to Esteban Piedrahita. Esteban, this is your opportunity today in this scenario with our shareholders. Thank you, Gonzalo. Good morning to everyone. Yes, in fact, these results were so good that today Ricardo is not going to be here joining us as is the tradition. Right now, he is traveling. Today we are in charge, between Carlos and all the team, to accompany you in this report of our results and to attend to all of your questions. We know that the EnergizarC program was launched. We know it's one of the best, important parts that you want to hear. Let's start this call by recapitulating the positive aspects, but also, we are going to talk about our program, EnergizarC. Let's start. Let's start about the first initiative, which is the debt reduction. In this, we have divided this front into four major programs. First, we want to recover the resources pending from 2024. Second, we have a rotation of financial assets that this organization has. Third, we want to stabilize the use of working capital of the project developer for the platforms. Fourth, we want to maximize the cash flow of energy services. That means the utility that, if you remember, in this case, is Celsia Colombia, who has the biggest part of that seat. As we announced, our efforts to reduce indebtedness are projected to materialize in the last two quarters of the year, for which it is key to stabilize the whole system with our decisions during the first part of the year. We successfully want to tell you that the cash flow of this quarter was COP 75.5 billion, better than expected. We have achieved these better results thanks to the good performance of operations, as we will see below, the recovery of COP 88 billion from investments in Peru, and the sale of COP 76 billion portfolio to the IDB. At the end of the first quarter, consolidated net debt was COP 5.7 billion, and the net debt to EBITDA leverage ratio was 3.49 times. The average life of the debt remained at 4.06 years, while cash flows had COP 210,237 million. The cost of structural debt decreased from 11.61% in December to 11.32% in March. We do not only want to reduce our debt stock, but we want to optimize the cost of it. For that, we have been carrying out a series of operations with our financial partners. On the other hand, I want to tell you that C2 Energía is close to signing a long-term credit agreement that will allow the financial closing of several solar farms that currently we are building, including Escobales 1 to 5 in a sixth farm in Escobal, all this in Ibagué, and the Celsia Solar in Valledupar. Both, I mean the seven, taking into account the ones that are being built, will allow to repay Celsia Colombia the activities it has advanced. At the same time, Caoba is also making adjustments to its credit contracts to make use of the surpluses in certain lines to materialize the purchase of projects that are already under construction. All of this is very important to address that third point of that second point, which is to close the capital debt that we have put for the development of this project for the platforms. We remain firm in our commitment to reduce indebtedness and expect to accelerate this positive trend in the coming quarters of the year. Because let's remember that our goal is to reach a consolidated net debt level of close to COP 3.85 trillion. Let's talk about the initiative, Reimaginarse. In this first quarter, we achieved an optimization in the cost of sales that allow us to recover the EBITDA margin to the usual levels in Celsia. In addition, the different areas of the organization have identified more than 538 new actions aimed at reducing costs and expenses that will be executed during the rest of the year and will allow us to accumulate savings of COP 150 billion with the goal of achieving COP 165 billion, being more effective in the way we are providing our services. Let us now take a look at how the company's operation evolved during the quarter and the detail of the efforts of the Reimaginarse initiatives. Let us start with the power generation business that performed really well in Colombia. We reached 1,385 gigawatt hours of generation, which represents a 46.6% of growth compared to the same quarter of 2024, while in Central America, we had 22.7 gigawatt hours. This is due to some climate conditions that are regularized. The rains benefit our hydroelectric plants and the need for thermal generation was reduced. In this segment, revenues were COP 397.5 billion, with a growth of 11.9%. From marketing during this first quarter, we delivered 949.4 gigawatt hours in our clients in El Valle and Tolima, that there was a decrease in demand compared to the first quarter of the previous year, when high temperatures drove higher consumption. This lower demand was offset by the behavior of the tariff, which resulted in a 6.2% increase in the segment's revenues. As a result of this performance, consolidated revenues for the quarter total COP 1.45 trillion and up 5.5% versus the same quarter of the previous year, thanks to the increased contribution from the power generation segment. The consolidated cost of sales for the quarter total COP 907.3 billion, a reduction of 6.7% versus of the same quarter of the previous year, thanks to lower generation costs by the purchase of energy to back up our contracts and the lower consumption of fuel for the thermal plants. The administrative expense total COP 94.2 billion, an increase of 7.3%, mainly explained by the cost associated with the structures adjustment in Central America, the valuation of the weather derivative. Remember, last year, this represented an increase for the organization, and this year, we are recognizing that. Finally, the impairment of the portfolio, where COP 1,200 million of Air-e were highlighted. EBITDA was COP 472 million, with a growth of almost 45%, and margin EBITDA consolidated was 32.5%, higher by 884 basis points compared to the first quarter of 2024, when the effects of the El Niño phenomenon were being faced. Of this EBITDA, COP 443 million came from the traditional generation, distribution, commercialization business, and COP 29,000 million from the asset management business. Total managed EBITDA, which includes our management, increased to COP 575 billion. In the trimester, other net expenses were registered of COP 400.2 billion were recorded in the quarter, representing a decrease of 53.2%. This reduction is due to the recovery of provisions and the recognition of income from the sale of the Universidad del Valle of the San Miguel camp, located in Suárez in Cauca, which was used by the employees of our Salvajina hydroelectric power plant. Net financial amounted COP 157 million, a decrease of 3.6%, mainly explained by higher income from exchange differences associated with the valuation of derivative financial instruments contracted to hedge debt and the purchase of equipment in foreign currency. Additionally, during the quarter, when the purchase was completed, we have a portion of portfolio associated with that operation. The income taxes were COP 86,000 million increase in compare to the COP 20,000 million from the previous quarter due to a higher tax base as a result of a higher operating income, and additionally, because in the first quarter of the previous year, we were capture tax benefits. As for this year, are projected to be executed in the next quarters. Finally, net income for the quarter was COP 108 billion, up 264% versus the same period of the previous year, explained by solid EBITDA growth and driven, as mentioned before, by a higher hydro generation and lower cost of sales. Additionally, the decrease in other net expenses and financial expenses contributed positively to the bottom line. Net income attributable to owners of controlling interest reached COP 57.9 billion. Continuing with EnergizarC initiative, it is time to talk about progress on our entrepreneurships and investment platforms, two key fronts to drive future growth. The third initiative, as you know, is the value materialization of our intra-businesses ventures. On this front, we want to tell you that we have made significant progress in the processes of structuring our energy efficiency and Celsia Internet businesses as an independent companies of Celsia Colombia. This transformation gives them greater agility to adapt to market needs and operate with more flexible structures. In this first quarter, Celsia Internet achieved revenues of COP 18.3 billion with a 54% growth compared to the same quarter of the previous year, and the energy efficiency portfolio recorded revenues of COP 6.1 million. Let's remember that these results, for now, are consolidating our financial statement that we were just mentioning before. Our objective is to turn these businesses into industry benchmarks with a potential for regional scaling. We hope to share with you very soon relevant news on this front, which reflect our commitment to generate value beyond traditional business. Regarding our fourth initiative, focused on attracting capital, we continue structuring the platform dedicated to development of projects in Peru. Different investment at a local and international level are working in the process and the analysis of the information. Finally, we close this tour of CELSIA Energía talking, of course, about the share buyback. Let's remember that in this measure, we try to provide direct value to our shareholders through greater liquidity in the market and the strengthening of the share price. To date, we have already executed 30% of the total amount approved for the program, representing more than COP 90 billion. Since its implementation, we have seen a 2.5-fold increase in the average daily trading volume, which not only boosts the stock, but also increases the amount that we can repurchase daily through the Colombian Stock Exchange transactional mechanism. So far in 2025, the average repurchase amount has been more than COP 300 million per day, compared to the COP 210 million that we were able to repurchase daily on average in the last quarter of 2024. In addition, since the launch on February 26th, the share price has grown by more than 11%. Share repurchases have proven to be an effective tool for improving liquidity, supporting share value, and reflecting the company's confidence in its future performance. We will continue to manage this program with discipline and a strategic focus in line with our promise to generate sustainable value for all our shareholders. Let us continue with an update of the performance of our investment platforms during this first trimester. Let us start with the El Tesorito thermal plant, generated 21.2 GWh this quarter. Since there were no significant dispatch needs in recent months, most of its revenues came from the reliability charge remuneration. In total, the platform recorded revenues by almost COP 48 billion and an EBITDA close to COP 19 billion. It is very important, dedicated our role as managers, we distribute dividends by COP 27 billion during the trimester to the partners during the first quarter. With that division of dividends, it's important to mention that the NAV indicator, it is located for El Tesorito in minus COP 4,105 million. We have already mentioned this in the teleconference associated to the closing for our last year. We have already recovered the investment in the platform, and it has delivered COP 4,100 million more than we invested. C2 Energía recorded a generation of 132 GWh with a growth of 4.6%. It added COP 49 billion of income in the quarter with a growth of 12%, and EBITDA is COP 40 billion. That means 8% more than 2024. We do not have important variations in NAV since we have not made distributions or changes in the capital, as we were mentioning before. With Caoba platform in this quarter, sales were made in compliance with the BOT for almost COP 10 billion. At the end of March, the platform total asset amounted COP 2.6 trillion. Revenues in the quarter total COP 98 billion, with a positive variation of 14%, and EBITDA reached COP 82 billion. In this platform, NAV didn't have a significant variation, and it is positive for COP 218 billion. From the Laurel platform at the end of March, it integrated 136 photovoltaic system of less than 8 MW and reached COP 5.6 billion in revenues, a growth of 44% compared to the same period of the previous year, and EBITDA is COP 1.65 billion. This system represent almost 52 MW of installed capacity and a cumulative generation for 2024 of almost 15 GWh. Now, as usual, I give the floor to Carlos Solano, our commercial and regulatory leader, to help us review the most recent regulatory movements. Mr. Carlos. Thank you, Esteban. In the first months of this year, the main topic of discussion in the regulatory field continues to be the government statements of wanting to limit the prices or quantities of energy sold in the daily market, also known as the energy exchange, with the purpose of reducing electricity tariffs based on the untrue hypothesis that this market is poorly designed and allows inappropriate behaviors of generators when the scheme used is the same of all competing electricity markets in the world, and there have not been any formal indication by the SSPD, the entity in charge of controlling this sector of undue behaviors in this market. Based on the above, the government has announced measures such as limiting the price of the energy exchange or limiting the amount of energy that a generator can sell in the market, for which, although there have been some draft documents, there are no firm decisions as today. In view of this, the position of the companies in the sector, expressed by the unions based on a broad technical support, has been that such measures are inconvenient because they distort the market and produce an inefficient management of reservoir and other energy resources, in addition to the fact that they do not lead to lower tariffs as intended. It is important to mention that Colombia tariffs are competitive regionally and globally, but the only way to make them even more competitive is by increasing the energy supply and competition in the sector, which requires the support of the government, so that the generation of transmission projects can be executed on schedule and start their operations in a timely manner. Based on the above, CELSIA and the other companies in the sector hope that the government will reconsider these measures and that the final decisions will preserve the proper functioning of the market and give a positive signal for the investors' confidence. This investment confidence is necessary because Colombia needs to increase its generation supply, not only to make its tariffs more competitive, as we mentioned before, but also because the balance between energy consumption or demand of all the Colombians and the offer of firm energy, which can be produced even in critical conditions, such as a strong drought when, for example, El Niño phenomenon occurs, shows negative figures as of 2026, which implies that the country could face rationing when the next El Niño phenomenon occurs. Given this, the government has recently closed a reconfiguration auction within the reliability charge scheme, the results of which were announced last Friday, and whose main purpose was to increase the firm energy committed from the surplus of firm energy that some existing generation plants have, but also to make some generation plants viable. Additionally to that auction, there was the energy assigned for the periods of 2025, 2026, 2027, 2028. In each of those years, approximately 7.5 gigawatts were assigned. That represents an increase of 3% approx of the total firm energy that the system currently has. The closing price of the auction was COP 23, which is a very nice price, and it comes together with the situation that the market has. I am going to talk about the year 2027-2028 and zoom there because as being the last period, it was expected to have more offers, and 24 plants were assigned there, three that already exist, eight solar that are under construction, and three new solar, from which two are offered by CELSIA, and Escobal Seis and Andrómeda projects are the ones, each one of 100 megawatts of capacity, which is a great news for our company. At a country level, this auction is a positive news because it allows us to increase the offer of firm energy. With that energy, we can cover the medium demand and energy, which is the one that the Colombians have in regular conditions. When we have dry conditions, that demand increases. We are just covering around half of the additional need that we have prior that auction. As a product of that situation that we still need energy, and very recently, CREG published for comment a resolution where an expansion auction is called for the end of this year, where in this case, the main objective is to commit the construction and startup of new generation plants with an operation start date of December 2029, but where there are incentives for those who manage to start their operation before that date. The sector expects these auctions to, the first and second already happened, will be successful in order to reduce the risk of water. There are two situations that concern. One is a negative signal for the renewable plant, hydro, solar, and wind plants, that represents the recent modification to the scarcity price, which we shared with you in the previous result conference. Basically, it establishes to establish a scarcity price lower in thermal plants using coal and all renewable technologies, which strongly discourages investment in these technologies. The second point we need to solve for the country to have a trust that is guaranteed, is the difficulty of obtaining a reliable supply of natural gas and at a price that allows the financial closure of thermal projects with this fuel. Given that Colombia needs currently to import gas to meet all its demands, this makes this difficult to achieve. Esteban, with this, I finish the summary of the main regulatory topics, and I give back the floor to you so you can continue with the call. Thank you, Carlos. I am going to go back to the last point Carlos was mentioning to mention two important things. The first is that the reconfiguration auction, as we mentioned, it has many solar projects, eight in construction, three new ones, as you were mentioning. If I am making something wrong or saying a bad number, I apologize. We are barely covering the medium demand. We still need that, and we welcome everything related to technology. We need more and more technology, and that is one of the things that we were mentioning. In regards to the scarcity price, connecting again to the report of results, we have always said that what happens when El Niño phenomenon occurs, the prices increase. It is a reflection of calling all the resources, but in reality, it is a pain moment. It is not a happiness to have those prices. We are purchasing a lot of energy to comply with our contract, and only when everything goes back to normal, as we have seen in the 3 last months with the rains, then we see that the business, the real one, we can see it. So we insist in that matter of not be confused of that signal of high price. Well, talking about energy, we have changed the way of the conference. We need to close with positive news. We are committed strongly for everything related to the energetic transition to continue being an important actor. In this quarter is Carreto, our first eolic plant in Colombia. We like to share with you things by video, telling you the information of these projects. Those who are online through X, don't worry. We are going to be publishing that on our social media so you don't miss it. This is Carreto, our first eolic plant in Colombia, a project that CELSIA built as a generation of energy in Colombia matrix. We have concluded the installment of the main equipment of the number one aerogenerator. We have finished the construction of the tower and the installment of the equipment. At this moment, we are carrying out all the connections and wiring, so then leave it prepared to start with the testing and wait for the aerogenerator number two to be finished. With Dr. Gonzalo, who helped us with the videos. We were going to leave that news to keep it, but a tower of 120 meters, we never expected that to be in Barranquilla, Cartagena, especially during Easter and all the tourists and people passing through there are asking, "What is that? That's so spectacular." No, we could not hold that for more, and we revealed that, and it has been widely accepted. Our commitment is with all the sources of generation. The second piece of news is related to a strategic acquisition that doubles our pipeline of renewable projects, a portfolio of 675 MW acquired from the Irish firm Mainstream Renewable Power. They have three solar and two wind farms, and they were asking for other points of connection. The most advanced project is the Andrómeda Solar Farm, mentioned by Carlos, located in the department of Sucre and with a capacity of 100 MW, which already has an environmental license. That project has another advantage, that this project will be connected to the Toluviejo Substation, owned by our Caoba platform, which represents a significant advantage in terms of grid connection, a key factor in the development of renewable projects in Colombia. Not only in Colombia, but around the world. With this boost, by the end of March 2025, reach 475 MW, which adds the capacities. We are strengthening the pipeline that we have mentioned that is close to 700 MW, and today we are strengthening with these extra 175. There are other 284 MW on the construction, 365 in early stages of development, and that puts us above the gig of operation by 2027. Andrómeda and the solar project that we have will be part of our process of structuration. Our vehicles of investment and base in energy will take the lead of these projects with the financial closing and all the development stage. That is all the information that we had for the trimester. Thank you very much for accompanying us. We hope that these three people here, Carlos definitely is missing in these conferences, but maybe you could feel less his absence and we reach his level. We are committed to continue executing the EnergizarC program. We are very attentive of the questions, that is correct. Thank you very much, Esteban, Carlos. Now we are open for your questions. We all are familiarized with the button to raise your hand through Zoom. Those who are joining online, you can also leave your questions on the comment section. Let us review. There is one question by Juan Pulgarín. Juan, good morning. He is mentioning two things. The first, is the company doing a follow-up of the development of the solar panels in titanium? The second, is there advice what Pampa Energía is doing in Argentina, which is doing also exploration, from what I understand, exploration of gas with shale gas methodology. I do not know if there is a follow-up, Esteban, that we are doing to that operator. Juan, thank you very much, as usual, with your question. The solar panels, I think that you heard, with regards to titanium, we do an important follow-up. We also had the opportunity to have a conversation with some of the manufacturers that we buy and also made offer to us to see how the solar technology topic is advancing. Two weeks ago, they shared with you some advancements that they have established for 3 years, and will continue revolutionizing the future for 3 years from now. The titanium, I did not have it in my mind. I do not know, Carlos, but also we heard about other series of efficiencies that will allow to improve the energy production. In regards to Pampa, it is a name that we have heard for a long time, as Juan was mentioning. In the reality of Argentina in the last decade, this is a company that started in electric energy business, and they had some generation assets. But in that period of closing, before what has been happening in Argentina for the last few months, they started to enter in the area of gas exploration and enter to Vaca Muerta project. Today, when we see the Pampa numbers, I think it is more a company of exploration and exportation than generation of energy. We do follow them. I am not sure to say if they are the reference of what we want to do, because the business of natural gas has a CapEx demand that is very important. But we have seen it, and we know about them. If someone wants to ask a question, you can raise your hand or just put it on the chat box on Zoom. On X, we are going to check. There are no questions, no additional questions. There is one from Sergio Daniel Torres. Hello, good morning. Thank you for the space. A question in regards to the regulatory topic mentioned. Besides the risk mentioned that in case that this project continues moving forward, CELSIA has revised the impacting numbers and analysis in regards to the regulation that could be put in place? Sergio, thank you very much for your question. Let me clarify that we mentioned a series of announcements that the government has been doing, that they want to limit the price by the amount of energy sale in the stock that will be materialized through decrees of the Ministry of Mines and Energy or resolutions of the commission. As I mentioned, there is nothing established. There are some drafted proposals. Let's say that through those proposals, they are with some conditions that are relatively wide, so it is difficult to make an exact calculation on the impact. What we do see, that in general, this type of limitations, what it does, is to make the investors in Colombia continue investing in projects. As we mentioned, the country has a deficit of firm energy, which is the one that we can produce in any condition that will allow us, that when we face that type of conditions, we can overcome them successfully. The most recent initiative the government is working is a draft decree that the Ministry of Mines, where they are proposing there is a limitation of the sale in the stock of 5%. They want to do that by flexibilizing some conditions, which we see positive to be flexibilized in a moment where the market is very tight. That is positive and that collects different proposals that we have done in the different unions. There are some conditions in that decree that needs to be adjusted, if we consider that. We have been communicating that to the national government, and we are waiting for them to review that, to see how that topic continues advancing. That is the most recent that has been developed in regards to this topic that we were mentioning in the conference. Thank you very much, Carlos. There is a question. Juan José Muñoz is raising his hand from TJ Actual. Good morning, everyone, and thank you for the presentation. I have three questions. First, if you can provide more color in regards to the IDB sale, the financial expenses, I would like to understand a little bit better that. That is my first question. The second is, if you know the reasons why Mainstream goes out of Colombia in this portfolio Renewable portfolio that you have acquired. My last question is, if you can go back and repeat what was the energy assignation in the reconfiguration auction for each one of the years. Also, I want to know your estimation, what is the gap between offer and demand of energy that you were mentioning for 2026? Thank you very much. Thank you for your questions. I am going to answer the first two, and Carlos will answer the last one. The IDB sale is basically the third or fourth operation that we have done with IDB. What we were saying is that it is a portfolio sale in which there are some risk assignations and so forth. Finally, as any factoring, there is an application of rate in both sides to make the purchase. We do recognize that rate and the effects of the expenses from the valuation of our instrument and their instrument in the business with the IDB, the financial expense is going to be recognized. That is the reason why we were saying that in the first quarter, of course, we have a financial expense that is higher, that is not associated to a debt, but it is associated to the valuation of that operation with the IDB. In relation to Mainstream, the reason corresponds to Mainstream. The attractive part of our offer was an offer for a full exit from the market. They wanted to develop the 675 MW, and that was the proposal that we did to take all the development and continue betting to the development of those projects in Colombia. The specific reasons, I think that corresponds to Mainstream to talk about their own decisions. But with that, I complete that. In regards to the specific assignations, Carlos. Let me tell you once again about that topic. The reconfiguration auction covered three periods. First was the period that goes from December of this year, 2025, up to November 2026. In that period, 7.59 gigawatt hours a day that correspond to a 3% that the firm energy system has. This next one, December 2027, November 2027, 6.39 gigawatt hours a day, that represents a 2.8% of the energy firm system of the system. The third period that goes from December 2027 to November 2028, 7.5 gigawatt hours a day, and it represents 3% of the energy that the system has. Remember that I was mentioning that the price was COP 21.3 per gigawatt hour, which is a reasonable price for the market nowadays. I was also mentioning that in the last year, where there was the expectation by the last one, there may be few projects, and besides 13 plans, they enter eight that are under construction and three solar ones. So that additional energy that the system is doing covers around this with the additional one, with the one that we had, covers the demand of the entire system in normal conditions. But when those conditions become more demanding and we see a scenario with higher level of demand that has a level of stress of 68%, we see that the deficit that existed in comparison with the firm energy that the system had, this reconfiguration action cover around half of what was needed. For that reason, it is that it is so important that the expansion auction that was called or is being initiating the calling for the end of the year to be successful and will bring new energy to the market. We truly believe that part of that energy, hopefully, will come from other technologies that are different from the solar or technologies that could offer a volume of energy that is higher, and that will allow us to have a higher available capability in critical conditions. Not for that reason, the offer of the solar energy is not important, but it is relevant that complement with other technologies and the importance of the topic related to natural gas and other things that we were mentioning before. Gonzalo, I think that with that, we can answer all the questions from Juan José to go with the next question. That's right. Thank you very much, Carlos. In X, there is a participant named Fabián Ortiz. Good morning. It is informed that by the national government, at the end of the year, COP 3.3 billion will be sent from Estratos 1, 2, and 3. This has a positive impact on the company somehow? Thank you very much, Fabián. Fabián, thank you for your question. Of course, we hope to be receptors of that reimbursement of the subsidies in the first trimester. We received payment by COP 56 billion from last year, and that has been really well received. At the end of the trimester, we accumulated the subsidies that go above that number. It's around COP 90 billion by quarter. That means that at the end of the quarter, we have a very similar situation from the last quarter of last year. But of course, we are continuously working with the unions because it's a very important flow that corresponds to that important topic of the subsidy for Estratos 1, 2, and 3. Carlos, I don't know if you want to add anything else. Just to mention that the government, in different occasions, have announced their willingness to cancel those subsidies. But when we go to the facts, sadly, what we see, as Esteban was mentioning, is that the payment that have been happening are with an amount that are even lower in comparison with the subsidies that the companies give. It still has been increasing. We are having conversation with the Ministry of Mines and Energy, Ministry of Finance. They are exploring other schemes, such as providing some certificates out there, where the companies can negotiate in the financial sector and find liquidity and allow the financial ministry to provide those resources later on time. That could be a way to have liquidity that the market extremely needed. As Esteban was mentioning, we are doing all our management and process to continue having conversations with the government and be able to receive those subsidies on a timely manner that is very much needed for the entire sector. Thank you very much. Now, let's go back to Zoom, to the section of Q&A. There is an anonymous person with a very important question. It says, "First of all, we want to congratulate you for the performance in the first quarter and the advancement in the programs." But, if you can provide more color in relation to the Mainstream projects, in La Guajira region, are there changes, and can you provide an update to the projects in La Guajira? Thank you very much for the congratulations. It's a very important phase. Mainstream, the purchase, as we were mentioning, is a portfolio of 675. The most important project was Andrómeda by the level of advancement, and it was one of the projects that generated more interest in the portfolio they had. The eolic projects, they have a very important difference in comparison with the eolic projects from Enel or other that are part of the Guajira region, and these are closer to Cesar than Guajira. They are in the lower part of Guajira in the border with Cesar. They have some differences that are developed in private lands. Those are projects that are developed as well as our rural projects where there are some contracts, and they have developed some contracts of leasing with some owners of properties. In terms of the difference that they have with the other projects from La Guajira, we would need to highlight that. But I insist that the biggest part of our value was to have access to the Andrómeda project. These projects have environmental licenses, and the land very well worked. And of course, there are the topics related to connection that we will be working as well as in the rest of the project. In regards to the Guajira project, we continue the development part. Last week, specifically, with the communities, if you remember, we had two communities in the influence area of Camelias Project, and the prior consultations were not closed. Last week, we were working with those communities to reach the final agreement for their prior consultation and continue advancing in the licensing for the Camelias licensing. We do the same thing with the licensing project of the environmental transmission line that connects the park with the substation Cuestecitas. What we want to tell you is that in La Guajira, we continue with our projects in the development stage in the topics that we have mentioned, which are the closing of the consultation and environmental closing in the park. Thank you very much. And two questions from Ricardo Sandoval. One is related with the eolic topic, and the first is, "Can you give us an update of the availability gas contracts in El Tesorito?" And second, "Ecopetrol bought 49% of an eolic gigantic project. How are you exploring the area?" In regards to El Tesorito, Ricardo, thank you for your questions. As we have always mentioned, El Tesorito continues having its two contracts, one of gas contract in firm. When the scarcity situations are detonated and they comply with that, of course, it's a contract that in this month has not been needed. It continues to be there, complying with the obligations in that contract. For the generation, that is something related to the day-to-day activities that our team of generation tries to find the best conditions, including the purchase under the agreement that we have of occasional fuel. But the conditions for these methods were not there for the eolic situations. The rains came back and the use of the thermal resource was not the same. The equation market conditions changed. We insist, the gas, the fuel is still there. And of course, as Carlos Solano was mentioning, the narrowness of the market, and it is not a novelty, but it's something that we need to continue facing from our teams and the market. The thermal plants should be on when the system needs it at a competitive price. The last question about the remote autogeneration. We have always believed in autogeneration, as we have mentioned, our solar park is in the format of autogeneration. The remote autogeneration, Carlos Solano, correct me. There are a few things missing to actually be there. But that is something that we are going to be analyzing. I leave Carlos for that. Ricardo. Remote autogeneration is a topic that has been discussed. There are some draft measurements for the sector, and we have already mentioned a few comments, but the final measurements are not there. We in the country cannot dream or make a firm negotiation. Of course, we want to have a balance in this type of figure and those measurements that incentive those figures continue being against the users in general. What is being discussed in that remote autogeneration should pay the transmission or the distribution charges and how the remuneration of the charge for reliability of those clients that attend to those figures will be. Those are the topics that are being under discussion. We need the government to take a final decisions in regard to that, make a final decision, and evaluate how those measurements will remain, talk with our clients. What Esteban was mentioning, CELSIA has been a company that has always wanted to generate autogeneration measurements for our clients, and we remain really attentive on that. Thank you very much, Carlos. Jorge has a question. It says, "Hello, good morning. In which way the electric sector is being prepared to face the regulatory framework in Colombia? We see environmental companies getting out of the country, even with the licenses approved. These are some of the challenges that the sector faces, especially with the hostile policies from the government." Jorge. We agree that sadly, this government has given a series of signals and measurements that they have proposed, and some have been materialized and others haven't, that have generated great uncertainty in the sector. Sadly, that has led that some colleague companies that were entering the sector, and we would see with good eyes and receive new competencies and companies investing in our sector, they have decided to stop their investments, maybe some of them leave the country. What we are doing from CELSIA and all colleague companies, it is to continue giving signals to the government in relation to that uncertainty and providing proposals that are reasonable and will continue with the line that the sector has been working. Of course, attending that we have opportunities to improve, and we recognize that in a very humble. Those changes generate a great uncertainty with the consequences that I have just mentioned. Hopefully, the government in the period they have left, make the best decision possible, topics that we have already mentioned throughout this conference. Of course, we hope that the new government that will come, whether their political affiliation it is, but can have in the sector some signals of trust and higher reliability that the country needs in order to guarantee the trust in the electric supply. Good morning. Three questions from Sebastian. Thank you for the conference. What plans does the company have to rotate their portfolio in Central America or find new opportunities, and what is the strategy in that region? The second question is, if you can remind us the alliance in terms of terms and scenarios in case that Cubico decides to leave Colombia. If you can share or remember the guidance of financial metrics for 2025 and how it has changed in comparison with the expectation that you had for this year. Let's start with Central America, Esteban. Thank you, Sebastián, for your question. Central America is integrated to what we call the energetic efficiency business, and the majority of our business in the region is actually that solar ceilings and electric efficiency, some dedicated farms. Today, the COP 6.1 million, it is integrated all our activity from Central America, and that is the pathway that we are working with the region. We still have the thermal plant, Colón, after Bahía Las Minas, and of course, that is a plan that we are seeing our options in regards to the future, but it's very small in terms of the weight the organization has. The biggest part is in energetic efficiency and the opportunities of growth, we are seeing that in that area. We remind you the topic about Honduras, where we have had a very important entrance and we have the solar farm that serves to Cementos Argos. Also there is, as our corporate videos, we have the biggest solar scene that we have and the biggest one in Latin America that is in our clients in Honduras. So there is where the effort or the strength in Central America, and we are taking the region to be a very important part of that business. The terms with the alliance with Cubico, of course, I cannot give you too many details, but I think that the sense of your question is that neither of two parts has obligations with the other. Of course, what is there is a scope in terms of the projects that are presented, and those projects are presented and accepted in order to continue having the investment. We have had a very good investment with Cubico and a great partnership with them. We are going to accumulate 600 MW build, and we hope that the way we can continue giving them or establishing them new projects and to continue in Colombia will remain and be materialized in these new projects. Of course, it's about offering them good projects to this alliance in order to materialize that investment. With the NC guidance, the most important guidance that we have had this year has been an EnergizarC project with its four or five initiatives, which is the reduction of indebtedness, 3.85, if the financial team doesn't see me wrongly. The second, of course, is to identify those initiatives to reduce or by being more efficient and do things differently, to find opportunities to reduce. The third, to materialize the value of our entrepreneurships. Now, and before, it's closing the link with new capital, $300 million, and of course, continue executing the requisition of shares. That is our guidance today in terms of the objectives. We haven't had more guidance in the rest of the data. I think we are saying that this is the guide. We continue to the message of deleverage, which is a topic that will be seen with greater strength at the end of the year, in the second semester, but the beginning of the year is very positive in achieving those objectives in terms of indebtedness reduction. Well, those are the questions that we have. Thank you very much, Sebastián. I do not know if there is any other question on X. Apparently no. Esteban, I think that we have today for the first quarter of the year. Thank you very much for being here. I hope we all three did wonderfully by replacing Ricardo. See you in our next video call of results, and hopefully with great news as this one. In social media, Esteban, we are going to be talking a lot about EnergizarC and the results of the repurchase. Those who are on Zoom can scan the QR code and subscribe on our newsletter. Thank you very much.