Earnings Call: Q4 2024

Feb 26, 2025

Summary

FY2024 revenue rose 9.3% to COP 6.8 trillion, with net profit of COP 221.9 billion despite El Niño cost pressure. Priorities include COP 1 trillion of debt reduction, COP 165 billion in savings by 2026, and continued platform growth.

The overall energy of Celsia sounds generating clean energy and taking care of the environment. Does it sound to you? This is what we're doing at Celsia, and electric energy is renewable and allows us to protect the basins of our regions. Everything is connected. We have connected everything with the energy that you want. Celsia, the type of energy that you want. It's possible to use natural gas to have energy in drought seasons. El Tesorito complements energy with other sources. It replaces the use of carbon, and it delivers clean energy to go through the scarcity that we're going through. Thermal energy is better for us in order not to go off in drought or dry times. Celsia is the energy that you want. This is what a healthy and happy community sounds like. You want an energy that prospers, that pushes for the progress of our community. We're moving towards moments of without outages. A community that is well connected to electricity is a community that moves forward. We make it happen at Celsia. Everything is connected. We connect everything with the energy that you want. Celsia, the type of energy that you want. Good morning, ladies and gentlemen. I want to welcome you to this teleconference of results of the fourth quarter of 2024. This morning, we have Ricardo Sierra, leader of Celsia; Gonzalo Piedrahita, the financial leader of the company; Santiago Arango, corporate issues; and Carlos Solano, regulatory issues. Right now, all participants are listening on Zoom, and we are also having the broadcast in the X platform. We will have a space right at the end for your questions, so you're all welcome to this space. Thank you for joining this teleconference, and I give the floor over to Ricardo. Hello, Gonzalo. Good morning, everyone. We look forward to a great conference of results for the results of 2024. We made it public, the call for the general shareholder meeting. It will be held on Wednesday, March 26, at 10:00 A.M. at Plaza Mayor, Medellín. We look forward to seeing you all over there. In addition, we announced the proposal of 2024 profit distribution of COP 326 per share, which represents 5.2% increase compared to the dividend declared the previous year, and it already represents a yield of 8.9% or 155 basis points above expected inflation for 2025. We hope that complies the expectations of our dividend that has always been sustainable in the long term, in spite of the issues that we've had in our different types of results per year, but this is a promise that we want to keep. The proposed profit distribution is equivalent to a total of COP 342 billion and such is going to be paid in five installments. This dividend reflects very clearly the resilience of our company and the solid performance of our operation in a year, which is harder every five or seven years, where we have El Niño phenomenon. I want to highlight that in this challenged environment, our team was able to overcome these difficulties, especially the regulatory. In 2024, we closed with revenues, consolidated revenues of COP 6.1 billion, which represents growth of 9.3%. EBITDA added COP 1.5 million. Let's keep in mind that EBITDA managed is reaching COP 2 billion. The EBITDA margin is of around 22%. We will get into details. Our EBITDA margin normalizes close to 30%, but there is a specific explanation because of the abundance of thermal energy, and the net controller performance was COP 222 billion. This is growth of almost 15% compared to 2023. Great financial results for a very challenging year in terms of the regulatory instability that we saw. Our action, our share was valued in 24%. We kept adding 890 basis points above MSCI Colcap. That represents 15.4%. Taking into account dividends, it is an important highlight that the return for the shareholder was 36.2%. Additionally, within the share buyback program approved by the assembly, we bought COP 79 billion, which corresponds to 1.86% of shares. We are making progress in closing the fundamental value gap in the communicated key information about our strategy as asset managers. The market takes into account all these different dimensions and include them in their investment decisions. Today, we will present a program that is called EnergizarC, which aligns all our value creation initiatives with adequate communication, especially the ones that are underway. Looking to 2025, and we hope that this communication will reveal clearly the fundamental value of Celsia in the market. Let us watch a video where we are going to launch our influencer, Esteban Piedrahita. Watch this video and we will have a conversation with Esteban about the different points listed in our agenda. Hello. Today I want to present, introduce the EnergizarC program. What is it about? The program that we as a company are embracing. It has five initiatives, and what we want to do is to help the market to continue creating greater value. Our share has a value potential that is huge. In order to help in that sense, we want to help you. Five important things. Financing, strengthening. Our first initiative. There is nothing more important than making the equity of this company larger, respecting the assets that we have, is by reducing our debt. Today, we want to be below COP 4 billion in debt. This is a little less than COP 1 trillion compared to the debt that we closed in 2024. We will be able to do it with the assets that the organization has right now, respecting the future cash flow, value generation, and EBITDA. If we manage to do this in this initiative, we will be revealing more than COP 1,000 per share. Those come from having less debt for the same level of assets, but it comes also in the explanation of those COP 1,000, we will create less financial cost of around COP 100 billion. COP 1,000 per share today is almost 25% more than the cost of our share, the price of our share in the market today. Today, I am at NOVA, the control center of all of our Colombian operation. This place brings together technology, process shift, and works in many of our visitors. This is almost unthinkable. This is important to reintroduce ReimaginarC. The strength of technology, thinking out of the box, and acting differently will be an important margin to reduce our OPEX in COP 165 billion for every one of our shareholders. That means COP 730 per share that we will reflect in value. That is the purpose of our initiative, ReimaginarC, in the context of EnergizarC. Our best-kept secret is the platforms and entrepreneurship. One part of revealing the value of this company means revealing the value of those well-kept secrets. This year, we intend to link capital and new allies to those entrepreneur initiatives. There is a value that we do not put in there, but the market is bringing forward. If we bring those COP 155 million, that will mean COP 370 per share for our shareholders. That is our third EnergizarC initiative. We were telling you last year that Celsia today has another Celsia, which are the assets. In the model of asset management, we want to guarantee that the new capital will comply with our initiatives by COP 360 million, at least COP 360 million, which are going to be important to build assets of above COP 1 trillion. That will bring new sources of income for the organization. Of course, the base of all of this, we will continue with our program of share re-buyback. We will continue with those COP 300 million of buyback that the assembly approved and that last year we were executing. We will continue doing that this year. Hello, Esteban. How did you feel there? Give a like to our video. This is an initiative that we are launching in the market, which is similar to what our cousins from Cementos Argos launched with their SPRING program. We called it EnergizarC, and this is in order to communicate clearly to the market the different initiatives that we are involved in, the impact and fundamental value of the share, which is very relevant here, Esteban. I believe that is going to allow the investors to do better follow-up to what we are doing and identifying the gaps. Further ahead, we will also reveal the value of the company with an exercise of fundamental value during this conference. Let us go through the five points. The first one is a strengthening of the financial infrastructure of the company. We want to increase. Why is Celsia doing that if Celsia is a triple A company? We do not have problems. Why are we starting right there? Hello, everyone. I had not had a chance to say good morning. There are two things right here. What we have thought around the initiatives of lowering debt is twofold. The first one is we have done a lot over the last 8 to 10 years to grow the company, and we know that debt, because of many things that we had in the pandemic time and the 2021 strike, we had those issues. We want to lower debt in order for the value to reveal. We know that we are triple A, and we have huge power. When we manage that power and we decrease the debt in COP 1 billion, I have COP 1,000 as equity, and now the mortgage will be much less. It is just as simple as that. That is going to help push one of the variables that we are working the hardest, which is that we have a lot of value in the results. We will talk about the share, what we called energy service. We are going to change the name again in this teleconference. That is the most important metric. Lower the financial cost will help us push the net income with other information that is more in line with those points. The block number 2 is that we want for the organization at the end of this year to end with strength and financial vigor. The phrase was coming. What we have revealed in many of the teleconferences, the growth of demand is going to bring a great opportunity ahead. The best way to be ready to capture that opportunity of growth is by being light in terms of debt. We are targeting 2 things: financial flexibility, to find the opportunities that are always under the world of crisis, and COP 100 billion. The financial solidity has enabled us to explore other opportunities of growth that are complementary now, and they open new windows to receive new income in the mid and long term. Let's see what we have and what we call the assets in scale escalation. Escalation businesses are what we call investment platforms. This is where we see our own capital as well as third parties. At the close end of 2024, the assets were here, were about COP 4.4 trillion, and they created EBITDA of COP 629 billion. They enable a very interesting growth with capital of very qualified allies. We have Caoba, the transmission in Colombia. We developed 12 projects in 2024. We added COP 2.7 million of assets, and we will move, we will overcome. This is the third transmitter. CELSIA Energy, the solar farms of large scale, grew 46% of the years in the income. This becomes like a snowball. It has around 600 solar megawatts between what we call operational and advanced stage of construction. We hope to go up all above 1 gigawatt over 3 years. Laurel, which is one of the photovoltaic systems. Those are 134 systems, 51 megawatts of installed capacity, and it is in different stages of development. Another 56 development. Our partner, Bancolombia, is helping us achieve our goal of 100 megawatts in half the time. This is a great energy efficiency company. When you consider all of these initiatives, it is important to understand that the value of the company needs to be contemplated in a sum of parts, including CELSIA Colombia, the platforms, Meriléctrica, Central America, and the financial assets that we have that are different from operational ones. When you look at everything we have and you do a value exercise between what we have between Cosechar and Escalar, the company has an average equity of COP 6.1 trillion and COP 7.4 trillion. This means that the fundamental value of the company reaches around COP 6.5 and COP 7.5 per share. It is clearly more than double than what it is in the market. If we add initiatives that we have just introduced in the EnergizarC program, it is clear that the company should be, by the closing of 2025, a fundamental value of COP 8.5. Oh, sorry, between COP 8,500 and COP 9,500 pesos per share. The board of directors is pushing for us to communicate all of this to the market and for them to make the best investment decisions when we see the share of the company. There is another horizon. It's the horizon of development, where we have innovative avenues of growth, projects in exploratory stages, where we have based the future trends of the sector, will allow us to pioneer in disruptive technologies. When we have the renewable energies, non-conventional renewable energies, batteries, green fertilizers that we have developed over the last three years, and digitalization. That type of thing that you know requires lots of experiments. They need time to see whether they are actual good proposals or initiatives. The assets that we have in Cosechar and Escalar, everything is included of what our comprehensive strategy represents. We want to be a good management, good asset manager in the regions that we operate. That closes this chapter of value. Moving on with Esteban to the detailed financial results of the last quarter of 2024 and to see how we closed this 2024 with very good news. I'm going to give the report of the prices of stocks. Remember that the analysis is available on our website for our investors, and all the information that is relevant is published here. We are going to go through the quarter. I know you always want to know how well we did during the quarter. The income of the quarter was COP 2.03 trillion. This is 39% more of generation and the positive deviation on reliability as a whole, COP 204 billion. At the end of the year, we show the prices of scarcity that we didn't see in the first part of the year when we had El Niño phenomenon because of the accumulation of the 2024 factors. We also sold more energy, both in contracts. In commercialization, we registered 5% growth explained by higher rates in the regulated market and a greater demand. In the R2 markets, the effect of high temperatures on the incorporation and transfer of new clients. In the use and connection of networks, there was a decrease of 8.2% compared to the same quarter of 2023. Explained because since 2024, the income from Toluviejo coal will transfer the Caoba platform. From other operational services, COP 292 billion, what we had in that area. This is 109.7% above the fourth quarter of 2023 due to higher sales assets in the BOT contract with the Caoba and Laurel investments. In Caoba, we had sales for COP 163 billion and Laurel worth COP 14 billion. Consolidated numbers were COP 6.8 trillion in 2024 as of income. That is 9.3% more than in 2023. On the sales cost for the quarter, this reached COP 1.74 trillion, with an increase of 41%, driven by higher generation costs, increase of energy purchases, and the higher costs associated with asset sales of Caoba, and more costs associated with fuel and the sales of Caoba and Laurel. Because we sell these assets, we need to go through the variable costs. So far this year, sales costs recorded COP 5.33 billion, which are 21% more. Here, not in the income, but in the costs, is where you actually see the effect of El Niño phenomenon in our performance. The larger purchase of energy in our energy balances, when they are short and we need to comply with our contractual obligations, this is when you actually see. The administrative expenses were of COP 117 billion, with an increase of 30.5% compared to the same quarter of the previous years. This increase totaled COP 390 billion, out of which they were product of the variation. The EBITDA was of COP 355 billion with a decrease of 19.3%. Remember, in 2023, in the last quarter, we had a spectacular growth with peculiar conditions. What we have right there is conditions of El Niño and the El Niño market. That was the impact. The EBITDA margin was up 17%, influenced by the amount of income that we do of transit to platforms and the activity of sales of assets. EBITDA went to COP 1.49 billion, 19.4% compared to decrease of compared to 2023. Many variables, remember 2023 operating EBITDA of the Central America operation in our figures. The traditional generation distribution marketing business contributed COP 1.42 billion to consolidated EBITDA for the year, and the asset management business contributed 20, 72.9%. Total managed EBITDA includes consolidated and platforms, almost were COP 2 trillion, COP 1.96 trillion. This is compared with other net expenses of COP 79.6 billion in other expenses associated with the sales in Central America. In the accumulated of the year, we have other net expenses, both COP 9 billion. That is 50% less than in 2023. Net financial expenses reach COP 165 billion, 11% less, and this is an important part in the cost of debt. The total of the year, we moved to reduce 29% in that area, and we closed in COP 617 billion. In the accumulated, there were 119 in provisions of taxes. I want to highlight the fact that in 2024, we provision a capture of COP 75 billion of tax benefits for investment in our non-conventional investment energy. That will show here in April. This is the highest tax benefits that we have had in the history of our company. Net profit for the quarter was of COP 58 billion, and during the year, COP 221.9 billion during that year. In the conversation, I told you that we would be talking about this topic. It was of 1372 in the energies. That is the only one where we measure this indicator. Be sure the WACC calculated of 12.01, almost 200 basis points as a difference we capture in terms of value. That is translated, if you want to see it in EVA, of our COP 131 million of EVA in 2024. In terms of debt, the company closed with leverage of the average life is in 4.17, and we closed with the consolidated cash of COP 316 billion. With that, we went through the main numbers. Thank you, Esteban. In the wrap-up, we are happy having moved with very high grades to the global. We have 85 points out of 100, 4 points more than the previous year. Congratulations to Santi Arango. He is our leader in that area. This is very important. We're the first company in Colombia in that index, and number 9 globally out of 263 evaluated in the sector of electric and utility. This is amazing that CELSIA achieves good financial results, and they have such leadership in sustainability. Very good. Here is where we open the floor for questions and comments and to talk with you a little bit about the whole message of our call. We have several questions, both in the Zoom and the people who are currently connected through other platforms. Those who would like to ask their questions live, they can raise their hands if you are joining us through Zoom. This is a question from Jorge Franco. Good morning. Where is the status of Porvenir II, and whether the expectations of sales or reactivations are the same. This is in the east of Antioquia. Santiago Arango can tell us about that, about the status of Porvenir II. Thank you, Ricardo. Good morning, everyone. The process of Porvenir II, they had suspended the development in September last year. The file is in the court for decision. No one can actually appeal this process, so we are expecting this process to evolve in the Consejo de Estado, and that's where we will take actions of whether to move ahead, sell it, or make a decision about it. We are expecting the final decision. For those who don't know, this is an electrical project in Eastern Antioquia. This is a project of 370 megawatts, and unfortunately, because of a legal process, it was stopped. Juan Ortega asks, "In the mid and long term, what is the strategic objective with the emprendimientos? To sell them, to develop them with some partner, or to do what?" It's a good question. The emprendimientos have different characteristics. I will talk about the third one we call energy efficiency. For example, today can consolidate all services and products that we have beyond the meter, beyond the meter. I will give you an idea of what types of assets. Solar energy generation in dedicated farms, light, air conditioning, compressed air, heat pumps, thermal districts, and many other types of assets, also electric charge. All that is going to be in a big vehicle of energy efficiency. When you consider that as a company, you are selling over COP 330 billion a year. When you see everything that is happening in the world in terms of decarbonization and people who are interested in investing there, that is the great frontier that touches all of our industrial and commercial clients, the ones that we have in the region. We are very hopeful with that. When you create that type of company that was incubated in CELSIA, anything can happen. You can bring partners, or we can have it here and look at it as if it were a private investment fund. With this, an offer in 5 or 7 years, we will do the best for our stockholders. Look at CELSIA with a chance of not being a traditional buy and hold, but a lot of its portfolios and its assets can be rotated, that in terms of enerBit and optic fiber for homes. Esteban, would you like to make additional comments about what we think about our emprendimientos? The last thing. It depends on each new enterprise. It has its own route to materialize and capture the greater possible value. Very well. Thank you, Ricardo Santiago. Rafael Castillo asks, "These shares of Air-e, what type of horizon do they have? One year? Would the projection of cost of sales for 2025 have a decrease because the El Niño phenomenon would not be understood as, Esteban, you explained it, and what is the projected reduction of that?" The first one is about the horizon of Air-e. I am the influencer of everything. Rafael, it's a good question. The goal of these initiatives is actually the one that has a little bit of a broader horizon is ReimaginarC. We will give you more news about how our think tank is moving forward, but we'll be materializing all this. ReimaginarC will be completely active in 2026, but all of these initiatives that we are letting you about of ReimaginarC are 2025. Just as our cousins told us, this is like Air-e 1.0. This is the part that Esteban applies. The second question, very quickly, Gonzalo, tell us that we are answering. The variable cost needs to go down, at least for the energy generation. How much, Rafael? We are overcoming the critical conditions. The volume of the decrease, it depends on how the system is done and how much generation we will need to go through the summertime or through the dry season. It will depend on the real conditions that we achieve for 2025. Juan Pablo Ramirez, good morning. Regulation about Resolution 101066 and 069. What are the impacts in the short, mid, or long term for Celsia and for the market? My proposal is, let's set up a chapter for regulation. Here he is more specifically for that. Let's move together to the next one and we'll talk about the regulation questions later on. Thanks for all this information. Four questions. Why the increase in debts for 2024? Secondly, the company has financial covenants with indicators of debt. Number three, I understand the objective of reducing debt and taking into account that. How would that process of reducing debt without having an impact in the cash flow? Fourth, what are the perspective in terms of value in the Peruvian market? Why more debt? We increased our debt, the audit on the market derivative, COP 61 billion. We will begin with the one that we have repeated over and over again, the one that has effects. Around COP 22 billion is the delay in the payments of subsidies that comes from the delays beyond the cycle of working capital, COP 230 billion. Another third of that corresponds to the balance that we have for asset development for platforms. We had delays as to what we were expecting in terms of cash flow. We have COP 100 billion sales of assets that we did at the end of the year, but Copec didn't pay. There are COP 100 billion and another almost COP 150 billion that weren't ready by December as we expected. That should be doing transfer in this quarter. We have another third of those COP 200 billion. The other third of that amount, because we have been supporting the development of Peru, just as Ricardo Sierra said, we are in the process of the fund, especially because of the importance of Caravelí to move forward decisively in decisions of Peru. We have contributed cash flow for Peru, and those do not belong to our support to the fund. Those resources that are around COP 200 billion should also come to the immediate assets of the company. These are big issues, but that are well identified in our exercise. That COP 1 trillion is reachable, is doable. It is not easy, but it is doable. The interesting thing is the what is the impact of that in our CapEx and our cash flow? The decision of the company of expansion capitals of the business in Colombia, other than platforms, it should be taken to its minimum necessities as a CapEx of reposition to fill. Those should contribute to the cash flow. If you see our working capital last year, is that our inventories went up a lot because of the concerns about the supply chain. We had a lot more conservative viewing in terms of the inventory management. This year, we will be able to use resources that come from the line of inventory in our needs of working capital. We are going to give you reports every 3 months of how we are doing with that reduction. We want to achieve all of that without having an impact on the quality of service. In terms of covenant, in terms of the huge debts of the company, they do not have covenants because they are in the program of ordinary bonds. That is senior debt in some of the exercises that we have them, but in none of our results make per our covenants. There is no concern in that aspect. Ricardo Sierra already mentioned that. I did not understand very well the question in terms of the value for Peru. I will repeat. There is an interesting point, Esteban. How do the investments see the value when we create capital funds? The capital fund that we want to create are going to be $300 million of commitment investment. We will sign that with the investors. That will help us to deploy investments. Those are not going to be consolidated in our numbers. Those need a manager of a capital fund. The first one, we are going to see it from the standpoint of income of what we call the management fee. Those are about $4 million per year. The second is we are going to see every year how our position, how the value of the fund increases. That is the first time that one of our management vehicles is going to have an actual market exercise. Lastly, in liquidity moments, just as Ricardo Sierra said, the year 7 and ahead, we will see the carry. We should all do the thesis work of what our minimum is with the investments. That is how Peru is going to look like in our numbers. Now, another question, a live question. Catherine Ortiz from Corredores Davivienda is going to ask the question. Open your mic to ask the question. Hello, can you hear me? Yes, Catherine. Hello. Good morning. Thank you very much for creating this space. I have a couple of questions. The first question, just as a moment ago, they were asking about the time of these shares that you talked about today. It's interesting, the topic of Reimaginarse. Those COP 165 billion in costs and expenses are this year plus the other year, and from then on, those savings are going to remain there, or how can we incorporate and understand better that? Is that effect represented by the same platforms and everything? Or what companies, CELSIA S.A., where do you see the savings of the COP 165 billion? The other question is to add to the next question that we have in terms of regulatory issues. I would like to have an update in terms of regulatory issues. What has happened with the payment of subsidies, the report that says that you have been recovering from tariffs. I would like to know what is the balance. We see that there are companies that have been impacted, Air-e, that haven't paid actually their debts. I want to know whether CELSIA has receivables that is exposed. Also among those things, I don't see the intention of diversification, geographic diversification. I know that you have the activities in Peru. But earlier on, I heard that the company wanted to diversify geographically with everything that we see in the sector in Colombia. It sounds like it would be a lot more relevant. I don't know whether there is a specific reason why you are not considering this within this plan, and whether you would like to tell us about that. Well, that's it so far. Thank you very much. Very good questions. I will start with the one of Reimaginarse, and I will let Carlos Solano to set up his part of regulation. The energies are some measures of the program that we're launching. All of them are due for 2025. Reimaginarse, which is OPEX. See how we are facing that. The first installment, that's what Esteban says. This year, OPEX in CELSIA Colombia is very important, that clarification. CELSIA Colombia, which is like the aircraft carrier, OPEX, did not grow there. There are savings there of COP 160 million this year. But the Reimaginarse that we are proposing is an additional one of 165 savings that should be presented in the data of 2026 for your financial models. How are we going to achieve that? As of June, moving into the capillarity of the operation in order for you to see the seriousness of how we are dealing with this. All the teams should configure the way they are going to be able to do what they need to do in order to add to those 165. From now until June, all the initiatives need to be well planned, execution plan and so on. Many of them will be executed in the second semester. But they will be seen in the 12 months of 2026, completely executed and reflected in the execution of costs. As you said, they will be reflected in CELSIA Colombia - costs and expenses in CELSIA Colombia. Now, geographic diversification. In terms of geographic diversification, we clearly solved the Central America assets. We are opening the Peru operation, and what is coming in terms of geographical diversification? Energy efficiency starts to take a more important role in many countries. Energy efficiency is going to be present in Central America. We are starting with energy efficiency, two additional frontiers. One is Peru, and Mexico. These are all the products that I mentioned beyond just the meter. Different returns. We expect to give them a lot more color next time. We will have additional geographical diversification from Peru and enerBit, which is our digital commercialization, is like our Nequi, our payment platform like fintech in the energy sector, is going to be supporting with its energy, the commercialization sure that we are implementing in Peru. Those are the first steps that we are doing in geographical diversification with the entrepreneur operations. That is what we have in terms of diversification. Thank you very much, Ricardo. Very well, Carlos. Now, in terms of the regulatory chapter, what about the subsidy payment, the tariffs, and the AIR-E receivables, and the Resolution 101066? Good morning. In terms of subsidies as a country, we closed with a debt of around COP 2.8 trillion. At the beginning of this year, the Ministry of Energy and Mines created a system of COP 200 billion, and they did another payment that we understand is going to be of about COP 560 billion. With those, the Ministry this year has paid COP 660 billion. The Ministry of Finance, he has committed to pay COP 1 trillion. Our calculation is that we have a balance of COP 6.6 trillion, but if they told us that we have out of the COP 660 to go to COP 1 trillion, that our monthly accumulate in our system are COP 100 to COP 330 billion, we are going to accumulate more than what the government is contributing. This is highly concerning in this sector. We try, if these payments are positive from the Finance Minister, we want them to increment these payments in order for debt to go down. In CELSIA, the accounts that we have here, the balance that we have after that payment at the beginning of this year, we have a pending balance of COP 330 billion. Last week, we had COP 23 billion payment, and we caused around COP 26 billion in terms of subsidies. We continue with a balance of debt of COP 230 billion. In terms of the tariff option, as of January, we have receivables for COP 334 billion, COP 330 correspond to the Tolima, COP 30 and COP 4,300 to the Tuluá market. In Valle and Tuluá, we expect in the second quarter of this year to complete the recovery of those balances. In Tolima, we are doing that in a more diluted manner over time, and it is going to take us a little longer to complete the recovery of those balances. Now, the question about the resolutions 066 of last year and 069 this year. Those are resolutions that basically modify the scheme of the Reliability Charge to the price of scarcity. One is the superior, is just the same as today that applies for the thermal plants that uses fuel, natural gas, and liquid fuels. The other one is the inferior scarcity, all renewable and carbon, and COP 360 per hour. But with the indexation in those resolutions today, it is in COP 299 per kilowatt hour. This is a negative change for the sector because it disincentivizes the investment in renewable technologies. It disincentivizes the participation of buyers in the contract market, and it distorts the working of the market, because it gives a signal that we need to create water to generate energy before using natural gas and liquid fuels, which is of the logic of what the market, how the market should operate in scarcity situations. Recently, they created the regulatory agency for gas and energy. They are proposing to increment that inferior value to a value of COP 540 per hour, which improves a little this situation, but the fundamental effects remain there, and there is a need for a greater magnitude adjustment. These changes would apply for the larger plans, the ones that have a power of. Only as of December 1, 2028. From here to that date, it is going to be just volunteers. We want to apply that scheme. We are analyzing the situation. We are in the process of analysis of response. As I just explained, that change is negative. For the minor plans, this modification doesn't carry a greater impact. As a summary, as a company and as a sector, we will continue having dialogues with the government for them to understand that these modifications are not good, are not beneficial for the market in order for them to put in place the necessary adjustments, so that those negative impacts won't materialize. Let's see whether anyone wants clarifications about any other points, but I think it was highly comprehensive, all the regulatory issues. Catherine, you are raising your hand. Please. Yes, I only have one question, and is what is being talked about the new formula that will go into force in March this year? Is the incorporation of 069 or an additional one? We've had confusion because of the way this topic has been expressed. The tariff formula, which is the way how the tariffs in the sector are, the only form that is being modified is the price of scarcity. That has to do with the purchases in the stock exchange. That would not happen immediately, but in the midterm, as the norm is applied. The application is voluntary from now until December 2028. But that is not going to have a significant impact in the short term for the prices. Is the application of 069? Yes, great. Thank you very much. A question from Juan José Mariñón from AP Impactua. This topic is important because it has come several times. Could you give us more details about the leverage of 0.6x? I'll repeat, the plan that you have to reduce debt. How did we get there? We already explained that. It was all about, Ricardo explained, the multi-causal plan. The cash flow or the organization, Ricardo already said that, because we are rethinking our own CapEx and we are prioritizing value and leverage. Secondly, we said that we had a cash flow that we should have captured in 2024. We didn't do it, and the idea for the company is for that box not to go somewhere else except to lower debt. We have those two big blocks in order to deleverage. Obviously, there might be other associated opportunities with new investors that will help us have a CapEx, so we can have more resources. Those are several of the elements of how we're going to leverage this. For a future investment call, this question has emerged several times. Probably they don't understand very well how we are going to achieve this decrease of COP 1 trillion of debt. It's important to mention the most interesting milestones that we have throughout the year, so they can also include those in their value scenarios in terms of that initiative. We will do follow-up to the five variables in the teleconference. Maybe we could incorporate that additionally to this call. José Ricardo Gómez asks, what is the current state of the energy project, solar energy in the country, and the horizon, the time window? We have around 300 megawatts in the solar farms. We are building another 300 megawatts that will be functional in the next 12 months, the large farms that are ours, and we are also waiting for what we call, which is advanced development of other projects to be able to develop between 500 and 600 additional megawatts in our solar platforms. We expect to be able to deploy them in the next 3 years, more or less. CREG is giving drop-by-drop point of connection, and that's not very good news in terms of photovoltaic issue. What we see is that there is very low approval of new projects, as if it was impossible to connect more projects in this country. We are surprised. Less than 5% of the approvals that have been requested in every point of connection, and they have delivered these things little by little. There could be a great bottleneck for the generation, the distribution generation in Colombia. The 300 that we have under construction. 220, 250 extras and others that depend on connection points that we hope them to be allocated. That is what we have in terms of the solar component. Thank you, Ricardo. From Bancolombia, Ricardo Sandoval, you're raising your hand. Please ask your question live. Hello, everybody. Thank you very much for this call. I'm sorry about to insist on the debt, but I would like to have two clarifications. The first one is, you talk about the increase of the COP 600 billion this year, and I would like to know in that deleveraging plan, do you expect the government to pay the balance for subsidies that they have for COP 230 billion? That's the first one, of whether you expect that payment to happen in order to lower that leverage that we have. The second one, in terms of the debt, and I am sorry, I apologize if probably I missed one part of the call. I think Ricardo said that there is a decrease in CapEx of the platforms and an optimization of the working capital. If that's the case, I want to know whether this is creating a cash flow that will enable you to deleverage. Thank you. I will try to answer your questions. It's good to say hello to you. To give you clarity, we are waiting for the government to pay its subsidies because they owe us that money. I will explain the mechanism of subsidies, which is very important. Every day, we are giving receipts to our clients. We're talking about 15% for the social level number 3. We take that cost of working capital, expecting for that subsidy that we already gave, you expect for the government to give it to you. We're expecting to receive that money. Within our financial plan, which is a very different thing, we have different scenarios. The reduction as if these payments were late. We want to achieve the reduction of strengthening as the point number 1 of our exercises, in order for you to have that clear. The government needs to pay that money because otherwise, they put us in trouble, just as the electricity distribution issue is in the country. About CapEx, now I want to be clear. I'm sorry if I weren't clear enough. We have platforms, accelerated growth, Coova, or they continue with their growth programs. They are incorporating new assets in construction mode. There is no CapEx mode. Where we are limiting CapEx is in CELSIA Colombia. That's our operational aircraft carrier, bringing it to its minimum necessary, where we won't compromise the quality of our service. We will continue serving everyone properly, but not bringing any expansion CapEx. So very, very small compared to the levels that we used to have. That gives us a margin, an operation margin to have a cash flow where we can actually bring down debt. That is the explanation that we were given. It's important not to confuse the platforms. The platforms are our growth vehicle and our yield vehicle, CELSIA Colombia, where we handle them separately and strategically, very well differentiated. Let me complement something about the question, is the working capital. We mentioned two things. The first one is that in the CapEx plan, we are going to take advantage. It helped us in terms of cash flow and execute assets. We're going to use a lot of the inventory that we already have. The inventory that was built over the last years of being conservative and to be cautious in terms of supply, we will put that for the growth of the organization. This is not going to use CapEx. The other part of the working capital is under the head of development and construction of platforms. That is the assets that we want to recover and that the platforms, because of different reasons, haven't paid. So those are two working capital blocks to contribute to the best cash flow and how to reduce that. Thank you very much. That was clear. Thank you. There is a question from Juan Pulgarín. Two questions, actually. In the past assemblies, we approved donations to the foundation of The Matrix. Do we have an estimate of the donation? Can we ask for the foundation to create campaigns for the freedom of enterprise and institutionality? Thanks for the question. Yes, we will keep our level of donations on IPC. Yes, exactly the same as last year, 6,530 million COP for the foundation. That's great. We are fans of enterprise freedom, and in many of our publicity campaigns, we have tried to showcase those clients of ours that basically 90% of our commercial businesses are medium and small companies, and we highlight the role of those entrepreneurs. We have had many companies. Gonzalo, can you remind us of some of the slogans that we have? Clearly, they are in the direction. Looking at that client base in Valle del Cauca and Tolima. Our company is a place where everyone wins. We have that type of slogan, win-win. Highlighting the work that we do with companies. When an enterprise wins a bid. Our Directorio Naranja. We put at the service of our entrepreneurs our social media. This is an ecosystem that renews through Facebook, where we have talks, webinars, and initiatives, training initiatives, and we take them into account as suppliers. This is a very interesting ecosystem because we are working around those MSMEs. There are two or three activities, parallel activities. The private sector will be able to work freely in terms of the trade. We send out a lot of messages. We are in several sectors of energy in ANDI, and we are also in another one, which is less known, which is the Consejo Privado de Competitividad, where we work hand in hand with many entrepreneurs, businessmen and women, led by Ana Fernanda Maiguashca, where all the competitivity issues are worked, in order to eliminate regulations, simplify everything, and to give the ideas using data and arguments that will help these decision-makers to make the best decision. This is a silent work that is done from the Consejo Privado de Competitividad. There is a think tank that is called Libertank, that we are also supporting. We have supported some of its initiatives, such as what we call Leader Labs, training sessions for young people in terms of economic freedom. We have supported some of their campaigns, and we believe that is part of our responsibility. The environmental protection environment to private property and economic liberty allows us to thrive. Thank you very much. Lastly, next, there is another question about the margins. Last year, there was a drop from 29% to 21% because of the cost of fuels. Is there a strategy to improve the profitability in that sense and to improve the operational margin? Yes, we have what we said before. The margins are affected by El Niño and the amount of purchase of fuel. The purchase of energy. This coming takes El Niño hit us hard because we do not have energy. We are like an water aircraft carrier, and when El Niño comes up, we are buying energy. That, of course, has an impact in our margins. The first thing is to try to abandon that extreme condition that we saw in 2024 should help our margins recover to more normal levels. Secondly, Reimaginarse these margins, because we are talking about issues that will contribute the organization's OPEX to go down. Thirdly, we have a lot of short margin, but we contribute a lot, and you see that in the income, the transfers of assets, and the recharge of platforms, those values have an important impact in our margin. The cost, we have calculated that can cost between 400 and 500 basis points. It is only the exercise of selling assets and the income of platforms for further transfer. If there is a plan, going back to normal conditions should give us return to margin in a more stable conditions and also doing the exercise of eliminating the manager, especially development and commercial representation. Right now, we don't have any other questions, either on Zoom or X. Great. Thank you so much for joining us for this report of results, and we wish you all a year full of energy, and let's all of us energize. Thank you very much