Earnings Call: Q4 2023

Feb 21, 2024

In the right-click on the screen. If you're using a mobile phone, click on the screen, and you can. Then you can choose language, and then finish. In both cases, if you don't want to listen to the voice in the background, you can click on Mute Background Voice. Thank you so much for being connected to our conference. We want to tell you that we are also broadcasting from the X platform on a space where, at this moment, we have 20 people. Coming up next, I'm going to give the floor to Ricardo Sierra, President of Celsia. Welcome, Ricardo. Thank you, Gonzalo, and welcome to this conference of wrap-up results for the fourth trimester. As well as the shareholder board said that we can share some of the cash flow that we had from the sale of some assets that we had in Central America. It's a nice combination, and we hope that is well-received by our investors. Let's remember the last year, we had an appraisal of 6.5%, and talking about the close-up of the year, it ended up in COP 2,960, contrasting with the change of COLCAP of 7.7%. Considering dividends and the increase of 6.5, the total return for 2023 was 18%. That has been a tad outdated, because we started executing the program on 2023 of the share restitution through the BVC mechanisms to increase liquidity in the market, and in this way, contribute to improve the price forming. Until February 2nd, we bought over 225 million actions for COP 428 million. That increased the amount of shares to 428,000 shares, compared with the 190,000 shares that we were having from 2023. So taking these to 125% above their negotiated volume that year. Talking from February, the repurchase has been suspended, given the rules of this mechanism that has been defined by BVC. We're going to continue with the execution of the program through an independent mechanism with a value to require to up to COP 10 billion. And the price per action will go with the cost of the change of the BVC in the days of the warning, and the closing date of the actions on BVC for tomorrow, Thursday, February 22nd. So on the 25th and the 29th, we hope that we can have these offers. And in this fashion, with this COP 10,000, we will be able to compensate the time that we were outside the market and give a little bit more liquidity to our share. Afterwards, we are going to go directly to the repurchase through transactional mechanisms. In the transactional mechanisms, I'm telling you that we have always been operating with the maximum that has been allotted every single day. Now let's go with the company results with this year. We have the company set up with something working with profits. On 12 for 2023, we had 16.36%. In 2026, we had something in level of one single digit. This reconfiguration of the operations in Colombia to have in a single device the optimization of the assets of the portfolio, increasing the unregulated activities, and all the work that we have done in new technologies, allow us to have these results. From 2017, we started the structuring creation of the things that you have heard from us that are the investment platforms. Now they have a sizable, a relevant size. We are working about these because we have had growing scenarios, and they have allowed us profitability that we wouldn't have been able to have before. Let's see how the company has been structured to see this new value dimension for Celsia and the shareholders. Celsia represents the meeting of two big businesses under the same umbrella. On the one side, we have the energy businesses. That includes generation, distribution, and trading of energy and the adjoining products. With assets that are property of Celsia Colombia, or Celsia Centroamérica. It is a traditional business of energy, or as we know it outside the typical utility businesses. On the other hand, we have an asset management model that incorporates business platforms where we aren't only partners, but we're also developing the commercial representation of the assets before the electrical market. We develop and build the projects that we have in these platforms. We also have some margins from the operation maintenance of the assets. In general terms, we are attentive to working with all these elements. Also, we soon hope that we can incorporate within these our activities in Peru and other growing fronts. It's interesting, this two in one that is Celsia now, that allow us to continue creating powerful value creation mechanisms for our shareholders, both from our traditional activities, like from the other fronts that help us to move constantly in this dynamic world of energy. Let's talk now about each one of these cornerstones. In our business, we have a capability of 141.4 megawatts. The braai that we have that we're remunerating, the 3.38 elements in the component of transmission broadcasting, it's catering to more than 1.3 million customers in the commercialization part. In our asset management, we have in this moment COP 3.7 billion of operational assets in the platforms, C2 Energía, Laurel, Tesorito, and Caoba. You can see how sometimes we lose the reading of this, and we need to make this visible to explain a bit more in detail these two worlds that are living together in Celsia. In the business energy model, doing the profound exercise, we have some income of COP 4.93 billion, with an EBITDA of COP 1.51 billion. The net profit of this business went to COP 463 billion. On their side, the platforms that are under the asset management model added income for COP 1 billion and EBITDA of COP 546,000 million and some net profits of COP 180,000 billion. These final results from the platforms of the asset management are not being consolidated in our financial statements. As you can see, this is a powerful, very interesting strategy, generates value, and allow us to be in growth and the company to be in electrical work that is in GIL and a very interesting model on growth. Let's continue working now with the financial results, and we're going to give floor to our CFO so that he can share this information with us. Thank you, Ricardo Sierra, and good day for everybody. Talking about the different channels that we have had for this call, as usual, the detailed analysis of the state results and the financial information, you can find in the reports that have been published in the different investors. It's important to mention that in the fourth trimester, we have the sale of the assets of Central America that increase the work of the attendance that generated a lower profit compared with COP 1.2 million. The agreement of sale had a fixed price for January 2023. For this reason, we have to review all the movement of the relationships as we have done so far. We also registered in this last trimester with an agreement with the claiming that we had with Project Proviniao that gave a net expense of COP 6.5 billion. Consolidated income in the fourth trimester were COP 1.66 billion, with a reduction of 6.2% concerning the same period of the prior year. Operation in Colombia were 95.7%, and Celsia Centroamérica provided 4.3% given this investment concerning what we have done. In Colombia, the results were characterized by an increase on the generation of 32%, explained by a higher sales rate that compensates the lower volume of energy that was generated. Within this income, we consider more than COP 9 billion linked to activation of the coverage of the climate parametric that we had during this trimester. In the commercialization business, we had a growth of 13% explained mainly for a higher rate in the regulated market and a higher demand, which compensates the lower income from the fee option rate that was diminished concerning last year. The income of the using connection of networks also increased this time 22%, given a higher IPP and IPC in year-over-year, the assets and commercial operation and the adjustment of the regulatory WACC. In Central America, we had $16.7 million, out of which $11.9 million related to the creation of energy and the other income with the business of customer attention with solar projects and other operational services were $4.7 million. Consolidated income in 2023 were COP 6.23 billion and registered a growth of 11.6% concerning last year. In sales, we had COP 1.23 million, a reduction of 6.7%. So far, the cost of sale have been COP 4.62 billion, and in this case, with a growth of 14.1%, increased by increase of the generation cost linked with a higher thermal request due to El Niño, especially in electric energy. Administrative expenditures were COP 89 million, with a reduction of 27.1% given the optimization on the expenses by the austerity campaign that we internally promoted in the company. This linked with the recovering of the portfolio of CNC Del Mar and the commercial portfolio. So far, that means COP 344.5 billion. That is 42% lower than what we had with the prior year. EBITDA of the trimester was COP 439.8 billion and had showed a reduction of 0.9 before the other trimester of 2022. The EBITDA was located in 36.7% and the EBITDA accumulated, that is 3.8%, and was located in COP 1.85 billion, having a margin of 29.7%. When we isolate the commercial representation and the BOT sales that Ricardo Sierra was mentioning some time ago, this part of the management service of the platforms, EBITDA merely of this energy service in the 38%. It goes line with our work. Net financial expenditures were COP 186.8 billion, having a reduction of 12.7% explained by a reduction on the amount of expenditure given our disinvestment in Central America and lower investment rates, both giving the indexing areas and the others. So far, the financial expenditures have reached COP 867.6 billion. That is 54.8% more than the interest that we had during 2022. Taxes to profits were COP 25 million in the trimester and were reduced 69.2%, mainly because we had higher tax benefits associated with investment and the entry and operation of the solar park. The accumulated of 2023 had good elements, COP 140,183 million, and registered a reduction of 48.1% versus 2022. Net consolidated earnings were COP 66.3 million and in the year, COP 348.8 billion. The accumulated amount that we have controlled in the trimester at COP 14.5 million, and the year was COP 193.4 million. For the net earnings of the year, the two topics that are more interesting for us that we are highlighting are the ones associated with the financial movements of the situation of the assets in Celsia Centroamérica and the closing of the agreement that we have from the beginning. In the numbers that we have, the company closed the year with a consolidated of COP 4.83 million. Now, with the levering, it is 7.34 in the EBITDA. The mean life is 5.33 years, and we finished with a consolidated work of COP 6,000 million. In the platforms, we were talking about platforms, in C2 Energía, we tripled the energy, our income in the year, while having COP 130 billion with the EBITDA of COP 112.8 billion. Laurel, that is our solar platform on lower scale, we have COP 13.8 billion and an EBITDA of COP 148.2 billion. Tesorito on its side, has an extraordinary income on COP 859 million and EBITDA COP 112 billion. Finally, in Caoba, it had income for COP 483.8 million with a growth of 27% and an EBITDA of COP 248.2 billion. That also means a 25%. All the numbers that I just mentioned in the platform have not been consolidated with our financial results, and they are part of these assets that we have already mentioned. With this, I finish the analysis of the financial data. Thank you so much. Thank you so much, Esteban. I would like to highlight something else that related to the topic of the financial data. EBITDA that has been consolidated shows COP 1.83 million, and when we add up the associated elements, we have COP 2.83 billion. Now we are managing assets for over COP 12.5 million, both in those energy services, like in the other assets. These businesses and the strategy, the growth strategy, has allowed us to yield results for our shareholders, and we hope that is an important part of growth and profitability in the future. It is not a minor element. COP 20.8 million that we have in EBITDA in the asset management, and it has grown with more than two digits, probably for the next 2-3 years with investment plans that we have already defined. We are going to continue giving you a detailed idea of both worlds that we have inside CELSIA so that you can cover our numbers, you can make a calculation analysis, and we can recalculate the topics that we have in the projection of the value from CELSIA. We can talk also about the total investment that we had last year. We managed investments for more than COP 1.14 million, distributed as follows: Investment for the operational continuity for COP 200 million, investment for expansion for COP 197 million, investment in Celsia Centroamérica for COP 70 million, and investment for the platforms for over COP 665 million. You can see clearly how this is presented. We had the money allocated in utilities in Celsia Colombia and in the sole growth of the platforms in Celsia Colombia, we did investments for almost COP 300 million more. That is good. Now, concerning results and growth, we had a summoning for the Carreto of 500 kilovolts with a small network, 1 kilometer and double circuit. In the call for action, we had six offers, and we managed to be selected. A project like this, that is giving reliability to the system in the Caribbean region, is expanding the capability in the coast and is going to be able to get many meetings of good size in the area. The project considers associated lines that are going to be connected to the Chinauta-Manalanga, and 4x500 volts, and the substation is going to have the possibility to have more lines and more transformers. The project should be operating in 2027. In the hydric generation, we still are managing this topic of the work of our essentials. We have investment of generation, the thermal support, as well as climate coverage, with all the purpose of sorting out, in the best way possible, the El Niño phenomenon, and be able to provide energy to our friends with competitive prices. To wrap up, the ASG of the last year, through CELSIA Foundation, with the contributions given by the foundation, we were able to improve the school infrastructure of nine educational seats in four departments next to our operation, and we helped the work of more than 560 teachers, improving their capabilities and competencies. With this, we were able to cover more than 50,000 students within all the country. In all the programs, we were able to benefit more than 85,000 people. Some of these initiatives were delivery of safe water filters with the Grupo Argos Foundation, scholarships to have access to higher education. We see a marvelous program in the group, and to bring children that do not have the capabilities to study, and we are giving them a chance to have a leap in their lives and their families. Also, we developed a program for improvement in our neighboring communities. From ReverdeC community, we also have 3.3 million trees. We restore 1,105 hectares, 11 hydrographical basins, and we have reached almost 16 million of planted trees and more than 7.2 hectares since the program started in 2016. That means that we have also been certified a neutral carbon company for the second year in a row. These are our main elements. We are going to answer all the discussions and all the comments that you have. Thank you, Ricardo. Thank you for the proper topic. In this moment, we are going to get ready to receive the questions from the participants. If you have a question, you can just raise your hand in the icon that you have through the Q&A session of the ones that are participating there. You can also raise your hand in the space of the X platform, where we are also broadcasting this teleconference. There is a first question in the platform with Juan Pulgarin. He was asking the following: Regards. You just mentioned that the company's focus on profitability. Profitability for shareholders is higher than the profitability of these and higher than WACC? Esteban. Hi, Juan. How are you doing? We use as our parameter, measurement parameter in the return that we give on the work that we do. For the close, when we finished 2023, we had the pandemic, and for the closure of 2023, they have the official data that is 18%. Given the something that we calculated, that is going to be 15.53. That means that we are effectively above our mean cost of capital. On the other side, we are also measuring for the purposes of our profitability exercised for the shareholder. We are talking with the shareholder, the repository in English, that is the sum of the dividends that we paid with the work and the action. During 2023, what we have is that the combination, both of dividends and the work that we had last year, is around 18%. Thank you, Esteban. Also, we have Juan Pulgarin with the percentage that we consider. In prior meetings, it was saying that we were going to study these dividends every 2 months, but now we're talking about every 4 months. Can we give some additional information? Well, basically, Juan, the strategy of the management of the cash flow of the company, 4 months allow us to model properly our needs, our cash flow needs. If you see this, it's a custom that we have been handling for so many years, that we have many people that are accustomed to receive their dividends in this fashion. Thank you so much. Next question from Juan Pulgarin. What percentage was considered for the increase of the tax review? What is the procedure that you have for having a tax company to review this information? Santiago Arango, our leader of corporate affairs. Hi, Juan. Thank you so much. Now that it goes with increase. For this year, we had the budget, an increase of 25.8%, well, basically the IPC. If you take into account last year, the price was COP 182,430,097. Basically, we are about to pay in this period COP 198,699,022. Given the corporate policies that we have, we have to consider that the Article 5 is where we establish how we work with a tax review. It's important to take into account that the elements have to be presented at least 5 days before the date for the finishing of this. That means 5 days before the 21st, the 20th. Because also our QR code is something that you can easily find in Internet, establishes that the circular that we as issuer, the pension funds are considering important elements, and we have to meet the external, the foreign element, and the Superfinanciera, where we basically are establishing the usefulness of these, the international standards, and we are talking about this work and others. So when a shareholder wants to send a proposition on top of everything that we mention in the request, they need to have the shared proposal, experience, and others, the value that is going to be paid, and all the documents that are going to tell us that they have the suitability that we mentioned, including the statutes, the government, and the first element that we are mentioning. Thank you so much, Santiago. Okay, now we're going to go with the questions that we have live. We have one person that is Edgar Mayorga, that is from Chile. Maybe you can have the microphone to make the question. Welcome. Hi, good morning. Can you hear me well? Very good. Outstanding. I just wanted to make a question from the regulatory perspective in Colombia about the proposal or the reform to the public services that is intended by the President to send to the Congress. I do not know if you have an idea on the matter and what you think that can happen through this proposition. Thank you so much. I am going to tell you a bit about our reaction. Yesterday, we have a communiqué from ANDESCO, where it says that it summarizes quite well what we are thinking about the reform. Yesterday, we saw something from the Minister of Mines saying that this was not the official text, but it was a text that was filtered, I do not know how, and that they wanted to do something more agreed on so that it covers the needs that we have in the sector. From CELSIA, we want to tell you that we share the position of Andrés with his talk, because I think that the reform or this Act 142, 143 was properly developed 30 years ago. 30 years ago, it was done to solve many problems that we had in Colombia. I am going to tell you about many of them. We are going to talk about coverage of four homes that we had in Colombia. We have one without energy. Now, practically, we have full coverage in Colombia. Now, talking about quality, Act 142 and 143, it is a product of the trauma that was generated by a turnoff that maybe many of you did not live, but it was really hard. 11 months, we had difficulties of energy supply in Colombia. That was at a full cost that was very expensive for us. So when we talk about quality and capability was managed because we gave our income and possibilities so that the financial service, the fixed sector, and the public energies can develop different projects and can continue competing. This is what we have in Colombia. In Colombia, we have an ecosystem that even in the last element, we see that 30% of the offers that we have were effectively different, and 80% were, again, different developers of different parts of the world that are investing in Colombia. The coverage, quality, capability of energy generation, and when we see prices, that is one of the arguments that we see the most in the country. When we see prices, we have to be very careful. We have done a great analysis that is being linked with the Peruvian company, I forgot. Osinergmin, that is doing some studies in Latin America, where we can measure what is the primary cost of the energy service in Colombia, considering the other countries of the world. We are like number 5. But when we see the ones that are underworking are failed systems. Now I want to make clarity into this because we have Venezuela, too. We can have a system in Venezuela because they have so many difficulties and so many issues from the things that happened, and that the cost associated to have energy are enormous, and they are not only considered in these. That goes with many problems, too. The problems are still generating lots of difficulties to the customers. That has already been overcome, and I think that this Act wants to go back to a world, to a scenario where the competitors, where the private capital or mixed capital, allow us to bring innovation to develop new products and new services. Probably, Martina, there are going to be things that are going to be improved. We cannot deny this. There are some special topics that have to be considered in terms of rates at the northern coast that we have to analyze with a lot to not for defining a problem. We cannot load to all the system that has generated energy origins for all Colombia in an incredible manner. Basically, those are our comments, and we will continue making a follow-up to our groups and the things that we can do. Another question concerning the price, the spot price. There was an attempt from CREG that last year also on wanting to put a cap on these, on having them 532, then it was left idle. Now we see these around 600, and with El Niño finishing in April, do you think that for the second half of the year, where will you see the spot price for the second half of 2024, taking into account or assuming that it's moving from the Niño finishing on April? We're going to answer this question here with Carlos Solano, who is our regulation leader. It's an interesting comment, Martina. We had high prices and Florencia, sorry. My apologies. Sorry about that. What do you think that we had high prices. Something interesting happens. National government make the choice not to allow to explore more gas. The commodities, especially on the carbon and coal, have gone up. Those are the technologies that are coming to replace hydro, because remember, this country, 70% and 80% of their yearly generation ends up being hydro. It's really high to find that cap. We have two important plans, the closure of Termocandelaria. That was a gas plant that was very highly efficient in northern coast, Ituango. Also, we saw that is the magic of the competence, are where we have the largest offer. When we are offering this, we have to generate an incentive to make more generation, not to reduce or to take to the state players. There's the first comment in terms of rates, and I'm leaving Carlos to explain the initiative that we have. Hi, Florencia. Good morning. As you're saying, or as you said, the regulator presented a proposal of putting a cap to the energy price and making some adjustments to the way that they are dispatching resources. These proposals have not been complete. Talking about the reactions that we have from different trades and from the companies on the potential impact that we can have in this proposal in the rates, increasing them, and also with sustainability of the thermal agents, because it was affecting the profitability. The proposal is in a standby, as we said. The price, and Ricardo Sierra was explaining a bit the causes of this, was in worse levels than there was one. The El Niño hasn't finished. Our dams are still down, are below 50%. Hydrology is still low, and we cannot rule out that when we see the responsibility that all the people have to take care of the resource until the things are completed, we can see some price spikes. At the end, as you were mentioning at the end of the question, we hope that we have finished with the El Niño phenomenon. The hydrology has formalized, and we can have prices similar to the ones that we had in prior years for that period of the year. Great. Thank you. Quite clear. Thank you. Now we're going to answer to another of the questions that we have, the Zoom, but the ones that we have written. Alejandro says, "Are you working in projects of obras por impuestos?" Yes, Alejandro, we are still developing some projects. The program has been quite virtuous for us. We have been able to work in different communities and different projects with some marvelous numbers and some great impacts. We have done more than 28 projects. More than COP 226 million have been invested in these elements in the departments. Something that happens with Santiago Arango is that we have done more than 14 kilometers of roads, and we have improved more than 1,700 educational institutions and 25 development centers. More than 2,186 elements that have been pretty nice. Unfortunately, it hasn't been so good that it increased the withholding of taxes that we had, and that is a problem. So now we have some nice balances in favor, but what is giving us issues. We lost the sound. Sorry about that. We can apply more to obras por impuestos. We are around 600,000 million. If we go 670,000, we have fostered, we have increased our reform to the management of this retention so that the big shareholders can effectively start executing this work. We are doing this work of convincing the Ministry of Environment, different institutions, because we need to do this. We are the second-largest player in this area in the region, besides Ecopetrol, and we are going to be out due to these circumstances. So thank you for asking. It's a great program that has allowed us to connect with the communities too. Thank you so much. I was telling you that we are in phase 2 in Vivo X, and we have a question from our permanent investor. A triple question, three in one. What is the indebtedness level of the company? What percentage is going to be considered in the variable rent? If we are going to have different mechanisms for fixed asset for 2024 to reduce the expenditure, taking advantage of the reduction of the rates that we are going to have this year. It's going to be answered by Esteban Piedrahita. Total debt of the company is COP 4.88 billion. Out of them, in the total, 54% of our debt is going to be variable for IBR, 38% is variable associated to IFC, and only 8% of this is associated to others. This is done because the rates also have readjustments associated to the IPC, and what happens is that we, in the natural, we have a coverage. The way that we are working with this, and that's why we have to consider mostly a debt, indexed debt to IBR and not much on ASADIA. Every month, we try to make recommendations. It's important to mention that half of that debt is in bonds, and we can make more optimizations in the long-term program. But what I think that what we have and what we have shown in our debt is that every day we try to optimize, particularly in these things that we are seeing in our work. Thank you so much, Esteban, and thank you to the investors and all the people that is with us in this moment seeing our conference. Let's go back to Zoom. We have a question from Juan Jose Munoz. He raised his hand. Please prepare your microphone to make your question. Please go ahead. Good morning, Juan and Esteban. Just to mention something about El Niño phenomenon. I wanted to clarify, what is the forecast that you have for El Niño for this year? Or what do you see concerning El Niño phenomenon in Colombia? And how do you see the level of the dams concerning what you already mentioned? Because they are already below 18% in general levels in Colombia. The second thing concerning El Niño phenomenon, I don't know if you can explain a bit, what do you think that you have done differently in this El Niño phenomenon compared with the prior one to have the results that you are having in this moment in the last trimesters? Thank you so much. Great, Juan Jose. I think that we will have to paraphrase a bit your question. How are we facing El Niño phenomenon? What have we done differently compared to 2016, 2017? What are our dam levels and a little bit of the approach of how we're going to behave so that we can listen to the question properly in the different channels that we are using. Juan Jose, we are trying to be very prudent with our presentation because our projections, the volatility of this climate is really accelerated. We are seeing some warming up that are different than others that we had from other times. We're talking about some levels that we didn't have ever. With the team, we have specialized people that are working with the climate. They said that we have to be very highly cautious and not to say that we won unless we have this. Let me give you data. The general system of dams in the country is below 50, is 49% as we speak. But accelerated, it lost a lot of dams last year. It has been 12, 15% that it has lost. And that puts us in certain jeopardies. This ends in April, so everybody has to be very prudent with water and our dams are well. We are doing what we call our medium curve of these, and depending on the dams, we have different levels. The Celsia dams are not essential. We are talking about dams that the largest will last 2-3 months if we start taking them from that top to the minimal technical level. We are tranquil from that point of view. Another thing is the question that we had, a great question you make is what did we do different? We had a configuration of assets that is really important. We did the same with 2015, 2016. We had some delicate issues. First, our thermal plant, sizeable thermal plant with a lot of needs of working in this base to operate efficiently. Besides that, we had regulatory problems from the termination of the scarcity level. What it made is that we had some months operating with a higher cost than the one that we had in the system. That was something that was only the petrol that we used to determine the scarcity price that was not the one that we had in the majority of the elements that we have. It was a regulatory error that was made, that was fixed at the end of El Niño, and it had some problems. We have some technical issues too. In El Niño, as we said, black and white, but sometimes it is not enough. Sometimes it comes with different black swans traveling at the same time, and we go to different areas with our friends from EPM, from Guatapé, and we had several problems. We had some thermals that left the market, given the financial results. That created a huge chaos. We were heavily struck, and the board made a reconfiguration plan of the assets. What is coming next? We sold this part, this thermal asset. It is highly valuable for the country, that has a lot of input that for our asset configuration was not the best one. We replaced this with Tesorito, a plant that has 11 engines that are very important, that are turned on in 3 minutes. We can have 30 megawatts each one. That gives a lot of flexibility. In this El Niño, these elements have allowed us to give support, important support, and to work with the financial resource that we need. Also, we grew a lot in our sun portfolio. We were the first ones that decided to get this technology in Colombia, and now we are leaders. We have 300 megawatts in operation that have helped a lot. We see how this technology works well in El Niño. We are having PCH of all of them, that we have a great fleet of PCH. Also, from a financial standpoint, we have made a climate coverage that allows to ensure that we can have compensation depending on the length of El Niño and how hard it is. It is an innovation that the financial team has developed. Now talking about reconfiguration. Some additional things that I wanted to mention on the sales of the BPA. We are still executing, and we have a balance of COP 6 million, COP 25 million, for example, in this purchase of energy to the assets that we have. That is also additional coverage mechanism that we have had. We have been highly committed with our energy sales process in our political policy to continue with this coverage. The other thing that I was having that is different at that moment is that we are focusing on protecting important things. We are focusing on protecting the net profit, and we want to work with this. Not so much in the project of EBITDA, because many of them are being activated different manner depending on the EBITDA, and we have different participation. We are focusing mostly on protecting the work of the company and the net profits that we had that were our two largest pains in the 2025 to 2026. More than the entering of EBITDA, what pains us the most was registering the profits that we had and having the problems, the cash flow issues that give us issues with the assets that we had. That, obviously, from that moment, we had to work with that to put them on. Juan Jose, to wrap up, with this reconfiguration, remember that the company changed, as we said before at the beginning of the conference. We have two times the distribution customers. We acquired this, and we have these assets of transmission and others. We have the growth of the platforms that you were mentioning. El Niño, you can see Juan Jose, and let's cross our fingers and knock on wood, and let's hope that the country works well. We have to celebrate every time that it works well. Thank you so much. Thank you. For the people that we see that arrived after the beginning, we are having a conference of results of Celsia S.A. on the fourth trimester of 2023, and being the last semester, the information of the last year, the one that we have already mentioned. We have a question from Simontiel Lopez in the Zoom platform, where we are also transmitting. Says, "Thank you so much for the information that you have given us. How much do you generate your weight to recover the money of the fee rate because the increase is for to recover this topic?" Talking about El Niño phenomenon, what are the conditions of the energy for the different programs and the commercialization that we have from Celsia? That's great. I'm going to answer for the last one. The exposure, we have the hiring policy for our customers of distribution. We are very committed. We started buying the energy that we need in 2028 from now. When we have 2023 and 2024, we were one of the companies with the best hiring levels. Our customers in El Valle, basically, and in Tolima, they have had a stability in the component of generation component. We have to talk about the generation component. We are talking that only have 35% of the rate. They have had high stability. Now we have exposure levels of around 10% taken into account, imagining our average between the two markets. You're always going to see a highly conservative policy of keeping the exposure level of our customers in the middle and long-term. Now, concerning the question you were making on the rate option, CREG, last year, at the end of the year, had a firm resolution that allows to add up to the normal calculation of the rate, a fixed rate with which we are recovering this balance. Celsia work with this resolution, with this mechanism. We can say that in the Valle market, we can have the elements that we have from the tax rates in 1.22 years. In the case of Tolima market, we are hoping that this recovery happens in 5 years, give or take. Okay, thank you. A question from Jennifer Sandoval through the app of questions and answers from Zoom. Are you concerned that the information that you have on reliability cannot be made with the guarantees, licenses, and others? The second, especially because it was not presented to these. Thank you so much, Jenny. Thank you. I am going to give you some context about the survey. We presented the information that we have. We have already issued all of them, and we have two projects that we are developing. One is a solar farm that is called Cubal of 200 megawatts. It was not anything like these because the cutting price was lower than the one that we were requesting. We also presented Tesorito II. Tesorito II was presented, unfortunately, the offer that we had. We had all the topics when we do a competitive offer. We needed to cover a lot of risks of the gas supply, and unfortunately, we could not reach a strategy that could generate all the tranquility to present the offer in a responsible manner. We are going to continue working with Tesorito II. We are convinced that the country needs these. We had 244 thermal megawatts, 248 thermal megawatts. We assigned 48. Out of them, we had 18 megs, that is a repowering of a plant that we have in Cartagena, of Proeléctrica, and we assign other 30 megawatts, that are 30 megawatts that basically are bio-base, some forestry issues, and a management of solid waste. I want to tell you about the dimension of the 200 megawatts. Even when we see these, what was assigned, that was 83 of solar energy, so JOYS assigned. All this solar part is the equivalent of a thermal plant of 432 megawatts. That means that Tesorito only is going to be half of what we assigned in energy. We believe, we are confident that there is a missing part. If we see the high scenario of the demand of the CREG, that it can be equivalent to almost 5.3 GWh, which will be plants of 643 megawatts. We believe there is a space that the government considers an auction for technology, because I think it was clear that there is a need of reliability versus what we managed to do with the solar part. Otherwise, we will continue working and Tesorito having Tesorito 1 point with a competitive edge and be able to do it. On the other hand, they want to take advantage that we in solar, we had 400 megs. Our solar strategy is not conditioned to reliability sources. That means that we now have 300 megawatts that are developing. We are going to get to 600 completed by the end of the year. Additionally, we have around other 600, 700 megawatts that are in a stage close to the B2B, and that they rely from the reliability at cost, reliability fee. Can give you from 8%-13% of the cost of a high-scale solar farm. So for you to take into account, if we believe that there were many offers that put an offer to ensure management and a higher capability of the different operation rates, different players and different strategies that we infer that could happen in this, quite interesting too. And we are celebrating that we can create many of these assigned projects. Or as you said, CELSIA has almost 1,000 megawatts that is developing or is building besides the reliability elements. So the solar revolution is still on fire, and we hope that we continue consolidating this technology that you know that CELSIA has been great fans, have been evangelizers, and we believe in that one. I don't know if Esteban or Carlos has a comment on that. Anawasca from David Corridoris. Can you share more detail about other operational income items, understanding that we are registering transaction from certain platforms? What type of transactions are we doing, and how are we registering them? That doesn't go with the platforms in that rubric for the sake of the competitors. We also talk about the main elements that we are handling. In the part of the transaction, of the comprehensive transaction, it was moving to the state that we were requesting. One of them is other operational income, where we are recovering an important part of the acknowledgment of long-term work that we had from the agreement that we have that is disappearing. So we have COP 400 net expenses, and that is part of the composition of the movements. That goes in GAAP. Thank you, Esteban. Alejandro to make the question. The obras por impuestos, there is a comment that is very interesting. I mentioned this because it's important to highlight the topic. I was in other areas, and the obras por impuestos, it was spectacular. Thank you so much. Thank you for the social impact that we have in this work in areas as affected as the ones that we have. Florencia raised the hand. Florencia Mayorga. Florencia, the floor is yours. Follow-up concerning the rate fees and the coverage options. Maybe you can remind me the exact amount, how much will it be that you will be recovering 1 year and a half or 2, and now concerning the climate coverage, I don't know if you can give us more detail about the triggers and others. Thank you so much. Florencia, let me answer. First thing is that as the total market, the 3 markets, Tolima, Valle, Antioquia market, we have around COP 466 million to recover. Out of these COP 466 million, we had already made some agreements with the multilateral banking to have an important part of the treasury. So we are recovering money to provide service to the multilateral banking that is accompanying us in this process. So, with the 3 market, we have COP 462 million. Against the coverage, I can tell you here that we probably have something of certain elements, that we structure these parameters with 2 purposes, with 2 triggers. One, the most evident is the occurrence of El Niño phenomenon, because our interest was working with these in 2 specific moments. So one of the triggers is specifically the input that is given by the system, and the second, basically, it's a construction that we did with the base price to be in a proper place. Those are the 2 parameters that we included inside our instruments. Next, we have a question from Andrés. You can give your opinion about the expectations that we have 2024, 2025, and second, comment on the future of alternative energies in the regulation. We have a plan, an investment plan, that is very interesting in the plan in our solar action. We are developing 300 megawatts, and we are trying to put ready-to-build with our business of 600 to 700 additional megawatts, so that 2026, 2027, we can have 100.3 megawatts. Many of them don't have a financial decision in the end, and that is the work that has been developed by the work team and solar photovoltaic by the office. Talking about transmission and distribution, we were mentioning in the conference that we had, the substation. We are evaluating having some other callings in the year, and we are thinking about finishing the construction of Toluviejo and having all their engineering plan and the construction for the second line of Buenaventura. So we are doing these and level 3 and 4 from Tolima that are still in development process. That on one hand, the progress with these two platforms, that is the strong area. We were telling you, we had this offer that was located with the things that we already mentioned, the reasons, and we are going to continue working strongly on improving and offering perhaps to the government and to the CREG a competitive offer that is interesting that the country needs. In the Peru business, we want to tell you that we continue moving forward with the final permits to continue constructing the wind park of Caravelí. We have done well, and we are very positive on what we are going to achieve in the last 3 months, the last permits, and with these, we can continue with the construction in the country. We are still moving forward on setting up other type of complementary assets and setting up a platform-type model for the development of our development strategy and investment in Peru, that every time has us more content and more thrilled with the capabilities that we find. In the energy business, I want to make several comments. The first one, we have to talk with the regulatory topic. The regulatory topic, it's a situation that has to be managed in the best way possible, and we have to take the arguments that allow this country to continue competing, to allow us continue developing businesses, to have confidence, because in the end, this is what is interesting for all our customers and consumers in general, for their competitiveness in something so important, like the energy supply. We're going to continue facing this, and we have a high challenge in quality. Last year, we had something really strong given the rain of the first semester, and we had some quality problems that we haven't been able to cater. Security has also been a tad complicated for us, or not tad, but plenty. There are areas where we're having issues on certain times. We will have to continue working with the authorities to avoid customers seeing problems with their supply. In these topics, we are going to be optimistic and working with all our efforts. We have some innovation fronts that are business to companies that are working in the business, in the internet business, that comes well. Internet is already overcoming 75,000 customers. We are reaching a positive point of sale if we see a standalone company. We are still a tad behind, but we are still working on this, and we are developing the investment plan. We are highly thrilled and highly emotional with the company. We have the MRT, who is our digital commercial trader that you know, that is giving the hard rock options, that is around 7,000 customers. He is meeting their development milestones, service quality milestones. He is developing some new platforms for complementary services, and we are very thrilled with the acceptance that we have had from customers, and especially from the constructors that are having great value for the work. That is where we are going. That is a picture of what we have so far. Thank you so much, Ricardo. Question from Andrés Botero. I see the work of platforms, even though you talk about 2 years. Can you share more detail about the potential and the power of this area, and when is it going to be consolidated in the financial statements for CELSIA? These platforms started in 2019, strongly. That means that we have 4 or 5 years of coverage in each one of them. The decision that we made is this, that they are separated in vehicles from Celsia Colombia, and they are handled in this fashion so that we can have management strategies, development strategies that accommodate the type of asset that we are looking for. I am not going to tell you that you are going to see them integrated within the balance of Celsia Colombia. That is why our work, it is important. We have to do a high pedagogy work with investors so that you can know how we can see these investments and what is the future impact that we are going to have for you as shareholders. But in general terms, they are going to be separated. Esteban, just to remind some numbers that we are managing in the asset management, talking about assets and EBITDA. It is almost COP 3.7 billion in assets, what we have integrated in each one of these operations. In general terms, we are almost COP 548 million on EBITDA, what we had in the sum of each one of these platforms that we had in the volume that we had. See, Andrés, that we are reaching the point where EBITDA management company is COP 4.3 million. We are talking that this is shaping up to 35% of the EBITDA of the company. This was in a period of 4 years, and the growth is coming in that way. When we see the CapEx is almost twofold, the CapEx that we have in the platform versus the energy business. You are going to continue seeing the growth of the EBITDA that goes in that fashion. I guess that creates a lot of enthusiasm for us, too. Well, let me tell you, there are more questions. I see that we have a lot of participation, the people from Zoom. Julián, thank you for this moment. Congratulations for the results in such a challenging environment. In the balance, there is an important definition on things that we have in sale, going from COP 2.9 billion to COP 0.66 billion. This is also reflected in a reduction of COP 1.2 billion in the equity. Why do we have a devalorization of the assets and the equity in the balance? Thank you. When we finished 2022, we had already made a choice on disinvesting the assets that we had in Celsia Centroamérica. With the elements that we have in debate, that means that for the end of 2022, with the information that we were mentioning, we're talking about non-current assets and others to reflect the assets and the liabilities that we were going to invest. There was a movement that was given in 2023. That is the effect on the balance that the operation ended, and these assets are no longer part of the financial state. Esteban, the effect that we had in reduction, it was almost $200 million in debt that we didn't consolidate, that the buyer had, and we had around $160 million in the cash, an agreement for $50 million to pay, $140, $150 in cash. How much of these do we have outside, and how much are we going to use, clearly, for the payment of the dividends that we told you yesterday and today? Clearly, after receiving this information from Treasury, we have to check how do we work with the company for these assets. Let's continue. Lina Quiroga, good day. How is going the construction of the wind parks in La Guajira? Have you considered selling these projects due to the difficulty that you have had? Lina, we continue with the process of licensing, and we haven't finished it yet. We are evaluating all the possibilities for the management of this project. Most surely we're going to sell these, or we're going to try to sell these. I guess that some investors are interested into these. Let's hope that we can develop these. Please remember that in the development of these projects, you have to hire the equipment almost 3 years in advance because the production slots are very complex in different producers. We had the device already produced and ready for dispatch. That's why we have to move forward to Peru. Part of the things that we're going to do with the Caravelí project is that we're going to have a sizable amount of these things to install. We're going to see a quick entrance to Peru on the equipment. We are also thinking about the development to see if we are capable of starting to develop wind outside Guajira. It's harder, the work, but we are studying technology in different places to see if these can work for us. Thank you, Ricardo. In case the space of the people is asking us for the prospector from Bucaramanga, where can we see the investment that has been done there? We don't have a specific place where we are publishing our investment plan. It's not available yet. What we can tell you is that investment for this year mainly are focused on the large block. The first one is the construction, as Ricardo Sierra said, explanation of solar of 300 megawatts that we have in this moment in construction. That is the large farms, where we highlight 133 megawatts in Tolima. We highlight 60 megawatts in Valledupar, and some other large farms around the country. There is a sizable amount of the CapEx that we have for this year, and that is around COP 300 million, what we can see in the solar farms. Please, maybe you can tell us a bit about the cash flow that we have in this sense, so that you don't misunderstood that CapEx. I'm going to review that. That is done by the investment vehicle, that we basically have 50%, and is not going to show a meaningful cash flow for this year. We thank the development efforts and all the work that we have done with our commitment to continue with our business and the structure that we have been developing in that vehicle. I have already made the work to check these elements on 2024. The other thing is the development of the infrastructure that we have, particularly of the large project that we have, is this compliance element. Caoba started the process of sourcing of this investment toward this company, COP 296,000 million, plus some additional elements in the assets and the transmission assets in Sahagún, and some additional works in some direct connection elements that we have. Tesorito, we don't have anything yet, specifically talking. Talking about the energy services, we are considering investing less than COP 600 million, especially on maintenance activities and on the activities that we usually know in the business as service provision. That is only building these lines of low voltage for the new neighborhoods, for the new organizations in the different districts. Basically, those are better investments for the people. Thank you, Esteban. There is an assistant that says, "What kind of progress have you had from the solar progress in Peru?" The solar project. I guess that we're talking about the wind project. In Peru, we have the development team. We are mapping opportunities of solar parks that have moved forward, and also Esteban has worked the possibility that some of the parks that we have, wind parks that are Caravelí, and the possibility of the purchase of another park, that they can be hybrids. That means that we can have a solar possibility to complete these. So we are doing full in Peru. We have an important strategy to have a comprehensive element that gives value to the investors. This is linked with another question that we had on the topic. How do you see the project that has been done, and have you considered the battery plan? In Peru, we have been doing an interesting analysis, as I told Ricardo Sierra. I'll need to come with a project that we close these, where we'd work with the different institutions, and a wide and comprehensive strategy to work with this Peruvian area. Something more retained in the exercise, there are many places where we have connection capability. This year, the office in charge of investments in the government of Peru is launching several visits for the transmission elements, and working with services at the end of this decade to have new expansions in the solar area. We have also analyzed batteries in Peru and different from what we have. We have the capability of having some other resources, particularly, for example, with customers, that is helping us with the power data. It is also part of the different alternatives that we are seeing, that we are exploring. In Peru, something interesting to what is solar technology, is that solar technology in Peru is starting to coincide with an increase in the consumption at that moment. Peru was similar to Colombia, that the consumption peak was in the morning and the afternoon. It has been increasing the consumption at midday, and of course, that matches their solar work. We see an interesting opportunity to this type of generation. Okay, so in this moment, we are finished with our Q&A session. I do not see any other questions. I do not know, Ricardo Sierra, if you Oh, there is one question in the system. In other parts of the world, we have seen that the solar farms have introduced smaller goats and cattle. Have you thought about that? No. Lesser cattle, we are thinking mostly about the systems. But we have an advanced pilot, very interesting, of agrivoltaic farms, is something that we have been doing in Tolima, where we are linking with smaller organizations of agricultural producers, and we are working with different vegetables so that this creates a symbiosis, and we can work. The most important part, we have rice and other crops. We are given the option so that we can have the crops in the area, and we have a proper work. So there is an advanced pilot that is being done, and we hope that we can replicate this year later on. Yeah, the multiple take, it is interesting. There has to be a lot of coordination. Not all type of crops, not everything can be done in this way. But we have been working on experimentation on these, but I guess that we can complete these. In Israel, they are doing this successfully. These are high structures, and they work like greenhouses. But I understand the reference. Maybe where we are missing is storage with the prior question. Were you able to mention that, Esteban? Okay, no more participation. There is some comments to your work on Twitter. And Mónica Hungría says, "Great question. Thank you so much for the patience and the information." No, that is why we are here for. I do not know if you have any other final remark. No, just to tell you again that we are quite happy with the requisition program. With a small amount, we have been able to recover prices. We were saying that almost 20% of the increase of the action from the moment that we started, a yield with a closure price of 20%. If these numbers work out, we would talk about profitabilities of 30%. That would be great. We would be missing that. But it is a great step for our shareholders. People are heavily committed to continue this requisition program and to do everything needed so that the price exercise is the proper one. We can do a joint work, a joint effort to continue with the assembly to join us on March 20, because we are going to do a judicial deployment of the two worlds that are coexisting in CELSIA. We are going to invite you to an investment day, and we hope that the invitation is going to be done in a week, on the first fortnight of April, so that you can join us, and we can provide all the detail of these two worlds that we have in CELSIA, so that you can understand and appraise well. Thank you so much. Thanks to all the CELSIA group because we are reporting a year's work of 300 people that were really glad that we are selling kilowatts all day. Thank you, and thanks to all the people that have participated with us. We wait for you on March at 9:00 A.M. in the shareholders assembly. We have the calling to some of the projects of the country and the ones that we have in the social networks, because this information is going to be informed every single day with the results, how it fares in our social networks, and LinkedIn and others. Thank you so much, and I hope you have a great day. See you on March 20.