Earnings Call: Q3 2023

Nov 9, 2023

Good morning, ladies and gentlemen. We are about to begin our conference of stakeholders for the results of the first quarter of 2023. Today, we have Ricardo Sierra from CELSIA, the competitive financial leader of the company, Santiago Arango, the leader of corporate issues, and Carlos Serrano, the leader of regulatory issues. Right now, all participants are listening. As it is usual, we have reserved a space for your questions at the end of the conference. The questions are enabled for those connected with the link for the Zoom application. There is interpretation, English and Spanish. If you are using a computer, select the language, selecting the interpretation icon on the lower right-hand side part of the screen. If you're using a phone, touch the screen to visualize the options, the menu, and the plus button on the right and select the language. In both cases, if you do not want to listen to the presenter, silence original audio. Thank you for joining this conference. Now I give the floor to Ricardo Sierra, the leader of CELSIA. Thank you, Gonzalo. Good morning to those who are here. Welcome to this conference of results. These are the advances of the transaction at the end of the last quarter on the sale of certain assets in Central America. Last month, we received the purchase order from EnfraGen. This report will be done in November. If everything goes out all right, it will happen in the next two weeks. The company will receive $194 million cash, and we're going to see a reduction in debt close to $198 million. It's important to mention, when we see the results of the accumulated of the year without considering the assets in Central America that we are going to invest, we are going to have income of COP 4.5 billion with a regrowth COP 1.128 trillion, COP 68 million in expenses, and the total debt will be COP 4.5 trillion. The leveraging will be 2.72. This is preliminary information. We are going to talk with investment experts to give you consolidated data on Central America to understand the dynamic of the actives that we have in CELSIA. The important thing in this transaction is, as you all know, we are waiting to begin acting with the mandate that we were given in the board in the terms of stocks. We are waiting for the consolidation of this operation in order to have resources with financial flexibility to begin the operations of stocks purchases. We will announce this when we receive the money at the end of the week, and we will begin that process, and the board is paying close attention to launching it. By the way, in regard to the other topics, we will continue with growth in other regions. I will tell you a little bit about Peru. We are already working in the closing of the wind power in the south of Peru in the municipality of Lomas de Caravelí. This wind power park is very interesting. It's in the pre-building process. It's going to have an installed capacity of 290 megawatts. The investment will be. It is forecast the building and the operation will be in the second semester of 2025. We have a huge advantage to swifter this project for the alongside the projects that we have for Guajira, Northern Europe. As you know, these projects have been delayed, and we have been able to overcome this bottleneck issue that we had with the contractors. On the other hand, in Guajira, we will maintain our focus finalizing the consultation process in order to have the projects ready for construction. Logically, the final investment decision will be subjected to many conditions in Guajira and throughout the country before implementation. The Peruvian project is adjusted to the strategy that we have in CELSIA. It is focused on renewable energies to allow for the application of resources alongside what we are doing in Central America, and we will maintain a diversification process in countries. That will help us. That would give us important advantages. Today, Peru has very favorable conditions for investment. Natural resources are very attractive. We are going to have remuneration for a project portfolio that we hope is very promising in all senses. Let's talk a little bit about the larger scale solar. We are now in 300 megawatts operation, 17 farms already built in Colombia. This is energy that is directed to entrepreneurial clients for the CELSIA portfolio. We insured one in Palmira of 19.9 megawatts, which supplies different industries in the region. Additionally, two more farms where we installed almost 97,000 photovoltaic modules. These are called La Victoria 1 and La Victoria 2. These are in the northern part of Valle del Cauca. This energy is going to be in the portfolio of energy of CELSIA. In these 16 farms that are in operation, they can deliver clean energy, and they help the matrix and the resilience of the energetic matrix in Colombia. We have gone beyond 3,500 jobs creation. Women are participating. About 22% of women are trained women that help us do this work. With all this, we have been able to avoid the emission of some 360,000 tons of CO2 a year. This all looks very good everywhere. In terms of development, we have under construction 260 megawatts in the development with a high probability, and we can reach a ready-to-build. We are reaching 600 megawatts, and there is another portfolio underway that is more complex. We are all out in the solar energy issue with projects below 18 megawatts. The company has already installed 18. Our goal is 160 megawatts in the next five years. We currently have 53 projects underway that those are going to add 40 megawatts in what we call small deployments. By using two generators of the contract that we had for Guajira, we are going to build a small wind power farm. The project is called Carreto. It is going to be 9.9 megawatts, and it will be in full operation at the end of 2024. This is going to be our pilot project of wind power in Colombia. This is very interesting. This is going to be in an area out of Guajira between Barranquilla and Cartagena. This is an area that we have been looking at for a long time, but for different reasons, we hadn't been able to put this project in place. This is going to allow us to experiment with the different issues that construction implies in terms of onshore and out of Guajira, the whole plant building. Let's talk about the thermal. El Tesorito thermal plant is also supplying the electricity to the country. We are generating 200 megawatts. We have the capacity of generating 1,400 megawatts in the country. This central gas power plant is at a 98% capacity when the international thermal capacity. The energy factory that we set up in Cota is working very well. Look at the numbers this first year. We have generated, we have transferred COP 2.5 billion to this municipality of San Jorge, and we have deployed a lot of resources in different initiatives in that area. We are giving trust to Colombia in that sense. We have a plan that is going to have a social and environmental impact, very important. We are creating lots of jobs in that area of the country. One more interesting deal that is growing is the Celsia Internet business. We are already in positive numbers here after four years of starting the experiment at the end of 2019. We will complete four years at the end of this year, and we are in the positive area already two years earlier than we had anticipated. We are coming into new regions of the country. We are in the Buenaventura area. We hope to have, by December, 5,000 businesses and homes connected. We have over 65,000 clients in this service. We are reaching Cartago. This is an area that we do not serve with electrical power, but they are close to where we have our distribution network. We are happy about that. Additionally, another positive effect is not only providing high-quality service with very good ratings, but we also are impacting socially. More than 300 schools are connected. Free of use, free of cost, with a package of 800 megawatts with synchronous speed that allows children to study and have access to entertainment, and over 150,000 children benefited in Tolima. We hope this business grows, and if we have the acceptance of our clients, we hope to be able to continue delivering this service free of charge to the children that want to continue their education in our country. The EBITDA of the accumulated cost in the country accumulated in. This has been heavily affected by the financial expenses. We will give you details on how these indexes have grown. From the operational point of view, we are doing very well. Let us remember that the company, it is a platform manager, highly important one, with a lot of the management of the energy assets that we have in the company, analyzing the different plants in Tercero. The margin will be 35.2%. This is a great margin. Operationally, we are working well. EBITDA, including the results of the investment plans, reaches COP 1.7 trillion. We are talking about a 15% growth compared to the same period in 2022. We are going to go into some details of financial issues, and we will depend on what we have on that area. Thank you so much. Okay, Ricardo Sierra, yes. Good morning, everyone. As always, remember that the detail analysis on the results and the financial information, you can always consult it in the platform of investments. In the third quarter, the consolidated income were COP 1,481,000 million. Central America increased with 7%. The primary area, the income of this quarter, we see the effects of El Niño, and very important, I want to make emphasis on this subject, the different instruments, the coverage instruments that were designed in the consolidated area, specifically on the ASC, in such phenomena as El Niño. In Colombia, the results were driven by an increase in the generation investment of 60% due to sales to create higher generation in the system. We are also increasing different network connection with higher EPC annually, higher operative in the commercial area. In Central America, the dollar income went down 10% compared to the same period in the previous year, as well as energy generation. With the El Niño phenomenon, the third quarter created more costs. in July, these B2B businesses and the solar energy projects experienced a growth of 44.4% compared to the same period in the last year. It is important to mention that in the reduction of that 10%, it is included the determination of the contract that we had last year. This year, the income reaches COP 4.5 trillion, and that means a growth of 19%. The cost of this quarter reached COP 1 trillion, 43%. This is explained by the highest purchases of gas in the main thermal plants, greater purchases of energy. In this year, the cost of sales go up COP 3.5 billion. Administrative expenses were COP 76 billion. This is a reduction of 11% due to different reparations that we are doing during this country in order to be prepared with our assets to face the demands of the El Niño phenomenon to be available with all our fleet. Discuss COP 255 billion. In this quarter, the sales were there was a reduction on 42%. EBITDA margin was 27.9%, and as Ricardo said, if we take out the representations in commercial areas, that would be 35.2%. EBITDA in the year is 54%. The net financial expenses were COP 217 billion. This is a 60% growth explained by the increase compared to what happened last year. Additionally, financial expenses also explain the revolving credit on ISCC and the commission for guarantees from the electric market, both from national and international banking. Very important, Ricardo mentioned. This increase of 60% in indexes. We have increased about 900 basis points. Basically, this is driven by the growth in IPC and restrictive monetary policy from the central bank. We will see a reduction in those indexes explaining the financial expenses as it was announced yesterday. We believe that at least from the indexes' point of view, we should have touched already the highest point. This year, the net expenses reached COP 689 billion. This is an increase compared to the same period last year. In this quarter, they went down 45%. This is a decrease of 30% compared to the same period last year. Net income were 27% compared to the same trimester last year's. The accumulated cut for September, the consolidated expense were 282%, and the net income is about COP 177 billion. In debt, we closed the quarter. This is an indicator of leveraging of 2.95 times net EBITDA debt. The medium life of the company is 5.11 years. In the platforms of energy, we had income that are COP 88.1 billion, increasing 33%. EBITDA reaches COP 86 billion accumulated up to September. That means an increase of 465% compared to the period last year. We also have in this platform projects in course that are some 45 megawatts. The thermal electric plant at Azuquita has registered important performance. It registered income by COP 368 million. EBITDA is Caoba has incorporated 17 new projects to their portfolio, and those are equivalent to an investment of COP 265 billion, and their assets are COP 1.1 trillion. To September, income were 180%, growth is 28%, and EBITDA was COP 170 billion. That is a growth of 17%. I close my analysis of financial figures, and you can continue with the rest. As you see, their financial results and operational results are positive in spite of we're experiencing now the third month of the El Niño phenomenon, and our strategy to continue advancing in energetic efficiency. We need to continue building resilience. We will talk more about this El Niño and all the financial shutdown that has been discussed in mediums. Juan Carlos Solano is here. Ricardo, thank you very much. As you said, the country is going through the beginning of El Niño, which is always a huge challenge for our sector. This time, the analysis that we know in regards to energy shows that the country has enough reservoirs in its dams in order to serve the energy consumption of all Colombians seamlessly without rationings. Although we should not be overconfident. The previous many phenomenons tell us that we need to be always aware. There is always a risk of lack availability, unforeseen shutdowns in the system. However, as you mentioned this time, the great concern is the lack of liquidity of some of the commercializing enterprises of the country. This had to do with the tariffs, that is a mechanism that the system has in order to reduce over time the prices of energy when they happen suddenly, and this was implemented at the beginning of the pandemic. After that served to combat the effects of inflation that was felt worldwide in 2021 and 2022. As a result, there are receivables of COP 85 billion in the whole electrical sector. Adding to El Niño, there is the pressure of the commercializers in what we call energy box, and that price should go up in order to have water in the dams to put into working the thermal plants. When we see that there is pressure, some commercializers in their energy purchase, we have a significant part of the said purchases in this last segment in the energy box, and that creates additional expenses. All the enterprises in the sector, CELSIA included. We have proposed the government, the first one should be credit for Findeter in order to offer liquidity to the companies. This is already underway, and we are expecting the outlays in the next week. This might not be enough. Therefore, we continue proposing different complementary measures to the government. CELSIA has been able to manage this financial help, financial crisis because it has a good position in the Stock Exchange of Colombia. We are talking about COP 480 billion. We are already recovering this. This is the basic information that is going on with the El Niño phenomenon, and I give the floor back to you in order to continue with the call. Many of those who are listening to us may have questions about what has been going on in terms of regulation, and as we have the sync, this is completely unusual. This is highly concerning for the working of the sector, and we hope the government can solve these issues. Let's talk now about other issues. CELSIA Cubico, among the activities of philanthropy, we are not only installing solar plants, but we have also started a scholarship program that we have worked with the Universidad del Tolima. We have helping about 100 youngsters in social levels 1 and 2 in Tolima, where we are offering different sorts of scholarships. We are also linking international investments to work with philanthropy initiatives in Colombia. This quarter, as a landmark, we were able to close all the furniture for schools and blockers and so on, for 6 educational schools with 36 branches in Pradera, Valle del Cauca. We are then giving benefits to 7,400 students. All these branches and these schools are brand new. Additionally, we are having issues trying to find trained talent in this sector. Alongside the SENA, the national training institution, we have designed training for everything that is the electrical sector. We have invested COP 3 billion in this center. This is an art education between private company, private sector, and the state. We hope to be able to train people in vocational activities. This is something that the sector needs. We need to create and train different talent and labor for all this sector. Additionally, environmental issues, the program ReverdeC, which is an icon for us. We are reaching almost 14,000 trees planted in Atlántico, Risaralda, Cota. We have already planted 40,000 trees in a very important basin for the Risaralda department. This is where we finish this news and the result reports of the third quarter, Gonzalo, and now we can open the floor for questions for those who are listening. Thank you, Ricardo, Esteban. We are now about to receive the questions from participants. We have different methods to do that. You can raise your hand in the Zoom application. We have some questions here. Let's begin. We have a question from Jose Hurtado. He tells us: "Can you give us information on the state of the repurchase of stocks in the Stock Exchange of Colombia?" The process was stuck while we were able to close the Central American process. Unfortunately, the Central America process took us all the time to the deadline that we had in order to close the process. That piece of news, that we didn't have a financing notification, that arrived on October 30th. Now, with that, we are ready to close the operation. Santiago and Esteban, who are here in the conference, attending the conference, because we are now closing the signature of these transactions and to receive the money. The board, who is closely aware of this process, will identify the mechanisms that we will put in place for acquisitions. We are looking closely at independent mechanisms. And our cousins of Cementos Argos project is very attractive. We are trying to put in place all the mechanisms in order to speed it up and to guarantee this. We know that many were expecting us to act more quickly. We were waiting for the ideal financial flexibility moment to do this. We are expecting good news soon, but this is a commitment and this is a mandate that we have from our stockholders. Beginning with something that you said. "Can we give more information?" Well, you already gave some information. "What about the sale of assets in Central America?" The process is moving forward exceptionally good. We are expecting to have news at the end of the next week or the week after or before November 20th. Should everything goes right, we expect to have the operation fully closed with the buyer. Another thing is reducing our debts in almost $200 million. This relieves us from COP 70 billion expenses a year. Additionally, we get additional income in order to face the El Niño phenomenon issues, in order to do the contributions to equity. A very positive effect that you are all going to see is that the calculations of return on investment, what we had in the Central American assets when we sold them, well, it was also a strategic decision in terms of capital. That capital was not producing any yield at the level that we are developing, either in Colombia or Peru. Therefore, return on invested capital moves better with this transaction. This is another important piece of information. The next question from Juan Borgelin. "The profitability of assets over equity?" I will ask Esteban to help us with that detail of the numbers. I am going to close the topic. That is the returns we are demanding. The projects are today incorporating these issues of interest rates. The projects have been purified, and others are giving us return depending on what we have in different projects. Esteban will give us different details. Yes. It is return. Right here, what we have, the measure that we use for profitability is not return on assets or equity. What we do is the metrics of ROCE, which is return on employed capital. Return on employed capital is what gives us our costs from all sources. That is why we have this mechanism, because this one measures the combination of value creation versus the total cost of the sources, included the equity, when we leave aside these investments. To the closing of the third trimester, total cost of our sources, we continue having a positive margin of about 120 basis points compared to the total of our sources. Obviously, what we have seen in the last 12 months is that our profitability of our assets continues the regular line of performance. But in the reduction of indexers, we are going to continue expanding this distance, which as an organization, we have been building with every one of our decisions, which is a very important focus of the follow-up work that we do. Very well. Thank you so much, Esteban. We have a question from Ana Wood. "I would like to understand more deeply how the tariff option is making an impact on the cash flow, income, and receivables by the company." Okay, I volunteer to answer that question. Ana, the tariff option or the billing option is a mechanism for charging, for recovery. Following the causation processes, we register in our state of results all income that we are entitled to retrieve. From 2019, in fact, 2019, 2020, 2021, 2022, and the first months of 2023, within our income bills, we saw a particular account that was talking specifically about the billing index. It does not have an impact on our income. By May or June this year, we were going through a moment that is called accumulation, which is what we charge to the clients, was below what we were entitled to receive. From that moment to the present, we are in the recovery moment. This is to say, what we are charging now, this is reducing the balance. We are at a point where we have an income in our indexes. We continue with the causation principle, and today, the cash flow today is a positive issue. With the issue problems, there is some volatility. But we are going strong in the recovery efforts. This is a question by Frank Audios: "In the next 5 to 10 years, what is the expectation in terms of income? Now, coming to Peru, it's important not to depend so much on Colombian incomes." That is a good question. We are now moving into Peru with great expectations. We don't think this is a transaction just to bring some equipment and some relations with our contractors in order to begin a project in some country. This was studied soundly, and it was decided that Peru was offering great guarantees. In fact, the Department of Investment Promotion, that is, ProInversión in Peru, you can't imagine the way you are received down there. They give you fiscal stability, tax ability, labor stability, municipality stability. This is amazing in terms of evolution for investment. This is something that is set up in order to attract foreign investment in order to develop the country. We are arriving there with a wind power project, and we are identifying with our development team, trying to identify a more advanced portfolio and more comprehensive in terms of wind power and eventually hydraulic power for a matrix that is full with other technologies similar to the work that we have done in Colombia. We are studying other business lines that we have in CELSIA, especially energetic efficiency. This company is creating income of COP 300 billion a year, and this poses or offers a very interesting B2B relationship. We think we should have a scheme in order to move forward and to have a more comprehensive position in that country. To give you an idea, we want Peru to be one more very well-integrated region. Right now in South America, the picture is well-visualized in terms of Colombia, Peru. The thinking when we think about Central America, we are going to have a commando team in Panama. Yesterday, they told us that we want a B2B solar farm additional to the business that we have in Panama. In Honduras today, we have a business that is going to surpass 100 megawatts. In B2B, it's amazing what you have in this offshoring with the U.S. The modernization of those plants and factories, production facilities are amazingly. We have been there for 2 years, and we are indisputable leaders in the B2B solar energy business. We hope to continue doing that. We are in Panama, Honduras, and we are studying other places where we can bring other projects to develop in terms of renewable issues. I wasn't able to respond to your question with just a few words because we do not have complete clarity of what our income is going to be. But we cannot depend on Colombia totally. That is true. In Colombia, we can only depend on regulated businesses in Colombia. That's why we have energetic efficiency businesses, internet, and platforms with regulatory structures that are different. The B2B solar business is very interesting because in the long term, this is having a non-regulated business. Thanks for your comment. The board is clear about that. It's clear to us diversification Colombia is something that is still there as an important item in our agenda. Thank you. Next question is from Juan. Sorry, the interpreter cannot hear the question. Could you remind us what the percentage of the budget is in terms of income and expenses? Consolidated these two figures. I would take one, then we're going to go on the comment about the budgetary proposal. Someone can help us respond to that question or those questions, rather. Juan, with the exercise of the minimum presumptive tax, our company is a great taxpayer. We don't see completely adverse results, at least in the energy business. I believe that it was affected. The effects are not felt by us, but our clients, they saw them in their bills, in their energy bills. On the one hand, they wanted to lower the cost of energy. On the other hand, they just made it more expensive. Facing the guideline that we saw at the beginning, the EBITDA number, closing our third quarter, we are doing very well facing that guideline. We were hoping not to have a lot of affectation in that term. Could you give more clarity on the cost of sales in September? Because it's been moving a lot faster than income creation. I would like to have more clarity about the short-term debtors. What is the expectation of recovery of this debt? Person doesn't have a name, but we will try to answer your question. From the standpoint of what do we have here, costs, as we said in the conference, costs are affected by larger purchases of energy. A very important thing, a greater purchase of fuel and result transference to the platform. That behavior can increase in the fourth quarter in the sense that thermal plants will need to generate a lot more energy to supply the system in order to overcome what's happening at El Niño. They're going to be affected by fuel consumption, the same as electric energy purchase in order to be able to back the contracts of energy sales that we might have, where at one point, hydraulic generation will not be enough to satisfy everyone. That is liable to happen at some point during this time of El Niño phenomenon. Fuels are very important because of the level of activity. Third, result transference is a cost for us in thermal electrical. Tesorito is an entity that does not consolidate our results, and that becomes an additional cost. Additional expense is the other part of the question. Gonzalo, I didn't answer. Esteban, can you If we could do an exercise for those people who are listening to us in terms of resiliency and this opportunity of value creation facing now El Niño phenomenon. During the valuation that we have done over the last four years, remember that we sold the Zona Franca. We're very flexible because of the sizes of the plants that we have there, of the turbines, to be more specific. We changed that for another asset that was completely efficient and flexible, with 11 engines of 19 megawatts each that we can turn on in minutes to supply the grid. But the income is going up. In order to protect the dams, that allows us to, in those thermal platforms, we see a very positive scenario of income that makes up for the losses connected to the lack of water. The results that we see are very good results. We have designed this configuration in order to have a positive outcome before the El Niño thing. The thermal cost topic is not accompanied by a good margin. Not in the thermal business. Something similar. We have similar questions here. I am going to close the question here. What we have from debtors fundamentally has to do with the regular amounts that we have for the higher value of generation in September. We had generation. The curse is normal. Regarding what you mentioned, one of the questions, it is important to understand the reorganization was reconfigured in 2015 and 2016. The reconfiguration was made on different axes. The first one was reconfigure our thermal portfolio to make it more flexible and suitable for the needs of the organization. The result was the disinvestment of Zona Franca Celsia and the disinvestment in Tesorito. That will allow for adequate balance in our contract exposure to be able to face El Niño. The fundamental investor, along with other investors, was CELSIA Colombia or our energy generation company in Colombia. That company is going to have to do that exercise, but product of the accounting issues, Tesorito is going to be in the method of participation, where you are going to see that with the results of the quarter. The balance have been very positive in the face of the company's exposure and its needs. We have built several options, which are now properties of CELSIA SA. We are now in the calling for investments. The main stockholder of CELSIA Colombia, the results of the electrical plant that are 100% CELSIA SA property because they are the owner of that plant we have implemented as product of the divestment of Zona Franca Celsia. A purchase of energy with very favorable conditions for us, even with the Termoflores plant. There were comments about this in the first part where we were showing the results. We began to receive in September. We hope to be able to do this the whole El Niño period. The results of that contract. Well, now we have a climate derivative, and they should be delivering results as a product. It should be giving results at the end of the last trimester of this year. We have built a series of elements and options, financial, some of them, and others on the real point of view, in order for the result of the organizations will be resilient, and especially so that the net income will provide better results as what we are seeing with El Niño, the season of El Niño. Our portfolio was configured. The effects in our cash flow, and the exposure to the system and the market, and the results of the controller as CELSIA outward design to avoid that situation for 2015 and 2016 in order to have better results in that topic of income. Hold on just a second because I want to complement that question. We have that question on control in BBC about debt. We have not made enough emphasis on the amount of indebt. The sale of Central America responds clearly to that concern. This is to say we had resources investment there. Look at the data. This transaction allows for lowering COP 1 trillion. Go down. We lower our debt in 20%, and we generate cash of about $200 million, and we generate cash flow for different purposes. The repurchase of stocks is positive, even in the debt diminishment issue that is very beneficial, as you well know, for our stockholders. We go from that topic around COP 5.8 million, the total debt of the company. Additionally, when we see the net debt, we are taking out 201 basis points, going from 10 times to 7 points. We are expecting the indexers to help us in the future, but this is an important reduction of our indebtedness levels. When you see this is flat. In spite of the investment levels that we have been deploying, we are creating an operational cash flow in order to develop the investment flow that we have been developing. I was complementing that. In any case, the consolidated number, as you well explained, the operational entity, which is CELSIA Colombia, which is also important, neither go up nor down because we have a company that has. Leaving that trillion in Central America was linked to our performance. Doing it in CELSIA Colombia could create other results and improve our proposal significantly. Very well, Ricardo and Esteban. This is a question from Nanda Villegas in Zoom. The high prices of the energy bolsa that will go to energy of February because of the El Niño season, this exposure to the stock, is positive or negative? Does this have a negative or positive impact in the prices, Esteban? Just give me a second. This is connected to the answer that we saw before. The high prices and the stock, they are not going to favor CELSIA because we are a hydraulic generator, and we are reducing our generation. They should not either affect our cash flow or our results, thanks to that balance strategy, both operational as well as of financial options. It is not going to be an exercise at the EBITDA level. Financial options can create good options in the profitability of the controller. It should produce substantial changes. Hydro plus thermal reserves will be able to meet all the commitments that we have signed with our clients, all the commercial agreements that we have signed with our clients. Great, Esteban. We are going to go with another question in another field, sustainability. Could you confirm what is the goal of CELSIA for its indicator of emissions for 2024? I have Santiago here, so I will defer to him. Thank you, Esteban. It is important to remember that our goal in 2015 is 25% reduction of intensity from 2015 on. This takes us to a number of 280,000 tons of CO2 a year. We complied with this in 2022 with the investment of Zona Franca, and we have been reducing or phasing out. We have a generation in Tesorito. In 2024, we are going to meet our goal. We are going to have 224 billion tons. These are going to be part of the company in spite of the change of property. I want to make a comment on CO2 emissions. Today, a coal plant is not financed. Coal is being phased out everywhere. Gas is coming in, and there are different sorts of gas plants. There are those gas plants that depend on imported natural gas, where in a foreign country, we have gas production. That gas is liquefied. It becomes gas again after the shipment, and this is delivered to an electric plant. That process has lots of CO2 potential emissions, and it's a lot more costly than any other. The Tesorito plant is the ideal model for energetic transition. It's in an area that produces lots of gas. We are connected to Canacol wells for our fuel. We are 8 kilometers away from a gas, from a duct, and we are at 200 of 500 at the substation that is connected to that line of 500. There is nothing more efficient than Tesorito at the heart of the country. That invites us to, well, that is displacing emissions of natural imported gas and other liquid fuels that are even more expensive and more polluting. The introduction of this plant allows for the Colombian electrical matrix to be cleaner because of the phasing out of other displacement or that are more polluting. It has disadvantage. One more idea for Colombia is that it is something that is urgent, is getting out. There is a study from the National University, Carlos will explain that, leave all the traditional fuels. Colombia needs energy between 2026 and 2027, and we are now near the limit of our capacity for the development plan that Colombia has taken. Carlos, can you complement that? In order for everyone to understand, firm energy is a concept developed in Colombia. Firm energy, it refers to that energy that is produced by generation plant, even under critical conditions. When we're talking about a hydraulic plant, is when there is a problem of hydrology related to such things as, for example, El Niño season. What the country has as a mechanism to guarantee that we always have enough energy is that there should be balances for the future where firm energy is compared with the totality of the plants of the system with the projection of the energy to be consumed by the whole country. When that balance is positive, this is to say the plants have more firm energy than the consumption production, we are good. If that balance is negative, we are concerned. CREG did that balance a few months ago, and National University just did it as an independent objective actor. Both balances coincide or agree that for 2027 we will be in a negative situation. The country needs new generation capacity in order to increase its firm energy offer to bring this balance to the positive area again. The plants take some time to be built, and for that, the mechanism in the regulation, there should be an auction for the trust for any company that would like to join this free competition. There will be a prime for injecting that firm energy in the system, and those who offer the lowest primes, they will be assigned the contracts of supplying that firm energy in the future. The thing is that now we don't have enough time for that auction to take place and for those plants to join the system. We don't have the CREG underway, the Energy Regulation Commission. There are some previous steps that the CREG has to do, the energy regulation plant, because there are not enough commissioners in that entity. Amylkar Acosta's comment in the last conference that we had on this concern that there isn't even one only expert in CREG. We are very concerned. CREG is not operating because they did not have enough commissioners in order to have the minimum quorum to deliver it. Both in the internal expert committee, that is something that they do for different subjects and also for sessions at the commission, and to produce resolutions or passing bills or laws. But the serious part is that yesterday, the dismissal of José Fernando Prada, who was the director, today the commission does not have any commissioners today. The commission cannot issue concepts. They cannot answer to complaints, claims, or grievances. Today, there are no commissioners there. The government has just published Omar Prías' CV to be an expert commissioner. This person is expected to be appointed, but not only him is needed, but also two or three additional people in order to have a minimum capacity. The six experts that should be part of the commission should need to be completely functional in order for the sector to operate normally. This is highly necessary right now when we are in this current moment of El Niño system. We need those commissioners in order to solve, for example, the billing crisis that we are having and so on. There are two countries here with a topic that we just discussed, which is the availability of gas for Tesorito, the situation that we have a few weeks ago with Canacol. Canacol is a partner of Tesorito. It has 10% of Tesorito. This is important for you to know. Secondly, we have very good contracts, very solid contracts with Canacol. What we are seeing that we have been able to get 100% gas needs. Canacol had a situation with their wells and technical issues, which they went down from 220 feet of availability. They are regularizing that by the end of this month. They will give this information in detail. From the operational standpoint, Tesorito has been able to operate. Every time that the system has required it, we have been able to put all the molecules in place. One important part of Canacol and swap operatives that we have developing with industrials from the coast. There has been an issue, a regulatory issue with some changes that we are inviting CREG to reconsider. But as we know now, we cannot expect a lot of things to happen there. But our plan, especially in the Córdoba area, there are two more wells that are being explored. There are two projects underway, which we think are going to provide gas availability, very important availability, and we are going to develop some other gas infrastructure in order to have more independence and source diversification towards the future, facing the future if we expect to expand the Tesorito plant to provide more availability to the country. One more topic here. Sorry, the interpreter cannot hear what the speaker is saying. How are we going to decide whether to invest in Guajira? This is a common topic. The Guajira picture in our government, the manager appointed for Guajira, there was no meeting there, and we are again waiting for the government to help us to see whether they can create some communication channels. We continue to develop our things of licensing and consultations. We have had delays because of the new view that exists towards these projects and the environmental implications. We have had to reprocess a lot of this information that we have been developing. One thing is to have licenses, and a very different thing is to build, and those are two different stages that we have to differentiate very clearly. Final investment decisions and starting construction is going to depend on a protocol with the communities, and that should be enabled by the national government. We hope we expect that to be achieved because, look, we had all the permissions. It was construction mode in 18 months, and progress was inexistent. Being responsible with our stockholders' money, one thing is the licensing and a very different thing is building. The feasibility for building in Guajira. We will continue to support our commitments, our contracts that we have in terms of energy sales, those contracts that were activated a few years ago with our current portfolio. We are highly expectant. We want to be proactive in order not to lose that Guajira potential. If those projects do not happen, there will be a loss. We will be missing a beautiful development and social wellbeing project for La Guajira. Well, here is where we are going to finish. There are some other questions that we will be able to resolve through our system, but the most important issues were explained here already. Should anyone have closing words? Esteban from New York. We are international now. Thank you all for the good questions and comments. We want to rest assure our investors we are closing our things in Central America, and we are moving into the stocks reacquisition. Very soon, we will have news for you. The price of our stocks are low now and low liquidity. There is no best investment now. Nice end of the year.