Good morning, everybody, and welcome to ENGIE Brasil Energia's second part of 2021. Earnings results from the conference. I'm Rafael Bósio, the Investor Relations Manager of the company, and in order to better interact with you without announcing and safety, each of us is in an individual room respecting the protocol. People connected by the phone are in muted-only mode, and soon this will be open to question and answer session. Participants will be able to share them either by phone or via the platform chat. It is worth recalling that this video conference is being recorded. You have made available on our website, www.engie.com.br/ir, the results, presentation, and learning tools with detailed analysis of the variations are disclosed.
Please bear in mind that the forward-looking statements that may be made during the video conference should be treated as forecasts that depend on the country's macroeconomic conditions, on the performance, and the regulation of the electric sector, besides other variables that are due to changes. I am here with Mr. Eduardo Sattamini, CEO and IRO, and Marcelo Malta, the CFO, who will talk about the company's performance in the second quarter of 2021. Generally, we wish to pose questions concerning the company's press office. I will now turn the floor to Mr. Sattamini. You may proceed to.
Good morning, Rafael. Good morning to all of you. Here we are for another quarter, a difficult quarter. We're undergoing difficult moments, but the company continues to have normal business and show good results. We're going to begin on slide number five.
I think we're showing you the presentation, and we are initially going to speak about the highlights, the main drivers for the quarter. We have some positive highlights: a greater generation of wind sources because of the good wind and because of the coming into operation of Campo Largo II . As you will see further ahead in the presentation, Campo Largo already was almost fully implemented, and presently, the 86 turbines are in operation, whether commercial or test operation. We reduced the purchase of energy for portfolio management, representing BRL 120 million, and this shows that for some time already, we have been working towards reducing the savings, having a more conservative standing sense in terms of our electrical energy portfolio. As a counterpart, we have a drop in the results of the CCEE, amounts much lower than the amount we were able to save with energy, BRL 85 million.
This is a negative result this quarter. We have the contribution of the energy systems on the way, and we have to account for the assets in a more invest way because they do generate revenues and EBITDA, and the more resources we have in CapEx, the better results we can offer to the company. The other projects are doing well. Further ahead, we will speak about Gralha Azul as well as other projects. We already have an inflationary effect that has been applied to our prices. Our prices on the average increased 4.9%. We have our contracts in IGP-M, part of the contracts indexed to the IPCA. Once again, we will speak in greater detail about this further ahead. We had full availability at Compass. It came into operation in 2019 and operates fully on coal, and it had a period of adaptation, what we call a curve.
Presently, it is at a very high operational maturity rate. We still have some issues to address. We came from a connection with Delta 2. We connected to Sambioco 1, which is a substation owned by UTI. When there is export to Brazil, we have to decrease the space. Some part of this situation will be overcome at the end of November, and we will definitely connect to the Sambioco 2 station that is being built by the Shimada Complex. In terms of negative highlights, the variation of the IGP-M and IPCA in the monetary statement, which we will see below the FSL line, our financial expenses increased a great deal because our debts are linked to the IPCA, as well as obligations in concessions that are paid based on the IGP-M.
We have to be presented to the board to survey this because we can perhaps change the index to decrease this mismatch between revenues and expenditures. The resulting health of CCEE are negative BRL 55 million results. Because of greater availability and generation in compass full higher fuel consumption, what has also impacted our results are the non-recurring issues. This quarter, we had BRL 163 million in impairment. Preparing the company to some of the accidents at Jorge Lacerda, we are concluding the negotiations in truth. We are presently at a stage where we are discussing the sale of quotas. The conditions have already been put in place, and as we do have the intention of selling this, we are going to apply the fair value of this asset in our balance.
When we look at the same 2020 quarter, we had some non-recurring differences, and that is why we have the differences between the same quarter in 2020 and 2021. At the center, when we look at EBITDA, we wanted to eliminate the non-recurring events, and we have 19.7% for our Adjusted EBITDA and 23.2% if we compare semester on semester. In net income, once again, we have not made this separation. We had a drop of 58.4% from the second quarter 2020 vis-à-vis this quarter, and a reduction of 28% across the month. We now go on to the slide number six, the first highlight. The company has maintained its social initiatives to generate income and input for healthcare to struggle with COVID-19. We heard a reduction in terms of the needs of our activities at this stage of the hospital.
Of course, this is a positive news that we continue throughout the country. We had the implementation of the first megawatt generator across high. We have a project between WAG and ourselves. We began this project with a turbine, and at a certain point, we withdrew from the project and ended up having a turbine with greater capacity. The turbine has been installed at our photovoltaic plant in Kingsbadra and should be inaugurated very soon. It is important to mention that today, now is authorizing the connection, which will enable us to begin the tests of the turbine and very soon begin operation. On this page, we highlight the launch of a new product, the Modulation Swap Tool, where we transform a generation curve into a flat curve for generators.
We do have a very broad energy portfolio, and we have the possibility of managing the generation risk in our portfolio, rendering services to smaller generators and capturing value, generating value for the company as well, and managing a much larger energy portfolio. The topological complex that had reached almost 70% of its installed capacity nowadays should come into commercial operation at 100% until the end of this month. Presently, all of the turbines are already in operation, either for test or for commercial operation. We go on to slide number seven to speak about the approval of law 14182, extending reimbursement for GSF hydrological losses that were prior to 2015. This was a claim of the hydroelectric generators that was responded to by ANEEL, and it is now a part of this new law.
This will bring additional benefits for the company, enabling us to have a greater compensation of energy and will extend the concession of our clients. The figures, once again, are still about to be set. ANEEL is under the obligation of determining the calculations that will be done through the CCEE. This should be done until the end of August, and we will finally end this long story of the GSF, April 25, at the end of this month or beginning of September. Side effects that we will have to underscore here. We had an accident on July 16, and because of this, we had a standstill of all of the works in the northern part of our double-saddle transmission line. We're setting forth all the inspections, and we should have the final report this week.
Once again, we're taking the measures to inspect and test all of the foundations in this and the rest of the transmission lines. We're almost fully completed the test for the Gralha Azul line. We believe there was an execution error, but we must take all the necessary measures. Own working at great height and working with cables should begin with the proper safety. As a highlight, the company in July attended all-time record for wind generation in a five-minute average, totaling 1,105.19 MW, representing 89.2% capacity factor. Another highlight, as mentioned, we were negotiating with France Capital, and we expect to sign the contract for the full majority Lacerda with precedent conditions that will sit in that until the end of August.
We have some conditions festival, referring to some of the steps that the federal government is taking in a demand to sell off this asset to a new operator and, of course, to have a compensation for this. We are certainly analyzing this bill instead of floating or remediating on page number eight. We have additional highlights. We want to promote the replacement of federal capacity, and we also have the compass project that will be reinvested in the coming months. For all of this, we have set up a special independent committee for transactions with related parties to evaluate the potential acquisition of the power plant. We want to make this possible for the complex. We are going to install capacity of 260 MW.
We will refer more to the feature that we have already cited, the transfer of assets from a company subsidized by Engie Brasil Energia. We thought that this would be the right time, as we're selling off our coal assets to bring in renewable assets to replace this capacity. The board has approved the distribution of BRL 789.5 million dividends, and the shares will become ex-dividends as of the 17th of this month. Funded payment will be set forth by the management board. Very well, let us go on to slide number 10, where we will speak about our energy commercial strategy. You're very familiar with this. We sell energy inside this to dilute the specific risk of price variation. We work with an average price. We accelerate when the price is high. We slow down when the price is lower.
We do have a continuous flow of energy sale to service our clients and to renew our contracts to ensure that our clients reduce their churn rate. To the left, as I mentioned, we have managed our portfolio, always allowing a certain amount of energy decontracted. Now this increases because hydrology has exerted an enormous pressure, and because of this, we are able to protect ourselves. As you can see, we have 12% of our total portfolio, 713 MW of protection. It may seem very low when compared with the GSF of 75%, but we should realize that we have energy sales in the market, the insurance that was contracted, we have the purchase of energy through the GSF factor, and hydraulic sources, thermal sources, and information and solar sources.
We believe that this is an appropriate level, and we can't have been too bad to access our portfolio in terms of our portfolio management. That is carried out day after day. We have had a revolution in the last few years, and we are now at a good management level. We show once again that we have diversified our three customers' portfolio. We have a somewhat crazy exposure in metallurgy and some other sectors, but obviously a very threshold of 15% of our industry. We are below that level, and we're very vigilant to ensure we don't overcome the level. In the next slide, we continue to speak about the energy commercial strategy. We have the participation of clients in this portfolio. What is important here is to observe that we have a growing number of clients thanks to the decrease of our potential of selling.
Since last year, of course, we have reduced the number of clients that we service. We can't increase the number of clients if we decrease the availability of energy for sale. We have selected our clients. We have had a slight reduction. We will recompose our portfolio in a conservative fashion. We will grow again with clients when we realize there is a greater market for them. We will put our clients who require greater support and that are more willing to pay higher margins for energy in our portfolio. Let's proceed to slide number 13. We're going to speak about our construction. We have spoken at length of the Campo Largo complex. This is an image dating back to June. Some of the wind complexes began commercial activity and tests during the second quarter of 2021.
At the end of the second quarter of 2021, of a total of 86 turbines, 71 had been fully set up. At present, all of them are in commercial operation or undergoing tests. This complex should come into full operation at the end of the month. We go on to slide number 14 to speak about Sampa Bocinó. Without great novelty at this point, our licensing is up to date. We began the earthworks, the drilling, vegetation succession, topographic execution, and the development of the engineering project. The new project is at its very beginning, licensing the beginning of construction. During some time, we will have great news regarding this complex. In the next slide, number 15, we have the transmission line for Gralha Azul. On July 18, we released the test for 230 kV for 12 MW of Cellon-Boston 2.
On August 20, we will be coming into commercial operation with this line. We will begin with the wrap of this operation from Santa Grossa, Cellon-Matilde, at 16% of the total wrap of the project. You can see that we're coming in before what was planned. All this follows the friction that we had in this project, considering the pandemic that is still ongoing, but we should be past it. Our intention is for this line to be fully operational in October and November as planned. Next slide. We will refer to Novo Estado. We have concluded 85% of the power line power foundations, 60% of assembly work. Once again, we did have that accident. We are reinvesting some activity, and the impact that this will have on the schedule will be easily absorbed by the trend that we have estimated.
We're operating with an outlook of perhaps bleeding this before. What is important for us is to go back to working and guarantee that our contractors can work in safety and to make sure to identify the causes and service the families in an appropriate way. We will go on to the next slide, number 17, to speak about expansion. We have already mentioned the Sampa Bocin complexes, Alacatá and Floresta. They were purchased in the auction of 2015 for a 20-year contract. At that time, the company was being acquired by a competitor. They implemented the project. They came into operation in 2017 for Floresta. Alacatá came into operation in 2019. We came to the conclusion that these assets should be incorporated into MT Brazil Energia, and they will have a special purpose. We have created two independent directors. Mr.
Lupin, representing the bank chairman, who is our counselor, and also the director of MT in Canada. These two board members will be aided and supported by the director of the company, Jose Lalo, who will access resources, hire advisors, and offer a price proposal for this specific acquisition. This park has 259.8 MW and a total commercial capacity of 59.1 average MW. Alacatá sold 44 average MW at BRL 364.13 per megawatt-hour in November 2019, and Floresta sold 5.1 average MW at BRL 357.72 per megawatt-hour. Once again, this is our complex for a 20-year project. We will go to slide 18. Absolutely no news regarding Gralha Azul. It is still part of our portfolio, and the original idea was to build a plan for future transfers.
As this plan is still seeking financial balance, the controlling company has not presented it for assessment, but we do include it in the presentation for future expansion. We will only have projects that will make sense and add value and not add problems to our company. On slide number 19, projects under development, we have 1.6 gigawatts of potential projects linked to projects that have already been developed where there is great synergy in solar energy. We have a few with an installed capacity. We have four additional plants with a total of 120 MW: Santa Cruz, Cina, Urubamba, Campo Largo. They also have the solar energy. Therefore, these projects are great energy with our portfolio. Part of the lifetime we will develop this.
In the meantime, we're undergoing negotiations to acquire more capacity and strengthen this pipeline to have a stronger capacity in renewable energy because we're moving away from thermal energy based coal. We will now refer to our financial performance. I will give the floor to Marcelo Malta, who will proceed with the presentation.
Good morning, Sattamini. Good morning to all of you. We go on to slide number 20, where you see our financial performance. We update a drop on net equity. Now, basically, there was an increase in EBITDA, and we invested more to the right. We show you our financial performance in the last five years. We had total investments during the period of BRL 19 billion, with a high leverage rate, maintaining comfortable leverage rates. Our installed capacity rose by 24%. We had the acquisition of TAG, and the entry into transmission together by our business.
Our EBITDA rose 74%. Net income with an increase of 66%. Now, the total dividends and interest on shareholders' capital, which pivoted in this five-year period, was of BRL 9.1 billion. On slide 21, we show you the evolution of our operating revenue. Net operating revenue went from BRL 2,237 million in the second quarter to BRL 3,000 million. In 2023, during this quarter, an increase of 16.6%. The main impact, as mentioned previously by Mr. Sattamini, arises from our transmission assets. We had an increase of BRL 242 million, which is an accounting impact, not a financial impact, caused by the progress in the work in Gralha Azul and Novo Estado, and also due to the monetary re-statement of assets linked to transmission. We had an evolution of our revenues and trading operations, adding BRL 44 million to our revenue.
On the other hand, we had the recurrent cost of the operations of BRL 42 million. You can see the EBITDA variations are across margins with trading operations, which was of BRL 2 million. We have increases in revenue, especially due to the increase of ICES, our sales ICES. We have contracts based on IGP-M and IPCA. Simply as information, we had a stock of contracts in this IGP-M of BRL 5.5 billion. This is one of the reasons why our average price will increase. We also had an increase in the volume of energy purchase. We have the Chiaprão and MIRANDA assets representing BRL 67 million of reduction in operating revenue due to non-recurring events in the first quarter of 2020, with the one a judicial action for physical details took place during that quarter. In the next slide, we show you the results of TAG.
As you can see, TAG ended in the semester with a net income of BRL 153 million, and our stake was BRL 147 million. Next slide, number 23, the evolution of EBITDA. Here we have separated with the non-recurring events. We have a better-based sales comparison between the quarterly EBITDA. Adjusted EBITDA in the second quarter of 2020 was BRL 1 billion 280 million, and the Adjusted EBITDA in the second quarter of 2021 was up 19.7%. The main impact here was economic once again, because of the transmission assets as mentioned previously. As a cognitive effect, we have equity equivalence on the TAG results during the two quarters, BRL 57 million. We had an increase in prices as well as energy volumes as mentioned beforehand, and the payments of some assets, and a significant reduction in the energy volumes purchased in our portfolio.
This was something that we expected and was caused by the coming into operation of Campo Largo II as negative impacts on EBITDA. We have the CIASSET with an impact during this quarter. Simply as information, in the second quarter, it represented BRL 75, and in the second quarter of this year, BRL 203. This has a slight negative impact on our results. If we consider variations among the quarters, this represents BRL 59 million. Another reason for the reduction of EBITDA, something we expected, was an increase in the consumption of fuel due to the greater thermoelectric generation , due to the hydrological crisis that we are witnessing, and the variations in our results. In our EBITDA, that were also expected, the consumption of third-party material and services.
This refers to maintenance that we carried out during this quarter, leading us to consume more material and third-party services. We also had a higher hydrological generation vis-à-vis the past quarter, which increased the cost of loyalty. Additionally, we see an increase of the network charges because of the coming into operation of Campo Largo. While we're investing in the structure for the operation of Novo Estado and Gralha Azul, this has demanded a new structure in terms of personnel, and it increased our personnel costs. Therefore, these are the three factors which I have just mentioned that have led to this negative variation in our EBITDA, something that we had already expected on slide 24. The evolution of our net income, as mentioned by Mr. Sattamini, a significant reduction caused by some drivers.
The main driver was the monetary re-statement and interest that we had during the quarter, especially the IGP-M variation on the balance of concessions to pay. We have approximately BRL 4 billion of concessions to pay, all of which are indexed to the IGP-M, and this led to an increase in financial expenses of BRL 181 million. As a result, when we applied the IPCA on the balance of our debt, this generated an increase in our financial expenses of BRL 270 million, and the increase of interest on brokerage concessions to pay, adding BRL 100 million to our financial expenses. One of the justifications besides the evolution of the inflationary impact is the reduction of our leverage during this period. Now, besides the impact on the financial results, we have the impairment that corresponds to something that we expected of loss of capital with the sale of Usina Termelétrica Jorge Lacerda assets.
Now, if we exclude these effects and the non-recurring events that have been recognized in the second quarter of 2020, we would have an impact on our net income of 28%, a reduction of 28% in our net income due to non-recurring effects on slide number 25. We share with you our debt. We have a slight increase in our gross indebtedness because of the withdrawal of loans with the BNDES and the Amazon Bank to finance Gralha Azul and Novo Estado. Additionally, withdrawals in other as a complement for the Novo Estado funding are cashed for the quarter to that BRL 5 billion, which means that our net debt at the end of the quarter stood at BRL 13 billion. On slide 26, our debt profile and composition.
You can observe the balance in the last three years, and the amounts that will mature in the coming 12 months are indexed to the IPCA as a significant part. We have a fixed rate, and in other years, we have a significant part indexed to IPCA in terms of our total indebtedness, 70% of the debt is indexed to IPCA. We have TJLP and CDI and fixed rates, and our debt was again increased because of inflation. It has gone to 11.2% as terms in nominal cost, and the average term of the debt is 6.9 years. In the following slide, you will see our investment. We have had an excessive volume in 2021. The expectation is to invest BRL 3.7 billion, especially in the construction of Novo Estado and Gralha Azul, the conclusion of Campo Largo, and the implementation of another asset.
In 2023, 2023, we will have the investment for Santo Agostinho. Finally, on slide 28, the history of our dividend policy. This quarter, we're going to fill out the total net income, BRL 790 million, approximately. Very well, that is what I have to present. I would now like to give the floor to Rafael.
Thank you, Malta and Sattamini. I think that we're good. We can go on to the question and answer session. We're going to begin with the questions that have come through the phone and some changes of the questions in our chat. Please leave to answer questions or your entire disposal. Thank you, ladies and gentlemen. We will now go on to the question and answer session. Should you wish to pose a question, please press star one. You will have your question for the QP, press star two. We'll go to our questions.
It seems we have no questions over the phone. I'm now checking the questions that came in through the chat. Sattamini, the first question is from an individual investor who asked about the gas sector and TAG, which are the outlooks for TAG due to the new gas law. Can we have an expressive volume or increase in the volume transferred in the medium and long term? If natural gas will become ever more popular in the world, aiming at working the industry of the country. Sattamini, your microphone is muted.
Thank you for the question. This is the question we most hear in our lives. Thank you once again for the question. The new gas law is here to try to create a more favorable business environment for the trading of gas, the transport, and distribution.
Now, for the gas sector to be able to grow in a process of a practical monopoly and a settlement, in our understanding, we have to have some elements in place to have a truly effective gas market. We begin to see signs of this. We have signed contracts, even with the full capacity geared to set the price. We have begun to sign more flexible contracts with some of the users of the pipeline so that they can use gas in their production. This is the case of OMI Shell. Their system was closed down. It has opened again. When we took on the TAG operation, and this is something that happens gradually, it will not happen overnight, this new market structure. We do observe some interesting movements, a greater market opening.
Of course, this will lead to an increase in volume and make gas more popular, creating an environment where the price will become more accessible. This will impact the transportation market. The existence of a monopoly is rather harmful because it demands the efficiency of operators, and the margins are highly unequal. We have great expectations for TAG to become a good investment platform for investments in gas in coming years, and we will have growth due to this.
Thank you, Sattamini. Another question from an individual investor from the Teixeira Group. Good morning, and thank you for the information. Although this is counterintuitive in a moment of hydrological risk, are you thinking of acquiring some of the assets that EPP will sell off?
The question is interesting and smart, of course.
The hydrological crisis is a condition, and the acquisition has to take into account our expectation in terms of what will happen with hydrology in the future. We also have a price expectation, a market growth expectation. Our perception is that we should always look upon assets that have some type of synergy and that are part of our core work. We cannot look at everything, of course, but we do have an eye on good assets. The EPP assets are good. We have had conversations. We will not necessarily acquire them. We have good return equation and, of course, we are debating this. There is no guidance that we will conclude this process. We continue observing what is happening.
Thank you, Sattamini. We have some strategic questions, and I will pose them for you.
The third question from an individual investor on solar generation if we're going to continue to expand, as we have shown with the proposal of acquiring this new project. The question is, depending on China or the manufacturer of tapes, could this represent the risk of a price increase?
Solar energy, of course, is part of our strategy. The strategy of Engie Brasil Energia is to grow in energy infrastructure with renewables, so it would be a perfect fit. We're looking at solar parks. We're acquiring the solar parks from the controlling company. We have developed some outlook in terms of this, and everything will depend on China as the great production park worldwide. We'll have to adapt to that.
If they have enormous market power regarding this type of material, if this will increase the price of equipment and technology, all of this will have an impact on the competitiveness of this choice and the other sources. If we have an exaggerated increase in the price of panels from the Chinese market, solar energy will become less competitive. We will have less parts. Of course, it will be forced to reduce their prices. At least this is my perception. Wind energy until last year had greater energy, had a lower cost in terms of implementation. The generation megawatt-hour had a lower cost. Slowly, this is changing, but we still have not come to the point where we have panels. Perhaps very soon, they will produce these panels at greater scale at lower prices.
In the last few months, we have had to compare the price of those pieces where the prices have soared and the transport of the equipment, the long haul power charge, increased a great deal. We are at a moment where the price has not been well defined. We had a huge increase in costs after the pandemic. After the horror of the pandemic in June and July of last year, we began to observe a recovery of the markets and an increase in the price of commodities. Of course, this has an impact on the different technologies. We are at a point that they present price to sell if they have a long-term vision in terms of the competitiveness of each source of energy.
Thank you, Sattamini. We have received several questions. I will put together two questions that refer to the hydrological crisis.
A question of Nidhika Delucchi and Lianna from HSEE and Changping Deng, which is the outlook in terms of the hydrological crisis and perhaps a potential rationing in 2022.
While the level of the reservoirs are truly very low and the outlook for hydrology is not the best, we're going to have to tread very carefully on this step. The government at present has more tools to be able to deal with the hydrological crisis compared to 2001, where we had rationing. The hydroelectric capacity is much greater. The government has also set forth some programs to move the demand around to stimulate a reduction in consumption. I think it will be very difficult to have a rationing or a delivery that will be announced when they happen and that we will have specific blackouts during some hours of the day at moments of peak.
The operator will have to select which is the energy that has to be. This is the outlook for future energy. Rationing, the probability is still rather disciplined. For a hydroelectric generator, the rationing would be very positive. This means that everybody would have to reduce their consumption. With this, the pressure also decreases. When they stimulate a reduction of consumption, consumption is reduced, and it reduces the pressure on the system as a whole, but this does not reduce the generator's contractual obligation. It's a difficult situation to resolve, more difficult than rationing. Rationing has a political cost, especially in an electoral year such as 2022. It could have a very negative impact for the government. We imagine that we won't have rationing, that enterprise processes will be managed. There are better tools of management as present, compared to what we had 20 years ago.
Thank you, Sattamini. Very good. A question referring to the mobile cable project. Aline Paola, an individual investor, asks about the financial impact of the accident and the measures that have been taken to avoid this happening again.
At this point in time, we are not concerned with the financial aspect. Our concern is to serve this, the families, to work with our best contractor in terms of safety measures to gain an understanding of the accident. We have a hint of what caused the accident and to set up a mitigation program and action plan so that we can rejoin, work, we can once again assemble the cables, which is where the accident occurred, but to do this safely.
What I can convey to you is that we're very calm, that all of this has been done in a very expeditious way, in a very competent way through the SK team. We imagine that the impact on time, the financial impact, will not be very relevant. What is relevant in the long term is to maintain this properly. If it delays the project, the delay will be limited. Of course, all of this will depend on the final report and all of the actions that have been set forth. We are pushing back on one of these actions, and they will be contained in the recommendations of the experts. A test of all of the foundations, this type of foundation within Delphi, which is what caused the accident. Thank you.
Thank you, Sattamini.
A question now referring to the dividend policy coming from an individual investor, Carlo.
The board has described an impact on the payout of dividends due to the income tax reform. If there will be an impact on the shareholders, it is natural and we can't avoid this, of course. The taxation of legal entities and the impact of this tax will, of course, have an impact on what the shareholder will have. If we pay out less, we will be able to reduce this. If we pay out 100% of our income because of the reform present for the investors, it will represent a slight increase in those tax burden. The company will pay out less, but part of this will go to the IRRF.
If we pay out 100% of the income, it's possible that we will have an increase in this tax burden for the shareholder and perhaps a reduction in our tax burden for the company.
Malta, perhaps you would like to add something, maybe explaining this.
I can tell you you have it, Sattamini. What I can add as information by exploring what you have mentioned is that the company largest will have a reduction in its income tax. This reduction in the first year will be 7.5%, 10% for the second year, and 12.5% for the third year. This could lead to a significant reduction of income tax, which means that investors will be taxed by 20%, but on the other hand, they will receive a greater amount of dividends.
The impact for the shareholder will end up being the net of these two effects when the company pays out 100% of the profit.
Very well, Malta. Thank you very much. We have some questions that relate to the sale of our assets based on cost. A question from Daniel from Southland Bank. He has asked for an update in the process from Pampasour, and he adds, "If there is a schedule replaced with capacity, then we will move a little bit of these assets if we can replace them with renewable energy." You're on mute, Mr. Sattamini.
Very well. As I mentioned, the negotiation is advancing permanently and we're negotiating the terms of the purchase and sale agreement. We believe that until the end of August, this process should be completed.
The issue of energy, we still have the obligation to contract energy until 2024, and we will have to guarantee a minimum cash flow for the buyer in the first few years. From then onward, the buyer will sell directly in the market, and five, we'll still extend the operation to existing business. We will have to work on the strategy for the firm. Now, what we are doing with increasing by 400 or 500 MW in sale capacity per year, this is our goal. With this, we are going to gradually replace the energy that we no longer will have in our portfolio. The exit of Jorge Lacerda that nowadays would create a gap in our portfolio. We could not leave the energy uncontracted, and we will continue to contract energy in the portfolio to avoid this gap.
As Jorge Lacerda is not a plant that sells only in the regulated part, the sale of this asset will not have an impact on our contract. It will not cause an imbalance in our portfolio. Now, the Pampas process is somewhat more lagging behind. It began by receiving not binding offers. We selected a few of the offers. If you participate for the second stage, there is a due diligence stage. This takes time. It requires printing from much more. This will enable the parties to make their final offers. We will decide whether we approve it or not if one of the parties to negotiate the final contract. The expectation is to have the operation completed until the end of the year.
There will allow time for these parties to carry out their analysis and keep updates in terms of the capacity of the plant. An element that should be kept in mind is the transmission line, Candioka 2 , that will only be ready in the month of November. We must make sure that this plant won't be displaced by impulse. Because of the situation and the level of reservoirs, the risk levels are still high, and risk aversion will lead us to contracting imports. The buyer will have to be sure that all of this is in place to avoid the risk. This is a process that will continue on based on the guidance, based on this definition that we're going to advance if and whenever the risks have been mitigated so that buyers can feel safe and feel that the offer will be the best for us.
Thank you, Sattamini. We have a high volume of questions, but we have gone beyond our time. I will select a question from another segment so that we can head for the closing of the call. We will respond to all of the questions that have not been addressed here through the Investor Relations Group. I emailed a question from an individual investor who asked about our interest to continue to invest in the transmission sector.
We made the decision to investigate our business for a company that invests in energy way back in 2016. This is a decision that we made, and based on this, we entered the gas transfer segment through TAG. We continue to be interested in acting in that segment, but we have realized that there is a greater difficulty in terms of occupational safety in some of the lines.
The low-voltage line, for example, has 1,800 km. Despite the fact that we use all the technology, we're going to ensure that there's follow-up of the work processes. We have 110 people involved in quality and safety acting in the region where we compare this to other companies in the sector that have made it high, but we still have this situation. Of course, it will not change our strategic focus. What it will do will force us to adopt strategies so that we can proceed with greater safety.
Thank you, Sattamini. Thank you, Malta. With this, we will now end the question-and-answer session, and I return the floor for the closing remarks. Malta?
Thank you. Thank you for the opportunity to converse on our results, and we hope to see you during the next quarter.
Thank you very much for your participation through the questions.
Unfortunately, time is short. We do have more work, but I was very impressed with the quality of the questions, the interest, and of course, we would like to speak to you during the entire quarter. I am at your disposal to answer your questions, and we expect you some good news for the coming quarter.
Thank you. Engie Brasil Energia. Here, we would like to thank all of you for your participation. Have a good afternoon, and thank you for using Voice Health.