Good morning. Welcome to the conference call on Neoenergia's first quarter of 2023 earnings. This conference will be held by Mr. Eduardo Capelastegui Saiz, CEO of the company, and Leonardo Gadelha, CFO of the company. This conference call is being broadcast simultaneously over the Internet via webcast and can be accessed at ri.neoenergia.com, where the presentation slides are also available. At this time, all participants are connected in listen-in mode only. Later, we will start the Q&A session. Further instructions for you to participate will be provided. This conference call is being delivered in Portuguese and simultaneously translated into English. If you need any assistance during the call, please press star zero to get help from an operator. In addition, this event is being recorded and will be available later on Neoenergia's investor relations website.
I'd like to mention that forward-looking statements that may be made during this call regarding Neoenergia's business prospects as well as projections, operating and financial targets, are based on the management's expectations and assumptions about the future of the company, as well as information that is currently available to Neoenergia. Future considerations are not an assurance of performance, and they involve risks, uncertainties and assumptions as they refer to future events and therefore dependent on circumstances that may or may not occur. Investors must bear in mind that general conditions, industry conditions and other operating factors may affect the company's future results and may lead to results that differ materially from those expressed in such forward-looking conditions. Now I yield the floor to Mr. Eduardo Capelastegui . Please, Mr. Capelastegui , you can proceed.
Good morning, everyone. Thank you very much, operator. I'm Eduardo Capelastegui , CEO of Neoenergia. I would like to thank everyone for being connected today in this conference call, in which we will start the presentation of our results for the first quarter of 2023. Then we will talk about the transaction announced last night to the market regarding our transmission business. Here with me are Solange Ribeiro, Deputy CEO, Leonardo Gadelha, CFO of Neoenergia, Giancarlo Fasan, Executive Director of Operations, Carlos Choqueta, Executive Director of Corporate Development, Juliano Pansanato , Executive Director of Asset Control and Planning, Saulo Cabral, CEO of Neoenergia Pernambuco, and Renato Rocha, Director of IR.
As usual, I will make a brief presentation going through the main highlights of the results for the period. Then Leonardo will present the results in more detail, then we will move on to the presentation of the transaction announced. Finally, we will go to the questions and answers and final remarks. Let's go to slide 4 for the highlights for the 1st quarter of the year. EBITDA in this 1st quarter was BRL 3.6 billion, more than 14% when compared to the same period in 2022, reflecting tariff adjustments, cost discipline, and new renewable transmission and generation projects already in operation.
With great satisfaction, we delivered Luzia, our 1st solar complex, which has a peak of 149 MW, and we added around BRL 90 million RAP and transmission projects with the deliveries of the Rio Formoso lot, some sections of the Lagoa dos Patos lot, and the REE in Afluente Neoenergia. As a result of our differentiated execution capacity and as a result of the progress of our growth projects and transmission and distribution, we executed a CapEx of approximately BRL 2.1 billion in the quarter.
We've had very positive results with tariff review processes for Coelba and Cosern. We had a growth of 2.5% in portion B at Coelba, reaching BRL 5.5 billion, and the growth of 0.25% for Cosern, reaching BRL 1.2 billion. We had full recognition of all investments made in the last five years with a regulatory remuneration base of BRL 15.3 billion for Coelba and BRL 3.4 billion for Cosern. Additionally, the revisions contemplated the adjustments of impact of distributed generation in our markets, in addition to the improvement in loss rates, which allowed the classification of regulatory losses also in Neoenergia Coelba. Finally, we continue to successfully execute our asset rotation plan, having announced yesterday the completion of the sale of 50% of the capital of our operating transmission companies.
All these points confirm the strength and robustness of the deliveries we had this quarter. Moving on to slide five. We can see an evolution of our projects under construction. In renewables, we concluded the works of our first Luzia photovoltaic project with 149 peak, aimed exclusively at the free market and which was born with 100% of energy already sold in the ACL by 2026, and 20% by the end of its life cycle. Luzia has the right to associate with our Chafariz wind complex, which increases the project's return by more than 100 points as it generates considerable reduction in the TUST, thus exceeding the expected return in its business plan.
Our Oitis wind complex reached the end of the first quarter of 2023 with 445.5 MW in operation. In the coming months, we will reach 100%. Oitis has 96% of its energy on the free market already sold at prices that ensure the project's profitability and exceed our business plan. In transmission, we continued advancing in the December 2018 lots with 45% completion of the Lagoa dos Patos lot. We plan to deliver other parts of the lots in this auction for this year. The Morro do Chapéu lot from the December 2020 bidding already has an installation license for its entire length. The works continue to advance as planned.
The lot that we won in the December 2021 bidding was granted the waiver for environmental licensing, which reinforces the very low risk in this execution of this project. Regarding the lots won in the June 2022 bidding, especially lot two, which is the biggest one, we've already hired 92% of CapEx, and in lot eleven we have 97% hired, which greatly reduces the risk of frustration in relation to CapEx savings that we signaled. The pro-process of obtaining the licenses is making progress as planned. I will now turn the call over to our CFO, Leonardo Gadelha, who will provide more details on the results for the first quarter. Then I will come back to explain the transaction announced last night regarding our transmission business. Leonardo, you have the floor.
Thank you, Eduardo. Good morning, everybody. As Eduardo said, we had a very consistent first quarter with very good performance in all our segments. Starting with the consolidated result on slide seven, we can see the evolution of the gross margin, which grew 14% in the quarter, reaching BRL 4.76 billion, driven mainly by the effect of the Parcel B of readjustments, greater customer base, higher VNR, and better results in renewables with EOLs and Luzia complexes. In this quarter, we continue to show good cost discipline with 8% growth in operating expenses again in the first quarter of 2022, therefore in line with average inflation in the period.
Consolidated EBITDA grew by 14%, as Eduardo mentioned. Cash EBITDA, excluding non-cash items such as VNR and IFRS 15, increased 7% compared to last year, reaching BRL 2.609 million, driven mainly by readjustments in the Parcel B and entry of projects. In the quarter, we posted net income of BRL 1.215 billion in line with 1st quarter of 2022, explained by the increase in the debt volume of around BRL 5 billion in the quarter and, naturally, the increase in interest rates. In the next slide eight, for CapEx, we have more detailed information.
Eduardo already mentioned that we've reached BRL 2.1 billion, whereas BRL 1.2 billion are in distribution, BRL 737 million in the progress of transmission work, and BRL 138 million in renewables for the final phase of the EOLs and Luzia projects that are already in operation. It's important to highlight that for the coming quarters, this will become the new profile of our CapEx. That is, it will be concentrated in the grid and distribution and transmission work. Moving on to results analysis in slide 10. We're now getting into the performance of our network segment. On slide 10, we see the change in energy injected into our distributors, which as previously announced, show growth in Coelba and Brasilia. However, there was a decline in the other three distributors.
In the quarter, we were impacted by lower temperatures, rains, especially at Elektro, and also customers migrating to DG. It's also worth mentioning, as Eduardo has mentioned, that we had the Coelba and Cosern tariff revisions last week, which was very positive in several aspects and also in terms of defining the new market. Slide 11, we're talking about distributed energy. We present the evolution of energy distributed in our five distributors as anticipated by the market. In the first quarter, distributors presented a reduction of 0.6%. The total number of consumers reached 16.1 million, therefore an increase of 307,000 customers in 12 months, and more than 1.5 million in five years. Therefore, equivalent to a new distributor for each cycle. Moving on to s lide 12, on losses.
We had a quarter of good performance with loss rates that are well controlled across all distributors. We continue with the three distributors within the regulatory limit. The good news is that considering the new regulatory limit for RTP Coelba, it is already included with a limit that's highlighted in green on the slide. We will have four of our five distributors classified within the regulatory limit for losses. Moving to slide 13. Speaking of DFO and collection, this quarter we maintained a good level of collection at our distributors. As we can see at the top of the slide. PECLD remained in line with previous quarters, except in Pernambuco, reflecting pressure on retail that we observed, and also a one-off effect from the government of around BRL 20 million in the quarter. For the coming quarters, we will continue with cutting and collection actions.
Therefore, we expect to return to the level of previous quarters. Now, about DEC and FEC on slide 14, we show the quality indicators in our distributors with good performance in a downward trend in practically all distributors over the quarter. Now, getting into the network results, the grid results on slide 15. We've seen an evolution of 18% and gross margin retaining BRL 4.238 billion, driven by readjustments for 2022 and also VNR and IFRS 15. Network OpEx in the quarter grew by 7% and 6% normalizing the new transmission lots, therefore below the average inflation of the period, showing our discipline with costs. As network grid, EBITDA grew 20% in the first quarter of 2023, reaching BRL 3.254 billion.
EBITDA cash excluding the effects of VNR and IFRS 15 grew 14%, driven by readjustments and tariffs and also the start-up of transmission projects. Profit from the network business reached BRL 1.235 billion in the first quarter of 2023, therefore in line with 2022, pressured by the higher volume and higher cost of debt. Now for slide 17, with renewables and liberalization. We show a summary here, where on the left side, we see EBITDA from renewables reached BRL 273 million, therefore a growth of 16% in comparison to the first quarter of 2022, driven by EBITDA from wind farms, which grew 42% due to the entry of the new EOLs in Luzia projects as you can see at the bottom of the slide.
While on the liberalized segment, we reached an EBITDA of BRL 153 million, therefore a decrease compared to 2022, explained by the non-supply of gas in that quarter of last year, the first quarter of 2022. Still, a strong result from Termopernambuco. Furthermore, our trading company, NC, posted an EBITDA of BRL 7 million, compared to BRL 1 million in the same quarter last year. Now moving to slide 19, where we talk about capital structure. Regarding our capital structure, we see that we ended the first quarter with a net debt of BRL 36.8 billion. We should emphasize that this is already considering the accounting criteria, deconsolidating the debt of transmission operating assets in accordance with the announced transaction yesterday, which we'll provide details later on. These assets have been deemed available for sale, hence the deconsolidation.
Our net debt EBITDA ratio decreased from 3.15 to 3.06, already anticipating part of the positive effects of the operation. We don't have the equity coming in, which will only happen at the closing of the operation, but we are anticipating part of this effect and the leveraging. Our debt structure continues to give us a lot of comfort as it is well-distributed over the next few years, as you can see on the slide below, reaching an average term of 5.4 years, and we continue with a very diversified debt in terms of sources and indexes, as you can observe on the right side of the slide.
It is important to highlight that in spite of volatility of the capital markets in the quarter, we've already disbursed more than BRL 4 billion in new funding, we're at a very competitive spread levels with international banks. We have already addressed a large part of our funding needs for the coming months, relying on various sources for financing, among them IFC. A second line with JICA. We're also advanced with ICO, which is the Spain Development Bank. In spite of the volatility we've observed, we still count on very competitive spreads. I'll return the floor over to Eduardo, who will talk about the announced transaction.
Thank you, Leonardo. Moving to slide 21. We will present to you the details on the transaction that took place yesterday, though that was announced yesterday. Basically, the signing of the operation of our transmission business consists of a broad partnership with GIC, one of the main global sovereign wealth funds, which from now on will become a partner of Neoenergia in one of its main business segments. This operation represents the commitment we have with our shareholders regarding the advancement of our strategy of asset rotation and value creation. In December 2022, we announced the transaction with Eletrobras to exchange hydraulic assets, and now we're announcing our second transaction in the transmission business this time. This operation consists of a partnership on three main fronts.
The first phase is the acquisition of, by GIC of a 50% stake in eight transmitters of Neoenergia that are currently in operation. This operation will allow cash inflow from the sale and deconsolidation of existing debt on these assets. We understand that it is a transaction at a very competitive price, and that conveys to the market at an implicit valuation that is not currently priced in the share. The second phase is a right of first offer to GIC for the future acquisition of lots that are currently under construction. We're talking about eight lots with more than 6,000 km of lines. In addition, there's Potiguar Sul. After closing the debentures in 2025, when then we'll be able to conduct the operation of sale of 50% of Potiguar Sul. These lots represent 3x more RAP than the operational lots sold now, and the negotiation will be based on the same methodology used for lots in the first phase. The third phase is the joint participation in future bidding processes as long as it is in the interest of both parties.
This participation may even take place before the closing of this operation. Already for the June 2023 bid process. We would like to highlight the strategic rationale for the operation. First of all, this is about a strategic partnership. Today, GIC is widely recognized in the market as a strategic allocator of capital and perennial and sustainable investments. This demonstrates the value that GIC saw in Neoenergia's transmission platform and its intention to continue with us thinking about the long term, not just a single transaction. This was the great differentiating factor of GIC throughout the process, its robustness and its investments and its intention to stay in the long run. Secondly, the operation generates a lot of value for Neoenergia Operation Vira Muito.
Thinking only about operational assets, the offer is for equity of BRL 1.2 billion for 50% with a very competitive implicit multiple of 12.9x the EBITDA and a premium of more than BRL 500 million on equity that was invested in these projects. These values only translate the performance that Neoenergia group implements in its assets and the ability to generate value. Moving on to the third point, it allows Neoenergia to deleverage. In addition to the cash that Neoenergia will obtain with this transaction, the structure that was designed in is one of co-control, in which Neoenergia and GIC will have a 50% stake, enabling Neoenergia to deconsolidate the debt of operation assets. The idea is that assets under construction today will also be contributed to this coding after the COD with the same co-control structure.
Finally, Neoenergia will be responsible for operating the assets. A very important point is that despite the co-controlled structure, Neoenergia will be the operational reference for the assets. This operational performance that brought GIC to the table, we will continue to implement and execute all our projects with the best market practices, reaching ever-increasing levels of quality in the operation. Therefore, Neoenergia will continue to provide O&M and administrative services. One thing I would like to emphasize is that we are looking for a partner for this operation with interests aligned with those of Neoenergia. We understand that GIC is the ideal partner for this line of business, we are sure to be running, once again, a win-win operation in which both partners will extract a lot of value from this partnership. Moving to slide 22 now.
I think the vast majority of you in the market already have a deep understanding of who GIC is. Let's remember some important data about this fund. GIC is a sovereign investment fund from Singapore. It has a global presence in several strategic segments. In Brazil, they have partnerships in other infrastructure segments and also participate in biddings in the sanitation segment, in which they also structured a successful partnership. For us, the most important about GIC is that it is internationally recognized as a resource allocator that seeks out consistency and, above all, results on the long run. For these and other reasons, I reiterate how Neoenergia believes that GIC is the ideal partner for this business segment. Regarding the investment agreement, I would like to highlight some points of phases two and three of this partnership.
Speaking on Phase 2 about the right of first offer of assets under construction. The GIC will have the right of first offer on the assets that are under construction as soon as they reach the COD. Each asset will be assessed individually once they're operating, I should insist. The conditions of the offer must be similar to what was designed for the operational assets of the first phase. Until the start of operations, Neoenergia will have full control over the construction of assets. Whenever the right is exercised, they will form part of the Neoenergia platform and GIC, which will be a holding company for operating assets.
As for future biddings, Neoenergia and GIC will evaluate the interest, jointly participating in the bidding process, and in case we win any of the lots, Neoenergia will have 60% share throughout the construction phase. Upon reaching operation or COD, this asset will be contributed to the operating holding company with a 50/50% structure, reinforcing the growth platform. This regimen will start from now, from this point onwards, including the bidding in June 2023. With this, it is clear that the operation reinforces Neoenergia's capital allocation discipline. Moving to slide 23. I'm gonna go through this slide quickly as it just reflects the structure that you already know about Neoenergia's transmission assets.
A single point that I think is worth bearing in mind is that assets under construction, which currently are eight, represent 3x more in terms of RAB than operating assets. This reinforces the discourse that we have been adopting since the beginning, that this is a very robust transmission platform. Now on slide 24. Here we just want to illustrate the times and movements. Phase 1, for example, for operating operational assets, we created a holding company, which is called Neoenergia Transmissão, in which these assets will be contributed, and GIC will invest directly in this holding company. What we jointly sought here were, was two things, actually. One, the creation of a transmission platform. For this reason, we prefer to create a holding company instead of making direct sales.
In second place, the streamlining of the shareholding structure, which is something we always seek in our structures to make the whole process much more agile and less complex. Moving to slide 25. Here we are talking about Phase 2 and 3 In Phase 2, the assets that are currently under construction will be 100% owned by Neoenergia. When operating, the partners will discuss the interest in buying and selling 50% of their shares. Remembering that this is not an obligation on either party to buy or sell. But yes, there is an intention for this to happen. These operations are not about selling eight assets. It's about building a robust platform on the long run. Therefore, if there's a common interest between the parties, the assets will be contributed to the loading of operational assets, Neoenergia Transmissão.
In Phase 3, about new bidding processes, we have already designed a very detailed dynamic of how the partners will participate in the bidding. In summary, we are under no obligation to attend the bidding processes. It will be an option for both parties. Yes, we have this mutual interest in thinking about a better capital structure for future lots, which will make our growth thesis even more robust, always respecting shareholder profitability. For the assets won at the bidding, they will initially be outside of the operation, operating, loading, and Neoenergia will have a 60% stake during the construction phase. Neoenergia will be responsible for executing the construction of project, considering our know-how and project delivery track record, as you could already see. Moving to slide 26, we're gonna talk about asset valuation.
This is an operation with enormous value creation for shareholders, with a multiple of 12.9x enterprise value EBITDA and 10.9x the enterprise value RAP. Very competitive compared to previous market transactions and with comparable multiples on the exchange market. It is worth mentioning that most comparable transactions are 100% sales with a premium, quite different from our co-control operation. In addition, I'd like to emphasize the current scenario of interest rates, which are much more challenging today compared to previous transactions, and this demonstrates the excellent process we have conducted. Another important point of comparison is the equity that was allocated to these projects.
The calculation we present here is to compare GIC's offer of BRL 1.2 billion with all the equity that has already been invested, adjusted for inflation and reduced by dividend to date. Which translates into an amount of BRL 682 million. In other words, we are creating a premium of BRL 580 million with the offer. Which represents a 78% increase over the adjusted invested equity. The GIC offer is subject to certain conditions until the closing of the transaction, as I've mentioned before, the M&A process, but which do not in any way alter the conclusion on this slide that the offer is competitive and that it reflects the profitability that the projects bring to its shareholders.
With this operation, we hope to crystallize value and seek to reflect the value of our assets in the share price. For slide 27, I'd like to highlight the impact of the operation. In the group leverage, it implies a reduction of BRL 3 billion in consolidated net debt, approximately BRL 1.8 billion of that deconsolidation now at timing. In the next quarter, this will be incorporated by + BRL 1.1 billion of cash flow at closing. An improvement in the 2023 covenants by 0.16x .
Furthermore, we reinforce that the operation has no fiscal impact, and as it is very close to the net asset value, even if we have the gain versus the equity contributed when compared with the PL, or with IFRS 15, the offer is very similar, reinforcing that Neoenergia confirms and monetizes the IFRS 15 results recorded during the years of construction of the assets. As you know, for each quarter, we present EBITDA and cash EBITDA. Here what we show is the monetization of these results obtained during construction. On slide 28, coming to the end of the presentation, I would like to conclude by emphasizing some key factors about the transaction.
First of all, I'd like to say that this transaction reflects the commitment we have with our shareholders, with the execution of our asset rotation strategy, and with the continuous search for value creation. Secondly, the significant reduction in net debt, now at BRL 3 billion, much more ahead when the project under construction come into operation, further strengthening Neoenergia's balance sheet. Thirdly, to indicate that after a long process, we will establish this partnership with GIC to create a robust transmission platform in the long term. Finally, I want to stress that in operational terms, Neoenergia will continue to be the partner of reference, building and operating the lot, and will continue to deliver results with the quality and agility that this segment demands. It has been very hard work, but the result is extremely rewarding.
We built this partnership together with GIC so that it makes sense for both sides. As you know, the way to do operations in at Neoenergia is to look for something that is good for both parties, and we are certain that we'll build together a history of many results and profitability. We continue with our purpose of creating increasingly stronger Neoenergia and with shareholders increasingly delighted with our deliveries. I would now like to open for questions and answers.
Ladies and gentlemen, we will now begin the question and answer session. To ask a question, please press star one. To remove the question from the list, press star two. Please wait while we collect your questions. The first question comes from Guilherme Lima from Santander.
Good morning, everyone. Thank you. With regard to the partnership with GIC, could it extend to investments in other segments or only transmission? Also about the next transmission bidding, are you looking into conjoint lots with GIC? What's your perspective on this, and how could this impact the threshold for return? Another question is, if you could comment on opening the public hearing about the distributors, how the discussions have been going. We've seen news about initiatives with regard to replacing refrigerators and solar panels in the household. I wonder about your perspective on the resources for this initiative and if there is any impact you anticipate.
Thank you very much, Guilherme, for the questions. Well, to answer the first one about a partnership with GIC and other segments, this is not something we are looking into right now. We are focused exclusively on transmission for the time being, and we are not looking into other segments. About the June bidding process, as I've mentioned during the presentation, we will participate conjointly in the bidding, and we are rushing to do so due to the timing of it. The partnership, as I mentioned in Phase 3, will start operating as of June. Now for the next five years, we're looking into the biddings and lots in Bahia and other, and around other areas where we are building.
Obviously we will participate in those bidding processes, and we will remain as we are now. We trust that now with GIC, this will further boost our capital allocation discipline. Yet another reason for the market to trust in how we participate in these bidding processes. The results we obtained are almost doubling the invested amount. I think that speaks for itself. These are assets that add a lot of value, that create a lot of value for Neoenergia, and the construction, for the construction will be similar.
Now, as to the shift in the market, I should mention what we're always bearing in mind. We continue to believe that the renewables model makes sense because this is in contract. We have a regulatory model based on benchmarking and therefore this model that we have designed, we believe it will continue to yield results. We're thinking about how to articulate, how to build, along with social programs. I'd like to emphasize that this is indeed very important to us.
Excellent. Thank you.
Next question is from Rafael Nagano from Credit Suisse. Good morning, everyone.
I have a few questions on mind. One is, could you explain a bit more about the rationale and the 60%-40% structure during construction? Then, I believe GIC is going to buy the 10% participation for 50%-50%. What was the rationale in terms of leveraging? The second question is, actually, I'm wondering if there's been any progress in selling Termopernambuco. Can you give us an update on this, please?
Sure, Rafael, thank you for your questions. Well, about the 60%-40% during construction is actually what we're preparing for the bidding and building the lot. Construction is what we do best. 60%-40% during construction is actually about establishing that control Neoenergia will have during the construction process. We need that kind of agility.
It's our business plan. We need to make sure we're going to be able to build following the business plan. That is why we have this bigger relevance in comparison. Once in operation, there will be this selling of 10%, because this is gonna go to the Neoenergia Transmissão holding company. That's why we're gonna have 50% after it starts operating. Our plan has been announced last year with four pillars. Transmission was yesterday. We have Belo Monte that has been announced, and we are confident that we will make progress still this year. We also have the thermal power asset. That we are working on the assets rotation to complete the cycle according to the deadlines we've indicated last year.
All right. Thank you.
The next question is from Marcelo Sá from Itaú.
Hello. Thank you for the conference call. Still about the 60%- 40%. I understand Neoenergia is gonna have a more relevant role that they're building, but I'm thinking about the leveraging. Otherwise you'll end up consolidating this debt, right? Isn't this negative to the margins during the construction? I think that's the first question I have. Secondly, I'd like to understand the governance for a bidding process. I understand you are going to do it uniquely, but I'm thinking about the first lot where you enter together. Let's assume a scenario where you don't reach an agreement with price and Neoenergia decides to do it on its own. Is that a possibility or would you necessarily have to reach an agreement to bid?
If you're by yourselves, I understand you can make your own bid, if the lots you're working together, do you necessarily have to reach an agreement on price or can Neoenergia proceed on its own?
Thank you for your question. Let me clarify the 60%- 40%, because this is something I have not mentioned actually. During the construction stage, 60%-40%, this is clear it's Neoenergia's initiative, but at first we're not consolidating the assets for that time. We're going to consolidate the debt throughout construction. I just want to make that clear, and that also addresses the previous question. About the bidding process, I'm gonna give the floor to my colleague so that he can explain the different scenarios we're looking into.
Hello. Good morning, everyone. As Eduardo said earlier, we've defined an agreement with GIC that's very sophisticated. One of the prerogatives for this agreement is to guarantee flexibility for Neoenergia, also having partners along with us, because we defined from the very beginning that Neoenergia has complete liberty to analyze the lot and weigh if it wants to participate. If GIC doesn't want to, Neoenergia can do it. On its own. If both are interested in a lot, the idea is to participate together in the bidding. If during the analysis of the bidding process, there is a diversion, Neoenergia may proceed on its own. The final bid is Neoenergia prerogative.
Currently, our rules allow to participate together, but Neoenergia has the flexibility to do it on its own, and the final bid is on is a Neoenergia call. If we agree, we go in together, and if we disagree, we can leave the contract. What we thought of 60%-40% professional is to guarantee Neoenergia's initiatives. If for any reason the partners don't agree by the end of the construction, they may sell the 40% to Neoenergia, where at Neoenergia would have 100%. We're not expecting this scenario. We're very well aligned, in order to make sure that we continue to participate in all in the next future bids, we decided for this method. The idea is to always participate with GIC. We're not talking about selling any assets. We're talking about a long-term, robust platform.
Thank you. I'd just like to explore more this point. Obviously, we're conducting the operation to build together with GIC, participate in the bids process and be together always. It's very important for Neoenergia to have that kind of flexibility that's defined by contract.
No, this is perfectly clear. Now, about the first question about consolidating the debt. I'm wondering if there's gonna be an agreement across shareholders for the co-control. Even though we have 60%-40%, it's a control structure, and that's why you're not consolidating the debt, right?
Yes, correct. 60%-40% or 50%-50% is not exactly the right to participate. It's actually the control model that we have established during the contract construction that allows for that.
Perfect. Thank you.
No, thank you.
The next question is from Daniel Vaz from Banco Safra.
Hello. How are you?
Well, I think Marcelo already asked the question about governance, and I'd like to further understand this alignment in the case of minimum profitability, if you have entered an agreement on this. Also about the continuous current bid. With GIC's partnership, what's the mindset for these future bids? Are there any you're gonna look into more carefully with DC, for example? What's your perspective on this?
Sure. Daniel, thank you for your question. Evidently, we have not defined that per agreement because it's a long-run partnership. What's clear to me is that now at Neoenergia, we work with inflation +2 digits return. Obviously, this extends to GIC, and the goal is to do it jointly. We are participating in the first bid to trying to preserve the flexibility, which is great for Neoenergia, and it's great for GIC as well, but we're always gonna try building together and bidding together. About DC, we are looking into this alternative, and we are analyzing each of the lots in June 2023, but DC is not something we are getting in right now. We consider there are excellent opportunities in the regular June bid. We do not consider ourselves competitive in DC, so that's why we're gonna look into that with more time.
Great. Thank you.
Ladies and gentlemen, if you would like to ask a question, please press star one. We are now closing the question- and- answer session. I would like to give the floor to Mr. Eduardo Capelastegui for his closing remarks.
Thank you once again, Frederick. Now, I would like to leave a final message reinforcing our commitment to all of Neoenergia's stakeholders. First, we have repeatedly said that at Neoenergia, what moves us are our values, our focus on efficiency, value creation, and capturing results. One of the best ways to represent this is the expressive growth of our EBIT cash, which has grown more than 100%, and our net profit as well over 100%, exceeding all expectations at the time. In second place, I'd like to emphasize this result is obviously the result of operational excellence, but also full vigilance of our financial health, ensuring an adequate capital structure. As you know, we have access to a wide range of funding sources, both domestic and international, which reassures us in terms of liquidity.
Thirdly, the advancement of projects and deliveries aligned with our business plans also support these results we are demonstrating. As we saw here today, we delivered our first Luzia PV park and are on our way to finalizing our Oitis wind complex. Furthermore, in 2023, we've already proving to be a year of important deliveries on the transmission front. Lastly, I'd like to say that it is with great joy that we announce the celebration of our partnership and transmission with GIC, confirming our commitment to delivering our asset rotation plan, which is generating a lot of value and by adequately pricing our assets, in addition to helping to strengthen our balance sheet.
Lastly, our to our shareholders who trust us, I would like to emphasize once again that we have the right team engaged and committed to deliver the desired results. Here, I would like to end as usual by thanking all Neoenergia's employees who have fulfilled their role, overcoming all challenges, delivering results, and creating a lot of value. Thank you very much and have a good day, everyone.