Earnings Call: Q4 2025

Mar 12, 2026

Summary

2025 EBITDA rose 26% to a record $651 million, supported by generation growth and lower spot purchases, despite higher energy prices and taxes. 2026 EBITDA guidance is $690–$760 million, alongside continued renewable investment and a targeted coal exit by 2027.

Good afternoon, everyone, and welcome to Engie Energia Chile's fourth quarter 2025 results conference call. If you need a copy of the press release issued on January 28th, it is available on the company's website at www.engie.cl. Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks and uncertainties, and actual results may differ materially. Please refer to the detailed note in the company's press release regarding forward-looking statements or contact Investor Relations Officer Marcela Muñoz. We would like to advise participants that this call is dedicated to investors and market analysts, not for the press. We ask all journalists to contact Engie Energia Chile's PR department for details. We are introducing Engie Energia Chile's full year 2025 results and outlook conference call. With us, we have for the company, Juan Villavicencio, Chief Executive Officer, Vincent Sorel, Chief Financial Officer, Alison Saffery, Head of Corporate Finance, and Marcela Muñoz, Investor Relations Officer. I leave you with Juan Villavicencio, who will describe Engie's performance during 2025. I will now turn the call over to Mr. Juan Villavicencio. Please, go ahead, sir. Good afternoon, everybody. On page 2, we show we have organized this presentation into two sections. In the first part, I will briefly go through our full year 2025 performance, and Vincent will provide an updated vision of our financial result and medium-term outlook. Then, in part two, I will return with you to provide a view of Engie Chile 2030 strategy. We can start directly on page 3, where we share the main highlight for 2025. First, I want to highlight our strong result for the year. We achieved our guidance, and we reached our highest-ever reported EBITDA. At the same time, executing a record-level CapEx program with all our projects being executed on time and on budget. Our result showed the resilience of our portfolio to the challenging market conditions faced by the industry. Below, we highlight the drivers of the excellent result. On the one hand, we leveraged the high availability of our thermal asset during this period, which allowed us to reduce our exposure to the spot market, especially in non-solar hours. We also considerably increased our renewable generation capacity with 468 MW of capacity added, plus our BESS Tocopilla battery project, which achieved 100% energization last year and reached COD at the beginning of February. This was key to the result we have obtained. Finally, on the network front, we continue expanding our presence in the system, improving our network performance, helping to accelerate our renewable deployment, which in turn contributes to the stability of the whole system. On page 4, we give you a summary of all the projects and activities we have deployed related to our thermal asset in Tocopilla and Mejillones. In Tocopilla, we are giving new life to our coal-based former Unit 15, which was closed in 2022, converting it into a synchronous condenser that will provide ancillary services to the system. We also improved, extended the life, and increased the capacity by 25 MW additional of our gas-fired combined cycle plant, Unit 16, to ensure flexibility in our generation and energy supply. In Mejillones, on the other hand, we are working on the conversion of our IEM coal-fired plant to natural gas. IEM stopped its operation as planned in December of 2025 and is expected to finish its conversion and initiate operation with natural gas by the second half of 2026. Also, as planned, two of our remaining coal plants in Mejillones, CTM1 and CTM2, were decommissioned on December 21, 2025. Regarding our other two coal plants, CTA and CTH, we recently received communication from the authority exercising their right to require the extension of this plant operation until May 2027 in order to secure supply and services to the system until such day. CTM1 and 2 will be kept under preservation maintenance while the company decides if and how this asset could be used in the future, and the same will occur with CTA and CTH once disconnected in 2027. With this, 1.1 GW of coal capacity are already disconnected or under conversion as of December of 2025, and the remaining 0.5 GW will be disconnected by May of 2027. Our thermal asset in operation continue to show high availability and operational excellence, providing the generation to secure the 24/7 supply for our PPA contracts and, at the same time, reducing our exposure to the spot market. This has been especially relevant during 2025, when we've faced more challenging-than-expected conditions with lower hydrology, restriction in transmission, and other constraints where our integrated portfolio has shown great resilience. If we go to page five, we show a graph of the complete generation portfolio transformation of Engie has embarked on since 2019, when coal generation represented 61% of our generation capacity, while renewable represented only 3% of our total generation capacity, which reached 2.2 GW at the end of that year. As of December of 2025, Engie Chile showed a generation capacity of 2.9 GW, of which coal represented only 25%. After the disconnection of CTM1 and CTM2, natural gas represent another 25%, and renewable plus batteries represented 50%, a significant increase during this period. As we will show in the following slide, our expectation for 2027, considering the renewable and BESS project currently under construction, as well as the conversion of IEM and retirement of the remaining coal plants, is that we should reach a total installed capacity of approximately 3.6 GW, of which 71% will be renewable and batteries, and the remaining 29% will be natural gas. On page six, we can see the current progress on the execution plan for all renewable capacity being built. As of today, we have already implemented 1.4 GW, including the addition of Wind Kallpa, BESS Tamaya, and BESS Capricornio, which together added 468 MW of capacity to our portfolio during 2025. Additionally, during this third quarter of 2025, our first standalone 116 MW battery project, BESS Tocopilla, which was built in the same site where coal units 12 and 13 used to operate, reached 100% energization. We also recently announced that in February 5th of 2026, BESS Tocopilla reached COD. All these projects were developed on time and on budget. As such, during 2025, we generated a total of 2,343 GWh with our renewable assets. Next, on slide seven, we show the eight renewable and battery projects we have currently under construction, which are deployed over five different regions of Chile, including the already mentioned BESS Tocopilla. During 2026, we expect to continue the energization of the other projects under construction, most of which should reach COD by the second half of 2026, while the wind projects are expected to reach COD in the first half of 2027. Notably, this project include our first greenfield project in the Metropolitan Region, PV & BESS Libélula, as well as the first wind project built in the Ñuble region in the south of Chile, Wind Chequenes. We expect this project to continue adding MWh of generation as they progress with their energization during 2026. On slide eight, we give an overview of our existing transmission network, which, as we will discuss later, is an integral part of our energy transition and growth strategy. We seek to continue strengthening our transmission network, currently made up of over 2,000 kilometers of transmission lines, more than 30% of which correspond to national and zonal regulated transmission assets. We own and operate 28 transmission substations and 12 generation substations. Finally, we hold a 50% ownership share in the 600 kilometers long transmission line TEN. As we accelerate the growth of our renewable generation portfolio and its intent to provide integrated energy services to our customers, the strength and reliability of the transmission system becomes critical. On page nine, we show a little more about the transmission process undergone by our Tocopilla site, a core pillar of our transmission and value creation, where, as we mentioned before, the BESS Tocopilla project completed its construction and reached COD during the first quarter of 2026. But also the site is undergoing a transformation process with the conversion of Unit 15 to a synchronous condenser, which will provide ancillary services to the system. While the expansion and life extension of Unit 16, our combined cycle plant, will continue providing resilience to our portfolio. Together with all that, we are extending the life of Engie Chile in Tocopilla itself by bringing social, environmental, and security of supply benefit to the region. The works we are doing are also providing grid flexibility and reliability to support our PPA contract and reduce our exposure to the spot market. Together with all that, we are extending the life of Engie Chile in Tocopilla itself by bringing social, environmental, and security of supply benefit to the region. Now I will leave you with Vincent, who will present the detailed evolution of Engie Chile financial and capital structure, as well as the guidance for 2026. Thank you, Juan. Hello, everyone. I will now have the pleasure to present the financial performance and guidance for 2026. The strong number, again, reported in 2025, demonstrate the successful execution of our strategy and our ability to deliver and capture value underpinned by the resilience of our portfolio. On page 10, we just present our financial highlights. Notably, EBITDA reached $651 million, representing a 26% increase compared to 2024. Guidance was just achieved. This strong performance was mainly driven by higher electricity and generation margin, reflecting increased physical sales to regulated customers, the solid operational performance of our generation fleet, and the growing contribution of renewables to our generation mix. Net income amounted to $223 million in 2025, broadly in line with 2024. This relative stability is primarily explained by lower interest income related to the peak price stabilization mechanism, as well as higher deferred tax expense. Finally, our net debt to EBITDA ratio stood at 3.6 times as of December 2025, which we can consider a healthy level in light of the more than $1 billion CapEx executed during that year. On slide 11, let me now provide more detail on the driver of our EBITDA performance. The $104 million improvement in the electric margin was driven by several key factors. First, $89 million positive impact linked to a 40% increase in our generation. Approximately one third of this increase came from higher renewable generation, reflecting projects that reached COD or were energized during 2025, namely Huincalma, BESS Tamaya, BESS Capricornio and BESS Copiapá. The remaining two-thirds were driven by higher outputs for more thermal assets, which were fully available and dispatched when needed. As a result, we significantly reduced energy purchase from the spot market from 3.9 terawatt hours in 2024 to 2.1 terawatt hours in 2025. Second, PPA revenues increased by $88 million, mainly due to higher physical sales to distribution companies, reflecting a larger pro rata share of regulated supply. This more than offset the 10% decline in physical sales to free client, largely explained by maintenance outage at certain industrial facilities. These two positive effects largely mitigated the impact of higher energy purchase price, which resulted in a $73 million negative impact. This price increase was driven by lower availability of Argentinian gas and a reduced hydro generation across the system. It also demonstrates that our efforts to reduce our exposure to the spot market, especially during non-solar hours, proved successful in 2025. Beyond this electricity margin, we also recorded a $10 million increase in revenues from gas sales. This was partly driven by the major maintenance and upgrade of our U16 combined cycle plant during the first quarter of 2025. Our EBITDA growth also benefited from $27 million increase in one-off. One-off were recorded in both years. In 2025, you will remember they mainly reflect the recognition of approximately $100 million related to the favorable outcome of the arbitration with our main LNG supplier following the non-fulfillment of one LNG supply contract in 2023 and 2024. This positive impact was partially offset by higher provision booked in 2025 in the context of our transformation program. We also saw $13 million negative impact driven by higher operation and maintenance expense, but partially mitigated by $8 million positive contribution from our cost optimization program. All together, these elements explain the 26% increase in EBITDA, which is $651 million. Moving to slide 12. This slide illustrates how the strong increase in EBITDA, supported by favorable foreign exchange effect, almost offset higher depreciation, higher financial costs, and higher deferred tax, but largely made of one-off effect. Depreciation, amortization, and other mainly reflect two items: $17 million increase in depreciation of fixed asset, but also a punctual $26 million increase in impairment primarily related to diesel generation unit and dismantling a provision of coal-fired plant. These impacts are fully aligned with our asset transformation and transition strategy. The increase in net financial cost is also essentially explained by one-off effect. In 2024, we recognized $50 million of interest income on account receivable from regulated customer. Following the latest average node price decree, $26 million of this amount must be returned in 2026, was therefore recognized as financial expense in 2025. This accounting treatment fully explains the year-on-year increase in net financial expense. Excluding this one-off effect, net financial expense after capitalization would have been lower, reflecting in particular the continued reduction in our average cost of debt. Tax expense increased by $49 million versus that year, mainly related to deferred tax, considering the tax losses of ECL, and mainly explained by the impact of CTE merger on the deferred tax position, as well by the increase of profit before tax. Overall, as you can see, at net income level, one-off are slightly negative. As a result, 2025 net income reaching $223 million is primarily driven by our strong operating performance, confirming the quality and sustainability of our underlying result. On slide 13, we see that our net debt stands at $2.4 billion. Considering the record high capital expenditures of 2025, this increase has been contained. Indeed, only approximately 40% of CapEx was financed by new debt. We reported strong cash flow from operation, $696 million, including $112 million in proceed from the last sale of battery equipment, which allowed us not only to finance 60% of CapEx, but also a dividend of $54 million. Slide 14 on our financial structure show also an increasingly positive view. First, an improvement to AA in our national scale rating by Fitch, as well as the confirmation of our BBB stable outlook international ratings. Second, despite our increase in net debt, our net debt to EBITDA decreased to 3.6 times, a ratio that remains contained in a context of significant CapEx deployment. Third, we continue to improve our debt profile. During 2025, we repaid $146 million of a bond maturing in January 29, the 144A bond, and we made other principal debt payment for $93 million, reducing the high level of cash we were holding at the end of 2024. In 2025, we also secured two important green financing that contributed to extending the average life of our debt and maintaining our cost of funding. Namely, the issuance of $122 million equivalent 20-year bullet green bond in the local market in Chile, and the closing of a $400 million green A/B loan with CAF, Corporación Andina de Fomento, which is a seven-year amortizing facility and has a one-year disbursement period. With these two financing, we have raised most of the debt required to finance our current CapEx plan. End of 2025, we also have low short-term debt maturity and moderate refinancing risk. Our debt has an average coupon rate of 5.4%, remaining average life of 5.3 years. In January 2026, we continued taking action by extending the maturity of a $50 million loan with Banco Estado by almost three years, as well as lowering its interest rate. We were also able to reduce the total amount and the interest rate of our long-term loans with IFC and DEG. Additionally, during the first quarter, we have made a draw of $200 million from our CAF loan closed in 2025. These initiatives contribute to further improve our debt profile, lower the average coupon of our debt going forward, as well as strengthening our liquidity in current context. Slide 15 shows the evolution of our consolidated investment plan from 2022 to 2026. Over this period, CapEx have been increasingly focused on renewables, including battery energy storage systems. Out of the envelope of $1.4 billion that was previously announced for investment in renewable and BESS between 2025 and 2027, we already invested nearly $930 million in 2025. We continue to deploy the remaining amount in projects that are currently under construction. These investments are expected to reduce our exposure to the spot market, and thanks to the deployment of batteries, also mitigate intermittency and curtailment risk associated with renewable generation. In parallel, we continue to invest in our thermal fleet as well in transmission project that are necessary to support and optimize our overall portfolio. Let's continue to slide 16, where we show the guidance for the year. Our EBITDA guidance for 2026 is in the range of $690 million to $760 million, up from the $651 million reported in 2025. This outlook reflects the continued execution of our investment plan, our solid market position, and our reduced exposure to market risk, which together support a sustained upward EBITDA trajectory. While our capital expenditure will remain high in a range of $640 million to $710 million, this represent a decrease compared to the record investment level of 2025, and this will reduce our financing need. As a result, leverage is expected to remain under control during this CapEx phase, supported by our strong EBITDA. Our net debt to EBITDA ratio has been steadily decreasing over the past three years, reaching 3.6 at the end of 2025, and we expect it to decline further to be below 3.5 in 2026. As usual, this guidance considers the driver and assumption presented at the left side of the slide. This concludes the financial discussion. Now, in part two of our presentation, I will turn it back to Juan for a discussion on the company 2030 strategy. Thanks, Vincent. Now is the time to continue looking further into the future and begin the work necessary to achieve our goal of becoming the leading utility in the energy transition by 2030. On slide 19, we focus on the main challenge shaping the Chilean power market and why acting today is so important. The market is changing quickly. Competition is intensifying, customers are expecting more, and the regulatory environment continues to evolve. All of this requires us to stay agile and forward-looking. Among the key trends, electricity consumption is expected to grow by increasing demand for cleaner energy, especially from industrial clients. We are also seeing the rise of new large-scale consumers like data centers, which require secure, reliable, 24/7 supply. On the residential side, repeated tariff increases have made pricing a central issue for Chilean households, something that has become highly visible in the media. These trends are fundamental to our long-term strategy. Mining continues to expand its demand for clean energy, and sectors like data centers and desalination are becoming key high-consumption segments where we want to be well-positioned. Looking ahead, the opportunity is significant. More than 35 terawatt hours are expected to be tendered in the coming years. That is nearly 40% of the national market. Capturing a relevant share of that demand is part of our ambition. On slide 20, we lay out our clear strategic pathway with ambitious short- and mid-term milestones that guide our execution 2030 vision. 2025 was a year of major achievement. As part of our decarbonization roadmap, we closed two coal-fired power plants, CTM1 and CTM2, disconnecting one gigawatt of coal capacity. We have already reached 1.4 gigawatts of installed capacity in renewables and BESS, and we are converting IEM from coal to gas, 0.4 gigawatts in addition of gas. This allows us to remain a robust energy generation supplier, providing baseload generation as well as the flexibility and security required by our customers and the power system. By 2027, we expect to reach a major milestone by completing our 100% coal exit, achieving 2.6 gigawatts of installed renewable and BESS capacity, energy supply close to 10 terawatt hours per year, and a total investment of $3 billion since 2020. This will allow us to reach a physically balanced portfolio supported by the flexibility and security provided by our gas-fired power plants. Our ambition for 2030 is to be the best energy transition utility. We are on a very strong path. We must now start strengthening key priorities that will become increasingly critical. First, competitiveness, focus on clients, second, and value creation growth, a key skill. Slide 21, we introduce our 2030 vision, structured around three core pillars. Increased competitiveness is core to our aspiration, with an ambitious and structural OpEx reduction, along with stronger operational excellence. This requires us to use our resources efficiently with a 12%-15% OpEx reduction by 2027 compared with 2025. Regarding customer focus, our goal is to be contracted between 10 to 13 terawatt hours of energy by 2030. We aim to further strengthen our engagement with clients, deepening collaboration to better anticipate their evolving needs, leveraging our competitive advantage, our experience, and our integrated portfolio. Growth forms our third pillar, focused on expansion in renewables with 4.5 gigawatts of installed capacity by 2030, scaling our generation and transmission assets to maintain a strong market position and deliver greener and competitive offers over the long term. These three pillars do not operate in isolation. They are interrelated and rest upon the foundation of our operations, health and safety, ethics, ESG, and the core value creation, our collaborators. Together, they form the baseline of our new energy for 2030. Slide 22 provides an overview of the ambition driven by a disciplined focus on operational efficiency and a deep cultural shift across the organization. We are reshaping our cost structure by simplifying and streamlining the company while reinforcing a lighter and more efficient G&A model. This is not simply an optimization exercise, but a fundamental redesign of how Engie Chile positions itself to compete and create long-term value in a rapidly evolving energy landscape. We are accelerating a cultural change to ensure our teams operate with greater agility and stronger accountability. On the operational side, we are deploying a robust set of capital and operational efficiency levers, including standardized and industrialized design, prefabricated solutions, more efficient contract models, and stronger engineering and execution to improve CapEx competitiveness. All of these initiatives come together to support our OpEx reduction target of 12%-15% by 2027. These ambitions reflect a commitment to delivering a leaner, more competitive, and more value-creating business. Regarding our second pillar, customer focus, in slide 23, we highlight our ambition to become a truly trusted utility partner for our clients, of course. This means going beyond traditional supplier relationships. We are committed to engaging directly and proactively with our clients, forging deep partnerships built on trust and transparency. By listening closely to their needs and understanding their future projects, we position ourselves to co-build tailor-made integrated solutions that address their unique challenges and ambitions. Our portfolio includes integrated energy services such as transmission, gas, and water, combining these elements to ensure secure, reliable, and 24/7 renewable energy offers that empower our clients' success. Here, I want to insist on a point that truly differentiates us. Engie Energia Chile has deep expertise in commodity and market risk management. That is thanks to disciplined hedging, strong risk mitigation practices, and a solid understanding of market fundamentals. This track record gives us credibility, and it strengthens the foundation of our 2030 strategy, where our ambition is to reach an energy contracted portfolio of between 10 and 13 terawatt-hour by that year. On slide 24, we show that growth in renewable and batteries energy storage system is the foundation of the ambition. Our objective is clear, to deliver profitable and sustainable expansion of our renewable portfolio while maintaining disciplined capital allocation. We are pursuing a balanced growth pathway, selectively expanding our portfolio to capture competitive and long-term value creation projects. By focusing on assets located close to major consumption hubs, we strengthen the commercial attractiveness of our pipeline while enhancing system reliability. Our ambition is to scale the portfolio to 4.5 gigawatts of renewable and storage capacity by 2030, supported by this diversified mix of wind, solar, PV, and BESS technologies, strategically positioned across the northern, central, and southern regions of Chile. On slide 25, our thermal portfolio continues to be under transforming with a clear focus on enhancing system flexibility and ensuring a responsible, well-sequenced coal exit by 2027. Our roadmap includes an ambition of converting approximately 0.7 gigawatts to gas assets, 0.4 gigawatts of IEM currently under conversion, and 0.3 gigawatts of potential conversion of CTA/CTH, ensuring they continue to provide flexible capacity to the Chilean system. At the same time, coal units are being sequentially retired or repurposed. This action reflects our commitment to a planned, responsible, and dialogue-based phase-out of coal. In parallel, we are advancing new flexibility solutions, including the deployment of battery storage system and synchronous condenser at former coal sites. This approach maximized the value of existing assets while accelerating the transformation toward a cleaner, more robust energy portfolio. On slide 26, I turn to our power network business, which represents an important increasingly of Engie Energia Chile's portfolio. As we accelerate the growth of our renewable portfolio, the strength and reliability of the transmission system become more critical than ever. Our ambition is clear: to build a robust, future-ready network that enables renewable integration, strengthens system reliability, and positions us competitively for the decade ahead. In line with this ambition, we are advancing a 70-kilometer expansion of transmission lines and five new substations awarded through public tenders. This project reflects rigorous planning, disciplined execution, and our commitment to delivering long-term value through regulated assets. Overall, our strategy in power network is simple: connect more renewable, add value to the system, and secure long-term regulated returns for our shareholders. This business will remain a key enabler of our growth and a critical foundation for Chile's energy transition. In slide 27, highlights how our commitment began with health and safety, ethics, and ESG, which remain fundamental pillars of the way Engie Chile operates. These principles guide the behavior of our team, our contractors, and our partners, anchoring a culture where safety, ethics, and operational integrity are non-negotiable. It continue a competitive advantage that we are proud of. Our people strategy is equally critical. We are advancing strategic workforce planning, developing future-ready capabilities, and embedding a culture driven by data and continuous learning. We also remain strongly committed to diversity, equity, and inclusion, ensuring our workforce reflect the diversity of the communities we serve and is empowered to thrive in a changing energy landscape. Together, these elements, safety, ESG, ethics and people development, and community engagement, form the core of our long-term value creation model. They strengthen our competitiveness, reinforce operational reliability, and ensure that our growth is both responsible and sustainable, fully aligned with the expectation of our stakeholders and the demands of the energy transition. As we close the presentation, slide 20 brings together the key message shaping Engie Energia Chile performance as well as its strategic direction toward 2030. First, strong result amid a changing business and market environment. Chile's power sector continued to transform itself, driven by growing renewable penetration, evolving regulatory frameworks, and structural changes in demand and pricing. Our strong result reflect not only resilience, but our capacity to adapt to these dynamic markets, supported by disciplined cost management and efficiency across the organization. Second, our strategy is anchored in responsible and sustainable generation. We are committed to operating a portfolio that aligns with Chile's accelerated decarbonization pathway. Our strategy priority is not only the growth of clean asset, but also the responsible management of existing infrastructure to guarantee reliability and system stability throughout the transition. Third, more agile and cost-efficient operations. Operational excellence remained at the core of our strategy. We are implementing company-wide efficiency levers, optimizing asset performance, deploying digital tools, and consolidating support function to provide productivity. Fourth, long-term strategic commercial relationships. Our commercial strategy centers on building durable partnership with regulated clients, major industrial, and particularly the mining sector, Chile's most energy-intensive industry. These long-term PPAs underpin earnings visibility, reduce exposure to short-term market volatility, and reinforce Engie's position as a trusted strategic supplier. Fifth, we are committed to value creation and the growth of an integrated portfolio. Our business model is evolving toward a fully integrated energy platform, one that combines renewable, flexible asset storage, power network, and commercial capabilities. It positions us to deliver competitive, dispatchable energy solutions while capturing opportunities in system services, grid expansion, and new contracted revenue streams. Finally, we are investing in talent development and workforce planning, preparing our people and our organization for the next decade of growth by investing in capabilities that support large-scale project execution, digital transformation, and integrated portfolio management. A well-prepared workforce is foundational to delivering our ambitious 2030 objectives. These priorities define how we will compete and create long-term shareholders value. They position Engie Energia Chile to contribute decisively to the country's energy transition while delivering attractive, sustainable return. Thank you for your attention, and we are now open to any question you may have. Thank you. The floor is now open for questions. If you have a question, please click on the Raise Hand button. If your question is answered, you can lower your hand by clicking on Put Hand Down. Questions will be taken in the order they are received. Please hold while we poll for questions. If you'd like to ask a question, please write it in the Q&A first. We'll then invite you to unmute and ask it live. Thank you. Once again, if you would like to ask a question, please write it in the Q&A first. We'll then invite you to unmute and ask it live. Thank you. Our first question comes from Stefan Stick with Barclays. You can open your microphone Hi, thanks for taking my question. I was just wondering if you could comment on some of the commodity price volatility we've been seeing the past couple of weeks, and how you expect this to impact your 2026 results. Thank you. Thank you very much for your question. From our side, we are with proper contract of gas supply coming from other places, not coming from the area of the risk, like a key basic risk control. Secondly, we have another vehicles to limit any damage through the methodology of hedging that we are progressing with different tools. In parallel, we have the connection with Argentina to have some additional support in the case that the volatility is continuing. Obviously, depending how long will be the problem in Middle East. But we have more than one tool to drive the situation and being able to protect the gas supply and the business. Please hold while we poll for questions. Our next question comes from Juan Felipe with Credicorp Capital. You can open your microphone. Hello. Thank you very much for taking my question. I wanted to elaborate a little more on the commodity price that was previously asked. Maybe if you can tell us what is your gas sourcing strategy for the upcoming year? Maybe another question. What is your view on the upcoming BESS capacity additions throughout the country, and will they impact margins for this type of technology, or what is your vision on the future of battery storages in Chile? Thank you, Juan Felipe. Vincent Sorel, the CFO, speaking. Regarding gas sourcing strategy, as you know, we have supply contract in place with an LNG supplier, and we are, of course, exchanging with this LNG supplier to make sure that the gas is being delivered. As for us, it is an insurance against system stress, potential marginal price increase, and key for us is to maintain supply security in the context of the market, very volatile and rising fuel prices you highlighted. That being said, at present market level, LNG is out of the money for the Chilean market. So we are looking, of course, at various option, as Argentinian gas could fully displace any additional LNG as we speak. So we are monitoring, or we could in fact reduce this exposure or retain it as a strategic insurance. At the moment, we have the gas, but we have not decided yet what to do, and we are discussing also with our supplier to see what could be done. Of course, there are other action that could mitigate any risk. As Juan just said, import from Argentina, local gas sourcing, and maybe some domestic reallocation option that, of course, are limited but would be available maybe. I will hand over to Juan to discuss the BESS perspective. Thank you very much, Vincent. Regarding the BESS capacity that is growing so fast in the market, it's something that is supporting the way of limiting the peak of the price of the energy dramatically, and the spread of the price is going down, like was expected in the business model that we have when we invested on the different project. The deployment of this so fast, obviously, in some moment will create some pressure to increase the price during the solar hours. All this evolution, we have some particular plan to manage in terms of the exposure during that period. Okay? For the future investment, what we are seeing, that the batteries can have some trend of changing the price, but in any case, will be the basic growth for secure supply 24 hours, green and clean energy, and with a proper distribution, more centralized in the north and in the center of the country because of the good resource that there are in the country with the solar radiation. Please hold while we poll for questions. Once again, if you'd like to ask a question, please write it in the Q&A first. We'll then invite you to unmute and ask it live. Please hold while we poll for questions. We have Isabella Pacheco here on the line. Do you still want to ask a question? This concludes the question and answer section. At this time, I would like to turn the floor back to Engie Energia Chile for any closing remarks. Thanks a lot for having attended this call. For us, it was an important call as we reported again strong figures for 2025. Our guidance for 2026 is also indicating another record year for Engie Energia Chile. For us as well, it was a very specific moment to present and discuss this outlook, this strategic path that we are giving to ourselves until 2030 horizon, of course. As Juan said, everything will be driven by value creation, and this ambition that we showed will be subject to meeting strict investment criteria, obviously. That being said, any question you may have, I invite you to contact our IR team. Alison and Marcela are fully available to answer any question, and I look forward, together with Juan, meeting with you on the next call. Have a good day. Thank you. This does conclude today's presentation. You may- Thank you very much. disconnect your line at this time, and have a nice day.