Equatorial Energia SA
BOVESPA:EQTL3
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Equatorial Energia SA
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Good afternoon, and thanks for waiting. Welcome to the conference call of Equatorial Energia S.A. regarding the results of the second quarter 2021. Today with us are Augusto Miranda, CEO; and Leonardo Lucas, CFO and IR Officer. We would like to inform you that this event is being recorded [Operator Instructions] This event is also being simultaneously webcast on the company's IR website, www.equatorialenergia.com.br
And there, you will also find the respective presentation. You will be able to control the slides during the presentation. The replay of this event is going to be available soon after its closing. We would like to remind you that webcast attendees will be able to post their questions to Equatorial Energia as well, on the web. They will be answered after the end of the conference call by the IR department.
Before moving on, we would like to let you know that any statements made during this conference call relative to Equatorial Energia business outlook, projections operating and financial goals are based on the beliefs and assumptions of the company management and rely on information currently available to the company.
Forward-looking statements are not a guarantee of performance since they involve risks, uncertainties and assumptions. They refer to future events, and therefore, depend on consequences that may or may not occur. Investors and analysts should understand that general conditions, industry conditions and other operating factors may affect the future results of Equatorial Energia S.A. and lead to results that will materially differ from those expressed in the forward-looking statements.
We'll now turn the floor to Mr. Augusto Miranda, that will start the presentation. Please, Mr. Miranda, you may go on.
Well, first of all, I'd like to wish you all good afternoon, and thanks for attending. It is with great pleasure that we present the company's 2Q '21 earnings. We have moved from our first quarter in which the pandemic contact presented itself again in a more acute way. Now to a current scenario in which there are clear positive prospects as vaccination moves forward and economic activity show signs of recovery as registered in the levels of energy consumption in our concessions.
The second quarter was of great importance, not only for the positive results registered, but also for the steps achieved in our value creation agenda, just as the victory in the bidding process for CEA and Amapá at the end of June. And more recently, the beginning of the management at CEEE-D in [indiscernible] already in July, in addition to the acquisition of a distributed generation company E-Nova in the sense, we would like to point out that we are still active in the analysis of new business opportunities, broadening our view not only to the segments related to energy, but also opportunities in sanitation.
We'll then move to Slide #3. I start with the highlights of the period starting with the economic financial highlights. We ended the quarter with the company's recurring consolidated EBITDA at BRL 1.2 billion, growth of 42.7% compared to the second quarter '20. The significant performance reflects the gradual economic recovery in our concession areas. And not only that, but also the consequent extension in consumption and tariff gains, surpassing pre-pandemic levels, and that is very important. Leo will bring details of our evolution later on.
We invested more than BRL 473 million in the quarter, especially in the distribution sector, focused on strengthening and expanding our network and fighting losses. We continue with a robust consolidated cash position of BRL 8.2 billion which allows us to maintain our current investment projects and at the same time, be competitive for eventual capital allocation opportunities.
As for our consolidated leverage, we ended the quarter with a net debt/EBITDA ratio of 2x against 2.3x in 2Q '20. We are in a movement of deleveraging, benefiting by the transmission assets and also the strong performance of our distributors.
As for the performance of our distributors, I would like to highlight the growth of the consolidated volume of energy in sales, which advanced 10.7%, particularly despite significant extension of 13.2% registered in Equatorial Pará and 14.7% in Equatorial Piauí. We'll also comment on the operational performance of our assets in the next slides.
Another important point I would like to highlight was the approval of the annual tariff adjustment of Equatorial Pará that took place last week with an average effect to be perceived by consumers of 9.1% -- 9.01%. The result on the one hand, mitigate the impacts of inflation through the use of PIS/COFINS credits, for tariff moderation and also allowed the growth of Parcel B, reaching the amount of approximately BRL 2.9 billion. We'll provide more details at the end of the presentation.
In transmission. At the end of this quarter, we reached 100% of our active RAP. That is with all assets already in operation or receiving revenues through the revenue release agreement, the TLR. The next quarter, will be presented with a full RAP and EBITDA.
In this quarter, we started operations of our last asset SPE 03 in June, which represented an anticipation of the regulatory deadline of approximate 3 months.
Finally, I would like to highlight the victory in the CEA auction, adding one more asset to our portfolio in which we'll be able to promote our already consolidated turnaround and value generation model and also the beginning of management of the CEEE-D whose acquisition was concluded on June 8 in this quarter. These results are yet not consolidated in our economic financial performance, but they will be as of the next quarter.
I will now turn to Leo that will comment on the company's operational and economic financial performance in the period. Leo.
Thank you. Good afternoon, everyone. I hope you are all well. Let's talk now about the market evolution. Starting on Slide #5. The volume of injected and billed energy continues to expand at a strong pace, growing 8.8% and 10.7%, respectively, into Q2 '21 with good growth in all our concessions. But I highlight the advances in Pará and Piauí benefited both by the weather component and by the higher industrial activity and commercial reopening throughout the quarter. The growth of energy distributed at levels of both those injected is also very positive as it indicates a reduction in a consolidated manner in our distributors in the level of losses.
It's interesting to note in this quarter that differently from previous quarter in which growth was very much concentrated in the residential plans, we started to register an increase in other classes, led by the commercial plans, which grew 25.5%. As a consequence of the strong market growth, total consumption levels even surpassed pre-pandemic levels. In fact, compared to 2019, the energy distributed grew by 14.3%. However, it's worth noting that in Alagoas state at the time, there was BRL 1 billion adjustment in 2Q '19. If we disregard this effect, the growth compared to pre-pandemic levels was 9%, which represents an average annual growth of 4.4%.
In this period, it's evident that our concession areas are resilient. They presented low retraction in consumption in the second quarter '20 and the extension in the residential segment, and then the removal of restrictions and economic recovery drove growth in a homogeneous manner, both in comparison between distributors and in the opening or the breakdown by classes.
Finally, it is worth noting that we continue to grow strongly in the number of consumers classified as low income with more than 261,000 customers added in the last 12 months. That represented an increase of approximately 12%.
Let's move on to the next slide, Slide 6. Here, we show the performance of the company with regards to collection and defaults in our distributors. The bad debt provisions and collection percentages saw an evolution compared to 2Q '20 and are a consequence of the improved economic scenario, but also on our success in our programs and strategies to incentivize collection.
The company adopted a series of actions to encourage and facilitate fulfillment of obligations of our customers, fostering compliance such as participation in campaigns with prices offered and also facilitation tools such as negotiations on the website, virtual assistants and other initiatives that were implemented in the period.
I would like to highlight the Energia promotion. It's encouraged customers to be payment regularly in order to be eligible to participate in premiums offered, also generating an increase in the quality of our base. Under the initiative, we had approximately 1.6 million customers that joined, which resulted in an increase of 4.06 percentage points in the levels of these consumers.
With that we closed the quarter with a collection rate of 99.2% and a provision for bad credit of only 1.3% of gross revenues, consolidated [indiscernible] . It's worth noting that the suspension of energy supply to low-income customers established by ANEEL which is effective until June 30 when resolution -- by resolution 928-21 was extended until September 30.
Resolution 936-21. We want to make a joint negotiation program with these customers until the end of September to avoid any energy cutoff.
On Slide 7, we show the total losses in our distributed. As I mentioned on Slide 5, consolidated losses dropped basically because of the growth in energy distributed above that of the injected energy. A result of -- decreased the loss in 3 of our distributors. In Pará, where we have the highest level of volume of losses, the reduction for the second consecutive quarter is a reflection of the actions that were implemented in the period and which should advance in the coming quarters. The emphasis is the expansion of our centralized metering system. There's this SMC, and the reductions of restrictions imposed by the pandemic. We want to continue on with the reduction.
In Piauí and Alagoas, which continue to advance consistently in their turnaround processes, the highlight is the performance of Piauí, very close to the regulatory level less than 3 years after the group started its operation. This is a consequence of process improvements and productivity gains of the teams that work in this area. It is worth noting for the seventh consecutive quarter, it's possible to observe a drop in the percentage of losses in Alagoas and for the ninth consecutive quarter in Piauí.
In Maranhão, energy losses in 2Q '21 had an increase due to a more adverse scenario that was imposed by the pandemic. However, it's worth noting that it is the distributor with the lowest level of the losses of losses in the group.
Let's go to the next slide, Slide #8, where we show you quality indicators. In Maranhão., it's important to note that the accrued indicator continues to be impacted by the atypical events that we had in the first quarter, mainly related to suppliers and in the second quarter, also impacted by atypical events as a result of the increasing number of occurrences due to vegetation interference in remote and rural areas. These areas, generally, we do not have automatic fault detections.
In Alagoas, there was a 1.2-hour increase in the quarter due to a higher volume of rainfall in the period compared to 2Q '20. As a comparison in the month of April, the rainfall volume was 279% higher than that of April last year. Despite the increase, the CEEE-D performance in Alagoas continues to evolve, with a 22% reduction compared to 2Q '20. The same applies for Piauí, which had a reduction of 18% year-on-year. We reinforced that the turnaround process of our most recent assets continues to move forward. This has only been possible due to the maturation of our processes and the strengthening of the group structure.
Now we are going to go to Slide #9. Basically, the main highlight here is the fact that for the sixth consecutive quarter, we have all 4 distributors below regulatory caps. Alagoas has been [indiscernible] paced for reduction, with a drop of 20.4% in comparison with the same quarter last year.
Another point to be highlighted is Equatorial Piauí that showed a 5% decrease when compared to 2Q '20, which reflects investments for improving the network made as part of the turnaround process.
In Equatorial Piauí, it's worth noting that the company reached in June, the lowest historical levels of FEC and DEC ever recorded.
Now I'm going to turn to the economic financial performance. Here on Slide 11, we show the evolution of manageable expenses, consolidated adjusted PMSO and variation by asset. It's important to remember that the second Q '20 was half exit by cost reductions due to the pandemic, which generates a base effect when we compare to the adjusted 2Q '21 PMSO. When we compare the second quarter '21 and the first quarter '21, PMSO fell slightly. And when compared to the first quarter '20, it rose about 9% in line with the inflation for the period.
It's worth noting that since the first quarter, Equatorial implemented another stage of its organization redesign, strengthening regional structure to improve its results, which were reflected in the quarter a reduction of losses and provision for bad debt -- credit. The comparative impact of this redesign remains. As you can see, Maranhão registered an increase of 2.3% in the comparison between periods, below the accrued inflation of 8.35 measured by the IPC.
In Pará, as in the previous quarter, the increase is mainly due to higher personnel expenses mainly to the organization restructuring and the acquisition of the [ 8th hour ] [indiscernible] and also higher expenses with third-party services, especially intensification in the collection and lost [indiscernible] as well as expenses with legal fees on successes.
In Piauí, the increase is mainly due to the payment of profit sharing for the achievement of goals and also higher volume of expenses due to the [ interpretation ] of collection strategies and extensions with software maintenance.
In Alagoas, the variation reflects the recognition of personnel expenses included in profit sharing and increase of third-party services related to legal fees on successes and expenses, maintenance and software licenses.
In these 2 companies in less than 3 years of management, we already have PMSO per consumer within group standards. In transmission, the increase results from the start-up of our assets, whose expenses until last year were activated and now are being recorded in the results.
Finally, the variation of -- in the group of other businesses including holding is mainly due to the effect of accounting elimination because of less services into groups with no impact on EBITDA in addition to higher expenses within M&A operations and valuation of opportunities.
Let's go to the next slide. Adjusted EBITDA for the second quarter '21 reached BRL 1.2 million, a significant increase of 42.7% compared to that of the second quarter '20. If we remove from the adjusted EBITDA, the noncash effect as the financial asset adjustment and IFRS 15 transmission, the growth is 81.8% or BRL 516 million, going from EUR 630 million in 2Q to BRL 1.1 billion this quarter. This expressive growth is a consequence both of the Distribution segment benefited by gains in tariffs and volumes as well as the entry into commercial operation of the transmission assets.
Next slide, we are going to give you a breakdown of EBITDA by asset. 13. In this slide, we can see the contribution per asset in the adjusted EBITDA for nonrecurring effect. Here, the highlight is the strong growth in adjusted EBITDA presented by all distributors, which together contributed with an increase of BRL 451 million compared to 2Q '20, In the sense, I draw attention to the performances of Piauí, which captures significant increase in the [B ] tariff due to the RTE that took place in December last year and is also influenced by the reduction in losses and market growth in addition to improvements in spot prices.
Another highlight is the state of Pará, whose adjusted EBITDA reached BRL 550 million, an increase of 90% of the [indiscernible] of gains with tariffs market basically because of the action of losses and also a significant reduction at spot prices of BRL 58 million in addition to the updates in our financial assets.
In transmission, the variation captures the slowdown of CapEx, which leads to a reduction in contract asset revenues as a result of IFRS 15. In the graph below, we show the contribution per asset in the adjusted EBITDA. This regarding the effects of the financial asset update and IFRS, where we can observe the evolution of the transmission EBITDA due to the start-up of operations of part of acquired assets.
Going to Slide 14. As you can see on the slide,, We invested BRL 473 million in the quarter. This amount is 21% lower than that of the previous quarter. The biggest highlight is the increased investments in the Distribution segment, especially in the state of Pará and Alagoas. And also a carryover effect of nonexecuted volumes last year due to the restrictions that were more severe because of the pandemic.
The total investments allocated in the segment amounted to BRL 428 million, an increase of 5%. Investments in the Transmission segment peaked in 2019. And since now -- then are slowing down due to the completion of projects. In total, since first quarter '17, more than BRL 5.2 billion have been invested in our transmission projects.
Let's go to the next slide, Slide 15. We show that the net debt was practically stable in relation to the previous quarter with a total of BRL 10.3 billion. Considering our 100% consolidated assets, the net-debt-to-EBITDA ratio continues on a deleveraging path, reaching a level of 2x this quarter. This was basically influenced by the strong cash generation and also by the offsetting of PIS/COFINS credits. In this quarter, they had a net effect of BRL 188 million.
We understand that this level of that leverage gives us flexibility to enjoy opportunities in the market regarding capital allocation. In this quarter, we kept a strong cash position with BRL 8.2 billion in the period, enough to pay more than 3 years of debt maturities whose average term at the end of second quarter was approximately 5.5 years.
The effective rate of 9.08% a year reflects the market movement as it captures the recent increase in our main [ taxes ], IPCA and CDI. Additionally, it's worth noting that we are in process of restructuring the liabilities of CEEE distribution. We have already made the first disbursement of [ 4131 ] operation in the company in the amount of BRL 250 million with 100% hedging in exchange exposure. We also hired a short-term [ NDF ] of $228 million in April to hedge the exchange exposure of CEEE liabilities in Equatorial Energia. And because CEEE distribution is still not being consolidated this quarter, there is an impact of contracting this hedge of about BRL 95 million in the company's net debt and financial results.
Let's go to the next slide, 16. Here, we can see that after the start of operations of SPE 03 which took place in June, we have reached 100% of the active RAP. SPE 03 was already ready but was waiting for the completion of works that were under the responsibility of a third party to be entitled to the anticipation of the RAP in relation to the regulatory deadline. In this case, this will occur for 10 months. As a result, we will reach an annual revenue of BRL 1.2 billion. If all the group's transmission assets are included already considering the readjustment for the '21/'22 cycle of 8.06%, which shows the segment's importance in the group's revenue and EBITDA portfolio.
It's also important to highlight our commitment to a project's execution and delivery ahead of schedule, bringing even more value to our shareholders.
Now I will turn the call to Augusto.
Well, thank you. Before we move on to the final considerations, I would like to bring a little bit more color about the tariff adjustment in Pará. The result was approved last week, and it went into effect on the last [ seventh ]. And now approved the end of the adjustment of Equatorial Pará's tariffs with an average effect to be perceived by consumers of 9.01% with the use of measures for tariff moderation.
It is worth noting that for our residential clients, the readjustment to be perceived will be even lower, 8.02%.
Parcel B of Equatorial Pará had a positive readjustment of 33.8% when compared to original amount in effect in the last tariff year, influenced by GPM in the reference period and by factor X of minus 0.29%. Amongst the main measures for tariff moderation that are crucial in moments of inflation pressure is the reversal of balances not used in the COVID Account and mainly the use of ICMS credit on the base of PIS/COFINS, the latter in an approximate amount of 626 -- BRL 624 million.
Now moving to the last slide, to 19. I would like to close by highlighting our recent accomplishments and the outlook for 2021. Among the highlights of the period, as we talked about during the presentation, we achieved 100% of active revenue in our transmission projects, reaching an annual revenue level of over BRL 1.2 billion. Also this quarter, we won the CEA auction, the energy company of [indiscernible] whose acquisition is still subject to conditions precedent such as [indiscernible] and new approvals.
But which again reinforced our commitment to the growth and value creation agenda for the company. We expect to start the consolidation of this asset in the fourth quarter and begin a new chapter in our history to transform this asset into an asset of excellence and contribute to the development of the region.
In addition, we completed the acquisition of CEEE-D in July, starting the asset management. With this, we have expensed in the 100-day plan, accelerating the execution of our turnaround model in priority fronts. We continue to reaffirm our growth trajectory based on financial discipline and efficient capital allocation. And once again, we are confident that these will be important chapters in our history.
We also had the tariff readjustment in [ Paranau ] with a very positive result for the company, especially because of our ability to fully capture IGPM in Parcel B.
For the main perspectives in distribution, we are going to have a tariff revision processes in Equatorial Maranhão, which will take place in the end of August and also CEEE-D which will take place in November. Finally, we continue to evaluate an extensive pipeline of opportunities to grow and strengthen our portfolio as verified by our recent participation in bidding processes, not only in the electro sector.
Now I'll turn back to the operator to conduct our Q&A session.
[Operator Instructions] Our first question comes from Marcelo Sá from Itaú.
I have some questions about those assets that you bought. I would like to know if you already have a project for that, in what states you could start operating. And if there are any chances of this company have significant EBITDA in the whole Equatorial or if you are expecting something small in the beginning? And the second about Amapá, what is the company's mindset? I would like to know also if you were considering other M&A opportunities in the state.
I'm sorry, Leo, I don't know if you've heard it well, the sound was a bit broken to me.
Yes, sure. I'm going to answer and correct me if I'm wrong. You're talking about E-Nova operating area and [indiscernible]. Are these your questions? Yes? Amapá Energy Distribution.
No. Sanitation auctions.
Okay. Do you want me to answer Augusto?
Yes, please.
Okay. Well, thanks for your question. Starting with E-Nova. This GD strategy is directed to GD extension in our company, be it in rooftop lines but also solar farms we are in a way to transform our strategic planning to a tactical plan to start having a more positive effect of this combination. The company's operation that was already taking place, but with the support that we can give as Equatorial.
As for Amapá, we are still not commenting strategies on specific assets. But it's very true that indeed, we are looking into the sanitation segment. We are very much interested in joining the segment. And also, it is a fact that it is perhaps even more interesting when these opportunities are posed in concession areas in which we are already [ inserted ]. That makes things even more appealing to us.
Well, just to add, you asked about our operations. It's quite natural, Marcelo. When you have a GD company in the state in which operates, you can enjoy capillarity. So even as a strategy, we believe that we should advance in the areas where we already have concessions. That's the idea to advance capillarity to be in all municipalities and then perhaps consider other states. But yes, in the 4, 6 states where we are present, we are going to really move on with distributed generation.
And how about well -- in this stage, we've had several companies building their solar farms. And then you can add credit in to residential consumers, and they could migrate, I don't know, by having a panel in their homes. And I know that the Congress is analyzing a change of rules in operation. And then companies are going to analyze whether they are going to do about that. What I understood is that all the projects are going to keep rules as they are.
So what I would like to understand fs this asset that you bought has projects already in the states in which you operate or not really, You're talking more of a service company that has to start to structure projects in the future, and it's just in the beginning of its operations?
Well, this company already operates in Maranhão in the segment. Obviously, the priority was rooftops. But now that it is integrated to Equatorial, we have a capacity to have bigger projects. such as solar farms to provide services to larger customers. This is already a reality. We already did something an operation of the Equatorial Maranhão even before we acquired the company. And now together with this acquisition, we are already carrying on a new operation in [ Paranau ]. So we believe that by getting together, we can not only continue advancing in the rooftop segment, but also advance to solar farms.
It is true that there are some discussions going on in Congress to enhance the segment. We believe that they are necessary. And we are monitoring them from close to be able to work as well as possible.
Okay. Very good. If you allow me a final question about transmission assets. As you mentioned, all assets are in operational. And there are some companies in the sector that are considering to sell operational assets to have some kind of a recycling. I remember that in the past, there were discussions of you listing your transmission assets in separate. I would like to understand your vision on transmission. It should be part of your portfolio? Or if there are any chances of you selling the assets or you thinking of something else since they are operationals.
Marcelo? Yes, go ahead, Leo, you can answer.
Okay. Well, I think the most important point for Equatorial is our flexibility and the amount of options that we have to raise funds. It can be a multi-vote.
In the case of transmission, we really wanted to complete the process. That is something that is very good to us because it helps us reduce cost of credit. And so it makes the company more stable. That helps in the process of deleveraging.
Now if you were to think of motivations, we have a very strong liquidity, and we do not have any demanding or urgent need for recycling. Of course, that recycling could bring substantial volumes. And perhaps it would be more interesting. If we had any other operation of similar size on the other end. For now, we don't have any precedents against options. It can be one or the other, we are paying attention, taking a look in all of them, but we believe that we have to have the right setup that makes sense and that will generate the need for us to make a move if it makes sense.
Marcel, just to add to what Leo said, and Augusto here. I always say that transmission is a good problem we created for ourselves. It's a good problem. And Leo mentioned, because of our cash position and credit in the market, we are always open to looking to opportunities. So we are always looking to opportunities. And I think it is the race that we have under our lead. And it's part of our job to look around for opportunities. If they make sense, yes, we will go for them. So this is an ongoing study, but we don't have anything concrete now.
Our next question comes from Goldman Sachs.
I have 2 questions. The first is about the [indiscernible] bank that was approved in the end of June. We are hearing about higher costs in different areas in the sector. And I would like to know how you view this new price bank, if it reflects the hike in prices more recently? And if so, if there is room for you to negotiate any changes with ANEEL. And the second question is with regards to the gas market. We saw the sale of gas [indiscernible] recently. And I would like to know if you see any opportunities there, which can open room for privatization in gas distributors. So how do you see the sector?
Okay. First, the price bank. I think that -- we have a positive opinion about that. The price bank you have the registration unit, which is your main asset that is always going to fluctuate according to the company's price bank and market indicators. So that's the main part. And it is protected somehow. Marginally what you can have is in smaller components, which is a much less part of the CapEx, and that is no longer addressed as percentage but now buy units in reals. So a bit more attention on this item, but it is, again, the last part of the CapEx. I don't know, Augusto, if you want to complement to this answer.
No, that's what it is. I think in a nutshell, that's what it is. I think that they change to the reality. I don't have any further comments. I couldn't hear the second part of your question. You're talking about gas?
Yes. I would like to know your opinion about gas market, if there will be more opportunities of sale after the sale of Gaspetro a few weeks ago.
Well, this is Augusto. So just to add to you, Leo. Also, the audio is not perfect to me. But anyway, still about the Price bank, we think that the update was positive. It reflects the reality as we mentioned. And for us, it was neutral. There were no impact. But we are going to be able to recognize our CapEx with the Price bank. And again I'm very sorry, I don't know if you can hear me well, but I can hear you very poorly. The other question is?
It is the gas market. What you see in terms of opportunities for distribution in gas after the sale of Gaspetro, which was about 2 weeks ago.
Well, the gas market, we have been talking about studies in this market. But differently from the sanitation segment that we started a bit more time before and that we have already decided to go in. For gas, we are in much more of a preliminary stage for this market. So we still do not have a final decision to comment on. We cannot really say whether it is something that is for us only because we are just in the preliminary stage.
[Operator Instructions] Our next question is going to be a question posted on the web by [ Alejandro Medacta Lucas ] from [ Mercado ] [indiscernible]. What is the estimate for you to have the turn of CEEE-D.
Now I can hear you better [indiscernible] . In fact, we took over on July 14. We have a very strong team in place led by [ Maricio ], [ Maricio ] [indiscernible] a professional that has been with us for some time now is already part of our culture. So we put together a -- really have a sharp team there. So we are executing our plans Naturally, when you start in a company, you have to refine your assumptions to know if everything is okay. But we are quite encouraged I would say that next call, we are going to be able to bring you more color on that. But I would say that we are quite excited about that even more than when we bought it.
So we see that the good results will come. Very good personnel in Rio Grande do Sul, perhaps people that we can even export to other concessions. So we are very excited about this deal. Unfortunately, I cannot give you a specific date, but I would say that the learnings of each acquisitions and our knowledge on the day to day are going to be transferred to Rio Grande. So we hope to be fast but we still cannot give you a date. But I would say that we are going to use all lessons learned.
[Operator Instructions] We are now closing the Q&A session. I would like to turn the call to Mr. Augusto Miranda for his final remarks. Please, Mr. Miranda, you may go on.
Just a minute, please. Well, to close, I would like to reinforce our commitment to deliver differentiated value to our investors through operational and financial excellence in our results as well as strictness and efficiency in capital allocation. We also would like to highlight our adherence to the highest level of transparency in Corporate Governance and reassure you that our Investor Relations team is always available to help you with any questions you may have. Once again, thank you for being part of our 2Q '21 earnings results, and have a good afternoon. Thank you very much.
Equatorial Energia S.A. is now closed. We thank you very much for attending and wish you a good afternoon.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]