Enel Americas SA
SGO:ENELAM
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
86.76
102.9
|
| Price Target |
|
We'll email you a reminder when the closing price reaches CLP.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
You don't have any saved screeners yet
Good day, ladies and gentlemen, and welcome to Enel Américas' Second Quarter 2023 Results Conference Call. My name is Carmen and I will be your operator for today. [Operator Instructions]. Please be advised that today's conference is being recorded. This presentation contains statements that could constitute forward-looking statements.
These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of Enel Américas and its management with respect to, among other things, first, Enel Américas' business plans; second, Enel Américas' cost reduction plans; third, trends affecting Enel Américas' financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; fourth, supervision and regulation of the electricity sector in Chile or elsewhere; and fifth, the future effects of any changes in the laws and regulations applicable to Enel Américas or its subsidiaries.
Such forward-looking statements reflect only our current expectations, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors.
These factors include a decline in the equity capital markets, an increase in the market raise of interest the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Américas' integrated annual report.
Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enel Américas undertakes no obligation to release publicly the results of any revisions to these forward-looking statements, except as required by law. I would now like to turn the presentation over to Mr. Rafael de la Haza, Enel Américas' Head of Investor Relations. Please proceed.
Thank you, Carmen. [Foreign Language]. Good afternoon, ladies and gentlemen, and welcome to our second quarter 2023 results presentation. I'm Rafael de la Haza, Investor Relations of Enel Américas. Before we begin our presentation, let me remind you that at the end of June, Maurizio Bezzeccheri left the company, and as of July 1, Aurelio, who is CFO, took the position of CEO of Enel Américas. We would like to deeply thank Maurizio for this time leading our company in the best possible way. We wish him the best of luck for his future.
In the coming slides, Aurelio will be presenting the main figures of this period. Let me remind you that this presentation will follow the slides that have been already uploaded into the company's website. Following the presentation, we will have the usual Q&A session. Please remember that questions can be made only through the telephone line and the media is listening to both the presentation and the Q&A session.
Now let me hand over the call to Aurelio, our CEO, who will start by outlining the big highlights of the period in Slide #3. Aurelio, the floor is yours.
Thank you, Rafael. During the last few months, we have continued with our thermal capacity disposals, and along with Costanera and Dock Sud in Argentina, we have recently announced the sale of Cartagena power plant in Colombia, which will be executed in December this year. With this, close to 90% of our capacity is renewable. Adjusted EBITDA in this quarter increased by 13% compared to second quarter of last year.
This considers homogeneous perimeters. This means that we are including results from Peru in both periods and excluding from 2022 results for Fortaleza, Goiás, Cien, Costanera and Dock Sud as we do not consolidate those companies anymore. We are also excluding FX effects, which had a negative impact of minus USD 76 million this period. This improvement is mainly explained by better results in Enel Sao Paulo and Rio and renewable business in Brazil.
Regarding net debt, as of June, we reached USD 5.5 billion, which is 20% lower than year-end 2022. This is mainly explained by a better cash position and lower debt consolidation related to asset disposals.
Let's now analyze our operational highlights on Slide 4. In Generación business, during this year, we have added more than 540 megawatts of new renewable capacity. After the sale of Costanera and Dock Sud, we reached 13.6 gigawatts of installed capacity and considering the recently announced Thermo Cartagena sale, our install capacity is close to 92% renewable. Net production in the second quarter reached 12.2 terawatt hour, a decrease of 2% compared to same period of last year, explained by the debt consolidation of Costanera and Dock Sud.
Isolating this effect, production would have increased by 18%, explained by higher generation in Brazil, Colombia and Peru. From our total production, 88% is emission-free, a significant growth compared to the 75% of same period last year. Energy sales decreased by 15% during this quarter, reaching 18.4 terawatt hour, mainly due to the change in the perimeter.
Isolating these effects, sales would have decreased by 2%, mainly explained by lower trading activity in Enel Brazil, explained by higher energy availability in the country due to better hydrology. On Slide 5, we will focus on our development of renewable capacity. As mentioned before, we have added more than 540 megawatts during 2023; 340 megawatts are wind farms located in Brazil and 205 megawatts are solar plant located in Colombia, Peru and Central America. We have invested $0.6 billion in renewable energies during the first half of the year, mainly located in Brazil and Colombia.
We are currently working on additional 1.9 gigawatts of capacity under construction, also located mainly in Brazil and Colombia. 0.6 gigawatts are wind projects and 1.3 gigawatts are solar projects. During 2023, around 0.9 gigawatts will begin operations, while 1 gigawatts will operations in 2024.
Regarding our pipeline, we are considering 54 gigawatts of potential new capacity. From this amount, 26 gigawatts are in early stage and 26 gigawatts are in mature stage. In addition to this, we have around 1 gigawatts of battery energy storage system, and we are also considering the 1.9 gigawatts of projects under construction already mentioned. Let's continue with great operational highlights on next slide.
Electricity distributed reached 26.6 terawatt hours in the second quarter, which represents an increase of 1% compared to the same period last year homogeneous perimeter explained by higher sales in our distribution companies, except Enel Rio. Regarding number of customers, without considering the customers of Enel Goiás last year, we had an increase of around 390,000 in the last 12 months, reaching 23.5 million customers. Smart meters increased around 2.5x, reaching 459,000 in this period, mainly due to the deployment in Enel Sao Paulo.
Our net RAB has increased by 19% in the last 12 months reflecting the significant investments that we have done in our grid and that have been captured in our tariff review revision process. The ratio net RAB per customer also reflects an important growth of 17%.
In terms of quality indicators, both SAIDI and SAIFI improved it as an average, explained by better performance in Colombia and Brazil. In Argentina, we saw a deterioration of our quality indicators due to extreme temperatures during summer, while in Peru, we saw an increase of SAIDI explained by a change in the calculation criteria compared to last year.
Finally, in terms of energy losses, it improved in Argentina, Brazil and Peru and slightly increased in Colombia. Let's analyze our investments of the period in the coming slides.
During the second quarter of this year, our CapEx increased by 4% compared to the same period of last year, reaching $804 million. Despite that we do not have Enel Fortaleza, Enel Goiás, Cien, Costanera and Dock Sud in our perimeter. If we exclude these companies from the numbers of last year, CapEx would have increased by 19%. This is mainly explained by higher investments in Enel Colombia and renewables in Brazil. We would also like to highlight that nearly 80% of our CapEx is allocated to our core countries and businesses.
From the total amount, 64% were invested in Brazil, while in terms of business, 52% were devoted to renewables and 42% to grids. Growth CapEx reached $460 million while -- and was mainly devoted to renewable with 84%. In the following slide, we will discuss our ongoing corporate simplification process.
During the first months of the year, we concluded the sale process of our thermal generation assets in Argentina, named Costanera and Dock Sud. At the same time during March, we completed the concession transfer of the transmission line called Cien. In addition to this, we recently announced the sale of Cartagena thermal plant in Colombia which should be completed by December this year. Finally, regarding the sale of distribution assets in Peru, already announced the final approval of the Peruvian Antitrust Authority and Chinese Economic Authorities is still pending.
Regarding the remaining disposals announced on our strategic plan last year, we are working on them as planned, but we are not in a rush to sell and will sell only at the right price. Now I will comment on the financial results of the period in the coming slides.
EBITDA in the second quarter reached $955 million, 7.4% lower than the same period of last year. However, this reduction is fully explained by the fact that we do not consolidate Enel Fortaleza, Enel Goiás, Cien, Costanera and Dock Sud in this field. If we exclude this effect, and also include results in Peru and isolate FX effect, we get to an adjusted EBITDA of USD 1.2 billion, an increase of 13.2% compared to the same period of last year, mainly explained by better results in distribution and renewables in Brazil.
Net financial results improved by 51.6%, mainly due to a positive impact coming from Brazilian real's appreciation. Group net income in the second quarter reached $169 million, a reduction of 20% compared to second quarter of 2022, reflecting the negative impact coming from the sale of Dock Sud and the change in the perimeter. Finally, in terms of debt, we see an important reduction of 20.5% that we analyze in detail on our debts later on.
On Slide 12, we'll -- on Slide 11, we'll see the EBITDA evolution and breakdown. Starting from $1,030 million of EBITDA of second quarter of 2022, we have to exclude $129 million coming from Enel Fortaleza, Enel Goiás, Cien, Costanera and Dock Sud in order to make it comparable with second quarter of 2023.
Then we see that we have positive operational results in renewable in grids while retail analytics and thermal generation decreased in the quarter. With this, we get to an EBITDA of $1,041 million for second quarter of 2023, which is 16% higher than last year.
FX had a negative impact of $86 million resulting in our reported EBITDA for this quarter of $955 million, 7% lower than reported EBITDA of the same period of 2022. As already mentioned, Peruvian assets are considered discontinued operations, meaning that its result is considered below EBITDA level. If we consider EBITDA coming from Peru, we get to an EBITDA of $1,130 million. From our reported EBITDA, 59% came from Brazil, 40% from Colombia and 1% from Central America.
In terms of business lines, Grids represent 51% of our EBITDA and renewable 40%. Retail and Enel X contribute with 8% and 1%, respectively. Let's see EBITDA breakdown on a cumulative basis in the coming slide. Starting from $2,036 million of EBITDA of the first half of 2022, we have to exclude $236 million coming from asset disposals. Then we see that we have positive operational results in Thermal Generation, Renewable and Grids businesses, while Retail, Enel X decreased.
With this, we get to an EBITDA of $2,079 million for the first half of 2022, which is 15% higher than last year. FX had a negative impact of $180 million, resulting in our reported EBITDA for this half of 1,899 million, 7% lower than reported EBITDA of the same period of 2022. EBITDA from Peruvian operations was $367 million, reaching with this an EBITDA of USD 2,265 million.
From our reported EBITDA, 61% came from Brazil, 36% from Colombia, and 3% from Central America. And in terms of business lines, Grids represent 53% of our EBITDA, Renewable 39%, Retail and Enel X contribute with 8% and 1%, respectively.
On next slide, we'll focus -- we have a focus on cash flow of the company. Starting from an EBITDA of $1,899 million, we see that net working capital amounted to $571 million, mainly explained by PIS/COFINS credit using connection with reimbursement to final customers, CVA impact and provisions from pension funds and bad debts.
Tax paid during the period amounted to $342 million, while net financial expenses amounted to $225 million. With this, funds from operations amount to $761 million, a decrease of $340 million compared to the same period of last year. After investments of $1,334 million, which includes $715 million of growth CapEx aimed at a future growth for the company, we get a free cash flow of minus $573 million.
Let me now analyze the debt of our company in the coming slides. Gross debt amounted to $7.6 billion, a decrease of 5% compared to December 2022, mainly explained by the deconsolidation of assets available in the sales of 2023. Isolating this effect, gross debt would have increased 6%. Net debt reached $5.5 billion, a reduction of 20% compared to the end of 2022. This includes a free cash flow of minus $573 million, net dividends paid for minus $49 million, extraordinary operation for $1,467 million related to the sale of Goiás, Costanera and Dock Sud.
Net debt deconsolidation for $907 million and effects for minus $348 million. In terms of currency in country, we see that Brazil remains as the largest contributor, while the debt at holding level represents 9% of the total. Finally, regarding the cost of debt, we can see an increase for this period going from 9.8% and 12.7%, mainly explained by higher interest rates in Brazil, and especially in Colombia. We can see that we are in a very solid position -- solid financial position which is recognized by our rating agencies. In the last few weeks, both Fitch rates [indiscernible] rates have confirmed our rating and outlook.
On the next slide, I will conclude this presentation with some closing remarks. During second quarter of 2023, we saw solid operational results across all our businesses with a relevant increase in energy demand. We maintain a solid financial position, which allows us to execute our CapEx plan. We are strongly delivering and executing the new capacity coming from renewable sources in line with our strategy. Finally, we continually working on our corporate simplification, concluding sales processes of nonstrategic assets and moving ahead on coming disposals.
Well, thank you very much, Aurelio, and thank you all for the attention. Let's now move to the Q&A session. Carmen, please proceed.
[Operator Instructions]. One moment for our first question, and it comes from the line of Alessandro Di Vito, Mediobanca.
I have a couple of questions. The first one is related to the asset rotation program. You previously said that you're not in a rush to close the remaining operations that you have in your pipeline and that you are looking to achieve good multiples. So I wanted to know if you could provide more colors on the different multiples that you're looking to achieve for different businesses.
And the second question is related to hydro conditions. We saw a partial recovery during this year. So I was wondering if you could provide more color on your expectation for the remaining half of 2023?
Hi, Alessandro. Thank you for your question. Well, related to multiples in this discussion, there's not any standard that you can -- each asset has it's -- I mean, its main characteristics, it's main situation, Alessandro. So of course, if we analyze it, for example, the operation that we did in Peru, for example, it's a clear -- the distribution, it's a clear demonstration that we follow the best -- I mean, the best price or -- the best price that we got for this asset. And it doesn't mean that this multiple should apply to other assets, if I may to Argentina to Brazil -- I mean this is a special character.
There's not a standard or a formula to reach this. Of course, we have the projections of growth in our -- everybody has the projections of growth, the projection of synergies. And we more than -- I mean, consider very clear that our plan is aiming to achieve the best price, the best condition for each asset. And if not, no problem, we do not sell or -- I mean the key issue here is that we more than demonstrate in our management that we follow the best conditions for the company.
We provided this in the past when we bought the -- for example, Sao Paulo, we showed Sao Paulo right now, when we bought the company, we proved that we paid a fair price. And now in the selling, I mean, not the selling side, but the selling process that we are moving forward consider what we did in Peru that we are achieving and aiming to the best conditions. If not, no problem.
In terms of El Nino, your question about prices. Well, exactly, we see a very -- let's say, the reservoir in Brazil, they are full. And it's -- we see a different situation, for example, in Colombia. But in Brazil, the effect is that we have a good hydrology, lower price. Well, good depends on what you analyze, but lower -- I mean, lower price, it's -- the market works like this, of course. The Southeast, we see that the reservoirs in the Southeast, they are more important because they are close to the consumer areas.
But -- and then office is the opposite with more support from solar plants. At the end of the day, what we -- with this, we are seeing lower prices in the -- at least in the next year or in 2023, 2024 because of this hydrology. What we do, our strategy is being -- we are very proactive. At this time that we see lower prices, we got opportunity purchasing energy and do more trading business to get margins and, of course, being very proactive. And since the situation, we got a higher price. We are getting -- we are signing PPAs in order to follow our strategy, our integrated strategy in terms of margin and in terms of position, in terms of margin.
But very it's interesting because today, we see lower prices in Brazil and higher prices in Colombia, and we are in both markets. And we -- this is a unique condition for a company like Enel Américas to be positioning in this complementarity of both market. When we see this phenomenon of El Nino and La Nina, we see a complementarity between those markets. So in Colombia, we are very well contracted, I mean, in energy with higher price. In Brazil, we are contracted, but with some more difficult to get higher prices in the coming years.
But this is a consumer process and it changes. We passed through this in the past. And it shows that we know exactly how to deal under this condition since we have, on one side, the capacity, the renewable capacity; and one side, one hand, a very good trading activity, to having a very good customer base that we can achieve, not only in our concession areas, but all around Brazil.
And it comes from the line of Ezequiel Fernández with Balanz.
Good morning, everybody. Thank you for taking my call and very complete materials as always. I have three questions, one in Colombia, one in Peru and one regarding batteries -- of possible investments in batteries in storage. I would like to go one by one, if you do not mind. My first question is related to Colombia and has to do with the upcoming Cargo Confiabilidad auction planned for the end of the year. I was wondering if you can comment if you're planning to participate? And if so, with what technologies?
Okay, Ezequiel. Do you want to ask all the questions or -- just -- I'm sorry, I thought you would ask 3...
I think [indiscernible] review, let me say, read the 3 questions all together, and then we are going to organize it. First question on Cargo Confiabilidad in Colombia; second question on battery storage interest, if I'm correct; and the third one?
Yes. Let me elaborate again then all the 3. Colombia, upcoming Cargo Confiabilidad auction, if you're planning to participate and with what technologies? Regarding batteries, we're seeing a lot of action in Chile regarding batteries complement to renewables and also transmission solutions, but we're not seeing -- or maybe we are mistaken, we're not seeing a lot in other countries if you are aware of any -- or participating in any initiatives on that side, perhaps in Brazil, in Colombia et cetera?
And the third question is related to Peru. If -- for the power generation arm, you're already in the process of evaluating bids. What milestones perhaps are pending, perhaps ready to the merger of Enel Green Power Perú and Enel Generacion Perú and when do you expect to close or at least announce the same?
Okay. We are focusing. Our strategy mainly in the -- for the free market, Ezequiel. So, of course, if we -- we are not participating just for the auction or just for the Confiabilidad, but it's a very good complement of the revenues. But of course, the main one is related to PPAs. So we -- of course, we see that the market has different conditions in Colombia. We see -- we are fully contracted in Colombia, but we certainly will -- in the coming months, we are present our strategy in terms of integrated margin that we can provide to you more details on this.
In terms of batteries, of course, in our plan, we consider it -- especially in the demand response business, we consider into a small margin, not too big. We are tripling the demand response that we have today. But in terms of remuneration, it's still not relevant. We see that especially in Brazil and in Colombia, there is different from Chile. The cost is still high in terms of -- I mean, especially to use in the wind plants, for example, to reduce the effects -- to solar plants to reduce the effects during the night. And we are -- we still -- we are implementing, developing the technology, but not as -- I mean, slower than what analyst is doing in Chile, just to give you a comparison.
In Peru, we are -- of course, we are focusing selling the assets in Peru. We are not increasing our capacity. Of course, we are -- we're putting function some renewable plants. And -- but this is all part of the package that we are in -- that we commented with this corporate simplification and especially the generation assets. So it's not -- for us, it's is not an objective to increase our capacity in Peru, it's the opposite.
And I'm not showing any further questions in the queue. I will turn the call back to Rafael de la Haza for closing remarks.
Carmen, we have received some other questions in our e-mail. So let me read the first question from Andrew McCarthy, CrediCorp Capital. Aurelio, the question is the following from Andre. Can you comment on your latest thoughts on what risks are you seeing with the process for the renewal of distribution concessions in Brazil?
Okay. Thank you, Andrew, for your question. I see that's -- it's interesting because Brazil opened, there's lots of discussion, space for discussion, space for anyone could contribute in the process. You know that there is a process of public hearing that the contribution period finished last Monday. And now the government is analyzing the contributions, lots of discussion, lots of space. And according to the time line, it is estimated to -- in October to be the final proposal.
Regarding the proposal, of course, it's a huge negotiation. But at the end of the day, what I see is that the technical aspect will prevail. I mean, it should be balanced. The distribution companies should have an equilibrium in terms of returns in order to keep on providing an important service in Brazil. You know that in Brazil, we have a lack of infrastructure. We need investments. So it's not like put some regulation and distribution invest for free, it will not work.
So in my view, it will be a balanced possibility or situation or proposal, especially to maintain the health of -- and a sustainability for the operators for the distribution. It's clear that it's cheaper for the whole system to maintain the current distribution, not to maintain, but not to reauction the system.
So having said that, the conditions, in my view, will be more to incentivize the investment and to improve the infrastructure in Brazil in a more balanced way, not damaging the whole system. Because if you damage the distribution, we are damaging the whole society. I mean the quality of the services of Brazil will not move forward. So I think at the end, this common sense and this discussion will be more to adjust remuneration to a fair remuneration and a balanced position in order to the distribution to operate and to get their remuneration to this and also provide good quality -- quality according to the tariff that the customer pays.
So the system and the customers will be beneficiating in the -- at the end. I do not see many -- of course, if the proposal pass like it is today, like in a certain way, not respecting, for example, fiscal benefits that was assured for the company to invest in this -- in the Northeast, for example, or calculation, that is not correct. I mean, proposing investment in social issues not remunerating but without providing any minimum benefit for the distribution, it will not work.
So I mean at the end of the day, if you see the contributions, there are very good contributions. I'm sure that the government will analyze it and reach a good formula in the system to provide the infrastructure that Brazil needs to be a competitive country and to grow in the future in a competitive way.
Okay. I don't have any other questions over here on this side.
Yes. Let's continue with the last ones. We have received some three questions, three final questions from Banco Santander. The first one is the same that Moneda sent by email to Enel Américas team, is regarding the investment plan that the company is carrying out and the progress of the remaining assets. In particular, we have focused in [indiscernible] and the concession in Argentina in Chocón.
The second question is regarding the management changes that have been observed in the company and on Enel SpA in the last months. Do you expect -- the question is the following one? Do you expect this to change the strategy of Enel Américas going forward or are you keeping with the current strategy?
And the final question is regarding the Colombian assets on the current situation in that country. The question is the following. Do you see the possibility that this asset could also be included in the divestment process. Do you see the assets in Colombia as a strategic one?
Yes. Let's start. First of all, I think it's -- public know the news that the concession was postponed, the end of the concession were postponed by 60 days and we'll have -- with the possibility for more 60 days which means that maybe if the first 60 days, the concession ends in October with a new renewal in December. I mean this is -- this is not -- I mean, the government is focusing on trying to assure the concession. They will do an auction, but it seems that the concession -- to give a safe view of the concession safe operation and transition for the concession.
And so probably Argentina will have election. So the new government will probably will decide for -- or to push for this process of the new auction of Chocón, but we are following the plan to finish this concession to sell the asset, as we announced, like leaving the country. In terms of Goiás, we are in the middle of the process. Goiás is a very good -- good company, a very good asset. And as I told you, of course, we are discussing this concession renewal process.
But in my view, there's no big issue considering the asset. We are not in a rush. I mean, if we don't see a good proposal, there's absolutely no rush and no -- and even no need to rush to sell it, I repeat that the company is a good company. So I mean it's -- we expect a very good multiple for this company. But anyway, we're not in a rush, as you see in our financial statements, our financial position, our financial situation.
In terms of Colombia, yes, we see that the asset in Colombia is very important for us, is a part -- Colombia is still important part of our strategy, is a strategic country for us and there is no plan to leave Colombia. The strategy here is to maintain our portfolio prolonging. I don't know if you are referring about [indiscernible] in the solar, it's an isolated issue. I think it's specific for this project. That's why we are announcing to leave this project, but it has nothing to do with our strategy in the country.
And I repeat, we are satisfied with our assets, with the cash flow generation, with the increase and we see demonstrations that the institutionality of Colombia prevail despite some issues, regulatory issues. But at the end of the day, the regulation is very good. There is safe in terms of legal aspect, institutionality and so on, okay?
In terms of strategy, we do not see changes. We always saw that the first -- I mean, the first indications for the new management is aligned with this focus of simplification, with this focus to -- with more -- I mean, to invest in the countries that makes sense to be, not spread a lot of countries and so on. I mean, it's -- we are totally -- the strategy is totally aligned at the end.
Of course, we can see some adjustments, but it's normal, it's common. In a vibrant world, we have this also to analyze and to be very proactive in our movement in terms of tactics and so on. But the strategy -- the general strategy didn't change and we are not seeing any big change on this.
Very clear. The last question, probably is from Kallpa Securities and is regarding the sale of Enel Distribución Ceará in Peru. The question is the following. Many Peruvian media and politicians are strongly opposed to the sale of the company to China Southern, arguing antitrust reasons, let me say. Could you share your thoughts on this matter? Do you think the Peruvian Antitrust Regulator could approve the deal without any observation anyway? And how much time do you expect to deal -- or to close the deal?
Yes, we do not see any indications. It's normal, moving normal Peruvian institutions are very -- they are very independent. They do their work very well. They perform very deep and we do not expect any indifferent outcome from this process. But it takes time, and the government should work very well on this. If I were them, I would do exactly the same. And we are confident that this institutionality is -- I mean, the way the INDECOPI will be as expected.
The time line for this process, probably consider other experiences in the past that we see, probably in the first quarter of 2024. I mean, there's no fixed time line, but I'm giving you some experience that we had, that we saw in the past, probably in the first quarter of 2024. But I mean, they are doing their work. They are working -- showing that they are in a fair and very deep way and we are waiting for their position.
Thank you, Aurelio. There are no more questions here in this conference call. We conclude the results conference call for the first half second quarter. And let me remind you that, as usual, the Investor Relations team is available for any further doubt that you may have in the next coming days.
Thank you for your attention and have a good evening.
All right. Thank you, everyone. This concludes the conference, and you may now disconnect.