Enel Americas SA
SGO:ENELAM
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Earnings Call Analysis
Q2-2024 Analysis
Enel Americas SA
In the second quarter of 2024, Enel Américas achieved an impressive financial performance with an EBITDA of $1 billion. This represents a 4% increase compared to the same period in 2023. For the first half of the year, the company's EBITDA reached $2.1 billion, marking a 9% growth. This uptick was driven by significant improvements in the grids segment in Argentina and Colombia, and the renewables sector in Brazil.
The completion of the sale of Enel Generación Perú and Enel Distribución Perú was a major highlight, garnering $4.4 billion in cash and a net income impact of $1.8 billion. These proceeds have been pivotal in reducing the company's net debt by 65%, from $6.7 billion to $2.3 billion. The funds realized from these sales are earmarked for reducing expenses, debt, and the pension fund liabilities in Enel São Paulo.
During this quarter, 56% of Enel Américas' EBITDA came from Brazil, with Colombia contributing 39%, Argentina 3%, and Central America 2%. In terms of business lines, grids represented 51% of the total EBITDA, generation 36%, and the customer segment contributed 13%. This diversified structure showcases the company’s balanced revenue streams from various geographies and segments.
Enel Américas has reinforced its commitment to Brazil by announcing an extensive CapEx plan amounting to $2.9 billion for the 2024-2026 period aimed at improving grid quality and resilience. This investment plan represents a 75% increase compared to the previous year's strategic plan. The company is also actively working on renewing its concessions in Brazil, with final conditions expected by October 2024.
Committed to sustainable growth, Enel Américas added 700 megawatts of new renewable capacity in the first half of the year, mainly in Brazil and Colombia. This led to a 14% increase in installed capacity, now totaling 12.8 gigawatts, 98% of which is renewable. The company is also working on additional projects amounting to 0.7 gigawatts in renewable capacity, expected to be completed between 2024 and 2026.
Enel Américas has significantly enhanced its grids sector, with energy distributed increasing by 7% year-over-year due to higher sales in Brazil. The number of smart meters installed grew by 2.1 times, reaching 1 million mainly from the São Paulo deployment. Despite challenges from adverse weather conditions, the company is focused on improving grid resilience and quality.
Energy sales witnessed a notable 28% increase in this quarter, driven by higher sales in Brazil and increased trading activity. Net energy production also rose by 8%, reaching 10.3 terawatt-hours, predominantly due to increased production capacity in Brazil. Impressively, 97% of this production is emission-free, reaffirming the company's commitment to clean energy.
Effective liability management following the asset sales in Peru has enabled Enel Américas to reduce its gross debt by 17% within six months. The company has been focusing on reducing high-cost debts, primarily in Brazil and Colombia, which has led to a decrease in the average cost of debt from 12.2% to 10.5%.
Thanks to the robust net income registered during this period, Enel Américas is poised to enhance shareholder remuneration through an increased earnings per share and dividend per share. The extraordinary income from the asset sales in Peru, combined with strong operational performance, has paved the way for a promising financial outlook.
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Good day, ladies and gentlemen, and welcome to Enel Américas Second Quarter 2024 Results Conference Call. My name is Victor, and I'll 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, Enel Américas' business plans, Enel Américas' cost reduction plans; trends affecting Enel Américas' financial condition or results of operations, including the market trends in the electricity sector in Chile or elsewhere, supervision and regulation of the electricity sector in Chile or elsewhere, and the future effects of any changes in the laws and regulations applicable to Enel Américas or its subsidiaries. Such forward-looking statements only reflect 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 and increase in the market rates of interest in 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 result of any revisions to these forward-looking statements, except as required by law.
I would now like to turn the presentation over to Mr. Jorge Velis, Enel Américas' Head of Investor Relations. Please proceed.
Thank you. Good morning, ladies and gentlemen, and welcome to our second quarter 2024 results presentation. I'm Jorge Velis, Head of Investor Relations of Enel Américas. In the coming slides, our CFO, Rafael de la Haza; and our CEO, Aurelio Bustilho, will be presenting the main figures of the period.
Let me remind you that this presentation will follow the slides that have already been uploaded in the company's website. Following the presentation, we will have the Q&A session. If you want to make a question, please send it through the webcast or write us to our corporate email, ir.enelamericas@enel.com.
Let me hand over the call to Aurelio, who will start by outlining the main highlights of the period. Aurelio, please.
Thank you, Jorge. Let me begin this presentation by highlighting the completion of a significant step in the sale process of our assets in Peru. During this quarter, we concluded the sales of Enel Generación Perú and Enel Distribución Perú, which resulted in a positive impact of USD 4.4 billion in cash and USD 1.8 billion at net income level. We have reinforced our commitment with our operations in Brazil with the objective of improving our service quality. In that sense, we have committed investments for BRL 14.5 billion in grids for the 2024-2026 period.
We had solid operational indicators in this quarter. Energy distributed increased by 7%, mainly explained by our concessions in Brazil, and we increased our renewable capacity by 700 megawatts during this year. Second quarter results were positive with EBITDA reaching USD 1 billion, which represents an increase of 4% compared to the second quarter of 2023. This improvement is mainly explained by grids in Argentina and Colombia and by renewables in Brazil. Let me remark that for the first half of 2024, our EBITDA reached USD 2.1 billion, 9% higher than the first quarter of 2023.
In the next slide, I will show the details of the completion of the sale process of our operations in Peru. As part of our reorganization process announced in 2022, we recently concluded the sale of our Peruvian assets in a very successful way, resulting a very positive impact for our company and our shareholders. In June 12, we conclude the sale of Enel Distribución Perú to the Chinese company, China Southern Power Grid International, and the cash received for the sale was USD 3.1 billion, and the impact accounted at net income level was $1.5 billion.
Regarding Enel Generación Perú, we concluded the sale May 9 to the British investment fund, Actis. This sale resulted in a cash-in of $1.3 billion and an impact of at net income level of $0.3 billion. These sales totaled an amount of USD $4.4 billion in cash. As we have announced, these proceeds will be mainly used by in reducing expenses, debt and to derisk the pension fund liability in Enel Sao Paulo. We are also analyzing other options for using the remaining cash. Now we only have left one small asset in Peru, Enel Generación Piura, which we expect to sell to fully finalize our exit from the country. Finally, let me highlight that we are recognized this quarter of a positive impact of $1.8 billion at net income level coming from the goodwill generation by these sales.
After this, we will move on to recent developments of our grid in Brazil. In the last months, we have reinforced the relevance of Brazil for our company. We maintain our positive stance on the country, where we have communicated our strategic plans for our three concessions, which will be focused on quality and resilience and will amount to $2.9 billion of CapEx in the 2024-2026 period for grids, which represents an increase of 75% compared to the investment plan of our 2023-2025 strategic plan. Along with this, we are moving ahead in the renewal of our concessions. By the end of June, the authority released the decree with the conditions for the concession renewal. This decree settles the main conditions of this process. And now we have to wait for the final renewal contract that should be published during October of this year. We are glad that the decrease is in line with the latest draft, and it was well received by the sector.
Let's analyze our investment for the period on Slide 6. During the second quarter, our CapEx decreased by 32% compared to the same period of last year, reaching $512 million. This is mainly explained by lower CapEx in generation, in line with what we announced on our strategic plan about being more selective in our investments in renewables. 71% of the total investments were allocated to Brazil where, as we mentioned before, we are reinforcing our commitment with improving service quality. In terms of business line, 64% was devoted to grids and 32% to renewables. Growth CapEx reached $225 million and was mainly devoted to renewables with 60%.
Let's now analyze our operational highlights on Slide 7. In generation, at the end of this quarter, our installed capacity reached 12.8 gigawatts, an increase of 14% compared to the same period of 2023. From this amount, 98% is renewables. Net production in the second quarter reached 10.3 terawatt hours, an increase of 8% compared to the same period of last year, mainly explained by higher production in Brazil due to higher capacity. From our total production, 97% is emission-free. Energy sales increased by 28% during this quarter, reaching 19.8-terawatt hour mainly due to higher sales in Brazil and related to increased trading activity.
On next slide, we'll focus on our development of renewable capacity. During the first half of this year, we had 700 megawatts or 0.7 gigawatts of new renewable capacity located in Brazil and Colombia. This implied an investment of USD 0.4 billion, and it represents a higher amount of new capacity added compared to the first half of last year. With this, our generation matrix is 98% renewable. We are currently working on additional 0.7 gigawatts of capacity under construction located in Colombia and Brazil. As you can see on the right side, we are working on these solar projects in Colombia, Guayepo II, Guayepo III and Atlantico and another solar plant in Brazil, Arinos. All this new capacity will be finished between 2024 and 2026.
Let's continue with grids operational highlights on next slide. Electricity distributed reached 26.1 terawatt hours in the second quarter, which represents an increase of 7% explained by higher sales in Brazil, mainly due to higher temperatures and, to a lower extent, in Colombia. Regarding number of customers, we had an increase of around 400,000 clients in the last 12 months, reaching 22.4 million customers. Smart meters increased around 2.1x, reaching 1 million in this period with an increase due to the deployment in Sao Paulo. Net RAB, remunerated asset base, and net RAB per customer remained basically flat, impacted by a negative FX effect in Brazil.
In terms of quality indicators, we can see that in general terms, we have to struggle again, difficult weather conditions that affected our distribution companies, our metrics. We are working hard in order to have a more resilient grid system. As already mentioned, we have reinforced our investments committed in Brazil and have defined a set of actions to improve quality. In the case of Colombia, if we consider the first 6 months of this year instead of previous 12 months, we can see an improvement in both SAIDI and SAIFI. Finally, regarding energy losses, we can see an improvement in our Brazilian subsidiaries, while Colombia remained flat and Argentina slightly increasing.
Now Rafael will comment on the financial results of the period in the coming slides. Please, Rafa.
Thank you, Aurelio. [Foreign Language] EBITDA in the first half of the year reached USD 2.1 billion, a 9% increase mainly explained by better results in grids in Argentina due to tariff increase, improvement in grids in Colombia and better results in renewables in Brazil and positive FX in Colombia.
On a quarterly basis, EBITDA reached USD 995 million, which is 4% higher than second quarter of last year. In terms of net income, during this first half, we reached a record figure of USD 2.3 billion. This, as we mentioned before, includes the positive impact of USD 1.8 billion coming from the sale of Peruvian assets. Isolating this effect, we reached $0.5 billion in this period, which was impacted by revaluation of debt with CAMMESA that we will explain later on related to the tariff increase and FX differences. Our net debt decreased by 65%, mainly due to the cash received from the sales of Peruvian assets, that will be also analyzed in detail later on when we will speak about debt.
On Slide #12, we will see EBITDA evolution and breakdown. Starting from USD 955 million of EBITDA of second quarter of 2023, we have to exclude USD 3 million coming from disposals of last year, reaching USD 958 million in homogeneous perimeter. We see the generation business decreased mainly explained by hydro conditions in Colombia, while grids had a marked improvement due to better results in Argentina and Colombia. For customers, we saw improvements across all the geographies in which we operate.
With this, we get to an EBITDA of $1.047 billion for the second quarter 2024, which is 9% higher than last year considering the same perimeter. FX had a negative impact of $52 million, resulting in a reported EBITDA for this quarter of USD 995 million. From our operator EBITDA, 56% came from Brazil, 39% from Colombia, 3% from Argentina and 2% from Central America. In terms of business line, grids represents 51% of our total EBITDA, generation 36%, and customers contributes with 13%.
As for our EBITDA breakdown on a cash cumulative basis in the next slide. During the first 6 months, we see that EBITDA grew by 10% in homogeneous perimeter. This excludes an effect of USD 31 million related to disposals completed in 2023. Generation business decreased mainly due to weather conditions in Colombia. As you know, we had a dry season in Colombia in the first half, and this affected our EBITDA. Grids significantly increased due to better results in Argentina and Colombia, while customers business also improved. FX had a positive impact of $16 million, reaching a reported EBITDA of $2.072 billion. From this 58% comes from Brazil, 38% comes from Colombia, while in terms of business, grids contributes with 52% and generation with 36%.
In the next slide, we will focus on the cash flow of our company. Starting from an EBITDA of $2.1 billion, we see that net working capital amounted to minus $0.4 billion, a reduction of $170 million compared to last year, mainly explained by Brazil due to lower CapEx investments, partially offset by Colombia due to higher CapEx payments related to 2023 investments and other actions. Taxes paid during the period amounted to $0.45 billion, an increase of about $0.1 billion, mainly due to higher taxable base in Brazil and Colombia.
Net financial expenses amounted to $360 million, also higher than last year due to higher financial expenses in Colombia related to a [ higher stock ] of debt and FX effect and in Enel Américas Holding due to higher short-term debt, as you probably remind, related to a bridge loan with EFI, with Enel Finance International to capitalize our activities in Brazil. I remind you that this debt has been fully paid in July 2024 with the cash-in that we received from the sales in Peru. So the debt with Enel Finance International at this moment is $0. With this, funds from operations amounted to USD 160 million, an improvement of $0.1 billion compared to last year. After investments for $1.1 billion, including $0.5 billion of growth CapEx, we get to a free cash flow of minus $0.2 billion, showing a USD 360 million improvement when compared to last year.
Let me now analyze the debt of our company in the following slide, Slide #15. Gross debt amounted to $6.7 billion, a decrease of 17% compared to December 2023, and this is mainly explained by the liability management actions that we have implemented after the sale of our Peruvian assets. I remind you that these liability management actions were announced in the current strategic plan presented in November 2023.
In this sense, we reduced our debt in Brazil by USD 1.2 billion and in Colombia in $0.2 billion. The increase at holding level shown in the chart is due to a bridge loan that has been, as we mentioned before, already paid as of July 2024. But we have reduced debt at holding level by $0.4 billion since March 2024 by paying these intercompany loans taken during the year. Net debt reached USD 2.3 billion, a decrease of 65% compared to the end of 2023. This includes free cash flow for minus $0.2 billion that we saw in the previous slide; net dividends paid for $0.3 billion; extraordinary operations also for $4.2 billion, mainly related to the payment received from the sales of our Peruvian assets; an FX effect for $0.5 billion -- positive FX effect, USD 0.5 billion.
In terms of currency and country, we see that Brazil remains as the largest contributor, while the debt at holding level represents 20% of the total. However, this 20% has already been reduced as we already paid all the debt of Enel Américas Holding, except for the Yankee Bond. I remind you that this Yankee Bond amounts for USD 0.6 billion [indiscernible] at the Enel Américas holding level. Finally, regarding the cost of the debt, we can see a decrease for this period going from 12.2% to 10.5%. This is mainly explained by our liability actions in Brazil and lower interest rates in both Brazil and Colombia.
On the next slide, Aurelio will conclude this presentation with some closing remarks. Aurelio, please proceed.
Gracias, Rafa. We successfully concluded the sale process of our Peruvian assets with a significant impact in cash and net income. We are reinforcing our commitment in Brazil by implementing a strong investment plan in grids aimed to improving our quality. We have solid operational indicators in this period. In grids, energy demand increased by 7%, while generation, we have increased our renewable capacity by -- in 0.7 gigawatts during the year. We had solid operational results and maintained a sound financial position, which allows us to execute our CapEx plan.
Finally, let me highlight that thanks to the record net income registered in this period, we'll be able to significantly increase the remuneration of our shareholders through an important increase in expected earnings per share and dividend per share. Please, Jorge.
Well, thank you, Aurelio. Thank you, Rafa, for participation. We will now begin the Q&A session. [Operator Instructions] We have received the first one from Fernan Gonzalez from BTG. It's two questions. The first one about distribution segment in Brazil. What exactly has changed relative to what was announced in the latest strategic plan in terms of focus or CapEx? And could you elaborate about the reasons behind the negative effect on the RAB in Brazil?
Yes. Thank you, Fernan. Well, basically, what we changed in terms of CapEx is that we are concentrated -- well, the total CapEx didn't change according to the proposed -- to the announced plan. But we direct or we are designating more CapEx to -- especially to maintenance and reinforced equipment in terms of grids in order to improve the quality, improve the resilience of the grid. Also, we are doing OpEx actions, especially in tree trimming, especially in maintenance during this period, especially during the winter, the Brazilian winter in order to have better -- improve especially our resilience in terms of grids.
There are also some activities in terms of in-sourcing activities that we see that would be better managed with the internal resource than external resource. So this is a process that we are doing it in a very careful way in order to internalize the activities that we see that could be improved during our direct management.
And also, last but not least, we are also reinforcing our monitoring of the region, especially the extreme climate events, our communication planning plan and also our especially monitoring the impacts in the region that we are facing.
In terms of RAB, the main impact is related to exchange variations.
Yes. That's part of the impact.
Rafa can comment a little bit more, but basically related to the FX.
Yes. As you mentioned, Aurelio, thank you, Fernan, for your question, but this is an FX effect. There is no deterioration. There is no negative, an operational negative effect on the RAB in Brazil. This is just a translative FX effect.
Thank you, Aurelio and Rafa. The next question comes from Francisco Paz from Santander. And it says, regarding the company's divestment plan, after almost completing Peru's exit, what's left from the asset? Are you still considering to sell Enel Ceará?
Thank you, Francisco. Well, the Enel Ceará is on hold, as we announced. We are passing through a very important discussion as we presented, related to the concession renewals and so on. So by now, we are -- we put this process -- we stopped this process, put on hold. And we are confident that the concession renewal is going in a good way, but we still needed to see the -- and work also and follow the details of this process. But for now, let me emphasize that it's not -- we are not -- this is totally on hold. The second question is?
Then another question from Tomas Gonzalez. Two questions. One, would you please repeat the amount of debt payments you already made and clarify which debt was paid in Brazil? And second, which other debt you plan to reduce going forward? Is Enel Sao Paulo pension fund debt the main target?
Rafa, you can comment.
Yes. Okay. Thank you, Aurelio. Thank you, Tomas. This is a very good question. As you know and as we mentioned before, we are completing the liability management actions that we announced after the completion of the sales of our businesses in Peru. So we are doing the liability actions to reduce the most expensive there that we have in our subsidiaries, particularly in Brazil.
In the current strategic plan, in November 2023, we announced a liability management action or a liability management plan of about USD 2 billion. And partially, this plan has been already completed. But I repeat, substantially our focus is Brazil to improve the situation in Brazil and to reduce the most expensive debt that we have in Brazil, in our operational activities or operational subsidiaries in this country.
In relation to the Sao Paulo pension fund, debt the main target? Okay. The idea on this was also announced in the current strategic plan. The idea is to finalize this passive fund, let me say, in the next coming years. We have already completed a portion of this passive, and the idea is to continue reducing the level of this passive that we expect to conclude by 2026 substantially. The current level of this passive amounts to USD 1.2 billion substantially. And I repeat, this is part of our actions announced 1 year ago and part of the best uses of this cash of proceeds or of this cash-in obtained from the sales of our businesses in Peru.
So no news here. Tomas, this is a very good question, but no news. We continue with the liability management plan for Brazil, also for the pension fund. And for the moment, this is the best use of discussing that we have identified in the short term.
Thank you, Rafa. Next question comes from Felipe Flores, from Banchile. When are you planning, expecting to completely exit from Piura in Peru?
Well, thank you, Felipe. Our plan is we are working on restructuring our gas supply for the thermal plant with the Peruvian authorities and so on. We expect that this process will be no longer than 2025. According to our estimation, it could be not longer than this. But being, let's say, more conservative in terms of program, probably at the end of 2025, it will be concluded.
Thank you, Aurelio. There's another question from Fernan Gonzalez. Has there been significant changes in Argentina for the sector? Or has the government flagged to you what they plan to do in the future?
Yes, Fernan, it's a good question. We are seeing advances in this process. We had a very important recognition of inflating our VAD in the beginning of this year of 320% of the VAD of the distribution, which was good.
There are some -- of course, it's not -- there are some more reflects that the government is working on the impact of inflation and so on. But we are confident that we are moving, I think, the sector is moving to a good direction. Let's see, it depends, of course, depends on the details and other things that's moving for the coming months, let's say. But at the end of the day, we are seeing that there were progress, there were good movements. The government is more open for discussion. This is also good. But there are challenges, challenges in terms of it's not easy to solve all the problems and all the issues in months. But we are confident that it's moving to the right direction.
There is a clear signal that you asked in our perception is that the government wants to solve the problems and to stabilize the sector in the coming months, but you need some results and some actions in order to fix it. There are many years of problems that you cannot solve in a few months. We understand this. And we hope that this movement of progressing the solution will reach a good scenario. And in our case, we have the concession distribution of Edesur, south of Buenos Aires, and we have also the concession of generation assets of Chocón. But this one is coming to an end. We are supporting the government operating this concession until there is a new resolution or a new decision of what will happen in a new auction. But again, we are being part of the help and support and being part of the solution, and we are confident that this approach is the best one for now.
We have a question from Sebastian Gallego. Could you comment on the operating environment in Colombia? Particularly considering the ongoing solar projects under construction, is there any plan to divest any assets in Colombia, particularly on generation side, thermal coal? What is the outlook for La Niña in Colombia for the next 12 months?
Thank you, Sebastian. Well, there's no plan for divestment in Colombia. Let me start with this. We are still confident the country has the very good checks and balances, also in terms of legal in respect of contracts and so on. So in our view, there's a good regulation. We know that the country is passing through some discussions in terms of reviewing the conditions of supply and especially distribution, some in generation, but we are still confident that's a good country to be in, Colombia.
We are seeing that for development of projects, there are some concerns about the delays in terms of authorizations, in terms of licensing that we think that the government should push a little bit more for this. And I think the government, especially the declaration of the government. The government is in the planning system, they are focused in renewables, which is aligned to our mission. The key point here is to be more agile in terms of license and permitting, and we see some delays and some concerns about delays. It's not something special to Colombia. But Colombia, I think it needs to improve on this matter of permitting.
In terms of La Niña, we had a huge crisis in the beginning, let's say, that lasted finally the end of last year and the beginning of this year. But now the conditions, they are improving a lot in Colombia and we see a recovery in the reservoir still spaced for recovery. But it's difficult to predict more than 3 months in terms of hydrology. But for now, we are seeing some recovery, and it's been good for the system.
And the key point here is that the big question is that for the long term, probably Colombia will need more capacity. So join the first question with this one of how can -- how is the permitting moving or how the solar energy and wind with this La Niña season? I think it's very important to increase the capacity of Colombia in order to avoid a future [ grid ] if you have a worst climate or hydro season situation. So for the medium term, it's important to increase the capacity of Colombia because Colombia will need in the future independent, if you are having a La Niña or El Niño season, Colombia will lead this capacity. So it's important to be prepared.
Thank you, Aurelio. We have the last two questions. First from [ Stephania Mosquera ]. Do you have any update in terms of dividend payout for the first 3 quarters for the provisional dividend?
Thank you, [ Stephania ]. Well, the payout for next year is established. I think Rafa can comment a little bit.
Yes. Thank you, Aurelio. Thank you, [ Stephania ]. But substantially, just to remind you, [ Stephania ], the guidance that we have for 2024 is USD 1.1 billion in terms of group net income. We are having an extraordinary effect, as we mentioned during the presentation of USD 1.8 billion due to the sales of our businesses in Peru. So with this, for 2024, we expect a result close to USD 3 billion, but this is something that is going to be paid, of course, in 2025 so for the first 3 quarters for the provisional dividend. So I think that the extraordinary effect of these sales in Peru will be fully considered substantially because this is something that has been registered in June 2024, and probably USD 0.7 billion, USD 0.8 billion from our operational activities. So 15% of the total amount will be paid in January next month -- next year, sorry, in 2025, in January so we can do a calculation of 15% of our total base of dividends of about USD 2.4 billion, USD 2.5 billion total base.
Thank you, Rafa. The last one from Fernan Gonzalez. Can we assume that the use of the remaining cash won't be defined until the next strategic plan? Or could you decide earlier?
I didn't get the question.
The remaining cash of the sales of Peru, the amount that we have remaining. And we have said that we are going to analyze later the use of that remaining cash. Are we going to announce it in the strategic plan? Or can we announce later?
Yes. Okay. Thank you, Fernan. Sorry. Well, we will announce in the next -- probably the next strategic plan, which is...
Which is at the end of November, Aurelio.
At the end of November. So we are, as we said before, we were focusing in this closing this operation. Now they are concluded, and we are working and building the next strategic plan with this new condition. We are still seeing cost of capital interest rates higher in Brazil and so on. So there are some other elements that we are analyzing, also the prices of energy for renewable capacity. So we are analyzing all these elements and probably during the next plan...
[indiscernible]
Exactly. If any, we will announce. Thank you.
Well, thank you, Aurelio and Rafa. Thank you, everyone. With this, we conclude the results conference call. Let me remind you that the Investor Relations team is available for any doubt that you may have. Thank you for your attention. Goodbye.
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.