CELSIA S.A. E.S.P. (CELSIA) Earnings Call Transcript & Summary

[Audio Gap] [Operator Instructions] Thank you very much for being here with our conference as follows. We're going to give the floor to Ricardo, leader of Celsia. Go ahead.

Thank you very much. I think of person who have been here. Welcome to this fourth results in 2020, and it reflect the consolidator the answer of 2020. We're going to read that really briefly related to the presentation, and we're going to have a summary. We're really happy and not only because of the financial side by way of the situation, of course, because of our colleagues, our customers, our vendors, in general, our ecosystem of operation system. And I would like to start the highlights. First of all, with our partners, we have -- with this COVID, we have real-life we have COVID has been overall of it. Just 1 casualty at the beginning of the pandemic, but otherwise we had also operating to -- operate an electrical business had some complications as well with these biosecurity restrictions, our control centers, our plants of generation, and to be able to establish protocols with biosecurity have been a challenge, but thanks god, we have done. In addition, we have already previously measurement related to environment and because of the culture of Celsia as well. Because you know that it is very competitive and we're working as well in as well. And thank god, we proved this in a big quarter related to the excellent indicators, so -- which means that our colleagues, our line -- first-line of defense in the COVID, we had a really good year, and thank you very much to all them of the extraordinary results. We are very thankful to our customers. Our customers of home because they were afraid because as they were the let down, if there were something that obviously started an amount of consumption and everybody was kind of wary because of the condition, we have a really complex handling all this project services [indiscernible] we achieved -- we delivered a release. We're getting is have for the amount of subsidy that it was really important and we could accomplish it. We gave all of this to keep active service. We have -- we have a good level of year. To keep these ecosystems we needed where every single word they're going to have with their vendors, we gave them a payment in advance. We're going to took about 2.5 with vendors. A really beautiful program. They all Argos Group, because we're really enthusiastic about it, because we still believe all the vendors more than a vendor is really ally and partners of the company. If you see this consolidated is very well. And what about the financial side, you already saw results that we're going to see in detail with Celsia. But there is something that we are really enthusiastic about it. We kept the same -- that level. We just reduced more than 200 points, because we were working about the inflation as well, because we're going to have some achievements as well. We -- low like 5% of the total inflation as well with [indiscernible]. So our ratability and that got us well. We keep it. We're really enthusiastic about it. The company continues on that line. And we announced our dividend, which we do believe is very good. We can see a real extraordinary 1 and COP 1 million. And we were sharing with our stockholders like that story, we are having the result for many years and achieve a very good value in this set. So it's just a surprise for our stakeholders. But this year, with the financial results -- very good financial results, and the debate the Board of Trustee, there are too many stakeholders. Because more than 700,000 stockholders -- small stockholders. So you say, well, most of them, they could be with some complication, more than 70%, they have 50% about our shareholders, because we're talking about COP 60,000 million. So that we hope that it is the price of our stock could keep the situation, we have more than 7%. And when you see the sort of return related to the action of the latest 5 years, so the result has been extraordinary. We about by 50% of the total return of the shareholder, year by year. So we are really happy for theses results and to thank the shareholders, because they have been together, they want to continue with us. This was a huge headline. It was a really good headline. The cherry of the cake is all the things the social works that we have to working to have execution really generosity way you see that as well for the main hospital as well was at Valle de and have more taken -- we did some donations as well, the packages at the beginning of the pandemic related to the employment for example. So we did a very good at Celsia. So I gave [indiscernible] as well. In order to to deliver resources to COVID, so we're going to have like 1 million of in this program, whether that's a program. So this is a positive answer. Thank you very much for all of the tireless work and dedication helping our customers sectors that have been affected by COVID-19 over the past year. I also thought all our suppliers for their contribution that allows us to our customers we are reliable in [indiscernible] territories and maintain the progress in the implementation of our project. 2020 was a year full of challenges and a regular impact into the visitation of this entire ecosystem. We were [indiscernible] in several of our projects to improve the service and increase our offer as well as in the purpose of turning our customers. As we have told you, we're committed with to the job creation, set they have more than 2,100 employees. In 2020, we joined 186 people, who have received apprentices. And can you imagine that in the middle of this pandemic. We increased our apprentices and people in order to reinforce the areas where we are. In Celsia, we are convinced that companies and the private sector are essential to revitalize the economy and recover the part of growth at. During the framework of the Argos Group social value creation program as an additional decision to support and as in January, we decided to [indiscernible] 45 days in the payment of their deals. 1 year ahead of the fair time at [indiscernible] national government. But I want to tell you, we just gave some payrolls in advance in March and for the previous year to 634 vendors. I'm not wrong. And we gave them a payment advance for them to validate days. This problem will be [indiscernible]. In 2020, we had a relief for implements by the government [indiscernible] in Peru, where these benefits are of COP 34 billion and were initially funded by the company. In the fourth quarter of the year, the [indiscernible] were enabled as the credit to finance the relief programs were processed. By the end of the year, almost COP 31 billion have been disbursed by the [indiscernible] and rate mechanism. The customer service team also offer finance alternatives to customers. We have pre consecutive debt for COVID, so that they could continue to enjoy the power service. The tariff raised that was in effect it in March and December, represented about COP 134 billion less energy put to the charge. 27% of that amount is explained by the Tolima market. This value will be taken to the [indiscernible] by making use of the tariff path over a period of 6 years. At the end of the year, the company was looking to monetize the portfolio related to the tariff path and other client financing programs and thanks to the good collection history, we had managed to sell the portfolio to the IDD, which allows us to free up the resources of about COP 100 billion. It was really interesting [indiscernible]. Another important fact that has a positive effect for our clients are the investments we are making in the distribution and in 2020, we advanced continuing investments of COP 195 billion and expansion for another COP 193 billion. We paid a special attention to Tolima, the construction reimbursements and modernization of structures to equip and control systems to make them more reliable and safe. Some of these actions has already been positively impacting the quality of the energy service in the region and the service is perceived. There will be excellent in these coming years. The quality of service indicators in the Cauca valley, they are performing in the best of the country in Tolima, where we have only been operating for 20 months. We have already begun to see significant improvements in the service, and we are convinced, that we'll be able to achieve in 2 years the quality that our customers in Baja Cauca already enjoy. The availability of our distribution assets are maintaining 99% in both Bahia and Tolima. The indicators remain positive. Complaints about the quality of service continue with really downward. The complaint, because of the quality service, they are going to reduce them. So we have achieved a reduction of 2 during the fourth quarter compared to the same quarter of the previous year. So this shows that the work really hard job that our teams have performed, customer service and distribution and transmission are giving the result -- efforts to deliver a quality service and [indiscernible] have made it possible to recover collection levels. The first quarter, we reached an average for collection between Tolima close to 99%. And with -- so just that we had historically even in January and February shows as this year that definitely, this portfolio was recovered. We remain committed to the supporting our covenants and within the framework of the contributions of the Argos business as well to strengthen the [indiscernible] system to support the most renewable families. We jumped different initiative worth COP 10.89 billion and under this [indiscernible] with you. Our good energy ratio in 95% of the country and 92 municipalities, delivering an per unit bioprotective supplies, hospital equipment, water and packaging. We are working on several public-private initiatives aimed and strengthen the health care capacity in the pandemic. Given this year, we are just starting to work on some contributions and in Tolima for logistic of the vaccine processes. And their logistics have and availability and asset. Within the tax work programs, where we ensure that the tax that is generated in the territory state in the territory, we executed in Tolima COP 4.5 billion in [indiscernible] and/or enteprise that benefited 10,000 on children and [indiscernible] education. With more than 191 of this in the municipalities of Prado, Villarica, Villahermosa, where the execution of works, the Department of Suarez, La Betulia [indiscernible] our improvement of 10.2 kilometer footprint work by COP 24 billion, that will benefit more than 7,600 people. And we had with a construction of 7.5 kilometers worth COP 20 billion with [indiscernible] proving 2.56 [indiscernible] worth COP 80.4 billion that will benefit 425 -- 425,750 people by 2021 [indiscernible] already have COP 35 billion to projects, and our desire to be able to pledge 50% of the tax from this program annually. So which means we're going to use the top of these taxes work as well, and we are working in a really good, beautiful configuration and new programs on project, will be able to support those communities where we are working. On the financial front, we achieved cost and expense savings of about COP 52 billion. By the end of the year again the COP 45 billion target we have set for ourselves in April. So it was possible to postpone COP 307 billion capital investment to be the call over to Tolima. We take into account the good service provided to customers. In the execution of projects, we tell you that at the end of the year, we inaugurated the first solar farm in Tolima, built on a land of 17 hectares where those land that we have in the previous [indiscernible] was persistent that serves the energy needs of our customer Arroz Diana. The Celsia Solar Farm has an installed capacity of 9.9 megawatts, and produces clean energy equivalent to the average consumption of 6,000 Colombian families. The farm is composed of more than 37,000 panels and will stop emitting 194,000 tons of CO2 in 25 years, contributing to take care of this environment for this in mitigation of the effects of climate change. In the same way we [indiscernible] Celsia Solar 9.8 MW in Candelaria, Valle del Cauca, Pollos Bucanero of the multinational [indiscernible] as well. The site is going to have the effect of the economic activation of the Department and take a look. Since the improving employment opportunity to the highest peak of its construction to 140 people at the [indiscernible] local work, for example, 33% of this -- 23%, they were women. They performed different types of assembly of modules, mooring the structures, which the more than 33,000 photovoltaic panels are located. Breaking [indiscernible], and we have this in this electrical industries, we have had this kind of reaches as well. We need to start giving more opportunity for women. The thermoelectric project, El Tesorito, 200 megawatts in which he hope to give permits to [indiscernible] civil works for access to the project and the construction of the Sahagun substation of 500 KV where we were connected to national system. From our social environmental management, we're giving priority to lot employment at construction and services of the region with the participation in the follow-up table with the community. Was going [indiscernible] localities have been supporting very well. The 11 generation equipment, both the motors and generators have been tested and are ready to dispatch from the factory. We continue to work hard to go into operation by the end of this year to access the benefit rate into the auction charge of January this coming year in order to have access to 1 year before to the benefits that we have seen here. We inaugurated the PCH in San Andres de Cuerquia, was just the beginning of March or April, the last year. We generated 40.9 gigawatts per hour, which leaves us very satisfied, because it's not only an sustainable plant that delivers clean green renewable energy by showing a plant factor of 90%. As you know, including in the results reported on environmental and government chapter where we reflect the positive impact we are generating our commitment good practice as well. We communicated [indiscernible] a 100% of our energy generation was renewable with a condition of 96% between with wind and solar. We invite you to consult the -- and well, we're really happy with it. I guess I hope will be 34% that we're going to see in some years. Then Esteban will tell us briefly about the financial aspects of the company in the fourth quarter. Thank you very much.

Thank you, Ricardo. Special greeting to everyone. As you know in the general construction and financial results can be found in the reports as published on the Investors website. And then regarding the results, it's important to consider that into 2019, the company had all the actions balanced portfolio would allow us to increase profitability and developing avenues of growth. In that year, we aquired from the distribution assets and the marketing business in Tolima, the sale 3 [indiscernible] thermal plant and the transfer of energy transmission access to the [indiscernible] platform. Likewise, in the last quarter of 2020, there were decreases in our operational results in [indiscernible] and BLM by COP 107 billion. That's all related to 2019, now we need to take into consideration, understanding figures of 2020. Despite of the efficiency achieved in recent years and the efforts to guarantee efficient income to maintain the operation, the reality of the market and the effects of the pandemic, energy demand in Panama made a level economic cash generation, the lowest -- the lowest in the recent history. The EBITDA was less than $8 million and the net loss was $19.3 million. Even this reality at the end of the year, we agreed with the government of Panama partnered with 48.76% of the company. In a negotiation process with creditors, suppliers and carriers for the some of their assets and liabilities. With these orally and in all the clients of the company making use of its assets will lead to the BLP company ceasing to [indiscernible] the reliability of the Panamian energy system within the framework of the agreement. And this part, Celsia will carry out of the purchase of some assets to the company are we going to be incorporated to the Celsia. As a result of these agreements, we classified to the December 31, 2020, in the consolidated financial sales through [indiscernible] associated with the disposal of the plan were initiative available for sales. During this 2021, the activities associated with the disposal plan. were initiated with the signing of the contract for the sale of coal of the reparation of an ability of the [indiscernible] cycle. Some weeks, we're not delivering or as not available toward dispatched. After the previous context, the general, let us then turn to the results of the quarter, we're going to talk about the quarter. Consolidated revenues reached COP 897 billion 7.2% lower than those recorded in the same period of last year, had an increase of 2% adjusted for the operation described. In 2020, revenue stood at COP 3.54 billion with a decrease of 5.1 compared to the previous year and an increase of 11.6% in. Colombia accounted for 89% of the consolidated [indiscernible] of 11%. The consolidated sales cost of the quarter was COP 598 billion with a decrease of a 0.3% compared to the third quarter of 2019. Sorry, for the quarter. The 2020 consolidated sales costs were COP 2.34 billion, down 9% for the previous year. The administrative expenditure for the quarter was COP 64 billion with a 24 decrease over the previous year due to the reversal of the contribution to the SPD on the third quarter worth COP 21.075 billion. Despite the reversal, there is an increase of 3%. And in 2020, in line with that increase, the inflation [indiscernible] in 2019, spending total COP 303 billion, probably 2.2%. We did this reversal because of the sentences done we had at the end of the year, was just the restart operations with the articles of the plant that they see reference of this contribution. In the fourth quarter, the consolidated EBITDA reached COP 335 billion with a decrease of 11.4%, compared to the same period of the previous. We're talking about operations growth by 5.5% originally, the EBITDA 84.5% percent of the EBITDA by adding COP 284 billion of runrate contributed with 15.5%, reaching COP 52 billion. We say, for example, for the business, the consolidated business, we reached COP 174 billion. The distribution and marketing, COP 100 billion and COP 61 billion. The consolidated EBITDA for 2020 cumulated, reached COP 1.23 billion with a decrease of 2.1% and increase of 17.9% adjusted. The EBITDA margin was up 35%, represents an increase of 107 bp compared to the previous year and 186 basis points adjusted. So we already know that we're going to be just effected. Financial spending recorded COP 103 billion with a decrease of 10.3% over the same period of the previous year. And includes COP 29 billion of evaluation of the portfolio sold to the IDB. As Ricardo was saying, leveraged in that path of portfolio, we did the portfolio gathering to the [indiscernible] as well because there is a portfolio, we were working to recover in 6 years. And from that [indiscernible] COP 25 billion were associated to the recent preparation of that thing. The other revenues reached COP 20 billion, including come from the second transfer of the [indiscernible] related to the expansion of the stress level Tolima . However, it is much lower value if you compared to the COP 342 million in the fourth quarter of 2019 for the pretax profit made of them to [indiscernible] for a profitable, it is COP 334 billion. The profit tax provision was COP 6 billion, lower than 58.2%, of course, because the previous year, there was tax [indiscernible] generated by the power transaction. In 2020, the provision of tax was COP 200 million, distribution of 43%. In the last year, [indiscernible] and for application of COP 15 million as well, we were applying taxes to [indiscernible] qualified project because of the Ministry of Science and Technology [indiscernible] and obviously, the industry and trade and main projects. We talk about our debt. The net consolidated income is COP 86 billion, [indiscernible] of 54% related to the previous year. But in fact, an increase in of maybe 82% adjusted operational when we do this kind of situation as well. 2029 the net profit reached COP 338 billion where as diminishing 43.8. When we discount the mandatory interest related to the indx that we're talking about a diminution of 52% or related an increase in 13% adjusted. And finally, for 2020, we'll talking about COP 249 billion [indiscernible] 43.3 related to the previous year and once again related to the adjustment. We are talking about 52% of the operations. So related to the [indiscernible] numbers, we closed the year with COP 3.86 billion, and we're talking about 2.8x based in 2019, the valuation related to the Colombia peso was COP 47 million in company [indiscernible], which is consolidated low related to COP 400 billion related to 200. Next is about Caoba. This [indiscernible] recognizes in the liberation of the meant we contributed to the results to report company, we're talking about COP 2.5 billion main digits of these business as you know is the transmitting platform with Cubico, we're talking about COP 33 billion, big quarter, was COP 33 billion, and the profit -- and the net profit, cop 3.1 million. It's very important to highlight the debt of this profile. We try to optimize the setup, the assets, and we closed 6.6x. With this [indiscernible], I close everything related to results. Of course, a highlight importance workout for those transactions. Because that's really important for the 2018 strategy, and we need to understand the context in order to see what's going to happen in the future as well as and what happened in 2020 as well, because we're going to work hand by hand of [indiscernible] of increase basin economy and the development of our region.

Okay. Esteban, thank you very much. We see the results are very good results. So we have been working in the same line with results. And I would like to highlight a real headlines, first of all what we call for the 2019 is [indiscernible] decreased 17.9% [indiscernible]. The net profit consolidated, we raised -- to raise [indiscernible], that's why lowering this company Celsia, where it was going to be modern, sustainable or benefits of our customers. We have been asking about [indiscernible] we are land for us. We have to mention in the past that we have seen with that important where we acquired the [indiscernible] assets. This asset it was the whole acquisition. It was attached to this year to have a very [indiscernible] definitely the conditions of the market and technology of 40 years, we call they are just leave in the plan in size [indiscernible] the ambitions of our shareholders, because we already have clean metrics. Panama, for example, we have a renewable matrix. All of these sort of these elements will Esteban was telling, it's worth to have [indiscernible]. On the other side, I do believe -- we see in 2021, I do believe the improvement of demand in energy is going to right, it's going to be aligned with the economic increase in and we think that we have a generation of energy is going to be really high because of the [indiscernible] presented in the system like more weighted than we expected. In contention to [indiscernible], we're going to have a better condition. Let's say, like natural acquisitions as well. Related to investment, we're going to start continuing to deploy some resources. We complete COP 1 billion. So we're going to reach more than COP 100 billion. And expansion, we're going to be about COP 552 billion in addition. [indiscernible] fairly the investments we [indiscernible] operation on Tolima and [indiscernible] for improving our service quality. In the platforms, we have a very important mentor. First of all, with Cubico platform that we have solid platform, we want to invest COP 1.3 billion to figure out more than 50 firms in the whole country. We need to start working around 600 megawatts in the transmission platform, doing some an investment superior to COP 200 billion in execution of 3 blocks. The ones that we already have in Toluviejo, which is the way of, Tesorito, has been to connect sort of into to the system at the level projects tension of [indiscernible] Tolima. So we have to talk about investment of COP 600 million, that we need to start closing in the [indiscernible] investment, you're going to have talking about COP 600 billion. Development, we hope to have of this operation. So when you ask at the all own investments and investments in the platforms that we have been getting these very important shareholders as where it because I remember for another 50% of the solar platform, distribution platform as well [indiscernible] and we have some partners to electrical and Cameco in the Tesorito project. So when you add all of this assets, we are deploying CapEx COP 3.6 billion, which is a huge challenge. This is for deployment [indiscernible] going to be very interesting with all of we've guided here and the operational expenses here. Facing DLM, we hope at the end of this year, we won't have any problem with it. And it's very important to continue tracking during the whole quarter, all the plans that we have in the plan. In 2021, we will be focused on the [indiscernible], the net profit will be hope will have a very familiar or similar behavior to 2020 related to the closing in 2020. But as part of the guidance, we are hoping. I guess there is a question related to our shareholders related to the [indiscernible], so Santiago Arango is our lead leader here to verify integration. So we will match our [indiscernible] March 24 considerating restrictions preventing of the COVID, of course. And the shareholders, they would be able to attend the assembly. We can represent related to the ones, who have been here is going to be a present as they represent shareholders, similar to the previous year. The shareholders that can get access to this information www.celsia.com. We're going to have access to these procedures. This procedure, you have already approved by the public situation that allows it to happen this winter to facilitate these particpants. Well, we are [indiscernible] because we were joining [indiscernible] and every single thing we're establishing to be able to invite 400 hundred, 500 people, who were attending, but what appeal is this situation, but well, because it's our health. We're going to have a proposal for the assembly. In this case, an [indiscernible] of COP 56. The dividend will be only 6% because of many analysts and allows us to have 100 point basis related to the previous year, keeping at that level. The total dividend per share COP 80 billion and is going to be turn dividend as well. We understand this 2020 brought out too many challenges and difficulties. However, we could accomplish with the financial objectives that we were asking to deliver 100% and updated around in profit as well. So it doesn't affect growing situation. That we have acknowledgment recognition to the shareholders. I talked at the beginning, in order to be needed some [indiscernible]. But I want to -- so the dividend can check-in. Some investments in Celsia. In 2020, we got some results really solid base in our business. The [indiscernible] been implemented. We have strengthened the capacity of creation and value. And in the last 5 years, the [indiscernible] consolidated of the company has presented an in growth a year of 20.6 by size, the price of the stocks in the same period, have been evaluated average 11.1% yearly, more than 620 basis points. And the total profitability for shareholders [indiscernible] 15.7%. I mean, like an average of those 5 years, which is going to be 800 basis points over the closed. So I'm really happy because of this we're very proud here with the dividend and have shown us the delivery of the latest years, 3.3% in [indiscernible] as well. Related to this well, we have business [indiscernible], and we are ready to answer those questions if we have questions.

So Ricardo, we have all the mechanism for the questions and the Q&A session as well and we have just one from Mr. Cardona, as you were mentioning in this for 10 of this year, the shareholders, we will be able to advance in a virtual way and represent our own actions?

Yes. Yes. Santiago is already there. Good morning, everyone. And basically, as you said Santiago, unfortunately, because of the conditions, we're not going to be able to be there present and looking to the year is going to be 100 [indiscernible] quotations and what about the communication. So we were working financial [indiscernible] 2 main things. And you leave this meeting with some representatives. So we're going to do this year with the representatives today. Precisely, we published the common there are instructions. And we have our line and an e-mail to clarify any doubt. They just suggested, so we're going to be pleased in order to be to the [indiscernible]. So we have also with these 2 [indiscernible] from Valores Colombia. Please go active your mind.

I would like to understand that [indiscernible] to the integration where we [indiscernible] the assets of Tolima, we had seen an improvement in the margin of improvement in quality, if you, you do a comparing someone that did it that they were talking to the depletion, lost level, when we talk about 11% in '22. I would to understand the level of EBITDA per because of the objective of 100 to 150 per customer. I would like to what about the objectives related to losses for this year? And maybe that plan that you mentioned of 10 years plan, what is the objective in 10 year's time to understand of that intervention, has been [indiscernible].

That's a very good question. I really thank you. And in Tolima, we have been improving better than the business plan. We go better than the business plan. That decision was really aggressive. So I believe it is something that we're really happy. But we're going to talk about 2 chapters. The chapter of the service quality, we have a commitment, regulatory commitment, which is an improvement of the 8% of the quality indicators. We are better than those are quality indicators. Even we were talking about the end of the previous year, we do see . We were just operating. We have been doing having the change of operational system. We didn't have any more work enhanced as well. So it has been an issue as well, and maintenance as well. So all of this, combined with all of these dynamics, we just, and that is what we contend to overtimes. The results that we have been working related to this previous year quality, I would say, we're very going well. [indiscernible] Tolima that we received, we're talking about a really good way the average. The huge challenge it has been the side of our customers over there. This pandemic without, it has been really hard that we have this factoring was already hard way. The handler season where as a steady and. We kind of anxiety most of the customers we try day by day, investments and we hope this year to have some improvement as well even [indiscernible] reduction in Tolima, for customer. [indiscernible] We are working on that. And as I told you the business plan of accomplishing and we are talking about this.

[indiscernible].

We go so far as well, because improvements with the reliable and [indiscernible] incidence will be placed in those levels that is statement to remember about losses, in the Tolima department, but let me check, to be very honest. That's correct. 15 or 8 or in 51. Yes. I was the one. Thank you. Let's say, this year, we're talking about obviously the investments of the previous year, and we hope that the improvement was really considerable in this 2021 and 2022, because related to the losses that we saw in [indiscernible]. We're going to see the expectations of losses closing the year.

Okay, Ricardo. Thank you very much. I would like to add something like to DLM, we could hope, I remember in 2019 is the [indiscernible] because of the contract. And now that the asset goes to sell and as you already mentioned it is possible we will see that impairment related to the decision of the access, because there is a variation of the initial plan because of the active.

[indiscernible] 2019 not because of thses methods of the actions, of the assets, not related to the crisis. We are having [indiscernible] this year because we're talking about the asset as we are looking we get more information. I would like to not talk about our base general guidance. is mention of [indiscernible] because of the BLM, I think [indiscernible].

[indiscernible] we are going to give the floor to Roberto Paniagua.

I have a couple of questions. First of all, it is related to -- if you can deliver some information in a closing of 2020 related to the assets and heritage as well.

Yes, of course. Assets of Caoba, which is going to be with that of COP 190 million in year from many will be in the quarter to be predictable because of the business model that they have. This year, we have some increase as a result of that asset Tolima and in time because we're going to start creating the new exits as well.

Perfect. On the other side is related to distribution. Can you remind us in Caoba and resources to important data related to the regulatory plan, what is the minimum amount of this?

[indiscernible] it was related to COP 1.4 billion. Other 5% is the minimum investment. Our investment plans in Tolima exceed that minimum average as we have some years that have some variations, upper the 8% where we suppose this [indiscernible] to keep the tie-in. These kind of things [indiscernible] We're going to deliver to you. We're about COP 34 million.

And that alignment, I remember, CapEx 2020 went on COP 3 billion by the closing year in [indiscernible] what kind of investment was that because of this 2021?

[indiscernible] there were some negotiations. We were establishing the company, dealers and we were executing the payment, and were talking [indiscernible] to them. If we talk about the previous conference that [indiscernible] as well as Tesorito [indiscernible]

Ones that were included in 2021 as well. 2 things, in addition, there is a commercial debt and it is related to the close of the year. And then can mention those in the presentation, how would be the presentations to the closing of the year.

We had a very important reduction when closing 2019 because we had really intending payment of on the price of the asset. And that accounts the third quarter of the year, but it starts in the first quarter, we have a reduced variation with 2019. We had a reduction of pacing that we closing them, and that matters -- specific matter. In terms of -- I'm talking about the noncurrent assets to some repayable debt as well. We had to go ahead to those questions in detail. We will [indiscernible]. And we are the for in detail.

And we have questions. We have the Q&A in [indiscernible], would like to have more information very project?

Yes, sure. [indiscernible] to be asking because we're ended up with because of the suspension of the license. We net -- we working in the first quarter of 2021. We want to be able to make petitions related to this, what's going to happen with this. I know we're not working is by ourself. And we do it someone [indiscernible] it is going to be a monetary participation. We're going to be some [indiscernible] projects like everything. We are in that gap. So we cannot tell we have much information to challenge we share. We have a.

[indiscernible] we have the profitability years or 5 years' time. To be a believer that are today.

Yes, sure. We can do so.

And the next question I don't know how to us very well, Santiago. I have the data of process that not the data [indiscernible] this year. We're going to be able [indiscernible]. But we have 2 fronting for fine breakover under execution that we're doing really new one going to avoid the huge part of losses. We've gone and the work and some projects related to 2022. At that moment, we're in the 13%, [indiscernible] we're going to have a huge jump this year, but it's going to be a good one.

Okay. The reduction of [indiscernible] where they're related to [indiscernible].

We're going to be able to execute, for example, to give an example of expenses, travel expenses as well as so many initiatives that we can have a presence. All of that is filed. We have a [indiscernible]. We do all of this. So we're going to have the savings before and table. So there is a high of expenses related to the day-by-day expense which is potential, where we have a directory, which is in order to see any of that. Besides, we have too many expenses related to the expenses on the operational side. I have there -- we achieved a reduction because we just listen some things that because get an answer, a new answer. I mean there is [indiscernible]. We going to have addition there.

There were mainly some activities related to the cash that we have from [indiscernible]. We're going to start working on the digital side as well.

We have a another question, Jorge Vargas. Can you open your mic and ask your question, please.

Congratulations on 2020 return. I would like to ask you the question. The first one, what color in addition you can give us related to the that the from the 600 megawatts you are starting [indiscernible] in 2021. And secondly, if you in these challenges in the company relating to accomplish the pipeline and the CapEx credit that you have in 2021.

Perfect. I don't know Esteban, do you have the digits?

We're hoping to have 600 construction megawatts a whole year. So the majority of projects in the huge part, those are used farms in Tolima, they could get entered into the first quarter and second quarter in next year. That would be the huge entrance in a massive way. On the other hand, the connection with permissions as well. This lower demand the last latter has the state that we have left as work in a very way should be able to be ready to start that construction. And the huge challenge is on the financial side as well. As we were saying COVID financial access as well. There has been in the country, which is really our relationship. So let's say that we've got a huge [indiscernible] to be able to raise the financial side of this budget, but I that we have some many offering to the [indiscernible] comments.

[indiscernible] about the 30% or 40%.

That's really a different or a very important way. You said most of them are very huge projects. So I do so. Related to 2021 or 2022 related to results and 2022 will be a really massive entrance with project and Chicamocha project in the first quarter, or the second quarter of the next year, which are the biggest farms of the 2 biggest complexes we are building up this year.

There is something we from an related to profitability. Why it's over there?

[indiscernible] taking into account the ambitious plans of investments that the need, why do we pay a payout dividend with more than 100%? That's a very good question. I want to tell you the reason why. Well, we consider this thing have to be a balance management. And we always have a track record per [indiscernible] of this company [indiscernible] we had really grown [indiscernible] related to the Nino phenomenon and talking about related to these actions in [indiscernible] we were talking about the financial ratability results. We would like to have this kind of balance, not only for the company, but we need to start having a cash ratio with the shareholders that's going to have appropriate when in fact related to this. These good years, where we checked this kind of portfolio is we have less than COP 50 million, whether it is from [indiscernible], which are receiving long-term live or too many in from the dividend related to this situation with [indiscernible] , there was more responsible to deliver dividend or a dividend if you have the [indiscernible]. We had a really good year 1. So to give that COP 60,000 [indiscernible] and we have really [indiscernible] so it can true. We now [indiscernible] to talk and we gain in something to grow our projects here we do, we give you cash and you can reinvest in something stocks in the company, would you have been growing that. [indiscernible] have issues, and to have a good balance. That is the proposal we have from the [indiscernible]. So that is a proposal that we have from the perhaps use the complement shareholders [indiscernible]. It importance as well [indiscernible] the financial that we have had [indiscernible] going to be like shy or it's something because you were able to complete where we have been postponing to keep the growth. Of course, in this way we're going to be able to have a balance including these three things. This [indiscernible] that we have with our shareholders.

Do you have another question?

[indiscernible] on the other hand, something else that I think is really interesting. Do you in to -- do you think all of those efficiencies we can keep it in the future to overcome this situation as now.

There are so many of them. We have shown the possibility and the capability to which without too many of these placements. Well, of course, clearly, the travel expenses will be less than we had before. However, not all of them are efficiency recovery matter has been implied, investments related to biosecurity situations. Where we're talking about a COVID expense as well, because some with efficiencies of almost [indiscernible] 9,000 in total. So I do believe we operate with the COVID restrictions will be generating some of the issues. We need to enhance our person operations. And also let's say that we've got [indiscernible] in the net, we want, but we also have an efficient to the challenge is that we don't know yet, what is going to be the amount of operation, the hybrid module. How many days are you going to be at home? How many is -- how many days will be in the office it customers. So I get, that's going to be here. Testing will be working to many important savings when we regulate [indiscernible] as well as the new normal of the company.

There is a commentary is a great data for the presentation, congratulations and excellent operational results as well. There is another comment. We are really proud to be a small shareholder of Celsia.

Anybody else has a question or something?

No. We have no more questions on and Ricardo or Santiago, you have a.

I want to comment on something. The only as a thank you all for being here in this conference for having me here. Thank you see every single colleagues or collaborators, contributors. We have been doing a best effort for our customers will be well, to get the results. And we hope our Celsia the shareholders dividend and portfolio [indiscernible]. Thank you very much to you all. I wish you the best in 2021 that we get COVID [indiscernible] and we can get access to the vaccine .