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

Good morning, everyone. My name is Gonzalo Velasquez from the CELSIA Communication team. We would like to welcome to the session for the report of the second quarter of the year. We will be joined by Ricardo Sierra, leader of CELSIA. [Operator Instructions] This conference has interpretation. If you are using a computer, you can choose the language by clicking on the icon that says interpretation at the bottom right screen of your bottom right corner of your screen. If you're using a mobile phone, tap on the plus icon at the bottom right corner of your screen, then select the option language interpretation and tap on your language and then click finish. In both cases, if you do not wish to listen to the background speaker, click mute original audio. We thank you for joining our conference. Now I'm going to give the floor to Ricardo Sierra.

So thank you very much, Gonzalo. Welcome everyone to this financial results of the second quarter conference and the close of the first half of the year. We are seeing that we have really positive results, and we hope that you can share it as well. The first thing is that in Colombia, we had some operational or logistical challenges very -- that were very difficult during the second semester due to the strikes in the different parts of the country. And I would first like to give a special thanks to all the collaborators for that enormous work and dedication that you showed. It was really anguishing times. You know that our operation in Valle del Cauca was especially hard. And they gave their best to help our community and our clients. Equally, I would like to thank all our contributors because they allowed us to provide good service for our clients. Today, we're going to have a brief comment on the financial states of the second quarter. And then we will have space to talk about these topics, about the advancements in Panama, in the closure of Berlin, and to tell you how we're doing in Tolima because we're celebrating our second anniversary of operations over there. And we are also going to talk about how we're positioning the company in terms of renewable energies and the advance in the thermoelectric project. And as usual, we're going to talk about the ESG topics that are very important for us in these times. So welcome Esteban, you have the floor.

So today, we're going to do a little -- we're going to do something a little bit different. I'm not going to talk just about the margins and the variations, but I'm just going to do -- show you how the business has evolved in -- throughout the year. And you can read the full report as usual in the website. So the comparison for the second quarter, it's kind of complicated because of all the extraordinary events that happened in part because of the market and the other one because of the strict quarantines that we had because of COVID. So the income shows a positive growth only the generation. Due to the reduce in the stock price, we had an affectation. But we also have the income from PPA of Thermo Floris that compared to the previous years added to almost COP 5 billion. So in terms of margins, we have a 6.7% growth. The accumulated for June, it's 5.8%, which was imposed by the transmission service. In Central America, we saw an increase of COP 88 billion, and this new result in the new businesses, everything that we've been developing in the last 5 years, give a growth for this accumulated of COP 20 billion in our margins. All this growth is linked to the greatest assets that we've deployed, the consolidation of that portfolio of products and services that are a novelty that have been supported by higher expenses. But it's also important to show that from this [ COP 9 billion ] was because in 2020, we did a revision of costs. COP 6 billion correspond to the -- so we have renowned our insurance policy. In December 2018, we had a really low rate at the time of renovation. So that means that the structural in growth was COP 26 billion compared to the contribution margin that we were talking before. The EBITDA closed with an increase when we adjusted the nonrecurring topics of 2020. The -- it shows 5% growth, which was led by Central America, the new businesses and the distribution. And the financial cost during the period was COP 77 trillion. And there was some index that played in our favor, a low rate in work capital. And in June, we also suspended the provision. Because of this context, we have brought the financial reports, would represent almost COP 2 trillion less than what we started on last year. In June of 2020, we had, in the part of nonoperational, an increase for COP 3 billion. That means that the consolidated profit this quarter had increased when we -- sorry, I'm having audio issues. However, when we do the adjustment to eliminate what we were talking about in EBITDA but also to reduce this extraordinary event, the EBITDA is about 25%. Now we're talking about debt. The company closed with a debt of COP 4 billion. Between 2020 and 2021, the devaluation of the peso, Colombian peso incremented our debt in almost COP 100 million. The company closed with almost COP 237 billion. In Central America, we have COP 119 billion. Regarding the main figures of [ power ], the ordinary income showed an increasing 5.3% due to the demand of EBITDA. And the net gain was COP 128 million, with a decrease of 74% mainly due to the greatest financial cost because remember that we are still comparing a quarter with a long-term capital quarter with the one where we haven't done the closure for the year. We have a leverage structure of 80% for indebtment, which has a higher flexibility for profit. Ricardo, so I conclude that financial statement. The results clearly show a very positive path, and we will be continuing with the growth project and trying to improve the growth in the different regions.

Thank you, Esteban. I think that was a very good summary. I would just like to highlight 2 figures just to close this financial part. One is the growth of EBITDA. It grew 6.5% when we compare it. That means that in operation, in spite of the difficulty that we had in the first semester, we had a really good result. And the net profit, we're seeing a lot of situations that we are gathering capital that allowed us to compare it with 49% from last year. That means that the results we hope that are really to the liking of our investors. If you want, we can pass to the close of BLM in Panama, how we're doing this process. Remember that when we went to Central America, this particular asset was an asset that had a negative value. The negative value in the transaction was less than $50 million. But on our side, when we paid, we've seen that we acquired 49% of the central. That means that, that asset, let's say, we received it in negative, but throughout all these years that we've had it, we've done a lot of efforts to transform it, too, but it's an asset that unfortunately had a really big obsolescence. It's an asset that produces -- that works with coal. But you know that in this new DNA that we're integrating, it's very complicated. So we're not finding the way to transform this asset to bring it to life, really. The -- so the topic is a very important topic because it's an asset that generate a lot of difficulties in terms of financials, the side. So it was very complex for our operators and partners over there. So we took the decision after we saw the effects from COVID to set some structural changes in Panama. So we decided with our partner, which is a Panamanian government, which has been very comprehensive and to close that coal operation. So this operation has a very big advantages for Panama as a country. First, that we're accelerating to a more renewable metrics. And this is the last coal factory that we had, the nonindustrial energy generation. So it's a very good news. So the Panama government has a really nice roadmap to turn green. And for us, it has several effects, most of them which are financial, to reduce the leverage in Central America in 2.3x. So we're going to reduce the debt that we have today from $80 million. It's not a later effect. And if you see the EBITDA, it was negative with $8 million. And additionally, as I was telling you, the risk that we had in this operation were technically not the best. It was very difficult to improve them. So these are very important effects. And what comes next in the closure, we're going to give some -- we're going to acquire some substations, the diesel turbines, the contract and everything. And additionally, we're going to acquire some fiduciary assets. All this so that we can implement a process, a very organized closure of the assets so that we don't generate any negative impact in Panama. So this should finish during this second semester of the year or at the beginning of the next year. We're entirely sure we're going to do it in a very professional way. So now let's talk about the Tolima. In March 2019, we announced the acquirement of these assets of distribution and commercialization here in the Department of Tolima, and we have been there for 2 years. So let's look at some of the figures that are important, [ 490 ]. Now we have 530,000 clients. When we look at the Department of Tolima, it shows that really good increase or growth in clients. And with all the projects that we've been doing, this department is going to have a strategic advantage in terms of distribution. Second homes for Bogota. So we're very enthusiastic about these projects in this region. The other thing is the quality indicators in the service, which is a topic that we are obsessed with and is that we risk -- we have 53 hours working. Now we're working at 49 hours. That means 7.2% in the consolidated but with great improvements in the last half of the year, so the investments we are seeing them right now. So the SAIDI, we switched from 40% to 32%, so it's a 19% improvement. Some regions have had even 19% improvements in Tolima. So we're still seeing an improvement that is very important in Tolima. And we're reaching the goals -- the standards that should be in that department. Now the financial terms. We had a big expense in Tolima, that's 9.6x EBITDA. So in Tolima, we received this assets with COP 170 billion. Now when we're adding what we're producing in Tolima and Caoba, in transmission terms, now we're generating COP 237 billion, which shows an increase that is very important of COP 70 billion additional. This is a growth rate of 16.4%. That is very good in terms of EBITDA. And we have invested more to improve infrastructure and to comply with the requirements in Tolima. The EBITDA per client, when we received, it was COP 351,000. Now it's COP 448,000. And this majority, we're reaching the standard that we want. And if we do the assessment with the same EBITDA that we have, we're talking about the creation of value in 2 years about COP 600 billion. So this acquirement, we're very happy with it. We're really happy working and developing projects in this department, and we hope that we can continue this positive path that we've been showing. So now let's talk about the growth in nonconventional renewable energy growth. You know that we've been pioneers, but we have also seen that a lot of different stakeholders and actors have been starting to interact in the country about that, and we're very enthusiastic about this because it's going to be an investment of chapter in this country that is going to be really important. In 2021, here in CELSIA, we hope to expand 18x the capacity that we had when we started this journey in 2017. In the second semester, we're going to start projects that work with more than 120 megawatts. And we have the goal of reaching 650 megawatts in solar things. To think about that figure, 650 megawatts, adding to that all the different projects that we already have running. Just in these 2 months, we have had 2 solar farms in operation, in La Paila that has a client that is very important, it's a very symbolic client for us. We're very happy with him. It's an emblem for the Valle del Cauca department. As well in Panama, we're having an operation with almost 10 megawatts. This is a farm that we build with Exane in the hydro electric point in the [indiscernible] complex. Now let's talk about Tesorito, our thermoelectrical central that we have. This project is working really well. We finished practically the access ways. We have all the environmental management with the community. The platforms are completely ready. All the equipment of the Central is progressing really well. The substation is working really well. It should be operational in 2, 3 months. So the project is doing really well, and we should be going live in the first quarter of the next year, 9 months before it was -- it should be working. And there's an additional topic. We have 560 people working there in the 2 sites where we're working over there in Laureles and San Antonio. And we have 17% of the staff that are women. We're even trying to grow that number. We know that it's a labor that is very man-oriented, but we know that it's very important for our ESG. And additionally, in hydroelectrical project, we're doing -- we're going to be doing an additional part within a chapter here in Tesorito to make it carbon neutral, which is very -- we're very enthusiastic about that. We're going to plant thousands of hectares to compensate the impact that this has. The investments in every day -- the everyday investment are COP 157 billion, and we keep obsessing with having the highest quality equipment and operation to bring the best service possible. Now let's talk about the ESG topics. The first thing, this company has been leading, we're the top 3 companies in doing projects. We're very happy in terms of the Argos Group. We're all involved in this process. We have -- we were assigned 5 projects for COP 47 billion in [indiscernible] and Tolima. There are projects that are basically about education and infrastructure. And this is going to benefit 600,000 people, basically. We're just benefiting with school supplies to a lot of institutions in those departments, so we're very enthusiastic about it. The other thing is that in terms of gender equality, we are tasked with removing those sticky floors, those crystal floors for women. And we have started a successful project with [ Ascena ] about electrician technician, women technicians to train them so that the number of women in training programs has increased dramatically when we compare it to the figures from 2 years ago. It's spectacular the number of women's that are working with us now. And that increase in women, we think it's going to be very important. We are fully committed to that topic. The other thing is that in the reduction of carbon and CO2, we are working a lot in that topic. You know that we're the leaders in terms of clean energies. We have the sun and wind projects, and we're working really hard as well as in the small hydroelectric centrals. We're working a lot. You can see in the graph how we hope to have 25% of our installed capacity in 2020 will be nonrenewable. We will -- this year, we're going to reach the goal that we have for 2025 of having 10 million trees planted. We're very happy with this, let's say, approach that we've had because with the Argos Group, we will be soon releasing the new carbon-neutral goals on the second part of the year. We will additionally invite you to look at our website. We have a Board that every day is looking better every day. There's a lot of information for all the different public, to a lot of our investors who are asking for commitment and access and the indicators, we have all that. It's a work that has been really well received by the investors. So we invite you to ask any questions, to share your suggestions. And with those teams with those tasks will finish the report. So we will open the floor for questions and to talk about how you see this year in CELSIA.

So Ricardo and Esteban, thank you very much. So at this moment, we are going to pass to the Q&A from the participants. [Operator Instructions]

So while we wait for the question, just, Gonzalo, we would like to say that the process of vaccination, we hired it privately, and we're very happy because practically 90% of our collaborators have -- has been vaccinated. We're trying to reach the 100% so that we can start normalizing some of the administrative tasks. We've been operational, and we are working this whole time. So I would just like to highlight that.

So the first question is from Jorge Valencia. What are the requirements to set up a farm, solar farm?

When we talk about solar farms, we're talking about solar farms that are on the ground. We have, Jorge, farms that go from 1 mega, like the one that we set up in Palmyra, that they've been expanding it. We're reaching almost 3 megas, but we have farms that can reach a certain mega like the one that we just set up in La Paila. Those farms, typically, just to give you a figure, if it's 1 mega, it's more or less 1 hectare when it doesn't have trackers. Trackers are really trendy right now because they have a lower weight. If you have trackers, it's 1.3, 1.4 hectares. It could be a little bit less, but that's more or less the size. When we're talking about the process of 650 megawatts, which is what you saw just there in La Paila, the closest one, we're talking about almost 750 hectares that we should be intervening in different regions of the country.

Okay. We have another question from Jorge Vargas. So just a question. What are the expectations of the company for the next renewable bidding that will take place on the 26th of October?

Yes. Perfect. We're starting that. We're still socializing the beat. We've had some suggestions and adjustments, especially in the requirements for the dates of the project so that you can -- we can start participating. You know that there are new projects. They're not conventional. It's difficult to -- we see it difficult for the entrance of wind projects, but we have a solar portfolio that we're evaluating if we could have them in competition for that bidding. And at CELSIA, we could participate for -- due to the demand, but we're also starting the requirements and our strategy in our energy supply in that bidding. So the bidding is really complex. It has 3 blocks. It has -- it has a bid where there are different requirements in different needs. So we're in that process. I don't know, Esteban, if you could complement on that.

So no, Ricardo, I think you explained it really well. The important point there is that remember that all the companies that want to go into the bid have to be really big plants in the system. So we're doing the analysis. And just like the first one, it was very entertaining from the point of view of the competition. But now we have to look on -- of being successful in this process.

Now we have a live question from Diego Buitrago from Bancolombia.

A question regarding nonconventional renewables. In this goal and this purpose that you have with Cubico to reach the 650 megawatts, if you could tell us strategically, what have you thought of those assets, if there are going to be farms about the -- if you could tell us more about the operational part of those assets? And what would be the main challenges that you could face -- that this projects could face and this [ fate ] could face regarding the plans that CELSIA has had once the pandemic has retreated and we go back to normal operation? And additional to that, regarding the 25% goal of nonrenewables in 2025, if you could tell us a little bit more what -- how would those figures look? And what can we expect from CELSIA in 2025 in terms of profits as this nonconventional renewable projects gain more strength in the metrics, if we could sacrifice some return regarding growth in hydroelectrics or thermical gas, thermal plants?

So yes, Diego. And I'm going to do a little advertisement, a little PSA. I'm going to talk a little bit about the what and our return on investment, which is very positive. So we invite everyone who has doubts about this value creation of our company to look really closely at it so that we can sit and study that topic with due diligence. So I'm telling you, about the 60, 50 megawatts, what's going inside of that project is the solar platform are projects that are above 8 megawatts. Everything that is 8 megawatts above, we're seeing that all of those are 8 megawatts and above. So from there, we have farms from 10, 20 megawatts. And typically, there are some areas where we're going to have more amount of megawatts, even sums reaching 100 megawatts but with a really interesting arrangement. Most of them, were trying to generate farms that are dedicated to industrial and commercial clients. A lot of those are not going to be able to reach them because of the location, but most of the things that we're trying between 10 and 20 megawatts is that it can be connected because it's the most efficient. It generates the most profit. It's really good. That's the first part of the solar farm dynamics. What are some of the issues? I'm going to say some and Esteban can complement. The main issue are the connection points, the topic of transmission, because we have land every day being offered. But the problem is how are we going to connect it? Where are we going to connect it? So sadly, a lot of years ago, a race of developers started because it was really easy to ask for a connection point. You didn't have to have any guarantees. You didn't have really high requirements, but now the government noticed that issue and issued a regulation that it's quite demanding to ask for a connection point. So as of '21 of August, it's like the final judgment day, where we will have -- where you're going to have to submit your guarantees and set the operational date because if not, they're going to be open, and there is going to be -- all those projects that are surrounding that will be able to connect. So we're going to have a very interesting dynamic in the second part of the year so that we can see where we're going to connect. That is the bottleneck, really. Esteban received calls from bankers and from investors every day about investing in these things. And it really is the solar system is the one that has less restrictions. Of the other projects, the hydroelectric centrals or wind farms have social, environmental issues. And solar is the one with the least social environmental issues. So I'm going to invite Esteban to do a reflection on if we're going to reach the 25% goal for 2025, what is the impact that's going to have? Right now, we're not looking -- when we look at the past, we have improved the EBITDA in 2 points. But -- so Esteban, if you could explain a little bit about the profitability of the solar farms.

So yes, it's the first time that we're looking at our faces in 18 months in this conference. So yes, effectively, as Ricardo is saying, regarding the question that Diego said -- asked is that in terms of margins, it should be a contributor, a positive contributor in the company. The solar farms are above the average of our generation business and above the distribution. So in terms of sales margins, it's positive. When we talk about the value, no, we're not sacrificing value because the profitability that we have in solar projects are really attractive. We're -- obviously, we're leveraging on the platform, the structure, the tributary issues. But remember that we've been working for 4 years in the [ niche ]. So we will talk about the financial beneficial -- benefits. We can see that the accounting is going to give a reflection different to the assets that we're having here. So our assets is really bigger in terms of accounting because the income -- the taxation benefits that we have are deferred. And we're starting to see or create topics that are important to understand it, but they are starting to add in those account balances. So what it should be a benefit, I don't see it in the numbers or in the figures. We also see that with the accelerated depreciation. So the depreciation is in -- it's useful life. That means 30 years. So we are seeing also some discrepancies in that process that have an impact. But definitely, the profitability that we're seeing in the solar portfolio from terms of profitability, from returns, it's very favorable. And the goal, the 2025 goal that we're seeing is that we're preparing. We're really preparing. We have been preparing for many years to grow to reach those megas. And we believe that when, as Ricardo was saying, the judgment date, which is coming, we're going to have some new opportunities. We're preparing to keep growing in that subject to take advantage of those spaces that are going to open up with those connection points. So we're going to see the traffic reducing. And the projects are going to finally start running.

Ricardo and Esteban, so I'll just take this moment to ask how is that competition in the sector that you were showing in the slides previously? Because CELSIA has 43% of the projects in development, in nonconventional development, which is something really positive for the company in relative terms comparing it to the rest of the sector. So you're going to be a stakeholder that is the tip of the spear of that new company that you're going to be creating in Colombia in nonconventional renewables, and there are more parts that are interested from the different countries in the potential that the country has. How are you seeing that dynamic? And how is CELSIA preparing for -- to face that?

So it's a wonderful question, Diego. So I would like to say to you is that the -- our favorite thing in the world is to compete, and we're doing really well when we did the first solar farm in Jumbo, our solar lab. It's a work that we really have to thank Juan [indiscernible] because he was a visionary in setting up those renewable projects. And right now the capacity is for development that we have and the indicators that we have, the abilities for land negotiation and to carry to good term the ideas. I think we have a wonderful team. And when we're in the part of execution, the team that we have right now is a team that have been leading, people that have been working in the exterior for many years. And it's a team that is -- I think we're reaching 60 people in that team. So now the capacity for execution that we have is spectacular. And additionally to that, the learning that we've had with this growth has been incredible because it's very different from conventional businesses. So you know that in these types of projects or the standard projects, the abilities to know how to find the correct providers, the acquirement of equipment, I think that we're ready. We're ready for the match and what has happened. We have 40% of the market share now. And we're going to have it in the future, and we're going to be fighting for keeping that leadership. We are seeing new stakeholders, new players. And we have [indiscernible] in Bogota, and [ NL ] is doing over those renovations. So there are going to be big players with some rural capacities. But with our CELSIAN philosophy, we've been able to -- we've been able to play really well. We're aiming for the gold medal now that we're talking about the Olympics.

So next, we're going to give way to some questions that are in the Q&A. One from Rodrigo Torres from Valor Analytics. How is the investment plan in terms of execution and financials? Has it changed the investment plan?

So Rodrigo, the plan is working. Of course, there have been some changes in terms of expect nations that we're having, we're seeing that with the teams that we have and the equipment that we have, we are trying to keep the investment plan as close as possible to what we have set in the plan and what we had communicated to the market. But part of the affectations that we've had in terms of development of the project, let's say that the purpose as a company is that we can execute all the investment because that's fundamental for the growth, not only on the part of service and quality but also in terms of generation. Oh, yes. And I forgot about a comment regarding the solar topic, which is very important. In terms of -- to be able to compete, we set up the Cubico platform. It's a gigantic player with a capital cost that it's really well so that the relation that we had with Cubico will help us a lot to be competitive. I forgot to mention that.

Yes. Well, we have a question from Jorge Valencia. So in terms of debt and the situation of the first -- how is the pandemic impact -- having an impact in the relationship with the clients in the community?

So last year, we had an approach with the government. So during those first really difficult months of lockdown, we had a financial chapter from the government. When we look at if our clients have had a negative impact, the truth is that, no. We reach -- we really didn't have any affectation regarding the accounts that we have with clients. So some industrial clients had some credits or debt during the pandemic, but we launched a program that was -- we're with you. And we had -- we managed that. The purse, not really purse, but in contract modification, we extended the contracts. We changed the cost and we gave some time so that they would have some leeway to settle with those purse. It was a really good relation with industrial and commercial clients. We offer it to all of our clients, but not all of them took it. And this year, during the strike, we had some issues. During the strike, there was a lot of unemployment. It was a tragedy in Valle del Cauca, and we saw a decrease in that side. So in terms of purse, we've seen all these external factors that have had an impact, the pandemic and then the strike in Valle del Cauca. We saw some affectation, but we're going back to normal levels. Thank you, Jorge.

So again, next, a question from the chat. What has been the evolution of the projection for electric vehicles? And in which cities have they been implemented?

So Jorge, we're going really fast with that. That means that today, we don't have an inventory because we've been -- we're trying to produce more. These are not like, oh, yes, we're selling a lot of chargers. But yes, we're selling a lot. I think more than 200 residential chargers have been set in the last 2 months. That's practically all the vehicles that have been sold in Colombia. And I'm going to do a political advertisement here. And I'd say that in 2 or 3 years, the electric vehicles is going to be the new normal. What we're seeing in the United States with the new electrical wheels vehicles, more than 120,000 petitions for it. So we're seeing that new F-150. We're seeing that the electric and the combustion are just becoming -- the bridge is becoming less and less and less. And I think that's going to be very important in the future. And it's going to play a significant role in our projects.

So Nicolas Arias. What would be the minimum price in which sales you can participate in a nonrenewable bid? Can you give us a range of prices?

So Nicolas, we cannot give you an answer for that right now. It looks like you're asking for a competitor. I'm sorry, Nicolas, but we cannot answer that.

Another question from Nicolas. How do you see the evolution of the demand for energy in Tolima and Bahia after the strike in May and June?

Esteban, can you tell us a little bit more about what happened during those months that was dramatical?

So Ricardo had just introduced the effect was stronger in Bahia than in Tolima. We've been doing the tracing of what happened -- what has happened in terms of demand. Tolima is growing. In spite of the strike, the energy consumption is going -- is recuperating, is recovering. So in Bahia, we have 2 effects that combined. We were expecting for less demand with the rain season when we compare it to the dry season of the 2020. And in Bahia, there's another part. We were expecting to see less demand. But regarding the strike in those months, we saw an important decrease in the demand. However, in June and the middle, the mobile mediums that we're working with in June and July, we are starting to see a recovery way. But as I was telling you, the effect in May was big. It had a high -- it had a big decrease in the quarter. We're measuring it, but we're optimistic in that recovery, and we're optimistic in the numbers and the figures that we see in the demand of June and July. In Tolima, it's a different story. Tolima is growing. Really important. We're seeing a 9% growth in the demand for the region, very similar to the Colombian consumption that has been recovering.

Very good. Thank you very much, Esteban. Jorge has another question. CELSIA has worked in -- has it worked in geothermical energy project? What opinion do you have about the future of this source of energy in Colombia and in Central America?

So currently, we don't have really any projects or studies in geothermal energy source, but there are really no studies currently.

Jose Lopez asks, have you contemplated the idea of building floating solar plants, maybe in the sea or different bodies of water?

Yes, we have studied them, but it's really -- it's not too competitive -- they are not too competitive, and it's easy to work with ground farms. It's a beautiful initiative. It's something really big in different parts of the world. In China, there is 1 that's really beautiful. And here, the DM did one. We were very jealous of it. It was really beautiful. But right now, we're not citing that.

And Andres Diaz is asking about the trending topic. How does the dollar level affect the company?

So we wish we were exporters because that raise in the dollar for the equipment -- in the acquirement of equipment, it makes it difficult. But that's within what's expected. But let's say that right now it's not reaching a level that is not having a negative impact. So we know that the solar farms are being updated with the challenges that we're facing at every time. So in terms of that, it's really it's easily transferable. I don't know Esteban, what do you think about it?

So I'm just going to show the nice pace of the answer. So the good thing is that in terms of -- is that we've been doing our homework. So we don't have a changing in the debt. The debt is not going to have a big impact. So it's a very natural behavior. So on that side, regarding that, we're very, very calm. We're not worried about that. We worry more about how to be competitive. But we're really comfortable with what we've been working with in terms of exposition.

So at this moment, we don't have more questions. It was a very important Q&A round. So if there are any other questions, you can ask them now. But I think everything was very clear. So thank you, everyone, for joining us in this first semester on our first half closure. We've been working -- we will be working really hard. We will have our boots on, and we wish you good health to you and your families. And we hope that everyone gets vaccinated. Thank you very much, and have a nice day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]