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

Good morning. I'm Gonzalo Velásquez Celsia Leader of Communications. I welcome you to results at the conference on the second quarter of ‘22. Today, we have Ricardo Sierra, Leader and Esteban Piedrahita financial leader of the company. In this moment all attendants are listening to us. As usual, we have reserved a space for your concerns at the end of the meeting. Questions answers are going to be habilitated at the end through the link. We have interpretation English to Spanish. And if you are using a computer, you can use the link interpretation in the lower part of your screen to the right. If you are using a cell phone, you can touch your screen to activate the bottom last at the bottom right for the language interpretation. In both cases, if you don't want to listen the background sound you can find the original audio. Thank you very much for [indiscernible] you've been here in this meeting. Ricardo Sierra is on the floor.

Good morning. Gonzalo, thank you very much. Good morning to those of you who joined us today and welcome to the results teleconference of the second quarter of the year. As we had mentioned a news for us they are very happy is that other companies around the world as long term in Celsia is happy to say that we are a carbon-neutral company which is very relevant. We are providing with facts to the mitigation of the climate change. We reduced the intensity of emissions of CO2 in 76% in the last 4 years. This effectively allowed the conditions to be carbon neutral. This was given due to that super commitment to engage in the renewable energies in efficiency, energy efficiency programs, sales and restructuring of portfolio. That's what we closed carbon central in [indiscernible] We sold our thermic asset in the coast and everything helped in addition to that. Also, the part in the case is that we have our ecological restoration program becomes green to 1 million trees that have been planted. It is very important because we have [indiscernible] CDC and other companies for example Exito that has made that all this combination in the strategy that started a long time ago with a lot of patients and resilience has taken us to be neutral going to the reports in the last semester is the best one in our history. Thanks to the portfolio assets that we have had, what we've been doing with our clients and the conditions of the market that are very good that have promoted this. The country economically is doing very well with inflation problems that we have. But anyway, the companies in the power, the utilities have very good performance. We have growth 40.5% the profit consolidated also comes up to EUR 318 million with a growth of 56%. The sad part is that the good results continue to be without being reflected in the results. This is something that hurts us. We have done a lot of work to explain the different value drivers of the company. And if we see the valuation of the share is that the market, the Celsia share historically very low in facing the utilities that it is valued 8 or 10x in markets like ours. Especially when we see our growth portfolio of renewable source of energy, our indicators are greater than what we have now. So all this strategy of platforms and the difference of what we have today offer and services to the clients, unfortunately, the market is not recognizing it. These are the markets that we've it makes us feel without capacity but we continue working and showing that the value that the company has fundamentally is very, very important. Talking about platforms, we have very good news in CO2 Energy which is the solar platform. We started operations in [indiscernible] We have a capacity of 19.9 megawatts. It is connected to the national interconnection system. We built a 4.5 kilometers of network. This plan is very peculiar is the first one that we use with tracker system which is a system that moves very slowly the panel to position it to have the perfect slope towards the sun to capture the greatest radiation. It helps us with better performance in the plan and we expect that this to be a technology that we can implement. This installation had an investment greater than $20 million, 48,000 solar panels with more than 400 jobs half of them from people from the region, a participation of women. And with this solar farm if we're going to produce, we have protection areas of natural. We have an ecological area with protection in the same form as everything we continue supporting that contribution around the economy. Looking at the whole picture, we continue to do a lot of activity in solar panel construction. We have some plants that they add 260 new megawatts and investment greater than MXN 1 billion. These projects are being developed in Baltoro [indiscernible]. They are going to have more than 17 solar panels that we're going to have in the construction, more than 3,500 jobs. Many of these plants are going to provide power to all the Colombian people and they are going to be in the national interconnection system and some others are going to be connected directly to companies of the country to make them more competitive, to have a lower cost of power and to consume clean power in some of these companies that have been added to the solar transformation at Levapan, [indiscernible]. And some days ago we signed with 1 million not only the national interconnection system but also we continue being the leaders in solar systems. And no other important [indiscernible] this plan that we are about to open that provides support to all renewable sources of power and are also our water hydrates. This project has progress with our people that we have the 57% of the company and we are with mandated from the partners, from the shareholders to work on the plant. We're going to add 200 megabytes of power. This plan has some technology new implementation which is going to be the most efficient plant in the system. It's going to be very fast at the time of engaging in the system less than 5 minutes is going to generate power when it is going to be required and it is going to let us cover the portfolio of renewables that we know that we have the variability of the system when there is a shorter contribution of the [indiscernible] element that probably we want to have a drought in Colombia in a few years that is going to grow all the radiation from this one. This is going to be a very interesting project with an investment credit at $210 million. We have a machine force with [indiscernible] which is the one the plant itself [indiscernible] to the system which is [indiscernible] system that we are also building at this moment. So with all these, we bring together a very robust plan. We have ensured a long-term funding, we're going to be dealing with the structure that we have developed with the Santander Bank and we have assured funding and all the strategy, the financial history of this interesting project. This funding was we got a 50-year term, we got a rate that we were very happy with that rate which is a coverage that is going to leave the cost at 6.8% in dollars. The importance of this project of support and reliability and many of you are going to say these people from Celsia who speak so much about renewable sources to do some turning plants. These therapy plants operated by gas. It has some green fuel understanding that this is a clearer fuel for this transition with less pollution. This is a plant that it is also close to the math we use. It is used a few kilometers from the plant. We have the gas fields of chemicals. So we don't have any problem regards gasification emissions or transport which typically are those that generate those disagreements. So this is a plant that complies or meets all the modem requirements and it is going also to have a compensation issue of emissions through the mechanisms that we're going to use the 3 farm as one of the mechanisms of offsets. So with all this in regards to social and environmental issues we are in the rural areas of [indiscernible] and San Antonio and we have paved roads. They have free public Internet. We have also worked build parts. We have helped in education helping youth. We are building a [indiscernible] that they've never had in that area. We also fixed or repaired their cemetery. We are in our renewal plan of renewing the school not only with good infrastructure but also with good quality. So with all these the social component what we have seen that by mandate we had to do and what we are doing now we have multiplied more than 1,000 tons that investment. It has been all the shareholders very happy to be able to help those neighbors in the capacities to come out of poverty in difficult situations so that they have there and they can take advantage. We generate more than 1,000 jobs at the peak of the construction and we hope to have at least 50 people employed on a permanent basis. We wanted to highlight these important development issues, figures paid by themselves and the different areas of the company are working very good and we're going to move into the detail of this. Esteban, please.

Good morning to every one of you who are with us today. As always the detailed analysis of the income stances and other financial information that can be consulted in the reports published on the Investors website. In the second quarter, consolidated revenues totaled EUR 1.2 billion registering a growth of 28.5 million compared to the same period of the previous year. Operations in Colombia reached revenues of greater than MXN 1 billion representing 89.1% of the results in Central America totaling 132 million continuing 10.9%. Talking about Colombia, revenues were driven by higher generation in both contracts and spots and increase in gigabytes marketed in the face of better demand and revenues from network use and connection increase due to the new sales that entered into commercial operation, the higher regulatory [indiscernible] and higher year-on-year in the PPI that affecting that variable. And obviously the IPP, as Richard mentioned in production that it is also going side by side in the revenue particularly in the network connection. In Central America, revenues increased due to higher generation especially in the [indiscernible] which improving 39 gigabytes compared to the same quarter of the previous year. The generation that we had and also where it is bringing the assets this year makes us very optimus facing that after many improved operational improvements and also lifting up of many resolutions in the systems. It brings us closer to that average of 500 gigahertz of generation. So far this year consolidated revenues reached EUR 2.5 billion growing 31%. Sales costs of the quarter were 769 billion with an increase of 16.3%, which is mainly explained by higher variable costs of the [indiscernible] due to higher generation restrictions and transportation and higher fixed cost of materials, maintenance and greater depreciation due to the entry into operation of new projects. Variable costs were EUR 522 billion with an increase of almost 22% while fixed costs totaled 247 billion with an increase of 6.5% of the inflation. So far this year sales costs reached EUR 1.65 billion a growth of 24.4% for variables and assets, administrative expenses registered an increase of 25% and reached 87,000 million, mainly due to a portfolio impairment of EUR 7,000 million and higher expenses of EUR 15.5 million associated with the structure of the mobility business. Basically, we had to implement autonomous equity costs for that business which generated an increase in the expenses. And also we have in the second quarter of the year times which the contributions to the superintendents were accounted for in that quarter that were done at the end of the year. In 2022, the administrative costs are EUR 165 billion and with a growth of 14.5%. EBITDA in this quarter was EUR 458 billion with an increase of 46% increase due to the positive contribution of all segments, the greater energy market, the provision of greater infrastructure for our customers and the credit generation of portfolio. The EBITDA margin for the quarter stood at 40%, an improvement of almost 460 points compared to the second [indiscernible] The operations EUR 397 billion, consolidated EBITDA for the quarter and Central America operation with EUR 61 billion and registered a growth of 18%. So far this year, EBITDA reached close to EUR 912 billion with an increase of 40.5%. The other revenue was 1.76 for the same period last year. The result of this line is explained by the revenue generated by the Laurel platform that had operations in the first quarter of this year. Net financial expenses, the addition of income expenses and difference in exchange in the quarter were MXN 124 billion with EUR 65 million increase in which EUR 49 million are solely due to the increase in the 8 mixers and MXN 126 million that corresponds to the difference in change due to the devaluation of the pesos of 10.1% in the quarter. So far this year, the financial expenses reached 24 billion with an increase of 75% for some similar reasons that we had in the second quarter this year. Consolidated taxes were EUR 78 billion and 6.5% due to the increase of the new nominal tax rate for this period and an increase in the revenue in terms of EUR 93 billion. So we have the increase in the base and the rate. The quarter's effective rate remains in the high range as tax benefits very close to the fee rate due to the tax benefits from the different projects that we are implementing investments in renewable energy, in science and technology. We are expecting to get them in this last 2 quarters of the year along this year taxes for the consolidated. We have EUR 172 billion and register a growth of 68%. In the quarter, we had a positive contribution in different segments of business in the company with a net profit of 71% greater than the prior quarter. The net profit attributable to the owners control was EUR 106 billion with an increase of almost 85%. So far this year the consolidated net profit totaled 318 billion with a 55% greater with a controller of EUR 28 billion with a growth of 48%. Debt and the company had 5.13 trillion with a leverage indicator of 3.4x net debt to EBITDA. The average life of this investment is 6.1.9 years and we closed the year with a consolidated cash of close to EUR 164 billion distributed very even between the 2 regions. Having said this, this is the review of the figures of this quarter. The operational results are very good for the shareholder it is very positive. In addition, we continue with our growth projects with aim in a clean power. So I want to share with you where our growth goes. If we have invested so far this year EUR 827 billion, basically the investment associated with expansion and technological updating of our network as well as the growth of solar farms. All these investments are designed to continue reaching the life of our clients. In regards to the service being provided of distribution of power the obsession that we have is to continue improving the power. So far this year since we have had it rained very heavy the interruptions continue improving with 9%. In the frequency of interruptions which is the pain [indiscernible] we have improved in 30% from this year. This when we say it in a perspective of 3 years is like going from 57x to 38 or side particular to bring it down to half. So we started very good in Tolima and as I said we are doing well and doing better. In budget, we continue with the same indicators that have characterized us. The improvements are marginal but we continue maintaining the system that today is considered a very good quality. Finally, we want to mention something that is very important about civil works for taxes. We implemented this mechanism that was designed by the government and we are presenting projects that we have developed our own risk in the communities with the values of taxes that we have must. We were supposed to pay in this part we have developed growth important infrastructure in the regions in Antioch, Caca and Tolima. We are investing today more than MXN 107 billion with different products especially roads and education. In the case of the road we have a total more than 26 kilometers. This is very interesting. We're pretty footprint sample. We are [indiscernible] the soul to have very good infrastructure and generating lots of local jobs during the construction. For example, in the surroundings of the hydroelectric [indiscernible] it is creating mobility conditions and life quality in [indiscernible] to all the neighboring towns. Also, we are pending the approval of price in the mechanisms of sale works for taxes in social inclusion of the climate change worth MXN 78 million. We hope to continue with this project of civil works for taxes because we were very concerning because many companies are implementing this mechanism which is virtuous that allows the inhabitants of the neighboring communities to be connected with these civil works for taxes not to move to board that money. So when we see all this from 2017 we have presented projects and improvement to the communities for MXN 179 million. This is MXN 179,000 million it creates a very important dynamic for the future of Celsia. Here we finished our report for the second quarter. Now we invite you to have a conversation about these issues that you concern would you consider that we can improve all your interest.

In this moment now we are going to receive the questions from the participants to have your live questions. We're going to have a question here [indiscernible] from CrediCorp Capital.

Congratulations for the financial results. And the first question is about EBITDA. In the second quarter, what is the figure? And the second, could you please share with us or update us about the investment plan for this year? What is the CapEx that was for Celsia and what is additional in regards to this leverage plan.

So the first question. The EBITDA for Celsia for the next quarter what is the figure for a show The consolidated EBITDA we estimate that it is close to 66% or 70% of that EBITDA corresponds to EBITDA of the shareholders of Celsia. Our assessment is in conformity with the rules. But it's about 66% to 70% corresponds to the proportion of shareholders of Celsia that also are with us in all other business. And in regards to the CapEx the question that you make in this next semester, we are going to execute investments close to MXN 1 billion in investment but we are considering that we are able to reduce the debt level with some platforms that have very important reinforcement in cash in the second semester in the favor of the company that executing that EUR 1 billion. So the closure of the following quarter is going to produce a site of increasing. This is what we're expecting maintaining the plants and everything that we are expecting for the next business to be kept as there.

[indiscernible] In the radar, you have the generation of power with hydrogen?

We have a very interesting project for the last couple of years. Our team has been reviewing hydrogen issues with [indiscernible] who has that technology. There are different applications for hydrogen, many expectations facing what it can produce. Let me share with you hydrogen with renewable sources with solar power, hybrid power or [indiscernible] is a very interesting opportunity in Colombia because hydrogen can help us to get a carbon-free many companies in production of steel, concrete, transport, and it can also generate possibilities in different types of industry. And we are very enthusiastic about a project in which we are exploring different connections of hydrogen with productive chain especially with fertilizers world where we've been working very intensely. This is a technology that it is the improvement curve of cost still closely but we have lots of investment globally in factories, in new technologies [indiscernible] with basically some of them in Israel. We work with the world team in Europe. And the most important fair today in the world where we had the opportunity to see different suppliers of types of engines that start to do research and development to produce power based on hybrid and other renewable sources. We are standing and it is an opportunity we have to consider that this government left a very good established route with also the taxes of the low 15 for the hydrogen systems. It is fair, it is necessary because they are technologies that still need the incentives to penetrate the market. And Juan, as you can see we are very enthusiastic about our team and we have a lot of interest from different sources in that world of hydrogen. We have a new area in Celsia which is about hydrogen, which is in the platforms. And here now with the other my minister, we had a very important interesting about this hydrogen route for Colombia and other technologies. So our 100 people that are connected there to here.

The floor is on Mr. Paniagua Roberto Jonathan.

We have a couple of questions. The first question is about the EBITDA margin that it is superlative. I would like to know in the second semester, if you are going to have a similar margin? The second question is in your opinion about the possibility of reducing the cost if you can participate or what reading you give to that [indiscernible] and the last strategic ones you have implemented to reduce pressure in financial expenses that we are seeing in the company.

I'm going to talk about the second about the hydraulic [indiscernible] and Esteban is going to develop the expectations for the second semester about the containment of the financial expenses. In the topic, the government is moving some concession areas where one go to those areas. We don't know whether mechanism is going to be light but we are going let's say, in La Guajira to have some time to develop the research that you have to develop for the project regarding social, environmental, technical interconnection. And if you are able to produce a project this is what is being presented in the development group, we have focused on 2 areas. Also, we are seeing where the projects are how they are connected with these projects. And I can give you some ideas about the technology offers several possibilities. There is a great opportunity of generating power but there are great infrastructure challenges that we need to overcome. First, is the technology to be able to compete what we have onshore in La Guajira and [indiscernible] in the country is a technology that is still expensive regarding the costs that we have in Colombia. So if we do it for diversification today we will have issues because prices change but we will have some problems. Definitely, this is something that the company is studying. We are not the experts in this issue. One thing is to do with onshore wind and other thing is offshore is a technology that requires different technology and we are organizing a very good work team, we are analyzing that. And also the root we are followed with this new government and new minister maintains now since we all are enthusiastic with this renewable work.

In regards to the margin in the second semester and the mitigation strategy of expense I would say, facing the margin I would say that we had very good results which is a combination of several variables associated to the stock market. We are doing very good. We have seen that water is providing good contribution and the cost showing the reflection we are engaging a new quarter and this all contribution is going to help us in the market. The contribution they are hydroelectric to the power generation and the impact in the market [indiscernible] it is not going to be the same. But the second quarter that we had due to the effects that's what I could tell you in regards to the margin. That is very related in terms of the behavior of the generation and the prices in the stock market financial expenses I could tell you first that we basically have a mid-life of the structure which is part of the structure, which is in the mid-life to have the spot structure in regards to the [ indexers ]. We have always made a decision to have an exposure open to the indexers given the correlation of the way that the rates are implemented in our business. And our debt which is indexable is in IPC which is an indexer that it is used in the revenue in the fees, in contracts. It have to have correlation levels between the 2 indicators or any structure in regards to the fixed rate makes that to be lost in the more hectic moment. But we are maintaining the healthy correlation between the revenue and expense indexer to have those accounts balance so that we don't have the net profit effect it.

And now we are going to have Jude Rivera from [indiscernible].

Very good work. How do you see the view in the regarding political changes? How does it affect the EBITDA growth?

I can tell you that what we see the new government plans in regards to power resources, they continue talking about the energy transition, a renewable progress and all this strategy that we have been having in the company. And also the quality services of power. We see with optimism that all the policies are going to be maintained of the tax incentives. All the different elements that make today to have a true revolution in regards to energy transition in the country. We are very enthusiastic about that the new government in this front can give us a good opportunity to design, we can give some recommendations. And for the private sector to continue having this trend of investments. It's important that without fearing that it can be greater than $5 billion and hundreds of jobs that can be implemented here in the new renewable energy. So this is working very good. I don't think to go in another direction something that is working very well. I don’t think that the government is going to go in another direction.

We have another live question [indiscernible]

My question is about in line with the expectations of the new government. There is not a good structure knowledge about the sector. What's your opinion how can this affect with the presentation that you have?

We see the last 4 or 5 ministers that we have had none of them were with a specific catch line of the sector but all of them were great leaders. They got the right people to surround them, to call them, and they were able to manage this office. And we have the new minister [indiscernible] who comes from the academia. We really believe that she is going to surround herself. She's going to [indiscernible] well. And we have people in the different institutions that regulate and manage the power issue in the country. We can sit in the crib that would mean the CNO, we can say in the Ministry in the different dependencies people that have had many years that know this topic very well. I believe that the new minister is going to continue doing what the others have done to understand the challenges, the opportunities that we have and hopefully that she can coach herself and surround herself very well. Other than that this is only 2 days so we don't know her. Besides the press releases we don't know very well what she knows but we’ve really put our faith that this is important sector for the progress and for the quality life for all the Colombians. We continue with the policies that we have had so far.

There is additional question of Carlos [indiscernible].

What is the expansion project that you have for next year in regards to internal growth of the company?

They are projects that we have for the next year. Let's talk about our 5-year plan in every one of the front development strategies, growth that are very interesting because our plan is if the conditions are given to continue accelerating the company's growth. I also would like to have a reflection before the growth component that we have had in profitability of the invested capital. Today we have accomplished facing the cost of capital of our equity and our debt. Today we have a gap of almost 3 basis points in value growth that is rate that helps us to continue accelerating our investment that at the end the value that we are having that values remain in the company. So hard to see the expansion plan of the company what we have defined and what we are working on in the generation space. We have what we already have defined the company has more than 1,000 megabytes of solar energy that is tending to start in the constructive stages in beginning next year. In this 5-year plan that we have is going to be greater than 1,000 mega. But today, we have 1,000 mega generating from solar power beginning next quarter. That is going to add to 270 that are under construction and 60 or 70 that we already have. That in regards to [indiscernible] we started this year with all the service regarding the first 2 projects in construction, the first 2 projects and all projects in Colombia. They're about [indiscernible] of 10-megahertz but which is located between [indiscernible] and a few minutes from the road that communicated to cities. That is our first project that has commercial operation beginning next year. Also, we had the Acacia project which is the first part of our generation of [indiscernible] generation in La Guajira which is going to be a little less than 100 megabytes. And at the end of next year 2023 to early 2024 and then we have the [indiscernible] block, the bigger block of [indiscernible] generation in La Guajira where we expect to have in 2024 this is going to leave us with almost 350, 300 of many on like megabytes generation in Colombia. We have another 100 megabytes to be generated also here in Colombia. In hydroelectric, the [indiscernible] we're working with alternative where we cannot count on that but we are optimistic that we are able to accomplish [indiscernible] for the construction in the coming year. Technology that is going to be very powerful in Colombia, environmentally very good with the sectors and the communities that we reach. These are other growth opportunities. In regards to transmission and distribution it’s still pending to [indiscernible] that is going to start next year [indiscernible] and we also have the substation of Pacific interconnection that it is interconnecting [indiscernible] for the sector of [indiscernible] which is a project that it is also in the preconstruction phases. There is a lot in what we expect in regards to transmission and distribution according to the plans that you may have of growth of means to interconnect this renewable power that we have in Colombia. We expect to participate strongly from now. And we are still pending and working on the [indiscernible] plan of distribution to present the cap this year and to be our route for 2023, 2028. Next year, we are going to complete the first [indiscernible] which with all the information that we have proposed and we're going to start to implement the next 5 years. We had La Guajira’s important plans to continue penetrating is solar roofs in industries and homes. And that segment, we are very optimistic in this growth. In Central America, we have a very strong growth in Honduras. We have important growth. We're working strongly in Honduras is coming closer to 60 megabytes of solar megabytes in operation, everything that is [indiscernible] construction this year. And in Costa Rica there is a new renewability project. We are participating with an expansion project effect to a lot that it is going to help us to develop 60 megabytes. We are doing all the process of eligibility there. And in Panama, we continue to work in all the generation projects in the market and we are just waiting for the opportunities in that surface space that summarizes our participation now on our project. And what Ricardo mentioned, we are at the expectation where it is coming up ahead about the capacity of the organization to generate these new plants.

And if we have another one from Julio.

How do you believe that the intense of [indiscernible] is going to cause the prices of power in the short and medium term in Colombia?

Yes, in all the models that we have been developing for the last 5 or 6 years in the country, we have always incorporated the possibility of having the production from [indiscernible] one-day interaction comes at the mid and long term in Colombia. There are some curves that estimate the effect of the entrance of that power and the effect in the prices of negotiation. So as a fact, when it comes [indiscernible] already been discounted in the negotiation. Remember that when we buy the energy to the [indiscernible] 100% of that energy is already purchased for the next 5 years. And those negotiations consider the life expectation of [indiscernible] in punctual times if the engines that come at the end of the year. We don't know clearly when they're going to come when the other 6 engines are going to come around with being signed when we're clear about it. So the specific times of enrollment probably there's going to be an affectation. What you're assuming in that power everybody expects that power to come. It has already been the target in the system. Colombia needs it. And the other good news about in [indiscernible] is that Colombia continue growing. It's crazy. And with this very positive and currency, the consumption of power is going further off what has been expected. But it has already produced the new curves of demand of power in and we can see that it has needed a new allocations of power to be at pace in providing 24/7 what Colombia needs. This is good news that the country is working on very interesting front in these days.

The assembly has any relevant that we can express in today's meeting.

The assembly of '18 is procedure because basically what we have is the issue of some contributions to the recession that we have to normalize on roads. And the other one is the CDC has asked us to change the representative in the Board of Directors that typically has been by its leader of legal issues. And now they are asking us to be the person who is in charge of the financial issues at [indiscernible] the financial the second one. So that is the change. I don't know if Santiago is connected there wants to contribute. We have been asked to change [indiscernible] for [indiscernible] who is the financial leader of the [indiscernible] That is the procedures.

[indiscernible] What is the presence of Celsia in Tolima in regards to renewable power? There are projects, one is the role of Tolima in the operational role in the company from [indiscernible].

In regards to renewables, one, we have a very important issue in regards to renewables. When we talk about the in terms of the department infrastructure we bought 2 small projects basically today. That portfolio of almost 1,300 megawatts that we have in the solar energy. Tolima reaches to represent 300 of those 1,200. We already have under construction several. We have the [indiscernible] plant and we have [indiscernible] in operation. We also have the plan where we want the [ B3 ] of renewable power in [indiscernible] is 100 mega plant which is also with another plant in the area of 100 megas. So in our perspective of renewables Tolima is very important. And as I said, it is going to represent a 300, 400 megabytes of what we have of the 1,200 solar megabytes that we have in the 5-year plan in the sense it's very important. From investment investments that we have made as Ricardo mentioned in the improvement in the quality indicators, it has been impressive what has been allocated to Tolima, new assets, improvements in operations and maintenance. Crews that we have appointed to is very important. New things are coming. Regarding the quality and losses we have still a gap that we need to improve in regards to what we are offering in a budget. And financially, I can tell you that it represents in magnitude between 10% and 15% of the total EBITDA of in Colombia. That's correct, not only in investment but also the social environmental impact. We are doing a very important work in [indiscernible] providing [indiscernible]. The government we are planting trees in that area with a lot of intensity.

How many solar farms have we planned in Tolima?

300 and 400 megabytes are going to be generated. It is already projected in [indiscernible]. We must have about 3 and we have the big ones. We got the bids, yes in another [indiscernible] business is also entering a tool in [indiscernible] and other municipalities. We are starting to develop this expansion plan with fiber optic and we are starting to receive a new number of clients of Internet that are connected. Because it's the best quality in the country and the price is billable fiber office to home.

Another question from Julio is how do you see the types of projection in La Guajira?

What are difficult factor here, people in [indiscernible] that we’re developing projects. They're developing a very important project there. We understand that it is with a time table that a little behind between 12 or 24 months and we understand that they are doing very well with the social issues. And we expect that expectation of having that collector to come into the system to socialize the income of that [indiscernible] in La Guajira to overcome all the [indiscernible].

And a question from Pablo Casto.

In terms of allocation of capital, how have you implemented or how do you establish about the leverage and implement?

In regards to allocation of capital, we have 2 blocks. We have the development block of our business which there are some regulatory commitments that we need to maintain and some of expansions that we are developing. And in the different platforms we have [ Cubico ] in the platform which is upfront. There are 2 retirement funds that are behind Cubico and that are highly committed to the investment plan with the desire of [indiscernible] find the investment plan in Colombia. In that regard, we have the solar business, we have transmission business, and we are closing the [indiscernible] platform and vehicle platforms which we have an investor that cautions us. Here in this platform Esteban we can mention that they are about their 75% of the investment block in the future and about what we presented estimated CapEx 2022 represents about 75% of the total CapEx that we are implementing precisely. So here, we have a [indiscernible] look at possibilities of growth. In regards to the dividend we have been with the price that we have it is about 8%, if I'm not wrong. You know that we are a company that have been used to have the shareholders with a great value of dividends in cash that allows us to continue that growth. So we're going to see different options. But in this moment and the other thing is that before facing these low prices of the share we want to let our shareholders know that a dealer with shares at that low price definitely we are very far from the mental value. There are some shares as the reacquisition shares. We have to do this reacquisition, hopefully, if they are going to be executed with people to know what the value is because when we buy such ship, we are delivering value to those shareholders that are delivering. If we buy a very expensive thing we're going to have an inverted invested situation. So in this company, we haven't been willing to [ touch ] but it is in the portfolio of options that the company has to nowadays.

Thank you very much for the answers and congratulations for the excellent results. I joined the call late. I don't know if you already mentioned that but I would like to know if there could be any update in regards to the procedure of listing of the new stock market? As you mentioned that it is in that process. I don't know if there is any detail or update that you could mention in that regard.

[indiscernible] announced with Cementos Argos that they are getting ready for the share of Cementos Argos [indiscernible]. Probably that is a question for [indiscernible] to ask then how they're doing this process. But it doesn't [indiscernible] We are here in the Colombian stock market trying to provide value to our shareholders. But I believe that they have grouped the group in 3 platforms and one of them including Celsia with a group of [indiscernible]. I understood that was a listed in New York. It is to have a look at the portfolio of the company that are active in the group in that part we are working. I believe that Argos is of the skills of development of expansion of capacities of partners on CapEx. This allows us to take a look at the exponential growth of the Argos Group. Precisely that question, that's what I can share with you. This are development that our shareholder Argos Group has but it is unknown that it is going to have a transformation of the businesses to widen out the opportunities of growth. That's what we're working on, Pablo.

In regards to the first question. And in regards to what you mentioned about the price of share in regards to the price value and the [indiscernible] what funds have you done? And what is the range that you think that the share must negotiate?

That is something that will share in the early assembly of shareholders that was made taking every one of the segments that we have in the company. So we evaluate the distribution value, the generation value. We as the transmission business, the [indiscernible] business, and we include the multiple markets in the Latin American market. And when we find that we find a company value which is greater than [indiscernible] doesn't reflect the potential that we are developing. So that has exercised that we invite that it is in the reading. It is going to be at your disposal in the material that we’ve delivered because you can see the different EBITDA in the segments and to add what Celsia is and it can take you to drive interest in value. So without fear as administrators of the companies to our shareholders, the company has how to support those volumes that are greater than what we are presenting there. Thank you very much and thank you for the flexibility in all the questions and for the time. Thank you, Paolo for generous comment that you have made and every one of you have because we did very good in this semester and we're very happy of what we have done. Thank you.

Precisely another comment in this regard [indiscernible].

With the price of Celsia share continues growing when this space is going to be unstoppable. Thank you, the comment. We have all the internal teams. We have meetings in the [indiscernible] all the company's offers with that price because we all know that we have to take care of the money of our shareholders. Our comment for Pablo's question precisely is that it is going to refresh the link is Page 16 and 17. This is a story about the creation of value, the assembly of the general assembly of this year, a comment of [indiscernible]. This is a company with purpose as their employees to and their shareholders. Thank you Juan. Yes, that's correct working for that conscious capitalism that starts enriching the life of this service. Thank you for listening to us and to believe in Tolima while I have heard in the interviews in Celsia. Celsia is a friend of all of us. Thank you. That's what it is. In Tolima, we have a lot of work to be done.

Ricardo, you can close the meeting.

Thank you, the team for the work that you have had. Thank you all for being with us if we wish you the best of luck and for Colombia to be very successful in this for [ 44 ] years. Thank you all.