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

[Interpreted] Good morning, everyone. My name is Gonzalo from Marketing of CELSIA, and I want to welcome you to this Zoom call of the results of the first quarter of 2025. In this morning, Esteban Piedrahita, Financial Leader of the companies; and Carlos Solano, Commercial Leader of Regulatory Matters is here today. [Operator Instructions] If someone requires information in English, you can find it in the interpretation option. This video call also is being transmitted in the official of CELSIA. We really thank you for being here in our call, and I give the floor to Esteban Piedrahita. Esteban, this is your opportunity today in this scenario with our shareholders.

[Interpreted] Thank you, Gonzalo. Good morning to everyone. Yes, in fact, this result was so good that today, Ricardo is not going to be here joining us as the tradition. Right now, he is traveling. But today, we are in charge between Carlos and all the team and to accompany you in this report of our results and to attend all of your questions. We know that the Energisa program was launched. We know it's one of the best important part that you want to hear. So let's start this call by recapitulating the posittive aspects, but also we are going to talk about our program, Energisa. Let's start about the first initiative, which is the debt reduction. In this, we have divided this front into 4 major programs. And first, we want to recover the resources pending from 2024. Second, we have a rotation of financial assets that this organization has. Third, we want to stabilize the use of working capital of the project developer for the platforms. And fourth, we want to maximize the cash flow of energy services, that means the utility that if you remember, in this case, is Celsia Colombia, who has the biggest part of that. And as we announced, our efforts to reduce indebtedness are projected to materialize in the last 2 quarters of the year, for which it is key to stabilize the whole system with our decisions during the first part of the year. We successfully, we want to tell you that the cash flow of this quarter was COP 75.5 million better than expected. So we have achieved this better result, thanks to the good performance of operations, as we will see below, the recovery of COP 88 billion from investments in Peru, and the sale of COP 76 billion portfolio to the IDP. At the end of the first quarter, consolidated net debt was BRL 5.7 billion, and the net debt-to-EBITDA leverage ratio was 3.49x. The average life of the debt remained at 4.06 years, while cash closed at MXN 210,237 million. The cost of structural debt decreased from 11.61% in December to 11.32% in March. One, we don't only want to reduce our debt stock, but we want to optimize the cost of it. And for that, we have been carrying out a series of operations with our financial partners. On the other hand, I want to tell you that C2 Energia is close to signing a long-term credit agreement that will allow the financial closing of several solar farms, including that currently we are building, including Escopales 125 in a farm in Escobar, all this in Riba again, and the Celsia Solar in Bederam, both I mean, the 7, taking into account the ones that have been built will allow to repay Celsia Colombia, the activities it has advanced. At the same time, Caoba is also making adjustment to its credit contracts to make use of the surpluses in certain lines to materialize the purchase of projects that are already under construction. All of this is very important to address the third point of that second point, which is to close the capital debt that we have put for the development of these projects for the platforms. We remain firm in our commitment to reduce indebtedness and expect to accelerate this positive trend in the coming quarters of the year, because let's remember that our goal is to reach a consolidated net debt level of close to COP 3.85 trillion. Let's talk about the initiative Energisa. In this first quarter, we achieved an optimization in the cost of sales that allow us to recover the EBITDA margin to the usual levels in Celsia. In addition, the different areas of the organization have identified more than 538 new actions aimed at reducing costs and expenses that will be executed during the rest of the year and will allow us to accumulate savings of COP 150 billion with the goal of achieving COP 165 billion, being more effective in the way we are providing our services. Let's us now take a look of how the company's operation evolved during the quarter and the detail of the efforts of the Energisa initiatives. Let us start with the power generation business that performed really well. In Colombia, we reached 1,385 gigawatt hours of generation, which represents a 46.6% of growth compared to the same quarter of 2024. While in Central America, we had 22.7 gigawatts. This is due to some climate conditions that are regularized. The rains benefit our hydroelectric plants, and the need for thermal generation was reduced. In this segment, revenues were COP 397.5 billion with a growth of 11.9%. From marketing during this first quarter, we delivered 949.4 gigawatt hours in our clients in [ Elvariaima ] that there was a decrease in demand compared to the first quarter of the previous year when high temperatures drove higher consumption. This lower demand was offset by the behavior of the tariff, which resulted in a 6.2% increase in the segment's revenues. As a result of this performance, consolidated revenues for the quarter totaled COP 1.45 trillion, up COP 5.5% versus the same quarter of the previous year, thanks to the increased contribution from the Power Generation segment. The consolidated cost of sales for the quarter totaled COP 907.3 billion, a reduction of 6.7% versus the same quarter of the previous year, thanks to lower generation costs by the purchase of energy to back up our contracts and the lower consumption of fuel for the thermal plants. The administrative expense totaled COP 94.2 billion, an increase of 7.3%, mainly explained by the cost associated with the structure adjustment in Central America, devaluation of the weather derivative. And remember, last year, this represented an increase for the organization. And this year, we are recognizing that -- and finally, the impairment of the portfolio where MXN 1,208 million of air were highlighted. EBITDA was MXN 472 million with a growth of almost 45%, and margin EBITDA consolidated was 32.5%, higher by 884 basis points compared to the first quarter of 2024, when the effects of the El Nino phenomenon were being faced. Of this EBITDA, COP 443,000 million came from the traditional generation, distribution, and commercialization business, and COP 29,000 million from the asset management business. Total managed EBITDA, which includes our management, increased to COP 575 billion. In the trimester, other net expenses were registered of COP 400.2 billion were recorded in the quarter, representing a decrease of 53.2%. And this reduction is due to the recovery of provisions and the recognition of income from the sale of the Universidad del Va de San Miguel cam located in Suarez in Cauca, which was used by the employees of our Salvaina hydroelectric power plant. Net financial amounted 157 million, a decrease of 3.6%, mainly explained by higher income from exchange differences associated with the valuation of derivative financial instruments contracted to hedge debt and the purchase of equipment in foreign currency. Additionally, during the quarter, the portion -- when the purchase was completed, we have a portion of portfolio associated with that operation. The income taxes were BRL 86,000 million, increasing compared to the COP 20,000 million from the previous quarter due to a higher tax base as a result of a higher operating income and additionally because in the first quarter of the previous year, we will capture tax benefits as for this year are projected to be executed in the next quarters. Finally, net income for the quarter was COP 108 billion, up 264% versus the same period of the previous year, explained by solid EBITDA growth and driven, as mentioned before, by higher hydro generation and lower cost of sales. Additionally, the decrease in other net expenses and financial expenses contributed positively to the bottom line. Net income attributable to owners of controlling interest reached COP 57.9 billion. Continuing with Energisa initiative, it is time to talk about progress on our entrepreneurship and investment platforms, 2 key fronts to drive future growth. The third initiative, as you know, is the value materialization of our intra-businesses ventures. On this front, we have -- we want to tell you that we have made significant progress in the processes of structuring our energy efficiency and Celsia Internet businesses as an independent company of Celsia Colombia. This transformation gives them greater agility to adapt to market needs and operate with more flexible structures. In this first quarter, Celsia Internet achieved revenues of BRL 18.3 billion, with a 54% growth compared to the same quarter of the previous year. And the energy efficiency portfolio recorded revenues of $6.1 million. Let's remember that these results, for now, are consolidated in our financial statements that we were just mentioning before. Our objective is to turn these businesses into industry benchmarks with a potential for regional scaling. We hope to share with you very soon relevant news on this front, which reflects our commitment to generate value beyond traditional business. Regarding our fourth initiative, focus on attracting capital, we continue structuring the platform dedicated to development of projects in Peru. Different investments at a local and international level are working in the process and the analysis of the information. Finally, we closed this tour of [indiscernible], talking, of course, about the share buyback. Let's remember that this measure, we try to provide direct value to our shareholders through greater liquidity in the market and the strengthening of the share price. To date, we have already executed 30% of the total amount approved for the program, representing more than COP 90,000 million. Since its implementation, we have seen a 2.5-fold increase in the average daily trading volume, which not only boosts the stock but also increases the amount that we can repurchase daily through the Colombian Stock Exchange transactional mechanism. So far in 2025, the average repurchase amount has been more than MXN 300 million per day compared to the MXN 210 million that we were able to repurchase daily on average in the last quarter of 2024. In addition, since the launch of Energis launch on February 26, the share price has grown by more than 11%. Share repurchases have proven to be an effective tool for improving liquidity, supporting share value, and reflecting the company's confidence in its future performance. We will continue to manage this program with discipline and a strategic focus in line with our promise to generate sustainable value for all our shareholders. Let us continue with an update of the performance of our investment platforms during this first semester. And let's start with thermal plant generated 21.2 gig this quarter. Since there were no significant dispatch needs in recent months, most of its revenues came from the reliability charge remuneration. In total, the platform recorded revenues by almost COP 48 billion and EBITDA close to COP 19 billion. And it is very important, dedicated our role as managers, we distribute dividends by COP 27,000 billion during the trimester to the partners during the first quarter. And with that division of dividends, it's important to mention that the NAV indicator is located for accession in minus COP 4,105 million. We have already mentioned this in the teleconference as the closing for last year. We have already recovered the investment in the platform, and it has delivered COP 4,100 million more than we invested. E2 Energeia recorded a generation of 132 giga with a growth of 4.6%. It added COP 49 billion of income in the quarter, with a growth of 12,% and EBITDA is COP 40 billion. That means 8% more than 2024. We do not have important variations enough since we don't have made distributions or changes in the capital as we were mentioning before. With the platform in this quarter, sales were made in compliance with the BOT for almost COP 10 billion. At the end of March, the platform total asset amounted COP 2.6 trillion. Revenues in the quarter totaled COP 98 billion, with a positive variation of 14% and EBITDA reached COP 82 billion. In this platform, NAV didn't have a significant variation, and it is positive for COP 218 billion. From the Laurelles platform at the end of March, it integrated 136 photovoltaic systems of less than 8 megawatts and reached COP 5.6 billion in revenues, a growth of 44% compared to the same period of the previous year and EBITDA is COP 1.665 billion. This represents almost 52 megawatts of installed capacity and a cumulative generation for 2024 of almost 15 gigawatts. Now as usual, I give the floor to Carlos Alberto Solano, our commercial and regulatory leader to help us review the most recent regulatory movements. Mr. Carlos?

[Interpreted] Thank you, Esteban. In the first months of this year, the main topic of discussion in the regulatory field continues to be the government statements of wanting to limit the prices or quantities of energy sold in the daily market, also known as the energy exchange, with the purpose of reducing electricity tariffs based on the untrue hypothesis that this market is poorly designed and allows inappropriate behaviors of generators, when the scheme used is the same of all competing electricity markets in the world, and there has not been any formal indication by the SSPD, the entity in charge of control in the sector, of undue behaviors in this market. Based on the above, the government has announced measures such as limiting the price of the energy exchange or limiting the amount of energy that a generator can sell in the market, for which, although there have been some draft documents, there are no firm decisions as today. In view of this, the position of the companies in the sector, expressed by the unions based on a broad technical support, has been that such measures are inconvenient because they distort the market and produce an inefficient management of reservoir and other energy resources, in addition to the fact that they do not lead to lower tariffs as intended. It is important to mention that Colombia tariffs are competitive regionally and globally. But the only way to make them even more competitive is by increasing the energy supply and competition in the sector, which requires the support of the government so that the generation of transmission projects can be executed on schedule and start their operations in a timely manner. Based on the above, Celsia and the other companies in the sector hope that the government will reconsider these measures and that the final decisions will preserve the proper functioning of the market and give a positive signal for the investors' confidence. This investment confidence is necessary because Colombia needs to increase its generation supply, not only to make its tariffs more competitive, as we mentioned before, but also because the balance between energy consumption or demand of all the Colombians and the offer of energy firm-- which can be produced even in critical conditions such as a strong drought when, for example, El Niño phenomenon occurs, shows negative figures as of 2026, which implies that the country could face rationing when the next El Niño phenomenon occurs. Given this, the government has recently closed a reconfiguration action within the reliability charge scheme, the results of which were announced last May, last Friday and whose main purpose was to increase the firm energy committed from the surplus of firm energy that some existing generation plants have, but also to make some generation plants viable. Additionally, to that auction, there was energy assigned for the periods of '25/'26, '26/'27, '27/'28. In each of those years, approximately 7.5 gigawatts were assigned. That represents an increase of 3% approx of the total firm energy that the system currently has. The closing price of the auction was $23, which is a very nice price, and it comes together with the situation that the market has. I'm going to talk about the year '27/'28 and zoom there because it has been the last period, it was expected to have more offers, and 24 plants were assigned there, 3 that already exist, 8 solar that are under construction, and 3 new solar from which 2 are offered by Celsia and [ Escobar Andromeda ] projects. These are the ones, each one of 100 megawatts of capacity, which is great news for our company. At a country level, this auction is positive news because it allows us to increase the offer of firm energy. And with that energy, we can cover the medium demand and energy, which is the one that the Colombians have in regular conditions. But when we have dry conditions, that demand increases, we are just covering around half of the additional need that we have prior that auction. So as a product of that situation that we still need energy and very recently, CREG published for commentary resolution where an expansion auction is called for the end of this year, where in this case, the main objective is to commit the construction and start-up of new generation plants with an operation start date of December 2029, but where there are incentive for those who managed to start their operation before that date. The sector expects these auctions to that first, and that can already happen will be successful in order to reduce the risk of water. There are 2 situations that concern, and one is a negative signal for renewable plant hydro, solar, and wind plants that represents the modification to the scarcity price, which we shared with you in the previous result conference. Basically, it establish a scarcity price lower and thermal plants using coal and all renewable technologies, which strongly discourages investment in these technologies. The second point that we need to solve for the country to have a trust that is guaranteed is the difficulty of obtaining a reliable supply of natural gas and at a price that allows the financial closure of thermal projects with this fuel. Given that Colombia needs currently to import gas to meet all its demands, and this makes this difficult to achieve. Esteban with this, I finish the summary of the main regulatory topics, and I give back the floor to you so you can continue with the call.

[Interpreted] Thank you, Carlos. I'm going to go back to the last point Carlos was mentioning to mention 2 important things. The first is that the auction, the reconfiguration auction, as we mentioned, it has many solar projects, 8 in construction, 3 new ones, as you were mentioning. If I'm making something wrong of saying about a number, I apologize, but we are barely covering the medium demand. We still need that. And we welcome everything related to technology. We need more and more technology, and that's one of the things that we were mentioning. And in regards to the scarcity price, connecting again to the report of results, we have always said that what happened when El Nino phenomenon occurs, the prices increase is a reflection of calling all the resources. But in reality, it's a pain moment. It's not a happiness to have those prices. We are purchasing a lot of energy to comply with our contracts. And only when everything goes back to normal, as we have seen in the 3 last months with the rains, then we see that the business, the real one, we can see it. So we insist in that matter of not be confused of that signal of high price. But well, talking about energy, we have changed the way of the conference. We need to close with positive news. We are committed strongly for everything related to the energetic transition to continue being an important actor. In this quarter, it's our first plant in Colombia, and we like to share with you things by video telling you the information of this project. Those who are online through X, don't worry. We are going to be publishing that on our social media, so you don't miss it. [Presentation]

This is Carreto, our first eolic plant in Colombia, a project that Celsia built as a generation of energy in Colombia matrix. We have concluded the installment of the main equipment of this number one aerogenerator. We have finished the construct of the tower and the installment of the equipment. At this moment, we are carrying out all the connections and wiring, so then leave it prepared to start with the testing and await for the aerogenerator number 2 to be finished. With Dr. Gonzalo, who helped us with the videos, we were going to leave that news to keep it, but a tower of 120 meters, we never expected that to be in Barranquilla, Cartagena, especially during Easter, and all the tourists and people passing through there asking, what is that? So it's spectacular. No, we could not hold that for more, and we revealed that, and it has been widely accepted. And our commitment is with all the sources of generation. The second piece of news is related to a strategic acquisition that doubles our pipeline of renewable projects, a portfolio of 675 megawatts acquired from the Irish First Renewable Power. And they have 3 solar and 2 wind farms, and they were asking for other points of connection. The most advanced project is Andromeda Solar Farm, mentioned by Carlos, located in the Department of Sucre and with a capacity of 100 megawatts, which already has an environmental license, and that project has another advantage. This project will be connected to the Tolu Viejo substation owned by our Global platform, which represents a significant advantage in terms of grid connection, a key factor in the development of renewable projects in Colombia, well, not only in Colombia but around the world. With this boost, by the end of March 2025, reached 475 megawatts, which add the capacities we strengthening the pipeline that we have mentioned, that is close to 700 megawatts. And today, we are strengthening with this extra 175. There are other 284 megawatts under construction, 365 in early stages of development, and that puts us above the giga operation by 2027. Andromeda and the solar project that we have will be part of our process of structuration. So our vehicles of investment and based in energy will take the lead of these projects with the financial closing and all the development stages. That's all the information that we had for the trimester. Thank you very much for accompanying us. We hope that these 3 people here, Carlos is definitely missing these conferences, but maybe you could feel less his absence, and we reached his level, and we are committed to continue executing the energy asset program, and we are very attentive of the questions. That's correct. Thank you very much, Esteban and Carlos.

Now we are open for your questions. So let's review. There is one question by Juan Gallegos. He is mentioning 2 things. The first, is the company doing a follow-up of the development of the solar panels in titanium? And the second, is there advice what Pampa Energy is doing in Argentina, which is doing also exploration from what I understand, exploration of gas with shale gas methodology. So I don't know if there is a follow-up, Esteban that we are doing to that operator. Juan, thank you very much. As usual, with your question, the solar panels, I think that you heard in regards to titanium, we do an important follow-up. We also had the opportunity to have a conversation with some of the manufacturers that we buy and also made offer to us to see how technology, solar technology topic is advancing. Two weeks ago, they shared with you some advancements that they have established for 3 years, and we continue revolutionating the future for 3 years from now. The titanium, I didn't have it in my mind, I know Carlos, but also we heard about other series of efficiencies that will allow to improve the energy production. In regards to Pampa, it's a name that we have heard for a long time, as Juan was mentioning, well, in the reality of Argentina in the last decade, this is a company that started in electric energy business, and they had some generation assets. But in that period of closing before what has been happening in Argentina for the last few months, they started to enter in the area of gas exploration and enter to Vaca Muerta project. But today, when we see the Pampa numbers, I think it is a more company of exploration and exportation than generation of energy. We do follow them. I'm not sure to say if they are the reference of what we want to do because the business of natural gas has a CapEx demand that is very important, but we have seen it and we know about them. [Operator Instructions]. We are going to chat. There are no questions, no additional questions. Well, there is one from Sergio Daniel T. Thank you. A question in regards to the regulatory topic mentioned. Besides the risk mentioned that in case that these projects continue moving forward, Celia has revised the impact in numbers and analysis in regards to the regulation that could be put in place. Mr. Carlos, Sergio, thank you very much for your question. Let me clarify that we mentioned is a series of announcements that the government has been doing that they want to limit the price by the amount of energy sale in the stock that will be materialized through decrease of the mining and energy ministry or resolutions of the commission. As I mentioned, there is nothing established. There are some drafted proposals. And let's say that through those proposals, they are with some conditions that are relatively wide. So it's difficult to make an exact calculation on the impact. But what we do see that, in general, this type of limitations is what does to make the investors in Colombia continue investing in projects. As we mentioned, the country has a deficit of firm energy, which is the one that we can produce in any condition that will allow us when we face that type of conditions, we can overcome them successfully. The most recent initiative the government is working is a draft decree that the mine ministry where they are proposing there is a limitation of the sale in the stock of 5%. They want to do that by flexibilizing some conditions, which we see positive to be flexibilized in a moment where the market is very tight, that is positive, and that collects different proposals that we have done in the different unions. But there are some conditions in that decree that needs to be adjusted, we consider that. And we have been communicating that to the national government, and we are waiting for them to review that to see how that topic continues advancing. That's the most recent that has been developed in regards to this topic that we were mentioning in the conference. Thank you very much, Carlos. There is a question. Juan Jose is raising his hand.

[Interpreted] I have 3 questions. First, if you can provide more color in regards to the ID, the financial expenses. I would like to understand a little bit better that. That's my first question. The second is, if you know the reasons why Mainstream goes out of Colombia in this portfolio, renewable portfolio that you have acquired? And my last question is, if you can go back and repeat what was the energy assignation in the reconfiguration auction for each one of the years. And also, I want to know in your estimation, what is the gap between offer and demand of energy that you were mentioning for 2026?

[Interpreted] Thank you for your questions. I'm going to answer the first 2, and Carlos will answer the last one. So the IBD sale is basically the third or fourth operation that we have done with IBD. And what we're working is that it is a portfolio sale in which there are some risk assignations and so forth. Finally, as any factoring, there is an application of rate in both sides to make the purchase. We do recognize that rate and the effects of the expense of from the valuation of our instrument and their instrument in the business with the IBD, the financial expense is going to be recognized, and that's the reason why we were saying that in the first quarter, of course, we have a financial expense that is higher that is not associated to a debt, but it is associated to the valuation of that operation with the IDB.

[Interpreted] In relation to the mainstream that is the reason, I mean, the reason corresponds to mainstream, they wanted and the attractive part of our offer was an offer for a full exit from the market. They want to develop the 675 mega, and that was the proposal that we did to take all the development and continue betting to the development of those projects in Colombia. The specific reasons, I think that corresponds to mainstream to talk about their own decisions. But with that, I complete the - and in regards to the specific designations, Carlos, let me tell you once again about that topic. The reconfiguration auction covered 3 period. First was the period that goes from December of this year 2025 up to November 2026. In that period, 7.5 gigawatt hour day that corresponds to a 3% that the firm energy system has. The next one, December 26, November 27, 6.39 gigawatts hours that represent 2.8% of the energy firm system of the system in the third period that goes from December 27 to November 28, 7.5 gigawatt hours days, and it represents 3% of the energy that the system has. I remember that I was mentioning that the price was 21.3 gigawatts per hour, which is a reasonable price for the market nowadays. And I was also mentioning that in the last year where there was the expectation by the last one, there may be a few projects - and besides 13 plants, they enter 8 that are under construction and 3 solar ones. So that additional energy that the system is doing covers around this, with the additional with the one that we had covers the demand of the entire system in normal conditions. But when those conditions become more demanding and we see a scenario with a higher level of demand that has a level of stocks of 68%. We see that the deficit that existed in comparison with the firm energy that the system had. This reconfiguration auction cover around half what was needed. So for that reason, it is that it's so important that the expansion auction that was called or is been initiating the calling for the end of the year to be successful and will bring new energy to the market. And we truly believe that part of that energy, hopefully, will come from other technologies that are different from the solar or technologies that could offer a volume of energy that is higher, and that will allow us to have a higher available capability in critical conditions. And not for that reason, the offer of the solar energy is not important, but it is relevant that complement with other technologies, and the importance of the topic related to natural gas and other things that we were mentioning before. Gonzalo, I think that with that, we can answer all the questions from Juan Jose to go with the next question. That's right. There is a participant named Fabian is informed that by the national government at the end of the year, COP 3.3 million were be sent from Stratus 1, 2 and 3. This has a positive impact on the company somehow. Fabian, thank you for your question. Of course, we hope to be receptors of that reimbursement of the subsidies in the first semester, we received payment by COP 56,000 billion from last year, and that has been really well received. And at the end of the trimester, we accumulated the subsidies that go above that number. It's around COP 90,000 million by quarter. And that means that at the end of the call, we have a very similar situation from the last quarter of last year. But of course, we are continuously working with the unions because it's a very important flow that corresponds to that important topic of the subsidy for Stratos 1, 2 and 3. Carlos, I don't know if you want to add anything else. Just to mention that the government in different occasions have announced their willingness to cancel those subsidies. But when we go to the facts, sadly, what we see, as Esteban was mentioning is that the payments that have been happening are with an amount that are even lower in comparison with the subsidies that the companies give. And has been increasing. And we are having conversation with the Ministry of Mining and Energy, Ministry of Finance. They are exploring all their schemes such as providing some certificates of debt where the companies can negotiate in the financial sector and find liquidity and allow the financial ministry to provide those resources later on time. And that could be a way to have liquidity that the market extremely needed. As Esteban was mentioning, we are doing all our management and process to continue having conversations with the government and be able to receive those subsidies on a timely manner that is very much needed for the entire sector. Thank you very much. Now let's go back to Zoom to the section of Q&A. There is a person, an anonymous person with a very important questions. First of all, we want to congratulate you for the performance in the first quarter and the advancement in the program. But if you can provide more color in relation to the mainstream projects, is there in La Guajira region, are there changes? And can you provide an update to the project in La Guajira? Thank you very much for the congratulations. It's a very important space. Mainstream, the purchase, as we were mentioning, is a portfolio of 675 million. The most important project was Andromeda by the level of advancement. And it was one of the projects that generated more interest in the portfolio they had. The Eolic projects, they have a very important difference in comparison with the Eolic projects from Enel or other that are part of the La Guajira region. And these are closer to La Guajira. They are in the lower part of La Guajira in the border with Cesar. They have some differences that are developed in private land. Those are projects that are developed as well as our rural projects in -- where there are some contracts, and they have developed some contracts of leasing with some owners of properties. So in terms of the difference that they have with the other projects from La Guajira, we would need to highlight that. But I say that the biggest part of our value was to have access to the Andromeda project. They have environmental -- the project have environmental licenses and the land very well work. And of course, there are the topics related to connection that we will be working as well as in the rest of the project. In regards to the La Guajira project, we continue the development part. Last week, specifically, we had -- with the communities, if you remember, we had 2 communities in the influence area of Camellia project and the prior consultations were not closed. And last week, we were working with those communities to reach the final agreements for the prior consultation and continue advancing in the licensing for the Cameia licensing. We do the same thing with the licensing project of the environmental transmission line that connects the park with the substation, Questitas. So what we want to tell you is that in La Guajira, we continue with our projects in the development stage in the topics that we have mentioned, which are the closing of the consultation and environmental closing in the park. And 2 questions from Ricardo Santoal. One is related with the topic. And the first is, can you give us an update of the availability, gas contracts in Tesorito? And second, Ecopetrol bought 49% of an gigantic project. How are you exploring the area in regards to Tesorito, Ricardo, thank you for your questions. As we have always mentioned, Tesorito continues having its 2 contracts, one of gas contract in firm. And when the scarcity discussions are donated and they comply with that, of course, it's a contract that in this moment, in this month, has not been needed. It is there, continues to be there, complying with the obligations in that contract. And we have for the generation, that is something related to the day-to-day activities that our team of generation tries to find the best conditions, including the purchase under the agreement that we have of occasional fuel, but the conditions for these trimesters were not there for the situation. The rains came back, and the use of the thermal resort was not the same. So the equation market conditions change. We insist the gas, the fuel is still there. And of course, as Carlos was mentioning, the narrowness of the market and it will -- it is not a novelty, but it's something that we need to continue facing from our teams and the market. So the thermal plant could be on when the system needs it at a competitive price. And the last question about the remote auto generation. We have always believed in auto-generation. As we have mentioned, our solar park is part of auto generation. remote auto generation, Carlos, correct me. There are a few things missing to actually be there, but that is something that we are going to be analyzing, but I leave Carlos for that, Ricardo. Remote auto-generation is a topic that has been discussed. There are some draft measurements for the sector, and we have already mentioned a few comments, but the final measurements are not there. So, we, in the country cannot be or make a firm negotiation. But of course, we want to have a balance in this type of figure and those measurements that incentive those figures continue being against the users in general. So, what is being discussed in that remote auto generation should pay the transmission or the distribution charges, and how the remuneration of the charge for trustability of those clients that attend to those figures will be. So those are the topics that are being under discussion. We need the government to take a final decision in regard to that, make a final decision and evaluate how those measurements will remain and talk with our clients. What Esteban was mentioning, Celsia has been a company that has always wanted to generate auto generation measurements for our clients, and we remain really attentive on that. Thank you very much, Carlos, Jorge has a question. It says, in which way the electric sector is being prepared to face the regulatory framework in Colombia. We see companies, environmental companies getting out of the country even with the licenses approved. And these are some of the challenges that the sector faces, especially with the hostile policies from the government. We agree that sadly, this government has given a series of signals and measurements that they have proposed and some has been materialized and others haven't that have generated great uncertainty in the sector. And sadly, that has led that some colleague companies that were entering the sector and we would see with good eyes and receive new competencies and companies investing in our sector, they have decided to stop their investments, maybe some of them leave the country. So, what we are doing from Celsia and all colleague companies, it is to continue giving signals to the government in relation to that uncertainty and providing proposals that are reasonable and we'll continue with the line that the sector has been working, of course, attending that we have opportunities to improve, and we recognize but those changes generate a great uncertainty with the consequences that I have just mentioned. And hopefully, the government in the period they have left make the best decision possible topics that we have already mentioned throughout this conference. And of course, we hope that the new government that will come whether their political affiliation, it is, but can have in the sector some signals of trust and higher profitability that the country needs in order to guarantee the trust in the electric supply. Well, 3 questions from Sebastian. Thank you for the conference. What plans does the company have to rotate their portfolio in Central America or find new opportunities? And what is the strategy in that region? The second question is, if you can remind us the alliance in terms of terms and scenarios in case that Cubico decides to leave Colombia? And if you can share or remember the guidance of financial metrics for 2025, and how it has changed in comparison with the expectations that you had for this year. So, let's start with Central America, Esteban. Thank you, Sebastian, for your question. Central America is integrated to what we call the energetic efficiency business, and the majority of our business in that region is actually that solar ceilings and electric efficiencies some dedicated farms. Today, $6.1 million, it is integrated all our activity from Central America, and that is the pathway that we are working with the region. We still have the thermal plant Colon after Vaas Minas. And of course, that is a plant that we are seeing our options in regards to the future, but it's very small in terms of the weight that the organization has. The biggest part is in energetic efficiency and the opportunities of growth, we are seeing that in that area. Where we remind you the topic about Honduras, where we have had a very important entrance in we have the Flor farm that serves to Argos cement. And also, there is as our corporate videos, we have the biggest solar scene that we have and the biggest one in Latin America that is in our clients in Honduras. So, there is where the effort or the strength in Central America, and we are taking the region to be a very important part of that business. The terms with the alliance with Cubico, of course, I cannot give you too many details, but I think that the sense of your question is that either of 2 parts has obligations with the other. And of course, what is there is a scope in terms of the projects that are presented and those projects are presented and accepted in order to continue having the investment. We have had a very good investment with Cubico and a great partnership with them. We are going to accumulate 600 megabytes build, and we hope that we can continue giving them or establishing them new projects and to continue in Colombia will remain be materialized in these new projects. But of course, about offering them good projects to this alliance in order to materialize that investment. We didn't see guidance, the most important guidance that we have had this year has been Energisa project with its 4 or 5 initiatives, which is the reduction of indebtedness 3.85 if the financial team doesn't seem wrongly. The second, of course, is to identify those initiatives to reduce or by being more efficient, do things differently to find opportunities to reduce in the third to materialize the value of our entrepreneurships. Number 4, it's closing the link with new capital, $300 million, and of course, continue executing the requisition of shares. That is our guidance today in terms of the objectives. We haven't had more guidance in the rest of the data. We are saying that this is the guide. We continue to the message of on leverage, which is a topic that will be seen with greater strength at the end of the year in the second semester, but the beginning of the year is very positive in achieving those objectives in terms of indebtedness reduction. Well, those are the questions that we had. Thank you very much, Sebastian. I don't know if there is any other question on -- apparently, no. So, Esteban, I think that we have today for the first semester quarter of the year. Thank you very much for being here. I hope we all did wonderfully by replacing Ricardo. See you in our next video call of results and hopefully with great news as this one. And in social media, Esteban, we're going to be talking a lot about Energisa and the results of the repurchase. Those who are on Zoom can scan the QR code and subscribe on our newsletter, and thank you very much. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]