Grupo Argos S.A. (GRUPOARGOS) Earnings Call Transcript & Summary

[Development ] business. Pablo Arroyave, Vice President of Corporate Finance; Odinsa. And [indiscernible] President of Protección. I want to remind you all that our website, you can find out all the available information for this quarter either with the presentation that we'll be following under the teleconference. To download that you can access the menu, financial information and afterwards in the section reports. I want to invite you now to move on to Slide #3 of the presentation, so we can start our meeting for which I give the word to Jorge Mario Velasquez, President of Grupo Argos.

Thank you. Juan Esteban, and good afternoon to you all. Those that are with us today, thank you for flexibility. And for accepting this hour and this time that we've proposed for this conference. We also want to thank you for your presence. And as it's been usual, we have a conversation starting by -- we're reviewing it from our side and the presentation that will you have available. And afterwards, we have a space for you to ask those questions that you consider necessary. As you might see, year 2022 has been an extraordinary year for our businesses. But nevertheless, the relation of these results with the price of Grupo Argos stock and the fundamental value of the company still are inconsistent. That's why we want to start by sharing with you how are we advancing in these different strategies, strategic strategies that we have for this business. So we could [ defend ] the share of our stakeholders. And so this could be materialized in our business vision in the listing of strategic assets in different stock markets, more efficient stock markets and the simplification of the society structure of the company. Further to be a real transfer of value in a more direct value to our all of shareholders. So let us start by the listing of the cement assets for Argos in the United States in the New York Stock Exchange, where we are glad to say that we've successfully advanced in this line. And what we have announced at the beginning of this year, we want to reiterate that listing of the cement operation of Argos in the United States in the New York Stock Exchange keeps as a strategic priority for this organization that articulating the necessary efforts in order to materialize in the right moment. Within the most relevant milestones for these operations, we want to highlight the refinancing of $750 million of debt that strengthened the capital structure and it will put with a variable rate conditions as linked to different ACG indicators as the naming of Simon Bates, as CEO, Argos United States. So I would invite you now move on to the infrastructure side that you have on your screen. In addition to what we've added in terms of the listing of the cement assets in the United States. The entrance of Macquarie Asset Management. So this is a partner shows the trust of the first level of investor in the different strategic initiatives that the organization has been advancing. In this case, in consolidating the infrastructure assets for Grupo Argos. In just 1 vehicle. That afterwards can be listed in a liquid and efficient stock exchange. We also want to highlight that the listing of this vehicle will happen in the midterm after this has been structured consolidated with favorable market conditions in order to have the right price that can transfer this value to our shareholders. This segment has been the access of Grupo Argos for the last 10 years. And the materialization of the transaction will allow us to keep on advancing in the consolidation of the regional platform for infrastructure assets. Right now, we're evaluating the different mechanisms and different business alternatives in terms of society, in terms of finances. It will be the most efficient in order to consolidate this vehicle that will not assets with similar characteristics in which we want to highlight stable cash flows, predictable cash flows and with a long-term investment horizon. In addition, this consolidation will allow an optimization to maximize operational efficiencies, taxation efficiencies and capital structure efficiencies. It's also worth to mention that this business model is essentially the same that other infrastructure asset managers such as Brookfield or Blackstone, where the company acts as a professional private fund -- funds and charges, administration commissions and success commissions to the different fund investors during the last years, Grupo Argos and its different branches have advanced in this direction and have successfully created private capital funds for types of assets where we've had linked institutional investors, such as the case of Macquarie or Cubico Sustainable Investments at the energy business. This grouping will enable a larger growth and will allow us to maximize the profitability given that the company will not just have returns for the dividends of its investments, but it will also be remunerated by its intellectual capital and due to the management capacity for these assets. In this line, we want to broaden a bit the information that we have in terms of the closure of the airport platform. But for COP 1.4 billion between Odinsa and Macquarie Asset Management, we have recently announced. This is a very important milestone in the consolidation of Grupo Argos as an infrastructure asset manager. That's a key player in the region. Macquarie and Odinsa each one will have a 50% participation in the airport platform that at the end of this transaction, we'll count with 65% of Opain ownership for El Dorado Airport and 46% for Quiport that's Mariscal Sucre Airport in Quito. In order to perfection the business between Grupo Argos and Odinsa will sell to Macquarie Infrastructure Partners, 32.5% of Opain for [ COP 221 billion ] and for Quiport $81.5 million. Afterwards, this will be contributed to the platform. In addition, Odinsa will contribute the remnant participation in this concessions at the same platform, given its broad capacity experience and launch of these assets, Odinsa will continue being the manager of that private capital fund. We want to celebrate and thank for the trust of Macquarie, a strategic ally, first level strategic ally that shows our investment philosophy, Macquarie is an Australian company that offers financial services that administrates the different assets around the world and leads to the main infrastructure fund around the world has assets under the administration that reached $500 billion has experience in the sector with more than 50 roads around the world and as well as for Grupo Argos, Macquarie is sustainability. And guarantee the highest labor and ethics standard, as fundamental for the investment process. This new platform will be additionally constituted by all of the different private initiatives led by Odinsa in Colombia, knowing that the New Cartagena Airport that seeks to develop the necessary infrastructure to support the demand of passengers traveling with that city for the next 50 years. Second, El Dorado Max, an efficient solution to maximize the usage the current terminal of the Bogota Airport; and third the Airfield of El Dorado that's thinking about improvements in the different roads and landways. Now I want to invite you to move on to slide that summarizes the consolidated financial results. The consolidated results of our operations allowed us to close September with accumulated revenues of COD 15.6 trillion, growing 31% compared with the same period last year and an EBITDA of COP 3.9 trillion with a 14% growth. From its side, the net profit closed in COP 1.05 trillion, growing 10% and the net profit of the control in COP 583 billion, growing 17%. In the 10-year period, the consolidated revenues of the company went from COP 6.7 trillion in 2012 to COP 16.3 trillion in December 2021 with an compound annual growth of 9.3%. In last years, more than half of these revenues have come from outside Colombia, which proves the consolidation of the internal international presence of this business group. And besides this, since 2017, on average, 40% of our revenues have come from different sources than the cement business. Our diversification has not just been geographical, but also our business lines. In this same period of 10 years, the EBITDA went from COP 1.68 trillion to COP 4.3 trillion with a compound annual growth of 10.4%, higher than the increase in revenues. Finally, the net Profit went from COP 344 billion to COP 1.2 trillion with a compound annual growth of 13.3%. We are glad about this, not just because of our expansion, but because this has been supported by a better position and a stronger financial solidness. In a volatile environment of our exchange rate, Grupo Argos accounts with a larger stability and flexibility because of the benefits that we've had from the diversification of our different growth in the last decade. Now I want you to go over a summary of the cement business. At the end of this quarter, Cementos Argos reported EBITDA that has been the largest in its history. Empowered by the favorable results in Colombia and mainly from the United States. This added to the efforts to mitigate the inflation pressure and the energy cost has allowed the company to keep its EBITDA goals more than COP 2 trillion for the end of this year. Despite a challenging economic future in terms of the housing sector as well as due to inflation. The cement business had a growth of 23% year after year in its EBITDA. Everything driven by the competitive advantages of its logistics network. And because of the capacity of transferring the increase of costs into the price. Prices increased 16% in the United States, 18% in Colombia and 26% in Central America and the Caribbean. If this is a proof of the operational excellence that this company has, that since 2017 to 2022 shows that EBITDA goes from COP 1.4 trillion to more than COP 2 trillion, while the net debt over EBITDA ratio drops from 4.6x to 2.8x. In operational terms, the cement volumes reached 4.2 million tons, slightly less than from previous year. The concrete business presented a growth of 6% in dispatches, reaching almost 1.9 million cubic meters. The Argos Cement revenues reached COP 3.1 trillion with an annual growth of 25%. The EBITDA reached COP 583 billion, this means an increase of 23% compared with what we recorded same quarter last year. In particular, we need to highlight that this was a great measure due to the U.S. regional that presented growth for more than 20%, both in revenues as well as in EBITDA. Now I want to invite you to move on to see the results of the energy business. For the third quarter, Celsia continues accumulating positive and outstanding results. The strategy that has been led by the company last year's focus in strengthening the generation portfolio for renewable energies added with a stable flows that have been consolidated with the consolidation of the business of distribution centered on the customer and also led by the favorable conditions in terms of energy demand, keep impulsing a period of undoubtable growth for this business. During the period, Celsia continued implementing a powerful investment plan that for this moment of the year, adds COP 1.2 trillion that have been executed. The materialization of this plan ratifies the commitment of the organization with the energy transition in Colombia towards nonconventional renewable energies and the support to the long-term competitiveness of our country. We also want to highlight during this quarter, the start of the commercial operations since the 14th of September of El Tesorito plant. The investment platform to support the renewable generation portfolio that offers competitive and reliable energy to the system. Tesorito accounts with an installed capacity of 200 megawatts and is equipped with 11 natural gas engines, the plant counts besides with the low -- by reliability and energy obligations to 1,665 gigawatts hour per for a 20-year period. In addition, we also want to highlight, that thanks to the dialogue happening between the different companies and the different deals of the electric sector, Ministry of Energy and Craig, Celsia decided to follow the government call to modify the indexators of the energy rates. We estimate that this adjustment in the rate will have an impact of approximately COP 24 billion for Celsia's revenues in 2022. All those reductions will be 100% translated to our business partners between -- to a customer, sorry, between November and December. We estimate that after the accumulated reduction of both months, the rates in [ VAT and Tolima ] will drop into a 5% and 15% depending on the particular conditions of the market and of the customer. These decisions that benefit our customers represent an effort from the company, these measures will also be supported with operational excellence and financial discipline initiatives in order to maintain the operational margins that remunerate the capital of all our shareholders. Now we want to mention about the results of the upcoming slide. Energy that has been generated for the period closed a 1,400 megawatts, and we commercialized 942 megawatts hour with growth compared with the same period last year of 14% and 4%, respectively. As this Generation and Commercialization growth added to the better energy prices and usage rates in network connections were reflected in historic financial results for the company. The revenues of the quarter close to COP 1.3 trillion with a 33% increase year after year leveraged by a larger generation and a better energy price and better rates. The consolidated EBITDA reached COP 424 billion when excluding nonrecurring operations, which equals to an annual growth of 34%, led mainly by the positive contribution of all the businesses in Colombia. The EBITDA in the country was COP 342 billion with a 35% growth, while in Central America, it reached COP 82 billion, growing 29%. The EBITDA margin for the quarter was 32%. Now I want to move on and review the road and airport concession business, starting from Slide #13. Before going to the operational and financial results of this business, that keep showing positive dynamics. We want to broaden over which changes in the book keeping that we'll find in the concession business given to the closure of the transaction of the road platform with Macquarie. Since this quarter and towards the future, we'll see a material reduction in the revenues, EBITDA and net profit of Odinsa, explained mainly because of the deconsolidation of Autopistas del Café, Malla Vial Del Meta and Túnel de Oriente. This bookkeeping changes reflect the materialization of the asset manager vision and prove the relevant metrics in order to measure our sales asset infrastructure asset managers and must be in the measure of the operational performance and the cash generation of the assets as towards the future will be reflected via dividend and management fees. It's also worth to mention that as part of the generated cash of this transactions with Macquarie, Odinsa has been able to reduce notably its leveraging. A key milestone that gives flexibility in terms of the increase of the exchange rates that we are seeing around the world. The company's consolidated financial debt closed third quarter in COP 692 billion, decreasing a 78% respect to the previous year. Product of the resources that we've obtained during these operations. In terms of the separated debt, the balance at the end of the third quarter of this year was of 998 -- sorry, COP 498 billion, 67% less in comparison with the same date previous year. Previous to the vertical, these 3 concessions were accounted as subsidiaries. And because of this, we consolidated in our lines, the financial sales of each concession with Odinsa. When we sell and we contribute 50% of our participation in these assets to the private capital fund Odinsa must recognize this as an associated investments and keeps it in, in its books through participation method. This is not consolidated anymore. This means that I take the net profit of the fund for personal [ tools ] participation. The same effects we'll see for the airports once we reach the closure of the vertical as we will detail -- as we detailed at the beginning of this call. Now moving on to the results of the total traffic of the road concessions. Odinsa disclosed the quarter in a figure of 107,000 vehicles per day. This is an increase of 7% compared with the same quarter last year after excluding the ADN and BTA contribution, the growth that we just invested in the Dominican Republic. From its side, the airport traffic closed in 10.8 million mobilized passengers growing 57% compared with the same quarter 2021. Drilling deeper in the operational metrics of these platforms, the traffic levels continue improving, which -- and translating into a larger expected TIR for each one of the concessions. We want to mainly highlight the numbers of Túnel de Oriente, in which the average daily traffic increased 21% compared with the same period last year. And where it has already reached levels that we estimated would not come up until 2032. I mean by this 10-year after, this is excellent news for the profitability of our assets given the changes in bookkeeping as we've mentioned. From now on, we'll keep transmitting to the market with larger detail, the evolution of these operational figures given that this allows to understand better the way of measuring profitability and the cash flow for the company in each one of these concessions. Going down in the traffic metrics for the airports that will be part of the same platform with the MIRA. We've found that both Opain -- both our airport as Quiport, Quito's Airport present traffic growth higher than 50% compared with last year. This in consequence is translated in the larger expected profitability for both concessions, highlighting the expected TIR [indiscernible] that goes from 13% to 18% with respect with the previous year. Let's move on and look at the news of the Pactia and the Urban Development Business. Real estate business operated by Pactia had an effective gross revenue of COP 103 million with a 17% growth year after year, and the EBITDA for the quarter was COP 52 billion with a 35% increase year after year. After this adjustment to these investments, our gross revenue and EBITDA grew 16% and 33%. In terms of the same assets for the accumulated year, the operational net revenue and the EBITDA grew a 25% and 34% versus the same period last year. And the business generation dynamic keeps being highly positive during the quarter, there were contracts renewed for 88,000 square meters, and we commercialized another 25,000 square meters at the end of the period. The fund reached a record commercial occupation for the non-hotel portfolio of 97.4%. These sectors have show the largest recovery were off existing hotels with a growth in revenues of 24% and 110%, respectively, compared with the third quarter 2021. Mainly driven due to the economic recovery, better occupations in both products and larger or higher hotel rates. Besides this, the hotel portfolio reached a historic level of COP 155 billion with a 17% increase versus the same period last year. Finally, Gran Plaza, shopping malls, the average sales per square meters have grown in 19% since the first quarter of this year. And in storage and logistics, we want to highlight that from the 426,000 square meters that we have in industrial assets. And the 8 U.S. storage buildings, we closed the quarter with commercial occupations of 99.9% and 91.5%, respectively. Now I want to speak about the results of the Urban Development Business. In this quarter, the Urban Development Business keeps a show in a very outstanding results. The cash flow revenues for September increased 57%, obtaining a net cash flow result. That's 150% higher than the previous year. This quarter, we had more than COP 1 billion of profit in the Sofitel Casablanca hotel, and we started receiving revenues from residential stage 3 from that same project. Besides, we signed 2 promises in the Puerto Colombia that allowed the revenue of more than COP 4 billion in cash. In the P&L, this quarter, we registered the session of 2 plots, 1 in Barranquilla and other 1 in Baru. With this, we reached an accumulated revenue of 10% in sales revenues. We also want to highlight the success of the call we had for the third stage of Ciudad Mallorquín. In Barranquilla, 13 useful hectares from which we'll build 5,000 VIS apartments in the Puerto Colombia municipality. Sofitel is still recognized as one of the best hotels in the region, which is reflected in the rate and returns that has been registered to this date and has led for them to keep on exceeding the expectations that we had stated at the beginning of the operations plans for this asset. The positioning of Sofitel Casablanca together with the attraction of other brands that are in process of development have allowed us to advance in the Baru consolidation within the national and regional touristic market. Now I want to -- I want to invite you to go over the consolidated results. Revenues reached COP 5.1 trillion during this period, which represents a 24% increase if we compare this with the same period last year. Largest sales level was translated in an EBITDA increase that close to COP 1.3 trillion with a 10% increase year after year. While looking at the September results, we reported an accumulated EBITDA of COP 3.9 billion, with the growth -- COP 3.9 trillion, sorry, with an increase of 14% compared with the same period last year. The net profit of the controller accumulates to the moment COP 583 billion, which shows an increase of 17%. On Slide #22, we could see the variation of the contribution of each one of our businesses to the revenue and to the consolidated EBITDA. This can be found on the right side. In this graph, you can clearly see the good performance of all the company -- all the businesses of the company, which presented during this quarter a very good operational and financial growth. Even though the concession business presents a reduction to the accounting contribution in EBITDA, given the deconsolidation of the [ Vehicle ] assets for roads, they're preparing Odinsa for a long-term powerful growth. Now I want to invite you to go over Slide #24, in order to analyze the positive evolution of the consolidated indebtment of the company. In this front, I would like to highlight the amortizations that have been done during the last 12 months that reached COP 1.3 trillion, achieving an 8% reduction in its consolidated gross debt and 13% in the consolidated net debt going from COP 16 trillion to COP 13.9 trillion. The largest part of the indebtment reduction is led by Odinsa and Grupo Argos. The separated financial results as well as consolidated financial results, show positive results. The accumulated revenues were closed in COP 623 billion, an 8% increase compared with the same period last year. And at its time, EBITDA closed in COP 437 billion, and net profit in COP 337 billion. Separated debt of Grupo Argos detalied on Slide 28, closed the second quarter in COP 1.4 trillion with a 99% due dates -- with 99.9% of the due dates after 2023, which grants a complete financial flexibility to the company, and allows closing the period with a healthy investment indicator and aligned with the current credential rating. Financial rates have increased globally, and this has led to the debt cost closed in 10.5%, which represents an increase compared with the rate of September 2021. Nevertheless, the company has implemented a series of hedging mechanisms that have allowed to partially mitigate these rate increases. If the company have not implemented these types of tools, the financing rate could be 200 basis points -- sorry, 300 basis points over the current level. Within these strategies by the treasury office, we want to highlight that the company comes with a fixed rent investments for COP 180 billion, which generated a positive carry. And given that there are performances that are over the actual debt of the cost that we have. Now I want to speak a little bit about sustainability. These are found in the main axis of the strategy of this company. Moving from the financial results to other milestones in this dimension. It will never be enough to highlight that this company -- in this company, we just don't create economic value, but we are completely convinced in the creation of social value. We share with happiness, the result of a survey of a survey done by Forbes Magazine, in which Grupo Argos were declared as leading companies around the world due to its practices around gender equality. And this addition, the company occupied a privileged place between the more than 400 surveyed companies. Being the only Colombian company that has been registered in this ranking. The recognition that we received more than pride with lots of energy to keep on working in order for Grupo Argos to be a better place to work. We also want to emphasize that this is an ongoing process with lots of challenges to be undertaking that we have approached with our highest conviction for us to play our part in leveling the field for the different collaborators independent from their gender, race, sexual orientation political orientation or background. It's also fulfilling to say that S&P Global has stratified the rating of Grupo Argos in the sustainability global rating, 88 over 100 consolidate this group as one of the best reference in terms of human rights, corporate governance, risks, philantrophy corporate citizenship. This is another achievement that helped us to support the financial solidness of the results for this quarter. In addition, last October, Grupo Argos was reaffirmed as the business group with a better reputation in Colombia. According to the last ranking published by Merco, to monitor highlighted Grupo Argos as one of the 10 most valued companies between 100 companies that were measured in Colombia. To close, last week, we received with pride. This organization is part of the 12 organizations in the country that have contributed the most to social, environmental and economic change in Colombia. In this addition, we were recognized by our Creamos Valor Social program. It's an initiative that strengthens the social role of the company, focused in offering opportunities and contributing to the sustainable economic reactivation of the country, more specifically in the young population that requires us the most. Moving on to our guidance. And what we have for the rest of the year, I wanted to mention that we keep those numbers that we initially shared. We want to close -- going over the COP 17 trillion in consolidated revenues. We hope to end with an EBITDA between COP 4.4 trillion and COP 4.6 trillion. The net profit between COP 1.2 trillion and COP 1.3 trillion. Before closing, I wanted to briefly mention the ongoing OPA that we have, with the actions we have with Grupo Nutresa. From Grupo Argos, we want to offer the ease, as we've always done, that this offer will be analyzed independently, objectively in depth and professionally by our Board. Once be a shareholder assembly grants that the required authorizations in terms of potential conflicts of interest of some of the members that have already stated. So for this effect, after 9th of November, we called them for an extraordinary meeting of the Board that will be held to Memorial in its right time, the company will share with the market what is the decision taken by the Board. For the moment, I would like to briefly mention about the process of the tax -- of the taxation reform that has been happening in the Congress. Finally, I want to celebrate a part of the reform is focused on structural reforms that will be used for closing equality gaps in our society. We agree with principles such as progressiveness and from the private sector, we've made a call to ensure that the mechanisms where we can access to that collection that the country requires do not go against the competitiveness and the investment appetite that have imposed the Colombian development during the last decades and that even today, are even more fundamental. From Grupo Argos, We have a conviction to ours are as a country, and we have been quantifying all the possible impact in our businesses. Nevertheless, we would like to speak about some specific points briefly. Just to clarify questions that might arise. First in Cementos Argos, I would like to highlight that we can free trade shown has besides a very important export participation, a legal stability contract up to 2028. And besides the effect of the royalty taxes is less for our Cement business. From another side in the electric sector on a highlight that the company has other revenues further than water generation, such as other sources of distribution. But it seems that this will be a passive subject to our overrate for hydraulic regeneration given that this is not its main economic activity. And finally, in Grupo Argos, we want to highlight the fact that during the discussion and final approval the minimum tax was purged for the holding companies, which would might have had a very significant impact with a double position for Grupo Argos but that was eliminated in the final text of the reform. Now I want to give the word to Juan Esteban Mejia. So he could proceed with the Q&A segment led by all the executive team that I have in my side.

Well, thank you, Jorge. We've been receiving some questions, but I just want to remind you all of those that are connected, you can ask your questions in the Q&A widget that you might find at the bottom side of your screen in the sub chart. First question, [ Sebastian Toro ], asked about Cementos Argos. What aren't you thinking on a spin-off of Argos USA, if this would materialize value direct before -- for Grupo Argos and Cementos Argos, why not making a dual listing?

Well, Sebastian, thank you for your question. This is a very in-depth question. Due to legal effects, given that asset place in United States territory, we could not go into specific data guidances for this project. But just let me speak about the structure. We've said that the cement assets of Argos in the United States are grouped over a series of investment vehicles that a group of the cement production assets, concrete, terminals, ports, logistics operations in that country. Those assets will be listed in the United States market. And because of this, accessing to the valuation or price of a market with necessary [ debt nets ] that value transition that we have been immediately, in the moment that those assets are placed in the American market, we expect that be a price or the valuation that the market will give to these assets who allow to effectively do what you're saying and that's a transfer of a direct price marking of the Argos USA asset towards Cementos Argos, that's where they are. And then to a Grupo Argos and then different shareholders plus Grupo Argos and its shareholders. Why don't do this with a spinoff or with the separation. This is one of the alternatives that we've looked at. But this also has a certain consideration in terms of taxation and society speaking for certain types of investors that might lead them to think that the best structure and the easiest one in terms of value transfer. And the one that we could do the easiest without fixtures is for it to be a society vehicle owned by Cementos Argos that listed. The effect is the same towards the Cementos Argos value and towards the shareholders. But the decision has other considerations in fiscal or the possibility or appetite possibility for certain investors to participate in that company. Nevertheless, it's an option as you say in the dual listing might be done in any moment. The easiest would be doing this under the Argos umbrella. But the total assets, the total independent assets are the ones that will be listed in that country.

Well, in addition, [ Sebastian Toro ] also asks with a projected profit of COP 1.2 trillion, why don't you repurchase assets, considering that the shares are 1.25x equity value. In addition, as what business could offer a better yield than that repurchase?

Well, that's a very good question. That we've been analyzing not just in Grupo Argos, but also in our different branches. These initiatives also that are being studied reacquisition and mechanisms that we need to verify whether it to be the necessary reserves or for there to be a reacquisition in a deterrent moment. But this is an initiative that we are not leaving a site. I would not like to give a specific answer of where are we going to do this? But it's definitely an alternative that we are studying with lots of interest. We are also, in a moment, we work close to the platforms. And this has allowed resources that might be used in this path. But wanting to be careful, I want to be also prudent with the flexibility and the liquidity that the company might have in the conditions that we have been presenting in the financing market that's a bit tougher, but also with the eventual less liquidity facilities that we've been thinking of. So in the balance of the technical topic compared with investment to our shareholders. And in order to guarantee the payment of dividends and liquidity and the sustainability of the company, we're evaluating that one between other alternatives.

Rodrigo Sanchez asks about Odinsa. If there is a pipeline of important projects. Many of these projects would just require investments in long and midterm process. And what would be the destination of resources that will be obtained for the airport vertical, dividends, repurchases or acquisitions?

I can provide this question in 2 answers, and Mauricio, you could maybe mention a little bit about the pipeline of the projects that we have. And after which we can speak about the eventual resources. But this is also important to mention the closure of the airports. [ Intake ] we have for the closure of the airports.

Well, thank you, Jorge. I would greet you all, good afternoon. First is the project of the airport vertical. We have an estimation that it could be first quarter next year. As you will imagine, this will require a series of authorizations, both in Colombia as well as in Ecuador. Where we have the authorization project granters but also for the different entities. Superintendents and another entities that regulate them as we said, and we hope to end this first quarter next year. Second is during the scope of the -- we have with Macquarie Alliance both for roads as well as for airports. In between every parts are -- there's an understanding and expectation of growth. That's not just supported in the projects that we have in terms of the structuration broadly speaking of, but in identifying the different market opportunities both in Colombia as well as in Latin America. Particularly in Peru and Chile's as we had announced when we closed the roads vertical. In that train of thought, we're looking for opportunities in the secondary market, opportunities that make strategic sense in terms of the project portfolio that we have under administration. And obviously, we keep on imposing the initiatives that are under position. In particular case of airports, we have in this stage -- in the stage of socialization of the Campo de vuelo initiative and that Jorge Mario spoke about previously, pretends optimizing the operation of the El Dorado runways, in order to have the larger rotation in the airplane flows. The idea here if this is successful, the investments would be in the midterm, we are thinking that at the end of next year, we should be ready to make a type of investment, different from the Cartagena airport. Moving the airport to the Bayunca area. That's following its structuring phase and might have midterm orientation as a El Dorado Airport. In the case of Vías initiatives that we know as Centro that's defined by [indiscernible] and other zones around the coffee region and the broad corridor that we currently administrate, we're accelerating the structuring process in the measure of possible because the expectation we have is that this is going to be a corridor that might start its development around 2024. So in summary, we have a series of pipeline projects, some short term and some midterm, we're seeking for opportunities and obviously, the investment figures that Jorge Mario spoke of, we have the expectation next year to make an additional debt amortization.

Okay Mauricio. Thanks You. In addition, Rodrigo Sanchez asks. From the optics of Grupo Argos, I don't know if this has been covered. The question is as you go about the use of capital. I can collect this question. And the 2 questions on the answer Mauricio with the previous one of the reacquisitions. From the optics of the business, the resources that will be added, as Mauricio explained, we're balancing and carefully between the development of the initiatives that we have for the pipeline with the reduction -- with the debt reduction or dividend payment, but we wouldn't be sure that the growth opportunities that the organization has in face with the commitments we have for another business partner to keep on growing, not just in Colombia and the region, we keep on doing so in a responsible manner. And these are resources. And as Mauricio explains that an or the project pipeline or the other identification of investment alternatives that we might find. We consider this might go to shareholders for usage, as I mentioned, the first answer is any of the alternatives, depending on the situation of the country and that the company might have next year. And liquidity resource availability, indebtment and the availability of making repurchases. So Mauricio's answer is tied also to Grupo Argos because this is a group decision, will we determine which portion of this resource goes to new projects to new alternatives or which of this can we count with for reducing our leveraging.