Grupo Energía Bogotá S.A. E.S.P. (GEB) Earnings Call Transcript & Summary

[Audio Gap] conference that we've got here, we're going to give you some instructions in the chat for you. Listen to them very carefully. In order to register as a company related to the questions session as well. Also, we're going to -- and at this moment, we're going to be here to Spanish channel. And finally, we're going to take into a conference, we're going to have next, please. We're going to have a brief presentation to our main presenters today, Juan Ricardo Ortega, our President; Jorge Tabares, Vice President and we're going to have a participation of high management and leaders of the business that we're working here together to answer your questions related to these financial sessions. Now we're going to have Juan Ricardo for these new messages and the initial ones as well.

Okay. Good morning, Valeria, and everyone and the whole team and all the attendees of this conference. This is a pleasure for me to be here with you and to tell you about some other semester in 2021 briefly and some results we're going to have 360 [Technical Difficulty] incomes with profits of [indiscernible] million, which is going to be an increasing. We're going to grow EBITDA consolidated of COP [indiscernible] million. This is just a little bit that the inter according to the other digits as well related to COP 500 million. So this is briefly diminution of 1.23%, is 95% related to EBITDA as well. This is when achieved related to the expectations as well as progress of the drops that we have related to Barranca as well and the work that we have been working together, it has been really important, one is the incomes and resources that we have related to the expenses as yesterday. And fortunately, with the rest of the group, we have been doing these campaigns, 3 important ones as well of expenses that is going to have to $20 million during the year to have a compensation? And according to the results and favorable results that were one of the most and the more important things from this EBITDA from the second semester as well is the deliver of the dividends because of the announced group of the new rule that we have. We are receiving the 90% and besides the profits of these dividends that are just delivering this quarter. We have some total income of COP 2.5 billion, which is a profit COP 1.2 million. Our EBITDA consolidated to COP 2.53 million, the consolidated EBITDA, our increase for the first semester is of the reasons that we already said. Facing the previous year, and that's why this is the role of the dividends delivered of the [municipality] because they're really focused on that. The most important here -- so in order to have clear those increasing perspectives to be able to have the agreement within decisions and approved from this July, there's going to have this kind of super societies as well that generates a high expense related to this year because we're going to be configured as well. So these guarantees an important increase in strategies as well for the group as well. It's going to be COP 5.5 billion addition of assets that were going to be a cumulated during -- here in Colombia with a diversification related to the dollar as well as 25% and hydroelectricals in Guatemala and Costa Rica, and of course, the hydroelectrics as well as generation of -- solar generation at Panama as well. And every single companies that are working because we have too many perspectives as well, and we are waiting for more prospectives in order to have the profits announced as well and affiliate within Central America from here to 2025. The most interesting part of this generation, it will be awesome as well as want to be renewable as well, related to that allows us to move forward with one of the most important achievements in this first quarter because it's the approval of the sustainability to the group. And in this group, we have this steady convenient to have the solidarity with the countries and decarbonization goals as well. We're online in order to be with the support as well, networks, not only with the renewable solutions, but at these alliance with [indiscernible] as well, in order to have some intelligence as well because of the capacity that we have to reduce as well the bad quality in the areas in some cities as well, the uses of -- electrical usage as well because of redistribution indeed, it's one of the main aspects that we've got and we have one of the best partners in order to deliver this objective. And in addition to this strategy -- of this conversation strategy, we have been working in a really strong way and we are already selling this year to extend the corporate government and this group as well, and we're going to move -- continue moving forward to guarantee the stability of the accountability as well that guarantees as well a really good usage of the capital. We have done a really important program as well related to these things in particularly within the port of files as well of the administration of every single documents and of the making decisions that we have against these kind of things as well to guarantee this process in every single of the procedures that guarantee the capacity of the group, not only to handle these kind of things as well and the accountability as well against our shareholders as well. And we need to strike -- really strong important related to diversity and gender as well, the group has warranty as well. The guarantee, of course, that we're going to complete to the agenda of 30%, of course, more than 30% related to the utilities as well and the stakeholders as where most of them are going to be women as well and the Vice President is going to be a woman as well. And we're going to start to continue working with a really commitment as well to close the gaps as well of gender and the diversity of the group as well, as minority reports communities, disabled communities as well and some central aspects within the mission as well related to where, when, what within the entity as well, where we're going to be really committed as well in the future. In addition of the accessibility aspects as well in the part of diversity and the corporate government as well as environmental challenge as well, we're going to be really aggressive as well in order to be able to be important actor players important because of the restoration of ecosystems as well with the lining of infrastructure, we need to have something really important opportunities to implement some spaces and reserves in order to be able to generate some ecosystem as we already have. These agendas have borders and the recovery process in the systems they are going beyond and to establish some as well to have the [indiscernible] to recover these mechanisms as well of sustainability in the environment where the graph is really committed to group itself. So this agenda to solve some problems, of course, I guess, it has a very good result because we already signed all the documents at Guatemala and our projects as well in Texas as well is going to be very, very well. We're going to have more than these kind of things with transmission as well, where we're going to have a big part of the licenses as well because we're going to have some documents already signed as well and come through this year as well because we're going to have the possibility to be part. We have achieved the main conflicts with some of our vendors as we're going to be able to consolidate some legal issues that we have here related to cash flow as well and incomes as well because it's going to be the best in the history of this company as well and the hybrid. And in Cali, we're going to have as well. It is going to be something really important to be able to move forward as well related to the last year and the pandemic because we have achieved these kind of things. We have some groups as well. And after we're going to be able to have this kind of investments as well at Peru as well, with the hope with all these dialogues that we have on tariffs and cycles as well. For Cali, finally, at Brazil as well, we're going to be able with some increasing expectations and it's going to be favorable. It's going to be trust and we're going to have in the goals this year. We going to have these results from here to December. Jorge is going to tell us in detail the finance digits in this first quarter. And thank you very much for your companionship and your capability to be here with us with the pertinent results of this group versus the middle of the year. Go ahead.

So Juan Ricardo, thank you very much. Good morning, everyone. Thank you very much for your interest as well. We're going to go through this material that we are already published as well for leaving just in the end the Q&A session, Carolina, next one, please. These synthesis, both messages and this recovery -- recovering and of course, the semester and every single quarter by quarter, there is some significant variations. Well, because at Peru and part of Colombia as well, remember, the second semester of quarter, it was low productivity semester as well. So we did know we have a challenge to lose just a part of the fixed income as well. And with the efforts and with results of negotiation in the whole group as well, we have achieved more than compensate this and to show good results as well. To the left, you can see the EBITDA, COP 2.25 billion, increasing 35% as well and increasing the majority of businesses contributed as well, which are the green arrows and as an expectation guide and of course, they don't diminish in a minor proportion that we have. We have this 75% of the EBITA generated and 25% as a producer of that international diversification. We've seen the 6 months in the chart below related to the incomes, we have an increasing of 3.5% increasing of the income as well operational incomes. We achieved COP 837 million, we believe inferior to the previous year and has been a little bit more in detail the EBITA already mentioned as well, and the net profitability we have a full of 1.8%, especially for 2 effects that they are not of cash flow effects. The rate change and the valuation, of course, I was presenting at Colombia in the first semester, that has an impact in the minus 4.8% and in the CapEx, if you can include some acquisitions as well, we can achieve $142 million in 55%. In order to have comparison, it's a really positive digit related to 65%. Highlight finally the leverage that we have in the net EBITDA 3.3, we're going to align ourselves with indicators and profitability related to heritage as well and the increases that we have as a really positive results as well. We have mentioned too much Enel Colombia, all you have some emphasize were in 2 topics here. The increase in and because clearly it's the future of the sector of generation of energy competitiveness as well of these 2 technologies is no doubt and the reinforce of this green agenda that is just an interactive. It's a worldwide interactive thing because we have achieved these commercial things as well. To highlight from those and 9,400 of megawatts of additional megawatts, there is going to have this company to 2025. These are some projects with name and last names as well, which are in different execution phases, 72% of that capacity is coming with renewable as well. So even at the moment of the fusion that we've got of this coming year, we're going to have 150 megawatts of solar megawatts. There's going to be the leaders in -- absolute leaders at Colombia in generation, nonconventional generation, where it's going to be -- give us the solution in order to have that profit. At the bottom to the right, we agreed total transparency related to these policies as well associated to the leverage of the fusion company. We wait due to the low leverage that the company has, we're going to receive the 90% of the transfer of dividends of this. And in Enel at Colombia, once we achieve the fusion as well and upper earn businesses that Enel is going to install or is going to develop at Colombia, something that have been delivering at Colombia is something we're going to have a huge impact in Bogota City as well. It's going to improve the lighting system, probably generating more security for citizens and generating a bigger portfolio to the customers as a benefit with the citizenships as well because we're going to be the benefactors of this new business. So we have this regulatory procedures of legal approvals and everything that we're going to be like 3 or 4 months this company exits, and we're going to start doing some recordings as well. Next. From the new sustainability strategy, Juan Ricardo mentioned before, they are emphasizing 2 points. To the left, we have the 3 main points that is going to leverage and this strategy, of course, sustainability as well because their relationship as well related to these interest groups is a really important topic for us to be able to show that everything that we do is going to be on a really transparent way. It's going to be critical as well to achieve a transparency and sustainability and trust the relationship as well, with these investments as well and in capital as well are really important in order to listen to your questions as well and according to the strategies of the company. And this transition as well, we definitely -- we try to be in the winner section as well related to this and [indiscernible] that it has really positive effects. It's going to be more negative contribution. It has an impact, it's negative impact that we have more content or diesel regards. So all this contamination and pollution indices as well. And the principles that we are mentioning here, the social acting environmental as well and afterwards, and in fact generating some making progress in sociality as well. The sustainability thing, it overcomes to a really high standard as well as we're developing some metrics as well to measure ourselves and to be able to interact and to show the progress in this agenda or of sustainability. For example, the second in the middle, we're going to be gathering the task force as well as timing disclosures as well to deliver more information the way we're going to have this evolution and the impact that it has on the evolution related to the whole operation and the rental impact that we've got. We have defined some topics related to reduction of emissions where we are really committed, and we have been reporting in that way. Next. Among the relevant facts that Juan Ricardo mentioned in part of them, we're not going to have a huge emphasis related to point is the more relevant one -- is the most relevant one. We're going to look for some investment opportunities as well. The [indiscernible] just closed these transactions. It's not available for these transactions because we celebrate this transaction as well. The national government, more than this COP 14 billion that generate to monetize these investments as well. The biggest capacity and expenses and government as well and at the same time, we do believe we create because for us, it's a really important topic. So in order to close this transaction as well, we're going to start looking for some investments, the strategy of increasing of the company. Among the points -- among some more points, this one is something that I want to highlight related to operational duties as well. We have briefly decreased according to the operational incomes as well. And I guess is the most important thing to be able to compensate as well that loss to the income insignificant, and we're increasing 3.5%, reaching to COP 0.56 million as well. And if we go below in the incomes as well quarter-by-quarter, we can see a really impressive impact within -- impressive and I guess natural as well with COP 232 million more as an income and a really high superior as well previous to the previous year as well. Related to quality, it has had a huge related to these. Because of the customers of generation, they have been demanding more gas and the company is a really good capacity to be able to deliver that service in TGA. We're going to have the opportunity to compensate the part of the loss of the incomes in this investor, we're going to go [COP 58 million] of reduction of income because of the second quarter, we're going to accumulate what we have seen and what was going to happen with the loss of fixed income as well in TGA as well is moving more volume of gas that it used to move as well and likely superior to the gas that it has moved to the system facing what we have moved into the previous year as well, I say demanding. There is a demand and what we didn't have is the fixed charges that we received related from the customers. So related to the incomes in the quarter related to this quarter 2020 increase in 15.5 with this kind of increasing as well. Related to expenses, we have in costs, this increase is an increase that is positive. Yes, there are more activity within the activities related to the second quarter. It's not a bad thing, for example, in this case because it's going to be according to the incomes. Related to this increasing, we're connecting new customers who are going to generate us volume, for example, of consumption for many decades in the future as well. We can see here, for example, by TG and TGA. And finally, related to administrative expenses, we have in the quarter an increasing of 12%. That explains to us because we received more dividends, so it's really positive matter here within that 26 from TG, there's going to be $24 million that are taxes as well in order to receive some good expense, just matter to say, it's not a negative signal. We're doing our best effort and the digits show us that we are doing more efficient as we continue with more through the pandemic, of course, the less travels as well is going to -- were to control of the expenses. In order to talk about the -- regarding to the numbers, the increase in $90. With the consolidated EBITDA as well, we have our reflex related to the diversification of the portfolio. And we see to businesses by Enel has a really significant increasing as well. This is more reflecting efficiencies and optimization of the operation and bigger sales and additional sales, which is really positive. Related to this TGA as well, it presents an increase. And in energy transmission, it's a digit, which is mainly explained by Promigas, I'm sorry, for areas of [indiscernible] more associated to nonrecurrent income from 2020 and is a one-off. If we see the below chart related to -- we were reporting in the first semester, we have a more balanced EBITDA related to the control ones and noncontrolled ones, 41% against to the 50-odd percent by TGE, but have a decreasing of 7%. Talking about these digits as well, according to this year, we're going to pass to the next slide. In the net profit is when we present a diminishing of 4.8% and the associate companies presenting a very important increasing of the 17%. That is the most important digit related to the whole chart and we can see how the health of the whole company is really robust as well. In Promigas, in the 6 months, we're going to have the 48% increasing. There is an accounting effect related to the incomes as well, which is, let's say, is not operational necessarily. But in Codensa we are going to have some organic growth of management as well, the 14% and 18% in the EBITDA as well, where it's going to help us to the digits of dividends to receive during the next year as well. And financial expenses, COP 318,000 million related to expenses of the previous year, it's a really positive digit because we have -- we're going to be able to pay and we have the indexes on lower rates as well as a part of the debt related to the financial expenses. In difference, we have 3 significant impacts in this COP 110,000 million related to the debt in dollars where we have COP 94,000 million. We have less income to COP 56 million with a positive change because of our operation in Brazil as well. The quarter semester was a semester where there has been some revaluations and real revaluations and it's going to help us to compensate this change, the interchange of COP 110 million. It's not a cash flow difference because in 9 years, we had the exploration date. So it definitely have an immediate impact. And in the current tax related to the previous period, COP 212 million in the tax as a main point to highlight from that net profitability related to COP 1.6 million as well. Next. In terms of debt, we have a little bit change. We have a lower leverage. That's why we're looking for some acquisitions and organic positions, 3.3 debt-to-EBITDA debt as well. And we are paying during this semester $51,000 related to the indicators as well. We paid just a leasing of $6,000 million. And as we mentioned, the cost of -- cost in dollars, it has been increasing and in pesos it's just minority because of the inflation as well because indexation to the inflation as well, we have -- we're very comfortable with the deadlines as well from the '21 until '22 with moderated this digit in Cálidda. We are evaluating, if we move forward and operation such a way we deleted the peak of deadline in order to have more financial flexibility as well. Next. Very good news in CapEx as well because we have achieved to growth organically speaking to the 66% growth as well to the 78% of the investments related to transmissions at Colombia where with this -- with a throttle speeding up with all projects that we're doing those darker green bars that you can see over there in the '21 bars -- '21 to -- 2021 to 2025 is very important to us and the country as well that we define these transmission lines as well where we have achieved this in significant -- moving forward in the previous significant ways because it's a field job that we have here to highlight and to understand these agreements that allows that has these solar companies of the projects that we have done at La Guajira basically. And to highlight as well also the investments of Cálidda as well, we've got some investments that basically to the '23, we have already covered the population. We have some important growth. These coming 3 years as well and the needs of the CapEx as well of the company that has diminished significantly. So according to the digit that we showed in the previous quarter as well of 2021, $55 million is a little bit lower, $200 million that we have less than the previous projection. This too we are updating, taking plan of investment of Cálidda. We were moderating a little bit more the investment. So what it has been presented here in Cálidda is the rich -- that with coverage to the more needed people where they have more social impact and economical when the expansion that the network system has and coverage as well. This is what we identified little bit of the CapEx that we had as well. We show this diversification to the last part of every single of the bars. And over there, we are just watching the ones, for example, who can attend the TGA conference. We are pending of some better conditions of risks -- reduction risks. What kind of risks we should assume of the company that will see the diversification? We're really expected -- to the expectations, we have good results to have these investment appetite due to this risk of profitability and growth as well. And to the right, we can see the indicators are improving related to the profitability of the assets as the heritage as well. Next. As you can see here, there is too many information as well. First of all, we have an operation of cash flow, a really solid procedure when it's going to have the [Audio Gap] related to dividends as well. We have more [Audio Gap] related to the previous period, it's very positive digit as well. And in CapEx of those is a 65% superior to the things that we were investing in the first semester in 2020. I guess, with this, I already ended up where we had ready and we can move forward with the questions. And with this, we give the floor to Valeria.

We have too many questions in the chat. We're going to try to group all the topics, and we're going to start with the strategical ones. Juan Ricardo, I guess, you can help us and Andrés Baracaldo is going to help us as well. And from Mary as well because some of them are related to Peru as well. So the first one would be from Andrés Duarte from Corficolombiana. With the closing of the transaction of Ecopetrol and ISA the legal closings, they don't proceed. Do you agree with it?

Well, we have been always telling that we support that the government does the transactions, and we do believe that is just a fact as well and that financial thing that is everything that we need, this energetic transition from Colombia. I guess this transmission investment is going to be centralized. I guess this is one of the future sectors. They're not renewables. It's nonconventional in every single part of the world are so far from the urban centers because that needs is huge with those investments. I guess that those kind of things from the $1 trillion Biden project because it's part of the program from the country. And Colombia has a huge opportunity with a really solid industry with this area to be able to take advantage of this growth as the rest of the world because it's going to be the future in these coming 20 years. Another aspect of really important transition as well that we have and a little bit longer is the hydrogen role as well. For example, in Colombia, there is renewable is going to be La Guajira as consumption synergies as well. So out there, we're not going to be in the phases of technological phase. Such a way in order to have a doable things going to be a really important way from the transition as well. And there is something that is really important is going to be in the transition as environmental transition and the vehicles and the heavy vehicles as well to stop contaminating and use on gas as well as fuel which is going to be a transition in mobility as well. In fact, that's what George is saying as well or Jorge saying as well, we're really with the players, they suggest that Colombia, quality of air has a dimension really relevant of this chapter of this to be able to diminish this material, particularly in the cities, has to be in the center of the policy of the country, as Jorge has said, and transports as well and passengers is going to be 2022 Bogota, Colombia from Transmilenio electrical buses or gas, and trucks, blender gas is going to be with too much successful thing with those carbon issues as well that England, for example, there are some studies that is one of the cases that explains mortality related to COVID-19 as well. That agenda is centralized as well as quality as well, we do believe for Colombia is very important to give that discussion.

Thank you. Related to hydrogen as well and Corficolombiana and Eduarte in a huge scope, which are the states of the road map of the hydrogen when you are supporting the government?

We have had some meetings with the government companies and we do believe that the country can have these kind of investments reinvesting as well. We have the willing and the disposition to be able to put some capital in risk and this learning, but we do it in a really working together wherein how can we build those vehicles. Alvaro who is going to be here because he's leader in that process with Mónica as clearly as Jorge said, we have the infrastructure in order to have this position to refineria de Cartagena, for example, of ranking the interior of the country because I had the fierce potential users and they're going to do up to 5% or 10% in the gas on, for example, this infrastructure in Barrancas as well. So we are working on that with Siemens and some other companies as well. We're working together as well, but the final decision of investment requires a pool of companies in order to make the decisions to share. I don't know if Alvaro wants to give us some additional comments.

I guess they have had the exposition in really opened way as well as a future. As Jorge has said, it's a very important transition to position -- to the noble position. And hydrogen is not detached from that part as well because we have some infrastructure, and we're really aligned as well because of that transition that Colombia is waiting because of that hydrogen that we have, as Jorge and Juan have said, we are chatting with the risk of the pleasures of the industry because it's a really country effort. And that's why we're looking for. The country is not so detach. We hope to be more active as much as possible.

Thank you very much, Alvaro. Two things to close -- for closing these things for Corficolombiana. The first one is why the second part of extraordinary dividends of the profits of Codensa and hence 2016 to 2019 has lower participation to the economical participation that used to had during this period?

Well, the delivery of the resources will come -- be from the [indiscernible] as well regarding -- doing the calculations and all the negotiations as well in order to have this participation and it's used according to the old analysis that we already included.

Thank you, Jorge. We do believe that we close, we're going to be able to use this generation of the countries where it's not going to be presented in green power in Colombia or the exclusivity in Central America, and of course, in Colombia, but at Peru, we're doing some projects during these opportunities. And in some other countries, related to those renewable things, we're part of the important things that we have the capacity to train people with them where we do believe it's going to be central as well and this part as we have been working with some strategical interest as well. For -- just for giving you an example, of course, that we have a solar park in some of the facilities locations -- solar locations as well because we can approve this know-how to develop this distribution related to electric [indiscernible] as well and we are gaining that agenda as well.

I do believe we're closing out these strategies. And Diego Buitrago is asking, I guess, when Ricardo and Andres also can contribute, how you're seeing the opportunities that are enhancing -- an organical enhancing opportunities within the region?

I do believe you cannot announce before you have something concrete because there are some opportunities produced in a huge country, but we shouldn't say, more going deep in because if somebody -- when you said that you want to buy something, prices increase. So I hope to have something very good news in the end of this quarter and to have those investments. We're doing some of the best opportunities to do so. And let's hope that everything will be right. Just to add, we have said that there are some opportunities because it's a sector that has some investments as well related to energetical situations, so really important investments as well related to energy transmissions and we're really near -- we show chasing the opportunities with responsibilities as well, that is something that we are waiting for.

Just in order to take into consideration related to data and EFX. First of all, the first question is what companies do you have within the rider? And secondly, what is the amount that the company could destine as well for organical?

The point is very generous as well related to the assets as well, but among $550 million is feasible as well, but we're not going to go deep in details because it's not prudent as well. There are some businesses as well. There are too many things. There is going to go in a good way, but until we haven't done to -- you don't do anything previously after having because we're going to have the disponibility of the debt. And we're going to start increasing in some profits -- profitable companies as well in order to have the management equalities because for us, it's the most important part as well when the governments and competitors of their human capital, they are going to -- in order to have the best people of mature companies consolidated when they have the capacity and that's what we're looking for it with acquiring related to work on this as well. And to add 3 points related to that, 3.3 EBITDA is really optimum as we're going to assume the 4x of the net debt because that's going to give us the investment solution as well. We are looking at this good position related to this topic years related to the countries and now the sector in deep related to this an internal facilities which is really positive. And a third party, we have some worldwide partners as well. We have the regasificator as well in Brazil. We have a partner with Red Electrica in Spain. They know everything related to the sector as well.

And just a moment on the operational side but as well to evaluate these investment opportunities in order to evaluate these alternatives as financial and technical as well. We have -- they're trying to leak [indiscernible] as well after integration with Enel, they're going to present to the third auction of the renewables, what kind of projects you have thought for that?

Yes. Clearly, Colombia is going to be present. And I thought -- we think that there is a reasonable thing is going to be the pertinent of these increasing as well and part of the fusion of these companies is the increasing of the sector and these committing things, investments in this sector. We're really retracting this commitment to growth whereas -- the well of the country and, of course, the companies as well. In this page, of Enel's page, we have highlight during all the conversations and in addition to all these processes as well for this 2025 according to 225 megawatts of projects as a study. That is a huge pipeline as well and really significant as well and is coming with this coming actions as well. That is the expectation that we have related to 2027 at least these kind of 3 or 4 years, this coming year. So the growth of 3.4% is literally is to double the size of generation. It's just really agenda, which is really positive and it's a very important part of why we have joined in these agreements as well.

Thank you. And another from Enel is coming from corporate government, how would be -- is not identified the person, how would be the Board of Trustees of Nel Colombia, a number of members, how many nominees while Enel and independent ones as well?

The framework agreement related to the investments as well is going to be something really valuable and it's going to be a reference as well. It is a good way to do this references as well because it's not public as well. Its part central. The policy is going to remain the same structure of control. It's going to be 7 members of the Board of Trustee, 4 of the Committee of Bogota. But from those 4, one is independent with a really clear rule for every of the both companies because we're going to nominee 2 people, are going to nominee 3, so there are going to be 5, 2 independents. We're going to be the more relevant ones. And those independent ones is going to have some rule independents, it includes not having anything linked to all events and highlight a very professional people as well. We're going to talk about this at the end of the year. It's going to be Board of Trustees -- looks Board of Trustees and independents. And it's a guarantee of those kinds of the things of transparent as well. It's going to be really reliable as well in order to work with this capital as well. So I guess that is a corporate government that we need to strength for all the government related to the framework investments that we've had.

Thank you, Juan Ricardo. Also thinking about the assets, for example, in Promigas related to this, we're going to continue thinking about the sale of 15% in Promigas. If so, you have found that demanding from the block as well. Andrés Baracaldo, you can help us with that answer and clearly, is going to be with these investments that we're going to have as well. We're waiting for having the rate according to this as well. Andrés, you can help us a little bit, please?

Yes. It's a little bit, Juan Ricardo, as you know, there is a tariff implementations as well [Audio Gap]. There is another kind of definition that we've got. So we have taken into consideration and to increase in order to have the visibility for that tariff cycle, but it has been continued intention of the group, the participation that we've got Promigas, and we hope in the adequate moment to maximize the price of that transaction itself. As we were showing the results, the company has a huge development. It's not a particular transaction to execute it in our best moment to maximize the price that we achieved.

Thank you. There is another question from Andrés Duarte, general corporate related to the possible democratization. For democratization as well, is there any process -- additional process or directly from the district?

That is something that is related to the district. I'm not going to prejudge because of the assets as well. The regulation part is pretty clear. The agreement that we have related to these margins as well to proceed because we have some real [Audio Gap] at the beginning of the year. So related to be interested of the Finance Ministry as well as the Mayor and the city hall as well with the approved ones, that information has to be public and it has to be deliver at the beginning of the year. If we're not going to do like that, so it's not going to be just per se. So we need to wait until next year from the legal contract as well. And in this part, it's going to be pretty clear that allows us to have just like 10% or 9-point something if somebody can complement it.

Well, we're going to move a little bit to TGE. I guess Adriana and you can contribute as well. Juan Diego Paredes from Sumitomo and Sobi Banking Corporation asks. Due to the deadline of TGE Barranca, what is the strategy to rehire that dispose are related to the gas natural as well? We're talking of the capacity of the lives of the contracts as well as a 5.1 years as well.

Good morning to everyone. Related to this section, first of all, as you asked for TGE, you have been looking for with the producers, obviously, to look for this possibility, renew offshore fields as well and to feed the section. On the other hand, as we were mentioning as a revision of TGE within the resolution, 160 resolution, we opened the possibility to do this procedure per sections as well. And obviously, we will have one of the potential benefits that we are looking for implementation as well.

Thank you, Adriana. There is another very important topic, as we said, Juan Diego. The customer continuing transporting due to the pipeline, there is not a change in the way we have been delivering the service?

The things that he stopped paying the fixed charge that we have more than [ 2 ] years, but the business and the needs of the infrastructure support of the customer continues, as I was mentioning, it has been transporting more gas during the first semester in a comparison with the second quarter of 2020 with the second quarter of -- we were talking about 5 million more of the pipeline because of the system.

Thank you, Jorge. We have more regulatory. What is the change of the valuation of the old assets and transportation of gas as well in Colombia?

And it's very important to mention of electronic and electrical transmission, we cannot wait in some changes because it's not going to be in this gap. We have 2 situations. For TGE, we have the 25% of the assets in 2019 and we're hoping -- we're waiting for the resolution as well where we have according to our projection, we're going to have the methodology, which is updated to today and is going to be a really important benefit. Related to the benefits, during these coming years, such a way as a compensation of every sinc related to the WACC impact as well that we are waiting for a change. Now the second part has a relationship related to potential changes really useful life for the assets to the future and that will be potentially within the 160 resolution as well related to this, and the resolution is not steady because we have had too many discussions with the government. We're immersed in that discussion. Based on those discussions that we have that resolution really positive way as well and not to have a really impact in that sector.

Thank you, Adriana. I do believe we can move to Peru as well because we have too many important questions over there about this country. Diego Buitrago from Bancolombia. What could be the potential risks at Peru with the new President, GEB has taken the measurements in order to take care of the budget and are related to politic tone as well?

Thank you very much. Diego, well, take a look. We are waiting to get involved with this constructive introductions with the government because we have a social impact. The operation is already positive for the Peruvian society as well because we brought some progress and investments. And in that framework, we were talking about the presentations with the Ministry of Energy and Mines as well and we are looking with the best and constructive value too with the new government. I think, Diego, that part is a really volatile aspect as well because of the politics as well related to the executive and legislative as well and same society in order to have this election of the difference as well. So we're really pending to try to continue contributing to the country from our operations. And if you allow me to talk about this as well related to these coming weeks, we are asking for an agenda of meetings with relevant legislatives as well. We have access of the new government because it's going to be a public society as well. Because we have a mission, Diego, and we don't have those contracts as well that for some people have some exuberant benefits as well. To us, we are not in that context. We're public service company as well, with a really important within as natural improves the supports to the community services as well and we have done a really social lab highlighted, particularly during this pandemic. These engineers, they build up our interest in really specific moments as well. We're going to have [Audio Gap] and treatment, of course. And we are a company because we're going to -- a very good company to serve. And for every single government, we are really assets that we improved people's life as well related to this comparison.

From Jorge Vargas from Peru as well. What regulatory risks are you seeing in the regulatory gas and transmission of energy with the new administration with Castillo's President?

I don't see any kind of risk because it's independent as well with this kind of people of this kind of thing because it's just had a decision of the first minister as well related to the topics that we have taught and visit we really trust. That is going to be ideal people and really competent people as well, and with them we have the tariff cycles as well. There are some investments volumes that are really important as well, which is going to be determined related to the increased electrical at Peru, $100 million per year, that is really relevant as well to them. And obviously, we have had that commitment with instability and that rule that is going to be due to that. And this tariff cycle as well, and there is companies as well. Well, we're going to be even with the Colombian investments, just in Peru as well with the evaluation of the countries, a really important topic as well and the developments as well because they don't have the level of coverage that Colombia has, for example.

Another from Cálidda as well, also from Jorge Vargas from BTG Pactual. What plans of expansion do you have seen outside Lima of the tales of penetration? Are you interested to be located in some other zones of the city?

Conception from Cálidda is one of the Lima's side and this is our framework of acting as well. At Peru, for example -- as Peru, you know too many years discussing in that way. We have talked to the government as well in order to have some technical support as well. And it's probable to try to move forward with the new government as well, is to offer our technical capacities to help them, but the concession area is just Lima sport as well. As Jorge said, it's going to be to very central as well. But when you see the demand it is very limited. It's a really high expansion with some important challenges as well because we are just in this position and capacity to build up and to present some interventory services and studies as well. We don't close that as a concession number, so is required. And in spite of the conversation with the Peruvian government as well, the willingness they have some really important resources as well at Peru is really important as well because of the improvements and minority as well because if they have the political interest because it's a same trial policy as well. In order to have that infrastructure, we have the competencies and we have the personnel -- capable personnel because we don't have the capacity to take some risks and some digits that we have because it's not being clear in rurals. It's very complex as well.

Thank you, Juan Ricardo. So we are reaching one of the latest -- the last questions as well from Davivienda. The investment -- the expected investments in 2025, we saw a reduction from CapEx, 2021 and 2025 in Cálidda mainly. We took about COP 283 million. On the other side, we see an enhanced of COP 40 million in the same period. And what about these changes?

Well, I would like to give you something related to Cálidda as well. As we were saying at the beginning of the conversation reconstructive one, at this moment, we have some expansions where we currently have -- we don't have all the studies to be able to say that as a potential increasing as well. So what we are doing related to this knowledge in detailing to have this conversation with the government and the way we have the evolution of the studies because that -- they did, if I'm not wrong, it's going to be from next year within May and June are to have this -- sorry, there is an important tariff when it's really important, the evolution as well in order to be able to work with the new government at Peru and is going to be [Audio Gap] and TGA. We are looking for opportunity business as well, in particular, customers that the adjustment that is going to be a minor adjustment in order to try to optimize some businesses as well and to continue following and growing up the company. I don't know if Adriana has something to contribute over there.

Well, yes, Jorge. As we were saying here as well and our results meetings at the beginning of the year, we are implementing, of course, a transformation of TGE. And in that transformation, we have a transformation where we're looking this transportation thing with different initiatives such a way to compensate that for -- of the income that we have in Barranca related to explosion of other sectors.

Thank you, Adriana. Well, I guess we have no more questions at the chat. So just the way we remind you, this information is in the web page as well, the office -- we are really open to answer these questions or whatever another topic that you will be able to have some questions or doubts. So we're going to give the floor to Juan Ricardo for closing the conference and give his farewell message.

Thank you all. It's a privilege to be able to answer your questions in order to be able that you're going to have all the details what the group has done so far because of central ones according to the strategy and corporate because we believe in a deep way because the solution of this and the knowledge of this central thing as a group, we are really optimistic and this is going to be a really winning sector. We're working to extend this suggestion as well. Everything that nobody talked about here was that's the effort that we're doing in transmission related to a transmission with communities as well. And I do believe that with the community and is going to be really important as well, that part related to this collecting and the acknowledgment that we have the minimum impact related to the environment and the community is part of our corporate community and sustainability as well, whereas to us really important to know and understand that we are in service, we are able to work, and we're going to be able to work with the community, with the stockholders and everything related to know the way we're doing these vital assets to Bogota and the investments and private investments as well. So thank you all, and I -- we wish you have a great day as well because it's going to be really a huge opportunity for this new evolution and really important for the country and for the companies. Jorge say goodbye.

And the customer, the customer have a great day to everyone. We are here at your service if you have any other doubt or something. Just a final requirements, we sent you a survey, if you can deliver this survey as well. So thank you very much. Have a great day, you all. Thank you.