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

Good morning, everyone. My name is a Manuela Ramírez. Today, we're going to be -- welcome to our conference results today. [Operator Instructions] This conference will be done in Spanish and it has simultaneously English translation, and the results were published yesterday, as you can check in your web page, Grupo Energía Bogotá. You can do any kind of questions through the chat. Today, we're going to be with the results Jorge Tabares, our CFO as well as the participation of Eduardo Uribe; and Fredy Zuleta, General Manager of Transmission and Regulation; Adriana Munévar; and Mario Caballero, CFO TGA and Cálidda, respectively, who's going to help us to answer your questions. Welcome. I'm going to give the floor Juan Ortega who's going to tell us the results for the fourth semester.

Good morning, Jorge. Good morning, Manuela. Good morning, you all. Thank you very much for the interest and participation. We're going to have a presentation related to the format of the previous presentations, and we invite you to ask at all moments to try to solve any kind of questions related to the results. We're going to do some emphasis of the complete year of this fourth quarter we reported. I would like to highlight as well what we published yesterday all the data back that I have, what can I say, too much information in detail that allows us to have the results. Next well, it is written and facts we were mentioning down to the left. EBITDA COP 4.48 million we're talking about, as a growth of the 22%, 22.4%. This digit has 2 results, 2 elements in 2021 related to the dividends as well, part of the dividends associated to the agreements as well and the [ CTM ] where they delivered anticipated [ delta ] COP 117 million when normalized [ deal s] related to recurring EBITDA the growth is near to 4% related with this, it will be 8% as well. The participation per business line, it doesn't change big time. So we need to highlight all the green ones that we've got most of the businesses, they had a growth that was reduced as I'll show you the that we were planning the termination of the contracts down to the right, how Colombia represents the 71% and 23% of it as well already balanced regarding to 21% was -is presented in international as well. You can see to the right, EBITDA is going to be 3. This leverage even it was -- we have big capacity to grow as well in order to have the capacity of purchasing of companies. We would add $1 billion to the companies and to have leverage that sustain the qualification. And when you consider moderater ROA/ ROE levels, really satisfactory ones with some increases as well associated with the accounting topics because the heritage liability was growth as well related to the exploration in pesos as well with foreign investments as well as a consequence of diversification of the portfolio itself. So with this almost COP 1.1 billion we're going to have the heritage as well. And as briefly, the whole year with COP 5.5 billion income increasing the 85.8%. EBITDA that we were mentioning increasing to the 22.4%, which is one of the good news that I would like to share with you. We would like to give with the same rentability as well, the profitability as well, despite of the loss of the -- significant loss of the income as well in TGI. The rest of the companies of the group as the controlled and noncontrolled ones, they have to compensate -- more than compensated that effect. Of TGI, we grow on the COP 336 million, despite of -- or the down that we have here either be more in this section, the acquisitions as well that they do. In 2021, there was less than the previous year, and they were the consolidator here because they were through the Argo. So we have just a control of this. We acquired more than $100 million. Next, please. I was mentioning the close in -- the effective close in Brazil beyond the amount of the transactions that we have before in order to start working on the platform of growth. That is our strategical focusing. We were trying to work on this in Brazil related to transmissions because this very satisfactory is very attractive as well besides there are too many of opportunities the purchases of assets. In the transmission matters, the Smart Valve, which is the first thing. The first time we do in Colombia is very powerful. That allows us to have this service not to have to change the infrastructure in this case. Our transmission to support growth as well related to the generation and transmission, but through a technological -- a technology because of the intelligence tool as well, we achieved to supply the need of infrastructure as well, which was reflected in every single effort of technological efforts that we are doing -- doing as both energy, both our company, this is an intersection program, 100% as well. What is the meaning of the structure of Peru and we prepaid in total $130 billion So before this, we had a cash flow, solid one, through the group in the end of the year. And finally, related to the acknowledgments as well recognitions as well, which is part of the beat because TGI and GEB, they have a good position. We were just in a fourth position with a wider group with a really score to the best. But more important is just the intention to continue improving and to analyze the gaps that we have related to our competitors and the colleagues as well as from some other countries. And how do we continue working on that more than a picture is going to be a very positive tool to continue growing? If you can place it a little bit bigger, it's going to be good for me as well in terms of I don't see the picture. IN terms of financial development of the operational transactions when we share the fourth with the '20 against the '21. we're going to have a growth of 14%. And we see here how we do the distribution of the natural gas. It gives a bigger contribution as well. That is basically leveraged because of the growth that we have had in Cálidda, Part of that growth is just associated topic because it has another marginal income as well. But however, the Cálidda in general was very positive. You can see the negative gap as well related to transportation of the natural gas we do reference. We do hear more times as well. And we have a positive sample of fixed growth as well. To the right, related to costs to my first statement that the inflation matter is not something that we have the inflation related to this. And the economy for the group is not something that is going to be a concern. Of course, 2 elements. First of all, our income is going to be more than 50%. They are related to the inflation as well until much of that we're going to have today ended up by the administration of the systems and identical things as well. So we could increase as well related to the final customers in a huge percentage of this and where we're going to be able to have certain effects as well and in the projects. The real thing is the transmission business. We're going to have the main businesses in the coming years, maybe it's going to take a little bit more of the construction advanced cycle where we do believe we're believing it has a higher impact. There are some cases where we're doing some conversations as well due to the situation. And in fact, of the inflation as well effect. This increment -- this increasement of costs has been scaling because of the natural gas of distribution of gas took about 38. [Audio Gap] show you to the left. And the second component which is positive in this moment of all administrative expenses. There are some taxes and contributions. There has been some increases, but because they're generating more income as well. So there is a belonging, a correspondence as well related to the gross net and the positive margin as well. We acknowledge this when you see the whole thing. Next. When we see EBITDA, I do believe it's very important to highlight the contribution of every single business in this case. We have a healthy portfolio, where in every single business it's contributing to that growth 22.4% related to the base of our EBITDA is really positive. And here, you can see the net effect of the TGI, that was COP 165,000 that was negative is a digit that reflects the efforts on expenses and expenditures that we had TGI because, of course, of the budgets that we have originally. Beyond that part, we have a dynamic, how it could be better handled than the future as well as it's easier to recreate a dividend, extraordinary dividend during the last year when we were distributing our reservation related to the company to deliver some resources to the stakeholders. To -- down to the left related to this remitted to the now the negotiation that we could make, it has a growth of 80%. And that 80% is a part of is recurring in '22 because we had more than COP 450 billion from Enel in the second dividend. And the other part is going to be recurrent as well and we can achieve to minus 2.6% EBITDA of the controlled ones. And it's still related to the rest of the companies. They were supporting and they were compensating the expiration with TGI and I highlight TGI moved more volume of gas than in the previous year. Not only it does the business, it has been like this, usage of the profitability has been decreasing, but we're going to talk about this contract in the long term. And they were the deadlines because they were expired. Next. In the gross net as the profitability, we were talking -- we were talking about the previous year and related to not only what happened in TGI but the previous year has a positive impact related to the change due to because if you remember, they have a drop in the last -- this year, we don't have that extra profitability difference with the change because it's minus COP 86 billion We do a comparison under that base. And through the operational results that we've got because of the boast -- determined boost of the participation method we could use that level of participation because that was something very important, almost COP 300 billion over budget. But we have that in TGI, we didn't see the way to keep the level of profitability. We just tried to do so, and it was successful. We made it. And every single of the companies, as you can see, the inferior graph, there has a positive contribution as well where it's going to be less than data. And even though over their deposited cases as well, where it is going to be fulfilling the business plan's growth as well. We're giving better results that we are doing so because they are in early stages as well because of the profitability because there is a higher data as well when 31%, when it has a normalization, but these costs are recurrent because it's are not recurring loss or something for more than 15 years. In 2021 year, where we normalize the data, the plus 33 is going to be plus 18 as recurrence growth showing these growth levels, very positive ones in 33 is the operational data -- digit as well. Next, in terms of the debt at the end of the year, the rate of interchange, we have $38 million as our debt to highlight. The first place, the planned EBITDA 3x over 3.2 that we had in the closing of 2020 because we had some important possibilities as well, and we are looking for really active way and a fixed rate to the right, we have the 72% of the portfolio because it's very relevant. And the environment that we're seeing today related to the rates they have been increasing. And every single time, we have some analysts that have predicted is not something that temporary related to the inflation. Not until you take into the cultural potential invasion from Russia to Ukraine you see in that percentage is going to be in the fixed rate, the cost of the debt in pesos raised 4.4 to 8.5. So despite this kind of a small part, so they're showing and reflecting indeed some significant increases. And well, in terms of deadlines or expiration dates to the right, we have a few needs during 2022, representing [ $292 million ] and showing the expirations, where we have '23 and '24 related to 2,000 -- the expiration. Our Contugas, we have the big barge, the '24, the rates interest that has been increased in the capital markets as well. So we continue taking consideration eventually how can we capture the low taxes in order to have the possibility to done. So we have fuel needs of the cash flow to confirm the need to continue buying the assets. Next. In CapEx, when we update the data, there are a few variations during the first years, '22 and '23. They keep because we're going to be $1 million. We're doing about this average in these coming 2 years, and you can see -- show the coverage that we have 95% coverage of the objective population. We have done many investments historically speaking, and the concession is going to require less investment because that's where we are showing here because we ended up with these investments as well, according to a concession, we are doing our renovation in every 5 years. We were started at Peru, and we just adjusted the adjustments related to National Perú's plan. Also, we were showing the emphasize that we had to give these transmission processes because of the green bars where in Colombia, we have some significant advances. There are also some challenges associated to the global dynamic of this transmission business. Not only in the previous executions as well, the last year, we had some situations in May and April because of the strikes as well. We have some -- many issues that we have been operated a really regular and normal way. After all, you can see in the green bars, in the light green bars, the most -- they ended up of the project that grows at Guatemala. I guess we have left $100 million to end it up. And we continue with a really hard job with too much effort of this project which as we have been saying, 90% of execution. And here, well, related to the government try to cancel. It's project of classification. It's not included here because you work about these 4 years, $100 million. However, but I do believe with the dynamic that we're talking about this energetic -- with the countries is going to be more conscious related to the need to have good access to energy and maybe you have some strength related to international markets as well like the Atlantic. I guess the geopolitical equation is going to have a deeper change related to the perception and the vision that they have related to the energetic (sic) [energy] issue. We can see that we were showing before the positive indicators and insist decreasing because something that is a positive differentiator -- international diversification and the portfolio that we've got in dollars or jurisdictions in some other currencies, there is going to be a support in the Colombian currency was depreciated. In terms of cash flow as well, we highlight the final position, cash flow despite we paid a credit because of COP 330 million. This is in peso. So we were coming COP 851 million to COP 1.7 billion in position of cash flow, which is a cash flow, very solid one with an operation that generates COP 1.4 billion, which is solid with 2 huge bars as well as the sources and in the course as well related to dividends. All of these are the transactions that we have explained extensively. And in February, the company, Enel-Columbia as we were saying, it was made, it doesn't exist in Codensa because it changed its name. Now we have incorporated they now power Colombia with the assets of renewable energies, most of the part of them of the projects of -- or the new constructions that they had in Enel, Guatemala and Costa Rica. We have a diversification, bigger size to the company, a company where we did the digits in its moment, we have $10 billion approximately that is becoming the most important asset that the group has. In terms of resources and usages. We use a bigger debtment related to the payments more in this case, because we were talking about this in Peru to the risk of indebtness. Fortunately, country as Peru, they have too many institutional issues and instabilities as well, but we haven't seen that instability. Those can create distractions. They can affect our business over there. In fact, the only concrete action is something that we have a positive effect for the group that pretends to unify rates of the electrical system because it has been working of the Peruvian Congress. The only thing that we have seen is a concrete over there because they have a really positive effect. With this, we covered all the main points. Are we open to questions? And in system, this industry showed, in fact, it's a resiliency, we're talking about levels over -- that was COVID year that we had in the first quarter of the previous year. Very powerful topic of dividends because that recurrence topics that were financial strengths, and they clarified the panorama, as we were mentioning before, in order to have a clear panorama of the dividends and distributions are powerful growth related to the portfolio. Nonconventional energy renewables that a company has, and we have a lower leverage of qualification, a good job of working to get some companies that we are looking for. So, I'll give the floor to Manuela.

Thank you very much, Jorge. Thank you very much. We already have some questions from our investors. I'm going to start lower. Kathy Ortiz from Corredores. And she asked, could you tell us a little bit more about the actions on the assets and stocks from the district.

Sure, Kathy, first of all, I would like to say it's a secondary negotiation thing because our resources go to the district. We hire investment bank, which is a consortium through [ DS ] in the link corridors Davivienda. We are on the pre-training -- preparation stage for having the first contacts with investments this coming week. In order to understand how is the appetite because our intention is to look for all the possible pockets, which means that we're going to be in some international regulations, some different international profiles, and we're going to go to an execution of this transaction. And according to the time table, it's going to be about 4 months minimum to get adapted. And obviously, one of the biggest uncertainties that generates is how good institutional investments and potential investors are deliberate to the democratic process when we don't think about it, we have some suggestion because we need to have some fluid dialogues in order to have some implication in the time table of the process. We're pushing the foot in (sic) [on] the throttle in order to show the growth strategy of the company and the main investors.

Thank you, Here, we have Andrés Duarte, Corficolombiana. Related to -- 2 questions related to particular results. The first, could you tell us a little bit about the quarter variations of the business of the controlled business, especially the growth, the quarter cost in the 4 lines. And secondly, what kind of cash flow can you feel comfortable for the regular operation, taking into account because of the closing of 2021?

Yes. Well, let's start with -- by the second one. Well, the cash flow in this case, and you do the question on the cash flow, the regular one, because we have a wider position of this today because we can see currently concrete opportunities for possible acquisitions. Certainly, you do the article exercise, the cash flow adjusting. The hit is going to be $50 million, a little bit less. We can operate with no problem. We're try to buy some companies. We have a bitter -- a better, bigger position as well related to the volatility and the related to the Ukrainian thing generates an argument to keep the positive cash flow position. Related expenses and costs is in the data pack in detail, but what I can say, we are with some expenses and costs already important and specific one, especially in TGI because we lost some income forever according to what we were expecting. So too many years, we're trying to accommodate the company to a cost base. We're going to be -- according to the new incomes as well and those digits that you can see they are not the headlines so it was a positive because they are too high. They include what I was mentioning include, for example, in Peru, when we did too much connections and construction things as well when we did 253,000 connections -- 253 connections in 2021, no presence (sic) [present] Digits in the cost. Doesn't affect the margin because on the other hand, with the cost associated with the incomes in municipalities is a policy-ed way. The headlines that we have related to the increase, while we had in the group and especially in contributions. We're really focused on the headline because it is not good, but the base of the business, the impairment one is good. We're controlling, we are seeing inflation but inflation is in terms of salary or some inputs as well. Nothing to do related to. And then [ seeds ] when we're going to be able to see just a risk or something and more material one. In that amount of projects that we have done related to transmission, so we were talking about 18 months, that happened related to inflation that would generate -- has generated some issues, more important things related to the cost of the projects of the acquisition of the equipment and raw materials to execute projects, but it's not the case because we have been moving forward with the projects automatically. There is a purchase that we did in Ukraine, particularly, and that is on its way. We are monitoring the value of change because we are already in China and India when don't have the affectation is just because of the Europe affectation related to the purchase that we did in Ukraine. It wasn't being affected. You can see the numbers if you want more explanation. In order to try to give more space to ask more questions, we're going to stop there.

Thank you, Jorge. This question is going to love you. Maybe Eduardo Uribe is going to help us a little bit with the answer if you want to. Andres Duarte Corficolombiana also asks which is their view related to the [ Angelica ] transaction related to the fossil fuels.

Energy business and a group that covers energy gas, electricity kind of be detached and to ignore the global trends in the schematic or the negotiation matters or commitments that acquired the countries. So the group knows and it's clear for the group to compete in the future to open way in these markets needs to transit and to help countries to transit to new ways to have an identical basket, cleaner one. There has to be intelligent, gradual, economically doable and accretive. I see that the gas natural. It has to be a strategical transition. The gas is a fuel that is more resilient and more resistant to economical systems. So in the group, we have more clarity. The gas is going to be a key factor here in the short and the long term overall in our countries. So we're really committed with the thematic things as well. Qualification in Dow Jones was pretty hot is what we say, the commitment. On the administrative direction with the weather and it has been recognized because of the market. So we have a huge commitment as well. So we're working on that.

Thank you very much, Eduardo. Now we're going to give the floor to Jorge. Jorge, we have a question, an additional question Kevin Chang from Western Asset Management called. He asked what is the plan to finance the credits in 2024 and facing the subsidiaries which is the plan of the expiration of Cálidda 2023 and TGI, we have any kind of concern facing the high leverage of the debt?

Thank you, Kevin. We're going to go back again to enhance the answer to my perception and to transition and rest of the questions because that is our essence of our strategy. First of all, I will personally feel group with a playing condition to play in the new environment and to contribute to the sustainability of the [ identical ] is one of the main objects. Our purpose to improve lives and sustainable energy and competitive as well as an integral part of our business. And this decision to contribute to the society we see it like this way. No doubt, the partner, we have a bunch of examples of concrete actions, other forestation topics the contribution that gas has where it reaches some communities when they were used to work to cook with more contaminated energetical environment. We have a lot of examples. However, I would like to highlight here 2 important points because there is in correspondence in every single case with the narrative of a high level. You see the details what is going to construct energetical metrics and their sources today. This conversation is not a global conversation. It's a particular conversation of every single jurisdiction because as we're going to talk about 7 of the global emissions. It has some metrics related to the international ones. They're surprised about -- they claim that in Colombia, in energetical metrics it is and the commitment of the government is completely different. We have done too many analyses. We have worked with CREG, which is lead by the former Ministry Tomás González, which is a real robust team. and doing the analysis one by one source per source and taking into account cost, this is well because we had a theoretical exercise and how we become greener no matter what, economical expenses for societies, the social economical impact through CREG gas needs in 20 years, to replace for more financial limitations like us to replace the infrastructure and infrastructure generates an electrification, if we're going to call it that way, our last goal, it requires too much time and some optimal conditions. Well, we do reference to that global conversation Europe. United States. Of course, they have too much resources much time doing this. No doubt, there are some subsidies in Spain as well. The amount of subsidies that they were expanding 15 or 20 years to be able to generate market for Ollas Solidarias or they go in and they were expensive. There is no possibility as countries as Colombia have the gas, and we have a really good role, permanent role in the short, and the long term, almost and there is a [ Mexico ] transaction because we would like to highlight because of the gas for transportation. Currently, they're dying -- their people are suffering because of the quality of air. We have headlines because there is an environmental emergency. This is something critical because it's the day by day of the citizens. And this affects, of course, the vulnerable ones as well, people, children are being affected, and we see that the gas is an electrical transition to go up from hydrocarbons in a completed way is not just a topic. What we have missing related to every single geographies to the top to the bottom to the up we were talking about JPMorgan saying we see the available technologies and how it's going to be generated energy. I don't know the -- there are some technologies that was going to be in the 50%. So we need to try to pass this aspirationally is good and to go to the moon when we have Kennedy, was in 10 years there was an exploration due to the massive -- the complex of doing some structure to generate energy. So it's going to take longer. Finally, the transaction with Enel and to integrate to their -- to the portfolios. Currently, we're the leaders talking about 82 megawatts, operating 1,500 megawatts in different phases and generating energy. So we are the leader in Colombia related to solar in [ Latin America ] and we go hand by hand with a partner in [ Segund Guerra ] with 60 megawatts of capacity, 30,000 capacity of megawatts to a lower level. And by then, we're going to have contribution related to energy contribution, I guess, it's going to take a little bit more time. Coming back to Kevin questions. TGI does have a higher leverage. We're talking about the EBITDA of 3.3. So the questions as you were asking, I don't share the appreciation at TGI, we have an expiration among companies at December of $270 million that we need as the company gets the resources from the market and pay the market because anywhere within the same group, we're going to see the best and the most efficient way to do so. Cálidda has a documented to pay in 2023 and the refinance of 2024 is in too much time that has an expiration date and intention is to see we have some condition markets -- conditions to do some efficient markets and transactions in a good cost range to extend the maturity in a anticipated way. So far from 2024, Manuela.

Thank you, Jorge. [ Carlos Carasas] is asking. The regulatory Peruvian rule that you were mentioning is the calculus of the WACC, calculation of the WACC, he is asking about the planned Cálidda as you already answered, so there was a regulatory matters.

Well, the regulatory Peruvian risk has 2 levels, which is the government, some announcements that they did. And as I mentioned, it was reflected the capital markets, the Peruvian sol that was a bigger, almost 20th. We're going to go to international market. The rate of the bonuses of Peru. They have been decreased relatively speaking. So the markets like us, we're seeing that risk and government, change the administration, change of the policies, is a risk that is moderated, and we pursued, of course, analyzing because of the volatilities that we've got and uncertainties as well. We're going to talk about the base risk, always that we're talking about this regulatory. So we have some conversations with the regulatory one and because of the services. They have been working and he has the obligation and sustainabilities. Regulator can accomplish the rates and broken -- rehash the balance in order to have a sustainable project and to show that efficient technology as well. So Peru, we're just in a cycle which is really active because of the 3 companies they're through -- passing through a cycle when the signal is not a good one. It's going to be a mature group. It's going to be extreme related to the profitability which are the assets, data related to the demand and the regulator is included as we see this continuity within the basis and the potential rate which is not technically speaking, supported within the vision. We're getting involved with the regulator to explain the position and our position, such a way the impact in the rate wouldn't be bigger in Cálidda. We are just talking about the majority of Peru. We are ready to see the rate under those initial conditions. And this is just a conversation we need to develop in these coming 3 months when we will be showing possibly the results of the first quarter as most concrete. Now have some infrastructure but we have the regulatory. So we have the competitor who's going to have it as a moderator prices as well we wait as can be nature to technical efficiency sufficiency. Our financial sufficiency is going to be covered by the rate and the ratability of course, the profitability. And there's no excessive rentabilities because the stability of the business itself of the profitability related to these regulation things and this balance as well can be positive.

Thank you, Jorge. Now a question for our transmission business from Diego Buitrago from Bancolombia. How is the construction of the time table of the constructor?

Indeed, we are moving forward. As you know, related to our builder, our constructor, of course, the reasons of the better delays then that's going to be the date. We already asked from the ministry to enhance that date. And we said in the end of 2024 year, but we have a positive advance as well. The project has 2 tranches as well in the period. We already impacted with the sections in the end of this year. And that section specifically could start much before -- we have some agreements as well 140, and we are doing just some advances check plan in order to move forward. So we're waiting to regulize and to ready case study at this precise year in order to end this project is very important for the country.

Also from Diego Buitrago from Bancolombia. Why cut up the -- [ haircut ] inconvenience related to the global chain?

Diego, we don't see an impact in the short term. The teams, the equipments are coming from China. So it has been affected because of the disruption of the aggression from Russia. The containers, they were antiquated, the vendors to the new reality. We are waiting for that is going to be normalized on the transportation suppliers and more related to some early signals in the phrased comments. So in Guatemala, the project is moving forward. We didn't see here really fine affectation.

Thank you, Jorge. We have a question from someone who didn't identify. How to find the strategy with a bigger interest rates in order to get a better price. What about the refinance strategy we have in the new scenario?

Too much questions. And think in the -- we've seen a long term as a discipline that you referenced. We have a margin over the capital cost in order to generate a value and the metallurgy, which is very consistent of the rates necessary ones in order to have some rates in [ reals ]. So we have our raised, which is really linked to the 2% and 12% related to the market. Once again, as we are an investment of too many decades, it doesn't, it wasn't incorporated in the analysis. That is the whole situation related to the impact. Or to have some assets, it's going to be cheaper or not. They are very attractive assets because of the regulatory, because of stability of flows as well. So it's just a benefit that contributes and it's more the market, which has been affected because of the market as well and the interest rate. The strategy of financial things, there are too many things we have a huge component, 71% of their fixed rate when it makes -- have some interest rates as well. There was a third element that I didn't write. I didn't copy yet, Manuela?

Yes, Jorge. The financial profile in this new scenario. I guess that were something you were talking.

I would add what we see in the portfolio, and we were working related to various -- we have to pick -- we need to have efficiency related to the cost of the gear as well. But in general, there is a conservative strategy to have a base in the long term as well that allows us to have to operate those businesses to condition some market. We were talking about related to the interest rates. And also we are -- we -- in order to where we know, to have precedent rate, and the bank said, well, we didn't increase. We didn't have because of the costs, internal cost because they have in our liquidity related to the market capital and banking markets benefit the market as well because they have been affected when there are some concrete actions related to the central banks in the countries. For example, in the United States, the reaction in general related to what is happening in Europe was -- it has to be moderating the federal reservation is going to have a huge impact, of course, related to the central banks protecting. And on the other hand, huge pressures related to the petroleum price, the gasoline in the last 25 years' time. So on the other side, those inflation process and pressures and on the other side, the reserve were trying to get their resources and generating some market conditions are more regular to that dynamic is the one we're going to see in the short term is something which is badly related to the [ average ] for just 1 month or just 1.5 months when there is an imported inflation related to the currencies, they have more impact. There is something that is absolute. So there is not just that was invented. So there is the tension by both sides when our opinion and our personal opinion is going to have the rates will be -- have an increase in a really a slower situation related to inflation as well as new government in Colombia main player is going to be one of the presidents is going to have some too many noises related to these inflation phenomenon.

We have 2 questions related to these questions. Andrew McCarthy from CrediCorp Capital. We have certain advances with some participation and some assets in the group. We could have an enhance of the strategy, placements and targets in the search.

Thank you, Andrew. Well, related to the sales. We have mentioned 1.5 years Promigas, as -- it wasn't within the objectives of the long term of the group, an excellent company. They have a really solid name, great management as well. When we see the portfolio of 50% of participation related to companies, that was what we defined within the strategy assessment in 2020 is not a basic -- is not a structural to have a portfolio related to the portfolio as well. We retake -- and of course, the most important apparently, we have some potential buyers for those blocks as well. There are some very similar packages related to stocks from Promigas. So that generated a potential buy system. We're going to take the topic. We were discussing previously. And just in case we can get a buyer, we can do so. In terms of M&A, for example, when you see the portfolio, we have many data. We see the 60% of the GEB, transmission business. They have a potential of investments and really huge ones as well associated to every single -- the network is going to be more complex, the generation, not only of distributor of distributors. But is a bigger diversity of the solar generators. You have the comparison in 15 years ago, we have too many plants as well, localized, we're going to have some pressure under the system of transmission. We are ready to invest, and we do believe there are too many possibilities. And in addition, we're going to be able to diversify in a country that has some good conditions for the energy market as Brazil in this case. So there is a message is transmission to Brazil is one of our main focus and transmission -- Colombia is very interested as well. But we need to moderate as much as possible in order to increment the participation of the market. We're going to market the 20% of the participation in Colombia because we have some participation as well as Chile because after Chile's conditions and politically speaking, and socially speaking as well, maybe the asset is going to have better prices as well. And what we have been mentioning because it's just the topic of short and medium term in some states of the United States. Because they have a huge country, of course, but there are some states in particular where they see, as we were mentioning before, in really preliminary stages in order to identify the opportunities. That is just the panorama and I have been offer gas businesses, which are really attractive ones, which is very important in the short term is to balance the portfolio and to participate a little bit more our electricity and participation business of transmission that I like the most. We're increasing organically speaking, in [ Southern Olika ] through Enel. So it's in 42.5% is our participation. So we're really good because we're doing a good contribution of that growth as well of the sector of generation. Manuela?

I guess we're overcoming about time. I'm sorry. I don't know if you have any more questions. I have more additional questions. I don't know if we have more punctual questions in order to close up. So [ Thinkadi ] was asking. We can tell what about Cálidda. What can we expect from it because we're kind of processes or things we can continue expecting of?

Thank you for the questions. 2020 has been a very particular year for Cálidda because we have been able to recover some things because in about 30% related to '20 and '21, and that has a real specific dynamic when you see the increase in rates of the business before 2021, it was a position that we have been increasing. But naturally speaking, that growth related to that position we're talking about with the EBITDA related to the 11% and 15% of growing. Well, we have find here something more consolidated 14 kilometers of connection. And naturally, where we have to do more of that growth has to be, and it's going to be the same one. We hope that with a long-term growth of the EBITDA moderated 7% or 5% regarded to where we were see currently.

Okay. We have another question here. I don't know how to answer to -- pronounce the last name. What about the increasing of 2022 is COP 550 million?

The part of the dividend, which is a superior of that is a dividend is a extraordinary dividend associated to the agreement that we could do the previous year. If you remember, for too many years, like 5 years, we were distributed for the 50% of the -- so it is the profits from the last year in 2021, maybe in 2020, were with the stockholders agreement, we have a matrix of dividends of spread of the company is going to be in a presentation of the distribution of the profits in 2022 from 2021. So those are the digits that we have. It hasn't approved by the assembly. So related to the data we have the important data, which is associated with a growth of 17% to 33%. And the profits or utilities related to Codensa and [ Himas ]. The extraordinary one, the previous year, we've seen about 55% of this utilities is profits, the earnings related to the 60% and 90% per 5 years because of the cash flow of the company, we were reporting the 55 and it was completed, the fusion that we had because this effect, we have the right or maybe we start working on this remnant as well, and those are the resources that we're going to find in plans in August. The questions related to the extraordinary dividend to have the calculation to have it and just doing just the math in order to have as well as we're going to receive in August. Well, after the assembly, we're going to ask more questions.

This question is related -- I don't know if you want to answer it Raúl or Jorge. How are you handling the huge buying purchase of the dollars because of the indebtment in pesos and dollars because of the rates change?

Yes. I go there. Good morning, everyone. The composition of the debt of TGI is $1.2 billion. $1.2 billion is going to be $170,000 that was credit at TGI with GEB. That credit, we are planning to be in operation and to have a debt as well related to this. And here, the bond is going to be COP 570 million. We have a deadline to 2028. And while at this moment, what we are planning is to do some financial strategical movements because we have been doing some analysis and with the Jorge, with the team of GEB with the Board of Trustees as well in order to define related there-- we're going to be executed at the beginning of the semester of this year. We need to emphasize, for example, the Board of Trustees because that is going to start this year June. Because the question is going to be associated we're going to organize these or to look for.

Last question in order to have this comment. What about the pilots of hydrogen handling?

The generator of the pilots because of the Promigas, we have been participating as well and energy. We're trying to look for how do we align on the hydrogen route to contribute with comments on technical concepts. When the government is doing this. And to us, it's very more concrete businesses or the business. In fact, our financial projections, we don't have yet benefit from hydrogen for the business itself. So we know about technical issues because we can generate green hydrogen in Colombia. The Guajira is a very strategical point. And it's a natural thing that in that case because we have 20% of the mix of the TGI transport. We're not doing so many technical transportation, but this is some potential. We didn't have it monetized. Well, with that, we really recognized we were extended in order to have because it's very important to allow us to hear each other the news very good ones. Fortunately, we're reasoning to factor in order to do related to this, there's going to be a fact is going to be efficient and we're going to continue growing in a really good way. Thank you very much. Any additional question that you can do related to this is going to be available for your questions. Thank you very much. Just in case we're going to keep working in the most transparent. And thank you very much. Thank you, you all. [Statements in English on this transcript were spoken by an interpreter present on the live call.]