Naturgy Energy Group, S.A. (NTGY) Earnings Call Transcript & Summary

Good morning, everyone. This is Abel Arbat speaking from the Capital Markets team at Naturgy. Thank you for joining our results call for the full year 2022. Next to me is our Executive Chairman, Francisco Reynés, our Head of Financial Markets, Steven Fernandez; and our Head of Financial Planning and Control, Jon Ganuza, together with our Secretary of the Board, Manuel Garcia Cobaleda. So we're going to run over the presentation first. And at the end, we will open the floor to Q&A via submitted questions through the webcast. So with that said, I'm handing it over to the company's Chairman to go over the presentation. Francisco, please?

Good morning, everyone. Thank you for joining us, 2022 results presentation. You have our information package available on our website. And we are going to go through the presentation without taking a lot of details on that, considering that the -- your availability. And after our presentation, we will go on Q&A session for those questions you may rise. Starting with the global view of 2022, I would like to highlight 3 important ideas. Number one is about this scenario. Volatility and in particular in gas prices has been the most important thing to manage. The team has been involved in many hours dedicated to manage the extreme volatility of gas prices in general and that have impacted also the electricity market. And on the second side of this, the change of this scenario, we would like to highlight the extreme amount of new regulations over 20 during the year that have been clearly impacting the way how we manage and will manage the business from now on. Within this environment, I would like to highlight 3 important roles that Naturgy took place. Number one is about our key role in warranting energy security to the country in all sites. In terms of gas has been the major importer, we have been negotiating with Sonatrach prices and with other suppliers without voting on risk, the supplies of these goods to the country and also thanks to having the large fleet of turbine cycles in the Iberian Peninsula, we have been able to provide electricity as much as needed to warranty no blackouts during this period that, as you know, it has been a very dry season in year '22, and it has also not been very positive in terms of other renewable resources like wind. Important to highlight our clear productivity in finding solutions for our clients in this scenario of volatility, we really are committed with our clients in trying to find solutions that could benefit. We started back to 2021 last quarter with our initiative on provision, which has been the starting point of a change in the electricity market in Spain, but we continue with other initiatives during the year 2022 that altogether would have been impacted over 60% of our customer base. In terms of investment, our commitment in energy transition is there, and we have continued investing. And in terms of CapEx, over 70% of our eligible CapEx has to be with taxonomy within the -- in terms of results, you have already said that, number one is we follow the trend that we have explained to the market that how the business was evolving during the year 2022. And for those that follow at that time, this information, the final results of 2022 should not surprise what has already been said. Important to highlight is the deleveraging of the debt in our balance sheet. In terms of dividends, nothing new. We have a commitment that is about EUR 1.20 for the year that, in particular, in this year that represents a ratio of 70% of payout. And finally, as you can also see progress on our ESG metrics as a demonstration of our commitment with this energy transition policy. I will not stop for a long on the scenario. You know probably better than me what happened following day by day, what is in the commodity prices. But as you can see those 2 ideas. One idea is the important change in oil prices average to average, 21% to 22%. But second idea is high volatility between Max and mid in all the different metrics you may find gas and oil and also CO2. You see a clear trend during the year 2022 with unprecedented rise in commodity prices. Just as an example, what happened with the TTF, well known by all of you. If you compare TTF evolution prices with Brent prices, you have here a very clear indication of how all the different scenarios, including the war in Ukraine and other speculation scenarios around energy prices have been moving the TTF in ups and downs during the whole year. We are also getting benefiting from a certain appreciation of U.S. dollars and related currencies to U.S. dollar in our portfolio, in particular, Mexican peso and Brazilian real, including the U.S. dollar that has impacted in our accounts. As you know, well, Argentinian peso has continued devaluating during the year. I mentioned before, the year 2022, we will remember it also because of a really very important work on the regulatory side. We have reinforced our team. We have established our regulatory team as to in the strategic agenda of the company, considering what has been incorporated and what it seems to be incorporated in the next coming -- in the next coming quarters. In both areas, more local in Spain, global in Europe, it has been, as I said, over 20 different regulatory measures taken. In Spain, in particular, I want to highlight 5 of them. One is a temporary cap on the gas prices on regulated gas prices, what we call it here, to we are. Since March, 2022 cap on the electricity prices at the level of EUR 67 megawatt for all infra margin or almost all from marginal electricity production. This is compared to the 65 that years by their own initiative started to implement to our clients in September 2021. Important additional measures have been taken to protect vulnerable customers. In terms of the Iberian exception, something decided between Spain and Portugal -- Spanish and Portuguese government, a temporary cap has been established on gas prices that is the responsible for a decoupling of the pool electricity prices between Spain and the rest of the main important countries in Europe. And finally, the extraordinary 2 years tax or 1.2% of donor within Spain, excluding regulatory activities that is applicable in '23 and '24 and is not accrued in the accounts of 2022 by indication of regulators and auditors but it's included in the figures that we have highlighted as a guidance for 2023. Europe is also regulating a lot. Everything started with a very important fear on inventories of gas for winter '22, and that increased the level of inventories from 80% in November 22 to 90% in November 23. Europe has also targeted other wafer profit taxes in a different way that Spain did it. There is today a work in process action led by the European Union to contribute as one single platform of joint purchases of gas. This is something under discussion on which Naturgy is been consulted.  Price gap on TTF gas prices has started in January '23 after the regulation to cap the prices at the level of 180 gigs megawatt. And finally, probably the most important is starting discussions that should finish during this year or at least at the beginning of next year on the electricity market and the European power market is under revision. Many different initiatives have been taken place by different countries and in particular, all this work is expected to be conducted during the year '23. What have we done in Naturgy? Point #1, in terms of our role in energy supply and in particular, in gas compared to other countries. Spain is a quite diversified country in terms of the source of the origin of the source of its gas. Thanks to our excess of regasification capacity, we are able to be supplied over 70% of the gas by vessels through regasification stations, 70% of them is LNG and 30% or around 30% is coming through the pipeline. You know that since October 21, the Mcgrivian pipeline has been shut down. That was a concession expected to finish by that time, and it has been impossible to renew such a concession. And therefore, since then only the Vetgas pipeline, the one that connects trade Argelia, with Spain in Almeria is the only supply infrastructure for gas. In this regard, Spain imported by pipeline over around 130 terawatts of which more than half were supplied by Naturgy. And in terms of LNG, 30% of the gas that has been supplied to Spain came through our vessels. That's one of the main reasons why we highlight the fact that Naturgy has been key in warranting the security of supply. On the other side, power, electricity, renewables have played a very important role during the year and is playing a more and more important role. But as all of you know, renewables are subject to natural effects. And the reality is that the year '22 has been a very dry year in terms of hydro production and wind has not been at a peak as expected. And the different combined cycles of gas turbine cycles of gas has been responsible to provide the lack of energy that were provided by the renewable sources. In this regard, our production in CGT in Spain has moved from a level of 15 points within the total share to 25% and in particular, the production of our gas turbines increased to a level that was above 50% of what has been produced in the previous year. In terms of commercial activities, two important actions, one around our initiatives Compromiso commitment initiatives with our clients, different decisions taken around. Second part is facilitating the introduction of improvements in regulated tariffs, in particular, gas, made life much easier to our clients. In this regard, we have incorporated more resources to our client services in order to facilitate our clients to click the appetite for other regulated tariffs. On the third part, important to highlight the role of our foundation to support vulnerable clients through their own initiatives. I want to reinforce the idea that as a company, we are strongly committed to support initiatives that may be in the benefit of our vast different group of clients. In terms of investments, almost EUR 2 billion invested. All businesses were benefited from this investment activity. But in particular, I would like to highlight 2. #1, our networks. In networks, around EUR 800 million were invested in both gas and electricity networks. And the same amount in the renewables is melding up the installation of our capacity in renewable power generation. If we would need to divide this investment between 2 categories. I would like to highlight that most of this investment went to the growth side more than the maintenance. That doesn't mean that we have been giving up to our responsibility in maintaining our assets in good shape. They are, but we have focused more on the growth side for our investment in aging side. In terms of taxonomy, most of the investment has gone to an eligible taxonomy objectives supporting our commitments on ESG. I now hand it over to Steven Fernández, who is going to briefly summarize what has been the consolidated results over the year 2022. Thank you, Steven.

All right. Thank you, Francisco. Good morning, everyone. So if we move on to Slide 16, we want to discuss some of the key highlights of the year, which it's been very busy, but I think we can summarize them in 5 key elements. First and foremost, a stable gas gross margin of between 5% to 6% despite volatile gas scenario. That is a very important point focus on. The group has been very keen in managing the market volatility, and this is a result of that management. #2, you've seen the results, and we can assess from them that the full year numbers continue the trends that we saw in the 9 months of the year. We have, as Chairman, has mentioned, increased our CapEx by 30% with networks and renewables driving that effort and more than 90%, 9-0, of the CapEx has been dedicated to growth. And as you can see at the end of the slide, we'll discuss where our expectations or for year 2023. On top of that, we have strengthened our balance sheet, and we have significantly reduced our net debt position. And finally, as we mentioned previously, the total dividend that we will be paying against 2022 results amounts to 1.2 per share, in line with our commitment with the markets and representing a payout of 70%. With that said, EBITDA amounted to around EUR 4.9 billion, mainly driven by a good performance in the liberalized activities, again, amidst the very volatile environment that we've been living in. Net income amounted to EUR 1.6 billion, supported by activity and despite one-off effects and higher funding costs, particularly in Lat Am as a result of the higher interest rate environment as well as higher taxes compared to the previous year. Total CapEx, as Reynés mentioned, amount to EUR 1.9 billion and mainly driven by renewal developments in Spain and Australia, together with the investments in the networks. The strong cash flow generation in the period allowed to increase investments while also allowing us to comfortably deliver on our dividend commitments while at the same time, also reducing mid debt. So if you move on to the next page, I think this is an interesting slide where you can actually see the company's prudent capital allocation over year 2022, where cash from operations has amounted to around EUR 4.3 billion. We dedicated a significant amount of cash to grow the company and to invest. We've kept our commitments with the markets in terms of the dividend. And of course, we've lowered our net debt. On this point, it's very important to understand that the net debt has decreased. And as a result of that, the net debt-to-EBITDA ratio is now down to 2.4x. And in this sense, it's also important to understand that the corporate ratings were reaffirmed by both S&P and Fitch in October 2022 at a BBB rating. It's also worth reminding you that in November, we amortized EUR 500 million of hybrids without replacement, thus losing the equity component of the outstanding EUR 1 billion hybrid layer. This net debt figure excludes the EUR 1 billion of hybrids that are still outstanding. In terms of liquidity, the company closed the year with a very strong liquidity of EUR 9.5 billion. It allows us to comfortably position ourselves in the face of this significant market volatility. We have not had to face any cash collaterals. We've been operating in OTC markets. And as a result of that our company is in a very comfortable position. This liquidity, we expect to remain very strong for the year 2020. If we move on to Slide 18. This is just a reminder of the distribution of our dividends. So we've been paying $0.30, $0.40 on the last remaining dividend that will be paid after the AGM in April 2023 will be $0.50, bringing the total to 1.2 with an implied payout of 70%. Obviously, this dividend is subject to the AGM group. In terms of ESG metrics, the company has also continued to improve and progress positively. If we look, for example, at its emission-free installed capacity and its reduction in CO2 emissions, the company is progressing well. And if you think about, for example, emissions in 2022, they were actually 24% below those levels in 2017, including all scopes, that's 1, 2 and 3. And that compares very favorably to a 16% reduction in year 2020. The company also aims to restore its natural capital and biodiversity through multiple initiatives related to the prevention, reduction and compensation of its impacts. And as an example, during the year 2022, a total of 345 biodiversity initiatives were implemented with a significant amount. Furthermore, the group also continues to progress on gender parity, which is something very important for us and women representation, gradually increasing the percentage of women in management positions, which now stands at 34%. Likewise, the percentage of suppliers that have been ESG audited has reached 83% in 2022, significantly relative to 2020, where the amount only stood at 7%. So with that, I'll hand over to Jon to go over these specific businesses.

Thanks, Steven, and good morning, everyone. So we're starting with Networks Spain on Page 21. Network Spain contributed 31% of the group's EBITDA in 2022. Gas Networks were negatively affected by the negative remuneration adjustments part of the regulatory period '21-'26 and lower demand across the board. In the residential segment due to milder temperatures, but particularly combined heat and power due to the impact of regulatory measures in the electricity market. Electricity networks for its part, showed stable performance with growth in investment, partly offset by regulatory impacts. The comparison versus last year is nevertheless affected by the restructuring plans that took place last year. Moving forward to Networks LatAm on Page 22. Network Lat Am contributed 19% of the group's EBITDA in 2022 with Brazil and Mexico, the largest contributors in the period. In Chile gas, higher sales and margins in supply were not enough to compensate the negative regulatory review and one-off provisions that were duly explained in the first half presentation. In Brazil, tariff updates and positive effects were partly offset by substantial lower gas demand, particularly in power generation due to abundant hydro-force in the year. Gas sales were indeed 51% lower than in 2021. As a reminder, in Brazil, tariffs for the period 2018, 2022 are still under discussion.  In Mexico and Panama, FX impact was the main growth driver. On the flip side of the FX evolution, Argentina's higher demand and tariff updates were partially offset by continued FX depreciation. Turning on to the liberalized business on Page 23. Energy management activities contributed 34% of the group's EBITDA in 2022. Wholesale gas, including market and procurement and international LNG activities benefited from higher selling prices, mainly on the international markets. However, in international LNG, the results have been negatively affected as the company has reassessed the effectiveness of our hedges due to the decoupling of the TTF index with a physical sales price. This reassessment is mainly due to the hedges for 2023 and is a noncash item. In thermal generation experience an increase in CCGTs production by 55% to cover the shortfall in renewables and did help to avoid brownouts particularly in Q4. As highlighted earlier in the presentation, CCGTs played an essential role to guarantee security of supply in Spain. Finally, platinum thermal generation was mainly supported by positive FX impact. Excluding FX, the contribution was lower due to planned outages and management. Let's now turn to our renewables activities on Page 24 of the presentation. Renewables activities contributed 7% of the group's EBITDA in 2022. Spain benefited from higher prices and new capacity coming into operation, which was offset by lower hydro production. However, the comparison versus last year is affected due to the fact that last year, we registered the recovery of the hydro canon in Australia, higher production and positive evolution of the mark-to-market valuation of existing PPAs were offset by higher OpEx. In Lat Am, higher margins, except in Chile and positive FX impact contributed to the positive performance. In summary, renewables growth was mainly driven by higher prices despite the lower hydro and one-off effects affecting the comparison with Spain. Finally, supply on Page 25. Supply activities contributed 11% of the group's EBITDA in 2022. Results reflect recovery from an anomalous 2020 and 2021, where some contracts did not reflect the substantial increase in gas procurement cost for pool prices seen in the period. Gas Supply improved its margins and competitiveness from 2021 lows, especially in the Industrial segment, following the [ withdrawal ] of some gas contracts and associated penalties in 2021. Our supply margins also recovered from 2021 loss due to a long sale position in a market where prices were increasing. This impacted profitability in 2021. Power sales remained relatively stable vis-a-vis last year. In a sense, supply has experienced a recovery for anomalous 2020 and 2021 levels. So this is it for the review of the various activities in the year and back to you. Back on to Arbat.

Thank you very much, Jon. I think that is time for a quick summary of what it has been said before starting the Q&A part of this session. As a summary of 2022, I would like to highlight 4 important ideas. #1 is uncertainty, warrantied stable gross margins, that's thanks to productivity in management approaches. #2 is role in security -- in warranty and security of supply for the country, for our clients, and in particular, also at the time that some initiatives were put in place. #3 is progressing on ESG matters as a demonstration of commitment of the transformation of the company also in this field. And finally, results are following the trend that the market knew since third quarter and in particular with a prudent capital allocation that warranties a safe balance sheet for next coming years. In particular, if we move to the outlook of 2023. If we talk about businesses, I would like to differentiate what our business or networks may expect compared to our business around market networks. In Spain, we see stable gas volumes continuing during the year '23 with growth in electricity distribution, thanks to the adaptation to the new diversified sources of power generation because of the introduction of more and more renewables. In LatAm, adaptation of tariffs because of inflation, including growth in demand after some years with stable demand in that side. In markets, we will continue in an uncertainty scenario. This uncertain scenario will drive volatility in commodity prices and will force a need and a focus of management and paying attention in managing as it has been done during the year 2022. In particular, in the wholesale gas, 2 important things. #1 is we will need to dedicate time during '23 to adapt to market conditions, our pipeline contracts of gas. And second, we have now more flexibility after Jon's explanation on LNG market performance in '22 to capture opportunities that are arising and may rise. Renewables, Important to say that we will increase our investments. And in particular, I want to highlight that all these additional developments are made with our own cash and the CapEx is purely organic. And finally, in supply, after a very important anonymous 2020 and 2021, we have improved our profitability that may -- will be sustained during the year '23. Instead of watching the '23 by businesses and we do it by nature of financial matters, CapEx will increase at least 50%. Net debt will be affected by a very important strong cash flow generation, and we can continue committing on investment grade in rate. Dividend would maintain the commitment on the strategic plan as the floor of 2022 similar level -- 2023 at a similar level of 2022. And finally, considering the volatility of the scenario, we think that is more prudent and is allowed by regulators norms that from now on, our financial reporting will be done on a semi an basis in order to avoid the volatility of the orders. And we don't want with this measure to incorporate more uncertainties or strange explanations of what is going on during the quarter. Finally, we can commit that we see a 2023 year, again, very volatile. But in terms of our EBITDA, we see that we can guide the market with at least a 2023 level with a level that has already been achieved in the year 2022. This is all from our side. And now I hand it over to Abel, who is going to manage the part of the session related to Q&A. Thank you, Arbat.

Thank you, Paco. Just a reminder to all the analysts and investors that any questions you may have, you need to be submitting those through the webcast, okay. So let's just start with the general questions received so far related more to the big picture. There are a number of questions relating to Project Gemini and whether we could provide an update on its status and also what would need to happen for the split to be resumed or the split to go ahead.

Well, in general, I can confirm 3 things. #1 is the idea of Gemini is still valid. It's a fact, as you have heard our explanations of 2022 that we are living within a world of 2 different realities. The reality of infrastructure business around networks of electricity and gas that all of them are subject to market conditions, but which are completely different than the world of the markets business, which is volatile, subject to commodity prices evolution, et cetera. Therefore, from a strategic point of view, it's a project that is alive. From a practical point of view, it's a project that needs to be subject to the conditions under which it may go ahead. As I said before, over 20 different regulations has been established within the year '22 that require a very important amount of study of implications. And finally, the market itself, we have never live such a volatility in the market as we live during the year 2022, and it's part of management's responsibility to choose the right time for the implementation of the strategy. Thank you, Francis. Thank you, Paco.

Then there is a question on the company's decision with regards to financial reporting as to what are the main reasons to the ministry to semiannual reporting basis.

I think the Chairman pointed out some of the key reasons. Look, the first message is this is a long-term business. And I think guiding the performance of the long-term business with short-term reporting or short-term view doesn't necessarily provide an accurate assessment of how business is evolving. Secondly is we've seen during the course of 2022, the amount of volatility that we've experienced in the markets. And the reality is that this volatility has led to significant changes and swings in the quarters. And again, we think that providing the figures on a quarterly basis does not provide an adequate picture of how the company is progressing. So as a result of that, we decided to make use of our ability to follow on a semiannual basis. It doesn't mean that we'll be out of the market during the quarters. Some people are asking, we are not will be providing trading updates. That's the idea for Q2 and Q3. And then financial disclosure on H1 full year.

Thank you, Steven. Let's now move to a few questions on the guidance we've provided. There are a few questions with regards to guidance for 2023. #1 is whether or not this guidance includes the 1.2% tax on liberalized revenues. Also related to that, whether or not we are including as part of our estimates that this 1.2 tax could coexist with any of the European taxation on windfall profits. Furthermore, there are also questions as to how the guidance would compare to a more normalized or recurrent or ordinary 2022. And if we can provide any detail on that regard.

So thank you, Abel. Regarding the first question, yes, it does include 1.2%. Second one, no, we do not see any other taxation measures by the European Commission because our understanding is that the 1.2% is the Spanish translation of the EU measures. And regarding the guidance for 2023, I think that right now, talking about a normalized year is something that it doesn't make a lot of sense because as the Chairman has said, we've seen and we think that 2023 is going to be highly volatile. So I think that the guidance is the best estimate that we can give at the results that we will have in 2023. Thank you.

Thank you, Jon. Now moving on to some of the questions in the markets business and in particular to the markets on procurement and international LNG business lines. Could we clarify a little bit why is the negative performance in international LNG? And how does this relate to the more strong performance in markets and procurement, given the understanding that international LNG, some of the contracts are -- or the majority of the contracts are procurement in Henry Hub and sold into internationally in Europe or abroad?

Yes. So basically, I think that both businesses have benefited from international sales, both of them. So I think that when we look at the positive results in marketing and procurement, we are seeing benefits from international sales. International LNG has also benefited from international sales, but the fact is that International LNG is the only business that has ETF related hedges. And those are the ones where we have assessed the effectiveness of those hedges. And therefore, that only affects the international LNG business, and it does not affect the markets and procurement business.

Thank you, Jon. Continuing on our liberalized activities and in particular, to energy management, there are a few questions on Spanish thermal generation on what is driving the significant improvement in performance in Spanish thermal generation.

I would say that there are 2 main factors that are driving the increase. On the one hand is the fact that this production has increased by 50%. So I think that explains a substantial part of this. And also in the current scenario, spark spreads have been higher than they were the last years.

Thank you, Jon. A number of questions as well in renewables related to the amount of new capacity that we are expecting for year 2023, considering the guidance provided of a 50% increase in CapEx deployed into renewables.

So I don't think that we are giving any specific guidance regarding installed capacity. We've just given a guidance regarding the overall CapEx, but that should give an idea of what the capacity growth could be in the next year.

Okay. Thank you. Now a few questions as well on the evolution of our supply business and its recovery from 2021. What have been the main drivers of this recovery, both in terms of gas and electricity supply in Spain?

No, I think that the recovery is not so much about talking what happened in 2022. It's a lot more about talking what happened in 2021, 2021 and 2020, but let's focus in 2021. It was a really bad year for the supply business. Let's make a bit of history. 2020, we had the lowest gas prices in history. TTF was EUR 9 megawatt hour and 2021, gas prices were EUR 100 megawatt hour. So what we see -- what we've seen is 2 years of Ara -- and in those 2 years of the commodities probably both for gas and electricity prices. The thing is if you had a long position as we had for both in electricity long call position as we had both in electricity and also we had this fixed cash contracts in gas. That meant that in 2021, the results that we had in supply were really negative. So I think that is not so much that 2022 has been a really good year. It was a matter that 2021 was a really bad year.

Thank you, Jon. Also a few questions on cash flow and how it relates to EBITDA, given the significant deleveraging that has been accomplished by a company during the year. In particular, there are a few questions on the positive cash flow that's stemming below EBITDA and how this relates to the hedging that we've discussed, if we could clarify that.

Yes. So the main driver is that the reassessment that we've done or the effectiveness of our hedges, as we said during the presentation, is a noncash item. And therefore, that's something that comes forward in the -- our cash flow statement. And I think that if you want more figures and more specifics, I would address people to the annual report that would be published by the end of this week. And I think that they will have more comprehensive information.

Thank you, Jon. Now moving on to questions relating to our financial structure and the capital allocation. There are a few questions with regards to our expected cost of debt moving forward, how will that compare to the current year? And also, if we can provide a view or some guidance on what's our intention with the outstanding hybrid layer.

So in terms of the average cost of debt for years 2023, it doesn't escape anyone that the environment has changed. And although we have a sizable portion of our debt in fixed rates, there is a portion of it that will be affected by increase in interest rates, namely in Latin America. And the overall estimate for 2023 is an increase of around 60 basis points, 6-0, so the average cost of debt. In terms of the hybrids, as I mentioned before, we have lost the equity components of those hybrids as a result of non-honoring the November call. So now we have 2 hybrid instruments outstanding, EUR 500 million each for all accounts and purposes of means and purposes, we consider those internally as basically senior debt like with every other senior debt instruments in our portfolio. Now we do look at the market on an opportunistic basis, but we are in no need to refinance or do anything at this stage. So whatever we decide to do with those instruments or any other instruments will be simply a subject of how we read the market, how it evolves, whether or not there's opportunities that present themselves. We're very fortunate to have significant liquidity. We had a bond matured in February of this year. So we've amortized that with our -- that was a senior bond without replacing it either. So that is a testament of the company's financial muscle and our flexibility.

Thank you very much, Steven. So I think that the remainder of the questions which are of more quantitative nature, we can address those on a one-by-one basis from the Capital Markets team. So that would conclude all the Q&As received for this presentation. So we thank you very much for joining our results presentation, and we remind you that the Capital Markets team is fully available to address any other concerns or questions you may have. Thanks very much.

Thank you, Abel. Thank you, the team, and mainly thank you for those that has been in touch with us this morning. The company remains open and transparent to all of your questions and may address by e-mail or directly by phone and hopefully, to see you soon in person. Thank you for us. Thank you for you to join us.

Thank you, everyone. See you. Good bye.