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

Good morning. Welcome to everyone. Thank you for the presentation. [indiscernible] September 2021. My name is Juliana Vergara from Investors. [Operator Instructions]. Please take care, this phone call is recorded. Today with us is Eric Flesch, President from Promigas, and here the Vice President as well as administrative one. As another executive throughout the company follows, we're going to start with Eric Flesch, who's going to start the presentation of the results of this first quarter of this year.

Well, good morning, everyone. On behalf of Promigas team and myself as well, to us, it's a pleasure to be here with you guys and [indiscernible] this first quarter of this 2021. We are going to be together, please do this presentation. Such a way as we are having [indiscernible] presentation, I am going to proceed to read the report, and in the end, we're going to have a Q&A session for those one who consider to take into account to ask them -- with next page. With a disclaimer of our corporative briefly, as a relevant thing, we would like to tell you the result is of course EBITDA of COP 509,000 million (sic) [$509,792 MM] which represents an increase of 21% related to the previous year as well, and the net income of COP 236,486 million, which means an increase of 10%. Related to qualifications as well, the credit rate is ratified with the period, and the Fitch ratings to Promigas, we tracked AAA with -- col, Colombia, and the BBB as international. At Promioriente, AA in Colombia and F1 in Colombia. Energy services. In alliance, Surtigas and CC Caribe Plaza inaugurated a solar plant that will generate 1.4 million kilowatts per year, and those investments exceeds the $3.8 billion. On the other side, the GDO and CC Carrerra started operating by 125 kilowatts solar project that replaced 40% of the electrical energy in the shopping center. Related to the sector reported at Colombia, 22nd Colombia Sector Report ratified its contribution to the sectors with a complete, with a presence -- limited capacity, and will be referring to a national level as well. As our relevant things, we have the Sello Plata Equipares Certification. So probably got the first distributor in the Carribean region and the second in Colombia to obtain the Sello Plata Equipares Certification. Also, we have been using these Works for Taxes and the Transmetano's. At the Colombian Institute of Family Welfare ICBF, we delivered endowment for 36 Child Development Centers in the Department of Antioquia, thanks to the $8,600 million allocated by Transmetano's "Works for Taxes" in this region. On the other side, Promigas has received a Recognition of Good Practices for Sustainable Development from -- is a prize for our initiatives in this case for the third consecutive year from the United Nations as well. According to relevant data, we have an update here of the quarter. By SUB (sic) [SBU] to 3,288 kilometers, 1,153 transportation capacity, and the volume transported in the quarter in 2021 year, 442 MPCDs daily. Related to LNG, a regasification capacity of 400 cubic meters, volume regasified 1,706 in 2021. Days regasified as well is 48. For example, Industrial Solutions, we have the generation capacity of 47 megawatts, a gas treatment capacity 35 MCFD. Related to distribution of SBU , as we will have this data, because in Colombia, we have with 3.9 million of users, an increasing -- a 4% increase. In Peru, 1.4 million users, which means an increasing of 24%, and in total, 5.3 million with 8% increasing. We have between Colombia and Peru, we have been extended as well, 888 (sic) 889 as well. 59, and gas sold 2,872 million as well. This is a 10% related to the previous quarter. Related to non-banking financing, which has been increasing of 160%, $716,589. We have 4 million users, so 12% increasing. And electric power, we're talking about 419 users, 3%. Energy demand, 342 gigawatts (sic) [742 gigawatts]. Losses, they're pretty low, 12%. talking about 29,025 kilometers, an increasing of 4%. Related to financial results individuals and these revenue. We have an incomes of COP 0.4 billion. It has been increasing at over 33%. We're talking about an execution of EBITDA 109%, increasing 32%, growing up. A $0.3 billion increase in the 39% in order to have an execution of 110% related to the execution. The result was really significant in this case. Related to financial results. In the consolidated ones and individuals, we have COP 1.2 billion (sic) [$1.2 billion] 31% growth, percent of growth. EBITDA at $1.0 billion, increasing of 37%, and we talk about a net income of $0.9 billion with percent in a growth -- a growth of 40%. Percent of this execution is 113%. Related to consolidated results, the revenue, COP 71.1 billion (sic) [$1.1 billion], increasing variation of 10% related to execution of 101%. And EBITDA, $0.5 billion, so the execution of 111%, leading to have an increase of 21%. And the net income in the quarter, we're going to talk about $0.2 billion, 10% increase. Execution, 89%. Related to accumulated data to September. Revenue's $3.3 billion, as an increasing of 7%. EBITDA $1.5 billion, 27%. And the net income increasing to 31% related to $0.8 billion, an execution of 106%. The outstanding results mentioned above confirmed the solidity, security and reliability of our operators. At the same time, they show both our critical contribution to the energy matrix of Colombia and Peru, as well as the unrestricted support for the recovery of the economies of these countries while we finish overcoming the COVID-19. That 61% of our profits come from our investments portfolio in other companies, subsidiaries and related parties, reflects the fulfillment of a strategy drawn up many years ago in Colombia since the beginning of the 21st century for Peru, where our activities are consolidated day by day. We're going to go to different pages and presidents. We're going to start about our appreciations operations Presidency, Vice Presidency, safe, efficient and reliable corporate transported value and corporate transportation capacity, 1,153 cubic meters. We are going to talk about thermoelectric of minus 1%, industrial minus 1%, distributor 4%, GNCV of 20%, and the Total by sectors, we are in the same level. We have been presented with some maintenances as well, related to the national and interior, which has been impacted from the shipments for the period. Thermal customers have shown a significant decrease attributed to the high hydrological inputs in the first months of the year. The level of reservoirs have been above historical average in 2020, natural related to the economic reactivation. And you can see our recovery is observed, of course, in the vehicular gas sector. Related to the fact we have a maintenance in Cupiagua field maintenance. Six days with deliveries of 0 related to this source as well with a deficit of 200,000 MCFD in the national supply at the end of August and beginning of September, according to the metrics as well. So as we mentioned, some other sources that's another servers, we can replace these maintenance. Such a way, Promigas in the coast showed its promises as well. So force majeure events of Promioriente, suspension of injections from the Gibraltar since the beginning of August. Due to the impact of the gas pipeline due to weather conditions, heavy and long-lasting rains. So landslides of a block of a soil and rock present on a steep slope between the bank of the La Soberania road and the body of water Negro river, affecting integrity of the gas pipelines. So that is happening, unfortunately, in the [indiscernible] zone, which is not stable. The loss of the corporate transportation [indiscernible] and transportation service continuity index 2021, 92% in August, and September were 92%, and July, 100%. On the other side, we have the issuers for the high-risk tasks as well. In order to -- the competition strategy to strengthen safety competencies for direct workers and contractors. Only workers who pass the course are certified to issue work permit. It guarantees adequate identification of hazards and application of controls in critical activities. This year, we have been certified workers in the SBU Transportation 533 people. And accidents in high-risk tasks, 0 personnel. Results of the SBQ (sic) SBU Transportation, third quarter are very good ones. From July to September, we have COP 320 million, increasing of 3% in the accumulated 3% of course. All the information are showing a very good management as well. Relevant aspects related to the gas transportation has been presenting a really important diminishing related to the huge contributions that we have in the first quarter of the year as a result of diminishment of the gas consumption related to this. I talk about a 4% related to the 2020, and the gas consumption increased in the third quarter. In the third quarter of this year, we have been showing some maintenance from in the system of natural transportation to the interior coast, but it didn't impact really a significant result. In the thermoelectric sector, where the consumption of gas to an about 4% of the quarter, mainly to the industrial consumption as a result of the economical reactivation as well. And here, we can see the answers of increasing. We're going to continue with the gas natural transportation. In the first quarter of September 2021 was 9%, a variation of 19% in its value. Basically, this affection is due to the Gibraltar-Bucaramanga, who since August has partial attention to the demand for counter flow from the transfer point of the gas. Transmetano has had an increasing of 7%. We have a very positive perspective, it's recovering against the COVID, it is a good news as well of the [indiscernible]. Related to Jobo Antioquia project we have been opening in Promigas. We are working with people involved in the project, they can be involved on it. For Promigas can contribute its experience of 46 years' time in the sector, having a trend of these kind of products at Colombia. This is very important for the project. With a length of 300 kilometers through mountains and there are communities. And of course, the Promigas experience, that's why the success of situation of these projects, of course, in order to send to Antioquia as well through that sector, which is center of the country, nearer to the central parts as well. So at this point, we're going to have the power to continue moving forward and to be able to be the first border company in transportation. And Promisol as well we'll continue with the relevant aspects. Natural Gas Infrastructure Energy Solutions. With the Promigas' pipeline maintenance services exceeding contractual promise. In November, Promisol receives proposals from partners to offer Promigas the new term of the contract 2022-2024 related to gas, natural infrastructure. We continue to operate satisfactorily the BOMT contract for the Bonga-Mamey plant, and an agreement was reached with Hocol for the construction of the connection to the Mamey 3 well. With production of 9 MCFD giving stability to the field in negotiation expansion to 40 MCF. We have a 25% progress in the construction of the Zona Bananera gas with 0 accidents reported, and 100% compliance with environmental and social commitments. According to this SPEC, the company has a very important future not only for Promigas but for the country. In fact, we have had some meetings, some previous meetings, in order to explain the procedures and enhancing of this relationship, of this -- we have capacity of 100 square meters cubic per day, and the chief capacity is going to be 400 -- 433 cubic meters, the capacity about 170,000 square cubic meters. Energy capacity with 3 in comparison with 14, to the 32% related to the [indiscernible] as well with the capacity that pertains to these matrix. We didn't have any shortcut of power in the [indiscernible]. It is going to be a key [indiscernible] matrix in the country, and of course, to these reservoirs. And that is just a way to support these reservations as well, to the reservoirs to the national level, once we have SPEC create it. And we have the [indiscernible] when it's going to be -- sorry SPEC also could reach as a backup in the same way we have a gas pipeline ready to work. Related to natural gas transportation and regulatory aspects, we continue working with the Bidirectionality Project Barranquilla-Ballena in the [indiscernible] and through Resolution 330 of 2021, defined the priority projects of the supply plan, IPAT, with which the Barranquilla-Ballena bidirectionality is found. So Promigas must submit to the CREG within 3 months, the required investments of the project for approval. Promigas has, since 2018, 2019, presented [indiscernible] these projects has been filed many times for every single country, in the same way from the gas pipeline, gas, oil is going to be projected here for the TGI. And the gas pipeline, we hope, this time will have success. Related to normative useful life process. In October 4, CREG adequately resolves the pending regulatory useful life processes of the assets of Promigas and subsidiaries. Recognizes the new value 100% of the values of the expert. It ratified 60% of the new value for the assets that remain in operation. Rate update is expected in the coming months. And according to transportation methodology, Promigas continues to take steps to obtain a comprehensive methodology for favorable remuneration for the continuity and expansion of natural gas transportation systems in Colombia. Final resolution is expected during the month of October. We are just ready in October, November in order to see these results in any moment. Results of SBU distributions, positive data as well to about 13%, 15%. We're accumulated 9%, increasing of distributors results in Colombia, Peru, good results. Talking about 37% of the users who uses natural gas in Colombia and 94% in Peru. Gas users in Colombia contribute 74% of the total users of the SBU distribution and 26% of those in Peru. Quavii accumulates our company in Peru are talking about 148,942 users within the BOOT goals in 3 locations: Trujillo, Chimbote and Pacasmayo. And we also have a progress in execution of the Piura 94-kilometers project in polyethylene networks and 1,642 accumulator users. Related to electric power, as of September 2021, CEO connected 10,269 users, accumulating a total of over 419,662. The most relevant aspects of SBU distribution because of accumulated results. We have the gas natural volume is a variation of 10% indicating 8,778 cubic meters. We're talking about 16% and 742 gigawatts per hour. The users, 102%, this is really good. [indiscernible] uses. Of user in total, we're going to talk about 4%. Towns served, 948. CapEx invested 124%, so we're up to, what, COP 749, 578 million. And the Brilla placement, we're going to talk about 160% of variation of COP 716,589 million. All those digits and the show a significant recovery compared to the same period. Compared to previous year, distribution of plus 7%, talking about 22%. And the EBITDA is increasing a growth of $404,513 million, so talk about increasing in Colombia of 8%, and in Peru 75% increase. Related to regulatory aspects. In transversal matters, we had a publication by the Ministry of Mines of the Hydrogen Roadmap seeking to contribute to the development of -- implementation of hydrogen in the country, thus reinforcing the Government's commitment to reducing emissions as stipulated in the objectives of the Paris Agreement of 2015. Ministry of Mines published Energy Transformation Mission Primer, which presents a summary of the proposals as made by the experts in Phase 1 and the Roadmap resulting from its prioritization developed in Phase 2. According to the Law 2099 of 2021 was enacted for the energy transition, the revitalization of the energy market, economic reactivation of the country and other provisions are issued and Law 2128 of 2021 was enacted, through which it seeks to promote the supply, continuity, reliability and coverage of Fuel Gas in the country. So having [indiscernible] these topics, which are very important ones. Law 2128 of 2021 was enacted through which it seeks -- in order [indiscernible] to have this positive and the impact in life quality, and access to the public service as well. The government will dictate the regulations that guarantee supply and reliability of fuel gas supply as the axis of the energy transition and to promote massification and to guarantee -- the reimbursement of this and innovation to promote new technology and uses. The Ministry of Science may encourage the promotion of the use of the new technologies by co-financing projects. Law 2099 of 2021. Its purpose, among others, is to strengthen Law 1715 of 2014 regarding to the energy transition as an effective way to reduce polluting emissions from fossil fuels. [indiscernible] and blue and the green hydrogen are included within the purpose of the Law. Administration, storage, operation and maintenance of the FNCE and efficiency of energy as a public utility and social interest. The National Government will promote photovoltaic self- generation in official buildings, especially in education and health. It is specified that self-generators owned by Oil, Gas and Natural Gas producers may sell their surplus energy generated by plants that use fuel gas. And we fund the Unique Fund for Energy Solutions FONENERGIA, electric power and gas, is created. We're going to go to Brilla. The third quarter 2021 where we already focused on the digitalization of the Brilla credit. Implementation and consolidation of a new Brilla sales platform for the massification of digital transaction. This is very important. This means any user, Brilla, they have the millions is approved by Brilla credit and will contribute, of course, to these kind of initiatives through bonuses among companies, deployment of tools for the profitability of the user in different lines, and expansion of potentials and deepening of quotas by new allocation criteria according to payment behavior. Our results have been wonderful in the first quarter 2021. We're talking about results in the third quarter or 2021. 339,000 users benefited, particularly about 4 million users since the beginning of the program benefit. The most meaningful part of this where the 1, 2 -- Income Bracket 1, 2, and 3, basically a huge percentage of the users. Main Brilla's figures accumulated at September 30, 2021. Talking about $716,689 million (sic) [$716,589], which gives about 160% increase in placement. We're talking about $1,275 million (sic) [1,275,161 million] related to the portfolio. Related to energy services, we consolidated with our customers of their energy transformation, offering comprehensive and sustainable solutions for renewable synergy and energy efficiency CEO, our company. They have been done some alliances with the Greenland group for the development of solar self-generation system for four of its headquarters, 745 kilowatts in this case. With the GdO commissioning of the CC Carrera solar system with the shopping mall, Carrera at Cali. At this moment, 2021, we have some projects. We have been increasing 182 megawatts. We have photovoltaic capacity September 2020, 150 megawatts. In the third quarter, 7.4%, increasing 10%. And something which is relevant, related to the economical sectors as well where the capacity higher at Cartagena, Colombina, Caribe Plaza, among others. Some -- these previous days, we have the integration of the Canal del Dique Solar Park. Surtigas, Promigas' subsidiary, began the operation of the first phase of the self-generation solar system that will supply electricity to 2 pumping plants belonging to Aguas de Cartagena. Capacity of the plant was almost 5 megawatts. [indiscernible] investment of COP 19,000 millions. So we're talking about this -- the annual production of megawatts. And we're talking about 6,600 tons of CO2, forest equivalent hectares of these projects are equivalent of 830 hectares of forest. [indiscernible] with the president for really good work for Cartagena, because we are really focused to work [indiscernible] and a lot in Colombia, Peru, as well, contributed companies integrated solutions authorized because we can see here besides generally a huge development for some companies directly the reduction of CO2 emissions in environment. According to mobility, there is an increase in fleet of dedicated vehicles of 61% in fleets. The units operating [indiscernible] extraordinary results in a dynamic market. We have the very good thing. The first tract, a simple one. We have purchase orders for transportations, passenger transportations, special transport. The demand -- increase in volume demand is increasing 17% compared to accumulated until 2020. To the communication and positioning of these kind of projects is very important that the country can be asking to invest in these kind of products, with a huge economical advantages. It also has more than 16% of variation. Corporate aspects, sustainable management. We launched very important Fundacion Promigas joining efforts on a single foundation. During the economic, health and social crisis, we guarantee services and our support [indiscernible] foundation for Colombia and [indiscernible] that work with companies. And we will be contributing, of course, [indiscernible] of these [indiscernible] shipment, working with these national institutes to generate a social impact and economical and sustainable in these 2 countries. We have presence in Colombia, Peru. It's constantly [indiscernible] companies are operating [indiscernible]. [indiscernible] Colombia departments, which is 40% of the coverage of the national territory. We can see in the map where we are working for communities. We are really focused on [indiscernible]. We are trying to generate wealth in certain populations, creating profits, sustainable profits as well. We can continue supporting education, of course, because it's pretty important for these entrepreneurshipment and to be focused to go back to entrepreneurship communities and we are with them. And to cover this entrepreneurshipment, they will be consolidated as we were saying. [indiscernible] future quarter reports. With a social investment of $50,000 million, our goal in 3 years is going to be 11,000 benefited families, 40,000 people impacted, 8,000 young people and 350 entrepreneurship and 2,650 vulnerable families with more economic development. Promigas Foundation did a launch a few days ago Semana Magazine. There were some personalities in the country together and how the companies can contribute to the economic reactivation? How are we going to embrace [indiscernible] was present as well with some more entrepreneurs. Businessmen that you can see in the picture of the foundation was [indiscernible] was going to work for this economical [indiscernible] contributing their part that would be a good thing. At Barranquilla, we launched a project [indiscernible] become like a tax to the call center companies. It's very important, the English language. So we did the alliance with the Barranquilla City Hall to start teaching 600 young people receiving these classes. This is how the young people from there, they're going to apply the [indiscernible] because we're going to distribute a really interesting job as well. We're going to talk about our goal for 2023. 25,000 bilingual young people with job opportunities as well. Currently, trend is to grow up as well. Barranquilla, we want to have them up that we presented before. We want to continue working and really pretty similar projects, and the whole call center that we were speaking. This is also a good decision that we made for the very first time. With -- it was a tool where we need to pay some taxes through some civil works in alliance with National Institute Welfare. More than 5,000 children [indiscernible] were able to contributed more, COP 8,600 million. And these, logically, we're going to continue working and replying along the country, of course, related to the education to be able to offer this education in the country. And Promigas Foundation and our companies would be [indiscernible]. [indiscernible] very big time [indiscernible] the National Government has been launched we're going to continue applying. And we also -- we have some projects related to the field as well to the national vulnerables and their rural and the departments of Bolivar and Cordoba and Sucre. We have achieved some of this organization and a place will be created to work at these processes. We're going to talk about this 50% [indiscernible] in this -- in order to generate full for these committees as well to create an economical activity. Actually, in my foundation impacting in these communities. We're linked to this national program of Carbon Neutrality leaded by the Ministry of the Environment. With some organizations when we linked, for example, Promigas and 90 other organizations in the country joined the National Carbon Neutrality Program, reducing the greenhouse gas emissions by 51% by 2030. In this group of companies, Promigas is within within Group 3. That means, those that have a high degree of progress and have already defined GEI reduction objectives with their respective management plan. Auteco, Promigas -- Auteco, Cemex, which is in this kind of thing because it's really important to our commitment. In 2021, in July, for example, we [indiscernible] in order to raising awareness of expectations that we have to their employees' business units as well as vendors and some of their competitive partners in order for promotion of human rights. We joined Guides Colombia September '21, we joined with the working group of Guides Colombia, a multi-actor initiative where around 27 organizations from the private, public and civil society sectors participate voluntarily to generate and promote responsible and respectful business conducts and human rights in Colombia. As part of the work with this initiative, we began the self-evaluation of the Human Rights and Communities Guide. Related to innovation. We have projects in progress in renewable gases [indiscernible] biomethane, synthetical natural gas, hydrogen, ammonia. There are some projects that we have started. And the biomethane obtained through the anaerobic digestion of biodegradable organic materials. Synthetic natural gas obtained through the thermal gasification of organic materials such as agriculture forest residues. Hydrogen obtained from renewable electricity and the electrolysis of water. Ammonia generated from nitrogen and green hydrogen in a reactor with alkaline exchange. So we are working on these projects in order to impact, in order to contribute. We see a very important future because it's a very important one. Related to this hydrogen implementing as well. Related to operations in 2021, related to the operation, mobility, distributed generation, mixing with natural gas in networks, decentralized production. Now we're going to give our financial results, and I'm going to give the word to our CFO, who's been here. We thank you very much, and I'm ready to be here for the closing.

Thank you very much, Dr. Flesch. According to the final statement, profit and loss in the third quarter 2021 related to the previous 2020, the incomes or revenue. I'm going to talk about the 33% increase in EBITDA, COP 347,335 million increased of 32%. With the net income as well, we are talking about COP 295,543 million for a net income over the previous year net 39%. An explanation of these results we have been receiving according to income. We have 13% of operational incomes increased due to higher volumes transported in the non-regulated sector associated with the greater number of deliveries by Canacol to meet thermal demand. Higher TRM of turnover of 2021, [indiscernible] rate of invoicing, $3,706 compared to $3,500 (sic) [$3516] in 2020, and by contractual flexibility granted to our clients in 2020 in the wake of the pandemic. The participation method reflection of the Promigas participation due to application of base has an increasing of 60%, mainly for the application of IFRS 15 in our subsidiaries Gases del Pacifico and Gases del Norte del Peru, recognizing the margin associated with the obligation to perform the construction of infrastructure of the concessions. At Surtigas, increase due to better results in the gas distribution and commercialization business, materials and services and FNB due to higher loans, as our President was saying previously. Calidda, the company linked to Peru, an increase in gross profit from distribution business, mainly due to higher sales of gas and facilities. Promisol, increase due to the income generated by the pending settlement of the construction contract. The above partially affected by Promioriente due to an emergency in the Gibraltar-Bucaramanga gas pipeline during the months of August and September. As well as the EBITDA as a result, we are talking about $347,335 million the operational incomes as well as the participations [indiscernible] with the development of new investment projects and higher recoveries of provisions as well, and we have been analyzing during the year, in the year in 2020. The net income, as we were saying, was $295,543 million, 110% related to the budget. An increase mainly because of higher EBITDA and higher income from financial assets due to updating of real operating and macroeconomic variables and lower income tax, and partially affected by higher financial expenses with the higher average balance of debt originated by the investments made related to the operations during this year. When we see the accumulated 2021. For the same period in the last year, September 30, we have our incomes. We're talking about this kind related to the previous year [indiscernible] and its coming to the 40% related to this, related to these amounts as a consequence as well. These operational expenses, and a 6% compared to the application of this and we had a loss of this operating policy. We have loss estimating [indiscernible] as well in this, as we said before, because of the flexibilization of the contract in order to put up a rate of the pandemic effects and the registry related to losses of the distribution with [indiscernible]. And within these 2 companies, this participation, our participation of the allied companies has increasing because of the application of the because of the improvement [indiscernible] partner due to [indiscernible] as a partner and increase in Peru and its provision of portfolio due to compensation received from the COVID [indiscernible]. And in [indiscernible] has an increasing from lower cost provision of portfolio and CEO. [indiscernible] we have an increase in better results of distribution, a bigger volume because of the facilities and it was registered as well as better condition in 2021. We have something really important related to the net incomes because of the Ecopetrol and Montecz associated with the settlement of pending contracts. Related to EBITDA for COP 1 billion, to 112% budget while we were increasing. Increase in EBITDA mainly due to higher income received by participation method from our subsidiary, partially offset by a higher cost and expenses due to the savings achieved in 2020 as a result of the economic crisis caused by COVID-19, according to the impact because of this. The net income as a consequence of this increasing, $892,942 million (sic) [$892,944] 113% budget due to updating of operating and macroeconomic variables that we had in this calculation for bigger -- higher financial income generated towards [indiscernible] companies and higher income from financial assets due to the updating operation and macroeconomic variables. The foregoing was partially offset by higher financial expenses on account of higher average debt balance and higher current income tax to develop these activities. The general balance comes as a consequence in the P&E, there were some gains, and we're going to talk about the 62% increase due [indiscernible] decreed by the companies [indiscernible] which had an increase of 2% compared to those decreed in 2020 [indiscernible] that our companies have had. The financial assets that we have mentioned, mainly was the calculation of [indiscernible] calculation in financial assets. And the other assets, we're going to increase the 12% equated to the capitalizations made in Gases del Pacifico, Gases del Norte del Peru due to higher profit reported by our subsidiaries through the participation method and higher TRM that affects the value of investments abroad. We have had better assets and incomes as well. Participation [indiscernible] bigger [indiscernible] participate in the market, which in a positive way this investment grows. The balance sheet, we're talking about 79% per dividend in March 2021 and the 9% [indiscernible] 2020 and the -- in the long term because of the bonuses. The equities in a long-term, we're going to talk about the 47%, and [indiscernible] representative increasing, we're talking about the increase the -- of credits and increase in the TRMs that affects loans in USD, and in the deferred tax due to the new Tax Reform. Financial statements consolidated debt [indiscernible] consolidated to the renewed debt, $6.3 billion, or 1% for 2020 [indiscernible] years, [indiscernible] all these resources, we are going to be able [indiscernible] be presented [indiscernible] that was affecting in the worldwide, but currently have been changed because we have been reducing the debt on the variability that have been presenting of our debt. The debt per product is stable according to the previous year, a little bit more of participation due to the last quarter of the year. We were seeing [indiscernible] as United States. The debt, in this case, presented a subsequent behavior. We have a detail to the right company in order to see in detail of Promigas of what's happening with this. Accordingly, it's very important to mention the last September 15, Rating affirmed Promigas ratings at the local AAA level for the 21st consecutive year, and international BBB for the 11th consecutive year, both ratings with a stable outlook, which shows the high level or the lower rates of emissions as well. [indiscernible] the local rating with a stable outlook to Promiorente for the 4th consecutive year. I'm going to give the floor to our President, Eric Flesch, for the closing of this presentation.

Well, thank you very much, Aquiles. Our financial results at the end of September '21 are a true reflection of the goals achieved, the challenges met and especially the commitment and unconditional effort of our collaborators and the continuous support of our Board of Directors, on behalf of our shareholders. To our clients, users and interest groups in Colombia and Peru, our most sincere thanks for the trust placed in our services. We will continue to work hard to meet all of our plans and programs embodied in the current year's budget. Thank you very much. I wish to give the floor to Juliana. Please, Juliana.

Thank you, Dr. Flesch. Thank you, Aquiles, for your presentations. We're going to start open the Q&A session. The first question is from [ Jorge Valencia ], independent investor. With the change of government of Peru, how it is going to happen and what can we see in these coming months?

Well, a special greeting to Jorge. When the President was installed in the new government, there was an uncertainty of our involvement. During their campaign, they had become [indiscernible] toward the gas and oil sector. Peru is a very strong country and its strength is [indiscernible] related to resources [indiscernible]. They are really important. And in fact, we have never were nervous or something that it's the government [indiscernible] we didn't understand clearly that the world was going to happen with this new government. We have been seeing, I see we have had too many signals. They continue with some messages, the gas sector. They haven't scratched the ideas. It has been difficult to talk to the ministers because we have had some [indiscernible], they have really changed. There has been a really high administration and change in different [indiscernible]. But let's say that we have been in contact with advisers of the ministries and the government itself, and of course, with the President. We have seen this on in order to accept and to add all of those ideas in order to give there. We have been working in a really good way in doing our task, the companies and [indiscernible] to massive this [indiscernible] Peruvian in order to have this objective to mass. They use in gas in rural areas and along the country. And I remember, Jorge, in Colombia, 70% of this have access to the gas. So the 12%, everything is about to do, so we have the responsibility and task is a huge one. And we're going to be really focused because we feel really good with it [indiscernible] as a coincidence with us related to massification, of course. We're going to continue working on this as we have been doing so far.

Thank you, Dr. Flesch. We have another question from Core Capital. We have seen diminishing reduction [indiscernible] same levels from the fourth quarter and the third quarter of 2020. What should we wait for this line ahead?

I don't know what kind of concessions you're talking about. So I couldn't -- I cannot answer the question because I don't know what kind of concessions. I don't know if you can tell, I don't understand it. We're going to the next question and I'm going to talk to the person or to clarify the question.

The next question is from [indiscernible]. Have you had any kind of approach with APM? And can [indiscernible].

Always, we have had contact with [indiscernible] on APM as well in order a contractual responsibility to lead with this, the clock doing tick tock because it's moving forward. Promigas [indiscernible] and has been working in the latest 5 years in order to have gas pipeline, gas pipeline and to recovery as well, related to where we have deals, we haven't had any kind of context. We don't have anything concrete I remember with this contract as well. [indiscernible] Wonderful thing because, really, according to the reduction, the consumption as well and transporters we just connect. So we're continuing to open season [indiscernible] everything [indiscernible] this.

Thank you very much. We have time for last question. [Operator Instructions] Rodrigo [indiscernible]. We have any kind of expectation related to the change of currency related to transportation?

That question, I would like to answer, Aquiles. Related to the exportation, Aquiles, our CFO, can answer this, have a really high context related to this.

Related to this analysis that we have and we can see an intention of a [indiscernible] in order to these acquisition rates to dollars, pesos, we have been getting ready for this. It just happens. I don't think it has some radical impact [indiscernible] financial estates because we have been [indiscernible] We have seen a policy to restrict large impacts to our financial statements, investors and everyone who follows the companies or [indiscernible] expenses and some other expenses, and possibly you have another advantage [indiscernible] stability as our customers are aware as well. So -- In fact, we see this as a concern. We hope this regulated [indiscernible] in any way to place [indiscernible] or passing through pesos in the invoicing.

I I remember you [indiscernible] had any kind of question.

We're going to give the floor to Mr. Flesch for the final words.

Thank you very much, Juliana. Thank you all the investment -- investors as well. We have been moving forward in this. And I take advantage to tell you that this was my last report third quarter of Promigas. As you know, from December 1 [indiscernible] will give you the welcoming. And I say goodbye, thanking -- Thank you very much. As the President of Promigas for these 3 long years that have been in the company. As I said, I will be gone once again to United States in order to -- where it was my land, my latest in 18 years [indiscernible] businessman. They have been in the latest [indiscernible] Vice President. He was 16 years living abroad with energy and gas. I had the opportunity to meet him, had a very good friendship. I wish the best to him as the Vice President as well. My thanks to all my Ministry in order to -- with this company, in order to have these results that we have, in order -- thank you very much. [indiscernible] I just wanted to help to get a hand of course, from December 1. And thank you once again, thank you very much for the support. Thank you, Juliana, thank you all the advisers and I welcome ]. Thank you very much.

Thank you all for your attendance. We are bringing from the direction to the investors you having kind of doubt or comments. Bye bye, have a great day.