Edp Sa S/Adr

Good morning. Thank you for attending EDP's 2024 Results Conference Call. We have today with us our CEO, Micael Silva de Andrade, and our CFO, Rui Teixeira, which will present you the main highlights of our strategy's execution and 2024 financial performance. We'll then move to the Q&A session, which will be taking your questions both by phones or written questions that you can insert from now onwards at our webcast platform. I'll give now the floor to our CEO, Micael Silva de Andrade. Thank you, Miguel.

Hello, everyone. So thank you for attending our 2024 results conference call. I just wanted to highlight three messages before I go into the presentation. I think one was going to be the good performance of EDP in 2024. The second is that we're starting well the year of 2025. And we have good prospects for the year. And I'll talk about that over the course of the presentation. And the third is that we feel very comfortable in providing guidance for 2026 in line with what we presented last year, although with a slightly different mix. So I'll talk to that over the next couple of minutes. Given today's market reaction, I think this is a good opportunity to also talk a bit more about some messages that may have not come across very well yesterday. And hopefully I'll do that over the course of the next few slides. Going into slide three and talking about the 2024 performance. EDP successfully delivered or even outperformed the guidance on all the key financial metrics. And I think this is once again a testament to the value of the integrated utility diversified portfolio. We ended the year, we had a recurring EBITDA of $5 billion in line with our latest guidance. In fact, the guidance we gave throughout the year and relatively stable year on year. This was backed by the integrated generation supply performance. benefited from increased volatility in electricity markets. We had good hedging prices. We had some positive impacts in the gas. We also had good hydro volume, 16% above the average hydro year. So record results in integrated margin with no coal and no COMEX. We had a solid 7% EBITDA growth in electricity networks. This was supported by strong demand and also RAB expansion in the electricity distribution in Brazil. So also we had record results in Brazil. And at the bottom line, we had recurring net profit reaching 1.4 billion euros, surpassed our previous 1.3 billion guidance. As you know, we had several conversations about this over the year and the upside that we saw to the 1.3. So, in fact, we delivered the 1.4. This is an 8% year-on-year increase supported by the positive performance also below EBITDA, including better financial results, lower minorities. You know, we had the EDP Brazil minorities buyout in 2023. We had lower results at GDPR due to lower asset rotations and slower growth of generation volumes, but that was more than compensated by the other effects I mentioned. Net debt, $15.6 billion, in line with our guidance of around $16 billion, and significantly better than consensus. And I wanted to highlight this because I think it was tremendous work done by all the teams to get to these levels. So all in all, in line with our commitment towards the BBB rating, We had a comfortable, stable outlook for BBB by S&P recently. We ended the year with healthy financial ratios. FFL to net debt, 21.5%. So better than the 21% we've had since our CMD of February 2023. So all in all, I think undeniably good results. If we move on to slide four, we can look at EDP, EBITDA, and net profit performance over a slightly longer time period. And I think You know, it's important sometimes to take a step back, and I think it's quite impressive. It shows the solid growth the company's had over the last five years. So since 2020, EBITDA has increased from around 3.5 billion to 5 billion in 2024. It's a 9% compound annual growth rate. It's even more impressive when we think that throughout these years, we've significantly reduced the weight of asset rotation gains in the EBITDA mix. It's there on the little balls below the graph. We've reduced almost to zero the cogeneration contribution. We're at already about 95% generation mix coming from renewables. And so that significantly advanced our commitment towards the decarbonization of our portfolio. So we've done this transition and increased profits. There's a similar trend for recurring net profit with an even higher compound annual growth rate of 16%. I think there are several important strategic initiatives that have reinforced the earnings quality of this net income. We have a greater weight of electricity grids in our portfolio. following the acquisition of years ago in 2020 and the buyout of the EDP Brazil minorities in June of 2023. So all of this, I think, good quality earnings. And at the same time, we did all this while reinforcing our credit ratios with FFO net debt ratio going from 19% in 2020 to 21.5% in 2024. So in a period of significant growth, We demonstrated our commitment towards a triple B rating, and we kept that throughout growing results, improving balance sheets, and growing also on an operational basis. We move on to the integrated business in Iberia. So, again, stressing the value of this integrated business. We can definitely extract value from the price volatility in the market, and we can manage also the renewable volume profile. If you look there on the left-hand side of the slide, you can see the generation volumes in Iberia in 2024 were 19 terawatt hours, split between hydro, thermal, merchant winds, and solar. And these volumes were covered mostly by fixed price supply volumes. So our strategy, as you know, is to be normally long on generation, either through our own generation or through long-term contracts in the market. And this effectively mitigates some of the renewables risk. Looking ahead, we've seen improved outlook for 2025 and 2026. So for 2025, we've already hedged approximately 7.5 terawatt hours at around €70 per megawatt hour. For 2026, we have hedged approximately 3.5 terawatt hours at around €63 per megawatt hour. So above our last year's May 2024 strategic update assumption of €58 per megawatt hour. And that was the price we were assuming for 2026, so we're above that. And I'd just like to leave this note that we started the year already strong with good hydro volumes and good prices. Besides this uplift in electricity prices and sort of their expectations for 2026, we're expecting improved performance from energy management activities, mainly through flexible generation, and that's a result of increased volatility and intraday spreads. So we continue to see some decline near-year drivers in the segment in terms of average hedged prices. That's normal as we're coming off sort of the highs of the last couple of years and the gas results. But we're also seeing some tailwinds, both for 2025 and 2026, in terms of higher volumes, including pumping and pricing versus the assumption of last year. So improvement both in absolute terms and also regarding volatility. If we move on to networks, you're on slide 6. So I understand that there's a perception by some investors that electricity networks is a small part of the EDP business. This is not the case. The weight of networks in our net profit continues to increase from 29% in 2023 to 43% in 2024. So this reflects positive impact from EDP Brazil, the acquisition of the minorities in 2023. There's also the growth of the electricity demand and the RAP and also efficiency, all of this driving, let's say, the results of networks and the weight within the overall EDP portfolio. In 2026, we'll also start a new regulatory period, both in Portugal and in Spain, and we see opportunities to increase investments in this period, this next regulatory period, versus the previous regulatory periods by up to 50% versus the current levels. The key investment growth drivers we see there are increasing electrification of consumption, the modernization that's needed for infrastructures that's already quite old, in the fact that 45% of Portuguese transformers are over 40 years old. There's also a bigger push for digitalization, so there's a wave of investment that is coming that we need to address. And there's also an increase of renewable generation in the electricity system. So we need to connect this additional supply. We also need to connect additional consumers. So all of this is going to be driving additional investments. And we've already made a specific proposal to the Portuguese regulator and the government regarding this increased investment profile. Now, obviously, these investments will only be executed if there are adequate returns. and the investment conditions are met. So over the next couple of months, we expect to have more visibility on the regulated returns and also some of the other key regulatory parameters to be defined. As you know, in Portugal, the regulatory proposal comes out on the 15th of October, and then the final one is the 15th of December. But let's say by the second half of October, we'll have a good visibility already on these parameters for this Particularly, I think, for the much-needed investment that's required for the networks both in Portugal and in Spain. Obviously, we have a higher weight of networks in Portugal. Move on to the next slide. Still talking about Iberia. I think this is a big evolution versus the past, you know, many years ago. Portugal and Spain are among the European countries with the most competitive electricity prices. And this is borne out by international comparisons of residential electricity historical price evolution. Both Portugal and Spain have maintained affordable electricity prices in residential and industrial segments. And so this creates the positive environment for the energy transition in Iberia. And we've talked about that. It positions these countries to be competitive, to attract industrial and data center investments. And that you can see very clearly versus some of the other European countries and versus the European average investments. We have very competitive prices. On the right-hand side of the slide, just specifically now in Portugal, we also see a downward trend in electricity system debt. That's reaching 1.6 billion in 2025. That's as per the final tariffs decision released by . And it shows that the Portuguese electricity system is financially robust, and they can keep the system debt under control. while keeping stable prices for consumers. The regulated retail tariff in 2025, just by way of reference, is set to increase only by 2.1% versus 2024. So overall, very competitive energy prices, leading to a lot of potential for industrialization and sort of additional consumption, and the system debt is perfectly under control. And as you know, that was something which was of a concern many years ago, and clearly you can see it's no longer an issue. If we move to Brazil, So Brazil's strategy continues to be focused on electricity grids, both distribution and transmission. We're seeing strong demand, 7% in our distribution areas versus 5% in Brazil as a whole in 2024. Our two distribution companies continue to be references in the country in terms of quality of service indicators. I mean, we've outperformed the regulators' metrics. Specifically in EDP Sao Paulo, the duration of interruptions in electricity distributed has registered its best historical record in 2024. And then another important point is that the distribution concession extension process is ongoing, and we've been getting good news flow. Just this week, the regulator approved the contract terms to extend the concessions for 30 years, and EDP Speed Absent is the first company to renew the concession up to 2055. So that's an extremely important point. because it gives visibility on the extension of these concessions for another 30 years. On the right-hand side of the slide, I also want to remind you the buyout of EDP Brazil minorities, which I mentioned was concluded in July of 2023. At the time, we targeted providing 120 million of additional contribution to the EDP net profit. In fact, the reality is that EDP Brazil presented a record high net income in 2024. So the contribution to the EDP net income was actually much better than expected. So we have the $1 billion investment contributing to an 18% return on equity in 2024 above the targeted 12% that we're estimating at the time of the acquisition. So clearly a great acquisition, a great transaction, and great profitability. Major concern regarding Brazil is obviously FX, volatility, namely following the depreciation seen versus the euro in 2024. I just wanted to highlight that our exposure to Brazil in real life is significantly mitigated at the net profit and balance sheet level. As you know, we have a significant weight of funding of operations and local currency. So as of December 2024, the Brazilian debt accounted for 13% of our total gross debt versus the 18% weight of EBITDA in Brazil. So there's a natural hedge to that, which mitigates some of the impact of the forex. Looking forward, in terms of 2025 and 2026 assumptions, we assume the average exchange rate of 6.1 in our 2026 guidance. So it's in line with the most recent levels, namely last month's average, in which we already saw some recovery versus the months before that. Overall, a 50 cent deviation in the Euro-Brazilian exchange rate would represent around a 20 million Euro impact on our net profit in 2026. Moving on to slide 9. So I've talked about this yesterday, but I'll just repeat it. We continue to see strong market fundamentals for wind and solar energy in our core European and also the U.S. markets. This represents more than 85% of our wind and solar portfolio. Talking specifically about the U.S., so we are seeing strong electricity consumption growth over the next five years. This is driving demand for renewable energy projects. which we believe will deliver significant electricity generation in this short period of time. So it's really one of the few technologies which can step in and provide that supply of electricity. Now, obviously, we need to manage risk from the potential federal legislation levels. And so we've grandfathered Safe Harbor under the existing Inflation Reduction Act remuneration frameworks. So our secure capacity is safe. The more interesting projects are advanced development or on the commercial negotiation, they'll be delivered over the next three years. Regarding import tariffs between 2025 and 26, we have most of the major equipment protected. So we'll have stability in project costs. And on the side of the PPAs, continue to see strong demand and attractive prices driven by the growing power consumptions. On Europe, I mean, obviously, the region has strong economic growth. We're seeing increased demand from the decarbonization efforts. We're seeing some demand also coming from data centers. So there's a very supportive EU level ambition driving this growth. Even yesterday, we had additional news on that. In the member states, they are addressing some of the execution issues to meet the decarbonization and capacity targets. Looking at our own plans in terms of capacity additions. So in 2030, we added 2.7 gigawatts of capacity. Last year, 24, was a record year where we added 4 gigawatts. For 25, we're slowing down additions. We're projecting around 2 gigawatts. And for 26, around 1.5 gigawatts. Now, this is a function of stricter investment criteria, both in terms of returns and associated risks, and also keeping our strong commitment to the mid-BBB rating. So we're being more defensive in the current context, but retaining the optionality to really accelerate. Our investment metrics for projects in 25 and 26 are impressive. So IRRs of over 9%, more than 70% of NPV contracted, the spread of our cost of capital of over 275 basis points. So all in all, really prioritizing returns over volumes and making sure we're investing in the best projects without compromising balance sheet strength. Move on to slide 10. and just talking a little bit about CapEx and investments and just also clarifying some points here. So first, the slowdown of the capacity additions is really to focus on increased returns, and it comes hand-in-hand with the moderation in the pace of short-term investment. We are expecting an additional reduction in investment level for 2025 and 2026 with a positive impact on credit ratios. On average, this leads to a 22% reduction in yearly investment levels for 2025 and 2026 versus the previous plan. The weight of electricity on growth investments of networks is expected to go from 16% in 2023 to 25% in 2025 and 2026. And we'll continue to focus our investments on wind and solar in high-rated markets. So Europe and the U.S. represent about 85% of overall investment. Regarding EVPR, as we said yesterday, we're talking about €3 billion of investment in 2025. around 2 billion euros of investment in 2026, excluding offshore. So just adding a little bit more precision to those numbers versus what we mentioned on the call yesterday. On slide 11, efficiency. On top of a tighter investment policy, we are remaining committed to fostering efficiency within the organization. So we implemented already at the end of 23 and then throughout 24, a really ambitious cost-cutting program. This has already resulted in 140 million of savings just in 2024 alone. A couple of actions, very specific but worth mentioning in relation to having a, let's say, leaner and more efficient organization. First was a new corporate structure. So we reinforced the intergroup synergies between global business lines and also adjusting it to the growth pace that we're targeting. We took out a lot of different corporate centers that we have from the past, from different acquisitions that were being done. We took out several levels of management. There's a renewed focus on efficient growth. We're exiting some smaller markets, non-core markets, exiting some businesses that are not delivering expected profitability or that are below, let's say, a certain threshold that we've defined. And we're adopting and continue to sort of strengthen even further centralized procurement and a leaner O&M strategy. So a big focus here, which means that overall we had a reduction in OPEX. So in the year that we installed the most megawatts ever, We had a decrease in nominal OPEX of 4% year on year and a significant reduction also in the number of headcount. So we are below the 2 billion target that we set out for 2026 and below, obviously, what we had in 2023. So record number of megawatts installed. And at the same time, managing to reduce nominal OPEX, reducing number of headcounts, improving our OPEX over gross profit margin, and obviously improving significantly our OPEX over per megawatt as well. So really, I think a big effort here to extract additional synergies and economies of scale. On slide 12. This is an important slide, so I'll go through it with some detail. We are reiterating our guidance for 2026, despite some changes on the business mix. Our EBITDA guidance for 2026 has been updated from 5 to 5.1 to approximately 4.9 to 5, still represents a 3% compound annual growth rate from 22 to 26. It's a result of a higher integrated margin in Iberia versus what we initially expected. We're expecting also electricity networks to remain relatively stable, contributing to the overall performance. Obviously, we're looking at reduced wind and solar capacity additions, as I mentioned earlier. We're assuming lower cumulative asset rotation gains in 2025 and 2026. And we're also assuming improved efficiency across the operations. In terms of breakdown of EBITDA for 2026, this means that the guidance includes around 1.6 billion euros for networks, About 0.9 to 1 billion euros of EBITDA coming from the integrated Iberia business. Around 0.2 billion euros coming from integrated Brazil. And around 2.1 to 2.2 billion euros coming from EDPR. So this is EBITDA for 2026. In relation to 2025, and just to be clear, we're comfortable with the consensus EBITDA. which is now at around 4.8 billion euros. We're assuming a breakdown of 1.55 billion euros for networks, between 1 and 1.1 billion euros for integrated Iberia, 0.2 billion for integrated Brazil, and around 1.9 to 2 billion euros for EDPR. Our net income guidance range for 2026 remains the same at 1.2 to 1.3 billion. That reflects a 10% increase CAGR over the same period. Now, obviously, this updated guidance reflects a slightly different composition. We have a stronger performance from businesses that we hold 100%, while businesses with minorities have been subject to some downward revision of their contribution to the overall consolidated financials. Regarding 2025 net profit, I'd just like to highlight we're comfortable with the current consensus of $1.2 billion. And our net debt is expected to be around 16 billion euros, keeping the triple B rating. The FFO net debt is expected to also stay relatively comfortable at around 20%. So FFO net debt ratio for 2026, around 20%. On top of the, you know, despite some adjustments to our top line figures, we're on track to deliver the key financial targets for 2026. And as I say, this has been driven, as I mentioned also at the beginning, by a diversified portfolio and really this strategic focus on efficiency throughout this period. So hopefully the breakdown I gave just now helps give some additional clarity on the overall EDP, but also on the EDPR targets. Move on to slide 13 before I pass it over to Roy. and talking a bit about shareholder remuneration. Our dividend policy included a dividend per share floor of around 19.5 cents in 2025, which would then grow to 20 cents in 2026. Given our strong results in 2024, we're actually anticipating this growth to take place already in 2025. And so we're proposing the payment of 20 cents already at the April shareholders meeting. So it's an anticipation of the 20 cents that we're really going to do next year or ready for this year. It's around the 60% dividend payout ratio, so it's comfortably within our 60% to 70% payout ratio target range, but it's obviously reflecting this good performance of 2024. In addition, we're also implementing a share buyback program of around 100 million euros to be executed in the short term, so over the next three months. As I say, this is backed, it's also another message backed by the financial outperformance in 2024 and a good start also to 2025. And also obviously the good visibility for 2026 targets, including the 20% cut on gross investment for this period. We think that the current market prices with EDP trading at a price earnings ratio of around 11.3, and this is just based on Bloomberg consensus, And the dividend yield is 6.3%. This represents a good allocation of capital for the company and for its shareholders. We expect the program to be EPS accreted from year one, a 1% increase in EPS. The impact on FFO net debt is less than 0.1%, and will be more than compensated by the CapEx reductions in 2025 and 2026. So this is a point that's obviously critical for us, given our commitment to the BBB rating. With that, I'd stop here, and I'd pass it over to Wei. Thank you.

Thank you, Miguel. And good morning. So let's move to slide 15 and start reviewing our strong financial performance during 2024. So on slide 15, recurring EBITDA stood relatively stable, decreasing just 1% year-on-year to 5 billion effectively, on the back of a very diversified portfolio. So renewables, clients, and energy management is down or was down by 209 million euros, driven by lower asset rotation gains at EDPR level. Excluding these asset rotation gains, the underlying EDPR performance increased 120 million year-on-year. The remaining part of the segment decreased 47 million, reflecting our path into the carbonization of the portfolio, with Pesey and Abueño coal power plants contributing 160 million euros to the habitat in 2023 versus no contribution in 2024. So really on a like-for-like comparison, generation and supply businesses is or are effectively 130 million euro up year-on-year, supported by the strong hydrovolumes and lower gas sourcing costs. Electricity networks EPITAN-X asset rotation increased 35 million year-on-year, supported by the resilient performance of Brazil. Additionally, there's a 71 million euros capital gain resulting from the transmission deal that we closed in the first quarter last year. All in all, electricity networks represent an important 33% of the total EBITDA of the group. And finally, I would like to highlight here the efforts on efficiency in a growth context. OPEX decreased 4% year-on-year in absolute terms versus 2023, So the efficiency measures that we have been implementing are already positively impacting the bottom line. However, we still believe that there is room for further optimization in some businesses within the group, and we will keep working to improve efficiency overall. Now on slide 16, just a quick wrap-up on EDPR performance, which we have already detailed yesterday, underlying EBITDA 9% up and improves performance year-on-year, supported by 17% growth in installed capacity, that's year-on-year, with most additions that have been concentrated in Q4, improved wind resources versus 2023, but still below average, with the renewables index at minus 2%. And those efforts combined supported the 6% increase in electricity generation. On the other hand, the average selling price decreased by 3% year-on-year to 58.9 euros per megawatt hour. This includes the impact of lower power market prices in Europe that was obviously smoothed by a very good hedging strategy and stable pricing dynamics in the U.S., All in all, EBITDA decreased 9% year-on-year, impacted by lower asset rotation gains in 24 of 179 million versus the very high asset rotation gains of 460 million back in 2023. Now moving to slide 17, a very quick look on the hydroactivity during the year of 24. Hydrogeneration net of pumping increased 21% year-on-year, reaching 10 terawatt hours, reflecting above-average hydro resources in the year, that's above 16%, versus 2023, where we had hydro resources in line with average. While in the fourth quarter of 2024, it was not a very strong quarter, as you saw as well on the operational results, at least in terms of the hydro generation when compared to 2023. Also on the right-hand side of this slide, you can see that the hydro reservoirs remain above average year-to-date. So currently we are at 77% of reservoir levels and around 15% points above the average for this now year. Also at the beginning of this year, in February, or since January, we have been seeing a rebounding in power prices, and this is giving us confidence for the hydro margins for the first quarter in 2025. If we now turn to slide 18, EDP's strong track record and decarbonization efforts allows us to be in the forefront of the energy transition in European integrated utilities. We have reached our lowest ever scope 1 and 2 emissions intensity in 2024 at 29 grams of CO2 per kilowatt hour, marking an 84% reduction versus 2021 and a 64% reduction versus 2023. This is a remarkable achievement. And this is mostly backed by the portfolio decarbonization, which has translated into 95% of renewables generating during the year. That's an 8% point above 2023. Our progress has allowed us to reduce our revenues derived from coal, which are currently almost at 0%. And our revenues from fossil fuels to be around 2%. This is placing us in perfect alignment with sustainable investment criteria, as we remain below the 5% standard threshold to be eligible for sustainable investment. So now I'm moving to slide 19, edit 5 on EBITDA from generation and supply businesses. Recurring EBITDA on this segment decreased 2% year-on-year. This decrease includes the impact of our efforts toward decarbonization, as I mentioned before, with the PONU and PESA equal plans that added €160 million to 2023 EBITDA versus no contribution in 2024. When we exclude this impact, in fact, EBITDA increases 9%. And this is really a great performance, backed obviously by the strong hydro volumes that improved versus last year, but also a very effective price hedging strategy with hedging at around 90 euros per megawatt hour in this year versus the record at 63 euros per megawatt hour pool price. And obviously also some lower gas sourcing contracts or costs. So going forward, positive impacts on gas sourcing should not be verified. Moving now to slide 20, a robust performance on the network segment, accounting for 32% of total group EBITDA. EBITDA from this segment increased 7% year-on-year. In Iberia, EBITDA stood relatively stable. In Portugal, EBITDA is slightly decreasing year-on-year, reflecting the adjustments on the rate, which, as you know, is indexed to lower sovereign yields. In Spain, EBITDA reflecting the revenues increased due to RAB growth, compensating higher maintenance costs. And in Brazil, EBITDA increased €109 million, backed by a strong performance in the electricity distribution activity, with distributed electricity increasing 7% year-on-year. Transmission benefited from inflation updates and the capital gain of €71 million from the asset rotation of two transmission lines. However, underlying transmission EBITDA decreased year-on-year, reflecting the deconsolidation of the transmission net that was sold in the meantime. So, now moving to the financial costs on slide 20. Net financial costs in recurring terms decreased 4% year-on-year, and this is a result of cost of debt decreasing from 5% in 2023 to 4.5% in 2024, This is a combination of the decline in the Brazilian real denominated cost of debt in EDP's portfolio, obviously due to the deconsolidation of the PSE, as well as the transmission. And it has a positive impact, even the more expensive debt in the Brazilian real devaluation. Rebalancing the U.S. dollar euro denominated debt as part of the strategy to reduce U.S. dollar in the mix. As you can see on the right-hand side of the slide, U.S. dollar weight total debt decreased from 28% in 2023 to 17% in 2024. Excluding Brazilian real debt, the average cost of debt stood stable in the year, with the decrease in U.S. dollar average cost of debt being offset with a slight increase in the euro denominated cost of debt. So, all in all, Average cost of debt decreased mitigated the €1 billion increase in the average net debt in the period. Finally, I would like to highlight that already beginning of this year, we have issued €750 million of green bonds with a 3.5% coupon, so actively managing our debt and liquidity needs. So now moving to slide 22. As of the end of 2024, net debt stood at 15.6 billion. And I would highlight that this is below our initial expectations. And this mainly was achieved by strong organic cash flow of 2.9 billion euros. Obviously, it has the dividend payment of 0.8 billion. Regulatory working capital of 0.5 billion, including discretizations made throughout the year, amounting to approximately 1.1 billion. And also net cash investments, totaling $3.5 billion, mainly from investments in renewables and networks, and including $1.6 billion of asset rotation proceeds, excluding gains. So overall, we are maintaining solid credit ratios, namely FFO net debt at 21.5%, and as Miguel said already, we remain fully committed to our BBB credit rating. So now moving to slide 23, and to wrap up this section, Net profit amounted to 1.4 billion euros, exceeding our guidance of 1.3 billion euros for this year. Including capital gains, the underlying net profit shows a strong 23% increase versus last year, or 2023, resulting from robust EBITDA, higher DNA and provisions, net financial costs decreasing 38 million year-on-year, as I mentioned, reflecting the continuous effort towards decreasing the average cost of debt, Higher income taxes following higher effective tax rate due to lower asset rotation gains year on year that typically have this tax exemption. A decrease in non-controlling interests following the lower results at EDPR level and supported by EDP Brazil successfully minorities buyout last year. Finally, just to highlight that including asset rotation gains, recurring net profit increased 8% versus last year, showcasing the strong performance in the underlying business, which more than compensated for the lower asset rotation gains. In reported terms, as you know, net profit decreases 16% to 801 million euros due to the non-recurring events that were recorded that the net profit related to Colombia and U.S. offshore wind impairment that we referred to at the ADPR. So with this, I would hand back to Miguel for closing remarks. Thank you.